Module 4

Total Quality Management

Evolution of quality, Definition, Concept and
Features of TQM, Eight building blocks of TQM.
TQM tools - Benchmarking: Definition, concepts, benefits, elements,
reasons for
benchmarking, process of benchmarking, FMEA, Quality Function Deployment
(QFD) – House of Quality, QFD Process, Benefits, Taguchi Quality Loss Function,
Quality Circles. Total Productive Maintenance (TPM) – Concept and need.
Meaning of Quality
Quality
• A modern definition of quality derives from Juran's "fitness for intended use." This definition
basically says that quality is "meeting or exceeding customer expectations." Deming states
that the customer's definition of quality is the only one that matters.
Definition of Quality
• Quality is a state in which value entitlement is realized for the customer and provider in
every aspect of the business relationship.
• Quality is considered an ‘order qualifying’ and not an ‘order winning’ attribute of the product
or service.
• ‘Value’ represents economic worth, practical utility and availability for both the customer and
the company that creates the product or service. ‘Value entitlement’ means
• For the customer – a rightful level of expectation to buy high-quality products at the lowest possible cost.
• For the provider – a rightful level of expectation to produce quality products at the highest possible profits.
• The philosophical leaders of the quality movement, notably Phillip Crosby, W. Edward Deming, and Joseph S Juran provide different
perceptions to the concept of quality.
• Quality refers to how good something is compared to other similar
things.
• Quality in business
• In business, manufacturing, and engineering, the term has a
pragmatic interpretation as the superiority or non-inferiority of
something. It also refers to a product as ‘fit for purpose,’ while at the
same time satisfying consumer expectations.
• Quality is mostly a subjective and perceptual attribute. Different
people may not have the same understanding of the meaning of the
term.
Full Name of the Authors
Phillip Crosby, W. Edward Deming, and Joseph S Juran,
Kaoru Ishikawa, Mitchell Feigenbaum
Features or Attributes of Quality (Brief Explanation is
required)
• Freshness
• Reliability
• Durability
• Safety
• Environmental Friendly
• Serviceability
• Aesthetics
• Attribute Consistency
Evolution of Quality
Note: The North Atlantic Treaty Organization (NATO)
Mil- Std – Military Standard
QC: Quality Circles
QA: Quality Assurance
QM: Quality management
What is a Quality Circle?
• A quality circle is a group of employees whose assignment is to
identify problems, formulate solutions, and present their results to
the management with suggestions for implementation.
• A quality circle or quality control circle is a group of workers who do
the same or similar work, who meet regularly to identify, analyse and
solve work-related problems.
• The QC is a small group that voluntarily performs quality control
activities within the shop, where its members work, the small group
carrying out its work continuously as part of a company-wide
programme of quality control, self development, mutual
development, flow control and improvement within workshop.
• QC aims at product quality, Individual and group development.
Quality Circles Structures
• The support structures usually consists of a steering committee of top
management officials, facilitators, circle leaders and circle members
Steering Committee
Facilitators
Circle Leaders Explanation is required
Circle Members
Quality Circles
• A quality circle is a group of employees that meets regularly to solve problems
affecting its work area. Generally, 6 to 12 volunteers from the same work area
make up the circle. The members receive training in problem solving, statistical
quality control, and group process. Quality circles generally recommend solutions
for quality and productivity problems which management then may implement.
• A facilitator, usually a specially trained member of management, helps train
circle members and ensures that things run smoothly. Typical objectives of QC
programs include quality improvement, productivity enhancement, and
employee involvement.
• Circles generally meet four hours a month (weekly one hour) on company time.
Members may get recognition but rarely receive financial rewards.
• Companies like U.S Navy, GE co., Ford, Firestone, General Motors BHEL, BEL,
Kirloskar Electric Co., L&T, HMT, Telco. have employed QC approach in their
plants.
History of Quality Circles
• Quality circles got their start in the 1950's with the concept being
pioneered by W. Edwards Deming. Toyota liked the idea and began
using it in a variety of ways throughout their manufacturing facilities
and other areas. Companies around the world began implementing
this strategy, and by 1978 there were more than a million circles
operating with ten million workers involved in Japan alone.
• The concept of quality circles has somewhat fallen out of favor in
many western countries over the past couple decades, it was a very
popular option throughout the 1960's, 70's, and 80's.
 Quality Circle Process
• Most quality circles will work through a set process with each meeting. In
general, this will follow the Plan, Do, Check, Act process, which is ideal for
continuous improvement projects.
• Following this process not only makes it easier to identify potential
solutions and implement them, but it also has an established flow for
moving from one process improvement to the next. This is important
because this type of group meeting is scheduled to take place on a regular
basis, with new problems being identified and resolved on a regular basis.
 Implementing Quality Circles
• When implementing quality circles, it is important to provide some guidance to the groups to get
started. Companies that simply ask different departments to get together once a month to discuss how
things can be improved will often find that the meetings are unproductive, and end up turning into a
waste of time.
• A company will often have one person who has become an expert in quality circles and how they work
attend meetings with each circle for the first several times. This can provide some direction on how
things should be done, and they can answer any questions that the attendees have. It is important to
ensure that the expert doesn't try to take over the circle, or have the circle become overly reliant on
them though, since this should just be a temporary thing to get things up and running.
• Quality circles should be measured based on their success in improving the productivity of their
department, eliminating waste, and otherwise benefiting the company. If the quality circles become
unproductive, the expert in this area can be brought back in to provide additional direction to the
group.
Definition: Total Quality Management
(TQM)
• Total Quality Management (TQM) is defined as a management model
that focuses on customers and the development of products and
services that meet the needs and exceed the expectations of
customers.

• Total Quality Management (TQM) is an approach to improving the

effectiveness and flexibility of business as a whole. It is essentially a
way of organising and involving the whole organisation, every
department every activity, every single person at every level.”
• “Total Quality Management is a combination of socio-technical process towards doing the right
things (externally), everything right (internally), first time and all the time with economic
viability considered at each stage of each process.” - Oakland
• John S. Oakland is Chairman of Oakland Consulting LLP and Head of its Research and Education
Division. He is also Emeritus Professor of Business Excellence & Quality Management at Leeds
University Business School, UK. For over 30 years he has researched and consulted in all aspects
of quality management, strategic process management and business improvement in thousands
of organizations. Professor Oakland is a Fellow of the Institute of Directors, Chartered Quality
Institute and Royal Statistical Society. He is also a Member of the American Society for Quality.)
• Zaire and Simintiras, “TQM is the systematic analysis, but the focus is turning from a process
driven by external controls through procedure compliance and enhancement to a process of
habitual improvement where control is embedded within and is driven by the culture of the
organisation.”
• Foster and Whittle, “TQM is a strategic approach to produce the best product and service
possible through constant innovation.”

https://pubhtml5.com/kcvf/oeqg
Characteristics of TQM
1. Customer Focused
Quality begins and ends with the customer.
•The customer dictates what the focus will be as well as the approach
to achieving those results.
But most importantly the customer determines if the efforts were
successful.
For instance, organizations solicit feedback from customers about
products and services. Use what is learned from that feedback to
improve the product or service.
• 2. Involved Employees
• Organizations that manage with TQM understand the importance of
employee involvement.
• These front-line members of the team often hold the answers to
solving problems and improving how work gets done.
• Who more than the person on the line to recognize when something
is not working.
• For instance, in the service industry, employees are the ones who
interact with customers and hear real-time feedback.
• Use employees to help identify areas to improve for the customer.
• 3. Process Oriented
• Everything has a process. Whether the process to hire employees or a
process to make a cake – there are steps that lead the way.
• TQM organizations study steps in a process, fine-tune those steps,
and work to eliminate unnecessary steps that can save time and
money.
• For instance, use quality tools to create a visual for internal
processes. Look at the steps in the process and work to reduce or
eliminate unnecessary steps.
• 4. Mutually Dependent Systems
• Most organizations have several departments or areas of expertise
but all have systems that support the final delivery of the product.
• Organizations that manage with TQM integrate these internal
systems to create a seamless process.
• This is done by creating a culture that understands and values how
quality is determined and how it is achieved.
• For instance, create training for all employees that teaches quality
concepts and reinforces why they are there – the vision and mission
of the organization.
• 5. Strategic Approach
• Businesses that operate under a TQM model, use strategy to help
achieve mission and vision.
• They develop a strategic plan and use that as the cornerstone for its
quality efforts and all decision making.
• Invest the time to create a mission and vision statement and use that
to guide the development of a strategic plan.
• 6. Continuous Improvement
• Continuous improvement is how organizations get better at what
they do by working to improve processes that create products and
services.
• These constant efforts help to ensure the organization remains
competitive and meets the expectations of key stakeholders.
• Make it part of daily practice to pay attention to how work gets done
and continuously look for ways to improve even the most
insignificant tasks.
• 7. Data-Driven Decisions
• Data drives decisions in TQM organizations. Data is collected,
analysed, and used to improve internal operations.
• All decisions are based on the continuous collection of business data.
• Business Data is determined by the identification of key success
measures. It is those measures that drive decisions.
• Spend some time identifying the critical success factors for your
organization and create a process to collect and report data on those
factors.
• 8. Effective Communications
• Communicating is a priority in organizations that strive to improve.
• Employees and customers are provided with ongoing communication
and interaction with the organization.
• There are strategies that drive communication and employees are
provided information about internal changes as they become
available.
• Create a communication strategy and constantly look for ways to
communicate with all key stakeholders.
TQM Benefits
Organizations that use the TQM management model enjoy the benefits of:
•customer loyalty
•cost savings
•higher employee productivity (employee productivity can be gained through Hire the Right People, Set
Employee Goals, Manage Distractions, Performance Management, Challenge Employees, Foster
Engagement, Reward Good Performance)
•more profitability
•improved processes
•improved employee morale
•positive work environment.
•TQM organizations manage by focusing on what the customer wants, continuously improving work
processes, make decisions based on what data is telling them, and are committed to learning from the
experience of their employees.
Turn Customer Satisfaction into Customer
Loyalty
• A loyal customer base is important because it is those consumers who
sustain and grow businesses.
• Organizations that understand the importance of happy customers,
need to think strategically in order to build a loyal customer base.
• Successful organizations have learned that there is a difference
between attracting customers, keeping customers and developing
loyal customers.
• Devoted customers are not only loyal to the organization, but also
serve as advocates and help to solicit new customers by sharing their
positive experiences.
 Principles or Eight building blocks of TQM
1. Customer Focus
2. Leadership Driven/Communication
3. Involvement of People/Employee
4. Process Approach/ Centered
5. System Approach to
management/Strategic Systematic
approach
6. Continual/Continuous Improvement
7. Factual Approach to Decision Making/
Decision Making based on facts
8. Mutually Beneficial Supplier Relationship
/ Integrated system
1. Customer focus
• The first, and arguably most important principle, argues that a
business wouldn’t exist without its customers. Therefore,
organisations should strive to understand their current and future
customers, in order to better meet their requirements and
expectations.
• Key benefits of cultivating good customer relationships include an
increased market share and boost to revenue, as well as improved
customer loyalty.
 2. Leadership Driven
• This principle extols (admires or praises) the virtues of strong,
purposeful and unifying leadership. Leaders are responsible for
creating a productive and progressive business environment. They
also are in charge of ensuring that future hires maintain that
atmosphere.
• Implementing this principle in workplace relies upon having an
established vision for the business, as well as the right leaders in
place to promote that vision to the rest of the team. Spending some
time getting this right from the get-go will save you time and stress in
the future.
3.People involvement
• Employees at every level of the organisation are crucial to its success,
and this principle is all about recognising that.
• As an employer it's vital to ensure that teams are motivated and
engaged, not just in their day-to-day responsibilities, but also in the
company as a whole. For this to happen, staff need to understand the
importance of their role and how it fits into wider company
objectives, as well as take responsibility for any problems that might
impede them from doing their job to the best of their abilities.
 4. Process approach
• A process-driven approach can help companies to avoid
logistical problems that often stem from confusion over
the right way to go about things. It also future-proofs
the business, as having set processes ensures that
there’s no moment of flat panic when a key team
member moves on, leaving everyone in the dark about
key elements of their job.
• Developing processes for every area of business, from
sales to marketing, finance to HR, will ensure that
resources are used most effectively, resulting in cost-
effective and consistent results. It also allows you to
dedicate time and attention to bigger and more exciting
tasks!
5: Systematic approach to management
• This principle is linked to the previous one, and argues that
identifying, understanding and managing processes using a clear
system will help to streamline your business. By ensuring that team
members are dedicating the right amount of attention to key tasks,
eliminates wasted time and make the business more efficient.
• A systematic approach also allows everyone to have access to every
stage of certain processes and stay up to date with progress. Plus, it
looks great for prospective new clients when the business is
organised. Win-win.
6. Continual improvement
• As the old adage (sayings or proverb) goes, if you’re not going
forwards, you’re going backwards.(If you are not actively learning and
growing, but defending your position by doing what you've always
done, you are actually moving backward.)
• A business should always be pushing for improvements, because if
you’re not, you can bet that your competitors will be.
• Continual progress is a permanent goal of any successful
organisation. Take a look at the world’s top 10 most prosperous
organisations and can guarantee that they have entire teams
dedicated to ensuring that they are always onto the next thing.
Commitment to improvement also allows you to be the market
leader.
7: Factual Approach to Decision Making

• This principle states that effective decisions are made based on

rational analysis of data. Whilst (While) a gut feeling can be useful in
some situations, it won’t really stand up when explaining to board of
investors why the profits are down by 10% this year.
• Before making any business decisions, big or small, ensure that you
have all the facts. This principle also relies upon having access to
reliable and accurate data, another vital aspect for a modern-day
business.
8: Mutually Beneficial Supplier Relations
• Management system, excellent customer relationships and a
comprehensive business plan.
• Whether the business provides goods or services to customers, it’s
likely to rely on some sort of supplier. This principle dictates that
relationships between the company and any suppliers must be
mutually beneficial in order to add value to both parties. It allows
both to react more quickly and flexibly to customer demands if things
are smooth and harmonious between both, as well as making it easier
to negotiate on costs.
 Key Elements of TQM
TQM has been coined to describe a philosophy that makes quality
the driving force behind leadership, design, planning, and
improvement initiatives. For this, TQM requires the help of those
eight key elements. These elements can be divided into four
groups according to their function.
The groups are:
I.Foundation – It includes: Ethics, Integrity and Trust.
II. Building Bricks – It includes: Training, Teamwork and
Leadership.
III.Binding Mortar – It includes: Communication.
• I. Foundation: TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and
sincerity and allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM. 1.
1. Ethics – Ethics is the discipline concerned with good and bad in any situation. It is a two-faceted subject
represented by organizational and individual ethics. Organizational ethics establish a business code of
ethics that outlines guidelines that all employees are to adhere to in the performance of their work.
Individual ethics include personal rights or wrongs.
2. Integrity – Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity. The
characteristic is what customers (internal or external) expect and deserve to receive. People see the
opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity.
3. Trust – Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot
be built. Trust fosters full participation of all members. It allows empowerment that encourages pride
ownership and it encourages commitment. It allows decision making at appropriate levels in the
organization, fosters individual risk-taking for continuous improvement and helps to ensure that
measurements focus on improvement of process and are not used to contend people. Trust is essential to
ensure customer satisfaction.
II. Bricks: Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of

recognition. It includes:

4. Training – Training is very important for employees to be highly productive. Supervisors are solely responsible for

implementing TQM within their departments, and teaching their employees the philosophies of TQM. Training that

employees require are interpersonal skills, the ability to function within teams, problem solving, decision making,

job management performance analysis and improvement, business economics and technical skills. During the

creation and formation of TQM, employees are trained so that they can become effective employees for the

company.

5. Teamwork – To become successful in business, teamwork is also a key element of TQM. With the use of teams,

the business will receive quicker and better solutions to problems. Teams also provide more permanent

improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may

occur, and can get help from other workers to find a solution and put into place. There are mainly three types of

teams that TQM organizations adopt:

A. Quality improvement teams or excellence teams (QITs) – These are temporary teams with the purpose of
dealing with specific problems that often recur. These teams are set up for period of three to twelve months.
B. Problem solving teams (PSTs) – These are temporary teams to solve certain problems and also to identify and
overcome causes of problems. They generally last from one week to three months.
C. Natural work teams (NWTs) – These teams consist of small groups of skilled workers who share tasks and
responsibilities. These teams use concepts such as employee involvement teams, self-managing teams and quality
circles. These teams generally work for one to two hours a week.

•6. Leadership – It is possibly the most important element in TQM. It appears everywhere in organization.
Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are
understood by all and to instill values that guide subordinates.

•For TQM to be successful in the business, the supervisor must be committed in leading his employees. A
supervisor must understand TQM, believe in it and then demonstrate their belief and commitment through their
daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted
down through out the organization to provide focus, clarity and direction. A key point is that TQM has to be
introduced and led by top management. Commitment and personal involvement is required from top
management in creating and deploying clear quality values and goals consistent with the objectives of the
company and in creating and deploying well defined systems, methods and performance measures for achieving
those goals.
• III. Binding Mortar
7. Communication – It binds everything together. Starting from foundation to roof of the TQM
house, everything is bound by strong mortar of communication. It acts as a vital link between all
elements of TQM. Communication means a common understanding of ideas between the sender
and the receiver. The success of TQM demands communication with and among all the
organization members, suppliers and customers. Supervisors must keep open airways where
employees can send and receive information about the TQM process. Communication coupled
with the sharing of correct information is vital. For communication to be credible the message
must be clear and receiver must interpret in the way the sender intended.
• There are different ways of communication such as:
A. Downward communication – This is the dominant form of communication in an organization.
Presentations and discussions basically do it. By this the supervisors are able to make the
employees clear about TQM.

B. Upward communication – By this the lower level of employees are able to provide suggestions
to upper management of the affects of TQM. As employees provide insight and constructive
criticism, supervisors must listen effectively to correct the situation that comes about through the
use of TQM. This forms a level of trust between supervisors and employees. This is also similar to
empowering communication, where supervisors keep open ears and listen to others.
IV. Roof

8. Recognition – Recognition is the last and final element in the entire

system. It should be provided for both suggestions and achievements for
teams as well as individuals. Employees strive to receive recognition for
themselves and their teams. Detecting and recognizing contributors is the
most important job of a supervisor. As people are recognized, there can be
huge changes in self-esteem, productivity, quality and the amount of effort
exhorted to the task at hand. Recognition comes in its best form when it is
immediately following an action that an employee has performed.
Recognition comes in different ways, places and time such as,
•Ways – It can be by way of personal letter from top management. Also by
award banquets, plaques, trophies etc.
•Places – Good performers can be recognized in front of departments, on
performance boards and also in front of top management.
•Time – Recognition can given at any time like in staff meeting, annual
award banquets, etc.
 Benchmarking
• Benchmarking is the process of comparing the cost, cycle time, productivity, or quality of a specific process or method to

another that is widely considered to be an industry standard or best practice. Essentially, benchmarking provides a snapshot

of the performance of the business and helps to understand where are in relation to a particular standard. The result is often

a business case for making changes in order to make improvements. The term benchmarking was first used by cobblers to

measure ones feet for shoes. They would place the foot on a "bench" and mark to make the pattern for the shoes.

• Benchmarking is most used to measure performance using a specific indicator (cost per unit of measure, productivity per

unit of measure, cycle time of x per unit of measure or defects per unit of measure) resulting in a metric of performance that

is then compared to others.

Also referred to as "best practice benchmarking" or "process benchmarking", it is a process used in management and

particularly strategic management, in which organizations evaluate various aspects of their processes in relation to best

practice, usually within a peer group defined for the purposes of comparison. Benchmarking may be a one-off event, but is

often treated as a continuous process in which organizations continually seek to challenge their practices.
WHAT IS BENCHMARKING?

•“Benchmarking is simply the process of measuring the performance of one's company against the
best in the same or another industry. Benchmarking is not a complex concept but it should not be
taken too lightly. Benchmarking is basically learning from others. It is using the knowledge and the
experience of others to improve the organization. It is analysing the performance and noting the
strengths and weaknesses of the organization and assessing what must be done to improve.

•
REASONS FOR BENCHMARKING
• There are several reasons that benchmarking is becoming more
commonly used in industry;
• Benchmarking is a more efficient way to make improvements.
Managers can eliminate trial and error process improvements.
Practicing benchmarking focuses on tailoring existing processes to fit
within the organization.
• Benchmarking speeds up organization’s ability to make
improvements.
• Compare business practices with those of world class organizations
• Challenge current practices and processes
• Create improved goals and practices for the organization
• Change the perspective of executives and managers.
 OBJECTIVES OF BENCHMARKING

• Becoming competitive
• Improving industry best practices
• Defining customer requirement
• Establishing effective goals and objectives
• Developing the measures of productivity
ADVANTAGES OF BENCHMARKING
· It helps improve process effectiveness
· Helps in cost reduction
· It provides focus in planning operations
· The sharing of information may create opportunities for innovations
· It assesses the firms existing position and provides a basis for establishing
standards of performance
· Cross comparison are more likely to expose different ways of doing things

· It provides evidence for additional resources

· Is practitioner led, so gives a sense of ownership
· Facilitates multi-disciplinary team building and networking
· Provides an avenue for change in clinical practices.
DISADVANTAGES OF BENCHMARKING
• Benchmarking is the danger of complacency and arrogance. Many
organizations tend to relax after excelling beyond competitors' standards.
The realization of having become the industry leader soon leads to
arrogance, when considerable scope for further improvements
remains.
• It implies there is only one best way of doing business
• The benchmark may be yesterday’s solution to tomorrow’s problems. If
the operating environment is highly dynamic the solution will be dynamic.
• It depends on the accuracy of the information about the comparator
company
• It may be difficult to decide which activities to benchmark
• It encourages the mentality of catching up rather than being innovative
• Lack of strategic relevancy
PROCESS OF BENCHMARKING
Organizations that benchmark, adapt the process to best fit their own needs and culture. Although
number of steps in the process may vary from organization to organization, the following six steps
contain the core techniques:
1. Decide what to benchmark.
2. Understand the current performance of your organization.
3. Do proper planning of what, how and when of benchmarking endeavor.
4. Study others well (the practices or system you wish to benchmark)
5. Gather data and learn from it.
6. Use the findings.
It involves the following;
•Plan: Critical success factors, select a process for benchmarking, document the process, and develop
performance measures
•Search: Find bench-marking partners
•Observe: Understand and document the partners’ process, both performance and practice
•Analyse: Identify gaps in performance and find the root causes for the performance gaps
•Adapt: Choose “best practice”, adapt to the company’s conditions, and implement changes.
 Types of Benchmarking
1) Process benchmarking
The initiating firm focuses its observation and investigation of business
processes with a goal of identifying and observing the best practices from one or
more benchmark firms. Activity analysis will be required where the objective is to
benchmark cost and efficiency; increasingly applied to back-office processes where
outsourcing may be a consideration.
2) Financial benchmarking
Performing a financial analysis and comparing the results in an effort to assess
your overall competitiveness.
3) Performance benchmarking
Allows the initiator firm to assess their competitive position by comparing
products and services with those of target firms.
4) Product benchmarking
The process of designing new products or upgrades to current ones. This
process can sometimes involve reverse engineering which is taking apart
competitors products to find strengths and weaknesses.
5)Strategic benchmarking
Involves observing how others compete. This type is usually not industry
specific meaning it is best to look at other industries.
6)Functional benchmarking
A company will focus its benchmarking on a single function in order to
improve the operation of that particular function. Complex functions such as
Human Resources, Finance and Accounting and Information and
Communication Technology are unlikely to be directly comparable in cost
and efficiency terms and may need to be disaggregated into processes to
make valid comparison.
• Internal benchmarking, comparison against the best within the same
organization or corporation, often called benchmarking within your own
class.
• Competitive benchmarking, comparison against the best direct
competitors, which then can be termed benchmarking against someone in
the parallel class.
• External benchmarking, it involves seeking outside organizations that are
known to be best in class. It provides opportunities of learning from those
who are at the leading edge, although it must be remembered that not
very best practice solution can be transferred to others.
• International benchmarking. Is used where partners are sought from
other countries because best practitioners are located elsewhere in the
world and/or there are too few benchmarking partners within the same
country to produce valid results.
 CASE STUDY ON BENCHMARKING (XEROX CORPORATION)
• Benchmarking can be called the management tool that revived (renew or restore) Xerox.
Xerox defines benchmarking as the “continuous process of measuring our products, services,
and practices against our toughest competitors or those companies recognized as leaders. The
Xerox of today is not the Xerox of the sixties and seventies. During that time period the
organization experienced market erosion from competitors, primarily Japanese. These
competitors were marketing higher quality products in the United States at the same price or
lower as Xerox. Xerox found that the Japanese were able to assemble quality products at a low
price. This was hard for Xerox to grasp because they were the first to develop the photocopy
and their name had come to be synonymous with photocopies. How could the Japanese be
beating them at their own game? Xerox found that they had to regroup. In doing this they
used reverse engineering and made competitive benchmarking a fundamental part of their
operations by the early eighties. Xerox began to study other organizations within and out of
their industry. By 1983, Xerox had bench marked more than 230 process performance areas in
their operation. They looked at all aspects of their business. Identifying the best processes
used by others, Xerox adapted them for their own use. This is how they regained their core
competency and strategic advantage in the photocopying industry.
 FMEA
Introduction to Failure Mode and Effects Analysis (FMEA)
•There are numerous high-profile examples of product recalls resulting
from poorly designed products and/or processes. These failures are
debated in the public forum with manufacturers, service providers and
suppliers being depicted as incapable of providing a safe product.
Failure Mode and Effects Analysis, or FMEA, is a methodology aimed
at allowing organizations to anticipate failure during the design stage
by identifying all of the possible failures in a design or manufacturing
process.
•Developed in the 1950s, FMEA was one of the earliest structured
reliability improvement methods. Today it is still a highly effective
method of lowering the possibility of failure.

https://quality-one.com/fmea/
What is Failure Mode and Effects Analysis (FMEA)
•Failure Mode and Effects Analysis (FMEA) is a structured approach to
discovering potential failures that may exist within the design of a
product or process.
•Failure modes are the ways in which a process can fail. Effects are the
ways that these failures can lead to waste, defects or harmful
outcomes for the customer. Failure Mode and Effects Analysis is
designed to identify, prioritize and limit these failure modes.
•FMEA is not a substitute for good engineering. Rather, it enhances
good engineering by applying the knowledge and experience of a Cross
Functional Team (CFT) to review the design progress of a product or
process by assessing its risk of failure.
•There are two broad categories of FMEA, Design FMEA
(DFMEA) and Process FMEA (PFMEA).
Design FMEA

•Design FMEA (DFMEA) explores the possibility of product

malfunctions, reduced product life, and safety and regulatory concerns
derived from:
•Material Properties
•Geometry
•Tolerances
•Interfaces with other components and/or systems
•Engineering Noise: environments, user profile, degradation, systems
interactions
Process FMEA

•Process FMEA (PFMEA) discovers failure that impacts product quality,

reduced reliability of the process, customer dissatisfaction, and safety or
environmental hazards derived from:
•Human Factors
•Methods followed while processing
•Materials used
•Machines utilized
•Measurement systems impact on acceptance
•Environment Factors on process performance
Benefits of FEMA
• FMEA is one of many tools used to discover failure at its earliest possible
point in product or process design. Discovering a failure early in Product
Development (PD) using FMEA provides the benefits of:
• Multiple choices for Mitigating the Risk
• Higher capability of Verification and Validation of changes
• Collaboration between design of the product and process
• Improved Design for Manufacturing and Assembly (DFM/A)
• Lower cost solutions
• Legacy, Tribal Knowledge, and Standard Work utilization
• Note: Tribal knowledge is any unwritten information that is not commonly
known by others within a company.
When to Perform Failure Mode and Effects Analysis (FMEA)?

There are several times at which it makes sense to perform a Failure Mode
and Effects Analysis:

•When you are designing a new product, process or service

•When you are planning on performing an existing process in a different way
•When you have a quality improvement goal for a specific process
•When you need to understand and improve the failures of a process