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GOAL To give the detailed information on TQM – tools and techniques for TQM will be known.
Learning Objective 1. 2. 3. Student will clear principles and practices of TQM Student will learn tools and techniques used in TQM Students will learn the procedure of implementation of TQM
B.TECH. DEGREE COURSE
SCHEME AND SYLLABI (2002-03 ADMISSION ONWARDS) MAHATMA GANDHI UNIVERSITY KOTTAYAM KERALA
TOTAL QUALITY MANAGEMENT (ELECTIVE - III) M 806-7 3+1+0 Goal To give the detailed information on TQM Tools and Techniques for TQM will be known. Module 1 Introduction – Leadership Concepts – Customer Satisfaction – employee involvement Module 2 Continuous Process Improvement – Kaizen, Reengineering, PDSA cycle, Juran Trilogy – Supplier Partnerships – Quality Cost Module 3 Statistical Process Control (SPC) – Pareto Diagram, Cause – and – Effect diagram, check sheet, histogram. Benchmarking – Quality Function Development – Failure mode and Effect Analysis (FMEA) Module 4 Total Quality Control (TQC) – Quality Circles – Poka – Yoke- Just–in-Time (JIT)- KANBAN - ‗5-5‘ Module 5 Implementing procedure of TQM - case studies References 1. Besterfield, Total quality Management, Person Education 2. Besterfield, Quality Control, Prentice - Hall 3. Arora K.C, TQM & 1S0 14000, S K Kataria & Sons 4. Jain & Chitale, Quality assurance and Total quality management, Khanna Publishers. 5. Mitra, Quality control & improvement, Person Education
CONTENTS 1.3.5.Statistical Process Control 3.4.Continuous process improvement 2.1. Module III 3.Employee Involvement 1.2.Deming’s 14 Points 2.6.Gurus of TQM 1.6.Reengineering 2.Supplier Partnership 2.Cause and Effect Diagram 3.2.2.Histogram 28 28 29 30 30 17 17 18 21 23 25 26 5 6 7 10 11 14 4 .Pareto Diagram 3.3.1.Leadership concepts 1.PDSA Cycle 2.Kaizen 2.5. Introduction 1.Check Sheet 3.7.Juran Trilogy 2. Module II 2.Quality Cost 3.Customer Satisfaction 184.108.40.206.3.1. Module I 1.
7.6. SUNDARAM BRAKE LININGS 5.Just in Time 4. Module IV 4.5. MOTHERSON SUMI 5. INDIA PISTONS LIMITED 5. RAMESH GENTS’ HAIR STYLIST.6.3.5.Failure Mode and Effect Analysis 4.Benchmarking 220.127.116.11.KANBAN 5.1.Quality Function Deployment 3. CHENNAI 31 36 39 46 48 51 53 55 57 58 60 61 63 68 70 5.1. SONA KOYO SYSTEM LIMITED 5.3.4.Poka yoke 4.7.Quality Circles 4. QFD.Total Quality Control 4.A CASE STUDY 5 . Module V – Case Studies 5.2.8. MAX MACHINES 5.
Introduction: Total Quality Management (TQM) is the art of managing the whole to achieve excellence. 5. Do it right the first time & every time.wide challenge that is everyone‘s responsibility. statistical process control (SPC). An unwavering focuses on the customer. An annual quality improvement program is established & involves input from the entire work force. both internally & externally. 6. Key to an effective TQM programme is the focus on the customer. An excellent place to start is be satisfying internal customer. set long term goals. A committed & involved management to provide long-term top-bottom organizational support. for customer satisfaction is the most important consideration. Continuous improvement of the business & production process. Establish performance measure of the process.MODULE – I 1. 2. It is the application of quantitative methods of human resources to improve all the process within an organization & exceed customer needs now & in the future. There must be a conditional striving to improve all business & production process. Management must participate in the quality program. Treating suppliers as partners. Effective involvement & Utilization of the entire work force. & other appropriate quality improvement stills so they can effectively participate on project teams. TQM requires six basic concepts: 1. TQM is an organization. 3. order entire 6 . A quality council must be established to develop a clear vision. Quality improvement projects such as on-time-delivery. 4. All personnel must be trained in TQM. & direct the program.1. Those affected by the plan must be involved in its development & implementation.
absenteeism & customer satisfaction should be determined for each functional area. percent non-conforming. Senior managers must be visibly & actively engaged in the quality effort by serving on teams. departments within the organization & plants within the organization. Performance measures such as uptime. cycle time. Role of TQM Leaders: Everyone is responsible for quality. productivity. The supplier quality must be outstanding. teamwork. especially senior management & the CEO: however only latter can provide the leadership system to achieve results. Leaders need to give their employees independence & yet provide a secure working environment – one that encourages & rewards success. The focus should be on quality & lifecycle costs rather than price. wants. scrap reduction & supplies management are good places to begin. customer satisfaction. Benefits of TQM are improved quality. A partnering relationship rather than an adversarial one must be developed. The purpose of TQM is to provide a quality product and / or for service to customer which will in turn increase productivity & lower cost. customer satisfaction. Senior management must practice the philosophy of Management by Wandering Around (MBWA). employee participation. communication. suppliers. coaching teams as well as teaching seminars. Effective Leadership begins on the inside & moves out.2. & abilities of people. Management should get out of the office & visit customers. A very important role 7 .the basic needs.Leadership Concepts In order to become successful leadership requires an intuitive understanding of human nature. profitability & market share.efficiency. which is developed by good habits & ethics. working relationships. Quantitative data are necessary to measure the continuous quality improvement activity. 1. employee satisfaction. It is important that a leader‘s character & competence. Senior management has numerous responsibilities. billing error rate.
& interaction with the quality commodity. there must be external activities with customers & suppliers. In fact. advertising in trade magazines. The objective is to create awareness of the importance of TQM results in an ongoing manner. Customers that are satisfied will increase in number buy more & buy more frequently. Implementation: The TQM implementation process begins with senior management & most important. An organizations success depends on how many customers it has. focus groups & surveys. how much they buy.Customer Satisfaction The most important asset of any organization is its customers. In addition to formal education managers should visit successful TQM organizations.of senior managers is listening to internal & external customers & suppliers through visits. the CEO ‗s commitment. indifference & lack of involvement by senior management are frequently cited as the principal reason for the failure of quality improvement efforts. This information is translated into core values & process improvement projects. Senior management needs to be educated in the TQM concepts. In addition to internal efforts. Customers Front line representatives Functional Operational Areas Senior Managers CEO Figure 1. & how often they buy. Leadership is essential during every phase of the implementation process & particularly at the start.1: Organizational Diagram 8 .3. 1. the media. read selected articles & books & attend seminars & conferences. Another important role is communication.
The importance of customer satisfaction is not only due to national competition but also due to world wide competition. because satisfied customers will lead to increased profits.Satisfied customers also pay their bills promptly. The most successful TQM programs begin by defining quality from the customer‘s perspective. TQM implies an organizational obsession with meeting or exceeding customer expectations. not increasing profits must be the primary goal of the organization. which includes in-time delivery & outstanding service. Understanding the customer‘s need & expectations is essential to winning new business & keeping existing business. Increasingly. which greatly improves cash flow – the life blood of any organization. The organizational diagram simplifies just how important the customer is to any organization. Customer satisfaction. An organization must give its customers a quality product or service that meets their needs at a reasonable price. A simple definition of customer satisfaction is illustrated by the Teboal method or called Teboal model Figure 1. To attain this level. It is the most important considerations. the organization needs to continually examine their quality system to see if its responsive to ever-changing customer requirements. The total satisfaction is achieved 9 . & the square depicts the product or service offered by the organization.2: Teboal Model The customer‘s needs are represented by the circle. so that customers are delighted. manufacturing & service organizations are using customer satisfaction as the measure of quality.
whether it be engineering order processing.when the offer matches the need. provides a product or service. There are two distinct types of customers – external & internal. or the circle is superimposed on the square. One basic concept of TQM is an unwavering focus on customers. & get it is far from simple. An external customer can be defined in many ways. values & expectations are constantly changing & becoming more demanding. or one who influences the sale of the product or service. An internal customer is just as important. As customer satisfaction is subjective. An American Society for Quality (ASQ) survey on end user perceptions of important factors that influenced purchases showed the following ranking 1. both internal & external. it is hard to measure. Price 6. Performance 2. Every function. This concept implies that there is no acceptable quality level because the customer‘s need. Continuous process improvement is one of the basic concept of TQM. Warranty 5.supplier chain by helping workers guarantee that the end product or service fully satisfies the end user. Every person in a process is considered a customer of the preceding operation. The goal is to cover the expected performance level better than the customers. such as the one who uses the product or service. The leader‘s role is to process work through the internal customer. has an internal customer – each receives or service & in exchange. or production. Features 3. the one who purchases the product or service. Service 4. Customer satisfaction seems simple enough. Reputation 10 . Customer satisfaction is not an objective statistic but more of a feeling or attitude.
Employee involvement improves quality & increases productivity because Employees make better decisions using their expert knowledge of the process. Listening to the voice of customer can be accomplished by numerous information collecting tools.Customer feedback must be continually solicited & monitored. but survey results shows that this factor is usually in the middle of ranking. It is a mean to better meet the organization‘s goals for quality & productivity at all levels of organizations. questionnaires.4. measure the effectiveness of program implementation. customer visits. 1. Employee involvement is not a replacement for management nor it is the final word in quality improvement. focus groups. employee feed back & American Customer Satisfaction index. The success of survey is directly related to the quality of the planning. empowering then & bringing then into the decisionmaking process provide the opportunity for continuous process improvement. report cards. Managers must create the environment for individuals to motivate themselves. identify trends. actually both go hand . They change their minds. Customers continually change.Employee Involvement Employee involvement is one approach for improving quality & productivity. innovations & creative thoughts of employees can make the difference between success & failure competition is so fierce that it would be unwise not to use every available tool. An initial step a manager should take in initiating employee improvement is to survey their employees to determine their current level of perceived empowerment. Involving employees. identity needed improvements & increase communication effectiveness. Retaining the existing customers is more important than satisfying the customers.in – hand. their expectations & their suppliers. Management thinks that good pay is the number one want of the employee. The untapped ideas. the internet. Surveys help managers assess the current state of employee relations. The principal ones are comment cards. 11 . toll free telephone lines.
Employees all more likely to implement & support decisions they had a part in making.
Employees are better able to spot & pinpoint area of improvement. Employees are better able to take immediate corrective action. Employee involvement reduces labour management friction by encouraging more effective communication & co-operation.
Employee involvement increases morale by creating a feeling of belonging to the organization.
Employees are better able to accept change because they control the work environment.
Employees have an increased commitment to unit goals because they are involved.
1.5.Gurus of Total Quality Management 1) Shewhart Walter.A.Shewhart, PhD, spent his professional career at Western Electric & Bell Telephone laboratories. He developed control Chart theory with Control Limits, assignable & chance causes of variation, & rational subgroups.
Figure 1.3: Walter.A.Shewhart In 1931 he authored Economic control of Quality of manufactured product, which is regarded as a complete & through work of the basic principles of
quality control. He also developed the PDSA cycle for learning & improvement.
Deming W.Edward Deming, PhD was a protege of Shewhart. In 1950, he taught statistical process control & the importance of quality to the leading CEO‘s of Japanese industry. He is credited with providing the foundation for the Japanese quality miracle & resurgence as an economic power. Deming is the best known quality expert in the world. His 14 points provide a theory for management to improve quality, productivity, & competitive porn. He has
Figure 1.4: W.E.Deming authored a number of books including ―Out of the crises & Quality, Productivity & Competitive Position‖ as well as 161 scholarly studies. 3) Juran Joseph.M.Juran, PhD worked at Western Electric from 1924 to 1941. There he was exposed to the concepts of Shehart. Juran travelled to Japan in 1954 to teach quality management. He emphasized the necessity for management at all levels to be committed to the quality effort with hands-on involvement. He recommended project improvements based on return on investments to achieve breakthrough results. The Juran trilogy for managing quality is
carried out by the three inter related processes of Planning, Control & Improvement. 4) Feiganbaum. Armand.V.Feigenbaum, PhD, argues that total quality control is necessary to achieve productivity, market penetration & competitive advantage.
Figure 1.5: Feiganbaum Quality begins by identifying the customers requirement & ends with a product or service in the hands of a satisfied customer was he concept. 5) Ishikawa Kaoru Ishikawa, PhD studied under Deming, Juran & Feignbaum. He is best known for the development of the cause & effect diag. He also developed Quality circle concept. 6) Crosby Philip.B.Crosby authored ―Quality is free.‖ He argued that ― doing it right the first time‖ is less expensive than the cost of detecting & correcting non conformities. He also authored ―Quality is free‖ which contains his for
absolutes of quality management. 7) Taguchi Genichi Taguchi, PhD developed his loss function concept that combines cost, target, & variation into one metric. Because the loss function is reactive, he developed the signal to nose ratio as a pro-active equivalent. the corner stone of Taguchi‘s philosophy is the robust design of parameters &
tolerances. 15 . Organizations must develop a long-term view of at least ten years & plan to stay in business by setting long – range goals. 5) Improve constantly & Forever the system. They must provide supervisors with training in statistical methods & these 14 points so the new philosophy can be implemented. Innovation is promoted to ensure that the product or service does not become absolute. Improving supervision is management‘s responsibility. because price has no meaning without quality. The organization must concentrate on defect prevention rather than defect detection 4) Stop Awarding Business Based on Price Alone The organization must stop awarding business based on the low bid.Deming’s 14 points 1) Create & Publish the Aims & Purposes of the Organization The statement is a forever changing document that requires input from everyone. Customer satisfaction is the number one priority. 1. The goal is to have single suppliers for each item to develop a long tern relationship of loyalty & trust thereby providing improved products & services. Management must take made responsibility for problems by actively finding & correcting problems so that quality & productivity are continually & permanently improved & costs are reduced. 7) Teach & Institute Leadership.6. It is built on the simplification & use of traditional design of experiments. 6) Institute training. Organizations must seek never ending improvements & refuse to accept non-conformance. Management must allocate resources to train employees to perform their jobs in the best manner possible. 2) Learn the New Philosophy Top management & everyone must learn the new philosophy.
10) Eliminate Exhortations for the work force. 16 . & not knowing job. & Create a climate for Innovation. Fear is caused by a general feeling of being powerless to control important aspects of one‘s life. work groups & staff areas to achieve the aims & purposes of the organization. performance appraisals. By restoring pride everyone in the organization will be working for the common good. without a method. Improvements in the process cannot be made unless the tools & methods are available. 13) Encourage Education & Self-Improvement or Everyone. effective communication & team work. 12) Remove Barriers That Rob People of Pride of Workmanship. Exhortations that ask for increased productivity without providing specific improvement methods can handicap an organization. management must learn the capabilities of the processes how to improve them. Create Trust. they will grow the fullest extent of their job. management must learn & institute methods for improvement. When worker are proud of their work. 11) a) Eliminate Numerical Quotas for the work force. Internal goals set by managements. Quotas should be replaced with statistical methods of process control. and ignorance of organization goals. Goals should be set that are achievable & are committed to the long-term success of the organization.8) Drive out Fear. poor supervision. Groups. b)Eliminate Management by Objective Instead of management by objective. All the different areas should work together. Quotas & work standards focus on quantity rather than quantity. 9) Optimize the Efforts of Teams. It is caused by a lack of job security. Management must encourage open. Instead of quotas. & Staff Areas. possible physical harm. are a burlesque. Driving fear out of the workplace involves managing for success. Management must optimize the efforts of teams.
It has to create a corporate structure to implement the philosophy. 14) Take Action to Accomplish the Transformation.A long term commitment to continuously train & educate people must be made by management. Management must be committed. involved & accessible if the organization is to succeed in the implementation of new philosophy. Management has to accept the primary responsibility for the never-ending improvement of the process. A cultural change is required from the previous ―business as usual‖ attitude. Deming‘s 14 points & the organization‘s mission should be the foundation of the education program. 17 . Everyone should be retained as the organization requirements change to meet the changing environment.
(i) (ii) (iii) (iv) (v) 2. Basically Kaizen means small improvements but carried out on a continuous basis of involving all the people in the organization Kaizen requires very little or sometimes no investment.2. Reduce Resources.1. There are five basic way to improve process. efficient & adaptable. Because organization exists to serve the customer. Kaizen believes in the principle that a ―very large number of small improvements are more effective in an organizational environment than a few improvements of large value‖. (ii) habit of improvement (iii) continuous small incremental improvement (iv) work place improvements.Kaizen Kaizen is a Japanese word meaning ―Continuous Improvement‖. The word Kai means change & Zen means better. process improvements must be defined in terms of increased customer satisfaction as a result of higher quality products & services.Continuous Process Improvement Continuous process improvement is designed to utilize the resources of the organization to achieve a quality-driven culture. 18 . Make process safer Make the process more satisfying to the person doing it. Improvement is made by viewing all work as a process & making all processes effective. The customer defines the purpose of the organization & every process within it. Kaizen means (i) on going improvement involving everyone from top management to workers in all areas with little investments.Module-II 2. Process refers to business & production activities of an organization. Process definition begins with defining the internal & external customers. Reduce Errors. Meet or exceed expectations of downstream customers. Quality based organizations should strive to achieve perfection by continuously improving the business & production process.
such as quality. accurate information etc helps in determining how to re-engineer the process. 19 . (v) Improvement in productivity (vi) Promoting zero defect concept (vii) Better labour relations. It is a fundamental rethinking & radical redesign of business process in order to achieve dramatic improvements in areas of critical performance. cycle-time. starting from the scratch. Therefore complete understanding of customer‘s needs. & not the internal performance goals. but by redefining the processes & strategies by taking a fresh look. lower cost. Sale. No day should go without some kind of improvement being made somewhere in the organization. supply chain etc‖. though It initiatives are a critical factor in modern business process for the success of re-engineered processes. Kaizen however is a reflection of cumulative positive effort which ensure that organization competitiveness is positively progressed. delivery time. quality. Re-engineering of the process is done according to the customer‘s needs. Business reengineering means starting all over again. but these moves are not re-engineering. It is not reorganizing or simply redesigning. such as cost. Reengineering process ignores what it is in the company & concentrates on what it should be to get radical change in performance. The idea behind Kaizen is to utilize the workers ideas for bringing small incremental improvement in their work places.Re-engineering Re-engineering as a process is focused on break-through improvement to dramatically improve the quality & speed of work & to reduce its cost by fundamentally changing the process by which work is executed. In the exercise of re-engineering it is not the organization but the processes are the objects or re-engineering. Re-engineering process should not be confused with computerization or automation. they re-engineer the process of work that the people of those departments do. Reengineering seeks break through not by enhancing existing processes. service. Management Information Service or manufacturing. It should be noted that companies do not re-engineer their departments like Marketing.Kaizen also means (i) on time delivery (ii) work force for self supervision (iii) Improved quality (iv) promoting creativity among the work force.3. 2.
Involve key people early: This is in order to get the inspects from key personnel or department at the earliest stage for avoiding confusion & delay in execution.& building control into the process. inspecting etc which should be avoided as far as possible. like string. There could be three type of companies who go for re-engineering. By the time companies identify before going for restructuring & reengineering some ground work & conditioning of the organizations are necessary. which saves both time & money. & not task: This principle implies that every process should have customer related outcome at the end of the process.Principles of Re-engineering Organize the process around outcomes. There is a need for Re-engineering in every company. there are many non-value adding steps. what matters is when & how the company has looked for the change & improvement. & there should be process owner (person or a team) with empowerment for efficient conduct of the process & to minimize loss of time or waste of efforts. In manufacturing. They are 1) companies who found themselves in deep trouble 2) companies who are not yet in trouble but whose management has the foresight to see the forthcoming change in situation. & (b) shorten the time cycle for process outcome. Link parallel activities instead of integrating their results at the end: Perform steps in parallel rather than in sequence order to (a) have correlation of activities towards a common goal. wherever necessary. Eliminating non-value adding steps: The best way to eliminate waste & efforts is to stop doing the steps that do not add any value to customer‘s needs or make the product more attractive. Put the decision point where the work is performed: This is to done by empowerment. 3) Companies who are doing 20 .
Helps in revolutionary thinking. because they are in deep trouble or can cause crisis. then the search begins to identify which processor requires re-engineering. Work changes from tasks to process. There are generally three criteria for making the choice: 1) Dysfunctional areas: These are the processes that need immediate improvement. Benefits of Re-engineering Re-engineering changes the organization‘s work culture from ‗task-based‘ thinking to ‗process-based‘ thinking. Steps for Re-engineering Once the customer-focused process have been identified & mapped. Not all high – level processes to be re-engineered simultaneously. quality etc. Encourages change in corporate culture & basic principles on which departments operate. cycle-time. This is a fundamental change from the traditional thinking & set-up of organizations. (b) (c) (d) Increasing competition at the operational level. with successful re-engineering. Major benefits of re-engineering are (a) Achieving radical changes in performance measured in terms of cost. Manager‘s role changes from supervision to coaching & handling. 2) Important or critical areas: These are the processes that have greatest impact on company‘s customers & business. but their management are ambitions & aggressive. 21 . Employees‘ role changes from ‗being controlled to being empowered‘. Focus of re-engineering is to make this change possible. A process should now be designed to meet the customer‘s needs & expectations at lowest cost.well & see no difficulties either how or in near future.
Check or study refers to checking & determining if the implemented plan or program has worked correctly & also to identify if any other problem to be solved or opportunity for further improvement exists. Brainstorm & redesign the process with ‗Zero-based‘ approach. Do phase is concerned with the implement action of solutions for root causes of problem. Form ‗cross-functional‘ teams with empowerment for reengineering. because T Q M believes that there is no end to improvement. Act refers to the implementation of final plan for improvement after sorting out any problem. Understand the current process what are the critical issues & why it is failing. The implementation can be on trial basis or on a pilot batch. & to endure that improvement can be sustained & standardized. Verify the re-engineered process by trial run & introduction. This tool is used for problem solving with never ending cycle of improvement. In general plan means studying the current situation. 22 .3) Opportune areas of feasibility: These are company‘s process that are most potential for successful re-engineering. The PDSA cycle goes on & on.4. 2.P D S A Cycle The PDSA (Plan-Do-Study-Act) cycle can also be described as P D C A (Plan-Do-Check-Act) cycle. gathering data for identification of current status. General steps for proceeding to BPR exercise are Identify & map all the processes required for the business in the company. analysis of problems & planning for improvement with definite target. Decide the critical ones for re-engineering.
Deming‘s cycle is recognized as most effective of all problem solving techniques.1: PDSA Cycle The PDSA cycle can be divided into ten systematic steps. They are: 1. Review whole process to plug loopholes & standardize the new Act Study Do Plan process for practice. 9. if not rework step 4 to 8. Figure 2. adopt the solution. 10. The Plan – Do – Study – Act cycle is a never ending cycle. 6. 23 . 7. and it is widely used for developing a systematic thinking for elimination & improvement of problems or to initiate a fresh improvement process. 3. 4. 8. 2. 5. Identify improvement opportunities Plan the desired results ie targets Clearly state the problem Seek cause of Effect relationship Collect data & Analyse Isolate root cause or causes Identify & Implement preferred solution Check & Monitor results If goals have been net.
This step is also performed by a multifunctional team with a liaison to the design team. It uses the feedback loop & consists of the following steps. Compare actual performance to goals. 4. 24 . Because the customer needs are stated from their view point. they should be translated to requirements that are understandable to the organisation & its supplies. This activity requires the customer to state needs in their own words & from their own view points. control & maintenance of the facilities. process & service requirements.2. The fourth step is to develop processes able to produce the product & / for service features. process or service. Determine items/ subjects to be controlled & their units of measure. expense measurement (control). Juran Trilogy Juran Trilogy has three components planning. are competitive & optimize the cost of all state holders. 2. Once customers are determined their needs are discovered. it should be performed by members of the process planning team.5. Once the quality goals are established. control & improvement. Control is used by operating forces to help meet the product. When training is necessary. marketing determines the external customer & organisational personnel determine the internal customer. This step typically is performed by a multifunctional team. Activities include determining the necessary facilities. here also a multifunctional team with a liaison to the other teams is used. It is based loosely on financial processes such as budgeting (planning). 1. meet the needs of the organisation & its suppliers. & cost reduction (improvement). Measure actual performance. The next step in the planning process is to develop product and /or services features that respond to customer needs. 3. training & operation. Set goals for the controls & determine what sensors used to be put in place to measure the product. Transferring plans to operations is the final step of the planning process. The planning component begins with external customers.
In the figure Juran provides a distinction between sporadic waste & 25 . Process improvement can be incremental or break through. Act on the difference. Fig. Improvement Third part of the trilogy aims to attain levels of performance that are significancy higher than current levels. The problem solving method may be applied to improve the process. Two of the duties of the council are to identify the improvement projects & establish the project teams with a project owner.5. Such as the quality council. Statistical process control is the primary technique for achieving control. In addition the quality council needs to provide the teams with the resources to determine the causes.2The Juran Trilogy Diagram Figure provides an example of how the three continuous processes interrelate.2. create solutions & establish controls to hold the gains. while the quality council is the driver that ensures that the improvement is continuous & never ending. Process improvements begins with the establishment of an effective infrastructure.
trust & shared vision. The benefit of JIT is that inventory – related costs are kept to a minimum. it calls for raw materials & components to reach the production operation in small quantities when they are needed & not before. Another force changing supplier relations was the introduction of the just-in-time (JIT) concept. because the customer will have better quality.chronic waste.6. As a solution is found through the improvement process. These actions will lead to improved products & services. he stated that customers must stop awarding business based on the low bidder because price has no basis without quality. One of the keys to obtaining high quality products & services is for the customer to work with suppliers in a partnering atmosphere to achieve the same quality level as attained within the organisation.Supplier Partnership An organisation spends a substantial portion of every sales dollar on the purchase of raw materials. The chronic waste requires an improvement process. Customers & suppliers have the same goal to satisfy the end user. dedication to common goals & objectives. The relationship is based upon trust. Partnering Partnering is a long-term commitment between two or more organisations for the purpose of achieving specific business goals & objectives by maximizing the effectiveness of each participant‘s resources. lessons learned are brought back to the quality planning process so that new goals for the organisation may be established. & services.‘ 2. & an understanding of each participant‘s expectations & values. There are three key elements to a partnering relationship: long-term commitment. The third force that change the customer supplier. components. There have been a number of forces that have changed supplier relations. In addition. The better the supplier‘s quality. Partnering is a multifaceted relationship requiring constant nurturing to achieve continuous improvement & maximum benefit. The sporadic waste can be identified & corrected through quality control. he advocated single supplier for each item to help develop a long-term relationship of loyalty & trust. One force was the Deming‘s fourth point. 26 . the better the supplier‘s long term position.
The cost of quality has been defined differently by many. Creating incentives for suppliers is one way to ensure that they remain committed to a quality improvement strategy. (3) Audit. manufactured or serviced exactly right the first time. Approach to Quality Cost Analysis Quality Cost are those that are incurred in excess of the costs that would have been incurred if the products were designed. selling & servicing products & the estimated cost if there were not chance of failure during manufacturing. The goal of inspection is to eliminate. This means extra money the management has to spend for nonconformance. delivery or use. substantially reduce. There are four phases of inspection : (1) 100% inspection. or automate the inspection activity.Quality Cost This is yet an another powerful tool for quality improvement. process design & the quality system. which originated from the pondering of management to know what it costs to improve quality & what will it cost for not improving the quality. training. In training process the larger organisations may invite the supplier to attend their courses or present the course at the suppliers plant.Relationship Development Additional topics of inspection. Incentives may be in the form of a preferred supplier category with its rewards. (2) sampling. It is a good idea to involve suppliers when the team is first assembled rather than at the end of its activities. Cost of quality can be classified into four categories: 27 . teams & recognition & reward contribute to the maintainability & growth of the relationship. & (4) Identity check. 2. such as product design. Usually supplier is interested in recognition. Customer / Supplier teams are established in a number of areas. but for measurement purpose it can be said that the cost of quality is the difference between the actual cost incurred for making.7.
Prevention Cost : This includes costs of those activities which remove or prevent any defect from occurring in the first place. This is to ensure that the poor quality is not produced at all. Appraisal Costs : There are the costs incurred to identify poor quality of products after they have occurred in the course of manufacturing but before the products are delivered to the customers. Internal failure costs : There are cost incurred internally during the production process in order to used out defective materials going to the customer. External failure costs : These costs are incurred after the shipment of products to customers. Quality cost analysis provides information to management about the scope of improvement opportunity that exists in the company. Benefits of cost of quality measurement & control Discovering areas of improvement opportunity Knowing the cost of lost opportunity & cost income Identification of redundant activities Improvement of system for allocation of resources Identification of vital few, which control the profit potential. Customer loyalty & customer retention. The three main areas of cost to be identified, measured & improved are (1) cost of conformance cost of non-conformance & (3) cost of lost opportunities.
Module – III
3.1.Statistical Process Control One of the best technical tools for improving product & service quality is statistical process control (SPC). There are seven basic techniques. Any of these tools can be used either in single or in combination, for analysis & solution of a problem. Total Quality Management is about solving problems for improvement & these tools are an essential aid towards these efforts. Common tools used for problem solving & quality improvement are: (1) Check sheets (2) Charts (Bar, Run & Pie) (3) Histogram (4) Control charts (5) Correlation or scatter Diagram (6) Pareto Diagram & (7) Cause-and-Effect Diagram. 3.2.Pareto Diagram A Pareto Diagram is a graph that ranks data classifications in descending order from left to right. It is a special type of vertical bar diagram that displays the frequency of recurrence or the cost of a set of items which are shown in descending order from left to right. As a result, the ‗vital few‘ categories (or items) that contribute to the maximum of the problem, or condition of the events being analysed, stand out. Pareto Diagram immediately reveals the vital few causes & helps in selecting improvement efforts. There are fine steps in the construction of Pareto Diagram. 1. Determine the method of classifying the data: by problem, cause, non conformity, & so forth. 2. Decide if dollars (best), frequency or both are to be used to rank the characteristics. 3. Collect data for an appropriate time interval or use historical data. 4. Summarize the data & rank order categories from largest to smallest. 5. Construct the diagram & find the vital few. Example: In this case, the data classifications are types of coating machines. The vertical scale is dollars or frequency & the percent of each category can
be placed above the column. Here the Pareto Diagrams are constructed for both frequency & dollars.
Fig.2.3 Pareto Diagrams From the figure we can see that machine 35 has the greatest number of non conformities, but machine 51 has the greatest dollar value. 3.3.Cause-and-Effect Diagram A cause-and-effect diagram is a picture composed of lines & symbols designed to represent a meaningful relationship between an effect & its causes. C & F diagrams are used to investigate either a ―bad‖ effect & to take action to correct the causes or a ―good‖ effect & to learn those causes that are responsible. For every effect, there are likely to be numerous causes. Each major cause is further subdivided into numerous minor causes. The first step in the construction of C & E diagram is for the project team to identify the effect or quality problem. It is placed on the right side of a large piece of paper by the team leader. Next, the major causes are identified & placed on the diagram.
Histogram is a special bar chart that displays the frequency of occurrence of a measure or characteristic of data from a process.Histogram A histogram displays huge amounts of data that is otherwise difficult to comprehend in its raw form. The form of the check sheet is individualized for each situation & is designed by the project team. Data should be collected in such a manner that it can be quickly & easily used & analyzed. whenever possible. 3.4. either in continuous or in discreet scale.2.Fig. Creativity plays a major role in the design of a check sheet. In histogram. vertical axis (y) represents the frequency & horizontal axis (x) represents the measurement or characteristic data.4 Cause and effect Diagrams 3. 31 .Check Sheets The main purpose of check sheets is to ensure that the data is collected carefully & accurately by operating personnel.5. include information on time & location. It should be user – friendly and.
products or services of a world class company inorder to learn how they achieved the superior performance. histogram is a two dimensional presentation in which both length & width of the bar are meaningfully. Therefore their unit dimension should be decided & maintained. Benchmarking helps the organisations to develop their strengths I reduce their weaknesses thereby achieving competitive objectives. & then setting out own internal measures to meet or surpass them. Purpose of benchmarking is to enable the organisation to take a quantum: jump in improvements. The essence of benchmarking process is the endeavour to analyse & understand the processes. which makes an organisation look outside to recognised business leader fro knowing & understanding the way to their success.Fig. Many tend to describe 32 .Benchmarking ―Moving from where we are to where were want to be‖ is the essence of Benchmarking. It is a process of comparing & measuring own business processes with that of business leaders anywhere in the world with a view to gaining information & understanding of their methods & process.5 Histogram Unlike bar diagram. Benchmarking is a formal process. & then adopting it in the own organisation for gaining improvement in performance to a higher level.6. resulting in increased business performance. Histogram barely illustrates the patterns of variations in process & helps in understanding the process. 3.2.
Benchmarking provides the ways & means for changing a company‘s culture & attitude of doing things world class level. b) Process / Functional Benchmarking: This centers around work processes such as billing. why. & thereby brings long-term & larger gains. Any company that view it that way is sure to fail to accomplish any improvement. & qualitative information on the design & adoption of ‗Key Success factors‘ that explains how the benchmarked company became the leader in that function. (a) Leadership & (b) involvement & motivation of people to the process of improvements. It is a method of identifying new ideas & new ways of looking at things for improvement & business excellence. characteristics of products / services. orders entry. Good benchmarking exercise produces two types of information. features & other quality 33 . Benchmarking is not a data gathering exercise. how & when of the success story. It identifies the most effective practices in the industry that perform similar functions. but the key to the success of benchmarking process is in understanding of what. It has been experienced by the companies that key success factors almost always point towards. Many companies adopt benchmarking process for strategic planning method to identify key success factors.it as a process of knowing & understanding the secret of success & then copying it. c) Strategic Benchmarking: It examines how companies compute & seeks the winning strategies that have led to competitive advantage & marketing success. The three major types of Benchmarking that have emerged in the business world are: a) Performance / Operational Benchmarking: This involves pricing. technical quality. quantitative data that are used to measure current performance & set future target. training. Important issue is to understand the underlying processes that produce the great performance data.
determining what should be improved or changed to make impact on company‘s performance. Analyse step Identifies gaps in performance & find the root causes for the gaps and in Adopt we chooses ‗best practice‘. Fig. develop performance measures search means finding benchmarking partner. In plan we select processes for benchmarking. performance & practice. that adopt to company‘s conditions. Understanding the prevalent best-practices in industry to identify what must be changed or improved. it goes on & on in search of superior practice for performance excellence. Benchmarking process 34 . & implement changes. To translate these into actions would broadly involve: Gap analysis between own & other superior practices. In observe we understand & document the partner‘s process. This cycle does not stop at adoption of a best practice.2. Implementing benchmarked practices at own set up to achieve the set goals. form teams. document processes.6. Benchmarking process can be grouped under the cycle of: Plan – Search – Observe – Analyse & Adopt. Review of results or outcomes to determine where you are after the change. & developing a vision of what it should be after the change or improvement. Identifying ―benchmarking partner‖ & study of their best practices methodology.Key factors for successful benchmarking are: believing that there is a need for change & improvement from the present level.
Identify the ‗best-in-class‘ company in that function. especially the 35 companies . Benchmarks should be re-evaluated at periodical intervals to ensure that they are valid for current data set. Ensure that type of data being collected are amenable to accurate comparison with the partner‘s data. However. In addition to the collection of quantitative data. One way to proceed is to contact & visit the known industry leaders. Identify the Key performance variables to measure & collect data. Analyze & compare the data for understanding the measures taken by the partners. 11. 3. 8. project partner‘s future plan & target & ten plan to match or exceed that level. Prepare for adoption of techniques used by the partner. & commitment for the new strategies. business situation & aimed at best targets. should communicate & share the findings with people of the organisation to build understanding. One of the characteristic features of benchmarking is that the organisation being studied is co-operating as a partner. Review & recalibrate the benchmarks. Communicate benchmarked findings to management. & identify the ‗critical success factor‘s. 7. Develop action plans for implementations covering all related areas. Identify the function to be benchmarked & form teams. 9. share the improvement outcomes with people.Commonly followed steps in Benchmarking process are: 1. Establish functional goals for the benchmarking team to analyze & present its recommendations on ways in which the organisation must change or improve to reach to new goals. 5. who in turn. Implement specific actions & monitor progress. 12. 2. Establish benchmarking partnership with the chosen company & function. motivation. this choice of partner & getting their agreement is a major step in benchmarking process. 4. 6. 10. identify the management approaches that differ between the companies.
who have won 36 .
but there should be common process or procedural approach. Data from these sources have to be commonly generated by visits. & they to get in to co-operative agreement for sharing data. many other industry leaders are not. companies are coming together to form consortium for exchange of data amongst theme. third-party information or from known data base3. 37 . Simultaneously. This can be an effective source of benchmarking by comparing & studying superior practice of one department with other within the company. The other source is the out of industry companies having superior processes & they are ready to exchange information for refining the process. 2. Internal Operations: These are other internal units within the organisation that are performing well. but they perform similar functions. Generically partners can be chosen from four common sources of superior practice. Bank with Telecom etc. Generic Processes: The source is outside the industry. like training. large numbers of consultancy firms are coming up who have rich stock & exposure to such information. which should be current & comprehensive. 4. like complaint resolution process of Health Care with Hospitality. The partner – company may not have to be in the same business. data have to be sourced from published or known data base. 1. Other ways are taking recourse to published or known data base. As the popularity of benchmarking is increasing. Functional Leaders: They are generally industry peers who serve a different market. This can be partnering with out of industry companies for common functions. supply – chain management etc. It is a matter of striking the right partner for known best-practice or superior methods. Direct Competitors: In general. There are data research firms whose membership can allow access to their data bank.Malcolm Babdrige Quality Award. Though many companies are paranoid about sharing information.
3. 5. An organisation that correctly implements RFD can improve engineering knowledge. & production & provides in – depth evaluation of product. Creation of a growth conductive climate & environment where all employees are involved.Benefits of Benchmarking Benchmarking is a tool for quantum improvement in competitiveness of industries. Acceleration to the rate of change & improvement. Acquaintance to diverse & innovative approach to break through for quantum improvements. Major benefits are: 1. & have a vision about what should be the outcome after the change. 6. & quality & reduce costs. Benchmarking is often a win-win game for both. 2. 4. often referred to as the voice of the customer. product development time. QFD focuses on customer expectations or requirements. It is employed to translate customer expectations. productivity. It is a disciplined approach to product design. Benchmarking is particularly useful for bringing the change & validating proposals for change. are willing to change. because it should be appreciated that no one can excel in all activities. System of working through facts & figures. & engineering changes. Benchmarking can benefit both the participating companies by sharing information & data. in terms 38 . Adoption of new practices that overcome previous perception of barriers & take to new heights. Significant benefit is benchmarking is in creating an attitudinal change for managing the business through diversity by innovative approach to break through practices. engineering. 3.Quality Function Deployment (QFD) Quality Function Deployment is a planning tool used to fulfill customer expectations. Achievement of competitive advantage.7. This can only occur if companies understand the need to change.
Results of QFD are measured based on the number of design & engineering changes. It is considered by many expects to be a perfect blueprint for quality by design. & customers often cannot explain their expectations. 39 . Some customer requirements adversely affect others. QFD is a team-based management tool in which customer expectations are used to drive the product development process. cost. QFD helps identify new quality technology & job functions to carry out operations. Quality Function Deployment enables the design phase to concentrate on the customer requirements. time to market. Part development. it is not productive to improve something the customer did not want initially.of specific requirements. This activity is where the voice of the customer becomes lost & the voice of the organisation adversely enters the product design. Organisations today use market research to decide what to produce to satisfy customer requirements. Instead of working on what the customer expects. in terms of engineering or technical characteristics. By Implementing QFD. thereby spending less time on redesign & modifications. Confusion & misinterpretations are also a problem while a product moves from marketing to design to engineering to manufacturing. Process planning. an organisation is guaranteed to implement the voice of the customer is the final product or service. In other words. This tool provides a historic reference to enhance future technology & prevent design errors. work is concentrated on fixing what the customer does not want. Production planning. The saved time has been estimated at one-third to one-half of the time taken for redesign & modification using traditional means. QFD is primarily a set of graphically oriented planning matrices that we used as the basis for divisions affecting any phase of the product development cycle. into directions & actions. & quality. This saving means reduced development cost & also additional income because the product enters the market sooner. Service industries. Conflicting characteristics or requirements are identified early in the QFD process & can be resolved before production. that can be deployed through: Product planning.
When an organisation decides to implement QFD. which are compared to all competitive information. the project manager & team members need to be able to commit a significant amount of time to it. because the QFD process will only need to be modified. depending on certain situations. especially in the early stages. The existing product team usually has fewer members. The meeting format should have some away of measuring how will the QFD process is working at each meeting & should be flexible. Benefits of QFD can be listed as follows: 1. Improves customer satisfaction: QFD looks past the usual customer response & attempts to define the requirements in a set of basic needs. finance & production. One of the most important tools in the QFD process is communication.designing a new product or improving an existing product. Using time effectively is the essential resource in getting the project done on schedule.team communication to its fullest extent will alleviate unforeseen problems & make the project run smoothly. This is important when an organization‘s employee leave a particular project & a new employee is hired. All competitors are evaluated equally from customer & technical perspectives. The team leader needs to ensure that the meetings are run in the most efficient manner & that the members are kept informed. Team meetings are very important in the QFD process. Using inter . quality. 40 . Time & inter team communication are two very important things that each team must utilize to their fullest potential. QFD takes the experience & information that are available within an organization & puts them together as a structured format that is easy to assimilate. Teams are composed of members from marketing. the scope of the project must be clearly defined so questions about why the team was formed do not arise. The priorities of the projects needs to be defined and told to all departments within the organisation so team members can budget their time accordingly. design. There are two types of teams . Also. Benefits of QFD Quality function deployment was originally implemented to reduce start-up costs.
3. form marketing to production to sales. Inputs are required from all facts of an organization. 41 . a considerable amount of effort is put into research to determine customer expectations.8. are now saved in an orderly manner to serve future needs. frequently lost & often referenced out of content. By using QFD. critical items are identified of can be monitored from product inception to production. In other words FMEA can be explained as a group of activities intended to Recognize & evaluate the potential failure of a product or process of its effects. like quality. all conflicting design requirements can be identified & addressed prior to production. & changes in traditional quality control measures. Efficiency & productivity always increase with enhanced team work. when used properly. 4.2. The driving force behind QFD is that the customer dictates the attributes of a product. In other words. QFD concentrates on customer expectations & needs. f. operator training. Customer satisfaction. Promotes Team Work: QFD forces a horizontal deployment of communication channels. Reduces Implementation time: Fewer engineering changes are needed when using QFD. This data base also serves as a training tool for new engineers. This result is a reduction in retooling. 3. Provides Documentation: A data base for future design or process improvements is created. is defined as meeting or exceeding customer expectations. thus ensuring that the voice of the customer is being heard & that each department knows what the other is doing. Data that are historically scattered within operations.Failure Mode and Effect Analysis (FMEA) Failure Mode and Effect Analysis (FMEA) is an analytical technique (a paper test) that combines the technology & experience of people in identifying foreseeable failure modes of a product or process & planning for its elimination. This activity avoids misinterpretation. the left hand always knows what the right hand is doing. opinions & misuses.
Implementing process FMEA helps to identify potential manufacturing or assembly causes in order to establish controls for occurrence reduction & detection. & System FMEA is a combination of design & process FMEA. Service FMEA. However as products becomes more complex in nature. misjudgments & errors that may have been made. For instance. design FMEA reduces development time & cost of manufacturing processes by eliminating many potential failure modes prior to operation of the process & by specifying the appropriate test to prove the designed product. environmental FMEA. - Document the process.- Identify actions that could eliminate or reduce the chance of potential failures. Reliability is one of the most important characteristics of any product. However. equipment FMEA. whether the customer is internal or external. FMEA is a ―before-the-event‖ action requiring a team effort to easily & in expensively alleviate changes in design & production. System FMEA. no matter what its application. design & process FMEA document the results of the design & production processes. with long times between failures. Reliability is also an important aspect when dealing with customer satisfaction. Concept FMEA. for all intents & purposes. Implementing Design FMEA helps establish priorities based on expected failures & severity of those failures & helps uncover oversights. & environmental FMEA are just slightly modified versions of process FMEA. respectively. & others. equipment. Furthermore. all of the types can be broadly categorized under either design FMEA or process FMEA. service. maintenance FMEA. Process FMEA is used to identify potential process failure modes by ranking failures & helping to establish priorities according to the relative impact on the internal or external customers. Customers want a product that will have a relatively long service life. Further more. Design FMEA aids in the design process by identifying known & foreseeable failure modes & then ranking failures according to relative impact on the product. process FMEA. 42 traditional . There are several types of FMEA: design FMEA.
design methods 43 .
FMEA attempts to detect the potential product-related failure modes. it is always necessary to determine the reliability of the product or process. 44 . FMEA is an analytical technique that combines the technology & experience of people in identifying the foreseeable failure modes of a product or process & planning for its elimination. The technique is used to anticipate causes of failure & prevent them from happening. This will in a sense. creating a new product. One purpose of FMEA is to compare the design characteristics relative to the planned manufacturing or assembly methods to make certain that the product meets the customer‘s requirements. it is extremely important to treat the FMEA as a living document. Another purpose of FMEA is to provide justification for setting up a process in a certain manner. or process is an essential part of Total Quality Management. This method is an important stop in debugging & preventing problems that may occur in the manufacturing process. This method can be implemented in both the design & the process areas & basically involves the identification of the potential failure modes & the effect of those on both the internal & the external customer. or even modifying an existing product. Corrective action should begin as soon as the failure mode is identified. FMEA uses occurrence & detection probability criteria in conjunction with severity criteria to develop risk prioritization numbers for prioritization of corrective action considerations. FMEA may be viewed at the formal manner in which engineers will analyze all possible non conformities & problems that may arise in a given process or with a certain product.all not adequate fro ensuring low rates of failure. It should be noted that for FMEA to be successful. One of the most powerful methods available for measuring the reliability of the process or product is FMEA. This problem gave rise to the concept of designing reliability into the product itself. definitely in most cares. When acquiring new machines. Continually measuring the reliability of a machine. product. The FMEA evaluation should be conducted immediately following the design phase of product production &. continually changing as new problems are found & being updated to ensure that the most critical problems are identified & addressed quickly. before purchasing & setting up any machinery.
continuously updating the FMEA. 1. It will take far more planning to produce current products with the same reliability as prior products. In addition. the judicial system has become increasingly strict & more unforgiving than ever before. This becomes extremely important with the customers current mode of thinking – needing to assign blame whenever something is not exactly as expected. Determining those parts of the product or the process whose failure will have critical effects on product or process operation (those producing the greatest damage). & this requires more organization & precaution than ever.encourage all the engineers‘ analyses & findings to be in an organized. user friendly format. The use of FMEA in both the product & process areas of manufacturing is more important today than it has ever been. All changes & concerns between the design stage of the delivery & the product to the consumer should be noted in a thorough. Design (Product) FMEA or process (FMEA) can provide the following benefits. demanding products of the highest quality for the lowest possible cost. The most important aspect of this discussion is to follow up on any & all concerns that seem critical & to document the concerns & changes made. FMEA also allows the engineer to keep a record of all thoughts & actions taken to ensure a safe & reliable product. 3. Current products are more complicated than ever. & which failure modes will generate these damaging effects. Having a systematic review of component failure modes to ensure that any failure produces minimal damage to the product or process. precise. & processes from the individual failure probabilities of their components & the arrangements in which they have been designed. products. 4. & organized manner. Since 45 . Consumers today also are far more particular than they have been in the past. Calculating the probabilities of failures in assemblies. Determining the effects that any failure will have on other items in the product or process & their functions. 2. sub-assemblies.
Eliminating or minimizing the adverse effects that assembly failures could generate & indicating safe guards to be in corporated if product or process cannot be made fail-safe or brought within acceptable failure limits. 13. The FMEA methodology is a team effort where the responsible engineer involves assembly manufacturing. materials. supplier. quality.rate components of a product or process can be adapted for higher .reliability components. & the next customer (whether internal or external). service. Providing input data for trade -off. 12. 14. Providing training for new employees. Establishing test program requirements to determine failure mode & rate data not available from other sources. Establishing test program requirements to determine failure mode & rate data not available. or both. 15. the probability that one will fail at all is the sum of the total probability of the failure modes. 5. 10. 6. Tracking the progress of a project. 16. Establishing test program requirements to verify empirical reliability predictions. & errors they may have been made. redundancies. misjudgments. 9. 8. Establishing test program requirements to determine failure mode & rate data not available from other sources. The team 46 under has .components have more than one failure mode. Helping uncover oversights. Studies to establish the effectiveness of changes in a proposed product or process or to determine the probable effect of modification to an existing product or process. Determining how the high-failure. 7. Communicating to other professionals who may have similar problems. 11. Helping reduce development time & cost of manufacturing processes by eliminating many potential modes prior to operation of the process & by specifying the appropriate tests to prove the designed product.
certain 47 .
drawing everyone into participation. communicating with the rest of the team. Specifying Possibilities a) b) c) d) e) 2. & finally. Re-evaluation of Risk a) Recalculation of Risk Priority Number 48 . co-ordinating corrective action assignments & follow-up. keeping the process moving. Risk priority number. Correcting High Risk Causes a) b) c) d) Prioritizing work Detailing action Assigning Action Responsibilities Check points on completion 4. 3. The four stages of FMEA are given below: 1.responsibilities. Functions Possible Failure modes Root causes Effects Detection / Prevention Quantifying Risk a) b) c) d) Probability of cause Severity of effect Effectiveness of control to prevent cause. leading the team through completion of the forms. which include determining the meeting time & place. These should also be a recorder who records the results on the form & distributes results to participants in a timely manner. keeping files & records of FMEA forms.
49 .In whole FMEA helps to analyze what the failure modes of individual components are & what are chances of system or total product failure because of failure of individual component. FMEA looks at the product & its element from the points of how & in what manners it can fail.
Developing procedures for good vendor-vendee relations.IV 4. product in actual manufacture & of outgoing product. lead to taking action on the process. 3) The use of data in studying cause-effect relationship.Module . most useful & always satisfactory to the customer. c) d) Right the first time Inching towards zero variability Objectives of TQC 1) Evaluation of quality standards of incoming material. Developing quality consciousness. Feedback of information which assists in co-ordinating the activities of the various departments. both within & without the organisation. the important ideas to be noted are: 1) 2) The idea of building quality into the product rather than inspecting it. To improve quality & productivity by process control & experimentation. systematic problem solving methods & systems & procedures. 50 .Total Quality Control (TQC) TQC is an integrated system & methodology throughout the organisation that helps to design. Elements of TQC a) b) Quality at source Variability reduction through. Summarising the quality control approach. 3) 4) 5) 6) Evaluation of optimum quality obtainable under the given conditions. 2) Judging the conformity of the process to the established standards & taking suitable action when deviations are noted.1. produce & service quality products / services which are most economical for their value.
1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) Improvement in quality Increased production under the optimum condition Reduction in cost per Unit Reduction in scrap Saving in materials used Reduction in production bottlenecks Evaluation of Scientific tolerances Reduction in Inspection Maintenance of operating efficiency Quality Consciousness Fever Customer Complaints The reputation & survival of a company will depend on its ability to manufacture goods of an acceptable & uniform quality at a given price & to maintain the standards of quality continually. a better understanding of the process & product is obtained. From the concept of process behaviour. helps in building an information system. 51 . This is what actually creates better sales for the product. Apart from the two above mentioned benefits. The quality control programme assures quality at a reasonable cost.4) Importance of planned collection & the effective use of data Benefits of a Quality Control Programme A quality control programme. cause -effect relation study & experimentation involved in quality control programme. the following all the other benefits of the quality control programme. It is not sufficient to merely produce a product. One must build up an information system for improving quality & reducing the cost.
Management must trust the members‘ intent & be open to their recommendations. more productive & of a higher quality. Circle meeting room doors must be open to all ideas and suggestions. People will contribute if they are given the opportunities. ego or esteem needs & self fulfillment needs. Quality circle is not another management system or programme. It is a way of life – it is a way to reach people. It offers the people the opportunity to improve their own job function & by doing so. safety needs. The term Quality circle is really a misnomer. the ‗it won‘t work‘ reply & ‗that‘s the way always been done‘ thinking.Quality Circles A quality circle is a small group of people who voluntarily perform quality control activities within their workplace. to turn them on. Quality & productivity are not technical problems. our best suggest ways to make that job easier. This small group is one link in the whole companies QC activities which strives for self & mutual awareness by using quality circle techniques to manage & improve the work place with every member‘s continuous participation.4. It is a concept. They require people‘s solutions. The simplest & best description of what quality circles all about is ‗Improvement through Involvement‘. People should get rid of the I/we/they syndrome. 52 . Failure to establish a receptive atmosphere will result in failure of the concept. improve the quality & productivity of the entire organization. The key to making circles work is based. they are people problems. on satisfying fundamental human needs described by Maslow‘s human needs Hierarchy as physiological needs. Communication barriers should also be broken down. One of the basic & most important concepts of quality circles is that the person closest to the job probably knows more about that particular function than anyone else & given the motivation. Better yet. opportunity & training. social needs. to harness their energy & to get them involved. Quality circles will work only when the participants are free to do their thing. it is a philosophy of energizing people. It is small group activity for putting the human spirit to work.2. a philosophy of the work. environment.
11. 10. Group members can share & co-ordinate their respective roles. It is a participation & achievement. With their own initiative. However they cannot achieve 53 this sense . problem consciousness & improvement consciousness down the line throughout the organization. the group can tackle the task of problem solving. Setting group objectives together brings team work. 7. assisting in quality assurance etc. 9. 8. Worker‘s can acquire new skills & knowledge. Labour-Management relations are greatly improved. Quality circles serves as cells at the site of quality control work. better than before. Morale is greatly improved. 2. bringing the work management under state of control. funneling the company or plant policies downward or sideways. 5. Encourage employee‘s commitment & involvement in the job thereby improve quality & reliability of products. Waste reduction Job satisfaction: People have to feel happy and enthusiastic at work & take pride in it to do a good job. 6. ―Where there is a team.It must be an integrated system supervisors & employee working together with trust & co-operation. Source slogans which depict the importance of quality circle are like. Implementation & management of improvement activities at the workshop level as an integral part of company wide quality control. which otherwise may be regarded as managements job. 3. Objectives of Quality Circles 1. there is a way‖. as well as a co-operative attitude. Communication is improved between labour & management & also between workers of different ages. Development of quality consciousness. ―Through Quality Circles – See great achievements‘ etc. 4. It is recognition of the desire to become involved. 12.
of pride 54 .
Cost reduction – With today‘s inflationary conditions the cost of material. Hence quality circle will contribute to the overall synergy of an organisation. This is possible with quality circles. A person discovers a new meaning in his work. Since people are aware that their ideas will be considered. Improvement in safety. they may be working under bosses of different departments. 14. A person working in one department develops professional & personal contacts with a person of different department. Quality circle has got many advantages it opens the doors of creativity far an individual & enhances the overall quality of one‘s professional life. The glow of achievement & happiness which an individual acquires brings a qualitative change in his/her life. are rapidly increasing & it is necessary to find ways to reduce costs as much as possible so that product can compete in the market. Quality circles help promote more job satisfaction. but also improve the efficiency & speed with which problems are tackled. This helps to satisfy their ―Achievement needs‖. Reducing absenteeism & Grievances. From quality circles. Such contacts not only make a big organization more closely knit. 16. a dramatic improvement in inter-personal relations also results. This can be asked to reduce the cost of an item without affecting quality. The constraints may be numerous such as quality circle may consist of members drawn in from different departments located in different regions of the plant. So when quality 55 .unless opportunities are given to them to use their ideas & their brain power. 15. wages & so on. 13. Second & very important aspect of quality circle ‗How quality circle to be promoted‘. Quality circle generates ‗global‘ perspective by bringing together people from different department. Improvement in productivity – Reducing costs & rejections help to improve productivity. There is yet another important reason which makes it imperative that the concept & culture of group endeavour be encouraged in an organization.
They should remain in touch with quality circles all over the plant & render assistance when required. Firstly. it is imperative that recognition should be given when required. quality circles will certainly contribute to synergy & ebullience of Indian Industries. 4. Poka-Yoke focuses on two aspects. This metamorphosis should be monitored more closely by a ‗coordinating group‘ established in secretariat & comprises of 3-4 persons who are fully conversant with the philosophy & techniques of group working & may be engineers.Poka – Yoke (Mistake Proofing) Poka-Yoke is a Japanese word meaning ―To avoid unintentional errors‖. Although people involved in quality circles are self motivated. & more important. All this may not be easy as it sounds. people have to agree to a mutually convenient time & day fro a meeting secondly. & then providing signals or warning. It these is a system which presents them from committing the error the mistake can be eliminated. the members have to learn to merge themselves & their energies into a genuine group-endeavour. Quality circle brings about a gradual metamorphosis in the work culture/ philosophy of an organization.circle requires that they meet & discuss different aspects of a problem. If practiced. Prediction or recognition that a defect is about to occur. Recognition is not just a prize at a formal function. The Coordinating group will also be responsible for organizing training about group working at all levels in the plant. the situation is quite demanding in many ways. but also an attitude with which superiors regard the activities of persons involved in quality circles. The basic philosophy of Poka-Yoke is that human beings are liable to commit error unknowingly during any operation they perform. A lot of planning & thought may be required. Poka-Yoke is a simple mistake – proofing process in manufacturing or in the service that makes use of automatic devices or simple methods that help to avoid common human errors. 1. This ‗Coordinating group‘ should be full time on the job of maintaining intimate liaison with quality circle.3. including members of registered quality circles. 56 .
& the device will allow processing to proceed. PokaYoke can also be applied in designing of products. If there is a miss step in work process or in motion it is automatically adjusted. Poka-Yoke system was developed to achieve Zero defect. Fire Alarms in tall building. 57 . At times Poka-Yoke comes with surprisingly simple method of ensuring that mistakes are not made or an error didn‘t gets into the system. iv. However. Poka-Yoke solutions can range from simple colour coding of cables to very complex mistake proofing system of passenger aircraft control. If a certain operation is forgotten or stepped the device will not allow the next operation to begin. If there is a miss step. It design the work process to eliminate human mistakes. successful approach to this mistake proofing needs creative mind & ability to thinking outside the box. limit switches. Poka-Yoke techniques are often very simple like flashing of light signal when the automatic or manual sensor detects the signal of malfunctioning or generation of defects. v. ii. automatic overload switch off. & device will stop defectives. specially where safety hazards of the product is high. the device does not allow goods to be mounted to figs. method of quality assurance through prevention rather than detection. Poka – Yoke constantly aims at the total elimination of the possibility of human error. If a disorder is found in the goods. vi.2. If there is a miss step the device does not allow the machine to start processing. i. Following are considered as the steps for fool-proofing or Poka-Yoke. machine vibration alarm etc. Detection or recognition that a defect has occurred & then stopping the process so that no further defect can be produced. iii. Therefore. The disorder that has occurred in proceeding process is examined at the next process. Examples of common Poka-Yoke products are: Car Alarms. the device does not allow the machine to start processing.
Time (JIT) The JIT is a major approach to reduce waste in manufacturing & service firms. Design Products for Economical Production: The design of products should be producible within the constraints of affordable production facilities & processes. Modularity & Simplicity should be the engineer‘s guidelines. Because it relates to work-in-progress inventory. JIT is some time referred to as JIT Inventory system. in addition to holding inventory & cost of it.4. The philosophy based on planned elimination of all waste & continuous improvement in productivity. & fine tuning of manufacturing stages. The station orders the parts from the previous operations as per their exact requirement in a manner so as to arrive just when the parts are needed. 58 . Therefore. where parts are pulled or called up when required for continuing production by the next-in-line work station. Next station may then require storing the items as inventory & plan to producing by matching parts. This system compels the stations to work responsibly so that productions are as per the call & defectives are not produced to hold back a line. Fundamentals of JIT No matter the size of plants or uniqueness of facilities & products manufactured. production line has to be continuously fine tuned to avoid or minimize defectives. This therefore requires exact & careful planning. The objective of JIT is to improve ‗return on investment‘. This will frequently lead to process – yield imbalance. Idea of this system is to avoid building up queues at a work station in order to eliminate the need for storing work-in-progress inventories. This is a special tool to improve the quality & performance of various work stations during the production & delivery of goods. which is a major objective of TQM.4. ―Push‖ process allows a work station to produce what it can & then push it to next station. Unnecessary complexity should be removed & produced at least cost. Philosophically. the JIT philosophy is the same. but still ensuring that no work station run out of stock of working materials at any stage. JIT technique change this from ―Push‖ to ―Pull‖ system. this system changes the material flow from ―Push‖ process to ―Pull‖ process.Just – In . It is based on the following factors: 1.
8. Reduce Inventories: Inventory not only incurs extra cost but it also hides other problems. Reduce Paper Work: Hard copy report becomes out of date the moment it is printed out. 90% of total manufacturing lead times consisted of non production time. Methods should be developed to reduce this time loss. real time data update & retrieval & interaction division making is important. ―Bad data‖ is of no use whether computerised or manual.2. Establish ―Partnership‖ relation with each of key vendors. 5. 6. Change Plant Layouts to facilitate: Flow‖ Manufacturing: Plant layout should be changed to eliminate or shorten material moves. 7. negotiate prices based on long term commitments & then schedule frequent releases to support the flow of production with minimal inventory. Eliminate large queues & many kind of safely stocks & ―just-in-case‖ inventory. 3. Use of on-line. Strive for Continuous Improvement: 59 . Reduce lot sizes to the absolute minimum required to support the ―flow‖ manufacturing methods. Reduce Scrap: Scrap is more costly than mere material cost put into it. Improve Data Accuracy: People should be accountable for accuracy & institute programmes to measure it. So scrap is to be completely avoided. 4. Institute worker Involvement Programme (Quality Circles): Programmes should be instituted that tap into manufacturing process knowledge of the employees & provide incentives to workers to develop methods of eliminating waster of all forms. When ordering purchase pacts.
KANBAN The word KANBAN means any small sign displayed in front of a worker. Concentrate on solving real problems such as quality rejects. & ―M‖ card. meant for movement signal. authorises the movement of the lot from the workstation to the customer unit. 4. meant for production signal. These JIT principles are appropriate to everyone who wants to improve their productivity & profitability through TQM Benefits of JIT are many. 60 . They also must communicate it clearly throughout the organisation to the people who must implement these new methods at all levels in the company. (2) To move with the actual material. zero scrap. It relies on an information system to communicate the material needs by a ‗customer‘ unit to its. how much. For the success of JI the solid support and commitment of top management is a must.. set them higher. If the material & KANBAN can consistently move together performing both the functions. this indicates priority for that item to be produced first. by what means to produce & how to transport it). a card or a marker is used to control the movement of inprocess materials through the sequential: process of manufacturing. Strive for 100% data accuracy. schedule delays.Set goals & when they are achieved. KANBAN has two functions : (1) To contain information that serves as a work order (ie. Reduction of Waster & recycling. ‗Supplier‘ unit by the card system. is used to authorise a work station to produce one specified lot of a part. it is an automatic directional device which gives information concerning what. set-up changeovers & late vendor shipments. (2) Priority in production becomes obvious (when KANBAN) for one piles up. (3) Control of actual material becomes easier. Improved quality & delivery compliance etc. when. following become possible: 1) No over production will occur. Two cards are used in he system. warehouse space & cost. In Kanban system. JIT can be equally applied to vendors & suppliers of an organisation. ―P‘ card. like : Cost of Inventory. zero inventory & lot sizes of one.5.
3. KANBAN is a means to fine tuning. This is the ―Pull System of demand‖. the greater the need for excess capacity. This means that easier the process stands in the manufacturing process. Stabilise & rationalise the proces. Produce only the exact quantity withdrawn by the subsequent process. 5. The subsequent process comes to withdraw only what is needed. 4. Do not send defective product to subsequent process. 61 . Kanban Rules The pre conditions for operating Kanban are: 1. 2.. Equalise the production.Kanban can be used for control of movement of materials between customers & vendors. 6.
Organizations treat quality as an important component of their strategy to remain competitive. Company took this as a serious issue. A number of customers had complained about long-waits when calling for service. the customer dissatisfaction. The company receives many calls daily for sales. Thus they decided to implement some of the TQM tools like Benchmarking. This a TQM cell was organised in the company. It is a process of comparing & measuring own business processes with that of business leaders anywhere in the world with a view to gaining information & understanding of their 62 . ―Moving from where we are. computers & other office equipments. By applying Benchmarking some of the employees of the company were assigned to study the process going on at a similar company. service. A few cases on total quality management have been given below to emphasis the importance of quality in organization. This is reflected in the fact that a large number of companies have already acquired or are in the process of acquiring ISO certifications. All calls are handled centrally by customer service representatives & routed to other individuals as appropriate. as the customers are the back bone of any industry. to where we want to be‖ is the essence of Benchmarking. In Indian industries also it has been recognized as a means of getting world acceptability.Module – V TOTAL QUALITY MANAGEMENT IN INDIA –CASE STUDIES Quality management is all pervasive factors in every aspect of management in a global contest. They found out with a market research study that the customers became irritated. Quality has always been a concern for individuals as well as institutions but it has acquired new significance in the recent past.1. if the calls was not answered within five rings. Quality Function Deployment & Quality Circle. 5.CASE STUDY I : MAX MACHINES Max machines sells & services a variety of copiers. Company‘s top management decided to organise a TQM cell within the organisation with 10-15 TQM personnels in it. accounting & other departments. Deming awards etc. Now a serious problem arised in the company.
another tool of TQM where it contains members from the Top management to the bottom level workers. the company 63 . Thus a group of persons were assigned to find out the needs of the customer. The deming application prize is a covered recognition in India. & then adopting it in the own organisation for gaining improvement in performance to a higher level. company found out that customer‘s would like to get the sales & servicing enquiries answered before 10 am in the morning & also during their lunch break.methods & process. With the full co-operation of employees in the organisation company decided to work the employees in shifts so that they can give maximum advantage for the customers. By implementing Benchmarking they found out that the top organisations are using answering machines so that the already feed answers will be available for the customers within five rings & customers can select the departments they needs as per their requirements. Thus implementing TQM in the organisation customer‘s satisfaction was attained to a higher level & profit of the company increased to a greater range than ever before.2. a deming company experimented with daily work management (DWM) for a year before embarking on an organization wide TQM journal. Thus the customers got fully satisfied by applying TQM tools. QFD is a methodology to translate ‗voice of customers‘ into actual reality. This is a methodology to ensure that customer needs & expectations are attended to & fulfilled in each & every sections of sales & servicing. They were also empowered take decisions that would be benefited to both the customers & the organisation. Thus. in which regular meetings were conducted & each persons in the Quality circle were authorised to keep an eye on the activities undergoing in their section. By applying Benchmarking they could bring back customer satisfaction to a certain level. Next TQM tool implemented in the Max Machines was Quality Function Deployment. The award certainly puts the company on a higher pedestal straightaway. 5. In other words.CASE STUDY II: SUNDARAM BRAKE LININGS The Chennai based Sundaram brake linings limited (SBL). The company also formed ‗Quality circle‘. With the help of this survey. It is one of the highest TQM benchmarks.
increased exactness in tooling was brought to get a quality product. jigs and fixtures.has the advantage of a fair evaluation by perspective customers about its product quality. tools. operation like drilling and grinding which did not deliver precise results and resulted in wastage when performed manually were automated. cleaning the machines etc. method and frequency of checking and measuring. down time reduction from 400 minutes to 1000 minutes and a reduced scrap rate etc. Skill matrix of the operators working in the line. a reduction in rejection rate to 1500 parts per million from 10000 parts per million. and instituting methods of checking and measuring. 64 . The gains that have emerged out of the pillar TQM at SBL‘s passenger car cell includes a reduction in changeover time. So much so that SBL has extended the learning of its experiments with DWM to include all of its five cells early this year. The productivity level grew from 30% as against 20% rate of the rest of the company. exactness and visualization. condition monitoring of machines and corrective actions to be taken for abnormalities etc. and the dust control suction was improved for a dust free environment etc. Some of the visualization measures implemented included. Checklist for tool setup. material flow by implementing low-cost automation devices. The company set about improving exactness in areas like machines and layouts. The company started on the Daily Work Management by identifying its passenger car cell as its model in which to implement DWM. For example. Display of vital information to the operator like trends in 0production quantity. various process improvements were introduced. SBL‘s effort began with the two pillars of DWM viz. quality customer issue and returns. in pictorial form. Display of standard work procedure for the operation for setting and running the machine. As part of this.
Profit before tax improved from seven per cent in 2000-01 to 11 per cent in 2003-04. Birlas and the humbler Ramesh Gents‘ Hair Stylist on the up market. With continuous growth in passenger vehicles and utility vehicles (multi and sport) the need for disc brakes pads is expected to increase substantially. he established his own salon in 1987. There are only two others in the world who have achieved the same distinction in the field of hair styling. smooth flow from our supplier to customer. About the changes ushered to the company‘s quality systems post-deming.‖ While the personal 65 products company. started his career at Ambuli salon moved on to work at the Tal coromandel. ―We have initiated processes like lean manufacturing in addition to Total Quality Management (TQM) to achieve a synchronous. a growth of 42 per cent. K Mahesh.‖ We want to go global and setup our business overseas and also meet competitive threats at home. ―Sales increased from Rs. The Rs 120 Crore turnover company has entered the railway composite brake block business.SBL is looking at the non-automotive sectors as a part of its client diversification programme.‖ 5. 81.8 crore in 2003-04. From humble beginning to the state of the art salon at Nungambakkam High road. .CASE STUDY III: RAMESH GENTS’ HAIR STYLIST. Tatas. The salon was certified by the Mumbai-based ISO auditors. The salon is the first such personal care establishment in Asia to be awarded the prestigious quality certification in this service category. who entered the hair care profession at the age of 12. Proprietor G Ramesh. SBL intents to emerge a major supplier in this segment of the expanding global market.SBL is also gearing up to meet the challenges of extensive introduction of commercial vehicles disc brake pads in European Union countries. chairman and managing director . He clearly articulates the reason for becoming ISO certified. International Certification system. Honing his skill. is a dream come true for a self made man. Nungambakkam High road in Chennai? A covered ISO quality certification of course. SBL says. CHENNAI What is the common strand that runs between giant industrial groups like TVS.4 crores in 2000-01 to Rs 120.3. which employs over 50 persons.‖ He also added happily.
CavinKare 66 .
Ramesh has an envious roster of clients which includes well known cine and television stars.manufactures and exports pistons. a job card is prepared listing details like personal preferences and allergies to products. The result of his vision was the emergence of India‘s first auto-ancillary manufacturing venture –India Pistons Limited (IPL). etc. industrialists.notched a milestone when it started its unisex saloon inn this southern metro. commercial vehicles. Ramesh plans to strengthen his branding in India by establishing a presence in other Indian metros and convert his sole proprietorship into a private limited company. Jacuzzi. now a part of Federal Mogul Corporation USA. the saloon has systemized all its operations. a visionary far ahead of his times. Anantharama Krishnan. tractors. Mr. 5. anticipated the emergence of the Indian automobile industry. ―With ISO certifications. brought about birth of India Pistons Limited. bureaucrats. ayurvedic massage and a gym are on the cards. ministers from the state and central governments and an assortment of MPs MLAs who cut across party affiliations to have their tonsorial done by him. Every time a customer comes to the saloon.. rings and liners for passenger cars. 67 .4. Ramesh emphatically rules out the franchising route to prevent his standards from being diluted. A health club with sauna. IPL. The amalgamations group entering a technical and financial collaboration with associated Engineering of the U. neck capes.‖ Records of visits are maintained and reminders about the next appointments are sent to the customer. Though planning is corporatize.K. pins. In addition. ―Prior to the certification.‖ says Ramesh and adds. we didn‘t fix prior appointments. first serve basis.CASE STUDY IV: INDIA PISTONS LIMITED On the 30th of July 1949. Service was on a first come. S. at a time when no automobile manufacturers existed in India. the Chennai hair stylist has finalized plans to start operations in Malaysia with a local partner. imported disposable shaving kits and offers shower facilities. The salon uses disposable equipments sterilized grooming kits.
In February 2002. system & products based on TPM. increasing mean time between failures (MTBF). working in close liaison with OEM‘s. preventing problem that could potentially cost the organization dear. Maintenance of operation was one the roughest challenges faced by the Rs 200-crore India Pistons Limited (IPL). reducing the total break down hours or availability. Maintenance of machines-at its Maraimalai Nager plant-involved addressing three areas. Complementing its own technology with inputs through its collaborator. The organization guarantee superior quality by committing all its suppliers to the strictest quality standards. Customer recognition and a host of honors &awards for outstanding quality and supplier reliability is the proof of the desire to set themselves new standards. Says G R Janarthanan. the company decided to extend Daily Work Management (DWM) to support functions including maintenance. In all IPL location. IPL. TQM and Lean manufacturing are use to ensure that Quality levels are on par with the best in the world. manufacturing. For over 50 years India Pistons Limited has numbered among the leading manufacturers of high quality cylinder components for automotive and engine industry. In February 1998. IPL ―DWM is a method of taking corrective action on a timely basis so that the corrective action is not delayed‖. IPL has the unique distinctions of being the only Indian company to have been recognized by Hyundai Motors. India Pistons Limited strives to maintain a comprehensive system of professional project management designed to identify possible defects right from the initial phases of development. meeting their expectation of defect rate below 100ppm at both the foundry and machine shop. when vehicle manufacturer in India began. All plants are QS 9000 certified. successfully including them in its entire development project combined with a strong vendor development program. was easily able to service the growing need of Indian Automotive industry. Path making innovations have made IPL a reliable and successful partner to its customers. IPL was ready with the expertise and facilities needed to meet the industry‘s requirements of piston assemblies.Hence. and reduction in MTTR. These efforts have culminated in its defect rate approaching the 100ppm mark with the majority of its customers. vice president. 68 .
the power steering system seems to rise in demand. The replacement market for steering system is very small. 69 .So IPL began holding sunrise and sunset meetings between shifts for proper feedback from one shift to other. While sale in the passenger car segment rose by 56%yoy. as mechanical wear and tear is very less. sona winded its customer base to include Toyota Kriloskar. the MTBF has been increased to 40 hours per month from the earlier 20 hours per month. For standardization of maintenance. MTBF increase to 60 hours and MTTR reduce to 30 minutes.5%yoy rise in the net sales on the back improved off take from the passenger car and utility vehicle segments. which converse circular motion of steering into lateral movements of wheels with mechanical advantage. With the coming of foreign car major.CASE STUDY V: SONA KOYO SYSTEM LIMITED Sona Koyo steering system Ltd (sona) is a leading manufacturer of steering gears in the country. In the next six month. the break down level or the availability has came down to below 10 hours per month from the earlier 60 to 80 hours per month. In India most four wheelers are fitted with the former. The aim of the exercise or Gap Analysis was to find the gap between plan Vs performance and manage production in the subsequent hours to reduce the gap in order to meet the target production by the end of the shift. Industry basics.5. They are use to connect the steering wheel to front wheels. Besides better awareness of the problems. Steering gears are the part of the steering assembly. 5.8%yoy in its sales. It has posted a rise of 47. while MTTR has been reduced to just one hour from the earlier two hour. the company‘s main customer Maruti Udyog posted a rise of 21. Steering gears came in two types—mechanical and power steering gears. These were then first reviewed on a weekly basis to formulate corrective action and later on a monthly basis to take preventive action. During the year. the company decided to introduce Daily Logbook in which frequency of breakdown noted and recurring problems identified. Steering gears are only used in four wheelers.
For the year-ended march 2004. sona koyo‘s performance has improved over the recent quarters.14 crore in FY 99. Hyundai. The total installed capacity in the organized sector is 326000 units. The axial/wheel assembly was worth Rs 7. the company has taken efforts to move up the value chain and also broaden its customer base. The company has strong technological backing of koyo and others in all its product segments. The company has bagged orders to supply electronic power steering system to maruti and Hyundai. Sonas competitive position is strong in the steering gear segment with around 30% of the market share.6% of the total ancillary industry in term of value. Through export earnings accounted for only 2% of revenues in previous fiscal. With six major organized players in the market. ACMA.3 crore in term of production value in FY99. as its dedicated clients the company finds itself well placed. As a result the company now has clientele that auto majors such as maruti.3% to Rs 234 crore and post-tax earnings 87%to Rs12. Added by sustained increase in the auto mobile production. With 5 organized players in the market. turn over was 31. 70 . Over the years. Sona koyo is a dominant player in the car steering systems.The steering gears segment was worth 23. Maruti continues to be the signal largest customer according to 57% of revenues. the segment constituted 1. With a strong OEM. robust growth appears lightly. Besides the potential for growth in exports is another significant factor to keep an eye on.8% of total ancillary industry in term of value. Through belatedly the company has done well to diversity into the power steering segment which will generate good demand in the near future. tata motors and Mahindra and Mahindra. The shift in product mix in favor of power steering system would lead in higher margins. Given the nature of product.1 crore. the segment constituted miniscule . the company derives bulk of the revenues from the original equipment market (OEM). the total installed capacity in the mechanical steering gear segment in financial year 99 was 1084000 units and for power steering gears 56000 units.
Kapur candidly admits that he dose not expect 1000 ideas to be generate by the 50manager tasked with coming up with 20ideas each. each of the 50senior managers will compulsorily one day a month at the shop floor. Dr. embarked on corrective action ---a back up – to—basics programmed was initiated at the Rs 286-crore turnover sona koyo. Kapur is targeting export revenues of Rs 10crore. employees out in nearly ten hours of work everyday and remained totally focused. ―All examinations exert pressure and pull.‖ explain Dr Kapur. The mandate is to observe the production process and how each worker performs his task. he has to observe the work and came out with at least 20 suggestions every month to improving and easing the work. spend one day in the shop floor observing the work process and coming out with at least 20 new ideas to ease the work flow. the chairman of sona koyo system limited was bothered by a minuscule increase in plant level rejects. the slackening was the signal that the system and procedure had yet to be assimilated fully within the organization. Today. widely considered the novel equivalent for manufacturing. Similarly during the run up to the Deming medal. top officials like chief operating officer K M Deshmukh. The other benefit is that top mangers. 2003 sona koyo had won the prestigious deming medal awarded by the union of Japanese scientist and engineers (JUSE). the organization slackened a bit.‖ According to him. through global automobile manufactures who are looking in India as their base for sourcing components. Under this programmed. Says Dr Kapur. who are earlier focused on functional responsibilities away from the shop floor. 71 . Kapur a PhD in fluid dynamics. This will be true of all companies and each one will find its own way to tackling the issue.‖ During the four year run up to the Deming medal. in order to generate ideas for improvements.In November. On the other hand. will now have to be equally focused on the shop floor and the workers issues. every month. Dr. we too faced severe pulls and pressure. ―After we received the medal. Dr. necessitating the back to basics programmed even after being awarded the prestigious medal. ―The manager is not there to appraise or review the worker‘s performance. up from Rs 60crore today. Rather it is to challenge them to generate substantive ideas for continuous improvement in a systematic manner. Dr. Surinder Kapur.
One of suggestion JUSE for sona koyo was that the marketing department should strengthen its co ordination with customers. up from 36 prior to TQM process having been set in motion. Each employ has to undergo 69hours of training courses per year. says Dr. 72 . Kapur. each employ has to generate 24 ideas every year. Kapur. ―We have taken this suggestion in earnest ―. usually suggests additional improvement areas for companies which receives awards. worker‘s training is conducted with missionary zeal. Similarly. As a matter of fact. At the time of presenting the award.Ever since the company started the total quality management (TQM) process. Interestingly the company pays it workers Rs 10 per idea whether it is implemented or not. Similarly the 120 member junior management team has to ensure company wide diligent practice of the following principles of 5s Seiri (separating the required tool rest) Seiton Seiso (neatly arranging tools and markings for easier identification) (cleanup campaign) Seiketsu (to conduct the above three regularly) and. The average ideas ranked per employee has risen to 20.6 from the merge two in 1997. the company has extended its ambit of customer feedbacks collections from dealers and vehicle owners to even drivers. Sona koyo‘s research and development (R&D). engineer seriously study such response for improving product design. one of the deming award criteria is the ability of a company to innovate and launch new products. JUSE (which conduct intensive study on each company being audited). Soitsuke (forming the habit of following the first four) Sona koyo also initiated measures like (a) identification of goals for each activity (b) promotion of office for quality systems (c) conducting a kick off meeting for promotion (d) training and educating the employee (e) ensuring success stories are communicated to all the employees and (f) formal monitoring of projects To ensure that the systems are ingrained firmly. sona koyo is mining ideas after ideas. According to Dr.
Initial mando will 73 source . at the macro level too. Sona koyo has started implementing the just in time (JIT) inventory management system. Sona koyo commissioned its Rs 19 crore export oriented unit (EOU) near Chennai.Sona koyo has a history of innovations. Kapur. Some of the suggestion has been implemented while others are still under implementation. the suggestions are both for the short term and long term. The first year‘s revenue from the new plant is expected to around $4mn and will go up to $12 mn. The export plant. The company targets an export of Rs 3 bn this year. process was set in motion. discloses Dr.99 months in 1998. The new plant is adjacent to its existing facility that supplies manual steering system to Hyundai motors India Limited for santro. it had a 3 piece steering column. According to him. ―We have tested a new design in virtual world as a computer design. sona koyo went a head to design a single piece steering column. In 2 years. when the Alto model was launched by maruti udyog limited. For instance. Part of the strategy is to increase exports. the company telescoped 3 pieces into 2 and brought down the weight by 15% which resulted in lower costs. With that success.5 lakh Manuel starring system. Meanwhile. The company is actively charting a De-risking strategy including broad-basing its customer portfolio to reduce its dependence on maruti udyog. After the TQM. get new clients and expand its product portfolio. which has capacity to assemble 2.the basics. We are now doing physic test‖. In order to reduce the cost. the plant will also assemble steering system for golf cars being exported to the US based mando. In addition to the passenger cars.67 months from 12. will be expanded to add another 1mn. sona koyo is going back-to. the lead time for new products has come down to 5. With TQM and TPM in place. getz and accent and Hindustan motors limited‘s lancer. Towards expanding its export baskets.
5000 units per 74 .
Dr Kapur says. Toyota kirloskar motors limited 7%. Sona koyo is planning to set up a power steering system line at its non-EOU Chennai plant to carter to Hyundai motors. ―Diversification is a gradual process. On its customer diversification plans. Sumitomo Wiring System and nissho Iwai Corporation Japan . 125 crore spread across the next 2 years. maruti udyog. India.34bn (US$ 50mn). MSSL introduced the concept of integrated system to the Indian automobile industry. the flagship company of Sumi Motherson Group is a TS 16949 accredited company. The motherson Sumi Systems limited (MSSL) is a joint venture between the motherson group. In the last three years in the automobile industry in the country hit a rough patch MSSL devised strategy to cut cost. Mahindra & Mahindra limited and Hyundai motors 17% each.2 lakhs per annum line is due to commence operation in January 2005. the French company is expected to provide the technology for sona koyo‘s entry into the heavy vehicle segment. With the state acquisition. The company is currently also engaged in talks with tata motors. Sehgal Family. The company is also negotiating with 2 European prospects for this product. The received sales share will be. 5. 75 . For the mainstay of its business.6. scout for new markets and increase its market share.maruti 50%. Part of the risk diversification and the global plan is in the acquisition of 21% stake French company FUJI autotech. 37% being held by the Indian promoters. the company will set up dedicated facilities Gurgavon to produce electronics power steering system at an investment of Rs. tata motors limited 5% and others 4%‖. Sales to maruti udyog.CASE STUDY VI: MOTHERSON SUMI Mothersonsumi Systems limited (MSSL).month before doubling it later. Our target for this fiscal is Rs 300 crore sales. with a turnover of s 2. together holding 35% in the company. The Rs 12 crore 1. the last fiscal amounted to 57% of total sales to Hyundai motors and Mahindra & Mahindra 10% and 17% respectively. Today it is the undisputed market leader in its category.
MSSL also manufactures wiring harness for white goods. Providing its customers the widest range of wiring harnesses and components. The reasons where identified as (a) a work in progress (WIP) for 16 76 . (b) low inventory turns. When MSSL‘s deep analysis team walked through the company‘s entire process. Also 83% time was spent waiting for shop floor. In the polymer business due to company‘s increased focus and established relations with OEMs it has been able to get some new orders. it would impact MSSL‘s revenue and profitability to some extent. MSSL enjoyed privileged as the main suppliers to the complete cross-section of automotive and auto components industries in India. MSSL delivers benefits from the technical assistance and international relationships of its 25%n shareholder Sumitomo Wiring Systems (SWS). competitions have intensified in this business with competitors Tata Yazaki. of which more than 70% comes from WH division and the balance from polymer (plastic moulded components) and elastomers (rubber moulded components) division. MSSL is the market leader with over 50% share of the Indian automotive market. MSSL derives more than 90% of its revenue from the auto sector. electrical and electronic applications and medical equipments. benefiting from its association with yazaki.MSSL is a preferred supplier to Maruti and has also bagged similar status from Toyota. besides maruti (which is a significant customer of this) the company has established relationships with OEMs like Toyota. which resulted in its contribution to MSSL‘s total revenue going from 9% in 2001-02 to 14% during the first 9 months of 2003-04. the world leader in the WH industry. (c) high discomfort level. it found out that only 11% activity was value added. Three core problems were identified. 58% non value added and 31% was waste. it is highly profitable. In the WH business. (a) Poor schedule adherence. A pioneer in the manufacturing of Integrated Wiring Harness in India. Though the elastomers division contributes to less than 10% of the company‘s total revenue. The customer bas3e is continuously growing with regular breakthroughs in the new market segments. Tata Motors and hero Honda. However if this division is hived during the current 2004-05 to a separate JV. an established Japanese player in the global wiring harness (WH) industry. office automation equipments. However in the recent past.
daily work management (DWM) is being implemented since the last three months to achieve retention of activity level. the list of customer requirements is divided into a hierarchy of primary. more detailed list of secondary customer requirements needed to support the primary customer requirements. batch sizes were reduced from 1200 to 300. managing points and checking points were evolved. (d) manual sequence at capacity constraining resource points like cutting and crimping and inspection area. finally. The results of these efforts were that the schedule adherence has gone up from 56 to 95 per cent. a defined measure of performance has been drawn up for each cell and unit. This list is often referred as the WHATs that a customer needs or expects in a particular product. operator work was eased by placing input sequentially to reduce movement.days. using video films for 29 change over activities. The company chose to focus on reducing setup time and WIP. by electronically linking its production plants to its main vendors delays were reduced. input components inventory has been reduced from 15 days to 6 days for vendors. and tertiary customer 77 . Although the items on the list of secondary customer requirements represent greater detail than those on the list of primary customer requirements. In other words. This list of primary customer requirements is usually vague and very general in nature. 5. setup time was reduced from 12 minutes in 1997 to 4 minutes. they are often not directly actionable by the engineering staff and require yet further definition.7. CASE STUDY VII: QUALITY FUNCTION DEPLOYMENT Step 1 – List Customer Requirements (WHATs) Quality function deployment starts with a list of goals/objectives. (b) large batch size. WIP is down from 16 days to 8 days. customer rejection PP< has come down from 2200 PPM to below 300 PPM. This was achieved by bringing exactness . layout of the shop floor was changed to streamline flow of activity. a primary customer requirement may encompass numerous secondary customer requirements. Further definition is accomplished by defining a new. (c)frequent customer changes . simplicity and ease in planning by using sequencing softwares. secondary. Finally.
as shown 78 .requirements.
the QFD team must come up with engineering characteristics or technical descriptors (HOWs) that will affect one or more of the customer requirements. however. rims. For example. Now that the customer needs and expectations have been expressed in terms of customer requirements. Begin the development process of designing a handlebar stem for a mountain bike by first listing the customer requirements or WHAT the customer needs or expects in a handlebar stem. Many other customer requirements could be listed.in Figure 5. Each of the customer 79 . Counterpart characteristics are an expression of the voice of the customer in technical language. Example problem A company that manufactures bicycle components such as cranks. hubs. it is not necessary to break down the customer requirements to the tertiary level. aerodynamic look. and so forth wants to expand their product line by also producing handlebar stems for mountain bikes. Although reasonable cost is not considered aesthetics. of the house of quality.1. only the aforementioned ones will be used. These primary and secondary customer requirements are shown in Figure 5. it will be placed under that category for the sake of this example.1. Each engineering characteristic must directly affect a customer perception and be expressed in measurable terms. or second floor. for simplicity. These technical descriptors make up the ceiling. Secondary customer requirements under performance might be light weight. Two primary customer requirements might be aesthetics and performance. and maintainability. Step 2 – List Technical Descriptors (HOWs) The goal of the house of quality is to design or change the design or change the design of a product in a way that meets or exceeds the customer expectations. a primary customer requirement might be dependability and the corresponding secondary customer requirements could include reliability. strength. Secondary customer requirements under aesthetics might be reasonable cost. nice finish. Implementation of the customer requirements is difficult until they are translated into counterpart characteristics. and durability. Furthermore. and corrosion resistance.
This level of detail is necessary because there is no way of ensuring successful realization of a technical descriptor that the engineering staff does not know how to accomplish. as shown in Figure 5. The process of refinement is further complicated by the fact that through each level of refinement. These secondary technical descriptors can include part specifications and manufacturing parameters that an engineer can act upon.level engineering specifications into part-level specifications.requirements is broken down into the next level of detail by listing one or more primary technical descriptors for each of the tertiary customer requirements. This process is similar to refining marketing specifications into system-level engineering specifications. the list of technical descriptors is divided into a hierarchy of primary. and tertiary technical descriptors.2. Further definition of the primary technical descriptors is accomplished by defining a list of secondary technical descriptors that represent greater detail than those on the list of primary technical descriptors. some technical descriptors affect more than one 80 . secondary. This is similar to the process of translating system. Secondary Primary Tertiary customer Reasonable cost Aerodynamic look Customer descriptors (WHATs) Aesthetics Performance Nice finish Corrosion resistant Light weight Strength Durable Figure 5. Finally.1 Refinements of Customer Descriptors Often the secondary technical descriptors are still not directly until every item on the list is actionable.
requirement 81 .
Counterpart characteristics for a smooth ride could be dampening. aluminum. sand casting. however. a customer requirement for an automobile might be a smooth ride. Brainstorming among the engineering staff is a suggested method for determining the technical descriptors. For example. Secondary technical descriptors under manufacturing process might be welding.2 Refinements of Technical Descriptors 82 . Secondary Primary Tertiary Steel Material selection Manufacturing process Aluminum Titanium Welding Die casting Sand casting Forging Powder metallurgy Technical descriptors (HOWs) Figure 5. and powder metallurgy. Secondary technical descriptors under material selection might be steel. Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Example) by listing the technical descriptors or HOW the company will design a handlebar stem. Two primary technical descriptors might be material selection and manufacturing process. This is a rather vague statement. and titanium. die casting. forging. and stability requirements.and can even adversely affect one another. anti-roll. which are the primary technical descriptors. it is important in the selling of an automobile.
Furthermore. to name a few. which is a two-dimensional relationship that shows the intersection of related pairs of items.3. Tracing the relationships between the customer requirements and the technical descriptors can become very Figure 5. and vice versa.2.Numerous other technical descriptors could be listed. is constructed by turning the list 83 . Structuring an L-shaped diagram One way to reduce the confusion associated with determining the relationships between customer requirements and technical descriptors is to use an L-shaped matrix. it is not necessary to break down the technical descriptors to the tertiary level. as shown in Figure 5. for simplicity. The L shape. however. These primary and secondary technical descriptors are shown in Figure 5. Step 3. such as finishing process and type of bolt. because each customer requirement may affect more than one technical descriptor. only the aforementioned ones will be used.Develop a Relationship Matrix Between WHATs and HOWs The next step in building a house of quality is to compare the customer requirements and technical descriptors and determine their respective relationships.3 Structuring of L shaped diagram confusing.
The symbols that are used to define the relationships are now replaced with numbers. as shown in Figure 12-8. For example. The L-shape is constructed by turning the list of technical descriptors (see Figure 5. The relationship matrix is used to represent graphically the degree of influence between each technical descriptor and each customer requirement. Each degree of relationship between a customer requirement and a technical descriptor is defined by placing the respective symbol at the intersection of the customer requirement and technical descriptor.2) perpendicular to the list of customer requirements (see Figure 5. It can become difficult to comprehend and interpret the matrix if too many symbols are used. called the relationship matrix.of technical descriptors perpendicular to the list of customer requirements. This method allows very complex relationships to be depicted and interpreted with very little experience. because the number of evaluations is the product of the number of customer requirements and the number of technical descriptors. The Lshaped matrix makes interpreting the complex relations very easy and does not require a significant amount of experience. Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by structuring an L-shaped diagram. This step may take a long time. 84 . A solid circle represents a strong relationship A single circle represents a medium relationship. Doing this early in the development process will shorten the development cycle and lessen the need for future changes. The L-shaped diagram for designing a handlebar stem for a mountain bike is shown in Figure 5. for example. It is common to use symbols to represent the degree of relationship between the customer requirements and technical descriptors. The box is left blank if no relationship exists.1). Relationship matrix The inside of the house of quality. is now filled in by the QFD team. A triangle represents a weak relationship.3.
An empty column indicates that a particular technical descriptor does not affect any of the customer requirements and. o ∆ = 9 = 3 = 1 These weights will be used later in determining trade-off situations for conflicting characteristics and determining an absolute weight at the bottom of the matrix. After the relationship matrix has been completed. For instance. after careful scrutiny. Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by adding the relationship matrix to the house of quality. it is evaluated for empty rows or columns. Thus. may be removed from the house of quality. An empty row indicates that a customer requirement is not being addressed by any of the technical descriptors. Additional technical descriptors must be considered in order to satisfy that particular customer requirement.4. Adding relationship matrix to the house of Quality The relationship matrix is constructed by assigning symbols or numbers to represent the degree of influence between each technical descriptor and each customer requirement. the customer expectation is not being met. the relationship between the customer 85 . Figure 5.
requirement of lightweight and the technical descriptor of steel would be weak (+1) because steel is heavier than aluminum and titanium. called the correlation matrix. A solid circle represents a strong positive relationship. Adding interrelationship matrix to the house of Quality 86 . Step 4 – Develop an Interrelationship Matrix Between HOWs The roof of the house of quality. Empty spaces indicate that no relationship exists. as shown in Figure 5. is used to identify any interrelationships between each of the technical descriptors. Symbols are used to describe the strength of the interrelationships. An asterisk represents a strong negative relationship. An X represents a negative relationship. A circle represents a positive relationship. for example. Conversely. The correlation matrix is a triangular table attached to the technical descriptors.5.4. The relationship matrix for designing a handlebar stem for a mountain bike is shown in Figure 5.5. Figure 5. the relationship between the customer requirement of reasonable cost and the technical descriptor of steel world be strong (+9) because steel is cheaper than aluminum and titanium.
The symbols describe the direction of the correlation. This diagram allows the user to identify which technical descriptors support one another and which are in conflict. Even though difficult. engineering changes. represent points at which tradeoffs must be made. The added weight of stronger bumpers. Taguchi methods can be implemented. For instance. the interrelationship between the technical descriptors of titanium and sand casting would be a strong negative (-9) correlation because a titanium part would never be sand cast. In other words. increased costs. the interrelationship between the technical descriptors of aluminum and die casting would be a strong positive (+9) correlation because aluminum is usually die cast. a strong positive interrelationship would be a nearly perfectly positive correlation. An example of tradeoffs is in the design of a car. Tradeoffs that are not identified and resolved will often lead to unfulfilled requirements. antilock brakes. Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by adding the interrelationship matrix to the house of quality. air bags. The interrelationship matrix is constructed by assigning symbols or numbers to represent the degree of correlation (positive or negative) between each of the technical descriptors. In the case of conflicting technical descriptors. because they cross functional area boundaries. Conversely. and the soon-to-come federal side-impact standards will ultimately reduce the fuel efficiency of the car. Some of the tradeoffs may require highlevel managerial decisions. where the customer requirements of high fuel economy and safety yield technical descriptors that conflict. A strong negative interrelationship would be a nearly perfectly negative correlation. and poorer quality. early resolution of tradeoffs is essential to shorten product development time. The interrelationship 87 . or pure common sense dictates. Conflicting technical descriptors are extremely important because they are frequently the result of conflicting customer requirements and. consequently.
matrix for designing a handlebar stem for a mountain bike is shown in Figure 5. The competitive assessment.6 and 5. Customer competitive assessment The customer competitive assessment is the block of columns corresponding to each customer requirement in the house of quality on the right side of the relationship matrix. These rankings can also be plotted across from each customer requirement. respectively.6. because they give the organization an understanding on where its product stands in relationship to the market. Empty spaces indicate that no correlation exists.7. The customer competitive assessment is a good way to determine if the customer requirements have been met and identify areas to concentrate on in the next design. either positive or negative. as shown in Figure 5. The customer competitive assessment also contains an appraisal of where an organization stands relative to its major competitors in terms of each customer requirement. Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by adding the customer competitive assessment to the house of quality. using different symbols for each product. as shown in Figures 5.5. The numbers 1 through 5 are listed in the competitive evaluation column to indicate a rating of 1 for worst and 5 for best. 88 . Both assessments are very important. Step 5 – Competitive Assessments The competitive assessments are a pair of weighted tables (or graphs) the depict item for item how competitive products compare with current organization products.
Figure 5.6. Adding customer competitive assessment to the House of Quality The customer competitive assessment is constructed by assigning ratings for each customer requirement from 1 (worst) to 5 ( best) for the new handlebar stem and major competitor A‘s and B‘s handlebar stem. The customer competitive assessment for designing a handlebar stem for a mountain bike is shown in Figure 5.6. 89 .
7.7. the products are evaluated for each technical descriptor. the test data are converted to the numbers 1 through 5. Similar to the customer competitive assessment.Figure 5. as shown in Figure 5. which are listed in the competitive evaluation row to indicate a rating. After respective units have been established. 1 for worst and 5 for best. Adding technical competitive assessment to the House of Quality Technical competitive assessment The technical competitive assessment makes up a block of rows corresponding to each technical descriptor in the house of quality beneath the relationship matrix. These rankings can then be entered 90 .
then a mistake in engineering judgment has occurred and should be corrected. The technical competitive assessment is often useful in uncovering gaps in engineering judgment. If an organization‘s technical assessment shows its product to be superior to the competition.8. 91 . a comparison is made between the customer‘s competitive evaluation and the objective measure ranking. When a technical descriptor directly relates to a customer requirement. target value.below each technical descriptor using the same numbers as used in the customer competitive assessment. Step 6 – Develop Prioritized Customer Requirements The prioritized customer requirements make up a block of columns corresponding to each customer requirement in the house of quality on the right side of the customer competitive assessment as shown in Figure 5. scale-up factor. The technical competitive assessment is constructed by assigning ratings for each technical descriptor from 1 (worst) to 5 (best) for the new handlebar stem and major competitor A‘s and B‘s handlebar stem. Customer requirements and technical descriptors that are strongly related should also exhibit a strong relationship in their competitive assessments. The technical competitive assessment for designing a handlebar stem for a mountain bike is shown in Figure 5. then the customer assessment should show a superior assessment. then the customer assessment should show a superior assessment. If the customer disagrees.7. Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by adding the technical competitive assessment to the house of quality. and an absolute weight. If the customer disagrees. These prioritized customer requirements contain columns for importance to customer. sales point.
This column is where the QFD team decides whether they want to keep their product unchanged. preferably. Importance ratings represent the relative importance of each customer requirement in terms of each other. then it could be assigned a value of 7. For instance. 92 . or make the product better than the competition. In other words. the higher the rating. if durability is not very important to the customer. the focus group-ranks each customer requirement by assigning it a rating. Conversely. The importance to customer for designing a handlebar stem for a mountain bike is shown in Figure 5. because each member of the QFD team might believe different requirements should be ranked higher. 5 for best can be used. The importance rating is useful for prioritizing efforts and making trade-off decisions. then it could be assigned a value of 3. improve the product. Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by determining the importance to customer of each customer requirement.8. Assigning ratings to customer requirements in sometimes difficult. if light weight is important to the customer.Importance to customer The QFD team-or. TARGET VALUE The target-value column is on the same scale as the customer competitive assessment (1 for worst. The importance to customer is determined by rating each customer requirement form 1 (least important) to 10 (very important). Numbers 1 through 10 are listed in the importance to customer column to indicate a rating of 1 for least important and 10 for very important. the more important the customer requirement.
Adding prioritized customer requirements to the House of Quality Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by determining the target value for each customer requirement.8. then the 93 . For instance. improves the product. if lightweight has a product rating of 3 and the QFD team wishes to improve their product. or exceeds the competition.Figure 5. The garget value is determined by evaluating the assessment of each customer requirement and setting a new assessment value that keeps the product as is.
the important consideration is the level where the product is now and what the target rating is and deciding whether the difference is within reason. Consequently. For example. with 2. The higher the number. Examples problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by determining the scale-up factor for each customer requirement. For instance.3. Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by determining the sales point for each customer requirement. The target value for designing a handlebar stem for a mountain bike is shown in Figure 5. the more effort is needed. Note that the numbers for scale-up factor are rounded off in Figure 5.0.target value could be assigned a value of 4. Here.8 Sales point The sales point tells the QFD team how well a customer requirement will sell. then the scale-up factor is 1. the target ratings often need to be reduced to more realistic values.0 being the highest. The objective here is to promote the best customer requirement and any remaining customer requirements that will help in the sale of the product.8. if light weight has a product rating of 3 and the target value is 4. Scale-up factor The scale-up factor is the ratio of the target value to the product rating given in the customer competitive assessment. the sales point is a value between 1.0 and 2. The scale-up factor is determined by dividing the target value by the product rating given in the customer competitive assessment. Sometimes there is not a choice because of difficulties in accomplishing the target. 94 . The scale-up factor for designing a handlebar stem for a mountain bike is shown in Figure 112.
Step 7. the sales point is given a value of 1. After summing all the absolute weights. 95 .8.8.3 x 1. Absolute weight Finally. Note that the numbers for absolute weight are rounded off in Figure 5. and sales point for each customer requirement. The weight can then be used as a guide for the planning phase of the product development. and sales point: Absolute Weight = (Importance to Customer) X (Scale-up Factor) X (Sales Point) A sample calculation is included in Figure 5. The absolute weight is determined by multiplying the importance to customer. Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by determining the absolute weight for each customer requirement. scale-up factor. the absolute weight is calculated by multiplying the importance to customer. scale-up factor. For instance. for reasonable cost the absolute weight is 8 x 1.5.8. an aerodynamic look could help the sale of the handlebar stem. so the sales point is given a value of 1. The absolute weight for designing a handlebar stem for a mountain bike is shown in Figure 5.5 = 16. a percent and rank for each customer requirement can be determined. The sales point for designing a handlebar stem for a mountain bike is shown in Figure 5. For instance. If a customer requirement will not help the sale of the product.Develop Prioritized Technical Descriptors The prioritized technical descriptors make up a block of rows corresponding to each technical descriptor in the house of quality below the technical competitive assessment.The sales point is determined by identifying the customer requirements that will help the sale of the product.8.
target value. Adding prioritized technical descriptors to the House of Quality as shown in Figure 5. These prioritized technical descriptors contain degree of technical difficulty.Figure 5. and absolute and relative weights. These measures provide specific objectives that guide the subsequent design and provide a means of objectively assessing progress and minimizing subjective opinions 96 . The QFD team identifies technical descriptors that are most needed to fulfill customer requirements and need improvement.9.9.
9. Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by determining the target value for each technical descriptor. helps to evaluate the ability to implement certain quality improvements. The degree of difficulty is determined by rating each technical descriptor from 1 (least difficult) to 10 (very difficult).9. which is expressed in the first row of the prioritized technical descriptors. when used. For instance. The target value for designing a handlebar stem for a mountain bike is shown in Figure 5. The target value for each technical descriptor is determined in the same way that the target value was determined for each customer requirement (see appropriate Example). How much it takes to meet or exceed the customer‘s expectations is answered by evaluating all the information entered into the house of quality and selecting target values. the degree of difficulty for die casting is 7.Degree of difficulty Many users of the house of quality add the degree of technical difficulty for implementing each technical descriptor. The degree of technical difficulty. 97 . This is an objective measure that defines values that must be obtained to achieve the technical descriptor. whereas the degree of difficulty for sand casting is 3 because it is a much easier manufacturing process. Target value A target value for each technical descriptor is also included below the degree of technical difficulty. Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by determining the degree of difficulty for each technical descriptor. The degree of difficulty for designing a handlebar stem for a mountain bike is shown in Figure 5.
as shown previously in Figure 5.…….8.….. m) = column vector of importance to customer for the customer requirements (i = l. n) = number of technical descriptors = number of customer requirements Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by determining the absolute weight for each technical descriptor. A popular and easy method for determining the weights is to assign numerical values to symbols in the relationship matrix symbols. j = l..…. The greater values of absolute weight indicate that the handlebar stem should be an aluminum die casting.. The absolute weight for the jth technical descriptor is then given by n a j = ∑ Rij C i i=1 where aj = row vector of absolute weights for the technical descriptors (i = l.Absolute weight The last two rows of the prioritized technical descriptors are the absolute weight and relative weight. The absolute weight for each technical descriptor is determined by taking the dot product of the column in the relationship matrix and the column for importance to customer. for aluminum the absolute weight is 9 x 8 + 1 x 5 + 9 x 5 + 9 x 2 + 9 x 7 + 3 x 5 + 3 x 3 = 227 The absolute weight for designing a handlebar stem for a mountain bike is shown in Figure 5. 98 .4.…. For instance. n.m) Rij ci m n = weights assigned to the relationship matrix (i = l.
…. The relative weight for each technical descriptor is determined by taking the dot product of the column in the relationship matrix and the column for absolute 99 . m) di = column vector of absolute weights for the customer requirements (i = l. The primary difference between these weights is that the relative weight also includes information on customer scale-up factor and sales point. For example. These weights show the impact of the technical characteristics on the customer requirements. It is n b j = ∑ Rij d i i=1 where b = row vector relative weights for the technical descriptors (j = l. Along with the degree of technical difficulty.. They can be organized into a Pareto diagram to show which technical characteristics are important in meeting customer requirements. columns for the number of service complaints may be added. the relative weight for the jth technical descriptor is then given by replacing the degree for importance for the customer requirements with the absolute weight for customer requirements. Example problem Continue the development process of designing a handlebar stem for a mountain bike (see previous Examples) by determining the relative weight for each technical descriptor. n) Higher absolute and relative ratings identify areas where engineering efforts need to be concentrated. decisions can be made concerning where to allocate resources for quality improvement.. Each QFD team can customize the house of quality to suit their particular needs.Relative weight In a similar manner.…..
for die casting the relative weight is 3 x 16 + 9 x 8 + 9 x 5 + 3 x 2 + 0 x 18 + 3 x 5 + 9 x 3 = 213. The greater values of relative weight also indicate that the handlebar stem should be aluminum die casting. For instance. **********THE END************** 10 0 .weight in the prioritized customer requirements.9. The relative weight for designing a handlebar stem for a mountain bike is shown in Figure 5.
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