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Total Quality Management 331 v1 PDF
Total Quality Management 331 v1 PDF
Developed by
Prof. P.M. Bendre
On behalf of
Prin. L.N. Welingkar Institute of Management Development & Research
!
Advisory Board
Chairman
Prof. Dr. V.S. Prasad
Former Director (NAAC)
Former Vice-Chancellor
(Dr. B.R. Ambedkar Open University)
Board Members
1. Prof. Dr. Uday Salunkhe
2. Dr. B.P. Sabale
3. Prof. Dr. Vijay Khole
4. Prof. Anuradha Deshmukh
Group Director
Chancellor, D.Y. Patil University, Former Vice-Chancellor
Former Director
Welingkar Institute of Navi Mumbai
(Mumbai University) (YCMOU)
Management Ex Vice-Chancellor (YCMOU)
! !2
CONTENTS
Contents
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WELCOME TO THE WONDERLAND OF QUALITY
Chapter 1
WELCOME TO THE WONDERLAND OF
QUALITY
Objectives
Structure
1.1 Welcome
1.2 Our Life
1.3 Defining Quality
1.4 Evolution of Total Quality Management
1.5 Contributions of the Great Quality Gurus
1.6 Definition of a Defect
1.7 Process Approach
1.8 Human Resources Development and Leadership
1.9 Supplier Development
1.10 Continual Improvement
1.11 Concept of Internal Customer
1.12 Quality and Competitiveness
1.13 Quality is Not a Destination: It is a way of LIFE!
1.14 Ultimate Solution: Education and Training
1.15 Activities for the Students
1.16 Summary
1.17 Self Assessment Questions
1.18 Multiple Choice Questions
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WELCOME TO THE WONDERLAND OF QUALITY
1.1 Welcome
I welcome you to the most wonderful subject on the earth: that is, Quality.
I assure you that thorough study of this subject will not only improve your
competence as an entrepreneur, engineer, doctor or a professional in any
discipline, but also will enhance your life tremendously and make your life
on earth more meaningful. Every individual must make quality as a matter
of continuous practice and improvement.
You may be wondering what all difference I am going to make in this book
and what different topics I am going to explain to you when there are so
many books on this subject already available everywhere. Most of the
available books really give you just the theory of TQM whereas in this book
we are going to emphasize upon the implementation or application of this
theory in our practical life which has been steadily becoming very difficult,
full of tension and tedious – day in and day out. We shall find ways and
means to make our day-to-day routine more pleasant, by travelling the
Quality route.
Further, this book will certainly convince you that the only way to take our
Nation to fast become the developed country is the Quality way. I had
always felt that the Primary and Secondary Education must have Quality as
the prime subject in the syllabus. If it happens, the deterioration of moral
values will stop and people will become more serious and focused about
the goals of the Nation. It is not only the Government, but also
participation of the people which is required in making our Nation a
developed country.
We always feel as consumers that we are indeed big losers, don’t we? I am
citing a few examples:
1. Adulteration in food
2. Premature failure of electrical, electronic and automotive components
3. Late starting and late arrival of buses, trains and airplanes
4. Passenger’s luggage misplaced/lost by an airline
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WELCOME TO THE WONDERLAND OF QUALITY
The term “quality” can be used with adjectives such as poor, good or
excellent. “Inherent” means existing in something, especially as a
permanent characteristic.
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WELCOME TO THE WONDERLAND OF QUALITY
There are many earlier definitions of quality such as Fitness for use,
Conformance to specifications, Value for price paid, excellence that is
better than a minimum standard etc. All of these definitions also give very
good idea what quality must be.
However, the above said definition made by ISO 9000:2005 (ref: Chapter
No. 2 and 14) gives the total perception of the subject.
Now with this definition, you can judge yourself as to where we stand if we
compare ourselves as consumers.
Case Example:
You will agree that my expert friend was right, because the Fortuner is
manufactured conforming to all specifications and is totally fit for use as a
sports car in every point of view. It has a competitive price advantage over
other models, and is better than a minimum standard. Though the Fortuner
fulfilled all the quality requirements, my friend did not buy the Fortuner,
instead he bought the Santa Fe.
2. He also felt that the running cost of the Fortuner would be higher and
the after-sales service of it might not be as good.
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WELCOME TO THE WONDERLAND OF QUALITY
Q = (P / E)
Reliability
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WELCOME TO THE WONDERLAND OF QUALITY
Benefits of Quality
Quality Costs
1. Quality cost is the cost of bad quality of product and services that
rebounds to the Manufacturer.
Consistency
1. Delivery and
2. Service.
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WELCOME TO THE WONDERLAND OF QUALITY
Inspection
1. Identifying non-conformities
2. Salvaging
3. End of pipe approach
4. End justifies means
Quality Control
Quality Assurance:
1. Quality Manuals
2. Systems Certification
3. Quality Costs
4. Documentation
1. Customer Focus
2. Human and System Component
3. Continuous Improvement
4. Performance Measurement
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WELCOME TO THE WONDERLAND OF QUALITY
W.A. Shewhart
2. In the same decade, H.F. Dodge and H.G. Romig of Bell Telephone Labs
developed statistical acceptance sampling instead of 100% inspection.
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WELCOME TO THE WONDERLAND OF QUALITY
! !
(a) Deming returned from Japan to write “Out of the Crisis”, and began
his famous 4-day seminars in the United States.
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WELCOME TO THE WONDERLAND OF QUALITY
About the increasing industrial competition the United States was facing
from Japan. As a result of the broadcast, demand for his services increased
dramatically, and Deming continued consulting for industry throughout the
world until his death at the age of 93.
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WELCOME TO THE WONDERLAND OF QUALITY
Deming’s 14 Points
Case Examples:
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WELCOME TO THE WONDERLAND OF QUALITY
3. In MICO Bosch, Nasik, a customer gave a trunk call from Kolkata, which
was attended by a junior clerk after so many rings, asked the customer
to hold on, went to call the concerned case worker and never came
back. After about one hour, when the customer called up again, he was
told that the concerned person to whom he wanted to speak was on
leave.
They say, most of the times the customer is unhappy not because of the
bad quality, but because of aforesaid incidents, which are nothing but
defects.
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WELCOME TO THE WONDERLAND OF QUALITY
1. Employers don’t pay wages but it is the customer who pays the wages!
2. So take good care of your customers.
3. Customer-care centers not just profit-centers!
4. The entire organization must in effect revolve around the customer –
whether the customer is being well served and if he is really pleased,
contented and satisfied with the service you have to offer.
Customer Care
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WELCOME TO THE WONDERLAND OF QUALITY
1. The supplier shall identify and plan the production, installation and
servicing processes which directly affect quality and shall ensure that
these processes are carried out under controlled conditions.
2. Process has to ensure compliance with all applicable government safety
and environmental regulations.
3. Documented process monitoring and operator instructions.
4. Process capability > 1.67 should be achieved.
5. Inspect and test the product as required by the quality plan.
5. Welfare of employees
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WELCOME TO THE WONDERLAND OF QUALITY
For example, the customer who keeps on buying the components from a
particular automotive company expects that there must be continual
improvement in quality, performance, reliability and service from the
manufacturer; otherwise he might be attracted towards other
manufacturers who are better.
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WELCOME TO THE WONDERLAND OF QUALITY
! !
!
Good Housekeeping
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WELCOME TO THE WONDERLAND OF QUALITY
Figure 1.1
Kaoru Ishikawa was the first quality guru to emphasize the importance of
the “internal customer,” the next person in the production process.
Whatever is said above about the external customer has to be practiced in
case of ALL internal customers also. Quality is not possible if internal
customers are not happy.
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WELCOME TO THE WONDERLAND OF QUALITY
Case example:
In MICO Bosch an inspection operator No. 1 was not co-operating with his
next inspection operator No. 2. He did not inspect the components properly
and was pushing defectives to the next inspection operator. This resulted in
delays of the next operator’s work because the poka-yoke system which
was there on inspection workplace No. 2 did not accept the defectives.
Further, the operator No. 1 was frequently leaving the workplace and was
wasting time, which affected the next operator’s efficiency and incentive,
being fully dependent on the first operator. As an internal customer,
operator No. 2 was very must unsatisfied as well as angry. His output
quality was affected due to this problem, which was the matter of concern.
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WELCOME TO THE WONDERLAND OF QUALITY
1. Quality of design
2. Quality capability of production processes
3. Quality of conformance
4. Quality of customer service
5. Organization Quality culture
1. No quality, no sales
2. No sales, no profit
3. No profit, no jobs
4. Quality and image are no accident: they are the result of focused hard
work and diligence.
5. Quality is not a destination: it is a way of life.
6. We strive for excellence and accept nothing less.
1. Be pro-active
2. Begin with the end in mind
3. Put first things first
4. Think win-win
5. Seek first to understand, then to be understood
6. Synergy
7. Sharpen the saw
! !22
WELCOME TO THE WONDERLAND OF QUALITY
Our life is becoming full of tensions and worries, most of them being as a
result of pending tasks. We have to get habituated to maintain:
1. Things to do
2. Tasks
3. Memos
After making a list of things to do, you should prioritize them as per
urgency, seriousness, growing tendency of the problem. Relist them as per
geographical order so that in a single round you can finish all tasks without
backtracking and with minimum time.
You must finish at least three important tasks in a day. Before going to
bed, you must go through the list to see how many tasks could not be
completed.
This way, your tension will vanish in a week’s time and you will be able to
focus on Quality of your work in a better way.
!
! !23
WELCOME TO THE WONDERLAND OF QUALITY
Use the 80/20 rule, which states that 80% of your accomplishments come
from only 20% of your efforts. So, devote more of your time to the
productive activities and reduce time spent on unproductive work. The
main idea is to do things on your schedule, rather than the schedules of
others. Avoid time wasters such as phone calls and meeting the people,
when you have to focus on your tasks.
!
Figure 1.2
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WELCOME TO THE WONDERLAND OF QUALITY
3. In our day to day life, we will identify ALL internal and external
customers and satisfy them.
Even some of our family members, friends and relatives could be our
internal customers. In the company, our workers and employees are our
internal customers. The internal and external customers’ delight is the goal
of our life: “Customer’s perception of the degree to which the
customer’s requirements have been fulfilled” and so we must know
what their requirements are and what their perception is. Keeping the word
of promise is also part of this. Maintaining good image, character,
truthfulness, punctuality, sincerity is also part of this.
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WELCOME TO THE WONDERLAND OF QUALITY
! !
'If you want excellence, you must aim at perfection. I know that aiming at
perfection has its drawbacks. It makes you go into detail that you can
avoid. It takes a lot of energy out of you but that's the only way you finally
actually achieve excellence. So in that sense, being finicky is essential. A
company, which uses the name Tata, shares a tradition. The symbol 'T' has
to be a symbol of quality.'
— J.R.D. Tata
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WELCOME TO THE WONDERLAND OF QUALITY
This is the ultimate solution to all the basic problems of our nation.
The majority of the students fare poorly at jobs and global institutions of
higher education.”
Activity A
1. Make a list of all the pending “Things to do” and prioritize them on the
scale of 1 to 10, for the following aspects:
• Seriousness
• Urgency
• Growth of the concern (i.e., if the thing is not done today, the problem/
concern will increase tomorrow)
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Activity B
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WELCOME TO THE WONDERLAND OF QUALITY
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Activity C
1. Write down the activities which you will perform in coming year by
“doing it right, first time, every time”.
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Activity D
Activity E
1. Make a list of products or services which you have done till now with
your best ability and resulted into best quality.
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1.16 Summary
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WELCOME TO THE WONDERLAND OF QUALITY
a. Security Inspector
b. Goods Inwards store
c. Manufacturing worker
d. Customer
a. Purchase order
b. Requirement
c. Dream
d. Ambition
a. Customer satisfaction
b. Value for money
c. Better than standards
d. Fitness for use
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WELCOME TO THE WONDERLAND OF QUALITY
a. Juran
b. Deming
c. Shewhart
d. Feigenbaum
a. Deming
b. Shewhart
c. Ishikawa
d. Crosby
a. Inspection
b. Quality Planning
c. Documentation
d. Continual Improvement
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WELCOME TO THE WONDERLAND OF QUALITY
I hope that in this first chapter itself, you have already got an idea of what
the subject is like, and you have put forward your first step towards your
career in Quality life.
You are now got acquainted with our quality gurus also.
You also know what is process approach.
All this was just the introduction to the subject. In the following chapters,
every aspect of TQM is described in more and more details, in order that
you get to know everything about TQM.
I have taken care that the language is easy to understand, so that you
really do not get bored and start getting interested and involved in the
subject and start thinking how you will make your business more and more
efficient and effective.
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WELCOME TO THE WONDERLAND OF QUALITY
REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
! !32
WONDERLAND OF QUALITY: CONTINUES
Chapter 2
WONDERLAND OF QUALITY: CONTINUES
Objectives
Structure
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WONDERLAND OF QUALITY: CONTINUES
The manufacturer “B” also has a similar system. His product also has
world-class quality, just in time system; everything is same as the first
manufacturer. However, there is a difference. He is very closely associated
with his customers, and makes exactly what his customers’ requirements
are. His quality, cost and delivery is always made in such a way that his
customer is always delighted. He makes changes in his design, processes
to suit to the changing needs of his customers. He gives world-class quality
to his customers, in time, and at a reasonable price.
We must be efficient, no doubt. That means, we must “Do things right, the
first time, every time.” However, that is not enough. We must also do right
things about our customer. He must be happy and there is no exception to
this rule.
Case Example:
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WONDERLAND OF QUALITY: CONTINUES
There are many organizations which are very efficient, but are hardly
effective. Hence, they have a long list of lost customers.
Quality target is 100% and Not 99.9% because 99.9% quality will mean:
Competition
Earlier, one was able to produce the goods and services as he wanted and
was able to sell them in the market. Many monopolists were selling the
goods at exorbitant prices. The consumers had little choice but to buy
whatever was available to them.
However, in today’s market, when the foreign companies are also selling
their goods at lower prices, every manufacturer is facing tough
competition. To be in market, one has to have something exclusive in his
product. He must know what exactly the customer requirements are, which
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WONDERLAND OF QUALITY: CONTINUES
Greater Profitability
Self-motivation
This is also a driver for quality. One always wants to be number one in his
area of work and the quality principles will help him accomplish all his
goals.
Vision Statement
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WONDERLAND OF QUALITY: CONTINUES
1. Quick responsiveness
2. Creative approach
3. Innovativeness
4. Willingness to learn and unlearn
5. Pro-activeness
6. Team spirit
7. Open to the suggestions and ideas
8. Unique thinking
9. Enthusiastic
10.Progressive
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WONDERLAND OF QUALITY: CONTINUES
Mission Statements
This is the next step after making the Vision Statement. Mission
statements are prepared to make the employees to get an idea as to how
to accomplish the Vision. These are actually the road maps to achieve the
vision.
Quality Policy
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WONDERLAND OF QUALITY: CONTINUES
After the Vision and Mission Statements are made, the individual
departments will start writing down their well-defined objectives in order to
realize the mission statements.
3. Incorporate innovative ideas in the design and check the design with the
help of design failure mode and effects analysis before finalizing it.
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WONDERLAND OF QUALITY: CONTINUES
S= Specific
M= Measurable
A= Achievable
R= Realistic
T= Time bound
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WONDERLAND OF QUALITY: CONTINUES
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WONDERLAND OF QUALITY: CONTINUES
(a) The ISO 9000 family of standards listed below have been developed
to assist organizations, of all types and sizes, to implement and
operate effective quality management systems.
(d) ISO 9004 provides guidelines that consider both the effectiveness and
efficiency of the quality management system. The aim of this standard
is improvement of the performance of the organization and satisfaction
of customers and other interested parties.
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WONDERLAND OF QUALITY: CONTINUES
quality management systems, which form the subject of the ISO 9000
family, and defines related terms.
Eight quality management principles have been identified that can be used
by top management in order to lead the organization towards improved
performance.
(b) Leadership
Leaders establish unity of purpose and direction of the organization.
They should create and maintain the internal environment in which
people can become fully involved in achieving the organization’s
objectives.
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WONDERLAND OF QUALITY: CONTINUES
These eight quality management principles form the basis for the
quality management system standards within the ISO 9000 family.
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WONDERLAND OF QUALITY: CONTINUES
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WONDERLAND OF QUALITY: CONTINUES
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WONDERLAND OF QUALITY: CONTINUES
Figure 2.1
In 1950, W. Edwards Deming, who got inspired from Shewhart, taught SPC
and SQC to Japanese engineers and CEOs. PLAN-DO-CHECK-ACT cycle
was made popular by him.
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WONDERLAND OF QUALITY: CONTINUES
Inputs Outputs
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WONDERLAND OF QUALITY: CONTINUES
Inputs Outputs
Inputs Outputs
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WONDERLAND OF QUALITY: CONTINUES
Inputs Outputs
Packaging specifications
Inputs Outputs
Packaging evaluation
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WONDERLAND OF QUALITY: CONTINUES
Special Characteristics
Customer engineering
Part No. Core team
approval/date
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WONDERLAND OF QUALITY: CONTINUES
Activity A
Initially it will be a Private Limited Company with three of your friends, with
your own investment of ` 15,00,000 each, in addition to a loan from a
bank. You already have a site in Nasik.
You also have a person having experience in the field. You also know a
person who is expert in finance and commercial matters.
Activity B
1. Make a process flow chart for manufacture of any vehicle spare part
about which you have some knowledge and information.
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2.8 Summary
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3. What will be the syllabus which you will make for education on quality in
your business organization?
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WONDERLAND OF QUALITY: CONTINUES
a. Image
b. Value
c. Pleasure
d. Delight
a. Experience
b. Team opinion
c. Benchmarking
d. Data and information
a. Need or Expectation
b. Wish
c. Order
d. Demand
a. Clear
b. SMART
c. Objective
d. Achievable
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WONDERLAND OF QUALITY: CONTINUES
a. Effectiveness
b. Efficiency
c. Profitability
d. Business tactics
7. A customer has been buying all the required products from LG. Over last
ten years, he has purchased many products such as fridge, TV etc. from
LG. Every time he buys the product, he finds some innovation in it, and
he is thrilled to buy the product. This is ____________ of LG.
a. Efficiency
b. Effectiveness
c. Profitability
d. Policy
a. Property
b. Disciple
c. Customer
d. Supplier
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WONDERLAND OF QUALITY: CONTINUES
Your picnic in wonderland of quality is now becoming more and more value
adding, isn’t it?
In the Chapter 3, your travel really enters into the TQM methodology, and
then onwards, you get totally engrossed in the subject.
Let me see whether this journey becomes more beneficial to you or not.
You will see that many topics are either repeated or explained differently,
the reason for this is that you get more clarification about the topic and
your queries in the mind get answered better.
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WONDERLAND OF QUALITY: CONTINUES
REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture
! !57
TOTAL QUALITY MANAGEMENT PHILOSOPHY
Chapter 3
TOTAL QUALITY MANAGEMENT
PHILOSOPHY
Objectives
Structure
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
(a) Find out what the internal and external customers want.
(b) Design a product or service that will meet or exceed what the
customers want.
(c) Design a production process that facilitates doing right, the first
time, every time.
(d) Keep track of the result and use these results to improve the
system continually.
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
Deming (Post world war through 1980s) was well known for helping
Japanese companies to apply Shewhart’s Statistical Process Control. His
main contribution was his 14 points to quality.
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
8. Drive out fear, so that everyone may work effectively for the company.
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
11. (a) Eliminate work standards (quotas) on the factory floor. Substitute
with leadership. (b) Eliminate management by objective. Eliminate
management by numbers and numerical goals. Instead substitute with
leadership.
12.(a) Remove barriers that rob the hourly worker of his right to pride of
workmanship. The responsibility of supervisors must be changed from
sheer numbers to quality. (b) Remove barriers that rob people in
management and in engineering of their right to pride of workmanship.
This means, inter alia, abolishment of the annual or merit rating and of
management by objectives.
4. Mobility of management
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
! !64
TOTAL QUALITY MANAGEMENT PHILOSOPHY
Deming’s message had fallen on deaf ears in US. While Japan continued its
quality revolution in the years following World War II, SPC methods were
not widely pursued in US. Later on the US also recognized that
management philosophies should be applied to the quality improvement
challenge. This blending of additional management philosophies, all
targeting quality improvement, became known as Total Quality Concept.
When he began his career in the 1920s, the principal focus in quality
management was on the quality of the end, or finished, product. The tools
used were from the Bell system of acceptance sampling, inspection plans,
and control charts. The ideas of Frederick Winslow Taylor dominated.
Juran's vision of quality management extended well outside the walls of the
factory to encompass non-manufacturing processes, especially those that
might be thought of as service related.
1. The key issues facing managers in sales are no different than those
faced by managers in other disciplines.
2. Sales managers say they face problems such as "It takes us too
long...we need to reduce the error rate." They want to know, "How do
customers perceive us?"
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
1. Quality Planning
2. Qulaity control
3. Quality improvement
Juran was one of the first to think about the cost of poor quality. This was
illustrated by his "Juran trilogy", an approach to cross-functional
management, which is composed of three managerial processes: quality
planning, quality control and quality improvement.
Without change, there will be a constant waste, during change there will be
increased costs, but after the improvement, margins will be higher and the
increased costs get recouped.
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
2. The concept of a "hidden" plant — the idea that so much extra work is
performed in correcting mistakes that there is effectively a hidden plant
within any factory.
(b) Prior to its introduction, the general perception was that higher
quality requires higher costs, either by buying better materials or
machines or by hiring more labor.
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
!
! !69
TOTAL QUALITY MANAGEMENT PHILOSOPHY
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
(a) It is not enough simply to inspect the products for defects. “One
cannot inspect quality, one must build it in.”
(b) A method must be devised to test and measure quality for each of
the product attributes, e.g., visual inspection.
(e) Upon discovering the defects, the team should find the underlying
causes and correct them.
(f) Causes of poor quality should include defective raw materials, lack
of training, unclear procedures, a faulty machine etc.
! !71
TOTAL QUALITY MANAGEMENT PHILOSOPHY
The organizations believed that following actions would improve the quality
of their products:
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
5. Correction, repairs
6. Checking random sample from a lot and if found defective, hold the
production flow.
Quality Management
Is far more than this. It requires a comprehensive approach from all the
departments of the organizations. Consumers now place a higher value on
quality than on loyalty to their producers. Hence, if they find defectives in
their parts received from the producer, there is a high possibility that the
consumer may not buy the parts from the producer again: result is the lost
customer. Actually, price is no longer a major determining factor in
consumer choice, on the other hand consumers need defect free goods,
satisfying all their needs and requirements.
! !73
TOTAL QUALITY MANAGEMENT PHILOSOPHY
When we analyze the time management in the working life, we find that a
large part of the time is spent on useless activities such as:
To the Customer
1. Greater satisfaction
2. Cost effectiveness
3. Timely delivery
4. No major problems with the products/services
5. Continually improved product/service from time to time
6. Better customer care/treatment by the producer
7. Customer’s business becomes competitive
To the Producer
1. Better profitability
2. Better productivity and quality
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
To the Employees
1. Empowerment
2. Recognition
3. Motivation
4. Career enhancement
2. Management by Facts
(b) Having the facts necessary to manage the business at all levels, and
giving that information to everyone so that the decisions are
based on facts are an essential aspect of TQM.
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TOTAL QUALITY MANAGEMENT PHILOSOPHY
(b) The more people feel involved, the greater will be their commitment
to quality and customer satisfaction.
4. Continuous Improvement
(a) TQM is not a program or a project for short time duration, which will
finish when a target is achieved.
(b) It is a management process that understands that as we improve,
our competitors also continue to improve.
(d) Hence, continual improvement should be the aim of all the team
members, as a foundation of TQM.
a. Measure
b. Everything
c. That
d. Results
e. In
f. Customer
g. Satisfaction
! !76
TOTAL QUALITY MANAGEMENT PHILOSOPHY
a. Breach of promise
b. Customer complaints
c. Accidents
d. Internal scrap/repair
e. Time lost due to non-availability of raw material, absenteeism,
machine breakdowns
f. Cost of quality
g. Delayed delivery
! !77
TOTAL QUALITY MANAGEMENT PHILOSOPHY
Activity A
Activity B
3.6 Summary
! !78
TOTAL QUALITY MANAGEMENT PHILOSOPHY
(g) Find out what the internal and external customers want
(h) Design a product or service that will meet or exceed what the
customers want
(i) Design a production process that facilitates doing right, the first
time, every time
(j) Keep track of the result and use these results to improve the system
continually
2. How good are you in “Respect each person and listen to him
emphatically”.
! !79
TOTAL QUALITY MANAGEMENT PHILOSOPHY
a. Deming
b. Shewhart
c. Juran
d. Ishikawa
a. Vehicle
b. People
c. Finished goods
d. Fear
a. Quality Planning
b. Quality control
c. Quality improvement
d. All of the above
4. Deming (Post world war through 1980s) was well known for helping
_________ companies.
a. Japanese
b. American
c. Indian
d. Russian
a. Ishikawa
b. Juran
c. Shewhart
d. Poka-yoke
! !80
TOTAL QUALITY MANAGEMENT PHILOSOPHY
a. Non-conformance
b. Conformance
c. Performance
d. Efficiency
a. Additional workshop
b. Hidden plant
c. Sister concern
d. Repair plant
! !81
TOTAL QUALITY MANAGEMENT PHILOSOPHY
After getting a reasonably good idea about the TQM, we now move to the
crux of the matter, that is Process Approach.
Non-value adding activities are those for which customer is not ready to
pay.
Just focus your attention on what is coming in the next chapter and see
how your vision becomes a broad one.
! !82
TOTAL QUALITY MANAGEMENT PHILOSOPHY
REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture
! !83
PROCESS APPROACH
Chapter 4
PROCESS APPROACH
Objectives
Structure
! !84
PROCESS APPROACH
2 Manpower People
It challenges us to:
1. Do only those things those are “value adding” from the customer’s
point of view.
2. Move from managing functions to managing work processes.
! !85
PROCESS APPROACH
1. The organization shall plan and carry out production and service
provision under controlled conditions. Controlled conditions shall
include:
(a) The organization shall validate any processes for production and
service provision where the resulting output cannot be verified by
subsequent monitoring or measurement. This includes any
processes where deficiencies become apparent only after the
product is in use or the service has been delivered. (Such a process
is often referred to as a special process).
! !86
PROCESS APPROACH
processing gets delayed and cost increases. The quality of goods and
services begin during the initial design activities.
!
Figure 4.1
! !87
PROCESS APPROACH
! !
! !88
PROCESS APPROACH
!
Figure 4.2
Pizza Delivery
!
Figure 4.3
! !89
PROCESS APPROACH
The example of Pizza Delivery is given above in order to illustrate how the
CTQs are to be identified.
Case Example:
Process Sequence, and Control Plan for Zinc Plating of M.S.
Components:
The parameters highlighted in grey are the CTQs
! !90
PROCESS APPROACH
! !91
PROCESS APPROACH
conductivity < 50
Siemens/
Meter
Conductivity < 50
Siemens/
Meter
! !92
PROCESS APPROACH
! !93
PROCESS APPROACH
!
Figure 4.4
! !94
PROCESS APPROACH
Making every business process capable is one of the main themes of TQM.
Deming and Juran observed that while majority of the problems are
associated with the processes, hardly any problems are caused by workers
themselves. It is not right to blame workers for something over which they
do not have any control. It is the management who should share the
responsibility with the workforce to continuously improve the processes
with which the individuals work.
! !95
PROCESS APPROACH
Figure 4.5
! !96
PROCESS APPROACH
Figure 4.6
! !97
PROCESS APPROACH
where,
n = number of samples
Figure 4.7
! !98
PROCESS APPROACH
Where,
! !99
PROCESS APPROACH
Figure 4.8
That means, we must design the process such that uncontrollable and
random influence of several parameters leading to deviations from the
target value (e.g., the mean value of the tolerance zone) are kept as low as
possible.
Also we must strive to keep the µ as near as the center of the tolerance,
controlling maximum shift to 1.5σ. Thereby we can reduce the number of
defectives and the process will be in full control.
As a guideline, Cp should be 1.33 for regular production and 1.67 for new
jobs. If the standard deviation is so much reduced that the Cp is 2, then
we call such a process as a Six Sigma process because in such a process,
the tolerance is equal to 12σ. This means that the standard deviation is
brought down to 1/12th of the tolerance!!!
! !100
PROCESS APPROACH
We had made the Process sequence, control plan and process flow chart in
order to see that we do only those things those are “value adding” from
the customer’s point of view.
We also have to Control the CTQs, i.e.,
x1 20 30 26 17 24
x2 23 35 40 19 34
x3 25 40 34 23 45
x4 19 23 45 34 35
x5 15 25 20 40 26
X max 25 40 45 40 45
X min 15 23 20 17 24
Range 10 17 25 23 21
USL 55 55 55 55 55
LSL 10 10 10 10 10
TOL MID 30 30 30 30 30
! !101
PROCESS APPROACH
If the process of attending the patients could be made such that every
patient will be kept waiting only for 10 minutes or less (10 minutes can
be called as CTQ) but a constant amount of time, how wonderful would it
be! The patients can then plan their other activities. The doctors can
employ additional assistant doctors and some of the earlier patients
requiring more time can be attended by these doctors, if necessary.
Can we say that the student is good in studies? For that, he has to be
consistent.
! !102
PROCESS APPROACH
45 44 41 43 43
42 41 40 45 43
43 43 42 41 44
43 43 43 45 45
43 43 42 41 44
We can see that the values are fairly consistent in the last column but are
not consistent in the fourth column. The process has to be investigated to
find true causes of the variation.
63 63 63 61 62
63 63 63 60 62
62 62 61 59 63
63 63 63 63 63
62 63 62 62 62
When almost all values are consistent, a value of 59 appears in the fourth
column. We must find the cause for this deviation.
! !103
PROCESS APPROACH
The control chart method was developed by Walter Andrew Shewhart in the
1920s.
SPC is an application from the area of inductive statistics. Not all the
measured values are available, as would be in the case with 100%
inspection. Conclusions are made concerning the population on the basis of
small data set, the sample values.
The Basic Concepts Behind SPC are the Controllability and the
Capability of the Manufacturing Process
Control Charts are maintained for significant quality characteristics with the
aim of indicating and improving the controllability and capability of the
process.
Planning
4. The materials entering the process must meet the set quality
requirements.
! !104
PROCESS APPROACH
! !105
PROCESS APPROACH
X1 63 63 63 61 62 63 63 63 63 61
X2 63 63 63 60 62 63 63 63 63 60
X3 62 62 61 60 63 62 62 62 61 60
X4 63 63 63 63 63 63 63 63 63 63
X5 62 63 62 62 62 62 62 63 62 62
XI 63 62.8 62.4 61.2 62.4 62.6 62.6 62.8 62.4 61.2
s 0.55 0.45 0.89 1.30 0.55 0.55 0.55 0.45 0.89 1.30
_
Average X = 62.3
Average s = 0.748
Stability Test
_
UCL = Average X + (1.3 × average s) = 63.27
_
LCL = Average X + (1.3 × average s) = 61.33
_
It is found that all the X values are within the control limits. This means
that the x is stable.
It is found that all the average s values are within the control limits. This
means that the average s is also stable.
The Machine Capability Index CmK = formula same as for CpK as follows:
! !106
PROCESS APPROACH
Pre-Production Run
Figure 4.9
! !107
PROCESS APPROACH
The control limits for the SPC Chart will be as follows (1.23 is a
constant):
Accordingly, the – s control charts using the above control limits are to be
maintained every shift for the parameters as above.
! !108
PROCESS APPROACH
The tool name prompts the team to consider the suppliers (the ‘S’ in
SIPOC) of your process, the inputs (the ‘I’) to the process, the process (the
‘P’) your team is improving, the outputs (the ‘O’) of the process, and the
customers (the ‘C’) that receive the process outputs. In some cases,
requirements of the customers can be appended to the end of the SIPOC
for further detail.
SIPOC Diagram
! !109
PROCESS APPROACH
!
Figure 4.10
Activity A
Take an A4 size paper and make several pieces of size 10mm × 20 mm.
Use two best processes which you know for this. Take random 125 pieces
and measure the length of the pieces by the best measurement process
you know.
Plot an x – s chart and also calculate the process capability. For calculating
“s” on MS Excel, give the formula = stdev (Value1..value5)
! !110
PROCESS APPROACH
Activity B
1. How many processes do you know for making rice in your kitchen?
Which is the better process for making rice? Why? Make a process flow
chart for the best process in your view.
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………….
4.8 Summary
2. Do only those things those are “value adding” from the customer’s point
of view.
! !111
PROCESS APPROACH
a. Taste
b. Temperature
c. Varieties
d. All the above
a. Sample size
b. Safety
c. Security
d. Supplier
a. Customer
b. Control
c. Critical to quality
d. Criteria
! !112
PROCESS APPROACH
! denotes:
a. Delay
b. Decision
c. Transportation
d. Storage
a. Average
b. Center
c. Minimum
d. Maximum
! !113
PROCESS APPROACH
Once you become master of the process approach, we want to make you
conversant with the analytical ways of problem solving.
These are proven methods and we can assure you that one can solve
almost all technical problems and most of the other problems by practicing
these simple methods of
1. Situation appraisal
2. Problem analysis
3. Decision analysis
4. Potential problems analysis
5. Fault tree analysis etc.
1. We keep our activities and solutions to the problems pending for long
time
2. We do not work with check lists
3. We do not know what to do with the problems and how to solve them
! !114
PROCESS APPROACH
REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture
! !115
PROBLEM SOLVING AND DECISION MAKING
Chapter 5
PROBLEM SOLVING AND DECISION MAKING
Objectives
Structure
! !116
PROBLEM SOLVING AND DECISION MAKING
Today, we will share with you some really interesting, effective and surest
ways and methods of solving almost any technical and most of the other
problems in our day-to-day life. We advise you to master these methods so
that you will be confident in handling any issues with analytical approach.
1. What current concerns involve something going wrong (in any area –
people, machinery, sales, distribution, costs etc.) for which you do not
know the cause?
2. What current concerns involve something going wrong (in any area –
people, machinery, sales, distribution, costs etc.) for which you know
the cause, but you need to correct the situation?
3. What current concerns involve something that is going right, but you
think could be improved?
4. What current concerns require you to make a final decision on the best
of 2 or more alternatives?
! !117
PROBLEM SOLVING AND DECISION MAKING
7. What are the threats and opportunities that face your operation?
8. Describe a current problem.
c. Growth: Will it get worse? What will happen if ignored? Will the
problem grow if action is not taken?
c. Does this concern involve a decision which has been made but not
implemented? Then do Potential problem Analysis.
! !118
PROBLEM SOLVING AND DECISION MAKING
1 3 4
2 5 6
3 4 8
4 7 9
5 4 1
6 7 5
7 2 6
!
Figure 5.1
In the above graph, two concerns (5, 6 and 7, 9) have growth potential,
with high seriousness and urgency. These concerns must be taken for
analysis immediately.
! !119
PROBLEM SOLVING AND DECISION MAKING
Table 5.1
Production Labor
costs are
Materials No Price Decision
increasing
Exceeding deadline currently analysis
• Chemicals budget by –Low increasing
cost up 20% 18% – H –M
! !120
PROBLEM SOLVING AND DECISION MAKING
Deviation Statement
Table 5.2
Is Is not
When When was the defect observed When we might have expected
on is the object, person, or unit? to see the defect on the object,
person, or unit but did not?
! !121
PROBLEM SOLVING AND DECISION MAKING
2. What are we doing to the IS that we are not doing with IS NOT?
4. What if anything has changed in each area of distinction? When did the
change take place? What event took place around or preceding the
timing of the problem?
5. What is there about this change that could cause this deviation?
6. How could this change combined with the distinction, has caused this
deviation?
1. If the hypothesis is the true cause, how does it explain BOTH IS and IS
NOT?
Deviation Statement:
! !122
PROBLEM SOLVING AND DECISION MAKING
Table 5.3
Is Is not
What 1. Sheet film Roll film, film Package Zip top box
pack was
introduced
5 weeks back
5. Small outlets
11. Upward
trend
By looking at the IS and IS NOT, the team develops possible causes and
every possible cause is checked against each IS as well as IS NOT as
follows:
! !123
PROBLEM SOLVING AND DECISION MAKING
Table 5.4
Radioactivity causing +
fogging
Interleaf paper is ok ok ok U ok U ok ok ok ok
contaminated
Improper mixing
True cause which explains most of the IS-IS NOTs = Interleaf paper is
contaminated
Does this concern require us to identify the best course of action? Let us
say, you have three options A, B and C. Test each option with your:
! !124
PROBLEM SOLVING AND DECISION MAKING
(a) Every want objectives has a weightage. (i.e., how much important it
is on the scale of 1 to 10 considering your requirement?)
(b) Every option has a score with respect to the want objective. (How
far this option fulfills your want objective requirement on the scale
of 1 to 10?)
(c) The option which satisfies ALL the MUST Objectives (as GO), and
whose weight score (i.e., weightage multiplied by score) (total of all
weight scores) is highest is accepted as a decision.
Table 5.5
Want Wt Sc Wt Sc Wt Sc Sc Wt
Objectives Sc Sc
What are
desirable
objectives?
Total
weight-ed ->
score
1. How do the alternatives compare with each other considering all the
must and want objectives? What alternatives should be assessed for
adverse consequences?
! !125
PROBLEM SOLVING AND DECISION MAKING
Increase sheet OK GO OK GO OK GO
film market
share by 2% for
peak period
Implement OK GO OK GO OK GO
within 5 months
Want Objectives Wt Sc Wt sc Sc Wt sc Sc Wt sc
Ensure repeat 7 5 35 10 70 3 21
business
beyond peak
period
Minimize cost 3 7 21 4 12 10 30
Strengthen 6 10 60 10 60 5 30
image
Maximise 9 10 90 6 54 8 72
Market Share
! !126
PROBLEM SOLVING AND DECISION MAKING
Adverse consequences:
Figure 5.2
! !127
PROBLEM SOLVING AND DECISION MAKING
Figure 5.3
This diagram is also called as a fishbone diagram. You will be able to see in
one go all the potential causes for an effect. There are many opinions as to
what could be the root cause for a problem. One way to systematically
present all the ideas and stimulate the brainstorming of the team members
is this diagram.
! !128
PROBLEM SOLVING AND DECISION MAKING
To start with, make a problem statement, e.g., “The repair cost in case of
one particular type of DLL Nozzles has increased by 19% during last three
months.”
!
Figure 5.4
In a brainstorming session, with the available data and evidences, following
questions will be asked to the team members. They will be supplied with
small cards (Post card size) and will be asked to write their answers on the
cards. The cards will be collected and arranged on a soft board by pinning
on the concerned category.
! !129
PROBLEM SOLVING AND DECISION MAKING
Activity A
Activity B
5.8 Summary
By listing down all the concerns, separating them, and making a situation
appraisal gives you a lot of relief from day-to-day tensions.
By using the methods given, almost all the problems can be tackled very
effectively.
! !130
PROBLEM SOLVING AND DECISION MAKING
1. I do not know why I am always getting less marks in the exam. I have
to make:
a. Decision analysis
b. Situation appraisal
c. Problem analysis
d. None of the above
2. A student does not know what he should choose between the following
courses, viz., IT, C.A. or engineering. What should he do?
a. Decision analysis
b. Situation appraisal
c. Problem analysis
d. None of the above
! !131
PROBLEM SOLVING AND DECISION MAKING
a. True
b. False
a. FMEA
b. Problem analysis
c. Ishikawa diagram
d. Situation appraisal
a. Option 1
b. Option 2
c. Option 3
d. None of the above
! !132
PROBLEM SOLVING AND DECISION MAKING
9. In case of MUST objectives, we must see the weightage score and take
a decision.
a. Right
b. Wrong
Once you are the master of process approach and problem solving
techniques, we want to take to a awesome and amazing activity called
Almost all successful products and processes in this industry are result of a
team activity called FMEA.
I am sure all of you all will get involved in this FMEA activity, which will
enrich your competence in this field of TQM.
! !133
PROBLEM SOLVING AND DECISION MAKING
REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture
! !134
PREVENTIVE TECHNIQUES
Chapter 6
PREVENTIVE TECHNIQUES
Objectives
Structure
! !135
PREVENTIVE TECHNIQUES
There are three basic cases for which FMEAs are generated.
1. Design FMEA
2. Process FMEA
3. System FMEA
! !136
PREVENTIVE TECHNIQUES
Figure: 6.1
! !137
PREVENTIVE TECHNIQUES
intended function. List each failure mode, which could occur but may
not necessarily occur.
5. Severity (S): It is the rank associated with most severe effect for a
given Failure mode (on the scale of 1-10) as follows:
! !138
PREVENTIVE TECHNIQUES
! !139
PREVENTIVE TECHNIQUES
a. High severity
b. High RPN
a. Revised design
b. Revised tolerances
c. Revised material specifications
d. Design of experiments
e. Revised test plan
! !140
PREVENTIVE TECHNIQUES
5. Severity (S): It is the rank associated with most severe effect for a
given Failure mode (on the scale of 1-10) as follows:
! !141
PREVENTIVE TECHNIQUES
! !142
PREVENTIVE TECHNIQUES
! !143
PREVENTIVE TECHNIQUES
a. High severity
b. High RPN
! !144
PREVENTIVE TECHNIQUES
Pre detec
ve- tion
nti
on
! !145
PREVENTIVE TECHNIQUES
Only one cause for the failure mode is analyzed above. Similarly, other
causes as well as other failure modes have to be analyzed.
Activity A
1. Make a process flow chart for this process and make a process FMEA.
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………….
Activity B
1. You must have seen a recliner chair in a movie theatre. Your friend has
designed a recliner chair for household or domestic purpose. Make a
design FMEA for such a chair, imagining that a senior citizen is going to
use it.
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………….
6.5 Summary
! !146
PREVENTIVE TECHNIQUES
a. 8
b. 9
c. 1
d. 10
a. 3
b. 4
c. 7
d. 8
a. True
b. False
a. 441
b. 341
c. 241
d. 541
! !147
PREVENTIVE TECHNIQUES
a. 9 and 10
b. 12 and 341
c. 5 and 125
d. 6 and 163
This is a very important chapter and you go through this chapter word by
word and make it by heart.
The reason for this is that throughout your business life as well as private
life, you will get benefitted by this chapter. I promise that you will enhance
your whole career if you capture all the ideas given here.
Gemba Kaizen, PPORF, 5 S, PDCA cycle, House of Quality and what not.
Enjoy!
! !148
PREVENTIVE TECHNIQUES
REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture
! !149
CONTINUOUS IMPROVEMENT
Chapter 7
CONTINUOUS IMPROVEMENT
Objectives
Structure
7.1 Preamble
7.2 Continuous Improvement and Continual Improvement
7.3 Twenty Keys to Workplace Improvement
7.4 Gemba Kaizen
7.5 House of Quality: Quality Function Deployment
7.6 Poka-yoke
7.7 Quality Circles
7.8 Activities for the Students
7.9 Summary
7.10 Self Assessment Questions
7.11 Multiple Choice Questions
! !150
CONTINUOUS IMPROVEMENT
7.1 Preamble
Figure 7.1
! !151
CONTINUOUS IMPROVEMENT
!
Figure 7.2
! !152
CONTINUOUS IMPROVEMENT
!
Figure 7.3
! !153
CONTINUOUS IMPROVEMENT
What is WASTE?
1. Value adding is that part of the work for which the customer is ready to
pay.
Figure 7.4
1. Intermediate storage
2. Idle machine
3. Too much of paperwork
! !154
CONTINUOUS IMPROVEMENT
!
Figure 7.5
! !155
CONTINUOUS IMPROVEMENT
4. Question everything
! !156
CONTINUOUS IMPROVEMENT
1. In the first circle, the diameter of the inner circle is small which
increases in the next circle and it further increases in the next circle.
This means that all the 20 parameters have improved equally and
simultaneously. This is what should happen.
! !157
CONTINUOUS IMPROVEMENT
1. In the first circle, the diameter of the inner circle is small. In the next
circle, the improvement is observed only in case of parameter No. K1
and K7. In the next circle again, the improvement is observed only in
case of parameter No. K4, K10 and K16. This is what should not
happen.
Figure 7.7
1. Seiri (Sorting)
! !158
CONTINUOUS IMPROVEMENT
2. Seiton (Systemizing)
(b) Allocate a place close to the point of use for frequently used items
(e) Establish a method for keeping record sheets, data, reports etc.
(g) Trolleys, bins and forklift trucks could have proper parking places.
Systemize storage of drawings, prepare indexes, label shelves and
cabinets
(c) Avoid littering: collect machine scrap etc regularly and dispose off
(e) Look for leaks, cracks on machines, identify root causes, take
necessary actions
! !159
CONTINUOUS IMPROVEMENT
5. Shitsuke (Self-discipline)
! !160
CONTINUOUS IMPROVEMENT
2. If the goal is just told from top to the bottom through each level, it is
difficult to let everyone cooperate towards the goal.
3. If someone thinks of just attaining his own goal and pushes others out,
the whole goal could never be achieved.
4. Help others and be helped by others and then you can achieve your
goal.
5. Management and employees together should think of the company goal
and take it as the goals of the individual and work towards attainment.
1. Small groups formed by first line employees who set their own goals
related to their work itself, work environment or human relations
according to their ability.
2. The activities are conducted through wisdom and efforts of all group
members.
! !161
CONTINUOUS IMPROVEMENT
Coupled Manufacturing
Creating collaboration between upstream and downstream processes: Low
WIP, low inventories in stores, single minute changeover, combining
different processes, a line of different processes. We can make wide variety
of products in small quantities along the line.
! !162
CONTINUOUS IMPROVEMENT
If operators are trained to be able to perform skills not only in their own
workplace, but also other areas, demand can be met in any unexpected
circumstances.
Efficiency Control
Using Microprocessors
Computerization.
! !163
CONTINUOUS IMPROVEMENT
!
Figure 7.8
! !164
CONTINUOUS IMPROVEMENT
2. The first and foremost activity is look for all the MUDA, i.e., wastes on
the workplace as given below. Then we have to improve the
housekeeping.
4. We have to take temporary counter measures on the spot. Find the root
cause of problems.
PDCA Cycle
! !165
CONTINUOUS IMPROVEMENT
Figure 7.9
PDSA Cycle
! !166
CONTINUOUS IMPROVEMENT
Figure 7.10
Figure 7.11
! !167
CONTINUOUS IMPROVEMENT
SDCA Cycle
Plan Stage:
Do Stage:
1. Evaluate effects
2. Summarize what was learned
Act Stage:
(a) Documenting
(b) Standardizing and control
(c) Training to ensure that the employees fully understand the new
methods.
! !168
CONTINUOUS IMPROVEMENT
!
[a]
[b]
! !169
CONTINUOUS IMPROVEMENT
!
[c]
Figure 7.12
!
• STANDARDIZE TO PREVENT RECURRENCE
Figure 7.13
! !170
CONTINUOUS IMPROVEMENT
In practice, this results in short office meetings, with the brunt of work
being completed on the shop floor.
QUALITY MANAGEMENT IN
GEMBA
CONCERNS TO BE ADDRESSED
• POOR WORKMANSHIP
• LACK OF TRAINING - RETRAINING
• DIFFICULTIES
• VARIABILITIES
• INADEQUATE WORKING STANDERDS
• LACK OF SELF DISCIPLINE
• LACK OF TEAMWORK
• LACK OF INVOLVEMENT
!
• COMMUNICATION GAP
Figure 7.14
! !171
CONTINUOUS IMPROVEMENT
!
• REDUCE LEAD TIME
Figure 7.15
Case Example:
In MICO Bosch, they perform the two day kaizen It is the best way to:
1. Interact with the workers and motivate them
2. To solve the problems faster
3. Achieve continuous improvements
!•
WRAP UP SESSION
Figure 7.16
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CONTINUOUS IMPROVEMENT
5. They discuss with the workers and setters/supervisors about the work
environment, work related problems, safety/quality issues
All the team members’ work towards one goal: All the actions must be
completed in two days! THIS MAKES THE BIG DIFFERENCE because
the positive change is appreciated by everyone.
QFD is driven by what the customer wants and hence this technique is
often described as “deploying the voice of the customer”. QFD provides
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CONTINUOUS IMPROVEMENT
Let us discuss the following example to make the concept very clear. It is
an example of table setting in a Five Star Restaurant.
Whenever any customer goes to the restaurant, he expects that the table
setting must be attractive in the sense that:
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CONTINUOUS IMPROVEMENT
Figure 7.17
! !175
CONTINUOUS IMPROVEMENT
1. Laundry
2. Dishwashing
3. Table design
4. Table layout
5. Inspection
6. Budgeting
7. Purchasing
8. Training
4. Table design: Strong relationship with elegance of the cloth, décor and
correctness of layout.
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CONTINUOUS IMPROVEMENT
In the same (last but one) row, importance of other processes is also
given.
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CONTINUOUS IMPROVEMENT
Next three columns show how this aspect compares with the competitors
on the scale of 1-10. For example, 9 in case of this company, 4 in case of
Frankies and 9 in case of Casa Nova, in the first row of “clean cloth.”
This way, the whole matrix is completed. On the roof of the house of
quality, correlation with individual restaurant processes is denoted by +, +
+ signs.
Conclusion
3. Elegant décor is the aspect having total score of 294 followed by correct
cutlery having score of 232. Maximum attention must be given to these
aspects.
5. Table layout has a strong positive (++) correlation with inspection and
training.
QFD has several advantages. These include identifying customer needs and
expectations, determining how to meet them, defining quantified goals,
importance of each process in meeting customer requirements, and
amount of attention to be given to each requirement. The benchmarking of
our product or service with respect to those of competitors, as well as
customer’s perception of our product/service is also known. It is an
amazing exercise which must be done by every entrepreneur.
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CONTINUOUS IMPROVEMENT
7.6 Poka-Yoke
1. Forgetfulness – Misunderstanding
2. Lack of experience/skills – Lack of concentration
3. Laziness – Lack of standards
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CONTINUOUS IMPROVEMENT
Figure 7.18
In the above photo, putting the mobile phone (on-charge) inside a shoe
makes it more likely that it will be remembered when going out. The act of
putting the shoes on requires the user to pick up the phone, which could
otherwise be easily forgotten.
A very common poka-yoke is involved every time we purchase fuel for our
automobiles. When unleaded fuel was introduced, there were many
automobiles on the road that still used leaded fuel. In order to prevent
leaded fuel from being placed in unleaded automobiles, the size of the fuel
inlet was changed so that the leaded fuel dispense nozzle would not insert.
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CONTINUOUS IMPROVEMENT
Figure 7.19
Figure 7.20
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CONTINUOUS IMPROVEMENT
Figure 7.21
Figure 7.22
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CONTINUOUS IMPROVEMENT
2. The term quality circle derives from the concept of PDCA (Plan, Do,
Check, Act) circles developed by Dr. W. Edwards Deming.
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CONTINUOUS IMPROVEMENT
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CONTINUOUS IMPROVEMENT
Structure:
! !
! !185
CONTINUOUS IMPROVEMENT
a. Brainstorming
b. Data collection
c. Pareto analysis
d. Cause and effect diagrams
e. Line graphs
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CONTINUOUS IMPROVEMENT
Activity A
Activity B
7.9 Summary
! !187
CONTINUOUS IMPROVEMENT
What is WASTE?
1. Value adding is that part of the work for which the customer is ready to
pay.
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CONTINUOUS IMPROVEMENT
4. Explain PDCA and PDSA cycles. Clarify the difference between them.
2. In PDSA, S denotes:
a. Severity
b. Study
c. Smooth
d. System
a. Foolishness
b. FMEA
c. Poka-yoke
d. Gemba kaizen
a. Poka-yoke
b. Gemba kaizen
c. Gembutsu
d. Quality circles
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CONTINUOUS IMPROVEMENT
a. House of quality
b. Customer’s delight
c. House of Gemba
d. Customer’ function
a. Continual action
b. Continuous action
c. Interrupted action
d. Routine activity
7. “Avoid littering: collect machine scrap etc regularly and dispose off”.
This is:
a. Seiton
b. Seiri
c. Seiso
d. Shitsuke
8. A jig that holds pieces for processing might be modified to only allow
pieces to be held in the correct orientation. This is an example of:
a. Muda
b. Seiton
c. Poka-yoke
d. Gemba
9. You may need to decide what the customer wants, which product to
develop, or which process needs improvement first. You have to
perform:
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CONTINUOUS IMPROVEMENT
So, my dear students, after a very much valuable and inspiring chapter of
Continual improvement, now your next destination is cost of poor quality or
cost of quality.
However, cost of quality has much more meaning than the other costs. It
has a dimension of customer satisfaction. An entrepreneur reduces cost of
quality not merely to improve profitability, but mainly to improve customer
satisfaction.
Juran was one of the first to think about the cost of poor quality.
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CONTINUOUS IMPROVEMENT
REFERENCE MATERIAL
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! !192
COST OF QUALITY
Chapter 8
COST OF QUALITY
Objectives
Structure
8.1 Preamble
8.2 Definition of Quality Cost
8.3 Graph of Quality Level versus Quality Cost
8.4 Taguchi Loss Function
8.5 Case Examples
8.6 Activities for the Students
8.7 Summary
8.8 Self Assessment Questions
8.9 Multiple Choice Questions
! !193
COST OF QUALITY
8.1 Preamble
The Reality
Productivity goes up and cost comes down as quality goes up. This fact is
known, BUT IT IS KNOWN ONLY TO A SELECTED FEW.
Also Defined as: The expenditure incurred by the producer, by the user,
and by the community associated with the product or service quality.
!
Figure 8.1
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COST OF QUALITY
Cost of Conformance
Prevention Costs
Appraisal Costs
1. Inspection
2. Over-checking
3. Auditing
4. Reminders
Cost of Non-conformance
! !195
COST OF QUALITY
1. Rework
2. Scrap
3. Design changes during process
4. Obsolete inventory
1. Actual expenditure
2. Man-hours lost
3. Warranty costs-replacement costs
4. Unplanned field service
! !196
COST OF QUALITY
• Product-design verification
• Systems development and
management
! !197
COST OF QUALITY
Variants of the concept of quality costs include cost of poor quality and
categorization based on account type, described by Joseph M. Juran.
Table 8.2
! !198
COST OF QUALITY
Figure 8.2
The above graph shows relationship between quality level and cost.
It is also possible that the quality cost curve reduces initially and takes the
least value when the quality conformance reaches 100%. This is expected
in industries following TQM.
! !199
COST OF QUALITY
However, what are the real costs of poor quality? The conventional
viewpoints to losses to rework or scrapping products made outside
specifications.
It explains that the implications of poor quality run deeper and include
social costs, and that such costs are a function of quality standards.
Taguchi suggests that every process have a target value (i.e., middle of
the tolerance) and that as the product moves away from target value,
there is a loss incurred by society. This loss may involve delay, waste,
scrap, or rework.
The Background
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COST OF QUALITY
The Concept
Taguchi’s loss function explains that quality does not suddenly plummet
and private and social costs do not rise suddenly when products are not in
conformance to specifications. Instead, the losses to the manufacturer and
the society are a function of the deviance or variability from the target
value or best quality level. The private and social loss is zero at the target
value (i.e., middle of the tolerance), and the losses gradually increase as
the product specifications deviate from the target value.
The three characteristics that shape the definition of Taguchi loss function
are:
! !201
COST OF QUALITY
agricultural output, and the like. For instance, the higher yields indicate
better quality seeds, and lower yields increase the social costs.
USL = 69
LSL = 55
UCL = 63
LCL = 61
Sure, the product fits within the specification limits. The - chart is well
under control, all the values being within the control limits.
However, as you can see the “s” chart, which fluctuates, meaning that
there is a fluctuating process variation and so, the customer might have to
reset their production machines several times to accommodate the
changes in specifications. Loss!
The loss isn't linear. Taguchi theorized that the loss is proportional to
the square of the distance from the target value.
! !202
COST OF QUALITY
Figure 8.3
! !203
COST OF QUALITY
Case Example 1
American Transmissions
1. All of the American transmissions had parts that fell within the USL-LSL.
Some measures were a little higher and some a little lower.
Japanese Transmissions
To t r u l y s e r v e y o u r c u s t o m e r, y o u r p r o c e s s h a s t o b e
both stable and capable. It cannot just be one or the other.
! !204
COST OF QUALITY
2. Reduce variation
3. Reduce the loss
Stabilizing your process and reducing the variation will, in turn, reduce the
cost of the Taguchi Loss function. This will save you and your customers’
time and money (rework, waste, and delay). And customers are smart.
They can tell the difference between two different transmissions and they
can tell the difference in quality between you and your competitors.
Make sure you are in charge of who your customers return to year after
year. Hitting the goal posts is not good enough any more. You have to hit
the target value most of the time. Your customers will love you for it.
Case Example 2
2. The customer loss, A0, is the average loss occurring at this point. Your
target is 200g of pigment in each gallon of paint. The average cost to
the consumer, Home Decor, is ` 600 per gallon from returns or adjusting
the pigment.
Calculate the loss imparted to society from a gallon of paint with only 185g
of pigment by Taguchi method.
! !205
COST OF QUALITY
This means that if you put 185 grams of pigment instead of 200 +-10
grams, the customer will have a loss of ` 1350.
Case Example 3
Expanding on the first paint example, let us decide what the manufacturing
tolerance should be. The manufacturing tolerance is the economic break-
even point for reworking scrap. Suppose the off-target paint can be
adjusted at the end of the line for ` 60 a gallon. At what pigment level,
should the manufacturer spend the ` 60 to adjust the paint?
! !206
COST OF QUALITY
As long as the paint is within 200g +- 3.2g of pigment, the factory should
not spend ` 60 to adjust the pigment at the end of the line, because the
loss without the rework will be less than ` 60.
If the paint manufacturer ships the product from example 1 with 185g of
pigment, they are saving ` 60 of reworking costs but imparting a cost of `
1350 on society. These additional costs will surface through loss of
customer satisfaction and thus brand reputation, loss of market share and
returned products.
Activity A
Activity B
8.7 Summary
! !207
COST OF QUALITY
b. Find the break-even point for fixing the product and the cost
imparted to society from not fixing the product
3. Taguchi suggests that every process have a _________ value and that
as the product moves away from this value, there is a loss incurred by
society.
a. Target
b. Tolerance
c. Human Skill
d. Profit
! !208
COST OF QUALITY
a. Scientists
b. A selected few
c. Engineers
d. Senior Managers
a. Internal
b. External
c. Manual skill dependent
d. Correction
The customer would not buy the product just because it is a branded one,
just because it looks beautiful, and just because it satisfies all your needs
now. He will buy the product only if he gets assurance that it is reliable.
You will understand this one of the most important topic now.
! !209
COST OF QUALITY
REFERENCE MATERIAL
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! !210
RELIABILITY
Chapter 9
RELIABILITY
Objectives
Structure
9.1 Preamble
9.2 Quality
9.3 Reliability
9.4 Availability
9.5 Maintainability
9.6 Safety
9.7 Mean Time Between Failures (MTBF)
9.8 Mean Time to Failure (MTTF)
9.9 Bathtub Curve
9.10 Calculation of Reliability – An Example
9.11 Activities for the Students
9.12 Summary
9.13 Self Assessment Questions
9.14 Multiple Choice Questions
! !211
RELIABILITY
9.1 Preamble
Case Example 1
In year 1984, I bought my first refrigerator. I paid the bill and asked the
shop owner to give me his contact number. He politely declined to give his
phone number to me. I was taken aback by his arrogance and was upset
with him. Still, I told him calmly that it might be necessary for me to get in
touch with him in case of any problem such as noise, non-performance etc.
He said, “You won’t have any problem, sir”.
I again insisted upon him to give me his contact number.
He repeated, “Don’t worry, sir. Your fridge will work without any problem. I
have closed my service workshop since workers there did not have any
work.”
I was not convinced and came home. To my delight, the fridge worked
faultlessly for 20 years. I changed it not because it stopped working. I
changed it because my children insisted upon me to change that single
door old fridge and get a modern one.
9.2 Quality
When a customer buys a product, he expects to get maximum value for his
money. So, in addition to quality, i.e., “Degree to which a set of inherent
characteristics fulfils requirements”.
! !212
RELIABILITY
9.3 Reliability
2. Performance: For example, a car should give a particular pick up, high
mileage, lowest running cost etc. The device should perform as per all
the requirements of the customer.
One day, a lady called the refrigerator mechanic to attend a fault in her
fridge. The mechanic checked everything and could not find any fault.
Shocked, he asked the lady as to why she had called him. She said, “Yeh
fridge awaz hi nahin karta!” (“This fridge is too silent. Our earlier one was
making lot of noise.” (It was a TV ad).
9.4 Availability
Uptime
Availability = ——————————- of a system
Uptime + downtime
! !213
RELIABILITY
9.5 Maintainability
Probability that a failure will be repaired in specific time after the failure
occurs. For example, maintainability is good if:
1. Corrective: Repair starts on war footing after the failure has occurred.
9.6 Safety
! !214
RELIABILITY
Figure 9.1
By referring to the figure above, the MTBF is the sum of the operational
periods divided by the number of observed failures. If the "Down
time" (with space) refers to the start of "downtime" (without space) and
"up time" (with space) refers to the start of "uptime" (without space), the
formula will be:
MTBF = θ.
! !215
RELIABILITY
1 400
2 470
3 530
4 580
5 600
t1+t2+t3+t4+t5
MTTF = —————————-
N
400+470+530+580+600
= ——————————————
5
= 516 hours
This means that, on an average, the heater will work for 516 hours.
! !216
RELIABILITY
Figure 9.2
1. In the early life of a product adhering to the bathtub curve, the failure
rate is high but rapidly decreasing as defective products are identified
and discarded, and early sources of potential failure such as handling
and installation error are surmounted.
3. In the late life of the product, the failure rate increases, as age and
wear take their toll on the product.
! !217
RELIABILITY
390
R(1) = ————- = 0.195
2000
1 – R (t)
! !218
RELIABILITY
Activity A
Activity B
9.12 Summary
! !219
RELIABILITY
a. Reliability
b. Maintainability
c. Run time
d. Availability
a. Security
b. Safety
c. Reliability
d. MTBF
a. System maintainability
b. System reliability
c. System failure
d. System life
4. Some instruments such as fire alarm are not frequently in use. For such
instruments, a periodic checkup is done, which is called as:
! !220
RELIABILITY
a. Detective maintenance
b. Corrective maintenance
c. Predictive maintenance
d. Selective inspection
The nest important station is: as you have rightly guessed: Customer
Focus.
This is a key performance factor of ant TQM organization.
If there is God in this world, a businessman will see Him in his customer.
I want all of you, my future entrepreneurs, to become 100% customer
focused.
! !221
RELIABILITY
REFERENCE MATERIAL
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! !222
CUSTOMER FOCUS
Chapter 10
CUSTOMER FOCUS
Objectives
Structure
10.1 Preamble
10.2 Types of Customers
10.3 Six Basic Requirements of Customers
10.4 Customers’ Perception of Quality
10.5 Customer Driven Quality Cycle
10.6 Customer Relationship Management (CRM)
10.7 Customer Involvement Management (CIM)
10.8 Measuring Customer Satisfaction
10.9 Customer Survey
10.10 Activities for the Students
10.11 Summary
10.12 Self Assessment Questions
10.13 Multiple Choice Questions
! !223
CUSTOMER FOCUS
10.1 Preamble
! !
! !
! !224
CUSTOMER FOCUS
— Robert Bosch
The individual who buys the products or services of any organization is the
most important person. Without a buyer, the whole manufacturing process
becomes meaningless. Hence, every organization must focus on:
Even if one factor is neglected, the organizations stand to lose heavily. The
most coveted Baldrige Quality Award stresses on customer related issues.
Customer Type 1
! !225
CUSTOMER FOCUS
Figure 10.1
Customer Type 2
Customer Type 3
Customer Type 4
! !226
CUSTOMER FOCUS
Should all the customers be treated equally? Yes. However, it is also a wise
approach to concentrate on vital few customers, 20% who hold 80% of
market share.
1. Performance
2. Features
3. Service
4. Warranty
5. Price
6. Reputation/brand image
7. Availability, reliability and maintainability
! !227
CUSTOMER FOCUS
The first test of the firm’s operating system is the ability of the firm to
supply customers with products and services they actually want, in the
quantities desired and at the time required. If a firm is not prepared to do
this, another firm will oblige its customers.
1. Obtaining data
2. Characterizing customer needs
3. Prioritizing customer needs
4. Linking needs to design.
! !228
CUSTOMER FOCUS
Figure 10.2
! !229
CUSTOMER FOCUS
Similar to local grocery stores, where the owner has good understanding of
the needs of the individual customers, and long-term relationships are
established, CRM is the concept of establishing such a relationship in the
big corporate world using modern technology including databases and
communication technologies.
! !230
CUSTOMER FOCUS
! !231
CUSTOMER FOCUS
1. Surveys
2. Phone calls
3. Complaint reports
4. Trade trials
5. Customer audit
! !232
CUSTOMER FOCUS
6. Sales force
7. Consultants
This section is about the food in the staff restaurant. Please tick the
appropriate boxes and add your comments where relevant.
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
2. When you eat in the staff restaurant, what type of food do you normally
choose? (Tick each one as appropriate)
Starter Vegetables
! !233
CUSTOMER FOCUS
3. Thinking about value for money, how would you describe the food in
general?
Reasonable
Excellent Good
Fair Poor
(Please give reasons)
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
5. What improvements, if any, would you like to see in the variety of foods
on offer?
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
6. If the following were introduced in the staff restaurant, how likely would
you be to try them?
Low-fat spread
! !234
CUSTOMER FOCUS
Low-fat yoghurt
Frozen yoghurt
Fresh fruit
vegetarian choices
A sandwich bar
A yoghurt bar
7. Are you concerned about the types of food you eat (i.e., do you consider
whether they are healthy for you?
Yes No
! !235
CUSTOMER FOCUS
generally?
! !236
CUSTOMER FOCUS
………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………….
Name ……………………………………………………………………………………………………………….
Contact ……………………………………………………………………………………………………………
department ……………………………………………………………………………………………………
Case Example
Many a times, customer survey reveals that factors in the top left quadrant
are significant. Organizations attempt to focus on these factors, without
realizing that these attributes can give only short-term dividends.Attributes
in the top right quadrant need to be focused first. Some important factors,
critical ones, have very poor perception among the customers.
! !237
CUSTOMER FOCUS
were not there in the top right quadrant, i.e., in the priority list of
customers.
Market research can be done to get the voice of the customer. The
following forms of market research are normally used:
! !238
CUSTOMER FOCUS
Activity A
1. Go to a nearby mall and interview some customers. Find out what their
needs are, whether their needs are getting fulfilled and to what extent.
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………….
Activity B
1. Go to either a local five star or a four star hotel and look for their
customer satisfaction survey form. Get it filled by a customer there.
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………….
10.11 Summary
! !239
CUSTOMER FOCUS
1. A customer who does not know what he wants; and does not know that
he does not know what he wants is:
a. Customer type 1
b. Customer type 2
c. Customer type 3
d. Customer type 4
a. CRM
b. CIM
c. CIP
d. CID
a. Money
b. Comments
c. Views
d. Voice
! !240
CUSTOMER FOCUS
a. Complaint reports
b. FIRs
c. Police complaint
d. Police investigation
Now, my dear students, after your have captured the customer focus, your
next destination is Suppliers’ Teaming.
Their teaming with all our employees is a mere must and so my upcoming
entrepreneurs.
After reading the next chapter, you are on the way to become experts in
TQM. I promise.
! !241
CUSTOMER FOCUS
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! !242
SUPPLIER TEAMING
Chapter 11
SUPPLIER TEAMING
Objectives
Structure
! !243
SUPPLIER TEAMING
Figure 11.1
! !244
SUPPLIER TEAMING
4. Supplier cost modeling to help supplier prices down and high quality.
Cost information has to be obtained gradually. Once this is done,
company helps the supplier to see where these true costs are and what
could be done to control these costs.
8. Objectivity: When the production line stops, and the cause appears to
be a non-performing component from a supplier, everybody blames him.
It is tough to be objective. When the supplier is summoned for giving an
! !245
SUPPLIER TEAMING
At Bosch, one supplier was given an order for printing Purchase Order
books, and was supplied with an artwork for the logo. The supplier printed
the books and submitted them in time. To his shock, the books were
rejected because of the faulty logo. The poor supplier cried but the
purchase department said that the logo is of old design, so cannot be
accepted.
Figure 11.2
! !246
SUPPLIER TEAMING
Suppliers are located near the buying firm’s factory or clustered together at
some distance. This will keep the lead times shorter and more reliable.
! !247
SUPPLIER TEAMING
1. A compatibility of interests
2. Mutual need
3. A willingness to be open
5. Trust
Strategic Sourcing
! !248
SUPPLIER TEAMING
4. Embedding the required changes so that the buyer achieves not only
the measurable performance improvement in short term but continuous
improvement on a long term.
Activity A
! !249
SUPPLIER TEAMING
Activity B
11.5 Summary
! !250
SUPPLIER TEAMING
4. Ford and IBM customers/potential customers realized that Ford and IBM
are serious about __________ quality and by extension of the logic,
serious about their own quality.
a. Supplier
b. Internal
c. External
d. local
5. We have to make suppliers as the part of the __________ process.
a. Development
b. Production
c. Service
d. Customer
! !251
SUPPLIER TEAMING
The foundation of TQM is strong only if your employees are fully involved,
motivated and happy and they feel that they are the owners of the
business.
Ownership: Give employees responsibility for planning and conducting the
activities, for analyzing their own data, and for designing check lists.
Leadership: Set an example. Make sure, you, personally take necessary
steps to prevent defects.
Commitment: Work to get commitment to the idea that quality and
customer is number one priority for every one of your employees.
Goals: Set clear and achievable goals.
Competence: Train your employees so much that they are not only
qualified and experienced but also they can do every job themselves on
their own.
Feedback: Appreciate those employees who themselves prevent defects
and delight customers.
! !252
SUPPLIER TEAMING
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! !253
PEOPLE: TOTAL EMPLOYEE INVOLVEMENT
Chapter 12
PEOPLE: TOTAL EMPLOYEE INVOLVEMENT
Objectives
• Importance of people
• One of the most important aspect of TQM, i.e., Total Employee
involvement
Structure
! !254
PEOPLE: TOTAL EMPLOYEE INVOLVEMENT
1. Employees are not just the resources, they are the very purpose
2. Company hires the total man, not just hands
3. Problems are with system and not with people
4. People will be able to improve systems and solve problems
5. Aim is to utilize full potential of all the employees
6. Total employee involvement is essential for customer satisfaction
People Orientation
From To
Individual Team
Control Empowerment
Figure 12.1
! !255
PEOPLE: TOTAL EMPLOYEE INVOLVEMENT
• Most timely
• Lowest cost
• Solution at the source of problem
• Shortest path of communication
• Data not distorted
• Best for prevention in future
• Least political involvement
!
• Provide direct satisfaction
Figure 12.3
! !256
PEOPLE: TOTAL EMPLOYEE INVOLVEMENT
1. Sharing of information
2. Providing input on work-related issues
3. Making suggestions
4. Self-directed responsibilities such as setting goals, making business
decisions and solving problems often in cross-functional teams.
Suggestion Schemes
Empowerment
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1. Quality awareness
2. Leadership
3. Project management
4. Communications
5. Teamwork
6. Problem solving
7. Interpreting and using data
8. Meeting customer requirements
9. Process analysis
10. Process simplification
11. Waste reduction
12. Cycle time reduction
13. Error proofing
14. Employee efficiency and effectiveness
15. Safety
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PEOPLE: TOTAL EMPLOYEE INVOLVEMENT
1. Involvement/interest of EMPLOYERS
2. Training on quality practices
3. Top management commitment
4. Conducive work culture
5. Facilities for implementing quality practices
Even if any other factor is missing, then there will be drastic reduction in
efficiency of implementation.
4. In every meeting, he has to talk about quality and express his personal
commitment.
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8. He should avoid trusting only a few people and expect them to initiate
quality activities.
12.4 Leadership
Anyone who occupies a top level chair need not be necessarily a leader. It
was believed that leader has to be born. But nowadays it has been proved
that a leader can be made. A leader should possess certain qualities which
are essential for leadership.
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11.He must avoid forcing, dominating, bowing down, falling at others’ feet
to get things done.
12.Integrity: Leader should have moral values and should hold on to the
responsibility even during moments of crisis.
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1. Tell what to do
2. Tell where to go
7. Assure help
9. Encourage them
Resistance to Change
This has failed elsewhere The new man does not know anything This is against
norms
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Figure 12.4
1. Self esteem
2. Positive thinking
3. Open mind
4. Unselfish attitude
5. Company interest above self-interest
6. Confidence in others
7. Willingness to take risk
8. Boldness
9. Unegoistic personality
10.Creativity
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! !
When two persons work together as a team, the net effect produced will be
greater than what would have produced by an individual.
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Team-work
Figure 12.5
1. Focus on goal
2. Members contribute voluntarily
3. Climate of trust and openness
4. Interdependent work
5. Two-way communication
6. Motivated to learn while performing
7. Give and take policy
8. Conflicts are automatically solved
9. Members participate in decision making
10.Harmony with systematic procedure
11.Synergetic effect
1. As he fulfills the task, he should ensure that every individual has a gain
which should be in terms of his personal development/personality
development.
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3. Think about the tasks and delegate the work to the members.
5. Take care of members’ social focus: keeping people happy will be the
motto.
1. Physical proximity
2. Common work area
3. Social/personal homogeneity
4. Communication: Listening is the most important quality and also most
important component of communication
5. Role clarity
6. Leader’s interest/intention
7. Prevailing culture
8. Clarity of the purpose
Stumbling Blocks
1. Ego
2. Selfishness
3. Blaming culture
4. Heterogeneity
5. Ineffective leader
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Figure 12.6
• Make small commitments to yourselves and keep them the next day
• Do not say anything bad about a person in his absence
• Do not go into blaming and accusing mode
• Catch people doing right things
• Select a problem in your personal life, think what you can do in your
circle of influence to solve it and take that action
!
Figure 12.8
12.9 Implementation of decision by Consensus
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!
Figure 12.9
Consensus is Defined as
• Everyone understands the decision
• Can live with the decision
• Support the decision
• The decision does not disturb you ethically and morally
• A big consensus is composed of a series of little, tiny agreements
• The power of consensus comes from inclusion
! • Consensus decisions are self-implementing and need little monitoring
Figure 12.10
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Figure 12.11
Activity A
Activity B
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12.11 Summary
2. In teamwork:
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(a) Deming
(b) Juran
(c) Crosby
(d) All the above
The following chapter makes you conversant with all these important
information.
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REFERENCE MATERIAL
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chapter
Summary
PPT
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! !273
MEASUREMENT SYSTEMS ANALYSIS
Chapter 13
MEASUREMENT SYSTEMS ANALYSIS
Objectives
Structure
13.1 Preamble
13.2 Gauge
13.3 Measurement System
13.4 Standards
13.5 Calibration
13.6 Errors or Variation Associated with Measurement System
13.7 Gauge R & R
13.8 Activities for the Students
13.9 Summary
13.10 Self Assessment Questions
13.11 Multiple Choice Questions
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MEASUREMENT SYSTEMS ANALYSIS
13.1 Preamble
4. Poor quality raises costs unnecessarily, as poor quality increases the size
and cost of the hidden factory where wastes, scrap and repair are
manufactured.
Measurement data are used more often and in more ways than ever
before. For instance, the decision to adjust a manufacturing process or not
is now commonly based on measurement data or some statistic calculated
from them, are compared with statistical control limits for the process, and
if the comparison indicates that the process is out of statistical control,
then an adjustment of some kind is made. Otherwise, the process is
allowed to run without adjustment.
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13.2 Gauge
13.4 Standards
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At the highest level in the hierarchy is the national standard, usually held
by NIST but in some cases by other organizations as Los Alamos Scientific
Laboratory, on behalf of NIST.
Measurements are transferred from the national standard to the next level
standard which is called a primary standard. Measurements are transferred
from the primary standard to another level of standard called a secondary
standard. For the secondary standard to be traceable, the transfer must be
done by using an appropriate calibration procedure.
13.5 Calibration
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MEASUREMENT SYSTEMS ANALYSIS
In many countries a National Metrology Institute (NMI) will exist which will
maintain primary standards of measurement (the main SI units plus a
number of derived units) which will be used to provide traceability to
customer's instruments by calibration. The NMI supports the metrological
infrastructure in that country (and often others) by establishing an
unbroken chain, from the top level of standards to an instrument used for
measurement. Examples of National Metrology Institutes are NPL in
the UK, NIST in the United States, PTB in Germany and many others. Since
the Mutual Recognition Agreement was signed, it is now straightforward to
take traceability from any participating NMI and it is no longer necessary
for a company to obtain traceability for measurements from the NMI of the
country in which it is situated.
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Figure 13.1
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MEASUREMENT SYSTEMS ANALYSIS
!
Figure 13.2
!
Figure 13.3
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MEASUREMENT SYSTEMS ANALYSIS
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MEASUREMENT SYSTEMS ANALYSIS
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MEASUREMENT SYSTEMS ANALYSIS
In the above example, there are three appraisers namely A, B and C, who
are measuring ten parts twice with the same gauge. That means:
2. Appraiser B is checking the same ten parts, each part twice, with the
same gauge
3. Appraiser C is checking the same ten parts, each part twice with the
same gauge
Go through the above tables and study the calculations row by row.
It is seen that:
Figure 13.6
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MEASUREMENT SYSTEMS ANALYSIS
Activity A
1. You have a foot rule (scale) and you along with two of your friends
should check lengths of several similar rods with the scale. Calculate the
gauge R & R of the rule.
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Activity B
13.9 Summary
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MEASUREMENT SYSTEMS ANALYSIS
a. Scale
b. Calibration
c. Gauge
d. Measurement system
a. MIST
b. JUSE
c. HDFC
d. NIST
a. Reading
b. Master
c. Calibration
d. Measurement
a. Bias
b. Repeatability
c. Stability
d. R&R
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MEASUREMENT SYSTEMS ANALYSIS
a. Stability
b. Reproducibility
c. R& R
d. Linearity
So, my dear students, once you have studied the measurement systems
analysis, here comes a era of Quality Management Systems: ISO 9000
which you must have heard many times.
In the following chapter, you are going to get a complete picture about the
Quality Management Systems which you would surely like to implement in
your organisation, and get certified from an accredited authority.
I would say that ISO 9000 certification is equivalent to a degree which you
get from a university after studying the complete syllabus. Similarly, I shall
put it that ISO 9000 certification gives you a recognition that you have
implemented TQM in your organisation.
Get to know this interesting part of the book, with which you will get
benefitted fully.
Come on!
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REFERENCE MATERIAL
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chapter
Summary
PPT
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Video Lecture
! !288
QUALITY MANAGEMENT SYSTEM
Chapter 14
QUALITY MANAGEMENT SYSTEM
Objectives
Structure
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It has been identified that these principles can be used by top management
in order to lead the organization towards improved performance.
(b) Leadership
Leaders establish unity of purpose and direction of the organization.
They should create and maintain the internal environment in which
people can become fully involved in achieving the organization’s
objectives.
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QUALITY MANAGEMENT SYSTEM
These eight quality management principles form the basis for the
quality management system standards within the ISO 9000 family.
ISO 9000 was first published in 1987. It was based on the BS 5750 series
of standards from BSI that were proposed to ISO in 1979.
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QUALITY MANAGEMENT SYSTEM
The ISO 9000 family of standards listed below have been developed to
assist organizations, of all types and sizes, to implement and operate
effective quality management systems.
3. ISO 9004 provides guidelines that consider both the effectiveness and
efficiency of the quality management system. The aim of this standard
is improvement of the performance of the organization and satisfaction
of customers and other interested parties.
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QUALITY MANAGEMENT SYSTEM
The text of the ISO Standard has been approved as suitable for publication
as an Indian Standard without deviations. Certain conventions are,
however, not identical to those used in Indian Standards. Attention is
particularly drawn to the following:
ISO 9001
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Other standards, like ISO 19011 and the ISO 10012 series, may also be
used for specific parts of the quality system. Only ISO 9001 is directly
audited against for third party assessment purposes. The other two
standards are supplementary and contain deeper information on how to
sustain and improve quality management systems.
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QUALITY MANAGEMENT SYSTEM
Before the certification body can issue or renew a certificate, the auditor
must be satisfied that the company being assessed has implemented the
requirements of Sections 4 to 8.
The standard specifies that the organization shall issue and maintain the
following six documented procedures:
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QUALITY MANAGEMENT SYSTEM
Top management need to recognize that the reason for the existence of
any organization is to satisfy its customers and stakeholders and to
structure its operations around that basic premise. To help achieve
customer satisfaction, top management is required to commit to a
meaningful quality policy, create customer focused quality objectives, and
deploy them throughout the organization.
2. Implement them;
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QUALITY MANAGEMENT SYSTEM
This activity embraces the concept sometimes called 'the voice of the
customer' — which is the process of listening to end-user feedback — as
well as addressing the need to comply with regulatory requirements,
anticipate what new regulations may be in force when the product or
service is ready for delivery, being aware of what the competition is doing
now, and trying to guess what they may be doing down the road. Guessing
where client taste is likely to be by the time the deliverable hits the streets
adds yet another dimension, and for some organizations, all this has to be
done on a global scale.
Once the design is determined, the organization then has to create the
production process, purchase materials, arrange delivery methods, handle
orders and all of the million and one other details which go into the
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QUALITY MANAGEMENT SYSTEM
The first draft called the ‘Committee Draft’ of ISO 9001:2015 was
published in May 2013 and is available for consultation among members of
ISO/TC 176/SC 2 (the ISO committee that is leading the revision process)
until August 2013.
The impact of this revision will be similar to, if not greater than the 2000
edition, which was a major change for accreditation bodies, certification
bodies, training organizations, implementing organizations, procurement
organizations, consultants and customers. The transition period for ISO
9001:2000 was three years and the expectation is that the 2015 revision
will be the same, so activity is being planned up to 2018.
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QUALITY MANAGEMENT SYSTEM
This new ISO 9004 standard explains how organization's can use a
quality management approach to achieve sustained success. This is a
major change in focus. Sustained success is now the goal of the
standard.
4. Success Management
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QUALITY MANAGEMENT SYSTEM
5. Strategic Management
6. Resource Management
7. Process Management
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QUALITY MANAGEMENT SYSTEM
8. Evaluation Management
9. Change Management
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QUALITY MANAGEMENT SYSTEM
can be considered as a process. Often the output from one process directly
forms the input to the next.
! !302
QUALITY MANAGEMENT SYSTEM
Figure 14.1
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QUALITY MANAGEMENT SYSTEM
Continual Improvement
1. Documents,
2. Records,
3. Internal audits,
4. Non-conforming product,
5. Corrective action,
6. Preventive action.
1. A quality manual,
2. A statement of quality policy, and
3. Quality objectives.
! !304
QUALITY MANAGEMENT SYSTEM
Customer Satisfaction
It was prepared by the International Automotive Task Force (IATF) and the
"Technical Committee" of ISO. It harmonizes the country-specific
regulations of Quality Management Systems.
About 30 per cent of the more than 100 existing automobile manufacturers
affiliate the requirements of the norm.
! !305
QUALITY MANAGEMENT SYSTEM
5. Researchers found that companies which implement ISO 9000 and TQM
at the same time and in an integrated manner might expect to have
advantages in product quality, delivery, productivity and customer
satisfaction.
! !306
QUALITY MANAGEMENT SYSTEM
Activity A
Activity B
1. Make a project about how you will implement ISO 9001:2008 in a small-
scale company.
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14.8 Summary
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QUALITY MANAGEMENT SYSTEM
a. 1990
b. 1963
c. 1948
d. 1987
a. BS 5750
b. QS9000
c. Bosch
d. DIN
4. Major outline contents for ISO 9001 (Quality Management System) are
given in:
a. Section 4
b. Section 5
c. Section 6
d. Section 7
a. Control of Documents
b. Control of Records
c. Internal Audits
d. Corrective Action
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QUALITY MANAGEMENT SYSTEM
So, my dear students, now you reach a destination which I should call as
the heart of the customer satisfaction, and that is Service Quality.
The total exercise will be null and void if you and your organization are
weak in the service quality.
Like the customer expects reliability along with product quality, he expects
one more thing and that is service quality.
And the next topic gives you a complete background about various aspects
of service quality, which you will be practicing throughout your life,
wherever you are and whatever you are doing as an entrepreneur.
Once you by-heart this chapter word by word, the whole world is yours,
and you can now achieve any height and accomplish almost anything in
your life.
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QUALITY MANAGEMENT SYSTEM
REFERENCE MATERIAL
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! !310
SERVICE QUALITY
Chapter 15
SERVICE QUALITY
Objectives
Structure
15.1 Preamble
15.2 Service Quality
15.3 SERVQUAL or Rater
15.4 ‘GAP model’
15.5 A Typical Case Example of Measuring Service Quality in Banks
15.6 A Typical Case Example of Measuring Service Quality in Hotels
15.7 Statistical Process Control
15.8 My Thrilling Experience
15.9 Activities for the Students
15.10 Summary
15.11 Self Assessment Questions
15.12 Multiple Choice Questions
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SERVICE QUALITY
15.1 Preamble
1. Education
2. Banking
3. Insurance
4. Defense
5. Municipal services
6. Welfare services
7. Legal services
8. Health services
9. Marketing
10.Travels and tours
11.Restaurants
12.Transportation
13.Public utilities such as electricity and water etc.
1. After-sales service
2. Warranty replacement
3. Repairs under guarantee clauses
Following are the services that support manufacturing function:
1. Purchasing
2. Accounting
3. Pay-roll
4. Personnel
5. R&D
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A business with high service quality will meet customer needs and remain
economically competitive. Improved service quality may increase economic
competitiveness of the organization.
For example, in the case of TAJ Hotels, Resorts and Palaces, wherein
TAJ remaining the old luxury brand in the five-star category, the umbrella
branding was diluting the image of the TAJ brand.
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SERVICE QUALITY
2. The service provider's ability and talent to present this expected service.
3. Successful companies add benefits to their offering that not only satisfy
the customers but also surprise and delight them. Delighting customers
is a matter of exceeding their expectations.
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The very nature of service implies that it must respond to the needs of the
customer.
The service must meet or exceed the customer expectations. The unique
factors determining the customer satisfaction in service quality are:
7. Are the service people able to understand and appreciate all the
customer’s needs?
12. The most significant problem with the delivery of services is that it is
typically measured at the customer’s interface. Sometimes, if the
problem exists, it is too late to fix it.
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SERVICE QUALITY
17. Tools and equipments used to provide service and physical facilities
19. Accuracy: Is service performed accurately the first time and then
every time?
21. Are the service people able to communicate to the customers properly
about all the service process?
22. Credibility: Are the service people trustworthy? Are they believable
and honest? Is their work reliable and dependable?
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By the early 1990s, the authors had refined the model to the useful
acronym RATER:
Figure 15.1
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4. E m p a t h y ( T r e a t i n g c u s t o m e r s a s i n d i v i d u a l s ) : C a r i n g ,
individualized attention the firm provides its customers.
This gap arises when the management does not correctly perceive what
the customers want.
For instance, hospital administrators may think patients want better food,
but patients may be more concerned with the responsiveness of the nurse.
Here, the management might correctly perceive what the customer wants,
but may not set a performance standard. An example here would be that
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SERVICE QUALITY
The gap arises when these assumed expectations are not fulfilled at the
time of delivery of the service.
For example – The hospital printed on the brochure may have clean and
furnished rooms, but in reality it may be poorly maintained – in this case
the patient’s expectations are not met.
This gap arises when the consumer misinterprets the service quality. The
physician may keep visiting the patient to show and ensure care, but the
patient may interpret this as an indication that something is really wrong.
1. The SERVPERF model was carved out of SERVQUAL by Cronin and Taylor
in 1992. SERVPERF measures service quality by using the perceptions of
customers.
2. There are 13 private banks and 3 public banks operating in the city.
! !319
SERVICE QUALITY
4. In this study, both primary and secondary sources of data were used to
collect the needed information from the sources. The primary data were
collected through administrating questionnaire from selected customers.
In order to get the answer for questions, 260 questionnaires were
distributed to 260 customers of private banks. From the 260
questionnaires, 250 responses were received. The screening process
resulted in excluding 5 responses from the study because of missing
data items. The remaining responses 245 represent an effective
response rate of around 94% of the total sample.
6. The second part was concerned with the questions used to assess
service quality of the private banks. The research instrument designed
is based on the five dimensions of service quality and the 22 service
items of the SERVPERF model.
9. In this study, customer’s satisfaction was measured using one item that
captures overall satisfaction on service offered by the banks. It was
measured using a five-point scale.
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Tangibility 3.40
Reliability 3.00
Responsiveness 2.625
Assurance 3.175
Empathy 2.605
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The second dimension as per the rating of the customers is assurance with
a mean score of 3.18. The customer perceived that the banks are
performing better in having knowledgeable and courteous employees and
providing secure and trustworthy service.
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4. The target population of the survey was guests staying in hotels during
the summer of 2007. Questionnaires were distributed in 15 (2-, 3- and
4-star) hotels, after hotel managers agreed to participate in the study.
Reception desk employees were asked to administer the questionnaires
to guests during their hotel stay, and to collect them after completion.
In each hotel, questionnaires were randomly distributed to the guests.
Of 265 returned questionnaires, 12 were not included in the analysis
because of incompleteness. Thus, data analysis is based on a sample of
253 valid questionnaires. The response rate was 26 per cent.
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SERVICE QUALITY
females (48.2 per cent), and most of the respondents (55 per cent)
were older than 46 years. More than 60 per cent of hotel guests in the
sample had a university or college education. About 86 per cent of the
respondents indicated that the main purpose of their visit was vacation.
Most of them stayed at a 4-star hotel, for between four and seven days.
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SERVICE QUALITY
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The chart shows a record of totally 125 occasions during a period of three
years. It is seen that the service provider has taken maximum 9 hours and
minimum 5 hours to put back the motor in working condition. There is not
even a single occasion in which he has exceeded the limit of 10 hours. He
has to travel about 10 kilometers to reach the customer. His planning is so
good that customer is delighted with his service.
In the first group of 5 deliveries, 4 values are 7 hours, but one value is 8
hours.
_
The average of these 5 values = X is 7.2 hours, and the standard deviation
“s” is 0.4, which denotes consistency.
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SERVICE QUALITY
LCL = 6.2 hours and the average order to delivery time must lie within
these control limits.
_
Looking at the X chart, it is observed that all the values are within control
limits which is OK.
However, look at the s chart. The values are fluctuating. That means the
consistency is not upto the mark.
! !327
SERVICE QUALITY
!
Figure 15.3
I was normally giving my car for repairs to the authorized service station
which was very much renowned for giving excellent service.
The bill normally used to be hefty, in the range of ` 2000 to ` 2500 and
there was no discussion about that possible.
One day, I decided to get the job done by one of my son’s friends who had
his own garage. I phoned him up about it. To my surprise, he came to my
house, took and drove the car to his garage.
Next day, he came to me and told that the cost would be ` 700 and he
wanted that amount to buy some materials. I gave him the amount.
After two days, he completed the repairs and brought back the car to me
and apologized to me because he could not give the car back on the same
day.
But afterwards, I came to know that he did this kind of service to all his
customers.
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Activity A
Activity B
15.10 Summary
a. Consistency
b. SERVPERF
c. After-sales service
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a. Conformance
b. Performance
c. Skill
d. Staff
2. “Are the service people trustworthy? Are they believable and honest? Is
their work reliable and dependable?” This quality is called as:
a. Credibility
b. Competence
c. Skill
d. Qualification
a. Gap 1
b. Gap 2
c. Gap 3
d. Gap 4
a. Quality
b. Reliability
c. Maintainability
d. Availability
5. Transportation is a:
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Until now, you have understood almost the complete information about
TQM and now it is time for all of you to implement TQM in your
organisation.
One completes his study, then he practices his knowledge, and gets some
experience about the subject. He becomes competent in the matter.
So, we are presenting to you the road map for actual implementation of
TQM to you.
We are confident that if you follow these footsteps, you will be a successful
TQM executive.
We have practiced these steps in our organisations and have come out with
flying colours.
After this chapter, we have presented some innovative methods which you
should practice while implementing TQM.
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REFERENCE MATERIAL
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chapter
Summary
PPT
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Video Lecture
! !332
ROAD MAP TO TOTAL QUALITY MANAGEMENT
Chapter 16
ROAD MAP TO TOTAL QUALITY
MANAGEMENT
Objectives
Structure
16.1 Preamble
16.2 TQM Road Map
16.3 OEA Model
16.4 TQM Implementation Strategy
16.5 Activities for the Students
16.6 Summary
16.7 Self Assessment Questions
16.8 Multiple Choice Questions
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ROAD MAP TO TOTAL QUALITY MANAGEMENT
16.1 Preamble
My dear students, by now, you must have totally got an idea as to what
TQM is all about and we are sure that you must be thinking seriously as to
how to implement it in your real life as well as at your place of work.
The purpose of this book will be fulfilled if and only if you have all the
enthusiasm, motivation and willingness to make quality as the main
subject of your career. Let me make it clear that you as an entrepreneur/
occupier/director of the future will be successful if and only if you follow
the path of TQM, and this is no exaggeration.
! !
In school, our teachers have always told us that whenever you travel to
places such as Delhi, Kolkata etc., always carry the map of the city, and
follow it, and never ever ask the routes to any strangers.
Whenever you want to travel anywhere, you need to know the starting
place, mode of travel and destination. You also need resources such as
money, luggage, food items, dresses, and identity card and so on. You also
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ROAD MAP TO TOTAL QUALITY MANAGEMENT
must know what are the constraints such as money, time etc. You also
have to take into account the health issues, if any. You also need to make a
schedule and monitor it accurately. On reaching the destination, you should
celebrate and reward the people who were a part of your team to make
your travel successful.
Step 1:
1. Where does the company stand now? What is the present status?
2. Who are your customers? Are they happy? What are the customer
related issues?
3. How do the Balance Sheet and Profit & Loss accounts look like?
7. Who are the competitors? How does your product and service compare
with their product and service? What is your market share?
8. How are the business processes in the company? Are the equipments
pretty old or fairly latest? Is any activity such as continuous process
improvement in place?
Step 2:
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ROAD MAP TO TOTAL QUALITY MANAGEMENT
Step 3:
6. Find out the constraints and make an action plan to overcome them.
Step 4:
i. Customer satisfaction
ii. Employee involvement
iii. Continuous improvements in quality and processes
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ROAD MAP TO TOTAL QUALITY MANAGEMENT
i. Customer satisfaction
ii. Leadership
iii. Quality policy
iv. Organizational structure
v. Employee involvement
vi. Quality cost
vii.Supplier selection and development
viii.Recognition and reward
Step 5:
2. See that the top management is fully involved. Training to top is also a
must.
a. Engineering
b. Education
c. Enforcement
d. Enthusiasm
e. Evaluation
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STEP 6:
3. All the elements have to be included, the activities which can run
parallel manner as well as series manner, and there should not be any
loss of time.
5. Periodic auditing
Step 7:
Orientation:
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Empowerment
Alignment:
1. Once TQM has started, and is moving ahead, you need pulling power to
direct the activity.
2. To synchronize and align to TQM and goals and practices of the firm.
6. Training
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8. Quality manuals.
10.Development of a database.
11.Implementation of 5S strategy
(c) All the suggestions for quality improvement should come only from
the individual concerned and it should reach the top officials at the
quickest time possible.
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16.Re-engineering
19.Celebration
The first eight most common were determined by Robert J. Masters after
an extensive literature search and the last obstacle added by the authors.
They are given below.
Activity A
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Activity B
1. How will you implement TQM in your own house? Consider that you are
running a cottage industry such as making spices etc in your house.
Consider your parents and brothers/sisters/cousins as your internal
customers and buyers of your product as external customers.
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16.6 Summary
TQM road map is a tool which helps in systematic approach. As a road map
of a country or a state needs a starting place and a destination, the TQM
road map requires basic information about the present status of the
company analogous to the starting point in the country road map. The end
result or the destination is the goal of the company that has to be achieved
within the given time period. Introduction of TQM in an organization
requires a meticulous plan.
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a. Operation
b. Zero
c. Opportunity
d. Orientation
a. Operation
b. Orientation
c. Opportunity
d. Order
3. Gantt means:
a. Central
b. Critical
c. Chronology
d. Criteria
5. For increasing productivity from 30 to 60 parts per day, one has to:
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REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture
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INNOVATIVE METHODS FOR TQM
Chapter 17
INNOVATIVE METHODS FOR TQM
Objectives
Structure
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INNOVATIVE METHODS FOR TQM
The Acceptable Quality Level., (AQL) can be used for either defective
units, i.e. the units having one or more defects, or the individual defects
itself.
The agreed AQL is defined as the lowest quality level which can be
considered as acceptable. It can be expressed in terms of per cent
defectives or defects per 100 units. The following are the methods of
sampling:
Case Example 1
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Accept Reject
I Plan G 32 2 3
II Plan J 80 5 6
The customer will be inspecting the injection nozzles so that defective units
are to be inspected. The nozzle is either good or bad. The normal
inspection level has been selected. The batch size is 1000 nozzles
manufactured in a continuous process.
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INNOVATIVE METHODS FOR TQM
c 0 0 0 0
c 0 0 0 0 0
n 45 55 70 90 110 130
c 0 0 0 0 0 0
n 20 24 30 40 50 60
c 0 0 0 0 0 0
n 14 14 14 14 14 14
c 0 0 0 0 0 0
P’10 15 15 15 15 15 15
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n 6 6 6 6 6 6
c 0 0 0 0 0 0
P’10 32 32 32 32 32 32
n 3 3 3 3 3 3
c 0 0 0 0 0 0
P’10 54 54 54 54 54 54
D max 10 10 10 10 10 10
n = Sample
c = Acceptance Number
In the above Sampling Plan, let us discuss for example, Plan EOX.
1. In this Plan, (n=) 14 components are inspected from the lot of any size
up to 5000.
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3. If in this way, we accept the lot (P’90), there is 90% probability that the
lot might have 0.8% defectives.
4. If in this way, we accept the lot (P’10), there is 10% probability that the
lot might have 15% defectives.
6. We must select one of the above plans depending upon the risk we want
to take in accepting the lot, and also depending upon the AQL.
Case Example 2
It was then decided to import the O ring from Sweden. The price of the
imported O ring was ` 60. The O ring once fitted lasted for three months.
Imported O Ring:
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It is interesting that the imported O ring though very expensive, turned out
to be having same cost of consumption per month, thanks to the long life
of the ring.
But look at the major benefit given by this imported O ring. The lost time
of 2 hours per machine per week was saved and the targeted production
was achieved.
Many times, in order to save the defects due to human errors making, it
necessary for us to rework 20% to 25% components, it is necessary to
invest into an expensive machine. However, if it really produces defect-free
components, the cost of the machine can be recovered within one or two
years.
The Policy of the Corporate Office is, let us say, to delight the customer.
Now, this policy has to be made successful in every department of the
company equally well.
Packing and Delivery section: To deliver the goods in time and the
quality of transportation should be so good that there will be no transit
damages.
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Steps:
Case Example 3
Figure 17.1
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In the above diagram, we can see that the Car Brand 1 is in the upper right
position, which denotes high comfort level and high running cost/cost of
maintenance.
Car Brand 2 and 3 are in the lower right position, which denotes high
comfort level and low running cost/cost of maintenance.
Car Brand 4, 5 and 6 are in the lower left position, which denotes low
comfort level and low running cost/cost of maintenance.
Conclusion
1. Brands 2 and 3 having high comfort level as well as low running as well
as maintenance cost and hence customers will prefer to buy these cars.
Case Example 4
In the following example, six eggs are kept in a basket. Six people take
one egg each. One egg is left in the basket. One could say that it is
impossible. But lateral thinking says it is possible.
This is because after five people take one egg each, one lady takes the last
egg which is still in the basket.
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INNOVATIVE METHODS FOR TQM
! !
Figure 17.2
While solving the problems we must think laterally, and think out of the
box.
Case Example 5
In the following diagram, six points are plotted which have to be joined by
using four straight lines without lifting our hand. Initially, it looks
impossible. However, when we go out of the box, as shown by the arrows,
then only we can solve this problem.
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INNOVATIVE METHODS FOR TQM
! !
Figure 17.3
The affinity diagram is a business tool used to organize ideas and data.
The tool is commonly used within project management and allows large
numbers of ideas stemming from brainstorming to be sorted into groups,
based on their natural relationships, for review and analysis. People have
been grouping data into groups based on natural relationships for
thousands of years; however the term affinity diagram was devised by Jiro
Kawakita in the 1960s and is sometimes referred to as the KJ Method.
Process
Once the cards have been sorted into groups, the team may sort large
clusters into subgroups for easier management and analysis. Once
completed, the affinity diagram may be used to create a cause and
effect diagram.
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In many cases, the best results tend to be achieved when the activity is
completed by a cross-functional team. The process requires becoming
deeply immersed in the data, which has benefits beyond the tangible
deliverables.
Figure 17.4
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INNOVATIVE METHODS FOR TQM
5. Try to set themes for ideas and change the themes regularly.
6. Ensure that ideas are acknowledged quickly and the person generating
the idea is told whether it is to be implemented and if not why not.
Table 17.4
P.K. Shinde I I 2
S.T. Chavan I I I 3
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Table 17.5
8.99 IIII I I I 8
9.02 IIII 5
Component search: At least one good and one bad unit are available. The
units can be dismantled.
1. The good and bad units are dismantled and then re-assembled. If there
is no problem in reassembling, proof is provided that the assembly
process does not affect the problem. Compare before and after
assembling the units.
3. The components which may be causing failure are installed in the GOOD
unit so that the cause of failure can be established.
Paired comparison: Several good and several bad units are available.
They do not necessarily have to be capable of being dismantled without
destroying them.
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Example:
The cylinder rivets from a supplier result in poor riveting.
Table 17.6
Cusum Charts are particularly useful for plotting daily or weekly averages.
The workers were making only 1155 pieces and so the efficiency was 110%
only. So, the industrial engineering department along with process planning
department made an improvement in material handling and loading
system. The company decided to use a cusum to monitor individual
productivity to assess how effective the new improved system was. The
target value chosen from historic data for each worker’s productivity was
120%. The data collected and cusum values are given in the following
Table 17.7.
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3 112 -8 -29
4 120 0 -29
5 112 -8 -37
6 123 3 -34
7 123 3 -31
8 115 -5 -36
9 125 5 -31
10 121 1 -30
11 126 6 -24
12 125 5 -19
13 123 3 -16
14 125 5 -11
15 125 5 -6
16 125 5 -1
17 126 6 5
18 123 3 8
19 127 7 15
20 123 3 18
21 124 4 22
22 125 5 27
23 128 8 35
24 129 9 44
25 125 5 49
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26 127 7 56
The cusum chart clearly shows a change following week 9 when the
improved system was implemented. From week 1 to week 8, the
productivity value was approximately between 109% to 115% only
sometime being more than that. From week 9, the slope of the cusum
changed, corresponding to a new value of more than 120%. So, it can be
said that the new system was effective.
Figure 17.5
Table 17.8
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INNOVATIVE METHODS FOR TQM
metallography done 25 0 4 5 15
2 Dimensional
3 Visual Ok
4 Form errors
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INNOVATIVE METHODS FOR TQM
5 metallograp Ok
hy
Activity A
1. You are in a mall and are purchasing rice. Inspect the rice by AQL
sampling information (BS 6001) Plan K. Defect criteria is broken grain
and AQL level is 2.5%. Tabulate your results.
Accept Reject
I Plan G 32 2 3
II Plan J 80 5 6
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Activity B
1. In the above example, check 250 grains of rice 100% and compare the
results with those of activity A.
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17.13 Summary
These innovative methods will give an insight into better preparation for
TQM.
1. You have to decide whether to buy a new car or to retain your five-year
old car which is in excellent condition. Explain Cost Benefit Analysis in
both the cases.
3. You have ten pens of same brand say TRIMAX. Two of these pens are
old, defective and also not working. Make a good bad comparison. Will
you throw these pens away or retain them?
a. Cusums
b. CBA
c. AQL
d. Sampling plans
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INNOVATIVE METHODS FOR TQM
a. Best
b. Good
c. Worst
d. Concessional
a. Check sheets
b. FMEA
c. CBA
d. Matrix
a. Brainstorming
b. Lateral thinking
c. Vertical thinking
d. Horizontal thinking
a. Brainstorming
b. Cause and effect diagram
c. Fault tree analysis
d. Affinity diagram
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INNOVATIVE METHODS FOR TQM
The successful companies who have accomplished TQM are eligible for
awards and every organization must strive to get these awards.
The following chapter gives you information about two of the awards.
Even if you do not want to get the awards, the guidelines will let you know
whether you are on the right track of implementation of TQM.
These are international guidelines and will surely show you the way if you
are in any kind of difficulty in implementation of TQM.
Go through this chapter and know for yourselves where you stand!!
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REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture
! !367
QUALITY AWARDS
Chapter 18
QUALITY AWARDS
Objectives
Structure
18.1 Preamble
18.2 Road Map to Deming Prize
18.3 Deming Prize Winners in India
18.4 Malcolm Baldrige National Quality Award
18.5 Road Map to Malcolm Baldrige National Quality Award
18.6 Which Organizations Have Received the Award?
18.7 When Were the Education and Health Care Categories Established?
18.8 Activities for the Students
18.9 Summary
18.10 Self Assessment Questions
18.11 Multiple Choice Questions
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QUALITY AWARDS
18.1 Preamble
W.E. Deming, one of the foremost experts of quality control in the United
States, was invited to Japan Union of Scientists and Engineers (JUSE) in
July 1950. He gave lectures about his eight day course on Quality Control
at the auditorium of the Japan Medical Association in Tokyo. The transcript
of the lectures was distributed at a charge. Deming donated his royalties to
JUSE. In appreciation, M.D. of JUSE proposed using the donation to fund a
prize to commemorate Deming’s contribution and friendship and to
promote the continual developmental work in Japan. The JUSE Board of
Directors unanimously made a resolution to establish the Deming Prize.
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QUALITY AWARDS
The Deming Prize check list focuses both on process and results. There are
at least three categories that look at the process: analysis, standardization
and control.
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QUALITY AWARDS
1. Policy
5. Analysis
6. Standardization
7. Control
8. Quality assurance
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QUALITY AWARDS
9. Measurement of results
a. Long-term plans
b. Measures for overcoming deviations
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QUALITY AWARDS
6. The Baldrige National Quality Program and the associated award were
established by the Malcolm Baldrige National Quality Improvement Act
of 1987 (Public Law 100-107). The program and award were named
for Malcolm Baldrige, who served as United States Secretary of
Commerce during the Reagan administration.
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QUALITY AWARDS
a. customer satisfaction,
b. financial and marketplace performance,
c. human resources,
d. supplier and partner performance, and
e. operational performance
f. The category also examines how the organization performs
relative to competitors.
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QUALITY AWARDS
1989: Milliken & Co., and Xerox Corp. Business Products and Systems
1988: Motorola Inc., Commercial Nuclear Fuel Division of Westinghouse
Electric Corp. and Globe Metallurgical Inc.
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QUALITY AWARDS
Activity A
1. Consider that you are working in a multinational company and you are
the in-charge of preparation for Deming Prize. Make your road map for
this activity in the form of a flow chart.
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Activity B
1. Make a research paper about role of the organization about customer
satisfaction in case of preparation for Deming Award.
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18.9 Summary
The criteria for winning the above-mentioned awards give you world-class
guidance about preparation for TQM in your organization. Every employee
must master these criteria.
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QUALITY AWARDS
a. People
b. Results
c. Factory
d. Customer
a. America
b. England
c. India
d. Japan
a. Robert Bosch
b. Kirloskar Electric
c. Rane Madras
d. Tata Motors
a. Rane Madras
b. Daimler Benz
c. Motorola
d. JUSE
a. UN Secretary General
b. US Secretary of Commerce
c. Minister of States
d. A Senator
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QUALITY AWARDS
REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture
! !380
LATEST INFORMATION ON TQM
Chapter 19
LATEST INFORMATION ON TQM
Objectives
Structure
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LATEST INFORMATION ON TQM
I believe it is this altruistic (that means concern for the happiness and
welfare of other people rather than yourself) aspect of Sustainability –
coupled with its inherent operational and organizational benefits – that
business, academia and government have been embracing the growing
global awareness that sustainability is good business. It is about good
business.
Going Green can be greener to the bottom line – if you use the lens of
sustainability to uncover long-hidden opportunities within your business
and its supply chain.
Think back to the work of W. Edwards Deming, one of the fathers of quality
improvement in business. He made dramatic strides in the 1950s and
1960s within Japanese industry before turning his talents to companies like
Ford in the early 1980s and helping provide a process-driven foundation
that helped turn around woefully lagging companies.
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LATEST INFORMATION ON TQM
increase and costs decline over time. I’ve seen it succinctly stated in the
following formula: Quality = Results divided by Costs.
Ironically, Deming also found that when people and organizations focus
primarily on costs, costs tend to rise while quality declines over time. Odd,
isn’t it? It is same as the case of the muscle-bound baseball player who
focuses so intently on hitting the ball that he squeezes the bat with all his
might … and then is consistently unable to make contact with the ball.
The good news in all of this, then, is that the true ROI of a well-executed
Sustainability/Quality initiative has compounded since Deming’s initial
work. The potential returns are enhanced today by our ability to measure
the results – as defined by his formula – and those results have expanded
to include elements not even considered in Deming’s original efforts.
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!
L-R Mr. Sanjiv Paul (VP, CS, Tata Steel Ltd.), Mr. Y.C. Deveshwar
(Chairman, ITC) and Mr. Anand Sharma (Union Minister of Commerce
and Textiles)
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The annual CII-ITC Sustainability Awards are given out to recognize and
reward excellence in economic, environmental and social performance.
They are conferred to Indian businesses that demonstrate excellent
performance in the area of Sustainable Development.
Tata Steel had already received the Sustainability Prize in the year 2006,
2007, and 2008 for Large Business Organization; and in the year 2009 and
2010 for Commendation for Significant Achievement.
Tata Steel’s CSR initiatives have been recognized with many awards. Since
2006, the company has showcased an exceptional track record of receiving
this coveted award initiated by the CII-ITC Centre of Excellence for
Sustainable Development. Recently, the Company has received the CNBC
Asia’s Corporate Social Responsibility Award at CNBC-TV 18 India Business
Leader Awards (IBLA) and the corporate social responsibility award at the
seventh edition of NDTV Profit Business Leadership Awards.
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LATEST INFORMATION ON TQM
2010. Other esteemed awards include the CSR Excellence Award 2010 by
ASSOCHAM, National CSR Committee and CSR Organizing Committee; the
Businessworld-FICCI-SEDF Corporate Social Responsibility Award 2009; the
Best Corporate Social Responsibility Practice Award at the 6th Social and
Corporate Governance Awards 2010 by the Bombay Stock Exchange.
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