TQM Lecture Slides PDF

11/7/2013
BITS Pilani
Hyderabad Campus
Total Quality
M
Management t
G. Pavan Kumar
BITS Pilani
Hyderabad Campus
Faculty
Mechanical Engineering Department
Introduction
Contents TQM Course Goals

¾ Introduction ¾To enable you to
¾ Appreciate the importance of quality and understand its
¾ Define Quality and Quality perspectives
historical evolution.
¾ Need and Awareness ¾ Understand the basic principles & practices of TQM. The
main elements / practices required for any company
¾ Old vs. TQM Approach
wanting to achieve excellence.
¾ Gurus of Quality ¾ Apply quantitative and qualitative tools and techniques in
appropriate ways to investigate and ultimately resolve
¾ History of quality management
product or service quality concerns; and
¾ Obstacles to TQM implementation ¾ Evaluate the use of TQM initiatives, tools, and techniques
in an organization
¾ Benefits of TQM
3 MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus 4 MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus
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Course Overview Introduction

¾ TQM is both a philosophy and a set of guiding
p
principles for continuously improving the organization
p y p g g
¾ ...is the application of quantitative methods and
human resources to improve all the processes within
an organization and exceed customer needs now and
in the future.
Introduction – contd., What is quality?

quality?
¾ It is an enhancement to the traditional way of doing business ¾ Some definitions that have gained wide acceptance in
¾ It is a pproven technique
q which gguarantee a survival in the g
various organizations: “Quality
Q y is customer
competitive world, if implemented properly satisfaction,” “Quality is Fitness for Use.”
¾ TQM stands for ¾ The American National Standards Institute (ANSI)
– Total - Made up of the whole and the American Society for Quality (ASQ) define
– Quality - degree of excellence a product or service quality as:
provides
¾ “The
The totality of features and characteristics of a
– Management - Act, art or manner of planning, controlling, product or service that bears on its ability to satisfy
directing,….
given needs.”
¾ Therefore, TQM is the art of managing the whole to achieve
excellence. TQM relies on common sense.
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Quality perspectives Quality perspectives – contd.,

¾Judgmental perspective ¾User-based perspective
¾ “goodness of a product.” ¾ “fitness
f for
f intended use.”
¾ Shewhart’s
Sh h ’ transcendentald l definition
d fi i i off quality
li –
“absolute and universally recognizable, a mark of ¾ Individuals have different needs and wants, and hence
uncompromising standards and high achievement.” different quality standards.
¾ Examples of products attributing to this image: Rolex ¾ Example – Hyundai Accent Vs Mercedez Benz or
watches, Lexus cars. BMW cars.
¾Product-based perspective ¾Value-based perspective
¾ “function
function of a specific,
specific measurable variable and that
differences in quality reflect differences in quantity of ¾ “quality product is the one that is as useful as
some product attributes.” competing products and is sold at a lesser price.”
¾ Example: Sony Bravia and Sansui 21 inch color ¾ Example – Indigo Vs Kingfisher.
televisions.
Quality perspectives – contd., A better definition of quality

¾Manufacturing-based perspective ¾Proposed by Garvin
¾ “the desirable outcome off a engineeringg g and ¾ Garvin mentioned that q
quality
y can be defined
manufacturing practice, or conformance to 9 Performance – Primary product characteristics
specification.” 9 Features – Secondary product characteristics
¾ Engineering specifications are the key! 9 Conformance – Meeting specifications or standards
9 Reliability – Consistency of performance over time
¾ Example: Diameter of a shaft = 20 +/- 0.5mm
9 Durability – Useful life
9 Service – Resolution of problem and complaints
9 Response – Human to human interaction
9 Aesthetics – Exterior finish
9 Reputation – Past performance
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Basic concepts of TQM TQM Language: Some Terms

¾What are the Basic Concepts of TQM. Explain? ¾ What do you mean by a customer?
¾ A committed and involved management
g to p
provide 9 Anyone who is impacted by the product or process delivered
long term top-to-bottom organizational support by an organization.
¾ An unwavering focus on the customer – both internal 9 External customer: The end user as well as intermediate
and external processors. Other external customers may not be purchasers
but may have some connection with the product.
¾ Effective involvement and utilization of the entire
work force 9 Internal customer: Other divisions of the company that receive
the processed product
product.
¾ Continuous improvement of the business and
¾ What is a product?
production process
9 The output of the process carried out by the organization. It
¾ Treating suppliers as partners may be goods (e.g. automobiles, missile), software (e.g. a
¾ Establish performance measures for the process computer code, a report) or service (e.g. banking, insurance)
TQM Language – contd., The Need for TQM

¾How is customer satisfaction achieved? ¾Why quality is becoming a cardinal priority for most
9 Product features – Refers to quality of design.
design organizations.
g Explain?
p
¾ Competition – Today’s market demand high quality
– Examples in manufacturing industry: Performance,
products at low cost. Having `high quality’ reputation is
Reliability, Durability, Ease of use, Esthetics etc. not enough! Internal cost of maintaining the reputation
– Examples in service industry: Accuracy, Timeliness, should be less.
Friendliness and courtesy, Knowledge of server etc. ¾ Changing customer – The new customer is not only
9 Freedom from deficiencies – Refers to quality of commanding priority based on volume but is more
demanding about the “quality system.”
conformance.
¾ Changing product mix – The shift from low volume, high
9 Higher conformance means fewer complaints and price to high volume, low price have resulted in a need to
increased customer satisfaction. reduce the internal cost of poor quality.
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Need – contd., Awareness

¾ Product complexity – As systems have become more ¾ An organization will not begin TQM until it is aware that
p , the reliabilityy requirements
complex, q for suppliers
pp of quality
q y of p
product/service has to be improved
p
components have become more stringent. ¾ Awareness comes
¾ Higher levels of customer satisfaction – Higher – When organization starts losing market share
customers expectations are getting spawned by – Managers begin to understand quality and productivity
increasing competition. go hand in hand
¾ Relatively simpler approaches to quality viz. product – It is thrust upon by the customer
inspection for quality control and incorporation of – Management understand that it is a better way to do
internal cost of poor quality into the selling price, business
might not work for today’s complex market ¾ Automation alone cannot increase profit/growth, if the
environment. quality of product is poor
Awareness – contd
contd.,
., Old vs. TQM Approach
¾ Quality and productivity are not mutually exclusive, Quality Element Previous Approach TQM Approach
rather theyy are related Definition
D fi i i P d t i t d
Product‐oriented C t
Customer‐oriented
i t d
¾ Increase in quality level lead to increase in Priorities 2nd to service and cost Equals of service and cost
productivity Decisions Short‐term Long‐term
¾ TQM cannot happen overnight. It takes a long time Emphasis Detection Prevention
and at least 4 to 5 years is required to establish it in an Errors Operations System
organization Responsibility Quality control Everyone
¾ During those time, short term profits and results Problem Solving Managers Teams
should not be focused rather a long term planning and Procurement Price Life‐cycle costs,partnership
constancy of purpose should be maintained. Manager’s Role Plan, assign, control, and Delegate, coach, facilitate
enforce and mentor
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Gurus of Quality Gurus of Quality – contd

contd.,
.,
¾ Walter Shewhart ¾ Juran
• Father of Statistical Process Control (SPC)
( ) • Worked at Western Electric and learnt about the
• Worked at Western Electric and Bell Laboratories Limited Shewhart’s techniques
• Developed the control chart theory based on the concept of • Stressed the necessity of all management at all levels to be
special causes and common causes committed to quality
¾ Deming • Proposed the Quality Trilogy
• Spread SPC and quality to the leading CEO’s of Japan ¾ Feigenbaum
• Provided the foundation for Japan’s quality miracle • Noted that quality begins with identifying the customer
• Developed the 14 points for quality improvement, which needs and ends with a product/service meeting their needs
formed the basis of ISO 9000, QS 9000 and other quality • Proposed the concept of Total Quality Control
systems
Gurus of Quality – contd

contd.,
., Gurus of Quality – contd
contd.,
.,
¾ Ishikawa ¾ Taguchi
• Studied under Deming, g Juran and Feigenbaum
g • Developed
p the concept p of loss function, which combined
• Helped the Japanese to adopt the quality control concepts the concept of cost, target and variation
that were developed by the US • Noted that quality is all about reducing the variation
• Developed the cause and effect diagram • Proposed a method for the same based on the concept of
• He proposed the concept of quality circle team design of experiments (DOE).
¾ Crosby
• Quality is free, proposed 4 absolutes of quality
management
• Stressed on the importance of “doing it right first time”
and explained that it is less expensive than the cost of
detecting and correcting mistakes.
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History of quality management History – contd

contd.,
.,
¾…To know the future, know the past! ¾ Statistical approaches to quality control started at
p
Western Electric with the separation of inspection
p
¾ Before Industrial Revolution, skilled craftsmen served both division. Pioneers like Walter Shewhart, George
as manufacturers and inspectors, building quality into their Edwards, W. Edwards Deming and Joseph M. Juran
products through their considerable pride in their were all employees of Western Electric.
workmanship. ¾ After World War II, under General MacArthur's Japan
¾ Industrial Revolution changed this basic concept to rebuilding plan, Deming and Juran went to Japan.
interchangeable parts. Likes of Thomas Jefferson and F. ¾ Japanese were badly defeated in World War II. Their
W. Taylor (“scientific management” fame) emphasized on industrial and financial bases were in chaos.
production efficiency and decomposed jobs into smaller ¾ Japan had no natural resource and limited source of
work tasks. Holistic nature of manufacturing rejected! food for their people.
History – contd
contd.,
., History – contd.,
¾ The quality movement began in Japan in 1946 with the ¾ Next 20 odd years, when top managers in USA focused on
U.S. Occupation
p Force's mission to revive and restructure marketing,
g pproduction q
quantity
y and financial p
performance,
Japan's communications equipment industry. Japanese managers improved quality at an unprecedented
¾ Deming was invited by the Union of Japanese Scientists rate.
and Engineers to Japan in 1947. ¾ Market started preferring Japanese products and American
¾ In 1954, Joseph Juran of the USA raised the level of companies suffered immensely.
quality management from factory to the total organization ¾ America woke up to the quality revolution in early 1980s.
in Japan. Ford Motor Company consulted Dr. Deming to help
¾ Deming and Juran introduced SPC to Japanese industry. transform its operations.
¾ The difference between approaches to quality in USA and ¾ (By then, 80-year-old Deming was virtually unknown in
Japan: Deming and Juran were able to convince the top USA. Whereas Japanese government had instituted The
managers the importance of quality. Deming Prize for Quality in 1950.)
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History – contd
contd.,
., Obstacles to TQM implementation
¾ Managers started to realize that “quality of management” ¾What are the major obstacles to TQM.Explain?
is more important
p than “management
g of q
quality.”
y Birth of ¾ Lack off management
g commitment
the term Total Quality Management (TQM). 9 Any organization change programme requires management
¾ TQM – Integration of quality principles into organization’s time and resources and it should be provided by the top
management
management systems.
9 The purpose of the change should be communicated to
¾ Early 1990s: Quality management principles started
every employees
finding their way in service industry. FedEx, The Ritz- 9 Every in great pressure, the quality and customer
Carton Hotel Company were the quality leaders. satisfaction should be perceive
¾ TQM recognized worldwide: Countries like Korea, India, ¾ Improper planning
Spain and Brazil are mounting efforts to increase quality 9 All constituents (levels) should be involved in the planning
awareness. 9 2 way communication of idea is required among everyone
Obstacles – contd
contd.,
., Obstacles – contd
contd.,
.,
¾ Inability to change organization culture ¾ Paying inadequate attention to internal and external
¾ Changing
g g the organization
g culture is very
y difficult customers
¾ Individual must change- but they are accustomed to one – Organization needs to understand the changing needs of
particular way of performing and prefers that way only customers
¾ Management must understand the following – Effective feedback mechanism is necessary
9 People change only when their own needs are met ¾ Inadequate use of empowerment and teams
9 For change to be accepted, people should be moved – Team needs to have proper training and a facilitator
from a state of fear to trust – Teams recommendations should be followed
¾ Individuals cannot change easily and naturally, the – Individuals should be empowered to make decisions
organization also change its culture easily ¾ Failure to continually improve
¾ Lack of effective communication and emphasis on short – Lack of continuous improvement of product/services
term results also prevent cultural change will even make the leader to be behind the competition
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Obstacles – contd
contd.,
., Obstacles – contd.,
¾ Lack of continuous training and education ¾ Incompatible organization structure
– Training
g and education is an ongoing
g gp process – Differences between departments
p and individuals can
– Needs must be identified and plan must be made for create problems
achieving that need – Use of multi-functional team is required to resolve this
– Senior management must conduct the training to problem
explain about the principles of TQM – Individuals who do not embrace the new philosophy
– Lack of training on group discussions and should be made to leave the organization
communication, quality improvement skills, problems
solving skills etc. affect implementation
Benefits of TQM Benefits of TQM – contd

contd.,
.,
¾ Improved profitability and market share Studies show that quality programs such as TQM can:
¾ Customer satisfaction
¾ Product quality ¾ Boost company revenues by as much as 40%.
• Less waste and rework
¾ Decrease productivity costs by 20 to 50%.
• Higher profits
¾ Improved communication ¾ Cut production time by as much as 70%.
¾ Employee involvement
¾ Build strong customer loyalty.
loyalty
• Training
• Teamwork
• Employee satisfaction
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BITS Pilani Contents

Hyderabad Campus
¾ Leadership, Characteristics of Quality Leaders
¾ 7 habits of highly effective people & Deming Philosophy
¾ Role of leadership & senior management in Implementation
¾ Quality council
¾ Core values and concepts

p
¾ Shared values
Leadership ¾ Quality statements, 7 steps to strategic planning
¾ Communications
3 MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus
Comparison between Manager

Manager--
Leadership Leader
A leader is one who imparts purposes, not one who ¾ Manager ¾ Leadership for quality
controls byy brute force. One who strengthens
g and (Outstanding leadership)
inspires the followers to accomplish shared goals. A manager administers A leader innovates.
He is one who shape, promote, protect and exemplify is a copy is an original
the organization values. maintains develops
Leaders and followers raise one another to higher focuses on systems structure focuses on people
levels of motivation and morality relies on control inspires
p trust
¾ Leadership is we not me; mission not my show; vision, has a short-range view has a long-range perspective
not division; and community, not domicile– Daimler Asks how and when asks what and why.
Chryslers' CEO his eye on the bottom line his eye is on the horizon
Imitates originates
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Characteristics of Quality Leaders

-- contd.,
¾ Priority attention to internal/external customers ¾ Learn from problems
¾ Empower, rather than control subordinates ¾ Continually try to improve communications
¾ Emphasize improvement, rather than maintenance ¾ Continually demonstrate their commitment to quality
¾ Emphasize prevention ¾ Choose suppliers on basis of quality, not price
¾ Encourage collaboration rather than competition ¾ Establish organizational systems to support quality
¾ Train and coach, rather than direct and supervise effort
¾ Encourage and Recognize team effort
7 habits of highly effective people The Deming Philosophy

1. Be proactive- don’t let fate control you, you control it ¾ 1. Create constancy of purpose toward improvement
p ,
of product and service, with the aim to become
2. Begin with the end in mind – have a vision and plan competitive and to stay in business, and to provide
3. Put first things first – learn to prioritize jobs.
¾ 2. Adopt the new philosophy. Management must
4. Think win-win – seek mutual benefits
awaken to the challenge, must learn their
5. Seek first to understand, then be understood responsibilities, and take on leadership for change.
6. Synergy – teams are better than individuals ¾ 3. Cease dependence on inspection to achieve quality.
Eliminate the need for inspection on a mass basis by
7. Sharpen the saw – renew one’s physical, spiritual, mental building quality into the product in the first place.
and emotional dimension
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The Deming Philosophy The Deming Philosophy

¾ 4. End the practice of awarding business on the basis ¾ 8. Drive out fear, so that everyone may work effectively
of price tag. Move towards a single supplier for any for the company .
one item, on a long‐term relationship of loyalty and ¾ 9. Break down barriers between departments. People in
trust. research, design, sales, and production must work as a
¾ 5. Improve constantly and forever the system of team, to foresee problems of production and in use that
production and service, to improve quality and may be encountered with the product or service.
productivity, and thus constantly decrease costs. ¾ 10. Eliminate slogans, exhortations, and targets for the
¾ 6. Institute training on the job.
6 Institute training on the job work force asking for zero defects and new levels of
kf ki f d f t d l l f
¾ 7. Institute leadership. The aim of supervision should productivity. These only create adversarial relationships,
be to help people and machines and gadgets to do a as the bulk of the causes of low quality and low
better job. productivity belong to the system and thus lie beyond the
power of the work force.
The Deming Philosophy The Deming Philosophy

¾ 11a. Eliminate work standards (quotas) on the factory ¾ 13. Institute a vigorous program of education and self‐
floor. p
improvement.
¾ b. Eliminate management by objective. ¾ 14. Put everybody in the company to work to
Eliminate management by numbers, numerical goals. accomplish the transformation. The transformation is
¾ 12a. Remove barriers that rob the hourly worker of everybody's job.
his right to pride of workmanship. The responsibility
of supervisors must be changed from sheer numbers
to quality.
quality
¾ b. Remove barriers that rob people
in management and in engineering of their right to
pride of workmanship.
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Qualities of a leader Qualities of a leader

¾Requires a keen understanding of human nature ¾Leader needs to do the following
9 Basic needs,
needs wants,
wants abilities of people etc.
etc 9 Give employees
p y independence;
p encourageg and reward
small success
¾To be an effective leader, he should know that people 9 Create an environment do not penalize mistakes
9 Need security and independence at the same time 9 Give a personal control over their task to make them own
9 Are sensitive to rewards and punishments and like to ¾James McGregor Burns says
hear a word of praise 9 Leader is one who instils purpose, not one who controls
9 Can only process a few facts at a time and hence by brute force
leader needs to keep things simple 9 Leader strengthen and inspires followers to accomplish
shared goals
9 Distrust leader, if words are inconsistent with leader 9 Leader shape organization values, promote it and protect
action it
Role of leadership in
Implementation
Role of leadership – contd
contd..
..
¾ Commitment ¾ Formation of quality council
9 Begins with senior management (CEO commitment) 9Developp a vision, mission statements and qquality
y ppolicy
y
9 Commitment and leadership requires every phase of with involvement of all personnel including middle
implementation managers and supervisors
¾ Education ¾ TQM retreat
9 Senior management / manager should be educated about 9To develop ownership in TQM effort and make them
TQM concepts acquire insight and skills for becoming leaders
9 Can learn by industrial visits of TQM plants, seminars,
9TQM training,
t i i leadership
l d hi skillskill etc.
t will
ill be
b taught
t ht
books etc.
¾ Timing ¾ Discussion with union
9 Is organization ready for implementation? – Share implementation plan of TQM
9 Check for any foreseeable problem like change in mgmnt – Both manager and union leader have to work together
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Role of leadership – contd

contd..
.. Role of senior management
¾ Communicate it to entire organization ¾ Must participate in implementation process, quality
– It is necessary to create awareness, interest and desire council activities, practice philosophy – management by
f action
for i from
f workers
k wandering
d i aroundd (Getting
(G i out off office,
ffi talk
lk with
ih
¾ Conduct survey customer, supplier and collect first hand information)
– Customer, employee and supplier surveys to collect ¾ Deploy problem solving and decision making to the lowest
information to identify quality improvement projects level by delegating responsibility and authority
¾ Problem solving training to employee ¾ Should provide needed resources like training, equipment,
– Training is conducted to employees, who will play a funding, should celebrate the success of quality
major
j rolel in
i quality
li improvement
i project
j i
improvement effects
ff through
h h awardsd and
d recognition
ii
¾ Deploying projects ¾ Must visibly and actively engage in quality effort through
– Team are formed and are allotted initial projects demonstrating, communicating and emphasizing on quality
– Quality council monitors the progress statements
Role of senior management –

contd..
contd ..
Quality council
¾ Listen to internal and external customers and suppliers based ¾What do you understand by term Quality Council and
on which process improvements projects to be identified what is its’ needs.
¾ Important role is communication. To create awareness and ¾ Establish to provide overall direction, driver of the TQM
importance of TQM and provide TQM results in ongoing engine
manner ¾ Composed of CEO, senior managers of functional area and
¾ Ultimately they should a consultant along with union representative and
coordinator
– Drive out fear of the organization
¾ Coordinator should report
p to CEO. His responsibility
p y is to
– Breakk ddown bbarriers
i build two-way trust, propose team’s need to the council,
– Remove system obstacles share council expectation to team etc.
– Minimize resistance to change ¾ It is necessary that quality council become ingrained in
– Change the culture culture
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Quality council – contd

contd..
.. Core values and concepts
¾ Responsibility ¾ Helps to TQM behaviour and define the culture
9 Develop core values, vision statement, mission statement, quality ¾ Customer driven quality
polic statement with
policy ith input
inp t from personnel
9 It is a strategic concept
9 Develop strategic long-term plan with goals and annual quality
program with objectives 9 Quality is judged by customers
9 Create total education and training plan 9 Should have product / service / process characteristics, that
9 Determine and continuously monitor the cost of poor quality add value to the customer and satisfying them should be the
focus
9 Determine the performance measures revise the recognition and
reward system 9 Also include organization relationship with customers that
9 Determine those projects that improve processes – that affect internal help build trust, confidence and loyalty
and external customer satisfaction 9 Should also include product differentiation that makes it
9 Establish multi functional project/work group; monitor progress unique from competition
Core values and concepts – Core values and concepts –

contd..
contd.. contd.,
contd.,
¾ Continuous improvement and learning ¾ Valuing employees
9 Continuous improvement refers to both 9 Organization
g success depends
p on the skills and motivation
9 incremental and breakthrough improvement of workforce
9 Learning refers to adaptation to change, leading to new goals 9 Organization needs to invest in development of workforce
¾ Continuous improvement and learning through education, training and opportunities for growth
9 Both have to be embedded in organization functions which include classroom, on the job training, job rotation
9 Are required part of daily work etc.
9 Eliminate problem at source 9 Training should be on advanced technologies also
9 Driven by opportunities to do better 9 It also include integration of HR practices like selection,
9 Enhancing value to customer through new/improved products performance, career advancement etc.
9 Reducing errors, defect, waste
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contd.,
contd., contd.,
contd.,
¾ Design quality and prevention ¾ Management by fact
9 Organization needs to emphasize design quality – problem 9 Organization
g depends
p on measurement and analysis
y of
and waste prevention through building quality into products performance
9 Cost of preventing problems at the design stage are lower 9 Measures are derived from organizational strategy and provide
than cost of correcting problems critical data and information about key processes, output and
9 Design quality means fault-tolerant / failure resistant results
process and products 9 Data needed are of many types: customer, product/service,
9 Waste can occur not only due to resource use and competition, supplier, employee related, cost & financial etc.
manufacturing process, it also talks about process waste ¾ Management by fact
and product waste
9 Decision making should be based on analysis of the above said
9 Growing environmental demand means, design quality and data
prevention should also take into account these factors
9 It helps to set realistic goals

contd.,
contd., contd.,
contd.,
¾ Partnership development ¾ Corporate responsibility and citizenship
9 Organization
g needs to build internal and external 9 Responsibility
p y refers to organizations
g business ethics,,
partnership to have better accomplished goals protection of public health, safety and environment, which
9 Internal partnership include labour management may be affected by organization process, product / service
cooperation and agreement with unions 9 Emphasize on resource conservation and waste reduction at
9 It also relates to creating network relationship among source
organization units for knowledge sharing and flexibility 9 Organization should meet all local, state and federal laws
9 External partnership include those with customers,
customers and regulatory requirements
suppliers and educational organizations 9 Citizenship refers to education improvement, community
9 Partnership helps to blend organization’s core competencies services etc.
with strength and capabilities of partners to improve overall
capability
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Shared values Shared values – contd

contd.,
.,
¾What are the major principles, which leads to greater ¾ Be receptive to new ideas, regardless of their origin
productivity, quality, job satisfaction and profits? 9 Health work environment should invite p people
p to offer
9 Treat others with uncompromising truth ideas and suggestion
– Avoid rumours / grapevine 9 Mostly best ideas comes from the person performing the
– Tell truth – good or bad process
9 Lavish trust on your associates 9 It motivates the employee and enhance job security
– Pride of ownership is the feeling employee get, when lavished ¾ Take personal risk for organization’s sake
with trust 9 Organization
O i ti culture
lt should
h ld allow
ll forf failures
f il without
ith t
– Managers must trust employees to make decisions reprisal
9 Mentor unselfishly ¾ Give credit where credit is due
– Management teach employees; Employees teach employees 9 Employee wants to understand the rewards and feel that
– Employees teach management they are fair enough
Shared values – contd

contd.,
., Quality statements
¾ Do not touch dishonest dollars ¾What do you understand by Quality Statements?
9 Some survey shows the employees feel that to some ¾ Include vision statement, mission statement and q qualityy p
policy
y
extent manager’s are dishonest statement
9 It affects organization morals and self respect ¾ They are part of strategic planning process and includes goal
and objectives. Utilization for four statements vary considerably
9 Organization should not take unfair advantage of from organization to organization
employees, customers, suppliers and even competitors
¾ Vision statement:
¾ Put the interest of others before yyour own 9 Statement declaring what an organization should look like 5 to
9 When people focus on what is good for organization 10 years in the future
rather than their self interest, then everyone gains 9 Statement should be short and concise
9 “To be world-class enterprise in professional electronics” –
Bharat Electronics
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Quality statements – contd

contd.,
., Quality statements – contd
contd.,
.,
¾ Mission statement: ¾ Quality policy
9 Who we are; Who are the customers; What we do; How we
d ?
do? 9 Should be written by CEO with feedback from
9 Statement is of one paragraph or less, easy to understand and workforce and approved by quality council
describes the function of the organization 9 Common characteristics:
Ex: “Our mission is to help our customers achieve their Quality is first among equals
business goals through excellence in global product realization.
We will enable this through solutions based on innovative Meet the needs of the internal and external customers
technologies efficient processes and word
technologies, word-class
class competencies Equal or exceed the competition
in our people” – Geometric Software Continually improve the quality
¾ Quality policy
Include business and production practices
9 Guide for everyone in the organization as to how they should
provide products and services to customers Utilize the entire work force

contd.,
., Quality statements – contd
contd.,
.,
9 “Quality is the basic principle of Xerox Quality ¾ Strategic planning
means pprovidingg our internal and external 9 Many y organization
g find that strategic
g qqualityy pplans
customers with innovative products and services and business plans are inseparable
that fully satisfy their requirements. Quality is the 9 Long term plan – 3 to 10 years
job of every employee” 9 Short term plan - < 1 year
¾ In summary, the quality statements consists of core ¾ Goals and objectives
values, vision, mission and the quality policy 9 Both has same meaning
statement. 9 Goal for long-term (winning the war)
9 Objective for short-term planning (capture the
bridge)
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contd.,
., 7 steps to strategic planning
9 Goal should provide the basis for measurement ¾What are the various steps to be taken for strategic
planning. Explain?
9 Goals must be based on statistical evidence or
¾ Quality and customer satisfaction are the centre of
otherwise it may be exhortations organization future
9 Goals must be definitive, specific and understandable ¾ Customer needs: Who are the customers? What they want?
using concrete results rather than behaviours or attitude How will organization meet and exceed expectation?
9 It should involve specific time frame and there should ¾ Customer positioning: Product or service with poor quality
performance should be targeted
p g for breakthrough
g and are
be cause and effect relationship between the goals and
eliminated
method
¾ Predict the future: Demographics, economic forecast,
9 Objectives are operational approaches to attain the technical assessment are tools that help predict the future,
goals rate of change is continuously increasing
7 steps to strategic planning Communications

¾ Gap analysis: Identify the gap between current state ¾ Quality council is driver and communication is the fuel
and future state ¾ It delivers the organization
g values, expectations,
p provide
p
information about corporate developments, allow feedback
¾ Closing the gap: Develop plan and establish goal,
from all levels
objectives and responsibilities
¾ 2 basic communication techniques are interactive and formal
¾ Alignment: As the plan is developed, it must be ¾ Interactive
aligned with the mission, vision and core values 9 Most effective communication is between the employee and
¾ Implementation: The most difficult step and resources his / her supervisor
may be allocated and resistance to change has to be 9 He can transfer information on what needs to be improved,
overcome how to do it, why it need to be done etc.
9 This type of communication can be on one-on-one basis or
group basis
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Communications – contd
contd..
.. Communications – contd
contd.,
.,
¾ Interactive ¾ Feedback
9 Group meeting generally occur at beginning of shift 9 Communication system
y to be effective,, there must be
9 Another effective communication is through discussion feedback
during a lunch session
9 Survey to be conducted to check whether key messages are
9 Meeting of all employees every quarter and explain the
understood and supported by the employees
state of company and answer questions from employee
9 It can also occur electronically by email, video ¾ Decision making
conference etc. 9 Making
g ppoor decisions is one of the deadliest threat
¾ Formal 9 To make correct decision, it is better to use problem solving
9 Occurs by either through printed page or electronics method
9 Periodic publications: newsletter, monthly magazine 9 Graphics is another form of effective communication like
etc.
charts, Pareto diagrams etc.
Additional reading Summary

¾ “Out of the Crisis” by W. Edwards Deming, The MIT 9 Leadership, Characteristics of Quality Leaders
,
Press, 1980.
9 7 habits of highly effective people & Deming Philosophy
¾ “Total Quality Management for Project Management”
by Kim H. Pries and Jon M. Quigley, Auerbach 9 Role of leadership & senior management in Implementation
Publications, 2013 9 Quality council
¾ “Strategic Planning For Dummies” by Erica Olsen,
9 Core values and concepts
y ,
John Wiley & Sons, 2007
9 Shared values
9 Quality statements, 7 steps to strategic planning
9 Communications
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Hyderabad Campus
¾ Who is the customer?
¾ Why Customer satisfaction?
Why Customer satisfaction?
¾ What is customer satisfaction?
¾ Customer perceptions of Quality
¾ Customer feedback and feedback methods
¾ Service Quality
Service Quality
¾ Customer requirements
Chapter 3: Customer Satisfaction ¾ Voice of the customer
¾ Customer Retention
A Quote on Customer! Why Customer satisfaction?
“A customer is the most important visitor on our ¾ Customer is the Boss or ‘King’
¾ Customer dictates
Customer dictates the market trends and direction
the market trends and direction
premises, he is not dependent on us. We are
¾ Customer not only has needs to be supplied( basic
dependent on him. He is not an interruption in our performance functions) but also he ‘wants what he
wants!’ (additional features satisfy him and influence
work. He is the purpose of it. He is not an outsider in
his purchase decision)
our business. He is part
p of it. We are not doing him a
g ¾ Hence the Suppliers and Manufacturers have to
Hence the Suppliers and Manufacturers have to
favor by serving him. He is doing us a favor by giving us closely follow at the heel of the customer.
an opportunity to do so.” ‐ M. K. Gandhi
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Customer Satisfaction Model of Customer

Organizational Diagram Satisfaction
CUSTOMERS
Front-line Staff Customer needs
Functional
Department
Staff
Sr.
Mgrs Company
CEO Product/Service
offer
What is customer satisfaction? Customer types
¾ Is it due to Product quality? ¾ External and Internal customers

¾ External
External – current, prospective and lost customers
current prospective and lost customers
¾ Is it due to pricing? ¾ Internal – Every person in a process is a customer of
¾ Is it due to good customer service ? the previous operation.(applies to design,
manufacturing, sales, supplies etc.) [Each worker
¾ Is it due to company reputation? should see that the quality meets expectations of the
p pp
next person in the supplier‐to‐customer chain] ]
¾ Is it something more?
¾ TQM is commitment to customer‐focus ‐ internal and
external customers.
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Internal customer/Supplier
Customer/supplier chain relationships
¾ Questions asked by people to their internal customers
? What do you need from me?
What do you need from me?
? What do you do with my output?
Inputs from Outputs to ? Are there any gaps between what you need and
Internal
external customers
external what you get?
customers customers
¾ Good team‐work and inter‐departmental harmony is
req ired
required.
¾ Leaders lead the role in supervising the internal
customer‐supplier chain.
TQM and customer quality Customer perceptions of

percepts Quality (ASQ survey)
¾ TQM is quality of management but not management ¾ Performance: “Fitness for use”
of quality – there is no full stop and no break in the
chain! ¾ Features:
Features: Secondary characteristics
Secondary characteristics
¾ Continuous process (quality) improvement is all its ¾ Service : A method by which an organization gives the
about. Why? costumer – an added value.
¾ One important reason is the customer quality level is ¾ Warranty: Represents an organization's public promise of
not static and his expectations keep changing and his a quality product backed up by a guarantee of customer
demands too! satisfaction.
¾ Also plant process dynamics‐
Al l t d i how to achieve
h t hi ¾ Price: Efforts to be made in identifying, verifying and
maximum efficiency , optimizing cost and
performance in the process operations, minimizing updating the costumer's perception of value
waste etc. ¾ Reputation: Customer’s go with brand name. It costs five
times as much to win a new customer.
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Customer feedback Customer feedback methods

¾ Customer feedback has to be continuously sought and ¾ Comment cards enclosed with warranty card when
monitored ‐ not one‐time only!( Pro‐active! Complaints product is purchased.
are a reactive method of finding out there is a problem) ¾ Customer survey and questionnaire
¾ It enables for the organization to ¾ Customer visits
9Discover customer dissatisfaction ¾ Customer focus groups
9Discover relative priorities of quality ¾ Quarterly reports
9Identify customer needs ¾ Toll
Toll‐free
free phones
phones
9Performance comparison with competitors ¾ e‐mail, Internet news groups, discussion forums
9Determine opportunities' for improvement ¾ Employee feedback
¾ Mass customization.
Customers-- Handle with care!

Customers Customers Requirements
¾ Employers don’t pay wages but it is the customer who ¾ Needs
¾ Needs are essential for life, to maintain certain standards, or
pays the wages!
th ! essential for products and services, to full fill the purpose for
¾ So take good care of your customers. which they have been acquired. For example, a car needs a
steering wheel and the wheel needs to withstand the loads
¾ Customer‐care centers not just profit‐centers! put upon it but it does not need to be clad in leather and hand
stitched for it to full fill its purpose.
¾ The entire organization must in effect revolve around the ¾ To overcome the diversity of needs, customers define
customer – whether the customer is being well served requirements, often selecting existing products because they
appear to satisfy the need but might not have been specifically
and if he is really pleased, contented and satisfied with designed to do so.
the service you have to offer.
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Customers Requirements Customers Requirements

¾ Wants ¾ Expectations
¾ By focusing on benefits resulting from products and services, ¾ Expectations are implied needs or requirements. They have not
needs can be converted into wants such that a need for food been requested because we take them for granted — we
may be converted into a want for a particular brand of regard them to be understood within our particular society as
chocolate. Sometimes the want is not essential but the higher the accepted norm. They may be things to which we are
up the hierarchy of needs we go, the more a want becomes accustomed, based on fashion, style, trends or previous
essential to maintain our social standing, esteem or to realize experience.
our personal goals. ¾ For instance one expects sales staff to be polite and courteous,
¾ In growing their business, organizations create a demand for electronic products to be safe and reliable, policemen to be
their products and services but far from the demand arising honest, coffee and soup to be hot etc.
from a want that is essential to maintain our social standing, it
is based on an image created for us by media advertising.

¾ Expectations ¾ Requirements
¾ One would like businessmen to be honest but in some markets ¾ Requirements are stated needs, expectations and wants but
we have come to expect them to be unethical, corruptible and often we don't fully realize what we need until after we have
dishonest. As expectations are also born out of experience, stated our requirement.
after frequent poor service from a train operator, our ¾ For example, now that we own a mobile telephone we
expectations are that the next time we use that train operator discover we really need hands‐free operation when using the
we will once again be disappointed. phone while driving a vehicle.
¾ We would therefore be delighted if, through some well‐ ¾ Requirements may also go beyond needs and include
equ e e ts ay a so go beyo d eeds a d c ude
focused quality initiative, the train operator exceeded our characteristics that are nice to have but not essential.
expectations on our next journey. ¾ Anything can be expressed as a requirement whether or not it
is essential or whether the circumstances it aims to prevent
might ever occur or the standards invoked might apply.
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¾ Requirements are often an imprecise expression of needs, wants and ¾ Intent
expectations. Some customers believe that they have to define every ¾ Behind every want, need, requirement, expectation or desire
characteristic otherwise there is a chance that the product or service
h t i ti th i th i h th t th d t i
will be an intent. What the customer is trying to accomplish as
will be unsatisfactory.
a result, the reason for the requirement. In many cases
¾ Desires and Preferences
clarifying the intent is not necessary because the requirements
¾ Customers express their requirements but, these may go beyond what express what amounts to common sense or industry practice
is essential and may include mandatory regulations as well as things
and norms. But sometimes requirements are expressed in
that are nice to have — what we can refer to as desires. Sometimes a
terms that clarify the intent. A good example can be taken
customer will distinguish between those characteristics that are
customer will distinguish between those characteristics that are
essential and those that are desirable by using the word ‘should’. from ISO 9001 where in Clause 8.3 it states:
Desired might also be expressed as preferences, e.g., a customer ¾ "The organization shall ensure that product which does not
might have a preference for milk in glass bottles rather than plastic conform to product requirements is identified and controlled
bottles because of the perception that glass is more environmentally to prevent its unintended use or delivery"
friendly than plastic.
Customers Requirements Is the Customer Always Right?

Right?
¾ Demands and Constraints ¾ While customer requirements may be translated into product
¾ Requirements become demands at the point when they are requirements and constraints, the other stakeholder
requirements are only translated into constraints because if
requirements are only translated into constraints because if
imposed on an organization through contract, order, regulation the customer requirements were to be removed, there would
or statute. Until then they simply don't apply. be no activity upon which to apply the constraint.
¾ From the outside looking in, all demands imposed on the ¾ It might be argued that in theory the customer is always right
organization are requirements but from the inside looking out therefore even if the customer makes a demand that cannot
these requirements appear as two categories: one that be satisfied without compromising corporate values, the
addresses the objective of the required product or service organization has no option but to satisfy that demand.
which we can call product requirements and another that ¾ In reality, organizations can choose not to accept demands
addresses the conditions that impact the way in which the that compromise their values or the constraints of other
required product or service is produced and provided which stakeholders particularly those concerning the environment,
we can call constraints. health, safety and national security.
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Service Quality Service Quality

Organization Customer Care
¾ Identify each market segment
Id tif h k t t ¾ Meet the customer
Meet the customer’ss expectations
expectations
¾ Get the customer’s point of view
¾ Write down the requirements
¾ Deliver what is promised
¾ Communicate the requirements ¾ Make the customer feel valued
¾ Organize processes ¾ Respond to all complaints
¾ Over‐respond to the customer
¾ Organize physical spaces
¾ Provide a clean and comfortable customer reception
area.
Service Quality Service Quality

Communication Front‐line people
¾ Optimize the trade
Optimize the trade‐off
off between time and personal attention
between time and personal attention ¾ Hire people who like people
Hi l h lik l
¾ Minimize the number of contact points
¾ Challenge them to develop better methods
¾ Provide pleasant, knowledgeable and enthusiastic employees
¾ Write documents in customer‐friendly language. ¾ Give them the authority to solve problems
Leadership ¾ Serve them as internal customers
¾ Lead by example
¾ Be sure they are adequately trained
¾ Listen to the front‐line people
¾ Recognize and reward performance
¾ Strive for continuous process improvement
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Customer Care Customer Care

¾ Keep promises to customers ¾ Maintain a neat and clean appearance of self and work‐
¾ Return customer calls promptly
Return customer calls promptly place, at all times
¾ Allot staff to handle customer problems
¾ Review and implement customer feedback and
¾ Treat customers with courtesy, respect and
suggestions into current procedures when needed
professionalism always
¾ Evaluate customer satisfaction regularly
g y ¾ Training and education to enhance job performance and
¾ Search for customer‐related improvements continuously commitment to customer care
¾ Deliver Products/Service promptly and efficiently ¾ Treat every customer as we would treat ourselves
¾ Give every customer complete and personal attention.
Kano Model-
Model-conceptualizes
customer requirements Voice of the customer
Customer How the voice of customer is heard? Who is the customer?

satisfied Customer reports
Customer reports
Exciters- Internal
Design reviews External
Quickly expected Easily identified Survey
Innovations Interviews
Typically performance related
Focus groups
Site visits Voice of
the
Requirement Requirement Clarify exactly customer
For listening
Not satisfied satisfied Affinity diagrams
Unspoken
Unspoken- QFD For evaluating
For evaluating
but expected Data control
requirements IPD team meetings
Spoken and Known only to experienced
expected Customer designers or discovered late
requirements How is the voice of the customer evaluated? Who has what responsibility ?
Not satisfied
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Customer Retention Customer Retention
¾ Customer satisfaction should lead to customer loyalty and ¾ It is important to win support from the media as bad
p
press can destroy reputations.
y p
customer retention.
¾ It is important to keep co‐workers on your side as
¾ Important that the customer repeatedly comes back for their cooperation might be essential for your success.
repeat orders/purchase new products besides others. ¾ It is important not to alienate other managers as they
might limit the availability of resources you need.
¾ Firm orders received or cash payments registered , market
¾ It is important to build rapport with Trade
It is important to build rapport with Trade
share, customer referrals and customer retention are an Associations, Unions and other organizations from
indication of customer success and penetration.
which you might need help.
¾ High employee retention impacts high customer retention
Recap..
9 Who is the customer?
9 Why customer satisfaction?
Why customer satisfaction?
9 What is customer satisfaction?
9 Customer perceptions of quality
9 Customer feedback and feedback methods
9 Service quality
Service quality
9 Customer requirements
9 Voice of the customer
9 Customer retention
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BITS Pilani Topics to be covered

Hyderabad Campus
¾ Introduction
¾ Motivation
¾ Employee surveys
¾ Empowerment
¾ Teams
¾ Recognition and reward
¾ Gain sharing
Gain sharing
¾ Performance Appraisal
Chapter 4: Employee Involvement ¾ Unions and Employee Involvement
¾ Employee Surveys
Introduction Introduction – contd..

¾ Employee involvement is one approach to improve quality – Once a given level is satisfied, it no longer motivate a
and productivity person
¾ Its use is credited for contributing to the success enjoyed
It i dit d f t ib ti t th j d
by the Japanese in market – Survival: Food, clothing and shelter – provided by a job
¾ Motivation – Security: means a safe place to work, job security
– Knowledge of motivation helps us to understand the – Social: relate to our need to belong, because we are
utilization of employee involvement to achieve process social animals, i.e. cutting someone out of the group
improvement
and isolation
¾ Maslow
Maslow’ss Hierarchy of needs
Hierarchy of needs
– Motivation could be explained in terms of hierarchy of – Esteem: relates to pride and self‐worth
needs that have five levels • Everyone regardless of position or type of job wants
– Levels are survival, security, social, esteem and self to be recognized as a person of value to the
actualization organization
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Introduction – contd.. Introduction – contd..

¾ Maslow’s Hierarchy of needs – Bad feelings are associated with salary, fringe benefits,
– Self actualization: individuals must be given the
Se actua at o d dua s ust be g e t e working condition, organization policy, technical
opportunity to go as far as their abilities to take them supervision and these are called dissatisfaction or
• Promotion in job hygiene factors, which implies prevention
¾ Hertzberg two factor theory ¾ What employee wants? – Good pay!!!
– Extended the general work of Maslow by using empirical – But survey shows that interesting work, appreciation,
research involvement, job security, good pay, promotion /
growth, good working condition, loyalty to employees,
th d ki diti l lt t l
– He found that people are motivated by recognition, help with personal problem, tactful discipline
responsibility, achievement, advancement and the work
itself and these factors are called “labelled motivators”
Achieving a motivated workforce Achieving a motivated workforce

¾ Managers at all levels cannot cause employee to motivate • Manager can help employee in directing his efforts
but they must create a environment and individuals to toward satisfying goal and well being, thus can
motivate themselves
motivate themselves
utilize their strengths
¾ Some concepts are:
– Know thyself – Establish a positive attitude
• Managers must understand their own strength, • Manager are responsible for generating attitudes
motivation and weakness that lead to positive action
• Obtained by peers and employees appraising the • Feedback should be positive
managers performance
managers performance
• Managers success depends on employee achieving • Respect and sensitivity towards others is essential
their goals • Hearing ideas and suggestion and implementing or
– Know your employees asking about job related problems etc will create a
• Manager must know employee interest and dream conducive atmosphere
and help to achieve them
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Achieving a motivated workforce Achieving a motivated workforce

– Share the goals • Job rotation permits employees to switch jobs
• A motivated workforce needs well defined goals
ot ated o o ce eeds e de ed goa s within a work unit for prescribed period of time
that address both individual and organization needs (removes boredom and provides knowledge of the
entire process and sub process)
– Monitor progress
• Job enlargement combines tasks horizontally; so
• Process of goal setting should have a roadmap with that employee perform a no. of job sequentially
periodic milestones and individual assignments
• Job enrichment combines task vertically by adding
• Performance should be reviewed periodically managerial elements like planning scheduling and
managerial elements like planning, scheduling and
– Developing interesting work inspection (employee gets sense of autonomy and
• Manager should alter the employee assignment by control)
job rotation, job enlargement or job enrichment – Communicate effectively
– Celebrate success: Recognizing employee achievement
Employee surveys Employee surveys–

surveys– contd..
¾ When managers want to learn about their employees, ¾ If entire population is not surveyed, then sampling
they must listen to voice of employees procedure should be used
¾ Best way is to conduct survey ¾ Survey is pilot tested, revised as needed
¾ Employee survey help managers assess the current state ¾ Administering the survey – employee are communicated
of employee reaction, measure the effectiveness of for the purpose, schedule of events expectation etc.
program implementation, identify needed improvements, ¾ Survey should be done by a outside group
increase communication effectiveness ¾ Written comments should be typed with names disguised
¾ Survey instrument is developed by in‐house or external ¾ Employees are given time to complete the questionnaire
expertise during normal work hours
¾ Identifies section, location, sex, age, seniority, work unit ¾ Results are compiled and analysed and report is prepared
are absolutely essential for quality council
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Employee surveys–
surveys– contd.. Empowerment
¾ Report is shared with entire organization for a mechanism ¾ Organization that empower employees are part of their
of input of reaction and suggestions total management effort and twice as likely as other firms
¾ Determine area of improvement, identify root causes and to report significant product or service improvement
take corrective action ¾ Empowerment – invest people with authority
¾ They help in receiving feed back ¾ Purpose is to tap the enormous reservoir of creativity and
¾ Employee involvement is a way of life and crucial to TQM potential contribution that lies within every worker at all
¾ Resistance to this change will be there and it has to slowly levels
change ¾ Empowerment is an environment in which people have
¾ People do not resist change, but resist being changed the ability, the confidence and the commitment to take
responsibility and ownership to improve the process and
¾ Resistance arises, when their comfort zone is attacked initiate the necessary steps to satisfy customer
requirements to achieve organizational values and goals
Empowerment – contd.. Empowerment – contd..

¾ To create empowered environment, three conditions are • System need to change to reinforce and motivate
necessary individual and group accomplishments
– Everyone must understand the need for change • Individual and group must understand the freedom
• People fear change to act and sometimes to fail is not only okay, but
• Effective communication of why organization encouraged
needs to change is critical to success – The organization must enable its employees
• People needs to understand what role they play in • Enablement means providing information,
change process education and skill
¾ Three conditions are necessary – contd. • Asking people to change work habits, without
– The system need to change for new paradigm providing them the tools of change only increases
the resistance to the change process
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Teams Teams
¾ Employee involvement is optimized by use of teams and it ¾ Why team work?
should be empowered – Because many heads are more knowledgeable than
¾ Team is defined as a group of people working together to
T i d fi d f l ki t th t one
achieve common objectives or goals – Many processes are so complex that one person
¾ Teamwork is the cumulative action of the team during cannot be knowledgeable concerning the entire
which each member subordinates his individual interests process
and opinion to fulfil the objectives of the group – Interaction with in the team produces results that
¾ Objective has to be clearly defined, have milestones set, exceed contribution of each member
p y pp
have resources provided and use a systematic approach – Each member develop a rapport with each other and
Each member develop a rapport with each other and
¾ Members of the team focus on how they relate to each hence allow them to do a better job
other, listen to suggestion of others, build on previous – It provides a vehicle for improved communication
information and use conflict creatively, maintain
discipline, build team spirit and motivate each other
Types of teams Types of teams – contd..

¾ Process improvement team ¾ Cross functional team
– Represent each operation
ep ese t eac ope at o o of the process
t e p ocess o
or sub
sub p
process
ocess – When the targeted process improvement includes
e t e ta geted p ocess p o e e t c udes
– Scope of team activity is limited to work unit many work units of the entire organization, a cross
– Members of the team about 6 to 10, will come from function team may be appropriate
the work unit and depending on the location of sub – Members of the team about 6 to 10 with
process, an external or internal supplier / customer will representative from different functional areas like
be in team Engg. Quality, operation etc.
– Additional expertise from other work areas may be – It can include customer and supplier (improving a
added on permanent or temporary basis product)
– Life cycle of team is temporary and gets dismantled – This team is also temporary
once the objective is met
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Types of teams – contd.. Types of teams – contd..

¾ Natural work team ¾ Self directed / self managed work team
– This type of team is not voluntary
s type o tea s ot o u ta y – Extension of above team without supervisor
– It is composed of all members of the work unit – This is the epitome of empowered organization, they
not only work, but manage it
– It differs from quality circle
– A team coordinator act as liaison with management
• Managers are part of the team and this job may be rotated periodically
• Project are selected by team – The team meet daily to plan their activities and take
• Same employee may not work for variety of reason,
Same employee may not work for variety of reason decisions
but prepare to help employees to become – Additional responsibility include hiring / dismissal,
comfortable in the team or assign him to a unit, customer or supplier relation, training etc and they
which needs just individual work have access to business information to plan control and
improve processes
Characteristics of successful team Characteristics of successful team

¾ Sponsor ¾ Team composition
– To have liaison with quality council – Size of the team rarely exceed 10 people, as big the
– Sponsor should be member of quality council, thus team, difficult to maintain commitment,
d ff l
providing organizational support interpersonal aspect and control
¾ Team charter – Team should be diverse and have members with
– Document that defines the team’s mission, different skills and expertise
boundaries, authority, duties, resources used, – Internal and external supplier / customer can also
problem handled etc. be included
– Identifies the members, leader, recorder, ¾ Training
timekeeper, roles etc. – Training in problem solving techniques, team
– Sponsor and the team negotiate the charter dynamics and communication skills
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¾ Ground rules ¾ Well defined decision procedures
– Must develop its rule of operation and conduct – Effective, acceptable and timely decision has to be
– Rules should be reviewed and revised made
d
¾ Clear objectives ¾ Resources
– Criteria for success should be agreed on with – Not only funding and employee time is important,
management but also information
¾ Accountability ¾ Trust
– Team is accountable to perform
Team is accountable to perform – Management must trust the team that they will
Management must trust the team that they will
– Periodic status reports to be given to quality perform the task effectively
council – Further trust should be there between members
– Should review its performance to find team’s
weakness and makes improvement

¾ Effective problem solving ¾ Balanced participation
– No quick fix method should be adopted
q p – All members should have their opinion, knowledge
p , g
¾ Open communication and encourage others
– Members should actively listen without – No domination or pulling other legs
interrupting other members ¾ Cohesiveness
– Speak with clarity and directness – Members are comfortable working with each other
– Ask questions
q and act as a single unit
¾ Appropriate leadership
– All team need leadership, whether determined
from the quality council or someone emerges from
the team
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Role of members in team Role of members in team – contd..

¾ Team are selected by quality council. It consists of – Orchestrates the implementation of changes
team members, leaders, facilitator, recorder, time required by the team with in the organization
keeper constraints and team boundaries
constraints and team boundaries
¾ Team leaders – Ensures team decision are made by consensus
– Selected by quality council / team – Prepares the agenda, time, date and location and
– Ensure smooth and effective operation of the ensure necessary resources are available
team, handling and assigning jobs, record keeping, ¾ Facilitator (Not a member of a team)
overseeing preparation of reports, presentation – A neutral assistant and do not get involved in the
– Ensure that all members participate during meeting or evaluation of team’s ideas
meeting, prevent other members from dominating – Focus on how decisions are made and provides
etc. feedback
– Serves as a contact point for team and quality – Supports the leader in facilitating team during
council initial stages
Role of members in team – contd.. Role of members in team – contd..

¾ Recorder ¾ Team member
– Selected by team leader and may be rotated on a – Selected by team leader, quality council
periodic
i di basis
b i – Contributes best by participation in meetings, sharing
– Documents the main idea of teams, issues raised and knowledge, idea, expertise, information etc.
decision made, action items etc. – Respect other people’s contribution, does not criticize,
– Presents the documents in front of the team and complain or condemn
provides minutes of meeting – Works for consensus on decision and is prepared to
– Participates as a team member negotiate
¾ Time keeper
Time keeper – Supports the decision of team and trust, supports and
Supports the decision of team and trust supports and
– Selected by the team leader and rotated on periodic has genuine concern for the other members
basis – Carries out assignments between meetings like
– Monitors the time to ensure team maintains schedule collecting data, observing the process, writing reports
– Participates as team member etc.
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Decision making methods Decision making methods

¾ Five type of decision as well as no decision occur during ¾ Handclasp decision
the team process – When one person proposes decision and other agrees,
¾ No
N decision
d ii we have a handclasp decision
h h d l d ii
– Occasionally team will discuss a subject extensively and – If two parties are the most knowledgeable concerning
not arrive at a decision that particular matter, then this decision can be effective
– This is unfortunate because a lot of time will be wasted ¾ Minority rule decision
and team ends up feeling badly – When a few team members dominate the discussion
¾ Unilateral decision and impose their will on the majority, this type of
decision occurs
decision occurs
– It is made by one person – leader
– Members abdicate their responsibility and go along with
– It saves time the decision in order to avoid conflict and be
– Assumption is that leader have necessary information cooperative
and team will not react negatively and if it reacts, it – Provides low enthusiasm for implementation and future
affects the success involvement
Decision making methods – contd.. Effective team meetings

¾ Majority rule decision ¾ If participants know their role and utilize the
– This method is widely used when most of the team characteristics of successful teams, probability of effective
agrees team meetings is high
– This is the best alternative
¾ Tips
¾ Consensus
– This method requires sufficient discussion for all – Meeting should be regularly scheduled, usually once a
members to feel that they can support the decision week
– It takes more time – It should be of fixed time limit and starts on time
– Probability of successful implementation is enhanced
P b bilit f f li l t ti i h d – Proper notification ahead of time with location, time
– When there is effective listening by team members, and objective
this method fosters creativity
¾ It is up to team leader to select the appropriate method – An agenda should be developed and should be sent to
participants prior to meeting
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Effective team meetings Stages of team development

– Agenda should usually list previous meeting feedback, ¾ Organization can dramatically improve team performance
agenda review, agenda items, action items etc. by understanding and recognizing the stages in the life
cycle of teams
cycle of teams
– Each agenda item include process like brainstorming, ¾ It helps management understand team performance and
affinity diagram, discussion and so forth, the avoid setting unrealistic objectives that limits a team’s
presenters, time guidelines and all in a logical sequence success
¾ Four stages of teams development: forming, storming,
norming and performing
¾ Formingg
– It is the beginning stage, where members became
aware of the boundaries of acceptable behaviour
– Stages of transition from individual to member status
and of testing leader’s guidance
– Considerable time is spent in organizing and training
Stages of team development Stages of team development

– Team accomplish little in regard to its objectives – Emotional conflict is reduced as cooperation, cohesion
¾ Storming and constructive criticism becomes the normal behaviour
– Most difficult stage, as members realize the amount of – Significant progress occurs
Significant progress occurs
work ahead ¾ Performing
– There is a tendency to panic – Stage where team members have settled their
– Members rely almost solely on their personal and relationship and expectation
professional experience and resist working with others – Better understand the project and begin performing by
in teams diagnosing, solving problems and implementing changes
– Great deal of conflict and leader need to be patient
Great deal of conflict and leader need to be patient ¾ Adjourning
j g
and flexible in working with the team – A stage that is reserved for temporary teams
¾ Norming – Team need to evaluate its performance and determine
lessons learned
– Stage where members begin to work together
– Information is transferred by members, when they
participate on future teams
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10 common problems and their solution 10 common problems and their solution
¾ One way to deal with group problem is to talk about them
as soon as it occur – Reinforce the ground rules, talk to person offline and
¾ Floundering
Fl d i ask for cooperation.
kf ti
– When the team has trouble starting or ending a project – Enforce the importance of data and problem solving
or during different stage of a product method
– To look critically at improvement plan, review the ¾ Dominating participants
mission statement, discuss the cause of hold up and – Like to hear themselves talk, use overlong anecdotes
have each member listing down reasons and dominate
¾ Overbearing participants
Overbearing participants – Members get discouraged and find excuses for missing
Members get discouraged and find excuses for missing
– Have an unusual amount of influence and they have a meetings
position of authority or expertise – Structure discussion on key issues for participation; talk
– Team need their expertise, but becomes problem when to offending person offline and leader may interfere
they discourage discussion on their expertise and and make other speak
discount other members ideas
¾ Reluctant participants ¾ Rush to accomplish
– Feel shy or unsure of themselves and they must be – Common to team pushed by one or more members,
encouraged to contribute who are impatient for results
– Problem develops, when there are no built‐in activities – Remind members that improvement do not come
that encourage introverts to participate and introverts overnight
to listen – Remind them of ground rules called problem solving
– Dividing the task to individual assignments and leader method
acting as gate keeper to provoke them
acting as gate keeper to provoke them ¾ Attribution
Att ib ti
¾ Unquestioned acceptance of opinion or facts – Activities of guessing at a person’s motives when we
– Occurs when members exert personal beliefs with such disagree or don’t understand his/her opinion or
behaviour
confidence that other members think they are facts – Question whether this opinion is based on data and
– Request data and follow problem solving method importance of problem solving method
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¾ Discounts and ‘plops’ ¾ Feuding team members
– Arise when members fail to give credit to another's – Can distrust the entire team with their disagreements
opinion or no one respond to a statement that plops
opinion or no one respond to a statement that plops – Feuds have to be dealt outside the team and discuss
F d h t b d lt t id th t d di
– Reinforce active listening as a team behaviour offline
– Support the discounted member and talk offline with
member who often discounts / ignore
¾ Wanderlust
– Digression and tangents happen when members lose
track of meeting purpose and want to avoid a sensitive
track of meeting purpose and want to avoid a sensitive
topic
– Use written agenda with time estimates and write
meeting topic on flip chart
Common barriers to team progress Common barriers to team progress

¾ Insufficient training ¾ Lack of planning
– Team cannot perform, unless they are trained in – Lack of common direction or alignment on the use of
problem solving techniques, group dynamics,
bl l i t h i d i collaborative efforts; Internal competition, redundancy
ll b ti ff t I t l titi d d
communication skills get into effectiveness
¾ Incompatible rewards and recognition ¾ Lack of management support
– Organization make little effort to reward team – Management must provide resources for the teams
performance ¾ Access to information system
– Strong focus is on individual rewards and it is difficult – Team need access to organization information like
for individuals to buy into team concept
for individuals to buy into team concept business performance financial data etc
business performance, financial data etc.
– Performance appraisal do not accept input from peers ¾ Lack of union support
or team members – Organization needs union support for the team to be
¾ 1st line supervisor resistance successful
– Supervisor are reluctant to give up power and
concerned about job security
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Training Training
¾ Essential for an effective team ¾ 3rd step is to adapt the program. Does everyone feels
¾ Quality council should take active role in establishing a part of what is taking place?
the training program
h ¾ 4th step is adapt to what has been agreed
d h h b d upon?
¾ Training must be experimental because trainee retains ¾ Training must be in group dynamics, communication,
20% of what they hear and 80% of what they do customer relationship, problem solving, safety and
¾ When possible, role playing, case studies should be technical aspect etc.
used ¾ Team leader plays a major role, he must be trained in
¾ A clear picture of objective and how each member human relations, motivation, conflict resolution etc.
will benefit should be told ¾ Consultants are needed for training
¾ 1st step is to make everyone aware what is it about? –
thoughts suggestion, feedback should be gathered
¾ 2nd step is get acceptance, the trainee should feel that
it is value to them
Suggestion system Suggestion system

¾ Designed to provide the individual with the opportunity – Respond quickly to suggestion and within a specific
to be involved, by contributing to the organization period of time; 3 possible type of responses:
¾ Once foundation for TQM has been established, a
O f d ti f TQM h b t bli h d acceptance, rejection or referred to a committee
suggestion system can generate effectively
¾ Team must make it for employees to suggest – If accepted time frame of implementation should be
improvements, review it properly and implement them mentioned and if rejected, reason for the same to be
¾ Five ground rules for stimulating employee given and if referred, evaluation time has to be stated
– Be progressive by regularly asking your employees to – Reward the idea with published recognition so that all
give suggestion and just keeping suggestion box is not
give suggestion and just keeping suggestion box is not will know
ill k
sufficient
– Remove fear by focusing on the process and not on the
person
– Simplify the process, so that it is easy to participate.
Reduce paper work, reviews and procedures
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Recognition and Reward Recognition and Reward – contd..

¾ Recognition is a form of employee motivation, in which the ¾ It should be fully understood by the employee and
organization acknowledge the contribution of an individual reviewed periodically to improve the system as
or team has made to the success of organization
h d h f i i organization as well as employee priority changes
¾ Acknowledgement is verbal or by written praise like ¾ Employee should be involved with manager in the
certificates
nomination and selection of the individuals and teams
¾ Reward is something tangible – a cash award, a dinner for
two ¾ Policies and procedures must be fairly applied throughout
¾ Both go together to for a system of letting people know the organization
that they are valuable organization ¾ System should be structured to avoid ranking individuals
¾ Employee should be involved in the planning and ¾ Recognition has to be valid, genuine and meaningful for
implementation of such program and should be done by the receiver and giver and should not be used to
cross functional team. manipulate people reward
Recognition and Reward – contd.. Recognition and Reward – contd..

¾ While reward may be delayed until an appropriate time, ¾ In addition to certificate, recognition can be made by
recognition should be timely basis publishing pictures on bulletin boards, article in
newsletter etc.
etc
¾ Reward should be appropriate to the improvement level, ¾ Individual rewards: Parking space, dinner, gift, a trip etc.
greater the improvement, greater the reward (it should ¾ Group rewards: outing such as a ball game, movies, group
not be a “purse” all time) lunch or dinner etc.
¾ It is also desirable for employee to select the type of ¾ Cash awards are effective motivators for individual and
reward from various alternatives team
¾ Effective system
Effective system
¾ People likely to be recognized either as a team or
– Serves as a continual reminder that the organization
individually regards quality and productivity as important
¾ A person feeling of achievement, value to the – Offer the organization a visible technique to thank high
organization, knowing the organization cares and having achievers for outstanding performance
peer recognition may be important than
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Recognition and Reward – contd.. Gainsharing

– Provides employee a specific goal to work toward, it ¾ It is a financial reward and recognition system that results
motivates them to improve the process from improved organization performance
– Boosts morale in work environment by creating a
B t l i k i tb ti
healthy sense of competition among individuals ¾ It is different from profit sharing in which the stock holder
share a portion of the year end profits with salaried and
hourly employees
¾ Gain sharing is based on philosophy that people and
teamwork are key to success and it is a measure of
organization productivity and a method to share
i ti d ti it d th d t h
productivity gain
¾ One approach is based on labour cost and potential sales
income and is based on four week periods and calculations
are made based on weekly basis
Gainsharing Performance appraisal

¾ At the end of week, team performance is calculated based ¾ Purpose is to improve performance
on potential sales income from weeks production – ¾ Lets employee know, how they are performing and provide a
rejection – outsourcing costs basis for promotion, salary increase etc.
¾ Financial data shows that labour cost are a certain % of ¾ There should be good relationship between employee and
sales income, and this value multiplied by income gives the appraiser
team goal ¾ Employee should be aware of the appraisal process, what is
¾ Team cost is the sum of all labour costs for the week evaluated and how often?
i l di f i
including fringe benefits
b fit ¾ Appraisal should point out strength
Appraisal should point out strength and weakness
and weakness and how his
and how his
performance can be improved
¾ Gain or loss is the difference between team cost and team
¾ Performance appraisal may be for individual or team
goal. Organization may give 50% or 30% to 100% of the gain
and is divided equally among people. ¾ An employee should always be given the opportunity to
comment on the evaluation including protesting
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Performance appraisal Performance appraisal

¾ Performance must be based on standards that are ¾ An unfair evaluation could cost the organization a
developed and agreed upon by both appraiser and valuable employee
employee ¾ Disadvantages
¾ It should change with respect to changes happening in – Appraisal nourish short term performance and destroy
organization long term planning
¾ Performance appraisals should be viewed as a positive – Individual appraisal destroy team work; team are to
become cohesive unit of all for one and one for all, but
way to get employee involved then individual ranking spoils it
¾ Every effort should be made to avoid errors in – Assumption that an individual is responsible for all
performance evaluation results
¾ Culture, ethics, education level and predetermined – Approach are based on subjectivity and immeasurable
opinion affects evaluation
Some improvement in Appraisal.. Some improvement in Appraisal..

¾ Use rating scales that have few rating categories ¾ Include indexes of external customer satisfaction in
¾ Require work team or group evaluation that are at least
Require work team or group evaluation that are at least the appraisal process
the appraisal process
equal in emphasis compared to individual focused
¾ Use peer and subordinate feedback as an index of
evaluation
internal customer satisfaction
¾ Requires more frequent performance reviews where such
reviews have a dominant emphasis on future performance ¾ Include evaluation for process improvement in
planning addition to results
addition to results
¾ Promotion decisions should be made by an independent
administrative process that draws on current job
information and potential for the new job
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Unions and employee involvement Unions and employee involvement

¾ Unions support quality improvement program, but ¾ Management must recognize and respect the union role in
express concern regarding management exercising too employee involvement
much control over employees ¾ 2 ways in which union and management have chosen to
2 i hi h i d th h t
deal with implementation of employee involvement
¾ Union representative must be involved in any program 9 Give union a membership in quality council and have them
involving employees participate in planning, implementation and evaluation of
entire effort
¾ Team should not discuss wages, rate of pay, hours of 9 Other method is traditional bargaining of the impact and
employment etc and will affect team’s objective implementation action affecting those in improvement team
¾ Desire for unilateral power must be changed to shared 9 In case 1, union leadership run the risk of criticism from other
I 1 i l d hi h ik f ii i f h
members that he is working too closely with management
power for the benefit of employees and organization
9 Choosing the method depend on background and history of
¾ A joint process determining how to beat competition is labour relations
the only sensible solution 9 But leadership or organization will seek early involvement of
union
Benefits from employee involvement Benefits from employee involvement

¾ Involving employees, empowering them and bringing – Employee are better able to spot and pinpoint areas of
them into decision making provides opportunities for improvement
continuous process improvement
continuous process improvement – Employee involvement reduces labour / management
E l i l t d l b / t
¾ Untapped ideas, innovation and creative thoughts of hassle by more effective communication and
employee can make the difference between success and cooperation
failure – It increases the morale by creating a feeling of
¾ Employee involvement improves quality and productivity belonging to the organization
because – Employee will accept change because they control the
– Employee make better decision using their expert
p y g p work environment
knowledge of their process – Employee has increased commitment to unit goals
– Employee are more likely to implement and support because they are involved
decision they had a part in making
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Hyderabad Campus
¾ Introduction
¾ Process
ocess
¾ The Juran’s Trilogy
¾ Improvement Strategies
¾ Types of problems
¾ The PDSA Cycle
¾ Problem solving method
Problem solving method
Chapter 5: Continuous Process ¾ Kaizen
Improvement ¾ Reengineering
¾ Six Sigma
Introduction Introduction
¾ We must strive to achieve perfection by continuously – Investigating activities that do not add value to the
improving the business and production processes product or service, with the aim of eliminating these
¾ We continuously improve by activities
– Viewing all work as a process, whether it is associated – Eliminating non conformities in all phases of everyone’s
with production or business activities work even if the increment of improvement is small
– Making all processes effective, efficient and adoptable – Using benchmarking to improve competitive advantage
– Anticipating changing customer needs – Incorporating lesson learned into future activities
– Controlling in process performance using measures such – Using technical tools like SPC, QFD, BM etc.
as scrap reduction, cycle time etc. ¾ An organization attempt to reach a single minded link
– Maintaining constructive dissatisfaction with the present between quality and work execution by evaluating its
level of performance constituent to “continuously analyse and improve their
own work, process and their work group”
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Process Input/output Process Model

¾ Refer to business or production activity of all organizations,
eg. purchasing, marketing etc.
¾ Input: Materials, Money, Information etc
I t M t i l M I f ti t
¾ Output: information, product / service
– Output of one process can be input to other
– Output are designed to achieve certain desirable
outcomes on customer satisfaction.
¾ Feedback
– Provided to improve the process
P id d t i th
¾ Process
– Interaction of some combination of people, material,
machine, method, measurement and environment to
produce an output, such as product / service
Process – contd.. Improvement

– In addition to input and output, a process must have value What are the basic ways to Improve?
added activities and repeatability. Must be effective, ¾ 5 basic ways to improve.
efficient, under control and adaptable. – Reduce resources
– It must adhere to certain conditions imposed by policies – Reduce errors
and contract or regulations – Meet or exceed expectation of downstream customers
– Make the process safer
¾ Customer defines the purpose of the organization and every
– Make the process more satisfying to the person doing
processes within it it
¾ Organization exists to serve customer, process improvements ¾ Reduce resources
must be defined in terms of increased customer satisfaction – Reports that are distributed to more people than
¾ Frequently the process will cross multiple organization necessary
boundaries and supporting sub processes will be owned by – Waste of copying, distribution time, material, user read
time etc.
individuals
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Improvement – contd.. The Juran’s Trilogy

¾ Reduce errors ¾ Explain the various components for Process improvement.
– Errors are sign of poor workmanship and require ¾33 components for process improvement –
co po e ts o p ocess p o e e t p planning,
a g,
reworkk
control and improvement
– Errors detected after printout – results in opening a
file, correction and printing again – Planning
¾ Meeting or exceed expectations of downstream • Marketing determines the external customer while
customers organizational personnel determine internal
– Better welding – less grinding required – appearance or customer
finish is good
finish is good
¾ Improvement of process by making it safer • A Pareto diagram can be used to determine the vital
– Less accidents and hence lost time, less compensation few customers
– Improve the process to increase the satisfaction of • Customer needs are identified, based on their own
individual performance words, but real needs may differ, but internal
– Ergonomically correct chair customer may not tell real needs due to fear
The Juran’s Trilogy – contd.. The Juran’s Trilogy – contd..

• Develop product / service that respond to customer – Control
needs, meet the needs of organization and supplier ¾ Used by operating forces to meet the product process
and optimize the cost of stakeholders requirement
• Developed by cross functional team and different ¾ Uses feedback and have the following steps
tools like QFD, DoE are used – Determine items/subjects to be controlled and their units
• Develop process to produce the product, which is of measure
also done by cross functional team – Set goals for the controls and determine what sensors
• Product will move from laboratory, prototype to need to be put in place to measure the product, process
dt b ti l t th d t
process environment and process validation is done or service.
– Measure actual performance, Compare actual
performance to goals, act on difference.
¾ Statistical process control (SPC) and 7 QC tools are used
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The Juran’s Trilogy – contd.. Improvement strategies

– Improvement ¾ Four strategies – Repair, Refinement, Renovation and
• Aims to attain levels of performance that are higher
s to atta e e s o pe o a ce t at a e g e Reinvention. Choosing the right strategy for right situation
than current levels is critical
• It is based on the effective infrastructure of quality ¾ Repair
council – Anything broken must be fixed, so that it functions as
• Quality council need to identify improvement designed
project and project teams – This level is temporary and it is a short term measure
• Necessary resources have to be provided – Second level occurs, when an individual or team
• Process improvement can be incremental or identifies and eliminates root causes of the problem and
breakthrough effects permanent solution
– Repair strategy does not make the process better than
original design
Improvement strategies Improvement strategies – contd..

¾ Refinement – Change is gradual, management may not recognize and
– Involves activities that continually improve the process,
o es act t es t at co t ua y p o e t e p ocess, reward the employees
that is not broken – It may not be properly documented or communicated
– Improvements happen, but in incremental basis but it – Organization program like suggestion system and
improves efficiency and effectiveness empowerment are combination of repair and
– It should be integral part of employees refinement
– It relies on doing things quicker, better, easier etc. ¾ Renovation
– Change may be gradual, no appearance of change – Strategy results in major or breakthrough
– Benefit is that, it produces little resistance from improvements
employees – Resulting output may appear different from original,
but it is basically the same
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Improvement strategies – contd.. Types of problems

– Innovation and technological advancements are key ¾ Types of problems are
factors in this approach Eg. Process of drilling – hand ¾ Compliance, Unstructured, Efficiency, Process Design and
Co p a ce, U st uctu ed, c e cy, ocess es g a d
and then shifted automatic Product design
– It is more costlier than repair and refinement ¾ The first three are performance problems, while last two
¾ Reinvention are design problems and require a new or improved
– Most demanding improvement strategy and it happens design
because current approach will never satisfy customer ¾ Compliance
requirement
i t – Occurs when a structured system having standardized
– Reinvention an reengineering beings by imagining inputs, processes, and output is performing
previous conditions does not exist unacceptably from users view point
– Helps to maintain competitive advantage, but used
sparingly because resistance to change is high
Types of problems – contd.. Types of problems – contd..

– They are identified by comparing with standard or by – Eg. Customer service worker adapt to the behaviour of
feedback from internal / external customer customer
– Major challenge is to find root cause and take corrective – Identification is done by negative customer feedback
action – Major challenge is to determine customer needs and find
– Diagnosis can be difficult as product are complex the cause of poor performance
– Standards cannot address all problems, because ¾ Efficiency
interaction of individually acceptable characteristics – Occurs when system is performing unacceptably from
¾ Unstructured
U t t d th i
the viewpoint of owners
i t f
– Resemble compliance problem, but they are not – End user is satisfied, but process is more costly than
specified by standards desired
– Absence of standards may be due to immaturity or to the – Identification of such problems occurs from
need of flexibility in system performance benchmarking or operator suggestion
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Types of problems – contd.. Types of problems – contd..

¾ Process design – A major focus is to prevent process and end user problem
– Involve
Involve development of new processes and revision of
development of new processes and revision of y y g
by relying on customer needs
existing processes – Design work is initiated due to poor product performance
– Many business and production processes are not well while problem solving is normally used.
designed and have become obsolete with advances in
¾ The PDSA cycle
technology
– Problem is identified by poor performance,
b h
benchmarking etc.
ki t
¾ Product design
– Involve development of new products and improvement
of existing product
PDSA cycle PDSA cycle – contd..

¾ Developed by Shewhart and this was called PDCA cycle ¾ In initial stages, quick results are obtained, as solution
¾ It was modified by Deming, which is called PDSA cycle
t as od ed by e g, c s ca ed S cyc e , g , y pp
are obvious, but in long term, systematic approach is
¾ Effective improvement technique needed to get better result
¾ Plan: What is to be done? ¾ They are several phases in PDSA cycle
¾ Do: Carry out the plan ¾ Phases are integrated and are dependent on previous
¾ Study: Did the plan work as intended? phases
¾ Act: Act on result by identifying what worked and what
Act: Act on result by identifying what worked and what ¾ Continuous improvement is the objective
Continuous improvement is the objective
planned
¾ Process improvement achieves greatest result when it
operates within framework of problem solving method
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PDSA cycle – contd.. PDSA Cycle – contd..

¾ Plan ¾ Plan: Identify the opportunity
– Identify the opportunity
de t y t e oppo tu ty – It consists of three parts
– Analyse the process • Identify the problem
– Develop optimal solution • Form the team, if it is not existing
• Define the scope
¾ Do
¾ Problem can be identified from
– Implement
– Pareto analysis of repetitive external alarm signals like
¾ Study fi ld f il
field failures, complaints, returns etc.
l i t t t
– Study the results – Pareto analysis of internal alarm signals like scrap,
¾ Act rework, sorting etc.
– Standardize the solution – Proposal from suggestion schemes, managers etc.
– Plan for future
PDSA Cycle – contd.. PDSA Cycle – contd..

– Data on performance of competitor – Will it contribute to attainment of goals?
– Comments from customer, supplier, journalist,
Co e ts o custo e , supp e , jou a st, – Can the problem be defined clearly using objective
Ca t e p ob e be de ed c ea y us g object e
government rules etc. measures
¾ Problem identified provide opportunity for improvement – Maximum benefit should be got, solving it with
¾ For a condition to qualify as a problem, it should satisfy minimum effort
three criteria ¾ Form a team
– Performance varies from established standard – Natural work group or cross functional and choosing it
– Deviation from the perception depends on problem
– Cause is unknown – Team leader is identified and team is selected and
¾ Prioritize the problem based on assigned the specific problems
– Is the problem important and why? – Goals and milestones are given
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– If it is repair or refinement, then individual can be used – Uses facts and is free from judgement and emphasize on
¾ Define the scope the impact of customer
– Failure in problem solving occurs due to poor definition of – It should also include authority, expected output, team
problem members, methods, resources etc.
– Criteria for good problem statement are ¾ Plan: Phase 2: Analyse the current process
• Describes the problem clearly as it currently exists and – Objective is to understand how it is currently performed
easily understood – Key activities are defining process boundaries, output
• States the effect – what is wrong, when it happened, and customers, input and suppliers, process flow,
where it is occurring and not who is responsible and materials needed, gathering data and identify root
why it is wrong causes
• Focuses on what is known and what is unknown and – Process flow diagram that translates complex work into
what needs to be done easily understood graphic description

– Target performance measures are defined. If something ¾ Collect available data and information
cannot be measured, it cannot be improved ¾ Data can be collected using check sheet, gauges etc.
¾ Data helps to ¾ Common item of data and information are
– Confirm whether a problem exists, enables team to work – Customer information like complaints, surveys
with facts, makes it possible to measure the criteria for – Design information like BOM, drawings, etc.
baseline, enables team to check effectiveness of solution – Process information like routing, equipment, component
– If new ones are needed etc.
• Establish performance measures with respect to – Statistical information like mean, median, range etc.
customer requirements – Quality information like Pareto, scatter diagram, run
• Determine data needed to manage the process chart, control chart
• Establish regular feedback with customer and supplier – Supplier information like process variation, sample etc.
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¾ Cause and effect diagram is used, through brainstorming to – Evaluation or testing of solutions ‐ to test which has the
list down only possible causes and not solution g
greatest potential and the advantages and
p g
¾ Plan: Phase – 3: Develop optimal solution disadvantages
– Establish potential and feasible solution and recommend – Criteria include cost, feasibility, effect, resistance to
best solution
change, training etc. Solution must prevent reoccurrence
– Creativity and brainstorming play a major role
• Why will it be done?
– 3 types of solution can happen
• How will it be done?
H ill it b d ?
• Create a new process
• When will it be done?
• Modify existing process
• Combine different process • Who will do it?
• Where will it be done?

¾ Do: Phase 4: Implement changes ¾ Study: Phase 5: Study the results
– Preparing the implementation plan
p g p p – To check the effectiveness of improvement efforts
o c ec t e e ect e ess o p o e e t e o ts
– Getting approval and implementing it – It is necessary to evaluate the results to check for any
fine tuning
– A written or oral report is given
– They will check for any unforeseen problem getting
– After approval, it is necessary to get consensus among developed
people, department, functional area etc. ¾ Act Phase 6: Standardize the solution
– After implementation, monitoring has to be done – Once team is satisfied with change, it must be
• What information will be monitored? Who will take institutionalized by positive control of the process
measurements? What is required? How it will be taken? – Positrol (positive control) a tool that ensure important
variables are best under control
• When it will be done?
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PDSA Cycle – contd.. Kaizen

– It specifies what, who, how, where and when of the ¾ A philosophy that defines management role in continuous
process and it is a updating of maintaining activity improvement by continuously encouraging and
– Operator must be trained on what to do, how to do etc. implementing small improvements involving everyone
– If required job rotation is done, so all people knows ¾ Improvements are usually accomplished at little or no
about it expense without sophisticated technique or equipment
¾ Act: Phase 7: Plan for future ¾ Focuses on simplification by breaking down complex
– Objective of achieving improved level of process processes into sub process
performance, regularly scheduled reviews ¾ Kaizen focuses on
– Management must identify future area of improvement – Value added and non value added activities
by tracking internal and external customer requirement – Muda: waste of over production, inventory,
– Lessons from problem solving etc should be transferred processing, transportation, wasted motion, delay,
defective parts etc.
Kaizen – contd.. Re--Engineering

Re
– 5S (proper arrangement, orderliness, personal ¾ It is the fundamental rethinking and reduced redesign of
cleanliness, clean up and discipline) business process to achieve dramatic improvements
– Poka‐yoke ¾ Japanese have not only relied on kaizen, but have develop
– Documentation of standard operating procedures policy management (Hoshin Kanri) and policy deployment
– Principle of motion study and material handling etc. (Hoshin Tenkai) to set large breakthroughs
– JIT principles ¾ It is always a part of TQM and TQM is not just associated
with incremental improvements
– Team dynamics (problem solving, communication skills
Team dynamics (problem solving, communication skills
and conflict management)
¾ It relies on culture that encourages suggestion by
operators
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What is Six Sigma? WHY SIX SIGMA?

¾ Six Sigma is the measure of quality that strives for ¾ Intense competitive pressures – especially from rapid
p
near perfection. g
globalization.
¾ It is a disciplined, data‐driven methodology focused ¾ Greater consumer demand for high quality products
on eliminating defects. and services, little tolerance for failures of any type.
¾ A Six Sigma defect is defined as anything that falls ¾ Top management (and stockholder) recognition of the
outside of a customer's specifications. Six Sigma is a high costs of poor quality.
g y , q
reference to a statistical measuring system, equivalent ¾ The availability and accessibility of large data bases
to just 3.4 defects per every million opportunities and the increasing ability to explore, understand, and
(Snee, 2003). use the data.
Six Sigma DMAIC Process

¾ Identify projects that are measurable
¾ Define projects including the demands of the
Define projects including the demands of the
customer and the content of the internal process.
¾ Develop team charter
¾ Define process map
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¾ Define performance standards ¾ Establish process capability
¾ Measure current level of quality into Sigma. It
Measure current level of quality into Sigma It ¾ Define performance objectives
Define performance objectives
precisely pinpoints the area causing problems. ¾ Identify variation sources
¾ Identify all potential
causes for such problems.
¾ Screen potential causes ¾ Monitor the improved process continuously to ensure
¾ Discover variable relationships among causes and
Discover variable relationships among causes and g y p
long term sustainability of the new developments.
effects ¾ Share the lessons learnt
¾ Establish operating ¾ Document the results and
tolerances accomplishments of all
the improvement activities
for future reference
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Hyderabad Campus
¾ Introduction
¾ Partnering
¾ Sourcing
¾ Supplier Selection
¾ Supplier Certification
Supplier Certification
¾ Supplier Rating
Chapter 6: Supplier Partnership
¾ Relationship Development
Introduction Introduction
¾It is estimated that organization spends more than 50% of ¾Prior to 1980, procurement decisions were typically based
every sales dollar on the purchase of raw materials, on price resulting in sacrificing quality and timely delivery
components etc. ¾With introduction to JIT concept, it asked for raw materials
¾Supplier quality can substantially affect the overall cost of to reach the production in small quantities and when they
a product are needed
¾Key to obtain high quality product is – Inventory cost are minimum and procurement lots are
– Work with supplier in a partnering atmosphere to small, delivery frequent
achieve same quality level
achieve same quality level – Supplier will have many process setups and must
Supplier will have many process setups and must
¾Customer and supplier has limited resource and must work reduce setup time and its cost and the incoming quality
together to maximize their return on investment (for should be good
industrial product) ¾These forces have changed customer‐supplier relationship
into a mutually beneficial partnership
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Principle of customer / supplier

Principle of customer / supplier relations
relations – contd..
¾Dr. Kaouru Ishikawa suggested 10 principles to ensure – Supplier is responsible for providing the quality that
quality products and service and eliminate unsatisfactory will satisfy the customer and submit necessary data on
condition between the customer and supplier customer request
– Both the customer and supplier are fully responsible – Customer and supplier should decide the method to
for the control of quality evaluate the quality of product or service to the
– Both the customer and supplier should be independent satisfaction of both parties
of each other and respect each other’s independence – Customer and supplier should establish in contract the
– Customer is responsible for providing the supplier with method by which they can reach an amicable
clear and sufficient requirements so that supplier know settlement of any disputes that arise
precisely, what to produce – Both the customer and supplier should continually
– Customer and supplier should enter into non‐ exchange information, sometimes by multi functional
adversarial contract with respect to quality, quantity, teams that improve the product or service quality
price, delivery method and terms of payment
Principle of customer / supplier

relations – contd..
Partnering
– Both the customer and supplier should perform business ¾A long term commitment between two or more
activities such as procurement, production and inventory organization for the purpose of achieving specific business
planning, clerical work and system, so that an amicable and
l i l i l k d t th t i bl d goals and objectives, by maximizing the effectiveness of each
satisfactory relationship is maintained participants resources
– Both the customer and supplier, when dealing with business ¾Relationship is build upon trust, dedication to goals and
transactions should always have the best interest of the end
objectives, understanding of each other’s expectation and
user in mind
– It emphasises on partnership, trust etc.
values
¾Key elements of partnership
– Long term commitment
• Experience shows that the benefits of partnering
are not achieved quickly
• Problem require time to solve and processes need
continuous improvement
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Partnering Partnering – contd..

• Each party contribute its unique strength to the – Parties should have access to each other business plan and
processes, but when this is not sufficient, parties technology information like product, process parameter
must take risk in investing in new processes (say a etc, integrate resources like training administration etc.
new machine) – Strength of partnering is based on fairness and parity. Both
• Without long term commitment, it will not happen parties become mutually motivated when ‘win‐win’
– Trust solutions are sought rather than ‘win‐lose’ solutions.
• Enables the resources and knowledge of each – Sharing
partner to be combined to eliminate on hard
partner to be combined to eliminate on hard – Each of the partnering organization must understand the
relationship need to satisfy the final customer
• Open frequent communication avoids misdirection – Shared goals and objectives ensure a common direction
and disputes while strengthening relationship and must be aligned with each parties mission
– Partners must understand each other’s business so that
equitable decisions are made
Sourcing Sourcing
¾3 types of sourcing ¾Single
¾Sole – A planned decision by the organization to select on
– Sole source of supply implies that organization is forced supplier for an item, when several suppliers are
to use only one supplier available
– Situation is due to factor like patents, raw material – Results in large, long term contracts and partnering
location or item being produced by another plant or – With guaranteed volume, supplier can direct its
division of organization resources to improve process
– Results in partnering, if the supplier desires
p g, pp – Results in reduced business and production cost,
Results in reduced business and production cost,
¾Multiple complete accountability, supplier loyalty and reduced
– Use of two or more supplier for an item variability
– Usually 3 suppliers are chosen and their portion of – Eg. Xerox eliminated 90% of its supplier and improve
business is a function of performance in price, quality supplier quality from 92% to 99.97% in 6 years.
and delivery; to ensure healthy competition
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Supplier selection Supplier selection – contd..

¾First decision is to decide whether to make or buy, this ¾Conditions for selection and evaluation of supplier
decision is strategic and must be made during the design – Supplier understands and appreciate the management
stage philosophy of organization
¾Three questions has to be answered – Suppliers has a stable management system
– How critical is the item to the design? – Supplier maintains high technical standards and has
– Does the organization have the technical knowledge to the capability of dealing with future technological
produce it? innovations
– Are there suppliers, who specialize in producing them,
Are there suppliers, who specialize in producing them, – Suppliers can supply precisely those raw materials and
if not is organization willing to develop such supplier? parts required by the purchaser and it will meet the
¾Question must be answered in terms of cost, quality and quality requirements
delivery, safety and technical knowledge – No danger of supplier breaching corporate secrets
– Supplier is sincere in implementing the contract
provision
Supplier selection – contd.. Supplier certification

– Price is right and delivery dates can be met and ¾After supplier selection and approval, it is the certification
supplier is easily accessible in terms of transportation p
process, which starts after supplier starts supplying the
, pp pp y g
and communication product
– Supplier has an effective quality system and ¾Eight certification criteria has been developed by
improvement program like ISO or QS 9000
customer/supplier technical committee of ASQ
– Supplier has a track record of customer satisfaction and
– Customer and supplier shall have agreed upon
organization credibility
¾A team can evaluate the supplier on a score of 1 to 5 for
¾A team can evaluate the supplier on a score of 1 to 5 for specification that are mutually developed, justifiable
the above condition and select them and non ambiguous
¾Supplier has the capability to produce the amount of – The supplier shall have no product related lot rejection
production needed or can attain that capability for a significant period of time (say 1 year) or
significant no. of lots (say 20)
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Supplier certification–
certification– contd.. Supplier certification–
certification– contd..
– The supplier shall have no non product lot rejection for – Supplier shall have successfully passed on site system
a stated period of time (say 3 months) or 5 lots. Non evaluation. This evaluation could be by third party such
product related non conformities like wrong count, as an ISO/QS 9000 registrar or by second party –
billing error which can be easily corrected in short customer
period of time – Supplier must conduct inspection and test. Laboratory
– The supplier shall have no negative non product related results are used for batch process, SPC is used for piece
incidents for a stated period – say 6 months or 10 lots. part production
Criterion cover incidents or problem that occur even – Supplier shall have the ability to provide timely
though inspection and test showed conformance to inspection and test data. Because this documentation is
specification necessary, when the product arrives
– Supplier has a fully documented quality system. ISO/QS – Some organization may go beyond simple certification
9000 is an excellent model to build a system to a preferred supplier program
Supplier certification–
certification– contd.. Supplier rating
– The achievement requires outstanding product and ¾Customer rates supplier to
service performance by some suppliers – Obtain an overall rating of supplier performance
– Benefits – Ensure complete communication with supplier
– Eliminating receiving inspection, allow supplier to ship regarding their performance in area of Quality, safety
directly to assembly and delivery
– Customer/supplier relationship is created with each – Provide each supplier with detailed and factual record
of problem for corrective action
responsible for their appropriate quality
– Enhance the relationship between customer and
Enhance the relationship between customer and
– No. of supplier is reduced to manageable level
supplier
¾Supplier rating system is usually based on quality, delivery,
safety and other categories like machinability, cost
¾These categories are weighted and quality has high weight
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Supplier rating Relationship development

¾A score is given to each category by means of numerical ¾Other aspects of supplier partnership are
value or letter grade and overall score computed should be ¾ Inspection
communicated – Goal of inspection is to eliminate, substantially reduce or
Goal of inspection is to eliminate substantially reduce or
automate the inspection activity
¾Quality Delivery – There are 4 phases – 100% inspection, sampling, audit and
– Rejected lots ‐ Timely delivery identity check
– Process capability ‐ Handling and • 100% inspection
unloading – In the initial phase, 100% inspection of the critical quality
characteristic by both the customer and supplier is
– Pre shipment samples recommended
¾Service • Sampling
– Response to technical needs – As the customer gains confidence in suppliers
– Communication performance, change to sampling is initiated
– Change to sampling is done, if statistical control of the
– Routine service calls process using control charts and process capability is
¾An explanation for any C, D and F grades should be given shown
Relationship development –
Relationship development contd..
• Audit ¾ Training
– Supplier continues statistical control of the process and – In small supplier, senior manager may perform different
initiates his own auditing function and hence no one has expertise in quality or
– Customer now have complete confidence in supplier and ability to train work force
initiates identity checks, which verify the item number – Larger organization my invite the supplier to attend the
and quantities for accounting and inventory control course or present it at supplier plant
• Identity check – This requires a partnership, when training is seen as
– Occurs when both the customer and supplier perform
Occurs when both the customer and supplier perform investment and not expenses
only identity check. Experience in US and Japan shows ¾ Recognition
that it takes 5 years to achieve this final level of quality – Creating incentives for suppliers in one way to ensure that
they remain committed to quality improvement strategy
through publication of outstanding contribution in
newsletter, or letter of appreciation etc.
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Relationship development –
contd..
Recap
¾ Team approach
– Customer and supplier team have established in no. of
¾ Introduction
areas, such as product design, process design and quality ¾ Partnering
system
– Supplier should be involved right from start of new ¾ Sourcing
product development and team meetings should occur at
both parties plant, so that greater understanding of the ¾ Supplier Selection
process occurs
¾ Supplier Certification
Supplier Certification
¾ Supplier Rating
¾ Relationship Development
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Hyderabad Campus
¾ Introduction
¾ Basic Concepts
¾ Strategy
¾ Performance Measure Presentation
¾ Quality Costs
¾ Malcolm Baldridge National Quality Award
Chapter 7: Performance Measures ¾ Scoring
¾ Problems
Introduction Typical measurements

¾Managing an organization without performance measures ¾Human resources
is like a captain of a ship navigating without instrumentation ¾Customers
¾Measures play a vital role in the success or failure of an ¾ Production
organization ¾Research and development
¾Objectives ¾Suppliers
– Establish baseline measures and reveal trends ¾Marketing / Sales
– Determine which processes need to be improved ¾Administration
– Indicate process gains and losses
Indicate process gains and losses ¾A good metric compares the measurement of interest to
– Compare goals with actual performance the total possible outcomes such as rework hours to total
– Provide information for individual and team evaluation hours.
– Provide information to make informed decisions
– Determine the overall performance of the organization
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Criteria Criteria – contd..

¾All organizations have some measurements in place that ¾Developed by users
p
can be adapted for TQM. New measurements can also be – Measures dictated by a higher authority will not receive
added support from downstream units
¾To evaluate the existing as well as new measures, following ¾Relevance to customer
criteria can be used: – Must be relevant to the needs of internal or external
¾Simple customers
– Measures should be understandable by those who will ¾Cost
use them
use them – Should reflect the cost and profit like cost of poor
¾Few in number quality, cost of measurement
– Important measures must be distinguished from the ¾Improvement
unimportant ones so that all users can concentrate on – Measures should be used to promote improvement, not
just a few to identify poor performance and penalize low
performers
Criteria – contd.. Characteristics

¾Visible ¾One or more seven basic characteristics are used to
– Facility wide measures should be posted in a central measure the performance of a process, product or service
l ti
location such that everybody can see them
h th t b d th
¾Quantity
¾Timely
– This characteristic is one of the most common
– Financial and accounting data are presented too late to
be actionable measures. Eg. How many units a production process
¾Aligned produces
– Measures and indicators tied to customer and ¾Cost
organizational performance requirements provide a way – This characteristic measures the amount of resources
to align activities with organizational goals required to produce a given output
¾Results ¾Time
– Measures need to be guided and balanced by the interest – This answers the question, “was the output on time?”
of all stakeholders – customers, employees, suppliers etc. Eg. % of beds in a hospital that were made on time
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Characteristics – contd.. Characteristics – contd..

¾Accuracy ¾Aesthetics
– This characteristics measures the number of non‐ – This characteristic measures how the product looks,
conformances in the output, such as three feels, sounds, tastes, smells and is quite subjective. Eg. %
nonconforming labels per million of people who like the interior design
¾Function
– This characteristic answers the question “does the
output perform the function as specified?” Eg. Braking
distance for an automobile
¾Service
– This characteristic measures the performance of the
service activity. A typical measure is the no.of complaints
10
about service personnel
MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus 11 MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus
Strategy Strategy – contd..

¾Quality council has the overall responsibility for the – Quality
p
performance measures and they ensures that all
y – Cost
measures are integrated into a total system of measures – Reliability
¾To develop the system, it will obtain information from – Flexibility
all stakeholders – Innovation
¾Above metrics are tracked to show trends, identify
¾They will utilize the goals, values, mission, objectives
problem etc.
and criteria
¾Once strategic measurement system is developed,
¾Once strategic measurement system is developed,
¾
¾An example of system that emphasizes percent functional areas can develop their systems by involving their
improvement might contain the functions and metrics work groups
as shown below:
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Performance measures Performance measures

presentation presentation
¾Six basic techniques for presenting performance measures – Cost of poor quality
– Time series graph: used to benchmark the process and • Money is the best way to attract the attention of
shows favourable and unfavourable trends in the senior management
measure – Malcolm Baldrige National Quality Award
– Control chart • Criteria for this award quite effectively measure the
– Capability index performance of the TQM effort on an annual basis
• ratio of tolerance to the capability
• There are two measures, one indicates the ability of
There are two measures, one indicates the ability of
the process to meet specifications and the other
indicates the centring of the process on the target
– Taguchi’s loss function
• This technique combines target, cost, and
specifications into one measurement
Quality costs Quality costs – contd..

¾Value of quality must be based on its ability to contribute ¾ It is defined as those costs associated with the non‐
to the profit as business is measured in terms of money
to the profit as business is measured in terms of money achievement of product or service quality as defined by
the requirements established by the organization and its
¾Cost of poor quality or quality costs can be added to other
contracts with customers and society
costs used in decision making like design, production, sales ¾Considered as management technique
etc. – It is the economic common denominator that forms
¾Quality costs cross department lines by involving all the basic data for TQM. When quality costs are high, it
activities of the organization and some costs like rework
activities of the organization and some costs like rework, is a sign of ineffectiveness
is a sign of ineffectiveness
– A quality cost program provides warning against
inspector salary etc, can be easily identified, while costs
oncoming, dangerous situations
associated with lost sales and goodwill may be impossible to – It quantifies the magnitude of the quality problem in
measure the language best known to management ‐ dollars
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Quality costs – contd.. Categories and Elements

– Quality cost can be used to identify quality ¾Four categories: Prevention, Appraisal, Internal failure and
improvement activities and prioritize the same by External failure
pareto analysis ¾Prevention cost
– Quality improvement is synonymous with reduction in – The experience gained from the identification and
the cost of poor quality and one the advantage is the elimination of specific causes of failure and their costs
identification of hidden and buried costs in depts. is utilized to prevent the recurrence of the same or
similar failures in other products by developing specific
activities and cost of all such activities is defined as
activities and cost of all such activities is defined as
prevention cost
Categories and Elements – Categories and Elements –

contd.. contd..
¾Appraisal cost ¾External failure cost
– Costs incurred while conducting inspection, tests and – Costs incurred due to actual or suspected
several other planned evaluations with the purpose of
several other planned evaluations with the purpose of
determining whether the product or service confirm as nonconforming product after delivery
f i d f d li to the customer
h
to its stated requirements. – Complaint investigation or user service: Total cost of
– Also includes costs incurred for the inspections, tests, or investigating, resolving and responding to user
audits required to determine and assure the complaints, inquiries and field service
acceptability of product or service to continue into each – Returned goods: total costs of evaluating and repairing
discrete step in the operations plan from start of or replacing goods due to quality problems
production to delivery ¾Examples:
¾Internal failure cost
– Defined to include all costs required to evaluate, dispose – Retrofit and recall costs: costs required to modify or
of, or correct or replace nonconforming products or update product facilities to a new design change level
services prior to delivery to customer and includes or major redesign due to design deficiency
labour and material expenses that are lost due to
unacceptable work affecting the quality of end products
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Categories and Elements –

contd..
Collection and reporting
– Warranty claims: include the total cost of claim paid to the ¾Collection system design
user after acceptance to cover expenses like repair, cleaning – Measurement of actual quality costs is accounting
or price reduction etc. function, but requires close interaction with quality
– Liability costs: organization paid costs due to liability claims department
and includes product liability insurance – This system should be designed using the organizations
– Penalties: cots incurred because less than full product
present systems and modifying it where appropriate
performance is achieved as required by contracts by
government rules or regulations
– Existing sources for reporting system are expense
– User goodwill, lost sales: these costs are difficult to
User goodwill lost sales these costs are difficult to reports, credit and debit memos etc.
reports, credit and debit memos etc.
measure – Since quality costs cross departmental lines, special
forms may be needed to collect the same and in some
cases, proper estimating technique like work sampling
should be used
Collection and reporting Relating quality cost to business measures

– Accounting office must be involved in design as they ¾Quality manager should relate the quality costs to the
have the ability to create a new system that integrate overall business measures based on some base line as
quality costs into existing accounting system – As a % of sales
– Major problem is allocating costs to the proper – As compared to profit
element. For example, – As related to production
• Incoming inspection would be appraisal, while – As related to unit of production
supplier certification is appraisal
• Cost of team meeting might be due to failure, but
Cost of team meeting might be due to failure, but
cost of the solution might be appraisal or prevention
– Costs should be collected by product line, department,
work etc.
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Quality cost analysis Quality improvement strategy

¾Objective of techniques is to determine opportunities for quality ¾Basic concept is that failure has a root cause and causes
improvement are preventable and prevention is cheaper
¾Trend analysis ¾Following strategy can be used
– Simply comparing present cost levels to past levels and it is – Reduce failure cost by problem solving
suggested that at least one year elapse before drawing any – Invest in right prevention activities
conclusion from the data
– Reduce appraisal cost where appropriate
– It provides information for long range planning and data
comes from monthly report
– Continuously evaluate and redirect the prevention
– Trend analysis can be accomplished by cost category, sub
Trend analysis can be accomplished by cost category sub effort to gain further quality improvement
effort to gain further quality improvement
category, by departments, by plants etc.
¾Pareto analysis
– Identify vital few problems from useful many and evaluated
based on money value
Malcolm Baldridge National Malcolm Baldridge National

Quality Award Quality Award
¾Annual award to recognise US organization for performance ¾Criteria purposes
excellence – Criteria for performance excellence are the basis for
¾A
¾Award promotes
d making awards and for giving feedback to applicants
– Understanding the requirements for performance – Helps to improve performance practices and capabilities
excellence
– Sharing of information on successful performance – Facilitate communication and sharing of best practices
strategies – Serve as an working tool for understanding and
¾Five categories: Manufacturing, Service, Small business, managing performance, planning, training and
Health care Education
Health care, Education assessment
¾These awards may be given each year in each category
¾Many organization who are not interested in award are
using the categories as techniques to measure their TQM
effort
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Quality Award – contd.. Quality Award – contd..
¾Core values and concepts are embodied in seven categories: ¾Characteristics of criteria
leadership, strategic planning, customer and market focus,
p, g p g, , – The criteria are non prescriptive because
p p
information and analysis, human resource focus, process • The focus is on results and not on procedures, tools
management, business results etc. These requirements intended to foster
¾Characteristics of criteria incremental and major breakthrough
– The criteria is directed towards results • Selection of tools, techniques, systems and
• They focus on seven key areas of business organization depend on business type, size, employee
performance. Results are composite of product, capability and responsibility
customer, market and financial, internal operational – The criteria supports a systems approach to maintaining
performance results, workforce, leadership, organization wise goal alignment
governance, social responsibility.

Quality Award – contd.. Quality Award – contd..
• Alignment in criteria is built around connecting and ¾Characteristics of criteria
reinforcing measures derived from organization
g g – The criteria supports goal based diagnosis
strategy • Criteria are a set of 20 performance oriented
• There measures tie directly to customer value requirements
• Scoring guidelines spell out assessment dimensions –
• Measures serve as both as communication tool and a
approach, deployment and results
basis for deploying overall performance requirements
• An assessment thus provides a profile of strength and
• When goals and strategies change it requires dynamic opportunities for improvement relative to 20 basic
opportunities for improvement relative to 20 basic
linkage with criteria item requirements
• Assessment leads to action that contribute to results
¾Criteria are classified into seven categories and consists of
20 action elements, which has a score for each
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MBNQA – Criteria MBNQA – Criteria – contd.

¾ Leadership ‐ 120 ¾ Workforce – 85 ¾Leadership
– Senior Leadership ‐ 70 – Workforce engagement‐45 – It examines how senior leader’s leadership and the
– Governance and social
Governance and social – Workforce environment‐
Workforce environment 40
responsibilities – 50 ¾ Process management ‐ 85 leadership system address values, company directions,
¾ Strategic planning ‐ 85 – Work Systems– 45
– Strategy development learning, innovation etc.
– Work Processes– 40
process – 40 ¾ Result ‐ 450 – Also addresses company’s societal responsibilities
– Company strategy – 45
¾ Customer focus ‐ 85
– Product Outcomes – 100 ¾Strategic planning
– Customer‐focused Outcomes –
– Customer Engagement – 40 70 – How companies sets strategic direction and how it
– Voice of customer – 45 – Financial & Market Outcomes
Financial & Market Outcomes – develop strategies
develop strategies
¾ Measurement, Analysis and 70
knowledge management ‐ 90 – Workforce‐focused Outcomes –
– Also examines how plans are deployed and
– Measurement, Analysis and 70 performance is tracked
improvement– 45 – Process effectiveness Outcomes– ¾Customer and market focus
– Management of Information, 70
knowledge and IT – 45 – Leadership Outcomes – 70 – How company determine expectations and preference
of customers
MBNQA – Criteria – contd. RGNQA

– How company builds relationship with customers and ¾Instituted by BIS
find satisfaction ¾Helps Indian Industry to imrpove quality by
¾H
¾Human resource focus
f – Encouraging India industry to make significant improvements in
E i I di i d t t k i ifi t i t i
– How company enables employees to develop and utilize the quality for maximizing consumer satisfaction and successfully
their full potential aligned to company’s objectives facing competition in the global market
– Also analyses company’s efforts to maintain work – Recognizing the achievement of those organizations, which have
environment, work climate, participation etc. improved the quality of their products and services and thereby,
¾Process Management set an example for others
– Key aspects like customer focused design, product and
y p g ,p – Establishing guidelines and criteria that can be used by the
Establishing guidelines and criteria that can be used by the
service delivery, support and supplier etc. industry in evaluating their own quality improvements efforts.
– How key process are aligned, implemented, managed and
– Provide specific guidance to other organization that wish to learn
improved
how to achieve excellence in quality by marking available detailed
¾Business results
– Examines company performance and improvement in key information on Quality Management Approach adopted by the
business areas award winning organizations to change their culute
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Scoring system Scoring system

¾System for scoring applicant response to 20 items and for ¾Deployment: Refer to the extent to which the applicants
feedback is based on 3 evaluation dimension: Approach, approach is applied to all requirements of the item
Deployment, Result – Use of approach in addressing business and item
¾Approach: How the applicant addresses the item requirements
requirement – Use of approach by all appropriate work units
– Appropriateness of methods and effective use of ¾Result: Refer to outcomes in achieving the purposes given
methods in the item. Factors used are
– Degree to which it is systematic and consistently
Degree to which it is systematic and consistently – current performance and Performance relative to
current performance and Performance relative to
applied, whether based on information and data Benchmarks
– Evidence of innovative or effective adaptations of – Demonstration of improvement and linkage of result to
approaches used in other applications or types of goals
businesses
Problem 1
6. Construct a Pareto diagram for the analysis of the following
purchasing department quality costs of a major airline:
Element Dollars (Thousands)
Dollars (Thousands)
Supplier review 10
Supplier rating 5
Specification review 2
Supply quality planning 5
Receiving inspection 95
Measuring equipment 60
Q lifi i
Qualification of supplier product
f li d 5
Source inspection 15
Material Inspection 120
Material replacement 180
Supplier corrective action 53
Rework of supplier 5
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Problem 2 Solution
¾ 10. For a hardware manufacturer, prepare graphs ¾ Index:
y p
and analyze the internal failure costs for the past six For March
For March
months using the net sales index.
45300
Month Cost in $ Net sales
= 0.06
755000
(Thousands)
March 45300 755 For April
April 45800 790
45800
May
ay 46100
6 00 840
8 0 = 0.057
June 4700 925
790000
July 48600 1050
Aug 49300 1232
Recap
¾ Introduction
¾ Basic Concepts
¾ Strategy
¾ Performance Measure Presentation
¾ Quality Costs
Quality Costs
¾ Malcolm Baldridge National Quality Award
¾ Scoring
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Hyderabad Campus
¾ Introduction
¾ Some definitions of Benchmarking
¾ Types of Benchmarking
¾ Process
¾ Advantages
Chapter 8: Benchmarking
Introduction Introduction – contd..

¾Benchmarking can be said as a management‐tool for ¾When the lessons learnt from a benchmarking exercise are
p gp y g p
improving performance by learning from best practices applied appropriately, they facilitate improved performance
and understanding the processes by which they are in critical functions within an organization or in key areas of
achieved the business environment
¾It does not mean copying or stealing someone’s ¾In recent years, organizations such as government
agencies, hospitals and universities have also discovered the
superiority, but more likely adapting the best practices
value of benchmarking and are applying it to improve their
into one’s own circumstances in the way most valuable
processes and systems.
processes and systems.
for the company and its customers. ¾It is used extensively by organizations like Xerox, AT&T,
Motorola, Ford, Toyota and many more.
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Some definitions of
Introduction – contd.. Benchmarking
¾Benchmarking is a common element of quality standards, ¾“The search for industry best practices that lead to
such as Chrysler, Ford and General Motors quality system superior performance” (Camp, 1989)
requirements ¾“Benchmarking is a continuous process of measuring your
¾What is Benchmarking and What is Not? current business operations and comparing them to best‐in‐
– It is not a mechanism for determining resource class operations. Application of the knowledge gained from
reductions, but redeployment of resources to the most benchmarking study provides a foundation for building
effective way of supporting customer requirements. operational plan to meet and surpass industry‐best
– It is not a program rather an ongoing management
It is not a program rather an ongoing management practices” [Bemowski, 1991].
practices [Bemowski, 1991].
process ¾“Benchmarking is emulating the best by continuously
– It is not a cookbook process that requires only looking implementing change and measuring performance” [Zairi,
up ingredients and using them for success, rather it is a 1995].
discovery process and a learning experience.
Some definitions of
Benchmarking – contd..
Objective of Benchmarking
¾“Benchmarking is a continuous, systematic process for ¾The main objective of any benchmarking activity is:
evaluating the products, services and work processes of – To identify key performance measures for each function
organizations that are recognized as representing best of a company’s operations
practices for the purpose of organizational improvement”. – To measure the internal performance levels of the
(Spendolini, 1992) company as well as that of competitors
¾“Benchmarking is the process of improving performance – To ensure that its business process goals are set to
by continuously identifying, understanding and adapting exceed the best quantitative results achieved by leading
outstanding practices and process found inside and outside
outstanding practices and process found inside and outside organizations
the organization anywhere in the world and implementing it – To incorporate best practices throughout the
to achieve the desired results”. (APQC) organization business process
– To reach a level of maturity where benchmarking is an
ongoing part of management system in all areas of the
company
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Types of Benchmarking Types of Benchmarking – contd..

¾Some authors classify into two: ¾Based on organization chosen for benchmarking
– Internal Benchmarking – Internal Benchmarking:
– External Benchmarking • Benchmarking against internal operations
¾Except the inter‐departmental or inter‐company • In most large companies there are similar functions
benchmarking, all other benchmarking activities are in different business units. One of the simplest
considered under external benchmarking. benchmarking exercises is to compare these internal
¾But some other researchers have classified benchmarking operations.
in the following ways:
in the following ways: • The objective of internal benchmarking is to identify
The objective of internal benchmarking is to identify
– Based on organization chosen the internal performance standards of an
– Based on goals organization
Types of Benchmarking – contd.. Types of Benchmarking – contd..

¾Based on organization chosen for benchmarking – contd.. ¾Based on organization chosen for benchmarking – contd..
– Competitive
p Benchmarking
g – Industry or Functional Benchmarking: Benchmarking
• Benchmarking against external direct product against external functional best operations of industry
competitors leaders
• Direct competitors are the most obvious to benchmark – It can be done with others in the same industry, which
against. may have the same products or services but are not
• The objective is to compare companies in the same competitors in the same market.
markets that have competing products or services or – It tends to involve comparisons between firms that share
work processes.
some common technological and market characteristics
• E.g. Xerox Vs Canon
and to concentrate on specific functions.
– For example, BSNL might benchmark its billing process
against the billing process of British Telecom.
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¾Based on organization chosen for benchmarking – contd.. ¾Based on goals of benchmarking
– Generic or Process Benchmarking: ¾Performance Benchmarking
• Benchmarking a process in one or several unlike – Refers to comparison of indicators related to a business
organizations as a whole or to the group of critical activities or
• This type of benchmarking focuses on excellent processes which are critical to the implementation of
work processes rather than on the business business strategy.
practices of a particular organization or industry – It is also called as “Result Benchmarking” in which, all
because some business functions or processes are
because some business functions or processes are kinds of system performance variables like efficiency,
the same regardless of dissimilarities of the effectiveness, productivity, quality, flexibility,
industries innovativeness and profitability could be measured and
compared
– It is necessary that measurements and comparisons be
made at tactical levels

¾Based on goals of benchmarking ¾Based on goals of benchmarking
¾Product Benchmarking / Customer Satisfaction – Product Benchmarking – contd..
Benchmarking – Involves comparison of different features and
– Refers to either engineering or qualitative comparison of attributes of competing products and services either
products and services among competing offerings. through engineering analysis or through analysis of
– Many of the manufacturing organizations have been perception of customers.
implementing several kinds of reverse engineering to – Example : Ford Motor Company did during the
benchmark various features of their products. development of their “Taurus”
development of their Taurus model of automobile.
model of automobile.
– It helps in identifying activities where improvement – Product benchmarking should be done by an inter‐
could be done and it leads to redesign of existing disciplinary group instead of marketing departments
products alone, to provide maximum benefits.
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Process Process–
Process– contd.,
¾Six steps to benchmark Decide what to benchmark:
Thinking about the mission and critical success factors.
g
– Decide what to benchmark
Decide what to benchmark
Answer the following questions:
– Understand current performance 1. Which processes are causing the most trouble?
– Plan 2. Which processes contribute most to customer
– Study others satisfaction and which not performing up to
expectations?
– Learn form the data
L f th d t 3. What are the competitive pressure impacting the
– Use the findings organization the most?
4. What processes or functions have the most potential
for differentiating our organization from others?
Process–
Process– contd., Process–
Process– contd.,
Understanding current performance: Studying Others:
¾ Understand and document the current process.
p ¾ Studies are of two types: description of how best in class
processes are practiced and the measurable results of
ti d d th bl lt f
¾ Attention to be paid to inputs and outputs. these practices.
¾ Quantifying the documentation process. ¾ Conducting original research through site visits,
questionnaire, focus groups, interviews etc.,
¾ Special care to be taken while accounting information
Learning from the data:
is dealt.
¾ Is there any gap between the organization’s performance
Planning:
g and that of the best in class organizations?
and that of the best in class organizations?
¾ Decisions to be made as how to conduct the study. ¾ What is the gap and how much is it?
¾ Timetables to be prepared and mutually agreed upon. ¾ Why is there a gap? What does the best in class do
differently that is better and if adopted, will results
¾ Identifying as which type of benchmarking has to be improve?
used.
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Process–
Process– contd., Process–
Process– contd.,
Using the findings: Using the findings: contd.,
¾ In case of negative findings, the objective is to change
g g, j g ¾ Follow a generic process:
Follow a generic process:
the process to close the gap.
– Assign responsibility for each task
¾ Mutual agreement between the top management and
the workers. – Describe expected results
¾ New goals and objectives to be set. – Specify methods for monitoring results
¾ Follow a generic process: ¾ Goals and objectives should be consistent with the
– Specify the task execution of the action plan.
– Sequence tasks ¾ Next step is to repeat the benchmarking process.
– Determine resource needs
– Establish task schedule
Advantages Advantages–
Advantages– contd..
¾Satisfying customers' needs and expectations. It helps to identify ¾It helps to stay informed on the state‐of‐the‐art business
what is important to your customers and what will meet their
h ti i t tt t d h t ill t th i practices
ti
expectations ¾It encourages creative thinking while performing this study you
¾It helps to discuss and understand the methods and practices will discover different creative ideas used by other organizations
needed to reach new goals ¾It helps in reviewing / studying competitive comparisons
¾It provides a means to achieve superior performance
¾It provides a means to achieve superior performance ¾It accelerates process improvement Performing a study will
¾It accelerates process improvement. Performing a study will
¾It helps to adapt best practices provide information/results from others so that changes can be
¾It provides the opportunity to develop and stimulate strategic implemented quicker
goals/planning
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BITS Pilani
Hyderabad Campus
Review of Chapters 1-8
A better definition of quality

¾ It is an enhancement to the traditional way of doing business ¾Proposed by Garvin
¾ It is a pproven technique
q which gguarantee a survival in the ¾ Garvin mentioned that q
quality
y can be defined
competitive world, if implemented properly 9 Performance – Primary product characteristics
¾ TQM stands for 9 Features – Secondary product characteristics
– Total - Made up of the whole 9 Conformance – Meeting specifications or standards
9 Reliability – Consistency of performance over time
– Quality - degree of excellence a product or service
9 Durability – Useful life
provides
9 Service – Resolution of problem and complaints
– Management - Act, art or manner of planning, controlling, 9 Response – Human to human interaction
directing,…. 9 Aesthetics – Exterior finish
¾ Therefore, TQM is the art of managing the whole to achieve 9 Reputation – Past performance
excellence. TQM relies on common sense.
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Old vs. TQM Approach Leadership
Quality Element Previous Approach TQM Approach

A leader is one who imparts purposes, not one who
Definition
D fi i i P d t i t d
Product‐oriented C t
Customer‐oriented
i t d
controls byy brute force. One who strengthens
g and
Priorities 2nd to service and cost Equals of service and cost inspires the followers to accomplish shared goals.
Decisions Short‐term Long‐term He is one who shape, promote, protect and exemplify
Emphasis Detection Prevention the organization values.
Errors Operations System
Leaders and followers raise one another to higher
Responsibility Quality control Everyone
levels of motivation and morality
Problem Solving Managers Teams
Price Life‐cycle costs,partnership
Leadership is we not me; mission not my show;
Procurement
vision, not division; and community, not domicile–
Manager’s Role Plan, assign, control, and Delegate, coach, facilitate
enforce and mentor Daimler Chryslers' CEO
Comparison between Manager

Manager--
Leader
¾ Manager ¾ Leadership for quality
(Outstanding leadership)
Priority attention to internal/external customers
A manager administers A leader innovates. Empower, rather than control subordinates
is a copy is an original
maintains develops Emphasize improvement, rather than maintenance
focuses on systems structure focuses on people Emphasize prevention
relies on control inspires
p trust
has a short-range view has a long-range perspective Encourage collaboration rather than competition
Asks how and when asks what and why. Train and coach, rather than direct and supervise
his eye on the bottom line his eye is on the horizon
Imitates originates
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Characteristics of Quality
Leaders--
Leaders-- contd.,
The Deming Philosophy
Learn from problems 1. Create and publish aims/purpose of firm
Continually try to improve communications 2. Learn the new philosophy
Continually demonstrate their commitment to quality 3. Understand purpose of inspection
Choose suppliers on basis of quality, not price 4. Stop awarding business on price alone
5 Improve constantly and forever the system
5.
Establish organizational systems to support quality
effort 6. Institute training
7. Teach and institute leadership
Encourage and Recognize team effort
The Deming Philosophy–

Philosophy– contd
contd.,
., Quality council
¾What do you understand by term Quality Council and
8. Drive out fear, create trust and a climate for innovation
what is its’ needs.
9. Optimize efforts of teams, groups and staff areas ¾ Establish to provide overall direction, driver of the TQM
engine
10. Eliminate exhortations for the work force ¾ Composed of CEO, senior managers of functional area and
a consultant along with union representative and
11. Eliminate numerical quotas for workforce and MBO coordinator
12 Remove barriers that rob people of pride of workmanship
12. ¾ Coordinator should report
p to CEO. His responsibility
p y is to
build two-way trust, propose team’s need to the council,
13. Encourage education and self-empowerment for everyone share council expectation to team etc.
¾ It is necessary that quality council become ingrained in
14. Take action to accomplish the transformation culture
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Quality statements Quality statements – contd

contd..
..
¾What do you understand by Quality Statements? ¾ Mission statement:
¾ Include vision statement, mission statement and quality
policy statement 9 Who we are; Who are the customers; What we do; How
¾ They are part of strategic planning process and includes we do?
goal and objectives. Utilization for four statements vary
considerably from organization to organization 9 Statement is of one paragraph or less, easy to understand
¾ Vision statement: and describes the function of the organization
9 Statement declaring what an organization should look like Ex: “To meet customer’s transportation and distribution
5 to 10 years in the future needs by being the best at moving their goods on time,
9 Statement should be short and concise safely and damage free” – Canadian National Railway
9 “We will be the preferred provider of safe, reliable and ¾ Quality policy
cost effective products and services that satisfy the 9 Guide for everyone in the organization as to how they
electric-related needs of all customer segments” – F
Power &Light should provide products and services to customers
Why Customer satisfaction? Customer types

¾ Customer is the Boss or ‘King’ ¾ External and Internal customers
¾ Customer dictates
Customer dictates the market trends and direction
the market trends and direction ¾ External
External – current, prospective and lost customers
current prospective and lost customers
¾ Customer not only has needs to be supplied( basic ¾ Internal – Every person in a process is a customer of
performance functions) but also he ‘wants what he the previous operation.(applies to design,
wants!’ (additional features satisfy him and influence manufacturing, sales, supplies etc.) [Each worker
his purchase decision) should see that the quality meets expectations of the
¾ Hence the Suppliers and Manufacturers have to
Hence the Suppliers and Manufacturers have to p pp
next person in the supplier‐to‐customer chain] ]
closely follow at the heel of the customer. ¾ TQM is commitment to customer‐focus ‐ internal and
external customers.
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Customer perceptions of
Quality Characteristics of successful team
¾ Performance: “Fitness for use” ¾ Sponsor
¾ Features: Secondary characteristics – To have liaison with quality council
¾ Service : A method by which an organization gives the – Sponsor should be member of quality council, thus
providing organizational support
costumer – an added value.
¾ Team charter
¾ Warranty: Represents an organization's public promise of
– Document that defines the team’s mission,
a quality product backed up by a guarantee of customer boundaries, authority, duties, resources used,
satisfaction. problem handled etc.
¾ Price: Efforts to be made in identifying, verifying and – Identifies the members, leader, recorder,
updating the costumer's perception of value timekeeper, roles etc.
¾ Reputation: Customer’s go with brand name. It costs five – Sponsor and the team negotiate the charter
times as much to win a new customer.
Characteristics of successful
Characteristics of successful team team
¾ Team composition ¾ Ground rules
– Size of the team rarely exceed 10 people, as big the – Must develop its rule of operation and conduct
team, difficult to maintain commitment,
d ff l – Rules should be reviewed and revised
interpersonal aspect and control ¾ Clear objectives
– Team should be diverse and have members with – Criteria for success should be agreed on with
different skills and expertise management
– Internal and external supplier / customer can also ¾ Accountability
be included
¾ Training – Team is accountable to perform
Team is accountable to perform
– Training in problem solving techniques, team – Periodic status reports to be given to quality
dynamics and communication skills council
– Should review its performance to find team’s
weakness and makes improvement
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¾ Well defined decision procedures ¾ Effective problem solving
– Effective, acceptable and timely decision has to be – No quick fix method should be adopted
q p
made
d
¾ Open communication
¾ Resources
– Members should actively listen without
– Not only funding and employee time is important,
but also information interrupting other members
¾ Trust – Speak with clarity and directness
– Management must trust the team that they will
Management must trust the team that they will – Ask questions
q
perform the task effectively ¾ Appropriate leadership
– Further trust should be there between members – All team need leadership, whether determined
from the quality council or someone emerges from
the team
Characteristics of successful team The Juran’s Trilogy

¾ Balanced participation ¾ Explain the various components for Process improvement.
– All members should have their opinion, knowledge
p , g ¾33 components for process improvement –
co po e ts o p ocess p o e e t p planning,
a g,
and encourage others control and improvement
– No domination or pulling other legs – Planning
¾ Cohesiveness • Marketing determines the external customer while
– Members are comfortable working with each other organizational personnel determine internal
and act as a single unit customer
• A Pareto diagram can be used to determine the vital
few customers
• Customer needs are identified, based on their own
words, but real needs may differ, but internal
customer may not tell real needs due to fear
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The Juran’s Trilogy – contd.. The Juran’s Trilogy – contd..

• Develop product / service that respond to customer – Controlling
needs, meet the needs of organization and supplier • Used by operating forces to meet the product
Used by ope at g o ces to eet t e p oduct
and optimize the cost of stakeholders process requirement
• Developed by cross functional team and different • Uses feedback and have the following steps
tools like QFD, DoE are used – Evaluate actual performance
• Develop process to produce the product, which is – Compare actual performance to goals
also done by cross functional team
– Act on difference
Act on difference
• Product will move from laboratory, prototype to
process environment and process validation is done • Statistical process control (SPC) and 7 QC tools are
used
The Juran’s Trilogy – contd.. PDSA cycle

– Improvement ¾ Developed by Shewhart and this was called PDCA cycle
• Aims to attain levels of performance that are higher
s to atta e e s o pe o a ce t at a e g e ¾ It was modified by Deming, which is called PDSA cycle
t as od ed by e g, c s ca ed S cyc e
than current levels ¾ Effective improvement technique
• It is based on the effective infrastructure of quality ¾ Plan: What is to be done?
council ¾ Do: Carry out the plan
• Quality council need to identify improvement ¾ Study: Did the plan work as intended?
project and project teams
¾ Act: Act on result by identifying what worked and what
Act: Act on result by identifying what worked and what
• Necessary resources have to be provided planned
• Process improvement can be incremental or ¾ Process improvement achieves greatest result when it
breakthrough operates within framework of problem solving method
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PDSA cycle – contd.. Six Sigma DMAIC Process

¾ Plan ¾ Identify projects that are measurable
– Identify the opportunity
de t y t e oppo tu ty ¾ Define projects including the demands of the
Define projects including the demands of the
– Analyse the process customer and the content of the internal process.
– Develop optimal solution ¾ Develop team charter
¾ Do ¾ Define process map
– Implement
¾ Study
– Study the results
¾ Act
– Standardize the solution
– Plan for future
Partnering Partnering
¾A long term commitment between two or more • Each party contribute its unique strength to the
organization for the purpose of achieving specific business processes, but when this is not sufficient, parties
goals and objectives, by maximizing the effectiveness of each must take risk in investing in new processes (say a
participants resources new machine)
¾Relationship is build upon trust, dedication to goals and • Without long term commitment, it will not happen
objectives, understanding of each other’s expectation and – Trust
values • Enables the resources and knowledge of each
¾Key elements of partnership partner to be combined to eliminate on hard
partner to be combined to eliminate on hard
– Long term commitment relationship
• Experience shows that the benefits of partnering • Open frequent communication avoids misdirection
are not achieved quickly and disputes while strengthening relationship
• Problem require time to solve and processes need
continuous improvement
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Partnering – contd.. Characteristics

• Parties should have access to each other business ¾One or more seven basic characteristics are used to
plan and technology information like product, measure the performance of a process, product or service
process parameter etc, integrate resources like ¾Quantity
training administration etc. – This characteristic is one of the most common
– Sharing measures. Eg. How many units a production process
• Each of the partnering organization must produces
understand the need to satisfy the final customer
¾Cost
• Shared goals and objectives ensure a common
Shared goals and objectives ensure a common
– This characteristic measures the amount of resources
direction and must be aligned with each parties
mission required to produce a given output
• Partners must understand each other’s business so ¾Time
that equitable decisions are made – This answers the question, “was the output on time?”
Eg. % of beds in a hospital that were made on time
Characteristics – contd.. Characteristics – contd..

¾Accuracy ¾Aesthetics
– This characteristics measures the number of non‐ – This characteristic measures how the product looks,
conformances in the output, such as three feels, sounds, tastes, smells and is quite subjective. Eg. %
nonconforming labels per million of people who like the interior design
¾Function
– This characteristic answers the question “does the
output perform the function as specified?” Eg. Braking
distance for an automobile
¾Service
– This characteristic measures the performance of the
service activity. A typical measure is the no.of complaints
36
about service personnel
MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus 37 MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus
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Quality Award Quality Award
¾Annual award to recognise US organization for performance ¾Criteria purposes
excellence – Criteria for performance excellence are the basis for
¾A
¾Award promotes
d making awards and for giving feedback to applicants
– Understanding the requirements for performance – Helps to improve performance practices and capabilities
excellence
– Sharing of information on successful performance – Facilitate communication and sharing of best practices
strategies – Serve as an working tool for understanding and
¾Five categories: Manufacturing, Service, Small business, managing performance, planning, training and
Health care Education
Health care, Education assessment
¾These awards may be given each year in each category
¾Many organization who are not interested in award are
using the categories as techniques to measure their TQM
effort
Objective of Benchmarking Process

¾The main objective of any benchmarking activity is: ¾ Six steps of Benchmarking
– To identify key performance measures for each function – Decide what o benchmark
Decide what o benchmark
of a company’s operations
– To measure the internal performance levels of the – Understand current performance
company as well as that of competitors – Plan
– To ensure that its business process goals are set to – Study others
exceed the best quantitative results achieved by leading
– Learn form the data
organizations
– To incorporate best practices throughout the – Use the findings
organization business process
– To reach a level of maturity where benchmarking is an
ongoing part of management system in all areas of the
company
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Advantages Advantages – contd..

¾Satisfying customers' needs and expectations. It helps to ¾It helps to stay informed on the state‐of‐the‐art business
identify what is important to your customers and what will practices
meet their expectations ¾It encourages creative thinking while performing this study
¾It helps to discuss and understand the methods and you will discover different creative ideas used by other
practices needed to reach new goals organizations
¾It provides a means to achieve superior performance ¾It helps in reviewing / studying competitive comparisons
¾It helps to adapt best practices ¾It accelerates process improvement. Performing a study
¾It provides the opportunity to develop and stimulate
¾It provides the opportunity to develop and stimulate will provide information/results from others so that changes
will provide information/results from others so that changes
strategic goals/planning can be implemented quicker
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Hyderabad Campus
¾ Introduction
¾ Benefits of ISO Registration
B fi f ISO R i i
¾ Sector Specific standards
¾ ISO 9001 Requirements
¾ Implementation
¾ Documentation
Chapter 10: Quality Management
¾ Internal Audits
Systems (QMS)
¾ Registration
Introduction
¾ Quality System ¾ Why Quality System?
– Organizational structure, responsibilities,
g , p , – Without quality programs the global economy
procedures, processes and resources for would not exist because it is effective in driving
ld b ff d
implementing quality management down costs and increasing competitiveness
– Companies without quality programs are at risk
– Should be as comprehensive to meet the quality with more emphasis on customer satisfaction and
objectives continuous quality improvement
– For contractual, mandatory, and assessment – To facilitate the exchange of goods and services
purposes demonstration of the implementation of
purposes, demonstration of the implementation of worldwide
ld id
identified elements in the system may be required
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Features of ISO 9000 or

Benefits ANSI/ASQC Q9000
¾ Fewer on‐site audits by customers ¾ The American National Standards Institute and the American
¾ Increased market share
Increased market share Society for Quality Control brought their standards in line with
Society for Quality Control brought their standards in line with
¾ Improved quality, both internally and externally ISO standards when they developed ANSI/ASQC Q90‐Q94 in
(fewer complaints) 1987
¾ Improved product and service quality levels from ¾ The American standards are technically equivalent to the ISO
[suppliers] 9000‐9004 series, the difference being that they incorporate
¾ Greater awareness of quality by employees
Greater awareness of quality by employees American English usage and spelling
¾ A documented formal system ¾ The 9000‐9004 standards were revised in 1994, with the
¾ Reduced operating costs corresponding ANSI/ASQC standards revised and renumbered
to ANSI/ASQC Q9000‐Q9004
Features – contd
contd.,
., Features – contd.,
¾ Two group of standards
¾ ISO 9001 ‐ 9003 or ANSI/ASQC Q9001 ‐ 9003
¾ ISO 9004 / ANSI/ASQC Q9004
/ /
‐ Used for internal quality assurance ‐ Used for external quality assurance purposes in
‐ Guides organization in quality management system contractual situations
‐ Provides guidance on the technical, administrative and human ‐ Activities aimed at providing confidence to the
factors affecting the quality of products or services at all stages of
purchaser that the vendor’s quality system will satisfy the
quality loop, from detection of need to customer satisfaction
lit l f d t ti f dt t ti f ti
‐ Throughout these standards, emphasis is on customer satisfaction,
purchaser’s stated quality requirements are often referred
establishing functional responsibilities and the importance of to as external quality assurance.
assessing potential risks and benefits etc.
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Features – contd., Features – contd.,

¾ ISO 9000 ¾ ISO 9001
– “Quality management and Quality Assurance
Q y g Q y –QQuality Systems –
y y Model for Quality Assurance in
Q y
Standards Guidelines for Selection and Use” Design, Development, Production, Installation and
– Explains fundamental quality concepts, defines key Servicing”,
terms, – The most comprehensive and the most stringent
– Provides guidelines for selecting, using, and standard in the series.
tailoring the ISO 9001, 9002 and 9003 standards. – It contains 20 elements covering the need for an
– It is the roadmap for the use of the entire series effective quality system from the receipt of
effective quality system, from the receipt of
contract through the design/development stage,
and finally the service required after the delivery
Features – contd., Features – contd.,

¾ ISO 9002 ¾ ISO 9003
– “Quality Systems –
Q y y Model for Quality Assurance in
Q y – “Quality Systems –
Q y y Model for Quality Assurance in
Q y
Production, Installation, and Servicing” Final Inspection and Test”
– Addresses the prevention, detection and correction – The least comprehensive and least stringent of the
of problems during production and installation. standards
– It is for the use of organizations that are not – Covers 16 of the 20 elements in 9001.
involved in design. – It is not a quality control system. It addresses only
– This standard addresses 19 of the 20 elements those requirements for the detection and control
covered in the 9001 standard of problems found during final inspection and
testing
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Features – contd., What is ISO 9000:2000?

¾ ISO 9004‐1 ¾ Embraces the use of Plan‐Do‐Check‐Act principles and
– “Quality Management and Quality System
Q y g Q y y g
Process Management
Elements – Guidelines” ¾ Focuses not only on the familiar clauses of the ISO
– Provides guidance for a supplier to use in 9000 series, but extends them to view the
developing and implementing a quality system and organization as a series of interacting processes ‐ the
in determining the extent to which each quality very processes which produce the products and
system element is applicable.
services customers buy.
– It examines each of the elements in greater detail.
It examines each of the elements in greater detail
¾ ISO 9000: 2000 too has a family of standards
– It is useful for internal auditing purposes.
– ISO 9000:2005: Fundamentals and Vocabulary
• Introduces the user to the concepts behind the management
systems and specifies the terminology.
ISO 9000:2000 – Contd.. ISO 9001 Requirements

¾ Family of standards – contd.. 1. Scope: Demonstrate the ability to provide a product
– ISO 9001:2008: Requirements that meets customer and regulatory requirements to
enhance customer satisfaction
• This sets the criteria that has to be met if a company
wish to operate in accordance with the standard 2. Normative Reference: ISO 9000:2005 QMS –
fundamentals and vocabulary are a normative
– ISO 9004:2000 ‐ Guidelines for Performance references that provides applicable concepts and
Improvement definitions
• This is designed to take you beyond ISO 9001 and takes
g y y 3 Terms and Definitions: Product means service
3. Terms and Definitions: Product means service
into account the needs of not only customers, but all
interested parties.
4. QMS:
– Establish, Document, implement and maintain
QMS and continually improve its effectiveness
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ISO 9001 Requirements.. Contd., ISO 9001 Requirements.. Contd.,
– Quality Manual: Shall be established and 5. Management Responsibility:
p Q
maintained that includes scope of the QMS with – Management Commitment towards development,
details and justification for any exclusion. Also the implementation and continual improvement of the
QMS
documented procedures or references to them and
– Customer focus to ensure the requirements are
a description of the interaction among the QMS. determined and met
– Control of documents and Records: Set up a – Quality policy highlights the mission, vision, providing
documental approval process like approve the framework for establishing and reviewing the
documents prior to use, review, update and re‐ objectives
approve as necessary, identify the current – Planning: Quality objectives are measurable and
revisions, availability of current versions etc consistent with the quality policy meeting the
customer’s expectation.

– Responsibility, Authority and Communication and 6. Resource Management:
well defined and communicated within the – Provision of resources to implement and maintain QMS and
organization. Ensure proper communication continually improve its effectiveness, to enhance customer
i ll i i ff i h
channels are established. satisfaction by meeting the requirements. Also provision of
human resources related activities like education, training
– Management Review to be done periodically by the skills and experience. Provision of infrastructure and
QMS. Review inputs shall be results from audits, conducive environment to achieve conformity.
customer feedback, process performance and 7. Product Realization:
product conformity. The output can e any decision
p y p y – Planning of Product realization: The organization shall
Planning of Product realization: The organization shall
and actions related to improvement of the determine appropriate quality objectives and requirements
effectiveness of the QMS and its processes, for the product, the need to establish processes and
improvement of the product related customer documents and to provide resources specific to the product.
Required verification, validation monitoring, measurement
requirements. inspection and test activities specific to the product.
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– Customer related process including the requirements for – Purchasing: The organization shall ensure the
delivery and post delivery activities, non stated requirements are met for the purchasing process.
requirements by customer etc
i b The information of purchasing, verification of the
– Design and development: Planning and control of the purchased product shall be well established.
design and development of the product to be done. The 8. Measurement, Analysis and Improvement:
organization to evolve the design and development
stages, responsibilities and authorities planned output – Customer satisfaction, internal audits, monitoring
etc., to be communicated. and measurement of processes shall ensure the
– The inputs, outputs, documentation review, verification
h i d i i ifi i monitoring and measurement process
monitoring and measurement process
and changes shall be addressed on based on the product – Analysis of data related to customer satisfaction,
specifications as per the requirements of the customer. characteristics and trends of processes and
All these are identified , reviewed, verified, evaluated as products, including opportunities for prevention
appropriate and approved. action suppliers etc shall be included and analysed.
Implementation Implementation.. Contd.,

¾ Implementation: – Select Element Owners: Implementation select
– Top Management commitment
p g g , g
owners among themselves, assigned more that one
– Appoint the management representative: element.
Responsible for coordinating the implementation – Review the present system: Gap analysis
and maintenance of the QMS.
– Write the documents:
– Awareness
– Install the new system:
– Appoint an implementation Team:
– Training: Implementation team, supervisors and – Internal audit: To ensure the system is working
Internal audit To ensure the system is working
internal audit teams to be trained. effectively and to provide management with
– Time Schedule: Divide the implementation into information for the comprehensive management
team and many complete in less than 1.5 years review.
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Documentation Documentation..
Documentation.. Contd.,
¾ System documentation can be viewed as a hierarchy ¾ Policy
g
containing four tiers. – First Tier of documentation
¾ These move from one level to the nest level. – Defines what will be done and why
¾ Changes at one level will seldom affect the levels – Should be clear, precise, practical, easy to
above it, but may affect those below. understand
– Policy manual addresses what will be done to
comply with the standard being used.
¾ Procedure
– Second tier
– Describe the methods that will be used to
implement and perform the stated policies
Documentation..
Documentation.. Contd., Documentation..
Documentation.. Contd.,
– Who should perform specific tasks – Can be in the form of detailed drawing, recipe. Routing
– When the tasks are to be done sheet, specific job function etc.,
– Where documentation will be made showing that – In general, the writing work is carried by the person who
the task was performed. performs the task
– Procedures should be applicable to all areas ¾ Records
– Dictate the strategies that will be used to ensure the – Are a way of documenting that the policies, procedures
quality of the system. and work instructions have been followed.
¾ Work Instructions – May be filled out forms, stamped for approval on a
– Usually department, machine, task or product product, signature and date etc
orientated – Used to provide traceability of actions taken on a
– Spell out how a job will be done. specific product or batch of products
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Internal audit Internal audit

¾ Internal Audits: Objectives of internal audits are – Auditor should be qualified individual, have
– Determine that actual performance conforms to
Determine that actual performance conforms to received training in auditing principles.
the documented QMS – Objective is to collect evidence by examinations of
documents, observation of activities and interviews
– Initiate corrective action activities in response to
– May employ different types of questioning
deficiencies. techniques like open questions “How is the
– Follow up on noncompliance items from previous inspection status identified” and closed questions
audits like “Do
like Do you have a work instruction for this
you have a work instruction for this
– Provide continued improvement in the system operation” also clarifying questions like “What do
through feedback to management you mean by parting line mismatch?” etc.
– Before auditing taking place, audit plan and
– Cause the auditee to think about the process, checklist should be prepared.
thereby encouraging possible improvement.
Registration Certification / Registration

¾ Registration: Quality system registration is the ¾ Certification/registration is when a third party gives
assessment and audit of a quality system by a third written assurance that a product, service, system, process
part, known as registrar. or material conforms to specific requirements.
– Selecting a registrar done through quality council ¾ However, in the ISO 9000 and ISO 14000 context,
of India (QCI) based on qualification and "certification" and "registration" are used interchangeably
experience, certificate recognition, registration and they both mean the same thing.
process, time and cost constraint and auditor ¾ Likewise, the bodies that issue ISO 9000 or ISO 14000
qualifications.
q
certificates are referred to in some countries as
tifi t f dt i ti
– Registration process: Based on 6 basic steps "certification bodies" and in others as "registration
– Application for registration, document review, pre‐ bodies" or "registrars".
assessment, assessment, registration and follow‐up
surveillance.
8
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Other quality systems –

Other quality systems
contd.,
¾ Other systems have been developed that are specific ¾QS9000
p y
to a particular industry such as automotive or – This standard was developed in September
This standard was developed in September
aerospace.
1994 by Chrysler, Ford and General Motors to
¾ These systems use the ISO 9000 as the basic define their fundamental quality expectations
framework and modify it to their needs.
for suppliers of production and service parts
¾ There are currently three other quality systems: and materials.
QS9000, TE 9000 and AS9000.
Q ,
– QS9000 uses the ISO 9001 as its foundation, but
h i f d i b
its requirements are much broader.
Other quality systems – Other quality systems –

contd., contd.,
¾ There are three sections in the QS 9000: ¾ TE‐9000
– Common requirements, which include the exact text of – The Tooling and Equipment Supplement (TE
The Tooling and Equipment Supplement (TE‐9000)
9000)
ISO 9001 and the addition of automotive/heavy trucking
requirements
to QS 9000 released in 1996 was prepared by
– Additional requirements covering production part
representatives of Chrysler, Ford, and General
approval process, continuous improvement and Motors and has the following features:
manufacturing capabilities – It provides an interpretation of QS9000
– Customer‐specific requirements that is unique to requirements as they apply to tooling and
Chrysler Ford and General Motors
Chrysler, Ford, and General Motors. equipment suppliers
i li
¾ Some of the QS9000 specific materials have been – Commonizes quality system requirements from
included in ISO 9001, which is now renamed as ISO Chrysler, Ford, and General Motors
9001: 2000.
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contd., contd.,
¾ TE‐9000 – contd.. ¾ TE‐9000 – contd..
– Promotes the effective use of reliability and
Promotes the effective use of reliability and – Promotes the effective use of reliability and
Promotes the effective use of reliability and
maintainability maintainability
– There are 20 elements in section I and they are – There are 20 elements in section I and they are
essentially the same as QS9000 except for their essentially the same as QS9000 except for their
applicability to tooling and equipment. applicability to tooling and equipment.
– In section II, Qualification Runoff Requirements are – In section II, Qualification Runoff Requirements are
substituted for the Production Part Approval substituted for the Production Part Approval
Process elements of QS9000. Process elements of QS9000.

contd., contd.,
¾ AS‐9000 ¾ AS‐9000 – contd..
– This aerospace industry quality system was
This aerospace industry quality system was – Like ISO 9000, there are 20 elements, and industry
Like ISO 9000, there are 20 elements, and industry
officially released by the Society of Automotive specific interpretations and methodologies are
Engineers in May 1997. identified.
– These additions are accepted aerospace approaches
– Its development and release represents the first
to quality practices and general requirements.
attempt to unify the requirements of NASA,
– Till this day, there are no plans to require third‐party
, y g p
DoD, and FAA while satisfying the aerospace registration.
i t ti
industry’s business needs.
– AS9000 builds on the simplicity of ISO 9000, adding
– The document is identical to ISO 9000 in most insight and addressing the distinctive needs of the
aspects. aerospace industry.
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Accreditation Some of the accreditation bodies

¾ "Accreditation" is not a synonym for "certification" or ¾ British Standards Institution (BSI), London, UNITED KINGDOM
"registration". ¾ Bureau Veritas Quality International (BVQI), London, UNITED
¾ It is the procedure by which an authoritative body KINGDOM
gives formal recognition that a body or person is ¾ Det Norske Veritas Certification (DNV), NORWAY
competent to carry out specific tasks. ¾ Lloyd's Register Quality Assurance Ltd (LRQA), Coventry,
¾ It has been set up in a number of countries to UNITED KINGDOM
evaluate the competence of certification bodies ¾ Quality Management Institute (QMI), Mississauga, CANADA
¾ An accreditation body will accredit ‐
An accreditation body will accredit approve ‐
approve a a ¾ TÜV Cert, Bonn, GERMANY
TÜV Cert Bonn GERMANY
conformity assessment body as competent to carry ¾ Underwriters Laboratories (UL), USA
out ISO 9000 or ISO 14000 certification in specific ¾ National Accreditation Board for Certification Bodies (NABCB),
business sectors. INDIA
Some Indian certification bodies Conclusion
¾ BSI India Pvt. Ltd. ¾ Introduction
¾ Bureau of Indian Standards (BIS) ¾ Benefits of ISO Registration
¾ Sector Specific standards
¾ Indian Register Quality Systems
¾ ISO 9001 Requirements
¾ KPMG Quality Registrar INDIA
¾ Implementation
¾ Lloyd's Register Quality Assurance
¾ Documentation
¾ INTAL Quality Certification Pvt. Ltd. ¾ Internal Audits
¾ Registration
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Hyderabad Campus
¾ Introduction
¾ ISO 14001 Series Standards
¾ Concepts of ISO 14001
¾ Requirements of ISO 14001
– General Requirements
– Environment Policy
– Planning
– Implementation and Operation
Chapter 11: Environment – Checking and Corrective Action
Management Systems (EMS) – Management Review
¾ Benefits of EMS
MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus
Why focus towards Some Info. about Environment

Environment?
Environment ? Management tools and systems
¾ Companies have felt a social responsibility to operate ¾ Following are some environment management tools
q
and maintain safe and adequate environmental y
and systems
protection regardless of whether outside standards – British Standards Institute’s BSI 7750 standards on
required it environmental management
– Eg. Xerox – Its quality culture is reflected in protection of – European Union’s (EU) eco‐label and Eco‐Management and
the environment; through reuse, remanufacture, and Auditing Scheme (EMAS)
recycle – In U.S., technical environmental standards under the
¾ Concern for protection of the environment is
C f i f h i i sponsorship of the American Society of Testing and
sponsorship of the American Society of Testing and
Materials (ASTM) have been published that address the
mandated in the regional and national standards
testing and monitoring associated with emission and
¾ A cost cutting measure for organization effluent pollution controls.
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Birth of ISO 14001 ISO 14001 – Introduction
¾ International Organization for Standards (ISO)’s ¾ They are process standards rather than performance
g
worldwide success for ISO 9000 along with increased standards
¾ Consists of the following modules:
C i f h f ll i d l
emphasis on environmental issues was instrumental – environmental management systems,
to develop environmental management standards – environmental auditing,
¾ In 1991, ISO formed the Strategic Advisory Group on – environmental labeling,
– environmental performance evaluation,
the Environment (SAGE), which led to the formation – life‐cycle assessment, and
of Technical Committee (TC) 207 in 1992, responsible – terms and definitions
for developing the standards ¾ The series is divided into two separate areas:
– The organization evaluation standards and
– The product evaluation standards
ISO 14001 – Organizational ISO 14001 – Organizational

Evaluation Standards Evaluation Standards – contd
contd.,
.,
ISO 14050 covers terms and definitions that are common ¾ ISO 14001 entitled “Environmental Management
to both areas. Systems – Specifications with Guidance for Use”
– Gives the elements that organizations are required to
conform to if they seek registration.
– The standards given below support the EMS.
¾ ISO 14004, entitled “Environmental Management
Systems – Guidelines on Principles, Systems, and
Supporting Techniques”
pp g q
Guidelines ISO 19011
– Provides supplementary material.
– It is for information only and is not to be used for
registration
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ISO 14001 – Organizational ISO 14001 – Product Evaluation

Evaluation Standards – contd
contd.,
., Standards
¾ ISO 14010, ISO 14011 and ISO 14012 are superseded
by ISO 19011:2002 “Guidelines for Quality and
Environmental Management Systems Auditing”
– Provides information on how to plan and conduct an audit.
– Topics included are audit team, audit plan,
implementation, and report
¾ ISO 14031, entitled “Guidelines on Environmental
Performance Evaluation” 14044 Requirements and
14025 Type III Declarations Guidelines
– Presents information on recording information to track
performance.
– This standard is being drafted

contd.,
., Evaluation Standards – contd
contd.,
.,
¾ ISO 14020:2000,“Environmental Labels and Declarations
¾ These standards are under development
– Basic Principles for All Environmental Labelling”
¾ They consist of three categories:
They consist of three categories: –PProvides guidance on the goals and principles that should be
id id th l d i i l th t h ld b
– Environmental Aspects in Product Standards (EAPS), used in all labelling programs.
– Environmental Labelling (EL), and – Product improvement is a desirable benefit and but not the
– Life‐Cycle Assessment (LCA) objective of the standard.
¾ Guide 64:2008, entitled “Environmental Aspects in ¾ ISO 14021: 1999, “Environmental Labelling – Self
Product Standards” Declaration of Environmental Claims: Terms and
– Designed to help writers develop product standards. Definitions”
– Writers should carefully consider the environmental – Applies to organizations that are declaring that their product
consequences when developing criteria, elements, and has an environmental attribute such as being recyclable or
characteristics that go into the standard . energy efficient.
– The standard ensures that this type of labelling is accurate,
verifiable, and not deceptive.
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contd.,
contd.,
.,
¾ ISO 14024, entitled “Environmental Labelling – Practitioners ¾ ISO 14044: 2006, entitled “Life‐Cycle Assessment –
Programs: Guiding Principles, Practices, and Certification Requirements and Guidelines”
p Criteria Programs”
Procedures for Multiple g
– Establishes criteria for third‐party labelling or seal programs. ¾ The
h organization evaluation
l standards
d d are operationall
– These programs determine which products have overall environmental
superiority as compared to other products
and effective because, like ISO 9000, the focus was on
¾ ISO 14025: 2006, entitled “Environmental Labelling and the process rather than the product.
Declarations – Type III Declarations‐ Principles and ¾ The development and acceptance of the product
Procedures.” evaluation standards will be much more difficult. In
¾ ISO 14040: 2006, entitled “Life‐Cycle Assessment – Principles particular scientific knowledge concerning life‐cycle
and Framework”,
Framework” assessment is limited
– Provides an overview of the practice, applications, and limitations of
LCA.
– Life‐cycle assessment attempts to determine the long‐range
environmental effect of a product.
– This assessment is an enormously difficult task because of the
unforeseen and frequently controversial nature of a product’s life cycle
ISO 14001 Concepts ISO 14001 Concepts – contd

contd.,
.,
¾ It provides organizations with the elements for an ¾ The standard is not intended to create non‐tariff
environmental management system (EMS) g an organization’s
barriers or to change g legal
g obligations
g
¾ It describes the requirements for registration and/or ¾ It does not include aspects of occupational health and
self‐declaration of the organization’s EMS safety management, although an organization may
¾ It was written to be applicable to all types and sizes of include these aspects in the documentation
organizations and to accommodate diverse
geographical, cultural and social conditions.
¾ These
Th requirements
i t are based
b d on theth process and d nott
on the product.
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Requirements of ISO 14001 –

Requirements of ISO 14001 contd.,
contd.,
¾ The standard is divided in to six parts and has a total of ¾ 4.2 Environmental policy
18 requirements – Organization’s policy statement should be based on its
mission and values
mission and values
¾ 4.1 General Requirements – The statement must be relevant to the organization’s nature,
scale, and environmental impact of its activities, products,
– Organization shall establish and maintain an and services.
environmental management system – Included is a commitment to continual improvement,
prevention of pollution, and adherence to appropriate
– Includes policy, planning, implementation and regulations and commitments.
operation, checking and corrective action and – Should provide a framework for setting and reviewing
environmental objectives and targets
environmental objectives and targets.
management review.
t i – Senior management should document, implement, maintain,
– Organization may wish to include in this narrative a and communicate to all employees the policy statement
brief description of the company. – An additional requirement is that the policy must be
available to the public
Requirements of ISO 14001 – Requirements of ISO 14001 –

contd., contd.,
¾ An initial environmental review is suggested which ¾ 4.3 Planning
includes: Identification of – This area contains four elements:
• environmental aspects,
– legislative and regulatory requirements
• legal and other requirements,
– Environmental aspects of its activities, products and • objectives and targets, and
services that can have sufficient impact/liabilities • environmental management programs.
– Existing management policies and procedures – 4.3.1 Environmental aspects
• The standard requires that environmental aspects of an
– Existing activities with suppliers organization’s activities, products and services that it can
control and influence be identified in order to determine
t l d i fl b id tifi d i d t d t i
– Evaluation of past performance with regard to the above the environmental impact.
– Feedback from investigation of previous incidents of non • Those aspects that relate to significant impacts shall be
considered in setting objectives.
compliance • This information must be kept current.
– Opportunities for competitive advantage, benchmarking
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contd., contd.,
– 4.3.1 Environmental aspects – contd., ¾ ISO 14004 lists nine issues that can be considered in an
• Environment is defined as the global surroundings in
g g organization’s procedures for the identification of aspects
which an organization operates and includes air, water, and their impacts:
land, natural resources, flora, fauna, humans and their
interaction. – What are the environmental aspects of the
• Environmental aspect is defined as an element of an organizations activities, products and services?
organization’s activities, products services that can
interact with the environment. Examples are wastewater – Do the organization’s activities, products or services
discharge, air emissions, and energy usage. create any significant adverse environmental impacts?
• Environmental, impact is defined as any change, whether
E i t l i t i d fi d h h th – Does the organization have a procedure for evaluating
adverse or beneficial, wholly or partially resulting from an
organizations activities, products or services. Examples the environmental consideration?
are impacts on habitat, water supply and soil erosion. – Does the location of the organization require special
environmental consideration?
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contd., contd.,
– How will any intended changes or additions to – 4.3.2 Legal and other requirements
,p
activities, products or services affect the • The standard requires the organization to have a
procedure to identify and have access to all legal and
environmental aspects and their associated impacts? other requirements to which it subscribes, such as
– How significant or severe are the potential industry codes of practice and non‐regulatory guidelines.
• The number and complexity of regulations throughout
environmental impacts if a process failure occurs? the world can make the procedure quite complex;
– How frequently will the situation arise that could lead however, the organization need only identify those
requirements that are applicable to the environmental
p
to the impact? aspects of its activities products and services
aspects of its activities, products, and services.
– What are the significant environmental aspects, • Examples of laws that might apply are Clean Air Act (U.S.),
Public Health Act (U.K.), and Chemical Products Act
considering impacts ,likelihood, severity and frequency (Sweden).
– Are the significant environmental impacts local,
regional or global in scope?
24 7 November 2013 MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus 25 MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus
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contd., contd.,
– 4.3.3. Objectives and Targets – 4.3.4 Environmental Management Program
• An environmental objective is defined as an overall environmental • The organization shall establish and maintain a program
goal arising from the environmental policy that on organization sets
goal arising from the environmental policy that on organization sets for achieving the objectives and targets.
for achieving the objectives and targets.
itself to achieve and which is quantified where practical. • It shall include designation of the responsible function,
• An environmental target is defined as a detailed performance team or individual and a time frame for achievement
requirement, quantified where practical and applicable to the ¾ 4.4 Implementation and Operation
organization or parts thereof, that arises from the environmental – This area contains seven elements:
objectives and needs to be set and met in order to achieve those
objectives. • structure and responsibility;
• The organization shall establish and maintain these objectives and • training’ awareness, and competency;
targets and they shall be consistent with the policy statement, • communication; ;
especially in regard to the prevention of pollution.
i ll i d t th ti f ll ti
• An example of an objective for a paper manufacturer would be
• EMS documentation;
“Reduce tree cutting”, and some targets would be “Increase chipper • document control;
yield to 90% by 1999” and “Increased recycled material to 25% by • operational control; and
2001. • emergency preparedness and response.

contd., contd.,
– Structure and Responsibility – Training, Awareness and Competency
• Training needs should be evaluated on a regular basis,
• Roles, responsibilities, and authorities shall be defined,
, p , , usually annually to ensure their effectiveness
usually annually, to ensure their effectiveness.
documented, and communicated for all personnel • There are two types of training: general awareness and job
affecting the EMS. competency.
• They must be given the freedom and authority to taken • General awareness includes the importance to
the necessary actions. conformance to the EMS, the relationship of significant
• A management representative must be appointed and environmental impacts to the employees work activities,
given the authority to ensure that this standard is being employee roles and responsibilities, and potential
consequences of failing to follow specific operating
met and to periodically report to senior management the procedures.
status of EMS with the aim of improvement.
f h h f • Personnel performing tasks that can cause significant
• Senior management must provide the resources in terms environmental impacts shall be competent based on
of people, money and technology. education, training, or experience.
• Records must be maintained to document that the training
requirements have been met.
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contd., contd.,
– Communication – Document control
• The standard requires that procedure shall be established • This element requires that procedures should be
and maintained for internal communication among all
and maintained for internal communication among all established and maintained to control all EMS documents
established and maintained to control all EMS documents.
employees and receiving, documenting, and responding to • Examples are blueprints, test procedures, work instructions
relevant external communication from interested parties. and of course, the EMS manual.
• In addition, the organization shall consider processes for • Provision must be made for the review and approval of
external communication of its environmental aspects and documents for adequacy before they are issued and after
record its decision to implement these processes or not. any changes.
– EMS Documentation • The purpose of document control is to ensure that
• Processes and procedures need to be documented and
Processes and procedures need to be documented and appropriate and current issues of documents are in place at
appropriate and current issues of documents are in place at
kept current. all locations.
• The organization must show that it is actually practising • Obsolete documents must be removed and destroyed or
what the documentation states. stored in a safe place if retention for legal purposes is
• In addition, the documentation must show the interaction necessary.
of the elements and provide direction to related documents • Documents shall be legible, dated, readily identifiable and
such as flow charts, check sheets, and drawings. easily located.

contd., contd.,
– Operational control – Emergency Preparedness and Response
• This element aligns operations and activities with the – Procedures are required to identify and respond to
identified significant environmental aspects
identified significant environmental aspects, potential accidents and emergency situations
potential accidents and emergency situations.
environmental policy, and environmental objectives and – In addition, the procedures should prevent or mitigate
targets. the environmental impact of these accidents and
• The organization shall plan these activities to ensure that emergency situations.
the procedures: – These procedures shall be reviewed and revised, if
– Cover situations where their absence could lead to necessary, especially after an occurrence.
deviations from the policy and the objectives and – Where practical, the organization should test the
targets
g procedures for effectiveness
procedures for effectiveness
– Stipulate operating criteria ¾ 4.5 Checking and Corrective action
– Cover the identification of environmental aspects of – This area contains four elements:
goods and services and communicate relevant
procedures and requirements to supplier and • monitoring and measuring,
contractors • non‐conformance and corrective and preventive action,
• records and EMS audit.
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contd., contd.,
– Monitoring and Measuring – Non‐conformance and Corrective and Preventative Action
– The organization is required to monitor and measure • Procedures are required to define responsibility and
the key characteristics of its operations and activities
the key characteristics of its operations and activities authority for
authority for
in order to asses its performance in meeting – handling and investigating non‐conformance
environmental operations and targets. – taking action to mitigate any impacts, and
– An example of a key characteristic is energy – initiating corrective and preventive action
consumed, and the measurement method is kilowatts
and gas/therms. • Any action taken to eliminate the causes should be
– Measuring equipment is of little value if it is not appropriate to the magnitude of the problem and
accurate or functioning properly
accurate or functioning properly. commensurate with the environmental impact. In
addition, any changes to the procedures should be
ddi i h h d h ld b
– Procedure must be in place to control, calibrate, and implemented and recorded.
maintain all EMS equipment whether it belongs to the
organization, employee, or an outside agency.
– In addition, procedures are required to periodically
evaluate compliance to relevant regulations.

contd., contd.,
– Records
• Procedures are required for the identification, maintenance, and ¾ 4.6 Management Review
disposition of environmental records such as training, audits and – Management review and revision, if applicable, is required to
reviews.
reviews ensure the continuing suitability, adequacy, and effectiveness
h i i i bili d d ff i
• Records shall be legible, identifiable and traceable to the activity, of the EMS.
product and service. – Reviews should make use of information from audit reviews,
• They should be readily retrievable; protected against damage, performance information changing circumstances, and the
deterioration, and loss; and provided with retention times. commitment to continual improvement.
– EMS Audit
• The purpose of this audit is to ensure that the EMS conforms to
¾ EMS Benefits
plans and is being properly implemented and maintained.
p gp p y p – Global
• Audit information should be distributed to senior management to • facilitate trade and remove trade barriers,
assist in the management review process. • improve environmental performance of planet earth, and
• Audit procedures should cover the scope, frequency and • build consensus that there is a need for environmental
methodologies, and responsibilities and requirements for management and a common terminology for EMS
conducting audits and reporting results.
• The audit schedule should be based on the importance of the
element and the results of the previous audits.
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Requirements of ISO 14001 –

contd., Conclusion
¾ EMS Benefits – contd.. ¾ Introduction
– Organizational ¾ ISO 14001 Series Standards
• Assuring customers of a commitment to environmental
A i t f it tt i t l
management ¾ Concepts of ISO 14001
• Maintaining a good public/community relations image ¾ Requirements of ISO 14001
• Satisfying investor criteria and improving access to capital
– General Requirements
• Obtaining insurance at reasonable cost
• Increasing market share that results from a competitive – Environment Policy
advantage – Planning
• Reducing incidents that result in liability
Reducing incidents that result in liability
• Improving defence posture in litigation – Implementation and Operation
• Conserving input materials and energy – Checking and Corrective Action
• Facilitating the attainment of permits and authorization – Management Review
• Improving industry / government relations
¾ Benefits of EMS
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Scope
BITS Pilani
Hyderabad Campus
¾ Introduction
¾ QFD Team
QFD T
¾ Benefits Of QFD
¾ Voice Of The Customer
¾ House Of Quality
Chapter 12: Quality Function ¾ Building A House Of Quality

Deployment (QFD) ¾ QFD Process
¾ Summary
Introduction QFD Team

¾ Dr. Mizuno, Prof. Emeritus ¾ Significant Amount Of Time
¾ Mitsubishi Heavy Industries
Mitsubishi Heavy Industries
– Communication
– Kobe Shipyards, 1972
¾ Toyota Minivans (1977 Base) ¾ Two Types Of Teams
– 1979 ‐ 20% Reduction In Start‐Up Costs
– New Product
– 1982 ‐ 38%
– 1984 ‐ 61% – Improve Existing Product
¾ Dr. Clausing, Xerox, 1984 ¾ Marketing, Design, Quality, Finance, Production, Etc.
¾ Any Manufacturing Or Service Industry
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Benefits of QFD Benefits of QFD… Contd.,
¾ The following are the benefits of QFD: ¾ Customer Driven
– Customer Driven – Creates Focus On Customer Requirements
– Reduces Implementation Time – Uses Competitive Information Effectively
– Promotes Teamwork – Prioritizes Resources
– Identifies Items That Can Be Acted On
Id tifi It Th t C B A t d O
– Provides Documentation
– Structures Resident Experience/Information
Benefits of QFD… Contd., Benefits of QFD… Contd.,
¾ Reduces Implementation Time ¾ Promotes Teamwork
– Decreases Midstream Design Change – Based On Consensus
– Limits Post Introduction Problems
– Creates Communication At Interfaces
– Avoids Future Development Redundancies
– Identifies Actions At Interfaces
– Identifies Future Application Opportunities
Identifies Future Application Opportunities
– Creates Global View‐Out Of Details
– Surfaces Missing Assumptions
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Benefits of QFD… Contd., Voice Of The Customer
¾ Provides Documentation ¾ Driving Force Behind QFD
– Customer Dictates Attributes Of Product
Customer Dictates Attributes Of Product
– Documents Rationale For Design
¾ Customer Satisfaction
– Is Easy To Assimilate – Meeting Or Exceeding Customer Expectations
– Adds Structure To The Information – Customer Expectations Can Be Vague & General In
Nature
– Adapts To Changes (Living Document)
Adapts To Changes (Living Document)
– Customer Expectations Must Be Taken Literally, Not
– Provides Framework For Sensitivity Analysis Translated Into What The Organization Desires
Collecting Customer
Types Of Customer Information
Information
¾ What Does Customer Really Want ? ¾ Solicited, Measurable, Routine
• Customer & Market Surveys, Trade Trials
Customer & Market Surveys Trade Trials
¾ What Are Customer’s Expectations ? ¾ Unsolicited, Measurable, Routine
¾ Are Customer’s Expectations Used To Drive Design • Customer Complaints, Lawsuits
¾ Solicited, Subjective, Routine
Process ?
• Focus Groups
¾ What Can Design Team Do To Achieve Customer
Wh C D i T D T A hi C ¾ Solicited, Subjective, Haphazard
Satisfaction? • Trade & Customer Visits, Indep. Consultants
¾ Unsolicited, Subjective, Haphazard
• Conventions, Vendors, Suppliers
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House Of Quality Building A House Of Quality
¾ List Customer Requirements (What’s)
¾ List Technical Descriptors (How’s)
¾ Develop Relationship (What’s & How’s)
¾ Develop Interrelationship (How’s)
¾ Competitive Assessments
C titi A t
¾ Prioritize Customer Requirements
¾ Prioritize Technical Descriptors
Steps Steps–
Steps– contd.,
¾ Filling in the Matrix ¾ How the product can be changed in performance to better meet
¾ Step 1: Identify the customer(s) (both internal and external) customer needs should be determined
¾ Consumers, production (manufacturing), regulators, marketing/ / ¾ Step 5: Determine relationship of engineering design
distribution/ Sales requirements to customer needs. Indicate the relationship and
¾ Step 2: Determine the customer need. Customer requirements the strength of the relationship between the engineering
are the definition of a project requirements and the customer needs. If there are no strong
¾ The “what’s” can be listed in primary, secondary, and tertiary engineering specifications for a given customer need, there is a
sequence problem. Possible engineering requirement responses for the
customer need should be reconsidered.
t d h ld b id d
¾ List needs in the customer’s own voice
¾ Step 6: Perform or execute competitive benchmarking. The
¾ Step 3: Determine the relative importance or the priority of the
objective is to determine how the customer perceives the
customer needs (scale of 1‐5 or 1‐10)
competition’s ability to meet each of their needs
¾ Step 4: Translate customer needs into measurable engineering
requirements (HOWs).
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11/7/2013
Steps–
Steps– contd., Steps–
Steps– contd.,
¾ Step 7: Rank the technical difficulty of each engineering ¾ Step 10: Select areas for improvement. QFD matrix is analyzed to
requirement. A pair wise comparison can be used to determine define final design targets and to identify areas that need further
ranking. The technical difficulty of achieving each customer need concentrated effort. To make these decisions, the importance
in terms of the changes defined by the engineering requirement rating of the customer needs must be considered in conjunction
should also be defined with the qualitative benchmarking. This analysis leads to the
¾ Step 8: Correlate technical relationships to determine choice of the most critical engineering requirements through the
interrelationships of design requirements. To fill the roof of the relationship matrix
house. Technical characteristics may be competing rather than
complementing
¾ Step 9: Set engineering requirement targets for the product
design. This can be done by comparing the requirement
measurements of each of the benchmarking products and
positioning the new product among these specifications
QFD Matrix Customer Requirements (What’s)
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Technical Descriptors (How’s) L - Shaped Diagram
Relationship Matrix Correlation Matrix
6
11/7/2013
Customer Competitive Technical Competitive

Assessment Assessment
Prioritized Customer
Requirements
• Importance Rating
• T
Target Value
tV l
• Scale‐Up Factor
• Sales Point
• Absolute Weight & Percent
– ((Importance Rating)
p g)
– (Scale‐Up Factor)
– (Sales Point)
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11/7/2013
Prioritized Technical Descriptors
¾ Degree Of Difficulty
¾ Target Value
Target Value
¾ Absolute Weight & Percent
n
a = ∑ R c R is Relationship Matrix
j ij i
i =1
c is Customer Importance
¾ Relative Weight & Percent
n
b = ∑ R d R is Relationship Matrix
j ij i
i =1 c is Customer Absolute
Weights
QFD Process Phase I- Product Planning
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Phase II-
II- Part Development Phase III-
III- Process Planning
Phase IV
IV-- Production Planning An Example: Refrigartory Product
9
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QFD Summary
¾ Orderly way of obtaining information & presenting it
¾ Shorter product development cycle
Shorter product development cycle
¾ Considerably reduced start‐up costs
¾ Fewer engineering changes
¾ Reduced chance of oversights during design process
¾ Environment of teamwork
¾ Consensus decisions
¾ Preserves everything in writing
MM ZG522 ‐ Total Quality Management 38
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BITS Pilani Scope

Hyderabad Campus
¾ Introduction
¾ Rationale for implementation
Rationale for implementation
¾ Benefits
¾ Design for Six Sigma (DFSS)
¾ Teams
¾ Communication models
Communication models
¾ Implementation
Chapter 13: Quality by Design ¾ Tools
¾ Misconceptions and Pitfalls
Introduction
¾ Quality by design is the practice of using a ¾ QUALITY BY DESIGN :
multidisciplinary team to conduct thinking, product – Require the major function to be performed at the same
design and production planning all at one time
design and production planning all at one time.
time.
¾ It is also known as concurrent engineering , simultaneous
– Engineers, production and business as well as suppliers and
engineering or parallel engineering.
customers brainstorm together to develop that consider all
¾ Quality by design is a team of specialist who facts of functionality as well as its costs.
simultaneously design and develop a product to ensure
– Better quality product are manufactured for less cost with
ease of producibility and customer satisfaction.
shorter time to market.
¾ SEQUENTIAL ENGINEERING : In the past the major
S Q G G h h j
function within an organization would complete their task – Communication flows better.
by “throwing it over the wall” to then next department in – For eg. It would be difficult for the electrical engineers to
the sequence and would not be concerned with any know why the structural engineers design section in a
internal customer problems that may arise. component that would require special processes in order to
run wires through the product.
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Product development flow

Product development time line
diagram
Rationale for implementation Benefits

¾ Product design for all industries are becoming more crucial ¾ Customer trends to drive the market demand and an
to any product’s marketability.
organization should have the ability to react 6 months
¾ In past customers have very few brand to choose from, so
In past customers have very few brand to choose from so
price was dictated by the cost of production + reasonable before the competition can increase the profits.
profit. ¾ Timing is important, but customer will switch brands if
¾ Design changes that occur late in the product they get a similar product of same quality for less
development cycle cause increased lead times and thus
higher cost. money.
¾ Quality by design helps control design changes by shifting ¾ Quality by design provides manufactures with the tool
all the design to the beginning of the project rather than
ll th d i t th b i i f th j t th th and communication and management techniques
throughout its whole life cycle
¾ This increase the time required for initial design and required to develop product in a timely and cost‐
increase the future benefits. efficient manner from the beginning and throughout a
¾ For eg. A change made during the design stage could cost product’s life.
up to 10 times
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Benefits Design for Six Sigma (DFSS)

– Faster product development. ¾ Certain organizations started adopting DFSS to reduce
defects, reduced cycle time, better reliability, higher
– Better quality. customer satisfaction and market share.
customer satisfaction and market share.
– Less work in progress. ¾ The roadmap is as follows
– Fewer engineering changes order. – Define the project goals and customer deliverables
– Increased productivity. – Measure and determine customer needs and spec.
– Analyze to generate innovative concepts and evaluate
– According to national institute of standers and and select the best concept for the design
technology implementation of QbD method can reduce – Design details, optimize the design, and plan for design
Design details, optimize the design, and plan for design
engineering changes by 65% to 90%. verification and validation. This phase often requires
– This decreases cut product development times by 30%‐ simulation
70%,reduces time to market by 90% and increases – Verify and validate the design reliability and capability to
meet the customer requirements.
quality by as much as 200% to 600%
Teams Communication Models

¾ The team include product developers from marketing,
research and development ,design production, test and
logistics.
¾ Supplier and customer should also be included in the team.
¾ The implementation of quality by design team requires top‐
down commitment.
¾ Team members should be committed to the projects not
with their functional departments.
¾ There should be better communication and interaction
between the team members.
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Communication Models Leadership skill
¾ Use technology that fits the situation.
¾ Communicate effectively.
¾ Build a community based on high quality based on
high quality values among members.
¾ Establish goals, expectations, purpose and vision.
Establish goals, expectations, purpose and vision.
¾ Focus on result.
¾ Coordinates across boundaries and organizational.
Implementation Tools
¾ The easiest way for an organization to progress
¾ CAD and CAM are the bridge between design and
towards a quality by design environment is simply to
gather together everyone. rapid prototypes
rapid prototypes.
¾ Allow communication channel to open and meet ¾ CAD can be converted to tool path to geometry and
face to face with internal and external customers and then downloaded directly to a computer numerically
suppliers. controlled machine(CNC).
¾ There should be a regular meeting at set intervals to ¾ A model then be cut for design team to evaluate and
renew communication power
renew communication power. discuss in terms of design options
discuss in terms of design options.
¾ Collocating the team members this will increase the
communication between project manager and team
and thus simulates continuous improvement
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Organization tools Product development tools

¾ Computer networks.
¾ CAD software.
¾ ISO 9000
ISO 9000
¾ Solid modeling software.
¾ ISO 14000
¾ Finite element analysis software.
¾ Total productive maintenance.
¾ Parametric analysis software.
¾ Quality function deployment
¾ Rapid prototyping techniques.
¾ Information technology
I f i h l
¾ Failure mode and effect analysis
¾ Electronic meeting software
¾ Design for manufacturing and assembly
¾ Enterprise resources planning software
¾ Design for maintainability or serviceability
Production tools Statistical tools
¾ Robotics ¾ Statistical tolerance stack up analysis is performed to prevent any
¾ Computer aided manufacturing f
functional or assembly problem due to incorrect tolerances
i l bl bl d i l
¾ Reliability and life data analysis is performed to estimate measures
¾ Computer numerical controlled tools
such as Mean Time Between Failure which is the time period by
¾ Continuous process improvement which 10% of the parts or systems will fail.
¾ Just in time production ¾ Response surface methods used to optimize the process
p p p
¾ Virtual manufacturing software ¾ Design of Experiment used to identify critical parameters.
¾ Agile or lean manufacturing ¾ Statistical process control used to monitor process variations and
¾ Advanced measurement and verification like CMMs correct problems before producing scrap.
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Misconceptions and Pitfalls Summary

¾ Misconceptions:
¾ Introduction
– QBD is not simultaneous design and production.
– QBD is not a quick fix or magical formula for success.
QBD i i k fi i lf l f ¾ Rationale for implementation
Rationale for implementation
– QBD does not require multiple tests of the product to be ¾ Benefits
conducted until the optimum design is achieved.
¾ Design for Six Sigma (DFSS)
– QBD is often confused with the inspection techniques
used in TQM. ¾ Teams
¾ Pitfalls: ¾ Communication models
Communication models
– Do not eliminate the sequential engineering completely
in the name of QBD ¾ Implementation
– Avoid tight tolerances, changing product definition and ¾ Tools
specification during design phase, business as usual, ¾ Misconceptions and Pitfalls
automating product development phase.
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BITS Pilani Learning Objectives

Hyderabad Campus
¾ To understand the use of Failure Modes Effect
y ( )
Analysis (FMEA)
¾ To learn the steps to developing FMEAs
¾ To summarize the different types of FMEAs
¾ To learn how to link the FMEA to other Black Belt
tools
¾ To perform an exercise to actually perform
Chapter 14: Failure Modes Effect an FMEA
Analysis (FMEA)
How is it useful? Application Examples

¾ Allows us to identify areas of our process that most ¾ Manufacturing: A manager is responsible for moving a
p
impact our customers g p y
manufacturing operation to a new facility. He wants to
be sure the move goes as smoothly as possible and
¾ Helps us identify how our process is most likely to fail
that there are no surprises.
¾ Points to process failures that are most difficult to
¾ Design: A design engineer wants to think of all the
detect
possible ways a product he is designing could fail so
that he can build robustness into the product.
that he can build robustness into the product.
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Quality, Reliability and Failure

Quality and Reliability Prevention
¾ Quality is a relative term often based on customer ¾ Traditionally quality activities have focused on
p
perception or the degree to which a product meets
p g p g g
detecting manufacturing and material defects that
customer expectations cause failures early in the life cycle
¾ Manufacturers have long recognized that products
can meet specifications and still fail to satisfy ¾ Today, activities focus on failures that occur beyond
customer expectations due to: the infant mortality stage
– Errors in design
– Flaws induced by the manufacturing process ¾ Emphasis on Failure Prevention
– Environment
– Product misuse
– Not understanding customer wants/needs
Failure Mode & Effect Analysis

The Bathtub Curve (FMEA)
¾ FMEA is a systematic method of identifying and
p
preventing system, product and process problems
g y ,p p p
before they occur
¾ FMEA is focused on preventing problems, enhancing
safety, and increasing customer satisfaction
¾ Ideally, FMEA’s are conducted in the product design or
process development stages, although conducting an
FMEA on existing products or processes may also yield
benefits
2
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FMEA/FMECA History FMEA is a Tool

¾ The history of FMEA/FMECA goes back to the early ¾ FMEA is a tool that allows you to:
1950s and 1960s. – Prevent System, Product and Process problems
y , p
– U.S. Navy Bureau of Aeronautics, followed by the Bureau of before they occur
Naval Weapons: – reduce costs by identifying system, product and
– National Aeronautics and Space Administration (NASA):
process improvements early in the development
¾ Department of Defense developed and revised the
cycle
MIL‐STD‐1629A guidelines during the 1970s.
– Create more robust processes
¾ Ford Motor Company published instruction manuals
Ford Motor Company published instruction manuals
– Prioritize actions that decrease risk of failure
in the 1980s and the automotive industry collectively
– Evaluate the system, design and processes from a
developed standards in the 1990s.
new vantage point
¾ Engineers in a variety of industries have adopted and
adapted the tool over the years.
FMEA Evaluate Failure Modes

What Is A Failure Mode? and Effects
¾ A Failure Mode is: Failure
Mode
Specific Cause Effect of Failure Likeliness
of Failure
Detectability Severity of Risk
of Failure Failure Priority
Gaswill not Spring broke Explosion resulting in 3 5 10 150
– The way in which the component, subassembly,
The way in which the component subassembly shut off preventing
p g valve
from closing
property
p p y damage g
and/or serious injury
product, input, or process could fail to perform its
intended function Likeliness of Failure: 1-10 with 10 representing most likely
Detectability of Failure: 1-10 with 10 representing most difficult
• Failure modes may be the result of upstream Severity of Failure: 1-10 with 10 representing most severe
Risk Priority = (Likeliness of Failure) X(Detectability of Failure) X
operations or may cause downstream operations to (Severity of Failure)
fail
– Things that could go wrong What
– Failure Modes & Effects Analysis is a methodology
to evaluate failure modes and their effects in
designs and in processes.
3
11/7/2013
FMEA FMEA
¾Why ¾How
– Methodology that facilitates process improvement
Methodology that facilitates process improvement – Team identifies potential failure modes for design
Team identifies potential failure modes for design
– Identifies and eliminates concerns early in the functions or process requirements
development of a process or design • They assign severity to the effect of this failure mode
• They assign frequency of occurrence to the potential
– Improve internal and external customer satisfaction cause of failure and likelihood of detection
– Focuses on prevention – Team calculates a Risk Priority Number by
– FMEA may be a customer requirement multiplying severity times frequency of occurrence
multiplying severity times frequency of occurrence
times likelihood of detection
– FMEA may be required by an applicable
– Team uses ranking to focus process improvement
Quality System Standard
efforts
What tools are available to meet

Benefits of FMEA our objective?
¾ Contributes to improved designs for products and
¾ Benchmarking
processes.
– Higher reliability
Higher reliability ¾ Customer warranty reports
Customer warranty reports
– Better quality
¾ Design checklist or guidelines
– Increased safety
– Enhanced customer satisfaction ¾ Field complaints
¾ Contributes to cost savings. ¾ Internal failure analysis
– Decreases development time and re‐design costs
– Decreases warranty costs
Decreases warranty costs ¾ Internal test standards
Internal test standards
– Decreases waste, non‐value added operations ¾ Lessons learned
¾ Contributes to continuous improvement
Cost benefits are expected to come from the ability to identify ¾ Returned material reports
failure modes earlier in the process, when they are less ¾ Expert knowledge
16
expensive to address.
MM ZG522 ‐ Total Quality Management 17 MM ZG522 ‐ Total Quality Management
BITS Pilani, Hyderabad Campus BITS Pilani, Hyderabad Campus
4
11/7/2013
What are possible outcomes? FMEA Form
¾ Actual/potential failure modes
¾ customer and legal design requirements
¾ duty cycle requirements
¾ product functions
¾ key product characteristics
yp
¾ Product Verification and Validation
Severity evaluation criteria Occurrence evaluation criteria
5
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Detection evaluation criteria FMEA

¾ A structured approach to:
– Identifying the ways in which a product or process
Identifying the ways in which a product or process
can fail
– Estimating risk associated with specific causes
– Prioritizing the actions that should be taken to
reduce risk
– Evaluating design validation plan (product) or
Evaluating design validation plan (product) or
current control plan (process)
When to Conduct an FMEA History of FMEA

¾Early in the process improvement investigation ¾ First used in the 1960’s in the Aerospace industry
during the Apollo missions
¾When new systems, products, and processes are
¾Wh t d t d
being designed ¾ In 1974, the Navy developed MIL‐STD‐1629 regarding
the use of FMEA
¾When existing designs or processes are being ¾ In the late 1970’s, the automotive industry was driven
changed by liability costs to use FMEA
¾When carry‐over designs are used in new ¾ Later, the automotive industry saw the advantages of
applications
l using this tool to reduce risks related to poor quality
¾After system, product, or process functions are
defined, but before specific hardware is selected or
released to manufacturing
6
11/7/2013
The FMEA Form Types of FMEAs

¾Design
Analyzes product design before release to
–Analyzes product design before release to
production, with a focus on product
function
–Analyzes systems and subsystems in early
concept and design stages
¾Process
Used to analyze manufacturing and
–Used to analyze manufacturing and
assembly processes
Identify failure modes Identify causes of the Prioritize Determine and

and their effects failure modes assess actions
and controls
FMEA: A Team Tool FMEA Procedure

¾A team approach is necessary. 1. For each process input (start with high value inputs),
¾Team should be led by the Black Belt a responsible
¾Team should be led by the Black Belt, a responsible y p g
determine the ways in which the input can go wrong g
manufacturing engineer or technical person, or other (failure mode)
similar individual familiar with FMEA. 2. For each failure mode, determine effects
¾The following should be considered for team – Select a severity level for each effect
members:
3. Identify potential causes of each failure mode
– Design Engineers
Design Engineers – Operators
– Select an occurrence level for each cause
– Process Engineers – Reliability
– Materials Suppliers – Suppliers 4. List current controls for each cause
– Customers – Select a detection level for each cause
7
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FMEA Procedure (Cont.) FMEA Inputs and Outputs

5. Calculate the Risk Priority Number (RPN)
6 Develop recommended actions, assign responsible
6. D l d d ti i ibl
persons, and take actions
– Give priority to high RPNs
– MUST look at severities rated a 10
7. Assign the predicted severity, occurrence, and
detection levels and compare RPNs
Severity, Occurrence,
Failure Modes and Effects and Detection
¾The relationship between failure modes and effects ¾Severity
y
is not always 1 to 1. – Importance of the effect on customer requirements
Importance of the effect on customer requirements
• Often can’t do anything about this
¾Occurrence
– Frequency with which a given cause occurs and
creates failure modes
¾Detection
– The ability of the current control scheme to detect
or prevent a given cause
8
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Rating Scales Rating Scales

¾ There are a wide variety of scoring “anchors”, both ¾ Severity
q
quantitative or qualitative
q – 1 = Not Severe, 10 = Very Severe
1 = Not Severe 10 = Very Severe
¾ Two types of scales are 1‐5 or 1‐10 ¾ Occurrence
¾ The 1‐5 scale makes it easier for the teams to decide – 1 = Not Likely, 10 = Very Likely
on scores ¾ Detection
¾ The 1‐10 scale allows for better precision in estimates – 1 = Likely to Detect, 10 = Not Likely to Detect
and a wide variation in scores (most common)
and a wide variation in scores (most common)
Risk Priority Number (RPN) FMEA Example
¾ RPN is the product of the severity, occurrence, and ¾ We will conduct an FMEA on the truck stop example
d t ti
detection scores. we used to create a C&E Matrix
we used to create a C&E Matrix
¾ A Black Belt wants to improve customer satisfaction
with the coffee served at the truck stop
¾ The process map and completed C&E matrix follow
9
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Truck Stop Coffee Process Map Truck Stop Coffee C&E Matrix
Temp of
Coffee Taste Strength Process Outputs
8 10 6 Importance
Process Step ----- Process input ----- --------- Correlation of Input to Output --------- --------- Total ---------
0
Clean Carafe 0 3 1 36
Fill Carafe with Water 0 9 9 144
Pour Water into Maker 0 1 1 16
Place Filter in Maker 0 3 1 36
Put Coffee in Filter 0 9 9 144
Turn Maker On 3 1 0 34
Select Temperature Setting 9 3 3 120
Receive Coffee Order 0 0 1 6
Pour Coffee into Cup 3 1 3 52
Offer Cream & Sugar 3 9 3 132
Complete Transaction 1 1 1 24
Say Thank You 0 0 0 0
0
0
0
0
0
0
0
0
0
0
0
We will focus on one of the two steps with the highest scores
Step 1: For each input,

input, determine Step 2: For each failure mode,
the potential failure modes identify effects and assign severity
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11/7/2013
Step 3: Identify potential causes of Step 4: List current controls for

each failure mode and assign score each cause and assign score
Step 6: Develop recommended

Step 5: Calculate RPNs
actions, assign and take actions
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Step 7: Assign predicted severity,

occurrence & detection levels compare rpn Summary
¾An FMEA:
– Identifies the ways in which a product or process can fail
y p p
– Estimates the risk associated with specific causes
– Prioritizes the actions that should be taken to reduce
risk
¾FMEA is a team tool
¾There are two different types of FMEAs:
– Design
– Process
¾Inputs to the FMEA include several other Black Belt
tools
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11/7/2013
BITS Pilani Scope

Hyderabad Campus
¾Introduction
¾Product Safety Law
¾Product liability Law
¾Defences
¾Financial loss
¾Financial loss
¾The future of products liability
Chapter 15: Product Liability
¾Prevention
Introduction Introduction – contd.,

¾ Competition among manufacturers is significant ¾ The number of product accidents is 50 millions per
g p g
motivating factor for providing new and modified y
year
products. ¾ The reasons for product injuries fall into three areas
¾ It forces the marketing of products before adequately 9Behavior or knowledge of product user
tested. 9The environment where the product is used
¾ Indeed unproved technology creates hazards that are 9Whether the factory has designed and construct
unknown prior to product use. the product carefully
the product carefully
¾ The manufacturers liability for product injury is more
because he know more what are the safest designs ,
materials , construction method and modes of use
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History Product Safety Law

¾ In ancient time the liability was based on sample ¾ The purposes of CPSA (Consumer Product Safety Act) in
¾ By the fourteenth century seals and official stamps
By the fourteenth century seals and official stamps 1972 was passed
were used by producers ¾ The purpose of this act are :
¾ By the middle of the eighteenth century two 1. To protect the public against unreasonable risk of injury
concepts had developed associated with consumer products.
¾ Caveat emptor( let the buyer beware) 2. To assist consumers in evaluating the comparative safety
¾ Privity of contract (it requires that the manufacturer
of contract (it requires that the manufacturer of consumer products.
f d
and the injured party have a contractual relationship)
3. To develop uniform safety standards for consumer
¾ Manufacturer is liable to wholesaler to the retailer to products and to minimize conflicting state and local
the customer regulations.
Product Safety Law–

Law– contd., Products Liability Law
4. To promote research and investigation into the causes and ¾ The law controls the private litigation of product
prevention of product related deaths, illnesses , and accidents, which provides compensation to the injured
injuries. party.
party
¾ In all product liability suits, the plaintiff must prove
¾ In India, the law governs liability of manufacturers, causation thus causing injury.
wholesalers, distributors and vendors for injury to a person ¾ The factor used by the jury to asses whether a product
or property caused by dangerous goods or defective design is defective and under unreasonably dangerous
are:
products. It is governed:
1 The utility of the product
1. The utility of the product
– The consumer Protection Act 1986,
2. The feasibility and approximate cost of safety
– The Sales of Good Act, 1930 improvements
– The monopolies and Restrictive Trade Policies Act 3. The public's common knowledge of the product's
inherent danger
– The Law of Torts, Special Statues pertaining to special goods.
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Products Liability Law–

Law– contd., Products Liability Law–
Law– contd.,
4. The frequency and severity of injuries that result ¾ There are two types of warranties
p
from the product – Express Warranty: It is material statement made
Express Warranty: It is material statement made
5. The adequacy of instructions and warnings voluntarily by a manufacturer or merchant in sales
brochures or sales talk to induce sales.
6. The environment where the product was used – Implied Warranty: It provides the product is
7. The consumer's reasonable care in using the product reasonably fit for the general purpose for which
p g
the product is designed
8. The age and the condition of the product
¾ The agreement between parties to a contract
concerning the quality or the safety of a product takes
the form of warranties, controlled by Law of sales.
Defences Defences–
Defences– contd.,
¾ The legal theories that can be used to defend a ¾ Proof : The product was defective at the time of
p
products liability suit are comparative
y p q y
manufacture is frequently difficult because the
product may be entirely or partly destroyed by the
¾ Negligence
accident
¾ Assumption
¾ Expert witness: These are engaged by both sides of
¾ Risk the litigation to prove their arguments
¾ Misuse
¾ Statutes of Repose
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Financial Loss Financial Loss

Loss–
– contd.,
¾ The Largest Loss is the court judgment 9 The cost of damaged to an organization's reputation
The other financial losses are
The other financial losses are and customer base
9 The cost of increased product liability insurance 9 The cost of a hold or delay in production due to a
premiums, especially in high risk areas such as potential defect
industrial chemicals and medical devices
9 The cost of increased quality efforts for prevention or
9 The cost of recall, replacement or repair of a product appraisal
The Future of product liability Prevention

¾ The model Uniform Product Liability Act provides ¾ The Insurance companies make the initial payments
y, y p y
uniformity, which is likely to stabilize product liability from products liability losses
insurance rate ¾ The organization ultimately pays the price
¾ The growth in products liability cases can be ¾ The manufacturer must protect itself against the risk
attributed to only a few products – Abestos, The of product liability litigation
Dalkon, shield, Bendection ¾ For this product liability prevention program is
required.
¾ The manufacturer has difficulty in estimating the
y g
future liability ¾ Organisation:
– Have a safety engineer
– Form a committee that should review and
coordinate the various activities.
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Prevention–
Prevention– contd., Prevention–
Prevention– contd
contd.,
.,
¾ Education: ¾ New – Product review:
– All employees should be made aware of the
All employees should be made aware of the – Special review is required before product can be
p q p
importance of the product safety. released to manufacturing
– Having training sessions, printed materials, – Product design should be one design parameter
purchased materials etc should be provided – Quality and engineering personnel need to learn how
their products perform under conditions that are
– Continuing education should be imparted
adverse, have previously been considered abusive and
– Information like changes in state or national law,
Information like changes in state or national law a plaintiff’s attorney will consider reasonably
results of relevant law suits, and feedback on foreseeable.
product audits should be shared to employees – Product safety design techniques should be adopted.
Like FMEA, fault free analysis, fail‐safe concepts,
weibull and other test analysis.
Prevention–
Prevention– contd.,
– A general list of possible hazards to look for by the ¾ Initial Production Review:
p
product review team is crushing hazards, shearing
g , g – A new product review is usually based on hand
p y
hazards, cutting hazards, entanglement hazards, build prototypes. A subsequent review is necessary
drawing in or trapping hazards, impact hazards, on the first production items to determine if any
puncture hazards, abrasion hazards, exposed live defects are encountered that did not materialize in
part‐ electrical hazards, electrostatic exposure, the prototypes.
thermo hazards, noise hazards, fire or explosion – The production review evaluates the
hazards, unexpected start up hazards etc. manufacturing plan to determine the adequacy of
manufacturing plan to determine the adequacy of
FMEA, tooling and work holding devices, materials
– Customer oriented tests are performed to predict handling, test equipment, inspection system,
the misuse of the product. sampling plan, packaging and shipping, safety
warnings etc
5
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Breakdown of Product Liability

Prevention–
Prevention– contd., causes
¾ Periodic Production Audits: Periodic audits have to be
y
conducted to verify or validate the effective ness of IInadequate or
d t
the quality control system. nonexistance warnings
44%
– The audit should be performed on recently Product Defects 9%
manufactured products or products that have been
through the distribution system and products that Design defects 21%
have been in customer use for a substantial period.
¾ Warning Labels and Instructions: It was observed Inadequate Guarding 26%
based on a survey that the largest cause of
manufacturing’s negligence was in adequate or non‐
existent warnings.
Prevention–
¾ Complaints and Claims: A complaint or a claim is a • The failure mode that caused the situation, if there was
one.
p
communication between the market place and the
• The age of the defect and whether it was present when
h f h d f d h h i h
organization concerning the performance of the the product was sold.
product. • The negligence of the parties
– This information serves to alert manufacturer to ¾ Retention of Records and Document Control: The
the need for corrective action. defence of a product liability lawsuit necessitates the
– The product safety engineer and the insurance
p y g availability of design, production and sales records.
company reviews the situation and determines Particular types of records that should be retained are:
• The cause of the claim or complaint
– Product development and test records
• The nature and seriousness of the injury, if one has – Results of process, product and system and
occurred. inspection and audits.
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11/7/2013
Prevention–
– Records of verbal and written communications with ¾ Product recall plan: Once notification of a defective
customer relative to requirements, product p
product is received, the organization must decide
, g
application, nonstandard materials and claims. whether or not to recall all products suspected of
– Original design data having the defective condition. This decision can be
– Service‐ life data taken based on three factors like
– Acceptance and approvals by government agencies, – The maximum exposure to personal injury or
customers or independent testing organizations. property damage if the product is not recalled. It is
– Critical raw material acceptance records. based on the severity of the risk and the cost of
¾ Records should be maintained in such a way that the recall
material or product can be traced to a given shipment, – The form of communication used to contact the
operator, machine, time and so on.
users of the product (TV, radio, newspaper, phone)
Prevention–
– Determining if the product will be repaired or replaced of if ¾ Customer service: Making friends with costumers would
the customer will be reimbursed. likely reducing the lawsuit. The observations shall be on
¾ Risk Criteria: Products to be evaluated based on certain
i kC i i d b l db d i h
how product is being used or misused and any near
d i b i d i d d
individual risk criteria. The degree of prevention control is then misses.
based on the degree of potential liability loss. Use of FMEA ¾ Redress: Customers will usually accept failures if there is
would be more preferred.
redress that requires:
¾ Subrogation: Liability prevention program should also involve
the suppliers. Supplier auditing is a must. The byer advices the – A warranty policy that responds to customer needs
supplier of all relevant product safety information like audits,
pp p y , – The availability of information concerning the redress
warranties and product reviews. procedure
¾ Audit: Periodic audits of the prevention program are – Prompt handling of complaints, returns and claims.
absolutely essential. These are useful tools for measuring – Repair faculties that give prompt, skilled and fair‐priced
progress and for providing feedback to improve the prevention
program. Audits are a requirement of ISO 9000.
service
7
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BITS Pilani Scope

Hyderabad Campus
¾Why, Why analysis
¾Force Field Analysis
o ce e d a ys s
¾Nominal Group Technique
¾Affinity diagram
¾Interrelationship Digraph (ID)
¾Tree diagram
¾Matrix diagram
¾Matrix diagram
Chapter 17: Management Tools in ¾Prioritization Matrices
TQM ¾Process Decision Program Chart (PDPC)
¾Activity network diagram
New Management Tools What are tools and techniques?

¾ Additional tools that are very effective for teams and ¾ Tools
in some case for individual too
in some case for individual too – Tools and techniques are practical methods, skills,
means or mechanisms that can be applied to particular
h i th t b li d t ti l
¾ Called as new 7QC tools tasks
¾ These tools do not use hard data rather rely on – Used to facilitate positive change and improvements
– Narrow in focus and is usually used on its own
subjective information.
– Examples of tools are 7 QC tools
¾ Application of these tools has been proven useful in ¾ Technique
process improvement cost reduction policy
process improvement, cost reduction, policy – It has a wider application than a tool.
deployment, and new product development – Needs more thought, skill and training to use
– It can be thought of as a collection of tools
– Eg., statistical process control (SPC) employs a variety
of tools such as charts, graphs and histograms
1
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Why to use tools and Requirement for tools and

techniques? techniques
¾ Plays a key role in a company‐wide approach to ¾ Requires attention to be paid to a number of “critical
continuous improvement. They allow: pp
success factors” to make their use and application
– Processes to be monitored and evaluated; effective and efficient. Some of these are:
– Full management support and commitment;
– Everyone to become involved in the improvement
process; – Effective, timely and planned training;
– A genuine need to use the tool or technique;
– People to solve their own problems;
– Defined aims and objective for use;
Defined aims and objective for use
– A mindset of continuous improvement to be
– A co‐operative environment;
developed
– Backup and support from improvement facilitators.
Why, Why analysis Force Field Analysis

¾ Can be a key to finding the root cause of a problem by ¾ Used to identify the forces and factors that influence the
focusing on the process rather than on the people. problem or goal.
¾ Procedure is to describe the problem in specific terms and ¾ Helps us to better understand promoting or driving and
then keep asking why. restraining or inhibiting forces so that the positives can be
reinforced and the negatives reduced or eliminated.
¾ For example,
¾ Procedure
– Why did we miss delivery date? Wasn’t scheduled in time
– Define the objective, determine criteria for evaluating
– Why it wasn’t scheduled in time? There were a lot of the effectiveness of the action
the effectiveness of the action,
engineering changes
– Brainstorm the forces that promote and inhibit the goal
– Why there was lot of changes? ‐ Customer requested
them – Prioritize the forces from greatest to least, and
¾ Develops critical thinking and a quick method of solving a – Take action to strengthen the promoting forces and
problem. weaken the inhibiting forces.
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Force Field Analysis - Example Nominal Group Technique

¾ Objective: Stop smoking ¾ This technique provides for issue/idea input from
– Promoting forces
Promoting forces Inhibiting forces
Inhibiting forces everyone on the team and for the effective decisions.
For example, let us assume that the team wants to
• Poor Health ‐‐‐‐‐‐‐Æ Å‐‐‐‐‐‐‐ Habit decide which problem to work on.
• Smelly Clothing ‐‐‐‐‐‐‐Æ Å‐‐‐‐‐‐‐ Addiction ¾ Procedure
• Poor Example ‐‐‐‐‐‐‐Æ Å‐‐‐‐‐‐‐ Taste – Ask everyone in the team to write on a piece of paper
• Cost ‐‐‐‐‐‐‐Æ Å‐‐‐‐‐‐‐ Stress the problem they think is most important.
• Impact on others Æ Å‐‐‐‐‐‐Advertisement
Impact on others ‐‐‐‐‐‐‐Æ Å Advertisement – Collect the papers
ll h
¾ The benefits are the determination of the positives and – List all problems on a flip chart.
negatives of a situation, encouraging people to agree and – Ask each member of the team to use another piece of
prioritize the competing forces, and identify the root paper to rank the problems from least important to
causes. most important.
Nominal Group Technique – contd.. Affinity diagram

¾ Procedure – contd.. ¾ It allows the team to creatively generate a large number of
– The rankings are given a numerical value starting at 1
g g g ideas/ issues and then logically group them for problem
for least important and continuing to the most understanding and possible breakthrough solution.
important. ¾ Procedure
– Points for each problem are totaled and the time with – State the issue in a full sentence,
the highest number of points is considered to be the – Brainstorm using short sentences on self‐adhesive notes
most important.
– Post them for the team to see (Refer to figure 2)
( g )
– Sort ideas into logical groups (Refer to figure 3)
– Create concise descriptive headings for each group
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Affinity diagram – contd

contd.,
., Affinity diagram – contd
contd.,
.,
¾ Large groups should be divided into smaller groups
pp p
with appropriate headings.
g
¾ All stand‐alone should be treated as headers or
placed in a miscellaneous category.
¾ This tool encourages team creativity and break down
barriers,
¾ Facilitates break throughs and stimulate ownership
of the process.

contd.,
., Interrelationship Digraph (ID)
¾ It clarifies the interrelationship of many factors of a
complex situation.
¾ It allows the team to classify the cause and effect
relationships among all the factors so that the key drivers
and outcomes can be used to solve the problem. The
procedure is somewhat more complicated than the
previous tools;
¾ Procedure
P d
– The team should agree on the issue or problem
statement
– All of the ideas or issues from other techniques or from
brainstorming should be laid out, preferably in a circle.
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Interrelationship Digraph (ID) – Interrelationship Digraph (ID) –

contd.,
contd ., contd.,
contd .,
– Start with the first issue, “Lack of respect for others” – The fourth iteration is to compare Issue D with Issues E
(A), and evaluate the cause‐and‐effect relationship with and F, while in fifth iteration, is to compare Issue E with
“Lack of awareness of impact” (B). In this situation, I
Issue F
F
Issue B is stronger than Issue A; therefore the arrow is – The entire diagram should be reviewed and revised where
drawn from Issue B to Issue A as shown above necessary. It is a good idea to obtain information from
– Similarly each issue in the circle is compared to Issue A. other people on upstream and downstream processes.
It is found that only Issue B and E have a relationship – The diagram is completed by tallying the incoming and
with Issue A Now the first iteration is complete
with Issue A. Now the first iteration is complete outgoing arrows and placing this information below the
outgoing arrows and placing this information below the
– The second iteration is to compare Issue B with Issues C, box as shown below
D, E and F and the third iteration is to compare Issue C – Issue B is the “driver” because it has zero incoming arrows
with Issues D, E, and F and five outgoing ones. It is usually the root cause.
– The issue with highest incoming arrows is Issue E. It is a
18 MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus 19 meaningful measure of success.
MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus
Interrelationship Digraph (ID) Interrelationship Digraph (ID)
¾ Eg: What are the issues related to reducing litter? ¾ A relationship diagram allows a team to identify root causes
from subjective data, systematically explores cause and effect
relationships, encourages members to think multi‐
directionally, and develops team harmony and effectiveness
5
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Tree diagram Tree diagram – contd..

¾ This tool is used to reduce any broad objective into
¾ Three levels below the objective are usually
increasing levels of detail in order to achieve the objective
p
sufficient to complete the diagram
g and make
¾ Procedure appropriate assignments.
– Choose an action oriented objective statement from
¾ The diagram should be reviewed to determine if
the interrelationship diagram, affinity diagram,
brainstorming, team mission statement and so on.
these actions will give the results anticipated or if
something has been missed.
– Using brainstorming choose the major headings
¾ This tool encouragesg team members to think
– Generate the next level by analyzing the major
G t th tl lb l i th j
headings. creatively, make large project manageable, and
generate a problem solution.
– Ask “what needs to be addressed to achieve the
objectives?” (Refer figure )
– Repeat this question each level.
Tree diagram – contd

contd.,
., Tree diagram – contd
contd.,
.,
Increase workplace suggestions Create a workable process
Create capability
Measure results
Provide recognition
6
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Matrix diagram Matrix diagram – Procedure

¾ It allows individuals or teams to identify, analyze and – Select the factors affecting a successful plan
rate the relationships among two or more variables. – Select the appropriate format based on the above
pp p
¾ Here data are presented in table form and can be list
objective or subjective, which can be symbols with or – Determine the relationship symbols – Any symbols
without numerical values. can be adopted, provided the diagram contains a
¾ For example, Quality Function Deployment (QFD) is a legend. Numerical values are also associated with
perfect example of the use of the matrix diagram. the symbol.
¾ There are at least five standard formats ‐ L‐shaped, C‐ – Complete the matrix by analyzing each cell and
shaped, T‐shaped, X‐shaped, Y‐shaped. inserting the appropriate symbol.
– It clearly shows the relationship of two variables. It
encourages the team to think in terms of
relationships, their strengths, and any patterns.
Prioritization Matrices Prioritization Matrices

¾ These tools prioritize issues, tasks, characteristics, and so forth,
based on weighted criteria
¾ Once prioritized, effective decisions can be made.
Once prioritized effective decisions can be made
¾ Prioritization matrices are designed to reduce the team’s
options rationally before detailed implementation planning
occurs.
¾ It utilizes a combination of tree and matrix diagrams as shown
in figure.
¾ There are 15 implementation options; however, only the first
three beginning at “train
three, beginning at train supervisors
supervisors”, and the last one
and the last one
“purchase fork‐trucks” are shown in the diagram.
¾ There are four implementation criteria, however, as shown at
the top of the matrix.
¾ Prioritization matrices are the most difficult of the tools Prioritization matrix for improving shipping efficiency
7
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Prioritization Matrices
Prioritization Matrices–
Matrices– contd.,
Procedure
– Construct an L‐shaped matrix combining the options,
which are the lowest level of detail of the tree diagram
with the criteria.
– Determine the implementation criteria using the nominal
group technique (NGT) or any other technique that will
satisfactorily weight the criteria. Using NGT, each team
member submits the most important criteria on a piece of
paper They are listed on flip chart and team members
paper. They are listed on flip chart, and team members
submit another piece of paper rank ordering those listed
on the flip chart. Those criteria with the greatest value are
the most important. The team decides how many of the
criteria to use.
Matrices– contd., Prioritization Matrices–
Matrices– contd.,
– Those criteria with the greatest value are the most – Compute the option importance score under each
p y
important. The team decides how many of the criteria to y py g y g
criterion by multiplying the rank by the criteria weight as
use. shown in the Table 1. The options with the highest total
– Prioritize the criteria using the NGT. Each team member are those that should be implemented first.
weights the criteria so the total weighs equals 1.00, and
the results are totaled for the entire team as shown
below:
– Using NDT, rank order the options in terms of importance
by each criterion, average the results, and round to the
nearest whole number. Thus, this ranking should be from
1 to the number of options.
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Process Decision Program Chart

Matrices– contd., (PDPC)
¾ Program to achieve particular objectives do not always go
according to plan, and unexpected developments may
h
have serious consequences.
i
¾ The process decision program chart (PDPC) helps to avoid
surprises and identifies possible countermeasures
¾ Procedure
– Ask the team to state the objective ‐ say to plan a
successful refresher course.
– That activity is followed by the first level, which is the
refresher course activities of registration,
presentations, and facilities. Only the presentation
activity is shown here. In some cases a second level of
detailed activities may be used.
PDPC – contd
contd.,
., PDPC – contd
contd.,
.,
– The team should brainstorm to determine what could go ¾ The probability in percent, that a “what‐if” will occur
wrong with the reference course, and these are shown can be included in the box.
as the “what‐if” level. ¾ PDPC should be used when the task is new or unique,
– Countermeasures are brainstormed and placed in a complex, or potential failure has great risks.
balloon in the last level. ¾ This tool encourages team members to think about
– The last step is to evaluate the countermeasures and what can happen to a process and how
select the optimal ones by placing an O underneath. countermeasures can be taken.
Pl
Place and X under those that are rejected.
d X d th th t j t d ¾ It provides the mechanism to effectively minimize
¾ The example has used a graphical format. PDPC can also uncertainty in an implementation plan.
use an outline format with the activities listed.
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PDPC – contd
contd.,
., Activity network diagram
¾ This tool has different names and deviations, such as
– program
program evaluation action and review technique
evaluation action and review technique
(PERT),
– critical path method (CPM),
– arrow diagram, and
– activity on node (AOD).
¾ It
It allows the team to schedule a project efficiently.
allows the team to schedule a project efficiently
¾ The diagram shows completion times, simultaneous
tasks, and critical activity path.
Some common difficulties Summary

¾ The common difficulties associated with the use and ¾Why, Why analysis
application of tools and techniques include: ¾Force Field Analysis
o ce e d a ys s
– Poorly designed training and support; ¾Nominal Group Technique
– Being able to apply what has been learnt; ¾Affinity diagram
– Inappropriate use of tools and techniques; ¾Interrelationship Digraph (ID)
– Resistance to the use of tools and techniques; ¾Tree diagram
– Failure to lead by example;
y p ; ¾Matrix diagram
¾Matrix diagram
– Poor measurement and data handling; ¾Prioritization Matrices
– Not sharing and communicating the benefits achieved. ¾Process Decision Program Chart (PDPC)
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BITS Pilani Scope

Hyderabad Campus
¾ Pareto Diagram
¾ Cause‐Effect Diagram
¾ Check Sheets
¾ Process Flow Diagram
¾ Scatter Diagram
¾ Histogram
¾ Control Charts
Chapter 18: Statistical Process
– Control charts for attributes
Control
– Control charts for variables
¾ Problems
Statistical Process Control Seven Tools
A methodology for monitoring a process to ¾ Pareto Diagram
identify special causes of variation and signal the
¾ Check Sheets
need to take corrective action when appropriate.
¾ Scatter Diagram
g
¾ Histogram
¾ Control Charts
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The Pareto Principle The Pareto Principle

¾ Vilfredo Pareto was an economist who is credited with ¾ Some Sample 80/20 Rule Applications
g y
establishing what is now widely known as the Pareto – 80% of process defects arise from 20% of the
80% of process defects arise from 20% of the
Principle or 80/20 rule. process issues.
¾ When he discovered the principle, it established that – 20% of your sales force produces 80% of your
80% of the land in Italy was owned by 20% of the company revenues.
population. – 80% of delays in schedule arise from 20% of the
¾ Later, he discovered that the pareto
, p principle was
p p possible causes of the delays
possible causes of the delays.
valid in other parts of his life, such as gardening: 80% – 80% of customer complaints arise from 20% of
of his garden peas were produced by 20% of the your products or services.
peapods. (The above examples are rough estimates.)
The Pareto Diagram The Pareto Diagram

¾ Graph that ranks data classifications in descending ¾ Helps a team focus on causes that have the greatest
g
order from left to right p
impact
¾ Pareto diagrams are used to identify the most ¾ Displays the relative importance of problems in a
important problems simple visual format
¾ Advantage: Provide a visual impact of those vital few ¾ Helps prevent “shifting the problem” where the
characteristics that need attention solution removes some causes but worsens others
¾ Resources are then directed to take the necessary
Resources are then directed to take the necessary
corrective action
2
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Constructing a Pareto Diagram A Pareto Diagram

Steps:
1. Determine the method of classifying the data: by
y g y
problem, cause, type of nonconformity, etc
2. Decide if dollars (best), weighted frequency, or
frequency is to be used to rank the characteristics
3. Collect data for an appropriate time interval
4. Summarize the data and rank order categories
from largest to smallest
5. Compute the cumulative percentage if it is to be
used
6. Construct the diagram and find the vital few
Cause--and
Cause and--Effect Diagram Cause--and
Cause and--Effect Diagram
¾ It was developed by Dr. Kaoru Ishikawa in 1943
¾ Picture composed of lines and symbols designed to
Picture composed of lines and symbols designed to
represent a meaningful relationship between an
effect and its causes E
C
f
¾ Effect (characteristics that need improvement) on the a
f
right and causes on the left u
e
s
c
e
t
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Cause--and
Cause and--Effect Diagram Check Sheets
Steps ¾ The main purpose is to ensure that the data are
1 Identify the effect or quality problem
1. Identify the effect or quality problem y y y p g
collected carefully and accurately by operating
2. Determine the major causes personnel for process control and problem solving
3. Determine all the minor causes. Request a ¾ The form of the check sheet is individualized for each
brainstorming session situation and is designed by the project team
4. Once the diagram is complete, evaluate it to ¾ Check sheets are designed to show location
determine the most likely causes
determine the most likely causes ¾ Creates easy‐to‐understand data
Creates easy‐to‐understand data
5. Develop solutions ¾ Builds, with each observation, a clearer picture of the
facts
Check Sheets Process Flow Diagram

¾ It is a schematic diagram that shows the flow of the
p
product or service as it moves through the various
g
processing stations or operations
¾ Makes it easy to visualize the entire system, identify
potential trouble spots, and locate activities
¾ Compares and contrasts actual versus ideal flow of a
process
p
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Process Flow Diagram Scatter Diagram

¾ Serves as a training tool ¾ The simplest way to determine if a cause and‐effect
¾ Uses standardized symbols
Uses standardized symbols p
relationship exists between two variables
¾ Shows unexpected complexity, problem areas,
redundancy, unnecessary loops, and where
simplification may be possible
¾ Allows a team to reach agreement on process steps
and identify activities that may impact performance
and identify activities that may impact performance
¾ Improvements to the process can be accomplished by
eliminating steps, combining steps, or making
frequently occurring steps more efficient
Scatter Diagram Scatter Diagram

¾ Supplies the data to confirm a hypothesis that two Steps
variables are related 1 Data are collected as ordered pairs (x, y)
1. Data are collected as ordered pairs (x y)
¾ Provides both a visual and statistical means to test the 2. The horizontal and vertical scales are constructed
strength of a relationship with the higher values on the right for the x‐axis and
¾ Provides a good follow‐up to cause and effect on the top for the y‐axis
diagrams 3. Plot the data
4 Once the diagram is complete, the relationship or
4. Once the diagram is complete the relationship or
correlation between the two variables can be
evaluated
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Histogram Histogram
¾ Graphically shows the process capability and, if ¾ Displays large amounts of data that are difficult to
, p p
desired, the relationship to the specifications and the p
interpret in tabular form
nominal ¾ Shows centering, variation, and shape
¾ Illustrates the underlying distribution of the data
¾ Provides useful information for predicting future
performance
¾ Helps to answer the question “Is the process capable
Helps to answer the question “Is the process capable
of meeting requirements?
Control Charts Control Charts–

Charts– contd.,
¾ Focuses attention on detecting and monitoring ¾ Dr. Shewhart was the first to suggest the use.
p
process variation over time ¾ Three basic uses of control charts.
– First control shows the degree and nature of variation over
¾ Distinguishes special from common causes of time. Can be used to determine whether a process is in a
variation state of statistical control or is out‐ of‐ control. It allows for
process improvement
¾ Serves as a tool for on‐going control
– Second control charts are used to estimate the parameters
¾ Provides a common language for discussion process (mean, variation) of a process. By knowing the parameters
performance of a process, the output and the variability of the output
of a process, the output and the variability of the output
can be predicted.
¾ Two types: – Third control charts are used to improve a process. Once a
– Control charts for variables process is in control, efforts to produce process variability
can begin. By reducing the variability of the process, the
– Control charts for attributes overall quality of the final product increases.
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Control charts–
charts– contd., Control charts–
charts– contd.,
¾ The emphasis in using the control charts is on the ¾ A variable charts monitors the mean value and the
y p p
early detection and prevention of problems. By y y q y g
variability of the quality characteristics being studied.
preventing from occurring, productivity and profit ¾ Mean valued is monitored by X bar chart.
increases. ¾ Variability is measured via a range or moving range
¾ Variable Control Charts: (MR) chart or a standard deviation (S)
¾ Used to monitor measurable quality characteristics of ¾ The X bar chart with either R chart or an S chart
p y p ,
a process. This may include temperature, viscosity, y, which measures within‐sample variability
which measures within‐sample variability.
weight, etc., ¾ R chart is used when the sample size is less than 10
¾ Main restriction is the a variables control chart can and S when it is greater than 10.
monitor only one quality characteristic at a time.
Control charts–
charts– contd., Control charts–
charts– contd.,
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An Example on R chart An Example on R chart–

chart– contd.,
An Example on R chart
chart–
– contd., An Example on S Chart
8
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An Example on S Chart An Example on S Chart–

Chart– contd.,
An Example on MR (Moving
An Example on S Chart
Chart–
– contd.,
Range) Chart
9
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An Example on MR (Moving An Example on MR (Moving

Range) Chart Range) Chart
An Example on MR (Moving
Range) Chart
Appendix
10
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Control charts for attributes p Chart

Control charts for attributes ¾ p Chart: p stands for proportion because it measures
¾ The quality characteristics can be justified or classified as p p g g p
the proportion of non‐conforming units in a group of
either conforming or non‐conforming based on whether or
ih f i f i b d h h
not it has certain attributes. units being inspected.
¾ Attribute value can have only two values pass/fail,
conforming/non‐conforming, present/absent etc.,
¾ Special control charts for analyzing attributes data are
– p chart: plots the fraction non‐conforming per sample
– np chart: plots the number non‐conforming per sample
– c chart: plots the no of non‐conforming per inspection
unit
– u chart: plots the average no of non‐conforming per
inspection unit.
p Chart p Chart–
Chart– Example
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p Chart–
Chart– Example p Chart–
Chart– Example
p Chart–
Chart– Example Problem 7
Based on the above results, the common modifications are: ¾ Control Charts for X bar and R are to be established
1. Compute separate control limits for each sample based p ,
on a certain dimension part, measured in millimeters.
on its specific sample size. Data were collected in subgroup sizes of 6 and are
2. Compute the control limits based on an average sample given in next slide. Determine the trial central line and
size. control limits. Assume assignable causes and revise
3. Compute the control limits based on a standardized
the central line and limits.
fraction non=conforming.
12
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Problem 7 Solution 7
Subgroup X R
Subgrou X (bar) R Number (bar) ¾ From appendix (page number 630), for a subgroup of
p
N b
Number
12 20.38 0.30 ,
6, obtain the values of A 2,, D3 and D4.
13 20.40 0.33
1 20.35 0.34
14 20.41 0.36
¾ A2= 0.483, D3 =0, D4= 2.004
2 20.40 0.36
3 20.36 0.32
15 20.45 0.34 ¾ g= 25
16 20.34 0.37
4 20.65 0.36
17 20.36 0.37
5 20.20 0.36
18 20.42 0.73
6 20.40 0.35
19 20.50 0.38
7 20 43
20.43 0 31
0.31
20 20.31 0.35
8 20.37 0.34
21 20.39 0.38
9 20.48 0.30
22 20.39 0.33
10 20.42 0.37
23 20.40 0.32
11 20.39 0.29
24 20.41 0.34
25 20.40 0.30
Solution 7 Summary
¾ Pareto Diagram
¾ Check Sheets
¾ Scatter Diagram
¾ Histogram
¾ Control Charts
Based on the UCL, LCL, of x and R, eliminate all that fall above – Control charts for attributes
and below the range and then recalculate the limits. – Control charts for variables
¾ Problems
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BITS Pilani Scope

Hyderabad Campus
¾ Quality Management Systems
¾ Environment Management Systems
¾ Quality Function Deployment
¾ Quality by Design
¾ Failure Modes Effect Analysis
¾ Product Liability
Overview (Lectures 10-17) ¾ Management Tools in TQM
¾ Statistical Process Control
Quality Management Systems Advantages

¾ Why Quality System? ¾ Fewer on‐site audits by customers
– Without quality programs the global economy ¾ Increased market share
Increased market share
would not exist because it is effective in driving
ld b ff d
down costs and increasing competitiveness ¾ Improved quality, both internally and externally
– Companies without quality programs are at risk (fewer complaints)
with more emphasis on customer satisfaction and ¾ Improved product and service quality levels from
continuous quality improvement
[suppliers]
– To facilitate the exchange of goods and services
worldwide
ld id ¾ Greater awareness of quality by employees
Greater awareness of quality by employees
¾ A documented formal system
¾ Reduced operating costs
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contd.,
contd.,
.,
¾ ISO 14001 entitled “Environmental Management ¾ ISO 14010, ISO 14011 and ISO 14012 are superseded
Systems – Specifications with Guidance for Use” by ISO 19011:2002 “Guidelines for Quality and
– Gives the elements that organizations are required to Environmental Management Systems Auditing”
conform to if they seek registration. – Provides information on how to plan and conduct an audit.
– The standards given below support the EMS. – Topics included are audit team, audit plan,
¾ ISO 14004, entitled “Environmental Management implementation, and report
Systems – Guidelines on Principles, Systems, and ¾ ISO 14031, entitled “Guidelines on Environmental
Supporting Techniques”
pp g q Performance Evaluation”
– Provides supplementary material. – Presents information on recording information to track
– It is for information only and is not to be used for performance.
registration – This standard is being drafted

contd.,
contd.,
.,
¾ ISO 14020:2000,“Environmental Labels and Declarations
¾ These standards are under development
– Basic Principles for All Environmental Labelling”
¾ They consist of three categories:
They consist of three categories: –PProvides guidance on the goals and principles that should be
id id th l d i i l th t h ld b
– Environmental Aspects in Product Standards (EAPS), used in all labelling programs.
– Environmental Labelling (EL), and – Product improvement is a desirable benefit and but not the
– Life‐Cycle Assessment (LCA) objective of the standard.
¾ Guide 64:2008, entitled “Environmental Aspects in ¾ ISO 14021: 1999, “Environmental Labelling – Self
Product Standards” Declaration of Environmental Claims: Terms and
– Designed to help writers develop product standards. Definitions”
– Writers should carefully consider the environmental – Applies to organizations that are declaring that their product
consequences when developing criteria, elements, and has an environmental attribute such as being recyclable or
characteristics that go into the standard . energy efficient.
– The standard ensures that this type of labelling is accurate,
verifiable, and not deceptive.
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contd.,
contd.,
.,
¾ ISO 14024, entitled “Environmental Labelling – Practitioners ¾ ISO 14044: 2006, entitled “Life‐Cycle Assessment –
Programs: Guiding Principles, Practices, and Certification Requirements and Guidelines”
p Criteria Programs”
Procedures for Multiple g
– Establishes criteria for third‐party labelling or seal programs. ¾ The
h organization evaluation
l standards
d d are operationall
– These programs determine which products have overall environmental
superiority as compared to other products
and effective because, like ISO 9000, the focus was on
¾ ISO 14025: 2006, entitled “Environmental Labelling and the process rather than the product.
Declarations – Type III Declarations‐ Principles and ¾ The development and acceptance of the product
Procedures.” evaluation standards will be much more difficult. In
¾ ISO 14040: 2006, entitled “Life‐Cycle Assessment – Principles particular scientific knowledge concerning life‐cycle
and Framework”,
Framework” assessment is limited
– Provides an overview of the practice, applications, and limitations of
LCA.
– Life‐cycle assessment attempts to determine the long‐range
environmental effect of a product.
– This assessment is an enormously difficult task because of the
unforeseen and frequently controversial nature of a product’s life cycle
House Of Quality An Example
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Quality by design Product development flow

diagram
¾ Quality by design is the practice of using a
multidisciplinary team to conduct thinking, product
design and production planning all at one time
design and production planning all at one time.
¾ It is also known as concurrent engineering , simultaneous
engineering or parallel engineering.
¾ Quality by design is a team of specialist who
simultaneously design and develop a product to ensure
ease of producibility and customer satisfaction.
¾ SEQUENTIAL ENGINEERING : In the past the major
S Q G G h h j
function within an organization would complete their task
by “throwing it over the wall” to then next department in
the sequence and would not be concerned with any
internal customer problems that may arise.
Product development time line Communication Models
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Communication Models Organization tools

¾ Computer networks.
¾ ISO 9000
ISO 9000
¾ ISO 14000
¾ Total productive maintenance.
¾ Quality function deployment
¾ Information technology
I f i h l
¾ Electronic meeting software
¾ Enterprise resources planning software
Product development tools Production tools
¾ CAD software. ¾ Robotics
¾ Computer aided manufacturing
¾ Solid modeling software.
¾ Computer numerical controlled tools
¾ Finite element analysis software.
¾ Continuous process improvement
¾ Parametric analysis software. ¾ Just in time production
¾ Rapid prototyping techniques. ¾ Virtual manufacturing software
¾ Failure mode and effect analysis ¾ Agile or lean manufacturing
¾ Advanced measurement and verification
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Failure Modes Effect Analysis

(FMEA))
(FMEA
FMEA is a Tool
¾ To understand the use of Failure Modes Effect ¾ FMEA is a tool that allows you to:
y ( )
Analysis (FMEA) – Prevent System, Product and Process problems
y , p
¾ To learn the steps to developing FMEAs before they occur
– reduce costs by identifying system, product and
¾ To summarize the different types of FMEAs process improvements early in the development
¾ To learn how to link the FMEA to other Black Belt cycle
tools – Create more robust processes
¾ To perform an exercise to actually perform – Prioritize actions that decrease risk of failure
an FMEA – Evaluate the system, design and processes from a
new vantage point
FMEA Evaluate Failure Modes

What Is A Failure Mode? and Effects
¾ A Failure Mode is: Failure
Mode
Specific Cause Effect of Failure Likeliness
of Failure
Detectability Severity of Risk
of Failure Failure Priority
Gaswill not Spring broke Explosion resulting in 3 5 10 150
– The way in which the component, subassembly,
The way in which the component subassembly shut off preventing
p g valve
from closing
property
p p y damage g
and/or serious injury
product, input, or process could fail to perform its
intended function Likeliness of Failure: 1-10 with 10 representing most likely
Detectability of Failure: 1-10 with 10 representing most difficult
• Failure modes may be the result of upstream Severity of Failure: 1-10 with 10 representing most severe
Risk Priority = (Likeliness of Failure) X(Detectability of Failure) X
operations or may cause downstream operations to (Severity of Failure)
fail
– Things that could go wrong What
– Failure Modes & Effects Analysis is a methodology
to evaluate failure modes and their effects in
designs and in processes.
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Benefits of FMEA What are possible outcomes?

¾ Contributes to improved designs for products and
processes. ¾ Actual/potential failure modes
– Higher reliability
Higher reliability
– Better quality
¾ customer and legal design requirements
– Increased safety ¾ duty cycle requirements
– Enhanced customer satisfaction
¾ Contributes to cost savings. ¾ product functions
– Decreases development time and re‐design costs
– Decreases warranty costs
Decreases warranty costs ¾ key product characteristics
yp
– Decreases waste, non‐value added operations
¾ Product Verification and Validation
¾ Contributes to continuous improvement
Cost benefits are expected to come from the ability to identify
failure modes earlier in the process, when they are less
26
expensive to address.
MM ZG522 ‐ Total Quality Management 27 MM ZG522 ‐ Total Quality Management
BITS Pilani, Hyderabad Campus BITS Pilani, Hyderabad Campus
FMEA Form Severity evaluation criteria
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Occurrence evaluation criteria Detection evaluation criteria
Step 7: Assign predicted severity,

occurrence & detection levels compare rpn Product Liability
¾Introduction
¾Product Safety Law
¾Product liability Law
¾Defences
¾Financial loss
¾Financial loss
¾The future of products liability
¾Prevention
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Product Safety Law Product Safety Law–

Law– contd.,
¾ The purposes of CPSA (Consumer Product Safety Act) in 4. To promote research and investigation into the
1972 was passed p p ,
causes and prevention of product related deaths,
¾ The purpose of this act are : illnesses , and injuries.
1. To protect the public against unreasonable risk of injury ¾ A five member commission, appointed by the
associated with consumer products. president with the advice and consent of the Senate,
administers this act and other similar acts.
2. To assist consumers in evaluating the comparative safety
of consumer products.
f d ¾ The commission is required to maintain an injury
3. To develop uniform safety standards for consumer information clearinghouse to collect investigate,
products and to minimize conflicting state and local analyze and disseminate injury data.
regulations.
Financial Loss Prevention

¾ The Largest Loss is the court judgment ¾ The Insurance companies make the initial payments
The other financial losses are from products liability losses
9 The cost of increased product liability insurance ¾ The organization ultimately pays the price
premiums, especially in high risk areas such as industrial
chemicals and medical devices ¾ The manufacturer must protect itself against the risk
9 The cost of recall, replacement or repair of a product of product liability litigation
9 The cost of damaged to an organization's reputation and ¾ For this product liability prevention program is
customer base required.
9 The cost of a hold or delay in production due to a ¾ Organisation:
potential defect – Have a safety engineer
9 The cost of increased quality efforts for prevention or – Form a committee that should review and
appraisal coordinate the various activities.
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Prevention–
¾ Education: ¾ Initial Production Review:
– All employees should be made aware of the
All employees should be made aware of the – A new product review is usually based on hand
A new product review is usually based on hand
importance of the product safety. build prototypes. A subsequent review is necessary
– Having training sessions, printed materials, on the first production items to determine if any
purchased materials etc should be provided defects are encountered that did not materialize in
¾ New – Product review: the prototypes.
– Special review is required before product can be
Special review is required before product can be ¾ Periodic Production Audits: Periodic audits have to be
released to manufacturing conducted to verify or validate the effective ness of
– Product design should be one design parameter the quality control system.
Prevention–
¾ Warning Labels and Instructions: It was observed ¾ Complaints and Claims: A complaint or a claim is a
y g
based on a survey that the largest cause of communication between the market place and the
manufacturing’s negligence was in adequate or non‐ organization concerning the performance of the
existent warnings. product.
¾ Retention of Records and Document Control: The
defence of a product liability lawsuit necessitates the
availability of design, production and sales records.
Particular types of records that should be retained
yp
are:
– Product development and test records
– Results of process, product and system and
inspection and audits.
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Prevention–
Prevention– contd., Management Tools in TQM
¾ Product recall plan: Once notification of a defective ¾Why, Why analysis
p
product is received, the organization must decide
, g ¾Force Field Analysis
o ce e d a ys s
whether or not to recall all products suspected of ¾Nominal Group Technique
having the defective condition. ¾Affinity diagram
¾ Risk Criteria: Products to be evaluated based on ¾Interrelationship Digraph (ID)
certain individual risk criteria. The degree of ¾Tree diagram
prevention control is then based on the degree of
¾Matrix diagram
¾Matrix diagram
potential liability loss. Use of FMEA would be more
¾Prioritization Matrices
preferred.
¾Process Decision Program Chart (PDPC)
Why, Why analysis Force Field Analysis

¾ Can be a key to finding the root cause of a problem by ¾ Procedure
focusing on the process rather than on the people. – Define the objective, determine criteria for evaluating
¾ Procedure is to describe the problem in specific terms and the effectiveness of the action,
then keep asking why. – Brainstorm the forces that promote and inhibit the goal
¾ For example, – Prioritize the forces from greatest to least, and
– Why did we miss delivery date? Wasn’t scheduled in time – Take action to strengthen the promoting forces and
– Why it wasn’t scheduled in time? There were a lot of weaken the inhibiting forces.
engineering changes
– Why there was lot of changes? ‐ Customer requested
them
¾ Develops critical thinking and a quick method of solving a
44
problem. MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus 45 MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus
11
11/7/2013

contd.,
., Affinity diagram – contd
contd.,
.,
Statistical Process Control A Pareto Diagram

¾ Pareto Diagram
Cause‐Effect Diagram
¾ Check Sheets
¾ Scatter Diagram
¾ Histogram
¾ Control Charts
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Cause--and
Cause and--Effect Diagram Check Sheets
E
C
f
a
f
u
e
s
c
e
t
Scatter Diagram Histogram

¾ The simplest way to determine if a cause and‐effect ¾ Graphically shows the process capability and, if
p
relationship exists between two variables , p p
desired, the relationship to the specifications and the
nominal
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Control Charts Control charts–

charts– contd.,
¾ Focuses attention on detecting and monitoring
p
process variation over time
¾ Distinguishes special from common causes of
variation
¾ Serves as a tool for on‐going control
¾ Provides a common language for discussion process
performance
¾ Two types:
Control charts–
charts– contd., Appendix
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Case Study Case Study

Study–
– contd.,
¾ Gulf Coast Health Systems is the primary hospital for a 1. Overall satisfaction
community of 20,000 in the Panhandle community of 2. Competitive comparison
Florida Stakeholders are defined as patients and their
Florida. 3. Likelihood to return to Gulf Coast Health System
families, the community, the healthcare staff, employers
and payers, and students (nursing and medical students 4. Reason for selection of Gulf Coast Health System
from the university) and their sponsoring institutions. 5. Evaluation of specific service attributes
Healthcare staff includes physicians, midwife and 6. Evaluation of billing practices
practitioner nurses, physician assistants and nurse Questions:
anesthetists. The payer mix includes Medicare (35%),
managed care/HMO (34%), indemnity (18%), Medicaid 1. Evaluate the p process of stakeholder satisfaction
(6%) and self‐pay (4%). Although the satisfaction of all determination.
stakeholders is important, particular attention is paid to 2. How would you manage the complaint process for
patients and their families. Satisfaction is determined by feedback and improvement?
the analysis of complaints as well as surveys of: 3. Name four or five indications of quality healthcare in this
hospital.
The End
ALL THE VERY BEST

THANK YOU!
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Contents TQM Course Goals

Course Overview Introduction

Introduction – contd., What is quality?

Quality perspectives Quality perspectives – contd.,

Quality perspectives – contd., A better definition of quality

Basic concepts of TQM TQM Language: Some Terms

TQM Language – contd., The Need for TQM

Need – contd., Awareness

Gurus of Quality Gurus of Quality – contd

Gurus of Quality – contd

History of quality management History – contd

Benefits of TQM Benefits of TQM – contd

BITS Pilani Contents

¾ Leadership, Characteristics of Quality Leaders

¾ 7 habits of highly effective people & Deming Philosophy

¾ Role of leadership & senior management in Implementation

¾ Core values and concepts

Comparison between Manager

Characteristics of Quality Leaders

7 habits of highly effective people The Deming Philosophy

The Deming Philosophy The Deming Philosophy

The Deming Philosophy The Deming Philosophy

Qualities of a leader Qualities of a leader

Role of leadership – contd

Role of senior management –

Quality council – contd

Core values and concepts – Core values and concepts –

Core values and concepts – Core values and concepts –

Core values and concepts – Core values and concepts –

Shared values Shared values – contd

Shared values – contd

Quality statements – contd

Quality statements – contd

Quality statements – contd

7 steps to strategic planning Communications

Additional reading Summary

9 Quality statements, 7 steps to strategic planning

BITS Pilani Contents

A Quote on Customer! Why Customer satisfaction?

an opportunity to do so.” ‐ M. K. Gandhi

Customer Satisfaction Model of Customer

Front-line Staff Customer needs

What is customer satisfaction? Customer types

¾ Is it due to Product quality? ¾ External and Internal customers

TQM and customer quality Customer perceptions of

Customer feedback Customer feedback methods

Customers-- Handle with care!

Customers Requirements Customers Requirements

Customers Requirements Customers Requirements

Customers Requirements Customers Requirements

Customers Requirements Is the Customer Always Right?

Service Quality Service Quality

Service Quality Service Quality

Customer Care Customer Care

Customer How the voice of customer is heard? Who is the customer?

Customer Retention Customer Retention

BITS Pilani Topics to be covered

3 MM ZG522 ‐ Total Quality Management BITS Pilani, Hyderabad Campus

Introduction Introduction – contd..

Introduction – contd.. Introduction – contd..

Achieving a motivated workforce Achieving a motivated workforce

Achieving a motivated workforce Achieving a motivated workforce