OM0011 Q.No 1 Marks Total Marks Defining quality in manufacturing organizations is often different from that of services.

State the differences between manufacturing and service organizations with regard to Quality. What are the Costs involved with respect to Quality. Differences Costs involved with respect to Quality Ans:Eight dimensions of product quality management can be used at a strate ic level to analy!e "uality characteristics# $he concept was defined by David %arvin# &o'e of the di'ensions are 'utually reinforcin ( whereas others are not)i'prove'ent in one 'ay be at the e*pense of others# +nderstandin the trade-offs desired by custo'ers a'on these di'ensions can help build a co'petitive advanta e# %arvin,s ei ht di'ensions can be su''ari!ed as follows:-1. 1# /erfor'ance: /erfor'ance refers to a product,s pri'ary operatin characteristics# $his di'ension of "uality involves 'easurable attributes0 brands can usually be ran1ed ob2ectively on individual aspects of perfor'ance# 3# 4eatures: 4eatures are additional characteristics that enhance the appeal of the product or service to the user# 5# 6eliability: 6eliability is the li1elihood that a product will not fail within a specific ti'e period# $his is a 1ey ele'ent for users who need the product to wor1 without fail# 7# Confor'ance: Confor'ance is the precision with which the product or service 'eets the specified standards# 5# Durability: Durability 'easures the len th of a product8s life# 9hen the product can be repaired( esti'atin durability is 'ore co'plicated# $he ite' will be used until it is no lon er econo'ical to operate it# $his happens when the repair rate and the associated costs increase si nificantly# :# &erviceability: &erviceability is the speed with which the product can be put into service when it brea1s down( as well as the co'petence and the behavior of the serviceperson# ;# Aesthetics: Aesthetics is the sub2ective di'ension indicatin the 1ind of response a user has to a product# <t represents the individual8s personal preference# =# /erceived Quality: /erceived Quality is the "uality attributed to a ood or service based on indirect 'easures# 5 5 10 Questions

Demings ! "oints pose a challenge for many firms to figure out how to apply them in a meaningful way that will result in continual improvement. Discuss Demings ! "oints. >istin of De'in 8s 17 /oints 7 : 10

?*planation Constancy of purpose

Create constancy of purpose for continual improvement of products and service to society, allocating resources to provide for long range needs rather than only short term profitability, with a plan to become competitive, to stay in business, and to provide jobs.

2. The new philosophy

Adopt the new philosophy. We are in a new economic age, created in Japan. We can no longer live with commonly accepted levels of delays, mistakes, defective materials, and defective workmanship. Transformation of Western management style is necessary to halt the continued decline of business and industry.

3. Cease dependence on mass inspection

liminate the need for mass inspection as the way of life to achieve !uality by building !uality into the product in the first place. "e!uire statistical evidence of built in !uality in both manufacturing and purchasing functions.

4. End lowest tender contracts

nd the practice of awarding business solely on the basis of price tag. #nstead re!uire meaningful measures of !uality along with price. "educe the number of suppliers for the same item by eliminating those that do not !ualify with statistical and other evidence of !uality. The aim is to minimi$e total cost, not merely initial cost, by minimi$ing variation. This may be achieved by moving toward a single supplier for any one item, on a long term relationship of loyalty and trust. %urchasing managers have a new job, and must learn it.

5. Improve every process

#mprove constantly and forever every process for planning, production, and service. &earch continually for problems in order to improve every activity in the company, to improve !uality and productivity, and thus to constantly decrease costs. #nstitute innovation and constant improvement of product, service, and process. #t is management's job to work continually on the system (design, incoming materials, maintenance, improvement of machines, supervision, training, retraining).

6. Institute training on the o!

#nstitute modern methods of training on the job for all, including management, to make better use of every employee. *ew skills are re!uired to keep up with changes in materials, methods, product and service design, machinery, techni!ues, and service.

". Institute leadership

Adopt and institute leadership aimed at helping people do a better job. The responsibility of managers and supervisors must be changed from sheer numbers to !uality. #mprovement of !uality will automatically improve productivity. +anagement must ensure that immediate action is taken on reports of inherited defects, maintenance re!uirements, poor tools, fu$$y operational definitions, and all conditions detrimental to !uality.

#. $rive out fear

ncourage effective two way communication and other means to drive out fear throughout the organi$ation so that everybody may work effectively and more productively for the company.

%. &rea' down !arriers

,reak down barriers between departments and staff areas. %eople in different areas, such as -easing, +aintenance, Administration, must work in teams to tackle problems that may be encountered with products or service.

(). Eliminate e*hortations

liminate the use of slogans, posters and e.hortations for the work force, demanding /ero 0efects and new levels of productivity, without providing methods. &uch e.hortations only create adversarial relationships1 the bulk of the causes of low !uality and low productivity belong to the system, and thus lie beyond the power of the work force

((. Eliminate ar!itrary numerical targets

liminate work standards that prescribe !uotas for the work force and numerical goals for people in

management. &ubstitute aids and helpful leadership in order to achieve continual improvement of !uality and productivity.

(2. +ermit pride of wor'manship

"emove the barriers that rob hourly workers, and people in management, of their right to pride of workmanship. This implies, among other things, abolition of the annual merit rating (appraisal of performance) and of +anagement by 2bjective. Again, the responsibility of managers, supervisors, foremen must be changed from sheer numbers to !uality.

(3. Encourage education

#nstitute a vigorous program of education, and encourage self improvement for everyone. What an organi$ation needs is not just good people1 it needs people that are improving with education. Advances in competitive position will have their roots in knowledge.

(4. Top management commitment and action

Clearly define top management's permanent commitment to ever improving !uality and productivity, and their obligation to implement all of these principles. #ndeed, it is not enough that top management commit themselves for life to !uality and productivity. They must know what it is that they are committed to3that is, what they must do. Create a structure in top management that will push every day on the preceding 45 %oints, and take action in order to accomplish the transformation. &upport is not enough6 action is re!uired

Discuss the Contribution of W. # Shewhart. Describe the "DC# cycle # Contribution of 9# A &hewhart ?*planation of /DCA cycle 5 5 10

William Edwards Deming @October 17( 1A00 B Dece'ber 30( 1AA5C was an A'erican statistician( professor( author( lecturer( and consultant# De is perhaps best 1nown for the E/lan-Do-Chec1-ActE cycle popularly na'ed after hi'# <n Fapan( fro' 1A50 onward( he tau ht top business 'ana ers how to i'prove desi n @and thus serviceC( product "uality( testin ( and sales @the last throu h lobal 'ar1etsC-1. by various 'eans( includin the application of statistical 'ethods# De'in 'ade a si nificant contribution to Fapan,s later reputation for innovative( hi h-"uality products( and for its econo'ic power# De is re arded as havin had 'ore i'pact upon Fapanese 'anufacturin and business than any other individual not of Fapanese herita e# Despite bein considered so'ewhat of a hero in Fapan( he was only 2ust be innin to win widespread reco nition in the +#&# at the ti'e of his death#-3. /resident 6ea an awarded hi' the Gational Medal of $echnolo y in 1A=;# $he followin year( De'in also received the Distin uished Career in &cience award fro' the Gational Acade'y of &ciences#

De'in received a H&c in electrical en ineerin fro' the +niversity of 9yo'in at >ara'ie @1A31C( an M& fro' the +niversity of Colorado @1A35C( and a /hD fro' Iale +niversity @1A3=C# Hoth raduate de rees were in 'athe'atics and physics# De had an internship at Hell $elephone >aboratories while studyin at Iale# De later wor1ed at the +#&# Depart'ent of A riculture and the Census Depart'ent# 9hile wor1in under %en# Dou las MacArthur as a census consultant to the Fapanese overn'ent( he fa'ously tau ht statistical process control 'ethods to Fapanese business leaders( returnin to Fapan for 'any years to consult and witness the econo'ic rowth he had predicted would co'e as a result of the application of techni"ues learned fro' 9alter &hewhart at Hell >aboratories# >ater( he beca'e a professor at Gew Ior1 +niversity while en a ed as an independent consultant in 9ashin ton( D#C#

De'in was the author of Out of the Crisis @1A=3B1A=:C and The New Economics for Industry, Government, Education @1AA5C( which includes his &yste' of /rofound Jnowled e and the 17 /oints for Mana e'ent @described belowC# De'in played the flute and dru's and co'posed 'usic throu hout his life( includin sacred choral co'positions and an arran e'ent of The Star Spangled Banner#-5. <n 1AA5( De founded the 9# ?dwards De'in <nstitute in 9ashin ton( D#C#( where the De'in Collection at the +#&# >ibrary of Con ress includes an e*tensive audiotape and videotape archive# $he ai' of the <nstitute is to foster understandin of the De'in &yste' of /rofound Jnowled e to advance co''erce( prosperity( and peace#-7. De'in ,s teachin s and philosophy are best illustrated by e*a'inin the results they produced after they were adopted by Fapanese industry( as the followin e*a'ple shows: 4ord Motor Co'pany was si'ultaneously 'anufacturin a car 'odel with trans'issions 'ade in Fapan and the +nited &tates# &oon after the car 'odel was on the 'ar1et( 4ord custo'ers were re"uestin the 'odel with Fapanese trans'ission over the +&-'ade trans'ission( and they were willin to wait for the Fapanese 'odel# As both trans'issions were 'ade to the sa'e specifications( 4ord en ineers could not understand the custo'er preference for the 'odel with Fapanese trans'ission# 4inally( 4ord en ineers decided to ta1e apart the two different trans'issions# $he A'erican-'ade car parts were all within specified tolerance levels# On the other hand( the Fapanese car parts were virtually identical to each other( and 'uch closer to the no'inal values for the parts B e# #( if a part was supposed to be one foot lon ( plus or 'inus 1K= of an inch B then the Fapanese parts were all within 1K1: of an inch# $his 'ade the Fapanese cars run 'ore s'oothly and custo'ers e*perienced fewer proble's

Key principles
De'in offered fourteen 1ey principles to 'ana ers for transfor'in business effectiveness# $he points were first presented in his boo1 Out of the Crisis @p# 35B37C-37. Althou h De'in does not use the ter' in his boo1( it is credited with launchin the $otal Quality Mana e'ent 'ove'ent#-35. 1# Create constancy of purpose toward i'prove'ent of product and service( with the ai' to beco'e co'petitive( stay in business and to provide 2obs# 3# Adopt the new philosophy# 9e are in a new econo'ic a e# 9estern 'ana e'ent 'ust awa1en to the challen e( 'ust learn their responsibilities( and ta1e on leadership for chan e# 5# Cease dependence on inspection to achieve "uality# ?li'inate the need for 'assive inspection by buildin "uality into the product in the first place# 7# ?nd the practice of awardin business on the basis of a price ta # <nstead( 'ini'i!e total cost# Move towards a sin le supplier for any one ite'( on a lon -ter' relationship of loyalty and trust# 5# <'prove constantly and forever the syste' of production and service( to i'prove "uality and productivity( and thus constantly decrease costs#

$%plain the concept of &ust'(n')ime and "o*a'+o*e. ?*planation of the Concept of Fust-<n-$i'e ?*planation of the Concept of /o1a-Io1e 5 5 10

oka!yoke @?C -po1a yo1e. is a Fapanese ter' that 'eans E'ista1e-proofin E# A po1a-yo1e is any 'echanis' in a lean 'anufacturin process that helps an e"uip'ent operator avoid @yo!eruC 'ista1es @po!aC# <ts purpose is to eli'inate product defects by preventin ( correctin ( or drawin attention to hu'an errors as they occur#-1. $he concept was for'alised( and the ter' adopted( by

&hi eo &hin o as part of the $oyota /roduction &yste'#-3.-5. <t was ori inally described as "a!a#yo!e( but as this 'eans Efool-proofin E @or Eidiot-proofin EC the na'e was chan ed to the 'ilder po!a#yo!e# /o1a-yo1e e*a'ple: ?thernet cable plu is desi ned to be plu ed in in only one direction#

More broadly( the ter' can refer to any behavior-shapin constraint desi ned into a process to prevent incorrect operation by the user#-citation needed. &i'ilarly( a constraint that is part of the product @or serviceC desi n is considered Desi n for Manufacturability or Desi n for L# A 'odern /o1a-Io1e application is when a driver 'ust press on the bra1e pedal @a process step( therefore a po1a-yo1eCC prior to startin an auto'obile# $he interloc1 serves to prevent unintended 'ove'ent of the car# An additional po1ayo1e would be the switch in the car,s ear shift that re"uires the car to be in /ar1 or Geutral before the car can be started# $hese serve as behavior-shapin constraints as the se"uence of Ecar in par1 @or neutralCE andKor E4oot on bra1eE 'ust be perfor'ed before the car is allowed to start# Over ti'e( the driver,s behavior is confor'ed with the re"uire'ents by repetition and habit#

Implementation in manufacturing
/o1a-yo1e can be i'ple'ented at any step of a 'anufacturin process where so'ethin can o wron or an error can be 'ade#-:. 4or e*a'ple( a 2i that holds pieces for processin 'i ht be 'odified to only allow pieces to be held in the correct orientation(-;. or a di ital counter 'i ht trac1 the nu'ber of spot welds on each piece to ensure that the wor1er e*ecutes the correct nu'ber of welds#-;. &hi eo &hin o reco ni!ed three types of po1a-yo1e for detectin and preventin errors in a 'ass production syste':-3.-:. 1# $he contact 'ethod identifies product defects by testin the product,s shape( si!e( color( or other physical attributes# 3# $he fi$ed#value @or constant num"erC 'ethod alerts the operator if a certain nu'ber of 'ove'ents are not 'ade# 5# $he motion#step @or se%uenceC 'ethod deter'ines whether the prescribed steps of the process have been followed# ?ither the operator is alerted when a 'ista1e is about to be 'ade( or the po1a-yo1e device actually prevents the 'ista1e fro' bein 'ade# <n &hin o,s le*icon( the for'er i'ple'entation would be called a warning po1a-yo1e( while the latter would be referred to as a control po1a-yo1e#-3. &hin o ar ued that errors are inevitable in any 'anufacturin process( but that if appropriate po1ayo1es are i'ple'ented( then 'ista1es can be cau ht "uic1ly and prevented fro' resultin in defects# Hy eli'inatin defects at the source( the cost of 'ista1es within a co'pany is reduced

$%plain the $%cellence ,aturity ,odel. What are the steps involved in achieving organizational e%cellence?*planation of ?*cellence Maturity Model >istin the steps 5 3 10

?*planation of the &teps involved in achievin or ani!ational e*cellence $he "apa#ility Maturity Model $"MM%-1. is a develop'ent 'odel created after study of data collected fro' or ani!ations that contracted with the +#&# Depart'ent of Defense( who funded the research# $his 'odel beca'e the foundation fro' which Carne ie Mellon created the &oftware ?n ineerin <nstitute @&?<C# $he ter' E'aturityE relates to the de ree of for'ality and opti'i!ation of processes( fro' ad hoc practices( to for'ally defined steps( to 'ana ed result 'etrics( to active opti'i!ation of the processes#

The model&s aim is to impro'e e(isting software!de'elopment processes) #ut it can also #e applied to other processes. Maturity model
A 'aturity 'odel can be viewed as a set of structured levels that describe how well the behaviors( practices and processes of an or ani!ation can reliably and sustainably produce re"uired outco'es# A 'aturity 'odel can be used as a bench'ar1 for co'parison and as an aid to understandin - for e*a'ple( for co'parative assess'ent of different or ani!ations where there is so'ethin in co''on that can be used as a basis for co'parison# <n the case of the CMM( for e*a'ple( the basis for co'parison would be the or ani!ations, software develop'ent processes#

*tructure
$he 'odel involves five aspects:

&aturity 'evels( a 5-level process 'aturity continuu' - where the upper'ost @5thC level is a notional ideal state where processes would be syste'atically 'ana ed by a co'bination of process opti'i!ation and continuous process i'prove'ent# )ey *rocess +reas( a Jey /rocess Area identifies a cluster of related activities that( when perfor'ed to ether( achieve a set of oals considered i'portant# Goals( the oals of a 1ey process area su''ari!e the states that 'ust e*ist for that 1ey process area to have been i'ple'ented in an effective and lastin way# $he e*tent to which the oals have been acco'plished is an indicator of how 'uch capability the or ani!ation has established at that 'aturity level# $he oals si nify the scope( boundaries( and intent of each 1ey process area# Common ,eatures( co''on features include practices that i'ple'ent and institutionali!e a 1ey process area# $here are five types of co''on features: co''it'ent to perfor'( ability to perfor'( activities perfor'ed( 'easure'ent and analysis( and verifyin i'ple'entation# )ey *ractices( $he 1ey practices describe the ele'ents of infrastructure and practice that contribute 'ost effectively to the i'ple'entation and institutionali!ation of the area#

+e'els
$here are five levels defined alon the continuu' of the 'odel and( accordin to the &?<: E/redictability( effectiveness( and control of an or ani!ation,s software processes are believed to i'prove as the or ani!ation 'oves up these five levels# 9hile not ri orous( the e'pirical evidence to date supports this beliefE#-citation needed. 1# Initial @chaotic( ad hoc( individual heroicsC - the startin point for use of a new or undocu'ented repeat process# 3# -epeata"le - the process is at least docu'ented sufficiently such that repeatin the sa'e steps 'ay be atte'pted#

5# .efined - the process is definedKconfir'ed as a standard business process( and deco'posed to levels 0( 1 and 3 @the last bein 9or1 <nstructionsC# 7# &anaged - the process is "uantitatively 'ana ed in accordance with a reed-upon 'etrics# 5# Optimi/ing - process 'ana e'ent includes deliberate process opti'i!ationKi'prove'ent# 9ithin each of these 'aturity levels are Jey /rocess Areas which characterise that level( and for each such area there are five factors: oals( co''it'ent( ability( 'easure'ent( and verification# $hese are not necessarily uni"ue to CMM( representin ) as they do ) the sta es that or ani!ations 'ust o throu h on the way to beco'in 'ature# $he 'odel provides a theoretical continuu' alon which process 'aturity can be developed incre'entally fro' one level to the ne*t# &1ippin levels is not allowedKfeasible# >evel 1 - Initial 0Chaotic1 <t is characteristic of processes at this level that they are @typicallyC undocu'ented and in a state of dyna'ic chan e( tendin to be driven in an ad hoc( uncontrolled and reactive 'anner by users or events# $his provides a chaotic or unstable environ'ent for the processes# :# : Discuss the concept of .usiness "rocess re'engineering. $%plain how to implement .usiness "rocess re'engineering. Meanin 6elevance of H/6 in Quality Mana e'ent <'ple'entation ?*planation of the &teps involved in achievin or ani!ational e*cellence ,usiness process re!engineering is a business 'ana e'ent strate y( ori inally pioneered in the early 1AA0s( focusin on the analysis and desi n of wor1flows and processes within an or ani!ation# H/6 ai'ed to help or ani!ations funda'entally rethin1 how they do their wor1 in order to dra'atically i'prove custo'er service( cut operational costs( and beco'e world-class co'petitors#-1. <n the 'id1AA0s( as 'any as :0M of the 4ortune 500 co'panies clai'ed to either have initiated reen ineerin efforts( or to have plans to do so#-3. H/6 see1s to help co'panies radically restructure their or ani!ations by focusin on the round-up desi n of their business processes# Accordin to Davenport @1AA0C a business process is a set of lo ically related tas1s perfor'ed to achieve a defined business outco'e# 6e-en ineerin e'phasi!ed a holistic focus on business ob2ectives and how processes related to the'( encoura in full-scale recreation of processes rather than iterative opti'i!ation of subprocesses#-1. Husiness process re-en ineerin is also 1nown as business process redesi n( business transfor'ation( or business process chan e 'ana e'ent#

Husiness /rocess 6e-en ineerin @H/6C is basically rethin1in and radically redesi nin an or ani!ation,s e*istin resources# H/6( however( is 'ore than 2ust business i'provisin 0 it is an approach for redesi nin the way wor1 is done to better support the or ani!ation,s 'ission and reduce costs# 6een ineerin starts with a hi h-level assess'ent of the or ani!ation,s 'ission( strate ic oals( and custo'er needs# Hasic "uestions are as1ed( such as EDoes our 'ission need to be redefinedN Are

our strate ic oals ali ned with our 'issionN 9ho are our custo'ersNE An or ani!ation 'ay find that it is operatin on "uestionable assu'ptions( particularly in ter's of the wants and needs of its custo'ers# Only after the or ani!ation rethin1s what it should be doin ( does it o on to decide how best to do it#-1. 9ithin the fra'ewor1 of this basic assess'ent of 'ission and oals( re-en ineerin focuses on the or ani!ation,s business processes)the steps and procedures that overn how resources are used to create products and services that 'eet the needs of particular custo'ers or 'ar1ets# As a structured orderin of wor1 steps across ti'e and place( a business process can be deco'posed into specific activities( 'easured( 'odeled( and i'proved# <t can also be co'pletely redesi ned or eli'inated alto ether# 6e-en ineerin identifies( analy!es( and re-desi ns an or ani!ation,s core business processes with the ai' of achievin dra'atic i'prove'ents in critical perfor'ance 'easures( such as cost( "uality( service( and speed#-1. 6e-en ineerin reco ni!es that an or ani!ation,s business processes are usually fra 'ented into subprocesses and tas1s that are carried out by several speciali!ed functional areas within the or ani!ation# Often( no one is responsible for the overall perfor'ance of the entire process# 6een ineerin 'aintains that opti'i!in the perfor'ance of subprocesses can result in so'e benefits( but cannot yield dra'atic i'prove'ents if the process itself is funda'entally inefficient and out'oded# 4or that reason( re-en ineerin focuses on re-desi nin the process as a whole in order to achieve the reatest possible benefits to the or ani!ation and their custo'ers# $his drive for reali!in dra'atic i'prove'ents by funda'entally re-thin1in how the or ani!ation,s wor1 should be done distin uishes re-en ineerin fro' process i'prove'ent efforts that focus on functional or incre'ental i'prove'en

The role of information technology

<nfor'ation technolo y @<$C has historically played an i'portant role in the reen ineerin concept#-10. <t is considered by so'e as a 'a2or enabler for new for's of wor1in and collaboratin within an or ani!ation and across or ani!ational borders-citation needed.# H/6 literature -11. identified several so called disruptive technologies that were supposed to challen e traditional wisdo' about how wor1 should be perfor'ed#

&hared databases( 'a1in infor'ation available at 'any places ?*pert syste's( allowin eneralists to perfor' specialist tas1s $eleco''unication networ1s( allowin or ani!ations to be centrali!ed and decentrali!ed at the sa'e ti'e Decision-support tools( allowin decision-'a1in to be a part of everybody,s 2ob 9ireless data co''unication and portable co'puters( allowin field personnel to wor1 office independent <nteractive videodis1( to et in i''ediate contact with potential buyers Auto'atic identification and trac1in ( allowin thin s to tell where they are( instead of re"uirin to be found Di h perfor'ance co'putin (and school( allowin on-the-fly plannin and revisionin

<n the 'id-1AA0s( especially wor1flow 'ana e'ent syste's were considered as a si nificant contributor to i'proved process efficiency# Also ?6/ @?nterprise 6esource /lannin C vendors( such as &A/( FD ?dwards( Oracle( /eople&oft( positioned their solutions as vehicles for business process redesi n and i'prove'ent#