PEMP EMM502

All Sessions

Quality Management and six

sigma
i

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 PEMP EMM502

Session 1

Introduction, Philosophies and

Pi i l
Principles
of
Total Quality Management
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Session Objecti
Objectives
es
• At the end of the session the students
wouldld h
have understood:
d t d
– Definition and Evolution of Quality
– Constituents of Total Quality Management
– Benefits of TQM Implementation

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S
Session
i T Topics
i
Concepts of quality and total quality
C t off quality
Costs lit
g
Organizing g for qquality
y control
Statistical quality control
Concepts of quality assurance
Total quality control & management
Benefits of TQM

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Quality is an endless journey...

journey

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Why is Quality so important?

• Customers are becoming more intolerant of
poor service, unreliable goods, shoddy
workmanship, p, late deliveries etc
ƒ They exert control over suppliers by
switching them
ƒ So all organisations are growing increasingly
conscious of the competitive potential of
y
Quality.
ƒ Also the Quality parameters are contractually
defined.
defined
ƒ In view of resource constraints in all spheres
facing the world, these quality stds will only 6

become more stricter

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TQM—A response
p to changing
g g
markets
• Through the last quarter of the last century there
was a shift from a ‘sellers market’ to a ‘buyers
market’
g
• Some organisations responded
p well to this shift
and some did not
• The organisational world is a rough one with a
variety of stakeholders demanding Continuous
Improvement within the context of Global
competition
• The healthiest
healthiest, fittest and fastest will win
• One of the ways to develop competitiveness
is to develop a Quality organisation 7
supplying Quality products and /or services
 PEMP EMM502

TQM is not
not--
• A luxury
• S
Something
thi tto fit in
i during
d i quieti t periods
i d
• Just meeting g internal stds
• Just cutting costs
• Th jjob
The b off th
the quality
lit d
deptt
• CUSTOMERS DECIDE WHAT QUALITY
IS AND WHICH ARE QUALITY
COMPANIES
• They do this based on quality
quality, variety
variety,
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timeliness, competitive price, service etc
 Road to TQM
• Progress---------- • Whole operation involved
• Quality as strategy (to be competitive)
• I ,C ,A, M ---Model • ea o
Teamwork
• Staff empowerment (involvement)
• Involves cust and suppliers
• Zero Defect programs
TQM
• Quality systems
• Quality costing
QA
• Problem solving
QC • Quality planning

• Statistical methods
inspection
• Process p perf
• Quality stds

• Error detection
• Rectification 9
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Right first time

• If you don’t do things right first time ,you
are—
– Wastingg time
– Causing problem to others
– Putting customer satisfaction at risk
– Putting yourself under pressure
– DEFECTS ARE NOT FREE.QUALITY
FREE QUALITY IS FREE.
FREE
(Requires EFFORT!!)
– SOMEONE MAKES THEM AND GETS PAID

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E l ti off TQM
Evolution

• First we will understand the evolution of

TQC and d llater
t on th
thatt off TQM
• Organisation
Organisation- wide efforts to improve
quality is termed TQC
• The underlying principle is to produce
products of high quality rather than
detecting defective products thru
inspection.

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P i i l off TQC
Principles

• Top mgt policy---Defect free, -Do-it-right first

time Kaizen
time---Kaizen
• A belief that Quality is the most cost-effective
way to increase productivity
• QC Training for ALL. Herein is the belief that
everyone isi expected
t d tto contribute
t ib t tto
product/process quality—Marketing thru design
th prodn
thru d thru
th servicei
• Product/service Design g
• Quality material from suppliers
• Control in production
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• Customer care thru excellent after- sales service
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TQM
• With more competition, customer
satisfaction
ti f ti in i customer
t terms
t became
b
ag
goal of business orgn.
g
• The Quality revolution had started. Began in
Japan
• TQM was born with three key philosophies---
Never ending push for improvement and goal of
customer satisfaction involving everybody in
the orgn.

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Philosoph of TQ
Philosophy
• Guided by foll basic mgt concepts
– Customer and stakeholder focus
– Process orientation
– Learning and CI
– Empowerment and team work
– Mgt by facts
– Visionary leadership which sees TQ as a
strategic organisational asset

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C td
Contd---
• It’s characteristics are:
– Intense focus on CUSTOMERS---both
CUSTOMERS both internal &
external
– Concern for CI—Quality
Q y can always y be improved
p
– Improvement in Quality of everything that the orgn
does—not only y related to final product,
p , but also
services, response to complaints etc
– Accurate measurement of every critical perf variable
in the company’s operations
– Empowerment of employees—people on the line,
teams are formed and empowered to find and solve
problems.
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Elements of TQM
TQM--RECAP
RECAP
• TQM
Managing so that customer is delighted

philosophy tools

Customer driven quality SPC

Leadership
CI 14 TOOLS Sampling
Employee participation OF PROBLEM Taguchi
Quick response
Design quality SOLVING Methods
Prevention
M tb
Mgt by fact
f t AND p
Process cap
Partnership dev PLANNING
CSR

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Contd----
Contd
–SO THE ESSENCE OF TQM IS
STRESS ON THREE PRINCIPLES
»CUSTOMER SATISFACTION
»EMPLOYEE INVOLVEMENT
»CONTINUOUS IMPROVEMENT
IN QUALITY

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 Benefits of TQM
• Tangible • Intangible
Better product quality Effective team work
• Productivity improves • Enhanced job interest
• Reduces quality costs • Participative culture
• Increased market • Customer satisfaction
• Increased profits • Better company
• Reduced grievances image
• Enhanced problem
solving ability
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Quality mgt

Performance Measure
Additional Reading Material—Ref
will be provided

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D fi iti
Definitions off Q
Quality
lit

• Ability of Product or Service to meet customer

needs
• The totality of features and characteristics of a
product/service that bears on its ability to satisfy
p
stated and implied needs
• Fitness for use
• Quality
Q lit is i a measure off how
h closely
l l a goodsd
or service conforms to specified standards
or specifications
• Quality is what is in the eye of the customer
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Fi views
Five i off Q
Quality
lit
• Transcendental view
view---Quality
Quality is synonymous
with innate excellence. Can be recognised /felt
thru experience
• Product
Product-Based
Based view—Quality
view Quality is a precise and
measurable ingredient of the product. Bit difficult
when aesthetic issues creep in
in.
• User-Based view---Which best satisfies the
customer. Highly subjective. Fitness for use
• Manufacturing –Based
Based view----Conformance
view Conformance to
design/spec
• Value-Based view-Price paid VS value felt by 21

customer
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Dimension of Prod
Product
ct Q
Quality
alit
• As customers evaluate quality they assess
several different aspects of it
– Performance---How good in intended use.(Speed of laser printer?)
– Features Special ch’s
Features--- ch s (Power steering
steering, Anti
Anti-skid
skid brakes?)
– Reliability— Likelihood of breakdown/malfunction
– Serviceability Speed,
Serviceability--- S d cost,
t convenience
i off repair
i
– Durability---- Length of time before it has to be replaced
– A
Appearance---- Effect on human senses
– Customer service----- Treatment recd before and after sales
– Safety---- How well it protects users during use

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Dimensions of ser
service
ice q
quality
alit
• Reliability
• Responsiveness---- Willingness, timeliness
Responsiveness
• Competence---- possession of skills
• Access----- ease of contact
• Courtesy --- politeness
• Communication Inform in language that customer can
Communication---
understand
• Credibility --- Trustworthiness— Do they have customers
best interest at heart
• Understanding----Make
Understanding Make effort to understand needs
needs,
rapport with regular customers
• Security--- freedom from danger, risk, doubt
Security
• Tangibles--- Physical evidence of services 23
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Shiba’s view
ie point
• Level 1 ---Fitness to standard
• Level 2---Fitness to needs
• Level 3
3---Fitness
Fitness to costs
• Level 4---Fitness to p
perceived /hidden
needs

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Benefits of quality
q alit
• It improves
i competitive
titi capability
bilit
• It gives a positive company image
• It increases market share and thus profits
• Overall it reduces costs ----COQ DOWN
Overall,
• It improves morale by creating a sense of pride
and so improves productivity
• Quality gives competitive advantage
• Quality improves profitability
• Quality is a source of value—Corporate
value Corporate and
personal
• Quality has a positive impact on long term
25
business results
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Contd

• QUALITY DRIVES THE PRODUCTIVITY

MACHINE

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Q alit mo
Quality movement
ement in India
• Walter shewart visited India in 1948
• Dr Deming in 1950
• CII initiated some QC techniques in psu’s
• CII formed a TQM division in 1987
• QCFI was formed and Prof.Ishikawa was invited
in 1986
• Industries started setting up quality improvement
teams
• In manu Maruthi set up its plant and changed
the rules of the auto g
game in manu, q quality,
y
service etc helping lot of ancillaries to get a 27
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Contd
• CII had its first major seminar with juran in 1987
• Mid 80’s
80 s saw the beginning of social and
economic reforms which set the trend for
competition and liberalisation.
liberalisation
• National committee on quality, quality month
conceptt etc
t became
b embedded
b dd d
• 1987 broughtg in ISO 9000 STDS
• Visible strategies emerged from the european
mkt to set a global trend towards standardising
and certifying quality systems.
• In 1991 the first company in india got certified
certified.
Today more than 1000 are certified 28
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Contd
• Realisation slowly came that only certification wd
not make a co world
world-class.
class
• Many chief executives and missions thru trade
bodies gave the impetus to industries to become
market leaders byy applying
pp y g TQM concepts p and
Japanese manu concepts in India.
• CII developed 9 modules on trg on TQM
• Quality summit and national quality campaign
have become annual features

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Contd
• Global cos in all sectors set up shop in INDIA –
IT TELECOM,TEXTILES
IT, TELECOM TEXTILES AUTO, AUTO BPO,
BPO STEEL
,CEMENT, AVIATION and drove relentlessly
th i customer
their t ffocus, iinnovation,
ti quality
lit
concepts which had become second nature to
them
• This drive for quality,
quality customer focus and CI
spread to govt institutions also---Railways, psu’s
etc
• INDIA IS SEEN AS A COUNTRY CAPABLE OF
MAKING QUALITY GOODS AND SERVICES 30
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Small q and BIG Q

• q= a symbol for a firm’s approach to quality
where emphasis is just on product quality.
– Emphasis
p on p
product alone to make sure that ggoods
produced are fit for customer
– Method to p
prevent recurrence of defects not p
prime
focus
– Segregation of good and bad
– Approach exists where demand>supply and less
competition

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Big Q
• Q=Firm’s focus is product + process and
customer
t
– Starting
gp point is customer needs
– Converted to product features which are produced at
lowest cost/max quality
q y
– Right first time is the basic approach
– Zero defects,
defects prevention rather than correction
– Continuous feedback and improvement
– Employee trg, involvement

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Q alit in prod
Quality production
ction ssystems
stems
• Production is the process of converting
resources into products/services
• The collection of activities and operations
involved in producing is referred to as production
system.
• Constituents
C tit t are
– Input—physical facilities, materials, capital, people, energy etc
– Outputs—products
Outputs products or services
– Processes—means of transformation
Most imp is that above prodn system has to keep on interacting
with the customers and suppliers for ensuring CI of products
and processes

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Quality in prodn system

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Three levels
le els of Q
Quality
alit
• An orgn that is committed to quality
mustt examine
i quality
lit att three
th levels
l l
– Organisational---Quality
g y concerns of external
customer
– Process---- Which pprocess is most significant.
g Internal
customer satisfaction.Inputs.Systems.
– Performer/job
Performer/job---Stds
Stds, Measures etc to meet above
two reqmts. Improvements.Timeliness.

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Determinants of quality
q alit
• Several activities are necessary to achieve
quality:
lit
– g —market research,qfd,dfma
Qualityy of design q
– Capability of prodn processes —cp and cpk
– Conformance —must must meet specs
– Customer service ---fair, courteous, prompt treatment
– O
Orgn culture
lt —no compromisei on quality,teams
lit t etc
t

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Understanding Competiti
Competitiveness
eness
– --

PEMP EMM502 37
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Contd Competiti e ad
Contd---Competitive adv
• Each of these chs relate to quality of that
function and so quality is an imp source of
competitive adv.
• Quality is as perceived by customer
• Japanes auto makers---High reliabilty
• Rolex provides highest quality
• Apple provides innovative products
• Maruthi provides cheap reliable cars
• Many
M companiesi plan
l tot be
b market
k t leaders
l d in
i
one or two dimensions of quality whereas a
world
ld class
l co in
i ALL dimensions
di i 38
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TQM & Competitiveness

C titi

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TQM and Profitability

• 66

PEMP EMM502 40
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I
Improved
d Quality
Q lit iis a S
Source off value
l

• Improved quality results in

– Improved reputation
– Easier selling
– Reduced lead times/Enhanced flexibility
– Improved productivity
– E l
Employee pride
id
– Reduced costs
– It makes
k impact
i t att personall level
l l also
l as orgn kknow
that unless people internalise quality at their own level
it can never get spread into orgn
orgn.

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Improved
p Quality
y and Business
results
• There is a clear correlation between
outstanding
t t di business
b i results
lt and
d winning
i i
quality
q y awards
• They achieve better employee
relationships,
l ti hi hi
higher
h productivity,
d ti it greater
t
customer satisfaction, increased market
share and improved profits
• Study???
• Ref:
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Important conclusion
concl sion
• Traditional view of quality control was that it
costs more to gget a higher
g p
product q
quality.
y In fact
quality is now reckoned to drive the productivity
machine.

• It means that if p
production does it right
g first time,,
waste is eliminated and costs are reduced. So
quality improvement results in productivity
i
improvement. t

• Poor quality will mean re-work, at all stages

including assembly. Poor tools could lead to
i
injuries,
j i
PEMP EMM502
b
bad
d output etc. 43
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Contd
• QUALITY IS A VERY GOOD WEAPON TO
BECOME MORE COMPETITIVE AND THIS IS
KNOWN AS STRATEGIC QUALITY MGT

• WHICH ASPECT OF QUALITY TO COMPETE

ON?

• Speed?
p Reliability?Service?Technology?Highest
y gy g
quality?

PEMP EMM502 44
• Mgt has to decide.
 PEMP EMM502

S mmar / Conclusions
Summary Concl sions
• The following concepts have been
i t d
introduced
d
– Quality as Conformance to specifications
– Customer focus, CI and TEI as cornerstones
of TQM
– Tangible
g and Intangible
g benefits of TQM in
the form of better profits and competitiveness

PEMP EMM502 45
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Session 2

Concepts of
Inspection,Quality
Q Control,
C Quality
Q
Assurance and TQM
and
Case Studies
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Session Objecti
Objectives
es
• At the end of the session the students
wouldld h
have understood
d t d
– Evolution of Quality concepts through different
stages and times
– Modern approach to Quality mgt

PEMP EMM502 47
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Session Topics
• Traditional Quality Mgt vs TQM
• Wh some quality
Why lit improvement
i t efforts
ff t fail?
f il?
• Qualityy in manufacturing g and service systems
y
• Quality control
ƒ St t
Strategy and
d policy
li off quality
lit control
t l
ƒ Qualityy assurance
Q
• Quality improvement

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Contd---
Contd
• Total quality
• E l ti off TQC
Evolution
• TQM
• Why some TQM efforts fail?
• S
Scope off TQM
• Cost of Quality
Q y

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T diti
Traditional
l vs T
Total
t lQQuality
lit MMgtt
• Traditional: Rigorous inspection ensures that
customers receive quality products
products.
• What is fundamentally wrong in this approach is
that it implies quality can be inspected into
products. But what is true is that manufacturers
p
must have a look at the processes of design and
prodn and do it right first time
time.

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Contd
• Modern quality mgt: Quality is achieved by
prevention of defects
defects. As we will know in other
chapters, modern era was heralded by a few
new thinkers
thi k kknown as quality
lit gurus.
• Theyy taught
g the concepts p of Statistical Qualityy
control, Cost of quality, Quality assurance,
Quality circles,Total
circles Total quality control
control, Quality mgt
etc

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Quality
ypplanning,
g, Control &
Improvement
• This process requires a continuous interaction
between the customer,
customer operations,
operations and other
parts of the orgn.
• These interactions occur thru a QUALITY
CYCLE
• See next slide

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The Quality
Q alit Cycle---pg
C cle pg 31

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Road map of Quality planning

• Pg 30

PEMP EMM502 54
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Implementation
• Foll sequence of steps---
– Define quality attributes important to customer---
Dimension, Appearance, Perf etc
– Define how to measure---Method
measure Method to test each
attribute
– Set quality stds
stds—Tolerances,
Tolerances, etc
– Set up a testing program—Sampling, etc
– Find and correct causes for poor quality
quality.Gradually
Gradually
prevent those by fool proofing and improving
p
capabilities.
– Continuously improve based on internal and external
feedbacks
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Why
y some quality
q y improvement
p
efforts fail?
• It fails due to Mgt approach and inadequacy of
leadership.
leadership
• Short term focus VS system improvement
• Training
T i i in i fit
fits and
d starts
t t
• Blaming g culture
• Not understanding Cost of quality and belief that higher quality will
lead to schedule disturbance and too expensive. (Actually better and
consistent quality gives better schedule adherence
adherence, flexibility and
cost)
• Sloppy procedures and processes
• Quality improvement needs—customer need focus, system
approach, cultural change , education and constant leadership at all
levels of mgt
mgt.
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Q alit in Man
Quality Manu and Ser
Services
ices
• Well developed QA systems have existed in
manu for sometime
sometime. These were focused on
technical issues. Manu orgns have transformed
themselves into customer driven modemode. So there
is a new way of handling product design, team
working in whole orgn etc
etc.
• A Manufacturing system showing key
relatioships between its various functions is
shown in next slide---
• The
Th relationship
l ti hi b
between
t quality
lit andd each
h
function is explained later
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Pg 38

58
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Relationship
p between Quality
y and
functions
• Marketing and sales—Needs, Expectations-
Service feedback
Service,
• Product design and engg----Product and
process specs are determined by this dept.over
dept over
design—profit?Under design—quality issues
• Purchasing
P h i and d receiving---Selection
i i S l ti off good d
suppliers, trg them, developing them, proper and
right
i ht amountt tto be
b stored
t d and d ensuring
i th
thatt matl
tl
available is of right quality
• PPS---Proper planning ensures timel
y
delivery.JIT planning
p g methods improve
p q
qualityy
and cost 59
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Contd
• Manufacturing and assembly---Process capabilities
• Tool Engg---Productivity
Engg Productivity and accuracy
• Industrial engg and process design---Job design,
Appropriate
pp p technology,
gy, Equipt,Work
q p, methods etc
• Finished goods-- inspection, testing
• Packaging , shipping and Warehousing---Protect
Warehousing Protect quality
after goods are produced, ensure timely delivery and
prevents damage in transit
• Installation and service----Proper instructions for
installation, commissioning are vital for getting quality by
customer. Customer service after sales is one of the
most imp factors for repeat orders and satisfaction
perception of quality ,and
and so,
so loyalty
60
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Q alit Control
Quality
• Quality Control -----Denotes all those activities
which are directed to maintaining and improving
Quality. Quality control involves ,
– Setting quality targets
– Appraisal of conformance
– Taking corrective action
– Planning improvement in quality

61
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Contd
• So QC refers to all those functions or activities that must
be pperformed to fulfill the company’s
p y q quality
y objectives.
j
• Quality control begins long before products/services are
delivered to customer
• Begins with designing in accordance with customer
specs
• Then raw materials, parts, supplies must be of a
specified quality
• System of conversion needs to be monitored to ensure
that it is making sub-units, semi-finished parts as
intended
• Finally parts are to be checked for acceptability
62
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Contd
• So QC involves establishing quality standards,
Use of proper materials
materials, selection of right
processes, right tooling, performance of
manufacturing operations under controlled
conditions, and finally inspection and testing to
conformance to specs”
“conformance specs .
• So QC is a preventive method to avoid/minimise
defects by controlling variability in materials
materials,
bought-out items, manufactured parts, and sub
units by taking timely preventive measures.
units, measures
• QC extends from beginning to end.
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Benefits of Quality
Q alit control
• Reduction of cost thru less scrap
• Product more acceptable to customer
• To understand variation in process
• Increase productivity
p y
• Improves /assures delivery time

64
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Do we
e need Q
Quality
alit Control?
• Absence of QC will lead to:
– No yardstick to compare quality of goods/services
– Difficulty in maintaining consistency of quality
– Dis-satisfied customers
– Increased rework
– Reduced lifetime of product/services
– Reduced flexibility in usage of spare parts
– Hence controlling Quality is vital

65
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Organising for Q
Quality
alit Control
• Traditionally QC was organised like a staff
function and acted as a watchdog over the
production dept.Such a relation is not the best
f morale.This
for l Thi iis ttackled
kl d b
by redesigning
d i i jjobs b off
workers to include primary QC responsibility.
This approach is quality at source
• It puts the prodn worker in the driver’s
driver s seat in
controlling process and thus product quality.
This is also called process focus to Quality

66
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More details about Quality

y at
Source
• Worker has responsibility for product quality
• Enlarges job scope which is first step to
empowerment
• QC experts
t can now ttake
k on other
th activities
ti iti lik
like
continuous improvement, training, supplier
i
improvement,t
• Company-wide quality planning,
• Clear accountability and responsibility for quality
• Enables wide spread use of SQC ---both SPC and
Acceptance sampling by ALL
• Enables problem solving skills to get dispersed
throughout the plant 67
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QC Strategy
Strateg and Policy
Polic
• The modern approach to QC is to adopt a strategy of
prevention of defects leading to quality right first time.
• This
Thi needsd a quality
lit policy
li tto b
be fformulated
l t d which
hi h
requires top mgt to:
– Establish an orgn for QC
– Capture customer’s needs
– Assess ability of orgn to meet these needs
– E
Ensure that
th t material
t i l andd services
i reliably
li bl meett th
the stated
t t d
need of quality
– Concentrate on p prevention of defects rather than on
detection of defects
– Educate and train all relevant employees
– Review QMS and bring in a CUlture of KAIZEN

68
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Compan wide
Company ide Q
Quality
alit Control
• CWQC activities involve market research, R&
D design
D, design, purchasing,
purchasing production
production, inspection
inspection,
and sales as well as all other related activities
i id and
inside d outside
t id th
the company.
• “Throughg everyone
y in the co understandingg both
statistical concepts and methods,and applying
them in all areas relating to product/process
quality variation, and repeated cycle of PDCA”---
- CWQC accomplishes business objectives

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Q alit Ass
Quality Assurance
rance
• QA refers to systems designed and implemented
by a firm which Assures the supplier and
customer that the product and service coming as
output would meet the customers specified
needs/specification
• Some activities are
– Reliability engg
– V l engg
Value
– Process control
– Inspection
– feedback
70
 PEMP EMM502

QA Systems
S stems
• A QA system is an assembly of elements such
as orgn structure,
structure responsibilities,
responsibilities procedures,
procedures
processes, and resources to manage quality.
Such a system must be documented in the form
of a Manual covering the foll areas (a few)
– Quality planning
– Training
– Provisioning of good supplies
– Analysis of returns---etc
– ALL DEPTS ARE RESPONSIBLE AND WILL WRITE DOWN
THEIR PROCEDURES AS PART OF THE MANUAL

71
 PEMP EMM502

Q alit Impro
Quality Improvement
ement
• Means better ways of doing things better than
std and thus improving product/process qualityquality.
• Quality planning and Quality control leads to
Quality improvement---WHY??
improvement WHY??
• Good quality planning results in processes
capable
bl off meeting
ti quality lit goals
l underd certain
t i
operating conditions.QC consists of measuring
actual
t l quality
lit perf,comparing
f i with
ith th
the std,
td and d
acting on any difference or variances.Then
quality
lit iimprovementt iis iimposed d on QCQC.
• Qualityy improvement
p in action is the std PDCA
Deming cycle 72
 PEMP EMM502

PDCA C
Cycle
cle

4. ACT 1. PLAN
Permanently Identify im-
im-
implement
p provements and
p
improvements develop plan

3. CHECK 2. DO
Evaluate pplan y plan
Try p on
to see if it a test basis
works

73
 PEMP EMM502

Concept of Total Q
Quality
alit
• When an orgn has a severe quality problem
,major
major quality improvements are reqd ACROSS
the company from shop floor to board rooms.
• “Total
Total quality control is an effective system for
integrating quality-dev, quality maint, and quality
improvement efforts of the various groups in an
organisation so as to enable marketing, engg,
production and service at the most economic
production,
levels which allow for full customer satisfaction”--
-DEFINITION
DEFINITION

74
 PEMP EMM502

Principles of TQC
• Top mgt policy----These are statements reg how
the quality of products/services fits into the
business strategies of the orgn.Mgt must talk of
and support philosophy of defect-free
defect free
production, do it right first time and kaizen which
are fundamental to TQC
• Quality control trg for everyone
• Product
P d t or service i d design—Product
i P d td design
i
should enable product quality.Standardisation of
parts,
t ease off manufacturability
f t bilit and d assembly
bl
etc need to be looked into in great detail.
• Quality material from suppliers 75
 PEMP EMM502

Contd
• Control in production---Total commitment
t produce
to d products
d t and d services
i off
perfect q
p quality,y, a commitment to strive
relentlessly for improvement in product
quality and the constant vigilance applied
to improving every detail of manu
processes is at the core of TQC
• Distribution,
Di t ib ti iinstallation,
t ll ti use, service
i

PEMP EMM502 76
 PEMP EMM502

TQM o er ie
TQM--overview
• The most usual approach is to define Total,
Quality and Management separately and then
together.
• Though definitions may vary
vary, inherent are
certain key features
• TQM partly
tl reflects
fl t the
th conceptt off T
Total
t l Quality
Q lit
as originally developed in japan---
– TQM primarily seen as a Mgt-led approach
– Emphasis is on quality in all aspects and functions of
the co operation, company-wide, not just the
manufacturing function or a major service to the
external customer
77
 PEMP EMM502

Contd o er ie
Contd-overview
– Employee awareness and motivation are essential
– ALL are responsible for ensuring quality in terms of
‘Satisfying the customer’,in what they do ,and the
approach is one of prevention of errors rather than of
detection and correction
– Organisational and cultural changes will be needed
– Identifying internal customers and emphasis on
partnering with suppliers will also be needed
– Data acquisition ,problem solving capabilities also
need to be built
– Team work is vital

78
 PEMP EMM502

Contd B llet points

Contd—Bullet

79
 PEMP EMM502

Contd
• “TQM IS A PHILOSOPHY THAT INVOLVES
EVERYONE IN AN ORGN IN A CONTINUAL
EFFORT TP IMPROVE QUALITY AND
ACHIEVE CUSTOMER SATISFACTION
SATISFACTION”
• One is the never-ending push to improve and
the other is a goal of customer satisfaction
• So TQM stresses on three principles;
– Customer satisfaction
– Employee involvement
– Continuous improvement in Quality

80
 PEMP EMM502

Contd
• Customer satisfaction---Today’s satisfied
customer may become tomorrows dissatisfied
one. Also each person defines quality as per his
own needs and means at that particular time
• Employee involvement—Crucial in achieving and
sustaining high levels of quality
quality.Employees
Employees must get
involved in quality mgt by encouraging them to use
quality tools and techniques, track perf, and identify
areas needing improvement.So employee trg and
motivation are vital.
• CI is
i ddriven
i b
by kknowledge
l d andd problem
bl solving
l i skills.
kill
New products, Reduction of variation in quality attributes must go on
regularly
81
 PEMP EMM502

Necessit for TQM

Necessity
• TQM adds value to services offered to
customers
t
• All persons get involved
• In the bargain performance and processes
are well understood
• TQM is economically sound strategy to
g run
follow in long

82
 PEMP EMM502

A ioms
Axioms
Everyone Members
Extensive
Must Must Top
Commit Have Mgt
Use Team work CI
Of scientific empowerment
To produce Customer commitment
T l
Tools,methods
th d
quality commitment

Sustained Mgt commitment to Quality

E Customer focus
L
E Prevention culture
M CI culture
E Root cause corrective action
N
T
Synergy of team work
S Thinking statistically
OF Benchmarking
T Supplier partnering
Q
M Training
Employee involvement
Process focus 83
 PEMP EMM502

Wh TQM programs FAIL?

Why
• Lack of commitment from Top mgt
• F
Focus on specific
ifi ttechniques
h i rather
th ththan systemt
• Not g
getting
g employee
p y buy-in y
• Program stops with trg.
• E
Expecting
ti results
lt immediately,
i di t l nott a llong tterm
pay-off
• Compatibility of methods chosen with the prodn
system and personnel.Balanced
personnel Balanced system is vital

84
 PEMP EMM502

Session 3

Cost of Quality
T l T h i
Tools,Techniques, &Systems
&S t
Q
for TQM
Case studies
85
 PEMP EMM502

Q alit and financial perf

Quality
• They are closely related.
• Let us first understand relation between quality
and cost.
• A powerful
f l idea
id iis COST OF QUALITY----
QUALITY made
d
up of prevention, appraisal, external and
i t
internall failure
f il costs—PAF
t PAF M Model
d l
• Please observe that apart
p from p prevention costs
, the rest are costs incurred of not doing things
g the first time.
right

86
 PEMP EMM502

Cost of quality
q alit

87
 PEMP EMM502

Q alit and financial perf

Quality
• By calculating this cost , it can also be managed
like any other cost
cost.
• Fair/good cos running their processes at 2 to 3
sigma capabilities would be spending anything
up to 25% of sales as cost of quality and in a
normal manu business this wd be 3 to 4 time
their profit margins.
• Hence
H cos which
hi h h
have concentrated
t t d on
continuously improving quality have seen their
costt off quality
lit down
d tto 3 to
t 6%

88
 PEMP EMM502

Ho to red
How reduce
ce cost of quality
q alit
• There is a relationship between cost of quality and
g
degree of conformance—see next slide
• There is an optimum quality level between the extremes
which minimises quality
• The reduction in cost of quality is done by revising
quality systems, trg, attitude of CI and proper leadership.
• However presently it is being recognised that
gy and trg
with better technology g the increase in
cost of prevention is not so steep and so the
p
optimum q
quality
y tends to zero defects and this is
the basis for six sigma programs
• Improved and outstanding quality also increases
revenue and market share by delighting the customers 89
PEMP EMM502

90
PEMP EMM502 91
 PEMP EMM502

Why is COQ Important?

•Quality processes cannot be justified simply because
y
"everyone else is doing
g them" - but return on qquality
y
(ROQ) has dramatic impacts as companies mature.
• Cost of Quality ("COQ") can be used to identify the
global optimum
g p for a pprocess,, and monitor that pprocess'
progress towards its global optimum. Global optimum is
defined as the best possible outcome from all physically
possible operating modes, combinations, and permutations
of the current process.
process

92
 PEMP EMM502

Different Cost of Quality

Cost of Quality Comprises of four parts:
•External Failure Cost.
•Internal Failure Cost.
•Appraisal
A i l Cost.
C t
•Prevention
Prevention Cost.
Cost

93
 PEMP EMM502

Contd
4 Segments of quality costs:PAF

• a. Prevention. This area covers avoiding defects (poka

yoke), planning, preparation, training, preventative
maintenance and evaluation.
• b. Appraisal. This area covers finding defects by inspection
(poka yoke),
yoke) audit
audit, calibration
calibration, test and measurement
measurement.
• c. Internal Failure. This area covers the costs that are borne
by the organisation itself such as scrap, rework, redesign,
modifications, corrective action, down time, concessions
and overtime.
• d.
d External Failure.
Failure This area covers the costs that are
borne by the customer such as equipment failure, down
time, warranty, administrative cost in dealing with failure
and the loss of goodwill.
MSRSAS 63
94
 PEMP EMM502

External Failure Cost.

Failure
Fail re costs occurring
occ rring after delivery
deli er or shipment of the
product and during or after furnishing of a service to the
customer.
Examples of External Failure Cost
• Complaints.
• Warranty Claims.
• Product Reject and Return.

95
 PEMP EMM502

External Failure Cost Contd..

• Concessions.
• Loss
L off Sales.
S l
• Recall Costs.
Costs
y
• Product Liability.
• Other External Failure.

96
 PEMP EMM502

Elements E ternal failure

Elements—External fail re
– Complaint investigation
– Returned
R t d goods
d
– Retrofit and recall
– Warranty claims
– Liability
Li bilit costst
– Penaltyy
– Loss of goodwill
– Lost
L t salesl

97
 PEMP EMM502

I t
Internal
l Failure
F il Costt.
C
Failure costs occurring prior to delivery or shipment of the
product, or the furnishing of a service, to the customer.
Examples of Internal Failure Cost
• Scrap.
• Rework
R k.
• Re-inspection.
• Re-testing.
R t ti
• Material review.
• Downgrading .

98
 PEMP EMM502

Elements Internal fail

Elements—Internal failure
re
– Design corrective actions,Rework due to
design changes,Scrap
changes Scrap due to design changes
– Purchased material rejn costs,Supplier
corrective actions
– Material scrap costs,labour
costs labour costs for making
up rework/rejn,Corrective action costs

99
 PEMP EMM502

Appraisal Cost
The
h costs associated
i d with
i h measuring,
i evaluating
l i or
auditing products or services to assure conformance to
quality standards and performance requirements.
A
Appraisal
i l Cost
C t Includes:
I l d
•Incoming and source inspection/test of purchased material
p
•In-process and final inspection/test
p
•Calibration of measuring and test equipment
•Associated supplies and materials
100
 PEMP EMM502

Elements Appraisal
Elements--Appraisal
• Defined as costs incurred in the planned
conducting
d ti off product
d t or service
i
pp
appraisals to determine compliance
p to
requirements. An orgn wd never want the
customer to be the only inspector!
• Unless perfect control can be
exercised,some appraisal cost will always
exist
i t

101
 PEMP EMM502

Elements Appraisal
Elements--Appraisal
– Receiving inspn,Stage Inspn,Sampling inspn
for charting
charting,
– Set-up inspection,outside certifications,
Chemical tests,
– Field perf evaluation,Test
evaluation Test bed evaluation
– Review of test and inspn data

102
 PEMP EMM502

Prevention Cost
The costs of all activities specifically designed to prevent
poor quality in products or services
services.
Examples of Prevention Cost:
• New product review.
•Quality planning.
•Supplier capability surveys.
•Process capability evaluations.

103
 PEMP EMM502

Elements Pre ention

Elements---Prevention
• Experience gained from elimination of
specific causes of failure is used for
prevention/recurrence.So such activities
h
have tto b
be b
built
ilt iinto
t th
the b
basic
i mgtt system.
t
– Marketing---Research,surveys,contract review all
linked to costs incurred in the accumalation and
continued evaluation of customer and user quality
needs
– Product/service Dev---Design reviews,design
qualification tests
tests,field
field trials

104
 PEMP EMM502

Elements Pre ention

Elements--Prevention
– Purchasing—Supplier selection
process/review,rating,technical
p g data review in
purchase orders,Supplier Quality improvement
program support
– Operations—Manu/service—Process
validation,APQP,Training,Quality planning,Design
and dev of special measuring equipment
– Quality Admin---Salaries,perf reporting and prior
activities quality audits
activities,quality audits,calculating
calculating quality costs
– Other prevention costs—Rent,travel etc connected
with the planning
planning,implementing
implementing and maintaining the
Quality system

105
 PEMP EMM502

Prevention Costs Contd

• Quality improvement team meetings.
•Quality improvement projects.
•Quality education and training.

106
 PEMP EMM502

Economic models for QA

• The traditional model ignores the reality that
quality degradation could significantly alter the
demand for the product.
• As prevention becomes the focus focus,new
new
technologies and automation eliminating the
human element,
element would allow cos to produce
perfect quality at a finite cost
• So
S the
th COQ will ill reachh its
it minimum
i i att 100%
conformance , justifying the philosophy of CI
f
from an economic i viewpoint
i i t

107
 Contd---

PEMP EMM502 108

 PEMP EMM502

Implementing Cost of Quality

Things
hi to consider
id bbefore
f iimplementing
l i COQ:
COQ
• Is the management team committed to making rapid
changes for maximum profitability, within the imposed
constraints
t i t (eg.
( Company's
C ' Mission,
Mi i lawsl & regulations,
l ti
stakeholder satisfaction, etc.)?

• A
Are th
there "sacred
" d cows",
" llegacy systems,
t ddepartmental
t t l
silos, and empire building that are exempt from re-
evaluation?

109
 PEMP EMM502

Implementing Cost of Quality Contd….

• Will people be receiving mixed messages and
conflicting
fli ti signals
i l bbetween
t C
Costt off Q
Quality
lit
("COQ") and the traditional management
measurements?
• Is there management commitment to do
something about the Cost of Quality ("COQ")
d t on a timely
data ti l bbasis?
i ?

110
 PEMP EMM502

Contd
• The PAF Model
– Increased awareness of the cost of quality quality, first leads
to an increase in appraisal costs
– Appraisal
A i l ttogether
th withith investigation
i ti ti and d
improvements in product/design/process/systems will
l d tto more spend
lead d on prevention ti
– Finally as preventive action takes effect the
prevention,appraisal
i i l and d ffailure
il costs realign
li and d ALL
costs reduce

PEMP EMM502 111

 PEMP EMM502

Contd
Quality costs are incurred in ALL depts
However major portion of Products total cost is fixed at
design stage itself
Many Quality problems get designed into the product
Companies must have a good feedback loop into the
CFT off design
d i tto ensure good d matching
t hi off customer
t
reqmt,process cap, resources etc so that Quality is
not a major issue
DFM,DFA,DFSS are the new methodologies

112
 PEMP EMM502

Contd
• Change the product?
Difficulty
Diffi lt
Opportunity
To
To
high
g change
change

Low

concept design prototype In service

prodn

113
 PEMP EMM502

The breakdo
breakdown
n of cost
• COQ can help focus on the overall cost of doing
business by dividing into:
– The normal cost of business---Std matl,labour, energy,and other
costs to make the product
– Prevention costs—associated with ensuring g by
ypplanning,that
g,
things will meet customer needs
– Appraisal-associated with checking that they do meet customer
needs
– Failure to do with failing to satisfy customer needs
• Normal costs of business together with prevention costs
add
dd value
l
• Appraisal and failure activities add cost

114
 PEMP EMM502

Contd
• TCOQ=COC +CONC (cost of conformance
+cost of nonconformance)
• Six key areas to address when improving TCOQ
– Basic organisational capabilities
– Industrial process variation
– Business process variation
– Engineering/design process and documentation
– Quality of specification
– Supplier capabilities

115
 PEMP EMM502

Management Techniq
Technique
e
• Quality costs are too great is a sign of mgt ineffectiveness and
thus affects organization's competitiveness
• It quantifies the magnitude of the Quality program in the
language mgt knows best---money.
• 20% could be in manu companies
• Arguments are stronger and funding is easier and very imp---
effectiveness of action can be measured comprehensively –
when
h conceptt off Quality
Q lit costt is
i introduced
i t d d
• QUALITY IMPROVEMENT WILL MEAN REDUCTION OF COST
OF POOR QUALITY AND WILL IMPACT PROFITABILTY
POSITIVELY

116
 PEMP EMM502

Q alit cost Bases

Quality
• Quality costs have to be expressed in relation to
some baseline cost
– Quality cost/Hr of direct labour cost
– Quality cost/Rupee of production cost
– Quality cost/Rupee of net sales
– Quality cost/unit –when
when lines are similar
Because each has certain shortcomings all three can be
tracked.
tracked
In instances of improvements planned in specific areas
other ratios like—Design quality cost as% of design
costs;Purchasing Quality costs as% of material costs
can be used
117
 PEMP EMM502

Collection and reporting

• Measurement of actual quality costs is an
accounting g fn.
• As deptl cost codes form the basis for cost data,a
significant amount of quality cost can be got from
this source.
• Some quality costs cross dept lines and wd require
deeper analysis before
f allocation:ex scrap? ?
• Another case may be market research---only that
portion
ti off the
th activity
ti it pertaining
t i i tot customer
t quality
lit
needs shd be charged to Quality cost
• Incoming inspn wd d be appraisal,whereas
appraisal hereas supplier
s pplier
certification wd be prevention
• Cost of a team meeting might be due to failure,but
failure but
cost of solution might be prevention 118
 PEMP EMM502

Q lit C
Quality Costt R
Reportt

• See Next Slide

119
PEMP EMM502

120
 PEMP EMM502

Anal sis
Analysis
• The most common techniques are
– Trend analysis
– Pareto chart
M t may like
Mgt lik to
t know
k the
th optimum
ti costs.
t QQuite
it difficult
diffi lt
Comparison with similar organisations
PAF model –tend to zero of failure cost

121
 PEMP EMM502

Implementation
• Choose a single product line
• Training
Training—Identify
Identify opportunities for
improvement, Justification of CI, measurement
of results
• Measurement of Quality costs,determination of
proper
p p indexes and ratios,establish
, a trend-
analysis chart,identification of
opportunities,assignment of project teams,
reporting
ti off results
lt
• Caution—Assess benefit---Small orgns may find
it difficult
diffi lt to
t implement
i l t &better
&b tt tot concentrate
t t on
Scrap and easily measured external failures
122
 PEMP EMM502

Contd
• Basic accounting procedures are to be
modified,if
difi d if reqd
d
• Each cost element is described
described,how
how to
collect data,method to treat fringe
b
benefits,etc
fit t
• After pilot,extend
pilot extend to whole orgn

123
 PEMP EMM502

Session 4

Tools,Techniques, &Systems for TQM

and
Strategic mgt for Total quality
Case Study

124
 PEMP EMM502

Session Objecti
Objectives
es
• At the end of the session the students
wouldld h
have understood:
d t d
– Definition of Process Mgt
– Tools and Techniques used in different
processes

Overview of major elements of total

qquality
y infrastructure
Benefits, Axioms,Elementsof TQM

125
 PEMP EMM502

Session Topics
• Definition of different Processes
• What is Process Mgt
• Problem solving tools
• Organisational
g infrastructure
• Leadership and Mgt styles
• Enablers like Quality circles,Self
empowerment

126
 PEMP EMM502

R C off determinants
Re-Cap d t i t off Quality
Q lit

• Several activities are necessary to achieve

quality--------
quality
– Quality of Design
– Quality Capability of production process
– Qualityy of conformance
– Quality of customer services
– Organisation Quality culture

127
 PEMP EMM502

C td
Contd------

• Quality of design is determined before the

product is produced.
produced Co must determine what
it’s customers want. Then the product and
services can be designed to exhibit the attributes
necessary to meet customer expectation. CFT’S
are involved
• Quality of prodn process means that prodn
processes must be designed and built that have
capability for producing attributes named above
• Quality
Q lit off conformance
f

128
 PEMP EMM502

C td
Contd

• Quality of customer service---customers must be

so managed that they have been treated fairly
and attended to promptly
• Lastly, entire orgn must become energised to
g above activities to meet customers
doing
expectations.Mechanism must be in place to CI
every fact of the orgn towards the objective of
ever increasing levels of customer satisfaction.

129
 PEMP EMM502

C td
Contd

• Quality leads to
– Competitive
C titi advantage
d t
– Profitability
y
– Source of value
– Personal
P l values
l

Quality drives the Productivity Machine

130
 PEMP EMM502

Tools for TQM

TQM-Overview
O er ie
• Tools for Quality planning
– QFD---Translating
Q a s at g customer
custo e voice
o ce into
to a co
competitive
pet t e
product at best value and cost.
– Concurrent Engg---It is a product development
approachh where
h allll agencies
i lik
like d
design,
i Pil
Pilott
dev,production and sales are linked in real time to the
dev process to avoid conflicts and crash the dev time.
– FMEA—A structured approach to find out and
minimise the RISK of different modes of failure of a
product/process
d t/ in
i servicei ,att the
th start
t t it
itself.
lf
– New MP methods—Used to structure random ideas,
to organise projects,
projects to make strategic plans

131
 PEMP EMM502

Tools for CI
Tools for Continuous Improvement
– Strategic Nature Tools
– Basic general Tools
• Strategic Tools
– Selected based on strategic needs in deciding what products to
l
launch,what
h h t tto iimprove and
dhhow tto iimprove,etc—LIKE
t LIKE
– BM
o Kaizen
o PDCA
– BPR
– JIT/KANBAN
– Taguchi loss function/DOE
– COQ Analysis
– Six Sigma Practice
– Tools in RED are Radical improvement tools

132
 PEMP EMM502

Contd
• Basic tools
– 7 Simple QC Tools
• Collection of data &process
p mapping—-Flow
pp g chart,,
Check sheets
• Presentation/Display—Run,Bar,piecharts;
Presentation/Display Run,Bar,piecharts;
Histograms,Scatter diagram,Pareto diagram
• Data analysis/Conclusion
analysis/Conclusion—C&EC&E diagram,
diagram
• Understand variation type,Control &improve—
Control charts,
charts Capability studies
studies,Poka-yoke
Poka yoke

133
 PEMP EMM502

P
Process Management
M t

• We will Understand the foll:

– What is a process? What are common
business processes?
p
– What is process mgt?
– Important
I t t business
b i processes that
th t affect
ff t
customer satisfaction
– Process improvement

134
 PEMP EMM502

Wh t is
What i a Process
P
• A Process is a sequence of activities that is intended to achieve
some result,typically to create value for customers
• The components of a process are 7 M’S:
– Materials
– Manpower
– Methods
– Machines
– Measurement
– Maintenance
– Management
Process components change over time.
Process performance depends on how the process has
been designed,built,operated and maintained

135
 PEMP EMM502

C
Common b
business
i processes
• Launching new products
• Recruiting new employees
• Fulfilling customer orders
• Producing goods
• Providing customer service
• M i t i i control
Maintaining t l
• Research and dev
• Distribution
• y
Payroll calculation
• Purchasing
• Planning
136
 PEMP EMM502

P
Process Management
M t

• Process mgt involves planning and

administering the activities necessary to achieve
a high level of perf in a process and identifying
opportunities
t iti ffor iimproving
i quality
lit and
d
operational perf and ultimately customer
satisfaction
• PROCESS MGT IS THE DESIGN, DESIGN CONTROL,
CONTROL
and IMPROVEMENT of KEY BUSINESS
PROCESSES

137
 PEMP EMM502

C td
Contd-----

• Design: Ensures that products meet customer

reqmts;and that prodn/delivery processes are capable of
achieving high levels of perf
• Control: Any process perf measure naturally fluctuates
around some average level.Abnormal conditions cause
an unusual deviation from this p
pattern.Removal of these
causes and thus enabling to maintain the perf level is the
essence of control
• Improvement: Involves changing the perf to a new
level which is better than the existing level

138
 PEMP EMM502

C td
Contd----

• So we can conclude:
– Process mgt helps to prevent defects and
errors,eliminate waste,and thereby leads to better
quality
q y and improved
p company
p yp perf through
g shorter
cycle times,improved flexibility,and customer
responsiveness
• We need to understand 4 important business
processes:
• Design process, Production/delivery process,
Support process. Supplier process
• WeW willill understand
d d the
h bbasics
i off each h process

139
 PEMP EMM502

D i P
Design Process

• New product dev is a crucial part of business

• Product designers face a hard challenge
because changes in technology, consumer
preferences and competitive conditions force
them to aim at target/potential customers.
• The
Th traditional
t diti l way off developing
d l i products
d t iis a
sequential one-----:
• Marketing /R&D are sources of a new product
dev
• Product designers convert the concepts into a
set of functional characteristics (ie how product
should work, features, cost etc) 140
 PEMP EMM502

C td
Contd---------
• Product engineering converts the functional specs to
product specs(detailed
p p ( drgg of p
product/parts/matls
p etc))
• Process engineering converts above into process
specs(how to make/which machine etc)
• This is also called ‘over the wall’ approach.This tends to
be long and costlier
• THE ALTERNATE MODERN APPROACH IS CALLED
CONCURRENT/SIMULTANEOUS DESIGN.
• As the name suggests Concurrent engg brings together
reps from various depts together into a TEAM to
sim ltaneo sl design the prod
simultaneously productct and process
process.Also
Also the
key suppliers may be included

141
 PEMP EMM502

C td
Contd----
• This method drastically reduces ‘Time to market’
and so is very yp powerful. Real life examples
p are
our own Scorpio which took just 18 mths to
develop against 2-3 yrs earlier.
• Of course one must admit that new tools like
CAD,CAM,FMS,CIM have made the
D
Development
l t cycle
l ffastt and
d accurate
t by
b
removing/reducing human error
• However
H old
ld hhabits
bit off :
– Not delegating authority to dept rep on team
– Adversarial relation between depts
– Reward
e a d sys
systems
e s ofo individuals
d dua s needs
eeds to
o be
altered 142
 PEMP EMM502

P d td
Product design
i ttechniques
h i

• Design for Manufacture (DFM)

• D i ffor A
Design Assembly(
bl ( DFA)
• Failure Mode effect analysis
y (FMEA)
( )
• Value engineering
• D i ffor Recycling/Legal/Environment
Design R li /L l/E i t
• Design
g for Serviceability
y
• Design for Ergonomics

143
 PEMP EMM502

St
Steps in
i Developing
D l i N New P
Products
d t

1. Technical and economic feasibility studies

2. Prototype design
2
3. Performance testing of prototype
4. Market sensing/evaluation and economic
evaluation of the prototype
p yp
5. Design of production model
6 Market/performance/process testing and
6.
economic evaluation of production model
7 Continuous
7. C ti modification
difi ti off production
d ti model
d l

144
 PEMP EMM502

P d ti /d li
Production/delivery P
Process
• The goal of Process Planning is to develop an
efficient p
procedure to satisfy
y both internal and
external customers
• Process planning---Process Design,Operation
Design
• Actual Process design is the choice of process and
detailing the Process parameters .Operation
O design
is about the specific station.
• A flow
fl chart
h t is
i a very useful
f l ttooll iin d
doing
i thi
this
• Service processes also need same care BUT we
m st understand
must nderstand that ser
services
ices req
requireire different
degree of customer contact, labour intensity and
customisation---EX---Railways
customisation EX Railways, Fast food RestaurantRestaurant,
Interior design 145
 PEMP EMM502

S
Supplier
li P Process
• We have seen that suppliers need to be treated as
p
partners.
• Suppliers have to be Quality vendors, Certified vendors
and Excellent vendors
• As businesses get dispersed globally one must manage
a complex network of suppliers.
• Also the trend is to outsource all work except CORE
work. So One must develop :
– A Strategic long term relationship with suppliers
– It has to be a Win-Win relationship
– It has to based on trust

146
 PEMP EMM502

P
Process Improvement
I t

• TQM rests on a foundation of CI.

• It needs a continuous effort to Reduce
rejections, cycle time, inventory ,waste and idle
time etc)
• Process improvement is at the heart of CI.
• Certain proven methods are:
– 5W and 1/2H Method----Ex A
– Work simplification
– Kaizen methodology (Quality circles, Suggestion scheme, TPM
etc)
– Benchmarking
– Business process reengineering
147
 PEMP EMM502

Contd

148
 PEMP EMM502

T l ffor Process
Tools P Mgt
M t

• For Design Process

– Design of Experiments
– Taguchi’s Methods
– Taguchi Loss function Sandeep
– QFD
P k Y k (F
Poka-Yoke (Failil safing)
fi )
For Problem Solving
– Deming
D i cycle l
– Breakthrough
– Crosby program

149
 PEMP EMM502

St
Stages off Problem
P bl solving
l i &TTools
l

• There are four stages of Problem solving

– Define and analyse problems
– Generate ideas for solutions
– Evaluate and select ideas
– Implement ideas
There are
Th
7 Simple QC Tools
7 M&PT Tools
l
We can in general associate the specific stages of
problem
bl solving
l i to
t specific
ifi ttools.
l D Details
t il llater
t on

150
 PEMP EMM502

Q lit ffunction
Quality ti deployment--QFD
d l t QFD

• QFD is an excellent way for firms to capture

Voice of customer
“Voice customer”
It helps to determine what will satisfy the
customer and also where to deploy Quality
efforts.
QFD technique claims to reduce design cycle
time and engineering changes and to meet
better the customer demands.
QFD is diagramatically represented by a house

151
 PEMP EMM502

Ad antages of QFD
Advantages
• QFD is an effective management tool in
which customer expectations are used to
drive the design process
• Advantages are
– An orderly way of obtaining and presenting info
– Sh t product
Shorter d t dev
d cycle l
– Considerable reduced start-up costs
– Fewer engg changes
– Reduced chances of oversights during design
– An env of team work Exhibit 2 depicts how to draw a QFD for dev of a camera
– Consensus decisions
– Preserves everything in writing 152
Steps given in next slide

153
 PEMP EMM502

Steps
p in building
g a House of
Quality
• Step1—List Customer Reqmts—WHATs
• Step2---List Technical descriptors—HOWs
• Step3---Develop a relationship matrix between WHATs and HOWs
• Step4---Develop an inter-relationship matrix between HOWs
• St 5 C
Step5---Competitive
titi assessments—both
t b th C
Customer
t and
dTTechnical
h i l
assessments
• Step6—Develop
Step6 Develop prioritised customer reqmts----
reqmts importance to
customer,Target value,Scale-up factor,sales point,Absoluteweight
• Step 7---Develop Prioritised Technical descriptors—Degree of
difficulty Target value,Absolute
difficulty,Target value Absolute weight,Relative
weight Relative Weight
• EXAMPLE OF HANDLEBAR FOR MOUNTAIN BIKE------
----

154
 PEMP EMM502

List cust reqmts and Tech

Descriptors\
p
What’s & How’s
155
 PEMP EMM502

Develop
Relation matrix betw
how and what

156
PEMP EMM502

157
PEMP EMM502

Worst=1
Best=5

158
PEMP EMM502

159
PEMP EMM502

160
PEMP EMM502

Conclude--

161
 PEMP EMM502

A simpler QFD
• Refer Hand-out

162
 PEMP EMM502

P k Y k (f
Poka-Yoke (failsafing/Mistake
il fi /Mi t k proofing)
fi )

• A Good process design prevents defects from occurring at all

• Poka-yoke is an approach for mistake-proofing processes using
automatic methods to avoid simple human errors
• Developed by shigeo shingo
• Examples:
– Floppy disc cannot be loaded reverse due to bevelled edge,Same for Thumb
drive
– Software in M.S will automatically check for any unsaved files before closing
– Limit
Li it switches
it h on machineshi connectedt d to
t lights
li ht that
th t warn operators
t off wrong
loading.
– Self-addressed stamped envelopes
– Diameter of filler hole for petrol ---leaded/unleaded
leaded/unleaded
– Different plug fittings for 110 v and 220 v
– Manhole covers are round not square ,Microwave ON only if door is closed
– Device /counter to count number of holes drilled and a buzzer to warn if
ALL holes are not drilled.
Machines will start ONLY if Shield is closed,/Both buttons operated
together,
g ,
163
 PEMP EMM502

M t model
Mgt d l ffor problem
bl solving
l i

• Problem solving
– Successful quality improvement depends on ability to
identify and solve problems.
– What is a problem?
– It is a deviation between what should be happening
and what actually is happening
happening.
– A problem has symptoms and causes.
– Many problems require a systematic process to
develop and implement solutions
– Leaders of quality have proposed some
methodologies and we will study a few.

164
 PEMP EMM502

D i cycle----PDCA
Deming l PDCA C
Cycle
l

• PLAN
• DO
• CHECK
• ACT
• This cycle is basis for Kaizen or Continuous
improvement

165
 PEMP EMM502

M
More d
details
t il

Never ending improvement

a p

c d

Plan-Select a process for improvement ,set goals, discuss and develop plan for improvement
Do—Team implements the plan, monitors the progress.
Check—Analyses data and checks that results correspond to goals set in plan stage
Act If results are ok,team
Act---If ok team documents the revised process and makes it the STD and deploys
Wherever applicable

Normally start with a PILOT PROJECT AND THEN APPLY TO WHOLE COMPANY

166
 PEMP EMM502

PDCA ccycle
cle

167
 SDCA cycle
Act

Standard
ACT to improve Know the
the standard STANDARD
or its use

CHECK the work DO the work

against
g the according to
standard th standard
the t d d

Do
Check

168
 PDCA cycle

Determine
Act goals
l & Plan
targets
1) Standardise
2) Take
countermeasures Determine
for gap or side methods of
effects
ff t reaching goals
Engage in
1) Check the
effects of education and
implementation training
g
against target
g
2) Analyse gap
3) Check for side
Check effects Implement
p Do

169
 SDCA – PDCA cycle
DO CHECK
improvement improvement
Improvement results
activities
ti iti D C
PLAN
improvement P A ACT to
standardize to
results or plan for
next improvement
y
cycle
Focus on
vital view Initiate
Standardisation
improvement

Know the
ACT to improve the STANDARD
standard or its use
A S
Routine DO the work
work C D according to the
CHECK the work against standard
the standard
170
 PEMP EMM502

J st in Time (JIT)
Just
• JIT is a technique ,where products/services are made
exactly as per reqmts of customer---both
customer both quantity and
timing without excessive inventory.
• The above concept requires
– Supplies have to be perfect quality
– As
A iinventories
t i are llow, th
the machines
hi and
d processes
MUST produce zero defects as otherwise the lines
will come to a stop
stop. This encourages problem solving
and CI which is basis for TQM

171
 PEMP EMM502

jit components
• Jit now constitutes:
• Flexible
Fl ibl resources
• Cellular layouts
• Pull prodn system
• Kanban prodn control
• Small-lot prodn
• Quick setups
• Uniform prodn levels
• Qualityy at source
• Tpm
• Supplier network reliability.
172
 PEMP EMM502

Problem vs
s tools

173
 PEMP EMM502

T l ffor process improvement

Tools i t

• Primary application of each tool in the problem

solving process----Ex
process Ex 3
• Understanding the issues
• Flow chart :Helps to understand how a process works
works.It It is a team
effort and the first step to understand the present problem--------------
------------Ex 4
• Run chart: Gives the general idea of variability at present.It is a chart
or a line graph in which data is plotted over time.-------------------------
Ex 5
• Control charts: Enable operators to identify problems as they
occur.(Already covered in great depth earlier)

174
 PEMP EMM502

Flo chart
Flowchart

175
 PEMP EMM502

R n chart
Run-chart

176
 PEMP EMM502

Contd

177
 PEMP EMM502

C td
Contd----

• Fact Finding
• Check sheet : It is a special type of data collection form
form.
Facilitates systematic record keeping or data collection
and observations are recorded as they happen and can
be interpreted without additional processing-----Ex 6
• Problem Finding
• Histogram :Provides visual summary of data.It shows
whether a process is centred
centred, degree of variation
variation,and
and
whether data meets specs.This helps a deeper insight
into the pattern of data associated with the activity---Ex 7

178
 Check sheet----Ex 6
Computer related problems

Problems Week 1 Wk 2 Wk 3 Wk 4 total

Software
access
1111 1 11 1 8
Network 111
issues
11 1111 111 13
Memory
issues
11 11 111 11 9
E-mail 1111 1111 1 1111 1111 1111 1111
1 27
Server 1
problems
11 1
179
 PEMP EMM502

Histogram

180
 PEMP EMM502

C td
Contd----
• Pareto diagram :Based on principle of Vital few Trivial many.Called
80-20 rule.ie 20% of items causes 80% of inventory and so on.So
this helps to Focus efforts
efforts---Ex
Ex 8
• Idea Finding
• Brainstorming:
B i t i h l creativity
helps ti it and
d uncovers hidden
hidd issues.Group
i G
based ,non-critical, round robin concept.
• Cause and effect diagram: Pictorial representation between a quality
characteristic and its causing factors.
• Also known as Fish bone/Ishikawa diagram
• A problem can be due to many reasons and becomes simpler and
easier to solve only if true causes can be identified.Four M’S are
listed as main reasons and the diagram
g is built. Use 5 W’s and 1 H--
-------Ex 9

181
 PEMP EMM502

Pareto diagram

182
 PEMP EMM502

Ca se and effect diagram

Cause

183
 PEMP EMM502

C td
Contd----

• Solution finding—Evaluate ideas that have been

proposed and select the right one
one.
• Scatter diagram :Determines whether a relation really
exists between two process characteristics and the
direction.Actually these are graphical formats of
regression analysis eqn---Y=f(X) +c-----------Ex 10
• Implementation: Responsibility must be assigned to a
group/Leader.Here the 7 Management planning tools are
useful (Affinity diagram, Inter-relationship diagram, Tree
diagram, Matrix data analysis & diagrams, Process
decision diagram charts
charts, Arrow diagrams)

184
 PEMP EMM502

Scatter diagram

185
 PEMP EMM502

P bl
Problem Solving
S l i & QC Tools
T l
PROBLEM PROBLEM ANALYSIS
IDENTIFICATION

186
 PEMP EMM502

Mgt and planning tools

• Affinity diagrams— Organising data in natural groups
• Inter-relationship
Inter relationship diagrams
diagrams– Identify central problem
• Tree diagrams--- Sequential dev of activity from base
problem
bl
• Matrix diagrams-- Relationship between ch’s,fns and tasks
• Matrix data analysis--- Input from matrix diagram and arrange
to find quantitative link between variables
• P
Process decision
d i i program charts--- h t E h
Each
branch of tree is taken and analysed foer
possible problems and countermeasures
• Arrow diagrams---
g Activities from start to finish of a
project are listed out 187
 PEMP EMM502

Introd ction
Introduction
• These had their roots in post-war OR dev
i US
in
• These tools can be used to address
problems typically faced by mgrs who are
called
ll d upon tto structure
t t unstructured
t t d
ideas,make strategic plans and organise
and control large projects

188
PEMP EMM502

189
PEMP EMM502

190
 PEMP EMM502

Affinit Diagram
Affinity
• Allows the team to creatively generate a
l
large number
b off id
ideas and
d th
then llogically
i ll
group
g p them for p
problem understanding g and
solution.

191
PEMP EMM502

192
 PEMP EMM502

One more e
example
ample

193
 PEMP EMM502

Interrelationship diagram
• Clarifies the interrelationship of many factors
• Allows the team to classify the cause and effect among
all the factors so that key drivers and outcomes can be
used to solve the problem
• Steps are
– Agree on issue
– All ideas from other techniques/brainstorming should be laid
out—as at ‘a’
– Each issue is compared with ‘a’ a and arrows are drawn in the
stronger direction.First iteration is over
– Further iterations compare b with c,d,e,f;;;issue c with d,e,f;;;d
with e,f and finally e with f

194
 PEMP EMM502

Contd ID
Contd--ID
– Entire diagram reviewed and revised after
involving upstream and downstream
processes
– The diagram is completed by tallying
incoming g and outgoing
g g arrows and p placing
g
this info in a box
– ISSUE B is the driver as it has zero incoming
arrows and five outgoing arrows.It isusually
th roott cause
the

195
PEMP EMM502

196
PEMP EMM502

197
 PEMP EMM502

I t
Inter-relationship
l ti hi di
diagram—one more ex

• Strategic factors Which one to

address
dd FIRST?
Customer ROI
value
l
Product
Customer Innovation
service

Work
Technology
env
e

198
 PEMP EMM502

Tree Diagram
• Used to reduce any broad objective into
increasing levels of detail in order to achieve the
objective
– Choose an action oriented objective statement from
ID,Affinity,Brainstorming etc
– Using brainstorming choose the major headings ,as
shown, under means
– Generate next level by analysing major headings
– Generally 3 levels ok to complete diagram and make
assignments

199
PEMP EMM502

200
 PEMP EMM502

One more ex

201
 PEMP EMM502

Matri Diagram
Matrix
• Aids in analysis and rating the relationship
among two
t or more variables
i bl
• QFD is a very good ex of Matrix diagram
• Symbols or numericals can be used

202
PEMP EMM502

203
 One more e
ex
St
Strong relationship
l ti hi medium
di
Improve Improve Develop new
work manu products
environm
tech
ent
actions
goals
Cost
effectiveness

High
quality

Share holder
value

weak
204
 PEMP EMM502

Process Decision Program

g
Chart
• This avoids surprises and identifies
countermeasures
t

205
PEMP EMM502

206
 PEMP EMM502

O more ex
One

207
 PEMP EMM502

Acti it net
Activity network
ork diagram
• Allows team to sch a project efficiently

208
 PEMP EMM502

Arro Diagrams
Arrow
• For project planning—install a new computer system

3
4

7 8
6
1 2

Needs analysis
5 Configure sys
Trg
gpprepare
p
Req bids
Sch trg
Purchase equipt
Install
Train users
209
 PEMP EMM502

Integration of tools
• Although the MP tools can be used
i di id ll th are mostt effective
individually,they ff ti when
h
y
used as a system to implement
p an
improvement progam.

210
PEMP EMM502

211
 PEMP EMM502

Activity Vs Cost Relationship

212
 PEMP EMM502

Responsiveness
p Rules

• 0.05
0 05 TO 5 RULE
9 Only 0.05 to 5% of the total time adds value

• 3/3 RULE
9 Time Lost In A Process Is Equally Attributable To
3 Factors
¾Waiting for the completion of work
¾Waiting for physical or intellectual work
¾Waitingg for decision

213
 PEMP EMM502

Responsiveness Rules

• ¼ - 2 – 20 RULE
9 If time is compressed in a process by one-
quarter, labour productivity doubles and costs
are reduced by 20%

• 3 x 2 RULE
9 If any process is faster than competition by 50%,
growth will be 3 times industry average & profits
will be 2 times industry average

214
 PEMP EMM502

Time Compression - Benefits

• Increased productivity
• Price premium
• Reduced risk
• Increased market share

215
 PEMP EMM502

S mmar and Concl

Summary Conclusions
sions
• The following concepts have been
introduced
– The progress of Quality movement from
I
Inspection
i stage to TQM and d the
h ddrivers
i at
each stage
• The three foundations of the TQM movement
• Continuous Improvement
p
• Customer focus
• Total Employee Involvement

216
 PEMP EMM502

Session 4

Strategic Mgt for Quality

Leadership styles
Cultural and structural issues

217
 PEMP EMM502

Strategic Management for Total

Q
Quality
y

218
 PEMP EMM502

B ilding Organisations
Building
---Organisational Infrastructure
---Leadership
Leadership styles most suitable for TQM
environment
---Building a Quality culture with customer
focus

219
 PEMP EMM502

Scope of TQM
• Three core principles of TQM------
– Focus on customer
– Participation and team work
– Continuous Improvement
– SUPPORTED BY
– Organisational infrastructure
– Set of mgt practice
– Wide variety of tools and techniques

220
 PEMP EMM502

Organisational Infrastr
Infrastructure
ct re
• Leadership
• Strategic planning
• HRM
• Process mgtg
• Data and info mgt

221
 PEMP EMM502

Set of Mgt Practices

• Refers to those activities that occur within a mgt
sys to achieve high perf objectives
• Examples
• R
Reviewing
i i co perff
• Determining employee satisfaction
• Co-ordinating
C di i d design
i and d prodn/dely
d /d l process to
ensure trouble-free introduction and dely of
products and services

222
 PEMP EMM502

Tools
• Includes various graphical and statistical
methods
th d tot plan
l workk activities,
ti iti collect
ll t
data ,,analyse
y results,, monitor progress
p g
and solve problems Tools help to achieve
/graduate to QM from QC

223
 Comparison
Quality control Quality mgt
Inspn after fact Design quality into
product and process
Focus on effects of poor Focus on identifying and
quality
lit prevention
ti off causes
Customer is p
purchaser Customer is user
Some defects is normal Zero defects is goal
Quality improvement is costly Pays for itself
Of inspn or of some individual Responsibility of producer 224
 PEMP EMM502

Overview of major
j elements of Total q quality
y
Organisational infrastructure
• Leadership
– All mgrs needd tto create
t clear
l quality
lit values
l and
d hi
high
h
expectations and then build these into the operation
strategies
– Senior mgt personnel must regularly and personally
get involved in Quality----
Quality planning reviewing perf--
planning, perf
serving on quality teams, interacting with customers,
rewardingg employees
p y for q
quality
y achievement
– Above will create systems and methods to achieve
excellence
– So they must be role models and place quality very
high on all meeting agendas
225
 PEMP EMM502

Contd-----
Contd
• Strategic planning
– Achieving Quality is a means to market leadership
and long term survival of co
– Mgt must address long term issues
• Who are our customers
• What is our mission
• What principles do we value
• What are our short term and long term goals
• How do we achieve these goals
Strategic planning drives the qualty impovement throughout the
orgn it helps in anticipating changes and allocating resources
orgn.it
accordingly

226
 PEMP EMM502

Contd--------
Contd
• Human resource mgt
– Meeting the company’s
company s quality an perf goals needs
committed, trained and involved work force
• Involves education
education, training
training, reward and
recognition to motivate
• Taking care of safety,
safety health etc
• Aligning the entire co human resource towards
customer satisfaction
• Challenges of extreme competition and change in
work culture

227
 PEMP EMM502

Contd----
Contd
• Process mgt
– Involves design and control off conversion activities
– Well designed processes lead to better quality
products
– Strongg emphasis on prevention
– Developing good suppliers
– Good internal relationships

228
 PEMP EMM502

Contd---
Contd
• Data and info mgt
– Many types of data and info needed for quality
assessment and improvement
• Customer needs
• Product and service perf
• Operation perf
• Market assessments
• Competitive comparisons
• S
Supplier
li perff
• Employee perf
• Cost and financial perf

229
 PEMP EMM502

TQM demands
• New style of managing and new skill sets
– Think in terms of systems
y
– Define customer reqmts
– Planning for quality improvement with each customer
– Life long learning attitude
– Team Building
– Encouraging openness
– Creating trust
– Leading and participation
– Solving problem with data
– Delegating and coaching
– Implementing change
– CI

230
 PEMP EMM502

Leadership and TQM

• In firms committed to TQC, various common
traits are visible:
– They create a clear strategic vision and values based on quality
which serve as a basis for business decisions a all levels
– They set high expectations
– They demonstrate personal commitment and involvement in
quality issues
– They integrate quality into daily leadership and mgt
– They also integrate social values into business practices
HOW IS IT TO BE DONE

231
 PEMP EMM502

G id li
Guidelines ffor effective
ff ti leadership
l d hi
• Give attention to both external and internal customers
• Empower subordinates after mentoring
• Emphasise improvement rather than maint
• Emphasise prevention rather than cure
• Encourage team work, collaboration
• Train and coach rather than supervise
• Learn from problems
• Continually improve communications
• Continually demonstrate commitment to quality
• Ch
Choose suppliers
li on quality
lit basis
b i rather
th ththan price
i

232
 PEMP EMM502

Q alit and orgn str

Quality structure
ct re
• Effectiveness of any leader will depend on
the co’s
co s orgn structure
structure---ie
ie authority
authority,
responsibility,reporting lines,perf stds.
• Traditional
T diti l cos b
build
ild orgn structure
t t tto
maintain status quo.
• So there will be lot of rules and regulations
and more levels of hierarchy. y
• Although many diff structures exist all are
variations of LINE,LINE and STAFF,MATRIX
orgn
• In a line orgn quality dept is distinct from
other depts 233
 PEMP EMM502

Contd
• In a matrix orgn ,a quality expert wd be assigned
administratively to the quality dept but wd be
attached to the functional dept for daily
assignments
i t
• Now-a-daysy with customer focus and
heightened competition quality orgn is being
structured around cross functional teams
dedicated to customers for fast resolution

PEMP EMM502 234

 PEMP EMM502

St t i quality
Strategic lit mgtt

• This is a structured process for establishing long

range quality goals
goals,at
at the highest levels of the
orgn and defining the means to achieve these
goals
• It comprises of quality
planning control improvement all helping the
planning,control,improvement—all
orgn achieve its business goals of roi, profits,
growth
• SQM is a process of:
– Establishing quality council
– Quality policies
– Quality Goals 235
– Deployment of goals to all levels—Hoshin kanri
 PEMP EMM502

M
Measurement
t and
d Strategic
St t i Infom
I f mgtt for
f TQM

• Succesful companies recognise the need of reliable data and

information in achieving TQM.
• Info is the driving force to satisfy customers thru quality excellence
and improved operational competitive perf
• Cos have to
– Develop a set of perf indicators that reflect internal and external
customer reqmts and the key factors that drive business.Exs cd be
Customer satisfaction indices
indices,defect
defect rates
rates,profits
profits etc
– Continuously benchmark for improvement
– Involve all concerned in measurement,analysis and actions—Not only
quality inspectors
– Data shd be reliable,accessible and visible throughout
– Logical link between external indicators to internal ones.
– Improve data collection and analysis methods to shorten cycle

236
 PEMP EMM502

Typical business perf measures and indicators—

237
 PEMP EMM502

Organising
g g for TQM

238
PEMP EMM502

239
PEMP EMM502

240
 PEMP EMM502

Roles
• Top mgt---Establishing Quality councils ,Policies,
Goals Then to provide resources
Goals.Then resources, training
training,
stimulation to improve, rewards/recognitions
• Quality council—Group of top mgrs who develop
the q quality
y strategy,
gy, and then g
guide and support
pp
Estimate major dimension of quality issues,
roles and responsibilities,
responsibilities plan for trg
trg, establish
support for teams, new measures for progress
review,
i meritit rating,design
ti d i off plan l ffor reward d

241
 PEMP EMM502

Contd
• Middle mgt—specific quality problems, customer
supplier interaction
• Work force—self control, know customer needs
• Teams---quality circles, specific quality project
teams NCR resolution team
teams,

242
 PEMP EMM502

Total Employee
Emplo ee In
Involvement
ol ement
• In organising for total quality, the most imp factor
is employee involvement around which the mgt
sys of TQM should be based.
• 10 % is visible part of orgn---top mgt
• As in an iceberg 90% is hidden---front
hidden front line
supervisors, employees etc.To tap into their
creativity and problem solving abilities
abilities, Various
teams need to be built
• QUALITY CIRCLES
• SELF-MANAGED TEAMS
243
• CROSS-FUNCTIONAL TEAMS
 PEMP EMM502

Q alit Circles
Quality
• A Quality Circle is a group of employees that
voluntarily meets at scheduled intervals to
identify problems and formulate solutions to
present them to mgt with suggestions for
implementation.
• It is called a Small group activity
activity.Started
Started first in
Japan and these have now become a strategic
global phenomenon
• Generally the group members are from a
specific
ifi area off activity.They
ti it Th address
dd llocall
Quality and any other improvement issues in a
methodical
h di l manner. 244
• By doing this, they gain valuable experience in
 PEMP EMM502

Self managed teams

Self-managed
• Defined as a highly trained group of
employees ,from
from 6 to 18 on an
average,fully responsible for turning out a
well-designed
ll d i d segmentt off fifinished
i h d work.
k
– SMT’S are empowered to take corrective actions and
resolve day-to-day problems. They have access to
info that allows them to plan ,control and improve
their operations
operations. SMT’S offer a way to put the
concepts of job enrichment and job enlargement into
active operation

245
 PEMP EMM502

Contd E amples
Contd---Examples
• In an electronic plant, an assly team handles all aspects
of a customer order viz., receivingg order,making
g
components, assembling and soldering the circuit
boards, testing, packing and shipping, monitoring the inv
andd processing
i allll paper work.k
• At an ins co , work was organised into three areas—life,
health and support like billing
billing. Now 20 employees in
SMT perform all the 167 tasks .So the field agents have
to deal with one SMT and so processing time is reduced

246
PEMP EMM502

247
 PEMP EMM502

B ildi a Q
Building Quality
lit culture
lt

• ‘Technology touches the head, Culture

touches the heart
heart’
• Qualityy culture is defined as a p
pattern of
human habits, beliefs and behaviour
• So it provides a framework to explain “the
the
way things are done around here”
• So a change in culture is a very imp part of
improving Quality

248
 PEMP EMM502

R i t
Resistance tto Ch
Change

• Any change is resisted by people for a number of

reasons
– Will affect their usual way of working and also mean
more work
– May lose control over things
– Uncertain
U t i whether
h th ththey can come uptot other’s
th ’
expectation
– Past resentment towards mgt
– TQM will fade away if ignored
– Attitude of “First you change ,then I will”

249
 PEMP EMM502

Wh t exactly
What tl has
h tto change
h ?
• Many cos are not geared for TQM—both reg
technology and human skills
• Poor lay-out, Shabby work-place, Uncared
service facility,Poor lighting ,Poor product
quality,
q y, Mgt
g behaviour erratic and depends
p on
situation and is short-term based. Ends are
much more imp than meansmeans.
• HOW DO WE CHANGE THIS TO TQM
• This is known as change mgt

250
 PEMP EMM502

Contd
• Mgt must repeatedly stress customers delight as
the goal-----Each
goal Each issue should be seen as an
opportunity for improvement.
– Start with spreading info about present level of quality
quality. This info
has to be given in appropriate terms/combination of money
+products ,to the different levels
– Mgtmust
M t t live
li and
dbbreathe
th quality.
lit Th
They mustt ttotally
t ll participate
ti i t iin
Quality issues and help in Setting up quality councils, policies
,Goals, resources, Training,participate in teams,Encourage
improvement
– Most important is Internal customer ie Each person is a
supplier processor and customer
supplier,processor

251
 PEMP EMM502

Contd--
Contd
• Mgt must provide feedback reg perf and stds.
• Job design,must encourage that there is self-control
self control and
give more and more responsibility and authority to front
line employees .THIS IS CALLED OWNERSHIP
CONCEPT.
• Obviously reward and recognition must match above
desired behaviour.
• Remove orgn boundaries and reward TEAMS.
• Always insist on Fact-based decision making
• Customer contacts, visits.
• KAIZEN Concepts

252
 PEMP EMM502

D
Developing
l i aQ Quality
lit culture
lt
• Organisational culture is the pattern of shared beliefs
that provides the members of the orgn rules of behaviour
or accepted
t d norms for
f conducting
d ti operationsti
• In simple words , culture provides a framework to explain
the way things are done around here
• A Change in culture is VITAL for improving quality
• IBM says---respect
says respect for individual,
individual best customer service
service,
pursuit of exllence—These become core guidelines in
planning, decision making etc.
• Very vital reg issues relating to quality. Employees
generally think differently than mgrs.So to improve
quality core value like COMMITMENT TO QUALITY
quality,
has to be embedded in the orgn

253
 PEMP EMM502

Creating
g and maintaining
g awareness of
quality
• Create and spread info about quality
– Top
p mgt----money
g y
– Middle mgt—Money and product
– Front line-----Products/job security
Maintaining awareness
Sustain the msg of quality thru reinforcement which can be done
by measurement
Quality measurement must be done for all major functions—
Product dev, Purchase, Manu, Customer service etc
Quality news letter, Quality items first on all meeting agendas,
announcement reg quality by TOP mgt, company conferences
on quality etc

254
 PEMP EMM502

P idi evidence
Providing id off mgtt lleadership
d hi

• Top mgt must spend time on the activities

connected to quality
• Must not make decisions which vary from the
stated commitment to quality
• Must provide vision
vision, set clear stds and goals
goals,
enable and let employees do their job, give
feedback with rewards.
rewards
• Be persistent even when faced with failures

255
 PEMP EMM502

P ti i ti as an iinspiration
Participation i ti
• Personal participation in quality activities gives
more knowledge,
knowledge helps them to see benefits of
quality disciplines and a sense of
accomplishment
li h t by
b solving
l i problems
bl andd th
then a
change in attitude and behaviour
• Recognition and rewards are vital in people
getting positive feelings on quality—
quality
appreciation, modest token awards, deputation
to trg/seminars,
trg/seminars bonus
bonus, holidays etc

256
 PEMP EMM502

Change mgt
• For orgns committed to TQM, change is a
way off life.
lif

257
 PEMP EMM502

Strategic Quality Mgt

(f
(few more ideas)
id )

258
 PEMP EMM502

Definition
• Outline of a strategic planning process for TQM can
be expressed as:

259
 PEMP EMM502

Val es Vision Mission

Values,Vision,Mission
• Values
– Basic beliefs of Co—Excellence
Co Excellence,Integrity,Teamwork
Integrity Teamwork
etc
• Vision
– Dream of the future—ex: We want to offer world class
goods by anticipating and exceeding expectations
• Mission
– Purpose of business—To participate in economic
development of country by contributing to making
competitive Auto components in line with global stds
of performance and environment impact

260
 PEMP EMM502

More details
• Strategic Goals
– Targets to be achieved to fulfill
f f vision—ex-Total
customer satisfaction,Industry leadership,cost
competitiveness
titi etc—qty+time
t t ti frame
f imp
i
• Leadership
– This is the driver of the strategic plan.It brings togeher
People,Processes
p , and Resources in a co.Must be in
constant touch with ALL stakeholders.Must be deeply
involved in development
p of workforce,setting g and
monitoring targets,recognising,rewarding and building
a new Quality culture
261
 PEMP EMM502

Contd
• Critical success factors +Key business
processes Levers
processes—Levers

• Four Principles Recap

– Customer focus
– Strategic planning and leadership
– CI &Learning
&L i
– Empowerment and Teamwork

262
 PEMP EMM502

Cultural changes
g needed to
achieve success of four principles
• Culture of communication within the organisation
– Clear view of NEED and ROLES.Very important.Should not
gloss
l over uncomfortable/troublesome
f t bl /t bl iissues.
• ‘Customer first’ attitude
– Each person shd know and commit to fulfill what the next-in-
next in
process-customer wants---- is a big attitudinal change
• Transparency
– Decisions must be based on Values,vision and customer
expectations.Mgts motives,ethics or practices should not be
against spoken norms.This will ensure credibility and thus
motivation
ti ti
• Empowerment of people [Trg+encouragemen+trust]
• Continuous improvement +learning [Routine+improve]
• Customer focussed horizontal process

263
 PEMP EMM502

Strateg for gro

Strategy growth
th
• Strategy can be defined as
– ‘a set of major policies (plans of action) to
p with market and competition
cope p to ensure
the organisation’s future success.Made up of:
– GOALS
– POLICIES
– ACTIONS

264
 PEMP EMM502

Contd
• Earlier Cost and Product differentiation were
major strategies.
strategies With TOTAL QUALITY which
has delivered lower cost,value addition,product
quality ,superiority,
superiority Quality of people,customer
people customer
retention,employee satisfaction and corporate
image issue,TQ
issue TQ deserves to be a very important
STRATEGY for growth.
• Also TQM has the three elements of
STRATEGY and when pursued not only
addresses Q Q,C,D
C D but also strengthens
organisation culture,attitude,and
orientation These traits are important to build
orientation.These
265
internal capability to meet adverse
 PEMP EMM502

Contd
• There are many examples of cos like TISCO, TVS,
MOTOROLA, XEROX,TOYOTA which use TQ as a
‘conditioning’ strategy for the internal health of the
organisation
g to ATEMPT BIGGER CHANGES.
• TQM is about managing in a changed context----To
become responsive,flexible,nimble.
responsive flexible nimble
• Merely managing well is not TQM.So issues of transformation that
need to be addressed are:
– Pro-active and outstanding leadership---Inspirational
– Strongg customer orientation and market focus—Internal and
external customer concept
– Thrust and Trust in people---Involvement and people
development
266
 PEMP EMM502

Contd
– Continuous learning and improvement as a new way
y a better wayy is there.
of life---Belief of Always
– Mgt by facts and data---Information and analysis is a
key issue for setting and measuring goals
– Process of strategic planning---Key customer and
business issues improvement
– Customer-supplier relationship---Win-Win relation
• ALL SHOULD BE INTEGRATED COLLECTIVELY
• REFER MALCOLM BALDRIDGE SLIDE

267
 PEMP EMM502
Baldrige
g criteria ((system
y
perspective)
Customer and market focussed
Strategy and action plans

2 5
Strategic planning HR Focus

7
1 Business
leadership results

3 6
Customer
focus g
Process mgt

4
Information and analysis 268
 PEMP EMM502

St t
Structure and
d organisation
i ti forf TQM
• Functional structure is the traditional structure. This is
bureaucratic and slows down actions at interface.No one
single function has control over the whole process of
design
g to deliveryy
• With emergence of customer power,alternate structures
were looked at that would allow smooth flow of activities
relating to delivery and service.
• Customer call centres,cost
centres cost reduction teams etc were the
beginning and so regular activities +special activities
spread throughout the orgn.These
orgn These had to be aligned for
ONE result and should not cancel each other.

269
 PEMP EMM502

Contd
• So Process approach (cft);Internal customer
concept Flatter organisaions were the result
concept,Flatter
• However companies prefer to maintain the
functional structure and superimpose a cross-
functional p
process focusssed structure(matrix)
( )

270
 PEMP EMM502

Horizontal customer-focussed
customer focussed process

271
 PEMP EMM502

Contd
• To make this work TQM needs a organisational structure
within the company.this is now standard an is made up
of
– Apex quality council
– Quality council
– Quality
Q lit sub-council
b il
– Quality co-ordinator

272
 PEMP EMM502

S mmar and Concl

Summary Conclusions
sions
• The following concepts have been
introduced
– The need for building an ownership culture
among employees
l to achieve
hi TQM
– Need for a Supportive
pp and mentoring g style
y of
leadership to enable participation and
p
empowerment

273
 PEMP EMM502

Session 5

Quality Gurus -- their Influence and

Contribution
Excellence Awards
Models for TQM

274
 PEMP EMM502

4 1 Session
4.1 S i Objectives
Obj ti
4.1 Session Objectives
– At the end of this session the student would have
understood
• The quality movement over a period of time
• The various persons and institutions who/which
made
d lland
d mark k iin th
the JJourney tto E
Excellence
ll iin
Quality.
• Their
Th i contributions
t ib ti tto Q
Quality
lit
• Awards of Excellence in Quality

275
 PEMP EMM502

Session Topics
• Quality Gurus and their teachings
• Excellence awards and their details
• Generic TQM Model

276
 PEMP EMM502

Q lit managementt philosophies

Quality hil hi

*Q
Qualityy philosophies,----Gurus
p p ,
*Deming philosophies, Deming cycle, Deming’s
14 points,
*Juran philosophy, quality trilogy & universal
break through sequence,
*Steps for quality improvement,
Philips Crosby’s
*Philips Crosby s tenets, quality is free,
absolutes of quality, 14 steps for quality
improvement,
*Taguchi’s quality loss functions,
Feigenbaum s philosophy
*Feigenbaum’s
277
 PEMP EMM502

Who is a quality
q alit GGuru?
r ?
• If Quality is important ,so are the people who propound it
• Quality is motivational; and concerns all of us
• A guru is a path-breaker---a good, wise ,teacher who
should be charismatic,, and whose approach
pp to q
quality
y in
business and life ,has made a lasting impact
• Gurus have g given us Philosophies
p and Tools
• Early Americans
– W.Edwards Deming
– Joseph.M.Juran
– Armand V Fiegenbaum
– Walter Shewart

278
 PEMP EMM502

Con td
• The Japanese
– Dr Kaoru Ishikawa
– Dr Genichi Taguchi
– Shigeo Shingo
– Taichi Ohno
– Masaki-Imai
• The New Western Wave
– Philip Crosby
– Tom Peters
– Claus Moller
– Goldrat.E
G ld t E

279
 PEMP EMM502

G r s and TQM
Gurus
• When considering introduction of TQM into an
organisation it is advisable to take note of the
unique messages of all Quality Gurus.
• Between them they have influenced most areas
of TQM
• A Seven point summary is given in next slide

280
 PEMP EMM502

Se en point ssummary
Seven mmar
• Management commitment and employee awareness are essential
from the early stages for implementing TQM.Deming’s philosophy,
Peters Top twelve traits,
traits Crosby’s zero defects are possibly the most
useful for encouraging such attitudes
• Awareness must be backed byy figures.Cost
g of q
quality
y measurement
by Juran and crosby are relevant here
• TQM programs employ team work to facilitate improved
communication and problem solving
solving.CFT
CFT’S
S,Quality
Quality circles
advocated by Ishikawa, Peters etc are useful
• Simple tools for problem solving are to be used by all employees—
Ishikawa advocated this
• Culture of Continuous Improvement must be fostered in all areas as
taught by Imai

281
 PEMP EMM502

Contd
• Tools also include methods to reduce prototyping and
introduction of JIT as advocated by Taguchi and Shingo
• Management tools should be studied to achieve
quality Crosby’s
quality.Crosby s zero defect program
program, CWQC and TQC
by ishikawa and Feigenbaum are needed
• We need to move from inspection culture to
prevention.This will need to understand internal and
external customers
customers.This
This customer focus is strongly
emphasized by Juran, Crosby and Peters,Deming

282
 PEMP EMM502

Q lit Phil
Quality Philosophies
hi

• We will read about Quality Gurus who led the QM

revolution
• We refer to:
– Dr W.
W Edward Deming
– Dr Joseph Juran
– Philip B.Crosby
– Ishikawa
– Taguchi
– Feigenbaum

283
 PEMP EMM502

Dr Ed
Edward
ard Deming
• Has had maximum influence on QM. Was awarded by
p
the emperor of jjapan
p for the dev of qquality
y in jjapan
p
• Thousands of Japanese mgrs attended Deming’s
courses in SPC .
• He made the initial insight that a firm could never inspect
quality into a product. A good quality is due to good
design and effective
ff prodn methods.
• Five major contributions are:
– Fourteen
F t points
i t for
f mgtt
– Seven deadly diseases and sins
– PDCA
– Triangle
– Chain reaction
284
 PEMP EMM502

Ch i Reaction
Chain R ti
• Deming chain reaction is given below:
Improve quality

Costs decrease due to less rework

Fewer mistakes,delays,snags
Resulting in better utilisation
Of time and materials

Productivity UP

Capture more market with

Better q
quality
y and p
price

Stay in business

285
Stay in business,more profits,more jobs
 PEMP EMM502

D i ’ 14 points
Deming’s i t ffor mgtt
• Deming summarised his views on mgt and its relationship with
quality in his 14 points for mgt:
– 1)Create constancy of purpose for CI of product and service
– 2)Adopt the new philosophy for economic stability
– 3)Cease dependency on inspn to achieve quality
– 4)End the practice of awarding business on price tag alone.
Reduce no of vendors for better control and consistency
– 5)Improve constantly the system of prodn and
service(Differentiate between faults due to mgt and systems and
Workers )
– 6)Institute training on the job
– 7)Adopt
) p modern methods of supervision
p and leadership
p

286
 PEMP EMM502

Contd-----
Contd
– 8)Drive out fear
– 9)Breakdown barriers between departments
– 10)Eliminate use of slogans, posters
– 11)Eliminate work stds and numerical quotas See
– 12)Remove barriers that rob hrly workers of the right
handout
to pride in workmanship
workmanship.
• !3) Institute a vigorous program of education and
retraining (Statistical methods,new skills)
• 14)Define top mgts permanent commitment to ever-
p
improving gqquality
y and pproductivity.
y

287
 PEMP EMM502

Deming’s
g Triangle g
Represents the AXIOMS OF TQM CULTURE
• Axiom=Principle
Mgt
g commitment
To improvement
Points 1,2,14
commitment

Scientific
involvement knowledge
Improve Apply
Interrelationships Statistical
Points 4,7,8,9,10,11,12 Methodology
Points 3,5,6,13
, , ,

288
 PEMP EMM502

S
Seven d
deadly
dl sins
i

• Deming listed ‘Seven deadly’ sins that obstruct

the quest for quality
– Lack of constancy of purpose
– Emphasis on short-term profits
– Over reliance on perf appraisals
– Mobility of mgt
– Overemphasis on visible figures
– Excessive costs of warranty
– E
Excessive
i medical
di l costs
t

289
 PEMP EMM502

S mmar of Deming
Summary
• Main strengths are
– Mgt comes before technology
– Leadership and motivation are very important
– Strong on statistical and quantitative methods

290
 PEMP EMM502

D i P
Deming Prize
i
• Recognising Deming’s imp effect on perf of japanese
firms,the jjapanese
p g
govt instituted the Deming gp
prize in
1951.This annual award recognises a co or individual for
active contributions to the dev of QM tools or to the
spreadd and d iimplementation
l t ti off quality
lit iimprovementt
prpgrams.JUSE awards this prize based on perf
improvements achieved by a co thru route of TQC
• The checklist addresses issues like:
– Policies
– The orgn and its operations
– Education and dissemination
– Information g
gathering,
g, communication and it utilisation

291
 PEMP EMM502

Contd---
Contd
• Analysis
• Standardisation
• Control systems
• Q lit Assurance
Quality A
• Effects
• Future plans

292
 PEMP EMM502

J
Juran Philosophy
Phil h

• After Deming,Dr Joseph Juran has had the greatest

impact on the theory and practice of QM.Juran also
taught quality principles to japanese in 1950 and was a
principal
p p force in their qquality
y reorgn.
g
• Juran’s contribution was on four themes:
– Compelling definition of quality and the cost of quality
– Quality habit
– Quality trilogy
– Universal breakthrough sequence

293
 PEMP EMM502

Contd----
Contd
• Quality defined --as fitness for use made up of five product traits—
quality of design, quality of conformance, availability, safety, field
use
• Concept of cost of quality---Prevention costs, Appraisal costs,
Failure costs
• Quality habit---Establish goals, plans, assign clear responsibility, link
rewards to results. So that focus on quality should become second
nature or HABIT
• Quality trilogy----Quality planning, control, improvement are the
three requirements for successful TQM
• Universal breakthrough seq---identifies a set of actions directed
towards achieving major leaps in quality

294
 4.2.3 Joseph M.
Juran
Juran’s Triology of Quality Management
Q lit Planning
Quality Pl i Q lit Control
Quality C t l Quality
Q lit
Improvement
Determine who the Evaluate actual product Establish the
customers are performance infrastructure
Determine the needs of Compare actual Identify the improvement
the customer performance to Product projects
Goals
Develop product Act on the difference Establish project teams
features that respond to
customer’s needs
Develop processes able Provide the teams with
to produce the product resources: training and
f t
features motivation
ti ti tto:
Transfer the plans to Diagnose the causes,
the operating forces Stimulate remedies
remedies.
Establish controls to 295
hold
the gains
 PEMP EMM502

J ran’s Breakthro
Juran’s Breakthrough
gh seq
sequence
ence
• To reach and maintain minimum cost of
quality,juran
lit j proposed
d a th
three pronged
d
pp
approach
– Breakthrough projects
– Control
C t l sequence
– Annual qquality
ypprogrammes
g

296
 PEMP EMM502

C b Phil
Crosby Philosophy
h
• Philip Crosby contribute three ideas to TQM:
– Absolutes of q
quality
y mgt
g
– 14 Steps for quality improvement
– Quality vaccine
– His 6C’s
Absolutes of Quality Mgt:
Quality is defined as conformance to reqmts
The system for achieving quality is prevention
,not appraisal.
The p
perf std is Zero defect,, not “that is” close
enough
The measurement of q qualityy is the p
price of non-
conformances and not some indexes 297
 PEMP EMM502

Contd--
Contd
• The Absolutes include the foll points:
– Crosby recognizes only one sensible definition of
quality based on exactly what the customer wants. So
it is a very vital starting point for everybody in the
company understands these reqmts and that they are
provided with tools o achieve these reqmts.
– Quality problems originate in the functional dept ,not
in the quality dept.
– Crosby says quality is free. what really costs money
are all actions that involve not doing the job right the
fi t time.
first ti

298
 PEMP EMM502

Contd---
Contd
– Most cos spend 15% of their sales on quality
costs.This must be reduced
– Quality systems encourage prevention,as the
beginning is an evaluation of current processes
– Crosby says that zero defect is not a slogan.There
must be a continuous effort to define
define,produce
produce and
deliver products that eliminates any possible defects.

299
 PEMP EMM502

14 St
Steps off Crosby---Quality
C b Q lit Mgt
M t
• Management commitment
• Quality mgt team
• Cost of quality
• Quality awareness
• C
Corrective
ti action
ti
• Zero defect planning See handout
• Supervisor planning
• Zero defects day
• Goal settingg
• Error cause removal
• Recognition
• Quality councils
• Do it all over again

300
 PEMP EMM502

Mgt Maturity
Mat rit grid on q
quality
alit
• This is very useful in understanding the
C position
Cos iti reg quality
lit attitude
ttit d OR
FIRM’S CURRENT QUALITY CULTURE
• The five states of quality awareness and quality culture
are:
– UNCERTAINITY
– AWAKENING
– ENLIGHTENMENT
– WISDOM
– CERTAINITY

301
302
 PEMP EMM502

Q alit Vaccine
Quality
• Quality vaccine describes a corporate QM regimen that improves
the overall health of the firm and corrects many of its pressing
problems.
problems
• Three major components of the quality vaccine are:
– Integrity
Integrity----honest
honest attempt to eliminate bureaucracy
bureaucracy,improve
improve perf
and satisfy customers
– Communications—internal and external.regular exchange of info
about
b t qualitylit problems
bl ,performances
f on quality
lit ch’s,progress
h’
towards quality goals and opportunities for quality improvement
– Systems and operations---designed
operations designed to maintain the firm’s
firm s new
quality env are vital

DETERMINATION,EDUCATION,IMPLEMENTATION---BASIS
DETERMINATION EDUCATION IMPLEMENTATION BASIS OF
CROSBY PHILOSOPHY.

303
 PEMP EMM502

Crosb ’s 6 C’s
Crosby’s
• Comprehension
• Commitment
• Competence
• Correction
• Communication
• Continuance

304
 PEMP EMM502

Masaaki Imai and TQM

• Brought together various philosophies,tools etc into a
g concept
single p called KAIZEN
• Kaizen is a japanese name of a formal sys to promote
CI

• CI begins
g with the notion that an orgn
g can assure it’s
long term survival and success only when every member
actively pursues opportunities to identify and implement
i
improvements,t everyday.
d
• Improvements wd be,by and large incremental and so
wdd not require
req ire great investments.
in estments
• Every day in every way, we are getting better
305
 PEMP EMM502

Kai en Contd
Kaizen Contd-----
• Kaizen recommends for it’s success
– A process view of the system
– Based on people
people’ss knowledge
– Constant sense of urgency and feel a need to
i
improve iincessantly.
tl

306
 PEMP EMM502

A V Fiegenba m and TQM

A.V.Fiegenbaum
• Originated concept of TQC 9 M’S ?
• He
H viewed
i dQQuality
lit as a ttooll tto b
be used
d as a llong
term strategic weapon for competing in business
• His three steps to quality are
– Quality leadership
– Modern quality technology
– Organisational
O i ti l commitment
it t
Above formed basis for CWQC movement in japan
which was the forerunner of TQM and many Awards

307
 PEMP EMM502

Contd
• Key elements---
– TQC is a sys to integrate quality devdev,maintenance
maintenance
and improvement efforts in an orgn which will enable
Engg,marketing,prodn,and service to function at
optimum economic levels while achieving customer
satisfaction
– Control aspect should involve setting quality stds,
appraising perf relative to above, taking corrective
action,and planning for improvement of stds
– Quality is affected by both technological and human
f t
factors
– It is very imp to control quality at source
308
 PEMP EMM502

Kaor Ishika
Kaoru Ishikawa
a and TQM
• He was the person who developed the cause
and effect charts or fish-bone
fish bone diagrams
diagrams.
• He was also in the forefront of japanese quality
strategy in later years
• He emphasised quality as a way of mgt and
i fl
influencedd th
the d
dev off participative,botom-up
ti i ti b t
view of quality,which became the trade mark of
th jjapanese approach
the h tto quality
lit mgt.He
t H was
responsible for initial deploymentof quality
circles.
i l

309
 PEMP EMM502

Contd----
Contd
• Some key elements----
– Quality begins with education
– First step is to know your customers requirements
– Ideal
Id l state
t t off quality
lit control
t l occurs when
h inspection
i ti is
i
no longer necessary
– Remove the root cause ,not not the symptoms
– Put quality first and set ur sights on long term profit
– Top
T mgtt mustt nott show h anger when
h facts/problems
f t / bl
are presented
– 95% of problems in a compan
company can be sol
solved
ed b
by
simple tools

310
 PEMP EMM502

Shigeo Shingo and TQM

• He realised that statistical methods detect errors
too late in the manu process
process.WhatWhat is needed is
to identify errors as they happen and to deal with
them right away
• This is termed as poka-yoke or fool
proofing (error proofing)
proofing.(error
• The processes must be so designed that they
makek the
th desired
d i d result lt iinevitable
it bl
• Round manhole covers, bevelled diskettes, car
wont start till seat belt is tightened, pen drive
cannot be inserted reverse etc
311
 PEMP EMM502

Dr She
Shewart
art and TQM
• He was a mathematician at bell laboratories, specialising
in statistics.
• He found that variability associated with manufactured
component dimensions followed a ‘normal distbn’
• He discovered that ‘chance’ and ‘assignable’ causes
determined the shape of this curve.
• He developed a simple tool called control chart to
understand these variations and control the process
• Thinking statistically is a basic part of the TQM
philosophy.Much of the challenge in CI is to control
the process b by statistical methods bby detecting the
assignable cause of variation and eliminating these

312
 PEMP EMM502

Contd----
Contd
• Advantages of SPC are---
– It places responsibilty and gives gives help for
quality
q y improvement
p in the hands of the
worker
– It is therefore a great prevention tool

313
 PEMP EMM502

Tag chi and TQM

Taguchi
• He said that it is very imp to look at design stage and
design quality into the product/process
• One method of doing this is to experiment on variables
that contribute to a product’s
product s perf.
perf This is called
DOE.This is based on statistics to minimise the number
of experiments
• He also believed that design should be ROBUST –ie
withstand the hard-to-eliminate variabilities that occur in
the conversion process or in customer use
• He called this approach as ’Quality
Quality engineering as it
helps to design quality into product and process.

314
 PEMP EMM502

Q alit Loss ffunction

Quality nction
• Taguchi’s loss function estimates loss to societynfrom
the failure of a p
product to meet it’s target
g value for a
particular perf ch .
• This is shared both by consumers ,producers an society
at large.
• Consumers incur loss due to shorter product life,
increased maint etc, producers incur loss due to scrap,
warranty,damage to reputation,loss in mkt share etc,
society due to safety and pollution issues
• Mathematically---L=(X-T)2
• L=Total
L Total loss
loss,C=constant,
C constant X X=av
a value,
al e T T=target
target value
al e

315
316
 PEMP EMM502

Tag chi’s se
Taguchi’s seven
en points
• Product quality is measured by total loss to society
• Continuous q quality
y improvement
p and cost redn are necessary y to
survive in world competition
• Quality improvement means continuous redn of variation in product
perf around the nominal value
• Quality loss is proportional to square of deviation of perf from
nominal value
• Product and process design are vital for product design an cost
• Perf variation can be reduced by suitable adjustment to product
and process` parameters
• The above setting g of parameters
p can be identified by y
statistically designed experiments

317
 PEMP EMM502

O er ie of q
Overview quality
alit philosophies
o There are two main factors of all quality
philosophies
hil hi
o Technical Needs
o Human dimension of quality mgt
• Technical needs are met by statistical and quantitative
methods. They cover technical needs right from design to
inspn of final product
• Human needs are not so widely addressed except
Quality circles.
• We now use job enrichment and suggestion schemes
also

318
 PEMP EMM502

List of A
Awards
ards
• Malcolm Baldridge award
• Deming award
• RGNQA
• CII-NQA
Q
• EFQM

319
 PEMP EMM502

Malcolm Balridge a
award
ard
• Established by US congress in 1987
• Purpose
P off the
th award
d are:
– Help stimulate American cos to attain excellence in
quality and productivity for the pride and to obtain a
competitive edge
– Recognise the achievements of outstanding cos that
improve the quality of their goods and services and
disseminate the experience of these firms to teach
others about quality and its impact on perf.

320
 PEMP EMM502

Contd
• Establish guidelines that can be used to evaluate
quality
q y improvement
p efforts
Gather info from award winners about how to manage
for superior quality by changing corporate cultures
andd provide
id specific
ifi guidelines
id li ffor others
th
• Above objectives are to support two result-
oriented goals: Delivery off ever improving value
to customers and improvement of overall
corporate perf
• Details of criteria for the award are shown
in next slide

321
 PEMP EMM502

Criteria for malcolm baldrige award

• Leadership 110
– Leadership system 80
– Co responsibility and citizenship 30
• Strategic planning 80
– Strategy
gy dev p
process 40
– Co strategy 40
• Customer and market focus 80
– Customer and mkt knowledge 40
– Cust sat and relationship enhancement 40
• Information and analysis 80
– Selection of info and data 25
– Selection and use of comparative info 15
– Analysis and review of co perf 40 322
 PEMP EMM502

contd
• Human resource focus 100
– Work systems 40
– Employee education,trg 30
– Employee well being and sat 30
• Process mgt 100
– Mgt of product and service processes 60
– Mgt of support processes 20
– Mgt and support of supplier process 20
• Business results 450
– Customer sat results 125
– Financial and mkt results 125
– Human resource results 50
– supplier and partner results 25
– Co—specific
Co specific results 125
• TOTAL 1000
323
 PEMP EMM502

Se en categories form a ssystem

Seven stem
• Leadership, strategic planning, and customer
and market focus represent the“leadership
the leadership triad”
triad
and suggest the importance of integrating these
three functions
functions.
• Human resource focus and process mgt
representt h
how th
the workk in
i an orgn iis d
done and d
leads to business results. These fns are linked to
th leadership
the l d hi ttriad i d
• Information and analysis
y supports
pp the entire
framework by providing the foundation for perf
assessment and mgt g by
y facts
324
 PEMP EMM502
Baldrige
g criteria ((system
y
perspective)
Customer and market focussed
Strategy and action plans

2 5
Strategic planning HR Focus

7
1 Business
leadership results

3 6
Customer
focus g
Process mgt

4
Information and analysis 325
 PEMP EMM502

E al ation process
Evaluation
• It is very rigorous
• Each application is reviewed by 15 examiners chosen from among
leading quality professionals. Each item is evaluated on approach,
deployment, results
• The entire review and evaluation process is driven by the foll
fundamental beliefs about TQM
• Customers define quality
• Senior corporate leaders must create clear quality values and
build them into company operations
• Excellent quality evolves from well-designed and well
executed systems and processes
• Firms must integrate CI into daily mgt of all systems and
processes

326
 PEMP EMM502

Contd
• Cos must develop detailed goals and strategic and
p
operational p
plans to achieve q
quality
y leadership p
• Time based competition is vital
• Operation
p and decisions of co must be based on
facts
• All employees
p y must be appropriately
pp p y trained,,
developed and involved in quality improvement
activities
• Quality systems must emphasise design quality
and error prevention as key elements
• Cos must develop their suppliers on similar lines

327
 PEMP EMM502

List of companies
p who have won
the award
• TVS
• LUCAS TVS
• M&M
• BRAKES INDIA
• SUNDARAM CLAYTON
• SONA-KOYO
• RANE GROUP

328
 PEMP EMM502

European quality award

Instituted by European foundation for quality mgt(EFQM )
• This was designed to increase awareness
throughout Europe ,ofof the growing importance of
quality to their competitiveness in the global mkt.
• The enablers and results are shown in the next
slide
• Similar
Si il awards d are
– Canadian award for business excellence
– Australian quality award
Everywhere the holistic and interconnected nature
of the mgt process is highlighted

329
 PEMP EMM502

E ropean quality
European q alit aaward
ard

P People
L People Satisfaction
R B
E Mgt 9%
O U
A 9%
C S
D I
Policy and E Customer
E N
Strategy S Sat
R E
8% S 20%
S S
E
H S
S
I Resources Results
Impact
P 9% On 15%
14%
10% Society
6%

330
Enablers 50% Results—50%
 PEMP EMM502

CII-EXIM Award for business

excellence
• The nine categories are sequenced to show that
all actions of an orgn must lead to exllence in
orgn results:
– Leadership
– Policy and strategy
– People mgt
– Resources
– P
Processes
– Customer results
– P
People
l results
l
– Society results
– Key perf results 331
 PEMP EMM502

Criticism
• Companies need at least four years to persuade
employees to buy into the quality philosophy and
eight years to fully establish a quality culture.
• SO IF ANY TQM EFFORT FAILS IT IS
LARGELY DUE TO ORGANISATIONAL
APPROACHES AND MGT SYSTEMS ISSUES
AND NOT THE RELEVANCE OF THE
CONCEPT

332
 PEMP EMM502

A Generic TQM model for

Excellence
• To achieve excellence, companies must develop a
p
corporate culture of treating
gp people
p as their most impp
asset and provide a consistent level of high quality
products .relation with customers and role of quality is
very imp
i iin search
h ffor excellence
ll
• TQM needs changes in people, technology and structure
• In order to have a systematic approach to TQM Q ,it is
necessary to develop a conceptual model.A model is a
sequence of steps arranged logically to serve as a
guideline for implementation of a process in order to
achieve the ultimate goal
• TQMEX IS A TQM PLUS` EXCELLENCE MODEL

333
 PEMP EMM502

Objecti es of excellence
Objectives e cellence
• Profits
• Recession proof
• M i t i customer
Maintain t confidence
fid
• Maintain corporate vitality
• To develop a good reputation
• To use employees creative energies
• To lower costs
• T retain
To t i employees,
l to
t have
h goodd tteam workk
• To increase productivity
• To contribute to society
• To have a clear vision of the orgn
• To improve technology
• T solve
To l problems
bl effectively
ff ti l
• To increase competitiveness

334
 PEMP EMM502

Contd
• The three requisites of TQMEX are:
• The ten commandments –
• Four pillars
• Four “C”s

335
 Ten commandments and 4
pillars
• Approach—mgt lead • Satisfying customers
• Method—prevention
Method prevention reqmts+implied needs
• Objective—total cust sat • Systems/processes
• Measure---COQ lik tts 16949
like
• Standard—right first time
• People
• Scope ownership commit
Scope-ownership,commit mgt commitment, trg,
• Theme----CI teamwork,leadership,moti
• Ability trg education
Ability---trg,education vatin,empowerment
• Communication—co- • Improvement tools
op team work
op,team
• Reward—
recognition pride
recognition,pride
336
 PEMP EMM502

Fo r Cs
Four
• Commitment---decisive personal and
organisational choice to follow on an
agreed-upon plan of action
• Competence—skills, education,
judgement, problem solving ability,
responsible attitude
• Communication—mutual
C i ti t l
understanding.clear
g g
goal conveying
y g
• Continuous improvement
337
 PEMP EMM502

HRD and Mgt for TQM

• HRM seeks to build and maintain an environment for
quality excellence to better enable the workforce to
achieve the cos quality and operational perf objectives
• All mgrs (being responsible for quality) need to coach
coach,
mentor, train,motivate,recognise their employees if
quality culture has to be built
built. Even if a HR dep is there
all managers must embrace the new HRM practices
• Excellent cos have revolutionized all their HR policies
and procedures
• New paradigm of HR HR----SEE
SEE THE NEXT SLIDE

338
 PEMP EMM502

--204
204

339
 PEMP EMM502

Designing high perf work

ork teams
• Work design
• Employee involvement
• Suggestion systems
• Empowerment
• Training and Education
• Team work and co-operation
• D
Developing
l i successfulf l tteams
– Overcoming resistance to change
– Compensation and recognition

PEMP EMM502 340

 PEMP EMM502

Contd
• Health, safety and employee support
services
• Recruitment and career development
p
• Labour relation issues
• Motivation
M ti ti
• Performance appraisal
• Measuring employee satisfaction and
HRM effectiveness
ff ti

341
 PEMP EMM502
Kaizen—Continuous Improvement

342
343
344
345
346
347
 PEMP EMM502

What to improve
impro e
• We have to reduce waste .
• 7 types of waste in industry

348
 PEMP EMM502

W t
Waste---MUDA
MUDA

• Definition.
Any activity that consumes resources yet adds
no value.
S
Seven categories
t i off waste:
t
Over production,waiting,transportation.
p g p
Over processing,inventories,movement,making
defective products.
products
(Idle time, idle cash, too much paper work,
b kd
breakdown) )

349
350
 PEMP EMM502

Simple
p General TQM
Q Model

• See hand out material

351
 PEMP EMM502

XEROX CASE STUDY

• See Hand out—Ron basu book

352
 PEMP EMM502

S mmar and Concl

Summary Conclusion
sion
• The following concepts have been
i t d
introduced
d
– The thinking of the various Gurus and the
impact on the Quality movement
– Awards of excellence in quality and the
criteria for awarding have been understood
– Basic concepts in creation of a generic TQM
Model

353
 Basic Statistics

Session Speaker
Sandeep N

© M.S Ramaiah School of Advanced Studies - Bangalore 354

 Learning Objecti
Objectives
es
• Describe the range of applications of
statistics
t ti ti
• Identify situations in which statistics can
be misleading
• Define "Statistics"

355
 Statistics defined
• Include numerical facts and figures

Earth quake

Male Prisoners 356

Elderly Population
 Statistics
• Relay upon data
• Relay upon how data are selected/chosen
and statistics are interpreted
• Sometime have problematic
interpretations
• Consider some examples
examples…

357
Ice cream Sales
Ice-cream

358
Temples and crime

359
 Statistics defined
• In total , statistics are not just facts and
fifigures .

They are techniques and procedures for

analyzing , interpreting , displaying , and
making decisions based on datadata.

360
 Q estion
Question
You hear a commercial that 80% of children
prefer
f tot eatt a certain
t i kind
ki d off noodles
dl for
f
breakfast . What do yyou conclude ?
1. This noodles is superior to all others. at
l
least
t according
di tto kid
kids .
2 You need to know about where these
2.
data come from before making any
conclusion
3 20% of children prefer other brand
3.
361
 Piece of ca
caution
tion abo
aboutt stats
What should one take into consideration
when
h evaluating
l ti statistical
t ti ti l claims
l i .

1. The source of the data

2. How the data is presented
3. The procedure used to generate the
claims

362
 Importance of Statistics

• C
Complete
l t iinformation
f ti about
b t any subject
bj t
matter mayy not be always
y available

• It may be
b the
th single
i l mostt important
i t t
subject matter one can study.

• H
Helps
l tto ttake
k ddecision
i i b based
d on ffacts
t nott
on opinions
363
 E amples
Examples
• A surprising study shows that eating egg
whites can increase one’sone s lifespan
• There is a 80% chance that in a room full
of 30 people that at least two people will
share the same birthday
• Increase in Harder percentage above 50
% will
ill nott any effect
ff t on resini pott life
lif .
• There is less than 10% every tiger in the
wild will live for more than 10 years
364
 Some statistics are not tr
true
e

• But they are universal

• Theyy seem to add credibilityy

• Helps to justify a opinion or finding with

facts and figures

365
First step : Q
Question
estion statistics

Benjamin Disraeli
Former British Prime Minister

“There are th
“Th three kinds
ki d off lilies–
lies , Damned lies and Statistics ”
366
 Descripti e Statistics
Descriptive

• Uses for organizing , summarizing , and

describing data
data.
• Examples: Percentage, graph , tables
frequencies.
• Mostly concerned with the population or
p
complete data set.

PEMP EMM502 367

E amples
Examples

368
 Inferential Statistics

• More concerned with the sample data

rather population

• Used to draw inferences about the

population as a whole based on sample
statistics

369
E ample 1
Example

Pre poll opinion

370
E ample 2 :
Example
Cooking Rice

371
 Simple Random Sampling
• This occurs when every member of the
population
l ti h has an equall chance
h off b
being
i
selected into the samplep
• And this occurs when the selection of one
member
b iis iindependent
d d t fform th
the selection
l ti
of another member
• Thus , it is selection by pure chance

372
 Simple Random Sampling
• If we do not sample by pure chance ,
problems
bl can resultlt

• Consider the following can result

373
Sampling Problem : E
Example
ample

Sample
Sa p e ? Population
opu a o ? Problem
ob e ?
374
 Simple Random sampling
• Sometimes difficult to obtain
• Random samples are not necessarily
representative of the entire population
• But a large sample size with a random
sample will ensure a representative
sample .
• And inferential statistics uses
mathematical models to take sample size
into account when generalizing from a
375
sample to a population
 Q estion
Question
Random sampling ensures that the
composition
iti off the
th samplel matches
t h th
the
p
composition of the p
population.
p

1. True
2 False
2.

376
 Variables
• Variables are properties or characteristic
off some eventt , object
bj t , or person that
th t can
take on different values or amounts
• Constants do not vary

377
Identif Variables
Identify

378
 E amples of Variables
Examples
• Dogs of different breeds vary in

– Height
– Weight
– Color
– Length
– Body shape
– Purpose

379
Ho do these fish vary
How ar

380
 Independent Variables

A variable the experimenter manipulates

Example
p : type
yp of tablet , type
yp of fuel,, type
yp of
road condition .,etc

381
 Dependent Variables

The variable the experimenter measures

Example
p : Temperature
p after medication
Change in mileage after fuel change

382
 Independent
p and Dependent
p
variables
• Identify Independent variable (IV) and
D
Dependent
d t (DV) iis iimportant
t t and
d requires
i
p
practice.
• Comfort level expressed after a travel in
th following
the f ll i ttype off buses
b

383
 Q alitati e Variables
Qualitative
• Qualitative variable express a quality

– Good
– Not so good
– Satisfactory
– Needs improvement

384
 Q antitati e
Quantitative
Quantitative variables are measured
numerically
i ll

• Length or diameter of a shaft

• All measured data can be termed as
quantitative data

385
 Basics of data collection

• Data must be in numerical form

• Verbal
V b ld data
t mustt b
be coded
d d iinto
t numbers
b

386
E ample
Example

387
Basics of data collection

388
 Basics of data collection

Computer Experience

• What is the mean amount of computer

p
experience ?
• Convert the verbal descriptions to
numbers

389
Basics of data collection

390
 E ample
Example
• To prove children that studying more leads
t better
to b tt grades
d
• Develop a questionnaire to collect data

391
E ample
Example

392
E ample contin
Example continued
ed

393
 Distrib tions
Distributions
• Frequency table

394
Graph of frequency
freq enc distribution
distrib tion

395
Response time after medication
• In micro seconds

396
Gro ped freq
Grouped frequency
enc distributions
distrib tions

397
 E
Example
l

The thickness of a particular metal part of an optical instrument was measured on

121 successive items as they came off a production line under what was believed to
be normal conditions. The results are shown in Table

398
 Decide n
number
mber of classes
• The largest item in the table is 3.57, and the
smallest is 3.21,, so the range
g is 0.36

• The number of class intervals accordingg to Sturges’

g
Rule should be approximately
number of class intervals ≈ 1 + 3.3 log10 N
≈ 1 + (3.3) (log10121) = 7.87
( here N = 121 )

Class width = Range / Number of classes

= 0.36/ 7.87
= 0.0457
= 0.05 399
 Class bo
boundaries
ndaries
• Let us chose the smallest data i.e. 3.195
andd add
dd th
the class
l width
idth = .05,
05 so th
the fifirstt
class is g
given byy
• 3.195+0.05 =3.245 ( upper boundary )
The first class is given by
3 195 to 3
3.195 3.245
245
similarly ,remaining classes are obtained
Next count the number of data points which fall
under
u de eevery
e y cclass
ass .
400
Classes and Bo
Boundary
ndar

401
Histograms

402
Class width of 0.03 and 0.10 mm
histograms

403
Notations for ssummations
mmations

Label grape 11’ss weight X1

Label grape 2’s weight X2

404
Notations for ssummations
mmations

405
Notations for ssummations
mmations

406
 E ercises
Exercises
• A teacher wishes to know whether the
malesl iin hi
his/her
/h class
l h
have more
conservative attitudes than the females.
A questionnaire is distributed assessing
attitudes
ttit d and d the
th malesl and
d th
the ffemales
l
are compared.
Is this an example of descriptive or
inferential statistics?

407
 E ercises
Exercises
• A cognitive psychologist is interested in
comparing
i ttwo ways off presentingti stimuli
ti li
q
on subsequent memory. y Twelve subjects
j
are presented with each method and a
memory test is given.
given
What would be the roles of descriptive and
inferential statistics in the analysis of these
d t ?
data?

408
 E ercises
Exercises
1. Give an example of an independent and a
p
dependent variable.

2 Categorize the following variables as being

2.
qualitative or quantitative

• Country you were born in

• Favorite Color
• Time to respond to a question
• Age
• Rating of the quality of a movie on a 7-point scale

409
 Graphing distrib
distribution
tion
• Bar charts are useful for portraying
f
frequencies
i off qualitative
lit ti variables.
i bl

• Effective for illustrating the frequencies of

different categories

410
E ample ccurrent
Example: rrent state

411
E ample : Share price
Example

412
Example
p : Showingg change
g over
time

413
 Line graphs
• Correct only when both the x – and Y axes
are quantitative
tit ti
• Better than bar graphs comparing change
over time

414
Line graphs

415
 PEMP EMM502

Scatter Diagram
• This is a diagram, used to
study
t d and d id
identify
tif th
the
possible relationship
b
between two variables.
i bl

• Also, it can used to

establish
– Existence of Correlation
– Type
T off Correlation
C l ti
– Strength of the relation
416
Scatter diagram interpretation guide PEMP EMM502

417
 Correlation and Regression
• Is there a relationship between speed at which a
car travels and rate at which it consumes fuel

Car Speed and Fuel

Consumption

Speed 20 25 30 35 40 45 50 55 60

Cons.. 22 21 20 23 19 18 16 14 11

418
 PEMP EMM502

Plotting the data

25
Mill liters
s

20
onsumpttion in M

15

10

5
Co

0
0 10 20 30 40 50 60 70
Speed in Km/hr

419
 PEMP EMM502

Linear Correlation co
co-efficient
efficient

Where n is the number of data points

420
 Speed Con
x y xy x2 y2
20 22 440 400 484
Computing 25 21 525 625 441
Linear Correlation 30 20 600 900 400
co-efficient 35 23 805 1225 529
40 19 760 1600 361
r = - 0.
0 906
45 18 810 2025 324
50 16 800 2500 256
55 14 770 3025 196
60 11 660 3600 121
Totals 360 164 6170 15,900 3112

421
 PEMP EMM502

Interpretation of r
• If the
th computed t d r is
i hhas a value
l greatert th
than +1 or
less than -1 then error must be present in the
computations.
t ti
• Strong gppositive correlation is indicted by
y r near to
+1
• Strong negative correlation is indicted by r near
to – 1
• If r is
i near tto 0 iindicates
di t less
l or no significant
i ifi t
correlation
• In general, correlation greater than 0.8 is
generally
g y described as strong,g, whereas a
correlation less than 0.5 is generally described as 422

weak.
 PEMP EMM502

E ercises
Exercises
What type of Correlation you think the
f ll i situation
following it ti may h have
• People’s
People s ages and blood pressures
pressures.
• The amount of rainfall and vegetation
growth
• The weight of cars and fuel consumption
• The diameter and circumferences of
circles
423
 E ercise
Exercise

In each of the followingg , a sample

p of p
paired data p
products a linear
correlation r. What do you conclude in each case ?
x 1 3 3 4 5
y 3 3 4 5 6

x 1 3 3 4 5 5
y 5 3 2 2 0 1

424
 PEMP EMM502

Correlation Game

425
 PEMP EMM502

Regression
Regression helps derive a relation
between two sets of data
data.
Understanding
g equation
q for straight
g line
y = mx + b

m= slope of the line

m

b = y intercept

426
 PEMP EMM502

Finding
g slope
p ((m)) & Intercept
p (b)
( )
for given line

427
 PEMP EMM502

Finding equation between data

points
y = mx + b

428
 PEMP EMM502

The Method of Least Sq

Squares
ares

429
 PEMP EMM502

Y= a+ b x
Table shows the respective heights x and y of a sample of 12 fathers
and their oldest sons. Find the least-squares regression line of y on x.

430
 PEMP EMM502

Regression game

431
E amples
Examples

432
 Central Tendenc
Tendency
• Imagine that your are given a test in the
class
l and
d your score iis 3/5
3/5..

• How do you feel about the score ?

• You may calculate the percentage
3/5 accounts to 60 % … so happy
• Ask your friends

433
 Central tendenc
tendency meas
measures
res

Location
L ti
• Mean Median
Spread
• Variance Sigma

434
 Arithmetic Mean
Mean: It is the arithmetic average.

Consider a list x1, x2 , . . . . , xn of n data values. Then

∑ xi
Mean =
N
Mean is calculated for sample and / or population.
P
Population
l ti Mean
M & Sample
S l Mean
M

μ x
435
 Arithmetic Mean

∑ xi
M
Mean =
N

Where N is number of data points

Find the sample mean of 10,20,30 and 40

Here N = 4

10 + 20 + 30 + 40 = 100 / 4 = 25 Examples

436
 Median

Median:
~
Is the middle value denoted by
xy when the
data is arranged in ascending.

12, 13, 21, 27, and 31.

Then, ~x Median, = 21

437
 Example :
12, 13, 21 , 27, 31, 55

( 21 +27 )
Median = = 24
2

Problems : 25,36,52,85,96,100,56,59,960
~
x = 59
438
 Variability or Spread
Consider the following data
S t
Sets

Group A: 2, 3, 4, 8
Group B: 1, 2, 4, 10
Group C: 0,
0 11, 5
5, 11

Find Mean
= 4.25
439
 Range
One simple
O i l measure off variability
i bili is
i the
h
sample range, the difference between the
smallest item and the largest item in each
sample.
l

Find the range for previous example

440
 Total Deviation from Mean is
always zero
Find the Mean Deviation for following
Deviation From
Mean
10,20,30,40

10 - 25 -15
15
Number of data points = 4
20 - 25 -05
Sum of the data =10+20+30+40 = 100
30 - 25 +05
Mean = 100/ 4 =25
40 -25 +15
Deviation from Mean = 25
Total Deviation 0

441
The solution for this situation is to square
deviation and then find the mean
deviation
Deviation
From Mean Deviation Square
10 - 25 -15 (-15)2
20 - 25 -05 (-05)2
30 - 25 +05 (+05)2
40 -25 +15 (+15)2
Total Deviation 0 500
442
So the Mean Deviation is given
g
by
Total
T t l Deviation
D i ti
Mean Deviation =
Number of Data Points

2 500
(Mean Deviation) =
4

= 125

443
 Variance

Where ,µ is the population mean , σ2 is the

population variance and N is number of data points

IIn words
d iit is
i the
h mean off the
h squares off the
h
deviations of each measurement from the mean of
the
h population.
l i
* Variance has units of quantity squared like m2 or s2
444
 Standard De
Deviation
iation

• It is just the square root of Variance

445
 E ample
Example
• Find the Variance and Standard Deviation
f the
for th population
l ti below
b l

• 10, 20, 30, 40

Solution
– No.
No of data points = 4
– Sum of Data Points = 10+20+30+40 = 100
– Mean of the Population = 100/4 = 25.
446
Estimate of Variance and Standard
deviation

T t l Deviation
Total D i ti
Mean Deviation =
No . of Data Points

2 500
(M
(Mean D i ti ) =
Deviation)
4

2
Variance ( ) = 125 units

447
 Standard Deviation of
Population

Standard Deviation = Sqrt of Variance

Variance.

= Sqrt ( 125 )

= 11.18
11 18 units

448
 E ercises
Exercises
• Find variance and standard deviation and
i t
interpret
t

Group A: 2, 3, 4, 8

Group B: 1, 2, 4, 10

Group C: 0, 1, 5, 11

449
 Estimate of Sample
p Variance and
Standard Deviation

V i
Variance =

Standard Deviation = S =

450
 E ercises
Exercises
Find sample standard deviation form the
f ll i population
following l ti , select
l t antt 5 random
d
numbers.

10, 20 , 30 , 40 , 50, 60, 70, 80, 90 and

100

22, 22, 22, 22, 22, 22, and 22

451
 Central Limit Theorem
• As the sample size increases the sampling
di t ib ti off th
distribution the sample
l mean
pp
approaches the normal distribution with
mean μ and variance σ2/n

• Animation to Demonstrate

© M.S Ramaiah
M.S Ramaiah
School School of Advanced
of Advanced Studies - Bangalore 452
PEP’S EMM502
Studies - Bangalore
 Animation Game : CLT

© M.S Ramaiah
M.S Ramaiah
School School of Advanced
of Advanced Studies - Bangalore 453
PEP’S EMM502
Studies - Bangalore
 Q estion
Question
• How many ways can we have 1st , and 2nd
place
l fifinish
i h , if 4 athletes
thl t are running
i a
marathon .

• Construct a tree diagram and find out

……

454
 Basic counting
g principle
p p

Let E1 , E2 , E3 , ………….E Ek be a
sequence of events. If first event E1 can
occur in m1 different ways , E2 can occur
in m2 different ways and so on up to ……
mk ways .

Then the total number of ways that all k

events occur is g
given by
y
m1*m2*m3*m4*………………*mk ways 455
 Perm tations
Permutations
• A permutations of n elements is an
ordering
d i off n elements
l t suchh th
thatt one
element is first , one is second one is
third,.etc
Or
• Used to find out how many different ways
events can occur, given that the order of
the matters

456
 Problems

1 List all permutations of the letters in

1.
the word
CAT
1 Twenty students are running elections
1.
how manyy ways y ways y yyou can those
President, Vice President and
Secretary ?
2. 7 digit
g p phone number in a city y all have
661 as the first three digit . How many 457
 Combinations
Here the order doesn’t matter :

How many ways can we get first and

second place if we have three runners
running a race …

How many ways can we pick two

employees out of the best three for a
t i i ..
training 458
 Form la
Formula
• The number of combination of ‘n’elements
t k ‘r’
taken ‘ ’ att time
ti is
i

459
 E ercises
Exercises
• On an election ballot you select three
officials
ffi i l from
f a group off six
i candidates
did t .
How many y ways
y can you
y do this

460
 E ercises
Exercises
1 T
1. To wini the
h llottery you must pick
i k6
number from 49 ball numbered 1 to 49
. The order you pick number does not
matter
tt . How
H many selections
l ti are
p
possible?
2. How many ways can manufacturer
chooses
h ttwo warehouses
h ffrom 20
choices ..
3. A manufacturer has 8 motors and 5
switches. In how many ways can you 461
 Probabilit Concepts
Probability
• What is probability of u getting president of
Indian in the next one minute?
• What is the pprobability
y of yyou being
g alive
after one minute ?
• Probability of an event lies between 1 and
zero
• Sum total of all probable expected events
equals to unity, example tossing as coin,
growing dice , etc .
462
 Random Variables

• Discreet Random Variable

– Tossing a coin ,
– Rolling a dice
• Continues Random Variable
– Height
H i ht off people
l
– Weight
g of p people
p
– Rainfall in mm
463
 Probabilit distrib
Probability distributions
tions
• Consider that you are rolling two fair dices
andd start
t t to
t adddd th
the number
b off two
t dices,
di
find the pprobabilityy of each event ((like 2,, 3
,4 ..etc., ) .
• Hint
Hi t th
the ttotal
t l samplel space iis 36
36..

464
 Finding probabilities

P b bilit off a eventt

Probability O t off 36 possibilites
Out ibilit /36
P(2) 1 0.027778
P(3) 2 0.055556
P(4) 3 0 083333
0.083333
P(5) 4 0.111111
P(6) 5 0.138889
P(7) 6 0 166667
0.166667
P(8) 5 0.138889
P(9) 4 0.111111
P(10)
( ) 3 0.083333
P(11) 2 0.055556
P(12) 1 0.027778

465
Discrete probabilit
probability distrib
distribution
tion

Discrete Probablity

0.2
P(7)
0.15 P(6) P(8)
bility

P(5) P(9)
Probab

0.1 P(4) P(10)

P(3) P(11)
0.05 P(2) P(12)

0
I di id l Event
Individual E t

466
Normal Distrib
Distribution
tion of height

467
Eq ation
Equation

468
 Example
p 1

The masses of packages from a particular

machine
hi are normally
ll distributed
di t ib t d with
ith a
mean of 200 g and a standard deviation of
2 g. Find the probability that a randomly
selected package from the machine
weighs:
Less than 197 g
More than 200.5 g
Between 198.5
198 5 g and 199.5
199 5 g
469
 S mmar I
Summary
• Basic concepts about statistics and
probability
b bilit di
discussedd
• Different methods of representing data
are discussed
• Probability , probability distributions are
discussed
• Stat g
games and Exercises are p performed
for better understanding of statistics .
470
 Session II
Objectives
• Understand
U d t d th the role
l off measurementt systems
t
analysis
• To understand Taguchi Loss Function
• To compute loss due to deviation from target
• Concept of Robust Design
• Case Study on Taguchi Parameter Design
• Exposure to hypothesis testing

© M.S Ramaiah School of Advanced Studies - Bangalore 471

 Gage Variation
• Variation introduced into product
measurements t b
by th
the measurementt
process itself.
p

472
 Reprod cibilit
Reproducibility
• The variation due to different operators
t ki measurements.
taking t
Or
• The ability of different operators to
produce the same measurement results
on the same part using the same gage

473
 Repeatability
Repeatabilit
• The variation due to the gage itself.
or
• an operator’s
operator s ability to repeat
measurements on the same part using the
same gage

474
 Meas rement variation
Measurement ariation
Measurement variation or gage capability is the
combination of reproducibility and repeatability
repeatability.

• Total variation : measurement variation +

product variation.
variation

• Measurement variation :reproducibility +

p y
repeatability.

475
 Gage Variation st
study
d
• A study to determine the amount of
variation
i ti iintroduced
t d d iinto
t product
d t
measurements byy the measurement
process itself.

• This analysis is used to calculate the

percent of engineering specification
consumed by measurement variability.

476
 Wh to st
Why study
d gages
1. To evaluate the amount of variation due
t the
to th measurementt process.
2 To identify whether measurement
2.
variation is a significant problem so
action
ti can b be ttaken.
k
3 Reduce total variation and improve Cpk
3.
by improving the measurement process..

477
 When to start
1. A key characteristic or process is not
capable.
bl
2 The suitability of a gage for use in control
2.
charting a process must be determined
3. Preparations are being made to conduct
a designed experiment
experiment.

478
Seven basic types
yp of measurement
variation
• Bias — The difference between the
average off a sett off repeated
t d
measurements with a single g device,, and
the accepted true value of what is being
measured

479
 Reprod cibilit
Reproducibility
• A value describing the component of
variation
i ti d due tto
• measurements made by different
appraisers, using the same gage

480
 Gage capability
capabilit
• The combined variation of reproducibility
andd repeatability
t bilit Thi
This iis an estimate
ti t off th
the
total variation p
present in the measurement
process.

481
 Stability
Stabilit
• The difference in the average of at least
t
two sets
t off measurements t obtained
bt i d withith a
gage,
g g , over time

482
 Acc rac and Resol
Accuracy Resolution
tion
• Accuracy — The degree of agreement of
measurements t with
ith the
th accepted t d true
t
value of what is beingg measured. This is
typically determined by calibration in lab.
• Resolution
R l ti — TheTh ability
bilit off a
measurement device to differentiate
between values of a measurable
characteristic
h t i ti

483
 Ho to Cond
How Conduct
ct
Step 1: Choose parts to be tested
S t aside
Set id fifive tto ten
t parts
t and
d select
l ta
single
g characteristic on each p part. Obtain
the engineering specifications and
tolerances for the selected characteristic
characteristic.
Step 2: Select gage
• Choose a gage to measure the part
characteristic It should be the gage used
characteristic.
during production on the factory floor.
484
 Ho to Cond
How Conduct
ct
• Step 3: Select people to take measurements
• Step 4: Obtain measurements :
• Step 5: Determine reproducibility, repeatability,
and
d gage capability
bilit
p 6: Determine p
• Step percentage
g of tolerance
consumed (PTC)

485
E ample
Example

486
Percentage
g of tolerance
consumed

487
Gage R & R Res
Results
lts

488
 Interpretation
Reproducibility > Repeatability

1 Different operators are using different

1.
measurement methods.
2. Scale markings on the gage are not
legible to the degree required
required.
3. Training on proper use of the gage may
be required.
489
 Interpretation
Repeatability > Reproducibility

1 Gage maintenance (refurbishment) is

1.
necessary.
2. The gage is inconsistent or degrades
with use or time
time.
3. Setup or fixtures need improvement.

490
 Hints :
• It is recommended that the gages use no
more than 10% of the engineering
tolerance.
tolerance
• Acceptable Measurement variation that
consumes values approaching 30% of the
engineering tolerance should be
considered only marginally acceptable.
• Above 30% PTC : Not acceptable
491
 H pothesis Testing
Hypothesis
• Hypothesis: A theory/postulate/statement
made
d about
b t a process. A hhypothesis
th i iis an
p
assumption made about a ppopulation
p
parameter

© M.S Ramaiah School of Advanced Studies - Bangalore 492

 Basic Concepts
• Null and Alternative hypothesis.
• Type I and Type II error.
• Parameter
• One tail and two tail test.
• Level of significance and power.
• Critical Values

© M.S Ramaiah School of Advanced Studies - Bangalore 493

 N ll and Alternati
Null Alternative
ehhypothesis
pothesis

• Null hypothesis denotes a sign H0, which

always deals positive attitudes
attitudes.

• Alternative hypothesis denotes a sign H1,

which always deals negative attitudes
attitudes.

© M.S Ramaiah School of Advanced Studies - Bangalore 494

 T pe I and T
Type Type
pe II Errors

Type I Error: Rejecting the null hypothesis

when it is in fact true.

Type II Error: Not rejecting the null

hypothesis when it is in fact false.

© M.S Ramaiah School of Advanced Studies - Bangalore 495

 Parameter

• Statistical parameter are

1. Mean and
2. Standard deviation

© M.S Ramaiah School of Advanced Studies - Bangalore 496

Normal Distrib
Distribution
tion

α/2

© M.S Ramaiah School of Advanced Studies - Bangalore 497

 Significance Level

The probability
Th b bilit off making
ki a Type
T I error, that
th t is,
i
j g a true null hypothesis,
of rejecting yp , is called the
significance level, α, of a hypothesis test.
1% 5% etc
1%, etc.

© M.S Ramaiah School of Advanced Studies - Bangalore 498

 Two tail test

© M.S Ramaiah School of Advanced Studies - Bangalore 499

 One tail test

© M.S Ramaiah School of Advanced Studies - Bangalore 500

 One tail test

© M.S Ramaiah School of Advanced Studies - Bangalore 501

 Critical Val
Values
es

Critical values are the values of the test

statistic that separate the rejection and non
rejection regions.

Critical values are the table value.

© M.S Ramaiah School of Advanced Studies - Bangalore 502

 Fi e steps of hypothesis
Five h pothesis test
1. Stating of hypothesis(H0 and H1).
2. Formula and explanation.
3
3. Calculation of test value.
value
4. p
Comparison between test value and
table value
5. Selection and conclusion.

© M.S Ramaiah School of Advanced Studies - Bangalore 503

An introduction to taguchi
techniques for quality
p
improvement

© M.S Ramaiah 504

© M.S Rmaiah School ofAdvanced
School of AdvancedStudies
Studies - Bangalore
- Bangalore
 Perception of q
quality
alit
• The traditional model for quality losses
– No losses within the specification limits!

Cost
Scrap Cost

LSL Target USL

• The Taguchi loss function

– the quality loss is zero only if we are on target

© M.S Ramaiah School of Advanced Studies - Bangalore 505505

 Loss ffunction
nction

• Loss function : Is a function that can

g and variation.
relate cost, target

© M.S Ramaiah School of Advanced Studies - Bangalore 506

 E ample
Example

© M.S Ramaiah School of Advanced Studies - Bangalore 507

 Loss ffunction
nction

The concept underlying the approach can be

summed up in two statements:
(1) Quality should be measured by the
deviation from a specifiedp targetg value,, rather
than by conformance to preset tolerance
limits.
limits
(2) Quality cannot be ensured through
inspection and rework, but must be built in
through
g the appropriate
pp p design g of the
process and product.
© M.S Ramaiah School of Advanced Studies - Bangalore 508
 Understanding loss ffunction
nction
Taguchi divide disturbances into three categories

External disturbances: variations in the environment where

th product
the d t is
i usedd

Internal disturbances: wear and tear inside a specific unit

Disturbances in the production process: deviation from target

values

© M.S Ramaiah School of Advanced Studies - Bangalore 509

 Problems

© M.S Ramaiah School of Advanced Studies - Bangalore 510

© M.S Ramaiah School of Advanced Studies - Bangalore 511
Other loss ffunctions
nctions

© M.S Ramaiah School of Advanced Studies - Bangalore 512

 R b tD
Robust Design
i
• A three step method for achieving robust design
(Taguchi)

1. Concept design
2. Parameter design
3. Tolerance design

• The focus of Taguchi

g is on Parameter design
g

© M.S Ramaiah School of Advanced Studies - Bangalore 513

Th Taguchi
The T hi Process
P

© M.S Ramaiah School of Advanced Studies - Bangalore 514

 Case st
study
d

In this study,
y, the Taguchi
g method is used
to find the optimal cutting parameters for
surface roughness in turning
turning.

© M.S Ramaiah School of Advanced Studies - Bangalore 515

 Control factors
Three cutting parameters
1 feed rate
1.
2. depth
p of cut
3. insert radius must be

© M.S Ramaiah School of Advanced Studies - Bangalore 516

 Initial settings

© M.S Ramaiah School of Advanced Studies - Bangalore 517

E perimental la
Experimental layout
o t

© M.S Ramaiah School of Advanced Studies - Bangalore 518

Res lts :Optimal
Results Optimal levels
le els

© M.S Ramaiah School of Advanced Studies - Bangalore 519

 Anal sis of S/N
Analysis

© M.S Ramaiah School of Advanced Studies - Bangalore 520

Res lts from S/N ratio Anal
Results Analysis
sis
• Optimal level which yielded minimum
roughness
h

© M.S Ramaiah School of Advanced Studies - Bangalore 521

 Anal sis of Variance ANOVA)
Analysis
• Separating the sources of variation
• Find the total variation
• Find out individual variation
• Take the ratio of individual to total
variation and multiply by 100 to get
percentage contribution

© M.S Ramaiah School of Advanced Studies - Bangalore 522

 Total Variation

where m is the number of experiments in the orthogonal array, e.g., m = 9 and gi is

the mean S/N ratio for the ith experiment

where p represent one of the experiment parameters,

parameters j the level number of this
parameter p, t the repetition of each level of the parameter p, sgj the sum of the S/N
ratio involving this parameter p and level j.

© M.S Ramaiah School of Advanced Studies - Bangalore 523

 ANOVA Table

© M.S Ramaiah School of Advanced Studies - Bangalore 524

 Confirmation tests

PEMP EMM502 © M.S Ramaiah School of Advanced Studies - Bangalore 525

 S mmar II
Summary
• Taguchi loss function is described
• Parameter design procedure discussed
• Exposure to hypothesis testing
• y
Measurement systems analysis
y is
explained

© M.S Ramaiah School of Advanced Studies - Bangalore 526

 PEMP EMM502

Session 7

Guest Lecture

527
 PEMP EMM502

Session 8

Variation
SPC
Six Sigma

528
 PEMP EMM502

5 1 Session
5.1 S i Objectives
Obj ti
5.1 Session Objectives
– At the end of this session the student would have
understood
• The concept p of variation and its analysis
y as an
aid to continuous improvement, SPC and
process
A
Approach h tto six
i sigma
i
• Implementation of Six Sigma programmes
• Real life situations of application of six sigma by
review of Case studies in six sigma

529
 PEMP EMM502

Session Topics
• Chance and Special causes
• Measures of variation
• Control charts
• Methodologygy of Six sigma
g
• Tools of six sigma

530
 PEMP EMM502

Understanding
g Variation
An Introduction

Action on Action on
process product

IInfo
f on
process
Info on
product

Process Product

Detection
Prevention
System--INSPN
System QC

531
 Understanding Variation

• Nothing in the world is identical Each Person Total effect in

to the other % perfect a chain of 10
• What variations do we accept? persons
• Chain effect of variations can 99% 90.4%
%
be bad and disastrous,
consider performance of each 75% 5.6%
department compounded 10 Distinction
times. That is if you are x% 60% First
perfect and pass on your 0.6%
Cl
Class
product to nex man, then he to
next man, like that 10 times, the 50% II Class 0.09%
final result is 90% only even if
each person is 99% perfect 35% Just Pass 0.003%

532
In swipe time of an employee

8:52 Unstable
8:38
P
Process

8:24

8:09

7:55
Time

Trainee
7:40

7:26

7 12
7:12

6:57

6:43
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39

Week No.
533
In swipe time of an employee

Unstable Well
P
Process Managed
8:52
Process
8:38 Improved,
W ll
Well
8:24
Managed
8:09 Process
7:55
Time
T

7:40

7:26

7:12
A responsible
employee
6:57

6:43
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39

Week No.
534
In swipe time of an employee

8:52 Unstable Well

8:38
P
Process Managed
Process
8:24

8:09

7:55
Time

7:40
A committed
7:26
senior employee
7 12
7:12

6:57 Improved, Well

Managed Process
6:43
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39

Week No.
535
 8:52
Process
8:38
Characteristics
8:24
No. of errors
8:09 (l
(lower th
the b
better)
tt )
Output
Input 7:55

7:40
Process
7:26

7:12

6:57

6:43
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39

536
 No. of errors
(l
(lower the
h bbetter))

Input
Process

Well managed Improved and well

Unstable process
process managed process

•Off the target

•Instability •Variability
•Type C
•Type A •Type B
•0 – 100 ppm
•% Defects •1000 - 5000 ppm
•Low hanging •Medium hanging •High hanging
fruits fruits fruits
•Redefining
•Sporadic •Chronic
•Assignable problem
ss g able cause •Random
a do cause
•Non
N assignable
i bl
random cause
537
 Why control ?

Why Consistency ?

“Consistency and Uniformity are the foundations of

economy prosperity and peace
economy, peace”
- Dr. Edward Deming

“D i mundane
“Doing d thi
things consistently
i t tl isi called
ll d excellence”
ll ”
- Unknown
538
 We have…..Various tools to control various
processes !!
At the end of the session, you will be
able to…

•Select an appropriate control chart for

a given process

•Plot the control chart

•List the guidelines on taking actions

when process is out of control

•Improve the process over a period of

ti bby reducing
time d i variation
i ti
539
 PEMP EMM502

SQC
• Statistical Quality Control is the application of
Statistical techniques to accept or reject
products already produced or to control the
process off manufacture
f t while
hil th
the product
d t iis
being made
• The latter is called Process Control and the
former as Acceptance Sampling
• SQC is based on Probability theory and
i l
implementedt d th
thru C
Control
t l Ch
Chartst

540
 PEMP EMM502

V i bilit
Variability

• Nothing happens exactly the same again and

again.
again
• Thus there is a continuous variation in output which has
two basic causes:
Common causes(Chance)
Special causes(Assignable)

The variation in the quality of the product in any manufacturing process is broadly
classified into two;
Chance Causes; Causes which are inherent in manufacturing process by virtue of
operational and constructional features of equipments involved in the process
process.
These causes are very difficult to trace out. Magnitude can be reduced.
Chance Causes result in only a minute amount of variation in the process. The process
will be stable and predictable
predictable. The degree of variability is consistent over a period of
time 541
 PEMP EMM502

Contd
• Assignable Causes; Causes which create an
extraordinary variation in product quality
quality.
• Assignable causes can be traced to a specific
source.
• Ex: Lack of skill in operation,
operation wrong
maintenance practices, raw material defect etc…
• Variation
V i ti dued tot these
th causes can be
b controlled
t ll d

542
 PEMP EMM502

Contd
• A process which is running only under common
cause variability is said to be under statistical
control (NORMAL DISTRIBUTION).Here when
size
i vs number
b iis plotted
l tt d ,a N
Normall or B
Bellll
shaped curve will result
• Where special causes are present the process
is said to be out of control(Skewed Distribution)

543
 PEMP EMM502

Q alit at So
Quality Source
rce
• Inspection is a Post Mortem.
• If the worker is made to Inspect while the
product is being made and held responsible for
Quality this can be termed as InIn-process
process
Inspection and we are trying to achieve Quality
at Source
• So Worker is responsible for his Quality,Simple
charts
h t and d SQC ttechniques
h i are used d ffor
monitoring,Worker can stop prodn to stop
producing
d i d defective
f ti parts t
• A culture of Quality
y Circles is built to enable
solving quality related issues 544
 PEMP EMM502

Standard Deviation
MSE=(av-indi result)*2 Mean

N-1
Std deviation=sigma= √ mse Deviation
Mean squared error

No of cases
size

• Deviation is the distance from the mean

• Deviation score=observation-mean
• Variance is mean of square of deviation score.σ2 is
symbol of variance
• Standard deviation or sigma is the square root of variance
WholeWIDELY
IS THE MOST struggle is to reduce
USED Process
SYMBOL FOR VARIANCE
tolerance
545
 PEMP EMM502

Normal distrib
distribution
tion
• Properties of this Normal distribution form
th basis
the b i ffor SPC.
SPC
No
Of
cases

3σ size
Std deviation σ,(sigma)
68.26% = +/-1σ
99 73%= +/- 3σ
99.73%=

Area under Bell shaped curve=100%

546
 PEMP EMM502

Standard Deviation… Contd

If we superimpose the customer derived spec limits on top of two distributions with
different std deviations WE CONCLUDE THAT VARIATION IS THE MAIN
PROBLEM.REDUCE IT!!!

• It’s relation to specifications

Process 1

Standard Deviation 0.5

rejections rejections
j
Process 1

Tolerance given by Standard Deviation 0.05

Specification

Lower the Std Deviation of process –it is better

547
 PEMP EMM502

The Normal Distribution

Distrib tion
1st distribution

LTL HTL
2nd distribution

3rd distribution

Defects

Mean is same in all cases

Which process is better?
548
 Random
cause

-3 +3

Assignable Assignable
cause cause

This is the basis of control chart

549
 PEMP EMM502

Variation—Self study
y
-Next 8 slides
• So a process improvement plan will normally involve
• Removing the special causes
• Progressively reducing the effects of Common causes
• It is very imp to correctly identify which is a
special cause and which is a common cause
• If faults of the system(common) are treated as
special causes and continual tampering with the
process is done ,it will result in increased
variability
• Special causes will not be really identified and
so ,never removed and so the process will never
achieve stability and consistency
550
 PEMP EMM502

Analysing
y g Variation

• To analyse the variation in any set of data one

must examine
– The shape of the distribution curve
– The location or centre
– The spread about the centre
• Pl
Plotting
tti the
th frequencies
f i against
i t values
l results
lt iin
a distribution curve
• If the curve is bell shaped and symmetric it is
known as normal distribution and is most
frequent in industrial processes

551
 PEMP EMM502

Contd
• This is very useful since the known
properties
ti off the
th normall distbn
di tb mean th
thatt
predictions can be made about p
p process
performance from the value of its
standard deviation
• The standard deviation is a measure of
spread or scatter about the mean

552
 PEMP EMM502

Normal Distribution—Analysing
variation
i ti M
Mean=µ

• 68.26% of all data

will be within +/- 1sig
• 99.74%
99 74% within +/-3
+/ 3 sig
• Above can be pre dicted
if process is stable and
distbn curve is normal 95
• ONLY 2600 PARTS %
99.74%
PER MILLION WILL BE
OUTSIDE +/- 3SD’S -3σ -2σ - μ=0 1σ 2σ 3σ
1σ
LTL UTL
553
 PEMP EMM502

Predicted Defect level as

Process capability increases

sigma ppm defective

2 308
308,537
537
3 66,807
,
4 6,210
5 233
6 3
3.4
4

554
 PEMP EMM502

Anal sing variation

Analysing ariation
• A much easier to calculate, but less meaningful
measure of spread is the Range R
• R=Largest value in data-Smallest value in data
• The std deviation can be approximated from
Range using a simple formula
• Lastly, the distbn curves are a static picture or
snapshots
h t off variability
i bilit iin titime

555
 PEMP EMM502

Reduction in Variation
• (From
Recapcontrol to continuous improvement)
very imp

– Processes left to their own devices are likely to be out

of control and unstable------ie unpredictable in their
behaviour influenced by special causes
– Removing g these special
p causes pputs the pprocess in
control, makes it stable and predictable. This is the
single biggest improvement that can be made without
redesign of process.
process
– Then the process will still be subject to the
chance/common causes of variation inherent in it.

556
 PEMP EMM502

Contd----
Contd
• Further CI comes from reducing the
effects
ff t off the
th common causes
• Seven basic tools are used for this and
these are known as SPC .Tools or 7 QC
T l
Tools

557
 PEMP EMM502

Learning?
• SO BOTH MEAN AND VARIATION HAVE
TO BE STABLE.
STABLE
• THIS IS THE KEY TO SPC

558
 PEMP EMM502

T pes of Data
Types
• Control charts can be used to monitor both
attribute and variable data
• Attribute data describes the presence of some
feature characteristic or condition---ie
feature,characteristic condition ie number of
scratches on a surface, number of errors in an
invoice etc.(discrete
etc (discrete data)
• Variable data are recorded measurements of
some characteristic
h t i ti –ie
i llength,
th di
diameter,
t ttempr,
time etc
(Continuous data)

559
 PEMP EMM502

E amples of a fe
Examples few charts
• Mean and range charts—(X Bar—R
Ch t )
Charts)
– These are the simplest
p of the variable control charts.
– The calculation for the positions of the control limit
lines are less complex
p than those involvingg the mean
or std deviation
– The average and range of small samples of constant
size are plotted as a pair of charts.
– The data gathering must take into account the size
and the frequency of the sample

560
 PEMP EMM502

Contd---
Contd
• How to draw a chart
– Gather data in sub
sub-groups
groups of n observations each , in
time order
– For each subgroup find X BAR and R
– Plot the means and ranges on separate charts
– Calculate the grand mean
X
and plot this mean of subgroup means ,as the
centerline of the mean chart
• Calculate the mean of the subgroup ranges R bar and
plot as the centerline of the range chart

561
 Contd
• Calculate and plot the control limits for the mean
chart UCL and LCL
chart---UCL
• In the formula there will be a constant A2 which
depends on value of n
• Calculate and plot the control limits for the range
chart. Here there will be constants D3 and D4
based on values of n
• Interpret the results in terms of system stability

562
 PEMP EMM502

Control
• The purpose of control charts is to detect out of
control conditions
conditions, which are commonly
thought to be occurring if data points fall
outside the control limits and are also present if
certain patterns occur within the control limits
• One
O point i t or more beyond
b d control
t l lilimits,
it seven
consecutive points above or below the
mean,seven consecutive i points
i iincreasing
i or
decreasing

563
 PEMP EMM502

X bar Chart e
X-bar example
ample
OBSERVATIONS (SLIP- RING DIAMETER, CM)
SAMPLE k 1 2 3 4 5 x R
1 5.02 5.01 4.94 4.99 4.96 4.98 0.08
2 5 01
5.01 5 03
5.03 5 07
5.07 4 95
4.95 4 96
4.96 5 00
5.00 0 12
0.12
3 4.99 5.00 4.93 4.92 4.99 4.97 0.08
4 5.03 4.91 5.01 4.98 4.89 4.96 0.14
5 4.95 4.92 5.03 5.05 5.01 4.99 0.13
6 4.97 5.06 5.06 4.96 5.03 5.01 0.10
7 5 05
5.05 5 01
5.01 5 10
5.10 4 96
4.96 4 99
4.99 5 02
5.02 0 14
0.14
8 5.09 5.10 5.00 4.99 5.08 5.05 0.11
9 5.14 5.10 4.99 5.08 5.09 5.08 0.15
10 5.01 4.98 5.08 5.07 4.99 5.03 0.10
50.09 1.15

564
 PEMP EMM502

X bar Chart e
X-bar example
ample contd
contd..

= ∑x 50.09
x= = = 5.01 cm
k 10

UCL = x= + A2R = 5.01 + (0.58)(0.115) = 5.08

LCL = x= - A2R = 5.01

5 01 - (0.58)(0.115)
(0 58)(0 115) = 4
4.94
94

Retrieve Factor Value A2

565
 PEMP EMM502

X-bar
X bar Chart example contd
contd..

5.10 –

5.08 – UCL = 5.08

5.06 –

5.04 –
x== 5.01
Mean

5.02 –

5.00 –

4 98 –
4.98
LCL = 4.94
4.96 –

4.94 – | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10
Sample number
4.92 –

566
 PEMP EMM502

R bar chart e
R-bar example
ample

UCL = D4R LCL = D3R

∑R
R= k

where
R = range of each sample
k = number of samples
567
 PEMP EMM502

R bar chart e
R-bar example
ample contd
contd..

OBSERVATIONS (SLIP
(SLIP--RING DIAMETER, CM)
SAMPLE k 1 2 3 4 5 x R
1 5.02 5.01 4.94 4.99 4.96 4.98 0.08
2 5.01 5.03 5.07 4.95 4.96 5.00 0.12
3 4.99 5.00 4.93 4.92 4.99 4.97 0.08
4 5 03
5.03 4 91
4.91 5 01
5.01 4 98
4.98 4 89
4.89 4 96
4.96 0 14
0.14
5 4.95 4.92 5.03 5.05 5.01 4.99 0.13
6 4.97 5.06 5.06 4.96 5.03 5.01 0.10
7 5.05 5.01 5.10 4.96 4.99 5.02 0.14
8 5.09 5.10 5.00 4.99 5.08 5.05 0.11
9 5 14
5.14 5 10
5.10 4 99
4.99 5 08
5.08 5 09
5.09 5 08
5.08 0 15
0.15
10 5.01 4.98 5.08 5.07 4.99 5.03 0.10
50.09 1.15
568
 PEMP EMM502

R bar chart e
R-bar example
ample contd
contd..

∑R 1.15 UCL = D4R = 2.11(0.115) = 0.243

R= = = 0.115
k 10 LCL = D3R = 0(0.115)
0(0 115) = 0

Retrieve Factor Values D3 and D4

569
 PEMP EMM502

R bar chart e
R-bar example
ample contd
contd..

0.28 –
0.24 –
UCL = 0.243
0 20 –
0.20
0.16 –
Range

R = 0.115
0.12 –
0.08 –
0.04 – LCL = 0
0– | | | | | | | | | |
1 2 3 4 5 6 7 8 9 10
Sample number

570
 Variable chart
chart—one
one more e
ex
• Construct a control
chart for foll data
• Take A2=0.73 for samplesub
gro
m
m Cal Calculat
size=4
i 4 up
R ed ⎯X
X
1 20 22 25 24 5 22.75
2 18 23 20 26 8 21.75
3 24 25 22 20 5 22.75
UCL=22.85+.73*5.4=26.79
4 23 21 26 24 5 23 5
23.5
LCL=18.91 5 24 25 24 21 4 23.5
R = ( 5 + 8 + 5 + 5 + 4 ) / 5 = 5 . 40

X = ∑X / K = (22.75+21.75+22.75+23.5+23.5) / 5 = 22.85
571
 PEMP EMM502

Appendix:
Value of constants Determining Control Limits for x-bar and R-
Charts
SAMPLE SIZE FACTOR FOR x-CHART FACTORS FOR R-CHART
n A2 D3 D4
2 1.88 0.00 3.27
3 1.02 0.00 2.57
4 0.73 0.00 2.28
5 0.58 0.00 2.11
6 0.48 0.00 2.00
7 0.42 0.08 1.92
8 0.37 0.14 1.86
9 0.44 0.18 1.82
10 0.11 0.22 1.78
11 0.99 0.26 1.74
12 0.77 0.28 1.72
13 0.55 0.31 1.69
14 0.44 0.33 1.67
15 0 22
0.22 0 35
0.35 1 65
1.65
16 0.11 0.36 1.64
17 0.00 0.38 1.62

572
 PEMP EMM502

Using x- bar and R-Charts Together

• P
Process average and d process variability
i bilit
must be in control.
• It is possible for samples to have very
narrow ranges,
ranges but their averages is
beyond control limits.
• It is possible for sample averages to be
in control, but ranges might be very
large.
573
 PEMP EMM502

Control Chart Patterns

UCL

UCL

LCL

Sample
p observations
consistently below the LCL
center line
Sample observations
consistently above the
center line
574
 PEMP EMM502

Control Chart Patterns

UCL

UCL

LCL

Sample observations
consistently increasing LCL

Sample observations
consistently decreasing

575
 PEMP EMM502

P f
Performing
i a Pattern
P tt Test
T t

SAMPLE x ABOVE/BELOW UP/DOWN ZONE

1 4.98 B — B
2 5.00
5 00 B U C
3 4.95 B D A
4 4.96 B D A
5 4.99 B U C
6 5.01 — U C
7 5.02 A U C
8 5.05 A U B
9 5.08 A U A
10 5.03 A D B
576
 PEMP EMM502

Attrib te data control charts

Attribute
• Defectives p charts
• Defects c charts
• P chart(proportion defective chart)
– Used when data recorded relates to the
fraction or portion of defectives (rejects) in a
sample to check the output for a level of
sample.to
defects

PEMP EMM502 577

 PEMP EMM502

Contd
• C charts( number of defects charts)
– Data are actual defects rather than defectives,
g the no of errors on a sales form rather than
eg
the no of sales forms rejected..—no of
scratches on a polished surface
surface,no
no of
accidents in a shop,no of defects in each
assembly coming off the line
line,

578
 PEMP EMM502

Attribute Control Charts

Charts-
summary
Types of Attribute Control Charts:
ƒ Control Charts for Defectives: p-chart, np-chart.
np chart is called No of defectives chart
‘np’
‘p’ chart is called fraction defective chart
ƒ Control Charts for Defects: c-chart, u-chart.
c chart is called No of defects chart
u chart is called no of defects/unit chart
SEE HAND OUT FOR EXAMPLES FOR ATTRIBUTE
CHARTS

579
P
Process capability
bilit

580
 PEMP EMM502

Process Capability
Design
Specification
s
(a) Natural variation
exceeds design
specifications;
process is not
capable of meeting
specifications all the Process
time. Design
Specification
s
(b) Design
specifications and
natural variation the
same; process is
capable of meeting
specifications most of Process
the time.

581
 PEMP EMM502

P
Process C
Capability
bilit
Design
Specification
s
(c) Design
specifications greater
than natural variation;
process is capable of
always conforming to
specifications. Process
Design
Specification
s
(d) Specifications
greater than natural
variation, but process
off center; capable but
some output will not
meet upper Process
specification.

582
Concept of Standardized normal distribution
The normal distribution with,
•Mean μ = 0
•Mean, Standard
•Standard deviation, σ = 1 Normal
Distribution
Mean

¾Most of the area is between -3 σ and +3 σ

¾Total area under the curve is 1
583
 Defects
Low
wer Specified Limit (LSL)

Up
pper Specified
d Limit (USL)
Specification & defect areas

Defects

584
 Definition of Process capability
P
Process capability
bilit St
Study
d iis procedure
d off evaluating
l ti a process
by means of control charts to determine if the process is
capable relative
relati e to its specifications & the centering
ability of the Process.

Design Tolerance
Process Capability
p y=
Process Variation

USL - LSL
=
6σ

585
Process capability
P bilit quantifies
tifi how
h well
ll the
th process is i performing
f i
within specification limits with respect to different sources of
variation

per Specified Limit (USL)

Limit (LSL)
er Specified L
Lowe

Upp
Measure
Meas re of capabilit
capability
of process

586
 Need for Process Capability Studies

1. Provide best in class product and services.

2. 100% inspection is not 100% quality & waste of

resources.
resources

3. One of the keyway to achieve quality objective.

4. Comparison between two process, different equipment

and machines

587
Five ‘Ws’ and One ‘H’ of process Capability Study
WHY To predict the ability of machine or
process.
To identify the conditions leading to
non conformance.
HOW By Statistical analysis
WHEN Pre delivery,On going
process,retooling
Approval of newly installed system
WHER In equipment supplier plant,
E Customer own plant.
p
WHAT Quality Characteristics chosen 588
Measure of process capability

Process capability indices:

LSL NOMINAL USL

Pp It relates the
specification range
Cp directly to the
process variation

It relates
l t the
th LSL NOMINAL
MEAN
USL

Ppk specification range

with
ith the
th process
Cpk mean and the
process variation
Cp > Cpk Pp
p > Ppk,
p ,
589
Meaning of Process capability

Cp=0.60
p Cp=1.0
p Cp=1.33
p Cp=1.67
p Cp=2.0
p
USL

Nominal A B C D E

LSL

DPMO 382089 66087 6210 233 34

3.4
590
 Example
p of Process capability
p y
A B

C D

Which is the most CAPABLE ?

591
 Sources of variation

• Within variation

• Between variation

Overall variation = Within variation + Between variation

592
 S
Sources off variation
i ti

Between variation in
sub groups 1 & 4

1 2 3 4 5 6
within variation within variation
in sub group 1 in sub group 4

Overall variation
593
 Measures of process capability

P Overall variation

C Within variation

594
 Measures of process capability

Pp Relates specific range to σ only Captures

p
Overall
variation
Ppk Relates specific range to μ & σ

Cp Relates specific range to σ only

Captures
p
Within
Cpk Relates specific range to μ & σ variation

595
Measures of process capability

USL - LSL USL - X X - LSL

Pp = Ppk = min ,
^s 3 σ^s
6 σ^s 3σ

∑ (x1-x)2
K=2(m-target/tol
( g
Ppk = Pp ( 1-
1 k) σ^s = L=1
n-1

USL - LSL
Cp = Cpk = min
USL- X
,
X - LSL
^ ^ ^
6 σ 3σ 3σ

Cpk = Cp (1- k) σ can be calculated from the available

data or can be expressed as R/d2
596
Consideration of Process capability indices

Cpk 1 - Not Acceptable

Cpk
p = 1.33 - Just Acceptable
p
Cpk 1.67 - Good
Cpk 2 - Best in class process

597
Decisions making with Process capability
# Relationship
p Probable action /Decision
1) Job can be changed to less costly/ precise
1 Cpk
p 1.67 machine
machine.
2) Specified tolerance can be narrowed if it is
economically worthwhile.
3) IInspection
ti interval
i t l can be
b increased
i d&
product can be accepted on the basis of
control chart details.
1) Greater attention to the centering of the
2 Cpk = 1.33 process should be given.
2) Investigate the possibility of reducing
process variability at least marginally.
3) Set the machine at the most economic
level ( mean))
1) Scrap & rework are inevitable.
3 Cpk 1.0 2) Resort to minimum machine adjustment.
3) 100 percentt iinspection
ti mustt b
be resorted
t d
to. 598
4) Examine the possibility of widening the
 How to achieve process capability

Process capability can be improved by reducing variations

due to 5 M ‘ss
Man

Machine
Measurement variation
Material

Method

Measurement

599
P
Process capability
bilit targets
t t
LSL Target USL

¾Reduce the variation

¾Shift Process
P mean towards
t d target
t t
600
Workout ( within / overall variation)

¾Motorcycle Mileage (Km/l ) in 4 cities

CITY 1 CITY 2 CITY 3 CITY 4

601
Result ( within / overall variation)

Within
variation in
CITY 1

Overall
variation
among g the
CITIES

602
 PEMP EMM502

Six sigma

603
 PEMP EMM502

6 SIGMA METHODOLOGY

SIX SIGMA RELIES ON “DMAIC”

METHODOLOGY
™DEFINE
™MEASURE
™ANALYSE
™IMPROVE
™CONTROL

604
 Foll will
ill be co
covered
ered
• Introduction • Design For Six Sigma
• Definition • Failure Modes and
• Different Views of 6 Effects Analysis
Si
Sigma • Reference
R f off Six
Si
pp
• Approaches--- Sigma cases which
Choice? will
ill enable
bl tto
• Roles understand the
Ri
Rigorous approach h
• Tool-Kit of this Breakthrough
• DMAIC-Problem
DMAIC P bl St t
Strategy
solving Model
605
 PEMP EMM502

I t d ti
Introduction
• Six Sigma is a smarter way to manage a business or
p
dept.The final aim is to achieve near p
perfection ,which
generally will require a BREAKTHROUGH IDEA.
• Generally it targets three main areas
– Improving customer satisfaction
– Reducing g Cycle
y time
– Reducing defects
Looks Old Hat!!!
IT IS A FIRM NO!---------------Because

606
 PEMP EMM502

Contd
The vital thing is that GOALS are set very steep
and they require BREAKTHROUGHS in every area
of operation.
In statistical terms
terms,it
it means that your processes or
products will perform with almost no defects.
NEAR PERFECT PRODUCTS/SERVICES AND
SUPERB CUSTOMER SATISFACTION.—as near to
a simple definition as I could get
get.

607
 PEMP EMM502

Contd
• Three key characteristics separate Six Sigma
from Quality programs of the past
– Six Sigma is Customer focused—It is almost an
obsession
b i tto kkeep external
t l customer’s
t ’ needs
d iin plain
l i
sight,driving the improvement effort
– Six Sigma projects produce major returns on
investment
– Six Sigma changes how management operates—
They learn new approaches to thinking, planning,and
executing, to achieve results.

608
 PEMP EMM502

Contd
– This Overview CANNOT and WILL not bombard you
with lot of details or expertise BUT enough
information to allow you to draw your own conclusions
about what Six Sigmag mayy hold for yyou,, yyour jjob,,
your co.

609
 PEMP EMM502

Defining Si
Six Sigma
• We will look at Six Sigma from three angles--
• A Statistical measure of the performance of a
process or product
• A Goal that reaches near perfection wrto perf
improvement
• A System of mgt to achieve lasting business
leadership and World Class Performance—
What is this??

610
 PROCESS RATING

• LEVEL 5 – WORLD CLASS

• LEVEL 4 - BEST IN CLASS
• LEVEL 3 – COMPETETIVE
• LEVEL 2 – NON COMPETETIVE
• LEVEL 1 – UNHEALTHY

611
 PROCESS RATING

LEV- EFFICIENCY EFFECTIVENESS

EL (DOING THINGS (DOING CORRECT
CORRECTLY) THINGS)
5 DEFECT FREE, OUTPUT
WORLD LOW COST, QUICK EXCEEDS ALL
CLASS
RESPONSE CUST. REQMT

4 LOW DEFECT, OUTPUT

BEST IN MODERATE COST/ EXCEEDS MOST
CLASS
RESPONSE OF CUST. REQMT
612
 PROCESS RATING

3 SCOPE FOR IMPR. OUTPUT MEETS

COMPETE-
COMPETE- OF COST,, DEFECT,, CUST. REQMT
Q
TIVE
RESPONSE

2 INEFFICIENT BARELY MEETS

NON CUSTOMER
COMPETE-
TIVE RQMT

1 PROCESS IS OUTPUT DOES

CHAOTIC CHAOTIC: HIGH NOT MEET
COST/ REJECTIONS CUST.
CUST REQMT
REQMT.
613
 PEMP EMM502

PROCESS RATING

E
F 5 WORLDCLASS
F L E V E L
I 4 BEST IN CLASS
C
I 3 EFFECTIVE
E
N 2 EFFECTIVE
C
Y 1 CHAOTIC

E F F E C T I V E N E S S

614
 PEMP EMM502

BUSINESS EXCELLENCE MODELS

• NOTABLE AMONG THESE AWARDS ARE

™ MALCOLM BALDRIGE AWARD
™ DEMING AWARD
™ EUROPEAN FOUNDATION FOR QUALITY MANAGEMENT (EFQM)
™ RAJIV GANDHI QUALITY AWARD
™ JAMANLAL BAJAJ AWARD

• THESE ARE AWARDED ON THE BASIS OF ASSESSMENT OF:

™ CUSTOMER SATISFACTION
™ LEADERSHIP, STRATEGY & POLICIES
™ QUALITY RESULTS
™ INFORMATION ANALYSIS
™ HUMAN RESOURCE UTILIZATION
™ STRATEGIC QUALITY PLANNING
™ QUALITY ASSURANCE SYSTEM
™ IMPACT ON SOCIETY

615
 PEMP EMM502

Si Si
Six Sigma as a St
Statistical
ti ti l MMeasure
• Sigma is a measure of Deviation
• Six Sigma means that there can be only
3 4 defects in a Million Opportunities
3.4
• The deviation must be measured on the
key customer expectations---called CTQ.

616
 PEMP EMM502

What is Sigma
g

The term ‘Sigma’ taken from the Greek alphabet, is

used to designate the distribution or spread about the
mean (average) of any parameter of product, process
or procedure. In the context of business or
manufacturing
f t i process, Sigma
Si capability
bilit is
i a metric
ti
which indicates how the process is behaving. Higher
th Sigma
the Si value,
l b tt the
better th capability
bilit off the
th process
to produce defect free work and vice versa.

617
 PEMP EMM502

Understanding normal
distribution

618
 Contd
• SEE VIDEO
normal distbn.dat

619
 PEMP EMM502

Normal Distribution

In practice generally we come across data which is of

variable type and is measured on continuous scale.
scale If
there are no extraneous factors it follows a
systematic
syste at c patte
pattern known
o as “Normal
o a Distribution”.
st but o Itt
can be derived after plotting histogram as explained
in the next slide.

620
 PEMP EMM502

Histogram
g

60

50

40
Freequencyy

30

20

10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Thickness of output in mm
CTQ 621
 PEMP EMM502
Normal curve
Normal Curve is a smooth symmetrical bell shaped curve as shown below.

60

50

40
Freequencyy

30

20

10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Thickness of output in mm
CTQ 622
 PEMP EMM502

Most commonly used intervals

In normal distribution, the most common intervals are :

1. Process mean - SD and process mean + SD i.e 1 Sigma

2. Process mean - 2 SD and process mean + 2 SD i.e 2 Sigma

3. Process mean - 3 SD and process mean + 3 SD i.e 3 Sigma

623
 PEMP EMM502
% Population between Mean - SD & Mean + SD (1Sigma)
Mean = 10, SD = 2

Mean-SD =8 Mean+SD =12

% Population

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

- SD + SD

% population between Mean - SD and Mean + SD or 1 Sigma = 68.3,

This implies that 68.3% population lies between dimensions of 8 and 12
624
 % Population between Mean - 2 SD & Mean PEMP EMM502
+ 2 SD
((2Sigma)
g )
Mean = 10, SD = 2
Mean-2 SD=6
Mean+2 SD=14

% Population

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

-2 SD +2 SD

% population between Mean - 2 SD and Mean +2 SD or 2 Sigma = 95.5

This implies that 95.5% population lies between dimensions 6 &14 625
 % Population between Mean - 3 SD & MeanPEMP EMM502
+ 3 SD (3
g )
Sigma)
Mean = 10, SD = 2

Mean - 3SD =4 Mean + 3SD =16

% Population

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

- 3 SD + 3 SD

% popu
population
o be
between
wee Meane -3S SD and
d Mean
e +33 SDS oor 3 S
Sigma
g = 99.73
This implies that 99.73 % population lies between 4 & 16 626
 PEMP EMM502

Range
g of observations for nearly
y 100% population
p p

Range of observations for nearly 100% population (to

be p precise 99.73%)) depends
p upon,
p , mean of the
process and standard deviation of the process. If it
follows normal distribution the population lies
between -
Mean - 3 SD & Mean + 3 SD i.e ( 3Sigma )

627
What is a Sigma process

628
 PEMP EMM502

Meaning
g of a Sigma
g process
p

From a sigma process we come to know that at what

di t
distance, i terms
in t off the
th standard
t d d deviation,
d i ti th
the
specification limits are placed from the target value.

629
 PEMP EMM502

Move beyond
y 3 sigma
g

Until a few years back all statistical process controls

g
were designed on the basis of 3 sigma
g limits. It is only
y
in the recent years that this concept has been
challenged and the organizations have started looking
f quality
for lit levels
l l beyond
b d 3 Sigma.
Si

630
 PEMP EMM502
3 Sigma process

Mean=8
LSL SD = 2 USL

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

- 3 SD + 3 SD

Note : LSL is Lower specification limit and USL is Upper specification limit. 631
 PEMP EMM502
4 Sigma process

LSL Mean=88
M USL
SD = 1.33

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

- 4 SD + 4 SD

632
 PEMP EMM502
5 Sigma process

Mean=8
LSL SD = 1.07 USL

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

- 5 SD + 5 SD

633
 PEMP EMM502
6 Sigma process

Mean=88
M
LSL SD = 1 USL

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

- 6 SD + 6 SD

634
 PEMP EMM502
Precision

Lesser the standard deviation of the process, more precise or

consistent is the process
635
 PEMP EMM502

3 Sigma Vs 6 Sigma

The goal of Six Sigma program is to reduce the variation

in every process to such an extent that the spread of 12
sigmas i.e. 6 Sigmas on either side of the mean fits within
the process specifications. The figure on next slide shows
what this looks like.

636
 PEMP EMM502
3 Sigma Vs 6 Sigma
6 Sigma curve

LSL USL

3 Sigma curve

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

In a 3 sigma process the values are widely spread along the center line,
showing
h i the th higher
hi h variation
i ti off the
th process. Whereas
Wh in
i a 6 Sigma
Si
process, the values are closer to the center line showing 637
less variation in the process.
 PEMP EMM502

3 Sigma
g Vs 6 Sigma
g

The comparison
p on the p previous slide also shows a
process in which the process spread of Six Sigmas (ie. 3
Sigmas on either side just fits within the specifications). In
this case one must be extremely careful to ensure that
the process average never slips off the target, otherwise
the curve will shift and non-conforming items will
increase. With Six Sigma requirement the process mean
can shift by as much as 1.5 sigma before the likelihood of
non-conforming items is increased. Even if the process
mean does
d shift
hift off
ff center
t byb as much h as 1.5
1 5 sigma,
i only
l
3.4 non-conforming items per million parts should result.
638
 PEMP EMM502
Amount of process shift allowed

1 5 SD
1.5 1.5 SD

LSL USL

SD = 1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

639
 PEMP EMM502

Si Sigma
Six
• Six sigma is exciting.
• But it requires tenacity,mental toughness
and above all an excellent statistical
analytical ability and dedication to
perfection.
ƒ A successful six sigma project must
contribute substantiallyy to the bottom line.

640
 PEMP EMM502

What is DPU
The common metric :
D f t per unit
Defects it (DPU)
(DPU).

DPU is the best measure of the overall quality

of the process.
process

‰DPU is the independent variable.

‰Process yields are dependent upon DPU.
DPU

641
 PEMP EMM502

SIX SIGMA
EXAMPLE

™ We checked 500 Purchase Orders ((PO)) and PO had 10

defects then,
d.p.u = d/u = 10/500 = 0.02

ƒ In a P.O. we check for the following :

a) Supplier address/approval.
b) Quantity as per the indent
c) Specifications as per the indent.
indent
d) Delivery requirements
e) Commercial requirements.

™ Then there are 5 opportunities for the defects to occur. Then,

the total no.
no opportunities = mu
mu=5x500
5x500 = 2500.
2500
642
 PEMP EMM502

SIX SIGMA

EXAMPLE----What is DPMO

™ Defects per opportunity, d.p.o = d/(m u) = 10/2500 =

0.004
™ If expressed in terms of d.p.m.o. (defects per million
opportunities) it becomes.
d.p.m.o. = d.p.o x 106 = 4000 PPM-
Todays languageof Quality is PPM

ƒ From d.p.o.,
p , we g go to the normal distribution tables
and calculate ZLT and corrected to ZST by adjusting
for shift (1.5 σ) then.
Á ZLT = 2.65; and 643
Á ZST = 2.65 + 1.5 = 4.15. SEE TABLE
 PEMP EMM502

SIX SIGMA

™ No. of opportunities = No. of points checked.

™ If you don’t check some points then it becomes a

passive opportunity. We should take only active
opportunities into our calculation of d.p.o., and
Sigma
g level.

644
 PEMP EMM502

6 SIGMA
• OPPORTUNITY FOR DEFECT/ UNIT
• (ACTUAL) DEFECTS/ OPPORTUNITY (d.p.o.)
• DEFECT/ MILLION OPPORTUNITY (d.p.m.o.)
• WHEN D.P.M.O.
D P M O IS
™308,537, IT IS 2 SIGMA (30.8% DEFECTIVE)
™66,000 IT IS 3 SIGMA(6.6%)
™6200,, IT IS 4 SIGMA(0.
( 62%))
™233, IT IS 5 SIGMA(O.0233%)
™3 4 IT IS 6 SIGMA(0.00034%)
™3.4, SIGMA(0 00034%)

645
646
647
648
 PEMP EMM502

FICCI CE
Inaccurate and imprecise

649
 PEMP EMM502

FICCI CE
Precise but inaccurate

650
 PEMP EMM502

FICCI CE
Accurate and imprecise
p

651
 PEMP EMM502

FICCI CE
Accurate and precise

652
Without 1.5 sigma
g shift

653
 PEMP EMM502

With 1
1.5
5 sigma shift
FICCI CE

Levels of Sigma and defect rate

Q uality level % Q uality Defective PPM *

3 Sigma 99 73
99.73 66807

4 Sigma 99.9937 6210

5 Sigma 99.999943 233

6 Sigma 99.9999998 3.4

*Parts Per Million

654
 PEMP EMM502

FICCI CE

Cost of quality at various levels of Sigma

Sigma Defect rate(PPM) Cost of quality Competitive level

6 3.4 <10%
World
5 233 10-15% Class

4 6210 15-20%
Industry
3 66807 20-30%
20 30% Average

2 308537 30-40%
Non
>40% C
Competitive
titi
1 6,90000

655
 PEMP EMM502

6 SIGMA

• SCALE OF IMPROVEMENT REQUIRED

™2 TO 3 SIGMA, THERE IS A 5 FOLD

IMPROVEMENT
™3 TO 4 SIGMA, THERE IS A 10 FOLD
IMPROVEMENT
™4 TO 5 SIGMA, THERE IS A 30 FOLD
IMPROVEMENT
™5 TO 6 SIGMA, THERE IS A70 FOLD
IMPROVEMENT

656
 WHAT DOES SIGMA LEVELS MEAN?-simple
terms

Sigma Spelling Money Time

level

3 1.5 misspelled words Time $ 2.7 Million 3 ½ Months per

per page in a book Indebtedness per $1 century
Billion in Assets

4 1 misspelled word per $ 63000 Indebtedness 30 Minutes per

30 pages in a book per $1 Billion in century
assets

5 1 Misspelled Word in a $570 Indebtedness per 2½ days per century

set of Encyclopedia $1 Billion in Assets

6 1 Misspelled Word in $2 Indebtedness per $1 6 Seconds per

all of the Books in Billion in Assets Century
a Small Library

657
 PEMP EMM502

T i l Sigma
Typical Si Levels
L l

• Restaurant Billing – 4.0

• C
Company with
ith good
d practices
ti – 3.9
39
• Doctors’ Prescription
p – 3.8
• Postal Delivery – 4.5
• Ch
Cheque Cl
Clearance – 4.8
48
• Airline luggage
gg g Handling g – 4.2
• Bombay Dabbawallah – 6.8
• Ai li F
Airline Fatality
t lit – 6.5
65

658
 PEMP EMM502

Concl sion
Conclusion

• Aiming
g for Six Sigma
g means
Aiming for Perfection

659
 PEMP EMM502

Si Sigma as a Goal
Six
• If 250000 credit card bills are processed and operated at 4 sigma or
99.38% accuracy there wd be 1550 unhappy customers per
mth Accuracy delivery could be two CTQs
mth.Accuracy,delivery CTQs.
• Since a dissatisfied customer will tell ten people and a satisfied tells
five,, it is imperative
p to aim for 6sigma
g defect level. Otherwise yyou
will lose customers
• So a co embarking on 6 sigma is saying “We’d like to get as many
of our customer-related
customer related activities and products performing as close
to 6 sigma as we can”
• Knowing from the concept of COQ that 15-20% revenue is lost due
to Quality issues it is good to have a Goal to Work towards.

660
 PEMP EMM502

Ho to Choose Projects?
How
• Project Selection Strategies
–TT-O-P
O P Model
– O-P-T Model
– Balance Score Card Model

661
 PEMP EMM502

Contd
• T-O-P Model
– Level T---Top Mgt decides to launch Six Sigma
Project to confront serious business challenges
– (Termed as big Ys)
– Level O—Establish Process Owners who are able to
translate the business goals into Process goals(small
ys)
– Level P---Hand over improvement
p ideas to Project
j
leaders ,who will fine tune the assigned project
definitions,and proceed with DMAIC
– This is a good std model

662
 PEMP EMM502

Contd
• O-P-T Model
– Starts at Process owner levellevel,who
who sit together and
drill down from the original business issues to
discover the individual process problems
– So a series of small ys are identified and causal
rlation
l ti quantified
tifi d with
ith bi
bigYs
Y andd th
then h handed
d dddown tto
Project Leaders.
– Works
W k wellll where
h policy
li d deployment
l iis clear.as
l the
h
Process owners can easily pick-up the business
issues.
– It is no doubt faster
663
 PEMP EMM502

Contd
• Balance Score Card
– BSC approach for selection of projects(small
yys)) includes both financial and non-financial
measures across the four areas—
• Financial
• Customer
• I t
Internal
l processes
• Employee learning and growth

664
 PEMP EMM502

Contd
• Whichever is used(Mgt has to be
comfortable!1 there is a Goal
– Every output results from a process.If process
i not changed,quality
is h d li off output cannot
improve
– All processes have inherent Variability
– Data MUST be used to understand the
Variability and drive process improvement
decisions
– GOAL ORIENTED
665
 PEMP EMM502

Si Sigma as a S
Six System
stem of Mgt
• In Six Sigma programs Mgt plays a key role in
regularly monitoring results
• Mgt has to get involved to make a success of
the important programs selected under 6
sigma.So at regular meetings,mgrs can use 6
sigma to lead their business.
business
• As a mgt system ,it is not owned by senior and
mid
id mgtt lleaders
d b
butt h
has th
the ttotal
t l iinvolvement
l t off
front line employees.
• So six sigma involves combination of both strong
leadership p and g
grassroot energy gy and
involvement 666
 PEMP EMM502

Si Themes of Six
Six Si Sigma
• Genuine focus on the Customer
• Data-and Fact-Driven Mgt
• Processes are where the Action is
• Proactive Mgt
g
• Boundaryless Collaboration
• Drive for Perfection; Tolerate Failure

667
 PEMP EMM502

Three Approaches
pp to Six Sigma
g
Highway
• Business Transformation Approach—Full
scale
l Ch
Change IInitiative
iti ti
• Strategic Improvement—Limited
Improvement Limited to one or
two Critical Business Areas/Functions
• Problem Solving—Attacks only Nagging
problems which cd not be solved earlier
earlier.
• Which route to take??

668
 PEMP EMM502

S mmar
Summary
• What have we learnt till now?

669
 PEMP EMM502

How Six Sigma works

Six Sigma is a high performance data

pp
driven approach focused on analyzing
y g the
root causes of business problems and
g them. It ties the outputs
solving p of a
business directly to market place. 670
 PEMP EMM502

Clear focus on the bottom line

Six Sigma places a clear focus on getting the

bottom line results along with the time frame.
No Six Sigma project is approved until the
bottom line or the success factors are clearly
spelt out. Each project must be completed
within a given time frame which is usually 3-6 671
months.
 PEMP EMM502

Objectives of Six Sigma

At the strategic level, the goal of Six Sigma is to

align an organization to its marketplace and
deliver real improvements (in terms of
rupees/dollars) to the bottom line.
line
At the operational
p level,, the Six Sigma
g goal is to
g
move the business product or service attributes 672
within the zone of customer specifications and to
 PEMP EMM502

Roles
• New Roles for Managers and Employees
• Once the Ramp is Chosen---IT IS UP TO A COLLECTION OF
Business Leaders,Team Leaders,and Facilitators
• Black Belt—Most Critical role.Full time person dedicated to tackling
change opportunities
opportunities.He
He has to lead
lead, inspire
inspire,
manage,delegate,coach the team.He has to have many skills –
problem solving ability,collect and analyse data, leadership and
coaching experience
experience,good
good admin sense
sense.
• Master Black Belt—Coach and Mentor to Black Belts.
• He is generally a real expert in six sigma analytical tools.
• He also plays more of an orgn change agent role.And investigate
customer reqmts and developing measures for key processes
• Monitors milestones

673
 PEMP EMM502

Contd Roles
Contd--Roles
• Green Belt---Part time six sigma work.Their role is to bring the new
concepts and tools of six sigma to the day-to-day activities of
business
• Champion and/or Sponsor—Senior person accountable.
• Normally a senior mgt person –Must ensure that projects stay
aligned to business results,Provision of resources,Negotiate
conflicts linkages etc
conflicts,linkages etc,Keep
Keep other top mgt persons aware of progress
progress.
• Implementation Leader---Orchestrates all 6 Sigma Efforts.
• BB,MBB,are certified.—Some
certified. Some questions—Who
questions Who will be my boss
during assignment,assessment,after 6 sigma,Will orgn look at my 6
sigma work like my regular job.
• Each orgn will have to find its own solution.

674
 PEMP EMM502

Si Sigma tool kit

Six
• Tools to Generate Ideas —Brainstorming, affinity
g
diagram
Tree diagram, High-level process map, Flowchart,
Cause-and-Effect diagram,
ƒ Tools for data gathering ---Sampling, Voice of
customer, Checksheets and Spreadsheets, MSA,
ƒ Tools for Process and Data analysis ---Process-flow
analysis, VA and NVA analysis,Charts and graphs like
P t Hi t
Pareto,Histogram, R
Run, S
Scatter
tt ,Control
C t l
ƒ Tools for statistical analysis ---Tests for statistical
significance chi sq are tt,and
significance—chi-square, and ANOVA
ANOVA,Correlation
Correlation and
regression,DOE
ƒ Tools for implementation and process mgt ---ProjectProject
mgt, FMEA,Stakeholder analysis,Force field 675
 PEMP EMM502

DMAIC Problem sol

solving
ing model
• Identifying projects—meaningful,manageable—
Leadership group
• Forming Team---
• Developing the Charter---written document to
the problem/project
problem/project—Champion/Team
Champion/Team
• Training the team
• Doing DMAIC and implementing the solutions
• Handing off the solution

676
 PEMP EMM502

DMAIC Model
• Define the problem---What are we working on?Why?Who is
customer?What is his reqmt?How is it done now?What are benefits
of making improvement?Above are fundamental Questions which
help originality in thinking
• Measure Gather data to validate and quantify the problem
Measure---Gather problem.Begin
Begin
collecting facts and numbers that offer clues about cause of the
problem.Always
p y take a p process view.y=f(x)is
y ( ) most imp p equation.
q
• Analyse---Step to find Root Cause—5 M’s and 1 P—
Methods,Machines,Materials,Measures,Mother nature,People
• Improve—Final planning and implement and achieve results
• Control—Avoiding snap back into old habits.—Monitoring,creating
response for
f new issues,sell
i ll tto people,hand
l h d off
ff tto routine
ti workers
k

677
 PEMP EMM502

Fundamental steps -- More details

There are 6 fundamental steps involved in applying
the breakthrough strategy for achieving Six Sigma.
Sigma
These 6 steps are :-
• Define
• Measure
• Analyze
• Improve
• Control
• Standardize

678
 The Six Sigma roadmap- Breakthrough strategy

Stage Phase Objective

Identify key business

GY

Identification Define
TRATEG

issues

Understand
U d t d currentt
UGH ST

Measure
Characterization performance levels
Analyze
THROU

Improve Achieve breakthrough

Optimization
p Control improvement
REAKT
BR

Integrate Six Sigma in

Institutionalization Standardize
day to day functioning.

679
 PEMP EMM502

Define phase

This phase defines the project. It identifies critical

customer requirements
q and links them to business
needs. It also defines a project charter and the
business processes to be undertaken for Six Sigma.

”.

680
 PEMP EMM502

Measurement phase

This phase involves selecting product characteristic,

mapping respective process
process, making necessary
measurements and recording the results of the process.
This is essentially a data collection phase.
phase

”.

681
 PEMP EMM502

Analysis phase
IIn this
thi phase
h an action
ti plan
l is
i created
t d to
t close
l th “gap”
the “ ”
between how things currently work and how the
organi ation would
organization o ld like them to work
ork in order to meet the
goals for a particular product or service. This phase also
requires organizations to estimate their short term and
long term process capabilities.

682
 PEMP EMM502

Improvement phase

This phase involves improving processes/product

performance characteristics for achieving desired results
and goals.
goals This phase involves application of scientific
tools and techniques for making tangible improvements in
profitability and customer satisfaction.
satisfaction

683
 PEMP EMM502

C t l phase
Control h
This phase requires the process conditions to be properly
documented and monitored through statistical process
control methods. After a “settling in” period, the process
capability should be reassessed.
reassessed Depending upon the
results of such a follow-up analysis, it may be sometimes
necessary to revisit one or more of the preceding phases.
phases

”.

684
 PEMP EMM502

Standardization phase

This phase requires institutionalizing Six Sigma into

day to day working of the organization. In this phase the
Six Sigma gains derived by certain specific projects are
applied to the other projects as well for optimum
business results.
results

685
 PEMP EMM502

Six Sigma

Quotable Quotes

686
 PEMP EMM502

Q otes
Quotes
• We are what we repeatedly do.
E
Excellence,
ll th
then iis nott an actt b
butt a h
habit--
bit
Aristotle B.C
• It must be considered that there is nothing
more difficult
diffi lt tto carry out,no
t more d doubtful
btf l
to success,no more dangerous to handle
than to initiate a new order of thing—Mach
1513

687
 PEMP EMM502

Contd
• The greatest challenge to any thinker is
stating
t ti the
th problem
bl iin a way th
thatt will
ill allow
ll
a solution—Bertrand Russel
• You can improve things ONLY when you
can measure---Kelvin
K l i
• Many times Learning is suddenly
understanding an old thing in a new way

688
 PEMP EMM502

Contd
• Product and service quality requires
managerial,technological
i l t h l i l and d statistical
t ti ti l
p throughout
concepts g all major
j functions in
an organisation---Juran
• He
H th
thatt will
ill nott apply
l new remedies
di mustt
expect new evils ,for time is the greatest
innovator

689
 PEMP EMM502

Contd
• Quality is not something you install like a
new carpett or a sett off bookshelves.you
b k h l
p
implant it.Quality
y is something g yyou work at
it----Deming
• The
Th bitterness
bitt off low
l quality
lit iis nott
forgotten ,nor can it be sweetened with low
price

690
 PEMP EMM502

Tools & Techniques

691
 PEMP EMM502

Common tools for Si

Six Sigma
• DMAIC
• Tools for Definition
– Input-Process-Output diagram(ipo,SIPOC)
diagram(ipo SIPOC)
– Flow diagram
– Critical to quality tree
– Project charter (object definition and
deliverables)

692
 PEMP EMM502

Contd
• Tools for Measurement
– C ec ssheets
Check eets
– Histograms
– Run charts
– Scatter diagrams
– CED
– Pareto charts
– Control charts
– Flow process charts
– Process cap measurement
– MSA—R&R,Calibration

693
 PEMP EMM502

Contd
• Tools for Analysis
– Anova
– Hypothesis testing
– Process mapping
– Regression analysis
– Resource utilisation and Customer service analysis
– SWOT
– Pestle analysis
– The five why’s
why s
– Interrelationship diagrams
– OEE
– TRIZ—Innovative problem solving(RUSSIAN WORD)

694
 PEMP EMM502

Contd
• Tools for improvement
– Affinity diagram
– Nominal group technique
– SMED
– 5S
– Mi t k proofing
Mistake fi
– VSM
– B i t
Brainstorming
i
– Mind Mapping
– Force field analysis Diagram

695
 PEMP EMM502

Contd
• Tools for control
– Gantt Chart
– Radar chart
– PDCA Cycle
– Milestone tracker diagram
– Earned value Management

696
 PEMP EMM502

Contd
• Qualitative Techniques
– Benchmarking
– Balanced score card
– EFQM,Deming awards
– SOP
– Kanban
– ABC
– QMS
– L
Lean

697
 PEMP EMM502

Contd
• Quantitative Techniques
• FMEA
• SPC
• QFD
• DOE
• DFSS
• Monte Carlo Technique
• DMAIC

698
 PEMP EMM502

The breakthrough strategy

Each phase is designed to ensure that :-

• Companies apply the breakthrough strategy
in a systematic way.
• Six Sigma projects are systematically
designed and executed and
• The results of these projects are incorporated
into running the day-today business.

699
 PEMP EMM502

St t
Strategy att various
i levels
l l

Almost every organization can be divided into 3

basic levels :-
1. Business level
2 Operations level
2.
3. Process level.
It is extremely important that Six Sigma is
understood and integrated at every level.

700
 PEMP EMM502

Strategies at various levels

• Executives at the business level can use Six Sigma for

improving market share, increasing profitability and
organizations long term viability.
viability
• Managers at operations level can use Six Sigma to
i
improve yield
i ld and
d reduce
d th labor
the l b and
d material
t i l cost.
t
• At the p
process level engineers
g can use Six Sigmag to
reduce defects and variation and improve process
capability leading to better customer satisfaction.

701
 PEMP EMM502
Contributions of Robust Design (Six Sigma) to
Business Excellence : A Spider Chart
Chronic
Problem Solving
Employee Profit /R.O.I
Morale Improvement
90%
Supplier
Improvement Customer
50% 60% Loyalty
Total 60% 50% Overall
Productive 70% Quality
Maintenance 70% 30% p
Improvement
40% 50%
Design 30% Reliability
30%
Improvement Improvement
Space
Reduction Cost reduction
Cycle – Time
Reduction

702
 PEMP EMM502

What is DFSS?

703
 PEMP EMM502

Design for Si
Six Sigma
• What is DFSS?
– DFSSSS stands
sta ds for
o Design
es g Foro SSix S
Sigma
g a-a an app
approach
oac
to designing or re-designing a new product and/or
service for a commercial market, with a measurably
high process-sigma
process sigma for performance from day
one. The intention of DFSS is to bring such new
products and/or services to market with a process
performance of around 4.5 sigma or better, for every
customer requirement.
This implies an ability to understand the customer
needs and to design and implement the new offering
with a reliability of delivery before launch rather than
ft !
after!
– DFSS concentrates on prevention actiities that might
inhibit 6 sigma perf of product/service--Examples
• 704
 PEMP EMM502

Methodology
Methodolog
– DFSS also has a methodology by which new
products and services can be designed and
implemented.
– DMAIC is now an industry standard
methodology gy for Six Sigma,
g , however DFSS
does not yet have such a universal offering.
– DMADV (Define,
(Define Measure,
Measure Analyse
Analyse, Design,
Design
Verify) is one approach, however there are
severall iin use.

705
 PEMP EMM502

DFSS Methodologies
M th d l i

• IDOV (Identify, Design, Optimize, Verify)

• DMADV (Define,
(Define Measure,
Measure Analyze,
Analyze Design
Design, Verify)
• DMADOV (Define, Measure, Analyze, Design,
O ti i
Optimize, Verify)
V if )
• DMCDOV (Define, Measure, Characterize, Design,
O
Optimize, Verify)
f )
• DCOV (Define, Characterize, Optimize, Verify)

706
 PEMP EMM502

DFSS Methodologies
M th d l i

• DCCDI (Define, Customer, Concept, Design,

Implement)
• DMEDI (Define, Measure, Explore, Develop,
I l
Implement)
t)
• DMADIC ((Define, Measure, Analyze,
y Design,
g
Implement, Control)
• RCI (Define and Develop Requirements,
Requirements Concepts
Concepts,
Improvements)

707
 PEMP EMM502

DFSS vs
s DMAIC
• What are the differences between Six Sigma
and DFSS?
– Six Sigma is a process improvement philosophy and methodology,
whereas DFSS is centred on designing new products and services. The
main differences are that Six Sigma focuses on one or two CTQ (Critical
T Quality)
To Q li ) metrics,
i looks
l k at processes, and d aims
i to iimprove the
h CTQ
performance by about +1 process-sigma. In contrast, DFSS focuses on
every single CTQ that matters to every customer, looks at products and
services as well as the processes by which they are delivered
delivered, and aims
to bring forth a new product/service with a performance of about 4.5
sigma or better.

– Other differences are that DFSS projects are often much larger and take
longer, and are often based on a long term business need for new
products, rather than a short term need to fix a customer p
p problem.
•

708
 PEMP EMM502

• Where can I use DFSS in my company?

– DFSS can be used anywhere a new product or service is to be
introduced or re
re-introduced.
introduced For many manufacturing
organisations the design and development of new products is
very much a part of everyday company life, and a soundly
adopted DFSS methodology can make a considerable
improvement to the process of 'design and implement'.

– L
Large DFSS projectsj t are b
bestt suited
it d ffor th
the iintroduction
t d ti off new
products/services with major design and large impact, and where
customer approval and high levels of performance and delivery
are required.
required DFSS is about reducing the risk of failure - failure
to promote and develop the correct products/services, failure to
identify all the customers and customer requirements, failure to
design and implement appropriately and without error or
omission.
•
709
 PEMP EMM502

More Clarifications

• DFSS is an enhancement of your present product

development process ,not a replacement. In fact a
documented,well understood and useful new product
dev process is vital for success of DFSS program.
• DFSS provides tools and teamwork to get the job done
efficiently/effectively.By
ff / ff rigorously applying the tools off
DFSS,we can be assured of predictable product
quality/acceptance

710
 PEMP EMM502

Is DFSS needed in your

y
Organisation
• Answer following Questions
– How does your organisation develop Products?
– What is the ratio of product success to product failure?
Generally 60-70% of Products launched are a success.
R
Reasons ffor ffailure
il are;
Inadequate market analysis----24%
Product probems/defects--------16%
Lack of effective marketing effort-14%
Higher
g costs than anticipated----10%
p
Competetors reaction--------------9%
Poor timing of introduction--------8%
Technical or production problems
DFSS can help overcome manyof the above problems

711
 PEMP EMM502

Methodolog of DFSS
Methodology
• DFSS uses a disciplined set of tools to bring
high quality to launches.
launches
– Gap analysis—factors negatively affecting new
product performance
– VOC capture/ driven decisions
• Plan-enable
Plan enable team to succeed by mapping vital step
• Identify-hear VOC to select best product concept
• Design-build a thorough data base about product and
process
• Optimise-achieve a balance of Q,C and time to mkt
• Validate-demonstrate
Validate demonstrate with data that VOC is heard and that
customer expectations are satisfied

712
 PEMP EMM502

DMADV Process
• Define—Goals of design activity are established
• Measure---Identifying
M Id tif i CTQ’
CTQ’s
• Analyse---Evaluating
y gpproduct concepts
p to satisyy
customer expectations
• Design---Optimises
Design Optimises the configuration of features
and process
• Verify—Ensures that new product performs as
p
expected at 6 Sigma
g level

713
 PEMP EMM502

DMAIC vss DFSS

• Basic differences are
– DMAIC is for existing products and DFSS for NEW
– DMAIC is based on manufacturing/transactional
processes;DFSS
p ; is focussed on Marketing,R&D,and
g, ,
Design
– Monetaryy benefits are easier and faster to Quantify
y
from a DMAIC program.It may take even upto 12
mths after launch to to properly account for impact of
DFSS.
DFSS
– DFSS needs greater cultural change wrto roles.The
CFT has to be involved
in ol ed in all aspects of design
process,from market to launch.
714
 PEMP EMM502

Tools in DFSS
• Phase wise Project reviews
• Benchmarking Internal Competitive Functional
Benchmarking-Internal,Competitive,Functional
• MSA-Validity,Precision,Accuracy
• VOC St t d and
VOC-Stated d unstated
t t d needs
d off customer
t
collected and analysed using Surveys,Affinity
diagrams,QFD,Kano model,etc
ƒ Pugh concept selection technique for evaluating
design alternatives.
ƒ Design
g for X—DFM,DFA,DFT
, , etc

715
 PEMP EMM502

Contd
• FMEA---DFMEA,PFMEA
• Poka Yoke
Poka-Yoke
• Process capability and performance studies
• Multi-Vari analysis
• DOE
• Monte Carlo Simulation
• Robust Design(Taguchi Methods)
• Tolerance Design
• Control Plan

716
 PEMP EMM502

Ad antages of DFSS
Advantages
• DFSS and Customer—All CTX’s are clearly looked into
by a CFT via VOC methodology
• DFSS and Quality—Quality from Customers point as
well as organisation
organisation’s
s point are optimised.
optimised
• DFSS and Time—Reduces time to market ,and also
gives products-
products higher value at lower costs.
costs
• DFSS and bottomline---Long term cost reductions are
seen in dev and validation,Manufacturing/service
validation Manufacturing/service
processes,Service and support

PEMP EMM502 717

 PEMP EMM502

Le erage on Cost
Leverage
• How DFSS in planning stage can save in operational stage
5 each
Actual Cost
cost overhead influence
30 20

15 labor

material
70%
50
design

Design represents the smallest cost element in products ,it leverages

the largest cost influence.WHY?HOW?
718
 PEMP EMM502

More details
• Any incremental improvement in the design has a large
direct impact on cost.For ex,a 30% saving thru a design
simplification would translate into over 21% cost savings
overall,while
, the same 30% % applied
pp to labor or overhead
wd result in just 1.5% savings overall
• DFSS wd simplify or eliminate a process!
• An improvement in materials or labor is unlikely oto
affect other areas
areas.InIn contrast
contrast,a
a simplification of design
will often result in a direct reduction in material and labor
cost and an indirect redn in the cost of overhead
overhead.

719
 PEMP EMM502

B
Benefits
fit off DFSS

• Structured development projects

• Add value and improve customer satisfaction
• Anticipate and avoid problems
• Minimize design changes
• Reduce development cycle times
• Reduce life cycle costs
• Reduce manufacturing cycle times & time to market
• Improve product quality
quality, reliability and durability
• Reduce costs of after-sales service & support

720
 PEMP EMM502

Competitive
p Advantages
g of
DFSS
• Tangible
• Provides a stru for
f managing dev projects
• Add value and improve customer satisfaction
• Anticipate problems
• Minimise design changes
• Reduce developmentcycle times
• Reduce life cyclecost
• Reduce service cost
• Improve product quality,reliability,durability.

721
 PEMP EMM502

Contd
• Intangible
– New ways of thinking and a culture of
accountabilityy to customers.
– It is a methodology ,not a strategy.
– Very
V powerful
f l tools
t l can bbe used d iin th
the area off
prduct dev which WILL give rise to
better,faster product dev

722
 PEMP EMM502

FMEA

723
 PEMP EMM502

Failure Mode and Effects Analysis (FMEA)

FMEA is a structured analysis for identifying ways &

methods in which the product or processes can fail and
then plan to prevent those failures. FMEA is a proactive
tool for reducing defects and non-conformities.
non-conformities

724
 PEMP EMM502

Failure Mode and Effects Analysis

y ((FMEA))

FMEA is a structured approach in :-

• Identifying ways in which a process can fail to meet
critical customer requirements.
• Estimating the risk of causes with regard to these
failures.
• Evaluating control plan for preventing these failures.
• Prioritizing the actions for improving the process.

FMEA is an extremely
y important
p tool for each p
phase
of Six Sigma strategy viz. Measure, Analyze,
Improve, Control.
725
 PEMP EMM502

Advantages of FMEA

• For improving the reliability and safety of the

products.
• For improving customer satisfaction.
• Tracking actions to reduce non-conformities.
non-conformities
• New product development.

726
 PEMP EMM502

Definition of terms

Failure Mode : It is a manner in which a part or a

process can fail to meet specifications. It is usually
associated with defect or non-conformities.

Examples
p : Missingg p
part,, Oversized,, Undersized,,
Incorrect price, Offspec parts.

727
 PEMP EMM502

Definition of terms

Cause : Causes are sources of variation which are

associated with key process inputs. Cause can be
best defined as a deficiency which results in a failure
mode.

Examples : Instructions not followed, Lack of

p , Incorrect documentation,, Poor handling
experience, g
etc.

728
 PEMP EMM502

Definition of terms

Effect : Effect is the impact on the customer (both

internal & external) if the failure mode is not
prevented or corrected.
Examples : Customer dissatisfaction, Frequent
product breakdowns, Customer downtime.

729
 PEMP EMM502

Relationship
p of cause, failure mode & effect

Failure
Cause Effect
Mode

730
 FMEA through Cause & Effect Diagram
Causes Causes Causes

Prevent
or Detect

Failure
Mode

Effect

Causes Causes Causes 731

 PEMP EMM502

Steps in FMEA process

1. Develop pap process map p and identifyy p

process steps.
p
2. List key process outputs for satisfying internal and
external customer requirements.
3. List key process inputs for each process steps.
4. List ways the process inputs can vary (causes) and
identify associated failure modes and effects.
effects
5. Assign severity occurrence and detection rating for each cause
.

732
 PEMP EMM502

Steps in FMEA process

6. Calculate risk priority number ( RPN) for each

potential
t ti l ffailure
il moded
7. Determine recommended actions to reduce
RPN’s.
8. Establish time frame for corrective actions.
9. Take corrective actions.
10 Put
10. P t allll controls
t l ini place.
l

733
 PEMP EMM502

Ranking terms used in FMEA calculations

Scale:1(Best) to 10 ( Worst)

• Severity (SEV) : Severity indicates how severe is the impact of the

effect
ff t on the
th customer.
t
• Occurrence (OCC) : This indicates the likelihood of the cause of
the failure mode to occur.
occur
• Detection (DET) : This indicates the likelihood of the current
system to detect the cause or failure mode if it occurs.
occurs
• Risk priority number : This number is used to place priority to
items for better quality planning.
planning
RPN = SEV X OCC X DET

See next slides for specimen best to worst ratings on a 10 point scale. 734
 PEMP EMM502

Best to Worst ratings

g for FMEA calculations
Rating Degree of Severity Likelihood of Occurrence Ability to detect

1 Customer will not at all observe Very remote possibility Sure that the potential failure
the adverse effect will be detected & prevented
before reaching the next
customer

2 Customer will experience Low failure with supporting Almost sure that the potential
slight
li ht di
discomfort
f t d
documents t f il
failure will
ill b
be d
detected
t t db before
f
reachig the next customer

3 Customer will experience Low failure without supporting Less chances that the
annoyance because of slight documents potential failure will reach the
degradation of performance next customer undetected

4 Customer dissatisfied due to Occasional failures Some controls may detect

reduced performance the potential from reaching the
nextt customer
t

5 Customer is uncomfortable Moderate failure rate with Moderate chances that the
supporting documents potential failure will reach the
next customer
735
 PEMP EMM502

Best to Worst ratings for FMEA calculations

Rating Degree of Severity Likelihood of Occurrence Ability to detect

6 Warranty repairs Modearate failure rate without Controls are not likely to detect
supporting documents or prevent the potential failure
from reachingg the next
customer

7 High degree of customer High failure rate with supporting Less chances that the potential
dissatisfaction documents failure will be detected or
prevented before reaching
the next customer

8 Vey high degree of customer High failure rate with supporting Very less chances that the
dissatisfaction documents potential failure will be detected
or prevented before reaching
the next customer

9 g
Negative impact
p on the Failure is almost certain Existingg controls will not detect
customer the potential failure

10 Negative impact on the Assured failure Existing controls will not detect
customer, people & society the potential failure 736
 PEMP EMM502
FMEA Form: ( Column 1 to 9 )

Rank severity Rank how well

Rank occurrence List how the cause
on 1 to 10 cause/failure
on a 1 to 10 is presently
scale can be detected
scale being controlled
on 1 to 10 scale

1 2 3 4 5 6 7 8 9
Process Potential failure mode Potential failure effect SEV Potential causes OCC Current Controls DET RPN
Part No.

1
2
3
4
5

List failure List effects List causes

RPN=
modes for each of each for each failure
SEV*OCC*DET
step failure mode mode
737
 PEMP EMM502
FMEA Form contd: ( column 10 to 15 )
Designates people RPN is recalculated
responsible for on completion of
corrective action corrective action

10 11 12 13 14 15
Actions Recommended Responsibility
p y SEV OCC DET RPN

List actions
recommended
on RPN pareto
738
739
740
PEMP EMM502

741
 PEMP EMM502

END
• Example of :
• How to assess present LEVEL of your
organisation to ENABLE choosing of Six
sigma projects(ref ppt)
• Example of six sigma (ref pdf file)
• Xerox Case study

742
 PEMP EMM502

S mmar
Summary
• Following have been covered
– Basics of Variation and various methods of
Process control have been introduced
– Six sigma concepts have been discussed
– Case
C studies
t di h have bbeen di
discussed
d

743
 PEMP EMM502

Session 9

ISO
BPR
Benchmarking
Case Studies
744
 PEMP EMM502

Session Objecti
Objectives
es
• At the end of the session the student would have
understood
Why Standards Matter?
• The world of ISO standards and Introduction to
ISO 9000 and 14000 series of standards and their
evolution
• The
h concepts off Benchmarking
h ki
• The pprinciples
p of BPR

745
 PEMP EMM502

Session Topics
• Elements of iso and their evo;ution
• Types of Benchmarking and procedures
• BPR

746
 PEMP EMM502

Why Standards Matter?

What if Standards did not exist?
Standards
St d d makek an enormous contribution
t ib ti tot mostt
aspects of our lives - although very often, that
contribution is invisible. It is when there is an absence
p
of standards that their importance is brought
g home. For
example, as purchasers or users of products, we soon
notice when they turn out to be of poor quality,
quality do not
fit, are incompatible with equipment we already have,
are unreliable or dangerous.
dangerous

747
 PEMP EMM502

Wh Standards Matter? Contd

Why
When products meet our expectations, we tend to take
thi for
this f granted.
t d We
W are usually
ll unaware off the
th rolel
played by standards in raising levels of quality, safety,
reliability, efficiency and interchangeability - as well as
in p
providing g such benefits at an economical cost.

748
 PEMP EMM502

Brief Histor
History of ISO
• ISO is the International Organization for
Standardization It is located in Switzerland and
Standardization.
was established in 1947 to develop common
i t
international
ti l standards
t d d iin many areas.
Its members come from over 120
national standards bodies
• ISO
ISO'ss purpose is to facilitate international trade
by providing a single set of standards that people
everywhere would recognize and respect.
respect

749
 PEMP EMM502

Big
g Wide World of ISO
Standards
• ISO (International Organization for Standardization) is
the world
world'ss largest developer of standards.
standards
• ISO
ISO'ss principal activity is the development of technical
standards, ISO standards also have important economic
and social repercussions.
repercussions
• ISO standards make a ppositive difference,, not jjust to
engineers and manufacturers for whom they solve basic
problems in production and distribution,
distribution but to society as
a whole.
750
 PEMP EMM502

Big
g Wide World of ISO
Standards
How ISO Standards benefit the Society:
• F
For Businesses,
B i th widespread
the id d adoption
d ti off International
I t ti l
Standards means that suppliers can base the development
of their products and services on specifications that have
p
wide acceptance in their sectors.
• For customers, the worldwide compatibility of
technology which is achieved when products and
services are based on International Standards brings them
an increasingly wide choice of offers, and they also
benefit from the effects of competition among suppliers.
751
 PEMP EMM502

Big
g Wide World of ISO
Standards
• For everyone, International Standards can
contribute to the quality of life in general by
ensuring that the transport, machinery and tools
we use are safe.f
• For the p planet we inhabit,, International
Standards on air, water and soil quality, and on
emissions of gases and radiation,
radiation can contribute
to efforts to preserve the environment.

752
 PEMP EMM502

O
Over View
Vi off ISO 9000
ISO 9000 is sweeping the world. It is rapidly
becoming the most important quality standard.
standard
Thousands of companies in over 100 countries
h
have already
l d adopted
d t d it,it and
d many more are in i
the process of doing so. Why? Because it
controls quality. It saves money.
Customers expect
p it. And competitors
p use it.

753
 PEMP EMM502

O er Vie
Over View of ISO 9000
ISO
SO 9000 applies
li to all
ll types off organizations.
i i It doesn't
d '
matter what size they are or what they do. It can help
both product and service oriented organizations achieve
standards of q quality
y that are recognized g and
respected throughout the world.
The ISO 9000 Standards apply to all in all kinds of areas.
Some of these areas include manufacturing, g, pprocessing,
g,
servicing, printing, forestry, electronics, steel, computing,
legal services,
services financial services,
services accounting,
accounting trucking and
so on.
754
 PEMP EMM502

I t d ti to
Introduction t ISO 9000
The ISO 9000 family is primarily concerned with
quality management
"quality management". This means what the
organization does to fulfill:
• The customer's quality requirements, and
• Applicable
pp cab e regulatory
egu ato y requirements,
equ e e ts, while
eaaiming
g to
• Enhance customer satisfaction, and
• Achieve continual improvement of its performance in
pursuit of these objectives.

755
 PEMP EMM502

Introd ction to ISO 9000

Introduction
The term ISO 9000 refers to a set of quality management standards.
ISO 9000 currently includes three quality standards:
ISO 9000:2000, ISO 9001:2000, ISO 9004:2000 and ISO
9000: 005.
9000:2005.
• ISO 9000:2000: Covers the basics of what quality management
systems
t are andd also
l contains
t i the
th core language
l off the
th ISO 9000
series of standards.
•ISO 9002,9003 have been merged into 9001.CERTIFICATION IS
always against ISO 9001
•Latest version is ISO 9001-2008

756
 PEMP EMM502

Introd ction to ISO 9000

Introduction
• ISO 9001 Quality management systems-
Requirements: Intended for use in any
organization which designs, develops,
manufactures,
f t iinstalls
t ll and/or
d/ services
i any
product or provides any form of service.
• ISO 9004 & 9005 Quality management systems -
Guidelines for performance improvements:
Covers continual improvement.

757
 PEMP EMM502

Hi t
History & evolution
l ti
• ISO 9000
• ISO 9000 is a family of ISO (the International
Organization for Standardization) standards
f
for quality
lit mgtt systems.
t
• ISO 9000 was developed p from the British
Standards Institution's BS 5750. The ISO
9000 standards are maintained by ISO (TC)
and administered by accreditation and
certification bodies.
bodies

758
 PEMP EMM502

Hi t
History & evolution
l ti
• Although the standards originated in
manufacturing, they are now employed across a
wide
id range off other
th types
t off organizations.
i ti In
I fact,
f t
according to ISO in 2004, "service sectors now
account by far for the highest number of ISO
9001:2000 certificates - about 31% of the total" -
source:
sou ce ISO
SO su
surveyey
• ISO 9000 is quite similar to ISO 14000. Both pertain
to how a p
product is produced,
p , rather than how it is
designed. For example, ISO 216 refers to sizes of
paper.

759
 PEMP EMM502

History & Evolution

• These sizes are very clearly laid outout, and shall not
deviate while ISO 9000 and ISO 14000are more
general,, referring
g g to a p
process,, rather than anyy single
g
product.
• ISO 9000 is more in reference to making g sure the
product -- any product -- has been produced in the most
efficient and effective manner possible. ISO 9000
quality
lit system
t does
d nott attest
tt t the
th compliance
li off the
th
produced products with a code or a standard.
• ISO 9000 does not guarantee the quality of end
products and services; rather, it certifies that consistent
business processes are being applied
applied.
• ISO 14000 exists to ensure the product ( any product )
has the lowest possible environmental impact
• CI Clause—demonstratable in new revised stds 760

assures improvement of processes & hence reliability of

 PEMP EMM502

History & Evolution

• History
• Errors committed in manufacturing have been an
p
impetus for creatinggq
quality
y standards. For
example, in World War I, a high percentage of
shells failed to explode.
p .
• During World War II, the United Kingdom had a
serious problem with accidental detonations in
weapons factories. In an attempt to solve the
problem the Ministry of Defence placed inspectors
problem,
in the factories to oversee the production process.
To supply to the Government,
Government a company had to
write up the procedure for making their product,
have the procedure approved by the Ministry and
ensure that their workers followed the procedure.761.
 PEMP EMM502

History & Evolution

• In 1959, the United States developed Quality
Program Requirements,
Requirements a quality standard for
military procurement, detailing what suppliers had
t do
to d tot achieve
hi conformance.
f By
B 1962,
1962 NASAh
NASAhad d
similarly developed Quality System Requirements
for its suppliers and applied these techniques on
the pproject
j "travel to the moon" with g
great success. .
• .

762
 PEMP EMM502

Histor & Evolution

History E ol tion
• The idea of quality assurance spread beyond the military
and nuclear sectors. In 1966, the United
KingdomGovernment led the first national campaign for
quality and reliability with the slogan "Quality is
everybody's business." In 1969, the UK and Canada
developed quality assurance standards for suppliers.
• By this time, suppliers were being assessed by any
number of their customers. In 1969, a UK committee
report on the subject recommended that suppliers'
suppliers
methods should be assessed against a generic standard
of quality assurance, to avoid duplication of effort.
• In 1971, the British Standards Institution(BSI) published
the first UK standard for q quality
y assurance,, BS 9000,,
which was developed for the electronics industry. In 1974,763
BSI published BS 5179, Guidelines for Quality Assurance.
 PEMP EMM502

Hi
History &E
Evolution
l i
• In order to shift the burden of inspection from the
customer, quality assurance was guaranteed by the
supplier through third-party
third party inspection
inspection, though none of
the assessing bodies at that time accepted any legal
liabilityy for the q
qualityy of their decisions. The collapse
p of
a jetty at Dover, which had been assessed by LRQA,
an assessing body, and the subsequent court case
f
forced d a rethink.
thi k
• Through the 1970s, BSI organized meetings with
industry to set a common standardstandard. The result was BS
5750 . Key industry bodies agreed to drop their own
standards and use it instead
instead. The purpose of BS 5750
was to provide a common contractual document,
demonstrating g that industrial production was controlled.
764
 PEMP EMM502

Histor & Evolution

History E ol tion
• In 1982 the UK government produced a White Paper No.
8621 entitled "Standards, Quality y and International
Competitiveness". This introduced the concept of
certification of a company's management system as a
marketing
k ti ttool.l Ob
Obviously,
i l an iindependent
d d t thi
third
d party
t was
needed to ensure fairness., BSI became the first de facto
assessors.
assessors
• The lack of technical expertise in the first assessors, and
the inevitable fact that the first generation of assessors
were trained by people with purely military quality
assurance skills caused many y problems.
p At the time,
military procurement contracts were given on a cost-plus
basis, so on-costs such as inspection, internal auditing and procedure
writing became profit centers
centers.
765
 PEMP EMM502

C ti
Continued
d
• The standard has evolved over several revisions.
• The initial 1987 version, ISO 9000:1987, had the same
structure as the UK Standard BS 5750,, with three 'models'
for quality management systems, the selection of which
was based on the scope of activities of the organization.
Alth
Although h th
the St
Standard
d dh has gone ththrough h ttwo more
iterations which have resulted in some radically changed
language all the core,
language, core prevention oriented quality
assurance requirements were present in the 1987
document. Contrary y to many y claims,, the Standard did not
focus on quality control via retroactive checking and
corrective actions.. With it’s structure of twenty 'elements' of
requirements,
i t th
the emphasis
h i ttended
d d tto b
be overly
l placed
l d on conformance
f with
ith
procedures rather than the overall process of management - which was the
actual intent.

766
 PEMP EMM502

C ti
Continued
d
• Th
The 1994 version,i ISO 9000:1994,
9000 1994 was an
attempt to break from the practices which had
somewhat corrupted the use of the 1987
standard. It also emphasized quality assurance
via preventive actions
actions, and continued to require
evidence of compliance with documented
procedures. Unfortunately, as with the first
edition, companies tended to implement its
q
requirements by y creating
g shelf-loads of
procedure manuals, and becoming burdened
with an ISO bureaucracy. y Adapting g and
improving processes could be particularly difficult
in this kind of environment.
767
 PEMP EMM502

Continued
• The 2000 version, ISO 9000:2000, sought to make a
radical
di l change
h in
i thi
thinking
ki b by actually
t ll placing
l i th the conceptt
of process management front and centre in the Standard.
Documents produced by the ISO Technical Committee
which drafted the third edition make it clear that they didn't
see anyy changeg in the essential g goals of the standard,,
which had always been about 'a documented system' not
a 'system of documents'. The goal was always to have
managementt system t effectiveness
ff ti via
i process
performance metrics. The third edition makes this more
visible and so reduced the emphasis on having
documented procedures if clear evidence could be
presented to show that the p
p process was working g well.
Expectations of continual process improvement and
tracking customer satisfaction were made explicit at this
revision.
i i U
Unfortunately
f l too many organizations
i i continue
i to
768
produce reams of unnecessary documents and to write
 PEMP EMM502

Continued
• Contents
• Like all properly-written Standards , ISO 9000 seeks
to set criteria which achieve a goal and is not
prescriptive as to methods.
• The requirements come in Sections 4 to 8 8.
• Section 4 is entitled General Requirements
• Section 5 is entitled Management Responsibility
• Section 6 is entitled Resource Management
• Section 7 is entitled Product Realisation
y
• Section 8 is entitled Measurement, analysis and
improvement
• In each of these areas,, ISO 9001:2000 seeks to set
out key requirements, which if met will ensure 769
consistency.
 PEMP EMM502

C ti
Continued
d
• In the standard, there are 6 documents that ISO
specifies:
• Control of Documents
• Control of Records
• Internal Audits
• Control
C l off N
Nonconforming
f i P Product
d
• Corrective Action
• Preventive Action
• In addition to these,
these ISO 9001:2000 requires a
Quality Policy and Quality Manual (which may
or may not include the above documents).
documents)
770
 PEMP EMM502

Certification
• Certification
• ISO does not itself certify organizations. Many countries
h
have fformed
d accreditation
dit ti bodies
b di tto authorize
th i
certification bodies, which audit organizations applying
for ISO 9001 compliance certification.
certification It is important to
note that it is not possible to be certified to ISO 9000.
Although g commonly y referred to as ISO 9000:2000
certification, the actual standard to which an
organization's quality management can be certified is
ISO
SO 9001:2000. Both the accreditation bodies and the
certification bodies charge fees for their services.

771
 PEMP EMM502

Certification
• The applying organization is assessed based on an
extensive sample of its sites, functions, products, services,
and pprocesses and a list of pproblems (("action requests"
q or
"non-compliances") made known to the management. If
there are no major problems on this list, the certification
b d will
body ill iissue an ISO 9001 certificate
tifi t ffor each
h
geographical site it has visited, once it receives a
satisfactory improvement plan from the management
showing how any problems will be resolved.
• An ISO certificate is not a once-and-for-all
once and for all award, but must be
renewed at regular intervals recommended by the certification body,
usually around three years

772
 PEMP EMM502

Auditing
• Auditing
• Two types of auditingare required to become registered to
the standard: auditing by an external certification body and
audits by internal staff trained for this process (internal
audits). The aim is a continual process of review and
assessment, to verify that the system is working as it's
supposed to, find out where it can improve, and to correct
or prevent problems identified. It is considered healthier
for internal auditors to audit outside their usual
management line,
line so as to bring a degree of
independence to their judgements.

773
 PEMP EMM502

Auditing
• Tell me what you do (describe the business
p
process))
• Show me where it says that (reference the
procedure manuals)
• Prove that that is what happened (exhibit
evidence in documented records)
• How this led to preventive actions was not
clear.

774
 PEMP EMM502

Auditing
• The 2000 standard uses the process approach.
While auditors perform similar functions, they are
p
expected to g
go beyond
y mere auditingg for rote
"compliance" by focusing on risk, status and
importance. This means they are expected to make
more judgements on what is effective, rather than
merely adhering to what is formally prescribed. The
diff
difference from
f the
h previous
i standard
d d can beb
explained thus:
• Under the 1994 version, the question was broadly
"Are you doing what the manual says you should be
d i ?" whereas
doing?", h under
d th the 2000 version,
i th
the
question is more "Will this process help you achieve
your stated objectives? Is it a good process
process, or is
775
there a way to do it better?".
 PEMP EMM502

ISO Suite
S ite
• ISO 9000 document suite
• ISO 9000 is
i composed d off the
th following
f ll i
sections:
• ISO 9000:2000, Quality management
systems - Fundamentals and
vocabulary. covers the basics of what
quality
lit managementt systems
t are andd
also contains the core language
g g of the
ISO 9000 series of standards..
776
 PEMP EMM502

ISO Suite
• ISO 9001 Quality management systems -
Requirements is intended for use in any organization
which designs, develops, manufactures, installs
and/or services any product or provides any form of
service. It provides a number of requirements which
an organization needs to fulfill if it is to achieve
customer satisfaction through consistent products and
services which meet customer expectations. This is
the only implementation for which third-party auditors
mayy grant
g certifications. The latest version is :2000.
• ISO 9004 Quality management systems -
Guidelines for p performance improvements.
p covers
continual improvement. This gives you advice on what
you could do to enhance a mature system.
y y This
standard very specifically states that it is not intended
777
as a guide to implementation.
 PEMP EMM502

S
Specific
ifi Standards
St d d
• Industry-specific interpretations
• The ISO 9001 standard is generalized and abstract. Its
parts must be carefully interpreted,
interpreted to make sense within
a particular organization. Developing software is not like
making g cheese or offeringg counseling
g services; yyet the
ISO 9001 guidelines, because they are business
management guidelines, can be applied to each of these.
Di
Diverse organizations—police
i ti li ddepartments
t t (US)
(US),
professional soccer teams (Mexico) and city councils
(UK)—have
(UK) have successfully implemented ISO 9001:2000
systems.

778
 PEMP EMM502

S
Specific
ifi Standards
St d d
• Over time, various industry sectors have wanted
to standardize their interpretations of the
guidelines within their own marketplace. This is
partly to ensure that their versions of ISO 9000
have their specific requirements,
requirements but also to try
and ensure that more appropriately trained and
experienced
i d auditors
dit are sentt tto assess th
them..

779
 PEMP EMM502

Specific Standards
• AS 9000 is the Aerospace
p Basic Quality
y System
y Standard, an
interpretation developed by major aerospace manufacturers. The
current version is AS 9100.
• PS 9000 is an application of the standard for Pharmaceutical
Packaging Materials.
• QS 9000 is an interpretation agreed upon by major automotive
manufacturers (GM, Ford, Chrysler). It includes techniques such as
FMEA and APQP. QS 9000 is now replaced by ISO/TS 16949.
• ISO/TS 16949:2002 is an interpretation agreed upon by major automotive
manufacturers (American and European manufacturers); the latest version
is based on ISO 9001:2000. The emphasis on a process approach is
stronger than in ISO 9001:2000. ISO/TS 16949:2002 contains the full text of
ISO 9001:2000 and automotive industry-specific requirements.

780
 PEMP EMM502

ISO 14000
• An ISO 14001 EMS
• promotes integration of
• business functions with
• environmental
• management. t It provides
id
• for continuous and
• verifiable improvement
• towards a safe working
• environment and
• reduced environmental
• impacts. EMS has five
• key elements.

781
 PEMP EMM502

Comparison
• .

• SIMILARITIES BETWEEN ISO 9001 AND ISO 14001

• ISO 14001 REQUIREMENTS
• ISO 9001 AND ISO 14001
• Quality Policy --------------- Environmental Policy
• Quality Management System Documentation ----------Environmental
Management System Documentation
• Document Control------------ Document Control
• Inspection and Testing --------Monitoring and Measurement
• Corrective and Preventive Action -------------Nonconformance
Nonconformance and
Corrective and Preventive Action
• System
y Audits------------------ System
y Audits
• Management Review---------- Management Review

782
 PEMP EMM502

Ho Elements were
How ere Deri
Derived
ed
• Actually the elements were derived from the colective experience
and knowledge of experts who participate in ISO technical
committee.
• The main 8 guiding principles were:
• Customer focus
• Leadership
• I
Involvement
l t off people
l
• Process approach
• System approach to mgt
• Continual improvement
• Factual approach to decision making
• Mutually beneficial supplier relationship

783
 PEMP EMM502

More details of principles

• Customer Focus
Orgns shd understand current & future needs
needs,shd
shd meet
them & strive to xceed expectations.
• Leadership
Leaders establish unity of purpose & dirn of orgn.They
shd create & maintain the internal env in which people
become fully involved in achieving objectives
• Involvement of people
People at all levels are the essence of an orgn & their
full involvement enables abilities to be used for org benefit

784
 PEMP EMM502

Contd
• Process Approach
A desired result is achieved more efficiently when
activities & related resources are managed as a process.
• Systems approach to mgt
Identifying,understanding,& managing interrelated
processes as a system contributes to the org eff.
• Continual improvement
Of Overall perf----- Shd be the permanent obj of org--

785
 PEMP EMM502

Contd
• Factual approach to decision making
Effective
ff decisions are based on analysis
l i off
Data
• Mutually beneficial supplier relationship
Orgns and supliers are interdependent

786
 PEMP EMM502

QM PRINCIPLES

In more detail—Refer Separate

pptt

787
 PEMP EMM502

Le els of Doc
Levels Documentation
mentation
• A Quality system has four levels of
d
documentation.
t ti
• Level 1----Quality
1 Quality policy and manual
• Level 2----Departmental op procedures.
• Level 3----”How- to’ OR work instructions
• Level 4------Quality records for audit trail.

788
 PEMP EMM502

Mandatory
y Documented
Procedures
• 4.2.3. Control of Documents
• 424 C
4.2.4. Control
t l off Q
Quality
lit R
Records
d
• 8.2.2. Internal Audit
• 8.3. Control of Non-Conformity
• 852 C
8.5.2 Corrective
ti A Action
ti
• 8.5.3 Preventive Action
• Additional procedures may have to be
documented to Finally PROVE compliance to
QMS
789
 PEMP EMM502

Mandator Records
Mandatory
• 5.6.1. Management Review
• 6.2.2(e).
6 2 2( ) Ed
Education,Training
ti T i i
• 7.1(d)
( ) Realisation p
process that p
products meet
reqmts
• 7.2
7 2 Review of customer related processes
• 7.3.2 Design & dev inputs,outputs,validation
etc
• 7.4.1
7 4 1 Supplier evaluation
• Special process validation,traceability,cpac etc
790
 PEMP EMM502

Re ision Process
Revision
• ISO requires all stds to be periodically revised to satisfy
the needs of global community.
• The New ISO has a Process approach.
• Process—An
Process An activity using resources
resources,and
and managed in
order to enable transformation of inputs to outputs.
• An
A advtage
d t off process approachh is
i th
the ongoing
i control
t l
that it provides over the linkage between the individual
process within the system of processes as well as over
their combination and interaction

791
 PEMP EMM502

Contd
• Under the 1994 version, the question was broadly "Are
you doing what the manual says you should be doing?",
doing? ,
whereas under the 2000 version, the question is more
"Will this p
process help
p yyou achieve yyour stated
objectives? Is it a good process, or is there a way to do it
better

792
 PEMP EMM502

ISO 9001—2000
9001 2000 Version
• 5 New Sections of New ISO 9001 are:
• Quality mgt system
• Management Responsibility
• Resource Mgtg
• Product/Service Realisation
• Measurement,Analysis and Improvement

793
 PEMP EMM502

QUALITY MANAGEMENT SYSTEM

794
DIFFERENCES IN THE DOCUMENTATION
PEMP EMM502

STRUCTURE OF ISO 9000: 2000 AND ISO

9000:1994

795
 DIFFERENCES IN THEPEMP EMM502

DOCUMENTATION STRUCTURE OF ISO

9000: 2000
9000 000 AND ISO
SO 9000
9000:1994
99

796
 PEMP EMM502

Latest ISO
ISO 9001:2008 was released
on November 15, 2008.

It replaces the year 2000 version of the

standard which is currentlyy
implemented by business and public
sector organizations worldwide
worldwide.

797
 PEMP EMM502

Latest ISO
What will the 2008 amendments to
ISO 9001 mean to you?

– If you already have your ISO 9001 registration in place

place, or are in the
process of building it, the changes will have minimal impact on your
system.

– The amendment has focused on clarification of, not the addition or

removal of any requirements.

– If you are complying now, you will still be meeting requirements of

the Nov 15, 2008 publication.

798
 PEMP EMM502

Latest ISO
Teams of experts have carefully crafted the
wording of each paragraph
paragraph, each sentence
and each bullet with the goal of registrars,
auditors
dit and
d users off th
the standard
t d d
worldwide readingg the same meaning g into
the standard as the committees intended.

That is a challenging
g g goal,
g and not
always met.
799
 PEMP EMM502

Ho to get certified
How
• Top Mgt & Senior mgt take a decision to get
certified
• Decide the certifying Authority.
• An
A experienced
i d Mentor/guide
M t / id is i taken
t k on-
board
• A Competent Mgt Rep is appointed.
• Coordinators for each dept are chosen
• Spread message of intent,utility ,road map
etc by CEO through personal meetings and
media---TO ALL GROUPS
800
 PEMP EMM502

Contd
• Begin Document preparation after visiting a
few companies already certified.
• Conduct Training classes for
HOD COORD KEY WORKERS ETC
HOD,COORD,KEY ETC.
• Get Documents and progress okayed by
M t
Mentor
• Initial Audit/Friendly
y audit
• Corrections
• Final audit/Getting Certificate
• Monthly Mgt Review/Benefit Quantification
801
 PEMP EMM502

How to g
get Benefits from ISO
9001
• Link to Business plan must be strong in the
Mgt Review meetings.
meetings
• Upgrade to TS as soon as possible.
• Get self certified by customers using base of
ISO
• Try for national awards

802
 PEMP EMM502

Facts abo
aboutt Benefits
• Survey facts.
• 70% gott iimproved
d mgtt control
t l
• 75% realised improved
p customer satisfaction
• 60%realised improved productivity
• 50% h
hadd reduced
d d costs
t bby waste
t redn
d
• 50% had increased mkt share

803
 Principle Requirements of ISO PEMP EMM502

9000
ISO 9000 Requirements Summary:
1 Management Responsibility:
1.
• The quality policy shall be defined, documented,
understood,
d t d iimplemented
l t d and
d maintained.
i t i d
• Responsibilities and authorities for all personnel
specifying, achieving and monitoring quality shall be
defined.
• In-house verification resources shall be defined,
trained and funded.
• A designated management person sees that the Q91
program is implemented and maintained
804
 PEMP EMM502

Principle Requirements of ISO

9000
2. Quality System
• Procedures shall be prepared.
• Procedures shall be implemented

3. Co
Contract
c Review
ev ew
• Incoming contracts (and purchase orders) shall be reviewed to see
whether
h th the
th requirements
i t are adequately
d t l defined,
d fi d agree withith the
th bid
and can be supplied

805
 Principle Requirements of ISO PEMP EMM502

9000
4. Design Control
•The design project shall be planned.
Design input parameters shall be defined.
•Design defined
•Design output, including crucial product characteristics shall be
d
documented.
d
g output
•Design p shall be verified to meet input
p requirements.
q
•Design changes shall be controlled

806
 Principle Requirements of ISO PEMP EMM502

9000
5. Document Control
•Generation of documents shall be controlled
controlled.
•Distribution of documents shall be controlled.

•Changes to documents shall be controlled.

6. Purchasing
•Potential
i l subcontractors
b andd sub-suppliers
b li shall
h ll be
b evaluated
l d for
f their
h i
ability to provide stated requirements.
•Requirements shall be clearly defined in contracting data.

807
 Principle Requirements of ISO PEMP EMM502

9000
7. Customer-Supplied Material
•Any customer-supplied material shall be protected against loss or
damage.

8. Product Identification & Tracability

•The products shall be identified and traceable by item, batch or lot
during all stages of production, delivery and installation.

808
 Principle Requirements of ISO PEMP EMM502

9000
9. Process Control
•Production (and installation) processes shall be defined and
planned.
•Production shall be carried out under controlled conditions:
documented instructions, in
in-process
process controls, approval of processes
and equipment, and criteria for workmanship.
• Special
S i l processes that
th t cannott be
b verified
ifi d after
ft the
th fact
f t shall
h ll be
b
monitored and controlled throughout the processes

809
 Principle Requirements of ISO PEMP EMM502

9000
10. Inspection and Testing
•Incoming materials shall be inspected or verified before use.
•In process inspection and testing shall be performed.
•In-process performed
•Final inspection and testing shall be performed prior to release of
finished product.

•Records
R d off inspection
i ti andd test
t t shall
h ll be k t.
b kept

810
 Principle Requirements of ISO PEMP EMM502

9000
11. Inspection/Measuring/Test Equipment
•Equipment used to demonstrate conformance shall be
controlled, calibrated and maintained.
•Identify measurements to be made.
•Identify
d if affected
ff d instruments.
i
•Calibrate instruments (p
(procedures and status indicators).
)
•Periodically check calibration.

811
 PEMP EMM502

Principle
p Requirements
q of ISO
9000
•Assess measurement validity if found out of calibration.
•Control environmental conditions in metrology lab.
•Measurement
M t uncertainty
t i t andd equipment
i t capability
bilit shall
h ll
be known.
•Where test hardware or software is used, it shall be
checked before use and rechecked during use.

812
 PEMP EMM502

Principle
p Requirements
q of ISO
9000
12. Inspection and Test Status
•Status of inspections and tests shall be maintained for items as they
progress through various processing steps.
•Records shall show who released conforming product

13 Control of Nonconforming Product

13.
•Nonconforming product shall be controlled to prevent inadvertent
use or installation.
•Review and disposition of nonconforming product shall be
formalized.

813
 PEMP EMM502

Principle
p Requirements
q of ISO
9000
14. Corrective Action
•Problem causes shall be identified.
•Specific
S ifi problems
bl andd their
h i causes shall
h ll be
b corrected.
d
•Effectiveness of corrective actions shall be assessed

814
 PEMP EMM502

Principle
p Requirements
q of ISO
9000
15. Handling, Storage, Packaging & Delivery
•Procedures for handling
handling, storage
storage, packaging and delivery shall
be developed & maintained.
•Handling controls shall prevent damage and deterioration.
Secure storage shall be provided.
•Secure provided Product in stock shall be
checked for deterioration.
•Packing,
ki preservation
i and
d marking
ki processes shall
h ll bbe controlled.
ll d
Q y of the pproduct after final inspection
•Quality p shall be maintained.
This might include delivery controls.

815
 PEMP EMM502

Principle
p Requirements
q of ISO
9000
16. Quality Records
•Quality
Q li records d shall
h ll be
b identified,
id ifi d collected,
ll d indexed,
i d d filed,
fil d
stored, maintained and dispositioned.

17. Internal Quality Audits

•Audits shall be planned and performed.
Results of audits shall be communicated to management.
•Results

•Any deficiencies found shall be corrected.

816
 PEMP EMM502

Principle
p Requirements
q of ISO
9000
18. Training
•Training
T i i needs
d shall
h ll be
b identified.
id ifi d
•Trainingg shall be provided.
p
•Some tasks may require qualified individuals.
•Records of training shall be maintained.

19 Servicing
19. S i i
•Servicingg activities shall be performed
p to written pprocedures.
•Servicing activities shall meet requirements
817
 PEMP EMM502

Principle
p Requirements
q of ISO
9000
20. Statistical Techniques
•Statistical
S i i l techniques
h i shall
h ll be
b identified.
id ifi d
q
•Statistical techniques shall be used to verify
y acceptability
p y of
process capability and product characteristics

PEMP EMM502 818

 PEMP EMM502

Introd ction to ISO 14000

Introduction
What is ISO 14000?
ISO 14000 is a series of international standards on
environmental management. It provides a framework for
the development of an environmental management
system and the supporting audit program.

819
 PEMP EMM502

Who should implement ISO

14000?
Any organization: manufacturers and service organizations.
organizations
Any activities of each organization may cause the
environmental
i t l aspects
t andd impacts
i t suchh as noise,
i dust,
d t
waste, contaminants in manufacturing process and
uneffectively resources consumption in servicing. These can
be minimized by y implementing
p g EMS.
Although each country has already had her own
environmental
i l regulations,
l i organizations
i i are able
bl to apply
l
ISO 14000 series effectively within their system on
voluntary basis and the benefit obtained is not only for
g
organizations themselves but their societyy also.
820
 PEMP EMM502

How to implement ISO 14000?

1 Stipulating
1. Sti l ti the
th EMS policy
li
• The organization’s
g top
p management
g provides
p the EMS policy
p y
which is appropriate to the environmental impact.

2 Planning
2. Pl i
• Specifying the aspects of environmental impact(s).
• Considering legislation and other rules relevant to EMS.
• Defining environmental objectives and targets corresponding
to the policy.
p y
• Conducting an environmental program to attain the objectives
and targets
821
 PEMP EMM502

H
How tto implement
i l t ISO 14000?
3. Implementation of the EMS according to the policy
• Defining
D fi i organizations’
i i ’ outlines
li andd responsibilities
ibili i for
f the
h
effective implementation of EMS.
• Providing an appropriate training programme relating to
environment to the p
personnels whose tasks concern
environmental impact(s) to build up their awareness.
• Defining processes for both internal and external
communication.
• Conducting and controlling the environmental management
documentation system.
822
 PEMP EMM502

H
How tto implement
i l t ISO 14000?
• Controlling the operation of the activities relevant to
environmental impact(s) to attain the specified objectives
and targets.
• Being
B i readyd to
t reactt to
t the
th emergency event(s)
t( ) including
i l di
the prevention and mitigation of the environmental
i
impact(s)
t( ) causedd by
b the
th above
b matter(s).
tt ( )

823
 PEMP EMM502

H
How to iimplement
l ISO 14000?
4. Checking and corrective actions
• Monitoring and measuring the activities which cause
environmental impact(s).
p ()
• Conducting the corrective and preventive actions of the
non conformity
non-conformity.
• Following up the effectiveness of the corrective and
preventive actions.

824
 PEMP EMM502

H
How tto implement
i l t ISO 14000?
5. Environmental management system review
• The EMS should
Th h ld bbe periodically
i di ll reviewed
i d by
b the
h top
management of the organization to ensure that the
established
t bli h d system
t isi appropriate,
i t sufficient,
ffi i t implemented
i l t d
effectively and improved continually.

825
 PEMP EMM502

Benefits of ISO 14000

Long term cost saving: The resources have been used

di
discreetly
tl resulting
lti ini less
l impact
i t on the
th environment.
i t
This consequently minimizes the capital cost.
Trade benefit: The implementation of ISO 14000
series
i enhances
h trade
t d negotiation.
ti ti This
Thi helps
h l
organizations to maintain market share and become
more competitive in penetrating new markets

826
 PEMP EMM502

Benefits of ISO 14000

Improving an organization’s image: As the ISO
p g the environment.
14000 series involves in improving
The organizations are deemly recognized by the
community.
community
Obtainingg an EMS certificate: The organizations
g
who comply with the ISO 14001 requirements are
entitled to the certificate which can be used for trade
advertisement or publication which will support and
promote the organizations
organizations’ reputation.
reputation

827
 PEMP EMM502

S mmar and Concl

Summary Conclusions
sions
• ISO International Standards are accepted
worldwide as the method by which
manufacturers and service providers can
achieve
hi maximum
i convenience
i andd efficiency
ffi i iin
the exchange
g of their g
goods and services.
• ISO Standards clearly define the steps to be
followed by an organization to achieve
excellence and to improve market share.

PEMP EMM502 828

 PEMP EMM502

Session Objectives
• Definition of terms and facts on benchmarking.
• Where best practice fits in.
•Overall
O ll approachh to benchmarking
b h ki
• Eight steps to benchmarking in practice.
practice . Summary

829
 PEMP EMM502

Definition of Benchmarking

It is an external focus on internal activities,

functions or operations in order to achieve
continuous improvement.

830
 PEMP EMM502

What is Benchmarking?
Benchmarking can be defined as:
A systematic approach to Business improvement,
where BEST PRACTICE is sought and implemented
to improve a process beyond the BENCHMARK
performance
f

831
 PEMP EMM502

Target
•When all processes have been
measuredd against
i t eachh other,
th theth
'BEST' can be used as the 'TARGET'
to be achieved.
•This
Thi Target
T t for
f eachh process is
i the
th
BENCHMARK

832
 PEMP EMM502

BPR and benchmarking

• Benchmarking is generally classed as a tool of
business process re
re-engineering
engineering (BPR).
(BPR)
• Processes are sets of activities that, when taken
together, produce a result of value to the customer.

833
 PEMP EMM502

Why Benchmark?
Some Reasons For Benchmarking:-
• To
T Win
Wi in
i Global
Gl b l Markets
M k t
• To Improve Company Performance
• To Gain Competitive
p Advantage
g
• To Identify and Adopt Best Practices
• To Develop Industry Sector
• To Improve Strategic & Operational Planning * To
Achieve WORLD CLASS STANDARD
834
 PEMP EMM502

Facts about Benchmarking

Fact 1
Benchmarking is about recognizing that your organization
can and must perform at a higher level: to do so is the first
step.
Fact 2
If you don't measure what you do, you don't know how
you are pperforming:
y g it's that simple.
p

835
 PEMP EMM502
Facts about Benchmarking
Contd:
Fact 3
It's not rocket-science, but a pragmatic approach to
measuring your organization
organization'ss performance against world-
class, best practice.
Fact 4
Today's best practice today will not be tomorrow's which is
why
y benchmarkingg cannot be a once onlyy activity.
y

836
 PEMP EMM502

Basis of benchmarking

•It is usually a ONE on ONE study, but can be extended to

several organizations so long as best practice is used to
make the ultimate comparison.
• Benchmarking is not Kaizen: It is about a STEP change,
not slow,
slow incremental improvement.
improvement

837
 PEMP EMM502

Benchmarking is not
• Reinventing the wheel
•Confirming that the organization is
not worse than it’s
it s competitors
competitors.
• Somethingg entirely y new.
•An end in itself

838
 PEMP EMM502
Best p
practice and
benchmarking
• Best practice is about doing things in the most
effective manner and is usually focused on a process
that is critical to the success of an organization
(CSF ) e.g. supplier
(CSFs)~ li management~ design
d i andd
bidding, new product development
• Benchmarking is about objective analysis of
processes to
t measure the
th gap between
b t best
b t practice
ti
and current performance.

839
 PEMP EMM502
Who is achieving best
Practice?
• Someone, somewhere is bound to be doing things
b tt than
better th you.
• Theyy are likely y to be organisations
g that aim to
become world-class - if they are not that already.
• They may be a competitor,
competitor though they are more
likely to be in a different sector altogether.

840
 PEMP EMM502

Recognizing best practice

• Organizations operating in entirely different

sectors will have some processes in common. If
someone is doing things better you need to know
how they achieve it.
• World-class
W ld l organizations
i ti h
have a strong
t
customer-focus, are flexible and aim for
continuous improvement. They are also likely to
be effective users of IT.

841
 How To Go About PEMP EMM502

B
Benchmarking
h ki
• Stage-by-stage,step-by-step approach

842
 PEMP EMM502

Basic approach
pp to
benchmarkingg
The approach involves:
- identifying best practice;
- measuring the gap between it and your own
performance; and
- replicating the practices which lead to that best
p
practice.

843
 PEMP EMM502

P
Preparing
i ffor b
benchmarking
h ki
•Who is involved in delivering the service?
• Why are they involved?
• What are they doing?
• Why are they doing it?
• Is what they are doing adding value?

844
 PEMP EMM502

B i i b
Beginning benchmarking
h ki
• Benchmarking begins by identifying perceived
critical success factors (CSFs), (typically the
strategies:> roles and processes) existing within
strategies:
the organization.
•This
Thi focuses
f attention
tt ti on measures off
performance which are essential to effecting
improvement.

845
 PEMP EMM502

How Benchmarking Works

• Existing processes are identified and

measured d . Comparison
C i is
i made
d b between
t other
th
companies . BEST PRACTICES are identified
• Existing processes are adapted to suit and
changes implemented
• Benchmarking Process is Repeated to
achieve
hi
WORLD CLASS standards

846
 PEMP EMM502

T
Types off Benchmarking
B h ki

• Internal Benchmarking …Similar op within

orgn
• Competitive Benchmarking …Product/process with
best competitor

• Functional Benchmarking.Similar process in same fn

outside ones industry

• Generic Benchmarking ..Process compare with

exemplars/wcc
l /
• Consultant Study
y Benchmarking
g
847
 PEMP EMM502

T pes of Benchmarking
Types
• Three major types of benchmarking are:
– Performance or operational
– Process or Functional
– Strategic
First one deals with technical, pricing,
features etc of product or service. Reverse
engg is used. Normally competitors products
are ripped apart and studied.

848
 PEMP EMM502

Contd
Second one deals with most effective
practices in companies that perform similar
functions, no matter in what industry.
Billi
Billing,order
d entry,
t warehousing
h i etc
t
p
Third one examines how companies compete
p
and seeks the winning strategies that have
lead to competitive adv and market success
success.
A matrix showing key success factors can be
rated across companies

849
 PEMP EMM502

I
Internal
l Benchmarking
B h ki
Description
Comparing yourself against a similar process,
product,, or service within your
p y organization
g
Comments
• Potential
P t ti l benchmarking
b h ki partners
t are easieri t
to
identify.
• Sharing company confidential data should be easier
• Less likely
y to find substantial improvements.
p
• Should be considered first if you are starting to
benchmark
850
 PEMP EMM502

C
Competitive
titi B Benchmarking
h ki
Description
C
Comparing
i yourselflf against
i t th
the ttoughest
h t external
t l
competitive organization( s)
Comments
• Usually easy to identify
• More
M lik
likely
l to offer
ff significant
i ifi improvement
i differences
diff
• Less likely to share data
• This should be the standard approach
pp
851
 PEMP EMM502

F
Functional
ti lBBenchmarking
h ki
Description
p
Comparingg yyourself against
g other world class companies
p
who do not compete with you Examples for IBM might be
Xerox or Motorola
Comments
• More likely to share data (even sensitive) than direct
competitors
i
• More likely to have significant performance improvements
• More
o eddifficult
cu too identify
de y thee pe
performance
o ce improvements
p ove e s
852
 PEMP EMM502

G
Generic
i BBenchmarking
h ki
Description
i i
Comparing yourself to world class companies that are not
in your industry, but have similar processes e.g.. Xerox and
p
American Express for customer service
Comments
• Harder to identify companies
• Data sharing easier
• More likely to offer significant improvements

853
 PEMP EMM502
Consultant Study
y
Benchmarking
Description
Comparing yourself to world class companies by utilizing
a consultant
. Consultant acts as an independent third party and reports
averages~ trends or other non
averages non-sensitive
sensitive data
Comments
• Does not divert company resource Must pre-educate the
consultant
lt t on what
h t you wantt
• Data usually shared with participating companies
854
 PEMP EMM502

Benchmarking Evolution

'
"
~~

m
"
§
e
n

855
 PEMP EMM502

B
Benefits
fit
• 'BEST PRACTICES' can be identified and
adapted
d t d tot suit
it size
i off organisation
i ti and/or
d/ size
i off
process.
• Knowledge can be transferred to initiate better
performance.
f

856
 PEMP EMM502

M h d off b
Methods benchmarking
h ki
• Literature searches to derive comparisons.
• Information provided by new recruits.
• Customers' and suppliers' feedback.
• Standards.
St d d
• Benchmarking clubs - sharing of information.
information
• Self-appraisal
pp - Benchmarkingg models

857
 PEMP EMM502

Th B
The Benchmarking
h ki P Process
• Companies
p manufacturingg similar products
p frequently
q y
adopt similar manufacturing and business processes.
• Measurement off similar
i il processes between
b companies
i
identifies BEST, AVERAGE or WORST practices.
• The adoption of "Best practice" derived from
comparing
i similar
i il business
b i andd or manufacturing
f t i
activities normally leads to improved product quality
and reduced manufacturing costs.

858
 PEMP EMM502
There are three stages and
eight steps in all
1. Agree basis:
- identify the subject of the study
decide upon what process( es) to measure - identify
-decide
who to benchmark both within your sector and outside.
2. Gather and interpret the facts:
- collect information and data
- analyse
l findings
fi di andd determine
d t i gap.

859
 PEMP EMM502

The remaining
g stage
g and
steps
p
3. Implement
p change:
g
- set goals for improvement
- develop action plan
- implement new process( es)
- monitor
it the
th process(( es)) for
f improvement.
i t

860
 PEMP EMM502
The Eight Steps of
Benchmarking
A logical and structured approach

861
 PEMP EMM502
Step 1: Identify the subject of
the study
• Agree on the objective(s) of the study.
• Decide on who to involve internally.
• Define the process( es) (core business or otherwise).
otherwise)
• Identify the scope.
• Set the limits for the study.
• Agree on the process( es).

862
 Step 2: PEMP EMM502

D id upon what
Decide h t tto measure
•Produce a flow chart of the process(es).
• Examine the elements of the process(es).
•Establish measures of performance.
•Verify that measures match objective(s).

863
 Step 3: PEMP EMM502

Id tif who
Identify h tto b
benchmark
h k

• Identify main competitors and rising stars.

• Agree those to benchmark.
• Identify out-of-sector comparisons.
• Identify world-class, best practice
(invariably outside own sector).

864
 Step 4: PEMP EMM502

C ll
Collect iinformation
f i and
dddata

• Draft a checklist or questionnaire.

• Pilot the checklist/questionnaire.
• Conduct structured interview(s).
• Write-up the results and agree with interviewees.

865
 Step 5: PEMP EMM502

Analyse findings and determine

g p
gap
• Score answers/responses and weight them (if
necessary).
)
• Analyse qualitative responses.
responses
• Summarize findings.
g
• Measure gap between one's own performance and
that of others

866
 PEMP EMM502

Step 6:
Set goals for improvement
• Identify goals for performance improvement.
• Establish criteria for measuring performance.
• Prepare and circulate action plan.
• Agree
A action
ti plan
l andd milestones.
il t
• Communicate actions to all stakeholders.
stakeholders

867
 PEMP EMM502

Step 7
7: Implement ne
new order

• Draft new procedures.

• Communicate procedures to all stakeholders.
• Train those affected by the new order.
• Implement new process(es).

868
 Step 8: PEMP EMM502

Monitor the process for

p
improvement
• Conduct regular
g review meetings.
g
• Observe progress of best practice organization.
• Determine if corrective actions are required.
• Document any further changes and communicate
e too all stakeholders.
them s e o de s.

869
 PEMP EMM502

In summary
s mmar
• Benchmarking is a snap-shot. For it to have real value,
it must form part of a process of continuous
improvement.
• The aim is to identify best practice in key processes
(or CSFs) and to measure your organization's
organization s
performance against it.
• The resultant gap represents the challenge for the
og
organization.
o .

870
 PEMP EMM502

Concl sion
Conclusion
Organizations must realize the synergy of people,
information and technology.
Information
People

Technology

871
 PEMP EMM502

Additional reading material

f students
for t d t

872
 PEMP EMM502

Benchmarking

• Benchmarking
Evolution of benchmarking
Concepts
g
Advantages
Limitations of benchmarking
Areas to bench mark
Levels and types of bench marking
Bench marking gp
process
Role of benchmarking in TQM

873
 PEMP EMM502

Basics
• What is Benchmarking?
– It is defined as “measuring our perf against the best
best-
in-class companies,determining how they achieve
those perf levels and using the info as a basis for our
company’s targets, strategies and implementation”
– ‘Best
Best -in-class
in class /best practices’
practices refers to the approaches that
produce exceptional results, are usually innovative in terms of
use of technologygy or human resources and are recognised
g as
such by customers or industry experts.

874
 PEMP EMM502

Essence of Benchmarking
• It is ‘moving from where we are to where we
want to be.
be ’
• A Benchmark is a point of reference against which things
are measured.
d It takes
t k many forms:
f
– Questions about products or services----
• How many
• How much time
• How much money
• How reliable
• S
Scrap rate --etc

875
 PEMP EMM502

Evolution
• Henry Ford did it-----Chicago Slaughter
house?
• Toyota
y did it-----US Supermarket
p
replenishment?
• Xerox made it into a system.
– Pioneers in instituting benchmarking process
– When they first studied their competitors they found
• Manu cost in xerox=Japanese selling price in US.
• Number of suppliers five times more
• Assembly line rejects ten times higher
• Defects in machines seven times higher

876
 PEMP EMM502

Contd----
Contd
• Initially employees refused to believe that
someone else could be better ,but
but when facts
were shown typical reaction of denial—dismay-
frustration action
frustration-action
• Results were
• Concurrentt engg—Product
C P d t dev
d very ffastt
• Cross functional teams and flat orgn
• Quality
Q improved by 60%
%
• Manu cost reduced by 50%
M t l did a similar
Motorola i il exercise
i

877
 PEMP EMM502

Ad antages
Advantages
• Better understanding of own processes & NVA
• Saves
S ti
time andd money as it h
has tto adapt
d t nott
invent.
• Focuses on processes and not products and so
can take input from industries in other fields
• Targets get accepted faster
• Basis for training

878
 PEMP EMM502

Limitations
• Benchmarking has to be done continuously as
new technologies would create quantum perf
improvement.
• It needs a culture of improvement in place and
g
unless these basics are there like—good HR,,
good process controls, information systems etc it
could be disruptive
• Competitor benchmarking not very easy.

879
 PEMP EMM502

Areas to Benchmark
• Customer service level
• I
Inventory
t mgt,SCM
t SCM
• Purchasing gp practices
• Ancilliarisation
• Billi and
Billing d collection
ll ti
• Qualityy control process
Q p
• Warehousing and distbn
• T
Transportation
t ti

880
 PEMP EMM502

General guidelines
g idelines
• Do not go on a fishing trip---decide area to
benchmark do a thorough study of that area .
benchmark,
• Use company people. Small teams and
implementers.
implementers
• Don’t expect to learn about new products
• Respect confidentiality and be ready to
g info.
exchange
• Four phases are---Planning, Analysis,
Integration,Action

881
 PEMP EMM502

Process of Benchmarking

•
See the exhibit ---------------No 1

882
883
 PEMP EMM502

Some issues
iss es
• Vital to have top mgt support
• Training
• Team activity
• Ongoing
g g
• Structured approach is needed
• Best weapon against complacency

884
 PEMP EMM502

Contd
• Focus of benchmarking
– A benchmarking exercise generally does not cover
the entire range of another company’s process.
– See exhibit
exhibit-----------------No
No 2

Gap analysis
Helps in drawing a ‘spider’ chart of the company
See exhibit------------No
exhibit No 3

885
886
887
 PEMP EMM502

Contd----
Contd
• TQM
– Means having a system of mgt for total
quality.
q y It is a total, companywide
p y effort
through full involvement of the entire
workforce with a focus on continuous
improvement to achieve maximum possible
customer satisfaction
SO BENCHMARKING PLAYS A VITAL
ROLE IN THE ROAD TO TQM

888
 PEMP EMM502

Case St
Study
d

• Refer handout about SCM in Xerox

889
 PEMP EMM502

Business Process Re-

E i
Engineering
i

890
 PEMP EMM502

B i
Business process reengineering
i i

• Principles
Concepts
Applications
B
Benefits
fit and
d lilimitations
it ti off reengineering,
i i
Reengineering process and its relevance
to TQM

891
 PEMP EMM502

Definition
• According to Michael Hammer of the USA who coined
the word ‘re-engineering’,the
re engineering ,the definition is:
– “The fundamental rethinking and radical design of business
processes to achieve dramatic improvements in critical
contemporary measures of performance such as
cost,quality,service and speed”

– Radical redesigning involves tossing out existing

procedures and reinventing the process,
process not just
incrementally improving it. The goal is to achieve quantum
leaps in performance

892
 PEMP EMM502

Wh Re-engineering?
Why Re engineering?
• For organisations that want to survive and grow----
p
Improvement is a compulsion
p
• For thriving, Dramatic improvement is often the only way
to success
• Some of the symptoms that signal that it is time :
– Taking too long for the products to move its products from
conception to the market place as compared to competitors
– Budgeting process is too complex
– Service is not meeting customer needs
Success needs fundamental understanding of processes,creative
thinking to break away from old tradition and effective use of IT.

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T oe
Two examples
amples
• Pepsi embarked on a program of reengineering it’s key
business p processes such as sellingg an delivery,
y equipt
q p
service and repair, procurement
• In selling customer reps typically experience stock-outs
of as much as 25% of products by end of day.
• Many other routes wd return with overstock ,thus
increasing transport costs
• By redesigning the system to include hand held
computers,the
t th customer
t reps cd
d confirm
fi and d deliver
d li th
thatt
day’s order and also take a future order for the next
delivery to the customer

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Ins rance compan

Insurance company

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History
Histor
• The concept of re-engg has been around for two decades. Prodn
orgns have been doing concurrent engg, cellular manu, lean prodn,
pull system fms etc
etc..
• In recent times rapid advances in IT and its application have been a
major
j enabler of BPR.
• In 1990,Champy and Hammer presented the idead of BPR.They
coined the word in 1993.Their argument was that most business
processes had become antiquated and ineefective/inefficient and
hence needed to be completely redesigned. They advocated
RADICAL REDESIGN as compared to the incremental approach
associated
i t d with
ith CI AND TQM
TQM.

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Principles of Re
Re-engineering
engineering
• There are seven rules :
– Organise around outcomes ,Not Not tasks.So
tasks So hand-offs
hand offs get reduced
– Have those who use the output of the process perform the
process
– Merge information collection and subsequent processing into
one.
– Treat geographically dispersed resources as though they work
centralised
– Link parallel activities instead of integrating their results
– Put the decision point where the work is performed and build
control into the process
process.
– Capture information once—at the source

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 PEMP EMM502

Application
• Assuming that a co has decided that its` processes
are ineffective and inefficient,the foll are the major
steps the co shd embark on to redesign the process
ii. Develop business vision and process objectives
ii. Identify processes to be redesigned
iii
iii. U d t d and
Understand d measure existing
i ti process
iv. Identify IT levels
v. Design and build a prototype of the process

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 PEMP EMM502

E ample BPR at FORD

Example—BPR

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Essence of BPR
• At the heart of reengineering ,is the notion of discontinuous thinking
of organising and breaking away from the outdated rules and
fundamental assumptions that underlie operations
operations.Unless
Unless these
rules are changed, break-throughs in perf are extremely difficult
• Qualityy and customer service are increasingly
g y becoming g the p
pry
y
focus of any co. However the employees are more educated, want a
greater say in their careers. Old work/orgn structures and
technology which have not kept pace with the new customer/mkt
realities need to be completely overhauled. Otherwise there is a fear
of employees confusing the narrow goals of their depts for the larger
goals of the process/company.
process/company

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 PEMP EMM502

Three R’s of Re
Re-engineering
engineering
• Rethink
• Redesign
• Retool

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 PEMP EMM502

Req irement
Requirement
• The process selected must be a Core process which is very vital for
the success of the co and must also have great scope for
breakthrough improvements.
• We must also understand that Re-engineering involves massive lay-
offs and large cash outflows for IT and automation
Choice of critical process
Strong leadership
Cross-functional teams
IT
Clean slate philosophy
Process analysis

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 PEMP EMM502

Ser ice Ind

Service Industry
str
• Service fn puts an enormous pressure on the front line
employee
• Customer hostility persists despite speed and courtesy,
due to inability of service provider to maintain
consistency
• Also frequent problem is delay,
delay due to inability of service
employee to make pertinent and satisfying decisions
when confronted by an impatient customer
customer.
• So the concept of reengineering holds good promise in
service sector

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Contd-----
Contd
• Points to be addressed
– Make the customer the starting point for change
– Design work processes in light of orgn goals
– Restructure to support front-line perf
In achieving
g above three dimensions of the service orgn
g
would get involved
The human dimension
The work process dimension
The technology dimension

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Q alit and Reengineering

Quality
• Quality movement as understood has clearly brought out
the philosophy of encouraging participation, systematic
study, measurement and verification of results
• If re-engg is driven only by top mgt without support and
understanding of the rest of the orgn ,it may end up as a
failure.
failure
• So TQM is reqd to support BPR

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 PEMP EMM502

Continuous Improvement
p
vs BPR
• Both fall under the TQC umbrella
• One leads to incremental change and the other to
dramatic improvement
• While CI is a routine affair and the mainstay ,BPR
BPR is
necessary in certain situations when CI cannot deliver
the Leap
Leap-frog
frog results
results.
• There are major difference in approach and so FIRSTLY
it is very imp to investigate and appreciate the
problem.One has to decide whether a certain process
requires major surgery(BPR) or minor healing(CI)

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 PEMP EMM502

TQM and BPR

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 PEMP EMM502

CONTD-----
CONTD
• Major differences:
– Mgt involvement
– Intensity of Team member involvement
– Improvement goals
– Implementation
p approach
pp
– Magnitude of organisational change
– Extent of focus
– Dependence on IT systems

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 PEMP EMM502

The Re
Re-engg
engg process
• It is a six step plan;
– State a case for action-----Need & Vision statement
– Identify the process for reengg—Critical to
strategy most likely to succeed
strategy,most succeed, costs
costs,etc
etc
– Evaluate enablers---IT solutions,Orgn culture
– Understand the current process
process—Flow
Flow charting etc to
classify into VA,NVA,WASTE
– Create a new process design—Start
design Start with a clean
slate to eliminate ALL waste
– Implement the reengineered process
process—
Leadership,Support from line mgrs,Trg

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 PEMP EMM502

T l and
Tools dTTechniques
h i

• Inductive thinking
• Flow charting
• Creative Process redesign
• Process benchmarking g
• Simulation
• Reengg software

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 PEMP EMM502

St
Steps generally
ll ttaken
k

• Outsourcing one or more operations

• Eliminating a product line
• Reducing the number of suppliers
• D
Downsizing
i i
• Flattening the layers of mgt
• Investing in automated equipt
• Significant improvement of process flows

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 PEMP EMM502

R
Re-engg and
d TQM
• Michael hammer opines that the concepts are compatible and
actually complement each other
• TQM----contributed Team work,Worker
participation,empowerment,CFT,process analysis and
measurement,supplier
, pp involvement and benchmarking g
• Also TQM advocates CI whereas reengg is about radical change
thru process innovation
• Fi tl the
Firstly th process isi enhanced
h d until
til its
it useful
f l lif
life iis over ,att which
hi h
point it is reengineered.Then enhancement is resumed and entire
cycle repeats again.
• SEE THE FIG IN NEXT SLIDE—This is how both mutually reinforce
each other

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H
How TQM and
d re-engg fit ttogether
th

Q=Quality prog=tqm
Process p
perf
R
R=reengg
R reengg prog=bpr
prog bpr
Q

Time

913
 Comparison---TQM
p vs BPR
Similarities
Similarities BPR tqm
q
Basis of analysis processes processes
Perf measurement rigorous rigorous

Orgn change significant significant

Behavioural major major

change
Time reqd substantial substantial
914
 C td
Contd-----Differences
Diff

Level of change radical incremental

Starting point Clean slate Existing process
participation Top down Bottom up
T i l scope
Typical Broad cross
Broad,cross N
Narrow,within
ithi
functional-concept fns or system

risk high moderate

Primary enabler IT Statistics
Type of change Cultural and structural cultural
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 PEMP EMM502

Benefits of Re
Re-engg
engg
• Orgn can achieve radical changes in perf—cost,
cycle time,
time service,
service quality etc
• Boosts competitiveness thru simpler,leaner
processes
• Encourages NEW thinking
• Break thru improvements are at the heart of
E
Excellence
ll
g tool in the Globalised scene.
and the right

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Li it ti
Limitations off R
Re-engg

• It is not simple or easy. Requires enormous

amount of time and resources.
• Resistance to change g is a majorj issue and each
co has to evolve its own road map to sort out
this issue---the
issue the people who will be max affected
are the people you want to contribute
• Not
N t appropriate
i t ffor allll processes and
d allll orgns
• Must use IT.

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S mmar
Summary
• The details of ISO Quality Mgt Systems
h
have b
been di
discussedd
• Various types of Benchmarking and
methodology of the same have been
i t d
introducedd
• Definition of BPR;its methodology have
been introduced

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End of Session

919
 PEMP EMM502

Session 10

Class presentations
Assignment issues
Case study

920