Total Quality

Management: Key

Concepts and Gase

Studies

D.R. Kiran

BSP BS Publications
2____ A Unit of BSP Book» Pvt. Ltd., India.

AMSTERDAM • BOSTON • HEIDELBERG • LONDON

NEW YORK • OXFORD • PARIS • SAN DIEGO
SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO
ELSEVIER Butterworth-Heinemann is an imprint of Elsevier
Contents

About the Author xxv

Foreword xxvii
Preface xxix
Acknowledgments xxxi
About the Book xxxiii

1. Total Quality Management: An Overview 1

1.1 What Is Quality? 1
1.2 Quality Definitions 2
1.3 Quotes on Quality 4
1.4 The Scale of Quality 5
1.5 The Paradigm of TQM 6
1.6 How can Effective TQM Change the Situation? 7
1.7 Quality of Design Versus Quality of Conformance 7
1.8 Changing Criteria of Quality 8
1.9 The Five Approaches to Quality 8
1.10 PDCA Cycle 9
1.11 When to Use the PDCA Cycle 11
1.12 Variations of PDCA Terminology 11
1.13 Deming's Fourteen Points to Improve Quality 11
1.14 Deming System of Profound Knowledge 12
1.15 Juran Quality Trilogy 13
1.16 Conclusion 14
Further Reading 14

2. Evolution of Total Quality Management 15

2.1 Introduction 15
2.2 The Historical Development of TQM 15
2.2.1 Operative Quality Control 16
2.2.2 Foreman Quality Control 16
2.2.3 Inspection Quality Control 16
2.2.4 Statistical Quality Control 17
2.2.5 Total Quality Control 18
2.3 Quality Management in the Japanese Scenario 18
2.4 Post-Deming/Juran Quality Scenario 19
2.5 Conclusion 19
Further Reading 20

v
vi Contents

3. Quality Gurus 21
3.1 Wilfredo Pareto 21
3.2 Walter A. Shewhart 22
3.3 Edwards Deming 23
3.4 Joseph Juran 24
3.5 Armand Feigenbaum 25
3.6 Prasanta Chandra Mahalanobis 26
3.7 Shigeo Shingo 26
3.8 Taichi Ohno 27
3.9 Kaoru Ishikawa 27
3.10 Genichi Taguchi 28
3.11 Phillip B. Crosby 29
3.12 Yoshio Kondo 31
3.13 Shigeru Mizuno 31
3.14 YojiAkao 32
3.15 Noriaki Kano 32
3.16 Masaaki Imai 33
3.17 Claus Möller 33
3.18 Blanton Godfrey 33
3.19 Clarence Irwing Lewis 34
3.20 David Garvin 34
3.21 Dorian Shainin 34
3.22 Edward de Bono 35
3.23 Eliyahu M. Goldratt 35
3.24 Eugene L. Grant 36
3.25 Bill Conway 36
3.26 Yasutoshi Washio 36
Further Reading 37

4. Leadership and TQM 39

4.1 What is Leadership? 39
4.2 Definitions for Leadership 40
4.3 Theories of Leadership 41
4.4 Leadership Categories 41
4.5 Leadership and Goal Setting 42
4.6 Characteristics of Quality Leaders 44
4.7 Warren Bennis Principles ofGreat Teams 45
4.8 The Seven Habits of Highly Effective Leaders 45
4.9 The Ten Commandments of cGMPs (Current Good
Manufacturing Practices) 46
4.10 Fifty Insights for CEOs 46
4.11 Fifteen Thoughts of Chanakya 49
4.12 Wilkie's Leadership Qualities 50
4.13 Leadership Responsibilities 50
4.14 Moral Leadership 51
4.15 Contributors for Moral Leadership 51
4.16 Role of Top Management in Quality Management 52
 Contents vii

4.17 Leadership and Knowledge of Psychology 52

4.18 Case Studies on Leadership Qualities 53
4.19 Some Quotations on Leadership 53
4.20 Conclusion 54
Further Reading 55

5. Scientific Management 57
5.1 TQM and Scientific Management 57
5.2 The Industrial Revolution 57
5.3 Evolution of Management Thinking 58
5.4 Phases of Crowth of Management Thinking 58
5.5 Early Pioneers in Management Thinking-Pre-19th Century 58
5.6 Concepts of Scientific Management 59
5.7 Specific Aims of Scientific Management 60
5.8 Advantages of Scientific Management 60
5.9 Misconceptions of Scientific Management 61
5.10 Resistance to Scientific Management 62
5.11 Conclusion 62
Further Reading 62

6. System Approach to Management Theory 63

6.1 Development of System Approach 64
6.2 What is a System? 64
6.3 Definition of a System 64
6.4 Types of Systems 65
6.5 Components of a System 67
6.5.1 Input 68
6.5.2 Conversion Process 68
6.5.3 Output 68
6.6 Elements of Control in System Approach 68
6.7 Effect of Environment on the Systems 69
6.8 Open and Closed Systems 69
6.9 Systems and Subsystems 69
6.10 Relationship Between the Systems and Subsystems 70
6.11 Com bination of Subsystems 71
6.12 The Management Cube 71
6.13 Flanning Pyramid 73
6.14 Summary of the Features of Management as a System 73
6.15 Decision Theory 75
6.16 Problem Analysis and Decision-Making 75
6.16.1 Problem Analysis 76
6.16.2 Decision-Making 76
6.17 Characteristics of Decision-Making 76
6.18 Situations Under Which Decisions are Taken 77
6.18.1 Decision-Making Under Certainty 77
6.18.2 Decision-Making Under Uncertainty 77
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6.18.3 Decision-Making Under Risk 77

6.18.4 Decision-Making Under Conflicts 77
6.19 Classifications of Decisions 77
6.19.1 Organizational and Personal Decisions 77
6.19.2 Routine and Strategie Decisions 78
6.19.3 Pol icy and Operative Decisions 78
6.19.4 Programmed and Nonprogrammed Decisions 78
6.19.5 Individual and Group Decisions 78
6.20 Different Approaches to Decision-Making 79
6.20.1 Intuitive Decision-Making 79
6.20.2 Trial and Error Decision-Making 79
6.20.3 Follow-the-Leader Decision-Making 79
6.20.4 Scientific Decision-Making 79
6.20.5 Systematic Decision-Making 80
6.21 Bias in Decision-Making 80
6.22 Decision Tree 81
6.23 Systematic Decision-Making 82
6.24 Proper Management Decision and Proper
Engineering Design 82
6.25 Conclusion 83
Further Reading 83

7. Strategie Flanning 85
7.1 Introduction 85
7.2 Business Plans 85
7.3 Strategie Flanning 86
7.4 Methodologies for Strategie Flanning 87
7.5 Situational Analysis 87
7.6 Hoshin Kanri 88
7.6.1 Nichijo Kanri 88
7.7 Definitions of Strategie Flanning 89
7.8 Strategie Flanning Elements 90
7.9 Besterfield's Seven Steps of Strategie Flanning 91
7.10 Strategy Development and Strategy Deployment 91
7.11 Effectiveness of the Strategie Flanning 91
7.12 The Four Perspectives for Translating Strategy
into Operating Process 92
7.13 Quality Flanning 93
7.13.1 8 Ms of Resource Inputs 93
7.14 Contingency Theory 94
7.15 Organizing for Strategie Flanning 94
7.16 Leavitt's Diamond 94
7.17 Mission and Vision Statements 95
7.18 Caution in the Application of Strategie Flanning 97
7.19 Conclusion 97
Further Reading 98
 Contents ix

8. Cost of Quality 99
8.1 Introduction 99
8.2 Forces Leading to the Concept 100
8.3 The Categories of Quality Costs 100
8.4 Hidden Quality Costs 103
8.5 Cost of Lost Opportunities 103
8.6 Service Costs 103
8.7 Tangible and Intangible Costs 103
8.8 Visible Costs and Invisible Costs 104
8.9 Quality Cost Data 104
8.10 Case Studies on Research Done in the Area of Quality Costing 105
8.11 Suggested Model for Quality Costing 106
8.12 Sources for Collecting Quality Cost Data 106
8.13 Uses of Quality Cost Analysis 106
8.14 Pareto Principle 107
8.15 Quality Conformance Level 108
8.16 Top Management Role in Containing Quality Costs 108
8.17 Quality and Safety 109
8.18 Responsibility of Top Management for Product Safety 109
8.19 Case Study on Quality Cost 110
8.20 Conclusion 111
Further Reading 111

9. Organization for TQM 113

9.1 Why Organization? 113
9.2 What Needs to Be Organized in the Quality Function? 114
9.3 Principles of Organization 114
9.4 Classes of Organizational Structures 116
9.5 Organization for the Quality Function 117
9.6 Centralized Organization 119
9.7 Decentralized Organization 120
9.8 Matrix Type of Organization 121
9.9 Factors to Be Considered in Deciding the Manpower
Requirement 122
9.10 Size and Type of an Organization 122
9.11 Conclusion 123
Further Reading 123

10. Customer Satisfaction 125

10.1 Seilers'Market Versus Buyers'Market 125
10.2 Customer is King 126
10.3 Position of the Customer in an Organization 126
10.4 Customer's Perception of Quality 127
10.5 Types of Customers 128
10.6 Internal Customers 129
10.7 Customer Satisfaction 130
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10.8 Customer Delight 131

10.9 Kano Model of Customer Satisfaction 131
10.10 American Customer Satisfaction Index 132
10.11 Customer Retention 133
10.11.1 Tips for Customer Retention 133
10.11.2 Profitability Associated With Customer Retention 134
10.12 Customer Loyalty 134
10.13 Factors for Establishing Loyal Customers 135
10.14 Customer Attrition 135
10.15 How Companies Lose Their Customers 136
10.16 Customer Surveys 136
10.17 Customer and Quality Service 137
10.18 The Key Elements of Service Quality 137
10.19 Customer Retention Versus Employee Morale 138
10.20 Action to be Taken to Handle Customer Complaints 138
10.21 Healthy Practices by Customer Focused Organization 139
10.22 Customer Code of Ethics to be Followed 139
10.23 Recently Held International Quality Symposia 140
10.24 Conclusion 140
Further Reading 140

11. Total Employee Involvement 143

11.1 What is Total Employee Involvement? 144
11.2 Motivation 144
11.2.1 Theory X and Theory Y 144
11.2.2 Theory Z 145
11.2.3 Maslow's Theory of the Hierarchy of Basic Needs 145
11.2.4 Herzberg's Two Factor Theory 146
11.2.5 Achieving a Motivated Workforce 146
11.3 Employee Involvement Strategies 147
11.4 Teamwork 148
11.4.1 The Three Elements of Teamwork 148
11.4.2 Categories of Teams Based on Natural Work Units 149
11.4.3 The Basic Functions of the Team 150
11.4.4 Characteristics ofSuccessfuI Teams 150
11.4.5 Some Nicknames for the Nonconducive Team
Members 151
11.5 Empowerment 152
11.5.1 Types of Supervisors as per Harvard Business
School Study 152
11.6 Participative Management 152
11.6.1 Resistance to Change 152
11.6.2 Types of Changes That Usually Meet Resistance 153
11.6.3 Reasons for Resistance 154
11.6.4 Some Criticisms Encountered by Industrial
Engineers From Higher-Ups 154
 Contents xi

11.7 Effect of Worker Representation on Productivity 154

11.8 How to SuccessfuIIy Implement a Change 155
11.9 Theodore Kinni's Eight Tips for Achieving Motivated
Workforce 156
11.10 Benefits of Employee Involvement 156
11.11 Role of Senior Management in Employee Involvement 157
11.12 Recognition and Rewards 158
11.13 Forms of Recognition and Rewards 158
11.14 Criteria for Effective Recognition of Employees 159
11.15 Advantages of Effective Rewarding Systems 159
11.16 Conclusion 159
APPENDIX A Case Study on Worker Involvement 160
Further Reading 161

12. Supplier Partnership 163

12.1 Introduction 163
12.2 Traditional Versus TQM Oriented Vendor Relations 164
12.3 Partnership Definition 164
12.4 Strategie Partnership 165
12.5 Principles of Customer/Supplier Relations 166
12.6 The Three Primary and Necessary Requirements for
Partnering 167
12.7 Multiple Supplier Partnership 167
12.8 Advantages of Supplier Partnership 168
12.9 Supplier Selection 168
12.10 Vendor Rating 169
12.11 Criteria for Evaluation 169
12.12 The Partnership Indices 171
12.13 Supplier Certification 172
12.14 Benefits of Supplier Rating 172
12.15 Lean Inspection Through Supplier Partnership 173
12.16 Vendor Managed Inventory 173
12.17 Retailer Supplier Partnership 173
12.18 Impact of Supplier Partnership on Inventory Norms 174
12.19 Conclusion 174
Further Reading 175

13. Total Productive Maintenance 177

13.1 Introduction 177
13.2 The Meaning of TPM 178
13.3 Evolution of TPM 178
13.4 Definitions of TPM 179
13.5 TPM is an Extension of TQM 179
13.6 TPM Starts With Cleaning 180
13.7 The Seven Types of Abnormalities 181
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13.8 The Eight Pillars ofTPM 182

13.9 The Five Zeros of TPM 183
13.10 Why Operatives Fail to Adapt TPM as a Way of Life? 183
13.11 What Can TPM Achieve? 184
13.12 Overall Equipment Effectiveness (OEE) 184
13.13 The Six Losses From Poor OEE 185
13.14 TheThree Levels of Autonomous Maintenance in TPM 185
13.15 The Five Goals ofTPM 185
13.16 Procedure for the Implementation ofTPM 187
13.17 Maintenance Work Sampling 188
13.18 Conclusion 188
Appendix 189
Checklist for JIPE's Productive Maintenance Excellence Award 189
Further Reading 192

Quality Awards 193

14.1 Why Quality Awards? 193
14.2 International Quality Awards 194
14.3 International Quality Award Trio 196
14.4 Deming Application Prize 196
14.4.1 Qualifications and Criteria Specified
byJUSE for the Deming Prize 196
14.4.2 Check List for Deming Application Prize 197
14.5 Malcolm Baldrige National Quality Award 199
14.5.1 Criteria for the Performance Excellence Framework 199
14.5.2 Organizations/Individuals Involved in the
Awarding Process 201
14.6 European Quality Prizes 202
14.6.1 Categories of the Award 202
14.7 Australian Business Excellence Award 203
14.8 Canadian Award for Business Excellence (CABE) 203
14.9 Rajiv Gandhi National Quality Award 204
14.9.1 Assessment Criteria 204
14.9.2 Eligibility of Organizations for This Award 205
14.10 Golden Peacock National Quality Award 205
14.11 IMC-Ramakrishna Bajaj National Quality Award (lMCRBNQA) 205
14.12 China Quality Award 206
14.13 National Quality/Business Excellence Awards in Different
Countries 206
14.14 Basic Differences Among the Award Trio 206
14.15 Conclusion 207
Appendix 14.1 Recipients of Deming Application Prizes From 1998 207
Appendix 14.2 Some International Awards Including
Quality Awards 208
Appendix 14.3 Recipients of Rajiv Gandhi National Quality Award 210
Appendix 14.4 Recipients of NIQR Awards in 2014 210
Appendix 14.5 Recipients of Golden Peacock Awards 211
Further Reading 212
 Contents xiii

15. Quality Circles 213

15.1 What is a Quality Circle? 213
15.2 Origin of Quality Circles 213
15.3 The American Scenario 214
15.4 The Indian Scenario 214
15.5 Significance of Quality Circles 215
15.6 Objectives of Quality Circles 215
15.7 Nature of Problems That Can be Solved by Quality Circles 215
15.8 Ten Conditions for Successful Quality Circles 216
15.9 Road Map to be Followed in a Quality Circle Meeting 216
15.10 Characteristics of an Effective Quality Circle Meeting 216
15.11 Structure of a Quality Circle 217
15.12 Conclusion 218

16. Fundamentals of Statistics—Part I 219

16.1 Definition of Statistics 220
16.2 Role of Statistics in Analysis 220
16.3 Limitation of Statistics 221
16.4 Elements of Statistical Techniques 221
16.5 Methods of Collecting Data 221
16.6 Data Classification 222
16.7 Data Presentation 222
16.8 Population Versus Sample 223
16.8.1 Population 223
16.8.2 Sample 223
16.9 Attributes and Variables 224
16.10 Graphs 224
16.10.1 Principles of Graph Construction 224
16.10.2 Class Interval 224
16.10.3 Class Limits 224
16.10.4 Class Mark 225
16.11 Single Dimensional Diagrams—Bar Charts 225
16.11.1 Simple Bar Charts 225
16.11.2 Component Bar Charts 225
16.11.3 Percentage Component Bar Chart 226
16.11.4 Multiple Bar Charts 226
16.11.5 Dimensional Diagrams 226
16.11.6 Pie Diagrams 227
16.11.7 Doughnut Diagrams 227
16.11.8 Pictograms 228
16.12 Innovative Graphs 228
16.13 Frequency Graphs 228
16.13.1 Histograms 228
16.13.2 Frequency Polygon 229
16.13.3 Frequency Curve 229
16.14 Ogive 229
16.15 "Z" Chart 230
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16.16 Lorenz Curves 231

16.16.1 Application of Lorenz Curves 232
16.17 Frequency Distribution 233
16.18 Central Tendency 233
16.19 Measures of Central Tendency 234
16.20 Mean or an Average 235
16.21 Arithmetic Mean 235
16.21.1 Characteristics of Arithmetic Mean 236
16.21.2 Advantages of Arithmetic Mean 236
16.21.3 Disadvantages of Arithmetic Mean 236
16.22 Geometrie Mean, Quadratic Mean, and Harmonie Mean 236
16.23 Median 237
16.23.1 Definition 237
16.23.2 Calculation from Ungrouped Data 237
16.23.3 Calculation from Grouped Data 237
16.23.4 Characteristics of Median 237
16.23.5 Advantages of Median 238
16.23.6 Disadvantages of Median 238
16.24 Mode 238
16.24.1 Definition 238
16.24.2 Characteristics of Mode 238
16.24.3 Advantages of Mode 238
16.24.4 Disadvantages of Mode 238
16.25 Dispersion 239
16.26 Range 239
16.26.1 Characteristics of Range 239
16.27 Mean Deviation 239
16.27.1 Characteristics of Mean Deviation 240
16.27.2 Computation of Mean Deviation 240
16.28 Standard Deviation 240
16.28.1 Computation of a from Ungrouped Data 240
16.28.2 Computation of a from Grouped Data 240
16.28.3 Characteristics of Standard Deviation 241
16.29 Skewness 241
16.30 Kurtosis 241
16.31 Conclusion 242
Further Reading 242

17. Fundamentals of Statistics—Part II 243

17.1 Correlation 243
17.1.1 Scatter Diagram 244
17.1.2 Coefficient of Correlation 245
17.1.3 Types of Correlation 245
17.2 Regression 247
17.3 Relation Between Correlation and Regression 247
17.4 Sampling Theory 248
17.4.1 Introduction 248
 Contents xv

17.4.2 Random NumberTables 249

17.4.3 The Sampling Process 249
17.4.4 Sampling Methods 249
17.4.5 Factors for Selection 250
17.4.6 Frequency of Sampling 250
17.4.7 Estimating the Sample Size 251
17.4.8 Factors that Influence the Sample Size Include 251
17.5 Probability 251
17.6 Laws of Probability 252
17.6.1 The Law of Addition 252
17.6.2 Mutually Exclusive Versus Mutually NonExcIusive 252
17.6.3 Law of Multiplication 253
17.6.4 Law of Conditional Probability 253
17.7 Conclusion 253
Further Reading 254

18. Process Capability 255

18.1 Statistical Process Control 255
18.2 Why Control Charts? 256
18.3 Reasons for Variations 256
18.4 Process Capability 257
18.5 Process Capability Index 257
18.6 One-Sided and Two-Sided Specifications 257
18.7 Taguchi Capability Index 258
18.8 Recommended Minimum Values of Cpk 258
18.9 Conclusion 259
Further Reading 259

19. Inward Inspection 261

19.1 Definitions of Inspection 261
19.2 Objectives of Inspection 262
19.3 Steps Involved in Inspection 262
19.4 Classifications of Inspection Methods 263
19.5 Source Inspection 264
19.6 Inward Inspection 264
19.7 Single and Double Sampling Inspection 265
19.8 In Process Inspection and Final Inspection 266
19.9 Tools of Inspection 268
19.10 Normal Jobs of a Quality Control lnspector 269
19.11 Requirements of an lnspector 269
19.12 Conclusion 270
Further Reading 270

20. Seven Traditional Tools of TQM 271

20.1 Introduction 271
20.2 Check Sheets and Checklists 272
xvi Contents

20.3 Histogram or Bar Graph 275

20.4 Scatter Diagram 277
20.5 Control Chart 278
20.6 Pareto Principle 279
20.7 Cause and Effect Diagram 280
20.7.1 Categories of Cause and Effect Diagrams 280
20.7.2 Basic lllustrations of Cause and Effect Diagrams 281
20.8 Flow Charts 282
20.8.1 Symbols Used in Flow Charts 282
20.8.2 The Benefits for Process Flowchart 283
20.8.3 Operation Process Chart 284
20.8.4 Flow Diagram 285
20.9 Conclusion 285
Appendix 285
Process Chart 285
Outline Process Chart 286
Flow Process Chart 286
Flow Diagram 288
Further Reading 290

21. The Seven Modern Tools of TQM 291

21.1 The Seven Traditional Tools of TQM 292
21.2 The Seven Modern TQM Tools 292
21.3 Affinity Diagram (Kj Method) 292
21.3.1 Guidelines 293
21.3.2 How to Conduct an Affinity Sort 293
21.3.3 Checklist 293
21.4 Interrelationship Diagraph 294
21.4.1 Objectives.of the Interrelationship Diagraph 295
21.4.2 Procedure for Constructing an Interrelationship
Diagraph 295
21.5 Tree Diagram 296
21.5.1 Event Tree Analysis 297
21.5.2 Fault Tree Analysis 297
21.6 Prioritization Matrix 298
21.6.1 Simple Prioritization Matrix vs. Weighted
Prioritization Matrix 298
21.6.2 When to Use a Prioritization Matrix 299
21.6.3 The 4 Basic Steps Involved in Creating
a Prioritization Matrix 299
21.6.4 Symbols Used in the Prioritization Matrix 299
21.6.5 WSA's 6-Step Detailed Procedure to Create
a Prioritization Matrix 300
21.7 Process Decision Program Chart 302
21.7.1 Steps in Drawing a PDPC 304
21.8 Activity Network Diagram 304
21.9 Single Minute Exchange of Dies 304
 Contents xvii

21.9.1 The Factors to Bear in Mind Before Working for SMED 306
21.9.2 Internal and External Activities 306
21.9.3 Factors Stressed Upon by Shigeo Shingo,
the Originator of SMED 306
21.9.4 Benefits of SMED per Shigeo Shingo 307
21.10 Force Field Analysis 307
21.11 Criteria Rating Form 308
21.12 Models That Can be Used to Represent a Problem 309
21.13 Other Analytical Testing Methods for Safety 310
21.14 Conclusion 311
Further Reading 311

22. Kaizen and Continuous lmprovement 313

22.1 What is Kaizen? 313
22.2 Significance of Kaizen in Continuous lmprovement 314
22.3 Why Continuous lmprovement? 314
22.4 Some lllustrations of the Continuous Process
Improvements 316
22.5 Kaizen is the Umbrella 316
22.6 Requirements for Continuous lmprovement 317
22.7 Industrial Engineering Principles vs. Kaizen Principles 317
22.8 Importance of Creativity 317
22.9 Creative Methodology 319
22.10 The Principles of Creativity 319
22.10.1 Divide and Conquer 319
22.10.2 Set Quotas and Deadlines for Yourself 320
22.10.3 LetYour Mind Loose 320
22.10.4 Blue Sky Thinking 320
22.10.5 Two Heads are BetterThan One 320
22.10.6 Question Each and Every Detail 321
22.11 Brainstorming 321
22.11.1 When to use Brainstorming 322
22.11.2 Freewheeling vs. Round Robin 322
22.11.3 Techniques of Brainstorming 322
22.12 Six Thinking Hats 323
22.13 Primary and Secondary Questions 323
22.14 Develop 324
22.15 Define 326
22.16 Install 326
22.17 Maintain 328
22.18 Checklist for Operation Examination 328
22.19 Other Continuous lmprovement Techniques 330
22.20 Case Studies on Kaizen Applications 330
22.21 Some Quotations on Change 331
22.22 Conclusion 332
Further Reading 332
xviii Contents

23. 5S 333
23.1 Introduction 333
23.2 Expianation of the 5Ss 334
23.2.1 Seiri (Structuring—Distinguish Between
the Necessary and the Unnecessary—Adopt
Red Tagging) 334
23.2.2 Seiton: Systemize: (Or PEEP, A Place
for Everything and Everything in its Place) 336
23.2.3 Seiso (Shine, Sweep or Sanitize—Look for
Ways to Keep the Workplace Neat) 338
23.2.4 Seiketsu (Standardize—Keep the Workplace
as per the Estabiished Standards) 339
23.2.5 Shitsuke (Sustain the 55 Practices
by Work Discipline—Fol low the Rules) 340
23.2.6 Significance of Shitsuke in 5S 341
23.3 9-Step Procedure for Implementing 5S 342
23.4 5S Audit Sheet 342
23.5 An Easy Way of Remembering the 5S Terms 344
23.6 Conclusion 345
Further Reading 346

24. Six Sigma 347

24.1 Introduction 347
24.2 Definitions of Six Sigma 348
24.3 History of Six Sigma 348
24.4 Required Skills for Black Beited Experts in Six Sigma 349
24.5 The Conceptof Six Sigma in the Context of TQM 349
24.6 Origin of This Confusion Between Statistical 6a
and TQM Six Sigma 351
24.7 Six Sigma According to General Electric 352
24.8 The Values of the Defect Percentages 353
24.9 Methodologies for Six Sigma 354
24.10 DMAIC Methodology for Six Sigma 354
24.11 DMADV 354
24.12 Detailed Methodology of DMAIC 355
24.12.1 Define 356
24.12.2 Measure 356
24.12.3 Analyze 356
24.12.4 Improve 357
24.12.5 Control 357
24.13 Organizing for Six Sigma 358
24.14 Software Used for Six Sigma 359
24.15 The Gase Study of Mumbai Dabbawalas 359
24.16 Conclusion 361
Further Reading 361
 Contents xix

25. Lean Management 363

25.1 What is Lean Management? 363
25.2 Components of Lean Management 365
25.3 Definitions on Lean Management 365
25.4 Evolution of Lean Concept 366
25.5 The House of Lean Management 367
25.6 What can Lean Management Achieve? 367
25.7 Increased Reliability with Lean Management 368
25.8 The Eight Losses in Manufacturing Leading
to Lean Management 369
25.8.1 Manufacturing Reliability 369
25.8.2 Partnership Between
Operations—Mai ntenance—Engi neeri ng 369
25.8.3 Elimination of Root Cause of the Problem 369
25.8.4 Storage 369
25.8.5 Integration and Application of Increased
Knowledge and Skills 369
25.8.6 Over Manufacturing 369
25.8.7 Over Maintenance 369
25.8.8 Use of New Technology 370
25.9 The 5 Key Drivers in Lean Management System 370
25.10 The 8 Ps of Lean Thinking 370
25.11 Lean Enterprise Implementation Processes and Tools 370
25.12 Road Map for Lean Management 371
25.13 Illustration of a Pit Shop Maintenance Situation 371
25.14 Conclusion 372
Further Reading 372

26. Failure Modes and Effects Analysis 373

26.1 Uncertainties Düring Development 373
26.2 Failure Modes and Effects Analysis 374
26.3 History of the Development of FMEA 374
26.4 Multiple Causes and Effects Involved in FMEA 375
26.5 Types of FMEA's 375
26.6 When to Use FMEA 376
26.7 Basic Terms of Reference in FMEA 377
26.7.1 Failure Mode 377
26.7.2 Failure Cause 377
26.7.3 Failure Effect 377
26.7.4 Severity Factor 378
26.7.5 Probability of Occurrence 379
26.7.6 Ease of Detection 380
26.8 Risk Priority Number 381
26.9 Procedure for FMEA 381
26.10 Responsibility for Action 386
26.11 Benefits of FMEA 386
26.12 FMEA Software 388
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26.13 Conclusion 388

Further Reading 389

27. Reliability Engineering 391

27.1 Functional Reliability 391
27.2 General Causes for Poor Reliability 392
27.3 Distinguishing Between Quality and Reliability 392
27.4 WhatisRBM? 392
27.5 Bath Tub Characteristics 393
27.6 Basics of RBM 395
27.7 Principles of Reliability Engineering 395
27.8 House of Reliability 396
27.9 Types of Failures 397
27.10 Severity of Failures 397
27.11 Statistical Distribution Curves of Failures 397
27.12 Probability Density Function 400
27.13 Procedure of Establishing Reliability Based
Product Quality 401
27.14 Reliability Prediction 402
27.14.1 Ingredients for Reliability Prediction 402
27.14.2 Purposes of Reliability Prediction 402
27.15 Monte Carlo Simulation 403
27.16 Markov Analysis 404
27.17 Conclusion 404
Further Reading 404

28. Business Process Reengineering 405

28.1 Flistory of Business Process Reengineering 405
28.2 Definitions of Business Process Reengineering 406
28.3 Business Process Reengineering as a TQM Technique 406
28.4 The Role of Information Technology 408
28.5 Methodology for BPR 408
28.6 Process Reengineering Life Cycle Approach for BPR 410
28.7 Criticism Against BPR 411
28.8 Satisfactory Underperformance 411
28.9 The Sweet and Sour Cycle 413
28.10 Business Process Management 413
28.11 Conclusion 414
Further Reading 414

29. Benchmarking 415

29.1 What is Benchmarking? 415
29.2 Definitions for Benchmarking 415
29.3 Types of Benchmarking 416
29.4 Some of the Parameters That Can
be Benchmarked 417
 Contents xxi

29.5 General Concept of Benchmarking 418

29.6 Phases of Benchmarking 418
29.7 Stage of Benchmarking 419
29.8 Different Approaches to Benchmarking 420
29.9 Tips for the Consultants 421
29.10 Costs of Benchmarking 422
29.11 Advantages of Benchmarking 422
29.12 Limitations of Benchmarking 422
29.13 Professional Associations and Institutions Exclusively for
Benchmarking 422
29.14 Conclusion 423
Appendix 423
Further Reading 424

30. Quality Function Deployment 425

30.1 Why Quality Function Deployment? 425
30.2 Definitions of QFD 426
30.3 History of QFD 427
30.4 IssuesThatWould be Addressed by QFD 429
30.5 The Four Phases of QFD 429
30.6 Building a House of Quality 431
30.7 Voice of the Customer 431
30.7.1 How to Get Information From the Customers? 432
30.8 Voice of the Organization 433
30.9 Framework for House of Quality 433
30.10 Building Up of House of Quality 434
30.11 Procedura for QFD 435
30.12 Benefits of QFD 436
30.13 Conclusion 436
Further Reading 437

31. Quality Loss Function 439

31.1 What is Quality Loss? 439
31.2 Precision vs. Accuracy 440
31.3 History of the Development of the Concept of the
Loss Function 441
31.4 Taguchi Philosophy 441
31.5 Quality Loss Function 442
31.6 Off-Line Quality Control Rule for Manufacturing 443
31.7 Design of Experiments 443
31.7.1 Outer Arrays 443
31.7.2 Management of Interactions 443
31.8 Robustification 444
31.9 Noise Variables 444
31.10 Case Study 444
31.11 Conclusion 444
Further Reading 445
xxii Contents

32. Design for Quality 447

32.1 Design for Quality 447
32.2 Design for Six Sigma 449
32.3 Acronyms for Methodologies Akin to DMAIC 449
32.4 DMADV 450
32.4.1 Define Phase 450
32.4.2 Measure Phase 450
32.4.3 Analyze Phase 450
32.4.4 Design Phase 451
32.4.5 Verify Phase 451
32.5 Scope of DFSS 452
32.6 Six Sigma Versus DFSS 452
32.7 Benefits of DFSS 452
32.8 Conclusion 453
Further Reading 453

33. Value Engineering 455

33.1 What is Value Engineering? 455
33.2 Definitions of Value Engineering 456
33.3 History of Value Engineering 457
33.4 What is Value? 457
33.5 Value Analysis 458
33.6 Objectives of Value Engineering 458
33.7 Typical Benefits of Value Engineering Projects 458
33.8 Functions of a Product as the Customer Wants It 459
33.9 Functional Value of a Product Versus Other Values 459
33.10 Methodology of Value Engineering 460
33.10.1 General Phase 460
33.10.2 Information Phase 460
33.10.3 Function Phase 460
33.10.4 Investigation and Creative Phases 461
33.10.5 Evaluation Phase 461
33.10.6 Recommendation and Follow-Up Phases 462
33.10.7 DARSIRI Methodology for Value Analysis 462
33.11 Function Analysis System Technique 462
33.12 Case Study 462
33.13 Conclusion 469
Further Reading 469

34. ISO 9000 Quality Systems 471

34.1 Need for Quality Management Systems 472
34.2 International Organization for Standardization 472
34.3 ISO 9000 Series of Quality Standards 472
34.4 Evolution of ISO 9000 Family of Standards 472
34.5 ISO/TS16949 474
34.6 QS-9000 Series 474
 Contents xxiii

34.7 Requirements as Specified by ISO 9000 475

34.8 Bureau of Indian Standards 477
34.9 Vision and Mission Statement 477
34.9.1 Characteristics of a Vision Statement 478
34.9.2 General Guidelines in the Formulation
of a Vision Statement 478
34.9.3 Extracts From Some of the Vision Statements
of Famous Companies Are lliustrated in the
Following Section 479
34.9.4 Seven Tips on How to Write the Business
Vision Statement 479
34.10 Mission Statement 479
34.10.1 Features of Mission Statement 479
34.10.2 A Clear Mission Statement Would 480
34.10.3 Five Steps for Drafting a Mission Statement 480
34.11 Objectives, Goals, and Action Plans 480
34.12 SOP—Standard Operating Procedures 481
34.13 Specific Features of ISO 9004 481
34.14 Steps to be Followed for Getting ISO Certification 482
34.15 Benefits of ISO 9001-2000 and TS 16949 Quality Systems 482
34.16 ISO 9000:2005 483
34.17 2015 Revision of ISO 9000 Series 483
34.18 The Six Stages of the Release of the 2015 Revision 484
34.19 Revision of ISO 9000 in 2015 484
34.20 Conclusion 485
Further Reading 485

35. ISO 14000 Quality Systems 487

35.1 Introduction 487
35.2 Evolution of the ISO Standards on Environmental Issues 488
35.3 Global Environmental issues 489
35.4 Magna Carta on Environment 489
35.5 International Initiatives on Environmental Issues 490
35.6 Evolution of ISO 14000 Series 491
35.6.1 Formation ofTC207 491
35.6.2 What is ISO 14001? 492
35.7 Water Footprint 493
35.8 The Benefits of ISO 14000 493
35.9 Engineer's Role in Environment Protection 494
35.10 Principles of Green Design 494
35.11 Basic Approaches for Resolving Environmental Problems 495
35.11.1 CostOblivious Approach 495
35.11.2 Cost-Benefit Approach 495
35.12 Guidelines for Social Responsibility 496
35.13 5 Rs of Wastage Utilization 496
35.14 Conclusion 497
Further Reading 498
xxiv Contents

36. Terminology Used in Japanese Management Practices 499

36.1 Introduction 499
36.2 Some of the Terminologies Cited in This Chapter 500
36.3 History of Development of Japanese Management Practices 501
36.4 Quality Circles 501
36.5 Kaizen 501
36.6 GenchiCenbutsuGenjitsu 502
36.7 Monozukuri and Hitozukuri 502
36.8 Nemawashi 502
36.9 Heijunka 502
36.10 3 Mu Checklists 502
36.11 Four Wives and One Husband 503
36.12 CREW 504
36.13 5 Management Objectives of Factory Management 504
36.14 5 Zus 505
36.15 PokaYoke 505
36.16 Andon and Hanedashi 505
36.17 Jidhoka 505
36.18 ChakuChaku 506
36.19 5 S 506
36.20 Six Sigma 506
36.21 GembaWalk 507
36.22 WarusaKagen 507
36.23 Single Minute Exchange of Die 507
36.24 Just in Time 507
36.25 Kanban 508
36.26 HoshinKanri 508
36.27 NichijoKanri 509
36.28 Rata 509
36.29 Total Productive Maintenance 509
36.30 Pecha-kucha 509
36.31 DakaraNani 510
36.32 Kanso, Shizen, and Shibumi 510
36.33 OkyaKusoma 510
36.34 Conclusion 510
Further Reading 511

Annexure 513
Bibliography 529
Index 533