1.

krishna-agrawala Teacher
Graduate School

Debater

Educator

2. Productivity of an organization is defined as the ratio of outputs produced by the organization

and the resources consumed in the process.
3. Here the output refers to the quantity of goods and services produced by the company, and
inputs refers to the quantities of resources such as labor, material, physical facilities, and
energy consumed for producing the same.
4. Productivity is used to assess the extent to which certain outputs can be extracted from a
given input. We can measure productivity for a single input resource such as manpower used,
or for multiple resources. There can be many different types of productivity measurement
depending on the type of resources considered.
5. Measures of productivity describe how well the resources of an organization are being used
to produce input. They are very useful in achieving and maintaining high level of
performance in any organization, particularly in improving the efficiency of various
operations within the organization as well as for the total organization. Productivity measures
are also used for planning, monitoring, and improving performance at national levels.
6. Productivity can be improved by increasing the outputs keeping the inputs constant, or by
giving the same quantity of outputs with reduced inputs, or by increasing outputs and at the
same time reducing inputs. We can do this by several methods such as:

○ Improving systems and methods of operations. Among other measures this includes
use of automation.

○ Improving planning and scheduling.

○ Improving control.

○ Improving motivation of people.

productivity
Definition
Relative measure of the efficiency of a person, machine, factory, system, etc.,
in converting inputs into useful outputs. Computed by dividing average output
per period by the total costs incurred or resources (capital, energy, material,
personnel) consumed in that period, productivity is a critical determinant of
cost efficiency.

Total Quality Management (TQM) System:

Learning objective of the article:
 1. Define and explain total quality management (TQM).
2. What are the advantages and disadvantages of total quality management.
1. Definition and explanation of Total Quality Management
2. Advantages
3. Disadvantages

Definition and Explanation of the concept of total quality

management system :
Total quality management (TQM) is an improvement program which provides tools
and techniques for continuous improvement based on facts and analysis; and if properly
implemented, it avoids counterproductive organizational infighting.
The most popular approach to continuous improvement is known as total quality
management (TQM). There are two major characteristics of total quality management
(TQM) (1) a focus on serving customers and (2) systemic problem solving teams made
up of front line workers. A variety of specific tools are available to aid teams in their
problems solving. One of these tools is benchmarking which involves studying
organizations that are among the best in the world at performing a particular task.
Perhaps the most important and pervasive TQM problem solving tool is Plan-do-Check-
Act (PDCA) Cycle. The plan do check act cycle is a systematic fact based approach to
continuous improvement.
Plan-do-Check-Act (PDCA) Cycle:
The Plan-Do-Check-Act (PDCA) cycle applies the scientific method to
problem solving. In the plan phase, the problem solving team analyzes
data to identify possible causes for the problem and then proposes a
solution.
In the Do phase, an experiment is conducted. In the check phase, the
results of the experiment are analyzed. And in the Act phase, if the
results of the experiment are favorable, the plan is implemented. If the
results of the experiment are not favorable, the team goes back to the
original data and starts allover again.
Perhaps the most important feature of TQM is that "it improves productivity by
encouraging the use of science in decision making and discouraging counter productive
defensive behavior. Thousands of organizations have been involved in total quality
management (TQM) and similar programs.

Advantages of Total Quality Management:

1. Improves reputation- faults and problems are spotted and sorted quicker (zero
defects)
2. Higher employee morale– workers motivated by extra responsibility, team work
and involvement in decisions of TQM
3. Lower costs – Decrease waste as fewer defective products and no need for
separate
4. Quality Control inspectors

Disadvantages of Total Quality Management:

1. Initial introduction costs- training workers and disrupting current production
whilst being implemented
2. Benefits may not be seen for several years
3. Workers may be resistant to change – may feel less secure in jobs
Real Business Example
Dramatic Improvement:
TQM is not just a big company phenomenon. Penril DataComm is a maryland designer
and producer of data communications and equipment. Before embarking on TQM, defect
rates were so high that the company was reworking or scrapping one third of everything
it made. Applying TQM techniques resulted in an 81% decrease in defects, an 83%
decrease in failures in the first three months of use, and a 73% decrease in first year
warranty repairs. TQM was credited with taking the company "from the brink of financial
disaster" to excellent financial health.
Source: "Poor Quality Nearly Short Circuits Electronics Company," Productivity, February
1993.

If you are not satisfied with our article about TQM and looking for more detailed articles
then use any search engine for the term "total quality management articles" for
more information about TQM system.
You may also be interested in other relevant articles:
1. Just-in-Time (JIT) Manufacturing and Inventory Control System
2. Kanban
3. Six Sigma
4. Business Process Reengineering (BPR)
5. Theory of Constraints (TOC)

Just in Time (JIT) Manufacturing and

Inventory Control System:
Learning objectives of the article:
1. Define and explain the concept of just in time manufacturing and inventory
control system
2. What are advantages and disadvantages of just in time manufacturing system.
Traditionally manufacturers have forecasted demand for their products into the future
and then have attempted to smooth out production to meet that forecasted demand. At
the same time, they have also attempted to keep everyone as busy as possible
producing output so as to maximize "efficiency" and (hopefully) reduce costs.
Unfortunately, this approach has a number of major drawbacks including large
inventories, long production times, high defect rates, production obsolescence, inability
to meet delivery schedules, and (ironically) high costs. Non of this is obvious-if it were,
companies would long ago have abandoned this approach.
Managers at Toyota are credited with the insight that an entirely new approach, called
just in time (JIT) was needed.
• Definition of Just in time manufacturing
• Just-In-Time concept
• Benefits / Advantages of just in time manufacturing system
• Limitations / Disadvantages of Just in Time Manufacturing
• List of Companies that use just in time System
Definition and Explanation of Just in Time
Manufacturing:
Just In Time (JIT) is a production and inventory control system in which materials are
purchased and units are produced only as needed to meet actual customer demand.
When Companies use Just in Time (JIT) manufacturing and inventory control system,
they purchase materials and produce units only as needed to meet actual customers
demand. In just in time manufacturing system inventories are reduced to the minimum
and in some cases are zero. JIT approach can be used in both manufacturing and
merchandising companies. It has the most profound effects, however, on the operations
of manufacturing companies which maintain three class of inventories-raw material,
Work in process, and finished goods. Traditionally, manufacturing companies have
maintained large amounts of all three types of inventories to act as buffers so that
operations can proceed smoothly even if there are unanticipated disruptions. Raw
materials inventories provide insurance in case suppliers are late with deliveries. Work in
process inventories are maintained in case a work station is unable to operate due to a
breakdown or other reason. Finished goods inventories are maintained to accommodate
unanticipated fluctuations in demand. While these inventories provide buffers against
unforeseen events, they have a cost. In addition to the money tied up in the inventories,
expert argue that the presence of inventories encourages inefficient and sloppy work,
results in too many defects, and dramatically increase the amount of time required to
complete a product.

Just-In-Time Concept:
Under ideal conditions a company operating at JIT manufacturing system would
purchase only enough materials each day to meet that days needs. Moreover, the
company would have no goods still in process at the end of the day, and all goods
completed during the day would have been shipped immediately to customers. As this
sequence suggests, "just-in-time" means that raw materials are received just in time to
go into production, manufacturing parts are completed just in time to be assembled into
products, and products are completed just in time to be shipped to customers.
Although few companies have been able to reach this ideal, many companies have been
able to reduce inventories only to a fraction of their previous level. The result has been a
substantial reduction in ordering and warehousing costs, and much more efficient and
effective operations. In a just in time environment, the flow of goods is controlled by a
pull approach. The pull approach can be explained as follows. At the final assembly stage
a signal is sent to the preceding work station as to the exact amount of parts and
materials that would be needed over the next few hours to assemble products to fill
customer orders, and only that amount of materials and parts is provided. The same
signal is sent back to each preceding workstation so a smooth flow of parts and
materials is maintained with no appreciable inventory buildup at any point. Thus all
workstations respond to the pull exerted by the final assembly stage, which in turn
respond to customer orders. As one worker explained, "Under just in time system you
don't produce any thing, any where, for any body unless they ask for it some where
downstream. Inventories are evil that we are taught to avoid".
The pull approach described above can be contrasted to the push approach used in
conventional manufacturing system. In conventional system, when a workstation
completes its work, the partially completed goods are pushed forward to the next work
station regardless of whether that workstation is ready to receive them. The result is an
unintentional stockpiling of partially completed goods that may not be completed for
days or even weeks. This ties up funds and also results in operating inefficiencies. For
one thing, it becomes very difficult to keep track of where every thing is when so much
is scattered all over the factory floor.
An other characteristics of conventional manufacturing system is an emphasize on
"keeping every one busy" as an end on itself. This inevitably leads to excess inventories
particularly work in process inventories. In Just in time manufacturing, the traditional
emphasize of keeping everyone busy is abandoned in favor of producing only what
customers actually want. Even if that means some workers are idle.

Benefits | Advantages of Just in Time Manufacturing

System:
The main benefits of just in time manufacturing system are the following:
1. Funds that were tied up in inventories can be used elsewhere.
2. Areas previously used, to store inventories can be used for other more productive
uses.
3. Throughput time is reduced, resulting in greater potential output and quicker
response to customers.
4. Defect rates are reduced, resulting in less waste and greater customer
satisfaction.
As a result of advantages such as those cited above, more companies are embracing
just in time manufacturing system each year. Most companies find, however, that
simply reducing inventories is not enough. To remain competitive in an ever changing
and ever competitive business environment, must strive for continuous improvement.
Real Business Examples
PCs Just In Time Management:
Del Computer Corporation has finally tuned its Just-in-Time system so that an order for
a customized personal computer that comes in over the internet at 9 AM. can be on a
delivery truck to the customer by 9 P.M. In addition, Dell's low cost production system
allows it to under price its rivals by 10% to 15%. This combination has made Dell the
envy of the personal computer industry and has enabled the company to grow at five
times the industry rate. How does the company's just in time system deliver lower costs?
"While machines from Compaq and IBM can languish on dealer shelves for two months
Dell does not start ordering components and assembling computers until an order is
booked. That may sound like no biggie, but the price of PC parts can fall rapidly in just a
few months. By ordering right before assembly, Dell figures it s parts, on average, are
60 days newer than those in an IBM or Compaq machine sold at the same time. That can
translate into a 6% profit advantage in components alone."
Source: Gray McWilliams, "Whirlwind on the web, "Business Week, April 7, 1997.

Slashing Process Time:

American Standards uses cell manufacturing to cut inventories and reduce
manufacturing time. At its plant, England, it used to take as long as three weeks to
manufacture a vacuum pump and another week to process the paper work for an order.
Therefore customers had to place orders in advance. "Today Leeds has switched to
manufacturing cells that do every thing from lathing to assembly in quick sequence. The
result is a break through in speed. Manufacturing a pump now takes six minutes."
Source: Shawn Tully, "Raiding a company's Hidden Cash," Fortune, August 22, 1994, PP 82-87.

Disadvantages of Just in Time Manufacturing System:

Implementing thorough JIT procedures can involve a major overhaul of your business
systems - it may be difficult and expensive to introduce.
JIT manufacturing also opens businesses to a number of risks, notably those
associated with your supply chain. With no stocks to fall back on, a minor disruption
in supplies to your business from just one supplier could force production to cease at
very short notice.
Real Business Example:
Toyota the Developer of JIT System
Just-in-time manufacturing system has many advantages, but they
are vulnerable to unexpected disruptions in supply. A production line
can quickly come to a halt if essential parts are unavailable. Toyota,
the developer of JIT, found this out the hard way. One Saturday, a
fire at Aisin seiki Company's plant in Aichi Prefecture stopped the delivery of all break
parts to Toyota. By Tuesday, Toyota had to close down all of its Japanese assembly line.
By the time the supply of break parts had been restored, Toyota had lost an estimated
$15 billion in sales.
Source: "Toyota to Recalibrate ,'" International Herald Tribune, February 8, 1997.

List of Companies that use just in time (JIT)

• Harley Davidson

• Toyota Motor Company

• General Motors

• Ford Motor Company

• Manufacturing Magic

• Hawthorne Management Consulting

• Strategy Manufacturing Inc.

If you are not satisfied with our article then search for the term just in time articles
using a search engine like Google.
You may also be interested in other relevant articles:
1. Kanban:
 2. Total Quality Management (TQM) System:
3. Six Sigma:
4. Business Process Reengineering (BPR):
5. Theory of Constraints (TOC):

Six Sigma:

Learning objective of the article:

1. Define and explain the concept of six sigma. Give an example.
2. What are advantages and disadvantages of six sigma.
3. Prepare a list of companies that have implemented six sigma
Definition and explanation of six sigma:
Motorola popularized the use of stringent quality standards more than 30 years ago
through a trade marked quality improvement program called six sigma.
Very simply, six sigma is a quality standard that establishes a goal of no more than 3.4
defects per million units or procedures. What does the name mean? Sigma is the
Greek letter that statisticians use to define a standard deviation from a bell curve. The
higher the sigma, the fewer the deviation from the norm--that is the fewer the defects.
At one sigma, two thirds of what-ever is being measured falls within the curve. Two
sigma covers about 95 percent. At six sigma, you are about as close to defect-free as
you can get. It is an ambitious quality goal! Although it may be an extremely high
standard to achieve, many quality driven businesses are using it and benefiting from it.
For example, General Electric realized approximately $8 billion in savings through its six
sigma program from 1999 to 2002, according to company executives. Other well known
companies pursuing this program include ITT industries, Dow chemical 3M Company,
American Express, Sony Corporation, Nokia Corporation and Johnson and Johnson.
Although manufacturers seem to make up the bulk of six sigma users, service companies
such as financial institutions, retailers and health care organizations are beginning to
apply it. What impact can it have? Let us look at an example.

Example:
It used to take well-mark Inc., a managed-care health care company, 65 days or more
to add a new doctor to its Blue cross & Blue shield association medical plans. Now thanks
to six sigma, the company discovered that half the process it used were redundant. With
those unnecessary steps gone, the job now gets done in 30 days or less and with
reduced staff. The company also has been able to reduce its administrative expenses by
$3 million per year, an amount passed on to consumers through lower health insurance
premiums.

Advantages and Disadvantages of Six Sigma:

Six Sigma has its both advantages and disadvantages, Following are some points
which we have examined:-
� Six Sigma aims to maximize customer satisfaction and minimize defects -
Globalization and instant access to information, products and services continue to
change the way our customers conduct business. Today's competitive environment
leaves no room for error. We must delight our customers and relentlessly look for new
ways to exceed their expectations. This is why Six Sigma Quality has become a part of
our culture.

� Six Sigma is far more in depth than this document has illustrated. It is a tool that if
used correctly, can identify key areas of business processes that need attention to lower
defect rates. One of the greatest advantages is that all the measured improvements
achieved through this technique can be directly converted into financial results. In fact,
more and more shareholders even require that Six Sigma method be implemented.

� In the sales field there is an old saying; "Eagles never fly with doves. But to find
angles you go through lots of doves." In today's world there is so much information on
turnover based on specific industries so baseline the norm should be easy to come up
with unless your industry is very special. Getting a sigma value is very easy as well with
your current date on how your company is doing. Change however may not be from a
process improvement unless management is willing to change as well.

� Research proves that firms that successfully implement Six Sigma perform better in
virtually every business category, including return on sales, return on investment,
employment growth and stock value growth. The strategy that has to be applied in
today's educational arena is a thoughtful concern on the part of the management to
understand customer needs and strive to reduce defects throughout all educational
processes.

� Most organizations embracing Six Sigma apply it without measuring the "buy-in"
(enthusiasm for Six Sigma) of their employees. In some types of operations this may be
critical. The performance of Six Sigma in many types of operations has never been or
cannot yet be measured. For example, if a company sees that Six Sigma has improved
the quality of its baseball cap production line, then it might presume that applying Six
Sigma to its engineering think tank will improve its creativity by the same degree.
Certainly any company, in a lawsuit involving the quality of its products, will proclaim its
quality programs at the forefront of its defense. This causes some skeptics to claim that
their organization has embraced Six Sigma only to look good in court. Whether this is
the case or not, the fact that the statement is believed reduces the "buy-in" by the
company's employees, which may reduce the ability of Six Sigma to improve quality. Six
sigma is no different than "reducing variation" or piece-to-piece consistency (at what
cost?). IS the reduction of variation the only solution or the choice of when to reduce.
Therefore, what is achieved by Six Sigma is piece-to-piece consistency or focus on parts.
Piece-to-piece consistency may be adequately required for large volume production only
when it is established by its "piece-to-system" consistency requirement (target thinking).

List of Companies that have successfully Implemented Six

Sigma
The following companies have implemented 6-sigma
3M, A.B. Dick Company, Abbott Labs, Adolph Coors, Advanced Micro Devices, Aerospace
Corp, Airborne, Alcoa, Allen Bradley, Allied Signal, Ampex, Apple Computers, Applied
Magnetics, ASQC, Atmel, Baxter Pharmaseal, Beatrice Foods, Bell Helicopter, Boeing,
Bombardier, Borden, Bristol Meyers - Squibb, Bryn Mawr Hospital, Campbell Soup,
Cellular 1, Chevron, Citicorp, City of Austin, TX, City of Dallas, TX, Clorox, Cooper Ind,
Dannon, Defense Mapping Agency, Delnosa ( Delco Electronics in Mexico), Digital
Equipment Corp, DTM Corp, Eastmen Kodak, Electronic Systems Center, Empak, Florida
Dept. of Corrections, Ford Motor Company, GEC Marconi, General Dynamics, General
Electric, Hazeltine Corp, Hewlett packard, Holly Sugar, Honeywell, Intel, Junior
Achievement, Kaiser Aluminum, Kraft General Foods, Larson & Darby, Inc, Laser
Magnetic Storage, Lear Astronics, Lenox China, Littton Data Systems, Lockhee Martin,
Loral, Los Alamos National labs, Martin Marietta, McDonnell Douglas, Merix, Microsoft,
Morton Int'l, Motorola, NASA, Nat'l Institute of Corrections, Nat'l Institute of Standards,
Nat'l Semiconductor, Natural Gas Pipeline Company of America, Northrop Corp, PACE,
Parkview Hospital, Pentagon, Pharmacia, PRC, Inc, Qualified Specialists, Ramtron Corp,
Rockwell Int'l, Rohm & Haas, Seagate, Society of Plastics Egineers, Solar Optical, Sony,
Star Quality, Storgae Tek, Symbios Logic, Synthes, Technicomp, Tessco, Texaco, Texas
Commerce Bank, Texas Dept. of Transportation, Texas Instruments, Titleist,
Trane, TRW, Ultratech Stepper, United States Air Force, United States Army, United
technologies, UPS, USAA, Verbatim, Walbro Automotive, Walker parking, Woodward
Governor, Xerox
You may also be interested in other relevant articles:

Business Process Reengineering (BPR):

Learning objective of the articles:
1. Define and explain the concept of business process reengineering (BPR)
2. What are the advantages and disadvantages of business process reengineering?
Definition and Explanation of the Concept:
Business Process reengineering (BPR) is a more radical approach to improvement
than total quality management (TQM). Instead of tweaking the existing system in a
series of incremental improvements, in process reengineering a business process is
diagramed in detail, questioned, and then completely redesigned to eliminate
unnecessary steps, to reduce opportunities for errors, and to reduce costs. A business
process is any series of steps that are followed to carry out some task in a
business. For example, the steps followed by your bank when you deposit a check are a
business process. While process reengineering is similar in some respect to TQM, its
proponents view it as a more sweeping approach to change. One difference is that while
TQM emphasizes a team approach involving people who work directly in the process,
process reengineering is more likely to be imposed from above and to use outside
consultants.
Process reengineering focuses on simplification and elimination of wasted efforts. A
central idea of process reengineering is that all activities that do not add value to a
product or service should be eliminated. Activities that do not add value to a product or
service that customers are willing to pay for are known as non value added activities. For
example moving large batches of work in process from one work station to another is a
non value added activity. To some degree just in time (JIT) involve process
reengineering as does total quality management (TQM). These management approaches
often overlap.
Process reengineering have been used by many companies to deal with a wide variety of
problem. For example, the EMI Records Group was having difficulty filling orders for its
most popular CDs. Retailers and recording stars were rebelling--it took the company as
much as 20 days to deliver a big order for a hit CD, and then nearly 20% of the order
would be missing. Small, incremental improvements would not have been adequate, so
the company reengineered its entire distribution process with dramatic effects on on-
time delivery and order fill rates. Reynolds & Reynolds Co. of Dayton, Ohio, produces
business forms. Filling an order of a customer used to take 90 separate steps. By
reengineering, the number of steps was slashed to 20 and time required to fill an order
was cut from three weeks to one week. Massachusetts General Hospital is even using
process reengineering to standardize and improve surgical procedure.
Employees resistance is a recurrent problem in Process Reengineering. The cause of
much of this resistance is the fear that people may lose their jobs. Workers reason that if
process reengineering succeeds in eliminating non value added activities, there will be
less work to do and management may be tempted to reduce the pay roll. Process
Reengineering, if carried out insensitively and without regard to such fears, can
undermine morale and will ultimately fail to improve the bottom line (i.e., profit). As with
other improvement projects, employees must be convinced that the end result of the
improvement will be more secure, rather than less secure, jobs. Real improvement can
have this effect if management uses the improvement to generate more business rather
than to cut the work force. If by improving process the company is able to produce a
better product at lower cost, the company will have competitive strength to prosper. And
a prosperous company is much more secure employer than a company that is in trouble.
Real Business Example:
Design by Computer:
One of the most time consuming and expensive business process is the design stage in
product development, which had traditionally relied on paper and drafting tools. Dassault
systems has met the challenge of reengineering this process and has created Catia, the
top selling CAD/CAM allows engineers to design and develop products on a computer.
This eliminates huge amounts of paper work and slashes the time required to design and
develop a new product. Catia is used by nearly every air craft manufacturer and was
used by Boeing to design the777. DaimlerChrysler used Catia to design the new jeep
Grand Cherokee. By debugging the production line on screen, the company saved
months and eliminated $800 million of costs.
Source: Howard Banks, "Virtually Perfect," October 4, 1999

The Dark Side of Process Reengineering:

Possible Disadvantage:
Process reengineering that is imposed from above and that results in disruptions and
layoffs can lead to cynicism. Eileen Shapiro, a management consultant, says that "
reengineering as often implemented can erode the bonds of trust that employees have
toward their employers. Nevertheless, many companies reengineer at the same time
that they issue mission statements proclaiming, 'Our employees are most important
assets, 'or launch new initiatives to increase 'employee involvement.' As one superior
executive, a veteran of reengineering, muttered recently while listening to his boss give
a glowing speech about working conditions at their organization, 'I sure wish I worked
for the company he is describing.' "

You may also be interested in other relevant articles:

1. Just-in-Time (JIT) Manufacturing and Inventory Control System
2. Kanban
3. Total Quality Management (TQM) System
4. Six Sigma
5. Theory of Constraints (TOC)
6. Just-in-Time (JIT) Manufacturing and Inventory Control System:
7. Just In Time (JIT) is a production and inventory control system in which materials
are purchased and units are produced only as needed to meet actual customer
demand. Under ideal conditions a company operating at just in time
manufacturing system would purchase only enough materials each day to meet
that days needs. Moreover, the company would have no goods still in process at
the end of the day, and all goods completed during the day would have been
shipped immediately to customers. Click here to read full article.
 8. Kanban:
9. A Kanban system is a means to achieve just in time (JIT) production. It works on
the basis that each process on a production line pulls just the number and type of
components the process requires, at just the right time. The mechanism used is a
Kanban card. This is usually a physical card but other devices can be used. Two
types of such cards are usually used. Click here to read full article.
10. Total Quality Management (TQM) System:
11. Total quality management (TQM) is an improvement program which provides
tools and techniques for continuous improvement based on facts and analysis;
and if properly implemented, it avoids counterproductive organizational infighting.
Click here to read full article.
12. Six Sigma:
13. Six sigma is a quality standard that establishes a goal of no more than 3.4
defects per million units or procedures. What does the name mean? Click here to
read full article.
14. Business Process Reengineering (BPR):
15. A business process is any series of steps that are followed to carry out some task
in a business. Process reengineering focuses on simplification and elimination of
wasted efforts. A central idea of process reengineering is that all activities that do
not add value to a product or service should be eliminated. Click here to read full
article.
16. Theory of Constraints (TOC):
17. Theory of constraints (TOC) is a management approach that emphasizes the
importance of managing constraints. A constraint or bottleneck is any thing that
prevents you from getting more of what you want. Study of constraints or
bottlenecks, keeping their record and taking necessary steps to improve them is
also known as bottleneck accounting. Click here to read full article.

PDCA , It is concept of Deming - Plan -do-check-act.

For every activity , we have a target or goal,
Example : In our company we have the activity to achieve the specific
requirements, Say achive 1000PPM in this month
1.Plan to have the activity , Plan is 1000 PPM,
2.Do - Measure of the processes.
3.Check - process is carried , the output of the process , the rejection should
allowed within 1000PPM, If we achieved within 1000PPM
- There is NO GAP what we have and required to do check and take action.
- There is GAP between what we have and what we achieved.
4. Act - Action should be required only the GAP.
We should analysis the process for the GAPs should apply QCC concept.
the tools used to be analysis based on the PDCA
Plan phase
1. Problem - Define the problem ( What is the problem taken , Target , Time
Frame etc ) Team Champion , co-ordinator, Leader and members etc.
2.Observation - How you are selected from the pareto 80:20 rule , to drill down
the major problem you have selected.- Gemba
3.Analysis - Analyse the problem with the team through brain storming with the
particular and selected problem and proceed with the Fish bone diagram from
level 1 to Level 3 (From the all the causes to identified causes) - In this stage we
have identified the causes of the problem by validating each identified casuses
through good/bad analysis for real root cause – Gemba.
Do phase
4. Action – Take corrective action and implementing the actions for identified
causes. Monitor the process , whether the problem is re-occuring, make action
plan in the 3W- 1H , To implementing and responsibility of each problem cases
and Each person have responsible to do the work done.
Check phase
5. Check : Check the corrected process , measure and analyse with data , of all
Before and after improvement.
Project the all the results through PQDCSM
Achivements through Productivity , Quality , Delivery, Cost , Safety and Morale
Act phase
6.Standardisation : Implement the results and standardize all the changes related
to process and quality checks, in 5W-1H, Drawing, SOP , Measures, Training ,
Audit etc.
7 . Conclusion : End of the analysis and presentation
Lesson learnt, analysis next problem and take as the project,Things gone right
and wrong in this project etc.
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18.

Re: How would you explain PDCA: Plan, Do, Check and Act methodology?

by Anjana Gaurav - Thursday, 2 October 2008, 01:33 AM

Thanks Saivelbabu for the elaborate answer.

PDCA Concept:

Plan (P): Define the objective. Clearly, describe the goals and policies needed to
attain this stage. Determine the conditions and procedures for the means and
methods that will be used to achieve the objectives.

Do (D): Execute the plan. Create the conditions and perform the necessary
teaching s and trainings to ensure understanding of the objectives and the plan.
Once the workers have understood their job perform the work according to these
procedures.
 Check (C): Check the results. The results are checked time to time to ensure
whether the progress of work is heading in the right direction, according to the
plan. Check the performance of the procedures, changes in the conditions or any
anomalies that may have appeared.

Act (A): Take the necessary action. Appropriate measure are taken if the results
do not conform to the plan as anticipated. Look for the causes of the anomalies
and difference sin the behaviors of the procedures and the conditions and change
them to bring the results in right direction.

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Re: How would you explain PDCA: Plan, Do, Check and Act methodology?

by S MEHANATHAN - Saturday, 29 November 2008, 01:55 AM

PDCA: Plan, Do, Check, Act

PLAN: Establish the objectives and processes necessary to deliver results
in accordance with the specifications.
DO: Implement the processes.
CHECK: Monitor and evaluate the processes and results against objectives
and Specifications and report the outcome.
ACT:
Apply actions to the outcome for necessary improvement. This means
reviewing all steps (Plan, Do, Check, Act) and modifying the process to
improve it before its next implementation.
What Does PDCA Cycle Mean?
A four-step problem-solving iterative technique used to improve business processes. The four steps
are plan-do-check-act. The PDCA Cycle can be used to effect both major performance breakthroughs
as well as small incremental improvements in projects and processes. Also known as the Deming
wheel or Shewhart cycle.

Investopedia explains PDCA Cycle

The concept was originally developed by statistician Walter Shewhart during the 1930s. It was
subsequently popularized by quality control pioneer Dr. W. Edwards Deming in the 1950s.

Productivity

What Does Productivity Mean?

An economic measure of output per unit of input. Inputs include labor and capital, while output is
typically measured in revenues and other GDP components such as business inventories.
Productivity measures may be examined collectively (across the whole economy) or viewed industry
by industry to examine trends in labor growth, wage levels and technological improvement.

Investopedia explains Productivity

Productivity gains are vital to the economy because they allow us to accomplish more with
less. Capital and labor are both scarce resources, so maximizing their impact is always a core
concern of modern business. Productivity enhancements come from technology advances, such as
computers and the internet, supply chain and logistics improvements, and increased skill levels within
the workforce.

Productivity is measured and tracked by many economists as a clue for predicting future levels of
GDP growth. The productivity measure commonly reported through the media is based on the ratio of
GDP to total hours worked in the economy during a measuring period; this productivity measure is
produced by the Bureau of Labor Statistics four times per year.

Exploring the Disadvantages of PDCA

Methodologies
Article by N Nayab (49,619 pts )

Edited & published by Linda Richter (33,603 pts ) on Jun 29, 2010

The major disadvantages of PDCA methodologies include oversimplification,

confusion in acronym, an inherent reactive nature, and its ignorance of the 'people'
element.
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PDCA's Oversimplification of the Improvement

Process.
 Walter Shewhart’s initial concept of plan-do-check-act (PDCA)
was an adaptation of the Japanese way of improving a singe-workstation tight-loop
production process through process control using continuous measurement and
statistical control techniques.
This Japanese adaptation, which remains the core of the PDCA methodology, has
serious drawbacks and gives rise to problems with PDCA.
1. Shewhart’s adoption was a simplified abstraction of the original Japanese model,
with the Japanese version remaining more detailed than Shewhart’s PDCA model.
Shewhart’s PDCA Cycle does not reflect activities such as sponsorship, leadership,
coordination, communication, education, benchmarking, and establishment of the
modified process required for successful improvement activities.
2. Shewhart’s work in 1920 took place when the Japanese were not very conversant in
English and vice versa. The adaptation from Japanese hence incorporates several
flaws and vagueness. Edward Deming ironed out many flaws in the 1950s, but some
miscommunication remains, especially the approach to the concept based on cultural
background.
3. The Japanese used PDCA for small-scale incremental improvements, whereas the
present adaptation uses PDCA as the driver of large-scale complex changes
Image Credit: Wikimedia Commons/Karn G. Bulsuk
Confusion in PDCA Acronym
The popularity of plan-do-check-act notwithstanding, the acronym of PDCA creates
confusion because “Do” and “Act” have the same meaning in English.
The Compact Oxford dictionary defines “Do” as
• Perform or carry out (an action).
• Achieve or complete (a specified target).
• Act or progress in a specified way.
• Work on (something) to bring it to a required state.
The Compact Oxford dictionary defines “Act” as
• Take action; do something.
• Take effect or have a particular effect.
• Behave in a specified way.
The difference in scope of “Do” and “Act” remains confusing for the ordinary
uninformed person. The correct word for “Act” is actually “Improve.”
Similarly, “Plan” has a limited range of meaning linguistically. The Compact Oxford
dictionary defines “Plan” as
• A detailed proposal for doing or achieving something.
• An intention or decision about what one is going to do.
Shewhart’s and Deming’s PDCA includes aspects in the "Plan" phase such as
creative or innovative thinking and handling complex adaptive systems, outside what
one normally associates with planning, again causing confusion to the uninformed.
PDCA’s Reactive Nature
A major disadvantage of PDCA methodologies is its inherently reactive nature.
Although PDCA has a circular paradigm, it assumes that everything starts with
Planning. This need not always be the case in real life situations, where at times
changing the rigid circular order might deliver better results.
The basic philosophy of PDCA is planning and undertaking an activity first and
responding to the drawbacks after implementation. PDCA tries to correct rather than
pre-empt mistakes, and does not encourage innovation or “out of the box thinking”
after the initial planning phase.
All these make PDCA inherently reactive in nature, unsuited to the highly competitive
contemporary business environment that demands proactive thinking and action.
PDCA's Ignorance of the "People" Element
Another major PDCA drawback is PDCA and change fatigue.
PDCA espouses the cause of continuous improvement. While this helps eliminate
mistakes, improve productivity, and does away with complacency, continuous
improvement entails continuous change--so the organization remains in a continuous
state of flux. People having to adjust to change on a continuous basis and work in an
uncertain environment encounter "change fatigue" or disenchantment, leading to
several problems.
• People become confused about the status of processes and procedures.
• Some people left out of the loop or unable to keep pace with the change continue
following outmoded practices when others adopt the changed practice, leading to
organizational dysfunction.
The success of any process or intervention depends on how the people involved
accept the same. PDCA assumes that people will use the cycle and make things
happen and makes no effort to include people. A good change management process
needs to cover people, process, and product. While PDCA looks into the product and
process, it ignores the people component of change.
References
• American Society for Quality. Plan–Do–Check–Act Cycle: http://www.asq.org/learn-
about-quality/project-planning-tools/overview/pdca-cycle.html
• Loon, Van, J. PDCA: Plan Do Check Act: http://knol.google.com/k/pdca-plan-do-
check-act#
• Mindtools.com. Plan-Do-Check-Act (PDCA):
http://www.mindtools.com/CXCtour/PDCA.php

Read more: http://www.brighthub.com/office/project-

management/articles/75929.aspx#ixzz1DDpfhcUX