NAME: Carlos Manuel S.

Abalos DATE: October 23, 2017

SUBJECT: BEC102-Total Quality Management SECTION: III-BSBA-H

CHAPTER 8 CONTINUOUS PROCESS IMPROVEMENT

INTRODUCTION

 TQM consists of finding new opportunities for improvements of processes, improving them,
measuring improvement, and then repeating the cycle again and again.
 In this chapter, we will learn the following concepts, techniques and tools that are used for
continuous process improvement:
o Juran’s Trilogy
o Kaizen
o Kaizen Blitz
o 5S Practice
o Three Mus
o The Seven Deadly Wastes
o Business Process Reengineering

JURAN’S TRILOGY

 The quality trilogy consists of the same three managerial processes and aimed at improving
quality of products and services. They are:
o Quality Planning
o Quality Control
o Quality Improvement
 Juran’s trilogy means “managing for quality is achieved by the use of three managerial processes
of planning, control, and improvement.
 Chronic waste region, according to Juran, is the region of high defects.
 Sporadic Spike is when the defects could reach 40 percent.
 To summarize Juran’s Quality Trilogy, there are three regions, chronic waste, quality
improvement, and new zone of quality control. Quality planning is completed before the operations
begin. Quality control is helpful to keep the fire under control, namely the defects under control.
The defects have emanated due to defects in quality planning. To reduce the high level of defects,
the organization initiates quality improvement which decreases the defect level.

KAIZEN

 Results of Kaizen, improvement without capital investment

o Productivity improvement of 40 percent
o Work In Progress (WIP) reduction of 70 percent
o Machine setup time reduction of 30 percent
o Space reduction for manufacturing by 40 percent and no additional capital
investment
  Kaizen is a Japanese word. It means gradual, orderly, and continuous improvement. It does not
need any capital investment, but it requires time and efforts of every employee in the organization,
right from the top management.
 Kaizen is a Japanese strategy for continuous improvement. Kaizen succeeded because it is a good
management practice

Two Activities of Kaizen

Activity Definition
It involves activities directed at maintaining current technological,
managerial, and operating standards. While efforts are going on for
Maintenance
improving processes, present activities should continue as per current
standards without any interruption. It should not come to a halt
This function aims at revising the current standards. Kaizen is
different from innovation. Innovation aims at dramatic improvement
of the existing processes, whereas, Kaizen aims at incremental
Improvement
improvement in the existing processes. Innovation is beyond the
concept of Kaizen. Kaizen has to be carried out along with
maintaining continuity in the current operations in the organization

 Kaizen Activities in Japan:

o Finding new ways or improving the ways in which the tasks are currently carried out
o Improving working environment
o Improving processes
o Improving capability of machinery through periodic as well as preventive
maintenance
o Improving usage of tools and fixtures
o Improvement of human resources through training and job rotation
o Improving plant layout
 It is the primary responsibility of the factory workers to maintain the existing system
 The top management and middle management make efforts in finding out improvement
opportunities
 The supervisor’s main responsibility is to maintain the current system.
 Middle management and top management should take keen interest in the following activities
towards Kaizen:
o Maximizing efficiency and productivity of employees as well as the plant
o Improving the quality of the process, plant and thereby the product
o Minimizing inventory levels and Work in Progress (WIP) – (WIP means that making
the product has started but not finished due to some reasons beyond the control of the
organization)
o Improving ergonomics to facilitate the human resources to maximize their output
with more comfort
o Call for suggestions from workers
o Enabling team work
 o Improving systems in the organization

Three Basic Principles of Kaizen

Principle Explanation
Japanese have developed the 5S tools for addressing the work place
Work place effectiveness
effectiveness which will be discussed later in detail in this chapter
Kaizen is achieved through application of 5S tools for workplace
effectiveness and elimination of three MUs:
 Muda – Waste
 Muri – Strain
 Mura – Discrepancy

The wastes are not free but have been paid for by the organization,
since those who produce wastes also get paid and the material wasted
costs money. The waste, strain and discrepancy in respect of the
Eliminating waste, strain and following to be reduced and finally eliminated:
discrepancy  Human resources
 Production volumes
 Inventory (materials)
 Time
 Working space
 Machinery
 Techniques
 Facilities
 Tools and jigs
 Thinking
Kaizen stresses standardization of the processes, materials,
machinery, etc. with the following objectives:
 Represent the best, easiest, and safest way to carry out a job in the
form of operating procedures and work instructions
 Represent the best way to preserve know-how and expertise and
standardize the procedures for the same
 Evolve effective means to measure performance and standardize
Standardization
the same
 Standardize all procedures that are used in the organization for
maintenance and improvement of process
 Standardize the training programs
 Standardize the audit for diagnosing problems
 Standardize the procedures for preventing occurrence of errors and
minimizing variability

PDCA AND 7 QUALITY TOOLS

  Kaizen advocates usage of seven quality tools for problem solving. It also calls for using PDCA
cycle for improvement of processes. It encourages forming cross-functional teams for
improvement. The team should identify improvement opportunities and implement them by
following the PDCA cycle for effectiveness

GOAL OF KAIZEN

 Kaizen is implemented not for profit but for quality

 The success of Kaizen should be measurable through its impact on the customer satisfaction
 Kaizen will be successful only when it is process-oriented
 It is important to recognize that any organization will have problems and hence the employees
should be encouraged to admit when there is a problem.
 A suggestion system is an integral part of Kaizen
 Kaizen should be prioritized based on the impact on customers
 Kaizen is a problem-solving tool based on cross-functional team and collaborative approach
 Kaizen is basically for improving the processes in the organization.
 Collaboration between the cross-functional team, the process owners (those who carry out the job
regularly) and the management is essential for success of Kaizen
 Quality Circles can become part of Kaizen since it is a group oriented suggestion system.

Kaizen Implementation

 There are 2 ways organizations embrace Kaizen:

Ways Explanation
The management constitutes an Apex Quality Council which
oversees continual and gradual improvement in the processes. For
each improvement project, specific teams – PAT are constituted with
specific goal. The improvement teams use the seven QC tools for
Gradual Improvement of
problem solving. They use 5S tool for reorganizing work places of
Processes
the factory for their effectiveness. They reduce or eliminate three
MUs They will use PDCA cycle to evolve and implement
improvement plans. Thus, it is a long-term exercise for every process
improvement
It is a quick improvement methodology. A large number of
organizations embark upon Kaizen Blitz (events) to unleash
employee creativity and dramatically improve the operations
overnight. It is completed in a single week. The solutions are
implemented quickly.
Kaizen Blitz
While Kaizen in the traditional sense is aimed at creating a perfect
production line, then goal of Kaizen Blitz is simply to create a better
production line . it is also known as Kaizen Workshop which targets
a particular work place. A cross-functional team is formed
 comprising of managers, supervisors, workers, and sometimes
marketing and finance personnel and even consultants.

 After Toyota achieved Just-In-Time production, they started looking at their vendors. Their
autonomous study group was formed under Taiichi Ohno. The group visited Gemba meaning
workplace of a vendor each month and conducted Gemba Kaizen for three or four days. This proved
to be very effective.
 Whether it is a Kaizen Blitz or Kaizen in the traditional sense, it involves the following:
o Application of 5S for improving workplace effectiveness
o Reduction and finally elimination of three MUs
o Standardization of effective methodologies for carrying out the work

Start

Select process for improvement

Study process flowchart

Identify problems and wastes

Apply 5S for workplace

Remove 3 MUs

Revise standardized
methodologies

Applying Kaizen

5S PRACTICES

 5S is a management tool focused on fostering and sustaining high quality housekeeping. A perusal
of these 5S practices (which are also called 5S tools), may give an impression that they are very
simple and mundane, but practicing them meticulously and correctly will definitely add to
improvement of quality in the organizations.
Purpose of 5S tools

Tool Purpose
Seiri (sort) Separate out all the unnecessary things and eliminate them
Arrange the essential things in order, so that they can be easily
Seiton (straighten)
accessed
Seiso (scrub) Keep machinery and working environments clean
Seiketsu (systematize) Make cleaning and checking a routine practice
Shitsuke (standardize) Standardize the previous four steps

The 5S practices are:

Tool Purpose
The objective of seiri is to sort and throw away unnecessary items.
Separate tools, machinery, products, inspection, work in progress,
and documentation into necessary and unnecessary and discard
unnecessary items.
Seiri – sort
This tool is about organizing things. It advocates proper organization
of entities used in the organization so that it does not cause strain in
the working and improves productivity.
The purpose of this tool is to arrange necessary items in a neat, proper
manner so that they can be easily retrieved for use and to return them
to their proper locations after use. For easy and fast access when
needed, everything has a place and everything in its place.

Neatness is not only cleanliness and organization but also, systematic

working. It is a measure of efficiency. It also calls for clarity in the
organization. It prevents people from searching for things and
wasting their time. The following has to be adopted for enabling
neatness in the organization:
Seiton – straighten  Plan to arrange neatly – the management should plan to arrange
everything at the appropriate places in appropriate manner. Always
the problem lies in retrieving things. Some of the problems in
retrieving things are:
o Not knowing the correct name of the things
o Not sure where things are kept
o Storage site at a far off place
o Storage sites scattered all around
o Repeated visits to far off places for taking and putting back
o Hard to locate the things since the box contains many other
things
 o Storage location and items are not labeled
o Thing is not there, but not clear whether the stock is
exhausted or somebody is having it.
o No distinction between good parts and defective parts, all
look same
o Too wide to carry
o Too heavy to carry
o No trolleys to carry huge items
o Improper design of path ways with a lot of obstructions
 Decide where things to be stored – the organization should have
a name for every item and a place for each item to be stored.
Similarly, each tool, each material, each document or file should have
its address known to the users. The following procedures should be
adhered to:
o Everything should have a name
o A place for everything and everything in its place
o Quick identification and retrieval mechanism
o Safe storage and transfer
o Height consideration for the storage of items depending on
the frequency of their use
 Be consistent in following the rules – it should be the discipline on
the part of the employees to follow the rules which they made for
themselves
The objective of the seiso tool is to clean and inspect the respective
work places thoroughly so that there is no dust on the floor,
Seiso – scrub
machinery, and equipment. Keep machinery and work environment
clean.
The objective of this tool is to maintain high standards of work place
organization by keeping everything clean and orderly at all times.
Develop routine practices for cleaning and checking

Visual management is an effective means for systematic workplace

organization. It is a technique by which visitors as well as the
Seiketsu – systematize employees understand where to keep things like the marked car
parking lots, information about lubrication oil written on the
machine, like what type is used, what color, what grade, when to
change and where it is available, etc. it also includes signboards.
There should also be indications for abnormally hot spots or high
voltage in machinery. Thus, visual management is self-contained and
understandable instruction painted neatly at the right places.
The objective of this tool is to make the previous four steps part of
the daily routine and to observe discipline through continuous
Shitsuke – standardize
practice. Follow procedures and standardize continuously to improve
processes and reestablish standards.
 Discipline is the fundamental requirement of success for any
organization. Discipline will come only with repeated instructions,
coaching, and training.

Self-discipline is important because it reaches beyond discipline and

guarantees the continuity of a daily routine.

5S CERTIFICATION

 National Productivity and Competitiveness Council (NPCC) of Mauritius offers 5S Certification.

The NPCC Certification was introduced in April 2002. It is aimed at developing and assisting the
productivity culture across Mauritius.
 NPCC 5S Certification, the Process:
o A team of 5 members will audit the Gemba (work place) proposed for certification.
Three audits, spread over the period of one year will be conducted.
o The audited organization should keep the following relevant information:
 General background of the organization
 Sections for departments where 5S is applied
 Photographs of the section or the department where 5S is applied
 Tangible and intangible benefits gained
 Documented proof: support structure for 5S (like a formal 5S
coordinator), training on 5S conducted and attendance sheets, standards
(for color codes, etc.) and proof of regular activities
o Following three random audits and on the basis of the audit report, eligibility of the
5S certificate will be considered
o A certificate will be awarded by the National Productivity and Competitiveness
Council and Kaizen Institute (Africa, Asia, and Pacific) to any organization, which has
successfully implemented 5S practices.

THE SEVEN DEADLY WASTES

 Toyota identified the following seven types of wastes as the most common in the industry

Waste Explanation
This occurs due to failure of production planning when money is
Overproduction waste
blocked in the unsold products.
Work-In-Progress (WIP) is a direct measure of quality of the
organization. A product is nearly completed but waiting for a
particular part to arrive from another country. Hence the product
cannot be shipped. This is WIP and an example of waste due to
Waste due to waiting
waiting. This can occur at any stage of manufacturing due to poor
planning, organizing as well as lack of dynamism in making alternate
arrangements when a particular man, machine, or material is not
available due to unforeseen circumstances
 The plant layout should be well organized such that there is no back
and forth movement anywhere. If there is no conveyor, the goods or
Transportation
semi-finished products should be transported using trolleys or carts.
The distance travelled should be kept at a minimum.
The machinery should be kept in smooth working condition by
periodic and preventive maintenance to eliminate processing waste.
Processing waste If a process is held up due to breakdown of machinery, money is lost.
Furthermore, appropriate tools and fixtures should be provided so
that the time taken for manufacturing is optimum
Supply chain management should be such that there are no excess
Inventory waste
materials. Every part should be accounted to avoid inventory waste.
As Watts Humphrey says, the purpose of driving is to reach the
Waste of motion
destination and not to spin the wheel
Product defects The defective parts or supplies cause loss of money

BUSINESS PROCESS REENGINEERING

 BPR is undertaken essentially to result in a quantum jump in performance of processes. BPR is

synonymous with innovation because it is more than just automating or applying Information
Technology to the existing processes or operations. It will bring in benefits to all the stakeholders
of the organization.
 BPR is the fundamental rethinking and radical redesign of business processes to achieve dramatic
improvement in critical, contemporary measures of performance, such as cost, quality, service, and
speed.
 The objective of BPR is to reduce the cost of maintaining quality, improving service features,
and delivering the products and services fast.

Fundamental Rethinking

 BPR is an opportunity for innovative persons to decide after due considerations, which processes
are redundant and make a recommendation according to management.

Radical Redesign

 The reengineering team should question fundamentally the necessity to follow the existing
procedures or methods or use of machinery and should not care to throw all of them and start afresh.

How to Carry Out Reengineering?

 The five phases of reengineering cycle are given below:

o Planning
o Process study
o Study of the best practices
o Redesign
o Implementation

Information Technology
  The emphasis is in finding out innovative processes and by the way using IT an certainly not the
other way round, i.e. redesigning the process only to use IT in spite of no visible benefits.

BPR AND TQM

 The two approaches namely TQM and BPR neither contradicts nor compliments each other
because they are two parts of the same approach. AT &T illustrates this well in reengineering
handbook, which posits business reengineering as a fundamental component of total quality
approach. Therefore, total quality is an objective, TQM is a means to achieve it and BPR is an
important tool within the TQM technology. This observation makes the relationship between TQM
and BPR crystal clear. While BPR is a tool, TQM is an umbrella concept involving many other
strategies.