TOTAL QUALITY MANAGEMENT

UNIT 1 AND UNIT 2

QUALITY – DEFINITION

It is the degree to which a set of inherent characteristics fulfills requirements

Q = P/E where P= Performance and E = Expectation

TQM – DEFINITION

 It is defined as both a philosophy and a set of guiding principles that represent the foundation of
a continuously improving organization
 It is the application of Quantitative methods and human resources to improve all the processes
within an organization and exceed customer needs now and in future.

DIMENSIONS OF QUALITY :

Dimensions of product quality

DIMENSIONS OF SERVICE QUALITY

 TANGIBLES-Appearance of physical facilities, equipment, personnel, and communication
materials
 RELIABILITY-Ability to perform the promised service dependably and accurately
 RESPONSIVENESS-Willingness to help customers and provide prompt service
 ASSURANCE-Knowledge and courtesy of employees and their ability to convey trust and
confidence
 EMPATHY-Caring, individualized attention the firm provides its customers

EVOLUTION OF TOTAL QUALITY:

The concept and ideas of TQM were formalized based on the foundations of the work done over
the last few centuries. The evolution of TQM starts from inspection and travels through different
stages till today’s concepts of total quality.
The following four stages can be identified in the evolution of TQM
 Inspection - based
 Quality control
 Quality Assurance
 Total Quality Management

Inspection Based:

The quality movement traces its roots back to medieval Europe, when craftsmen began organizing
themselves into unions called guilds in the late thirteenth century. During the early days of
manufacturing, an operatives work was inspected and a decision whether to accept or reject it was
made. As businesses expanded, so too did this role, and full time inspection jobs were created. This
brought about the following other problems

 Technical problems requiring specialized skills, often not possessed by production workers
occurred
 Some of the inspectors lacked training
 Inspectors were ordered to accept defective goods to increase output
 Skilled workers were promoted to other roles, leaving less skilled workers to perform
operational jobs such as manufacturing

These changes led to the birth of a separate inspection department with a chief Inspector reperting to
works manager.
 Quality Management Stages Areas of Focus Scope
Inspection Detection  Error Detection
 Rectification
 Sorting, grading, reblending
 Decision about salvage and
acceptance
Quality Control Maintaining status  Quality Standards
quo  Use of Statistical methods
 Process Performance
 Product Testing
Quality Assurance Prevention  Quality System (ISO 9000)
 Quality Costing
 Quality Planning and policies
 Problem Solving
 Quality Design
Total Quality Management Quality as a  Quality Strategy
Strategy  Customers, employees and suppliers
involvement
 Involve all operations
 Empowerment and team work

Quality Control:

The quality control department evolved with an intention to undertake actions and measures to control
quality in a desired manner. In the 1920’s, statistical theory began to be applied effectively to quality
control and in 1924, Shewart made the first sketch of a modern control chart. His work was later
developed by Deming.

However, there was little use of these techniques in manufacturing companies until the late 1940’s. At
that time Japan’s Industrial system had been virtually destroyed and it had gained a reputation as a
producer of cheap, imitation products and an illiterate workforce. The Japanese recognized these
problems and set about solving them with the help of some notable quality gurus – Juran, Deming and
Feigenbaum.

In the early 1950s, quality management practices developed rapidly in Japanese plants and became a
major theme in Japanese management philosophy. By 1960, quality control and management had
become a national preoccupation. Quality control, however, is not an independent act; rather, it works
in accordance with the guidelines set by quality assurance. The whole idea is to see whether planned
quality is actually being achieved. Thus , quality assurance is more comprehensive and quality control is
a part of it.

Quality Assurance:

The International Organization for Standardization (ISO) 9000has become the internationally recognized
standard for quality systems. It comprises of a number of standards that specify the requirements for
Documentation , implementation and maintenance of quality system. These standards were published
for the for the first time in 1987. The aim was to effectively document the requirements of the quality
management systems, which had to be implemented to attain customer satisfaction.

Total Quality Management:

The birth of total quality in the United States came as a direct response to the quality revolution in Japan
following World war II. The Japanese welcomed the inputs of Americans, Joseph M Juran and W.
Edwards Deming, and rather than concentrate on inspection, focused on improving all organization
processes through the people who used them.

TQM is now a part of a much wider concept that addresses overall organizational performance and
recognizes the importance of processes. There is also extensive research evidence that demonstrates
the benefits from this approach.

COST OF QUALITY

It is defined as the cost of those activities which an organization has incurred above the minimum costs
required to do the job well.

 This is the amount of money a company loses because its products or services failed to secure
customer satisfaction
 Any cost associated with correcting failure or waste comes under quality costs
 Further set of activities in which organizations attempt to prevent failures from occurring at all
also comes under quality cost
 Cost of quality is therefore , the sum of all costs a company invests into the release of a quality
product/ service.

Cost of quality has two main components – cost of conformance and cost of non conformance.

Cost of conformance is the cost of providing products or services as per the required standards. This can
be termed as a good amount spent (prevention and appraisal costs).

Cost of non – conformance refers to failure costs associated with a process not operating according to
the requirements. This can be termed as the unnecessary amount spent (internal and external failure
costs)

Cost of Quality = Cost of Conformance + Cost of Non Conformance

Essentially, quality costs are defined as the total costs incurred by

i. Investing in the prevention of non conformance to requirements

ii. Appraisal of a product or service for conformance to requirement and
iii. Failure to meet requirements

1. Prevention costs: These are the costs associated with trying to prevent failure and arise from efforts
to keep defects at bay. Prevention activities lead to the reduction of failure and appraisal costs. The
motto is prevention rather than appraisal. The activities associated with prevention costs are training
and education, market research, quality planning, quality improvement projects, supplier evaluation,
design review, contract review and preventive maintenance.

2. Appraisal Costs: These are costs to determine conformance with quality standards and performance
requirements. These costs arise from detecting defects. Appraisal Activities are associated with
discovery of defects rather than prevention. The activities associated with appraisal costs are inspection,
checking, auditing, surveying, inquiries, prototype testing, vendor surveillance and calibration of
measuring and test equipment.

3. Failure Costs: The costs resulting from products or services not conforming to requirements or
customer/ user needs are termed as failure costs and can be divided into categories such as internal and
external failure costs.

3a) Internal Failure costs: It arises when results of work fail to reach designated quality
standards and are detected before transfer to the customer takes place. Activities associated with
internal failure costs are scrap, rework, downgrading, design changes and corrective action.

3b) External Failure Costs: These costs occur when the product or service is offered to the
customer and found to be defective. External failure costs can be higher than internal failure costs
because the stakes are much higher. These may also influence the company’s reputation leading to a
loss in customers. External failure costs occur when the product fails to reach designated quality
standards and is not detected until transfer to the customers. Activities associated with external failure
costs are returned products, product recalls, rejected services, unhappy customers, warranty claims,
processing/ investigation of customer complaints

Quality Cost

Conformance Non
Conformance

Prevention Internal External

Appraisal
Failure Failure

TOTAL QUALITY COSTS

The optimum quality cost model shows the following three curves:

1. Failure Costs: These equal zero when the product is 100 percent perfect, and the costs rise to infinity
when the product is 100 percent good, and fall to infinity when the product is 100 percent defective
2. Costs of appraisal plus prevention: These costs are zero when the product is 100 percent defective
and rise as perfection is achieved.

3. Total quality cost curve: The sum of curves 1 and 2. It represents the total cost of quality per good
unit of the product.

Zone of
Zone of Zone of high
improvement
indifference
appraisal cost
projects
Quality of
100% defective conformance Total quality cost curve
100% good

Costs Prevention and

appraisal cost

Failure Cost

ECL Conformance level

The total quality cost curve divides into three zones.

Zone of Improvement projects:

This is the left hand portion of the total quality cost curve. Failure costs constitute more than 70 percent
of the total quality costs while prevention cots are less than 10 percent of the total. In such cases, there
are opportunities for reducing total quality costs by improving the quality of conformance. The approach
is to identify specific improvement projects and pursue them to improve the conformance, thereby
reducing the costs of poor quality, especially failure costs.

Zone of High Appraisal Costs:

This is the right hand portion of the total quality cost curve. It is usually characterized by the fact that
appraisal costs exceed failure costs. In such cases there are also opportunities to reduce costs.

Zone of Indifference:

This is the central area of the total quality cost curve. In this zone, the failure costs are usually about half
the quality costs while prevention costs are about 1- percent of the quality costs. In the indifference
zone, the optimum has been reached in terms of worthwhile quality improvement projects to be
pursued. Continuous improvement is always desirable, but the projects compete against other
worthwhile projects, which have not yet attained optimum levels.

QUALITY PLANNING TOOLS

OLD MANAGEMENT AND PLANNING TOOLS

1.PARETO CHART

A pareto chart is a special bar graph, the lengths of which represent frequency or cost (time or money)
and are arranged with the longest bars on the left and the shortest to the right. Thus the chart visually
predicts the relative importance of problems or conditions.

The principle of pareto chart is 80- 20 rule, which means that 80 percent of the problems usually occur
from 20 percent of the causes.

Steps in constructing the pareto chart

 List the activities or causes in a table and their frequency of occurrence

 Place these in descending order of magnitude in table
 Calculate the total for the whole list
 Calculate the percentage of the total that each cause represents
 Add a cumulative percentage column to the table
 Draw a pareto char plotting the causes on the x axis and the cumulative percentage on the y axis
 On the same char, plot a bar graph with causes on the x axis and the percentage frequency on
the y axis.
 Analyse the diagram

Applications of the Pareto Chart

 Calculating the relative frequency of categories of occurrences

 Identify which 20 percent of sources caused 80 percent of the errors
 Relative costs incurred in producing different types of defectives
 Determining which category should be the focus of improvement efforts

Example: You are a part of the executive guest house where in house training programs are conducted.
You have received complaints from executives who have attended the program this year. The following
are the datas relating to the complaints from executives depicted in the table

Category Number of Complaints Percentage Cumulative Percentage

Cockroaches 962 43.2 43.2
Room temperature 505 22.7 65.9
Lighting 350 15.7 81.6
Storage space 127 5.7 87.3
Stereo Noise 97 4.4 91.7
Television Broadcasting 83 3.7 95.4
Water 54 2.4 97.8
Towels 32 1.4 99.2
 Furniture 15 0.8 100
Total 2225

1200
Number of Complaints

1000
800
600
400
200
0

Category

2. CAUSE AND EFFECT DIAGRAM

The cause and effect diagram , also termed as the fishbone diagram or the Ishikawa diagram, was the
brain child of Kaoru Ishikawa. The fishbone diagram identifies many possible causes for a problem or an
effect. This diagram is used to explore all the potential or real causes (or inputs) that result in a single
effect (or output). The causes are arranged according to their levels of importance or detail, resulting in
a depiction of relationships and hierarchy of events. This diagram can also be used to search for root
causes, identify area where there may be problems and compare the relative importance of different
causes.

Steps in Constructing Cause and Effect Diagram

1. Write the issue ( problem) on the centre right side of the cause and effect diagram
2. Identify the major cause categories and write them in the four boxes on the cause and effect
diagram. The causes may be summarized under various categories
3. The potential causes of the problem need to be brainstormed. Decide where to place the
possible causes on the cause and effect diagram.
4. Review each major category. Circle the most likely causes on the diagram
5. Review the causes that are circled and question “Why?”
6. Arrive at an agreement on the most probable causes.
3.CHECK SHEET

A check sheet is also termed as defect concentration diagrams. It is a structured form prepared for
collecting and analyzing data. The function of the check sheet is to present information in an efficient,
graphical format. This can be accomplished with a simple listing of items.

Steps to create a Check Sheet:

1.Clarify the measurement objectives. Raise questions such as “What is the problem?”, Why should data
be collected, Who will use the information being collected, Who will collect the data?

2. Prepare a form for collecting data. Determine the specific things that will be measured and write this
down on the left side of the check sheet.

3. Collect the data for the items being measured. Record each occurrence directly on the check sheet as
it happens.

4. Tally the data by totaling the number of occurrences for each category being measured.

Applications of a Check Sheet:

 To distinguish between facts and opinions

 To gather data about how often a problem occurs
 To gather data about the type of problems that occur
  When data can be observed and collected repeatedly by the same person or at the same
location
 When collecting data on the frequency or patterns of events, problems, defects, defect location,
defect causes etc.
 When collecting data from a production process.

Eg: The figure below shows a check sheet used to collect data on telephone interruptions. The
tick marks were added as data was collected over several weeks.

4.HISTOGRAM:

A histogram is a graphical representation of the distribution of data, which is an estimate of the

probability distribution of a continuous variable, usually in bar graph form, and was first introduced by
Karl Pearson in 1891.

The first step in creating a histogram is to divide the entire value range into a series of intervals called
"bins" and then to "drop" the individual values into the bins that they belong to. The width of the bin is
determined by the range and may or may not be equal to the other bins. If the bins are of equal width,
then the height or vertical axis of the bar determines the frequency of the occurrence for that set, but if
the bins are not of equal width, then the area of the bar or rectangle represents the frequency of
occurrence while the vertical axis represents the density. In both cases, all the bars in the histogram
touch to indicate that the variable or data is continuous.

This can be used to visualize data or phenomena with both a contiguous factor and an occurrence
factor. For example, a histogram can be used to visualize the commute time of people going to work
with the horizontal axis representing time, so the bins are divided according to time, while the vertical
axis represents the number of people that fall under that specific travel time.

APPLICATIONS:

 When the data are numerical and you want to see the shape of the distribution, especially to
determine whether the output of a process is distributed normally
 To analyse whether a process can meet the customer’s requirements
 To analyse what the output from a suppliers process looks like
 When seeing whether a process change has occurred from one time period to another
 To determine whether the outputs of two or more processes are different
 When you wish to communicate the distribution of data quickly and easily to others.
Eg: The following represents the marks obtained by students of a particular class

36 25 38 46 55 68 72 55 36 38 67 45 22 48 91 46 52 6 1 58 55

Marks

Range Frequency Marks Included

20-30 2 25,22
30-40 4 36,38,36,38
40-50 4 46,45,48,46
50-60 5 55,55,52,58,55
60-70 3 68,67,61
70-80 1 72
80-90 0 -
90-100 1 91

From the above histogram it is evident that maximum students fall in the category of 50 – 60 and
minimum in the category of 90 – 100 with frequency 1

5.SCATTER DIAGRAM:

It is a quality tool used to display the type and degree of relationship between variables. If the variables
are correlated, the points will fall along a line or curve. The better the correlation, the tighter the points
will hug the line. The scatter diagram also shows the pattern of relationships between two variables.

Steps in Constructing a Scatter Diagram:

 Collect data on causes and effects for variables

 Draw the causes on the X Axis
 Draw the causes on the Y Axis
  Plot the data pairs on the diagram by placing a dot at the intersection of the X and Y co
ordinates for each data pair
 Interpret the scatter diagram for direction and strength.

Applications:

 They are useful in the case when the dependent variable has multiple values for each value of
the independent variable
 When determining whether two effects that appear to be related can both occur with the same
cause

CONTROL CHARTS

Control chart is a fundamental tool of statistical process control, as it indicates the range of variability
that is built into a system. Thus it helps to determine whether a process is operating consistently or is
there a special cause to cause variations in the process.

Usually variations are of two types – natural and Assignable variations

Natural Variations:

Natural variations affect almost every production process and are to be expected as inherent in the
process. These variations are due to common causes, which are purely random . These causes are
unavoidable in the current processes. As long as the output measurements remain within specified
limits, the process is said to be in control and natural variations are tolerated.

Assignable Variations:

Assignable variations can be traced to a specific reason known as assignable cause variation. Factors
such as machine or tool wear and tear, maladjusted equipment, a fatigued or untrained worker or new
batches of raw material are potential sources of variation

All Control Charts have the following three basic components:

 A central line, usually the mathematical average of all the samples plotted
 Upper and lower statistical control limits that define the constraints of common cause variations
 Performance data plotted over time.
When the data points fall outside the upper and lower control limit, it represents variationsdue to
special causes that can be found and eliminated.

Steps in the Construction of Control Charts

Step 1 : Draw the X axis . This represents the time order of sub groups

Step 2 : Draw they Y axis. This represents the measured value of the quality characteristics under
consideration when using ariable charts

Step 3: Draw the central line on the chart. It represents the process average value of the quality
characteristics.

Step 4: Draw two other horizontal line called the upper control limit and lower control limit typically
appearing at + or – 3 Sigma from the process average

Step 5: Analysis and Interpretation. As long as the points fall within the control limits, the process is
assumed to be in control and no action is necessary. In case the points are outside the control limits,
there is evidence that the process is out of control and corrective action is required.

TYPES OF CONTROL CHARTS

Control charts are broadly classified into two types

1. Control Charts for variables

 Mean chart
 Range Chart
 Standard deviation chart
2. Control chart for attributes
 P chart – designed to control the percentage of defectives per sample
 Np chart
 C chart
 U chart

Applications:

 To establish a state of statistical control

 To monitor a process and signal when the process goes out of control
 To determine process capability
 Finding and correcting problems as they occur
 To determine whether the process is stable
 To analyse the patterns of process variations from special causes

GRAPHS:

Graphs are used depending on the shape desired and the purpose of analysis. Bar graphs compare
values via parallel bars, while line graphs are used to illustrate variations over a period of time. Circle
graphs indicate the categorical breakdown of values and radar charts assist in the analysis of previously
evaluated items.
THE SEVEN NEW MANAGEMENT AND PLANNING TOOLS:

1. AFFINITY DIAGRAM:

The Affinity diagram, created in the 1960’s by Japanese anthropologist Jiro Kawakita, is also known as
the KJ Method. The affinity diagram organizes a large number of ideas, opinions, issues into their natural
relationships. This method taps a team’s creativity and intuition.

Steps for creating an Affinity Diagram:

1. Gather a team; make sure the right people are on the team
2. Discuss and select a specific problem area eg: lack of productivity
3. Conduct a brainstorming session or team meeting
4. Have each member jot down as many contributing factors to the selected problem as possible
on a post it note
5. Rapidly group ideas that seem to belong to each other
6. It is not important to define why they belong to each other .
7. Clarify ideas that are not clear.
8. Copy an idea into more than one affinity set, if appropriate
9. Look for small sets.
10. Do large sets need to be broken down more precisely.
11. When most of the ideas have been sorted, you can start to enter titles for each affinity set
12. Next, analyse the different groupings and decide which things to focus on in the remaining tools.

Human Resource Lack of standard Workplace culture Resources and tools

Issues processes and
measurement
Too much turnover of No standard systems Not enough Not enough phone
employees management support lines
Untrained staff No measurement of Staff feel
what is and what isn’t unappreciated
good service
Staff aren’t Staff morale is low
compensated enough

2.RELATIONS DIAGRAM

It is also termed as inter relations diagram or a network diagram. The relations diagram depicts
cause and effect relationships. The process of creating a relations diagram helps a group analyze the
natural links between different aspects of a complex situation.

Steps in constructing relations diagram:

1. State the issue or problem clearly. Write it on a card and stick it in the center of the board.
 2. Determine the factors related to the issue. Most frequently, these will be the headers from a
previously completed affinity diagram. Place cards containing these factors in a circle around
the issue card.
3. Determine if cause and effect relationships exist between any of the cards. If so, draw an arrow
from the “cause” to the “effect” card.
4. Analyse the relationships. Cards that have most arrows going from them tend to be root causes.
Cards that have the most arrows going to them are root effects.

Uses of Relations Diagram:

1. Identify key drivers issues from a list of important issues

2. Identify the most important problem for resolution when the number of problems exceeds the
resources available to solve all of them.
3. Identify the root cause of existing problems.
4. Identify key factors needed to make a decision when there is insufficient information available
to make a data driven decision.

Lack of
Lack of quality
customer focus
strategy

Responsibility
not clear
Inadequate
training time No standard
TQM Method

Lack of knowledge
of quality
improvement

Lack of
communication of
information

Lack of TQM
commitment by
top Managers
3.TREE DIAGRAM OR SYSTEMATIC DIAGRAM

The tree diagram, is a technique for mapping out a full range of paths and tasks that need to be
formulated in order to achieve a primary goal and sub related goals. It serves the purpose of developing
the essential means to achieve an objective or goal. Systematic diagrams can be divided into two types

 The constituent component analysis diagram breaks down the main subject into its basics
elements and depicts their relationships to the objectives and means of obtaining those
objectives.
 The plan development diagram systematically shows the means and procedures necessary to
successfully implement a given plan.

The main advantages of tree diagrams are as follows

 It enables to develop means of achieving an objective systematically and logically.

 They facilitate agreement among group members. They are extremely convincing since they
identify and clearly display the strategies for solving a problem.

Uses of tree diagram

 To develop a sequence of steps that form the solution to a problem

 When serious consequences can occur as the result of missing a key step in implementing the
solution to a problem.

Example

Satisfied
Customers

Pleasant
Good food Good service
surroundings

Quality Prompt Professional Good table Pleasing

Good recipe
ingredients attention waiter presentation decor
4. MATRIX DIAGRAM

The matrix diagram is also termed as a matrix or a matrix chart. It shows the relationship between two,
three or four groups of information. It can also provide information about the relationship such as its
strength and the roles played by various individuals or measurements.

A matrix diagram consists of a number of rows and columns whose intersections are checked to find out
the nature and strength of the problem. This helps us to arrive at key ideas and analyse the relationship
or its absence at the intersection, thereby assisting in finding an effective way of pursuing the problem
solving method.

Characteristics Apple Samsung Nokia

Battery Moderate Weak Strong
Camera Strong Moderate Weak
Design Strong Moderate Weak
Storage(External) Weak Strong Moderate
Style Strong Moderate Weak

5. ARROW DIAGRAM

This is also termed as network diagram, activity chart, node diagram and critical path method chart.

The arrow diagram shows the required order of tasks in a project or process, the best schedule for the
entire project and potential scheduling and resource problems and their solutions. The arrow diagram
lets you calculate the “critical path” of the project.

Steps in constructing an arrow diagram:

1. Select a team that is knowledgeable about the project, its tasks and subtasks.
2. Record all the tasks and sub tasks necessary for the completion of the project.
3. Sequence the tasks
4. Assign the time duration for each task
5. Calculate the shortest possible implementation time schedule using the critical path method
6. Calculate the earliest start and finish time for each task
7. Locate tasks with extra time and calculate total slack
8. Update the schedule as the project is being completed.
Applications of Arrow Diagrams

 To understand and manage complete project or task

 To explain the project status to others
 Implement plans for new product development and its follow up
 Develop product improvement plans and follow up activities.

Eg Gantt Chart

1 2 3 4 5 6 7 8 9

Task 1

Task 2

Task 3

Task 4

Task 5

Task 6

6. PROCESS DECISION PROGRAM CHART:

The process decision program chart is a very useful and powerful method to overcome a problem or
achieve a goal that is not familiar. All the conceivable events or contingencies that can occur in the
implementation stage can be mapped out using PDPC

Steps in Constructing a PDPC Chart:

 Select a team that is familiar with the process and possible contingencies. Typically, this will be a
group that has been close to the effort or a similar effort
 Determine the flow of the activities of the plan and place them on a flow char or sequence
 Construct a tree diagram, placing prerequisite activities in a time sequence. This can be done
either using a horizontal or vertical format
 At each step, ask, “What would go wrong here?” and place that contingency on the chart
 Determine possible explanations/solutions to each problem identified above and place the
solution on the chart.
 Order request for Computer
from a College college

Appointment date
Could not fix an
confirmed
appointment

Meet College Buyer

Order lost

Describe price,
product and service

Price not
competitive

Price Competitive
Negotiate Justify the price

Price not agreed Price agreed

Order Secure

Order Lost
FRAMEWORKS OF QUALITY/ QUALITY FRAMEWORKS

SIX SIGMA

The two most common approaches for six sigma are

1.define, Measure, Analyze, Improve and Control (DMAIC)

2. Define, Measure, Analyze, Design and Verify (DMADV)

DMAIC can be described as follows

D Define – Defines the goal of the improvement activity. Defines the priorities of the customers with
respect to quality. In this phase, those attributes of the product/service that are considered most
important by the customers in evaluating the quality of the product are identified. The customers
perception about quality attributes are updated from time to time by conducting customer surveys.

M Measure – Measure the Existing system. Establishes valid and reliable metrics to help monitor
progress towards the goal defined in the previous step. Begin by determining the current baseline. Use
exploratory and descriptive data analysis to help you understand the data

A Analyze – Analyze the system to identify ways to eliminate the gap between the current performance
of the system or process and the desired goal. Apply statistical tools to guide the analysis.

I Improve – Improve the system . Be creative in finding new ways to do things better, cheaper or faster.
Use planning and management tools to implement new approach. Use statistical tools to validate the
improvement.

C Control – Control the new system. Institutionalize the improved system by modifying compensation
and incentive systems, policies, procedures, budgets, operating instructions and other management
systems. You may use ISO 9000 to ensure that the documentation is correct.

Define

Measure

Analyze

Improve

Control

DMADV – Define, Measure, Analyze, Design and Verify

DMADV is a Six Sigma framework that is focuses primarily on the development of a new service, product
or process as opposed to improving a previously existing one. This approach – Define, Measure, Analyze,
Design, Verify - is especially useful when implementing new strategies and initiatives because of its basis
in data, early identification of success and thorough analysis.

Define

The goals of the first phase are to identify the purpose of the project, process or service, to identify and
then set realistic and measurable goals as seen from the perspectives of the organization and the
stakeholder(s), to create the schedule and guidelines for the review and to identify and assess potential
risks. A clear definition of the project is established during this step, and every strategy and goal must be
aligned with the expectations of the company and the customers.

Measurement

Next comes measuring the factors that are critical to quality, or CTQs. Steps taken should include:
defining requirements and market segments, identifying the critical design parameters, designing
scorecards that will evaluate the design components more important to the quality, reassessing risk and
assessing the production process capability and product capability. Once the values for these factors are
known, then an effective approach can be taken to start the production process. It is important here to
determine which metrics are critical to the stakeholder and to translate the customer requirements into
clear project goals.

Analysis

Actions taken during this phase will include: developing design alternatives, identifying the optimal
combination of requirements to achieve value within constraints, developing conceptual designs,
evaluating then selecting the best components, then developing the best possible design. It is during this
stage that an estimate of the total life cycle cost of the design is determined. After thoroughly exploring
the different design alternatives, what is the best design option available for meeting the goals?

Design

This stage of DMADV includes both a detailed and high level design for the selected alternative. The
elements of the design are prioritized and from there a high level design is developed. Once this step is
complete, a more detailed model will be prototyped in order to identify where errors may occur and to
make necessary modifications.

Verify

In the final phase, the team validates that the design is acceptable to all stakeholders. Will the design be
effective in the real world? Several pilot and production runs will be necessary to ensure that the quality
is the highest possible. Here, expectations will be confirmed, deployment will be expanded and all
lessons learned will be documented. The Verify step also includes a plan to transition the product or
service to a routine operation and to ensure that this change is sustainable.
 Define

Measure

Analyze

Design

Verify

SIX SIGMA TOOLS/ APPLICATION OF THE SEVEN QUALITY CONTROL TOOLS IN SIX SIGMA

Tool DMAIC Application

Pareto Chart Analyse
Cause and Effect Analyse
Check sheet Measure, Analyse
Histogram Measure , analyze
Scatter Diagram Analyze, Improve
Control Charts Control
Graphs Measure, Analyse

2)TOTAL QUALITY MANAGEMENT

Principles of Total Quality Management and ISO 9000

Focus on customer

When using total quality management it is of crucial importance to remember that only customers
determine the level of quality. Whatever efforts are made with respect to training employees or
improving processes, only customers determine, for example through evaluation or satisfaction
measurement, whether your efforts have contributed to the continuous improvement of product quality
and services.

Employee involvement

Employees are an organization’s internal customers. Employee involvement in the development of

products or services of an organization largely determines the quality of these products or services.
Ensure that you have created a culture in which employees feel they are involved with the organization
and its products and services.

Process centred
 Process thinking and process handling are a fundamental part of total quality management. Processes
are the guiding principle and people support these processes based on basis objectives that are linked to
the mission, vision and strategy.

Integrated system

Following principle Process centred, it is important to have an integrated organization system that can
be modelled for example ISO 9000 or a company quality system for the understanding and handling of
the quality of the products or services of an organization.

Strategic and systematic approach

A strategic plan must embrace the integration and quality development and the development or
services of an organization.

Decision-making based on facts

Decision-making within the organization must only be based on facts and not on opinions (emotions and
personal interests). Data should support this decision-making process.

Communication

A communication strategy must be formulated in such a way that it is in line with the mission, vision and
objectives of the organization. This strategy comprises the stakeholders, the level within the
organization, the communications channels, the measurability of effectiveness, timeliness, etc.

Continuous improvement

By using the right measuring tools and innovative and creative thinking, continuous improvement
proposals will be initiated and implemented so that the organization can develop into a higher level of
quality.

3)ISO 9000

ISO 9000 standards were issued in 1987. It is designed to help organizations ensure that they meet the
needs of customers and other stakeholders while meeting the statutory and regulatory requirements
related to products and service. It is not specific to any one Industry and can be applied to organizations
of any size

ISO 9000:2000
ISO 9000:2000 refers to the ISO 9000 update released in the year 2000.

The ISO 9000:2000 revision had five goals:

1. Meet stakeholder needs

2. Be usable by all sizes of organizations
3. Be usable by all sectors
4. Be simple and clearly understood
5. Connect quality management system to business processes

ISO 9000:2000 was again updated in 2008 and 2015. ISO 9000:2015 is the most current version.

ISO 9000 SERIES

 ISO 9000 – A guide for quality Management Systems

 ISO 9001 – A set of requirements for the quality system of the supplier (only certification in the ISO
9000 family)
 ISO 9002 (Obsolete) – Specifies the product standards for the companies that manufacture
but do not design
 ISO 9003 ( Obsolete) – Specifies the standards for final inspection and testing for companies
that perform inspection and testing. – not in use
 ISO 9004 – Guidelines for developing and implementing quality system principles, structure,
auditing and review. Managing for the sustained success of an organization

Standard Title Scope

ISO 9000:2005 Quality Management systems
– fundamentals and
vocabulary
ISO 9001:2008 Quality management systems
– requirements
ISO 9004:2008 Managing for the sustained
success of an organization – a
quality management approach
Provides the fundamentals of
a quality management system
and specifies quality
management terms and
definitions
It specifies the requirements
for a quality management
system. The organization
needs to demonstrate its
capability to meet customer
requirements for products/
services. The capability must
be assessed by internal and
external parties
A process based approach is
used to direct the
improvement of an
organizations overall
performance, efficiency and
effectiveness.

4. LEAN CONCEPT:

Definition

Lean is a business philosophy that was first developed by Taiichi Ohno in the 1990s with particular focus
on manufacturing firms. It is applied in various organizations to improve their business and reduce
waste.

The core idea is to maximize value by eliminating waste. Anything that adds cost to a product but not
value is waste.
FUNDAMENTAL LEAN MANAGEMENT PRINCIPLES

 Specify what creates value from the customers perspective

 Identify all the steps in the process chain
 Make those processes flow
 Make only what is pulled by the customer
 Strive for perfection by continually removing wastes

Seven forms of Waste:

Transport: Any unnecessary movement of Work in Progress or raw materials is a form of waste. This
may cause damages to materials, and may also increase the cycle time of production and thus is a
waste.

Inventory: Purchasing and storing raw materials, and stocking Work in progress to wait for future
processes is a waste.

Motion: Unnecessary movement of machineries and movements of operators can cause wear and tear,
fatigue respectively.

Waiting: In a series of steps for processing a material if one of the steps is slow, then it accumulates
Work in Progress which is a waste.

Overproduction: Producing items that are in excess of customer demand.

Over-Processing: Providing features that are not demanded by customers, and fine tuning to levels
more than that are prescribed by customers, adds to cost of manufacturing which is a waste. Rework
and reprocessing is also a type of extra processing which is considered a waste.

Defects: Finally, the most important and prevalent type is defects. Defects are not acceptable by
customers. To avoid this, a Quality check process, rework process should be established, which adds to
cost. Therefore defects are a major form of waste.

TOOLS FOR CONTINUOUS IMPROVEMENT

1)5S

The 5S forms the foundation of Kaizen. A 5S programme is usually a part of and the key component in
establishing a visual workplace. It is both a part of Kaizen and a component of lean manufacturing. The
5S programme focuses on implementing visual order, organization, cleanliness and standardization. The
results that can be expected from a 5S programme are improved profitability, efficiency, service and
safety.

The principle underlying a 5S Programme at first appear to be simple and obvious common sense.
However many businesses ignored these basic principles until the advent of 5S programmes. 5S is the
key to total quality environment. Japanese factories are well known for their cleanliness and orderliness.
5S practice is a technique used to establish and maintain quality environment in an organization.
5S Programme

Japanese English Meaning Typical Example

1S Seiri Structurize/ Sorting  Organization To discard
 Distinguish between unnecessary
necessary and things and retain
unnecessary items only necessary
 Putting things in order things
2S Seiton Systemize/ Systematic  Keeping necessary Reducing
Arrangement things in designated searching time
places
3S Seiso Cleaning/ Sanitizing  Making things clean Getting rid of
 Keeping the workplace waste and foreign
spic and span matter. Making
cleaning a form of
inspection
4S Seiketsu Standardization  Standardization of 1S, 2S Continually and
and 3S repeatedly
maintain neatness
and cleaning
standards in the
organization
5S Shitsuke Self Discipline  To respect and cultivate Emphasis on
standards creating a
 Instilling the ability to do congenial
things the way they are workplace with
supposed to be done good habits and
discipline

Step1 (Seiri): It is about separating the things that are necessary for the job from those that are not and
keeping the number of the necessary items as low as possible and at a convenient location. Differentiate
between the necessary and the unnecessary and discard the unnecessary in the areas such as work in
process, unnecessary tools, unused machinery, defective products and documents.

Step 2 (Seiton) put things in order : Things must be kept in order so that they are ready for use when
needed. There are four steps in achieving neatness

 Analyse the status quo

 Decide where things belong
 Decide how things should be put away
 Obey the put away rules ( putting things back where they belong

Step 3 (Seiko) clean up : Keep the workplace clean. Everyone in the organization should put cleaning
into practice right from the managing director to the cleaner
Step 4 (Seiketsu) Standardization : It means continually and repeatedly maintaining neatness and
cleanliness in the organization. As such, it embraces both personal cleanliness and the cleanliness of the
environment.

Step 5 (Shitsuke) Discipline : Discipline means instilling and ability of doing things the way they are
supposed to be done. Discipline is a process of repetition and practice. The emphasis here is on creating
a workplace with good habits. Everyone should follow the procedures in workshop.

The logic behind 5S practice is that organization, neatness, cleanliness, standardization and discipline at
workplace are the basic requirements for producing high quality products and service with little or no
waste and with high productivity.

2) PDCA Cycle

Deming introduced the “Deming Cycle” , one of the crucial Quality Control tools for assuring Continuous
Improvement. The Deming cycle is also known as the Deming wheel or the PDCA (Plan-Do-Check-Action)
cycle. It is a problem solving process adopted by firms engaged in continuous improvement.

The PDCA is a series of activities pursued to achieve improvement. It begins with a study of the current
situation during which data are gathered to formulate a plan for improvement. Once this plan has been
finalized, it is implemented. The implementation is also checked for anticipated improvement. When the
experiment is successful, a final action such as methodological standardization is taken to ensure that
the new methods introduced will be practiced continuously for sustained improvement. The entire focus
is on problem prevention rather than problem solving.

3. Kaizen

Kaizen cycle for continuous improvement:

 Get employees involved. Seek the involvement of employees, including gathering their help in
identifying issues and problems. Doing so creates buy-in for change. Often, this is organized as
specific groups of individuals charged with gathering and relaying information from a wider
group of employees.
 Find problems. Using widespread feedback from all employees, gather a list of problems and
potential opportunities. Create a shortlist if there are many issues.

 Create a solution. Encourage employees to offer creative solutions, with all manner of ideas
encouraged. Pick a winning solution or solutions from the ideas presented.

 Test the solution. Implement the winning solution chosen above, with everyone participating in
the rollout. Create pilot programs or take other small steps to test out the solution.

 Analyze the results. At various intervals, check progress, with specific plans for who will be the
point of contact and how best to keep ground-level workers engaged. Determine how successful
the change has been.

 Standardize. If results are positive, adopt the solution throughout the organization.

 Repeat. These seven steps should be repeated on an ongoing basis, with new solutions tested
where appropriate or new lists of problems tackled.
Principles of Kaizen

 Improve everything continuously

 Abolish old, traditional concepts
 Accept no excuses and make things happen
 Say no to the status quo of implementing new methods and assuming they will reach
 Empower everyone to take part in problem solving
 Get information and opinions from multiple people
 Before making decisions, ask “ Why” five times to get the root cause
 Be economical. Save money through small improvements
 Never stop trying to improve the process.