Total Quality Management

TOTAL QUALITY MANAGEMENT Prof. (Dr.) Satish Ailawadi

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FUNDAMENTAL CONCEPTS OF TQM

• Total quality management is both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. • Encompasses mobilizing the entire organization to satisfy the demands of the customers. • TQM is focused on routine involvement and participation of everyone in the organization in the systematic improvement of quality. • It involves each individual and group within all parts of the organization. 2

• TQM provides a way of life to constantly improve performance at every level and at in every activity, by creating a positive environment for continuous improvement based on - Team work - Trust and Respect - Examining the processes in a systematic manner - Application of quantitative methods and analytic techniques

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Deming’s Chain Reaction Improve quality

Capture the market with better quality and lower prices

Decrease costs due to less rework, fewer mistakes, fewer delays and snags, and better use of time and materials

Stay in business

Improve productivity

Provide steady jobs and more jobs.

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A shift from traditional approaches to quality TOTAL QUALITY MANAGEMENT -Involvement of all employees, customers and suppliers - Empowered employees - Teamwork - Quality strategy based upon a common mission and vision -Process oriented QUALITY ASSURANCE -Quality systems (ISO 9000) -Quality planning - Quality policy - Quality costing - Problem solving QUALITY CONTROL -Quality standards -Statistical quality techniques -Process performance -Treating quality problems INSPECTION -Error detection - Rectification 5

• TQM can be perceived as being concerned with the following - Meeting the needs and expectations of customers. - Covering all parts of the organization - Examining all costs which are related to quality - Doing things right the first time i.e. quality designing rather than inspecting. - Developing the systems and procedures which support quality and improvements - Developing a continuous process of improvement 6

Kaizen Philosophy • TQM concerns incremental and ongoing improvement of yourself, your work, and your organization. • The Kaizen philosophy is imbedded in the TQM concept and encompasses continuous and gradual improvement of all employees in the organization. • Leads to improvement in employees’ personal output on a daily basis 7

Important Kaizen Rules • Work with and according to guidelines • Problems are opportunities for improvements • Retrieve information where it happens • Consider the facts • Work according to the plan • Avoid waste • Order and neatness • Keep appointments 8

Deming Wheel- focal point in Kaizen Approach • In the Kaizen approach “Deming Wheel” is central, consisting of a cycle of activities necessary for effective quality improvement. • The cycle consists of Plan, Do, Check, and Act. 1. Plan - Define the problem, analyze the causes and draft an action plan for solving the problem. - Determine the quality objectives, and critical success factors. - Define performance indicators, collect and analyze the process data, generate the possible solutions. - Select the most feasible solution and work it out.

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2. Do - Implement the plan on a limited scale or conduct an experiment to test the proposed improvement. - 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. 3. Check - Evaluate the trial project with performance indicators. - Verify whether the improvement has been successful. - What have we learnt? 10

4. Act - Implement proven improvements. - The improvements are documented in standard procedures so all employees involved are well informed on how to handle in future. - Usually the cycle gets repeated under different circumstance and conditions to test how consistent the results are. ACT

CHECK

PLAN

DO

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Quality Principles A. Customer focus and customer involvement - Employees regularly visit their customers. - Customers are known and understood Customers’ needs are integrated in the activities. - More is being done than the customer expects - Satisfied customers are priority number one. - Changing customer needs are systematically collected and lead to improvement. 12

B. Involvement of all employees • Voluntary total involvement of everyone. • Teamwork that leverage the knowledge and provides synergy based on open communication, respect and trust. • Skills are developed on the basis of “Learning by doing”. • Decisions on the basis of consensus. • The present situation is open for discussion. • Investing in knowledge. • Empowered employees • Entrepreneurial approach and leadership skills at all business levels. 13

C. Consistency of purpose - An inspiring mission and vision is developed and communicated to all organizational levels. - SMART- goals are formulated and preserved. (Specific, Measurable, Achievable, Realistic, and Time specific). - Managers are consistent in their behaviour regarding these goals. - Guidance is given to quality improvement process. - There is commitment at top management. 14

D. Act according to facts - Work according to facts and not based on rumours or feelings. - The causes and consequences of problems are analyzed according to “measuring is knowing”. - Goal oriented data is gathered and interpreted accordingly. - Measurements are based on figures; verify everything with data. - Quality costs are analyzed. 15

E. Process oriented - Internal customers are also satisfied. - The process is more important than the results; address the means of work accomplishment and not the outcomes. - The effectiveness of process is measured. - The output is standardized. - The processes are documented in schemes and standard working procedures. - Suppliers are regarded as partners and long term relationships are established. - The TQM culture is expanded to suppliers. - Reduction of process variations occurs continuously.16

F. Focus on continuous improvement. - Employees improve themselves and their work and help others improve themselves and their organization. - Problems are regarded as a means for improvement and a chance to improve processes. - Emphasis on problem prevention instead of correction. - Improvements are based on cross-functional, structured, and holistic approach, and are continuously documented.

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- Multidisciplinary improvement teams are established. - There is a working climate in which continuous improvement is a way of life. - Improvement of whole and not just the parts. 18

Deming’s and Crosby's 14 points for quality improvement

S.No.

Demimg

Crosby

1.

Create constancy of purpose towards improvement of product and service .

Establish management commitment

2.

Adopt the new philosophy

Form interdepartmental quality improvement teams.

3,

Cease dependence on inspection

Establish quality measurement.

4.

End awarding business on the basis Evaluate the cost of quality. of price tag

5.

Improve constantly the system of production and service.

Establish quality awareness.

6.

Institute training on the job.

Instigate corrective action.

7.

Institute leadership.

Ad hoc committee for the zero defects programme. 19

S.No.

Deming

Crosby

8.

Drive out fear, so that everyone may work effectively for the company.

Supervise employee training.

9.

Break down barriers between departments.

Hold a zero defects day to let all employees realize that there has been a change.

10.

Eliminate slogans and exhortations. Encourage individuals to establish improvement goals for themselves and their groups.

11.

Eliminate quotas or work standards. Error cause removal.

12.

Give people pride in their job.

Recognize and appreciate those who participate.

13.

Institute education and a selfimprovement programme.

Establish quality councils to communicate on a regular basis.

14.

Put everyone to work to accomplish Do it over again to emphasize that the quality it. improvement programme never ends. 20

• Total quality management is a common method to improve the whole organization stepwise, structured and systematically according to hard work, discipline, intensive training, and consistent implementation of techniques and resources. • The quality principles form the foundation of TQM and are expressed in the four pillars of the TQM-house, namely 1.Problem solving Discipline 2.Interpersonal skills 3.Teamwork 4.Quality improvement process. 21

Total Quality Management

Problem solving discipline

Interpersonal Skills.

Teamwork

Quality improvement process

Employee involvement, Structured, Stepwise, Discipline, Consistency. 22

• The success of TQM improves proportionately in conjunction with the percentage of employees within the organization who master this quality attitude, mentality, and skills, • TQM covers all parts of the organization. • For an organization to be truly effective, every single part of it, each department, each activity, each person and each level must work properly together, because every person and every activity affects and in turn is affected by others. 23

What is Quality? • Degree to which a set of inherent characteristics fulfills requirements. • Many of us tend to equate quality with lluxury and expense. • If asked to rank, for quality - A Rolls Royce - A Formula One racing car or - A compact family saloon • Most people would choose the Rolls Royce as possessing the highest quality of the three. 24

• To use the definition of quality given earlier and to arrive at a ranking decision we need to examine another definition of quality “Grade”. • Grade is defined as “category or rank given to different quality requirements for objects having the same functional use”. • For example, classes of airline ticket or categories of hotels. • When planning the quality requirement for an object, the grade for quality requirement must be known. 25

• The examples of Rolls Royce, Formula One racing car and a compact family car have very different functional uses and it becomes necessary to compare each one of them with vehicles having the same functional use. • This promotes an alternative definition of Quality as “Fitness for Purpose”. • The problems this raises are ‘Who is to judge the fitness for purpose”? - Should it be the customer? - Should it be the manufacturer or provider of service? - Should it be an independent auditor? • Fitness for Purpose provides an element of subjectivity.

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Working effectively to achieve quality • A common agreement is required on what quality means. • It does not mean that all products need to be “gold plated’. • It does not mean when buying a family saloon car that all luxuries of a Rolls Royce need to be built into achieve quality. • The basic quality objective is to provide products and services that meets the needs of the customers. 27

• Individuals, based on their experience with the products, form an opinion about quality. • From varying ideas and suggestions for defining quality one idea becomes clear in all cases-the need for customer satisfaction. • The multitude of suggestions make it appear that quality is a moving target and is difficult to achieve. • In fact, it is not so.

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Quality is “Conformance to Specifications” • Conformity is ‘Fulfillment of a requirement” • The Rolls Royce that meets all its specified requirements is a quality product. • The family saloon that meets all its specified requirements is equally a quality product. • Dr. Deming defines quality as the need to “provide customers with what they need, when they need it and at a higher perceived value and lower cost than anyone else. 29

Prevention rather than detection to achieve quality • Traditional methods include inspection, tests, audits to detect errors and eliminating them by scrapping or reworking products to conform to specification. • This system of appraisal is commonly categorized as “Quality Control”. • Inspection is the king. • During late 1950s and early 1960s the principle of achieving quality by inspecting-out reject products was challenged. 30

• It was realized that quality is inherent within the product and cannot be introduced once the product is made. • The philosophy of “prevention rather than detection” provides the opportunity for eliminating the potential for error. • It involves identifying opportunities for error and taking actions to eliminate those opportunities before a problem arises. • It results in the contemporary quality expression of “Quality Assurance- Right First Time” 31

Prerequisites of TQM and Possible Actions 1. Know your customers, both external and internal: - Who they are, their current needs, and their future requirements. - Respond to their changing needs. - Do not forget the users. 1.1 Possible Actions - Customer surveys - Functional analysis - Quality cost analysis - Quality function deployment 32

2. Know your competitors 2.1 Possible Actions - Customer surveys - Competitor analysis - Bench marking 3. Know the cost of non-conformance (CONC) 3.1 Possible Actions - Quality cost analysis - Functional analysis 4. Measure performance against key customer driven parameters 4.1 Possible Actions - Customer surveys - Competitor analysis - Bench marking 33

5. Make sure that each employee understands and commits themselves to the quality objectives of the business. 5.1 Possible Actions - Functional analysis - Education and training - Communication 6. Management commitment to the continual improvement of quality within the business. 34

6.1 Possible Actions - Quality cost analysis - Functional analysis - Education and training - Communication. 7. Define the purpose of each department and activity in terms of satisfying external and internal customer requirements. 7.1 Possible Actions - Functional analysis 35

8. Enable the employees to fulfill their commitment to quality by influencing the programme of continuous improvement. 8.1 Possible Actions - Education and training - Communication - Corrective action task force, corrective actions group. - Error cause removal schemes. - Quality circles - Problem solving 36

- Statistical process control - Recognition of performance - Suggestion programmes - Self inspection programmes. 9. Wherever possible replace the inspection and correction techniques of quality control with effective preventive actions. 9.1 Possible Actions - Quality cost analysis - Functional analysis 37

- Quality Management Systems - Error Cause removal schemes - Quality Circles - Problem solving - Suggestion programmes. 10.Never accept a non-conforming output in the form of a product for external or internal customer. 10.1 Possible Actions - Quality Cost Analysis 38

- Functional Analysis - Education and Training - Communication. 11. Plan effectively before undertaking any actions. 11.1 Possible Actions - Quality Improvement Team → Apparently, there is no end to improvement. • The recognition of the necessity to continuously revise the quality thinking is essential to the ultimate success of business venture.

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5 S of Housekeeping • Housekeeping is given a lot of importance in the total quality management system. • It reduces the wastage of time and improves the efficiency and effectiveness of work. • Improper housekeeping may lead to accidents, dull working environment and other work related problems.

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1. Seiri- Orderliness • The orderliness of manufacturing aids, proper arrangement of raw materials near the machines and keeping the files and drawings in order to make working fast, effective and efficient without wastage of the effort or time and material. 2. Seiso- Clarity • The clarity of work process, flow process charts, arrangement of raw materials, finished goods and intermediary services make the work place more efficient and effective.

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3. Seiton-Tidiness • Tidiness ensures adequate space for machines and movement of manpower is made easy. • Tidiness avoids mixing of different materials and it makes product identification easy. • The chances of rejection and rework gets minimized. 4. Seiketsu • The cleanliness of the shop floor and the office are mandatory for good working environment, good product quality and elimination of accidents.

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This also helps an organization to put up a decent appearance of the organization before the visitors. 5. Shitsuke-Discipline • Recommends discipline in all the four housekeeping practices together to enhance the effectiveness of housekeeping. • It ultimately leads to the self discipline of the organization.

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Total Quality Management Pioneers 1.Walter Shewart • Founder of P-D-C-A Cycle • Originator of statistical process control at AT&T Bell Labs in 1930. 2. W.Edward Deming • Led quality revolution in Japan during the post-world war II period. • Quality is a key competitive advantage. • Deming quality award by Japan is the most prestigious quality award. 44

• Deming’s fourteen points for excellence. • Deming’s seven diseases. 3. Joseph M.Juran • Led quality revolution in Japan during the postworld War II period. • He defined quality as fitness for use by customer. • Juran’s triology of quality, quality control, and quality improvement. • Started Juran’s Institute in USA. • Introduced cost of poor quality. 45

4. Philip B. Crosby • Started Crosby quality college. • Created the concept of ‘zero defect’. • Defined quality as conformance to requirement. • Crosby’s 14 steps of quality improvement. 5. A.V. Feigenbaum • Originator of QM concept • His theory of three steps to quality • Quality leadership, modern quality technology and organizational commitment. 46

6. Taiichi Ohno • Formulated the flexible manufacturing systems (FMS) • Father of the just-in-time and kanban manufacturing. • Father of TPS or Toyota Production System. 7. Sheigo Shingo • Originator of ‘Single minute exchange of dies” • Introducing the concept of modular manufacturing.

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8. Kaoru Ishikawa • Originator of fish bone or the cause and effect diagramme. • Originator of Company Wide Quality Control (CWQC). • Responsible for initial deployment of quality circles. • Remove the root cause and not the systems. 9. Masaaki Imai • Popularized the Kaizen concept of continuous improvement. 10. E.Goldratt • Theory of constraints

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Deming’s 14 points to reach World Class Performance Standards 1. Achieve constancy of purpose • Top management must define the organization’s vision, mission and objective with the constancy of purpose . • The goal integration between the organization and individuals working there is extremely important for individuals to give their best for the achievement of the organizational objectives. 49

2. Learn a new philosophy • Challenge the status-quo. • Today’s management is learning, unlearning and relearning that is relevant to the organization. • The speed and frequency with which the organization and its employees learn new philosophy decide its growth rate and market leadership. 3. Do not depend on mass inspection (Use statistical sampling technique). • Emphasizes heavy deployment of statistical techniques in the area of inspection. 50

• Deming was of the opinion that the behaviour of the whole group is going to be more or less the same as that of the sample lot taken for the inspection. • Therefore, why unnecessarily waste precious resources of manpower and time for 100% inspection. 4. Reduce the number of vendors for better control and consistency • Vendors need to be treated as part of the organization. • There needs to be direct involvement of the organizations in the statistical process control of the vendors. • This will lead to improve vendors’ process capability and there will be no need to do 100% inspection. 51

• If the vendors are changed frequently for cheaper price, quality of supplies would never stabilize. • Hence, number of vendors per component should be either one or two to have a better control and consistency in the supplies. 5. Recognize two sources of faults: (a)management and production systems (b) production workers. • There are two types of errors or faults. • One is due to random causes and other is due to assignable causes. • The random causes are due to faulty process design or inadequate machine capability. 52

• The management alone can solve such problems. • The assignable errors are due to workers and occur due to faulty workmanship. • This can be eliminated by providing training to the workers and motivating them properly. 6. Improve on the job training • Deming always described on-the-job training as the best method of training where the absorption of knowledge imparted during training is the maximum. • Identify the training needs and the skill level required for each operator and employees. • Conduct training for best results. 53

7. Improve supervision • Improve the supervision at the process level so that not only errors or mistakes are minimized, but also on-the-job training to the operators is strengthened. • This will lead to continuous improvement, better productivity and enhanced quality of products, process and services. 8. Drive out fear • Organization should be proactive and there should be employee involvement at all levels. • Fear should not be the driving force to achieve the end results.

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9. Improve communication • The majority of the labour problems are due to lack of communication between the workers and the management. • Communication should be immaculate in terms of training, learning of new technology, setting of new objectives etc. 10. Eliminate slogans and exhortations. • This is quite similar to driving out fear and hence gets emphasized. • Ensure employees are not exploited. 11. Consider work standards carefully and eliminate quotas • Examine each standard from functional point of view.

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• Do not overdesign or keep tolerances too rigid . • If it is not required from customer’s point of view and not adding any value, why unnecessary incur additional expenditure. 12. Teach statistical methods • Implement statistical process control system in manufacturing leading to establishment of process capability • This would lead to zero defects in products and services. • Results into enhancement of productivity. 56

13. Encourage education and a self-improvement programme. • A product innovation and development helps in increasing the market share. • Innovations in process enhances productivity and quality and reduces the cost of production. • Organizations should have systems like suggestion scheme, quality improvement teams to encourage new skills and their implementation.

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14. Ensure total employee involvement. • Put everyone to work to accomplish it. • Involvement should be voluntary. • This would enable organization to achieve its objectives in minimum amount of time and cost.

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Deming’s Seven Deadly Diseases 1. Lack of consistency of purpose to plan product and services that have a sufficient market to keep the company in business and provide jobs. 2. Emphasis on short-term profits; short term thinking that is driven by a fear of unfriendly takeover attempts and pressure from bankers and shareholders to produce dividends. 3. Performance appraisals, merit rating, and annual appraisal without providing resources to accomplish objectives. 59

4. Job hoping by managers. 5. Using only visible data and information in decision making with little or no consideration given to what is not known or cannot be known. 6. Excessive medical costs. 7. Excessive cost of liability driven up by lawyers that work on contingency fees.

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What are Quality Costs? • A particularly powerful technique in improving quality. • Quality costs are incurred in two ways (a)The costs incurred in the design, implementation, operation and maintenance of quality management systems, and (b)The costs incurred through failure of product manufacture or services. • Quality management systems may range from simple inspection to systems which include consideration of all the management actions affecting the quality of the product or service.

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• Production system failures can result in: (1)Production delays (2)Scrap (3)Rectification work (4)Late deliveries (5)Defective products going undetected, and even (6)Obsolete stocks • The outcome of these failures leads in turn to: (1)Warranty and product liability charges. (2)Complaint administration and investigation (3)Late delivery penalty clause payments (4)Product recall (5)Loss of goodwill 62

• Quality costs can also arise from varieties of activities which may not be connected with the quality of product or service; such as - Sales and marketing - Design and development - Purchasing - Production (including planning & control) - Handling and storage - Delivery, installation and servicing.

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• The control of these activities may lie within or outside an organization. • The outside influences will come from suppliers, sub-contractors, stockists, agents, dealers or consumers. • The quality costs can be summarized as; (1)Cost of appraisal (2)Cost of prevention (3)Cost of failure • Studies have indicated quality costs range from 5% to 25% of company’s turnover depending upon the nature of industry, products or services and the level of quality management employed. 64

• Studies have also indicated that 95% of the costs stem from appraisal and failure. • Neither of these costs add value to the product or service and therefore failure costs should be avoidable. • If the causes of failure can be eliminated it will lead to a reduction in the need for appraisal with the consequent cost reduction. • Studies have indicated that implementation of effective quality management systems can reduce quality costs to one third of their previous levels. 65

Categories of Quality Costs Quality Related Costs

Conformance Costs

Appraisal Costs

Prevention Costs

Non-conformance Costs

Internal failure Costs

External failure Costs

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• Appraisal Costs - The cost of assessing the quality achieved. - These costs include the costs of inspection and testing carried out during and on completion of manufacture. • Prevention Costs - The cost of any action taken to investigate, prevent or reduce defects and failures. - These costs include the cost of planning, setting-up and maintaining the quality management system. 67

• Failure Costs-Internal - The costs arising within the organization of the failure to achieve the quality specified. - These costs include the cost of scrap, rework and reinspection and also the consequential losses that result such as interruption in schedules, idle capacity. • Failure Costs- External - The costs arising outside the organization because of failure to achieve the quality specified.

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- These include the costs of claims against warranty, replacement, consequential losses, loss of goodwill and penalty clause payouts for late delivery. →When a quality costing is carried out, it is necessary to consider appraisal, prevention and failure costs in terms of - Salaries and wage - Consumable materials - Capital equipment depreciation - Various other costs directly related to department within the organization. → The loss of goodwill resulting from poor quality is difficult to analyze and could be very easily be the most expensive of all the quality costs. 69

Crosby's Theory on Quality Management-6 Cs • While Juran propagated that ‘higher quality costs less’, Philip Crosby tried to popularize the concept that ‘quality is free’. • Crosby is famous for his 6 Cs. (1)Comprehension - Ability to understand and absorb the quality related activities, its sustenance and improvements.

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(2) Commitments - Top management, employees, suppliers and the customers to get committed to work together towards quality management systems. (3) Competence - For improving the effectiveness and efficiency of the quality management system and then sustaining the improvement on a long-term basis. (4) Corrections - Fool proofing the quality management systems by rectifying the mistakes and deviations and putting the quality management system back on the track for world-class performance.

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(5) Communications - In order to ensure support to the quality management system from employees, suppliers and customers alike, communication in the organization should be clear without ambiguity. (6) Continuance - The organization’s good performance and its continuous improvement is the essence of a world-class organization and its successful operation. 72

Four Absolute Requirements for attainment of quality-Crosby 1. The definition of quality is conformance to requirements - The objective of the quality improvement programme is to get everyone to do it right the first time. - To achieve this, an organization must get its employees to understand the requirements clearly.

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- The management has to perform three tasks to accomplish this: (a)Organization should establish the requirements that employees are to meet. (b)Supply the resources needed by the employees to meet these requirements. (c)Encourage and help the employees to meet these requirements. (2) The system of quality is prevention - Inspection, testing and checking after the job is over is an expensive and unreliable way of getting the quality. 74

- What is required is ‘prevention’. - The concept of prevention is based on understanding the process that needs preventive action. - The preventive activities are to look at the processes and identify opportunities for the error. - The errors can be controlled by eliminating the cause of the problem.

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3. The performance of the standard is zero defects. - Organizations with millions of individual actions cannot afford to have a percent or two to go astray. - Less than complete compliance with required level of performance could cause big trouble in the organization. - Companies try all sort of ways to help people not to meet the requirements by declaring things like ‘Accepted Quality Level’ 76

- The concept has to be ‘zero defect’ that is absolute conformance to the requirement. - There cannot be a grade or percentage of performance. - The employees should be aware of what they are supposed to do and do exactly that. - The employees have to do it right first time to make the organization hassle free. 77

4. The measurement of quality is the price of nonconformance - The price of conformance consists of costs like all prevention efforts, training and education on quality. - Normally it should not be more than 2% of the sales. - The price of non-conformance consists of faulty handling of a customer’s enquiry to loss of orders, rejection, delayed delivery, rework, salvaging, etc. 78

- It can be as high as 20% and it can eat up the organization’s profits. - The price of non-conformance is everything that the organization would not have done if it was done right the first time. →Philip B.Crosby’s theory on ‘zero defect’ and ‘do it right first time’ has been accepted worldwide even though he practiced management mainly in the USA. 79

Muri, Mura and Muda- Three Magic Wands of Japanese Management System. • The three Japanese mantras of ‘muri’ ‘mura’ and ‘muda’ known as ‘3M practice’ is an integral part Japanese manufacturing system. • The 3M practice brought down the cost of production to bare minimum without affecting the quality or user friendliness of the product. 80

• The effect of elimination of muda or wastage is immediately experienced and the results are visible. • The impact of mura and muri are subtle and not visible but equally significant in attaining the end objective of customer satisfaction and cost reduction. 1.MURI - The word ‘muri’ means ‘unreasonable’ or ‘irrational’ approach to any field of operation. - Muri looks for irrationality with four major approaches.

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(a) Things or activities that are extremely difficult to do and at the moment beyond the reach should be identified and eliminated from our activities as there is no meaning behind pursuing these activities annd currently beyond the individual’s or organization's capability. (b) There is futility in pursuing and doing activities that do not make much sense or it is difficult to find reasons for. 82

(c) Eliminate the activities that are done because you are told to do so without understanding the reason for doing the same or its underlying benefits from performing such activities. (d) Eliminate irrational actions or operations that cause undue or excessive fatigue due to a lot of physical effort, frequent stress to body movement, mental fatigue due to unwarranted work place stress, remembering a lot of things, worrying about defects or breakdowns, struggling to read illegible words and symbols etc. 83

Application of muri- A case study • A case of Japanese automobile and machine tool industry. • American and European car and machine tool industry designed a car or two-wheeler or a machine tool to last for next twenty to thirty years and to give consistent performance. • Therefore, they multiplied the calculated dimensions by the factor of safety of two. • This led to increasing dimensions of the components. 84

• Therefore, the cost of raw materials was double, the weight of the automobile or machine tool was heavier and less flexible and difficult to handle. • As per the thumb rule, half of the cost of a automobile or a machine tool consists of raw materials and if it doubles the price of the final product also nearly doubles as all other costs are directly or indirectly related to the processing of raw material. • The Japanese thought differently, and rationally with customer orientation. 85

• Their view point was (a)Is the customer going to use the same ‘car’ or the ‘two-wheeler’ for the next twenty or thirty years? (b)Is the customer going to use the same ‘machine tool’ or the ‘manufacturing technology’ for the next twenty or thirty years? (c)Is the product development and upgradation of technology going to be negligible in next two to three decades? 86

• Why design and manufacture a car or a two-wheeler for twenty to thirty years when you know that you are going to use the same maximum for a period of four to five years? • Why manufacture a machine tool to last for thirty to forty years when you know that the technology for manufacturing is going to change every five years. • This is precisely ‘muri’, or ‘irrationality’ or ‘unreasonableness’. 87

• Thus, Japanese designed a car or two-wheeler for five years because that is normally the life span for which the product is effectively used. • Therefore, Japanese used a ‘Factor of Safety’ of 1.25 instead of two. • Their raw material cost was about 62.5% of the western design. • The end product was identical in terms of product features and user friendliness. • The price of the end product was proportionately lower by almost 30% to 35%. 88

• The automobiles were also lighter in weight due to lower percentage of the raw material used. • This led to the reduction of dead weight to be carried by the vehicle thereby increasing the pick-up of the vehicle as well as reduction in fuel consumption. • The end result of practicing ‘muri’ was a better performing product which is more user friendly and priced much lower than conventional western products. 89

2. MURA • The Japanese word ‘Mura’ means irregular, uneven or inconsistent. • Either due to lack of interest or over enthusiasm we tend to deviate from the laid out standards leading to inconsistent actions. • Such inconsistencies can lead to irrationality and waste. • ‘Bottleneck Theory’ or ‘Theory of Constraints’ originate from the principle of mura. 90

• The bottleneck theory states that the neck of a bottle or the least diameter of a bottle decides the rate of flow out of the bottle. • When applied to industry, this theory states that the department in manufacturing chain with least capacity decides the plant capacity. • The corrective action is strengthening this weak department by increasing its capacity by minimum investment. 91

• The result will be quantum jump in overall performance of organization as the extra capacity is already lying unutilized in other areas. • Goldratt’s “theory of constraints’ also tends to be developed around the same principle of ‘mura’. • The theory states ‘the weakest link in a chain decides the weight that can be lifted by the chain.’ 92

• The objective is to identify this weakest link and keep on strengthening it to make organization stronger and stronger and make it grow steadily. • Kaizen also uses ‘mura’ as a powerful improvement tool. • He prefers to use discrepancy instead of inconsistency. • Discrepancy can be identified in areas like men, method, time, facilities, manufacturing aids, materials, production volume, inventory, place etc. 93

• Once this discrepancy is identified, it is analyzed, and solution is found out to eliminate the discrepancy leading to culture of continuous improvement. • Mura calls for minimum deviation between the best and the worst product or service. • Minimizing the range of deviation and minimizing the standard deviation in the statistical process control. 94

3. MUDA • ‘Muda’ means waste. • Waste is any activity that does not add value. • Juran has called all the activities that do not add value the Cost of Poor Quality (COPQ). • Taichi Ohno of Toyota Motor Company has identified seven mudas or seven wastes which have been further modified to nine mudas. • Elimination of these wastes reduces the cost of production, enhances productivity, reduces cycle time and leads to better customer satisfaction. 95

• These wastes are 1.Waste from overproduction 2.Wastes due to waiting time 3.Waste due to unwarranted transportation 4.Waste due to excess inventories 5.Processing waste or useless operation in processing waste. 6.Waste of motion due to unnecessary human movement. 7.Waste from product defects or defective parts. 96

1. Waste from overproduction - Normally, the tendency of an organization is always to overproduce to ensure no shortage of material in the market under anny circumstance. - Or to fill up the idle plant capacity during lean period. - In today’s dynamic environments, products and services have shorter life cycle. - If a product is in inventory for a long time, it may become obsolete in the market. 97

- It also may occupy plant capacity for products that are already there in the stock whereas some of the products for which customers are waiting cannot be produced due to this blockage of capacity. - It leads to piling up of excess inventory, occupying more storage space, excessive material handling cost, interest cost on unsold stock etc.

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2. Waste due to waiting time - Any time wasted in waiting for the parts to arrive due to improper line balancing, or - Waiting for job instructions due to improper planning. - These waiting time has to be identified and eliminated from the system. 3. Waste due to unwarranted transportation - Unwarranted transportation happens due to unplanned and improper plant layout leading to parts/materials being moved multiple times.

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- If materials are not properly placed, they are difficult to find leading to further wastages. 4. Waste from excess inventories - Normally, buffer inventories are kept to take care of inefficiencies like faulty sales forecasting, late deliveries from suppliers, delayed production etc. - In the just-In-Time production system the inventory is progressively reduced to increase the operational efficiency. - Excess inventory leads to increase in ICC .

100

- ICC consists of interest cost on capital invested in extra inventory, storage space, extra material and product handling, insurance, product pilferage and obsolescence. 5. Processing waste or useless operation in processing waste - Processing waste occurs due to inefficient process design and improper technology. - This can be improved by proper work study, method study, work measurement, incorporating proper technology and training to operators.

101

6. Waste of motion due to human movements. - Unnecessary human motions can be eliminated by studying ergonomics and motion study. - Incorporating simple human motions, proper arrangement of work place, proper location of operating switches, simultaneous and opposite movement of both hands leads to reduction of fatigue i.e. ‘Motion Muda’ 7. Waste from product defects or defective parts - The waste from product defects or defective part is major muda which not only affects the cost of production but also leads to the loss of sales due to customer dissatisfaction.

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- This involves major cost of rejection, rework and replacement. - The cost of an external failure is ten times the cost of detecting the same failure internally which is again ten times the cost of detecting the failure at the point of origin. - Hence the emphasis should be in the process control or implementation of the six-sigma practice which makes it almost impossible to produce a defective part. 8. Waste in the development of products - Product features that do not add value to the product or service from the customer’s point of view or his needs and expectations are considered as waste.

103

9. Waste of opportunities - A new organization may be performing better in terms of market share, purchasing prices, quality of goods produced, new technology, cheaper and better substitute raw material. - Any loss due to not utilizing this potential area of gain could be classified as an area of muda. → The elimination of muri, mura and muda can be done as under: (a) Benchmarking (b) Strategic planning (c) Business Process reengineering 104

Quality Circles • Quality Circles were the logical consequence of the various waste elimination programmes that were run in many Japanese corporations in early fifties. • It provided a platform for the workers to get together and use techniques for their quest for continuous self-development and organizational improvement. • In 1980, the first Quality Circle was launched in Hyderabad plant of Bharat Heavy Electricals 105 Limited.

Definition and Meaning • Quality Circle is a small group of employees in the same work area or doing a similar type of work who voluntarily meet regularly for about an hour every week to identify, analyze and resolve work related problems, leading to improvement in their total performance ad enrichment of their work life. • This definition is quite comprehensive and most commonly accepted. • Every part of the definition is significant. 106

→ Why small group of employees?

- Experience indicates that the optimum number of a Q.C. is about eight to ten. - If a circle is formed with less than five members, one can imagine the strength of the group when absenteeism is high. - Interaction and participation becomes more pronounced when group members are more than say, six.

107

→ Why in the same work area or doing similar type of work? - This ensures Q.C. to be a homogeneous and cohesive group - The discussion that takes place remains interesting to everyone only if members are from the same background. - It also helps the members to understand the intricacies of the problem. - Also the application of QC tools that are recommended require the expertise in the field. 108

→ Why is participation voluntary? - ‘Voluntary’ in the Japanese context has a different interpretation as compared to what is normally understood in the Indian context. - To the Japanese , the very word ‘voluntary’ implies 100% participation. - Hence, when a company in Japan decides to implement Quality Circle, every body has to enroll as a member. - Japanese have refrained from using from using the word ‘compulsory’ as it indicates not just 100% participation but achievement of targets as well.

109

• Quality circle requires some amount of creativity that is not under control, therefore, the word voluntary is used to indicate that achieving targets is not mandatory, but participation is compulsory. • In India the term ‘voluntary’ has been used to circumvent the possible opposition from the trade unions. → Why to meet regularly for an hour every week? • Meeting regularly is absolutely essential for the success of Q.C.

110

• If the meetings are kept at longer intervals then cancellation of one or two meetings will further lengthen the interval leading to complete stoppage of work. → Why to analyze and resolve work related problems? • As employees know more about their own work area than any body else, they are in a better position to solve problems occurring there. 111

Structure of Quality Circle Steering Committee /Departmental Committee

Top Management Coordinating centre

TM Steering Committee Facilitator Leader/Deputy Leader Member Non Member

112

Role of Each Element 1. Non-Members - Initially, all the employees in a particular work area may not volunteer in joining QC activity. - Some others may not be interested in activity but prefer not to get directly into it. - QC members must understand that solutions they find cannot be implemented without the cooperation of these nonmembers. - Members must encourage non-members to participate in activities so that they change their attitudes and form circle on their own. 113

2. Members - Members must be restricted to grass root level persons. - If membership is kept open only to officers and executive, the very purpose of QC gets defeated. - Members actively participate in selecting problems of their concern, analyzing it, finding solution to it and finally making presentation to the management.

114

3. Leader/Dy. Leader - In Japan, first line supervisors are nominated as leaders. - However, in India, it is advisable to make members choose their own leader. - Earlier there used to be only one person as leader. - But considering heavy absenteeism that prevails in our country, there can be one deputy leader who will take charge in absence of leader.

115

• -

The leader or the deputy leader’s endeavour is To maintain cohesiveness of the team. To plan agenda for meetings. To ensure participation from every member by assigning them work. - To encourage consensus decision making process. 4. Facilitator - Facilitator is the senior officer of the department where QC is working and is nominated by management. 116

• The facilitator - Can facilitate more than one QC. - Is responsible for success of QC’s operating in his area. - Ensures necessary facilities are available to the team for operation. - Joins Steering Committee meetings and gives results of activities of QC. 117

5. Steering Committee - The committee comprises of heads of major functions as members and chief executive as the chairman. - The committee makes top management’s support visible. • Steering committee - Meets regularly once in two months. - Takes overview of QC activity in entire organization. - Gives policy guidelines fr the propagation of 118 movement

6. Coordinating Agency - The job of coordinating agency is similar to facilitator but on a large scale. - It coordinates QC activities throughout the organization. - Steering committee decides the composition of coordinating agency. • Coordinating agency - Organizes a training programme for members when QC is formed. - Evolves norms to assess performance of different QCs.

119

- Prepares budget for QC activity. - Arranges guest speaker or library facility for members. 7. Top Management - Top Management does not fall within the formal structure of QC. - Its main job is to • Convey its commitment to all employees • Extend necessary support by attending conventions and sanctioning funds. • Form quality council and establish a conducive atmosphere. 120

Reasons of failure of the Quality Circle

• Quite contradicting results as far as Quality Circle movement is concerned have been observed. • At one extreme are the highly successful cases of Japan whereas on the other extreme there are some total failures in other parts of the world including India. • Most of the times it is the corporate culture that governs the success or failure of Quality Circle.

121

Western Management QC is made formal staff organization

Japanese Management QC is an informal group of workers.

Managers appoint facilitator to get Manager himself serves as the rid of his job. facilitator, guide and consultant. Meeting is held strictly during working hours.

Meeting is held anytime, during working hours, or lunchtime, or after the working hours.

Manager proposes the project.

QC members select their own projects.

Monetary rewards for suggestion Monetary rewards are always goes to the individual. given to the group. 122

Important Tools and Techniques 1. 2. 3. 4. 5. 6. 7. 8.

Brainstorming Affinity diagramme Benchmarking Fishbone diagramme Check sheet Flow chart Line graph Run chart

123

9. Histogram 10. Pareto-diagramme 11. Failure Mode and Effect Analysis 12. Scatter diagramme 13. Control charts 14. Quality Function Deployment 15. Tree diagramme. → These tools and techniques are essential for the clear establishment of quality improvements.

124

Brainstorming • Brainstorming encompasses the systematic and structured generation of possible ideas, on the basis of the creative thinking of a group of people. • The rules of the game are: (1)Criticism is prohibited - The participants of a brainstorming session should try not to think of usefulness, importance, feasibility and relevance, and may certainly not comment on these.

125

• Therefore, review of ideas should be postponed. • Strictly adhering to this rule is essential to prevent team members from feeling attacked. (2) Generate ideas freely - Each team member must express an idea. - Each idea that surfaces has to be shared without fear for criticism. 126

• In brainstorming session, an environment has to be created that gives team members a feeling of confidence and freedom. (3) Build upon ideas of others • The team members have to generate ideas by building on ideas of others. • One should look for combinations and improvements of ideas. (4) Try to generate as many ideas as possible • Quantity is more important than quality. • More the ideas, greater are the chances of good solutions.

127

→ Execution of brainstorming process • Often the idea generation process lasts up to forty-five minutes. • Group and cluster similar ideas. • Establish selection criteria e.g. feasibility, costs and relevance. • Appoint a group for each cluster of ideas to evaluate the ideas after ending the brainstorming session. • Groups should organize separate follow-up meetings to eliminate unusable ideas themselves on the basis of selection criteria. 128

Affinity Diagramme • Affinity diagramme is a tool to group a large amount of ideas generated by means of brainstorming. • It is used to group a large amount of ideas based on existing relationships between the various ideas, and also • To stimulate creativity and teamwork during the brainstorming process.

129

→An Example: To improve the motivation and labour productivity of the employees, the management of a company organized a brainstorming session using the affinity diagramme. (A) An improvement team was put together which formulated the following problem; “How can a work climate be created within the organization in which there is active participation of everyone, open communication and a high labour productivity?” 130

(B) On the basis of the already mentioned brainstorming rules, the team members generated some ideas, whereby each idea was written on a board, and placed in random on th board as indicated. How can a work climate be created within the organization in which there is active participation of everyone, open communication and a high labour productivity?”

131

Introduce judging & functioning tasks

Introduce an effective reward system

Formulate clear function descriptions

Introduce job rotation Introduce work consultation

Introduce a career plan

Develop an incentive plan

Handle sanctions

Introduce flexible hours

Purchase air conditioners Description of administrative processes Intensive internal communication

Make personnel statistics

Job and function oriented training Training in effective meeting Organize excursions and sports activities.

Introduce a time clock Improve the ergonomic condition Create job satisfaction

Build a common canteen 132

(C) Next, all participants were called to the front and they clustered the notes without discussions or comments. - They also moved the incorrectly placed notes. - These clustered comments were re-written on the board. How can a work climate be created within the organization in which there is active participation of everyone, open communication and a high labour productivity?”

133

Introduce judging and functioning talks

Introduce job-rotation

Introduce an effective reward system

Improve the ergonomic condition

Make personnel statistics

Introduce flexible hours

Develop an incentive plan

Create job satisfaction

Introduce a career plan

Job and function oriented training

Introduce a time clock Handle sanctions

Purchase air conditioners

Introduce work consultation Intensive internal communication Formulate clear function description Training in effective meeting Organize excursions and sports activities Build a common canteen Description of the administrative processes 134

D. The previous step resulted in the following clusters of ideas: • Judging/remuneration. • Working conditions • Communication - A header was placed above each cluster of notes. - For each cluster a group was then put together which arranged the ideas according to their priority. - The ideas with the highest priority worked out more accurately by the groups concerned and reported to the management. - Further, interim meetings were organized to establish synergy between the three groups. 135

Judging/remuneration Introduce judging and functioning talks Introduce an effective reward system Make personnel statistics Develop an incentive plan Introduce a career plan Introduce a time-clock Handle sanctions

Working conditions

Communication

Introduce job-rotation

Introduce work consultation

Improve ergonomic conditions Introduce flexible working hours

Intensive internal communication Formulate clear function description

Create job satisfaction Job and function oriented training Purchase air conditioners

Training in effective meeting Organize excursion and sports activities. Build a common canteen 136

Benchmarking • Benchmarking is the systematic and continuous process of determining what the best performances and underlying skills of leading organizations are in their strive for excellence. • And based on above, stimulate the organization’s own strive for excellent performances at all organizational levels. • It is a strategy to stimulate changes and optimize performances. 137

The Benchmark Process 1.What is to be benchmarked

2. Identify the benchmark partners

8. Implementation & Monitoring

3. Gather data

7. Develop action plans 4. Analyze the data 6. Formulate functional goals

5. Determine the performance gap. 138

When do you use Benchmarking? • Benchmarking is mostly used to compare processes and performances against those of recognized leaders. • Based on this, the performance gap between the organization and the best competitor is evaluated. • Organizational processes usually used for benchmarking are: (a)Marketing, (b)Sales, (c)Purchasing, (d)Technology development, (e)Product development, and (f)Logistics

139

Types of Benchmarking 1. Internal Benchmarking - Internal benchmarking involves comparison of internal activities and processes within own company. - Usually of interest to large organizations where it is determined as to how far other departments and divisions execute similar activities within their own organizations more efficiently and effectively. 140

2. Competitive Benchmarking - A comparison is made with direct competitors. - Operations processes of these competitors are measured and compared against its own situation. - Based on what is done by the competitor and what is lacking within the own organization, the own processes can be adjusted to improve efficiency and produce a better and cheaper product. - For example, a software producer who wants to improve his competitive position can try to figure out what Microsoft has done to become the market leader. 141

3. Process Benchmarking - Involves search for the best in class of a certain process, regardless if it is a competitor or not and in which industrial branch it is applicable. - For example, the logistical activities of a chemical company can be compared with an electronics company with an excellent logistical process. 4. Strategic Benchmarking - Used to obtain sweeping breakthroughs in the areas of productivity in order to strengthen its competitive position. - This type of benchmarking helps determining the relative competitive position of all business activities and suggests the best course to follow. 142

• This can be done in several ways such as - Comparing your own strategy and financial performance against those of competitors. - Determining from the strengths and weaknesses of the competitors in which areas your organization can outdo these competitors, and - Which improvements are best contributed to its own core competencies.

143

Steps to execute Benchmarking Process 1. Determine what should be benchmarked. - It is determined which functions, tasks, processes, or activities within the own organization will be subjected to benchmarking. - Based on the critical success factors, one or more of processes will be selected for benchmarking. - Appoint a team that will map these processes in detail. 144

- The team will identify process stages and determine the process flow, the procedure for each process stage, relevance performance indicators, inputs and outputs of the process and customer requirement. 2. Identify the benchmark partners. - Important criterion for the selection of benchmark partners should be outstanding regarding the competitiveness of activities, availability of reliable information about the partners. 145

- Identifying benchmark partners requires consultation of sources such as databases, professional magazines, newspapers, bank reports, annual report of competitors, seminars, consultancy bureaus, universities etc. - Also, interviews with customers, suppliers, employees and bankers. 3. Gather Data about the performances of partners. - Through interviews, surveys, consultation and technical magazines.

146

- Process and working methods of partners are examined thoroughly. - Performance indicators are measured and qualitative and quantitative data is gathered. 4. Analyze the data. 5. Determine the gap between the performance level of organization and that of its benchmark partner. - Differences in working methods and causes of the differences in performance is documented. - The main question to be asked is “why is the efficiency and effectiveness of the own process lagging behind that of the best in class?”

147

6. Based on the results of the benchmark study, new functional goals are established to close the performance gap. 7. The goals are now transformed into concrete action plans. 8. Implement specific actions and monitor the progress. - Verify whether actions are executed as planned, whether the process is changing, and if the benchmark goals are being met. - If required, possible adjustments are made. 148

9. Start again - Benchmarking is a process of continuous improvement. - There are always better and improved methods. - Competition is not standing idle. - In due course of time, new best practices are developed.

149

Example from Rank Xerox, Netherlands • “In the past, the order processing department of Rank

Xerox had 20 employees, wherein the throughput time of an invoice was 5 to 8 days. After a benchmark study, the activities within the department were divided into four segments based on the invoice amount. Finally, the number of persons in the department was reduced and an invoice was sent within 24 hours in respect of 95% orders.” • The reason for the benchmark study was that customers were displeased about long delivery time. • A shorter delivery time also resulted in an accelerated invoicing, a smaller department, a higher customer satisfaction and improved liquidity. 150

Fishbone Diagramme • A fish bone diagramme or Ishikawa diagramme is a graphic representation of the relationship between a given effect and its potential causes. • The potential causes are divided into categories and sub-categories in such a way that the display resembles a skeleton of fish. • It is used to analyze and facilitate the search for solutions based on cause and effect relationship. • Useful tool in brainstorming, process evaluation, and problem solving. 151

Steps for drafting a fishbone diagramme 1. Define the effect clearly. Place a short description of this in the box. 2. Determine during brainstorming sessions the most important categories of causes. → Possible categories are: • Equipments • Working methods • Environment • Organization 152

• Materials; raw materials, semi-manufactured articles, energy, data and information. • People-employees / management; knowledge, skills, attitudes style and behaviour. • Information • Measurements 3. During brainstorming look for a couple of possible causes and place these on diagramme by the corresponding category. 4. Judge and analyze the possible causes. 153

5. Select a small number (3 to 5) of highest-level

causes that are likely to have the greatest influence on the effect. 6. Look for the possible solutions for these causes. 7. Introduce the changes. → Example: A copying company receives a lot of complaints about poor quality photocopies. Management decides to analyze this problem through a fishbone diagramme.

154

Methods Handling Original setting

Materials Liquid

Copying paper

Storage period

Degree of exposure Level Drying Time Storage Contamination Paper quality method Poor quality photocopying Dirtiness Speed Condition of head of roll Dirtiness Operating of table hours Copying Machine

Environment

Machine 155

Check Sheet • A check sheet is a form for systematic data gathering and registering to get a clear view of the facts. • Used to keep track of how often something occurs. →Example :A copying company notices a sudden increase in complaints about poor quality photocopies. Management decides to analyze these complaints by using a check sheet to trace the causes. 156

Types of Defects Causes of defects

Missin Muddy g pages copies

Humidity

//

Machine Jams

Pages out Torn of sequence /soiled pages

Total

//// ///

/

11

//

/

3

//

8

/

10

5

32

Toner

///

//

Conditions of the original

/

//

Total

6

14

/ ////

7

/

157

Flow Chart • A flow chart clearly shows the steps of a process, by using standard symbols. • It facilitates to examine and understand relationships in a process. • Used to document and analyze the connection and sequence of events in the process. 158

How do we use Flow Charts ? 1. 2. 3. 4. 5. 6.

Decide which process should be mapped. Define the start and end of the process. Determine the activities, decisions, inputs and outputs of the process. Map the process using standard symbols. Draw feedback loops in the chart and ensure that each process does not have more than one output. Compare the flow chart with the actual process.

159

Standard symbols used for drafting flow charts 1. The start or end of the flow chart. Start

End

2. A rectangle indicates a process or activity

160

3. A diamond indicates a decision 4. Arrow shows the direction or flow of the process. → Example: A flow chart of the process “serving tea”.

161

Start to prepare tea Take the kettle and fill it with water Put the filled kettle on the stove Turn on the stove In the meantime, take the tea bags, tea pot, and cups

When the water starts boiling, turn off the gas Pour boiled water in the tea pot Put the tea bag in the pot and let it stand for a while

Milk ?

No

Yes Take Milk Pour Milk

Sugar ? Place the cups on the table and pour tea

No Yes Take sugar Add sugar

Drink tea

Stir

162

Line Graph • Representation of the relationship between two variables (data) in a simple graphical form. • Used to visualize the relationship between two variables and to study fluctuations in time. • Particularly used to identify trends in a certain process. 163

An example of number of complaints from customers over the last 8 months. Most of the complaints are received in month 4 and least in month 6 10 8 No. of complaints 6 4 2 0

1

2

3

4

Months

5

6

7

8 164

Run Chart • A run chart encompasses a kind of time series graph to monitor a process. • A run chart is used to identify trends and significant changes in a process. • A trend is a series of points, which display an upward or downward slope.

165

→Example: The manager of a jewellery

shop in Goa notices that there are periods where he cannot handle the demand. There are also periods where he hardly has anything to do. He decides to study the fluctuations in sales that occur during the year and to identify peaks and lows. He hopes to forecast the queue in the shop better with this tool. To do this he collects the following data, which he marks out on a run chart. 166

Month

Sales (x Rs 100,000) Month

Sales (x Rs 1,00,000)

January

2

July

4.5

February

6.5

August

3

March

4.5

September

5.5

April

9

October

6

May

5.5

November

6.5

June

4

December

11

167

11 10

Sales (x 8 Rs 100,000)

6

4 2 0 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

168

• The run chart displays an interesting pattern. • There are peaks in February (Valentines Day), April (Easter) and December (Christmas). • The least are sold in January because people have to be conscious about expenses after the holidays and in August when many are on vacation. 169

Histogram ►What is it? • A histogram is a bar diagramme, which indicates how data is divided in a group of values. • Also known as frequency distribution. • The data are displayed as a series of rectangles of equal width and varying heights. • An examination of the patterns of varying heights offer insight into process behaviour. 170

► When do you use it? • A histogram is used to clearly show where the most frequently occurring values are located and how the data is distributed. • Whenever numerical data is in interval scale. • Based on visual information about process behaviour, priorities can be set about improvement efforts. ► How do you use it? 1.After the necessary measurements are taken, count how many data values you have gathered.

Number of values

Number of classes

Less than 50

5-7

50-100

6-10

100-250

7-12

More than 250

10-20

172

5. Determine the section boundary value(s) using the following approach. (a) Lower boundary value for the first section = Minimum value. (b) Upper boundary of the first section= Lower boundary + section width 6. Make a frequency table for all values. 7. Draw a histogram based on the frequency table. Mark the class limits on the horizontal axis and the frequency on the vertical axis. 8. Write the title and number of values in the empty spaces of the diagramme. 173

►Example: The Human Resource Manager of an organization decides to study how long it takes to recruit administrative employees, from the moment vacancy is known till the day the new employee is hired. He studies the files of his department and registers how many working days the procedure took. Time spent in recruiting new employees (in working days): 32,27,27,36,31,31,19,38,12,28,25,33,48,44,16,34,21,28,27,59,31,31,39,36,57, 53,29,36,47,39,26,41,34,38,42,41,13,22,37,21,27,31,21,29,24,29,17,18,26,22, 19,33,26,32,21.

• Number of data values= 55 • Range= 59-12= 47

174

• The class width= 47 divided by 10= 4.7 rounded off to 5 • Lower boundary value for the first section=12 • Upper boundary for the first section= 12+5=17 • Draw a frequency table. • Based on the above draw a histogram.

175

►Frequency table: Class

Limits

Frequency

1

12-16

3

2

17-21

8

3

22-26

7

4

27-31

14

5

32-36

9

6

37-41

7

7

42-46

2

8

47-51

2

9

52-56

1

10

57-61

2

procedures • The Totalhistogram indicates that most recruitment 55 take 27 to 31 days i.e. class 4. 176

177

Pareto-diagramme ►What is it? • A Pareto-diagramme is a graphical tool to gain insight into the most important causes of a problem. • It is a bar chart in which the data is arranged in descending order of their importance. • The diagram displays the relative contribution of each item to the total effect in decreasing order.

178

• Based on this, the most important problems can be distinguished from the less important ones and the greatest improvement can be realized with the least effort. • The diagramme is based on Pareto-principle, which states that just a few of the defects account for most of the effects. • This pattern is called the 80/20 rule and is applicable to all sorts of situations; thus, it is likely that only 20 percent of your equipment problems account for 80 percent of the downtime. 179

• The issue here is that of many problems, only limited number are essential and should be solved immediately. • The rest can be solved later. • A Pareto-diagramme clearly indicates which problems belong to this small number. • Interpretation of the diagramme should be done with care, because the most frequent occurring problems may not the most expensive ones.

180

►When do you use it? • Helps in decision making process by putting the most critical issues into an easily understood framework. ►How do you use it? • Steps for drafting a Pareto-diagramme. (1)Formulate the problem (2)Select the time period during which an inventory of is causes should be made (3)Design a check sheet for registering the data

181

(4)Make an inventory of the causes. Count the number of times each cause occurs and write down on the check sheet. (5) Calculate the total (6) Rank the causes in decreasing order. (7) Draw the bar chart with two vertical axis. (a)Along the left vertical axis, mark the measured values for each cause, starting from zero till the total number of causes. (b)The right vertical axis should have the same height and should go from 0 to 100%. 182

(c)The right vertical axis displays the cumulative percentages. (d) List the different kinds of causes along the horizontal axis, from left to right in decreasing order of frequency or costs. 8. Draw a bar above each item whose height represents the number for that cause. 9. Construct the cumulative frequency line. (a) First draw a cumulative bars by adding the number of each cause from left to right. (b) Draw a cumulative curved line from zero till 100 % level on the right vertical axis, by connecting the top right hand corner of the bars with each other.

183

10. Draw a horizontal line from 80% (on the right vertical axis) to the left till the point of intersection with the cumulative line. (a)Draw a vertical line from this intersection downwards till the horizontal axis. (b)Left from this intersection point, 20% of the causes are located (the most essential bottle necks) causing 80% of the damage. 11. Thus, these 20% causes require immediate attention. 184

►An Example: The manager of a hotel is concerned about the number of complaints he receives from customers. That’s why he has decided to study the most important problems, in order to initiate corrective measures. With the help of his employees, he drafts a check sheet of all known problems for each separate department. During the following four weeks, the employees register the complaints. They use the check sheets shown in the table. 185

• Restaurant

Types of complaints

Number of complaints

Cold food

0

Slow service

10

Expensive

0

Cork part in the wine

0

Overcooked food

0

Impolite personnel

4

• Conference room Types of complaints

Number of complaints

Defective equipment

0

Coffee too late

10

Too few provisions

0

Too cold

1

Impolite personnel

1 186

• Recreation centre Types of complaints

Number of complaints

Hygiene

0

Unavailable facilities

2

Cold swimming water

0

Too crowded

0

Defective equipment

0

Impolite personnel

1

• Bedrooms Types of complaints

Number of complaints

Beds not made

0

Too cold

0

Not clean

6

TV’s not working

0

No towels

1

Noisy

4

187

• During the period studied, 40 complaints were registered. • From the Paretos diagramme, it appears that 90% of the complaints relate to only 4 of the 23 possible causes. • These are ranked according to priorities viz., (1)Slow service in the restaurant (2)Coffee arrives too late in the conference room (3)Bedrooms are not clean (4)Restaurant personnel is impolite (5)Noisy rooms • These complaints should be solved first.

188

189

Failure Mode and Effect analysis • The ‘failure mode’ can be defined as the manner in which a product, service or a process can fail to meet the specification. • The failure mode is basically associated with a non-conformance or a defective product or a deficient service to meet the customer expectations. 190

• The ‘effect’ is the impact on the customer if the failure mode is not prevented or corrected. • The customer could be an internal customer or an external customer. • The ‘cause’ is a deficiency that results in a failure mode. • The causes are sources of variability associated with the input variables. • The failure mode is an in-process defect or deficiency in input variables. 191

• Effect is the impact of such deficiency or defect in the process on the output product and the services. • FMEA identifies ways the product, service, or the process can fail to meet the critical customer requirements and to work out a plan to prevent to prevent these failures. • FMEA involves estimating risks of specific defined causes with regard to these failures and to plan for preventing these failures from occurring. • Prioritizes the actions that help to improve the process. 192

• FMEA identifies the potential failure modes and rates the criticality of their effect. • Evaluates the occurrences of the causes and ability to detect the causes when they occur. • The potential occurrences and causes are ranked with reference to their severity. • Focuses on eliminating potential causes of such occurrences. 193

When FMEA needs to be carried out? • When new products, processes and systems are being designed. • When existing processes or the designs are being changed. • When existing designs and processes are used in the new application or the new environment. • Also implemented after a problem-solving study to prevent the recurrence of the problem. 194

• FMEA is measured by the numerical number ‘RPN’ or the ‘Risk Priority Number’. • This decides the risk of a particular failure mode. • RPN= SEV x OCC x DET • SEV stands for severity or how significant is the impact on the product and services and ultimately to the customer who could be either internal or external or both. • The scale fixed is 1 to 10, where 1 is for the best or minimum severity or effect of the failure and 10 is for the worst or most severe effect of the failure. 195

• • -

‘OCC’ represents the occurrence. How likely is the cause of failure mode to occur. “DET’ stands for detection. How likely is the current system to detect the cause of failure mode if it occurs. → Benefits of FMEA • To make the output of the organization error free. • Ensures better quality and reliability of the output. • Ensures customer satisfaction.

196

• Reduces the product/service development timing and cost. • Maintains documents and tracks the actions taken to reduce the risk. • Increases the safety of the product/service usage. • Helps in the improvement stage of ‘Six sigma’ where the organization needs to identify the risks for vital inputs to optimize the resource usage.

197

Procedural Steps in FMEA Analysis • Determine for each process step the possible failure modes and anticipate possible failures in the process in relation to the other processes. • Indicate what the cause is of each failure mode. • Indicate what the effect is on the controllability of the process. • Quantify the weak points in the process, by estimating the Probability of occurrence (P) and the Severity of the failure (S) for each failure mode. • The product of these two factors is the Risk Priority Number (RPN). 198

Factor P and Factor S Factor P can be determined with the followingFactor S can be scaled as follows scale 0= not possible/never

0= no problem

1=very low

1- very low/ hardly any problem

2= low

2= low/ to be solved through intervention of the employees .

3=not as low

3=less serious

4= less than average

4= less than average

5= average

5=average

6=above average

6=above average

7=rather high

7=rather serious

8=high

8= high

9=very high 10= certain

9= very high 10= catastrophic /dangerous to people 199

• Determine for each failure mode the actions necessary to improve the weak points in the process. • The failures with the highest RPN factor have the highest priority. • Report the FMEA results in writing to the management. • Give feedback to the team members about the status of the executed actions. • Verify and evaluate the actions. 200

An Example of Operations in Furniture Company Process steps

Failure mode Cause

Supply logs

Difficult to supply

P

S

RPN

Action

Inadequate Production availability of delay transportation and handling equipment

7

10

70

Provide adequate transport and handling system

Sort logs Logs are falling from sorting band

Wrong construction Production of the rolling band stagnation

5

7

35

Redesign the rolling band

Saw logs Difficult to saw

Logs are too big for Damage to the 6 the sawing machine sawing machine. A wrong saw blade was assembled in the Bad sawing sawing machine quality

5

30

Optimize the selection process

Danger to personnel

Effect

201

Process steps

Failure mode

Drill Drilling boards machine regularly defective

Cause

Effect

P

S

RPN

Action

Maintenance Production 8 system is not delays adequate

5

40

Develop and implement a preventive maintenance system

10

50

Install a dust extraction system.

Scour Danger to Insufficient High 5 boards personnel due extraction of absence due to dust dust to illness development

202

Statistical Quality Control •SQC is the application of statistical techniques to accept or reject products already produced, or to control the process and, therefore the quality while the part is being made. •While the latter is called process control, the former is named acceptance sampling. ►SQC for Process Control •SQC is used for controlling quality during production in mass production industries which produce standard products. 203

• SQC is based on probability theory. • When several identical parts are manufactured, some are a little large and some a little small, but most will be approximately the same. • The middle or average will be most frequent, with smaller and larger sizes as extremes from the average. • When the frequency or count of items by size is plotted with size on the horizontal scale and count on vertical scale, a normal distribution or bell-shaped curve is obtained. 204

30 25

No. of cases

20

15 10 5

0.995

1.000

1.005

Size in inches 205

• Variations in size between 0.995 inch and 1.005 inches, with most measuring 1.000 inch are due to chance causes. • Chance causes are inherent and cannot be controlled or prevented. • Chance causes are ignored because any effort to eliminate them is uneconomical and may be counter-productive too. • However, if the size measures beyond 1.005 inches or below 0.995 inch, it is not due to chance causes but because of assignable causes. 206 • In other words, the part is not normal.

•Assignable causes included internal temperature and wear and tear of machine parts, a worn out tool, improper dimension of raw material, or setting of the machine being changed unintentionally. • When it is known that improper size is made as a result of an assignable cause, it is possible to stop, detect the cause and rectify it. •In practice, SQC for process control manifests through control charts. 207

• Control charts, first developed by Dr. Walter A. Schewhart of the Bell Laboratories during 1920s, are horizontal extensins of the bellshaped curve. • A typical control chart consists of a central line corresponding to the average quality at which the process is to perform and two other lines corresponding to the upper and lower control limits, also called the tolerance limits. • The vertical scale indicates the quality variations and the horizontal scale the time. 208

• Samples of product are taken at specified time intervals, quality checked, measured, averaged and plotted on the chart. • If the values plotted are within the control limits, the processing is said to be under control. • If values move away from the control limits, the process must be improved. Upper control limit Quality variations

Average quality Central line Lower control limit Time

209

►Acceptance Sampling • A statistical technique used to take a decision regarding acceptance or rejection of a lot without having to examine the entire lot. • Acceptance sampling is based on the premise that a sample represents the whole lot from which the former is drawn. • In this method samples are taken out and are carefully inspected to detect defects. • On the basis of number of defects found, the lot is accepted or rejected. 210

• If defects are few, lot is accepted and it is rejected when defects are more. • Thus, acceptance sampling is used to take a decision regarding acceptance or rejection of a lot without having to examine the entire lot, thereby providing economy of inspection. • It may be used at any point in a plannt, but most often found in incoming inspection. • Thus it becomes significant part of overall quality control programme of a plant. 211

Advantages of SQC 1. Helps prevent defects from occurring. Assignable causes signifying deviations in quality are detected and rectified. Costly rework, rejection, and scrap are avoided. 2. Avoids risk of accepting the bad lot. 3. Emphasizes on inspection of only samples, SQC avoids inspection of the entire lot. 4. Ensures maintenance of high standards of quality and enables the users to build up their goodwill.

5. Helps in auditing of quality regarding the producer’s products. 212

Types of Control Charts • Control charts can be broadly classified as (a)Control charts for variables, (b)Control chart for attributes • Variables are quality characteristics that can be measured on a continuous scale for example, the diameter of the shaft can be measured by a dial micrometer before taking a decision regarding quality i.e. whether the diameter is within the permissible limits of variation. 213

• Attributes are quality characteristics which can be classified into one of the two categories namely good or bad, defective or non-defective. For example, a painted surface is good or bad depending on the quality of the workmanship of the painter and the quality of the paint used.

214

Quality Characteristics

Applicable control chart

Formula to compute control limit

Variables

X (bar) - R Chart

Control Line ( CL)= Grand Mean = X (double bar)

(Mean-Range chart)

Upper Control Limit (UCL) = Grand Mean + A2 X Mean Range (R bar) Lower Control Limit (LCL)= Grand Mean- A2 X Mean Range (R bar)

For R chart

Central Line (CL)= Mean Range= R (bar) Upper Control Limit (UCL)= D4 x Mean Range (R bar) Lower Control Limit (LCL) = D3 x Mean Range (R bar)

A2, D3 , and D4 are constants whose value depends on the sample size, ‘n’. 215

Sample size ‘n’

A2

D3

D4

2

1.880

0

3.267

3

1.023

0

2.575

4

0.729

0

2.282

5

0.577

0

2.116

10

0.308

0.223

1.777

15

0.223

0.348

1.652

20

0.180

0.414

1.586

25

0.153

0.459

1.541 216

Construction of Control Charts • A control chart is a graphic comparison of process performance and data with computed control limits drawn as limit lines on the chart. • Measurements taken from product quality are plotted on a graph sheet on which three limit lines are drawn viz, (a)A central line indicating the average level of quality characteristics. (b) Two lines equispaced from the central line indicating upper control limit and lower control limits. (c)After these three limits are established, they become the benchmarks against which to compare future samples. 217

• The control chart distinguishes between chance causes and assignable causes of variations by fixing the upper control limit and lower control limit. • If the process operates under chance causes of variation the probability of actual variation to exceed the control limits is very low. • If actual variations exceeds control limits, it gives a signal that assignable causes have entered into process and action is required for controlling the process. 218

►Chance causes are reasons for minor variations in the quality characteristics that are inspected - These causes do not cause the item to be rejected as the variations are within the limits (tolerance limits). - Chance causes of variations are inherent in the process. ► Assignable causes are external to the process and causes large variations in the quality characteristics making the item liable to be rejected.

219

- Defective raw materials, faulty machine settings, worn out machine parts or worn out or defective tools cause major variation in the quality characteristics and are called assignable causes of variation. - Assignable causes must be identified and eliminated from the process. • Usually two kinds of information are available from control charts. (a)Whether the process is running under stable condition or not i.e. whether the process is under ‘state of statistical control or not.

(b)Whether the process is meeting the desired quality standards or not. - `` 220

Process Capability • Once the process is in control, it is important to know how it will perform over a period of time. • Process capability is a measure of how well a process is performing compared with its expected level of performance satisfying customer requirements. • Process capability may be defined as the “minimum spread of a specific measurement of variation which will include 99.7% of the measurements from the given process. 221

• Thus, Process capability = 6 σ ( where σ = standard deviation). • 6 σ is taken as a measure of the spread of the process and is called natural tolerance. • Using process capability, it becomes possible to know the percentage of products which will be produced with in limits of ±3 σ on either side of mean x (bar).

222

Methods to measure process capability • The different methods used to measure the capability of a process are 1.Visual analysis 2. Process capability (Cp ) index 3. Cp K index 223

(1) Visual analysis (b) Carried out on the base of careful analysis of control charts wherein the upper specification (+3 σ ) and lower specification (– 3 σ ) limits are also included. UCL USL X (bar) LSL is not “not capable process” since the range of expected (b) The above process performance is outside specification limits (USL and LCL LSL).

224

(c)The process shown below is ‘capable of satisfying customer requirements.” USL

UCL X (bar)

LSL

LCL

225

(d) The following is “highly capable process” and even if an out-of-control condition exists, the process will satisfy the customer’s requirements. USL UCL X (bar) LCL LSL

226

Process Capability Index (Cp) • The Cp index measures the process potential by assessing whether the natural tolerance (6 σ) is within the specification limits. • Cp = (USL-LSL)÷ 6 σ (a)A Cp of 1 is considered as adequate and exactly the same as the tolerance width. (b)If Cp < 1 the process lacks potential to meet customer requirements. (c)If Cp> 1 the process has the potential to meet the customer requirements.

227

• The Cp index only looks at the potential process performance by mainly concentrating on the spread of the process rather than its location. • Therefore another index CpK is used. • CpK uses the process mean to measure constantly the distance between the process mean and the upper and lower specification limits. • CpK =lesser value of [{USL –X (bar)} ÷ 3 σ or {X (bar) – LSL} ÷ 3 σ ] • The higher the value of CpK the more this is indicative of process capability. 228

• Other comments based on Cp and CpK analysis are as under. (1)The Cp does not change as the process centre changes. (2) Cp = CpK when process is centered. (3)CpK is always greater to or less than Cp (4) A CpK value greater than 1.00, indicates the process confirms to specifications. (5) A CpK value less than 1.00, indicates the process does not confirm to specifications 229

Control charts for Attributes 1. Construction of ‘np’ chart (Number of defects) for constant sample size ‘n’. • Sample size= n • Number of sub-groups= K • Number of defects per sub group= c’ • Fraction defective p= c÷n, calculated for each of K sub-groups. - Thus, p1 = c1÷n, p2= c2÷n,……….. Pk = ck÷ n - Average fraction defective p(bar)= ∑p÷ K

230

• • •

p(bar)= (p1 + p2 + p3……….+ pk) ÷ K p (bar)= {c1/n + c2/ n + c3 / n+ ck /n} ÷ K p (bar)= {c1 + c2 + c3 +……… ck }÷ n x K p (bar)= ∑ c ÷ nK Central line, n p(bar) = ∑ c ÷ K UCL= np(bar) + 3√ np(bar) (1- p(bar) LCL= np(bar) - 3√ np(bar) (1- p(bar) UCL np

CL= np(bar) LCL

No. of sub-groups

231

2. Construction of ‘p’ chart for varying sample size. • The data collected gives the sample size (n1, n2, …. nk ) for k subgroups, and values of number of defects (c1, c2, …….ck) for k subgroups. • Fraction defective for each sub group is calculated as p1 = c1 / n1, p2 = c2/ n2, pk = ck / nk • Central Line p(bar) = ∑ p ÷ k= (p1+ p2+…. pk) ÷ k • UCL= p(bar) + 3√ p(bar) (1- p(bar)÷ Sample size • LCL= p(bar) - 3√ p(bar) (1- p(bar)÷ Sample size • Since sample size varies for each sub-group; there will be as many values of LCL and UCL as the number of values of sample sizes i.e. n1, n2,….. nk 232

UCL

np

CL= p (bar)

LCL

No. of sub-groups

233

Quality Function Deployment • Quality Function Deployment (QFD) is a method to systematically and structurally convert customers’ wishes in an early stage into critical aspects of products, services and /or process. • The customers’ wishes are confronted with the help of matrices, with detailed technical parameters and project objectives. • Because of this form, the figure is called ‘House of Quality’. 234

• The critical product specifications/parameters are translated in details by means of three sequel houses leading to - The manner in which the process is to be controllably executed - Achieve stable and acceptable product quality. • In the first house, the link is made between customer wishes and product specifications. • In the second house , the relationship between these product specifications and the characteristics of the product parts is central.

235

• In the third house, the link is laid between product parts and process characteristics. - Thus, performance indicators of critical processes are established. • Finally, the process characteristics are translated into fourth house into controlled way manufacturing process operations are executed. - Thus, resulting into standard working procedures for each step.

236

When do we use QFD? • QFD is used to better understand the customer and develop products, services and processes in more customer-oriented way. • The objective is to allow the “voice of the customer” to be heard more clearly in the product development process and related operations. • Also helps in complying with the “do it right the first time” principle. 237

How do we use QFD? • Steps for building the quality house 1.Define the customer, make an inventory of the customer’s expectation and measure the priority of these wishes using weighing scores. (b)An inventory can be made of the customer’s expectations (product attributes) through interviews , inquiries etc. (c)Visiting trade shows, experience of salesmen, customer registration, direct contact, contact with competition are used for mapping customer expectations.

238

2. Compare the performance of your product with that of competitive products. - Evaluate your product and note what the strong and weak points are according to the customer. 3. Identify and quantify the improvement objectives. - Note which expectations of the customer need to be improved in relationship to the competitive product and indicate this in the score. 4. Translate the customer’s expectations into quantifiable technical parameters or product specifications. 239

- State how the customer’s wishes can be used to your advantage. - Examples of technical parameters are dimensions, weight, number of parts, energy use, capacity, etc. 5. Investigate the relationships between the consumer’s expectations and technical parameters. - Determine the level up to which the customer’s expectations are influenced by the technical parameters and indicate their relationship through score. 240

6. Make relationships between these parameters explicit in the roof of the quality house. 7. Record the measure of unit of all technical parameters and express these parameters in a measurable data. - For example, dimensions of the object are 150 mm (l) x 320 mm (w) x 550 mm (h) and the weight is 15 kgs. 8. Determine the target values of the new product design - Note the proposed improvements of the technical parameters.

241

An Example of Attaché Case 1. Establishing the customer’s expectations • Established by means of brainstorming. • This step deals with what is important to the customer such as easy to carry, easy to open, durability etc. • These demands aren’t all of equal importance. • The importance of these demands is indicated with the help of weight factors. • A five point scale is used here, with 5=very important, 4=important, 3=less important (but nice to have), and 1= not important. 242

• Accordingly, the “easy to carry" demand has a value of 2 points because it is not so important, and “durable” has 5 points because it is very important. 2. Product evaluation • The current product (attaché case) is compared to one or more competitive products. • Insight is gained as to how our product performs compared to that of the competition. • In this case, a five-point scale from excellent to poor is used • 5=excellent, 4=good, 3=fairly good, 2= not so good, and 1=poor 243

• Here, our product can be shown as a white square and that of the competitor as a black square. • Assuming that our attaché case was considered more durable and more stable in standing position than that of competition. • Assume, on the other hand, the attaché case of competition is easier to open and close, and the lay out of the interior is more conveniently arranged and hence the content is easier to find. • This immediately shows the potential for improvement of our product. 244

3. Project objectives • In this step, the customers’ expectations we want to improve in relation to the competitor are indicated. • The target value for each product attribute is indicated through a score. • Once again, a five point scale is used • For the attributes that need no improvement, the target value is put on par with the current score of the product evaluation. 245

• The project team during brainstorming decided that the product attributes “easy to carry”, “adjustable capacity”, “durability”, “stable when standing” and “privately accessible” did not need improvement. • They received a target value of 4, 4,4, 4, and 3 respectively. • The customer’s expectation “easy to open” and “easy to find content” which now have a score of 3 and 2 (lower than that of competition) will now be improved to a score of 5 (better than competition. 246

• The wish “easy to close” (score 3) will be improved to a score of 4 (small improvement). • On the basis of the target value, the improvement rate can now be established. • The improvement rate= (target value÷ evaluation score) • So it can be concluded that the QFD team has decided to improve the opening and closing of the suitcase and to improve the ease of finding the contents at an improvement rate of 1.7, 1.3 and 2.5 respectively. 247

• Next, the weight (importance) of each customer’s expectation or product attribute is established as a project objective. • The weight =(Improvement rate x relevant importance) • Accordingly, the weight of “easy to carry”= 1x2=2 • The weight of “easy to open”= 1.7x4=6.8 • The weight of “easy to close”= 1.3x3= 3.9 etc • All weights are then added and % age weight of each attribute is calculated. 248

• Thus, the weight of “easy to carry” has a percentage value of (2/33.7)x 100=6%, Durability has a weight percentage of (5/33.70) x100 = 15%. • The total of all percentages is 100. 4. Technical parameters/ product specifications • Once we finish visualizing the importance of customer’s expectation, we need to know HOW to handle these expectations. • Through brainstorming it is decided which technical parameters or characteristics are 249 influenced by different customer expectations.

• More specifically, the measure in which how specifications relate to what customer’s expectations. • Thus, nine technical parameters related to customer’s wishes are distinguished. • These are volume, safety latch, weight when empty, etc. • The product design is determined by these parameters.

250

5. Interaction Matrix • In this step, the level in which the technical parameters influence the customer’s expectation is studied. • This is done in the interaction matrix. • Here, the relationships between customer’s expectations or product attributes and technical parameters are studied. • Involves coupling of WHAT and HOW. • An empty row in the matrix means that there is no relationship between technical product characteristics and the related customer’s expectation. 251

• An empty column points to an unnecessary product characteristics, which if included, would make the product expensive. • For each cell of the matrix, it is determined whether there is a relationship between the attributes and parameters, and if so, how strong this relationship is; as explained under: (a)A black dot relates to a strong relationship (9) (b)A blank point is a medium relationship (3) (c)A triangle encompasses weak relationship (1) (d)An empty cell represents that there is no interaction between customer’s expectation and product specifications.

252

• Thus the “easy to find contents” is strongly related to the “number of segments or compartments”, has a weak relationship with the “volume” and medium relationship with “opening angle of suitcase”. • “Easy to carry” has a strong relationship with the “volume” and weak relationship with “empty weight” and “material”. • Next, the project importance is indicated for each cell in terms of score, as under: • Cell score=relationship’s strength x weight (%) 253

• Thus, cell score “Easy to Carry”: Volume= 9x6=54 • Cell score “ Easy to Open”: Wear of the lock=3x20=60 • The sum of the cell scores per column indicates the priority of the technical parameters for the project. • Accordingly, the technical parameter “volume” has a total score of 138 points and “material” has a total score of 150 points. • All these scores are then added up; which in this 254 example comes to 1616.

• Next, the priority per technical parameter is indicated • Which product specifications deserve special attention to meet the demands of the customers? • In this example, the parameters “number of opening steps”, “number of segments” and “wear of lock” have the highest priority of 21%, 19% and 14% respectively. • In designing/redesigning phase, these specifications must receive special attention. 255

6. • •

•

•

Interactions between production specifications (Technical parameters) These interactions are indicated in the roof of the House of Quality. The “number of segments” has a weak relationship with “empty weight” and a medium relationship with “volume” “Lock wear” has a strong relationship with “closing force” and medium relationship with “number of opening steps” and “safety lock” All these relationships are made explicit in the roof of the House of Quality which is important for improvement of product specifications. 256

7. Technical analysis • In this part of the House of Quality the measurement unit of all technical parameters is indicated. • For example, the measurement unit of “volume” is cm3, the measurement unit of “closing force” is Newton (N) and the measurement unit of “empty weight” is kg. • Next, our product and the competitive product are evaluated on these parameters. • Our attaché case has 6 steps to open it, whereas the competitive product requires four. 257

• Our lock is also lasting till 5000 acts of use, whereas the lock of the competitive product starts showing defects after 3500 acts of use. 8. Target Value • Target values are determined based on the technical data and priorities of the parameters. • Target values help the improvements of technical parameters which management pursues. • Design team execute these improvements.

258

• In this example, the emphasis is mainly on reducing the number of steps to open the case, for which target value of 2 is chosen. • The solution to this problem lies in central safety locking principle. • With this, the durability also gets improved. • The number of segments are also increased from 5 to 8 to improve clarity of arrangement.

259

Taguchi’s Quality Engineering • Taguchi’s method of experimental design is basically a statistical experimentation tool concerned with quality control techniques at pre-production stage. • Incorporates the quality considerations at an early stage of product designing- prototype and final and the process designing-designing and installation of a manufacturing process onwards. • The potential weaknesses of the product and process is identified at an early stage and eliminated even before the same is installed or produced. 260

Quality and the Loss Function • If any product or service does not perform as per the targeted performance level fulfilling the customer’s needs and expectations, the products or services create loss to the society. • The cost includes the tangible cost of warranty and servicing cost as well as the loss of the product cost, including the manufacturing, shipping and the government taxes levied on the product. 261

• The cost also includes the intangible cost of customer dissatisfaction, loss of future sales, loss of market reputation and increased marketing effort to overcome this damaging effect of product non-performance. • Taguchi’s focus is more on controlling the variation in product performance. • According to him, a product does not cause a loss when it is just outside the limits or a slight deviation from the target. • Main objective of quality improvement programme should be to minimize the product performance deviation from its target value. 262

• The smaller is the performance variation, better is the quality . • The larger is the deviation from the standard, the greater is the loss to the society i.e. greater the loss of the consumer and the producer together. • According to Taguchi, the loss is directly proportional to the square of the deviation from the target. • Taguchi’s equation expressing loss to the society is given as L(Y) = {M/D2} (Y-t)2 • Graphical representation of the loss function L(Y) when the performance Y of a product deviates from the desired target t. 263

M is the producer’s loss in monetary terms when the product tolerance D is exceeded

Customer tolerance Loss

M

Func tion L(Y)

Target

t

t-D Performance (Y) t+D

264

Taguchi’s Experimental Design • Main objective is to identify the factors which are responsible for the product and process variation and control their settings to optimal level. • It helps in removing bad effect of the cause thereby achieving a more robust, stable and higher quality products and services. • Since it is applied at pre-production stage prior to setting of the manufacturing process, it eliminates number of time-consuming and costly tests thus saving the cost and preventing wastage of products. 265

• The underlying philosophy is to apply the quality control techniques to offline from online. • The objective is to build the quality into products and process so that there is no need to inspect to inspect the output product or services. • As per Taguchi, the root cause of variance is not one factor but a combination of multiple factors working together. • Thus the design of experiment deals with multvariant analysis. 266

• Taguchi introduced the principle of factorization based on the product or process parameters. • These factors are of two types. (a)Controllable factors (CF) - Known as design factors and values for these factors can be easily set by the designer or the process engineer. - The target control factors (TCF) affect the average level of performance matching the target.

267

- There could be additional ‘cost control factors’ which increase the profitability of organization and eliminate wastages. - The variability control factors (VCF) affect the variability in the performance. - The objective is to minimize the variability. (b) Uncontrollable factors - Known as noise factors and the source of variation are associated with production and operational environment. - The overall performance should be insensitive to the variation of these factors.

268

• Noise factors (NF) can be divided into two types (a)The ‘outer noise’ consists of operating conditions and the environment. (b)The ‘inner noise’ consists of the deterioration in the process and product control factors and the manufacturing imperfections. • The objective of this segregation is to make the product and process robust against noise factors. 269

Difference between Taguchi method and Statistical Process Control • Taguchi method concentrates on variability and takes preventive steps during the design stage rather than at the production or post-production stage. • Main objective is to reduce the variability by changing and controlling variability control factors and maintaining the required performance through adjustments of the process to the target control factors. 270

Quality Certification-ISO series • Quality certification is the procedure adopted by organizations to let the customers and stakeholders know about the systems being followed. • The International Organization for Standardization (ISO) has formulated standards for quality certification, known as ‘ISO 9000’ series certification. • They are ISO 9001, ISO 9002 and ISO 9003. • The guidelines for certification are given in the 271 standard ISO 9004.

• ISO 9001 certificate is awarded to industries having design, production and delivery including inspection, handling, storage, preservation and services. 9002 certificate is awarded to • ISO organizations/industries which have in its fold the production operations and delivery including inspection, handling, storage, preservation and services. • ISO 9003 certificate is awarded to organizations/ industries which carried out only services i.e. testing/ inspection/ marketing and service organizations.

272

Procedure • The organization desirous of obtaining ISO 9000 certification, first should decide which one of the three (ISO 9001, 9002 or 9003) they want and check whether they are eligible to get that. • The company having all three functions of Design, production and Delivery including service in its fold can opt for ISO 9002, if they so desire, in which case design will not be evaluated.

273

• However, a company which does not have a design function in its premises cannot opt for ISO 9001 certification. • Start educating and training every employee in the company about quality systems and quality management. • Formal training will be ideal. • Appoint MR (Management Representative) for the company. • MR should be good at public relations and preferably a qualified lead assessor. 274

• MR has to check whether all the relevant clauses are followed in the processes. Non-conformities, if any, present are to be identified and set right. • MR has to arrange for an internal auditing to ensure conformance to all relevant clauses. • Company should approach a reputed certifying body. The few such organizations are as under: (a)ABS Quality Evaluations Inc. (b)American Quality Assessors (AQA) (c)British Standards Institution Inc. (BSI) (d)Bureau Normalization Quebec (BNQ) 275

(e) Bureau Veritas Certification (India) Pvt. Ltd. (BVCI) (f) DNV Certification Inc. (g) Global Registrars Inc. (h) International Quality System Registrar (IQSR) (i) KPMG Assessment and Registration Services (j) Lloyd’s Registrar/Quality Assurance (LRQA) (k) Quality Certification Bureau Inc. (QCB) (l) SGS International Certification Services Inc. (m)TRA Certification (n) TUV Essen Quality Systems Division (o) Bureau of Indian Standards (BIS)

276

• Third party audit is mandatory for certification. • The certifying body will come for auditing. If no non-conformities are present then the certificate will be awarded. • If a few minor non-conformities are present, still with a request to set right all the nonconformities, the certificate may be issued. • If major non-conformities are present then the auditors will give some time to the company to set right all the non-conformities. • After that time period is over the auditing team 277 comes again for auditing.

• If everything is found satisfactory, then the certificate is awarded. • The certificate awarded is valid usually for three years. After that the certificate has to be renewed by undergoing all the processes once more. • During the certificate validity period, once in a year the company should undergo surveillance audit to be done by the same certifying body.

278

Important Points for Assessment • ISO certification need not necessarily be obtained for the entire company. Even one department can also go fr certification. • ISO certification only states that the company has potential in terms of processes to produce quality goods. However, it does not guarantee quality products. • ISO 9000 certificate insists that “document all that you do’and ensure that all that you do are as per documentation. 279

• Auditing checks the correctness of the processes with reference to documentation. • Auditing team checks the effectiveness of the corrective actions taken. • Checking an evidence of continuous improvement is an important element of audit.

280

Quality System Requirement • The mandatory clauses for ISO 9000 certification are: 1.Management Responsibility 1.1 Quality Policy - Objectives - Commitment - Customers’ needs 1.2 Organization 1.2.1 Responsibility and Authority 281

- For a person who • Initiate actions • Document • Provide solution • Implement • Control 1.2.2 Resources - For managing, working and verifying 1.2.3 Management Representative - Responsibility to ensure quality - Reporting authority 282

1.3 Management Review - Review at defined intervals - To maintain continuous effectiveness 2. Quality system 2.1 General - Quality Manual - Incorporating structure of the document - Makes reference to quality system 2.2 Quality System Procedures - Documented procedures regarding how an activity is to be performed.

283

- Implement what is documented 2.3 Quality planning - Preparation of quality plans - Identification and acquisition of instruments, equipments etc. - Ensuring compatibility of different processes - Updating information - Doing capability checks - Identifying verification methods - Clarification of standards of acceptability - Preparation of quality records 284

3. Contract review 3.1 General - Maintain document procedure for contract review 3.2 Review - Review the contract, tender, etc. - Capability to meet the contract requirements to be established 3.3 Amendments to Contract - Any amendment to be incorporated 285

3.4 Records - All records pertaining to a contract to be maintained. 4. Design control 4.1 General - Document procedure for controlling and verifying design 4.2 Design and development plans - Define responsibility - Assign qualified personnel - Update plans 286

4.3 Organizational and Technical Interfaces - Interface between design groups to be specified - Document interfacing and regularly review 4.4 Design input - Take into account any contractual requirements regarding design - Other statutory and regulatory requirements to be complied with - Check for adequacy 4.5 Design output - Should meet input requirements 287

- Identify crucial features such as storage, disposal, etc. - Review before release 4.6 Design Review - Review to be planned at regular intervals by appropriate persons 4.7 Design Verification - Do alternate calculation and check for correctness - Compare the design with proven ones already in practice - Undertakes tests and demonstrations 288

4.8 Design Validation - Validation is to check if the product conforms to defined user need - Validation under defined operating condition - May be done even prior to product completion - Multiple validation may also be done 4.9 Design Changes - All design changes should be approved by authorized personnel 5. Document and Data Control 5.1 General

289

- Have documented procedures to control all documents - External documents such as standards and customer drawings to be maintained - It can be in any media, electronic or hard copy 5.2 Document and Data Approval and Issue - Documents to be approved by authorized personnel - Documents to be available at appropriate locations - Obsolete documents to be removed promptly - Old documents to be labelled properly

290

6. Purchasing 6.1 General - Proof to be maintained to show that the purchased items conform to the norms 6.2 Evaluation of Sub-contractors - Evaluation procedure to select subcontractors to be spelt out - Define extent of control exercised by the suppliers over subcontractors - Maintain quality records of subcontractors 6.2 Purchasing Data 291

- Type, class, grade, etc of the product ordered to be specified and documented - Raw materials inspection instruments to be drawn out 6.4 Verification of Purchased Product 6.4.1 Supplier verification at subcontractors’ premises 6.4.2 Customer verification of subcontracted product 7.Control of Customer Supplied Product 292

- Maintain documented procedure for control of verification, storage and maintenance of customer supplied product 8. Product Identification and Traceability - Method for identifying the product by suitable means from receipt of raw materials to delivery of finished goods. 9. Process Control - Production, installation and servicing to be planned and carried out under controlled conditions 293

- Suitable working environment to be provided - Compliance with standards/codes to be checked - Process parameters and product characteristics to be checked - Validation of processes - Criteria for workmanship - Maintenance procedure for equipments 10. Inspection and Testing 10.1 General - To verify that specified requirements for the products are met 294

10.2 Reviewing Inspection and Testing - Ensure that incoming product is not used until it is inspected - Inspection may take place at subcontractors premises, if so documents should be available - Due to urgency, if product is released prior to inspection, it has to be identified and recorded 10.3 In-process Inspection and Testing - Required inspection and testing to be done as per quality plan before the product moves to meet process

295

10.4 Final Inspection and Testing - Before the product moves out, the final test on product as per quality plan to be carried out - This has to be signed by the authorized person 10.5 Inspection and Test Records - Maintain all inspection/test records to provide evidence 11. Control of Inspection, Measuring and Test Equipment 11.1 General - All inspection, measuring and test equipment to be calibrated and kept in good condition

296

- To be checked at frequent intervals 11.2 Control Procedures - Define accuracy of measurement required and select appropriate instruments - Calibration procedure to be documented - Identification record to show the calibration status to be maintained - Validity of previous inspection to be documented, in case the instrument is found to be out of calibration - Ensure suitable environment condition for measurement, calibration, etc

297

- Handling, storage procedures to be defined so as to maintain accuracy - Safeguard the measuring facilities to maintain calibration and testing 12. Inspection and Test Status - To ensure that only the product that has passed the required inspection and test is dispatched 13. Control of Non-conforming Product 13.1 General - Products not conforming to specifications should be prevented from use

-

298

13.2 Review and Disposition of Non-conforming Products - May be reworked - May be accepted by concession - May be regraded - May be rejected and scrapped 14. Corrective and Preventive Action 14.1 General - Any change in documented procedure resulting from corrective and preventive action should be recorded 299

14.2 Corrective Action - Formulate corrective action in the following steps • Get customer feedback • Analyze causes for the problem • Determine the corrective action • Implement the corrective action 14.3 Preventive action - Collect information on processes and operations that affect product quality - Determine possibilities of preventive actions 300

- Initiate preventive action - Action taken to be informed to management for review 15. Handling, Storage, Packaging, Preservation and Delivery 15.1 General handling, storage, - Documented procedure for packaging, preservation and delivery to be maintained 15.2 Handling - Method of handling to prevent damage

301

15.3 Storage - Use of designated storage areas or stock rooms to prevent deterioration or damage to the product 15.4 Packaging - Material used for packing and method of packing to be established 15.5 Preservation - Method of preserving products to be specified 15.6 Delivery - Method of delivery, taking care of the protection of the quality of product. 302

16. Control of Quality Records - All quality records shall be legible and shall be stored in such a way that they are readily retrievable - To be stored in suitable environment to prevent damage or deterioration 17. Internal Quality Audits - Results of internal quality audit to be recorded 18. Training - Training needs of employees to be identified and documented

303

19. Servicing - Procedure for servicing, verifying and reporting to be established 20. Statistical Techniques 20.1 Identification of Need - Which statistical technique to be used is to be defined 20.2 Procedure - Application of identified statistical techniques procedures

304

ISO 14000 series certification • ISO 14000 is a series of generic standards developed by ISO, to provide industries and other organizations with a system for managing environmental impacts. • ISO 14000 addresses six distinct but related subjects viz., (1)Environment Management System (EMS) (2)Environmental Auditing (EA) (3)Environmental Performance Evaluation (EPE)

305

(4)Environmental Labelling (EL) (5)Life Cycle Assessment (LCA) (6)Environmental Aspects in Product Standards (EAPS) • These can be grouped as product oriented or process oriented standards as shown below: ISO 14000

Process oriented standards

Product oriented standards

LCA/EL/EAPS

EMS/EPE/EA 306

• Government is insisting that all industries which are energy intensive and highly polluting must get ISO 14000 certification. • The procedure/ steps to be followed for getting ISO 14000 certification are same as that of ISO 9000 certification. • Automotive giants like Chrysler, Ford and General Motors have formulated QS 9000 standards applicable to specific requirements of these automobile companies. • All industries having transaction with these three automobile giants are forced to get QS certification.

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Quality Auditing • Quality certificates are issued after conducting quality auditing in a systematic manner. • Auditing procedure is aimed at checking if the practices followed confirms with the quality manual or not. ⇒Types of Quality Audit - Quality auditing is done both by internal and external bodies. - Based on the type of auditor, it is classified as: 1. First party audit 2. Second party audit 3. Third party audit 308

A. • • • • •

First party audit Conducted by the organization on its own system Conducted by its own personnel Identifies non-conformities in the system Suggests corrective actions Effectiveness of quality management system is ascertained. B. Second party audit • Conducted by purchaser on the supplier of goods

309

• Conducted to assess the suppliers’ ability to provide quality goods or services • It is not a comprehensive audit, as the purchaser will be only interested in areas of his purchase not on the company as a whole • By this the purchaser comes to know about the weak areas of his supplier. • This will be helpful in framing surveillance audit procedure.

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C. Third party audit • Conducted by person(s)/ agency who are neither suppliers nor purchasers and who are totally independent and have no vested interest in the outcome of the audit • Usually conducted by the certifying agency or a statutory body • Quality certificate can be issued only after third party audit is done • It assures customers of the compliances of the quality requirments 311

• Quality auditing is also classified based on the area of coverage as: 1.System audit 2.Process audit’ 3.Product audit ⇒System audit • Checks whether the activities carried out in the organization complies with the documented systems and procedures • Checks whether the organization meets its obligations on the quality system

312

• Checks whether management controls provided meet the specified requirements • Can be performed externally or internally ⇒Process audit • Checks whether the manufacturing or processing activities are carried out as per documented procedures and standards. • Checks for the adequacy, suitability and effectiveness of the processes. • Can be performed externally or internally

313

⇒Product audit • Checks whether the products conform to the specified standards • Checks the accuracy of the measuring equipment used and test procedures followed. • Checks whether the products conform to the environmental regulations. • Can be performed internally or externally.

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• There are two other types of quality audits conducted in industries. 1.Adequacy audit - Checks how much the documented procedures complies with the requirements of applicable standards. 2. Compliance audit - Checks how much the documented procedures are being implemented by the personnel in the organization.

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• Based on time frame, the audits are classified as follows 1. Initial audit - Done by the third party for certification. - Certification is valid for three years 2. Surveillance audit - Done once in six months after certification, till certification period is over. - Checks whether certification still holds good in terms of conformance to requirements. 3. Renewal audit - Done after the certification period is over. - Usually for renewing the certificate for another three years. 316

Benefits of Quality Auditing • Makes people in the organization know where they stand in respect of quality. • Effectiveness of system is found out. • Identification of non-conformities helps in analyzing the process and the system. • Problem solving is prioritized. • Brings employees together and improves their involvement in job and decision making. • Capabilities of the process and equipments are established. • Helps in meeting legal and statutory requirements and puts the organization in a strong position. • Facilitates on the job training. 317

Quality Awards • In order to motivate industries towards quality system and also to establish some realistic weightages for different aspects of quality system, quality awards have been instituted. • Among them Malcolm Balridge National Quality Award (MBNQA) and Deming Award are the most prestigious ones. • In India, two awards are instituted. • They are Golden Peacock Quality Award and Rajiv Gandhi Quality Award. 318

Malcolm Balridge Quality Award Criteria S.No.

Criteria

1

Leadership

2

3

Weightages

100

Senior executive leadership

30

Quality values

20

Management for quality

30

Public responsibility

20

Information and analysis

60

Scope and management of quality data and information

35

Analysis of quality data and information

25

Strategic quality planning Strategic quality planning process

Total Weightage

90 40

Quality leadership indicators in planning 25 Quality priorities

25

319

S.No.

Criterion

4

Human resource utilization

Weightage

Total Weightage 150

Human resource management

30

Employee involvement

40

Quality education and training

30

Employee recognition and performance 30 management Employee well being and morale 5

20

Quality assurance of products and services

150

Design and introduction of quality , products and services

30

Process and quality control

25

Continuous improvement of processes, 25 products and services Quality assessment

15

Documentation

10 320

S.No.

6

Criterion

Weightage

Quality assurance, quality assessment, quality improvement of support services and business processes

25

Quality assurance, quality assessment, quality improvement of suppliers

20

Quality results

Total weightage

150

Quality of products and services

50

Comparison of quality results

35

Business process, operational and support 35 service quality improvement Supplier quality improvement 7

30

Customer satisfaction

300

Knowledge of customer requirements and 50 expectations Customer relationship management

30

Customer service standards

20

Commitment to customers

20

321

S.No.

TOTAL

Criterion

Weightage

Complaint resolution for quality improvement

30

Customer satisfaction determination

50

Customer satisfaction results

50

Customer satisfaction comparison

50

Total weightage

1000

322

Malcolm Balridge framework • -

Four Industry Categories Manufacturing and services Education Healthcare Non profit

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Objectives of MBNQA • Plan to keep improving operations continuously • System for measuring improvements accurately • Strategic plan based on benchmarks that compare company performance with world’s best • Close partnership with suppliers and customers that feeds improvement back into operations • Deep understanding of customer so that their requirement can be translated into products/services

324

• Long lasting relationship with customer going beyond product delivery • Focus on preventing mistakes rather than correction ► Application contents for MBNQA • Each applicant must submit a self assessment report consisting of maximum 60 pages containing: - A brief organizational profile - Responses to each of the criterion with reference to the proper sub-point numbers.

325

Deming Award Criterion • Deming award is decided on the following criterion (1)Policies (2)Organization (3)Information (4)Standardization (5)Human Resources (6)Quality Assurance (7)Maintenance (8)Improvement (9)Effects (10)Future plans 326

Poka Yoke • Technique used to prevent errors being converted into defects • Non statistical driven QA approach • Based on assumption that mistakes will occur until preventive measures are taken • After every operation, product is analyzed for completeness of specifications and adherence to quality and if excess variation is observed process is stopped. 327

• Source of mistake is known, analyzed and corrected • Emphasis is on checking for factors which cause mistakes and solutions are found and applied to prevent reoccurrence • Formidable tool for achieving zero defect • Encourages workers to become sensitive to quality issues and avoids passing responsibility to quality department • Encourages built in quality check system • Drastically reduces rework and rejects and overall lead time. 328

Reasons for Errors • • • • •

Human errors or attitudes Machine malfunction Poor input material Unclear operating instructions Inadequacy in procedures

329

Steps in Poka Yoke • Detecting defect • Preventing occurrence of defect • Purpose is to stop process when conditions exist that cause problems and prevent non conforming ‘work-inprocess’ inventory going downstream • There are two types of poka yoke (a)Regulatory - Devices which give forewarning and shut down process before accident when an abnormality is detected e.g. photocopier 330

(b) Setting - Devices that check that settings are correct before main run. ►Advantages of Poka Yoke • Removes defects from source • Faster defect detection • Improves environment safety • Ensures immediate feedback • Improves equipment effectiveness and reliability • Promotes work culture for perfection 331

A few examples of Poka Yoke • Opening of brief case - If you open it upside down by mistake, the contents will spill out. - A simple lever in the opening device prevents the briefcase opening if it is upside down at no extra cost. • Auto rickshaws in Mumbai - Customers often get out from the wrong side, risking their lives. - A single iron bar welded on the right side exit of rickshaw prevents people from getting down from the wrong side.

332

• Electric plugs and sockets - Five –ampere plugs may get erroneously inserted into fifteen-ampere sockets. - A simple poka yoke device prevents this. - The spacing between the pin of the five and fifteen ampere plugs and socket is made different so that one cannot be erroneously inserted into the other leading to complete safety. • Connectors on personal computers have been made of different sizes so that the wrong pin cannot be inserted into a socket. 333

What is SMED • Method developed by Shingo • Aim of applying SMED methodology is to systematically reduce time lost in production for machine set ups from hours to minutes. • Applies to all production activities and is an important initiative in the lean manufacturing area • Very relevant in the days of increased requests for customized products at a short notice • SMED leads to reduced lead time 334

Batch Changeover Activities • In classical changeover between two batches the following activities take place: - Finish actual batch - Dismount old tools - Stop machine - Change tools - Adjust machine to new requirement - Stat machine - Trials 335

- Process new batch • Change over sequence is generally done without standard method or procedures and duration depends on individual skills • Changeover cause productivity loss and creates temptations for larger Economic Batch Quantity (EBQ) ► Approach of SMED • Setup time reduction is of crucial importance for profitability • Approach of SMED is to reduce set up losses due to changeover 336

Four steps to SMED ►Step 1 1. Separate internal and external set-up activities. (a)Internal set up operations are the ones that are carried out after the machine has been shut down. (b)External set up operations are the ones that are carried out while the machine is being operated. 2. Observe the actual changeover or set up in progress. Use a video camera if possible. 337

3. Classify all activities performed as external or internal. ►Step 2 1.Reduce internal activity by converting it into externally activity. 2.Make a check list of things needed during set-up (changeover), inclusive of items such as dies, measuring gauges, tools, cotton-waste for wiping, clear specifications of settings (pressure, temperature etc.) 3.Do all the external activities first, before switching off the machine. 338

►Step 3 1.Reduce remaining internal activities by streamlining and making technical changes. 2.Use fasteners that can be fastened and unfastened with one turn. (c)Based on the premises that it is only the last turn which fastens and it is the first turn which loosens. (d) All other turns are a waste. (e)Many such fasteners exist, such as pear shape holes, U-shaped washers, bolts with split threads 339 and so on.

(d) Examine each internal activity in detail and find out some way of reducing the time required for it. ►Step 4 1. Reduce remaining external activities by streamlining and making technical changes. 2. Do a vigorous 5-S programme based on the premises that there is a place for everything and everything in its place so that all external activities become search free. 3. Examine the need for transportation o material required during changeover. 4. Use Poka Yoke devices, colour codes etc to streamline external activities. ►Repeat the cycle of these four steps till the desired SMED result is achieved. 340

Six Sigma • • • •

Business strategy for good quality Level of performance that reduces defects Metrics of process capability Commitment to customers to achieve acceptable level of defects • Statistical indication of variation from standard which is meant to increase customer satisfaction and a tool which aims at eliminating defective output 341

• Six sigma is expressed as defects or non conformities per million of opportunities. • Six sigma is a level of performance with 3.4 defects per million opportunities • Enables companies to drastically improve bottom lines and measures process capability for quality • Six sigma implementation consists of - Define objective of the project - Measure key process parameters - Analyze parameters 342

- Improve through benchmarking and continuous improvement - Control process execution ► Goals of six sigma • Reduce variations - Oriented towards developing a manufacturing/ service set ups which has zero variations in both product and the process. • Defect reductions - Objective of six sigma is eliminate or reduce the defects and rejects to practically zero 343

- The Japanese mantra of ‘Muda’ ensures elimination of all wastages • Yield/productivity improvement - A single rejection saved is an additional piece produced - Any time saved in reworking is time utilized for effective production of the products and services, which again adds to productivity • Improved customer services - By providing defect-free products and services of consistent performance and quality, Six-sigma enhances customer satisfaction 344

• Improved bottom line - Improves substantially the bottom line, without any investment, just by training and changing the employees’ mindset and garnering their greater involvement in their work and organization. • Improved top line - Creates a strong brand image in the market leading to an increased sales and attainment of market leadership position - Leads to development of better work culture, better relationships with customers and employees and improves the top line substantially.

345

Six Sigma Specification Table 1 Sigma

30.23%

6,97,700 DPPM

2 Sigma

69.13%

3,08,700 DPPM

3 Sigma

93.32%

66,810 DPPM

4 Sigma

99.3790%

6,210 DPPM

5 Sigma

99.97670%

233 DPPM

6 Sigma

99.999660%

3.4 DPPM 346

Six Sigma Approach-DMAIC A. Define • Questions - What is the problem and scope - Criticality and importance to customer - What is the benchmark - Dependent variables affecting the project - How customer’s voice is captured • Key issues - What is the definition of project including operational details

347

• -

What are the project’s milestones Critical to quality parameters Identification of critical success factors Tools used Project management Pareto analysis QFD Process mapping

348

B. Measure • Questions - List performance variables and impact - Gap between benchmark and existing status - Performance capability of processes • Key issues - Requirements of customer - Validation of measurement schemes • Tools used - Process mapping/QFD/Cause & Effect/ 7 QC tools/ Process capability and process capability index. 349

C. Analyze • Questions - What are the success factors - What are performance goals - What are sources of variations - What is % target for improvement • Key issues - Ability of company to do it - Selection of variable and quantification • Tools Used - Process map/ Gap analyses/ Analytical tools 350

D. Improve • Questions - How is variable performance diagnosed - How are operating limits and process capability established • Key issues - How performance improvement is verified - Action plans - Solutions to address root cause of problem - Establish operating tolerances • Tools used - Design of experiments 351

E. Control • Questions - How are performance metrics monitored - How is continuous improvement monitored • Key issues - Control of processes - Implementation and audit of control system • Tools used - SPC - Poka yoke - Internal quality audits - Capability audits 352

What is Service Quality? • Customer perceived service quality is viewed as a result of technical aspect of quality of output and process of delivering the output i.e. functional. • Technical refers to traditional quality control in manufacturing. • Functional is the way service is delivered through a process in which customer is a participant. • Customer evaluates quality during or after service is delivered. 353

Ten determinants of Service Quality 1. Service can be a tangible facility or intangible advice rendered to a customer. 2. Reliability and consistency of performance and ability to honour what is promised. 3. Responsiveness, readiness and timeliness to provide service. 4. Competence, possession of required skills and knowledge to perform service. 5. Courtesy, politeness, and respect towards people. 354

6. Credibility, trustworthiness and honesty of purpose. 7. Accessibility/approachability 8. Communicating to keep customers informed in language. 9. Listening to the customers and understanding their needs. 10.Ability to dispel fear, danger and risk

355

Quality Dimensions in Services • Time - Time required to execute a service - Time includes arrangement time, waiting time, service time, delay time, acceptance time. - Arrangement time includes understanding of services requirement and level, staffing etc. • Cost - Cost of service to satisfaction of customer decides quality of service 356

• Error - Amount of error and cost impact decides the quality of service • Implementation of six sigma for service. ► Service Performance Gap • Company’s perception of service outcome should match customer's expectation. • If it fails to do so, there is a service gap. • Overall gap between expectation and perceived performance is determined by various gaps pertaining to information, design, expectations etc. 357

1. Gap between customer’s expectation and management’s perception of expectation. 2. Gap between management’s perception of customer’s expectation and company’s quality specifications. 3. Gap between service quality specifications and actual service delivery. 4. Gap between actual service delivery and external communication about service 5. Gap between customer expectation and perceived service. 358

Criteria used by customers in judging services • Tangible physical evidence –potential/delivered • Reliability-honouring promises and getting • Additional performance features-supplementary services • Responsiveness and readiness to provide services beyond specified. • Effectiveness to achieve desired results. 359

SERVAQUAL Model A. Gap 1: Customer expectation- Management perception of customer’s expectation - Financial / telecom organizations treat issues of privacy and confidentiality as unimportant but consumers consider these issues very important. - Management has inaccurate perception of what customer actually expects. - If management does not receive feedback about poor quality service it will believe it is meeting customers’ expectations . - Gap exists because there is a lack of customer focus.

360

B. Gap 2: Management perception of customers’ expectation –Service quality specifications. - Specifications designed based on what designer thinks customer wants. - Represents inability of management to translate customers’ expectations to service quality specifications. C. Gap 3: Service quality specifications- service quality actually delivered. - Occurs because of lack of support for frontline staff and process problems. 361

D. Gap 4: Service delivery intentions- what is communicated about service to customers. - Gap results from inadequate communication from service provider. E. Actual performance- customers’ perception of service - Perceived quality of service depends on size of the gap which in turn depends on gap associated with marketing, design and delivery of service. - Subjective judgment of service quality can change the perception of service delivered. - Gap Model.ppt 362

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