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TOTAL QUALITY MANAGEMENT

Chapter: 1 Introduction and evolution of quality movement Chapter: 2 Contributions of Shewart, Deming, Juran, Feigenbaum, Crosby Chapter: 3 Contributions of Japanese pioneers Ishikawa, Taguchi, Taichi Ohno, Shigeo Shingo Chapter: 4 Statistical Quality control basics Chapter: 5 Basics of sampling and reliability Chapter: 6 Quality Improvement and Total Employee Involvement Chapter: 7 JIT Manufacturing and Lean manufacturing through waste elimination Chapter: 8 Six Sigma tools, Quality circles Chapter: 9 Statistical Process control , Process Capability studies Chapter: 10 Cost of Quality- Juran/Crosby Chapter: 11 CMM/PCMM Chapter:12 Quality Management in Services- the SERVQUAL Model

TOTAL QUALITY MANAGEMENT

Chapter: 1 Introduction and evolution of quality movement


During the early days of manufacturing, an operative's work was inspected and a decision made whether to accept or reject it. The focus was just to accept or reject the products based on the specification. No effort was made on defect prevention. In the 1920's statistical theory began to be applied effectively to quality control, and in 1924 Shewhart made the first attempt of a modern control chart. His work was later developed by Deming and the early work of Shewhart, Deming, Dodge and Romig constitutes much of what today comprises the theory of statistical process control (SPC). However, there was little use of these techniques in manufacturing companies until the late 1940's. In the early 1950's, quality management practices developed rapidly in Japanese plants, and become a major theme in Japanese management philosophy, such that, by 1960, quality control and management had become a national preoccupation. In 1969, Feigenbaum presented a paper in a conference and the term ?total quality? was used for the first time, and referred to wider issues such as planning, organization and management responsibility. Ishikawa presented a paper explaining how ?total quality control? in Japan was different, it meaning ?company wide quality control?, and describing how all employees, from top management to the workers, must study and participate in quality control. Company wide quality management was common in Japanese companies by the late 1970's. Total quality management (TQM) came into existence in 1980 by the western world. TQM is now part of a much wider concept that addresses overall organizational performance and recognizes the importance of processes. As we move into the 21st century, TQM has developed in many countries into holistic frameworks, aimed at helping organizations achieve excellent performance, particularly in customer and business results.

The rapidly increasing global competition over the past decade has led to the emergence of new scenarios for most of the industrial sectors. The industries are now associated with rapid technological changes and product variety proliferation in order to remain competitive. The competitiveness of a company is mostly dependent on its ability to perform well in dimensions such as cost, quality, delivery, dependability and speed, innovation and flexibility to adapt itself to variations in demand. Aiming at improving organizational performance through the effective use of production capability and technology, operations strategy such as total quality management (TQM), quality

function deployment (QFD), six sigma, business process re-engineering (BPR), just in time (JIT), benchmarking, performance measurement and many others are commonly used. The concept of quality has evolved from mere specifications, controls, inspections, systems, and methods for regulatory compliance to a harmonized relationship with business strategies aimed at satisfying both the internal and external customer. Today, quality and value are, first and above all, givens, and the customer expects them. Quality in the successful organization is fully integrated into all of the business processes and is an extension of everything else that has to happen along the path to success, both for the company and for the people involved. Quality Definition(s) As Specified by Joseph Juran, Quality is the fitness of use i.e. it is the value of the goods and services as perceived by the supplier, producer and customer. The measure also pertains to the degree to which products and services conform to specifications, requirements and standards at an acceptable price. Some of the definitions of the term ?Quality', provided by quality gurus are as follows:

Quality is fitness for use (JURAN) Quality is conformance to requirements (CROSBY) the efficient production of the quality that the market expects (DEMING) Quality is what the customer says, it is (FEIGENBAUM) Quality is the loss that a product costs to the society after being shipped to the customer (TAGUCHI) The totality of features and characteristics of a product or services that bear on its ability to satisfy stated or implied needs of the customers (ASQC) A quality system is the agreed on company wide and plant wide operating work structure, documented in effective, integrated, technical and managerial procedures for guiding the co-coordinated actions of people, the machines, or the information of company in the best and most practical ways to assume customer quality satisfaction and economical costs of quality. (FEIGENBAUM)

Dimensions of Product Quality As prescribed by Garvin, the eight dimensions of quality are:

Performance Reliability Durability Serviceability Aesthetics Features Perceived quality

(will the product do the intended job?) (how often the product fails?) (how long the product lasts?) (how easy is to repair the product?) (what does the product look like?) (what does the product do?) (what is the reputation of a company or its products?)

Dimensions of Service Quality

Reliability

Responsiveness Competence Courtesy Communication Credibility Security

Three Aspects of Quality:


Quality of Design: Consumer's Perspective The product must be designed to meet the requirement of the customer. The product must be designed right first time and every time and while designing all aspects of customer expectations must be incorporated into the product. The factors need to consider while designing the product are:

Type of product

Cost Profit policy of the company Demand Availability of the parts

Quality of Conformance: Manufacturer's Perspective The product must be manufactured exactly as designed. The activities involved at this stage include: defect finding, defect prevention, defect analysis, and rectification. The difficulties encountered at the manufacturing stage must be conveyed to the designers for modification in design, if any. The two-way communication between designer and manufacturing may help to improve the quality of the product. Quality of Performance The product must function as per the expectations of the customer. The two way communication between designers and customer is the key to have a quality product.

The Eight Elements Of TQM


Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations. To be successful implementing TQM, an organization must concentrate on the eight key elements: 1. 2. 3. 4. 5. 6. 7. 8. Ethics Integrity Trust Training Teamwork Leadership Recognition Communication

KeyElements: TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. For this, TQM requires the help of

those eight key elements. These elements can be divided into four groups according to their function. The groups are: I. Foundation It II. Building Bricks - It III. Binding Mortar IV. Roof - It includes: Recognition. I. Foundation: TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and sincerity and allows involvement by everyone. This is the key to unlocking the ultimate potential of TQM. These three elements move together, however, each element offers something different to the TQM concept. 1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It is a twofaceted subject represented by organizational and individual ethics. Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. Individual ethics include personal rights or wrongs. 2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity. The characteristic is what customers (internal or external) expect and deserve to receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity. 3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built. Trust fosters full participation of all members. It allows empowerment that encourages pride ownership and it encourages commitment. It allows decision making at appropriate levels in the organization, fosters individual risk-taking for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative environment essential for TQM. II. Bricks: includes: includes: Ethics, Integrity and Trust. Training, Teamwork and Leadership. It includes: Communication.

Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of recognition. It includes: 4. Training - Training is very important for employees to be highly productive. Supervisors are solely responsible for implementing TQM within their departments, and teaching their employees the philosophies of TQM. Training that employees require are interpersonal skills, the ability to function within teams, problem solving, decision making, job management performance analysis and improvement, business economics and technical skills. During the

creation and formation of TQM, employees are trained so that they can become effective employees for the company. 5. Teamwork - To become successful in business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place. There are mainly three types of teams that TQM organizations adopt: A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporary teams with the purpose of dealing with specific problems that often re-occur. These teams are set up for period of three to twelve months. B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one week to three months. C. Natural Work Teams (NWTs) - These teams consist of small groups of skilled workers who share tasks and responsibilities. These teams use concepts such as employee involvement teams, self-managing teams and quality circles. These teams generally work for one to two hours a week. 6. Leadership - It is possibly the most important element in TQM. It appears everywhere in organization. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates. For TQM to be successful in the business, the supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it and then demonstrate their belief and commitment through their daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted down through out the organization to provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top management. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well defined systems, methods and performance measures for achieving those goals. III.BindingMortar:

7. Communication - It binds everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication. It acts as a vital link between all elements of TQM. Communication means a common understanding of ideas between the sender and the receiver. The success of TQM demands communication with and among all the organization members, suppliers and customers. Supervisors must keep open airways where employees can send and receive information about the TQM process. Communication coupled with the sharing of correct information is vital. For communication to be credible the message must be clear and receiver must interpret in the way the sender intended.

There are different ways of communication such as: A. Downward communication - This is the dominant form of communication in an organization. Presentations and discussions basically do it. By this the supervisors are able to make the employees clear about TQM. B. Upward communication - By this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes about through the use of TQM. This forms a level of trust between supervisors and employees. This is also similar to empowering communication, where supervisors keep open ears and listen to others. C. Sideways communication - This type of communication is important because it breaks down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner. IV.Roof:

8. Recognition - Recognition is the last and final element in the entire system. It should be provided for both suggestions and achievements for teams as well as individuals. Employees strive to receive recognition for themselves and their teams. Detecting and recognizing contributors is the most important job of a supervisor. As people are recognized, there can be huge changes in self-esteem, productivity, quality and the amount of effort exhorted to the task at hand. Recognition comes in its best form when it is immediately following an action that an employee has performed. Recognition comes in different ways, places and time such as, - It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc. - Good performers can be recognized in front of departments, on performance boards and also in front of top management. - Recognition can given at any time like in staff meeting, annual award banquets, etc. We can conclude that these eight elements are key in ensuring the success of TQM in an organization and that the supervisor is a huge part in developing these elements in the work place. Without these elements, the business entities cannot be successful TQM implementers. It is very clear from the above discussion that TQM without involving integrity, ethics and trust would be a great remiss, in fact it would be incomplete. Training is the key by which the organization creates a TQM environment. Leadership and teamwork go hand in hand. Lack of communication between departments, supervisors and employees create a burden on the whole TQM process. Last but not the least, recognition should be given to people who contributed to the overall completed task. Hence, lead by example, train employees to provide a quality product, create an environment where there is no fear to share knowledge, and give credit where credit is due is the motto of a successful TQM organization.

Chapter: 2 Evolution of Quality


During the early days of manufacturing, an operative's work was inspected and a decision made whether to accept or reject it. The focus was just to accept or reject the products based on the specification. No effort was made on defect prevention. In the 1920's statistical theory began to be applied effectively to quality control, and in 1924 Shewhart made the first attempt of a modern control chart. His work was later developed by Deming and the early work of Shewhart, Deming, Dodge and Romig constitutes much of what today comprises the theory of statistical process control (SPC). However, there was little use of these techniques in manufacturing companies until the late 1940's. In the early 1950's, quality management practices developed rapidly in Japanese plants, and become a major theme in Japanese management philosophy, such that, by 1960, quality control and management had become a national preoccupation. In 1969, Feigenbaum presented a paper in a conference and the term ?total quality? was used for the first time, and referred to wider issues such as planning, organization and management responsibility. Ishikawa presented a paper explaining how ?total quality control? in Japan was different, it meaning ?company wide quality control?, and describing how all employees, from top management to the workers, must study and participate in quality control. Company wide quality management was common in Japanese companies by the late 1970's. Total quality management (TQM) came into existence in 1980 by the western world. TQM is now part of a much wider concept that addresses overall organizational performance and recognizes the importance of processes. As we move into the 21st century, TQM has developed in many countries into holistic frameworks, aimed at helping organizations achieve excellent performance, particularly in customer and business results.

Historical Aspects of Quality Walter Shewhart :


The original notions of Total Quality Management and continuous improvement trace back to a former Bell Telephone employee named Walter Shewhart. One of W. Edwards Deming's teachers, he preached the importance of adapting management processes to create profitable situations for both businesses and consumers, promoting the utilization of his own creation -- the SPC control chart.

Dr. Shewhart believed that lack of information greatly hampered the efforts of control and management processes in a production environment. In order to aid a manager in making scientific, efficient, economical decisions, he developed Statistical Process Control methods. Many of the modern ideas regarding quality owe their inspirtation to Dr. Shewhart. He also developed the Shewhart Cycle Learning and Improvement cycle, combining both creative management thinking with statistical analysis. This cycle contains four continuous steps: Plan, Do, Study and Act. These steps (commonly refered to as the PDSA cycle), Shewhart believed; ultimately lead to total quality improvement. The cycle draws its structure from the notion that constant evaluations of management practices -- as well as the willingness of management to adopt and disregard unsupported ideas --are keys to the evolution of a successful enterprise. Classic Tools There's an elusive balance between chasing after each new management tool or method, and ignoring the fact that we have actually learned some things about management over the past 100,000 years. The best tools are those which stand the test of time, and which give you a lot of leverage over common problems. We describe a variety of the best, most widely used management methods and tools in this section of the Skymark Resource Web. We hope that the descriptions are helpful, and we welcome your suggestions for additions and enhancements.

Armand Vallin Feigenbaum


Born (1922), is an American quality control expert and businessman. He devised the concept of Total Quality Control, later known as Total Quality Management (TQM). Feigenbaum received a bachelor's degree from Union College, and his master's degree and Ph.D. from MIT. He was Director of Manufacturing Operations at General Electric (1958-1968), and is now President and CEO of General Systems Company of Pittsfield, Massachusetts, an engineering firm that designs and installs operational systems. Feigenbaum wrote several books and served as President of the American Society for Quality (1961-1963). His contributions to the quality body of knowledge include:

"Total quality control is an effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organization so as to enable production and service at the most economical levels which allow full customer satisfaction." The concept of a "hidden" plantthe idea that so much extra work is performed in correcting mistakes that there is effectively a hidden plant within any factory. Accountability for quality: Because quality is everybody's job, it may become nobody's jobthe idea that quality must be actively managed and have visibility at the highest levels of management.

The concept of quality costs

Edward Deming

Postulated Statistical QUALITY Control Principles 14 Points of QUALITY Management these Principles successfully adapted by Japanese Manufactures

William Crosby
Emphasized Humanistic Behavioral Aspects of QUALITY Improvement Becoming More Important Now

Crosby:
Crosby's name is best known in relations to the concepts of Do It Right First time and Zero Defects. He considers traditional quality control, acceptable quality limits and waivers of substandard products to represent failure rather than assurance of success. Crosby therefore defines quality as conformance to the requirements which the company itself has established for its products based directly on its customers' needs. He believes that since most companies have organisations and systems that allow deviation from what is really required, manufacturing companies spend around 20% of their revenues doing things wrong and doing them over again. According to Crosby this can be 35% of operating expenses for service companies. He does not believe that workers should take prime responsibility for poor quality; the reality, he says, is that you have to get management straight. In the Crosby scheme of things, management sets the tone on quality and workers follow their example; whilst employees are involved in operational difficulties and draw them to management's attention, the initiative comes from the top. Zero defects means that the company's objective is 'doing things right first time'. This will not prevent people from making mistakes, but will encourage everyone to improve continuously. In the Crosby approach the Quality Improvement message is spread by creating a core of quality specialists within the company. There is strong emphasis on the top-down approach, since he believes that senior management is entirely responsible for quality. The ultimate goal is to train all the staff and give them the tools for quality improvement, to apply the basic precept of Prevention Management in every area. This is aided by viewing all work as a process or series of actions conducted to produce a desired result. A process model can be used to ensure that clear requirements have been defined and understood by both the supplier and the customer. He also views quality improvement as an ongoing process since the work 'programme' implies a temporary situation. Crosby's Quality Improvement Process is based upon the

I.

Four Absolutes of Quality Management

1. Quality is defined as conformance to requirements, not as 'goodness' or 'elegance'. 2. The system for causing quality is prevention, not appraisal. 3. The performance standard must be Zero Defects, not "that's close enough". 4. The measurement of quality is the Price of Nonconformance, not indices.

Shingo's Message In terms of quality, Shingo's paramount contribution was his development in the 1960s of PokaYoke and source inspection systems. These developed gradually as he realised that statistical quality control methods would not automatically reduce defects to zero. The basic idea is to stop the process whenever a defect occurs, define the cause and prevent the recurring source of the defect. This is the principle of the JIT production system. No statistical sampling is therefore necessary. A key part of this procedure is that source inspection is employed as an active part of production to identify errors before they become defects. Error detection either stops production until the error is corrected, or it carries adjustment to prevent the error from becoming a defect. This occurs at every stage of the process by monitoring potential error sources. Thus defects are detected and corrected at source, rather than at a later stage. Following a visit to Yamada Electric in 1961, Shingo started to introduce simple, mechanical devices into assembly operations, which prevented parts from being assembled incorrectly and immediately signalled when a worker had forgotten one of the parts. These mistake-proofing or 'Poka-Yoke' devices had the effect of reducing defects to zero. In 1967 Shingo further refined his work by introducing source inspections and improved PokaYoke systems which actually prevented the worker from making errors so that defects could not occur. Associated advantages were that statistical sampling was no longer necessary, and that workers were more free to concentrate on more valuable activities such as identifying potential error sources. Having learned about and made considerable use of statistical QC in his 40s, it was some 20 years later, in 1977, that Shingo observed that the Shizuoko plant of Matsushita's Washing Machine Division had succeeded continuously for one month with zero defects on a drain pipe assembly line with involvement of 23 workers. He realised that statistical QC is not needed for zero-defect operations. This was achieved principally through the installation of Poka-Yoke devices to correct defects and source inspection to prevent defects occurring. Together these techniques constitute Zero Quality Control, which, Shingo argues, can achieve what may have been impossible using statistical quality control methods.

Shingo advocated the practical application of zero defects by good engineering and process investigation, rather than slogans and exhortations that have been associated with the quality campaigns of many American and Western companies. Shingo, like Deming and Juran, argued that such American approaches of displaying defects statistics were misguiding and demoralising. Instead, the results of improvement should be announced and displayed.

Kondo:
Kondo emphasises the interrelationship between quality and people. He sees humanity as the essence of motivation. He endorses that human work should always include the following three components:

Creativity -- the joy of thinking Physical activity -- the joy of working with sweat on the forehead Sociality -- the joy of sharing pleasure and pain with colleagues

He further points out that the elements of creativity and sociality are involved in company-wide quality control as well as physical activity, since the aim of CWQC is to ensure the superior quality of manufactured products and service through the stages of marketing, designing and manufacturing and, in so doing, to promote customer satisfaction. In other words, there is no basic contradiction between CWQC activities and humanity. The major problems lie in the stages of designing the manufacturing process and evaluating the results of the work. When manufacturing is conducted only by standardising and simplifying the work and by separating planning from actual execution and when the results of the work are judged only in terms of money, how can we motivate workers by offering them meaningful jobs? In his book Human Motivation - A Key Factor for Management published in 1989, Kondo advocates that making work more creative is important for motivation. He suggests four points of action in support of such a process: 1. When giving work instruction, clarify the true aims of the work. Instead of explaining clearly what the aim of a job is, people tend to concentrate on the methods and means to be used for achieving that aim. However, every job has an aim, and it goes without saying that achieving this aim is the most important thing. Aside from mandatory restrictions related to safety and quality assurance, information concerning means and methods should be given for reference only, and we should encourage people to devise their own best ways of achieving the objectives. 2. See that people have a strong sense of responsibility towards their work. This is related to the previous point. As we know well, human beings are often weak and irrational and tend to try to shift responsibility onto someone else when their work goes wrong, complaining or being evasive. It is, therefore, necessary to devise ways of nipping such excuses in the bud whenever they seem likely to appear. The 'mandatory objectives, optional means' approach described in Point 1 above serves this purpose, and techniques such as the stratification of data, the correction of data by mean value or by regression,

and the application of the orthogonal principle in the design of experiments [Taguchi, 1986] are all effective devices for putting a stop to excuses. 3. Give time for the creation of ideas. Once people start feeling such a strong sense of responsibility, they will go back to the essence of the problem and think about it deeply. This will result in flashes of inspiration and the creation of new ideas. Excellent ideas are most easily generated during those times when we have pondered the problem deeply and have arrived at a detached, meditative state of mind. An ancient Chinese proverb tells us that this kind of time occurs when we are horseback riding, lying down and relaxing. The times at which ideas come most readily are different for every individual. The important thing is to give people the time to be creative. 4. Nurture ideas and bring them to fruition. New-born ideas created in this way are extremely fragile. If they are examined critically with the intention of picking them to pieces or squashing them down, it is very easy to obliterate them completely. However, to find out whether such ideas are really good or not, or to develop them in superior ways, they must be allowed to grow. There is no objection during this stage of growth to allowing an idea to change gradually from its original form into a better one. It is often said that the main enemies of new product development are found within the company itself. This means that people are more concerned about going around stepping on new ideas than about encouraging their development. A new born idea is like a new-born baby, and raising it to maturity always requires someone to look after its interest and act as a loving parent. In most cases, those in positions of authority are the only ones who can play this role. In other words, managers should not go around throwing cold water on new ideas but should become their patrons and encourage their growth. Kondo concludes that only by addressing all four points will it be possible for work to be reborn as a creative activity. If ideas are created and fostered, those concerned will come to feel a real sense of self-confidence. This is an extremely valuable experience from the standpoint of motivation.

Deming:
Deming encouraged the Japanese to adopt a systematic approach to problem solving, which later became known as the Deming or Plan-Do-Check-Act (PDCA) Cycle Fig.2.1. Deming, however, referred to it as the Shewhart Cycle, named after his teacher W. A. Shewhart [1931]. He subsequently replaced "Check" by "Study", as that word reflects the actual meaning more accurately. Therefore an alternative abbreviation for the Deming Cycle is PDSA Cycle. Deming also pushed senior managers to become actively involved in their company's quality improvement programmes. His greatest contribution to the Japanese is the message regarding a typical business system. It explains that the consumers are the most important part of a production line. Meeting and exceeding the customers' requirements is the task that everyone within an organisation needs to accomplish. Furthermore, the management system has to enable everyone to be responsible for the quality of his output to his internal customers.

PDCA Cycle Deming's thinking in the late 1980's can best be expressed as Management by Positive Cooperation. He talks about the New Climate (organisational culture) which consists of three elements.

Joy in Work, Innovation, and Co-operation.

He has referred to this New Climate as 'Win: Win', as opposed to the 'I Win: You Lose' attitude engendered by competition. In his seminars in America in the 80's, he spoke of the need for 'the total transformation of Western Style of Management'. He produced his 14 Points for Management [Deming, 1989], in order to help people understand and implement the necessary transformation. Deming said that adoption of and action on the 14 points are a signal that management intend to stay in business. They apply to both small and large organisations, and to service industries as well as to manufacturing.

Joseph Juran's QUALITY Trilogy:


Juran developed the idea of quality trilogy: quality planning, quality improvement and quality control. These three aspects of company-wide strategic quality planning are further broken down in Juran's 'Quality Planning Road Map', into following key elements:

Quality Planning

Identify who are the customers. Determine the needs of those customers. Translate those needs into our language. Develop a product that can respond to those needs. Optimise the product features so as to meet our needs and

customer needs.

Quality Improvement Quality Control

Develop a process which is able to produce the product. Optimise the process. Prove that the process can produce the product under operatingc onditions. Transfer the process to Operations.

A. QUALITY Planning Set of QUALITY Goals Set Plans for Operations Based on these Goals

B. QUALITY Control Responsible for Meeting QUALITY Goals Prevent Adverse Changes Set and Observe Performance Measures Compare with Industry Standards Benchmarking C. QUALITY Improvement Moving from Current Level to the Next Higher Level Organize Teams, Train Operators to identify and Correct QUALITY Problems

Ishikawa:
Ishikawa's biggest contribution is in simplifying statistical techniques for quality control in industry. At the simplest technical level, his work has emphasised good data collection and presentation, the use of Pareto Diagrams to prioritise quality improvements and Ishikawa Diagrams. Ishikawa sees the Cause-and-Effect Diagram (or Ishikawa Diagram), like other tools, as a device to assist groups or quality circles in quality improvement. As such, he emphasises open group communication as critical to the construction of the diagrams. Ishikawa diagrams are useful as systematic tools for finding, sorting out and documenting the causes of variation of quality in production and organising mutual relationships between them. Other techniques Ishikawa has emphasised include the seven Quality Control tools.

Other than technical contributions to quality, Ishikawa is associated with the Company-wide Quality Control (CWQC) Movement that started in Japan during the period 1955--60 following the visits of Deming and Juran. Ishikawa sees the CWQC as implying that quality does not only mean the quality of product, but also of after sales service, quality of management, the company itself and the human life. The outcomes of such an approach are: 1. 2. 3. 4. Product quality is improved and becomes uniform. Defects are reduced. Reliability of goods is improved. Cost is reduced. Quantity of production is increased, and it becomes possible to make rational production schedules. 5. Wasteful work and rework are reduced. 6. Technique is established and improved. 7. Expenses for inspection and testing are reduced. 8. Contracts between vendor and vendee are rationalised. 9. The sales market is enlarged. 10. Better relationships are established between departments. 11. False data and reports are reduced. 12. Discussions are carried out more freely and democratically. 13. Meetings are operated more smoothly. 14. Repairs and installation of equipment and facilities are done more rationally. 15. Human relations are improved.

Taguchi:
Introduction to Robust Design (Taguchi Method) :
Robust Design method, also called the Taguchi Method, pioneered by Dr. Genichi Taguchi, greatly improves engineering productivity. By consciously considering the noise factors (environmental variation during the product's usage, manufacturing variation, and component deterioration) and the cost of failure in the field the Robust Design method helps ensure customer satisfaction. Robust Design focuses on improving the fundamental function of the product or process, thus facilitating flexible designs and concurrent engineering. Indeed, it is the most powerful method available to reduce product cost, improve quality, and simultaneously reduce development interval.

Why use Robust Design Method? Over the last five years many leading companies have invested heavily in the Six Sigma approach aimed at reducing waste during manufacturing and operations. These efforts have had great impact on the cost structure and hence on the bottom line of those companies. Many of them have reached the maximum potential of the traditional Six Sigma approach. What would be the engine for the next wave of productivity improvement?

Brenda Reichelderfer of ITT Industries reported on their benchmarking survey of many leading companies, "design directly influences more than 70% of the product life cycle cost; companies with high product development effectiveness have earnings three times the average earnings; and companies with high product development effectiveness have revenue growth two times the average revenue growth." She also observed, "40% of product development costs are wasted!" These and similar observations by other leading companies are compelling them to adopt improved product development processes under the banner Design for Six Sigma. The Design for Six Sigma approach is focused on 1) increasing engineering productivity so that new products can be developed rapidly and at low cost, and 2) value based management. Robust Design method is central to improving engineering productivity. Pioneered by Dr. Genichi Taguchi after the end of the Second World War, the method has evolved over the last five decades. Many companies around the world have saved hundreds of millions of dollars by using the method in diverse industries: automobiles, xerography, telecommunications, electronics, software, etc. Typical Problems Addressed By Robust Design

A team of engineers was working on the design of a radio receiver for ground to aircraft communication requiring high reliability, i.e., low bit error rate, for data transmission. On the one hand, building series of prototypes to sequentially eliminate problems would be forbiddingly expensive. On the other hand, computer simulation effort for evaluating a single design was also time consuming and expensive. Then, how can one speed up development and yet assure reliability? In an another project, a manufacturer had introduced a high speed copy machine to the field only to find that the paper feeder jammed almost ten times more frequently than what was planned. The traditional method for evaluating the reliability of a single new design idea used to take several weeks. How can the company conduct the needed research in a short time and come up with a design that would not embarrass the company again in the field? The Robust Design method has helped reduce the development time and cost by a factor of two or better in many such problems. In general, engineering decisions involved in product/system development can be classified into two categories:

Error-free implementation of the past collective knowledge and experience Generation of new design information, often for improving product quality/reliability, performance, and cost.

While CAD/CAE tools are effective for implementing past knowledge, Robust Design method greatly improves productivity in generation of new knowledge by acting as an amplifier of

engineering skills. With Robust Design, a company can rapidly achieve the full technological potential of their design ideas and achieve higher profits

Dr. Shingo: was one of the greatest influences in Japanese quality control.
Shigeo Shingo, along with Deming and Juran, believed that the application of zero defects by good engineering and process investigation instead of the American and Western philosophy of slogans and exhortations. Shingo believed that results of improvements should be displayed and announced and not the display of defect statistics, which were demoralizing. Poka-Yoke Techniques to Correct Defects + Source Inspection to Prevent Defects = Zero Quality Control. This equation is the essence of the Zero Quality Control Concepts. Dr. Shingos first of many accomplishments occurred in 1930. He introduced scientific management to the Taipei Railway Company. By implementing the scientific management system, he was able to reduce operation costs. In 1951, Shingo discovered the concept of "statistical quality control." By investigating around 300 companies, he was able to gain a greater understanding of the subject. By 1959, Dr. Shingo was already known as an "engineering genius." By not only focusing on management, but also production, he established himself as an extremely reputable Industrial engineer. Between 1956 and 1958, Shingo was able to reduce the four (4) month set-up time of a super tanker to two (2) months, setting a record. In the 1960s, Shingos major contribution to Quality Control by the development of the PokaYoke (a mistake-proofing mechanism) and source inspection systems while working as an industrial engineer at The Toyota Motor Corporation. As the gradual development of these developed, Shingo had a realization that statistical quality control would not reduce defects to zero automatically. In the 1970s, Dr. Shingo developed a concept called "Single Minute Exchange of Dies." The integration of this concept significantly reduced operating costs. Using his teachings and concepts of Just In Time (JIT), Single Minute Exchange of Dies (SMED) and Zero Quality Control, many manufacturing companies have realized greater profits. According to the American Production and Inventory Control Society (APICS), JIT can be defined as, "A philosophy of manufacturing based on planned elimination of all waste and continuous improvement of productivity. It encompasses the successful execution of all manufacturing activities required to produce a final product, from design engineering to delivery and including all stages of conversion from raw material onward. The primary elements include

having only the required inventory when needed; to improve quality to zero defects; to reduce lead time by reducing set-up times, queue lengths and lot sizes; to incrementally revise the operations themselves; and to accomplish these things at minimum cost." The concept of SMED is to reduce the set-up time of dies, which results directly in smaller batch sizes for parts. With the smaller batch sizes, there are lower costs associated with work in inventory storage. SMED results in higher productivity and fast engineering design changes with little cost. By using the ideal scenario of Zero Quality Control, quality improvements can be made. By implementing mistake-proofing devices, Shingo would eliminate any possibility of a defect. Also, by targeting the initial cause of the defect, the need for statistical process control would be eliminated. Dr. Shigeo Shingos teachings and concepts have formed the background for efficient engineering practices. He enabled a better way of life for operators and corporations. In 1988, Utah State University founded the Shingo prize in his honor. This prize recognizes world-class manufacturing. A REVOLUTION IN MANUFACTURING - THE SMED SYSTEM Single Minute Exchange of Dies Dr. Shigeo Shingo is the originator of this concept. He is considered as the world's leading expert on improving the manufacturing process and he is also popularly known as "Dr. Improvement" in Japan. Besides SMED, he introduced the Poka-Yoke defect prevention system and was one of the developers of 'Just in time' production system. The SMED system is a simple but powerful process which can help anyone doing any kind of work. All one needs is an open mind i.e., a mind free from bias and preconceived idea. This point is dealt with in the beginning of Dr. Shingo's book. It is stated that many people even today think that their kind of manufacturing is "different" and the principles stated by Dr. Shingo are not applicable to them. Dr. Shingo states that this is simply wrong thinking and the principle applies to any context. Once one take up this approach he will find this book is very interesting and will be able to get the benefit out of it. The essence of Dr. Shingo's message in his book is that you can design a system that is inherently responsive to change".

To put it up more simply, Dr.Shingo's message is that knowing the process we are associated with means understanding why we do it. If we know that, changing how we are doing it is simple. The importance of experience is to see with our own eyes the simplicity and practicability of these principles in action. If we know that and if we give a thought to that it helps to unlock our mind bringing out possible changes in them for betterment. His book will change a lot of your thinking. Just a few of the ideas that Dr. Shingo presents should be enough to whet your appetite: * "Managers who are responsible for production must recognize that the proper strategy is to make what can be sold ...... SMED makes it possible to respond quickly to fluctuations in demand, and it creates the necessary conditions for lead time reductions. The time has come to bid farewell to the long standing myths of anticipatory production and large lot production. We must also recognize that flexible production can come about only through SMED." * "Construct a production system that can respond without wastefulness to market change and that, moreover, by its very nature reduce costs." * "The purpose of measures resting on the twin cornerstones of 'Just-In-Time' production and automation with worker involvement * To manufacture goods as inexpensively as possible that will sell, and to manufacture them only when they will sell quickly." * "Setup changes should allow defect-free products to be produced from the very start. It makes no sense to speed up a setup operation without knowing when quality products can be turned out." * "After SMED improvements are completed, the next challenge is OTED (One-Touch Exchange of Die), that is, making setup changes in less than a minute." * "The ideal setup change is no change at all. As long as setup changes are necessary, however, they should be designed to be performed with a 'one-touch' motion." * "It is important to cut setup times, diminish lot size, and even loads simultaneously; no more than partial success can be expected with shortened setup times alone." * "if you can't figure out how to do something, talk it over with your machines." The book is filled with enough ideas to make you reconsider all the why of how you manufacture. It will blow away all of the misconceptions that have prevented you from changing

in the past. Once you begin to apply these principles, you will find that you can never go back to "business as usual." This book can mark the beginning of a journey for you into a whole New World of how goods are manufactured. More importantly, it will give you a very quick lesson on how to catch up with the Japanese in quality. The Structure of Production The SMED system is explained in seven steps by Dr.Shigeo. They are as follows: Step 1 : The structure Step 2 : Set up operations Step 3 : Fundamentals Step 4 : Techniques for Step 5 : Applying SMED to Step 6 : Basic examples Step 7 : Effects of SMED of production in the past of SMED applying SMED Internal Operations of SMED

Under the structure of Production he gives a systematic outcomes of production. Production he calls as network of processes and operations. A process is a continuous flow by which raw materials are converted into finished goods. The general system is as follows: a. Stock raw materials in b. Transport it to c. Stack them near the d. Process them in the e. Store processed material near f. Inspect the finished g. Stock the finished product for shipment to customer stores machines machine machine machine products

An "operation" is any action performed by man, machine or equipment on the raw material, intermediate or finished products. Production is a network of operations and processes, with one or more operations corresponding to each step in the process. Manufacturing processes can be divided into four phases a. Processing : Assemble, disassemble, alteration b. Inspection : Comparison c. Transportation : Change d. Storage : A period of time during which no product. shape or quality with standards of location work is done on the of

Now the storage itself can be broken into four categories as Storage Storage Waiting Waiting for a lot of of for raw finished material goods process

Internal structure of an operation can be analysed as * Preparation, after adjustment, they are prepared before or after a process * Principle operation - carrying out the required process which can be further divided as a. Essential operations b. Auxiliary operations c. Margin allowances such as resting, drinking water, machinery breakdown, somebody interrupts; fatigue etc. Like process the operation also can be divided into processing operation, inspection operation, transportation operation and storage operation. The same is applicable to set up operation as processing operation setup, inspection operation setup, transporting operation setup and storage operation set up. The main emphasis in this book is to processing operation setup and how to reduce that. But it is equally applicable to other setup operations also. The main point here is that production activities comprise of processes and operations. Setups are included in each type of operation. Fundamentals of SMED The History of SMED Dr. Shingo was doing survey a for efficiencies improvement at Toyo Kogyo's Mazda plant in 1950. They were facing bottleneck in large body moulding presses of 350, 750 and 800 tons as they were not working to capacity. Dr. Shingo decided to follow up a die charge. In one press they were changing the die. They found a mounting bolt missing. It was not available. From another they took a long bolt and modified it to the required size and used it. It not only took time and deprived the other press a bolt which in turn will face the problem when need to be used. This gave rise to the idea of internal setup and external setup. Internal Setup:- Such as mounting or removing dies which can be performed only when the machine is stopped. External setup such as preparing to transport the old die to the stores, convey new dies to the machine, checking up all required materials, machine, men availability. This can be done when the machine is in operations. This helped to improve the efficiency by 50%. In

1957 he was doing a study at Mitsubishi Heavy Industries Shipyard. They were using open sided planer to machine diesel engine beds and it was not working to the capacity and wanted to increase a machine. He studied the system and came out with the idea of adding up a second planer table to perform setup operation on it separately. This helped in overcoming the bottleneck. In 1969 at Toyoto Motor Company a 1000 ton press required 4 hours for each setup change. They took the trouble with Dr. Shingo to distinguish clearly between internal and external setup. They succeeded in cutting down the time to 90 minutes in six months' time. They were pleased but the management wanted the time to be brought down to less than 3 minutes. They were dumb founded at first, but then Dr. Shingo came up with the idea of converting internal setup as external set up. Number of thoughts flowed in and he organised them into eight techniques for shortening setup times. Within three months time, using these ideas diligently they were able to bring down the time to three minutes. He named the concept 'SMED'. Basic Steps in Setup Procedure a. Preparation, b. Mounting, c. Measurements, d. Trial runs and adjustments Checking removing settings up parts and materials tools etc. etc. calibration.

The greatest difficulty in a setup operation is adjusting the equipment correctly. A large portion of time associated with trial runs derives from these adjustments. Preliminary stage: Internal and external setup. Conditions are not distinguished. In traditional approach the above are not considered as disadvantageous causing time delay etc. For improvement, one must study the actual operation in great detail. It can be done in four ways. a. A continuous b. Work c. Interviewing d. Video taping the operation and studying it. Steps for SMED production sampling analysis study workers

Stage 1 : Separating internal and external Stage 2 : Converting internal Stage 3 : Streamlining all aspects of the setup operation.

setup to

as

it is external

existing setup

To sum up, SMED was born in a period of 19 years as a result of examining closely the theoretical and practical aspects of setup improvement. Both analysis and implementation are thus fundamental to the SMED system and must be part of any improvement program. There are two types of setup, internal and external. The four conceptual stages of setup improvement involve the distinguishing of these two types of setup and converting of internal setup to external setup. Once that is done all aspects of setup can be streamlined.

Quality Control Inspection, analysis and action applied to a portion of the product in a manufacturing operation to estimate overall quality of the product and determine what, if any, changes must be made to achieve or maintain the required level of quality. Quality control of a product can be viewed as a system which ensures Proper Planning Right Design Proper equipment Proper Inspection Corrective action Traditional Concept: Quality Control has been concerned with detecting poor quality in manufacturing products and taking corrective action to eliminate it. Modern Concept: Quality Control encompasses a broader scope of activities including: Robust design Statistical Proecess Control Two aspects of quality control Off-line quality control On-line quality control Off-line quality control encompasses all those activities that are performed before the actual manufacturing of the product or service rendered

On-line quality control activities start from the manufacturing of a product till it goes in the field and also after sale service. The quality tools used in the phase are Statistical Process control and Acceptance Sampling Importance of Quality Control Quality is vital in all areas of business, including the product development and production functions Cost of quality is ultimately reduced by investing money up front in quality design and development Typical costs of poor quality include downtime, repair costs, rework, and employee turnover Benefits of Quality Control A well-established, committed quality system in an organization will render the following benefits

Improvement in the quality of product Higher productivity Cost reduction Continuous improvement in quality of product

Chapter: 4 Statistical Quality control basics

Statistical Process Control (SPC)


monitoring production process to detect and prevent poor quality

Sample
subset of items produced to use for inspection

Control Charts
process is within statistical control limits

Variability: Random
common causes inherent in a process

can be eliminated only through improvements in the system

Non-Random
special causes due to identifiable factors can be modified through operator or management action

SPC in TQM: SPC


tool for identifying problems and make improvements contributes to the TQM goal of continuous improvements

Quality Measures : Attribute


a product characteristic that can be evaluated with a discrete response good bad; yes - no

Variable
a product characteristic that is continuous and can be measured weight length

Applying SPC to Service:


Nature of defect is different in services Service defect is a failure to meet customer requirements Monitor times, customer satisfaction

Hospitals
timeliness and quickness of care, staff responses to requests, accuracy of lab tests, cleanliness, courtesy, accuracy of paperwork, speed of admittance and checkouts

Grocery Stores
waiting time to check out, frequency of out-of-stock items, quality of food items, cleanliness, customer complaints, checkout register errors

Airlines
flight delays, lost luggage and luggage handling, waiting time at ticket counters and check-in, agent and flight attendant courtesy, accurate flight information, passenger cabin cleanliness and maintenance

Fast-Food Restaurants
waiting time for service, customer complaints, cleanliness, food quality, order accuracy, employee courtesy

Catalogue-Order Companies
order accuracy, operator knowledge and courtesy, packaging, delivery time, phone order waiting time

Insurance Companies
billing accuracy, timeliness of claims processing, agent availability and response time

Where to Use Control Charts: Process has a tendency to go out of control Process is particularly harmful and costly if it goes out of control Examples
at the beginning of a process because it is a waste of time and money to begin production process with bad supplies

before a costly or irreversible point, after which product is difficult to rework or correct before and after assembly or painting operations that might cover defects before the outgoing final product or service is delivered

Control Charts:
A graph that establishes control limits of a process Control limits upper and lower bands of a control chart Types of charts Attributes p-chart c-chart Variables range (R-chart) mean (x bar chart)

Process Control Chart:

Normal Distribution:

A Process Is in Control If
1. no sample points outside limits 2. most points near process average 3. about equal number of points above and below centerline 4. points appear randomly distributed

Control Charts for Attributes p-charts


uses portion defective in a sample

c-charts
uses number of defects in an item

p-Chart UCL = p + zp LCL = p - zp


Z p p = = = number of standard deviations from process average sample proportion defective; an estimate of process average standard deviation of sample proportion

p-Chart Example:

c-Chart:

Control Charts for Variables: Mean chart ( x -Chart )


uses average of a sample

Range chart ( R-Chart )


uses amount of dispersion in a sample

x-bar Chart:

x-bar Chart Example:

R- Chart:

Using x- bar and R-Charts Together:


Process average and process variability must be in control. It is possible for samples to have very narrow ranges, but their averages is beyond control limits.

It is possible for sample averages to be in control, but ranges might be very large.

Sample Size:
Attribute charts require larger sample sizes 50 to 100 parts in a sample

Variable charts require smaller samples 2 to 10 parts in a sample

Process Capability:
Tolerances design specifications reflecting product requirements Process capability range of natural variability in a process what we measure with control charts

Chapter: 5 Basics of sampling and reliability Acceptance Sampling:


In some cases statistical process control is neither viable nor desirable. In such cases acceptance sampling is used as the quality control check. It can also be termed as after process inspection. Eg.: 5000 valves received as raw material in manufacturing process

Types of Acceptance Sampling:


Single-sample plans Double-sample plans Multiple-sample plans

Single-sample Plan:
Decision of acceptance or rejection is made on the basis of only one sample selected from the lot. If x is number of rejected items in lot, c is the acceptance number (from previous studies or company specifications) Then acceptance and rejection rules are as follows: Accept the lot if x < or = c

Reject the lot if x > c

Double-sample plan:
Decision of acceptance or rejection is made on the basis of only one sample selected from the lot. However a second sample is taken in a double-sample plan. Information obtained from both the samples is used to decide whether the lot has to be accepted or rejected. The acceptance and rejection rules are as follows: Accept the lot if x1 < or = c1 for first sample Reject if x1 > or = r1, where r1 > c1 If the number of rejected items from the first sample is in between c1 and r1 a second sample is taken and number of defectives x2 are determined. Add x1 and x2 i.e. (x1 + x2) If (x1 + x2) < or = c2 the lot is accepted otherwise it is rejected. c2 is a pre-specified acceptance number

Error:
Type I error if the lot is acceptable and on the basis of sample information, a decision maker rejects the lot. Type II error if the lot is unacceptable and on the basis of sample information, a decision maker accepts the lot.

Producers risk and consumers risk:


The probability of committing a type I error by a decision maker is referred to as producers risk and is denoted by . The probability of committing a type II error by a decision maker is referred to as consumers risk and is denoted by .

Chapter: 6 Quality Improvement and Total Employee Involvement

Chapter: 7 JIT Manufacturing and Lean manufacturing through waste elimination

Introduction
Just-in-time (JIT) manufacturing is a way of managing manufacturing systems that could reduce waste, and lower cost, thus increasing profit. In its most basic explanation and principle JIT is every component in the manufacturing system arriving just in time for it to be used. Since the products arrive just in time there is no need for stock holding facilities of any kind. The most common industry using JIT manufacturing is the automobile industries. However, many other companies of all sizes and products are currently using and transitioning to just-in-time manufacturing. Although just-in-time manufacturing sounds like a very simple application, implementing it can be a very costly and difficult task. Just-in-time (JIT) is defined as a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. It also has been described as an approach with the objective of producing the right part in the right place at the right time (in other words, just in time). Waste results from any activity that adds cost without adding value, such as the unnecessary moving of materials, the accumulation of excess inventory, or the use of faulty production methods that create products requiring subsequent rework. JIT (also known as lean production or stockless production) should improve profits and return on investment by reducing inventory levels, reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs (such as those associated with machine setup and equipment breakdown). In a JIT system, underutilized (excess) capacity is used instead of buffer inventories to hedge against problems that may arise. JIT applies primarily to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes (even when the facility uses a jobbing or batch process layout) by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that found in an assembly line. To accomplish this, an attempt is made to reach the goals of driving all inventory buffers toward zero and achieving the ideal lot size of one unit. The basic elements of JIT were developed by Toyota in the 1950's, and became known as the Toyota Production System (TPS). JIT was well-established in many Japanese factories by the

early 1970's. JIT began to be adopted in the U.S. in the 1980's (General Electric was an early adopter), and the JIT/lean concepts are now widely accepted and used. II. JIT focus is on:

Improving profits and return on investment by reducing inventory levels Reducing variability Improving product quality Reducing production and delivery lead times Reducing costs associated with machine setup Reducing idle labor time Some Key Elements of JIT

III.

1. Stabilize and level the MPS with uniform plant loading (heijunka in Japanese): create a uniform load on all work centers through constant daily production (establish freeze windows to prevent changes in the production plan for some period of time) and mixed model assembly (produce roughly the same mix of products each day, using a repeating sequence if several products are produced on the same line). Meet demand fluctuations through end-item inventory rather than through fluctuations in production level. Use of a stable production schedule also permits the use of backflushing to manage inventory: an end items bill of materials is periodically exploded to calculate the usage quantities of the various components that were used to make the item, eliminating the need to collect detailed usage information on the shop floor. 2. Reduce or eliminate setup times: aim for single digit setup times (less than 10 minutes) or "one-touch" setup -- this can be done through better planning, process redesign, and product redesign. A good example of the potential for improved setup times can be found in auto racing, where a NASCAR pit crew can change all four tires and put gas in the tank in under 20 seconds. (How long would it take you to change just one tire on your car?) The pit crews efficiency is the result of a team effort using specialized equipment and a coordinated, well-rehearsed process. 3. Reduce lot sizes (manufacturing and purchase): reducing setup times allows economical production of smaller lots; close cooperation with suppliers is necessary to achieve reductions in order lot sizes for purchased items, since this will require more frequent deliveries. 4. Reduce lead times (production and delivery): production lead times can be reduced by moving work stations closer together, applying group technology and cellular manufacturing concepts, reducing queue length (reducing the number of jobs waiting to be processed at a given machine), and improving the coordination and cooperation between successive processes; delivery lead times can be reduced through close cooperation with suppliers, possibly by inducing suppliers to locate closer to the factory. 5. Preventive maintenance: use machine and worker idle time to maintain equipment and prevent breakdowns.

6. Flexible work force: workers should be trained to operate several machines, to perform maintenance tasks, and to perform quality inspections. In general, JIT requires teams of competent, empowered employees who have more responsibility for their own work. The Toyota Production System concept of respect for people contributes to a good relationship between workers and management. 7. Require supplier quality assurance and implement a zero defects quality program: errors leading to defective items must be eliminated, since there are no buffers of excess parts. A quality at the source (jidoka) program must be implemented to give workers the personal responsibility for the quality of the work they do, and the authority to stop production when something goes wrong. Techniques such as "JIT lights" (to indicate line slowdowns or stoppages) and "tally boards" (to record and analyze causes of production stoppages and slowdowns to facilitate correcting them later) may be used. 8. Small-lot (single unit) conveyance: use a control system such as a kanban (card) system (or other signaling system) to convey parts between work stations in small quantities (ideally, one unit at a time). In its largest sense, JIT is not the same thing as a kanban system, and a kanban system is not required to implement JIT (some companies have instituted a JIT program along with a MRP system), although JIT is required to implement a kanban system and the two concepts are frequently equated with one another. 1. 2.

3. Kanban Production Control System A kanban or pull production control system uses simple, visual signals to control the movement of materials between work centers as well as the production of new materials to replenish those sent downstream to the next work center. Originally, the name kanban (translated as signboard or visible record) referred to a Japanese shop sign that communicated the type of product sold at the shop through the visual image on the sign (for example, using circles of various colors to indicate a shop that sells paint). As implemented in the Toyota Production System, a kanban is a card that is attached to a storage and transport container. It identifies the part number and container capacity, along with other information, and is used to provide an easily understood, visual signal that a specific activity is required. In Toyotas dual-card kanban system, there are two main types of kanban: 1. Production Kanban: signals the need to produce more parts 2. Withdrawal Kanban (also called a "move" or a "conveyance kanban): signals the need to withdraw parts from one work center and deliver them to the next work center.

In some pull systems, other signaling approaches are used in place of kanban cards. For example, an empty container alone (with appropriate identification on the container) could serve as a signal for replenishment. Similarly, a labeled, pallet-sized square painted on the shop floor, if uncovered and visible, could indicate the need to go get another pallet of materials from its point of production and move it on top of the empty square at its point of use. A kanban system is referred to as a pull-system, because the kanban is used to pull parts to the next production stage only when they are needed. In contrast, an MRP system (or any schedule-based system) is a push system, in which a detailed production schedule for each part is used to push parts to the next production stage when scheduled. Thus, in a pull system, material movement occurs only when the work station needing more material asks for it to be sent, while in a push system the station producing the material initiates its movement to the receiving station, assuming that it is needed because it was scheduled for production. The weakness of a push system (MRP) is that customer demand must be forecast and production lead times must be estimated. Bad guesses (forecasts or estimates) result in excess inventory and the longer the lead time, the more room for error. The weakness of a pull system (kanban) is that following the JIT production philosophy is essential, especially concerning the elements of short setup times and small lot sizes, because each station in the process must be able to respond quickly to requests for more materials. 4. Dual-card Kanban Rules: 1. No parts are made unless there is a production kanban to authorize production. If no production kanban are in the in box at a work center, the process remains idle, and workers perform other assigned activities. This rule enforces the pull nature of the process control. 2. There is exactly one kanban per container. 3. Containers for each specific part are standardized, and they are always filled with the same (ideally, small) quantity. (Think of an egg carton, always filled with exactly one dozen eggs.) Decisions regarding the number of kanban (and containers) at each stage of the process are carefully considered, because this number sets an upper bound on the work-in-process inventory at that stage. For example, if 10 containers holding 12 units each are used to move materials between two work centers, the maximum inventory possible is 120 units, occurring only when all 10 containers are full. At this point, all kanban will be attached to full containers, so no additional units will be produced (because there are no unattached production kanban to authorize production). This feature of a dual-card kanban system enables systematic productivity improvement to take place. By deliberately removing one or more kanban (and containers) from the system, a manager will also reduce the maximum level of work-in-process (buffer) inventory. This reduction can be done until a shortage of materials occurs. This shortage is an indication of problems (accidents, machine breakdowns, production delays, defective products) that were previously hidden by excessive inventory. Once the problem is observed and a solution is identified, corrective action is taken so that the system can function at

the lower level of buffer inventory. This simple, systematic method of inventory reduction is a key benefit of a dual card kanban system. Just-in-Time manufacturing `Just-in-time' is a management philosophy and not a technique. It originally referred to the production of goods to meet customer demand exactly, in time, quality and quantity, whether the `customer' is the final purchaser of the product or another process further along the production line. It has now come to mean producing with minimum waste. "Waste" is taken in its most general sense and includes time and resources as well as materials. Elements of JIT include:

Continuous improvement. o Attacking fundamental problems - anything that does not add value to the product. o Devising systems to identify problems. o Striving for simplicity - simpler systems may be easier to understand, easier to manage and less likely to go wrong. o A product oriented layout - produces less time spent moving of materials and parts. o Quality control at source - each worker is responsible for the quality of their own output. o Poka-yoke - `foolproof' tools, methods, jigs etc. prevent mistakes o Preventative maintenance, Total productive maintenance - ensuring machinery and equipment functions perfectly when it is required, and continually improving it. Eliminating waste. There are seven types of waste: o waste from overproduction. o waste of waiting time. o transportation waste. o processing waste. o inventory waste. o waste of motion. o waste from product defects. Good housekeeping - workplace cleanliness and organisation. Set-up time reduction - increases flexibility and allows smaller batches. Ideal batch size is 1item. Multi-process handling - a multi-skilled workforce has greater productivity, flexibility and job satisfaction. Levelled / mixed production - to smooth the flow of products through the factory. Kanbans - simple tools to `pull' products and components through the process. Jidoka (Autonomation) - providing machines with the autonomous capability to use judgement, so workers can do more useful things than standing watching them work. Andon (trouble lights) - to signal problems to initiate corrective action.

JIT - Background and History JIT is a Japanese management philosophy which has been applied in practice since the early 1970s in many Japanese manufacturing organisations. It was first developed and perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with minimum delays . Taiichi Ohno is frequently referred to as the father of JIT. Toyota was able to meet the increasing challenges for survival through an approach that focused on people, plants and systems. Toyota realised that JIT would only be successful if every individual within the organisation was involved and committed to it, if the plant and processes were arranged for maximum output and efficiency, and if quality and production programs were scheduled to meet demands exactly. JIT manufacturing has the capacity, when properly adapted to the organisation, to strengthen the organisation's competitiveness in the marketplace substantially by reducing wastes and improving product quality and efficiency of production. There are strong cultural aspects associated with the emergence of JIT in Japan. The Japanese work ethic involves the following concepts.

Workers are highly motivated to seek constant improvement upon that which already exists. Although high standards are currently being met, there exist even higher standards to achieve. Companies focus on group effort which involves the combining of talents and sharing knowledge, problem-solving skills, ideas and the achievement of a common goal. Work itself takes precedence over leisure. It is not unusual for a Japanese employee to work 14-hour days. Employees tend to remain with one company throughout the course of their career span. This allows the opportunity for them to hone their skills and abilities at a constant rate while offering numerous benefits to the company.

These benefits manifest themselves in employee loyalty, low turnover costs and fulfilment of company goals.

Advantages There are many advantages of that a manufacture can receive from JIT. However they can differ from company to company. Listed below are some of the advantages overviewed throughout this paper:

Possible increase in profits

Quality products Quicker setup Eliminates costs of storage facilities More flexible employees Quality relationships with suppliers Elimination of waste No down time

Disadvantages Although the advantages outweigh the disadvantages, the disadvantages can have a negative effect on the company. Listed below are some of the disadvantages overviewed throughout the paper:

Long term commitment Possible large initial cost with no short term returns Problems with supplier can cost company large amounts of money Risk of never successfully implementing JIT

Just-in-time manufacturing can be a positive influence on a company. However there are many risks associated with attempting to implement JIT manufacturing techniques. When looked at it appears to be a very simple, quick, and easy thing to do. In reality it is a very complicated technique that takes long term commitment and a initial cost with no guarantee of success. If implemented successfully it would eliminate waste, make the company more productive and more efficient. It does this through shorter transportation and increased communication. Although there are many companies that are successful, many companies are not. Even though there are enormous risks many still consider implementing JIT for it many advantages. Companies Currently using JIT

Harley Davidson Toyota Motor Company

General Motors Ford Motor Company Manufacturing Magic Hawthorne Management Consulting Strategy Manufacturing Inc.

Japanese terms
There are a number of Japanese terms (words) associated with JIT that you may encounter. I have listed some below for you:

Andon - trouble lights which immediately signal to the production line that there is a problem to be resolved (typically the line is stopped until the problem is resolved) Jikoda - autonomation - enabling machines to be autonomous and able to automatically detect defects Muda - waste Mura - unevenness Muri - excess Poka-yoke - "foolproof" machines and methods so as to prevent production mistakes Shojinka - a workforce flexible enough to cope with changes in production and using different machines Soikufu - thinking creatively, having inventive ideas

In the Toyota system the Andon, indicating a stoppage of the line, is hung from the factory ceiling so that it can be clearly seen by everyone. This coupled with line stoppage clearly raises the profile of the problem and encourages attention/effort to its solution so that it does not reoccur. As an indication though of the difficulty of implementing JIT in a Western environment when General Motors instituted an Andon for line stoppage workers were simply not prepared to take responsibility for stopping the line. Hence defective items were passed though the system, rather than the Andon functioning as planned and highlighting problems and hence leading to their resolution. General Motors resolved the problem by allowing workers to indicate that they had a problem whilst the line continued to operate. Just-in-time' is a management philosophy and not a technique. It originally referred to the production of goods to meet customer demand exactly, in time, quality and quantity, whether the `customer' is the final purchaser of the product or another process further along the production line. It has now come to mean producing with minimum waste. "Waste" is taken in its most general sense and includes time and resources as well as materials. Elements of JIT include:

Continuous improvement. o Attacking fundamental problems - anything that does not add value to the product. o Devising systems to identify problems. o Striving for simplicity - simpler systems may be easier to understand, easier to manage and less likely to go wrong. o A product oriented layout - produces less time spent moving of materials and parts. o Quality control at source - each worker is responsible for the quality of their own output. o Poka-yoke - `foolproof' tools, methods, jigs etc. prevent mistakes o Preventative maintenance, Total productive maintenance - ensuring machinery and equipment functions perfectly when it is required, and continually improving it. Eliminating waste. There are seven types of waste: o waste from overproduction. o waste of waiting time. o transportation waste. o processing waste. o inventory waste. o waste of motion. o waste from product defects. Good housekeeping - workplace cleanliness and organisation. Set-up time reduction - increases flexibility and allows smaller batches. Ideal batch size is 1item. Multi-process handling - a multi-skilled workforce has greater productivity, flexibility and job satisfaction. Levelled / mixed production - to smooth the flow of products through the factory. Kanbans - simple tools to `pull' products and components through the process. Jidoka (Autonomation) - providing machines with the autonomous capability to use judgement, so workers can do more useful things than standing watching them work. Andon (trouble lights) - to signal problems to initiate corrective action.

Chapter: 8 Six Sigma tools, Quality circles

Quality circles
DEFINITION Quality Circle is a small group of 6 to 12 employees doing similar work who voluntarily meet together on a regular basis to identify improvements in their respective work areas using proven techniques for analysing and solving work related problems coming in the way of achieving and sustaining excellence leading to mutual upliftment of employees as well as the organisation. It is "a way of capturing the creative and innovative power that lies within the work force". LAUNCHING QUALITY CIRCLES The major prerequisite for initiating Quality Circles in any organisation is the total understanding of, as well as complete conviction and faith in the participative philosophy, on the part of the top and senior management. In the absence of a commitment from the Chief Executive to support the Quality Circle movement totally, it would be inadvisable to seriously attempt the starting of Quality Circles. The launching of Quality Circles involves the following steps: Expose middle level executives to the concept. Explain the concept to the employees and invite them to volunteer as members of Quality Circles. Nominate senior officers as facilitators. Form a steering committee. Arrange training of co-ordinators, facilitators in basics of Quality Circle approach, implementation, techniques and operation. Later facilitator may provide training to Circle leaders and Circle members. A meeting should be fixed preferably one hour a week for the Quality Circle to meet. Formally inaugurate the Quality Circle. Arrange the necessary facilities for the Quality Circle meeting and its operation PROCESS OF OPERATION The operation of quality circles involves a set of sequential steps as under: 1 Problem identification: Identify a number of problems.

2 Problem selection : Decide the priority and select the problem to be taken up first. 3 Problem Analysis : Problem is clarified and analysed by basic problem solving methods. 4 Generate alternative solutions : Identify and evaluate causes and generate number of possible alternative solutions. 5 Select the most appropriate solution : Discuss and evaluate the alternative solutions by comparison in terms of investment and return from the investment. This enables to select the most appropriate solution. 6 Prepare plan of action : Prepare plan of action for converting the solution into reality which includes the considerations "who, what, when, where, why and how" of solving problems. 7 Present solution to management circle members present solution to management fore approval. 8. Implementation of solution : The management evaluates the recommended solution. Then it is tested and if successful, implemented on a full scale. BASIC PROBLEM SOLVING TECHNIQUES The following techniques are most commonly used to analyse and solve work related problems. 1 Brain storming 2 Pareto Diagrams 3 Cause & Effect Analysis 4 Data Collection 5 Data Analysis The tools used for data analysis are : 1 Tables 2 Bar Charts 3 Histograms 4 Circle graphs 5 Line graphs 6 Scattergrams 7 Control Charts The Quality Circles also are expected to develop internal leadership, reinforce worker morale and motivation, and encourage a strong sense of teamwork in an organisation. A variety of benefits have been attributed to Quality Circles, including higher quality, improved productivity, greater upward flow of information, broader improved worker attitudes, job enrichment, and greater teamwork. Problem quality circles often suffer from unrealistic expectations for fast results, lock of management commitment and support, resistance by middle management, resentment by non participants, inadequate training, lack of clear objectives and failure to get solutions implemented.

BENEFITS AND LIMITATIONS OF QUALITY CIRCLES It took more than two decades for the quality control concept to get acceptance in India, after its introduction in Japan. This may be due to the differences in the industrial context in the two countries. Japan needed it for its survival in a competitive market. India had a reasonably protected, sellers market, with consequent lethargy towards efforts to improve quality and productivity. However, with the policy of liberalisation of economy and privatisation of infrastructure development, contexts changed. The concept now needs to be looked upon as a necessity. APPLICABILITY IN GOVERNMENT ORGANISATIONS The Public Works Department of Government of Maharashtra is responsible for the construction and maintenance of about 2.00 lakhs km. of road net work in the state and a large number of Government-owned buildings spread all over the state. The road net work caters for national level traffic to the rural area traffic. The climatic and geographical features also vary from place to place in the state. The ultimate customer of the Department is the common man and it is not generally easy to satisfy the ultimate needs of this user to the fullest extent merely by taking decision at the top management level. The sub-ordinate officers and staff working in the field and who are well-acquainted with the day-to day problems in their work areas, are the best judges to decide upon the line of action. The top management in Maharashtra P.W.D. realized this need of the time and introduced the concept of Quality Circle as employee participation method in the organisation. The concept of Quality Circle was launched in the Public Works Department of Govt. of Maharashtra on 18-11-1997. In a span of about a year 17 Quality Circles have been formed in Mumbai Region wherein 22 problems have been solved so far. 48 Quality Circles have been formed in Pune Region wherein, 8 problems have been solved. Nashik Region of the P.W.D. has formed 9 Quality Circles and solutions to 3 problems have been found out . Aurangabad Region has formed 21 Quality Circles and solved 7 problems. Nagpur Regions have formed 47 Quality Circles and have found out solution to 57 problems, so far. The results of a short period of one year are found to be very encouraging so far and many of these Circles have already come up with solutions to the various work related problems as evidenced from the last two state level conventions held at Mumbai and Aurangabad respectively. The presentations by the various Quality Circles at these conventions bear testimony to the fact that the concept of Quality Circle has been received with much enthusiasm at the grass root level. These presentations also provide concrete evidence fulfilling the expected benefits of the Quality Circle . Taking inspirations from these conventions, more staff of the Department have come forward to form Quality Circles , emphasising the fact that Quality Circles have come to stay in the Department.

Some of the problems solved by the Quality Circles in P.W.D. of Maharashtra are as follows: 1 Eliminating delay in issuing observation memos after inspection of site. 2 Preventing accidents on highways. 3 Reducing electricity bill in office. 4 Avoiding duplication of work. 5 Removal of encroachment from Govt. land. 6 Speeding up pot-hole filling on roads during monsoon. 7 Upkeeping of service records of employees. 8 Maintaining Govt. offices clean. 9 Stream-lining reservation system of Govt. rest houses. 10 Improvement in maintenance of Govt. Hospital at Solapur. Some of the problems and the solutions thereof are explained briefly below: 1 Delay in issue of observation memos: The Public Works Department of Maharashtra is divided into six regions each headed by a Chief Engineer. Each regional Chief Engineer is assisted by a Superintending Engineer, Vigilance & Quality Circle who with the help of two Executive Engineer and about 6 Deputy Engineers carries out inspection of the ongoing projects. The samples of the construction material being used on project are collected and independently tested in the Regional Testing Laboratories to ascertain the level of acceptance. The findings of the inspections are communicated to the field engineers in the form of observation memo. It is contemplated that the Execution Engineer in charge of the project ensures immediate compliance of the remarks raised in the observation memo and carries out corrective measures in the ongoing project as well as preventive measures for the future works. However, very often the observation memos are issued after much delay defeating the very purpose of the observation memo. This problem was identified by the OMKAR Quality Circle formed in the office of Superintending Engineer, Vigilance & Quality Control Circle, Navi Mumbai. The members used various tools and methodology, identified the various root causes that led to this problem and finally solved the problem with requisite foolproofing. By solving this problem, it became possible to improve the quality of work in the field which ultimately brightened the image of the Department. The formation of Quality Circle also benefited employees by providing. a) A systematic style of education that helped them grow. b) Freedom to modify their work habits.

c) Opportunity to use their brain for development of the Department; and d) Opportunity to work as a team. e) The employees were also motivated to improve work culture, self improvement recognition and creativity in work. ii) Preventing accidents on highways: It was observed that the accident rate on Sion-Panvel Highway passing through New Mumbai had gone up sharply. The Circle members collected the data from the respective police stations and identified the important causes of accidents by using Pareto Analysis. They segregated the causes under Man, Machine, Material & Method . The Circle members found out solutions to the problem such as closing of central verge at all locations except junction, frequent lane marking, installation of Caution boards, Providing lay-byes for buses etc. The data collection of accidents for a period three months after implementation of solutions near Shirvane and Turbhe revealed that the cause of accident had been eliminated and no more accidents occurred at those locations had been eliminated and no more accidents accoured at those locations again. This way the Circle members ensured the effectiveness of the solution implemented. They made presentation to their steering committee for obtaining sanction to other solutions involving more funds. CONCLUSION Quality Circles are not limited to manufacturing firms only. They are applicable for variety of organisations where there is scope for group based solution of work related problems. Quality Circles are relevant for factories, firms, schools, hospitals, universities, research institutes, banks, government offices etc. The P.W.D. of Maharashtra has set an example for the Government organisations marching on the path of Quality Improvement.

Chapter: 9 Statistical Process control , Process Capability studies Chapter: 10 Cost of Quality- Juran/Crosby
Quality Costs

Quality costs components are


Prevention costs Appraisal costs Internal Failure Costs External Failure Costs

Prevention costs These costs are incurred in the process of trying to prevent defects and errors from occurring. The costs involved are for

planning the quality control process training and educating designing the product for quality designing the production system for quality preventive maintenance

Appraisal costs (detection costs) These are the costs of determining the current quality of the production system or inspection and testing through sampling. The costs involved are for

measuring and testing parts and materials conducting statistical process control receiving inspection reporting on quality

Internal Failure Costs These costs are incurred when defects and errors are found before shipment or delivery to the customer. The costs involved are for

labor and materials that are scrapped reworking and retesting to correct defects lost profits

External Failure Costs These are the costs of trying correct defects and errors after receipt by the customer. The costs involved are for

quick response to complaints

adjustments to correct the problem lost goodwill warranties and insurance settlements of lawsuits product recall

COQ = Prevention Cost + Appraisal Cost + Internal Failure Cost + External Failure Cost

Cost of Conformance

Cost of Non-Conformance

What is Your Company's Cost of Poor Quality (CoPQ) - Tools for calculating and reducing it

"Quality is never an accident, it is always the result of an intelligent effort" A manufacturing company had annual sales of $250 million. Its quality department calculated the total cost of repair, rework, scrap, service calls, warranty claims and write-offs from obsolete finished goods. This aggregated cost, called Cost of Poor Quality (COPQ) amounted to 20% of their annual sales. A 20% COPQ implied that during one day of each five-day workweek, the entire company spent its time and effort making scrap, which represented a loss of approximately $ 100,000 per day. Experts have estimated that Cost of Poor Quality typically amounts to 5-30% of gross sales for manufacturing and service companies. Independent studies reveal that COPQ is costing companies millions of dollars each year and its reduction can transform marginally successful companies into profitable ones. Yet most executives believe that their company's COPQ is less than 5%, or just do not know what it is. All levels of executives recognize that quality is an absolute necessity to survive and succeed in today's business environment.

average company is about 20% of sales, with a range as wide as under 1% for companies who have achieved "six sigma", about 15%-25% for companies who are at "four sigma" level and about 25% to 40% of revenue for companies who are at "three sigma" levels. A large fortune 500 communications company calculated its COPQ at 8.6% of sales in 2002 and has set a goal of 5.4% for 2005, which will result in a savings of a little less than $1 Billion per year! COPQ in a Supply Chain The Cost of Poor Quality of individual suppliers participating within a supply chain has a cumulative effect on the COPQ of the OEM shipping the end product - see figure below. As a result, companies are working very proactively with their suppliers to reduce their COPQ. Many OEMs are also implementing supplier charge-backs (also called cost recovery), where a supplier is charged for the additional cost incurred by the OEM due to non-conforming components and materials and late deliveries from suppliers. A charge-back system is an effective way to introduce business discipline and accountability into the supply chain. OEMs use it as a "stick" for their suppliers to drive them to collaboratively identify the root cause of quality problems and to implement corrective actions.

Reducing Cost of Poor Quality Systematic reductions in the Cost of Poor quality can be attained by implementing a Quality Management System (QMS) that provides an integrated and closed loop corrective action process. In a manufacturing organization, when deviations, nonconformance, out of specifications, quality incidents or customer complaints occur, corrective and preventive actions need to be initiated to remedy the problems. Once a quality problem has been identified, the first step is to initiate an investigation and to properly identify the root cause of the problem. After the root cause has been identified, Corrective Action (CAPA) items are created and routed for approval. When approved, appropriate changes are implemented in the environment and then the CAPA is closed out. These changes may include amendments to a documented procedure, upgrading the skill set of an employee through a training and certification process, or recalibrating the manufacturing equipment. In addition, the system may capture COPQ associated with that non-conformance and use that information to initiate and complete a cost recovery process with a supplier. It is critical to deploy a closed-loop, integrated quality management system, rather than a set of loosely connected modules from one or more vendors. Integration ensures that the information flows out the corrective action process with a high degree of accuracy and velocity without falling through the cracks. It also ensures that the entire change control process is auditable from end-to-end - a critical requirement to support FDA 21CFR part 11 and the Sarbanes-Oxley Section 404 audit criteria. The QMS system should also be web-based, so that the suppliers can easily participate in the quality management process. The suppliers often use the same plant to manufacture products for multiple OEMs. As a result, they cannot be forced to install different systems for different OEMs at the same plant to support their respective quality needs. Hence the OEM has to rely on process and product quality information from the supplier's quality system. That information usually

does not integrate well with the OEM's own systems and is frequently not available in a timely manner. A Web-based QMS allows the OEM to make the application available to the supplier without requiring the supplier to implement the system at their site. As a result, the supplier can provide relevant quality information about the shipment to the OEM even before it ships from the supplier's dock. If there are quality issues with any supplier component, manufacturers can take appropriate preventive action even before it arrives or take it out of the supply chain to reduce their own COPQ. QMS systems that do not support web architecture make it difficult for an OEM, participating in a supply chain, to reduce its effective COPQ.

Chapter: 11 CMM/PCMM
IV. Capability Maturity model

A maturity model can be described as a structured collection of elements that describe certain aspects of maturity in an organization. A maturity model may provide, for example:

a place to start the benefit of a communitys prior experiences a common language and a shared vision a framework for prioritizing actions a way to define what improvement means for your organization.

A maturity model can be used as a benchmark for comparison and as an aid to understanding for example, for comparative assessment of different organizations where there is something in common that can be used as a basis for comparison. In the case of the CMM, for example, the basis for comparison would be the organizations' software development processes.

Level 1 - Ad hoc (Chaotic) It is characteristic of processes at this level that they are (typically) undocumented and in a state of dynamic change, tending to be driven in an ad hoc, uncontrolled and reactive manner by users or events. This provides a chaotic or unstable environment for the processes.

Organizational implications

(a) Institutional knowledge tends to be scattered (there being limited structured approach to knowledge management) in such environments, not all of the stakeholders or participants in the processes may know or understand all of the components that make up the processes. As a result, process performance in such organizations is likely to be variable (inconsistent) and depend heavily on the institutional knowledge, or the competence, or the heroic efforts of relatively few people or small groups. (b) Despite the chaos, such organizations manage to produce products and services. However, in doing so, there is significant risk that they will tend to exceed any estimated budgets or schedules for their projects - it being difficult to estimate what a process will do when you do not fully understand the process (what it is that you do) in the first place and cannot therefore control it or manage it effectively. (c) Due to the lack of structure and formality, organizations at this level may overcommit, or abandon processes during a crisis, and it is unlikely that they will be able to repeat past successes. There tends to be limited planning, limited executive commitment or buy-in to projects, and limited acceptance of processes. Level 2 - Repeatable It is characteristic of processes at this level that some processes are repeatable, possibly with consistent results. Process discipline is unlikely to be rigorous, but where it exists it may help to ensure that existing processes are maintained during times of stress.

Organizational implications

(a) Processes and their outputs could be visible to management at defined points, but results may not always be consistent. For example, for project/program management processes, even though (say) some basic processes are established to track cost, schedule, and functionality, and if a degree of process discipline is in place to repeat earlier successes on projects with similar applications and scope, there could still be a significant risk of exceeding cost and time estimates. Level 3 - Defined It is characteristic of processes at this level that there are sets of defined and documented standard processes established and subject to some degree of improvement over time. These standard processes are in place (i.e., they are the AS-IS processes) and used to establish consistency of process performance across the organization.

Organizational implications

(a) Process management starts to occur using defined documented processes, with mandatory process objectives, and ensures that these objectives are appropriately addressed. Level 4 - Managed It is characteristic of processes at this level that, using process metrics, management can effectively control the AS-IS process (e.g., for software development ). In particular, management can identify ways to adjust and adapt the process to particular projects without measurable losses of quality or deviations from specifications. Process Capability is established from this level.

Organizational implications

(a) Quantitative quality goals tend to be set for process output - e.g., software or software maintenance. (b) Using quantitative/statistical techniques, process performance is measured and monitored and generally predictable and controllable also. Level 5 - Optimizing It is a characteristic of processes at this level that the focus is on continually improving process performance through both incremental and innovative technological changes/improvements.

Organizational implications

(a) Quantitative process-improvement objectives for the organization are established, continually revised to reflect changing business objectives, and used as criteria in managing process improvement. Thus, process improvements to address common causes of process variation and measurably improve the organizations processes are identified, evaluated, and deployed. (b) The effects of deployed process improvements are measured and evaluated against the quantitative process-improvement objectives. (c) Both the defined processes and the organizations set of standard processes are targets for measurable improvement activities. (d) A critical distinction between maturity level 4 and maturity level 5 is the type of process variation addressed.

At maturity level 4, processes are concerned with addressing statistical special causes of process variation and providing statistical predictability of the results, and though processes may produce predictable results, the results may be insufficient to achieve the established objectives. At maturity level 5, processes are concerned with addressing statistical common causes of process variation and changing the process (for example, shifting the mean of the process performance) to improve process performance. This would be done at the same time as maintaining the likelihood of achieving the established quantitative process-improvement objectives. Extensions Some versions of CMMI from SEI indicate a "level 0", characterized as "Incomplete". Some pundits leave this level out as redundant or unimportant, but Pressman and others make note of it. See page 18 of the August 2002 edition of CMMI from SEI.[6]

People Capability Maturity Model


People Capability Maturity Model (short names:PCMM,P-CMM) is a maturity framework that focuses on continuously improving the management and development of the human assets of an organization. It describes an evolutionary improvement path from ad hoc, inconsistently performed practices, to a mature, disciplined, and continuously improving development of the knowledge, skills, and motivation of the workforce that enhances strategic business performance. The People Capability Maturity Model (People CMM) is a framework that helps organizations successfully address their critical people issues. Based on the best current practices in fields such as human resources, knowledge management, and organizational development, the People CMM guides organizations in improving their processes for managing and developing their workforces. The People CMM helps organizations characterize the maturity of their workforce practices, establish a program of continuous workforce development, set priorities for improvement actions, integrate workforce development with process improvement, and establish a culture of excellence. Since its release in 1995, thousands of copies of the People CMM have been distributed, and it is used worldwide by organizations, small and large. The People CMM provides guidance to organizations in selecting immediate improvement actions that help organizations.

Characterize the maturity of their workforce practices Set priorities for immediate action Integrate workforce development with process improvement Become an employer of choice

The People CMM consists of five maturity levels that establish successive foundations for continuously improving individual competencies, developing effective teams, motivating improved performance, and shaping the workforce the organization needs to accomplish its future business plans. Each maturity level is a well-defined evolutionary plateau that institutionalizes new capabilities for developing the organization's workforce. By following the

maturity framework, an organization can avoid introducing workforce practices that its employees are unprepared to implement effectively.

Chapter:12 Quality Management in Services- the SERVQUAL Model

SERVQUAL
Concept
SERVQUAL was originally measured on 10 aspects of service quality: 1. Reliability, 2. Responsiveness, 3. Competence, 4. Access, 5. Courtesy, 6. Communication, 7. Credibility, 8. Security, 9. Understanding or knowing the customer and 10. Tangibles. It measures the gap between customer expectations and experience. By the early nineties the authors had refined the model to the useful acronym RATER:

Reliability Assurance Tangibles Empathy, and Responsiveness

SERVICE QUALITY

Quality Dimension 1. Tangibles: Appearance of physical facilities, equipment,


Samples of questions to ask Are facilities attractive? Are staffs dressed appropriately?

personnel, printed and visual materials

Are written materials easy to understand? Does technology look modern? If a response is promised in a certain time, does it happen? Are exact specifications of client followed? Are statements or reports free of error? Is service performed right the first time? Is level of service same at all times of day and for all members of staff? When there is a problem, does organization respond to it quickly? Are staffs willing to answer client questions? Are specific times for service accomplishments given to client? Are public situations treated with care and seriousness? Can staff provide service without fumbling around? Are materials provided appropriate and up to date? Can staff use the technology quickly and skillfully? Does staff appear to know what they are doing? Does staff member have a pleasant demeanor? Does staff refrain from acting busy or being rude when clients ask questions? Are those who answer the telephone considerate and polite? Do staffs observe consideration of the property and values of clients? Does service organization have a good reputation? Do staff members refrain from pressuring the client? Are responses given accurate and consistent with other reliable sources? Does the organization guarantee its services? Is it safe to enter the premises and to use the

2. Reliability: Ability to perform promised service dependably and accurately

3. Responsiveness: Willingness to help customers to provide prompt service

4. Competence: Possession of required skill and knowledge to perform service

5. Courtesy: Politeness, respect, consideration and friendliness of contact personnel

6. Credibility: Trustworthiness, believability, honesty of the service provider

7. Security:

Freedom from danger, risk, or doubt


equipment? Are documents and other information provided for the client held securely? Are use records of clients safe from unauthorized use? Can client be confident that service provided was done correctly? How easy is it to talk to knowledgeable staff member when client has a problem? Is it easy to reach the appropriate staff person o In person? o By telephone? o By email? Are service access points conveniently located? When client contacts service point, will staff person listen to their problem and demonstrate understanding and concern? Can staff explain clearly the various options available to a particular query? Do staffs avoid using technical jargon when speaking with clients? Do staff members call if a scheduled appointment will be missed? Does someone on staff recognize each regular client and address them by name? Do staffs try to determine what client's specific objectives are? Is level of service and cost of service consistent with what client requires and can afford? Are service providers flexible enough to accommodate to client's schedule?

8. Access: Approachability and ease of contact.

9. Communication: Listening to customers and acknowledging their comments; Keeping customers informed in a language they can understand.

10. Understanding the Customer: Making the effort to know customers and their needs.

Casestudy: 1 TOTAL QUALITY MANAGEMENT IN HOSPITALS

3M company with a reputation for excellence in quality have leveraged this reputation by organizing separate strategic business units to market consulting and training services. The Management Services Division of 3M has clients ranging from airlines to educational institutions. Labeled as masters of innovation, the company has been noted over time as a quality manufacturer of over time as a quality manufacturer of over 50,000 products world wide.

A central idea of 3Ms total quality system, called Managing Total Quality (MTQ) is the vision for success, the key motivating force behind the MTQ success. Following the examples of 3M a number of hospital clients of 3M have drafted new mission statements as the basis for a quality management system.

The president of L.G. Health Care System is of the opinion that too many mission statements read alike and are general in nature. For example, a mission statement reads like we are going to deliver highquality health care at the lowest possible price. This type of mission statement does not spell outanything about the hospitals mission in the market.

The mission statement of L.G. Health Care System reads as below :

The purpose of the L.G. Health Care Systems is to provide quality health care and health related services. We are committed to a comprehensive approach that effectively and efficiently meets the needs of individuals, families and the community including those who are most vulnerable.

Our mission which is an expression of our philosophy of Human Ecology, demands that our practices demonstrate concern for the whole person body, mind , emotions, spirit and relationships as fundamental to every human human encounter. We encourage the adoption of this philosophy through services, research, charity, advocacy and example.

In addition to L.G. Health Care Systems, St. Lukes Medical Centre and S.C. Baptist Hospitals are other health care centres that have that have adopted Total Quality Management based on MTQ process of 3M. Each admits that TQM is necessary in light of ever-increasing health care costs steadily decreasing federal funding for Medicare and Medicaid.

Employee involvement is aprimary characteristics of TQM and the 3M system. Because participation by all individuals ranging from the nursing staff to administration to environmental services is strongly encouraged, each employee is empowered to make decisions and initiate service goals without first having to pass ideas through several levels of authority. Because it is important to involve all constituents, steering committee members are composed of hospital volunteers and employees, patients and physicians. This broad mix of input providers ensures that all constituents have a voice in the quality process.

Questions:

1. Describe how the mission statement of L.G. Health Care System can be implemented and made operational? 2. How can quality as defined in the mission statement be measured? 3. Would the L.G. Health care systems mission be appropriate for a for-profits hospital? Explain. 4. Will mounting pressure for health care costs make it more difficult to implement TQM? Explain.

Casestudy: 2

Case study:

HOW VELCRO GOT HOOKED ON QUALITY

One morning in August 1985, CEO of Velcro received a phone call from his Detroit sales manager informing that General Motors was dropping Velcro from its highest supplier quality rating to the next to lowest level, four ( on a one to five scale). GM allowed Velcro 90

days time period to set up and start a program of total quality control or else face the loss of not only an important customer (General Motors) but also Velcro most promising growth market.

At this time, Velcro had 23 quality control people in their plant. To the machine operators, quality was the responsibility of quality control people. The quality control people were stationed at certain points and they would inspect on a sample basis and say whether the particular run was good or bad. What was bad was scrapped. Nobody changed the process and there was no pressure on anybody to make a change to improve quality and reduce wastages.

It is wrong to assume that the production employees were causing the waste and to blame them for it without giving them the tools to deal with the problem would have been a bigger mistake. Under such conditions, production employees were afraid to report defects in products produced and the scrap was being disposed off to scrap yard during the third shift (night shift). The management felt that it was necessary to train the operators in quality control and more attention to be given to operators, machine repair and redesign and to measurement and report techniques that track results, focused on responsibilities and established up-and down communications.

The pressure on production employees to reduce wastages was lacking due to the attitudes lf supervisors who took the wastages due to bad quality very lightly. The supervisors infact were a big barrier to making the operators responsible for quality.

Velcro installed the Statistical Process Control (SPC) system, which went a long way toward pin-pointing where the production process went wrong and needed improvement. The charting mechanism (control charts) of SPC put pressure on the line operators who had difficulty with the idea that quality and quantity are not mutually exclusive expectations. The production employees were reluctant to speed up production for the fear of making more mistakes and thereby increase wastages or scrap. Gradually, the quality control people will put of stations early in the process and then out of points later in the process entrusting the production employees the job of maintaining quality in their work. The number of mistakes declined as a result.

Questions:

1. Unless threatened with losing a major customer (General Motors in this case) why should an organiz.ation work to improve its quality. 2. Discuss the role of managers, workers and quality control inspectors in quality improvements.

Assignment:1
1. TQM is a total system approach and is an integral part of corporate strategy. It works horizontally across functions and departments involving all employees from top to bottom. Explain

.2 Which of the quality gurus, in your view, have most significantly influenced the quality movement since World War II ? Briefly discuss the main points of the contribution of one such guru.

3.. "TQM requires a transformation in thinking about how you view your customers, suppliers and shareholders." Explain, citing any research evidence. Examine the role of leaders in transformation or changing the organization

4.Discuss the various types of quality costs .What kind of costs should a firm be more concerned with and why ?

5.Mean values and ranges of data from 20 samples (Sample Size = 4)are shown in the table below:

S.N. Mean Range S.N. Mean Range S.N. Mean Range S.N. Mean Range S.N. Mean Range 1 11 4 5 10 4 9 11 4 13 15 4 17 12 5 2 14 3 6 11 5 10 13 5 14 11 5 18 13 3 3 12 5 7 11 4 11 12 4 15 12 4 19 13 4 4 11 4 8 10 4 12 13 3 16 10 4 20 11 6 Calculate the necessary values considering A2 = 0.729, D3 = 2.282, D4 = 0.0 and Plot the X-Bar Chart and R-Bar Chart.

6.Write Short Notes on: a. Jidoka b. 5 S c. P-CMM d. Lean Manufacturing

Assignment:2

Q.1

a) Juran defined quality as fitness for use or purpose . Critically evaluate the definition. b) A writer on quality has proposed statement that quality is only issue for organizational survival. Discuss the statement in the light of the challenges facing contemporary oganizations.

Q. 2

What are the roles and responsibilities of top management of an organization in developing and implementing TQM concepts in an organizations?

Q.3

Explain various components of quality cost and strategy for reducing quality cost.

Q.4

Examine the the role of leaders in transformation or changing the organization. What principal reasons you think, might be responsible for many leaders not being able to succeed in managing change in the context of TQM?
Mean values and ranges of data from 20 samples (Sample Size = 4)are shown in the table below: S.N Mea . n Rang e S.N Mea . n Rang e S.N Mea . n Rang e S.N Mea . n Rang e S M Range . e Na . n 1 7 1 8 1 9 2 0 1 2 1 4 1 3 1 1 5 4 4 6

1 2 3 4

10 14 13 11

3 4 5 4

5 6 7 8

10 11 11 9

4 5 4 4

9 10 11 12

11 10 12 13

4 5 4 3

13 14 15 16

15 12 11 10

4 5 4 4

Calculate the necessary values considering A2 = 0.729, D3 = 2.282, D4 = 0.0 and Plot the X-Bar Chart and R-Bar Chart.

Q. 5.

Write short notes on (Any Two) a) b) c) d) Fishbone Diagrams Quality Taguchi Loss Function Six-sigma CMM

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