Total Quality Management
Role of Top Management

Quality System
Employee Involvement Training & Team Work Tools & Techniques

Evolution in Quality Mgmt.
Scientific Management Era




Management/Specialist controls. All problem solving derived from specialist

Direct employees perform tasks

Evolution in Quality Mgmt.


Employee controls the cycle


Management provides the resources of raw material, equipment and training.

Employee Involvement & Team work
Use of Small group improvement projects
Set the scope Measure current status

Identify Quality problem

Identify improvement projects

Project 1

Project 2

Project 3


Project N

Small group improvement using Quality Control Tools

Quality Management Tools
A classification
Quality Control Tools (a) (b) (c) (d) (e) (f) (g) Process Control Charts Histograms Check Sheets Pareto Diagrams Scatter Diagrams Process chart Cause and Effect (Fish bone) Diagram Purpose for which the tool is used Highlighting problems Identifying specific improvement opportunities Analysing problems & their root caus es Operational planning for building quality into products/services New 7 Management tools

(i) Affinity Diagram (j) Relationship Diagram (k) Tree Diagram (l) Matrix Diagram (m) Matrix Data Analysis (n) Process Decision Program Chart (PDPC) (o) Arrow Diagram
QFD , Bench marking

Strategic Planning

An example
Causes for adjustment snags


Causes for Rework


Number of hours spent

60.0 50.0 40.0 30.0 20.0 10.0 0.0 Lack of drawing clarity Tooling problems Process Design issues Vendor related control issues problems

Number of occurences

20.0 15.0 10.0 5.0 0.0 Leakage Missing Fouling Rew orks Poor routing Loose fitting

Categories of problems

Categories of problems

Pareto Diagram
An example

Adjustment Snags Analysis
30.0 Number of occurences 25.0 20.0 15.0 10.0 5.0 0.0 Reworks Leakage Missing Loose fitting Poor routing Fouling 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0
30.0 25.0 20.0 15.0 10.0 5.0 0.0 Design issues

Reworks Analysis
100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Lack of drawing clarity Vendor related problems Tooling problems Process Control Issues Cumulative occurrences (%)

Cumulative occurences (%)

Categories of problems

Number of occurences

Categories of problems

Cause and Effect Diagram
A generic representation
Work methods





Effect Cause

Hindustan Motors - 1035N Dumper
Better Worst Same

Matrix Diagram: An Example

Less Qualifying important

Order Winning

An example

A pair of sensors for fail proof through drilling

Continuous Improvement Approaches

Continuous Improvement
• Continuous improvement
– Refers to constant and positive change in the working conditions in an operating system – Leading to better performance evident from key performance measures

Typical examples of such improvements
– – – – Increase in production with no addition of capacity, Elimination of manpower even when production levels go up No appreciable increase in cost of production even when the volume drops Increase in the velocity of various business processes without any addition of new capacity or technology – Significant reduction in defects – Rework and inventory investments when the production rates go up – An overall increase in the productivity

Improvement in Operations
Alternative Trajectories
• Radical (Step) Improvement
– raises the level of the system substantially at a point in time – Typically happen due to innovations in technology pertaining to the operations & substantial up-gradation of the capacity – Once a radical improvement is made, the system moves to a significantly higher level of performance

Continuous (Ramp) Improvement
– Improvements made in small steps and on a continuous basis through a systematic study of the existing system and changes in the processes and procedures – Does not call for breakthrough innovations, large investment in capacity or radically new technology – Could be applied in several areas of business including manufacturing, business processes in other areas such as marketing, finance and customer and supplier relationship

Hybrid Improvement
– A combination of both in alternating cycles

Improvement of Operations
Alternative trajectories
Performance attribute for the system Performance attribute for the system

Performance attribute for the system



(a) Step improvement

(b) Ramp improvement

(c) Hybrid improvement

Continuous Improvement Process
A framework

Create a context for continuous improvement

Set up a measurement methodology for assessing the quantum of improvement

Closely monitor and recognise the benefits accrued from improvements

Continuous Improvement Cycle

Equip the employees with tools & techniques for continuous improvement

Create appropriate organisational structures for continuous improvement

Continuous Improvement
Creating a context
• Benchmarking Exercises
– Internal benchmarking – Competitor benchmarking – Process Benchmarking

• TPM & TQM Initiatives • International Awards & Certifications • Industry Association initiatives
– IMVP Example – CII’s initiatives in automotive cluster

APQC methodology




Source: Adopted from http://www.apqc.org/portal/apqc/site/generic?path=/site/benchmarking/free_resources.jhtml

Continuous Improvement
Tools & Techniques
• Process Mapping
– A tool to understand various steps involved in performing a business process

• Non-Value Added (NVA) Analysis
– A method by which the relevance of some of the existing activities are questioned

• Business Process Engineering (BPR)
– Fundamental rethinking and radical redesign of processes

• • • •

Kaizen Initiatives Setup time reduction through SMED QC Tools Activity Based Management (ABM)

Process Mapping
Some alternatives… • Customer order “walk through” • Collaborative brainstorming/charting • Bottom-up approach – Interviews of staff in functional departments • Executive judgement

Some guidelines to identify scope
• Extensive information exchange, data redundancy and rekeying of data points to arbitrary fragmentation of a natural process • Large investment in inventory, buffers and other assets indicates that the existing process is unable to cope up with uncertainty • High proportion of checking, control and progress monitoring implies too much fragmentation of the process • Inadequate feedback in the process results in excessive rework and iteration • Increase in complexity of operations, exceptions and special cases also indicate the need for simplifying the process by revisiting the process fundamentals

Business Process Engineering

A three-step methodology
Understand the existing Process Simplify the Process by eliminating NVA Tools used in each step Automate the Process

Implementing BPR

Process Mapping Brainstorming “As-is” analysis

NVA Analysis “Should-be” analysis

EDI ERP Internet tools

Setup Time Reduction

An illustration of results
Changeover time ( in minutes) 1 2 3 4

1. Wyvomatic A 2. Acme Gridley 3. Wyvomatic B 4. Stama Feed Machine 5. Stama Bleed Machine

540 1020

450 315 165 510


180 110

60 65

What is ABM?
• ABM is a management tool to
– Link different functional areas of management to achieve a common goal of enhancing the competitiveness of a firm
• Process view of an organisation is as important as the cost view

– Facilitates continuous improvement process for obtaining operational and strategic benefits

Activity Based Management
Unifies Operations & Costing functions
Cost view


Process Drivers
Process View


Performance Measures

Cost Objects

Organisation for Continuous Improvement
• Task force for continuous improvement • Quality Circles • Small Group Improvement Activity (SGIA) Projects • Visual control aids for improvement

Continuous Process Improvement
Using SGIA Projects
Set the scope Measure current status Product/ Service Identified Map at overall Level; Identify detailed projects

Project 1

Project 2

Project 3


Project N

Explore and Implement improvements for each project

Using Visual Control Aids for continuous improvement: An Example

Using Visual Control Aids for continuous improvement: An Example

Estimated savings per month due to this alone is about Rs. 40,000.

Continuous Improvement
Organisational Challenges
• Resistance to Change • Tangibility of Improvements • Incentive & Rewards Systems

Continuous Improvement
Chapter Highlights
• Organisations make improvements either in a step mode or a gradual mode.
– The step mode improvement happen on account of radical innovations. – On the other hand, gradual mode improvements happen on account of continuous improvements.

• A continuous improvement does not require any radically new technology or product. It concentrates on improving the effectiveness of existing processes in small steps. • There are several ways by which organisations can create a context for continuous improvement of their operations.
– – – – Benchmarking exercises Preparing for international awards and certifications Engaging in TPM and TQM initiatives Working along with other industry partners in cluster mode

New 7management & planning tools
• Affinity diagram Grouping ideas according to family--a creative brain storming tool Interrelations digraph To map logical links of a central idea to more than one idea at a time--- Lateral thinking than linear thinking

Tree diagram • Maps paths & tasks to achieve a goal Matrix diagram • Spread sheet/ graphically displays relations between tasks and functions , House of quality.

Matrix data analysis Matrix in the form of quantitative factor analysis Process decision program chart . maps every conceivable event from problem statement to solution and counter measures. Arrow diagrams PERT/CPM

TQM techniques
• • • • • • • • Bench marking Nominal group technique 5 whys and 1 how Cost of quality QFD(Quality Functon Deployment) FMEA(Failure Modes & effects Analysis) Force field analysis VE/VA(Value engineering & Value analysis

Steps in Nominal Group Technique
• • • • • • • • Read problem statement Problem clarification Silent idea generation Round robin idea generation Idea clarification Idea grouping Individual ranking of first 6 ideas Compilation of idea ranking by all, by Facilitator

Analyses ways of failure of a product and its effect of each mode using 3 criteria on 5 pt scale • severity • Probability of occurence(MTBF) • Ease of detection of failure • Items of higher Total scores are to be dealt with on priority.

Force field analysis
• Kurt Levin in 1920s • To identify the forces (pressures) for and against changes. • Participation and sense of ownership • Forces for forces against • What can be done to strengthen forces for and weaken forces against

• Better value to customer at lower cost • Ex; plastics replacing in automobiles Steps • Gather information • Functional identification’ • Functional analysis • Creative alternatives • analysis &evaluation • Implementation Read Edward de Bono, six thinking hats, penguin,1990

7 wastes
• • • • Overproduction Waiting Transporting Inappropriate processing (poor process capability) • Unnecessary inventory • Unnecessary motion • defects

5S practices
• • • • • • • Table I The 5-Ss in Japanese and English Japanese English Meaning Seiri Structurize Organization Seiton Systemize Neatness Seiso Sanitize Cleaning Seiketsu Standardize Standardization Shitsuke Self-discipline Discipline

• The technique has been practised in Japan for a long time. Most Japanese 5-S practitioners consider the 5-S useful not just their physical environment but for improving their thinking processes as well.

• Seiri…structure. Separate and keep immediately necessary things as few as possible, • Seiton. Neatess. A place for every thing and every thing in its place• quick identification by name, • safe storage, • neatness for notice ,posters

• Seiso..cleaning • Every one from CEO to the opeartor is a janitor. No separate cleaner • Every one will not get things dirty,nor spill,nor scatter litter, • Every one will right away, rewrite things,which got erased

• Seiketsu..standardisation • Repeatedly and continually maintain neatness and cleaning, by visual management. Labelling, colour codes are used • Transparency. Keep things visible. Do not sweep things under the carpet, out of sight

• Shitsuke..Discipline • Creating a habit of dong things in the way supposed to be done. • Self discipline and are important training

5S check points for factory
• • • • • • • • • • Cleaning up machines / equipment Whether fixtures, tools are in their allotted place Whether pallets, tote pans are kept clean Whether work- in- process(WIP) and finished goods(FG) are kept in proper place Whether surrounding work places is clean Whether empty pallets, tote pans are kept in their allotted place Whether machines fans, lights are switched off after work Whether used consumable items like waste not thrown on the floor Whether rusted, dust- covered WIP are sent to next stage or not. Whether walkway/pathway are kept clear without obstacles

5S check points for office
• • • • • • • Floor and surrounding area is clean Telephone and computers are kept clean Furniture, cupboard, table drawers are kept clean and in order Files are kept in labeled folders in file racks In record rooms, files ore kept in order Defective equipments are reported to maintenance department Lights, Fans, computers and AC equipments are switched off after use • Work place is cleaned after work. • Index of files is kept • Answering telephones in pleasant and decent manner.

Implementing 5S
• Top management commitment • Promotional campaign • Keep rcords photos, video before and after 5S • 5S training • Evaluation

Poke yoke
• Fail safe arrangements to prevent defective occurring • Originally devised by Shigeo Shingo • Chances for wrong activity is eliminated • See examples in next slides

An example

A pair of sensors for fail proof through drilling

Poke yoke in Lucas TVS
• 353 poke yoke arrangements have been installed to prevent errors, quality problems and accidents. The bench marking has been done for cellular manufacturing, with world class companies like Mitsbushi and Denso

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