Unit II

TQM Principles

Continued….
PDSA….
 PDSA cycle
 PDSA stands for Plan, Do, Study and Act.
 It is a model for testing ideas that you think may
create improvement
 It is an extremely practical, common sense
based approach that is easy to understand.
 It can be used to test ideas for improvement
quickly and easily based on existing ideas,
research, feedback, theory, review, audit etc.
 It encourages starting with small changes,
which can build into large improvements in the
service through successive quick cycles of
change.
THE PDSA cycle

Act Plan

Study Do
Plan
Plan
 Continuous Process Improvement cycle

Phase I Identify the Opportunity

Phase 7 Phase 2
Plan for the future Analyze the process
Act Plan

Study Do
Phase 6
Standardise the solution Phase 3
Develop the optimal solution(s)

Phae 55Study
Phase Studythe
theresults
results Phase 4 Implementation
 PDSA cycle (1/3)
Plan:
 Define the problem
 Analyze the causes and draft an action plan for
solving the problem
 Determine the quality objectives and the critical
factors
 Define the performance indicators

 Collect and analyze the necessary process data

 Generate possible solutions
 Select the most feasible solution; and work it out.
 PDSA cycle (2/3)
Do:
 First, implement the plan on a limited scale or
conduct an experiment to test the proposed
improvement. Collection data is hereby essential.
 Train all involved employees in the use of quality
improvement methods and techniques
 Describe the process which is considered for
improvement and form project teams to lead the
process.
 PDSA cycle (3/3)
Check:
 Evaluate the trial project with the performance
indicators
 Verify whether the improvement has been successful
or not.
Act:
 Act to implement proven improvements. The choices
are: introduce the plan, adjust or reject it.
 The improvements are documented in standard
procedures so all employees are well-informed on
how to handle in future.
 Usually, the cycle will be repeated under the different
circumstances and conditions to test how consistent
the results are.
 Benefits of the PDSA cycle

 Daily routine management

– for the individual and / or the team;
 Problem-solving process
 Project management
 Continuous development
 Vendor development
 Human resources development
 New product development
 The 5S Method

The 5S practice is a house keeping technique used to

establish and maintain a productive and quality
environment in an organization.
A well-organized work place results in a safer, more
efficient and more productive operation. It boosts
the morale of the workers, promoting a sense of
pride in their work and ownership of their
responsibilities.
5S was invented in Japan, It stands for five Japanese
words that start with letter ‘S’:
SEIRI, SEITON, SEISON, SEKETSU, SHITSUKE
 The 5S Method

 Seiko - Sort ( Tidiness / Proper

arrangement )
 Seiton - Set ( Systematic or
Orderliness )
 Seiso - Shine ( Sweep or cleanliness )
 Seiketso - Standard ( Personal
cleanliness )
 Shitsuke - Sustain ( Self-discipline /
commitment )
 WHAT PROBLEMS DO U COMMONLY
ENCOUNTER AT YOUR WORKPLACE

 HIGH ABSENTEEISM
 HIGH TURNOVER
 DEMOTIVATED EMPLOYEES
 DISORDERED/ CLUTTERED
ENVIRONMENT
 MISTAKES/ERRORS
 THE SOLUTION TO ALL THESE
PROBLEMS IS

5S
 5S

HOUSEKEEPING TECHNIQUE

PRODUCTIVITY AND SAFETY

ENHANCEMENT TECHNIQUE
 IDEA BEHIND 5S

 IN ORDER TO ACHIEVE HIGH LEVELS

OF QUALITY, SAFETY,AND
PRODUCTIVITY, WORKERS MUST HAVE
A CONDUCIVE WORKING
ENVIRONMENT
 WHAT IS 5S?

 Developed by the Japanese

 Housekeeping System
 Helps Create a Better Working
Environment and a Consistently High
Quality Process
 THE 5S PRINCIPLES

 SEIRI – Organisation/Sort out

 SEITON – Orderliness/Systemize
 SEISO – The Cleaning/Shining
 SEIKETSU – STANDARDIZE
 SHITSUKE - Sustain/Discipline
 DISCOVERY OF 5S

 Thirty years ago researchers started

studying the secret of success of
Japanese manufacturing companies
 5S turned out to be the most impressive
"secret"
 The factories were so well organized that
abnormal situations were readily apparent
 DISCOVERY OF 5S

 Equipments were so clean and well

maintained that any problem such as a
loose bolt or leaking oil could be easily
seen
 This passion of cleanliness and
orderliness became a hallmark of
Japanese organizations
 ADVANTAGES OF 5S

 If tools and materials are conveniently

located in uncluttered work areas

 Operators spend less time looking for

items
 This leads to higher workstation efficiency,
a fundamental goal in mass production
 ADVANTAGES OF 5S

 A clean and tidy workplace leads to

greater well being and increased
motivation

 Company image improves

 ADVANTAGES OF 5S

 Health and Safety is ensured

 Machine maintenance
 Quality
 Productivity
 Lean Manufacturing
 ADVANTAGES OF 5S

 RESULTS IN A PLACE EASIER TO MANAGE

 SMOOTH WORKING NO
OBSTRUCTION
 NO DEVIATION, NO PROBLEMS

 B/C EVERYONE KNOWS WHERE THE

THINGS ARE SPPOSEDF TO BE
 ADVANTAGES OF 5S

 TIME SAVING
 QUICK RETRIEVAL
 ACCIDENTS & MISTAKES MINIMIZED
 INCREASES SPACE
 CREATES WORKPLACE OWNERSHIP
 ADVANTAGES OF 5S

 FOUNDATION OF ALL QC TOOLS

 CONTINUOUS QUALITY IMPROVEMENT

 LEAN MANUFACTURING
 KINDERGARTEN OF QUALITY TOOLS &
TECHNIQUES
 ADVANTAGES OF 5S

 VISUAL MANAGEMENT SYSTEM

 VISUAL CONTROL TO SEE THE

ABNORMALITIES
 SIMPLE SIGNALS THAT PROVIDE AN
UNDERSTANDING OF THE
CONDITION( NORMAL/ ABNORMAL)
 A LOOK AT THE PROCESS REVEALS ITS
DIRECTION (RIGHT/WRONG)
 Lean Production

 The latest incarnation of JIT

 Based on Toyota Production System.
 Waste elimination
 Widely used in automotive manufacturing
& other repetitive mfg.
It’s the elimination of waste Everywhere –
while adding customer value…

It’s a mindset & commitment to

achieve a totally waste-free
operation that’s focused on your
customer’s success… achieved
by simplifying and continuously
improving all processes
 From the operations perspective

Lean production cuts costs &

inventories rapidly to free cash, which
is critical

It also supports growth by improving

productivity & quality, reducing lead
times, and freeing huge amounts of
resources.
From the operations
perspective
For example, lean production frees
office and plant space and increases
capacity so companies can

1. Add product lines

2. In-source component production
3. Increase output of existing products
without acquiring new facilities.
KINERGARTEN OF ALL THE
QC TOOLS

 5S IS THE STARTING POINT OF ALL

THE QC TOOLS

 COULD BE SAID AS THE PRE-

REQUISITE OF ALL QC TOOLS
METHODOLOGY
OF 5S
1. ORGANISATION(SEIRI)

 Decide what you need

 Remove unnecessary clutter

 All tools, gauges, materials, classified and

then stored

 Remove items which are broken, unusable

or only occasionally used
 RED
RED TAG TAG
TECHNIQUE
 GIVE STAFF RED LABELS
 ASK STAFF TO GO THROUGH EVERY
ITEM IN THE WORK PLACE
 ASK IF NEEDED & THOSE THAT ARE
NEEDED,IN WHAT QUANTITY
 NOT NEEDED RED TAG IT
 STORE IN THE RED TAG AREA
 RED
For wavering items TAG

 PLACE THE SUSPECTED ITEMS IN THE

RED TAG AREA FOR ONE WEEK
 ALLOW THE STAFF TO REEVALUATE
THE NEEDED ITEMS
 AT THE END OF WEEK THOSE WHO
NEED ITEMS SHOULD BE RETURNED
ORGANISATION

PRIORITY FREQUENCY OF USE HOW TO USE

Low Less than once per Throw away

year Store away
Once per year from the
workplace
Avg. Once per month Store together
Once per week but offline

High Once Per Day Locate at the

workplace
2.
ORDERLINESS(SEITO
N)
 ONCE YOU HAVE ELIMINATED ALL THE
UNNEEDED ITEMS

 NOW TURN TO THE LEFT OVER ITEMS

ORDERLINESS(SEITON)

Organise layout of tools and equipment

 Designated locations
 Use tapes and labels
 Ensure everything is available
as it is needed and at the
“point of use”
ORDERLINESS(SEITON)

Workplace Checkpoints:-
 Positions of aisles and storage places
clearly marked?
 Tools classified and stored by frequency
of use?
 Pallets stacked correctly?
 Safety equipment easily accessible?
 Floors in good condition?
3. SEISO (CLEAN/SHINE)

 Create a spotless workplace

 Identify and eliminate causes of dirt

and grime – remove the need to clean

 Sweep, dust, polish and paint

SEISO (CLEAN/SHINE)

 Divide areas into zones

 Define responsibilities for cleaning

 Tools and equipment must be owned by

an individual

 Focus on removing the need to clean

4. SEIKETSU
(STANDARDISE)

 Generate a maintenance system for the

first three
 Develop procedures, schedules, practices
 Continue to assess the use and disposal of
items
 Regularly audit using checklists and
measures of housekeeping
 Real challenge is to keep it clean
5. SHITSUKE (SUSTAIN /
DISCIPLINE)

 Means inoculate courtesy & good habits

 Driving force behind all 5S
 Deming’s point number 1: Constancy of
purpose
 Make it a way of life
 Part of health and safety
 Involve the whole workforce*
 Develop and keep good habits
LITMUS TEST FOR 5S

 30 SECOND RULE
 ONE MUST LOCATE THE ITEM WITH IN 30
SECOND IF 5S IS PROPERLY
IMPLEMENTED
 ALSO APPLIES TO THE ELECTRONIC
RECORDS RETRIEVAL
 WHAT U HAVE COME
ACROSS
AT THE END OF DAY
Followings can be harnessed form the 5S
1. NEAT & CLEAN WORKPLACE
2. SMOOTH WORKING
3. NO OBSTRUCTION
4. SAFETY INCREASES
5. PRODUCTIVITY IMPROVES
Cont.

6. QUALITY IMPROVES
7. WASTAGE DECREASE
8. MACHINE MAINTENANCE
9. VISUAL CONTROL SYSTEM
10. EMPLOYEES MOTIVATED
11. WORKSTATIONS BECOME SPACIOUS
 Kaizen Technique

 Kaizen- defines the managements role in

continuously encouraging and implementing small
improvements in the individual & organization.
 Break the complex process into sub-processes and
then improve the sub-processes.
 Continuous improvements in small increments make
the process more efficient, controllable and
adaptable.
 Does not rely on more expense, or sophisticated
equipment and techniques.
 Kaizen
 Value and non-value added work activities
 Muda-seven classes of waste
 Principles of motion study and work-cell use
 Principles of materials handling and use of
one-piece flow
 Documentation of standard operating
procedures
 The 5S’s
 Visual displays for communicating to
factory personnel
 JIT- to produce right quantities at right time
and with right resources
 Poka-yoke to prevent or detect errors
 Team dynamics – problem solving, common
conflict resolution.
MUDA is a Japanese term that means "waste.“ There are 7 Mudas or seven
types of waste that can be found in a manufacturing process.
Overproduction: A "just in case" mindset can often lead to overproduction or
storing of extra products, which wastes storage space and production time and
energy. You also have a problem if the customer decides later that they don't
want the item anymore, or there are ordering delays and the product spoils
before delivery.
Inventory: This is the other side of the "overproduction" coin. If you order extra
raw materials so they're available "just in case," that's also wasteful. The order
specs may change, food products may get wasted, or again, the customer may
not want the product anymore.
Defects: Defects and broken products can lead to customer dissatisfaction, and
you spend extra time and money solving the problem, reworking the items, or
paying for the customer to dispose of the waste. Shipping damage is also
considered a defect.
Processing: Also called over-processing, this is where companies expend
more energy to produce their items through wasted movement and time. This
could be a result of extra/unnecessary manufacturing steps, using older and
outdated methods, or not having standard work plans.
Motion: Unnecessary motion can happen as a result of an inefficient process, a
lack of standardized procedures, or even a lack of training for employees.
Wasted motion is a hidden cost because it's not something we can easily see,
but only through careful observation and communicating with the workers.
Transport and Handling: The thing we see the most, since it's our job, is
shipping damage. But this muda is much more than that. It includes pallets not
being properly stretch wrapped (wasted material), or a truck is not loaded to use
floor space efficiently. Even in handling, it can be something as simple as forklift
drivers who need to climb off and on the forklifts to set up or fix a stretch
wrapping machine or using a pallet jack to hand deliver pallets to the stretch
wrapping machine - all wasted motion. 
Waiting: These are bottlenecks in time, usually due to broken machinery, lack
of trained staff, shortages of materials, inefficient planning, or as a result of the
six other mudas. At their worst, they can lead to slowed production, delayed
shipments, and even missed deadlines. At the very least, this is time that is paid
for but unproductive; you're paying people to sit and wait.
 WHAT IS KAIZEN

In simple terms Kaizen is Japanese for

‘a change for better’, which results in
‘continuous improvement’. Kaizen
ideology can be traced back to the 1980’s;
Kaizen was first adopted in the West with
the influx of Japanese car manufacturers
brought a wave of new thinking.
LOGIC OF KAIZEN

Kaizen logics was first appear in written text with

Masaaki Imai’s book ‘KAIZEN - The Key To
Japan’s Competitive Success’ (1996) this book
showed that what the fundamental Kaizen logic is.

Kaizen uses the Japanese logic of bringing

improvements internally from within the
workplace
 KAIZEN BENEFITS
• These continual small improvements add up to major
benefits. They result in improved productivity,
improved quality, better safety, faster delivery, lower
costs, and greater customer satisfaction.
• On top of these benefits to the company, employees
working in Kaizen-based companies generally find
work to be easier and more enjoyable - resulting in
higher employee moral and job satisfaction, and
lower turn-over.
KAIZEN BENEFITS

 Kaizen Reduces Waste in areas such

as employee skills, waiting times,
transportation, worker motion, over
production, excess inventory, quality
and in processes.
KAIZEN BENEFITS

 Kaizen Improves -
product quality, use of capital, production
capacity, communications, Space utilization
and employee retention.
KAIZEN BENEFITS

 Kaizen Provides immediate results. Instead of

focusing on large scale improvements, which
involve capital intensive, Kaizen focuses on
creative investments that continually solve large
numbers of small problems.
KAIZEN BENEFITS

• Kaizen will also improve the capital

projects process, but the real power of
Kaizen is in the on-going process of
continually making small
improvements that improve processes
and reduce waste.
KAIZEN BENEFITS

• By involving employees they start

looking about change at their
environment to bring up results in
there work area. And improved
morale as employee begin to find
work more enjoyable and easier .
KAIZEN BENEFITS

• Kaizen involves every employee in process of

change - mostly in small, incremental changes. It
focuses on identifying problems at their own
source, solving them at their own source, and
changing standards to ensure the problem stays
solved forever.
• It's not unusual for Kaizen to result in 25 to 30
suggestions per employee, every year, and to
have over 90% of those implemented.
KAIZEN BENEFITS

• For example, Toyota is well-known as

one of the leaders in using Kaizen. In
1999 at one U.S. plant, 7,000 Toyota
employees submitted over 75,000
suggestions, of which 99% were
implemented.
Kaizen evaluation
(General guidelines)
Type of Kaizen Marks awarded.
• Innovative Kaizen > 80
• Self initiated 50 to 70
improvements with team
efforts
• Accepting others ideas
40 to 60
for improvements.
• Giving suggestions to
others and getting them
implemented 30 to 50
Criteria 5
Supplier Partnership

 40% product cost comes from purchased

materials, therefore Supplier Quality
Management important
 Substantial portion quality problems from
suppliers
 Need partnership to achieve quality
improvement – long-term purchase contract
 Supplier Management activities
 Criteria 5
Supplier Partnership
 Define product/program requirements;
1. Evaluate potential and select the best suppliers
2. Conduct joint quality planning and execution
3. Require statistical evidence of quality
4. Certify suppliers, e.g. ISO 900, Ford Q1
5. Develop and apply Supplier Quality Ratings
 Defects/Percent non-conforming
 Price and Quality costs
 Delivery and Service
Criteria 6
Performance Measures
 Managing by fact rather than gut feelings
 Effective management requires measuring
 Use a baseline, to identify potential projects, to
asses results from improvement
 E.g. Production measures – defects per million,
inventory turns, on-time delivery
 Service – billing errors, sales, activity times
 Customer Satisfaction
 Methods for measuring
 Cost of poor quality
 Internal failure
 External failure
 Prevention costs
 Appraisal costs (evaluation costs)
 Cost of Quality
 Cost of Achieving Good Quality
 Prevention costs
 costs incurred during product design
 Appraisal costs
 costs of measuring, testing, and analyzing
 Cost of Poor Quality
 Internal failure costs
 include scrap, rework, process failure, downtime,
and price reductions
 External failure costs
 include complaints, returns, warranty claims, liability,
and lost sales
Prevention Costs

 Quality planning
Training costs costs

 costs
costs of
of developing
developing and
and implementing quality
putting on quality management
training programs for
program
employees and management

 Product-design
Information costs
costs
costs of designing products with quality characteristics

costs of acquiring and maintaining data related to quality, and

 Process costs
development of reports on quality performance
 costs expended to make sure productive process conforms to
quality specifications
Appraisal (assessment) Costs
 Inspection and testing
 costs of testing and inspecting materials, parts, and
product at various stages and at the end of a
process
 Test equipment costs
 costs of maintaining equipment used in testing
quality characteristics of products
 Operator costs
 costs of time spent by operators to gar data for
testing product quality, to make equipment
adjustments to maintain quality, and to stop work to
assess quality
 Internal Failure Costs
 Process downtime costs
 Scrap costs  costs of shutting down
 costs of poor-quality productive process to fix
products that must be problem
discarded, including labor,
material, and indirect costs  Price-downgrading costs
 Rework costs  costs of discounting poor-
 costs of fixing defective quality products—that is,
products to conform to selling products as
quality specifications “seconds”
 Process failure costs
 costs of determining why
production process is
producing poor-quality
products
External Failure Costs
 Customer complaint costs
 costs of investigating and
satisfactorily responding to a
customer complaint resulting
from a poor-quality product
 Product return costs
 costs of handling and replacing
poor-quality products returned
by customer
 Warranty claims costs
 costs of complying with product
warranties
 Product liability costs
 litigation costs resulting
from product liability
and customer injury
 Lost sales costs
 costs incurred because
customers are
dissatisfied with poor
quality products and do
not make additional
purchases