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Total Quality Management

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

▪ 1900’s F.W.Taylor, the ‘Father of Scientific Management’


emphasised on quality by including inspection.
▪ 1924, W.Shewhart introduced statistical control chart to
monitor production.
▪ 1930, H.F.Dodge & H.G.Roming introduced tables for
acceptance sampling etc.
▪ World War II caused dramatic increase in emphasis on
quality control.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ US Universities started training engineers in industries in
the use of statistical sampling techniques and professional
quality organisations such as ASQC.
▪ During 1950s quality movement evolved into quality
assurance.
▪ W.Edwards Deming introduced SQC methods to
Japanese's manufactures to help them rebuild their
manufacturing base and enable them to compete in world
markets.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ Joseph Juran began his cost of quality approach
emphasizing accurate and complete identifications and
measurement of cost of quality.
▪ In mid 1950s, Armand Fiegen Baum proposed TQM which
focused on quality control from manufacturing to include
product design and incoming raw material.
▪ In 1960s, concept of zero defect gained favour. Philip
Crosby was the champion of this concept, this concept
focussed on employee motivation and awareness.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ In 1970s quality assurance methods were used in services
such as government operations, health care, banking etc.
▪ Then in 1972 there was a dramatic shift from quality
assurance to strategic approach to quality.
▪ Concept of reactive approach (finding & correcting defects)
changed to pro active approach (preventing defects & re-
occurring) came into picture.

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

▪ The decade of 1980s was a period of remarkable change and growing


awareness of quality by consumers, industry and the government.
▪ During 1950s and 1960s made in Japan was associated with inferior
products, US consumers purchased domestic goods and accepted their
quality without question.
▪ During 1970s increased global competition and the appearance of high
quality products in the market let US consumers to consider their
purchasing decision more carefully.

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

▪ Quality has been a tradition in India and monuments, relics, handicrafts,


gems, jewelry and craftsmanship has woven quality into our heritage.
▪ But while quality was a way of managing business in the US and Japan
in the 1950s, it was not so in India.
▪ The quality movement was consolidated in 1980s in Indian industries to
bring about a synergy of resources by CII.
▪ Walter Shewart father of statistical quality control visited India for a
short period of 3 months during 1947-48 and initiated SQC movement
through visits to factories, personal discussions and lecturers.

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

▪ Q- Quest for excellence


▪ U-understanding customers needs
▪ A-Action to achieve customers appreciation
▪ L-Leadership
▪ I-Involving all people
▪ T-Team spirit to work for a common goal
▪ Y-Yardsticks to measure progress

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

The Kano model is a theory for product development and customer


satisfaction developed in the 1980s by Professor Noriaki Kano.
Kano breaks down quality into four categories to understand its relationship
to competition.
1. Indifferent Quality
Ex: A garnish on a dinner plate or finger bowl
2. Expected Quality
Ex: A customer expect cars to be safe and reliable

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

▪ It gives a positive company image.


▪ It improves competitive ability both nationally and internationally.
▪ It increases market shares, which translates into improved profits.
▪ Overall, it reduces costs, which also translates into improved profits.
▪ Its reduces or eliminates product liability problems, avoiding
unnecessary costs.
▪ It creates an atmosphere for high employee moral, which improves
productivity.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Principles of TQM

1. Customer requirements must be met first time, every time.


2. Agreed requirements for internal & external customer.
3. Everybody must involved in all levels & functions.
4. Regular communication.
5. Identifying training needs & capabilities.
6. Top management commitment & participation.
7. Continuous improvement.
8. Every job must add value.

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

▪ Total Quality Control is the organized Kaizen activities involving


everyone in the company-managers and workers- in totally integrated
effort toward improving performance at every level.
▪ This improved performance is directed toward satisfying such cross-
functional goals- as quality, cost, scheduling, manpower, development,
and new product development.
▪ It is assumed that these activities ultimately lead to increased customer
satisfaction.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Principles of TQC

▪ Top management policies


▪ Quality control training for everyone
▪ Product or service design
▪ Quality materials from suppliers
▪ Control in production
▪ Distribution, installation and use

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

Marketing Engineering Purchasing Manufacturing


Engineering Manufacturing Engineering & Shop Operations
Mechanical Inspection & Functional Test Shipping & Packaging
Installation & Service

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

▪ Find out what customer wants


▪ Design a product or service that will meet or exceed what they want.
▪ Design a production process that facilitates doing job right the first time.
▪ Keep track of the result and use those to guide improvement in the
system.
▪ Extend these concepts to suppliers & distribution units.

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

▪ Fitness for use


▪ Reliability and life of product
▪ Value for money
▪ After sales service and support
▪ Packaging
▪ Customer information and transit
▪ Maintainability
▪ Speed of service
▪ Company image
▪ Customers confidence in the organisation
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Scope of TQM

Practices

TQM
Principles

Infrastructure Participation & Team Work Tools & Techniques

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Scope of TQM

▪ An integrated organisational Infrastructure


Infrastructure refers to the basic systems of management that necessary to function
as a high performing organisation.
Leadership
Strategic Planning
Human Resource Management
Process Management
Data and Information Management

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Scope of TQM

▪ A set of management Practices


Practices are those activities that occur within a management system to achieve
high performance objectives.
Leadership
Human Resource Management
Process Management
A wide variety of tools and techniques
Tools include various graphical & statistical methods to plan work activities, collect
data, analyse results, monitor progress and solve problems. Ex. Control Charts,
Pareto Chart, Histogram, Flowchart, Check Sheets, Scatter Diagram.

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

Employee Involvement Training


Employee Empowerment
Continuous Customer
Improvement Focus

Value
Team Work
Improvement
TQM

Thinking Statistically
Benchmarking
Universal
Prevention
responsibility
of Defects
for quality

Supplier Teaming Sustained Management Commitment Root Cause Corrective Action

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Elements of TQM

▪ Sustained management commitment to quality


▪ Focusing on customer requirement to quality
▪ Preventing defects rather than detecting them
▪ Recognising that responsibility for quality is universal
▪ Quality Measurement
▪ Continuous improvement approach
▪ Root cause corrective action
▪ Employee involvement and empowerment

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Elements of TQM

▪ The synergies of team work


▪ Process improvement
▪ Thinking Statistically
▪ Benchmarking
▪ Inventory Reduction
▪ Value improvement
▪ Supplier Teaming
▪ Training

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

1. Deming s 14 points of quality management

2. Deming s Chain Reaction

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
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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

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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).
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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

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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

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The Deming Cycle or PDCA Cycle (process improvement )

Problem-solving process- Continuous Improvement (CI)


Plan:
Goal select process that needs / for improvement Action plan/ways
to achieve goal assess the benefits and costs Plan
Do:
Implement plan monitor progress continuous data collection to
measure improvements in the process changes if any, in the process,
are documented further revisions are made as needed

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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

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The Deming Cycle or PDCA Cycle (process improvement )

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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

Design and Consumer


redesign Research

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

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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

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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

Capture the market with better quality and lower price

Stay in business

Provide jobs and more jobs

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De g 7 dead D ea e a d S

1. Lack of constancy of purpose


2. Emphasis on short-term profits
3. Over reliance on performance appraisals
4. Mobility of management
5. Overemphasis on visible figures
6. Excessive medical costs for employee health care
7. Excessive costs of warranty and legal costs

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32

Dr. Kaoru Ishikawa

Ishikawa Kaoru, July 13, 1915 April 16, 1989) was


a Japanese organizational theorist, Professor at the
Faculty of Engineering at The University of Tokyo,
noted for his quality management innovations. He is
considered a key figure in the development of quality
initiatives in Japan, particularly the quality circle. He
is best known outside Japan for the Ishikawa or
cause and effect diagram (also known as fishbone
diagram) often used in the analysis of industrial
processes.
Biography

He graduated TATIUC with an engineering degree in applied chemistry.


After graduating he worked as a naval technical officer from 1939-1941.
Between 1941-1947 Ishikawa worked at the Nissan Liquid Fuel Company.
In 1947 Ishikawa started his academic career as an associate professor at the
University of Tokyo.
In 1949, Ishikawa joined the Japanese Union of Scientists and Engineers
(JUSE) quality control research group.
After becoming a full professor in the Faculty of Engineering at The University
of Tokyo (1960) Ishikawa introduced the concept of quality circles (1962) in
conjunction with JUSE.
He undertook the presidency of the Musashi Institute of Technology in 1978.
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Contributions to improvement of quality

User Friendly Quality Control


Fishbone Cause and Effect Diagram - Ishikawa diagram
Implementation of Quality Circles
Emphasized the Internal customer
Shared Vision

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Awards and recognition

1972 American Society for Quality's Eugene L. Grant


Award
1977 Blue Ribbon Medal by the Japanese Government for
achievements in industrial standardization
1982 Walter A. Shewhart Medal
1988 Awarded the Order of the Sacred Treasures, Second
Class, by the Japanese government.

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Kaoru Ishikawa
Dr. Ishikawa believed that everyone in the company needed to be united
with a shared vision and a common goal

He stressed that quality initiatives should be pursued at every level of the


organization and that all employees should be involved

Dr. Ishikawa was a proponent of implementation of quality circles, which


are small teams of employees that volunteer to solve quality problems

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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

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I hika a Fish Bone Diagram

Ishikawa diagrams (also called fishbone diagrams, herringbone


diagrams, cause-and-effect diagrams, or Fishikawa) are causal
diagrams created by Kaoru Ishikawa that show the causes of a specific
event.
Created in 1943 by Professor Kaoru Ishikawa of Tokyo University
A common use of the Ishikawa diagram is in product design, to identify
desirable factors leading to an overall effect
A graphic tool used to explore and display opinion about sources of
variation in a process

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

The Cause Effect Diagram


is basically used to
investigate a problem,
exploring, identifying, and
displaying the possible
causes
The defect is shown as the fish's head, facing to the right, with
the causes extending to the left as fishbones; the ribs branch off the backbone
for major causes, with sub-branches for root-causes, to as many levels as
required.
Ishikawa diagrams were popularized in the 1960s by Kaoru Ishikawa, who
pioneered quality management processes in the Kawasaki shipyards, and in
the process became one of the founding fathers of modern management.
Mazda Motors famously used an Ishikawa diagram in the development of
the Miata (MX5) sports car.
https://www.miata.net/news/nc_debut.html

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Cause-Effect diagram (Fish bone diagram)

Cause Cause

Effect

Cause Cause

Connects effec a d ca e( ) e a ica ih i e


Clarification of relations between effect and cause(s)
Advantages

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

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Disadvantages

Complex defects might yield a lot of causes which might become


visually cluttering
Interrelationships between causes are not easily identifiable

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Purpose of the Cause Effect Diagram
To arrive at a few key sources that contributes most
significantly to the problem being examined

These sources are then targeted for improvement

The diagram also illustrates the relationships among the wide


variety of possible contributors to the effect
Cause-Effect diagram
(Fish bone diagram)

Caus
Cause
e

Effect

Cause Cause

It is developed by Prof. Kaoru Ishikawa


I c ec effec a d ca e( ) e a ica ih i e
Clarification of relations between effect and cause(s)
Ma M (ca e) beh d a be

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
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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

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Ca e: h e i g ee h e ai i g i e
A bank is employing a call answering service

The main goal in erms of q ali is ero ai ing ime


- customers should not get a bad impression
- company vision is to be friendly and have easy access

The question is how to analyze the situation and improve quality


The current process

Customer Receiving
Operator
A Party

Customer
B How can we reduce waiting
time?
Fishbone diagram analysis

Receiving party Absent Working system of


operators

Absent Too many phone


calls
Out of office Lunchtime

Not at desk Absent


Makes
customer
Not giving wait
ece g a Does not
coordinates Lengthy talk understan
Does not know d
Complaining customer
organization
well
Leaving a Takes too much
message time to explain

Customer Operator
Cause-Effect diagram
Why students do not participate in extra-curricular activities?

Why students are not interested in studies?

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Cause-Effect diagram

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55

Joseph M. Juran

Joseph Moses Juran (December 24,


1904 February 28, 2008) was
a Romanian-born American engineer and
management consultant. He was an
evangelist for quality and quality
management, having written several
books on those subjects.
In 1912, Juran emigrated to America with
his family, settling in Minneapolis,
Minnesota. He excelled in school,
especially in mathematics.
In 1924, with a bachelor's degree in electrical engineering from the University of
Minnesota, Juran joined Western Electric's Hawthorne Works.
His first job was troubleshooting in the Complaint Department.
In 1925, Bell Labs proposed that Hawthorne Works personnel be trained in its
newly developed statistical sampling and control chart techniques.
Juran was chosen to join the Inspection Statistical Department, a small group of
engineers charged with applying and disseminating Bell Labs' statistical quality
control innovations. This highly visible position fueled Juran's rapid ascent in
the organization and the course of his later career.

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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.

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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.

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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

Quality Control Handbook, New York, New York: McGraw-Hill,


1951, OCLC 1220529
Eventually published in six editions: 2nd edition, 1962, 3rd edition, 1974, 4th
edition, 1988, 5th edition, 1999, 6th edition, 2010
Managerial Breakthrough, New York, New York: McGraw-Hill, 1964
Management of Quality Control, New York, New York: Joseph M. Juran,
1967, OCLC 66818686
Quality Planning and Analysis, New York, New York: McGraw-Hill, 1970
Upper Management and Quality, New York, New York: Joseph M. Juran,
1980, OCLC 8103276
Juran on Planning for Quality, New York, New York: The Free Press,
1988, OCLC 16468905

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J a 10 steps for quality improvement

Build awareness for the need and opportunity for improvement


Set goals for improvement
Organise people to reach the goals
Provide training throughout the organisation
Carryout projects to solve problems
Report progress
Give recognition
Communicate results
Keep score
Maintain momentum by making annual improvement part of the regular system
and processes of the company
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J a Definition on Quality

Juran defined quality as:


Product performance that results in customer satisfaction
Freedom from product deficiencies, which avoids customer
di a i fac i , i a i ed a fi e f e

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Fitness of Use forms major product traits

1. Quality of design
2. Quality of conformance
3. Availability
4. Safety
5. Field use

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Contributions of Joseph M. Juran

Compelling definitions of quality and the cost of quality (COQ)


Quality Habit
Quality Trilogy
Universal Breakthrough Sequence

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
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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)

Costs of internal failure


I e a fai e c aec a cia ed i h d c -conformities (service failure)
f d bef e he d c i hi ed he c e .
Cost of results from defects that are discovered during the production of product and
service.
Product found to be defective while in production must be either scrapped or repaired.
Cost of producing the items that arte scrapped, cost of repairing, reworking and retesting
defective products and all the costs of delays, paperwork, rescheduling etc.
Scarps
Rework
Downgrading
Retest
Downtime
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Cost of Quality (COQ)

Costs of external failure


E e a fai e c ai ef he ejec i f he d c / e ice b he c e d e
ai .
Cost arise when a defect is discovered after the customer has received the product or
service.
Cost include warranty costs, products liability suits or settlements, the cost of product
returns or recall and lost business and customer goodwill.
Warranty
Returned merchandise
Complaints
Allowances

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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.

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71

J a Quality Trilogy

Juran broke down the requirement for


successful TQM into three major activities, the
quality trilogy: Quality planning, quality control
and quality improvement.
J a Quality Trilogy

Three basic essential process to improve


quality

Quality Quality
Planning Improvement

Quality
Control
JURAN TRILOGY

Quality trilogy starts with fi ha e ai a i g at various


levels of the organization
example
strategic quality planning at top management level
tactical quality planning at middle management level
operational quality planning at junior management level

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JURAN TRILOGY

The second phase is ai c


Phase has a goal to run the process effectively in such a way that
the plans are successfully implemented
The third phase of the trilogy process is ai i e e
of the product and the process
Phase reflects long term thinking and planning by managers as
part of universal breakthrough sequence.

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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
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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

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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.
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Universal Breakthrough Sequence

J a Universal Breakthrough Sequence identifies a set of actions directed


towards achieving major leaps in quality. The following are the steps.
Proof of needs
Project identifications
Organizing for improvements
Diagnostics journey
Remedial action
Resistance to change
Holding onto gains

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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.

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80

Genichi Taguchi

Genichi Taguchi (January 1, 1924 June 2,


2012) was an engineer and statistician. From
the 1950s onwards, Taguchi developed a
methodology for applying statistics to improve
the quality of manufactured goods. Taguchi
methods have been controversial among
some conventional Western statisticians, but
others have accepted many of the concepts
introduced by him as valid extensions to the
body of knowledge.
Taguchi was born and raised in the textile town of Tokamachi, in Niigata
prefecture.
He initially studied textile engineering at Kiryu Technical College with the
intention of entering the family kimono business.
However, with the escalation of World War II in 1942, he was drafted into the
Astronomical Department of the Navigation Institute of the Imperial Japanese
Navy.
After the war, in 1948 he joined the Ministry of Public Health and Welfare,
where he came under the influence of eminent statistician Matosaburo
Masuyama, who kindled his interest in the design of experiments.

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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.

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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.

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Contributions

Taguchi loss function.


The philosophy of off-line quality control .
Innovations in the statistical de ig of e ei e .

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Genichi Taguchi

Dr. Genichi Taguchi was a Japanese quality expert known for


product design
Improvement of quality of products begins at design stage:
focus quality efforts on the design stage
It is initial process not later process
cheaper and easier to make changes during the product
design stage than later during the production process

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

Developed by Genichi Taguchi, it is a graphical representation of how an increase


in variation within specification limits leads to an exponential increase in customer
dissatisfaction.
The common thinking around specification limits is that the customer is satisfied
as long as the variation stays within the specification limits.
If the variation exceeds the limits, then the customer immediately feels
dissatisfied.
For example, if the lower limit is 10, and the upper limit is 20, then a measurement
of 19.9 will lead to customer satisfaction, while a measurement of 20.1 will lead to
customer dissatisfaction.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
87
88

However, Taguchi states that


any variation away from the
nominal (target) performance will
begin to incur customer
dissatisfaction.
In the previous example, if the
measurement indicated 20.1 the
customer will be dissatisfied as it
has crossed the upper control
limit.
Taguchi states that the specification limits do not cleanly separate satisfaction
levels for the customer.
The goal of a company should be to achieve the target performance with
minimal variation. That will minimize the customer dissatisfaction.
A real life example of the Taguchi Loss Function would be the quality of food
compared to expiration dates.

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

Taguchi estimates that 80 % of all defective items are caused


by poor product design
Taguchi originated quality engineering approach: helps
combining engineering and statistical method to reduce cost
of the product
Taguchi methods help to improve quality of the product by
optimizing product design and improving manufacturing
process

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

The ideal value of a product performance characteristic is its


target value
A high-quality product perform near target value consistently
throughout its life span and under all the operating
conditions
Purpose of Taguchi methods is quality improvement and
loss control (quality/process/cost)
Useful during development of product/service designs
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

Failure of a product to meet its target value for a particular


performance is the loss of
society
(short product life, maintenance, repair cost, stress and regrets
of investment on product) as well as for s
organization
(c a e ai , f a ke , fc e )

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

Any deviation from the target value of a quality characteristics


results extra costs and loss to some segment of society
Taguchi defines quality loss in terms of the social loss, loss of
producers and customers
The smaller the value of this social loss, the more desirable is
the product

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)

To establish a Cost of Quality approach:


Identify the activities that generate cost
Measure these activities

Report these activities to management

Analyse these activities to identify areas for


improvement

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

3. Internal Failure Costs

4. External Failure 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

Information System Costs spent to develop data requirements, measurement and


maintenance
Costs

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)

Test and inspection Costs related to incoming materials, work-in-process, finished


costs goods including cost and salaries to inspection and testing staff

Instrument Costs spent on maintenance and repair of instruments, tool


maintenance costs calibration

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 )

Scrap and rework


Costs spent on material and labour
costs
Costs of corrective Costs spent on determining the causes of failures and correcting
action production problems

Revenues lost when selling a product at lower price because it


Downgrading Costs does not meet specifications

Costs spent on unplanned machine downtime or unplanned


Process failure equipment repair

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

Product recall costs and Costs spent on replacement or repair


warranty claims

Product liability costs Costs spent on legal actions and settlements

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

Developed by Parasuraman, Zeithamal and Berry in 1985


Consumer evaluates service quality experience as the
outcome of gap between expected and perceived quality
Model is helpful to identify key issues and to improve
service quality and can help to influence customers
satisfaction
Model identifies 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

Gap 1: Lack of understanding/Knowledge Gap


Gap between consumer expectation and management
perception
Not knowing what consumer expects in a service

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

Gap 2: Lack of development/Standard Gap


Gap between management perception and service quality
specification
Managers are aware of customers expectation but
management might not simply be committed to implement
what is necessary
Cause: may be ignorance, lack of vision, limited resource or
adoption of new strategy, resistance towards change etc.

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

Gap 3: Poor Delivery/Behavior Gap


Gap between service quality specifications and service
delivery
Management understands customers desire and specifies
appropriate set of standards but due to poor employee
performance service delivery may not be appropriate
Employees performance is vital in determining the quality of
service

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

Gap 4: Unrealistic Expectations/Communication Gap


Gap between service delivery and external communication
A gap between customer expectation and service provided
exists because of pre-purchase promotional materials projects
unrealistic level of service which can not be delivered in reality
Consistence is important between quality image projected in
promotional activities and actual quality of service offered

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

Gap 5: Service Gap/Gap between Service & Expectation


Gap between perceived service and delivered service
Occurs when the perception of the organization s service does
not match the service that is expected of the organization.
Expected service is influenced by the organization s external
communication, word of mouth, the personal needs of the
consumers, and consumers past experience with the
organization

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

Customer's assessment of quality includes multiple


perception factors

Reliability: Ability to perform the promised service


consistently and accurately

Responsiveness: Willingness to help customers and provide


prompt service

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

Assurance: Employees knowledge and courtesy and their


ability to inspire trust and confidence

Tangible: Appearance of physical facilities, equipment,


personnel and written materials.

Empathy: Caring, individualized attention given to customers


Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Example how customers judge five dimensions of
service quality
Reliability Responsiveness Assurance Empathy Tangibles

Car Repair Problem Accessible; no Knowledgeabl Acknowledge Repair


(Consumer) fixed the first waiting; responds e mechanics customer by facility,
time and to request name; Trained
ready when remember mechanics,
promised previous waiting area
problems and etc.
preferences
Airline Flights to Prompt and Trusted name; Understanding Aircraft;
(Consumer) promised speedy system good safety of individual and ticket
destination for ticketing; in- records; special needs; counters;
depart & flight baggage competent Anticipate baggage
arrive on handling employees customers need areas etc.
schedule
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Service recovery strategy

Why service recovery strategy important?


Service recovery plays an important role in relationship
marketing.
This approach helps the organizations to keep their existing
customers loyalty level towards their businesses and also
benefit the customers in enjoying a high level of
customer service which is provided by the organizations.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Service recovery strategy

There are five logical steps in the service recovery process:


Anticipating customer needs
Acknowledging customers feelings
Apologizing and owning the responsibility
Offering alternatives
Making amends

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Service recovery strategy

Service failure: refers to not being able to perform


the service that a company has promised

Service recovery: refers to compensating and recovering the


damage that has been done

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)

For goal setting process for comparison with the best.


To motivate & simulate employees in company towards goals of
continuous quality improvement.
To give external orientation of company.
To identifying technological breakthrough.
To search industry best practices.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Evolution of Benchmarking:

In 1800, Francis Lowell, new England industrialist studied about


manufacturing technology in British factory.
Ford create assembly line Toyota practiced JIT system.
Xerox in 1980 won Malcolm Baldrige National Quality Award.
(E.g.) IBM, Motorola, Xerox corp. all used BM.

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

I) Classification based on the object to be Benchmarked:


1. Product Benchmarking
Comparison of different features & attributes of competing product & services.
It is done by Engineering analysis, help to identify activities where improvement
is possible.
Also called customer satisfaction benchmarking or customer value profiling.
2. Performance Benchmarking
Comparison of performance related to business according to activities.
Measures different kind of performance variables like efficiency, productivity,
quality.
- tool to identify different functional area where scope is high.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
3. Process Benchmarking
Refer to comparison of process, identify more effective & efficient process to
implemented.
4. Strategic Benchmarking
To identify competitive position in market place, it help the organization to study
business strategy & use it to become competitive.

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

a) Don go on a fishing expedition.


b) Use company people.
c) Exchange information.
d) Legal concerns.
e) Confidentially.

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

Creates culture the value continuous improvement.


Share best practices between benchmarking partners.
Showing the area which need improvement.
Increase creativity by devaluing the not invented process.
Shift the corporate mind set to strong sense for improvement.
Focus on resource according to performance target set for employee.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Limitations (Weakness)

Best performance is not static but moving target.


Benchmarking not remedy which replace other quality effects which
improve competitive advantage.
It not only improve performance if proper quality program not in place.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Pitfalls of Benchmarking

BM is learning process, apart from developing new & improved


approaches.
If all company initiate BM, then there will be stagnation of ideas,
strategies, practices.
It should not substitute for innovation, it is a improvement tool.

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

5-S contributes to 1. Safety


2. Quality
3. Productivity

5-S Facilities 4. 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 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

A clean and orderly workplace is a pre-requisite for making good


products.
If a factory has poor housekeeping, no further analysis is required to
know it has quality problems.
Poor 5-S causes poor quality in many ways.
Use of wrong parts or materials, especially if they look similar.
Mix-up of rejects and good ones in stores, causing rejects to be
issued to the shop.
Rejects getting mixed in the shop itself, or going to the next line
for further processing and even to the customer.
Some process getting missed altogether, examples : parts
waiting for heat treatment getting mixed up with parts already
heat treated.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Dusty parts or materials getting used to the detriment of
performance or impression of the customer.
Shelf-life expired materials may get used.
Searching for things takes time away from quality
improvement.
Machines wear out faster if they are not free of dust and this
reduces their accuracy and variability causing defectives.
An attitude is generated which say that orderliness, discipline
are not important hence quality also not important.

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

Visual control helps in all areas of 5-S in storage operations and


equipment. They are also powerful aid in ensuring quality and safety.
As part of standardisation, a 5-S manual must be prepared.
This manual must have charts and other visual displays which make
their meaning clear.
Then the manual can be used for training of employees, new and old.
Without the reinforcement through visual-signs, it is not easy to form
habits of 5-S and to back slide.
At the same time putting up poster and signs only without carrying out a
vigorous programme is hallow and will yield no results.

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

The act of thorough cleaning of machines often highlights things that


need attention. Without such cleaning, timely attention may not be
given causing breakdowns.
Lack of punctuality affects the productivity of all members of a work
place even if only one person is late.
Abnormalities which cause production stoppages can be spotted easily.
Eg: A bin without enough materials on the shop floor, or a pile-up of
rejection bins.

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

Take out unnecessary items and throw them away.


Factory floor : scrapped machines, rejected materials, expired
goods, broken tools pallets, trolleys, old notices, etc.
Office : used broken pens useless paper, old diaries broken
furniture, etc.
Home : old clothes, broken toys, broken suitcases, useless tins, etc.

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?

Separate the wanted from the unwanted


Throw away the unwanted items. Do not keep them with a vague idea that they
may be needed in the distant future. If an item has not been used for a year, get
rid of it. Be ruthless about throwing unnecessary things.
Classify every thing by frequency of use.

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

Arrange everything in proper order so that it can be easily picked up or use.

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

Analyse the present situation


Fix storage place
Fix storage method
Keep storage rules

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

Sweep your workplace thoroughly so that there is no dust anywhere.

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

Washing with a strong overtone of keeping things disinfected as well as free of


hazardous

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

Discipline especially with regard to safety rules and punctuality


5-S means everything is its place
People must also be in their place, at the right time, in the right attire.
I i he managemen e pon ibili o ain people o p ac ice 5-S with
disciplines to acquire the habit and to keep it.
If management is not disciplined, then employees would not be either
no the first 4-S would backslide.
Without acquiring the 5-S habits, it is difficult to maintain good 5-S
Lack of SHITSUKE means not following standards. Not only 5-S but all
activities relating to safety and quality will also be affected.

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

To create a neat and clean work place.


To systematic day to day working.
To improve work efficiency.
To standardize work practices.
To improve work discipline.
To improve the quality of work and products.

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

A clean workplace is high in Productivity


A clean workplace produces high Quality
A clean workplace keeps Cost down
A clean workplace ensures Delivery on time
A clean workplace is Safe for people to work
A clean workplace is high in Morale

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

Change for better leads to optimal improvement


Continuous improvement involving every one in the company
The key to Japanese competitive success.
Continuous improvement in personal life, home life, social life and
working life.
KAIZEN activities refer to improvement in the workplace with respect to
quality, cost, delivery and safety.
KAIZEN refers to operational improvements may by people in the
workplace, using their ingenuinity a disciplined problem solving process
and the tools of Q.C.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Concept of KAIZEN

Collective wisdom of people brings infinite results.


Manufacturing Excellence comes from continuous efforts by everyone
to improve their jobs and not through sweeping changes.

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?

Change is required so as to achieve excellence in the technical, management


levels
If e don mo e fo ad e ill mo e back a d
So, we must change our way of thinking and doing jobs.
KAIZEN : THE PHILOSPHY
Assumes that way of life
Working life, Social life, Family life
Deserves to be constantly improved
Dissatisfaction is the mother of all improvements and one must have the
openness of mind which is the prerequisites of KAIZEN.

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

Identify the problem areas.


Start with our problems not those of other areas.
Economic benefit should not be the only criteria.
Establish priority relate the problems to Q.C.D.S.M
Select the problems those not costing much investment
Follow PDCA in problem solving
Report results to concerned department head and copy to TQM office.

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?

Six Sigma is a measurement-based strategy for process improvement.


I a methodology, which aims at improving process and increasing
customer satisfaction (Both internal & external).
The concept behind this approach is to reduce the variation in
processes.
This reduction leads to consistent and desired outcomes from
processes.
Hence, Continuous process improvement with low defects is the goal of
this method.

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

1. Quality Council / Apex council:


Formed by heads with chairman, CEO or MD.
Review the entire six sigma activity, performance of project teams &
effectiveness of solutions & their implementation.
2. Sponsor:
Sponsor the project, review & monitors the day to day activities & suggestions.
3. Champions:
Consists of senior executive with overall responsibility.
Provides vision & decisions related to six sigma activities.
Available for expert people & not the part of project.
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
4. Master Black belts:
Expert like chief engineer, technical heads.
Key role in training & coaching black belt.
Participating in review & monitoring projects.
5. Black Belts:
Team leader who is trained & certified in six sigma.
Responsible for successful project execution.

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

Employee Involvement is backbone for TQM improvement & effective


TQM.
The important area of Employee Involvement are -
i) Employee Motivation.
ii) Employee empowerment.
iii) Recognition and reward schemes.
iv) Teams & teamwork.
v) Performance Appraisal.

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

A. Maslow s Hierarchy of needs

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.

HYGIENE or DISSATISFIERS FACTORS


- Low salary, minimal fringe benefits, poor working conditions, ill defined
Organizational policies and mediocre technical supervisors.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
Motivation

Steps in achieving motivated work force


1. Know thyself
2. Know your employees
3. Establish a positive attitude
4. Share the goals
5. Monitor progress
6. Develop interest in work
7. Communicate effectively
8. Celebrate success.

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

Improve employee morale


Sho he compan app ecia ion fo be e pe fo mance
Create satisfied workforce
Create highly motivated workplace
Reinforce behavioural patterns
Stimulate creative efforts.

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

1. Process Improvement teams:


Focus its attention on improvement of process which already exist in satisfactory level.
This is for each operation or process / sub process, team is limited to work (i.e.) 6 to 10
members.
Based on location of sub process, internal / external supplier, customer include in team.
2. Cross functional teams:
This team formed in top level to solve complex problem.
6 to 10 members from different functional area.
Discuss about complex problem & break it & make team work for solution.
Feedback is gathered & problem solved in all level.

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

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