A PROJECT REPORT

On
TQM Practices in Amtek Auto Ltd. TQM Practices in Amtek Auto Ltd.
Submitted in partial fulfillment of the requirement for the award of degree
Of
Master of Business Administration (TQM)
AMTEK AUTO LTD.

Submitted by:
Manish Madhukar
Under the guidance of:
Mr. Sweta Sinha
PREFACE
I have made this report as an essential part of I semester !ourse
!urri!ulum of "#A$ The title of pro%e!t is &T'" pra!ti!es in Amte( Auto
)td$*
In the !ourse+ I have had the golden opportunit, of seeing the
pra!ti!al appli!ation of whatever a!ademi! (nowledge - gain a
valuable insight into !orporate !ulture with all its environmental
operational !omple.ities I have had the good fortune in intera!ting
with the e.e!utive and emplo,ee of Amte( Auto )td$ who were ver,
warm and !ordial in their !ondu!t toward me$
", report mainl, fo!uses on benefits gained after implementation of
T'"
In the report I have put out finest effort to !ompile the data with
utmost a!!ura!, - gave view to the best of m, %udgments
"anish "adhu(ar
Sikkim Manipal Universit


AC!"#$%E&'EME"T
I would li(e to e.press m, gratitude to all staff of Amte( Auto )td$ for
the valuable guidan!e+ supervision and (een interest in stud,+
progress and !ompletion of this pro%e!t$
I would li(e to a!(nowledge the pre!ious !ontribution "anager
'ualit, who had been in !ontinuous support throughout the period$
I am also gra!eful to our fa!ult, member whose pre!ious guidan!e
throughout the session has been of undaunted help to us in
grooming our self and without whi!h this wor( wasn/t possible$
I would li(e to than( ea!h and ever, person who helped me and
shared with me their valuable time$ I would li(e to ta(e opportunit, to
than( them$
Submitted by
"anish "adhu(ar
Sikkim Manipal Universit

&EC%ARAT(#"
This pro%e!t report on &a stud, of T'" pra!ti!es in Amte( Auto )td$*
is submitted b, me for the partial fulfillment of the !ourse of "$#$A
from Sikkim Manipal Universit$
This is an original wor( done b, me e.pe!ted the guidan!e re!eived
whi!h has been properl, a!(nowledgement in the report$
This is not the !op, of an, other report or an, part of it hasn0t been
submitted for the award of an, degree or diploma$
"anish "adhu(ar
Sikkim Manipal Universit


$
("&E)
1EC)ARATIO2
AC32O4)E15E"E2T
PREA"#)E
CO"PA26 PRO7I)E
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PRO19CT RA25E
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"A2A5E"E2T
A4AR1S
TOTA) '9A)IT6 "A2A5E"E2T
PI))AR O7 T'"
#E2E7ITS O7 T'"
:S "OE"E2T AT A"TE3
'C "OE"E2T AT A"TE3
TP" "OE"E2T AT A"TE3
A22E;9RES
#I#)IO5RAP86
C#MPA"* PR#F(%E
AMTE! AUT# %T&+
4el!ome to A"TE3 Amte( Auto 5roup+ !omprised of Amte( Auto+
Amte( India and Ahmednagar 7orgings+ is one of the largest integrated
!omponent manufa!turers in India+ with a strong global presen!e$ It has
<= world !lass manufa!turing fa!ilities lo!ated in India >=?@ and Europe
><@$ 4ith the infrastru!ture and te!hnolog, platform developed over A:
,ears+ the 5roup is well positioned in the Indian Auto and 2onBAuto
!omponent mar(ets$
AMTE! 'R#UP #F C#MPA"(ES
Amte( Auto )td is one of the largest integrated automotive !omponent
manufa!turers in India with a strong global presen!e$ The !ompan, has
world !lass fa!ilities in India+ Europe and 2orth Ameri!a$ The, have
signifi!ant e.pertise in forging+ gre, and du!tile iron !asting+ gravit, and
highBpressure aluminum die !asting and ma!hining and subBassembl,$
The, also manufa!ture !omponents for nonBauto se!tors su!h as the
railwa,s+ spe!ialt, vehi!les+ aerospa!e+ agri!ultural and heav, earth
moving equipment$ The !ompan, is headquartered in 2ew 1elhi$ The
!ompan, operates in one segment+ whi!h in!ludes Automotive
Components$ The !ompan,/s produ!ts and servi!es in!lude !onne!ting
rods assl,C piston assl,+ !ase !omponent assemblies and forging$ Their
forging division has fa!ilities in "aharashtra+ 2orther Capital Region and
"adh,a Pradesh$ Automotive "a!hining 1ivison has fa!ilities in
Ra%asthan+ 9ttra(hand+ "aharashtra+ "issouri and 4itham$ Amte( Auto
)td was in!orporated in the ,ear D?EE$ In the ,ear D??=+ the !ompan,
initiated forging operations at 5urgaon+ India$ In the ,ear D??F+ the,
established a "a!hining unit at 5urgaon$ In the ,ear D??G+ the !ompan,
made a %oint venture >J@ agreement with #enda 3og,o Japan and
formed #enda Amte( )td at 5urgaon for manufa!turing 7l,wheel Ring
5ears$ In the ,ear D???+ the, entered into a %oint venture with Ateliers de
Si!!ardi and formed Amte( Si!!ardi at "anesar for manufa!turing
Cran(shaft$ In the ,ear AHHD+ the !ompan, a!quired auto !omponent
manufa!turing firm+ 4esman 8alvers!heidt 7orgings$ Also+ the, too(
over the Indsil Auto !omponents Coimbatore >India@ )td+ a full,
automated foundr, with ma!hining fa!ilities$ In the ,ear AHHA+ the
!ompan, established an Iron Casting fa!ilit, at #hiwadi$ The, a!quired
D<$EI of sta(e in Ahmednagar 7orgings for the total !onsideration of Rs$
:H !rore$ In the ,ear AHH=+ the, further a!quired DF+HH+HHH shares
representing AHI of the voting !apital in Ahmednagar 7orgings )td b,
the pri!e of Rs$ =<$:H per share$ In Jul, AHH:+ the !ompan, a!quired the
GHI of sta(e in Jelter 5mb8$ In the ,ear AHHF+ the !ompan, signed a
strategi!all, important :HK:H %oint venture with a large Canadian blue
!hip "agna Power train for establishing a manufa!turing fa!ilit, outside
1elhi+ India with the aim of ABPie!e 7le. Plate assemblies for automotive
appli!ations$ Also+ the, set up a new ma!hining fa!ilit, at 1haruhera
>India@$ The, made a %oint venture with "agna Powertrain for
manufa!turing 7ra!tured Conne!ting Rod "odules and formed the
!ompan, in the name of "PT "agna India )td$ In the ,ear AHHF+ the
!ompan, initiated the large s!ale Aluminum 8igh Pressure 1ie Casting
fa!ilit, at Ran%angaon+ Pune$ In the ,ear AHHG+ the, established one
manufa!turing fa!ilit, at Sanaswadi+ Pune >India@ for 7orging+ Casting
and "a!hining$
Te,-nolo. t-at trans,ends /oundaries
Thriving on !hallenges+ Amte( registered its presen!e a!ross 2orth
Ameri!a+ Europe - Asia to !ater to a number of !lients$ And is poised to
e.plore new global frontiers to invent new produ!ts and to s!ale new
heights$
It0s been a %ourne, dotted with !hallenges and e.pe!tations$ Toda,+ as
we step ba!( in time+ we find+ it was our !ontemporar, business
modalities and futuristi! approa!h that helped us grow with the time$
C#MPA"* 0(S(#"
8ighl, Customer Oriented and S,stem
Run OrganiLation with a Con!ern for So!iet, - Environment$
C#MPA"* M(SS(#"
To !reate a world !lass manufa!turing fa!ilit, providing defe!t free
pre!ision automotive !omponents >7l,wheel@ to automobile world
leaders while improving environmental performan!e$
C#MPA"* '#A%
To develop a 'ualit, - Environmental !ulture that will en!ourage
Continual Improvement+ throughout the Compan, b, team efforts$

The senior management at Amte( has a long and distinguished
e.perien!e in handling largeBs!ale automotive manufa!turing
operations$ It has been su!!essful in meeting the everBin!reasing
demands of the global automotive giants in terms of produ!t qualit,+
development+ deliver, and !ost !ontrol while improving the
!ompan,/s profitabilit, and ensuring a !onsistent growth for the last
nearl, two de!ades$ The senior management at Amte( is as followsK
Arvind 1ham Chairman
John 7lintham "anaging 1ire!tor - CEO
1$S$ "ali( "anaging 1ire!tor
$3$Pabb, "anaging 1ire!tor
5autam "alhotra Joint "anaging 1ire!tor
Adit,a "alhotra 1ire!tor
R ) Sehgal 1ire!tor
Avi%it #aner%ee 1ire!tor
AWARDS
$-at is Qualit1
'ualit, is the totalit, of features and !hara!teristi!s of a produ!t or
servi!e that bear on its abilit, to satisf, implied or stated needs$
#t-er &efinitions2
Fei.en/aum >D?:D@ and A//ott >D?::@ defined qualit, as
Malue0+
%evitt >D?GA@ as MConforman!e to Spe!ifi!ations0+
3osep- M+ 3uran >D?G<@ as M7itness for use0+
P-ilips B+ Cros/ >D?G?@ as MConforman!e to requirements0+
Ta.u,-i >D?ED@ as Mthe losses a produ!t imparts to the so!iet,
from the time the produ!t is shipped0+
"oriaki !ano as Mthe e.tent to whi!h a produ!t or servi!e
meets andCor e.!eeds a !ustomer0s e.pe!tations0
$-at is Total Qualit Mana.ement1
It i the !roce deigned to focu e"terna#$interna# cutomer
e"!ectation !re%enting !rob#em bui#ding& commitment to 'ua#ity
in the wor(force and !romoting to o!en deciion ma(ing.
T#TA%K Ever,one asso!iated with the !ompan, is involved in
!ontinuous improvement+ in all fun!tional area+ at all level$
QUA%(T*2 Customers0 e.pressed and implied requirements are met
full,
MA"A'EME"TK
E.e!utives are full, !ommitted$
1e!ision in a planned wa,$
To maintain e.isting lever of qualit,$
To improve e.isting lever of qualit,$
Effe!tive utiliLation of resour!e$
T'" is a set of management pra!ti!es throughout the organiLation+
geared to ensure the organiLation !onsistentl, meets or e.!eeds
!ustomer requirements$ T'" pla!es strong fo!us on pro!ess
measurement and !ontrols as means of !ontinuous improvement$
Total 'ualit, "anagement is an approa!h to the art of management
that originated in Japanese industr, in the D?:HNs and has be!ome
steadil, more popular in the 4est sin!e the earl, D?EHNs$
Total 'ualit, is a des!ription of the !ulture+ attitude and organiLation
of a !ompan, that aims to provide+ and !ontinue to provide+ its
!ustomers with produ!ts and servi!es that satisf, their needs$ The
!ulture requires qualit, in all aspe!ts of the !ompan,0s operations+
with things being done right first time+ and defe!ts and waste
eradi!ated from operations$
"an, !ompanies have diffi!ulties in implementing T'"$ Surve,s b,
!onsulting firms have found that onl, AHB=FI of !ompanies that
have underta(en T'" have a!hieved either signifi!ant or even
tangible improvements in qualit,+ produ!tivit,+ !ompetitiveness or
finan!ial return$ As a result man, people are s!epti!al about T'"$
8owever+ when ,ou loo( at su!!essful !ompanies ,ou find a mu!h
higher per!entage of su!!essful T'" implementation$
Total qualit, management is an integrative philosoph, of
management for !ontinuousl, improving the qualit, of produ!ts and
pro!esses$ It is used around the world$T'" fun!tions on the premise
that the qualit, of produ!ts and pro!esses is the responsibilit, of
ever,one who is involved with the !reation or !onsumption of the
produ!ts or servi!es offered b, an organiLation$ In other words+ T'"
!apitaliLes on the involvement of management+ wor(for!e+ suppliers+
and even !ustomers+ in order to meet or e.!eed !ustomer
e.pe!tations$ Considering the pra!ti!es of T'" as dis!ussed in si.
empiri!al studies+ Cua + "!3one and S!hroeder >AHHD@ identified the
nine !ommon T'" pra!ti!es as !rossBfun!tional produ!t design+
pro!ess management+ supplier qualit, management+ !ustomer
involvement+ information and feedba!(+ !ommitted leadership+
strategi! planning+ !rossBfun!tional training+ and emplo,ee
involvement$
Total 'ualit, "anagement >T'"@ is an approa!h that see(s to
improve qualit, and performan!e whi!h will meet or e.!eed
!ustomer e.pe!tations$ This !an be a!hieved b, integrating all
qualit,Brelated fun!tions and pro!esses throughout the !ompan,$
T'" loo(s at the overall qualit, measures used b, a !ompan,
in!luding managing qualit, design and development qualit, !ontrol
and maintenan!e+ qualit, improvement+ and qualit, assuran!e$ T'"
ta(es into a!!ount all qualit, measures ta(en at all levels and
involving all !ompan, emplo,ees$
#R('("S 4 5(ST#R* #F TQM
Total qualit, management has evolved from the qualit, assuran!e
methods that were first developed around the time of the 7irst 4orld
4ar$ The war effort led to large s!ale manufa!turing efforts that often
produ!ed poor qualit,$ To help !orre!t this+ qualit, inspe!tors were
introdu!ed on the produ!tion line to ensure that the level of failures
due to qualit, was minimiLed$
After the 7irst 4orld 4ar+ qualit, inspe!tion be!ame more
!ommonpla!e in manufa!turing environments and this led to the
introdu!tion of Statisti!al 'ualit, Control >S'C@+ a theor, developed
b, 1r$ 4$ Edwards 1eming$ This qualit, method provided a
statisti!al method of qualit, based on sampling$ 4here it was not
possible to inspe!t ever, item+ a sample was tested for qualit,$ The
theor, of S'C was based on the notion that a variation in the
produ!tion pro!ess leads to variation in the end produ!t$ If the
variation in the pro!ess !ould be removed this would lead to a higher
level of qualit, in the end produ!t$
After 4orld 4ar Two+ the industrial manufa!turers in Japan
produ!ed poor qualit, items$ In a response to this+ the Japanese
9nion of S!ientists and Engineers invited 1r$ 1eming to train
engineers in qualit, pro!esses$ #, the D?:H0s qualit, !ontrol was an
integral part of Japanese manufa!turing and was adopted b, all
levels of wor(ers within an organiLation$
#, the D?GH0s the notion of total qualit, was being dis!ussed$ This
was seen as !ompan,Bwide qualit, !ontrol that involves all
emplo,ees from top management to the wor(ers+ in qualit, !ontrol$
In the ne.t de!ade more nonBJapanese !ompanies were introdu!ing
qualit, management pro!edures that based on the results seen in
Japan$ The new wave of qualit, !ontrol be!ame (nown as Total
'ualit, "anagement+ whi!h was used to des!ribe the man, qualit,B
fo!used strategies and te!hniques that be!ame the !enter of fo!us
for the qualit, movement$
Some o/sta,les to a,-ievin. TQM
) )a!( of Top "anagement Support
) )a!( of Customer 7o!us
) )a!( of Emplo,ee Empowerment
) )a!( of Training
PR("C(P%ES #F TQM26
D$ 'ualit, !an and must be managed$
A$ Ever,one has a !ustomer and is a supplier$
=$ Pro!esses+ not people are the problem$
<$ Ever, emplo,ee is responsible for qualit,$
:$ Problems must be prevented+ not %ust fi.ed$
F$ 'ualit, must be measured$
G$ 'ualit, improvements must be !ontinuous$
E$ The qualit, standard is defe!t free$
?$ 5oals are based on requirements+ not negotiated$
DH$ )ife !,!le !osts+ not front end !osts$
DD$ "anagement must be involved and lead$
DA$ Plan and organiLe for qualit, improvement$
FACT#R AFFECTE& T5E C#MM(TME"T #F T5E
EMP%#*EES26
5eneral wor(er attitude toward the !ompan,$
5eneral wor(er attitude toward the supervisor$
)ever of satisfa!tion toward %ob standard$
The lever of !onsideration the supervisor shows to his subordination$
The wor(load - wor( pressure level$
The treatment of individual b, the management
The lever of wor(er0s satisfa!tion with the salaries
The level of wor(er pride in the !ompan, and its a!tivit,
4or(er rea!tion to the formal !ommuni!ation networ( in the
organiLation$
Intrinsi! %ob satisfa!tion level of the wor(er$
4or(er attitude toward the fellow wor(er$
RECC#ME"&AT(#"S
The suggestions I have given for the betterment are e.plained
belowK
It is ver, important to provide the opportunit, to the emplo,ees of
the organiLation to e.press their ideas or whatever the, want to
e.press$
"anagement should !lear their vision mission and goals towards
the emplo,ees in the organiLation$
"anagement should involve the wor(ers representatives in
managerial a!tivities so that the transparen!, !ould be maintained
and through this the, !an win the !onfiden!e of the emplo,ees$
"anagement should give due importan!e to mental rela.ation
-so!ial !ultural development of an emplo,ees who strives hard for
the !ompan,$
Reward or PraiseCappre!iation wor(s as magi! for an individual and
motivates them for wor($
Role !larit, of ea!h position should be defined and based on that
individuals !an plan their wor( a!!ordingl,$
SelfBpotential s,stem should be en!ouraged$
There are regular review and !omparison of !urrent - past
performan!e to dete!t gradual deterioration in the strateg,$
Proper !ooperation should be ne!essar, in the !ompan,$
TQM (mplementation Approa,-es
6ou !an/t implement %ust one effe!tive solution for planning
and implementing T'" !on!epts in all situations$ #elow we list
generi! models for implementing total qualit, management theor,K
DBTrain top management on T'" prin!iples$
AB Assess the !urrentK Culture+ !ustomer satisfa!tion+ and qualit,
management s,stem$
=B Top management determines the !ore values and prin!iples and
!ommuni!ates them$
<B1evelop a T'" master plan based on steps D+ A+ =$
:B Identif, and prioritiLe !ustomer needs and determine produ!ts or
servi!e to meet those needs$
FB 1etermine the !riti!al pro!esses that produ!e those produ!ts or
servi!es$
GB Create pro!ess improvement teams$
EB "anagers support the efforts b, planning+ training+ and providing
resour!es to the team$
?B "anagement integrates !hanges for improvement in dail,
pro!ess management$ After improvements standardiLation ta(es
pla!e$
DHB Evaluate progress against plan and ad%ust as needed$
DDB Provide !onstant emplo,ee awareness and feedba!($ Establish
an emplo,ee rewardC re!ognition pro!ess$
E('5T E%EME"TS #F TQM
These elements !an be divided into four groups a!!ording to their
fun!tion$ The groups areK
(+ Foundation2
It in!ludesK Ethi!s+ Integrit, and Trust$
((+ Buildin. Bri,ks2
It in!ludesK Training+ Teamwor( and )eadership$
(((+ Bindin.2
It in!ludesK Communi!ation$
(0+ Roof2
It in!ludesK Re!ognition$
(+ Foundation2
T'" is built on a foundation of ethi!s+ integrit, and trust$ It fosters
openness+ fairness and sin!erit, and allows involvement b,
ever,one$ This is the (e, to unlo!(ing the ultimate potential of T'"$
These three elements move together+ however+ ea!h element offers
something different to the T'" !on!ept$
D$ Et-i,s B Ethi!s is the dis!ipline !on!erned with good and bad in
an, situation$ It is a twoBfa!eted sub%e!t represented b,
organiLational and individual ethi!s$ OrganiLational ethi!s establish a
business !ode of ethi!s that outlines guidelines that all emplo,ees
are to adhere to in the performan!e of their wor($ Individual ethi!s
in!lude personal rights or wrongs$
A$ (nte.rit B Integrit, implies honest,+ morals+ values+ fairness+ and
adheren!e to the fa!ts and sin!erit,$ The !hara!teristi! is what
!ustomers >internal or e.ternal@ e.pe!t and deserve to re!eive$
People see the opposite of integrit, as dupli!it,$ T'" will not wor(
in an atmosphere of dupli!it,$
=$ Trust B Trust is a b,Bprodu!t of integrit, and ethi!al !ondu!t$
4ithout trust+ the framewor( of T'" !annot be built$ Trust fosters
full parti!ipation of all members$ It allows empowerment that
en!ourages pride ownership and it en!ourages !ommitment$ It
allows de!ision ma(ing at appropriate levels in the organiLation+
fosters individual ris(Bta(ing for !ontinuous improvement and helps
to ensure that measurements fo!us on improvement of pro!ess and
are not used to !ontend people$ Trust is essential to ensure
!ustomer satisfa!tion$ So+ trust builds the !ooperative environment
essential for T'"$
((+ Buildin. Bri,ks2
#asing on the strong foundation of trust+ ethi!s and integrit,+ bri!(s
are pla!ed to rea!h the roof of re!ognition$ It in!ludesK
<$ Trainin. B Training is ver, important for emplo,ees to be highl,
produ!tive$ Supervisors are solel, responsible for implementing
T'" within their departments+ and tea!hing their emplo,ees the
philosophies of T'"$ Training that emplo,ees require are
interpersonal s(ills+ the abilit, to fun!tion within teams+ problem
solving+ de!ision ma(ing+ %ob management performan!e anal,sis
and improvement+ business e!onomi!s and te!hni!al s(ills$ 1uring
the !reation and formation of T'"+ emplo,ees are trained so that
the, !an be!ome effe!tive emplo,ees for the !ompan,$
:$ Team7ork B To be!ome su!!essful in business+ teamwor( is
also a (e, element of T'"$ 4ith the use of teams+ the business will
re!eive qui!(er and better solutions to problems$ Teams also
provide more permanent improvements in pro!esses and
operations$ In teams+ people feel more !omfortable bringing up
problems that ma, o!!ur+ and !an get help from other wor(ers to
find a solution and put into pla!e$
F$ %eaders-ip B It is possibl, the most important element in T'"$ It
appears ever,where in organiLation$ )eadership in T'" requires
the manager to provide an inspiring vision+ ma(e strategi!
dire!tions that are understood b, all and to instill values that guide
subordinates$ 7or T'" to be su!!essful in the business+ the
supervisor must be !ommitted in leading his emplo,ees$ A
supervisor must understand T'"+ believe in it and then
demonstrate their belief and !ommitment through their dail,
pra!ti!es of T'"$ The supervisor ma(es sure that strategies+
philosophies+ values and goals are transmitted down throughout the
organiLation to provide fo!us+ !larit, and dire!tion$ A (e, point is
that T'" has to be introdu!ed and led b, top management$
Commitment and personal involvement is required from top
management in !reating and deplo,ing !lear qualit, values and
goals !onsistent with the ob%e!tives of the !ompan, and in !reating
and deplo,ing well defined s,stems+ methods and performan!e
measures for a!hieving those goals$
(((+ Bindin.2
G$ Communi,ation B It binds ever,thing together$ Starting from
foundation to roof of the T'" house+ ever,thing is bound b, strong
mortar of !ommuni!ation$ It a!ts as a vital lin( between all elements
of T'"$ Communi!ation means a !ommon understanding of ideas
between the sender and the re!eiver$ The su!!ess of T'"
demands !ommuni!ation with and among all the organiLation
members+ suppliers and !ustomers$ Supervisors must (eep open
airwa,s where emplo,ees !an send and re!eive information about
the T'" pro!ess$ Communi!ation !oupled with the sharing of
!orre!t information is vital$ 7or !ommuni!ation to be !redible the
message must be !lear and re!eiver must interpret in the wa, the
sender intended$
(0+ Roof2
E$ Re,o.nition B Re!ognition is the last and final element in the
entire s,stem$ It should be provided for both suggestions and
a!hievements for teams as well as individuals$ Emplo,ees strive to
re!eive re!ognition for themselves and their teams$ 1ete!ting and
re!ogniLing !ontributors is the most important %ob of a supervisor$
As people are re!ogniLed+ there !an be huge !hanges in selfB
esteem+ produ!tivit,+ qualit, and the amount of effort e.horted to
the tas( at hand$ Re!ognition !omes in its best form when it is
immediatel, following an a!tion that an emplo,ee has performed$
Re!ognition !omes in different wa,s+ pla!es and time su!h as+
4a,s B It !an be b, wa, of personal letter from top management$
Also b, award banquets+ plaques+ trophies et!$ Pla!es B 5ood
performers !an be re!ogniLed in front of departments+ on
performan!e boards and also in front of top management$ Time B
Re!ognition !an give at an, time li(e in staff meeting+ annual award
banquets+ et!$
BE"EF(TS #F TQM
Improve qualit,
Emplo,ee parti!ipation
Teamwor(
4or(ing relationships
Customer Satisfa!tion
Emplo,ees Satisfa!tion
Produ!tivit,
Communi!ation
Profitabilit,
"ar(et shares
8S M#0EME"T AT AMTE!
:S is the name of a wor(pla!e organiLation method that uses a list of
five Japanese wordsK seiri+ seiton+ seiso+ sei(etsu+ and shitsu(e$
Transliterated or translated into English+ the, all start with the letter
OSO$ The list des!ribes how to organiLe a wor( spa!e for effi!ien!,
and effe!tiveness b, identif,ing and storing the items used+
maintaining the area and items+ and sustaining the new order$ The
de!isionBma(ing pro!ess usuall, !omes from a dialogue about
standardiLation+ whi!h builds understanding among emplo,ees of
how the, should do the wor($
T-e 8 S9s
There are five primar, :S phasesK sorting+ set in order+ s,stemati!
!leaning+ standardiLing+ and sustaining$
Sortin.
Eliminate all unne!essar, tools+ parts+ and instru!tions$ 5o through
all tools+ materials+ and so forth in the plant and wor( area$ 3eep
onl, essential items and eliminate what is not required+ prioritiLing
things per requirements and (eeping them in easil,Ba!!essible
pla!es$ Ever,thing else is stored or dis!arded$
Strai.-tenin. or Settin. in #rder
Arranging tools+ parts+ and instru!tions in su!h a wa, that the most
frequentl, used items are the easiest and qui!(est to lo!ate$ The
purpose of this step is to eliminate time wasted in obtaining the
ne!essar, items for an operation$
S7eepin. or S-inin.
StandardiLed !leaningBpoint at a :S organiLed plant
Clean the wor(spa!e and all equipment+ and (eep it !lean+ tid, and
organiLed$ At the end of ea!h shift+ !lean the wor( area and be sure
ever,thing is restored to its pla!e$ This ma(es it eas, to (now what
goes where and ensures that ever,thing is where it belongs$
Standardi:in.
All wor( stations for a parti!ular %ob should be identi!al$ All
emplo,ees doing the same %ob should be able to wor( in an, station
with the same tools that are in the same lo!ation in ever, station$
Ever,one should (now e.a!tl, what his or her responsibilities are for
adhering to the first = S/s$ S,non,mK S,stemiLe
Sustainin. t-e Pra,ti,e
"aintain and review standards$ On!e the previous < S/s have been
established+ the, be!ome the new wa, to operate$ "aintain fo!us on
this new wa, and do not allow a gradual de!line ba!( to the old
wa,s$ 4hile thin(ing about the new wa,+ also be thin(ing about ,et
better wa,s$ 4hen an issue arises su!h as a suggested
improvement+ a new wa, of wor(ing+ a new tool or a new output
requirement+ review the first < S/s and ma(e !hanges as appropriate$
It should be made as a habit and be !ontinuall, improved$
Additional S9s
Three other phases are sometimes in!ludedK safet,+ se!urit,+ and
satisfa!tion$
Safet
A si.th phase+ OSafet,O+ is sometimes added$ There is debate over
whether in!luding this si.th OSO promotes safet, b, stating this value
e.pli!itl,+ or if a !omprehensive safet, program is undermined when
it is relegated to a single item in an effi!ien!,Bfo!used business
methodolog,$
Se,urit
A seventh phase+ OSe!urit,O+ !an also be added$ To leverage
se!urit, as an investment rather than an e.pense+ the seventh OSO
identifies and addresses ris(s to (e, business !ategories in!luding
fi.ed assets >PP-E@+ material+ human !apital+ brand equit,+
intelle!tual propert,+ information te!hnolog,+ assetsBinBtransit and the
e.tended suppl, !hain$
Satisfa,tion
An eighth phase+ OSatisfa!tionO+ !an be in!luded$ Emplo,ee
Satisfa!tion and engagement in !ontinuous improvement a!tivities
ensures the improvements will be sustained and improved upon$ The
Eighth waste P 2on 9tiliLed Intelle!t+ Talent+ and Resour!es !an be
the most damaging waste of all$
It is important to have !ontinuous edu!ation about maintaining
standards$ 4hen there are !hanges that affe!t the :S program su!h
as new equipment+ new produ!ts or new wor( rules+ it is essential to
ma(e !hanges in the standards and provide training$ Companies
embra!ing :S often use posters and signs as a wa, of edu!ating
emplo,ees and maintaining standards$
T-e #ri.ins of 8S
:S was developed in Japan$ It was first heard of as one of the
te!hniques that enabled what was then termed /Just in Time
"anufa!turing/$ The "assa!husetts Institute of Te!hnolog,/s :B,ear
stud, into the future of the automobile in the late D?EHs identified
that the term was inappropriate sin!e the Japanese su!!ess was
built upon far more than !omponents arriving onl, at the time of
requirement$ John 3raf!i(+ a resear!her on the pro%e!t+ as!ribed
)ean to the !olle!tive te!hniques being used in Japanese automobile
manufa!turingQ it refle!ted the fo!us on waste in all its forms that was
!entral to the Japanese approa!h$ "inimised inventor, was onl, one
aspe!t of performan!e levels in !ompanies su!h as To,ota and in
itself onl, arose from progress in fields su!h as qualit, assuran!e
and Andon boards to highlight problems for immediate a!tion$
:S was developed b, Hiroyuki Hirano within his overall approa!h to
produ!tion s,stems$ "an, 4estern managers !oming a!ross the
approa!h for the first time found the e.perien!e one of
enlightenment$ The, had perhaps alwa,s (nown the role of
house(eeping within optimised manufa!turing performan!e and had
alwa,s (nown the elements of best pra!ti!e$ 8owever+ 8irano
provided a stru!ture for improvement programs$ 8e pointed out a
series of identifiable steps+ ea!h building on its prede!essor$
4estern managers+ for e.ample+ had alwa,s re!ognised the need to
de!ide upon lo!ations for materials and tools and upon the flow of
wor( through a wor( areaQ !entral to this >but perhaps impli!it@ is the
prin!iple that items not essential to the pro!ess should be removed P
stored elsewhere or eliminated !ompletel,$ #, differentiating
between Seiri and Seiton+ 8irano made the distin!tion e.pli!it$ 8e
taught his audien!e that an, effort to !onsider la,out and flow before
the removal of the unne!essar, items was li(el, to lead to a subB
optimal solution$
Equall, the Seiso+ or !leanliness+ phase is a distin!t element of the
!hange program that !an transform a pro!ess area$ 8irano/s view is
that the definition of a !leaning methodolog, >Seiso@ is a dis!rete
a!tivit,+ not to be !onfused with the organisation of the wor(pla!e+
and this helps to stru!ture an, improvement program$ It has to be
re!ognised+ however+ that there is inevitabl, an overlap between
Seiton and Seiso$ 4estern managers understood that the
opportunities for various !leanliness methodologies var, with the
la,out and storage me!hanisms adopted$ 8owever+ brea(ing down
the improvement a!tivit, in this wa, !larifies that the requirements
for the !leanliness regime must be understood as a fa!tor in the
design aspe!t of Seiton$ As noted b, John #i!heno+ To,ota/s
adoption of the 8irano approa!h+ is /<S/+ with Seiton and Seiso
!ombined P presumabl, for this ver, reason$ The improvement team
must avoid the trap of designing the wor( area and then !onsidering
the !leanliness or tidiness me!hanism$
8irano also reminded the world of the 8awthorne effe!t$ 4e !an all
introdu!e !hange and while people in the business !onsider the
!hange program to be under management fo!us the benefits of the
!hange will !ontinue+ but when this fo!us has moved >as is inevitabl,
the !ase@ performan!e on!e more slips$ 4estern managers+ in
parti!ular+ ma, have benefited from the distin!tion between the
pro!edural or me!hani!al elements+ Sei(etsu+ of (eeping these
matters in fo!us and the !ulture !hange+ Shitsu(e+ whi!h is a distin!t
approa!h to bringing about a new wa, of wor(ing$ A number of
publi!ations on the sub%e!t in the 4est have questioned whether this
!ulture !an reall, be ta!(led as part of an e.er!ise of relativel,
limited s!ope$ The broader (aiLen+ or !ontinuous improvement+
approa!h is built+ among other things+ upon the !ompan,/s valuation
of all members of the wor(for!e$ If emplo,ees don/t feel valued within
the overall !ompan, !ulture+ perhaps the !hange required falls
outside the limits of a house(eeping improvement program$
T-e #/;e,tives of 8S
8irano identified a range of benefits from improved house(eeping+ all
of whi!h !an be regarded as falling within the )ean portfolio P that is+
the, are all based around the elimination of waste in one form or
another$
The most obvious benefit from items being organiLed in su!h a wa,
>i$e$ that the, are alwa,s readil, available@ is that of improved
produ!tivit,$ Produ!tion wor(ers being diverted from produ!tion to
loo( for tools+ gauges+ produ!tion paperwor(+ fasteners+ and so on is
the most frustrating form of lost time in an, plant$ A (e, aspe!t of
8irano/s organisation approa!h is that the oftenBneeded items are
stored in the most a!!essible lo!ation and !orre!t adoption of the
standardisation approa!h means that the, are returned to the !orre!t
lo!ation after use$ Another element of 8irano/s improved
house(eeping is improved plant maintenan!e P wor(ers /owning/ a
pie!e of plant+ responsible for (eeping it !lean and tid,+ !an ta(e
ownership for highlighting potential problems before the, have an
impa!t on performan!e$ >Of !ourse+ this brings with it the interfa!e
with preventive maintenan!e and the need for !larit, in the
/assignment map/+ that is P who does what$ The division of tas(s
between produ!tion wor(ers and spe!ialist maintenan!e engineers
varies with the nature of the business+ but ownership rests within the
business unit rather than within the /servi!e provider/$@
The ne.t aim is 'ualit,$ The degree of impa!t of dirt in a
manufa!turing environment+ obviousl,+ varies with the nature of the
produ!t and its pro!ess but there are few+ if an,+ areas where dirt is
wel!ome$ Even if it is onl, in the form of soiled do!umentation
a!!ompan,ing the goods to the !ustomer this !an send a ver,
negative message about the !ompan, and its !ulture$ In other !ases
dirt !an have a serious impa!t on produ!t performan!e P either
dire!tl, or indire!tl,+ perhaps through !ompromising the integrit, of
test pro!esses$ Of !ourse+ :S does more than address dirtQ an
inappropriate la,out !an result+ for e.ample+ in produ!t damaged
through e.!essive movement or through the use of tooling other than
that defined as the standard$ Standardisation is a theme of 8irano/s
approa!h+ overlapping to a !onsiderable e.tent with+ for e.ample+
that of Ohno$ A Standard Operating Pro!edure for tool !ertifi!ation is
mu!h easier to a!hieve if the tool to be !ertified is alwa,s in a
!learl,Bmar(ed lo!ation$
Another goal is improved 8ealth - Safet,$ Clear pathwa,s between
wor(ben!hes and storage ra!(s !an minimise a!!idents+ as !an
properl,Bswept floors$ As with 'ualit,+ a wellBorganised+ !lean and
tid, fa!ilit, lends itself more readil, to standard pra!ti!e$ 8irano also
des!ribed how an environment in whi!h the wor(for!e has pride in
their wor(pla!e !an !ontribute to a !onsiderable e.tent in a number
of wa,s in!luding !ustomer servi!e$ Improving the la,out of the
fa!ilit, merges with the !on!ept of visual managementQ if wor(ers
!an see the status of plant and of wor( in the fa!ilit,+ thus removing
the need for !omple. tra!(ing and !ommuni!ation s,stems+ then
benefits will a!!rue$ :S !an also be a valuable sales tool when
potential !ustomers visitQ a well organised+ !lean and tid, fa!ilit,
sends a message of a professional and well organised supplier$
One point made b, all pra!titioners is that the adoption of :S must
be driven b, goals$ An arti!le in the %ournal of the 93/s Institute of
Operations "anagement written b, "ar( Eaton and 3eith Carpenter
of the Engineering Emplo,ers/ 7ederation noted that Othe su!!essful
implementation of :S requires that ever,one understand wh, it is
being used and what the e.pe!ted results are$ As with all )ean
te!hniques the aim is improvement in business performan!eQ the
adoption is not an end in itself$
T-e Evolution of 8S
"an, 4estern !ompanies now promote 8irano/s approa!h with a
si.th /S/ added for 'ualit,$ 2ot unnaturall,+ there is some debate
over this+ with devotees on both sides of the argument$ The si.th S
serves a fundamental purpose P it reminds ever,one of the need for
'ualit,$ A (e, lesson taught b, Japanese automobile manufa!turers+
and one !entral to the To,ota Produ!tion S,stem+ is that traditional
levels of performan!e must be not onl, e.!eeded+ but repla!ed b, a
!ompletel, different per!eption of the s!ale of what is a!!eptable$
Rather than managing defe!ts in per!entage terms+ 4estern
managers heard of management in /parts per millions/+ with singleB
figure levels of defe!ts being the goal$ This improvement in qualit,
levels !ould+ of !ourse+ onl, be a!hieved with a !omplete reB
definition of pro!esses and !ulture within 4estern manufa!turing$
This in!ludes issues su!h as /1esign for "anufa!turing/ and the
fundamental !hange from 'ualit, Control to 'ualit, Assuran!e >that
is+ the 'ualit, department role moving from inspe!ting and
highlighting problems to guaranteeing methods and pro!edures to
eliminate errors@$ 8ouse(eeping+ of !ourse+ is !entral to this and
adding a si.th /S/ highlights this$
The !ontrasting view+ and the one ta(en b, 8irano in establishing
this approa!h+ is that ea!h and ever, /S/ is a phase$ As noted earlier+
a ma%or lesson for 4esterners was 8irano/s :S methodolog,
brea(ing the program down into a series of steps$ The si.th /S/ does
not add to thisQ 'ualit, is not a phase+ it is an ob%e!tive P along with
produ!tivit, and the others des!ribed above$ "oreover+ it is an
ob%e!tive of ea!h and ever, phase$
QUA%(T* C(RC%ES M#0EME"T AT AMTE!
$- Qualit Cir,les
'ualit, Cir!le is one of the emplo,ee parti!ipation methods$
It !reates !onditions and environment of wor( that stimulates
!ommitment towards e.!ellen!e$
'ualit, Cir!les utiliLe the potential of people for improvement in
qualit,$
'ualit, Cir!les are a people P building philosoph,
It represents a philosoph, of managing people spe!iall, those at the
grass root level as well as a !learl, defined me!hanism and
methodolog, for translating this philosoph, into pra!ti!e and a
required stru!ture to ma(e it a wa, of life$
It is bound to su!!eed where people are respe!ted and are involved
in de!isions+ !on!erning their wor( life+ and in environments where
people0s !apabilities are loo(ed upon as assets to solve wor(Barea
problems$
The 'ualit, Cir!le philosoph, !alls for a progressive attitude on the
part of the management
&efinition of Qualit Cir,le
A small group of between three and twelve people who do the
same or similar wor(+ voluntaril, meeting together regularl, for
about an hour per wee( in paid time+ usuall, under the )eadership
of their own supervisor+ and trained to identif,+ anal,Le+ and solve
some of the problems in their wor(+ presenting solutions to
management+ and where possible+ implementing the solutions
themselves$/
7iner points from the 1efinition
o A small group of three to twelve people
o oluntaril, meeting together
o "eeting regularl, for about an hour per wee(
o In paid time
o 9nder the leadership of their own supervisor
o To identif,+ anal,Le and solve problems in their wor(
o Presenting solutions to management
o Implementing the solutions themselves
Multi6fa,ed o/;e,tives of QC 2
Change in attitude$
o 7rom &I don0t !are to &I do !are*
o Continuous improvement in qualit, of wor( life through
humaniLation of wor(
Self 1evelopment
o #ring out M8idden Potential0 of people
o People get to learn additional s(ills
1evelopment of Team Spirit
o Individual vCs Team P &I !ould not do it+ but the team did it*
o Eliminate interdepartmental !onfli!t
Improved OrganiLational Stru!ture
Positive wor(ing environment
o Total involvement of people at all levels
o 8igher motivational level
Stru,ture of a Qualit Cir,le
a@ Roles and Responsibilities
The Su!!ess of the qualit, !ir!le depends solel, on the attitude of
the top management and pla,s an important role to ensure the
su!!ess of implementation of qualit, !ir!les in the organiLation$
b@ Roles and Responsibilities
Steering !ommittee !alled middle management !onsists of heads of
different departments and pla,s a positive role in qualit, !ir!le0s
a!tivities for the su!!ess of the efforts$
The meetings are !onve,ed at least on!e in one month interval$
!@ Roles and Responsibilities
Coordinator+ who also a!ts as a fa!ilitator+ is an individual
responsible for !oordinating and dire!ting the qualit, !ir!les a!tivities
within an organiLation and !arries out su!h fun!tions as would ma(e
the operations of qualit, !ir!les smooth+ effe!tive and selfB
sustainable$
d@ Roles and Responsibilities
7a!ilitator a!ts as a !atal,st+ innovator+ promoter and tea!her and is
nominated b, the management$ 8is Roles are as followsK
Communi!ating with all levels of management and obtaining their
supportQ
7a!ilitating the training of 'C leaders and membersQ
"aintaining an open and supportive environmentQ
Ensure ob%e!tivit, in the a!tivities of 'CQ
As a mediator in problem solvingQ
As a resour!e person to the !ir!leQ
Evaluating the !ost and benefits of the 'C program and reporting it
to the management$ 4e have to appoint one fa!ilitator for ever, =B<
'C
e@ Roles and Responsibilities
The leader is !hosen b, the members amongst themselves and is
rotated on a regular basis$ 8is role is mainl, as followsK
Training members on problem solving te!hniques with the
assistan!e of the fa!ilitator as and when requiredQ
7ostering the spirit of !ooperation amongst the membersQ
Assisting the !ir!le members in re!ord (eeping and in the
preparation of management presentationsQ
Condu!ting meeting in an orderl, and effe!tive mannerQ
En!ouraging other people to be!ome membersQ
Enfor!ing team dis!ipline and !hanneliLing the efforts effe!tivel,
f@ Roles and Responsibilities
"embers of the qualit, !ir!les are a small group of people from the
same wor( area or doing similar t,pe of wor( whereas nonBmembers
are those who are not the members of the 'C but provide
suggestions$ "embers are e.pe!ted toQ
Attend meetings regularl,Q
1ire!t their efforts towards solving wor(Brelated problemsQ
Identif,ing problems+ !ontributing ideas+ underta(ing resear!h and
investigating >where ne!essar,@ and assisting the 'C in problem
solvingQ
Parti!ipating in management presentations
A$ )aun!hing of 'ualit, Cir!le
The steps involved areK
E.pose middle level e.e!utives to !on!ept$
E.plain !on!ept to the emplo,ees and invite them to volunteer as
members of 'ualit, Cir!le$
2ominate senior offi!ials as fa!ilitators$
7orm a steering !ommittee$
Arrange training of !oordinators+ fa!ilitators and members$
7i. meetings for 'ualit, Cir!les to meet$
7ormall, inaugurate the 'ualit, Cir!le$
Arrange ne!essar, fa!ilities for 'ualit, !ir!le meetings and its
operations$
=$ Training
o The most important aspe!t of a su!!essful 'ualit, Cir!le is it0s
!aliber to perform as a team and identif,+ resear!h and solve
problems$
o Appropriate training needs to be imparted for the optimum
performan!e b, the 'ualit, Cir!le$ Training !omprises ofK
o #rief orientation program for top management
o Program for middle level e.e!utives$
o Training for fa!ilitators$
o Training for !ir!le leaders and members$
<$ Pro!ess of operation
o Problem Identifi!ation
o identif, the number of problem
o Problem Anal,sis
o !larified and anal,sed
o 5enerate alternative solutions
o Identif, and evaluate !auses and generate number of possible
solutions
o Sele!t most appropriate solutions
o Identif, - generate !auses
o 5enerate possible alternative solutions
o Prepare plan for a!tion
o !onvert solutions to realit,
o Present solution to management for approval
o Implement of solution
o Evaluated re!ommended solution
Brainstormin.
#rainstorming is a group parti!ipative te!hnique$ It unlo!(s and
dis!loses the untapped !reative talents and resour!es in people$
It is a te!hnique for gathering the greatest number of ideas+ whi!h
in turn+ spar( enthusiasm and originalit, amongst the member of
the 'C$
#rainstorming is used when the Cir!le want toK
D$Identifl, a problem
A$Investigate the !ause
=$7ind a solution
5enerall,+ following GB 'C Tools are to be usedK
Control Chart
S!atter 1iagram
8istogram
Cause - Effe!t diagram
7low!hart
Che!(Bsheet
Pareto 1iagram
(ntan.i/le /enefits of Qualit Cir,le
o 1eveloping the abilit, of self e.pression
o Personal 5rowth resulting from longBterm group edu!ational
a!tivities$
o 5reater selfB!onfiden!e of supervisors
o "ember morale in!rease
o )evel of self supervision improves
o 8elps develop abilit, to wor( in teams and appre!iate other0s point
of view
o #etter e.!hange of ideas and improvement in !ommuni!ation
o The !oBoperative a!tivities of the !ir!le !ement human relations$
T#TA% PR#&UCT(0E MA("TA("A"CE M#0EME"T AT
AMTE!
It means ma(e produ!tion effi!ien!, to its ultimate limits$ It !onsiders
following i$e$
D$ Putting together a pra!ti!al shopBfloor s,stem to prevent losses
before the, o!!ur throughout the entire produ!tion s,stem0s life !,!le
and a!hieve Lero defe!ts+ Lero a!!idents+ Lero brea(down
A$ Involving all fun!tion in!luding produ!tion+ development sales and
management
=$ 8aving all emplo,ees parti!ipate from top e.e!utives to front Pline
wor(ers$
<$ A!hieving Lero losses through overlapping small group$

P(%%ERS #F TPM
D$ 3O#ETS9 3AIJE2$
A$ P)A22E1 "AI2TAI2CE$
=$ I2TIA) CO2TRO)
<$ E19CATIO2 A21 TRAI2I25$
:$ JIS89 8OJE2$
F$ '9A)IT6 "AI2TAI2CE$
G$ O77ICE "AI2TAI2CE$
E$ SA7ET6+ 865IE2E A21 E2IOR2"E2T$
D$ !#BETSU !A(<E"K It means &I21II19A) I"PROE"E2T*$ It
!onsidersK
Effi!ient equipment utiliLation$
Effi!ient equipment utiliLation$
Effi!ient equipment utiliLation$

A$ P%A""E& MA("TA("CEK It refers in!rease availabilit, of ma!hine
b, redu!ing brea( down time$
Support to JIS89 8OJE2
Time based maintenan!e+ Condition based maintenan!e
"aintenan!e !ost management$
=$ ("T(A% C#"TR#%K It aims at developing eas, to ma(e produ!ts
and eas, to ma(e equipment$
Establish the s,stem to laun!h the produ!tion of new
produ!tsCequipment in minimum runBup time
<$ E&UCAT(#" A"& TRA("("'K Aim of this $a s,stem has to be
design based on the basi! !on!ept that a raising the s(ill of ea!h
individual person !ontributes to better result for the !ompan, and
higher sense of motivation of ea!h individual
:$ 3(S5U 5#<E"$K IT0s aim maintaining one0s equipment b, one self$
8ere+

4or(er performsK
1ail, inspe!tion
"inor repair$
A!!ura!, !he!(s$
F$ QUA%(T* MA("TA("CEK It0s establishment of ma!hine !ondition
that will not allow the o!!urren!e of defe!ts and !ontrol of su!h
!ondition is required to sustain Lero defe!ts$ Its main a!tivitiesK
Establishment !ondition of Lero defe!ts$
Aim at ta(ing pre!aution before it happens rather than ta(ing a!tion
after it has happened$
G$ #FF(CE MA("TA("CEK Its purpose to ma(e an effi!ient wor(ing
offi!e that eliminate loses$
Its aimsK
Cost redu!tion
Effi!ient inventor, management
In!rease offi!e produ!tivit,
Jero line stoppage of !ustomer
'ui!( response to internal and e.ternal !ustomer$
E$ SAFET*= 5*'(E"E A"& E"0(#R"ME"TK Its purpose to !reate a
safe and health, wor(pla!e where a!!ident does not o!!ur$ It sa,sK
9n!over and improve haLard areas$
TP"0s philosoph, is to strive for Lero a!!idents and Lero pollution$
D$ Internal Re%e!tion
>+ Customer Re;e,tion
?+ Supplier Re;e,tion
@+ Su..estion Trend
8+ !ai:en Trend
A+ 8S Trend
B+ #EE C Trend
D+ A/senteeism
E+ A,,ident
F+ Qualit Cir,le
B(B%(#'RAP5*
C#MPA"* 3#UR"A%S
C#MPA"* $EBS(TE (777+amtek+,om)
BUS("ESS MA'<("ES
BUS("ESS "E$SPAPER