WELCOME

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A COST EFFECTIVE STRATEGY FOR BUSINESS SURVIVAL
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Businesses exist for two reasons –
To be profitable
and and

To give better product / service to the customer
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In an ideal manufacturing company
Product & process designs would be without any flaws Product & process designs would be without any flaws (their engineers would have done a perfect job) (their engineers would have done a perfect job) The materials and bought-out parts that go into building boughtThe materials and bought- out parts that go into building boughtthe product would meet all quality requirements (the the product would meet all quality requirements (the suppliers performed perfectly) suppliers performed perfectly) And the product would be manufactured // assembled And the product would be manufactured assembled without any errors (the technicians and operators would without any errors (the technicians and operators would work perfectly) work perfectly) There would be no requirement for quality inspectors There would be no requirement for quality inspectors (the business process is perfect) (the business process is perfect) The company would supply best quality product and The company would supply best quality product and would realize best profitability. would realize best profitability.
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In reality, costs are added
Design flaws Design flaws Mistakes in tools & equipment Mistakes in tools & equipment Sub- standard materials Sub-standard materials SubSubVendor inefficiency Vendor inefficiency Inadequate operator training Inadequate operator training Bad workmanship Bad workmanship Unfavourable employment policies Unfavourable employment policies Unfocused people management Unfocused people management
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What do we understand by Quality ?
Quality is difficult to define, but Quality is difficult to define, but recognized when seen. recognized when seen. Quality is expensive. Quality is expensive. Quality is super craftsmanship. Quality is super craftsmanship. Quality is luxury. Quality is luxury. Quality is degree of excellence. Quality is degree of excellence.
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How the Quality Gurus define Quality
Fitness for purpose or use……Juran Fitness for purpose or use…… use…… Conformance to requirements..Crossby Conformance to requirements.. requirements.. The minimum loss imparted to society The minimum loss imparted to society from the time of shipment….Taguchi from the time of shipment… . shipment… Delighting the customer……...MacDonald Delighting the customer…… ... customer……... …… Meeting or exceeding the customers’ Meeting or exceeding the customers’ customers’ expectation………………… . expectation………………….Hannington expectation…………………. …………………
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Quality - as per ISO definition
The totality of features and characteristics of a product or service that bear upon its ability to satisfy stated or implied needs.
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History of Quality Movement
WORLD WAR I STATISTICAL METHODS APPLIED TO MANUFACTURING SHEWHART 1920s DEMING, JURAN 1940s WORLD WAR II

INCREASED EMPHASIS ON PROCESS IMPROVEMENT

DEMING ASSISTS MacARTHUR IN JAPAN 1950s

JAPAN EMERGES AS WORLD QUALITY LEADER DEMING, TAGUCHI ISHIKAWA 1960s-70s

TQM ADOPTED WORLD OVER

ZERO DEFECT MOVEMENT

TQC EMERGES IN USA

CROSBY 1970s DEMING, JURAN TAGUCHI, CROSBY 1980s-90s

DEMING, JURAN FEIGENBAUM 1960s

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Total Quality Management Total Quality Management is centered around is centered around four major principles four major principles
Defect Prevention Defect Prevention Continuous Improvement Continuous Improvement Customer Focus Customer Focus Universal Quality Responsibility Universal Quality Responsibility
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Supplier integration Bench-marking

Focus on customers’ requirements and expectations Statistical techniques
CONTINUOUS IMPROVEMENT

Quality measurements Sustained management Commitment

Prevention of defects & corrective actions

DEFECT PREVENTION

TQM

CUSTOMER FOCUS

QUALITY RESPONSIBILITY

Training

Continuous improvement Low inventory management Employee involvement and empowerment

Teamworking synergy

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Companies today are faced with challenges like –
Shorter product cycles Products/services rapidly becoming generic Increased competition for shrinking markets Higher customer expectations Higher employee expectations

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Programmes for evolution fail due to reasons such as –
They are imposed from above ownership’ General lack of ‘ownership’ Lack of clear programme objectives Threatening to the status quo Resistance to change Expensive

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The strategy must be

SMART
Specific Measurable Accepted by all Realistic and TimeTime-bound.
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TQM Goal
Commitment to Customer Satisfaction through Conformance to Quality Requirements Continuous Improvement Defect Prevention Reduction of Variation & Waste Throughout the Supply Chain
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Old QS 9000 : Element 4.2.5
4.2.5.1 The Supplier shall 4.2.5.1 The Supplier shall continuously improve in quality, continuously improve in quality, service (including timing, delivery) service (including timing, delivery) and price that benefit all customers. and price that benefit all customers. NOTE: A continuous improvement NOTE: A continuous improvement philosophy should be fully deployed philosophy should be fully deployed throughout the organization. throughout the organization.
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Continuous Improvement Defined
A GLOBAL APPROACH TO BUSINESS
DEVELOPMENT BY ESTABLISHING AN INTEGRATED PROGRAMME , THROUGH WHICH A COMPANY CAN ACHIEVE CONTINUOUS INCREMENTAL IMPROVEMENTS, IMPROVEMENTS, IN ITS CHOSEN KEY MEASURES, PERFORMANCE MEASURES, BY FOCUSING ON BETTER MANAGEMENT OF BUSINESS PROCESSES AND RESOURCES
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FUNCTIONS PROCESSES PEOPLE PRODUCTS

DEFINE THE MISSION

CI – FLOW CHART

CQI BECOMES A WAY OF LIFE

STUDY AND SELECT UNDERSTAND ORGANIZATION OBJECTIVES

SPONSOR/ LEADER

MONITORING & FEEDBACK

STRATEGIC & TACTICAL MILESTONES BRAND IMAGE COMMUNICATION IMPLEMENTATION ACTION PLANS BUDGETS/ RESOURCES REVIEW OF STANDARDS

BEST PRACTICES BENCHMARKS IDENTIFY STAFF CQI GOALS CUSTOMERS SUPPLIERS

CQI STRATEGIC MASTER PLAN CQI TEAM SUB TEAMS

MANAGEMENT COMMITMENT BENCHMARK REVIEW
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Mission Statement
XYZ Inc., MISSION STATEMENT XYZ Inc., MISSION STATEMENT To continuously innovate and develop To continuously innovate and develop products and services to meet the needs of products and services to meet the needs of society. Helping business partners find cost society. Helping business partners find cost saving solutions and improvements that saving solutions and improvements that enhance growth. enhance growth.
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C I Preparatory Activities
Have right focus on customers and products Determine the right functions of the business Ensure that right processes are used for right functions Ensure that right people are at the right jobs Define roles clearly
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QS 9000 : Element 4.2.5
4.2.5.2 Examples of C II Projects 4.2.5.2 Examples of C Projects
• Machine setup, die change & m/c changeover times • Excessive cycle time • Scrap, rework & repair • Non value-added valuefloor space • Excessive variation • Cost of poor quality • Customer dissatisfaction • Excessive handling & storage • Difficult operations • Waste of labour & materials • Unscheduled m/c downtime • Process average not target centric
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First Important Step

KNOW WHERE WE ARE KNOW WHERE WE WANT TO GO IN WHAT PERIOD OF TIME
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Bench Marking
Identify & Understand The Processes

Periodic Review

Agree on WHAT & WHO To Benchmark

Action Plan and Communication

Collect Data

Analyse Data & Decide Benchmarks
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Know the Process – 10 Qs
1. What is the output of 1. What is the output of

2. 2. 3. 3.

4. 4.

5. 5.

the process? the process? Who is the customer? Who is the customer? What are the What are the customer’ s customer’s customer’ customer’ requirements? (e.g requirements? (e.g quality, timing, cost) quality, timing, cost) Who is the process Who is the process owner? (the person owner? (the person ultimately responsible for ultimately responsible for ensuring that the ensuring that the process meets the process meets the customer’ s rquirements) customer’s rquirements)) customer’ rquirements) customer’ rquirements How does the process How does the process work? (what are the start work? (what are the start and end points) and end points)

6. What is involved in the 6. What is involved in the process? (the activities are process? (the activities are steps of the process) steps of the process) 7. Who is involved? 7. Who is involved? (individuals, departments, (individuals, departments, suppliers) suppliers) 8. When do things happen? 8. When do things happen? (time-scale, cycle time etc) (time- scale, cycle time etc) (time(time9. How much does it cost? (in 9. How much does it cost? (in terms of time, money and terms of time, money and manpower) manpower) 10. What are the problems 10. What are the problems with the existing process? with the existing process? (as percieved by the (as percieved by the process owner, other process owner, other operators and customers) operators and customers)

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C I Milestones
Phase I – Commitment & Development Phase II – Involvement & Assimilation Phase III – Maturity Phase IV - Maintenance
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Phase I – Commitment & Development
C II programme leader identified C programme leader identified Objectives identified Objectives identified Benchmarking indicators established Benchmarking indicators established C II team // sub teams formed C team sub teams formed Establishment of feasible goals Establishment of feasible goals Development of C II Master Plan Development of C Master Plan The management buys the C II The management buys the C programme and assures commitment programme and assures commitment Resources formally committed to the Resources formally committed to the programme programme
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Quality Goals
Company’ s OBJECTIVES Company’s OBJECTIVES Company’ Company’ Improve and maintain the process capability Improve and maintain the process capability and process performance as 1.67 and 1.33 and process performance as 1.67 and 1.33 Improve the OEE to more than 75% Improve the OEE to more than 75% Development lead time to be reduced to 50% Development lead time to be reduced to 50% Achieve 100% plan vs achievement and On time Achieve 100% plan vs achievement and On time delivery to customer delivery to customer Maintain inventory level at 35 days (present Maintain inventory level at 35 days (present level is 56 days) level is 56 days)
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Phase II – Involvement & Assimilation
Brand image created Brand image created Master plan and goals circulated Master plan and goals circulated Management involved in highly visible goals Management involved in highly visible goals Action plans developed Action plans developed Grass root level teams formed and Grass root level teams formed and communicated communicated Training given where required Training given where required Reporting and recording procedures Reporting and recording procedures established established Periodic team meetings and reviews Periodic team meetings and reviews
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Create A Brand Image
For C II Projects to get the right priority For C Projects to get the right priority during implementation, a special image during implementation, a special image has to be created, and communicated has to be created, and communicated to everyone to everyone A catchy logo for C I, makes everyone in A catchy logo for C I, makes everyone in the organization to recognize it easily the organization to recognize it easily and to immediately associate it with the and to immediately associate it with the C II programme C programme
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Phase III – Maturity
Re- benchmarking surveys, say, after Re-benchmarking surveys, say, after Re12 to 18 months 12 to 18 months New C II incremental goals and New C incremental goals and Recasting of Master Plan Recasting of Master Plan Teams rework their new targets Teams rework their new targets Team performances reviewed and Team performances reviewed and credited credited All standards updated All standards updated
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Phase IV – Maintenance
All milestones in phase II to III All milestones in phase to III have been met have been met New targets are consolidated New targets are consolidated with new issue of Master Plan with new issue of Master Plan CQI – becomes a new way of CQI – becomes a new way of life, ingrained into the routine life, ingrained into the routine
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C I is a Continuous Journey
PLAN

ACT

DO

CHECK
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Key Activities - 1
The communication stage involves the The communication stage involves the most important step of selling the most important step of selling the benefits of the C II programme to benefits of the C programme to everyone in the company everyone in the company If they buy the benefits, then they will buy If they buy the benefits, then they will buy the programme the programme And if they buy the programme, then they And if they buy the programme, then they programme, will be committed to the success of the will be committed to the success of the programme programme
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Key Activities - 2
Records of results should be compiled on regular predetermined period and on specific formats (like daily rejection record, weekly downtime record etc)
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Key Activities - 3
Reports must be prepared at regular Reports must be prepared at regular intervals (like monthly delivery intervals (like monthly delivery performance, monthly vendor quality etc) performance, monthly vendor quality etc) Reports, preferably with graphs and Reports, preferably with graphs and photographs, should be exhibited photographs, should be exhibited prominently for everyone in the company prominently for everyone in the company to see to see
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Key Activities - 4
Weekly & monthly meetings of small groups must Weekly & monthly meetings of small groups must be held to highlight their progress and credit be held to highlight their progress and credit individuals to encourage them and others individuals to encourage them and others further further Involvement and empowerment of the staff, Involvement and empowerment of the staff, making them responsible and accountable for making them responsible and accountable for what happens in their area or department, what happens in their area or department, generally leads to reduced wastage and generally leads to reduced wastage and improved efficiency improved efficiency
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Key Activities - 5
Keep the customer informed of your Keep the customer informed of your CQI activities, and report him CQI activities, and report him about the progress about the progress Generally, customers are only too Generally, customers are only too happy to help you with CQI, and happy to help you with CQI, and we can get invaluable feedback we can get invaluable feedback and inputs from them and inputs from them
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THANK YOU

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