Professional Documents
Culture Documents
Unit: 1
Introduction to Quality
Concepts
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Contents of the unit
Definitions of Quality; Benefits of Quality; Total Quality Management;
Principles of TQM; Stages in the evolution of quality; Approaches to TQM;
Manufacturing and service dimensions of quality; Traditional vs. Modern
Quality; Levels of TQM
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Learning Objectives
At the end of the class one should be able to
▪ Explain the concepts of quality management,
▪ Explain the principals, dimensions and levels of TQM.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
TQM Concept
▪ Satisfy Customers expectations
▪ Retain customers loyalty
▪ Survival
▪ Long-term revenue and profitability
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
TQM Concept
TQM ?
▪ Management and employee involved in continuous
improvement of production, products and services.
▪ To increase business profit and to reduce losses due to
wasteful practices
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
TQM Concept
TQM ?
▪ All the members of an organization participate in improving
processes, products, services and culture in which they are
working
▪ Participative systematic approach to plan and implement
constant improvement process
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Evolution of Quality Management
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Quality Revolution in US
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ They began to notice the difference in quality between
Japanese and US made products and they began to expect
the demand high quality and reliability in goods and
services at a fair price.
▪ Government safety regulations, product recalls mandated
by consumer product safety commissions and rapid
increase in product liability judgment started changing
society’s attitude.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ One of the most influential individual in US quality revolution was
W.Edwards Deming. His principles and methods where applied three
decades earlier in Japan so now US companies started seeking help
from his leadership to revolutionize the major companies.
▪ In 1985 NASA announced an excellence award for quality and
productivity. From late 1980s and through 1990s interest in quality
grew at unprecedented rate. By 1989, Florida Power and Light was the
first non Japanese company to be awarded Japans coveted Deming
Prize for quality.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Quality Movement in Japan
▪ During world war II, the Japanese economy was completely disrupted
and Japan was in desperate conditions.
▪ The first task after war was to restore industrial production.
▪ Before war , Japan was known as exporters of cheap goods and poor
quality.
▪ Then to survive Japan reversed its old policy and decided to establish a
new image and reputation for exports of high quality goods at low price.
▪ In 1950 through efforts of Dr. Edward Deming his SQC approach was
introduced in Japan and was taken up effectively by engineers and
plant managers in top management industries.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ A large no of engineers were trained in SQC techniques.
▪ By 1960 the proportion of industrial firms using SQC and associated
methods became larger than USA or any other country.
▪ Due to this improvement in quality coupled with appreciable reduction in
cost of production which made it possible for Japan to enter the world
market on competitive terms in a very short time.
▪ Dr. Ishikawa also contributed significantly to the quality movement in
Japan.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ Quality circle has developed and is gaining strength in Japan more than
in any other country bringing continues improvement of quality and
lowering the cost Japanese goods in both domestic and export markets.
▪ The rate of growth increased to 9 to 10 % .
▪ From 1950 to 1970in this course of quality improvement in Japan per
capita income has increased roughly by four times.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Quality Movement in India
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ Edward Deming who taught Japanese came to India in 1950s.
▪ While Japanese attributed their success to the learnings form two
American gurus.
▪ The formal launch of TQM in US in early 1980s triggered a movement
for quality in India in 1982, the quality circle was born.
▪ Bharat electronic and Baharat Heavy Electrical was the first company to
implement quality circle.
▪ CII provided a focus and an impetus to the quality movement by
forming TQM division in 1987. Quality circle was consolidated by
Quality circle forum in India (QCFI).
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ Few companies began to set up ‘Quality improvement Teams’ for
setting the path for continuous improvement.
▪ CII set up TQM division with help of 21 companies who agreed to
support the cause by pooling in resources and pledging to start the
journey of TQM.
▪ The year 1987 brought ISO 9000 standards into reality and visible
strategies emerged from European market to set a global trend towards
standardizing and certifying Quality systems. CII organized training
courses for ISO 9000 in 1989.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ Two years latter, 1991 the first company got certified to ISO 9000.
▪ From there onwards the movement has gathered momentum and today
more than 500 companies have secured ISO 9000 certification.
▪ Today TQM has become a thrust area in quality movement as it was
realized that through ISO 9000.
▪ CII worked with Government of India to initiate a drive to create an
awareness on quality and customer orientation in state and central
Government Departments.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ CII organized the launch of a National Quality Campaign in 1992 let by
Prime Minister of India and the ‘Quality Summit’ now has become an
annual feature across the country.
▪ The companies practicing TQM have implemented some common
features such as ‘peoples movement’, Quality Assurance system,
Vendor Development, statistical Process Control and other tools and
techniques such as Quality Function Deployment, Reliability and
Design of Experiments.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Quality- What it stands for
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Quality Definitions
▪ “Quality” is defined as
▪ The ability of a product or service to meet customers
needs.
▪ Quality is meeting or exceeding customers expectations.
▪ The totality of features and characteristics of a product or
service that bears on its ability to satisfy stated or implied
needs- American Society of Quality
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Five views of Quality
▪ Transcendental views
This approach claims that quality cannot be defined precisely, we learn to
recognise quality only through experience. Ex. Mercedes Benz and Rolls-
Royce
▪ Product based views
Here differences in quality reflects differences in the quality of some
ingredient or attribute possessed by a product. Ex. High quality Ice Cream
has high fat content.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ User based views
The goods or services that best satisfy individuals consumers different
wants and needs are regarded as having highest quality. Ex. Perceived
quality.
▪ Manufacturing based views
IT focus on producers of goods and services and identify quality as
‘conformance to requirements’ Ex. Any deviation on the given
specifications implies reduction of quality.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ Value based views
A quality product is the one that provides performance or conformance at
an acceptable price or cost. Ex. An inexpensive product is expected to be a
lower quality than a similar and more expensive product.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Seven faces of Quality
▪ Performance
▪ Features
▪ Reliability
▪ Conformance
▪ Durability
▪ Serviceability
▪ Aesthetics
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Dimensions of Product Quality
▪ Performance
How well the product performs the customers intended use
▪ Features
The special characteristics that appeal to customers
▪ Reliability
The likelihood of breakdown, malfunction or the need for repairs
▪ Serviceability
The speed, sot and convenience of repairs and maintenance
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Dimensions of Product Quality
▪ Durability
The length of time or amount of use before needing to be repaired or replaced
▪ Appearance
The effect of time or amount of use before needing to be repaired or replaced
▪ Customer Service
The treatment received by customers before during and after the sale.
▪ Safety
How well the product protects users before, during and after use.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Dimensions of Service Quality
▪ Reliability
Consistency of performer and dependability
▪ Responsiveness
Willingness or readiness to provide service, timeliness
▪ Competence
Possession of skills and knowledge required to perform the service
▪ Access
Approachability and ease of contact
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Dimensions of Service Quality
▪ Courtesy
Politeness, respect, consideration for property, clean dn neat appearance
▪ Communication
Educating and informing customers in language they can understand ,
listening to customers
▪ Credibility
Trustworthiness, belief, having customers best interest at heart
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Dimensions of Service Quality
▪ Understanding
Making an effort to understand the customers needs, learning the specific
requirements, providing individualised attention, recognising the regular
customers.
▪ Security
Freedom from danger, risk or doubt
▪ Tangibles
The physical evidence of service (facilities, tools and equipment's)
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Types of Quality
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Types of Quality
3. One-Dimensional Quality
Ex: A restaurant server who is rude and slow may not cause
customer to leave, though they might leave smaller tips.
4. Exciting Quality
Ex: Quality experienced by owners of Mercedes Benz and BMW
while driving these cars.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Benefits of Quality
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Principles of TQM
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
9. Purchasing & supplier management.
10. Eliminate waste & reduce total cost.
11. Focus on prevention of problems.
12. Promoting creativity.
13. Focus on team work.
14. Performance measures in all levels.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Total Quality Control
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Principles of TQC
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Scope of TQC/8 Stages of Industrial Cycle
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Over View of TQM
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Salient Features of TQM
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Dimensions of Customer satisfaction
Practices
TQM
Principles
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Scope of TQM
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Scope of TQM
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Framework of TQM
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Elements of TQM
Value
Team Work
Improvement
TQM
Thinking Statistically
Benchmarking
Universal
Prevention
responsibility
of Defects
for quality
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Elements of TQM
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Elements of TQM
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Total Quality Management
Unit: 2
Contribution of Quality Gurus
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Contents of the unit
De i g C ib i ai
De i g 14 i f ai Ma age e
De i g chain reaction
Ishikawas fish bone diagram
Tag chi f ci
Jurans contribution
Jurans quality trilogy
Future of TQM
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Learning Objectives
At the end of the class one should be able to
Understand De i g c ib i ai
Describe De i g 14 i f ai a age e
De i g Chai eac i
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Who is guru?
AG i a guide who is considered to have attained
complete insight.
A guru is a good person, a wise person and teacher.
A quality guru should be all of these, plus have a concept
and approach to quality within business that has made a
major and lasting impact.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Quality Gurus
W Edwards Deming
Joseph Juran
Philip Crosby
Shigeo Shingo
Kaoru Ishikawa
Yoshio Kondo
Taguchi
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Three groups of gurus
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Who was W. Edwards Deming
Dr. W. Edwards Deming is known as the father of the Japanese
post-war industrial revival and was regarded by many as the
leading quality guru in the United States. He was born on 14-10-
1900 and he passed away in 20-12-1993.
His expertise was used during World War II to assist the United
States in its effort to improve the quality of war materials
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Who was W. Edwards Deming
- He got his BS degree from University of Wyoming
- He got his MS degree from University of Colorado
- He got his PHD in Mathematical Physics from Yale University
- Get his first employment chance in an electricity company in
Chicago
- He taught physics , mathematics , statistics and quality in Japan .
* Deming is best known for his management philosophy ,
establishing quality , productivity and competitive position .
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
De g c b a
Deming key contributions
3. PDCA cycle
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #1
Create constancy of purpose for continual
improvement of product and services:
Plan for quality in the long term direction (values, mission,
vision)
D j d he a e hi g be e -find better things to do.
Invest in innovation, training and research
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #2
Adopt the new philosophy:
Embrace quality throughout the organization
Create your quality vision, and implement it
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #3
Cease dependency on inspection to achieve
quality:
Inspections are costly and unreliable- a d he d
improve quality, they merely find a lack of quality.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #4
End the practice of awarding business on price alone;
instead, minimize total cost by working with a single
supplier:
Look at suppliers as your partners in quality.
Encourage them to spend time improving their own quality
(decrease expenses for inspection, scrap and rework,
inventory to replace defective items and employee frustration).
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #5
Improve constantly and forever the system of
every process of planning, production and
services:
Improve both design (customers needs, Market survey,
feedbacks) and production (reduce causes of variation)
Constant improvement of quality and productivity
decrease costs
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #6
Institute training on the job:
Build a foundation of common knowledge
A ke de a d hei e i he big ic e
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #7
Adopt and institute modern methods of supervision
and leadership:
D i e i e - provide support and resources so
that each staff member can do his or her best.
Be a coach, provide guidance instead of just overseeing
them
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #8
Drive out fear:
Fear: Obstacle to improve efficiency and effectiveness (failure, unknown,
weakness, losing control, change)
Create an environment that encourages people to ask questions, report
problems, can share their ideas and try new ideas
A e e ef a hei be b e i g ha he e af aid
express ideas or concerns.
Make workers feel valued, and encourage them to look for better ways to
do things.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #9
Break down barriers between departments and
individuals (staff areas):
Interdisciplinary team can enhance quality and effectiveness of
effort to design and build product and services
Team work helps to breakdown barriers between departments
and individuals
People in research, design, production and sales
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #10
Eliminate the use of slogans, posters, exhortations and
targets for the workforce:
Let people know exactly what you want - d ake he
guess.
Motivational methods overlooks the sources of many problem.
Quality problems comes from limits in current system
Urge workers to work harder, train them, provide required
resources
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #11
Eliminate work standards and numerical quotas:
Look at how the process is carried out, not just numerical
targets
Measure the process rather than the people behind the
process
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #12
Remove barriers that rob hourly worker of the
right to pride workmanship:
Analyze contribution of employee (degree of skill with which
a product is made or a job done)
Provide proper circumstances not odd one
(target/tasks/machines/tools/materials/job
tenure/performance appraisal).
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #13
Institute a vigorous program of education and
retraining :
Improve the current skills of workers
Self-improvement for everyone
Encourage people to learn new skills to prepare for future
changes and challenges
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s 14 points of Total Quality Management
Point #14
Def e a age e e a e c e
to ever-improving quality and productivity:
Ta f ai i e e b d j b
Put everybody in the company to work accomplishing the
transformation
Improve overall organization by having each person take a
step toward quality
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
The Deming Cycle or PDCA Cycle (process improvement )
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
The Deming Cycle or PDCA Cycle (process improvement )
Check:
Tea a a e he da a c ec ed d i g he DO e
To find out major shortcomings and existing problems
Assess the outcome or result
Re-evaluate the plan continue/stop the project
Act:
If results are successful, the team documents the revised process
It becomes the standard procedure for all who may use it
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
The Deming Cycle or PDCA Cycle (process improvement )
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
The Deming Cycle or PDCA Cycle (process
improvement )
PLAN
Plan a change to the process. Predict the effect this
change will have and plan how the effects will be
measured
ACT DO
Adopt the change as a
permanent modification to the Implement the change on a
process, or abandon it. small scale and measure the
effects
CHECK
Study the results to learn what
effect the change had, if any.
Deming’s Chain Reaction
C
O
Suppliers N
of Receipt Production Assemble Inspection Distribution S
materials and test U
and of M
equipment materials E
A,B,C,D R
Tests of processes,
machines, methods,
costs
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Deming’s Chain Reaction
Efforts should be directed towards complete satisfaction and delight of the
customer
Customer is the most important part of a process
Process is a series of interdependent functions that works together towards
achievement of goal
System covers every stage from procurement of incoming materials to final
distribution of product/services
Everything starts and finishes with the customers
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
De i g Chain reaction
Improve Quality
Costs decrease because of less rework, fewer mistakes, fewer delays and
snags and better use of time and materials
Productivity improves
Stay in business
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
De g 7 dead D ea e a d S
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
32
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Awards and recognition
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Kaoru Ishikawa
Dr. Ishikawa believed that everyone in the company needed to be united
with a shared vision and a common goal
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
External Customer
Internal Customers
Customer who uses your
company's products or services
directly connected to an organization
but is not part of your
organization
internal to the organization
e.g. If you own a retail store, an
e.g. stakeholders, employees, or
external customer is an
shareholders
individual who enters your store
and buys merchandise
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
I hika a Fish Bone Diagram
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
If root cause(s) are not identified
properly, any countermeasures
could not be come up ith
The problem
will never be
solved!!
Basic Use of the Cause Effect Diagram
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Cause-Effect diagram (Fish bone diagram)
Cause Cause
Effect
Cause Cause
Highly visual brainstorming tool which can spark further examples of root
causes
Quickly identify if the root cause is found multiple times in the same or different
causal tree
Allows one to see all causes simultaneously
Good visualization for presenting issues to stakeholders
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Disadvantages
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Purpose of the Cause Effect Diagram
To arrive at a few key sources that contributes most
significantly to the problem being examined
Caus
Cause
e
Effect
Cause Cause
Originating with lean manufacturing and the Toyota Production System, the 5 Ms is one of the
most common frameworks for root-cause analysis:
Man / mind power (physical or knowledge work, includes: kaizens, suggestions)
Machine (equipment, technology)
Material (includes raw material, consumables, and information)
Method (process)
Measurement / medium (inspection, environment)
These have been expanded by some to include an additional three, and are referred to as the
8 Ms:
Mission / mother nature (purpose, environment)
Management / money power (leadership)
Maintenance
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Cause-Effect diagram
Analyzing the Cause
Categories causes
Identify problem to be corrected and any possible sub causes
of the problem
the cause of problems in each area, seeking changes that
are deviations from the norm
Repeat for each sub-area
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Ca e: h e i g ee h e ai i g i e
A bank is employing a call answering service
Customer Receiving
Operator
A Party
Customer
B How can we reduce waiting
time?
Fishbone diagram analysis
Customer Operator
Cause-Effect diagram
Why students do not participate in extra-curricular activities?
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Cause-Effect diagram
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
55
Joseph M. Juran
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Juran was promoted to department chief in 1928, and the following year
became a division chief.
He published his first quality-related article in Mechanical Engineering in 1935.
In 1937, he moved to Western Electric/AT&T's headquarters in New York City,
where he held the position of Chief Industrial Engineer.
As a hedge against the uncertainties of the Great Depression, he enrolled
in Loyola University Chicago School of Law in 1931.
He graduated in 1935 and was admitted to the Illinois bar in 1936, though he
never practiced law.
Just before the World war's end, he resigned from Western Electric and his
government post, intending to become a freelance consultant.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
He soon joined the faculty of New York University as an adjunct professor in the
Department of Industrial Engineering, where he taught courses in quality control
and ran round table seminars for executives.
When he finally arrived in Japan in 1954, Juran met with executives from ten
manufacturing companies, notably Showa Denko, Nippon K gak , Noritake,
and Takeda Pharmaceutical Company.
Juran who focused on managing for quality went to Japan and started
courses (1954) in quality management. The training began with top and middle
management. The idea that top and middle management needed training had
found resistance in the United States.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Juran founded the Juran Institute in 1979.
The Institute is an international training, certification, and consulting company
that provides training and consulting services in quality management, Lean
manufacturing management and business process management, as well as Six
Sigma certification. The institute is based in Southbury, Connecticut.
Their mission statement is to "Create a global community of practice to
empower organizations and people to push beyond their limits.
Juran began writing his memoirs at 92. They were published two months before
he celebrated his 99th birthday. He gave two interviews at 94 and 97.
In 2004, at age 100, he was awarded an honorary doctorate from Luleå
University of Technology in Sweden. A special event was held in May to mark
his 100th birthday.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Books Published
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
J a 10 steps for quality improvement
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Fitness of Use forms major product traits
1. Quality of design
2. Quality of conformance
3. Availability
4. Safety
5. Field use
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Contributions of Joseph M. Juran
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Cost of Quality (COQ)
Definition:
Quality Costs are defined as those costs associated with the non-achievement of product
/service quality as defined by the requirements established by the organization and its
contract with customer and cie .
The cost associated with product and service quality . Some cost are associated with
preventing poor quality and some costs occur after poor quality occurs. There are four major
costs associated with quality management as follows:
Prevention costs
Appraisal costs
Costs of internal failure
Costs of external failure
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Cost of Quality (COQ)
Prevention costs
Pe e i c a e he c ha cc he a c a i ef i g ac i i ie de ig ed
e e ai be f ai i gi d c e ice .
Cost associated with preventing defects before they happen.
Cost of redesigning the product to make it simpler to produce, redesigning the process to
remove causes of poor quality.
Quality planning
New product review
Training
Process planning
Quality data
Improvement projects
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Cost of Quality (COQ)
Appraisal costs
A ai a c aea cia ed i h ea i g, e a a i g a di i g d c
e ice e e ha he c f ecifica i e ie e .
Cost incurred in assessing the level of quality attained by the operating system.
Cost of detecting the defects
Incoming materials inspections
Process inspection
Final goods inspection
Quality laboratories
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Cost of Quality (COQ)
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Quality Habit
J a ultimate goal for TQM programme for the firm as a whole has to be set on a
process of continuous improvement.
Juran advocated a four stages process to develop the quality habit for any firm,
these stages are:
Establish specific goals that identify what organisation members should do and
why.
Establish plans for reaching those goals with enough detail to guide peoples
actions from beginning to end,
Assign clear responsibilities for meeting the gaols and
Base rewards on results.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
71
J a Quality Trilogy
Quality Quality
Planning Improvement
Quality
Control
JURAN TRILOGY
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
JURAN TRILOGY
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
J a Quality Trilogy Process
Quality Planning
Quality planning involves developing the products, systems & processes needed to
meet customer expectations. The following steps are required for quality planning:
Identify the customer-both external and internal
Determine customer needs
Develop product features that respond to customer needs
Establish quality goals that meet the needs of customers and suppliers alike
and do as at a minimum combined cost
Develop a process that can produce the needed product features
Prove process capability
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
J a Quality Trilogy Process
Quality Control
The control of quality involves the following process :
Choose control subjects
Choose units of measurements
Establish standards of performance
Measure actual performance
Interpret the difference between actual performance and standard performance
Take action on the difference
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
J a Quality Trilogy Process
Quality Improvement
The improvement of quality should be on going & continuous
Prove the need for improvement
Identify the specific projects for improvement
Organize to guide the projects
Organize for diagnosis for discovery of causes
Find the causes
Provide remedies
Prove that the remedies are effective under operating conditions
Provide control mechanism to hold the gains.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Universal Breakthrough Sequence
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Strength and Weaknesses of Juran Philosophy
Strength
New understanding of the customer, referring to both internal and external
customer.
Management involvement and commitment is stressed.
Weaknesses
The emphasis on managements responsibility for quality fails to get the grips
with the literature on motivation and leadership.
The contribution that the worker can make undervalued.
The methods advocated are traditional and old fashioned.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
80
Genichi Taguchi
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
He also worked at the Institute of Statistical Mathematics during this time, and
supported experimental work on the production of penicillin at Morinaga
Pharmaceuticals, a Morinaga Seika company.
In 1950, he joined the Electrical Communications Laboratory (ECL) of
the Nippon Telegraph and Telephone Corporation just as statistical quality
control was beginning to become popular in Japan.
He collaborated widely and in 1954-1955 and was visiting professor at
the Indian Statistical Institute, where he worked with C. R. Rao, Ronald
Fisher and Walter A. Shewhart.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
While working at the SQC Unit of ISI, he was introduced to the orthogonal
arrays invented by C. R. Rao - a topic which was to be instrumental in enabling
him to develop the foundation blocks of what is now known as Taguchi
methods.
On completing his doctorate at Kyushu University in 1962. In the same year he
visited Princeton University
In 1964 he became professor of engineering at Aoyama Gakuin
University, Tokyo.
Since 1982, Genichi Taguchi has been an advisor to the Japanese Standards
Institute and executive director of the American Supplier Institute, an
international consulting organisation.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Contributions
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Genichi Taguchi
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Taguchi quality loss function
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
87
88
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
If you purchase an orange at the supermarket, there is a certain date that is ideal to eat it.
That would be the target date. There will also be limits for when to eat the orange (within
three days of the target date, Day 2 to Day 8).
For this example, Day 5 represents the target date to eat the orange. That is when the
orange will taste the best (customer satisfaction).
You purchase the orange on Day 1, but if you eat the orange you will be very dissatisfied,
as it is not ready to eat. This would fall below the lower limit. On Day 3 it would be
acce ab e ea , b a e i di a i fied beca e i d e a e a g d a ea i g
on the target date. If you wait for Day 5, you will be satisfied, because it is eaten on the
ideal date. If you wait until Day 7, you will be slightly dissatisfied, because it is one day
past the ideal date, but it will still be within the limits provided by the supermarket. If you
wait until Day 9, you will be very dissatisfied, as it will be too far past the ideal date.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
91
You are slightly dissatisfied from Day 2 through 4, and from Day 6 through 8,
even though technically you are within the limits provided by the supermarket.
The least amount of dissatisfaction occurs on the target date, and each day
removed from the target date incurs slightly more dissatisfaction. Contrary to
most discussions around specification limits, you are NOT completely satisfied
from Days 2 through 8, and only dissatisfied on Day 1 and 9.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Taguchi quality loss function
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Characteristics of Taguchi Methods
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Characteristics of Taguchi Methods
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Total Quality Management
Unit: 3
Impact of Quality Management
in Business
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Contents of the Unit
Costs of Quality
PZB model and Gaps in service Quality
Service recovery strategies
Five key dimensions in the Servqual model.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Cost of Quality (COQ)
Cost of quality:
associated with cost spent on poor quality
quantify the total cost of quality-related efforts and
deficiencies
allows an organization to determine the extent to which its
resources are used for activities that prevent poor quality
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Cost of Quality (COQ)
Objectives of Cost of quality
To communicate quality problems to top management
To evaluate the relative importance of quality problems and
identify major opportunities for cost reduction
To support budgeting and cost control activities
To evaluate the organization s success in achieving quality
objectives
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Cost of Quality (COQ)
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Classification of Cost of Quality
1. Prevention Costs
2. Appraisal Costs
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Classification of Quality Cost
1. Prevention Costs
(Any expenditures to minimize the number of defects in products and
services)
Quality Planning Costs related to various quality plans e.g. standards, practices,
Costs procedures, resources, specifications, activities relevant to a particular
product, service, project
Process Control Costs spent on analysing production processes and implementing
Costs process control plan
Training and general Costs spent on internal and external training programs, clerical
staff expenses and miscellaneous supplies
management costs
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
2. Appraisal Costs
Classification of Quality Cost
(Associated with efforts to ensure products and services meet customer expectations
and requirements. These costs could include expenses for field tests, survey and
inspections)
Process measurement Costs involved on resource and time spent to gather and
and control costs analyse quality measurement and control
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
3. Internal Failure Costs
(costs Classification
of quality associated of
withQuality Cost
product failures that are discovered before a
product leaves the factory or before delivery to the customer. These failures
are discovered through the firm's internal inspection processes )
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Classification of Quality
4. External Cost
Failure Costs
(costs incurred due to poor quality or product failures after they have been
sold to customers)
Costs due to Costs spent on rework on returned items, cancelled orders and
customer complaints freight premiums
and returns
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
PZB Model
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
PZB Model:5 gaps of unsuccessful service delivery
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
PZB Model:5 gaps of unsuccessful service delivery
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
PZB Model:5 gaps of unsuccessful service delivery
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
PZB Model:5 gaps of unsuccessful service delivery
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
PZB Model:5 gaps of unsuccessful service delivery
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
PZB Model:5 gaps of unsuccessful service delivery
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Five key dimensions in Service Quality model
Empathy
Responsiveness Reliability
Assurance Tangibles
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Five key dimensions in Service Quality model
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Five key dimensions in Service Quality model
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Service recovery strategy
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Service recovery strategy
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Total Quality Management
Unit: 5
Models and processes in
achieving Total Quality
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Contents of the Unit
Benchmarking- Merits and demerits; Stages of benchmarking; Types of
benchmarking; phases of benchmarking; Process of benchmarking
Kaizen philosophy; 5 S s in Kaizen quality philosophy
Six Sigma; DMAIC model; Barriers associated with six sigma
implementation benefits of six sigma implementation; six sigma
applications; Kanban
Employee and management involvement in quality; Benefits of employee
empowerment
Quality policy; Quality planning; Quality improvement.
Just in Time; elements of just in time; Advantages and limitations of JIT
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
BENCHMARKING
Introduction:
Process to find who is best, who sets standard & what that standard is.
It give answers to questions like Ho are we doing? , Ho do we
compare with o he ?
It provide data to show what is achieved & how can be achieved
It is method to measure according to practices.
It is to measure organization performance against best companies.
It is process of borrowing ideas & adapting it to get competitive advantage.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Definition:
Benchma king is defined as the process of identifying, understanding and
adapting outstanding practices and processes from organizations anywhere in
the world to an organization to improve its performance.
- American productivity & Quality Centre.
Benchmarking is the continuous process of measuring products, services and
practices against the toughest competitors or those companies recognised as
industry leaders.
- David Kearns.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Benchmarking Concept
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Objectives of Benchmarking (Reasons to Benchmark)
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Evolution of Benchmarking:
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
1. Xerox:
Initiate & discovered against competitors that
Reasons:
manufacture cost equal to Japanese selling price.
no. of production, suppliers was 9 times of best company.
assembly lines rejects 10 times higher.
product lead time was twice.
parts increased from 20% to 60 70%.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
2. Motorola:
In 1980 they initiated benchmarking process and achieved in 3 year.
Reasons:
tool to achieve business & competitive objectives.
used for right reason with good strategy.
this helps to develop organization strength & weakness.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Types of Benchmarking
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
II) Classification based on the organization against whom one is
Benchmarked:
1. Internal Benchmarking refer to comparison of performance between
department, within organization.
2. Industry Benchmarking comparison of performance by organization in
producing same type of product & services.
3. Competitive Benchmarking comparison of performance against direct
competitors.
4. Best in class Benchmarking comparison of performance with best practices
in organization.
5. Relationship Benchmarking comparison of performance with company who
has already relationship.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Benchmarking Process/Steps- propose by Robert C Camp
in 1989
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Areas to Benchmark
i) Customer service levels.
ii) Inventory Management
iii) Inventory Control.
iv) Purchasing.
v) Billing and collection.
vi) purchasing practices.
vii) Quality process.
viii) warehousing & distribution.
ix) Transportation.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Guidelines to Benchmarking
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Issues related to Benchmarking Process
1. Focus of benchmarking:
a) Product focus on dissecting products.
b) Process focus on manufacturing processes.
c) Best practices focus on management processes.
d) Strategic focus on management directions.
2. Gap analysis:
Spider Cha that used to measure the performance and gaps between
companies.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
3. Hard and Soft systems in Benchmarking Process:
* Hard system performance measurement, training and resource commitment.
* Soft system organizational culture, Strategic commitment and motivation.
4. Influences on Benchmarking & its outcome:
a) Change Management.
b) Time based competition.
c) Technological development.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Benefits of benchmarking
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Limitations (Weakness)
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Pitfalls of Benchmarking
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
5-S HOUSE KEEPING (Workplace Management)
5-S
SEIRI CLEARING
SEITON ARRANGING
SEISO SWEEPING
SEIKETSU CLEANLINESS
SHITSUKE - DISCIPLINE
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
5S: (5S House keeping)
5S practice is a house keeping technique used to establish
and maintain a productive and quality environment in an
o gani a ion .
5S invented in Japan stands for SEIRI, SEITON, SEISO,
SEIKETSU and SHITSUKE.
It give more productive, improve morale & responsibilities.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
WHY 5-S
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
5-S contributes SAFETY
If clearing and arranging are done well then the workplace has more
space. There is less clutter.
Work preparation is easier, efficiency is raised, things do not get lost
and the general atmosphere is more pleasant.
Those conditions promote safety.
Also, accidents often occur because of tripping over something on the
floor where it is not supposed to be something falling down a cupboard
because it is kept improperly or in the wrong place.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Our hands or clothing getting caught in something which is out of place.
A hazardous chemical is spilled or touched because of wrong location
or missing labels.
Orderliness promotes safety whether at home, office, shop floor or on
the road.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
5-S contributes QUALITY
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
5-S contributes VISUAL CONTROL
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
5-S contributes PRODUCTIVITY
To improve productivity, it is vital to provide a clean, cheerful and well
organized environment in order that every one can work efficiently.
Productivity is very much a function of morale.
Good morale is promoted when people can feel proud about the way
they maintain their work place.
Time spent in searching for things (parts, tools or paper) is eliminated.
Production loss due to a part or a material or tool or anything else which
is supposed to be available but cannot be traced is eliminated.
Production loss due to use of wrong materials, mix-ups of materials and
other such defectives are eliminated.
Machines break down more often when they work in dust condition.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
5-S promotes productivity in many ways
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
SEIRI : CLEARING
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
How to practice SEIRI?
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
SEITON : ARRANGING
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Four steps to SEITON
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Consequence of not practicing SEITON
Things are seldom available when needed. Search squads are all the
time looking for misplacing things.
Together with non-practice of SEIRI, the frustrating effects are : items
are lost in stores.
Items defectives and good ones, or similar looking materials get mixed
up.
Accidents or near accidents occur due to clutter.
Visual control of the shop floor is not possible.
Sometimes production is lost because an item required is available but
can not be found.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
SEISO : SWEEPING
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Consequence of not practicing SEISO
Most machines are affected by dust and dirt. Their performance may go
down, they may wear out faster. The costs can be huge.
Cleaning reveals many potential equipment problems which may
otherwise get overlooked.
Dust and dirt on products, materials, packing boxes will almost certainly
affect either their performance quality and in the least their aesthetic
quality.
A dusty and dirty place is unpleasant to work in.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
SEIKETSU : CLEANLINESS
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Consequence of not practicing SEIKETSU
Good health and safety require the practice of SEIKETSU (It does not
cover all safety and health aspects but is basic to it).
Hazardous chemicals, dusty chemicals, fumes etc., can make it a
dangerous place to work of not controlled.
Washing thoroughly cleans a place and makes the workplace pleasant
so an unwashed workplace can become unpleasant.
Personal hygiene is also essential for a healthy workforce.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
SHITSUKE : DISCIPLINE
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Objectives of 5S
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Factors in implementing 5S
Participation by all.
Top Management commitment.
Should be Self sustaining.
Review the programme.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Importance of 5-S
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
KAIZEN = Continual Improvement
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
KAIZEN
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Concept of KAIZEN
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Comparison of INNOVATION & KAIZEN
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
THE NEED FOR KAIZEN
Changing environment of
Customer expectations
Product design
Product quality
People
Competition
Government rules and regulations
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Why is change required?
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
METHODS
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Suggestion system
Enables employees to use their talents
Gathers employees opinions and ideas on how to improve the work
place.
Provides for cash and other awards.
Under TQM, the suggestion system is powerful, producing large
numbers of high quality suggestions.
Companies like Toyota or Matsushita typically average 50 Kaizen per
employee per year.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
KAIZEN STEPS
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
TRUE KAIZEN MUST NOT ONLY ATTACK THE SYMPTOM BUT
ALSO THE ROOT CAUSE OF THE PROBLEMS FROM RECURRING.
A KAIZEN MUST RESULT IN A REVISION OF THE STANDARD
CURRENTLY IN USE .
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
SIX SIGMA
Stands for 6 standard deviation from mean (sigma is Greek letter used to represent
standard deviation in statistics).
Similar to Zero defect concept.
6 method give techniques & tool to improve capability & reduce defect.
Started by Motorola company in 1987.
It strives for perfection, it allow only 3.4 defects per million opportunities (i.e.) 99.999666%
accuracy.
It improve performance of particular process, decrease variation & maintain constant
quality.
It gives basic principles & techniques in business, statistics.
Objective of six sigma is to achieve zero defects.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Definition:
Si sigma is defined as a vision of quality which equates with only 3.4
defects per million opportunities for each product or service transaction
and strives for pe fec ion .
It is a systematic method for process & product improvement and for
measuring performance variation
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
What is Six Sigma?
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
DMAIC A Six Sigma Process Improvement
Methodology
How should we start six sigma project in our organization?
When should we start six sigma project in our organization?
Do we wait for any customer complaint or any outside view about process
issues?
Is six sigma really applicable, as we don observe any process defect?
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
The philosophy behind six sigma approach is:
Whatever we measure; acquires our focus
Whatever we focus; leads to improvement
Identify critical success factors for your business process.
Define process metrics to measure process performance.
With six sigma methodology, you can improve this process
performance.
Six sigma is a logical structured approach to improve business
processes.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Six Sigma Model (DMAIC Model) for process
quality improvement:
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Seven Basic Quality Tools (Quality core tools):
Below is the list of some quality management tools, popularly known as seven
basic quality tools
1. Cause and effect diagram or Ishikawa diagram
2. Flow Chart
3. Pareto Chart
4. Histogram
5. Check Sheet
6. Scatter Plot
7. Control Chart
These basic tools are helpful in six sigma projects at different times.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
1. Cause and Effect Diagram:
Also, known as Fishbone diagram. Attributed to Kaoru Ishikawa, the diagram
has its shape similar to a fish skeleton. Hence, named as Fishbone diagram.
This tool is used to explore causes to a single effect (or event) through
brainstorming. These causes are put under different common categories known
as 5 M or 6 M. Where, 6 M expands as Man, Material, Method, Machine,
Measurement & Mother Nature.
2. Flow Chart:
It suggests the process flow in a diagrammatic way. Outlines a pictorial
representation of processes or process steps to understand their flow upstream
or downstream.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
3. Pareto Chart:
Also, known as 80:20 principle. Attributed to Vilfredo Pareto, Principle states,
80% of the outcome is a result of 20% causes. I a kind of bar chart showing
the frequencies of different causes or factors in descending order. The main
purpose of this chart is to highlight the most significant factors among a number
of factors.
4. Histogram:
I a bar chart to study the frequency distribution of data set. I used to
understand nature of data.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
5. Check sheet:
It is used for data collection. A frequency of factorized data is collected in check
sheet.
6. Scatter Plot:
Scatter plot represents the relationship between two variables. It shows, how
one variable changes with respect to any change in another variable. Scatter
plot can depict following relationships:
Strong positive, Strong negative, Weak Positive, Weak Negative, Any trend
(Parabolic), No relation
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
7. Control Chart:
These charts are used to check, whether process data remains under control
for the shorter time span. They involve process control limits and sometimes
customer specification limits as operational ranges or bands. Process data is
analyzed to remain within process control limits. Whenever data goes out of
control limits, it certainly has some special causes to be investigated &
removed immediately. The aim of these charts is to ensure process data
doe n go beyond control limits. However, some exception rules are also there
to ascertain the condition of a process going out of control, while well within
control limits.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Define
The main objective of this phase is to summarize the project plan.
This phase focuses on clearly specifying the problems; the goals of the process
improvement project what is the scope of the project and identifying the customers (internal
and external) along with their requirements.
An input to this phase comes from the voice of customer (VOC), the voice of business
(VOB) and/ or the voice of process (VOP).
In addition, sometimes the voice of employees (VOE) is also effective to lead some six
sigma improvement projects.
With the help of these inputs, six sigma projects are identified.
In this phase, we identify opportunity for six sigma projects.
We develop a project plan and high-level process map.
The main component of this phase is preparing Project Charter.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Charter is a document, which is an initial blueprint for any six sigma project. It outlines
following essential elements:
Business Case, Problem Statement, Goal Statement, Project Scope, Team & their
broad responsibilities, Time plan, Estimated project benefits.
Tools in Define phase are required to measure CTQ (Critical to Quality) characteristics.
The Pareto Chart and SIPOC (Suppliers, Inputs, Process, Outputs, Customers) are the
valuable tools of this phase.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Measure
The main objective of this phase is to collect the data that is relevant to the scope of the
project. This phase focuses on identifying the parameters that need to be quantified, ways
to measure them, collect necessary data and carry out measurement by different
techniques.
The operational definition of metric is devised. It gives common language & understanding
of data being collected.
Data Collection plan outlines what data to be collected? When to be collected? Who will
collect? Hence, sets overall direction for data collection. After data collection, data is
analyzed to ascertain its nature through frequency distributions.
The histogram can be used to understand the distribution of data. Depending upon data
nature Normal or Non Normal, data - analysis tools are decided. In Measure phase,
different tools can be used like Process flowcharts, Benchmarking, Run charts, Gage R & R
and Process capability. Two commonly used measurement techniques are Defects Per
Million Opportunities (DPMO) and Process Sigma.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Analyse
The main objective of this phase is to find the root cause of business inefficiency. It
identifies the gaps between actual and goal performance, determine its causes and
opportunities for its improvement.
Analyze phase follows a drill down approach to reach exact root causes from various
potential causes identified initially. This phase starts with exploring all possible causes to
the main problem. Then, these causes are verified & validated though hypothesis &
statistical tools.
The outcome of this phase is verified root causes which need to be acted upon to
improve the process. Analyze phase requires due care to identify & verify root causes.
Because the effectiveness of process improvement through six sigma project lies on the
correct identification of root causes.
Commonly used tools in Analyze phase are Fishbone Diagram, Brainstorming, Histogram,
5 Whys, Hypothesis testing, Time series plots and Scatterplot.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Improve
This phase improves the process by determining potential solutions, ways to implement
them, test and implement them for improvement.
In this phase, process owners are consulted and improvements are suggested. Action plan
for the improvement is circulated to relevant stakeholders.
This action plan specifies Action to be taken; By when By whom etc.
The improvement plan is designed to mitigate the risk and include customer feedback and
satisfaction.
With the formation of improvement action plan, implementation phase starts
simultaneously. During implementation, actions are carried out, tested for effectiveness and
implemented finally.
Tools used to eliminate the defects are Brainstorming, Mistake-proofing (Poka Yoke),
Simulation software, Prototyping, Piloting and Pugh Matrix.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Control
The main objective of this phase is to generate a detailed solution monitoring plan.
This plan ensures that the required performance is maintained. It defines and validates the
monitoring system, develops standards and procedures, verifies benefits and profit
growths, and communicates to business.
Hence, the main purpose of Control phase is to ensure Holding the gains.
During this phase, post-implementation results are evaluated. Progress is ascertained. And
Changes are incorporated - if any, correction or modification is required.
Control phase in most of the cases is a transition phase. Transition happens from current
practices & systems into new practices.
The most important part of this phase is to provide training on new changes to all relevant
stakeholders. Important tools used in control phase are Process sigma calculation, Control
charts, Cost saving calculations and Control plan.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Six Sigma Organization
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Responsibilities
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
6. Green belts:
Similar to black belts, but not full time role.
They are projects heads or owners.
7. Team members:
Initiated to six sigma project.
Focus on day to day work & assist green belts.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Advantages of Six sigma:
a) Improved customer satisfaction.
ensure products / services meeting customer needs.
b) Improved quality, efficiency & cost of products.
reduction of waste, variation reduction.
financial saving through cost reduction.
c) Creation of self sustaining infrastructure.
well defined roles & responsibilities.
empowering all employees, improved communication.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
d) Standardization.
language training materials, tools & software.
standard method, common solution.
Scope:
To many fields like services, medical & Insurance, etc.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Quality Council
Definition:
Q ali Council is a team to provide overall direction for achieving the total
quality culture.
It compose of CEO, Senior manager in all functional areas, Coordinator /
Consultant.
Objectives of Quality Council:
To raise quality consciousness in organization through seminars, study tours.
To ensure effective functioning of organization.
To encourage basic and applied R&D in quality field.
To raise level of training of personal in quality activities.
To facilitate up gradation of testing & calibration facilities.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Duties of the Quality Council:
To develop value & quality statement that include vision, mission &
quality policy statement.
To develop strategic long term plan with goals.
To plan the training & education program.
To find & monitor cost of poor quality.
To perform & monitor performance measures for all functional areas.
To develop multifunctional project & team to monitor process.
To develop / revise recognition & reward system.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Responsibilities of the Quality Council Coordinator:
To develop two way trust.
To propose team requirement to council.
To share council expectation with team.
To empower team.
To brief the council on team progress.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Quality Council Structure
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Employee Involvement
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
1. Employee Motivation:
* Concept of Motivation:
Mo i a ion means a process of stimulating people to accomplish
desired goals.
Influence others to do your will through possibility of reward.
* Importance:
improve employee involvement.
promote job satisfaction & reduce absenteeism.
help to secure high level performance & increase efficiency & productivity.
creates congenial working atmosphere in organization
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Theories of Motivation
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Level 1 (survival): Food, clothing, and shelter
Level 2 (security): safe place to work and job security.
Level 3 (social): relates to our need to belong
Level 4 (esteem): relates to pride and self-worth
Level 5 (self actualization): individuals must be given the opportunity to
go as far their abilities will take them.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
B. Herzberg s Two Factor Theory
MOTIVATORS:
- Recognition, Responsibility, achievement, advancement and work itself.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Motivation
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Benefits of Employee Involvement
Empowering
Better Decisions
Better improvement
Corrective Action
Effective Cooperation &Communication
Loyalty Increases & Floating Population Reduces
More Money to Share
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
C. Employee Empowerment
It is an environment in which people have the ability, the confidence and
the commitment to face the responsibility and ownership to improve the
process and initiate the necessary steps to satisfy customer
requirements within well defined boundaries in order to achieve
organizational values and goals.
Empowered environment requires:
Every one must understand the need for change
The system needs to change to the new paradigm
The organization must enable its employees
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Operation definition of Empowerment:
Empo e men is an environment in which people have the ability,
confidence and the commitment to take the responsibility and
ownership to improve the process and initiate the necessary steps to
satisfy customer requirement within well defined boundaries in order to
achieve organizational goals and values.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Principle of Empowering Employees
Tell the people what their responsibility.
Give equal authority & responsibility to assign.
Set standard for excellence.
Provide training to maintain standard.
Give knowledge & information.
Provide feedback on performance.
Trust & create trust in organization.
Treat with dignity & respect.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Conditions to create the Empowered Environment:
Everyone must understand need for change.
System need to change to new paradigm.
Organization provide information, education & skill to employee.
Characteristics of Empowered employees:
they feel responsible for own work.
given free hand in work, well trained, creative.
balance their own goals with organization.
critical, self esteem, challenged & encouraged.
monitor & improve work continuously.
new goals & change challenges.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
D. Recognition and Reward
Recognition is a form of employee motivation in which the organization publicly
acknowledges the positive contributions an individual or team has made to the
success of the organization (e.g.) certificates and plagues.
Reward is something tangible such as gifts, or a cash award to promote
desirable behavior.
Employee should be involved in the planning and implementation of the
recognition and reward program.
Systems that are developed with employee involvement will most likely
succeed.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Employees should be involved with the manager and sometimes the customer
and supplier in the nomination and selection of the individuals and teams to be
recognized and rewarded.
The system that is developed by the team must have clear recognition criteria.
The system should be structured to avoid ranking individuals, because ranking
fosters the counter productive notions that are winners and losers.
Recognition should be valid, genuine and meaningful for the giver and the
recipient
The system should be so developed that monetary reward is not a substitute for
compensation
While the reward may be delayed until an appropriate time, the recognition
should be on a timely basis.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Rewards should be appropriate to the improvement level the greater the
improvement, the greater the reward.
Pictures on the bulletin board, articles in newsletters or newspapers, letters to
families, making a presentation to management, personal phone calls, placing
positive notes in folders, and increased responsibility are the other forms of
recognition.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Reasons to recognize the employees
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Intrinsic vs. Extrinsic rewards
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Twenty different ways to recognize people:
Send letters thanking the team for their involvement and contribution.
De elop a behind he cene a a d
C ea e a be idea of he ea bookle
Feature the quality team of month
Honour peers at staff meetings
In the absence of Manager, let others attend meetings, seminars, etc.,
Involve teams with external customers and suppliers
Invite a team for coffee or lunch at any time.
Create a visibility wall to display contributions
Indi id al o g o p idea m be gi en c edi
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Mention the outstanding work or ideas in the meetings
Take in e e in emplo ee de elopmen
Publish teams pictures in the company newsletter
Write a le e o p ai e i h a cop o o bo .
Involve people in the challenging task.
Send a team to special seminars, workshops or meetings
Ask your boss to send a letter acknowledging the significant contributions.
Honour outstanding contributions with awards
Have a stock of small gifts to give to people on the spot.
Promote who contribute most.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
E. Team & Team work
* Team group of people working together to achieve goal.
* Team work cumulative actions of team where each member coordinate
their individual interest to fulfill the goals.
* Benefits of Team work:
Improved solutions to quality problems.
Improved ownership of solutions.
Improved communications.
Improved integration.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Types of Teams
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
3. Natural work teams:
Team consists all members from work unit, they are not volunteer & it is
selected by management.
Employee will not co operate sometimes due to reason, in that time manager will
be position to motivate in proper direction.
4. Self directed / Self managed work teams:
Group of individual to work together, plan & execute & control to achieve goal.
Team coordinator selected within team by consult with top management & they
must plan about activities.
Additional responsibility of team are hiring, dismissal performance evaluation,
customer / supplier relations.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Characteristics of a successful team
Sponsor
Team Charter
Team Composition
Training
Ground Rules
Clear Objectives
Accountability
Resources
Well defined Decision procedures
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Trust
Effective Problem solving.
Open Communication.
Appropriate leadership.
Balanced participation.
Cohesiveness.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Elements of Team Work
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu