Post on 13-Jan-2016
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TOTAL QUALITY MANAGEMENT
Prof. (Dr.) Satish Ailawadi
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FUNDAMENTAL CONCEPTS OF TQM
• Total quality management is both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization.
• Encompasses mobilizing the entire organization to satisfy the demands of the customers.
• TQM is focused on routine involvement and participation of everyone in the organization in the systematic improvement of quality.
• It involves each individual and group within all parts of the organization.
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• TQM provides a way of life to constantly improve performance at every level and at in every activity, by creating a positive environment for continuous improvement based on
- Team work- Trust and Respect- Examining the processes in a systematic
manner- Application of quantitative methods and
analytic techniques
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Deming’s Chain Reaction
Improve quality
Decrease costs due to less rework, fewer mistakes, fewer delays and snags, and better use of time and materials
Improve productivity
Capture the market with better quality and lower prices
Stay in business Provide steady jobs and more jobs.
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A shift from traditional approaches to quality
QUALITY CONTROL-Quality standards -Statistical quality techniques-Process performance -Treating quality problems
QUALITY ASSURANCE-Quality systems (ISO 9000) -Quality planning - Quality policy- Quality costing - Problem solving
INSPECTION-Error detection- Rectification
TOTAL QUALITY MANAGEMENT -Involvement of all employees, customers and suppliers - Empowered employees- Teamwork - Quality strategy based upon a common mission and vision-Process oriented
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• TQM can be perceived as being concerned with the following
- Meeting the needs and expectations of customers.
- Covering all parts of the organization- Examining all costs which are related to quality- Doing things right the first time i.e. quality
designing rather than inspecting.- Developing the systems and procedures which
support quality and improvements- Developing a continuous process of
improvement
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• TQM concerns incremental and ongoing improvement of yourself, your work, and your organization.
• The Kaizen philosophy is imbedded in the TQM concept and encompasses the continuous and gradual improvement of all employees in the organization.
• Leads to improvement in employees’ personal output on a daily basis
Kaizen Philosophy
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Important Kaizen Rules• Work with and according to guidelines• Problems are opportunities for
improvements• Retrieve information where it happens• Consider the facts• Work according to the plan• Avoid waste• Order and neatness• Keep appointments
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Deming Wheel- focal point in Kaizen Approach
• In the Kaizen approach “Deming Wheel” is central, consisting of a cycle of activities necessary for effective quality improvement.
• The cycle consists of Plan, Do, Check, and Act.1. Plan- Define the problem, analyze the causes and draft an
action plan for solving the problem.- Determine the quality objectives, and critical success
factors.- Define performance indicators, collect and analyze the
process data, generate the possible solutions.- Select the most feasible solution and work it out.
2. Do
- Implement the plan on a limited scale or conduct an experiment to test the proposed improvement.
- Train all involved employees in the use of quality improvement methods and techniques.
- Describe the process which is considered for improvement and form project teams to lead the process.
3. Check- Evaluate the trial project with performance indicators.- Verify whether the improvement has been successful.- What have we learnt?
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4. Act- Implement proven improvements.- The improvements are documented in standard
procedures so all employees involved are well informed on how to handle in future.
- Usually the cycle gets repeated under different circumstance and conditions to test how consistent the results are.
ACT PLAN
CHECK DO
Quality Principles
A. Customer focus and customer involvement
- Employees regularly visit their customers.
- Customers are known and understood
- Customers’ needs are integrated in the activities.
- More is being done than the customer expects
- Satisfied customers are priority number one.
- Changing customer needs are systematically collected and lead to improvement.
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B. Involvement of all employees• Voluntary total involvement of everyone.• Teamwork that leverage the knowledge and
provides synergy based on open communication, respect and trust.
• Skills are developed on the basis of “Learning by doing”.
• Decisions on the basis of consensus.• The present situation is open for discussion.• Investing in knowledge.• Empowered employees• Entrepreneurial approach and leadership skills at
all business levels.
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C. Consistency of purpose
- An inspiring mission and vision is developed and communicated to all organizational levels.
- SMART- goals are formulated and preserved.(Specific, Measurable, Achievable, Realistic, and Time specific).
- Managers are consistent in their behaviour regarding these goals.
- Guidance is given to quality improvement process.
- There is commitment at top management.
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D. Act according to facts
- Work according to facts and not based on rumours or feelings.
- The causes and consequences of problems are analyzed according to “measuring is knowing”.
- Goal oriented data is gathered and interpreted accordingly.
- Measurements are based on figures; verify everything with data.
- Quality costs are analyzed.
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E. Process oriented- Internal customers are also satisfied.- The process is more important than the results; address
the means of work accomplishment and not the outcomes.
- The effectiveness of process is measured.- The output is standardized.- The processes are documented in schemes and standard
working procedures.- Suppliers are regarded as partners and long term
relationships are established.- The TQM culture is expanded to suppliers.- Reduction of process variations occurs continuously.
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F. Focus on continuous improvement.
- Employees improve themselves and their work and help others improve themselves and their organization.
- Problems are regarded as a means for improvement and a chance to improve processes.
- Emphasis on problem prevention instead of correction.
- Improvements are based on cross-functional, structured, and holistic approach, and are continuously documented.
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- Multidisciplinary improvement teams are established.
- There is a working climate in which continuous improvement is a way of life.
- Improvement of whole and not just the parts.
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Deming’s and Crosby's 14 points for quality improvement
S.No. Demimg Crosby
1. Create constancy of purpose towards improvement of product and service .
Establish management commitment
2. Adopt the new philosophy Form interdepartmental quality improvement teams.
3, Cease dependence on inspection Establish quality measurement.
4. End awarding business on the basis of price tag
Evaluate the cost of quality.
5. Improve constantly the system of production and service.
Establish quality awareness.
6. Institute training on the job. Instigate corrective action.
7. Institute leadership. Ad hoc committee for the zero defects programme.
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S.No. Deming Crosby
8. Drive out fear, so that everyone may work effectively for the company.
Supervise employee training.
9. Break down barriers between departments.
Hold a zero defects day to let all employees realize that there has been a change.
10. Eliminate slogans and exhortations.
Encourage individuals to establish improvement goals for themselves and their groups.
11. Eliminate quotas or work standards.
Error cause removal.
12. Give people pride in their job. Recognize and appreciate those who participate.
13. Institute education and a self-improvement programme.
Establish quality councils to communicate on a regular basis.
14. Put everyone to work to accomplish it.
Do it over again to emphasize that the quality improvement programme never ends.
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• Total quality management is a common method to improve the whole organization stepwise, structured and systematically according to hard work, discipline, intensive training, and consistent implementation of techniques and resources.
• The quality principles form the foundation of TQM and are expressed in the four pillars of the TQM-house, namely
1.Problem solving Discipline2.Interpersonal skills3.Teamwork4.Quality improvement process.
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Employee involvement, Structured, Stepwise, Discipline, Consistency.
Problemsolvingdiscipline
InterpersonalSkills.
Teamwork Qualityimprovement process
Total Quality Management
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• The success of TQM improves proportionately in conjunction with the percentage of employees within the organization who master this quality attitude, mentality, and skills,
• TQM covers all parts of the organization.
• For an organization to be truly effective, every single part of it, each department, each activity, each person and each level must work properly together, because every person and every activity affects and in turn is affected by others.
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What is Quality?• Degree to which a set of inherent characteristics
fulfills requirements.
• Many of us tend to equate quality with lluxury and expense.
• If asked to rank, for quality
- A Rolls Royce
- A Formula One racing car or
- A compact family saloon
• Most people would choose the Rolls Royce as possessing the highest quality of the three.
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• To use the definition of quality given earlier and to arrive at a ranking decision we need to examine another definition of quality “Grade”.
• Grade is defined as “category or rank given to given to different quality requirements for objects having the same functional use”.
• For example, classes of airline ticket or categories of hotels.
• When planning the quality requirement for an object, the grade for quality requirement must be known.
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• The examples of Rolls Royce, Formula One racing car and a compact family car have very different functional uses and it becomes necessary to compare each one of them with vehicles having the same functional use.
• This promotes an alternative definition of Quality as “Fitness for Purpose”.
• The problems this raises are ‘Who is to judge the fitness for purpose”?
- Should it be the customer?- Should it be the manufacturer or provider of
service?- Should it be an independent auditor?• Fitness for Purpose provides an element of
subjectivity.
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Working effectively to achieve quality• A common agreement is required on what quality
means.• It does not mean that all products need to be “gold
plated’.• It does not mean when buying a family saloon car that
all luxuries of a Rolls Royce need to be built into achieve quality.
• The basic quality objective is to provide products and services that meets the needs of the customers.
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• Individuals, based on their experience with the products, form an opinion about quality.
• From varying ideas and suggestions for defining quality one idea becomes clear in all cases-the need for customer satisfaction.
• The multitude of suggestions make it appear that quality is a moving target and is difficult to achieve.
• In fact, it is not so.
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Quality is “Conformance to
Specifications” • Conformity is ‘Fulfillment of a requirement”
• The Rolls Royce that meets all its specified requirements is a quality product.
• The family saloon that meets all its specified requirements is equally a quality product.
• Dr. Deming defines quality as the need to “provide customers with what they need, when they need it and at a higher perceived value and lower cost than anyone else.
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Prevention rather than detection to achieve quality
• Traditional methods include inspection, tests, audits to detect errors and eliminating them by scrapping or reworking products to conform to specification.
• This system of appraisal is commonly categorized as “Quality Control”.
• Inspection is the king.• During late 1950s and early 1960s the principle
of achieving quality by inspecting-out reject products was challenged.
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• It was realized that quality is inherent within the product and cannot be introduced once the product is made.
• The philosophy of “prevention rather than detection” provides the opportunity for eliminating the potential for error.
• It involves identifying opportunities for error and taking actions to eliminate those opportunities before a problem arises.
• It results in the contemporary quality expression of “Quality Assurance- Right First Time”
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Prerequisites of TQM and Possible Actions
1. Know your customers, both external and internal:- Who they are, their current needs, and their future
requirements. - Respond to their changing needs.- Do not forget the users.1.1 Possible Actions- Customer surveys- Functional analysis - Quality cost analysis- Quality function deployment
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2. Know your competitors2.1 Possible Actions- Customer surveys- Competitor analysis- Bench marking3. Know the cost of non-conformance (CONC)3.1 Possible Actions- Quality cost analysis- Functional analysis4. Measure performance against key customer driven parameters4.1 Possible Actions- Customer surveys- Competitor analysis- Bench marking
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5. Make sure that each employee understands and commits themselves to the quality objectives of the business.
5.1 Possible Actions
- Functional analysis
- Education and training
- Communication
6. Management commitment to the continual improvement of quality within the business.
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6.1 Possible Actions- Quality cost analysis- Functional analysis- Education and training- Communication.
7. Define the purpose of each department and activity in terms of satisfying external and internal customer requirements.
7.1 Possible Actions
- Functional analysis
8. Enable the employees to fulfill their commitment to quality by influencing the programme of continuous improvement.
8.1 Possible Actions
- Education and training
- Communication
- Corrective action task force, corrective actions group.
- Error cause removal schemes.
- Quality circles
- Problem solving 36
- Statistical process control
- Recognition of performance
- Suggestion programmes
- Self inspection programmes.
9. Wherever possible replace the inspection and correction techniques of quality control with effective preventive actions.
9.1 Possible Actions
- Quality cost analysis
- Functional analysis37
- Quality Management Systems
- Error Cause removal schemes
- Quality Circles
- Problem solving
- Suggestion programmes.
10.Never accept a non-conforming output in the form of a product for external or internal customer.
10.1 Possible Actions
- Quality Cost Analysis38
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- Functional Analysis
- Education and Training
- Communication.
11. Plan effectively before undertaking any actions.
11.1 Possible Actions
- Quality Improvement Team
→ Apparently, there is no end to improvement.
• The recognition of the necessity to continuously revise the quality thinking is essential to the ultimate success of business venture.
5 S of Housekeeping• Housekeeping is given a lot of importance in the
total quality management system.
• It reduces the wastage of time and improves the efficiency and effectiveness of work.
• Improper housekeeping may lead to accidents, dull working environment and other work related problems.
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1. Seiri- Orderliness
• The orderliness of manufacturing aids, proper arrangement of raw materials near the machines and keeping the files and drawings in order to make working fast, effective and efficient without wastage of the effort or time and material.
2. Seiso- Clarity
• The clarity of work process, flow process charts, arrangement of raw materials, finished goods and intermediary services make the work place more efficient and effective. 41
3. Seiton-Tidiness
• Tidiness ensures adequate space for machines and movement of manpower is made easy.
• Tidiness avoids mixing of different materials and it makes product identification easy.
• The chances of rejection and rework gets minimized.
4. Seiketsu
• The cleanliness of the shop floor and the office are mandatory for good working environment, good product quality and elimination of accidents. 42
This also helps an organization to put up a decent appearance of the organization before the visitors.
5. Shitsuke-Discipline
• Recommends discipline in all the four housekeeping practices together to enhance the effectiveness of housekeeping.
• It ultimately leads to the self discipline of the organization.
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Total Quality Management Pioneers
1.Walter Shewart• Founder of P-D-C-A Cycle• Originator of statistical process control at AT&T
Bell Labs in 1930.2. W.Edward Deming• Led quality revolution in Japan during the post-
world war II period.• Quality is a key competitive advantage.• Deming quality award by Japan is the most
prestigious quality award.
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• Deming’s fourteen points for excellence.• Deming’s seven diseases.3. Joseph M.Juran• Led quality revolution in Japan during the post-
world War II period.• He defined quality as fitness for use by
customer.• Juran’s triology of quality, quality control, and
quality improvement.• Started Juran’s Institute in USA.• Introduced cost of poor quality.
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4. Philip B. Crosby • Started Crosby quality college.• Created the concept of ‘zero defect’.• Defined quality as conformance to requirement.• Crosby’s 14 steps of quality improvement.5. A.V. Feigenbaum• Originator of QM concept• His theory of three steps to quality• Quality leadership, modern quality technology
and organizational commitment.
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6. Taiichi Ohno• Formulated the flexible manufacturing systems
(FMS)• Father of the just-in-time and kanban
manufacturing.• Father of TPS or Toyota Production System.7. Sheigo Shingo• Originator of ‘Single minute exchange of dies”• Introducing the concept of modular
manufacturing.
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8. Kaoru Ishikawa• Originator of fish bone or the cause and effect
diagramme.• Originator of Company Wide Quality Control
(CWQC).• Responsible for initial deployment of quality
circles.• Remove the root cause and not the systems.9. Masaaki Imai• Popularized the Kaizen concept of continuous
improvement.10. E.Goldrat• Theory of constraints
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Deming’s 14 points to reach World Class Performance Standards
1. Achieve constancy of purpose• Top management must define the organization’s
vision, mission and objective with the constancy of purpose .
• The goal integration between the organization and individuals working there is extremely important for individuals to give their best for the achievement of the organizational objectives.
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2. Learn a new philosophy• Challenge the status-quo.• Today’s management is learning, unlearning and
relearning that is relevant to the organization.• The speed and frequency with which the
organization and its employees learn new philosophy decide its growth rate and market leadership.
3. Do not depend on mass inspection (Use statistical sampling technique).
• Emphasizes heavy deployment of statistical techniques in the area of inspection.
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• Deming was of the opinion that the behaviour of the whole group is going to be more or less the same as that of the sample lot taken for the inspection.
• Therefore, why unnecessarily waste precious resources of manpower and time for 100% inspection.
4. Reduce the number of vendors for better control and consistency
• Vendors need to be treated as part of the organization.• There needs to be direct involvement of the
organizations in the statistical process control of the vendors.
• This will lead to improve vendors’ process capability and there will be no need to do 100% inspection.
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• If the vendors are changed frequently for cheaper price, quality of supplies would never stabilize.
• Hence, number of vendors per component should be either one or two to have a better control and consistency in the supplies.
5. Recognize two sources of faults: (a)management and production systems (b) production workers.• There are two types of errors or faults.• One is due to random causes and other is due to
assignable causes.• The random causes are due to faulty process
design or inadequate machine capability.
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• The management alone can solve such problems.
• The assignable errors are due to workers and occur due to faulty workmanship.
• This can be eliminated by providing training to the workers and motivating them properly.
6. Improve on the job training• Deming always described on-the-job training as
the best method of training where the absorption of knowledge imparted during training is the maximum.
• Identify the training needs and the skill level required for each operator and employees.
• Conduct training for best results.
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7. Improve supervision• Improve the supervision at the process level so that not only errors or
mistakes are minimized, but also on-the-job training to the operators is strengthened.
• This will lead to continuous improvement, better productivity and enhanced quality of products, process and services.
8. Drive out fear• Organization should be proactive and there should be employee
involvement at all levels.• Fear should not be the driving force to achieve the end results.
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9. Improve communication• The majority of the labour problems are due to lack
of communication between the workers and the management.
• Communication should be immaculate in terms of training, learning of new technology, setting of new objectives etc.
10. Eliminate slogans and exhortations.• This is quite similar to driving out fear and hence gets
emphasized.• Ensure employees are not exploited.11. Consider work standards carefully and eliminate
quotas• Examine each standard from functional point of view.
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• Do not overdesign or keep tolerances too rigid .
• If it is not required from customer’s point of view and not adding any value, why unnecessary incur additional expenditure.
12. Teach statistical methods
• Implement statistical process control system in manufacturing leading to establishment of process capability
• This would lead to zero defects in products and services.
• Results into enhancement of productivity.
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13. Encourage education and a self-improvement programme.
• A product innovation and development helps in increasing the market share.
• Innovations in process enhances productivity and quality and reduces the cost of production.
• Organizations should have systems like suggestion scheme, quality improvement teams to encourage new skills and their implementation.
14. Ensure total employee involvement.
• Put everyone to work to accomplish it.
• Involvement should be voluntary.
• This would enable organization to achieve its objectives in minimum amount of time and cost.
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Deming’s Seven Deadly Diseases1. Lack of consistency of purpose to plan product and
services that have a sufficient market to keep the company in business and provide jobs.
2. Emphasis on short-term profits; short term thinking that is driven by a fear of unfriendly takeover attempts and pressure from bankers and shareholders to produce dividends.
3. Performance appraisals, merit rating, and annual appraisal without providing resources to accomplish objectives.
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4. Job hoping by managers.
5. Using only visible data and information in decision making with little or no consideration given to what is not known or cannot be known.
6. Excessive medical costs.
7. Excessive cost of liability driven up by lawyers that work on contingency fees.
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What are Quality Costs?• A particularly powerful technique in improving
quality. • Quality costs are incurred in two ways(a)The costs incurred in the design,
implementation, operation and maintenance of quality management systems, and
(b)The costs incurred through failure of product manufacture or services.
• Quality management systems may range from simple inspection to systems which include consideration of all the management actions affecting the quality of the product or service.
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• Production system failures can result in:(1)Production delays(2)Scrap(3)Rectification work(4)Late deliveries(5)Defective products going undetected, and even(6)Obsolete stocks• The outcome of these failures leads in turn to:(1)Warranty and product liability charges.(2)Complaint administration and investigation(3)Late delivery penalty clause payments(4)Product recall(5)Loss of goodwill
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• Quality costs can also arise from varieties of activities which may not be connected with the quality of product or service; such as
- Sales and marketing- Design and development- Purchasing- Production (including planning & control)- Handling and storage- Delivery, installation and servicing.
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• The control of these activities may lie within or outside an organization.
• The outside influences will come from suppliers, sub-contractors, stockists, agents, dealers or consumers.
• The quality costs can be summarized as;(1)Cost of appraisal(2)Cost of prevention(3)Cost of failure • Studies have indicated quality costs range from
5% to 25% of company’s turnover depending upon the nature of industry, products or services and the level of quality management employed.
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• Studies have also indicated that 95% of the costs stem from appraisal and failure.
• Neither of these costs add value to the product or service and therefore failure costs should be avoidable.
• If the causes of failure can be eliminated it will lead to a reduction in the need for appraisal with the consequent cost reduction.
• Studies have indicated that implementation of effective quality management systems can reduce quality costs to one third of their previous levels.
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Categories of Quality Costs Quality Related Costs
Conformance Costs Non-conformance Costs
Appraisal Costs
Prevention Costs
Internal failureCosts
External failureCosts
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• Appraisal Costs- The cost of assessing the quality achieved.- These costs include the costs of inspection and
testing carried out during and on completion of manufacture.
• Prevention Costs- The cost of any action taken to investigate,
prevent or reduce defects and failures.- These costs include the cost of planning,
setting-up and maintaining the quality management system.
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• Failure Costs-Internal
- The costs arising within the organization of the failure to achieve the quality specified.
- These costs include the cost of scrap, rework and re-inspection and also the consequential losses that result such as interruption in schedules, idle capacity.
• Failure Costs- External
- The costs arising outside the organization because of failure to achieve the quality specified.
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- These include the costs of claims against warranty, replacement, consequential losses, loss of goodwill and penalty clause payouts for late delivery.
→When a quality costing is carried out, it is necessary to consider appraisal, prevention and failure costs in terms of
- Salaries and wage- Consumable materials- Capital equipment depreciation- Various other costs directly related to department
within the organization.→ The loss of goodwill resulting from poor quality is
difficult to analyze and could be very easily be the most expensive of all the quality costs.
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Crosby's Theory on Quality Management-6 Cs
• While Juran propagated that ‘higher quality costs less’, Philip Crosby tried to popularize the concept that ‘quality is free’.
• Crosby is famous for his 6 Cs.
(1)Comprehension
- Ability to understand and absorb the quality related activities, its sustenance and improvements.
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(2) Commitments- Top management, employees, suppliers and the
customers to get committed to work together towards quality management systems.
(3) Competence- For improving the effectiveness and efficiency of the
quality management system and then sustaining the improvement on a long-term basis.
(4) Corrections- Fool proofing the quality management systems by
rectifying the mistakes and deviations and putting the quality management system back on the track for world-class performance.
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(5) Communications- In order to ensure support to the quality
management system from employees, suppliers and customers alike, communication in the organization should be clear without ambiguity.
(6) Continuance- The organization’s good performance and its
continuous improvement is the essence of a world-class organization and its successful operation.
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Four Absolute Requirements for attainment of quality-Crosby
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QS 9000/TS 16949
• REQMNT SPCIFIC TO AUTO MFG AND SUPPLIERS
• SUPPLIERS QLTY ASSURANCE MANUAL• QS 9000 STDS A SUPERSET OF ISO 9000 AND
APPLIES TO ALL SUPPLIERS OF PRODN MATRL, SERVICE PARTS, OR SERVICES
• CONTENTS OF QS 9000 INCLUDE: -ISO 9000 BASED REQMNTS -SECTOR SPECIFIC REQMNTS -CUSTOMER SPECIFIC REQMNTS
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SECTOR SPECIFIC REQMNTS
• PRODN PART APPROVAL PROCESS -PPAP IS GRANTED FOR A PART NUMBER ,ENGG CHANGE LEVEL MFG LOCN,MATRL SUBCONTRACTING AND PRODN PROCESS ENVT. CHANGE IN ANY OF THESE REQUIRES CUSTOMER NOTIFICATION
• CONTINUOUS IMPROVEMENT THRU TECHNIQUES: -CAPABILITY INDEX -THEORY OF CONSTRAINTS -PPM ANALYSIS -COST OF QLTY ANALYSIS -VALUE ANALYSIS -FAULT TREE ANALYSIS OR FISHBONE DIAGRAM -MISTAKE PROOFING
• MANUFACTURING CAPABILITIES -FACILITY PLANNING AND EFFECTIVENESS -MAINTENANCE AND REPAIR FACILITY
• PART TRACKING MECHANISM
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CUSTOMER SPECIFIC REQMNT
• DEAL WITH SPECIFIC REQMNTS OF CUSTOMER eg MARUTI , TATA MOTORS
• DEFINE SPECIFIC REQMNTS AND ACCEPTANCE LEVELS FOR SAFETY, EMISSION AND NOISE
• SUBMISSION OF DESIGN FMEA FOR EACH CRITICAL PART BY SUPPLIERS
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OVERVIEW OF ISO 14000
• ALSO CALLED ENVIRONMENTAL MGT SYSTEMS(EMS)
• EMS IS A SET OF MGT PROCEDURES THAT ALLOWS AN ORGANIZATION TO IDENTIFY,EVALUATE AND REDUCE THE ENVT IMPACT OF ITS ACTIVITIES
• WELL IMPLEMENTED EMS HELPS ORGANIZATION ADDRESS ITS REGULATORY DEMANDS IN A SYSTEMATIC MANNER WHICH REQUIRES RISK OF NON COMPLIANCE
• EMS HELPS ADDRESS ISSUES SUCH AS NOISE,POLLUTION,EFFLUENT,WATER AND ENERGY CONSERVATION
• EMS PROMOTES STRONGER OPERATIONAL CONTROLS
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ELEMENTS OF ISO 14000 SYSTEM
• ENVIRONMENT POLICY -ROADMAP FOR IMPROVING BUSINESS ENVIRONMENT PERFORMANCE -POLICY SHOULD INCLUDE COMMITMENT FOR POLLUTION PREVENTION AND ADHERENCE TO REGULATIONS , STANDARDS CODE OF PRACTICE ETC
• PLANNING -PLANNING TO INCLUDE COMPLIANCE TO LEGAL REQUIREMENTS
• IMPLEMENTATION -OPERATIONAL PROCEDURES TO IDENTIFY SPECIFIC REQUIRED CONTROLS
• CONTROL -PROCESSES TO MONITOR AND CONTROL ENVIRONMENTAL REGULATIONS
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BENEFITS OF ISO 14000
• IMPROVED ENVT PERFORMANCE
• IDENTIFICATION OF POLLUTION PREVENTION OPPORTUNITIES
• IMPROVED COMPLIANCE
• COST SAVINGS
• REDUCED EHS RISK
• IMPROVED PUBLIC RELATIONS
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OSHAS 18001
• PART OF OCCUPATIONAL HEALTH AND SAFETY MGT SYSTEM
• STRUCTURED PROCESS TO MINIMIZE POTENTIALS OF WORK RELATED INJURIES AND FATALITIES
• OBJECTIVITY IS TO INCREASE PRODUCTIVITY THROUGH MINIMIZATION OF ACCIDENT RELATED COSTS AND TIME
• A SAFETY AND HEALTH MGT POLICY SHOULD CONTAIN GUIDELINES FOR COMPLIANCE,PREVENTION AND CONTINUAL IMPROVEMENT
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MAJOR ELEMENTS OF OSHAS GUIDELINES
• IDENTIFICATION OF HAZARDS ASSOCIATED WITH A SITE,OPERATION AND PRECAUTIONS TO BE TAKEN PRIOR TO WORK COMMENCEMENT AND TERMINATION OF WORK
• MGT COMMITMENT AND EMPLOYEE INVOLVEMENT• HAZARD PREVENTION AND CONTROL• RISK ANALYSIS OF WKPLACES AND PRECAUTIONS TO BE OBSERVED
PRIOR TO START AND TERMINATION OF WORK• RISK ANALYSIS OF MATERIAL AND DECLARATION OF SAFE STORAGE
PLACES• PROCEDURE FOR PERMITS ,CERTIFICATES AND PERSONAL PROTECTION• PERIODIC AUDIT OF SAFETY AND HEALTH PROCEDURES• SAFETY AND HEALTH TRG AND PROCEDURE DEFINITION
IMPLEMENTATION AND CONTROL• DEFINITION OF EMERGENCY PROCEDURE AND CRISIS MGT PLANS AND
AUDIT OF PREPAREDNESS • SHOULD CONTAIN GUIDELINES FOR COMPLIANCE PREVENTION AND
CONTINUOUS IMPROVEMENT
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OVERVIEW OF SA 8000
• SOCIAL ACCOUNTABILITY REQUIREMENT• GLOBAL STANDARD ON CORPORATE SOCIAL ACCOUNTABILITY• AIMS TO GUARANTEE BASIC RIGHTS OF WORKERS INVOLVED
ESPECIALLY IN INDUSTRIAL UNITS• SETS BASIC STANDARDS FOR:
-CHILD LABOUR BELOW AGE OF 15 -FORCED LABOUR -HEALTH AND SAFETY -DISCRIMINATION -FREEDOM OF COLLECTIVE BARGAINING -DISCIPLINARY PRACTICES INCLUDING TORTURE AND CORPORAL PUNISHMENT
-REGULATED WORKING HOURS NOT EXCEEDING 12 HRS/DAY AND ENFORCED BREAK AFTER EVERY 10 SUCCESSIVE WORK DAYS -COMPENSATION TO MEET MINIMUM WAGES ACT -SYSTEMS TO CONTROL COMPLIANCES TO STANDARDS
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BENEFITS OF SA 8000
• PUTTING COMPANY VALUES INTO ACTION
• ENHANCING COMPANY BRAND IMAGE
• IMPROVING EMPLOYEE RECRUITMENT , PERFORMANCE AND RETENTION
• BETTER CORPORATE PERFORMANCE
• ENHANCED EMPLOYEE LOYALTY AND COMMITMENT
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PEOPLE CAPABILITY MATURITY MODEL
• P-CMM MODEL FRAMEWORK FROM CARNEGIE MELLON S/W ENGG INST HELPS ORGS IN DEVELOPING WORKFORCE MATURITY AND ADDRESSING THEIR CRITICAL PEOPLE ISSUES
• BASED ON BEST PRACTICES IN HR,ORG DEV AND KM• P-CMM GUIDES IN IMPROVING PROCESSES FOR MANAGING
AND DEVELOPING WORKFORCE• ENABLES CONTINUOUS WORKFORCE DEVELOPMENT, SETS
PRIORITIES FOR IMPROVEMENT ACTIONS INTEGRATES WORKFORCE DEVELOPMENT WITH PROCESS IMPROVEMENT AND ESTABLISHES CULTURE OF EXCELLENCE
• PROVIDES ROADMAP FOR IMPLEMENTING WORKFORCE PRACTICES THAT CONTINUOUSLY IMPROVE ORG WORKFORCE CAPABILITY
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PEOPLE CAPABILITY MATURITY MODEL
• P-CMM ESTABLISHES AN INTEGRATED SYSTEM OF WORKFORCE PRACTICES THAT MATURE WITH INCREASING ALIGNMENT WITH BUSINESS OBJECTIVES PERFORMANCE AND CHANGING NEEDS
• P-CMM BASED ON 10 PRINCIPLES
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10 PRINCIPLES OF P-CMM
• 1.WKFORCE CAPABILITY DIRECTLY RELATED TO BUSINESS PERFORMANCE
• 2 CAPABILITY IS A COMPETITIVE ISSUE AND A SOURCE OF STRATEGIC ADVANTAGE
• 3 CAPABILITY MUST BE DEFINED IN RELATION TO STRATEGIC BUSINESS OBJECTIVES
• 4 KNOWLEDGE INTENSE WORK SHIFTS FOCUS FROM JOB ELEMENTS TO COMPETENCES
• 5 CAPABILITY CAN BE MEASURED AND IMPROVED AT MULTIPLE LEVELS INCLUDING INDIVIDUALS,WKGRPS,COMPETENCIES AND ORG
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10 PRINCIPLES OF P-CMM
• 6 INVESTMENT IN CAPABILITY IMPROVEMENT OF WKFORCE COMPETENCES THAT ARE CRITICAL TO CORE COMPETENCES AS A BUSINESS
• 7 OPERATIONAL MGT RESPONSIBLE FOR CAPABILITY OF WKFORCE
• 8 IMPROVEMENT OF WORKFORCE CAPABILITY CAN BE PURSUED AS A PROCESS OF PROVEN PRACTICES AND PROCEDURES
• 9 ORG RESPONSIBLE FOR PROVIDING IMPROVEMENT OPPORTUNITIES WHILE PEOPLE ARE RESPONSIBLE FOR TAKING ADVANTAGE OF THEM
• 10 AS TECHNOLOGIES EVOLVE RAPIDLY ORG MUST CONTINUALLY EVOLVE WKFORCE PRACTICES AND DEVELOP NEW COMPETENCES
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MATURITY LEVELS OF P-CMM
• FIVE MATURITY LEVELS THAT ESTABLISH FOUNDATIONS FOR CONTINUALLY IMPROVING INDIVIDUAL COMPETENCIES DEVELOPING EFFECTIVE TEAMS MOTIVATING IMPROVED PERFORMANCE AND SHAPING WKFORCE TO ACCOMPLISH ITS FUTURE BUSINESS PLANS
• EACH MATURITY LEVEL IS A WELL DEFINED STAGE WHICH DISPLAYS NEW CAPABILITIES FOR DEVELOPING WKFORCE
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FIVE STAGES OF MATURITY OF P-CMM
• 1 INITIAL LEVEL-TYPICAL CHARACTERISTICS INCONSISTENCY IN PERFORMING PRACTICES, DISPLACEMENT OF RESPONSIBILITY,EMOTIONALLY DETACHED WORKFORCE
• 2 MANAGED LEVEL-TYPICAL CHARACTERISTICS WORK OVERLOAD,ENVT DISTRACTORS,UNCLEAR PERFORMANCE OBJECTIVES,LACK OF KNOWLEDGE,POOR COMMN,LOW MORALE
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FIVE STAGES OF MATURITY OF P-CMM
• 3 DEFINED LEVEL-BASIC WKFORCE PRACTICES PERFORMED. INCONSISTENCY IN METHOD OF APPLICATION AND NO SYNERGY. OPPORTUNITIES MISSED TO STANDARDIZE PRACTICES BECAUSE KNOWLEDGE REQD TO CONDUCT BUSINESS ACTIVITIES HAS NOT BEEN IDENTIFIED AND IMPARTED
• 4 PREDICTABLE LEVEL-ORG MANAGES AND EXPLOITS CAPABILITY CREATED BY WKFORCE COMPETENCES.ORG IS ABLE TO MANAGE CAPABILITY AND PERFORMANCE QUANTITATIVELY AND PREDICT CAPABILITY FOR PERFORMNG WORK. IT CAN QUANTIFY CAPABILITY OF WKFORCE AND OF COMPETENCE BASED PROCESSES THEY USE IN ASSIGNMENTS
• 5 OPTIMIZING LEVEL-ENTIRE ORG FOCUSED ON CONTINUOUS IMPROVEMENT. IMPROVEMENTS ARE MADE TO CAPABILITY OF INDIVIDUALS AND WKGROUPS ,TO THE PERFORMANCE OF COMPETENCY BASED PROCESSES AND TO WKFORCE ACTIVITIES TREATS CHANGE MGT AS A BUSINESS PROCESS TO BE PERFORMED ON A REGULAR BASIS
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EVOLUTION OF QUALITY MGT
• CONCEPT OF QUALITY HAS GROWN SINCE THE EARLY DEFINITION OF QUALITY AS “PRODUCING OUTPUT IN CONFORMANCE TO CUSTOMER REQUIREMENT”
• EVOLUTION HAS PASSED THROUGH 4 GENERATIONS
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QUALITY BUILDING BLOCK FIRST GENERATION-
INSPECTION• PRIMARY CONCERN IS DETECTION OF ERROR AND
CORRECTIVE ACTIONS THROUGH INSPECTIONS
• EMPHASIS IS ON CONFORMITY WITH CUSTOMER REQMNT.
• RESPONSIBILITY IS INSPECTION DEPARTMENT WHICH INSPECTS AND DOES ACCEPTANCE SAMPLING
• KEY OBJECTIVE OF EXERCISE IS TO IDENTIFY AND RECTIFY NON CONFORMITIES.
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QUALITY BUILDING BLOCK SECOND GENERATION-QC
• PRIMARY CONCERN IS QUALITY CONTROL
• EMPHASIS ON UNIFORMITY WITH REDUCED INSPECTION USING STATISTICAL TOOLS AND TECHNIQUES
• RESPONSIBILITY IS MANUFACTURING AND ENGINEERING DEPARTMENT
• DEVELOP QUALITY MANUAL AND PROCESS PERFORMANCE MEASUREMENT SYSTEMS
• QUALITY PLANNING IN PLACE
• SELF INSPECTION DONE BY OPERATORS
• MOTTO IS DO IT RIGHT FIRST TIME
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QUALITY BUILDING BLOCK THIRD GENERATION-QA
• PRIMARY CONCERN IS QUALITY ASSURANCE
• EMPHASIS ON PRODUCTION LINE AND QUALITY FROM THE FIRST STAGE
• QUALITY SYSTEMS DEVELOPMENT
• IMPLEMENTATION OF QFD, COST OF QUALITY, FMECA, VALUE ANALYSIS
• MOTTO IS DO THE RIGHT THING ALWAYS
• ELIMINATE NON VALUE ACTIVITIES AND FUNCTIONALITIES
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QUALITY BUILDING BLOCK FOURTH GENERATION-SQM
• EMPHASIS ON MARKET AND CONSUMER NEEDS
• QUALITY IS A STRATEGIC PLANNING EXERCISE
• INVOLVE CUSTOMERS, SUPPLIERS AND EMPLOYEES
• PROCESS PERFORMANCE MEASUREMENT AND MANAGEMENT
• OBJECTIVES ARE TO IMPROVE RESPONSIVENESS, REDUCE CYCLE TIME, IMPROVE QUALITY
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INSPECTION
• INSPECTION IS CONFORMITY EVALUATION BY OBSERVATION AND JUDGEMENT ACCOMPANIED BY MEASUREMENT AND TESTING
• UNDER AN INSPECTION BASED SYSTEM ONE OR MORE CHARACTERISTICS OF A PRODUCT PROCESS OR ACTIVITY ARE EXAMINED, MEASURED, TESTED OR ASSESSED AND COMPARED WITH SPECIFIED REQMNT TO ASSESS CONFORMITY WITH SPECS OR PERF. STDS
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INSPECTION
• IN SERVICE, SYSTEM IS APPLIED AT KEY POINTS CALLED APPRAILSAL POINTS
• INSPECTION CARRIED OUT THROUGH SELF INSPECTION OR AT END OF ACTIVITY
• AFTER EVENT SCREENING PROCESS WITH NO PREVENTION CONTENT OTHER THAN IDENTIFYING NON CONFORMING ENTITIES
• EMPHASIS IS ON REACTIVE QUICK FIX CORRECTIVE ACTIONS AND THINKING IS DEPARTMENT BASED
• DOES NOT INVOLVE SUPPLIERS OR CUSTOMERS
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DIFFERENT WAYS OF PERFORMING INSPECTION
• INSPECTION PROCESS - INTERNAL INSPECTION: INSPECTION CONDUCTED AS PART OF
THE OPERATION OR WORK PROCESS (E.G. AN ASSEMBLER NOTING HOW WELL PARTS FIT TOGETHER)
- EXTERNAL INSPECTION: INSPECTION CONDUCTED SEPARATE FROM THE OPERATION (E.G. AN INSPECTOR MEASURING PARTS FOR TOLERANCE FIT)
• INSPECTION MEASUREMENT - SENSORY INSPECTION: INSPECTION BY HUMAN SENSES,
INCLUDING TOUCH, VISION, HEARING, TASTE, SMELL, OR PERCEPTION (E.G. LOOKING FOR SCRATCHES ON LENSES, GENERAL PERCEPTION OF THE QUALITY OF ROOM SERVICE IN A HOTEL)
- PHYSICAL INSPECTION: INSPECTION WITH INSTRUMENTS OR DEVICES (E.G. CALIPERS, LASERS, SCALES, THERMOMETERS)
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DIFFERENT WAYS OF PERFORMING INSPECTION
• POPULATION INSPECTED - 100% INSPECTION: INSPECTION OF EVERY ITEM OR UNIT IN THE
POPULATION (WHERE POPULATION REFERS TO A PARTICULAR LOT OR BATCH OF ITEMS OR ITEMS PRODUCED BY A PARTICULAR PROCESS). THIS IS ALSO CALLED SCREENING.
- SAMPLE INSPECTION: INSPECTION OF A FRACTION OR SUBSET OF THE POPULATION; THE RESULT IS USED TO MAKE AN INFERENCE ABOUT THE ENTIRE POPULATION.
• INSPECTION JUDGEMENT - SUBJECTIVE INSPECTION: INSPECTION AND CONCLUSIONS MADE
BY THE PERSON WHO ALSO DID THE WORK; ALSO CALLED SELF-INSPECTION.
- OBJECTIVE INSPECTION: INSPECTION PERFORMED BY SOMEONE OTHER THAN THE PERSON WHO DIE THE WORK. IT INCLUDES AUTOMATED INSPECTION (MECHANICAL DEVICES) AND SUCCESSIVE INSPECTION (INSPECTION BY DOWNSTREAM WORKERS)
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DIFFERENT WAYS OF PERFORMING INSPECTION
• QUALITY CHARACTERISTICS INSPECTED
- VARIABLES INSPECTION: INSPECTION OF A FEATURE THAT IS REPRESENTED AND MEASURED WITH A CONTINUOUS NUMBERING SYSTEM OR SCALE (E.G. PHYSICAL DIMENSIONS, AND FEATURES SUCH AS WEIGHT, PRESSURE, AND TEMPERATURE)
- ATTRIBUTES INSPECTION: INSPECTION OF A FEATURE THAT FALLS INTO A SIMPLE CLASSIFICATION SCHEME (E.G. CONFORMING OR NONCONFORMING, DEFECTIVE OR NONDEFECTIVE, POOR/AVERAGE/GOOD, HIGH OR LOW)
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ASPECTS OF INSPECTION
• INSPECTION ITSELF ADDS NO VALUE AND IS WASTEFUL
• HOWEVER INSPECTION CAN NEVER BE TOTALLY ELIMINATED (EVEN DEFECT FREE PROCESSES REQUIRE INSPECTION TO ENSURE THEY STAY THAT WAY
• MINIMISE INSPECTION THROUGH ATTENTION TO QUALITY OF DESIGN AND QUALITY OF INPUTS
• FREQUENCY OF INSPECTION AND PLACES IN THE PROCESS THAT NEED INSPECTION CAN BE REDUCED WHILE QUALITY OF OUTPUT IS INCREASED
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ASPECTS OF INSPECTION
• INSPECTION CAN BE CARRIED OUT AS A PART OF AN OPERATION OR WORK PROCESS
• INSPECTION CAN BE DONE PHYSICALLY OR BY DEVICES
• QUANTITATIVELY INSPECTION CAN BE 100% OR SAMPLING
• INSPECTION IS ALSO DONE BY AN OPERATOR IN THE ASSEMBLY LINE (SUBJECTIVE) OR BY A QUALITY CHECKER AT THE END OF THE LINE (OBJECTIVE)
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CHARACTERISTICS OF INSPECTION
• PRIMARY CONCERN IS DETECTION• EMPHASIS IS PRODUCT UNIFORMITY• METHOD IS GAUGING AND
MEASUREMENT• ROLE OF QLTY INSPECTOR IS INSPECTION
AND ACCEPTANCE SAMPLING• RESPONSIBILITY IS INSPECTION
DEPARTMENT
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QUALITY CONTROL
• DETAILED PRODUCT SPECIFICATIONS ESTABLISHED AND PROCEDURES AND CONTROL SYSTEMS IN PLACE ALONGWITH STAGEWISE PRODUCT TESTING AND REPORTING ACTIVITIES, LOGGING OF PROCESS PERF. DATA AND FEEDBACK OF PROCESS INFORMATION
• WITH QUALITY CONTROL THERE WILL BE A DEVIATION FROM EARLIER INSPECTION METHODS BY WAY OF SELF INSPECTION BY OPERATORS (PREVENTING DEFECTS FROM PASSING DOWN THE LINE), USE OF INFORMATION AND TOOLS TO PREVENT OFF SPECIFICATION PRODUCTS FROM BEING DELIVERED TO CUSTOMERS
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QUALITY CONTROL
• QUALITY CONTROL MEASURES LEAD TO GREATER PROCESS CONTROL AND LOWER INCIDENCE OF NON CONFORMANCE
• ORGS WHOSE APPROACH TO QLTY IS BASED ON INSP & QLTY CONTROL OPERATE IN DETECTION TYPE MODE (FINDING & FIXING PROBLEMS)
• IN DETECTION ENVT EMPHASIS IS ON PROCEDURES - IT IS ABOUT GETTING RID OF THE PROJECTS AFTER THEY HAVE
OCCURRED - CONSIDERABLE EFFORT IS SPENT ON AFTER THE EVENT INSPECTING,
TROUBLESHOOTING, CHECKING, TESTING AND PROVIDING REACTIVE QUICK FIXES
- DETECTION WILL NOT IMPROVE QLTY BUT ONLY HIGHLIGHTWHEN IT IS NOT PRESENT
- PROBLEMS ARE CONTAINED BUT NOT ELIMINATED AND ARE LIKELY TO REPEAT
• ORGS OPERATING IN DETECTION MANNER ARE PREOCCUPIED WITH SURVIVAL
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QUALITY CONTROL MATRIX
• AREA OF RESPONSIBILITY PERSON -DETERMINE CUST NEEDS MKTNG
-QLTY LEVELS FOR BUSINESS TOP MGT - PRODUCT DESIGN SPECS ENGG -MFG PROCESS DESIGN MFG -PRODUCE QLTY GOODS MFG -DETERMINE PROCESS CAPABILITY QC -QUALIFY SUPPLIERS ON QLTY MATRLS -QLTY SYSTEMS PLANNING TOP MGT + QC -PLAN INSPECTION QC -FEEDBACK QLTY INFO QC -ADDRESSING QLTY COMP[LAINTS QC -CALCULATE QLTY COSTS FINANCE -ANALYZE QLTY COSTS QC -MEASURING QLTY QC
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PROCESSES FOR QLTY CONTROL
• IDENTIFY CUSTOMERS AND THEIR NEEDS
• DEVELOP PRODUCT FEATURES
• ESTABLISH QUALITY GOALS
• DEVELOP PROCESS FEATURES
• ESTABLISH PROCESS CONTROLS
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QUALITY CONTROL FOR TQM
• CHOOSE UNITS TO MEASURE
• SET GOALS
• MEASURE ACTUAL PERFORMANCE
• INTERPRETE THE DIFFERENCE
• TAKE ACTION ON THE DIFFERENCE
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CHARACTERISTICS OF QUALITY CONTROL(SQC)
• PRIMARY CONCERN IS CONTROL
• PRODUCT UNIFORMITY WITH REDUCED INSPECTION
• WIDE USAGE OF SQC TOOLS
• RESPONSIBILITY IS MFG AND ENGG
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QUALITY ASSURANCE
• QUALITY ASSURANCE IS A PREVENTIVE BASED SYSTEM WHICH IMPROVED PRODUCT/ SERVICE BY ELIMINATING THE ROOT CAUSE OF PROBLEM
• LASTING AND CONTINUOUS IMPROVEMENT IN QUALITY CAN BE ACHIEVED BY DIRECTING ORG EFFORTS TOWARDS PLANNING AND PREVENTING PROBLEMS FROM OCCURING AT SOURCE
• QA FOCUSES ON PROVIDING CONFIDENCE THAT QLTY REQMNTS WILL BE FULFILED (ISO 9000:2000)
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QUALITY ASSURANCE
• ADDL FEATURES REQD WHEN PROGRESSING FROM QC TO QA ARE – QMS TO INCREASE CONFORMITY, SEVEN QLTY CONTROL TOOLS, SPC, FAILURE MODE EFFECT ANALYSIS AND QLTY COSTS
• ACCENT IS ON PREVENTION OF NON CONFORMANCE
• EMPHASIS IS ON DESIGN IMPROVEMENT, PROCESS CONTROL IMPROVEMENT, ETC.
• QA IS A PREVENTION BASED SYSTEM WHICH INCREASES PRODUCTIVITY BY EMPHASISING ON DESIGN ASPECTS OF PRODUCT / SERVICE
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QUALITY ASSURANCE
• BY INTEGRATING QLTY INTO PLANNING & DESIGN STAGE IT STOPS NON CONFORMITY FROM OCCURING
• PROACTIVE APPROACH WHICH LOOKS AT PROCESS CONFORMITIES RESULTING IN PRODUCT CONFORMITIES
• SIX SIGMA ADVOCATES A METHODOLOGY CALLED PDCA
• QLTY CREATED AT DESIGN STAGE • CHANGING FROM DETECTION TO PREVENTION
REQUIRES NEW OPERATING PHILOSOPHY SUCH AS CROSS FUNCTIONAL TEAMS AND ROOT CAUSE ANALYSIS
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PLANNING FOR QLTY ASSURANCE
• ACTIVITY OF DEVELOPING PRODUCTS AND PROCESSES REQD TO MEET CUSTOMER NEEDS
• INVOLVES FOLLOWING STEPS: -ESTABLISH QLTY GOALS AND IDENTIFY CUSTOMERS WHO WILL BE IMPACTED BY EFFORTS TO MEET GOALS
• DETERMINE CUSTOMER NEEDS
• DEVELOP PRODUCT FEATURES THAT RESPOND TO CUSTOMER NEEDS
• DEVELOP PROCESSES TO PRODUCE PRODUCT FEATURES
• ESTABLISH PROCESS CONTROLS AND TRANSFER RESULTING PLANS TO OPERATING FORCES
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CHARACTERISTICS OF QUALITY ASSURANCE
• PRIMARY CONCERN IS COORDINATION• EMPHASIS IS ON ENTIRE PRODN CHAIN• METHODS ARE PROGRAMS AND SYSTEMS• QLTY MSRMNT PLANNING DONE BY QLTY
PROFESSIONALS• ALL DEPTS HAVE RESPONSIBILITY
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COMPANYWIDE QUALITY CONTROL(SQM)
• QLTY INITIATIVE LAUNCHED COMPANYWIDE IS ALSO CALLED COMPANYWIDE QLTY CONTROL
• AVENUE THRU WHICH KAIZEN PURSUED• BUILDING BLOCKS OF CWQC ARE INFRASTRUCTURE AGILITY,
PEOPLE COMPETENCE AND PROCESS CAPABILITY• CWQC IS A MEANS TO PROVIDE GOOD AND LOW COST PRODUCTS
PASSING ON THE BENEFITS TO THE STAKEHOLDERS• CWQC REFERS TO :
-QLTY OF HUMAN BEHAVIOUR -QLTY OF WORK DONE -QLTY OF MGT -QLTY OF WORK ENVT -QLTY OF PRODUCT AND SERVICE -QLTY OF TRG -QC ACTIVITIES - CWQC SELF APPRAISAL AUDITS SUCH AS MBNQA -APPLICATION OF STATISTICAL METHODS
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CHARACTERISTICS OF CWQC
• QUALITY NOT PROFIT FIRST
• CONSUMER ORIENTED NOT PRODUCER ORIENTED QC
• NEXT PROCESS IS THE CUSTOMER
• WORK WITH FACTS AND DATA AND APPL OF SQC TOOLS
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SALIENT FEATURES OF CWQC
• TQC WITH ALL EMPLOYEE PARTICIPATION
• EMPHASIS ON EDUCATION AND TRG• QLTY CTRL CIRCLE ACTIVITIES• CWQC AUDITS• USAGE OF INTERNATIONAL QLTY
FRAMEWORKS TO ASSESS READINESS OF PROCESSES TO MEET CUSTOMER REQUIREMENTS
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BENEFITS OF CWQC
• PROVIDE PRODUCTS,SERVICES THAT MEET CUST REQMNT
• HIGHER PROFITABILITY THRU IMPROVED WORK PROCEDURES FEWER DEFECTS,LESSER COSTS
• HELP EMPL ACHIEVE CORPORATE GOALS• SAVINGS IN ENERGY AND OTHER RESOURCES• HIGHER EFFECTIVENESS OF RESOURCES• IMPROVEMENT IN PROCESS THRUPUT• ENHANCED CUSTOMER HAPPINESS
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CHARACTERISTICS OF SQM
• PRIMARY CONCERN IS STRATEGIC VIEW• EMPHASIS ON MKTS AND CUSTOMER
NEEDS• METHODS ARE STRATEGIC PLANG GOAL
SETTING• QLTY PROFESSIONALS DO GOAL SETTIG
TRG AND CONSULTATION• ALL EMPLOYEES HAVE RESPONSIBILITY
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LEVELS OF TQM ADOPTION
• SIX LEVELS OF TQM ADOPTION -UNCOMMITED -DRIFTER -TOOL PUSHER -IMPROVER -AWARD WINNER -WORLD CLASS
• LEVELS SIGNIFY CHARACTERISTICS AND BEHAVIOUR WHICH ORG DISPLAYS IN RELATION TO TQM
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LEVEL 1-UNCOMMITTED
• NO FORMAL PROCESS OF QLTY IMPROVEMENT AND PROBABLY USE SOME SQC METHODS UNDER CUSTOMER PRESSURE
• QLTY IMPROVEMENT IS SEEN AS AN EXTERNALLY IMPOSED CONTRACTUAL REQMNT AND AN ADDITIONAL COST
• FOCUS ON MAS PRODUCT PRODUCTION NOT PROCESS
• CORRECTIVE AND PREVENTIVE ACTION TAKEN ONLY IN RESPONSE TO COMPLAINTS
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LEVEL 1-UNCOMMITTED CHARACTERISTICS
• EMPHASIS ON RETURN ON SALES AND ASSETS AT THE EXPENSE OF OTHER MEASURED FINANCIAL AND NON FINANCIAL METRICS
• MEETING OUTPUT AND SALES TARGET WHATEVER THE COST• LACK OF QA REGULATING SYSTEM RESULTING IN QLTY ASPECTS
BEING DISCARDED AND HIGH INCIDENCE OF INTERNAL AND EXTERNAL FAILURE
• EMPLOYEES SEE QLTY AS SOMEBODY ELSES JOB AND DON’T FEEL RESPONSIBLE FOR QLTY OF THEIR OUTPUT
• INEFFECTIVE AND INACCURATE CORRECTIVE ACTION CONTROL PROCEDURES
• PIECEWORK INCENTIVE REWARDS QTY AND NOT QLTY• SAME PROBLEMS RECUR WITH NO FORMAL PROCEDURES FOR
PERMANENT FIXES• PROCESS ACTIVITY INTRICACIES NOT UNDERSTOOD• PASS THE BUCK METHODOLY FOR BLAME
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LEVEL 2-DRIFTERS
• ENGAGED IN PROCESS OF CONTINUOUS IMPROVEMENT FOR SOME TIME
• MAY BE CONTEMPLATING ONE OF THE QLTY FRAMEWORKS
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LEVEL 2-DRIFTERS CHARACTERISTICS
• CONTINUOUS IMPROVEMENT NOT INTEGRATED WITH BUSINESS AND DEPARTMENTAL OBJECTIVES
• TQM NOT PENETRATED TO SHOP FLOOR AND OFFICE LEVELS
• MGT SUSCEPTIBLE TO LATEST MGT FADS• QLTY DEPT HAS LOW STATUS IN ORG• INADEQUATE REPORTING OF DEFECTS , FEEDBACK AND
LACK OF CLARITY ON WHAT REAL NON CONFORMANCE AND DEFECTS ARE
• GAPS IN PEOPLE UNDERSTANDING OF TQM• DRIFT FROM ONE INITIATIVE TO ANOTHER WITHOUT
CONSOLIDATING
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LEVEL 3-TOOL PUSHERS
• HAS MORE OPERATING EXPERIENCE OF QLTY ENVT
• GENERALLY HAS IMPLEMENTED QMS AND EMPLOYS TOOLS AND TECHNIQUES SUCH AS SQC AND 7 QC TOOLS
• SEVERAL ORGS AT THIS LEVEL USE EXCELLENCE MODELS
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LEVEL 3-TOOL PUSHERS CHARACTERISTICS
• IMPLEMENTATION OF SPC,FMEA,DOE AND BENCHMARKING
• CONTINUOUS IMPROVEMENT EFFORT CONCENTRATED IN MFG OPERATIONS WITH OTHER DEPTS LES INVOLVED IN IMPROVEMENT EFFORTS
• DETAILED QLTY PROCEDURES ARE IN PLACE AND FOCUS IS ON CONTROL. EMPHASIS IS ON SOLVING CURRENT PROBLEMS
• SHORT TERM RESULTS REGARDING PRODUCT OUTPUT AND QLTY RESULTING IN REACTIVE SOLUTIONS AND NEGLECT OF LONG TERM ROOT CAUSE IMPROVEMENT
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LEVEL 4-IMPROVERS
• ENGAGED IN PROCESS OF CONTINUOUS IMPROVEMENT FOR A LONG TIME
• RECOGNISE THE IMPORTANCE OF CUSTOMER FOCUSED CONTINUOUS IMPROVEMENT
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LEVEL 4-IMPROVERS CHARACTERISTICS
• POLICY DEPLOYMENT AND PROBLEM SOLVING INFRASTRCTRE IN PLACE AS WELL AS A PROACTIVE QLTY SYSTEM
• HIGH DEGREE OF CLOSED LOOP ERROR PREVENTION THROUGH CONTROL OF PROCESSES
• PROCESS IMPROVEMENT ACTIVITIES EXIST
• BENCHMARKING STUDIES DONE• REAL PROGRESS MADE
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LEVEL 5-AWARD WINNERS
• WINNERS OF MBNQA,EFQM,DEMING ETC
• HIGH DEGREE OF REALISED PROCESS CAPABILITY AND EFFECTIVENESS
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LEVEL 5-AWARD WINNERS CHARACTERISTICS
• BUSINESS PROCESSES ARE EFFICIENT EFFECTIVE RELIABLE AND AGILE
• PROCESSES RESPONSIVE TO CUSTOMER NEEDS• EFECTIVE CROSS FUNCTIONAL PROCESSES• TQM VIEWED BY ALL EMPLOYEES AS A WAY OF
MANAGING BUSINESS TO SATISFY AND DELIGHT INTERNAL AND EXTERNAL CUSTOMERS
• PERCEPTIONS OF KEY STAKEHOLDERS ACTED UPON FOR IMPROVEMENT
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LEVEL 6-WORLD CLASS
• TOTAL INTEGRATION OF CONTINUOUS IMPROVEMENT AND BUSINESS STRATEGY TO DELIGHT CUSTOMER
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LEVEL 6-WORLD CLASS CHARACTERISTICS
• COMPANY VALUES UNDERSTOOD BY ALL EMPLOYEES CUSTOMERS SUPPLIERS
• RIGHT THINGS DONE RIGHT FIRST TIME EVERY TIME• WASTE IS NOT TOLERATED• KEY PROCESSES OF ORG ALIGNED WITH LONG TERM
GOALS AND VISION TO CREATE AN ENVIRONMENT CONDUCIVE TO IMPROVEMENT
• CAPABILITY TO PREDICT AND RESPOND TO CHANGING MKT CONDITIONS, CUSTOMER NEEDS AND REQMNTS
• COMPETE AND WIN AGAINST THE BEST WORLD WIDE• INDUSTRY LEADERS IN THEIR SPACE
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DEMING PDCA
• PDCA IS PLAN DO CHECK ACT• PLAN
-IDENTIFY PROBLEM BY FACTS AND DATA -COLLECT DATA AND DETERMINE GOALS TO BE ACHIEVED -ANALYSE PROBLEM AND POSSIBLE CAUSES AND ISOLATE ROOT CAUSE
• DO -REMEDIAL STEPS FOR ERADICATION OF ROOT CAUSE OF PROBLEM
• CHECK -CHECK,MEASURE,ANALYSE AND MONITOR RESULTS
• ACT -STANDARDISE IMPROVEMENTS -CONTINUOUS REVIEW AND IMPROVEMENT
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QUALITY IMPROVEMENT FOR TQM
• DIAGNOSE THE CAUSES OF POOR QLTY
• PROVIDE EFFECTIVE REMEDIES
• EFFECT CONTINUOUS IMPROVEMENT
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QUALITY AUDIT AND REVIEW
• AUDIT IS THE MEANS BY WHICH MGT DECIDES WHETHER PEOPLE ARE CARRYING OUT DUTIES AS PER MGT PLAN
• REVIEW IS MEANS BY WHICH MGT DETERMINES WHETHER ORG IS EFFECTIVE IN MEETING CORPORATE GOALS(INCR MKT SHARE ETC)
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QUALITY AUDITS
• SYSTEMATIC AND INDEPENDENT EXAMINATION TO DETERMINE WHETHER QUALITY ACTIVITIES COMPLY WITH PLANNED EXPECTATIONS AND ARE IMPLEMENTED EFFECTIVELY TO ACHIEVE OBJECTIVES
• QUALITY AUDITS APPLY TO PRODUCTS,PROCESSES AND SERVICES
• AUDITS CONDUCTED INTERNALLY AND EXTERNALLY• AUDITS ARE 1ST PARTY,2ND PARTY OR 3RD PARTY• 1ST PARTY AUDITS CONDUCTED INTERNALLY• 2ND PARTY AUDITS CONDUCTED BY CUSTOMER• 3RD PARTY AUDITS CONDUCTED BY OUTSIDE PARTIES
GENERALLY AUTHORIZED TO CERTIFY A CLIENT FOR COMPLIANCE
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TYPES OF AUDITS
• COMPLIANCE AUDIT TO STANDARDS SUCH AS ISO 9000,ISO 14000,OSHAS 18000,SA 8000 ,SIGMA,CMM,P-CMM,
• COMPLIANCE AUDITS TO REGULATORY REQMNTS SUCH AS GAAP,BASEL 2 ETC
• ADEQUACY AUDIT IS AN EXERCISE WHICH DETERMINES THE EXTENT TO WHICH THE QLTY PROCEDURES ADEQUATELY MEET THE REQMNT OF COMPLIANCE STDS
• CONTROL AUDIT FOR ENSURING ACCURACY AND HONESTY OF FINANCIAL TRANSACTIONS WHICH UPDATE FINANCIAL FIGURES PUBLISHED IN THE BALANCE SHEET EG SOX 404,CLAUSE 49,SAS 300, AAS ETC
• PROCESS RISK AUDITS WHICH ANALYSE THE VARIOUS RISKS OF EVENTS NOT HAPPENING AND THEIR CONSEQUENCES,IMPACT AND REMEDIES
• FINANCIAL AUDITS EG INTERNAL AND EXTERNAL • COST AUDITS • SATISFACTION AUDITS EG IBM REVERSE APPRAISALS
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MAIN FEATURES OF QLTY AUDIT
• ENTAILS SYSTEMATIC EVALUATION OF ACTIVITIES RELATED TO QLTY MGT
• PERSONS NOT ASSOCIATED WITH PROCESS CARRY OUT AUDIT
• PROCESS OF AUDIT DETERMINES WHETHER -DOCUMENTATION MEETS THE DEFINED QLTY OBJECTIVE OF THE ORGANIZATION -ACTIVITIES PERFORMED ARE IN CONFORMITY WITH THE DOCUMENTED SYSTEM -QLTY SYSTEM IS EFFECTIVE WITH RESPECT TO DOCUMENTATION AND ITS IMPLEMENTATION IN MEETING THE DEFINED QLTY OBJECTIVES -STATUTORY AND SAFETY REQMNT ARE BEING FULFILED
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AUDIT OBJECTIVES
• DETERMINE CONFORMITY OR NON CONFORMITY OF QLTY SYSTEMS ELEMENTS WITH SPECIFIED REQMNT
• DETERMINE EFFECTIVENESS OF IMPLEMENTED QLTY SYSTEM IN MEETING SPECIFIED QLTY OBJECTIVE
• AFFORD OPPORTUNITY TO IMPROVE QLTY SYSTEM• EVALUATE A SUPPLIER TO ESTABLISH A CONTRACTUAL
RELATIONSHIP AND VERIFY THAT SUPPLIERS QLTY SYSTEM MEETS REQMNT
• DETERMINE ADEQUACY,SUITABILITY AND EFFECTIVENESS OF SYSTEM
• AID PROBLEM SOLVING• HELP IN ESTABLISHING CAPABILITY OF PROCESS• ENSURE MEETING STATUTORY REQMNT
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TQM IMPLEMENTATION FRAMEWORK
• COMPANY GOALS AND STRATEGIES
• GOAL TRANSLATION INTO ACTIVITIES AND MEASURES
• PROCESS MAPPING
• PROCESS MEASUREMENT
• BENCHMARKING
• GAP ANALYSIS
• BUSINESS PROCESS AUDIT AND REENGINEERING
• MEASURING PROGRESS
• CONTINUOUS IMPROVEMENT AND FEEDBACK
*THESE ACTIVITIES CAN BE CLUBBED INTO 4 CATEGORIES
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TEN POINTS FOR FOUNDATION OF TQM FRAMEWORK
• LONG TERM COMMITMENT TO CONTINUAL IMPROVEMENT• ADOPT ZERO DEFECT PROGRAM TO CHANGE CULTURE TO RIGHT FIRST
TIME• TRAIN PEOPLE TO UNDERSTAND CUSTOMER-SUPPLIER RELATIONSHIPS• DO NOT BUY PRODUCTS AND SERVICES ON COST ALONE-LOOK AT THE
TOTAL COST• RECOGNIZE THAT IMPROVEMENT OF THE SYSTEMS NEEDS TO BE
MANAGED• ADOPT MODERN METHODS OF SUPERVISION AND TRAINING AND
ELIMINATE FEAR• ELIMINATE BARRIERS BETWEEN DEPTS BY MANAGING THE PROCESS• ELIMINATE ARBITRARY GOALS WITHOUT METHODS,STANDARDS BASED
ON NUMBERS,BARRIERS TO PRICE OF WORKMANSHIP,GET FACTS BY USING CORRECT TOOLS
• CONSTANTLY EDUCATE AND RETRAIN AND DEVELOP EXPERTS IN THE BUSINESS
• DEVELOP A SYSTEMATIC APPROACH TO MANAGE THE TQM IMPLEMENTATION
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CATEGORIES OF ACTIVITIES IN FRAMEWORK
• ORGANISING -LONG TERM STRATEGY FOR TQM FORMULATED AND INTEGRATED INTO OTHER STRATEGIES WHICH INCLUDES A QLTY POLICY -CONTINUOUS IMPROVEMENT SCHEME DEVELOPED -STAGES OF IMPROVEMENT ACTIVITIES IDENTIFIED -VISION,MISSION STATEMENTS DEVELOPED -COMMON ORG DEFINITION OF QLTY -ESTABLISHMENT OF FORMAL PROCESSES FOR QLTY ASSESSMENT AND CONTROLS
143
CATEGORIES OF ACTIVITIES
• SYSTEMS AND TECHNIQUES -INVOLVES DEVELOPMENT OF QMS TO PROVIDE CONTROLS -IDENTIFY TOOLS FOR CONTINUOUS IMPROVEMENT -IMPL FORMAL QLTY SYSTEMS - KEY BUSINESS PROCESS ANALYSIS AND IMPROVEMENT BASED ON MEASUREMENT
144
CATEGORIES OF ACTIVITIES
• MEASUREMENT AND FEEDBACK -ENABLES VOICE OF CUSTOMER TO BE TRANSLATED INTO MEASURE OF PERFORMANCE WHICH ORG NEEDS TO CONTROL AND IMPROVE -DEALS WITH INTERNAL MEASURES OF PERFORMANCE -KEY INTERNAL AND EXTERNAL PERFORMANCE MSRS DEFINED TO ASSESS PROGRESS MADE AND TO ENSURE THAT CUSTOMERS ARE SATISFIED -DEFINE CUSTOMER EXPECTATIONS IN PERFORMANCE -BENCHMARK FOR IMPL , CTRL, IMPR -LINK REWARDS TO IMPR AND RESULTS -ASSESS PROGRESS TOWARDS WORLD CLASS PERFORMANCE eg MALCOLM BALDRIDGE NATIONAL QLTY AWARD -ENSURE THAT GAPS BETWEEN ACTUAL PERFORMANCE AND CUSTOMER EXPECTATION ARE IDENTIFIED,ANALYSED AND ADDRESSED -COMPLAINTS FROM CUSTOMERS ADDRESSED
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CATEGORIES OF ACTIVITIES
• CULTURE CHANGE -ASSESS CURRENT ORG CULTURE -DEVELOP PLAN FOR CHANGE -CHANGE SHOULD BE PLANNED AND TAKE PLACE IN INCREMENTAL MANNER -FOCUS ON ROLE OF PEOPLE WITHIN ORG -RECOGNISE ONGOING CULTURAL CHANGES -CHANGE PLANS INCREMENTALLY -CONSIDER INTER RELATIONSHIP OF ALL ACTIVITIES IN ORG -IDENTIFY FACTORS WHICH INDICATE CULTURE CHANGE
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HOUSE OF TQM
• ROOF-QLTY PLANNING -WORLD CLASS ORG VISION
• PILLARS-STATISTICAL PROCESS AND QLTY CONTROL -MGT CONTROL SYSTEMS
• FOUNDATION-CONTINUOUS IMPROVEMENT -ADDED VALUE MGT ACTIVITY –EMPLOYEE INVOLVEMNT
• FOUNDATION SYMBOLISES MOTIVATIONAL APPROACH AND QUEST FOR CONTINUOUS IMPROVEMENT
• ROOF IS INDICATIVE OF QLTY ASSURANCE AND CUSTOMER SATISFACTION
• PILLARS-SIGNIFY TECHNIQUES AND METHODS USED TO ACHIEVE OBJECTIVES
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PRINCIPLES GOVERNING TQM SYSTEMS
• CUSTOMER FOCUSED APPROACH THAT ENSURES THAT ALL ACTIVITIES AND PROCESSES ARE FOCUSED TOWARDS ADDRESSING CUSTOMER NEEDS
• STRATEGIC PLANNING AND LEADERSHIP NEEDED WITH STRONG CUSTOMER ORIENTATION AND ABILITY TO SATISFY STAKEHOLDERS
• CROSS FUNCTIONAL HORIZONTAL PROCESSES WITH IDENTIFICATION OF INTERNAL AND EXTERNAL CUSTOMERS
• CONTINUOUS IMPROVEMENT OF ALL PROCESSES • TRAINING AND DEVELOPMENT OF PEOPLE• EMPOWERMENT OF PEOPLE
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PERFORMANCE MEASURES FOR TQM
• ORG NEEDS QUANTIFIABLE MEASURES OF QLTY• MEASURES SHOULD BE AS SEEN BY CUSTOMER• PERFORMANCE MEASURES INCLUDE
-FIELD FAILURES –MTBF -CUSTOMER RETURNS –CUSTOMER COMPLAINTS -LOST BUSINESS -NON CONFORMANCE LEVELS –QLTY COSTS -EMPLOYEE SATISFACTION –ERRORS IN ORDERS –ERRORS IN QUOTE –ERRORS IN INVOICES –RATIO OF SUCCESSFUL QUOTES TO TOTAL QUOTES –AGEING OF DEBTS –COST OF CAPITAL IN OVERDUE ACR -%INCORRECT RECRUITS -TIME TO RECRUIT -STAFF COMPLAINTS –STAFF TURNOVER -RECRUITMENT COST -%NEGATIVE 360 DEGREE APPRAISALS -%GOODS REJECTED -%GOODS SHORTAGE –NO ENGG CHANGES –TIME TO RESPOND TO QUOTES –TURNAROUND TIME FOR REPAIRS -
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KANOS MODEL OF CUSTOMER SATISFACTION
• CLASSIFIES PRODUCT ATTRIBUTES BASED ON HOW THEY ARE PERCEIVED BY CUSTOMERAND THEIR EFFECTS ON CUSTOMER SATISFACTION
• CLASSIFICATION USEFUL FOR GUIDING DESIGN DECISIONS
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PROJECT ACTIVITIES IN KANO MODEL
• IDENTIFYING CUSTOMER NEEDS
• DETERMINING FUNCTIONAL REQUIREMENT
• CONCEPT DEVELOPMENT
• ANALYSING CXOMPETITIVE PRODUCTS
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TOOLS USED IN KANO MODEL
• QUALITY FUNCTION DEPLOYMENT
• VALUE ANALYSIS
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FEATURES OF KANO MODEL
• DIVIDES PRODUCT ATTRIBUTES INTO 3 CATEGORIES – THRESHOLD,PERFORMANCE AND EXCITEMENT
• A COMPETITIVE PRODUCT MEETS BASIC ATTRIBUTES,MAXIMISES PERFORMANCE ATTRIBUTES AND INCLUDES EXCITEMENT ATTRIBUTES
153
KANO MODEL DIAGRAM
154
THRESHOLD ATTRIBUTE
• EXPECTED ATFOR PRODUCT ATRIBUTES OR MUSTS OF A PRODUCT AND DO NOT PROVIDE AN OPPORTUNITY FOR PRODUCT DIFFERENTIATION
• INCREASING PERFORMANCE OF ATTRIBUTES PROVIDES DIMINISHING RETURNS IN TERMS OF CUSTOMER SATISFACTION
• POOR PERFORMANCE OF THESE ATTRIBUTES RESULTS IN EEXTREME CUSTOMER SATISFACTION eg BRAKES IN A CAR
• THRESHOLD ATTRIBUTES NOT CAPTURED IN QFD AND PRODUCTSNOT RATED ON BASIS OF THRESHOLD ATTRIBUTES
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PERFORMANCE ATTRIBUTES
• ATTRIBUTES WHICH WILL ENHANCE CUSTOMER SATISFACTION
• ABSENCE WILL REDUCE CUSTOMER SATISFACTION
• PRICE CUSTOMER WILLING TO PAY IS CLOSELY TIED TO PERFORMANCE ATTRIBUTES eg PAY EXTRA FOR FUEL ECONOMY CARS
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EXCITEMENT ATTRIBUTES
• UNSPOKEN AND UNEXPECTED BY CUSTOMER BUT RESULTS IN HIGH LEVELS OF CUSTOMER SATISFACTION
• ABSENCE DOES NOT LEAD TO DISSATISFACTION
• SATISFY LATENT WANTS• PROVIDING EXCITEMENT ATTRIBUTES
CAN RESULT IN COMPETITIVE ADVANTAGE
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OTHER ATTRIBUTES
• ATTRIBUTES OF LITTLE OR NO CONSEQUENCE TO CUSTOMER AND DO NOT FACTOR IN CUSTOMER DECISION eg ENGINE NUMBER AND MFG DATE OF A CAR
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ZERO DEFECT PROGRAM
• DOING THINGS RIGHT THE FIRST TIME EVERY TIME• PHILOSOPHY THAT BELIEVES IN DEFECT PREVENTION RATHER
THAN FINDING AND FIXING DEFECTS• UNDERSTAND BASIC SOURCE OF ERROR AND DEFECTS• DEFECTS DUE TO LACK OF KNOW-HOW OF JOB,LACK OF
FACILITIES OR LACK OF ATTENTION• PRODUCER NOT INSPECTOR TAKES RESPONSIBILITY FOR
ADHERING TO OUTPUT SPECS WITHOUT REWORK• BELIEVES THAT PREVENTION IS BETTER THAN DETECTION AND
CURE AND THAT CURING MEANS DOING NON VALUE ADD ACTIVITIES WHICH NEEDLESSLY ADD TO COSTS
• CHALLENGES CONCEPT OF AQL • HELPS IMPROVE CORPORATE IMAGE• DEFECT ELIMINATION THRU IDENTIFICATION OF WHAT IS
WRONG,WHY IT IS WRONG,HOW IT IS WRONG• SHOULD BECOME A PERSONAL HABIT
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PREREQUISITES FOR ZD PROGRAM
• AVOIDING CONVERSION OF ERRORS INTO DEFECTS
• POSITIVE ATTITUDE OF EMPLOYEES• TRUST BETWEEN MGT AND STAFF• ORGANIZATIONAL QLTY POLICIES AND
STRATEGIES UNDERSTOOD BY ALL• ELIMINATION OF DEFECTS THRU
ANALYSIS RATHER THAN BLAME
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CAUSES OF DEFECTS
• INAPPROPRIATE WORK PROCESSES OR OPERATIONS PROCEDURES OR INADEQUATE FACILITIES AND ENGG SUPPORT
• EXCESSIVE VARIATIONS IN OPERATIONS• INADEQUATE OPERATING SKILLS OR KNOW HOW• DEFECTIVE RAW MATERIAL• INADVERTENT ERRORS BY WORKERS• LACK OF DESIRE TO DO ERROR FREE WORK
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RESOLUTION OF DEFECTS
• IMPROVING WORK PROCESSES AND PROCEDURES
• GOOD PM AND CONSTANT MONITORING OF EQPMNT
• STD OPERATING ROUTINES• CONTINUOUS TRG TO OPERATORS• ENFORCEMENT OF QLTY ASURANCE
STDS WITH SUPPLIERS AND MFG
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COST OF QUALITY
• MOST IMPORTANT CONSIDERATION IN TQM• PROVIDES ABILITY TO ENHANCE CORPORATE PROFIT• COST OF QLTY IS CARDINAL FOR JUDGEMENT OF PROCESS
EFFECTIVENESS• QLTY COSTS ARE DIRECTLY PROPORTIONAL TO THE QLTY
CONFORMANCE OF THE PRODUCT• MEASUREMENT OF COSTS HELPS TO HIGHLIGHT
IMPORTANCE OF PRODUCT QLTY;FORMS BASIS OF DECISION MAKING;IDENTIFIES AREAS NEEDING IMPROVEMENT;MEASURES EFFECTS OF ACTIONS TAKEN;
• QLTY COSTS ARE CATEGORIZED INTO 4 MAJOR CATEGORIES-PREVENTION COSTS;APPRAISAL COSTS;FAILURE COSTS(INTERNAL AND EXTERNAL)
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APPRAISAL COSTS
• INCURRED TO MEASURE EXTENT OF CONFORMANCE
• COSTS INCLUDE MEASURING,INSPECTING,TESTING,AND AUDITING PERFORMANCE TO DETERMINE CONFORMANCE TO ACCEPTABLE QLTY LEVELS,STDS OF PERFORMANCE AND SPECIFICATIONS, EVALUATING PURCHASED MATRL
• AVOIDABLE ACTIVITY
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APPRAISAL COSTS• COSTS INCURRED TO MEASURE EXTENT OF CONFORMANCE AND INCLUDE
COSTS MENTIONED BELOW• -MEASURING,INSPECTING,TESTING AND AUDITING PERFORMANCE TO
DETERMINE CONFORMANCE WITH STDS• -QUALIFICATION TESTS FOR DESIGN REQUIREMENTS• -EVALUATING PURCHASED ITEMS AND INSPECTION COSTS OF INCOMING
MATERIAL• -COST OF STORAGE OF MATERIAL AWAITING INSPECTION• -EMPLOYEE AND EQUIPMENT PERFORMANCE• -IN PROCESS INSPECTION AND CONTROL• -FINAL TESTING AND INSPECTION• -PRODUCTION TRIALS• -MATERIAL CONSUMED DURING INSPECTION AND TESTING• -FIELD PERFORMANCE TESTING• -MAINTENANCE AND CALIBRATION OF EQUIPMENT• -AUDIT OF PREVENTIVE SYSTEM TO ENSURE EFFECTIVENESS
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PREVENTION COSTS
• AIMED AT PREVENTING DEFECTS AND BUILDING ACCEPTABLE QLTY INTO PRODUCTS AND SERVICES
• INCLUDES TRAINING, DESIGNING PROCEDURES, VENDOR ASSURANCE EXERCISES,PROCESS CAPABILITY BUILDING ,TRAINING AND CONSUMER RESEARCH ORIENTED AT IMPROVING QLTY,PLANNING QUALITY ASSURANCE
• PREVENTION IS AVOIDABLE ACTIVITY AND SHOULD BE REPLACED BY TQM WHICH ADVOCATES COST OF BUILDING ACCEPTABLE QLTY
• PREVENTIVE COSTS INCLUDE DEVELOPMENT AND MAINTENANCE COSTS AS WELL AS QLTY PLANNING WHICH INCLUDESCOSTS INCURRED IN MFG PROCESS ,PROCESS RELIABILITY, PROCEDURE MANUALS,VENDOR DEVELOPMENT COSTS ,ADMIN COSTS,TRAINING COSTS, AND QLTY AUDIT COSTS
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PREVENTION COSTS
• QLTY PLANNING COSTS SUCH AS MFG PROCESS COSTS EVALUATION OF QLTY PLANS INSP TEST PLANS RELIABILITY AND OTHER PLANS FOR IMPLEMENTING TQM SYSTEMS
• COST OF PREPARING PROCEDURE MANUALS• VENDOR DEVELOPMENT COSTS WHICH IS IDENTIFICATION
SELECTION DEVELOPMENT OF VENDORS AS WELL AS COSTS RELATED TO PLANNING WHICH INCLUDES COSTS OF TESTS REQD TO ACCEPT VENDORS PRODUCTS
• ADMIN COSTS INCURRED IN OVERRAL MGT• TQM TRG COSTS WHICH INCLUDE QLTY IMPROVEMENT
TRG COSTS• QLTY AUDIT COSTS REQD TO MEASURE EFFECTIVENESS
OF TQM PERFORMANCE
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FAILURE COSTS
• TWO CATEGORIES: INTYERNAL FAILURE COSTS AND EXTERNAL FAILURE COSTS
• INTERNAL FAILURE COSTS ARE COSTS INCURRED BECAUSE OF DEFECTS IN PRODUCT BEFORE SHIPMENT TO CUSTOMER AND INCLUDES COSTS SUCH AS: -COST OF SCRAPPING PRODUCT -COST OF REWORK -COST OF LOSS OF PRODUCTIVE TIME –LOSS DUE TO DEFECTS SALE -LIABILITY INSURANCE –COST OF OPPORTUNITY LOSS
• EXTERNAL FAILURE COSTS REPRESENTS COSTS INCURRED AFTER DELIVERY TO CUSTOMER AND INCLUDES HEADS SUCH AS COST OF COMPLAINT HANDLING,COST OF REPLACEMENT,WARRANTY COST OF REPAIRS AND EXTENDED WARRANTY,COST OF ADDITIONAL CLAIMS TO BE PAID TO CUSTOMER TO COVER LITIGATION COSTS AND PENALTY COSTS,LOST CUSTOMERS,BAD DEBT,SALES RETURNS
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Prevention Costs Number Reworked Total Rework Cost
Defective Units Cost of Not Reworking
Rework Cost/Unit
Failure Costs
Number Returned Cost of Processing Returns
Example of an Interrelationship Digraph
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BREAKUP OF QLTY COSTS ATN ASHOK LEYLAND
• TOTAL QLTY COST IS 8.2% OF REV
• EXTERNAL COSTS IS 0.2%
• QLTY ASSURANCE IS 71.1%
• QLTY INSPECTION IS 12.8%
• QLTY CONTROL IS 15.9%
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CASE STUDY OF COST OF NON CONFORMTIY
• INSTALLED CAPACITY OF PRODN /MTH = 1.1 MILLION MTRS• PLANNED PRODN FOR MTH AS PER PRODN PLAN = 0.86 MIL MTR• ACTUAL PRODN (OWING TO BRKDWN IN BOTTLENECK PROCESS)
IS 0.79 MIL MTR• AV SALES REALIZATION/MTR OF GOOD QLTY IS RS 100/MTR• OPPORTUNITY LOSS = 0.79 MIL MTRS/MTH = 0.84 MIL MTRS /YR• OPPORTUNITY LOSS/YR = 0.84 MIL MTR * 100RS/MTR =RS 8.4 CR• PLANNED 1ST QLTY FOR MTH WAS 95% ACTUAL OBTAINED 90%• QLTY LOSS = 5% FOR MTR. LOSS/2ND QLTY/ MTR = RS 40 • QLTY LOSS/YR = 5% * 0.79 * 40 * 12 = RS 1.896 CR• TOTAL COST OF NON CONFORMITY = 8.4 + 1.896 =10.296 CR/YR• ANNUAL TURNOVER = 135 CR• %LOSS OF NON CONFORMITY = 10.296/135 = 7.5% OF SALES
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HIDDEN COST OF QLTY
• POTENTIAL LOST SALES DUE TO QLTY
• COST OF REDESIGN DUE TO QLTY REASONS
• COST OF CHANGING MFG PROCESS DUE TO INABILITY TO MEET QLTY REQMNT
• EXTRA MFG COSTS DUE TO DEFECTS
• UNREPORTED SCRAP
• EXCESS PROCESS COSTS OF ACCEPTABLE PRODUCTS
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USE OF QLTY COST INFORMATION
• QLTY COST INFO CAN BE USED AS FOLLOWS: -IDENTIFY PROFIT OPPORTUNITIES -IMPROVE PURCHASING AND SUPPLIER RELATED COSTS -IDENTIFY WASTE IN ACTIVITIES -IDENTIFY QUALITY PROBLEMS
• FEATURES OF QLTY COSTS: -CORPORATE TARGET AND NOT INDIVISUAL -GENERALLY NOT MEASURED AT THE POINT OF CAUSE
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MANAGING NON CONFORMITY
• DISTINCTION TO BE MADE BETWEEN NON CONFORMING AND DEFECTIVE
• NON CONFORMING IS WHEN INTENDED PURPOSE IS MET BUT SOME SPECIFICATIONS ARE NOT MET EG SECONDS
• DEFECTIVE IS WHEN INTENDED PURPOSE IS NOT MET AND PRODUCT IS UNFIT TO BE USED FOR INTENDED PURPOSES AND SCRAP IS THE ULTIMATE OF DEFECTIVE GOODS
174
DEALING WITH NON CONFORMITY
• DISCOVERY:- STAGE AT WHICH NON CONFORMITY IS DISCOVERED AND INVESTIGATION DONE TO DECIDE WHAT NEEDS TO BE DONE WITH EXISTING UNITS AND HOW TO PREVENT RECURRENCE
• IDENTIFICATION:-LABELLING OF NON CONFORMING MATRL
• SEGREGATION:-SEPARATION OF NONC CONFORMING MATRL
• ANALYSIS:-EXTENT OF DEVIATION FROM SPECS /REASONS
• APPROVAL:-ACCEPTANCE OF QLTY MATRL AND RETURN OF REJECTED GOODS TO SUPPLIERS OR CONDEMNATION OF UNFIT GOODS
• ACTION:-RETURN NOTE TO SUPPLIER OR SCRAP NOTE OR CORRECTIVE REWORK WORKORDER
• TRACKING:-TRACKING DEFECTIVE MATRL TO SUPPLIERS
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QLTY COSTING• QUALITY COSTS ARE INCURRED DURING THE ENTIRE PRODUCT
LIFECYCLE eg DESIGNING,IMPLEMENTING,OPERATING,MAINTAINING,• COSTS INCURRED IN MAKING CONTINUOUS IMPROVEMENT TO
PRODUCT/PROCESS AND SUSTAINING QLTY• COSTS INCURRED IN PRODUCT/SERVICE FAILURE• QLTY COSTS CAN RANGE FROM 5% TO 25% OF SALES• ALMOST 90% TO 95% OF THESE COSTS COME FROM APPRAISAL AND
FAILURES• REDUCING FAILURE COSTS BY ELIMINATING CAUSES OF FAILURE CAN
LEAD TO REDUCTION OF APPRAISAL COSTS• USAGE OF ACTIVITY BASED COSTING THRU COST DRIVERS MAKES IT
EASIER TO GATHER QLTY RELATED COSTS• ABC BREAKS DOWN COSTS INTO ELEMENTS CALLED COST DRIVERS eg m/c
set up• FOR EACH COST DRIVER AN OVERHEAD RATE IS DETERMINED• COST DRIVERS RESULT IN MORE ACCURATE COSTING AND ENABLES
QLTY COST ASSOCIATED WITH AN ACTIVITY TO BE IDENTIFIED
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QUALITY COST PROGRAMS
• FOR EACH FAILURE OR NON CONFORMANCE THERE IS A COST AND A CAUSE
• CAUSE SHOULD BE DRILLED DOWN TO THE ROOT CAUSE AND CAUSES STUDIED AND PREVENTED
• STRATEGIES FOR ANALYSING QLTY COSTS INCLUDE: -USING ZERO DEFECT PROGRAM TO ELIMINATE FAILURE COSTS -USE CAUSE EFFECT ANALYSIS TO STUDY PATTERN OF FAILURES
-ELIMINATION OF FAILURES THRU EFFECTIVE CORRECTIVE ACTION
• FOR SUCCESSFUL DEPLOYMENT OF TQM ORG NEEDS TO ADOPT QLTY COST PROGRAMS TO BE MORE PRODUCTIVE AND PROFITABLE
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NEED FOR QLTY COST PROGRAM
• IDENTIFY AND DEFINE QLTY COST ITEMS
• DESIGN FORMATS FOR COLLECTING COST DATA
• LINK QLTY COST DATA WITH ACCOUNTING SYSTEM
• ANALYSE AND IDENTIFY COST AREAS REQUIRING IMPROVEMENT
• DEVELOP CORRECTIVE ACTION PROGRAMS
• IMPLEMENT CHANGES
• REVIEW AND RECTIFY
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QUALITY CIRCLE
• PARTICIPATORY MGT PROCESS IN WHICH A SMALL GROUP OF PEOPLE AT GRASS ROOT LEVEL ARE INVOLVED
• QC IS A QLTY,PRODUCTIVITY,SAFETY IMPROVEMENT TECHNIQUE • QC IS A HRD AND A PROBLEM SOLVING TECHNIQUE AND IS
BASED ON THE FACT THAT SUGGESTIONS AFFECTING WORKPLACE SHOULD BEST COME FROM PEOPLE WHO WORK THERE
• QC IS A GROUP OF PEOPLE FROM DIFFERENT WORK AREAS WHO MEET ON A REGULAR BASIS FOR RESOLVING PROBLEMS RELATED TO QLTY , PRODUCTIVITY, COST REDUCTION,SAFETY,CUSTOMER SERVICE
• QC IDENTIFIES PROBLEMS OR OPPORTUNITIES FOR FURTHER IMPROVEMENT THRU ANALYSIS OF DATA RELATED TO WORK
• PEOPLE EXPERIENCE AUTONOMY AT PLACE OF WORK AND CONTROL DECISIONS THAT AFFECT THEM
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CHARACTERISTICS OF QC
• SMALL GROUPS FORMED IN WORKPLACE WITH MEMBERSHIP BEING VOLUNTARY
• MEMBERS TRAINED IN PROVBLEM SOLVING TECHNIQUES
• ENABLES MEMBERS TO USE HIDDEN TALENTS,SKILLS
• ENHANCES JOB SATISFACTION THRU CHALLENGES FACED BY WORKERS
• QC EFFORTS RECOGNISED BY MGT
• MINIMISES BOREDOM IN WORKPLACE
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OBJECTIVES OF QC
• IMPROVE QLTY AND PRODUCTIVITY THUS CONTRIBUTING TO IMPROVING AND DEVELOPING ERNTERPRISE
• REDUCE COSTS OF PRODUCTS BY WASTE REDUCTION,SAFETY,EFFECTIVE UTILIZATION OF RESOURCES,MINIMIZING DEFECTS AND ELIMINATING NON VALUE ADDED ACTIVITIES IDENTIFY AND SOLVE WORK RELATED PROBLEMS
• MAXIMIZE CREATIVE INTELLIGENCE OF PEOPLE
• DEVELOP INDIVISUALS AND ASSISTANCE IN SELF ACTUALIZATION
• INCREASE EMPLOYEE COMMITMENT AND LOYALTY
• SHARING OF IDEAS AND EXPERTISE
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QC OPERATION CYCLE
• BASIC PURPOSE OF QC IS TO IDENTIFY AND SOLVE WORK RELATED PROBLEMS
• EACH PROBLEM PASSES THRU STAGES SUCH AS: -IDENTIFICASTION –SELECTION –ANALYSIS -IDENTIFICATION OF SOLUTION WITH ALTERNATIVES -EVALUATION OF RISKS AND PROBABILITY -SELECTION OF SOLUTION -PREPARE ACTION PLANS WITH DESIRED OUTCOMES AND RETURNS
-PREPARE BUDGETS FOR RESOURCES DURING IMPL -ALLOCATE RESOURCES TO PROJECT -IMPLEMENTATION,REVIEW AND FOLLOW UP
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S-S PROBLEM SOLVING METHOD
• S-S PROBLEM SOLVING METHOD DECREASES UNCERTAINTY BY OFFERING A PROCEDURE OF DEFINING THE REAL CAUSES OF PROBLEMS
• PROBLEM IDENTIFICATION RESTS UPON UNDERSTANDING THE UNWANTED EFFECTS
• S-S METHOD HAS A FOUR STEP PROCESS: -PROCESS FLOW ANALYSIS -PROBLEM DEFINITION -IDENTIFICATION OF REAL CAUSE - IMPLEMENTATION OF CORRECTIVE/PREVENTIVE ACTION
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STRUCTURE OF QC
• STEERING COMMITTEE WHICH INCLUDES TOP MGT(CEO,VP,GM,HOD)
• COORDINATORS(I/F BETWEEN TOP MGT AND LINE OPERATORS)
• FACILITATORS(SHIFT MGR)• CIRCLE LEADERS(SR.FOREMAN)• CIRCLE MEMBERS(LINE LEVEL WORKERS)• INVITEES AND NON MEMBERS
184
PROBLEM SOLVING TECHNIQUES IN QC
• TEAM WORK(BRAINSTORMING)
• DATA COLLECTION METHODS
• PARETO ANALYSIS
• FISHBONE DIAGRAM
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QC AND EMPLOYEE EMPOWERMENT
• EMPLOYEES UNDERSTAND WHAT IS REQD OF THEM
• TOOLS REQD FOR EXECUTION OF A JOB ARE AVAILABLE TO EMPLOYEES
• PEOPLE KNOW THE GOALS AND CRITICAL SUCCESS FACTORS
186
QC IN ASHOK LEYLAND
• SELECTION OF PROBLEM WITH MATERIAL LOSS IN WKSHOP• QC FORMED TO SOLVE PROBLEM AND MINIMIZE MATRL
WASTAGE AND CONSUMPTION• FIGURES RELATED TO LOSSES BEFORE/AFTER QC IMPL • BEFORE IMPL AFTER IMPL• EXP CONS YRLY 105KG 105KG • ACTUAL CONS YRLY 210KG 165KG• LOSS KG 105KG 60KG• LOSS RS 1.785LACS RS 1.02 LAC RS
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QC IN ASHOK LEYLAND
• USING QC CAUSES RELATED TO MAN,M/C,MATRL,METHOD DETECTED• CAUSES RELATED TO MAN :- -
LACK OF KNOWLEDGE OF MATRL –IMPROPER WK INSTR -EXCESS OPER –LACK OF KNOWLEDGE OF OPS/TOOLS
• CAUSES RELATED TO MACHINES -SUB OPTIMUM CONDITIONS –FRICTIONAL WEAR OF PARTS -MISALIGNMENT OF PARTS
• CAUSES DUE TO METHODS -IMPROPER MATRL HANDLING/STORAGE -LACK OF PROPER STD OPER INSTR
• CAUSES RELATED TO MATERIALS -IMPROPER SPECS TO SUPPLIERS –INADEQUATE INSP METHODS
• REASONWISE % ATTRIBUTABLE FOR LOSS -MAN 35.7% -M/C 28.6% -METHODA 21.4% -MATERIAL 14.3%
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OBSERVATIONS POST QC IN ASHOK LEYLAND
• IMPROVED INTER PERSONAL RELATIONSHIP AND TEAMWORK
• ENHANCEMENT OF KNOWLEDGE BASE IN WORKERS
• MINIMIZED MATERIAL WASTAGE RESULTING IN MONETARY GAINS
189
QC IN TOYOTA
• WIDE USAGE OF QC• MEETING ONCE A WEEK FOR 1 HR • PEOPLE ENCOURAGED TO GIVE SUGGESTIONS• PRINCIPLE OF KAIZEN FOLLOWED• PROBLEMS ADDRESSED INCLUDE SAFETY,COST
REDN,QLTY,PRODUCTIVITY,EQPT PERFORMANCE• CERTAIN AREAS ARE OFF LIMIT EG WAGES,COMPANY
OPERATING PRINCIPLES,HR POLICIES,SUPPLIER SELECTION,SALES AND MKTNG POLICIES AND PERSONALITIES
• HOWEVER PRIVATE SUGGESTIONS IN ABOVE AREAS COULD BE OFFERRED AS KAIZEN
• CREATION OF ANGER VENTING ROOM
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TQM IMPLEMENTATION
• FIVE PHASE IMPLEMENTATION -PHASE 0 PREPARATION -PHASE 1 PLANNING -PHASE 2 ASSESSMENT -PHASE 3 IMPLEMENTATION -PHASE 4 DIVERSIFICATION
191
PHASE 0 - PREPARATION
• DECISION TO IMPLEMENT TQM• COMMITMENT OF TOP MGT AND
RESOURCES TO TQM PROJECT• STRATEGIC PLANNING WITH VISION
STATEMENT, CORPORATE GOALS,CORPORATE QLTY POLICY AND CORPORATE COMMUNICATION
• KEY EXECUTIVE TRAINING
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PHASE 1 - PLANNING
• LAYS FOUNDATION FOR PROCESS OF CHANGE WITHIN ORGANISATION
• DETAILED IMPLEMENTATION PLAN DEVELOPED• RESOURCE REQUIREMENT DRAWN• EXPECTED RESULTS AND OBSTACLE TO SUCCESS
IDENTIFIED• PRIORITISE PROCESSES• SELECT PROCESSES FOR IMPROVEMENT• DEVELOP IMPLEMENTATION PLANS AND
BUDGET
193
PHASE 2 - ASSESSMENT
• INVOLVES EXCHANGE OF INFO REQD TO SUPPORT PREPARATION, PLANNING,IMPL,DIVERSIFICATION PHASES
• EVALUATION OF SWOT FACTOR AT ALL LEVELS IN ORG
• INPUT FROM CUSTOMER VERY IMPORTANT
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DEVELOP CORPORATE GOALS
• IMPLEMENT TQM• CREATE TECHNICAL EXCELLENCE AND
IMPROVE QUALITY• INCREASE PRODUCTIVITY OF FORCE• IMPROVE FINANCIAL MANAGEMENT• REDUCE COST OF MATERIAL• MAINTAIN CAPITAL PLANT • REDUCE OVERHEADS
195
STEPS IN PLANNING
• FORM TEAM• IDENTIFY EXPECTATION OF RESULTS• IDENTIFY OBSTACLES• FORMULATE CORPORATE OBJ• DECIDE CORPORATE PERFORMANCE
MEASUREMENTS• PRIORITISE AND SELECT PROCESSES FOR
IMPROVEMENT• DEVELOP IMPL SCHEDULE AND BUDGET
196
APPROACH TO PRIORITISE PROCESSES
• ADOPTION OF IDEAS FROM EMPLOYEES,CUSTOMERS AND SUPPLIERS
• IDENTIFICATION OF CHRONIC PROBLEMS
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DETAILS OF PHASE 2
• SELF ASSESSMENT
• CUSTOMER SURVEY
• TQM TRAINING AT ALL LEVELS
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PHASE 3 - IMPLEMENTATION
• SELECT AND TRAIN PEOPLE WHO WOULD IMPLEMENT TQM
• SELECT PROCESSES FOR IMPL-GENERALLY CORE PROCESSES
• TQM IMPLEMENTATION IN PROCESSES USING INITIATIVES SUCH AS BPI,ISO 9000 etc
• DATA COLLECTION ANAYSIS AND RECOMMENDATIONS
• CONTINUOUS IMPROVEMENT
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PHASE 4 - DIVERSIFICATION
• SELECT STRATEGIC SUPPLIERS
• SUPPLIER TRAINING AND CERTIFICATION(SAS 70)
• SUPPLIER STANDARDISATION
200
STAGES OF STRATEGIC SUPPLIER DEVELOPMENT
• STEP1-CONFRONTATIONAL ATTITUDE
• STEP2-ARMS LENGTH RELATIONSHIP WHERE CAUTION GOVERNS RELATIONSHIP
• COMING TOGETHER WITH CONGRUENCE IN MUTUAL GOALS
• FULL BLOWN PARTNERSHIP
201
TQM IN MARKETING
• TQMMAR INVOLVES CONTINUOUS IMPROVEMENT IN THE MARKETING FUNCTION
• COMPANY OPERATIONS MUST BE COORDINATED AND MATCHED WITH NEEDS OF CUSTOMERS
• EVERYBODY WHO WORKS FOR THE COMPANY MUST PARTICIPATE IN A TOTAL MARKETING ENVIRONMENT
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TQM MARKETING PROCESS• CLARIFY THE VISION IN RELATION TO MKT OPPORTUNITIES eg WHAT
SORT OF BUSINESS WE WISH TO BE IN• SET TANGIBLE GOALS TO EXPRESS WHAT THE COMPANY WANTS TO
ACHIEVE eg LOW COST PRODUCER CHALLENGE• DEVELOP AWARENESS AND KNOW OF WHERE COMPANY IS NOW,HOW
SITUATION HAS EVOLVED AND WHAT TRENDS ARE OPEN IN THE FUTURE eg COMPARITIVE PERCEPTION BETWEEN CUSTOMERS AND SALESMEN
• MAINTAIN BUSINESS ACTIVITIES TO ENSURE THAT STRATEGIES AND TACTICS ARE MUTUALLY REENFORCING eg APPLY DEMING PDCA CYCLE IN STRATEGIC PLANNING AND DEPLOYMENT
• SET DYNAMIC STANDARDS TO CREATE CLEAR AND CONSISTENT OPERATING MILESTONES WHICH ARE RELEVANT TO CHANGING DYNAMICS OF MKTPLACE
• PLANNED IMPLEMENTATION DESIGNED TO ENSURE STRATEGIES AND POLICIES ARE PUT INTO PLACE THROUGH MARKETING PLANNING SYSTEMS
203
TQM MARKETING AREAS
• MARKETING DATA
• MARKETING RESOURCES
• MARKETING PRODUCT/SERVICE
• MARKETING PRICE
• MARKETING PLACE
• MARKETING PROMOTION
• MARKETING SALES
204
MARKETING DATA
• PURCHASING CRITERIA
• DISTIBUTION/SELLING METHODS
• RELATIVE PERCEPTIONS
205
MARKETING RESOURCES
• EFFECTIVE UTILISATION OF CURRENT AND FIXED ASSETS
• ACCURACY OF PRODUCT COSTING SYSTEMS
• INTEGRATION BETWEEN MKTNG AND SALES
206
MARKETING PRODUCT/SERVICES
• CUSTOMER NEEDS AND WANTS
• PERFORMANCE EXPECTATIONS
• PERCEIVED BENEFITS OVER COMPETITION
• LEVEL OF QLTY REQUIRED
207
MARKETING PRICE
• CONSISTENT AND LOGICAL PRICING
• PROCESS FOR CHANGE
• COST/PROFIT RELATIONSHIP
• VALUE PERCEPTION
208
MARKETING PLACE
• HOW DO CUSTOMERS ACCESS YOU
• WHAT LEVELS OF SERVICE ARE CUSTOMERS DEMANDING
• HOW IS PERFORMANCE MONITORED AND CONTROLLED
• WHAT DISTRIBUTION METHODS ARE REQUIRED
209
MARKETING PROMOTION
• WHAT IS THE PRODUCT IMAGE
• IS ADVERTISING COST EFFECTIVE
• IS TIMING FOR PROMOTION RIGHT
• WHAT IS THE TARGET AUDIENCE DURING PROMOTION
210
MARKETING SALES
• LEVEL OF ITEGRATION OF SALES WITH MKTNG ACTIVITIES
• SALESMEANS FAMILIARITY OF CUSTOMER NEEDS AND WANTS AND CAPABILITY TO ADDRESS THEM
• CUSTOMER CARE PROVIDED• COST EFFECTIVENESS OF SALES
CALLS
211
CASE STUDY OF LUCAS INDUSTRY USING TQMMAR
• BENEFITS ARISING OUT OF IMPLEMENTING TQMMAR: -SALES UP BY 36% -PROFIT UP BY 20% -ROA UP BY 5%
212
TQM IN PURCHASING
• ORGANIZATIONWIDE PARTICIPATION IN THE IMPROVEMENT OF THE LOGISTIC PROCESS TO MEET THE NEEDS OF THE CUSTOMER
• IN MFG COMPANIES AROUND 50% OF PRODUCT COST COMES FROM MATERIAL COST
• IN SUPPLY CHAIN AREA PURCHASE QLTY IS CONSIDERED PARAMOUNT TO THE PROFITABILITY OF THE BUSINESS AND HENCE ACCENT ON PURCHASE QLTY
• PURCHASING NEEDS TO BE HENCE CONSIDERED AS A STRATEGIC FUNCTION
213
TQM IN PURCHASING
• PURCHASING EFFECTIVENESS
• PURCHASING EFFICIENCY
214
PURCHASING EFFECTIVENESS
• PURCHASING PRICE/COST DIMENSION
• PURCHASING QUALITY DIMENSION
• PURCHASING LOGISTICS DIMENSION
215
PRICE/COST DIMENSION
• MATERIAL COSTS/PRICES
• COMPARISON
• COORDINATION
• TRANSPORTATION
216
QUALITY DIMENSION
• SPECIFICATIONS
• REJECTS
• PURCHASING ENGINEERING
• REWORK
• PRODUCTION STOPS
217
LOGISTICS DIMENSION
• LEAD TIMES
• ORDER QUANTITY
• INVENTORIES
• VENDOR PERFORMANCE
• DELIVERY PERFORMANCES
218
PURCHASING EFFICIENCY
• PURCHASING ORGANIZATION DIMENSION -WORKLOAD ORDERS/QUOTATIONS -PROCEDURES -INFORMATION SYSTEM -MANAGEMENT -EXPERTISE
219
CASE STUDY OF TQMPUR AT ASHOK LEYLAND
• RATINGS BY USERS BASED ON IMPORTANCE: -QUALITY 17.51% -PRICE 9.42% -RELIABILITY 22.34% -DELIVERY 24.52% -SERVICE 26.21%
220
CASE STUDY OF TQM IMPLEMENTATION AT
ASHOK LEYLAND• ASHOK LEYLAND HAS CHOSEN A TQM MODEL WHICH IS BASED ON THE
FOLLOWING PILLARS - TOTAL QUALITY CONTROL - JUST IN TIME - TOTAL PRODUCTIVE MAINTENANCE• MODEL DESCRIBED IN THEIR PURSUIT OF WORLD CLASS MFG PURSUIT• STEPS - CHANGE MGT & WORKER INVOLVEMENT / OWNERSHIP - BENCHMARKING OF TQM GOALS - CREATION OF SKILLS / MULTI SKILLS FOR TQM - CREATION OF PROCESSES FOR MONITORING OF IMPROVEMENT AND
QUALITY CONTROL - IMPLEMENTATION OF INITIATIVES SUCH AS 5S, AUTONOMOUS
MAINTENANCE, DESIGN FOR QUALITY, KAIZEN etc AIMED AT MAXIMISING THROUGHPUT OF PROCESSES AS PER CUSTOMER REQMNT.
221
CASE STUDY OF TQM IMPLEMENTATION AT
ASHOK LEYLAND• ACHIEVEMENT
- INCREASE IN OEE BY 6% SINCE JUNE 2005
- DECREASE IN INVENTORY BY 12% BUT NO STOCKOUTS. APPROX. RS. 3.0 LAKHS / VEHICLE
- 6200 KAIZENS IMPLEMENTED SINCE JAN 1, 2005.
- ZERO DEFECTS ACHIEVED IN 3 SHOP FLOORS
- SUCCESSFUL IMPLEMENTATION OF AUTONOMOUS MAINTENANCE AND POKA YOKE RESULTING IN ENHANCED SALE OF 8%.
- 75% ELIMINATION OF WASTE
222
TQM IMPLEMENTATION AT VIKRAM CEMENT (NEEMUCH)
• MFG. CAPACITY 0.75 MT / ANNUM• KND DRY PROCESS• 93% CAPACITY UTILISATION• CERTIFICATIONS - ISO 9000:2000 BY DNV IN 2001 - RAJIV GANDHI NATIONAL QUALITY AWARD IN 1997 - ISO 14001 EMS BY DNV IN 1997 - OSHAS 18001 BY DNV IN 2001 - SA 8000 BY DNV IN 2003 - TPM AWARD FROM JIPM IN 1995 & 2001 - FIRST CEMENT PLANT IN THE WORLD TO ACHIEVE LEVEL 5 OF
INTERNATIONAL QUALITY RATING SYSTEM (TQM LEVEL OF ADOPTION) FROM DNV
- IMC RAMAKRISHNA BAJAJ NATIONAL QUALITY AWARD IN 1998
223
TQM INITIATIVES IN VIKRAM CEMENT
• INITIATIVES PRACTISED INCLUDE: - BUSINESS PROCESS IMPROVEMENT (CONTINUOUS IMPROVEMENT) - KAIZEN IN WORKPLACE - LIFE CYCLE COST MGT - JUST IN TIME - ZERO DEFECT - SPARE PARTS MGT - PROCESS CAPABILITY IMPROVEMENT THROUGH MEASUREMENT, ROOT CAUSE ANALYSIS,
ETC. - FAILURE MODE EFFECT ANALYSIS - PLAN DO CHECK ACT - VALUE ANALYSIS - STATISTICAL PROCESS CONTROL - QUALITY FUNCTION DEPLOYMENT - TOTAL PRODUCTIVITY MAINTENANCE - CORPORATE SOCIAL RESPONSIBILITY• PERFORMANCE MEASUREMENT SYSTEMS INCLUDE - BALANCED SCORECARD - EUROPEAN FOUNDATION FOR QUALITY MGT
224
TQM IN GODREJ INDUSTRY• CUSTOMER SATISFACTION THRU QUALITY FUNCTION DEPLOYMENT • PDCA CYCLE• MANAGEMENT BY FACT-5W + 1H APPROACH=WHAT,WHY,WHO,WHEN,WHERE + HOW• TOTAL EMLOYEE INVOLVEMENT• TOTAL WASTE ELIMINATION• TOTAL QUALITY CONTROL• CII-EXIM BUSINESS EXCELLENCE MODEL• SUPPLIER DEPARTMENTAL PURPOSE ANALYSIS• KEY BUSINESS PROCESS IMPROVEMENT• SMALL GROUP ACTIVITY• QUALITY CIRCLES• KAIZEN• 5S HOUSE KEEPING + TPM• SIX SIGMA• ENVIRONMENTAL HEALTH SAFETY COMMITTEES• ISO 9000• CONTINUOUS COMPETENCY DEVELOPMENT
225
BENEFITS FOR GODREJ INDUSTRY
• INCREASED CUSTOMER FOCUS• CONTINUOUS IMPROVEMENT MINDSET• BETTER PRODUCT QUALITY• BETTER SYSTEMS AND PROCEDURES• BETTER CROSS FUNCTIONAL TEAMWORK• INCREASED PLANT RELIABILITY• WASTE ELIMINATION IN OFFICES AND
FACTORIES
226
TQM SYSTEMS ALIGNMENT
• STRATEGIC PLANNING• BUDGETING• REWARDS AND RECOGNITION• APPRAISAL AND PROMOTION• HEALTH AND SAFETY• MARKETING AND COMMUNICTNS• KEY ORG PROCESSES• CUSTOMER NEEDS• EMPLOYEE NEEDS FOR GROWTH AND DEVELOP• QLTY INCLUDED IN PEOPLES JOB KRA• TIE REWARD SYSTEM WITH CUSTOMER SATISFCATION
227
CORPORATE READINESS WITH ALIGNMENTS
• HOW EFFECTRIVELY DOES YOUR ORGANISATION HAVE ALIGNMENT WITH THE FOLLOWING:
• SYSTEMS
• CUSTOMER
• SUPPLIER
• PUBLIC RESPONSIBILITY
228
TQM CUSTOMER ALIGNMENT
• IDENTIFY KEY CUSTOMERS• DEVELOP CUSTOMER ALIGNMENT STRATEGY AND PLAN• ESTABLISH VAKLID CUSTOMER REQMNT AND
EXPECTATION• DEVELOP AND MONITOR CUST SATISFACTION• CREATE PARTNER RELATIONS WITH KEY CUSTOMERS• LINK CUST REQMNT TO NEW PROD DEV• EMPOWER PEOPLE IN ORG TO ACHIEVE CUST DELIGHT• GATHER CONTINUOUS FEEDBACK FROM CUST• ANTICIPATE FUTURE CUSTOMER NEEDS• BENCHMARK TO HELP ACHIEVE CONTINUOUS IMPR AND
MEASURE QLTY OF COMPETITION
229
TQM SUPPLIER ALIGNMENT
• IDENTIFY KEY SUPPLIERS• DEVELOP SUPPLIER ALIGNMENT STRATEGY AND
PLAN• ESTABLISH AND USE SUPPLIER SATISFACTION
MEASURES• VENDOR CERTIFICATION• PARTNER RELATIONSHIP WITH KEY SUPPLIERS• SUPPLIER AWARDS• TQM TRAINING TO SUPPLIERS• CONTINUOUS FEEDBACK FROM SUPPLIERS• IMPROVE RELATIONSHIP WITH SUPPLIERS
230
PUBLIC RESPONSIBILITY
• PROMOTE QLTY AWARENESS OUTSIDE ORGANISATION
• ESTABLISH LINKS BETWEEN ENVIRONMENT,QLTY,SAFETY, HEALTH AND ETHICS
• SUPPORT COMMUNITY SERVICES ACTIVITIES
231
TQM IN SERVICE SECTOR
• SERVICE SECTOR IS ALL ABOUT INTERACTING WITH CUSTOMERS HENCE CONCEPT OF SERVICE QUALITY
• TQM IS A MEASUREMENT OF QUALITY PERFORMANCE
• TO APPLY TQM TO SERVICE SECTOR REQUIRES ANALYSIS OF CHARACTERISTICS OF SERVICE OPERATIONS
• SERVICE IS AN ACT OR PERFORMANCE THAT ONE PARTY OFFERS TO ANOTHER, AND IS INTANGIBLE AND DOES NOT RESULT INTRANSFER OF OWNERSHIP OF A TANGIBLE ASSET
• SERVICE IS PROVIDED TO A CUSTOMER – INTERNAL AND EXTERNAL
232
TQM IN SERVICE SECTOR
• SERVICE WORK EXISTS BECAUSE OF: - DOMAIN EXPERTISE – SUB CONTRACTED SERVICES WHICH ELIMINATE
NON CORE ACTIVITIES• SERVICE ORG SELLS DIRECTLY TO USER• SERVICES ARE PROVIDED AS PER CUSTOMER REQMNT• SERVICES ARE NOT STOREABLE• IN MANY CASES REQUIREMENT OF SERVICE SCOPE ARE NOT CLEARLY
DEFINED• SCOPE OF MAKING ERRORS IN TERMS OF QUALITY, VARIETY IS MORE• QUALITY IN SERVICES IS LESS TANGIBLE AND MORE DIFFICULT TO
QUANTITY• SERVICE EXPECTATION BY CUSTOMER ARE DYNAMIC• SERVICE SECTOR EMPHASISES ON HUMAN FACTOR
233
DIMENSIONS OF SERVICE QUALITY
• CUSTOMER PERCEIVED SERVICE QUALITY IS VIEWED AS A RESULT OF TECHNICAL (OUTPUT) QLTY AND FUNCTIONAL (PROCESS) QLTY.
• TECHNICAL REFERS TO TRADITIONAL QC IN MFG• FUNCTIONAL IS WAY SERVICE IS DELIVERED THRU PROCESS IN
WHICH CUSTOMER IS A PARTICIPANT• CUSTOMER EVALUATES QLTY DURING OR AFTER SERVICE• TEN DETERMINANTS OF SERVICE QUALITY - TANGIBLES SERVICE SHOULD BE A TANGIBLE FACILITY OR
ADVICE RENDERED TO CUSTOMER - RELIABILITY CONSISTENCY OF PERFORMANCE AND ABILITY TO
HONOUR PROMISED - RESPONSIVENESS READINESS AND TIMELINESS TO PROVIDE
SERVICE - COMPETENCE POSSESSION OF REQD SKILLS AND KNOWLEDGE TO
PERFORM SERVICE
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DIMENSIONS OF SERVICE QUALITY
- RELIABILITY CONSISTENCY OF PERFORMANCE AND ABILITY TO HONOUR PROMISED
- RESPONSIVENESS READINESS AND TIMELINESS TO PROVICE SERVICE
- COMPETENCE POSSESSION OF REQD SKILLS AND KNOWLEDGE TO PERFORM SERVICE
- COURTESY POLITENESS, RESPECT OF CONTACT PEOPLE - CREDIBILITY TRUST WORTHINESS AND HONESTY - SECURITY FREEDOM FROM DANGER & RISK - ACCESS APPROACHABILITY - COMMUNICATION KEEPING CUSTOMERS INFORMED IN LANGUAGE
THEY UNDERSTAND LISTENING TO CUSTOMERS - UNDERSTANDING CUSTOMER MAKING REPORTS TO UNDERSTAND NEEDS AND WANTS
235
GUIDING PRINCIPLES FOR SERVICE QUALITY
• QUALITY IN ALL ACTIVITIES• CONTINUOUS IMPROVEMENT IN QUALITY AND
EFFECTIVENESS OF ACTIVITIES• TEAM WORK AND EMPLOYEE INVOLVEMENT BACKED BY
COMMITMENT, INVOLVEMENT AND SUPPORT OF MGT IS REQD TO SUCCEED
• MAKE WORK SYSTEMS CONDUCIVE THROUGH EMPOWERMENT AND Z THEORY
• ENCOURAGE EMPLOYEES TO GIVE SUGGESTIONS• CREATE AN EXTENDED ENTERPRISE OF SUPPLIERS,
EMPLOYEES, CUSTOMERS• CREATE AN AURA OF MUTUAL TRUST & RESPECT• LEARN FROM MISTAKES
236
QUALITY DIMENSIONS IN SERVICE
• TIME
- TIME REQD TO EXECUTE A SERVICE
- TIME INCLUDES ARRANGEMENT TIME, WAITING TIME, SERVICE TIME, DELAY TIME, ACCEPTANCE TIME
ARRANGEMENT TIME INCLUDES UNDERSTANDING OF SERVICE REQMNT & LEVEL, STAFFING, ETC.
• COST
- COST OF SERVICE TO SATISFACTION OF CUSTOMER DECIDES QLTY OF SERVICE
• ERROR
- AMOUNT OF ERROR AND COST IMPACT DECIDES THE QLTY OF SERVICE.
IMPL OF SIX SIGMA FOR SERVICE
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SERVICE PERFORMANCE GAP
• COMPANY PERCEPTION OF SERVICE OUTCOME SHOULD MATCH CUSTOMER EXPECTATION
• IF IT FAILS TO DO SO THERE IS A SERVICE GAP• OVERALL GAP BETWEEN EXPECTATION AND PERCEIVED
PERFORMANCE IS DETERMINED BY IMPORTANT GAPS WHICH INCLUDE INFO, DESIGN, COMMN
1. GAP BETWEEN CUSTOMER EXPECTATION AND MGT PERCEPTION OF EXPECTATION.
2. GAP BETWEEN MGT PERCEPTION OF CUSTOMER EXPECTATION AND COMPANY QLTY SPECIFICATIONS
3. GAP BETWEEN SERVIE QLTY SPECS AND ACTUAL SERVICE DELY 4. GAP BETWEEN ACTUAL SERVICE DELY AND EXTERNAL
COMMUNICATION ABOUT SERVICE 5. GAP BETWEEN CUSTOMER EXPECTATION AND PERCEIVED
SERVICE
238
SERVICE PERFORMANCE GAP
• CRITERIA USED BY CUSTOMERS IN JUDGING SERVICE - TANGIBLE PHYSICAL EVIDENCE POTENTIAL / DELVD - RELIABILITY HONOURING PROMISES. GETTING IT RIGHT - FEATURES ADDL PERFORMANCE OF SUPPLEMENTARY SERVICES - RESPONSIVENESS READINESS TO PROVIDE SERVICE ESPECIALLY
AGILITY (OUTSIDE SPECS) - COMMUNICATION KEEPING CUST INFORMED IN LANGUAGE
THEY UNDERSTAND - CREDIBILITY HONESTY TRUST - TIMELINESS PROVIDE CORRECT SERVICES IN TIME - SECURITY PHYSICAL & FINANCIAL - FLEXIBILITY ABILITY TO PROVIDE NON STD SERVICES - COMPETENCE POSSESSION OF CORE COMPETENCE - EFFECTIVENESS ACHIEVES DESIRED RESULT
239
SERVICE PERFORMANCE GAP
- COURTESY POLITENESS, RESPECT
- UNDERSTANDING KNOWING THE CUST NEEDS & WANTS
- ACCESS ERASE OF APPROACH & CONTACT
- PERCEPTION REPUTATION OF QLTY LEVEL
- FUNCTION PERFORM PRIMARY FUNCTION
- CONFORMANCE SATISFACTION OF PRESET REQMNT
240
SERVQUAL MODEL
GAP 1: CUSTOMER EXPECTATION – MGT PERCEPTION GAP• CONSUMER EXPECTATION – MGT PERCEPTION OF CUST
EXPECTATIONS• FINANCIAL / TELECOM ORGS OFTEN TREAT ISSUES OF
PRIVACY AND CONFIDENTIALITY AS UNIMPORTANT BUT CONSUMERS CONSIDER THESE ISSUES VERY IMPORTANT
• MGT HAS INACCURATE PERCEPTION OF WHAT CUSTOMER ACTUALLY EXPECTS
• IF MGT DOES NOT RECEIVE FEEDBACK ABOUT POOR QLTY SERVICE IT WILL BELIEVE IT IS MEETING CUSTOMER EXPECTATIONS
• GAP EXISTS BECAUSE THERE IS LACK OF CUSTOMER FOCUS
241
SERVQUAL MODEL
GAP 2: SERVICE QUALITY SPECIFICATION GAP
• MGT PERCEPTION OF CUST EXPECTATIONS – SERVICE QLTY SPECS
• SPECS DESIGNED BASED ON WHAT DESIGNER THINKS CUSTOMER WANTS
• REPRESENTS INABILITY OF MGT TO TRANSLATE CUST EXPECTATIONS TO SERVICE QLTY SPECS
GAP 3 : SERVICE DELIVERY GAP
• SERVICE QLTY SPECS – SERVICE QLTY ACTUALLY DELVD
• OCCURS BECAUSE OF LACK OF SUPPORT FOR FRONTLINE STAFF, PROCESS PROBLEMS
242
SERVQUAL MODEL
GAP 4: EXTERNAL COMMUNICATION GAP• SERVICE DELY INTENTIONS – WHAT IS COMMUNICATED
ABOUT SERVICE TO CUSTOMERS• GAP RESULTS FROM INADEQUATE COMMN FROM SERVICE
PROVIDERGAP 5 : EXPECTED SERVICE – PERCEIVED SERVICE GAP• ACTUAL PERFORMANCE – CUST PERCEPTION OF SERVICE• PERCEIVED QLTY OF SERVICE DEPENDS ON SIZE OF GAP5
WHICH IN TURN DEPENDS ON GAPS ASSOCIATED WITH MKTNG, DESIGN & DELY OF SERVICE
• SUBJECTIVE JUDGEMENT OF SERVICE QLTY WILL BE AFFECTED BY MANY FACTORS WHICH COULD CHANGE THE PERCEPTION OF SERVICE DELVD
243
APPROACH FOR IMPLEMENTING TQM IN
SERVICES• DEVELOP SERVICE QUALITY STRATEGY - NEED TO ANALYSE - NEEDS & EXPECTATION OF CUSTOMER - FUNCTION OBJECTIVES - SERVICE PROCESS AND OPERATIONS - MEASUREMENT AND CONTROL PARAMETERS - FEEDBACK SYSTEM AND EVALUATION - QUALITY IMPROVEMENT STRATEGY SHOULD INVOLVE - MISSION STATEMENT DEMONSTRATING COMPANY’S VISION AND
VALUES WHICH INCLUDE ORIENTATION TOWARDS NEEDS OF THE CUSTOMER
- SENIOR MGT COMMITMNT TO SUPPORT CUSTOMER SUPPORT INITIATIVES
- CUSTOMER SATISFACTION FEEDBACK PROGRAM TO MEASURE CUSTOMER PERCEPTION OF SERVICE DELIVERY
- SET OF SERVICE PERFORMANCE STDS
244
APPROACH FOR IMPLEMENTING TQM IN
SERVICE SECTOR• ANALYSE SERVICE PROCESSES AND DEFIND QLTY MSRS
- PROCESS THROUGH WHICH SERVICE FUNCTIONS OPERATE MUST BE WELL IDENTIFIED. THIS INVOLVES
- DEVELOPING PROCESS ACTIVITIES THRU FLOW CHARTS
- DEFINE PROCESS AND IDENTIFY CUST. REQMNT
- UNDERSTANDING HOW PROCESS OPERATES AT DIFFERENT LEVELS
- IDENTIFYING INPUTS TO PROCESS AND DOCUMENTING QLTY REQMNT TO INPUTS
- DEFINING OUTPUT OF SERVICE FUNCTION AND HOW OUTPUT QLTY IS MEASURED
245
APPROACH FOR IMPLEMENTING TQM IN
SERVICE SECTOR• ESTABLISH PROCESS CONTROL SYSTEM - FOR CONTINUOUS MONITORING OF SERVICE PROCESS IT IS ESSENTIAL TO
ESTABLISH PROCESS CONTROLS - DETERMINE KEY PERFORMANCE AREAS TO DETERMINE CONTROL
SYSTEMS - FOCUS ON UNDERSTANDING WHAT NEEDS TO BE MSRED AND
CONTROLLED TO MEET CUSTOMER EXPECTATION• INVESTIGATE PROCESS TO IDENTIFY IMPROVEMENT OPPORTUNITIES - FOCUS ON IDENTIFYING INTERVAL PROCESS PROBLEMS AFFECTING
CUSTOMER SATISFACTION AND COSTS - EXPLORING PROCESS IMPROVEMENT OPPORTUNITIES - COLLECT & REVIEW DATA ON PROCESS OPERATIONS - DEVELOP CAUSE & EFFECT DIAGRAMS TO IDENTIFY CAUSES OF WASTE OR
POOR QUALITY. - DETERMINE CHRONIC PROBLEMS AREAS• IMPROVE PROCESS QUALITY
246
13SPC
• INSERT PPTS
247
7 NEW QC TOOLS
• INSERT PPTS HERE
248
SHEWHART CYCLE FOR CONTINUOUS IMPROVEMENT
• FOUR PARTS TO IMPROVE PROCESSES-PLAN,DO,CHECK,ACT• P REPRESENTS EARLY PLANNING
-USING TQM TOOLS IDEMNTIFY OPPORTUNITIES FOR PROCESS IMPROVEMENT -DEFINE PROBLEM,IDENTIFY CUSTOMERS -DEVELOP SOLUTIONS TO IMPROVE PROCESS -PREPARE SCHEDULE AND RESOURCE ESTIMATES FOR IMPLEMENTING QLTY PROCESS
• D IS DO FOR IMPLEMENT THE PROCESS IMPROVEMENT• C IS CHECK
-AFTER IMPLEMENTING NEW PROCESS IDENTIFY AND CHECK ACTUALLY WHAT HAPPENED AGAINST EXPECTED RESULTS
• A IS ACT -INCORPORATE SUCCESSFUL PROCESS IMPROVEMENTS AS WORK STANDARDS
249
REASONS FOR IMPLEMENTING TQM
• PRODUCTS/SERVICES DON’T MEET CUSTOMER REQUIREMENT
• CUSTOMER EXPECTATIONS ARE CONSTANTLY INCREASING AND ARE DIFFICULT TO MEET CURRENTLY
• HIGH QUALITY DEFECTS AND COSTS• ATMOSPHERE OF INDIFFERENCE IN ORG WITH
PEOPLE FEELING THAT QLTY IS JOB OF INSPECTION
• PRODUCT DELIVERY TIME IS HIGH AND DOES NOT MEET THE CUSTOMER EXPECTATION
250
RESULTANT BENEFITS OF TQM
• GREATER CUSTOMER LOYALTY AND RETENTION• LOWER EMPLOYEE ATTRITION• GREATER QUALITY OUTPUTS• FOCUS ON MARKET NEEDS AS WELL AS INDIVISUAL CUST NEEDS • IMPROVED MARKET SHARE • FACILITATES QLTY PERFORMANCE IN ALL PROCESSES THRU REMOVAL OF NON
VALUE ADD ACTIVITIES• GREATER PRODUCTIVITY AND LOWER QLTY COSTS• HIGHER PROFITABILITY THRU DECREASED COST OF QUALITY• REDUCED WARRANTY COSTS• BETTER BUSINESS RESULTS• POSITIVE WORK CULTURE IN ORGANISATION• HIGHER EMPLOYEE MORALE• COMMAND OF SOCIAL RESPECT• GAIN IN TANGIBLE BENEFITS SUCH AS PRODUCTIVITY IMPROVEMENT ,REDUCED
QLTY COSTS,INCREASED PROFITABILITY AND IN INTANGIBLE ASSETS SUCH AS EFFECTIVE TEAM WORK,IMPROVEMENT IN RELATIONS,CUSTOMER SATISFACTION AND ENHANCED PROBLEM SOLVING CAPACITY
251
ROADBLOCKS IN TQM IMPLEMENTATION
• NO FORMAL STRATEGY OR METHOD• LACK OF EFFECTIVE COMMUNICATN• INADEQUATE TRG AND FOCUS ON QLTY• LACK OF TOP MGT COMMITMENT AND INCOMPATIBLE STRUCTURES AND
ISOLATED INDIVIDUALS• LACK OF COMPETENCE OF LEADERS• INADEQUATE DATA SYSTEMS AND ANALYSIS THRU UNAVAILABILITY OF
PROPER TOOLS• NO CUSTOMER FOCUS• LACK OF PROPER SYSTEMS AUDIT• LACK OF CROSS FUNCTIONAL EFFORTS• EMPHASIS ON QUICK FIXES• INABILITY TO CHANGE CULTURE• IMPROPER PLANNING• INEFFECTIVE MEASUREMENT TECHNIQUES• LACK OF EMPOWERMENT• FAILURE TO CONTINUALLY IMPROVE
252
LEADING PRACTICES FOR TQM
253
TOYOTA PRODUCTION SYSTEM
• REVOLUTIONARY APPROACH ADOPTED AFTER 1973 OIL CRISIS• PRIMARY PURPOSE OF TPS IS TO ACHIEVE COST REDUCTION, ELIMINATE
WASTE, AND SATISFY CUST NEEDS AT LOWEST COST• TO ACHIEVE COST REDUCTION SYSTEM MUST ACHIEVE GOALS SUCH AS
QLTY CONTROL AND QLTY ASSURANCE• KEY INITIATIVES IN TPS
-POKAYOKE –COMPANYWIDE QLTY CONTROL-JUST IN TIME -TOTAL PRODUCTIVE MAINTENANCE –KAIZEN -TOTAL WASTE REDUCTION –ZERO DEFECTS –VALUE ENG AND ANALYSIS –FAILURE MODE EFFECT ANALYSIS -ROOT CAUSE ANALYSIS OF FAILURE –QUALITY FUNCTION DEPLOYMENT –QUALITYPOLICY DEPLOYMENT –SIX SIGMA -TOYOTA 7 WASTES
• FLEXIBLE MFG SYSTEM IS AN INTEGRAL PART OF TPS AND INVOLVES MFG OF VARIED PRODUCTS WITH MINIMUM CHANGEOVER AND SETUP
• WORKER SUGGESTIONS IMPLEMENTED INTO PROCESSES
254
TOYOTA PRODUCTION SYSTEM
• IMPLEMENTS SUBSYSTEMS -CONTROL PRODN IN RIGHT QTY AT RIGHT TIME -PROCESS WITHDRAWS PARTS FROM PREVIOUS PROCESS ONLY WHEN REQD(PULL PROCESS) -PRODN SMOOTHING WHERE SINGLE LINE PRODUCES MULTI VARIETIES IN RESPONSE TO VARYING CUSTOMER DEMANDS -REDUCTION OF SET UP TIME3 WHICH REDUCES OVERALL PRODN LEAD TIME ACROSS ENTIRE PROCESS -STANDARDISATION OF OPERATIONS WHICH MINIMISE RESOURCES BY BALANCING OPERATIONS ON THE LINE -IMPROVEMENT ACTIVITIES AIMED AT IMPROVING PRODUCTIVITY -COMPANYWIDE QLTY CONTROL WHICH PROMOTES IMPROVEMENT IN ALL DEPTS
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POKAYOKE• TECHNIQUE USED TO PREVENT ERRORS BEING CONVERTED TO DEFECTS• QA APPROACH NON STATISTICALLY DRIVEN• BASED ON ASSUMPTION THAT MISTAKES WILL OCCUR UNTIL
PREVENTIVE MEASURES ARE TAKEN• AFTER EVERY OPER PRODUCT ANALYSED FOR COMPLETENESS OF SPECS
AND ADHERENCE TO QLTY AND IF EXCESS VARIATION PROCESS STOPPED • SOURCE OF MISTAKE TO BE KNOWN ANALYSED AND CORRECTED• EMPHASIS ON SOURCE ANALYSIS WHICH CHECKS FOR FACTORS WHICH
CAUSE MISTAKES AND SOLUTIONS FOUND AND APPLIED TO PREVENT REOCCURENCE
• FORMIDABLE TOOL FOR ACHIEVING ZERO DEFECT• ENCOURAGES WORKERS TO BECOME SENSITIVE TO QLTY ISSUES AND
AVOIDS PASSING RESPONSIBILITY TO QLTY DEPT• ENCOURAGES A BUILT IN QLTY CHECK SYSTEM• DRASTICALLY REDUCES REWORK AND REJECTS AND OVERALL LEAD
TIME
256
REASONS FOR ERRORS
• HUMAN ERRORS OR ATTITUDE
• MACHINE MALFUNCTION OR POOR INPUT MATRL
• UNCLEAR OPERATING INSTRUCTION OR PROCEDURES
257
STEPS IN POKA YOKE
• DETECTING DEFECT• PREVENTING OCCURRENCE OF DEFECT• PURPOSE IS TO STOP PROCESS WHEN CONDITIONS EXIST
THAT CAUSE PROBLEMS AND PREVENT NON CONFORMING WIP FROM GOING DOWNSTREAM
• TWO TYPES OF POKAYOKE• REGULATORY-DEVICES WHICH GIVE FOREWARNING AND
SHUT DOWN PROCESS BEFORE ACCIDENT WHEN ABNORMALITY DETECTED EG PHOTOCOPIER
• SETTING POKAYOKE-DEVICES THAT CHECK THAT SETTINGS ARE OK BEFORE MAIN RUN
258
TECHNIQUES USED IN POKAYOKE
• 5S
• CAUSE EFFECT DIAGRAMS
• ROOT CAUSE ANALYSIS
259
ADVANTAGES OF POKAYOKE
• REMOVES DEFECTS FROM SOURCE• FASTER DEFECT DETECTION• IMPROVES ENVT SAFETY• ENSURES IMMEDIATE FEEDBACK• IMPROVES EQPT EFFECTIVENESS
AND RELIABILITY• PROMOTES WORK CULTURE FOR
PERFECTION
260
METHOD STUDY
• SYSTEMATIC RECORDING AND CRITICAL EXAMINATION OF WAYS OF DOING WORK
• OBJECTIVE OF METHOD STUDY IS TO IMPROVE ACTIVITY
• ACTIVITY IMPROVED THRU PROCESS IMPROVEMENT OR REDESIGN
• NEED TO DRAW PROCESS AND ACTIVITY CHARTS WITH DELAYS ETC TO IMPROVE EFFECTIVENESS AND EFFICIENCY OF PROCESS
261
ANDON
262
JUST IN TIME
• PRODUCTION PHILOSOPHY WHOSE OBJECTIVE IS TO PRODUCE QLTY GOODS
• USER PULL PHILOSOPHY• SYSTEM OF ACHIEVING ZERO DEVIATION FROM SCHEDULE• INTELLIGENT WAY TO MANAGE INVENTORIES IN PURCHASING
PRODUCTION AND DISTRIBUTION PIPELINES• TIES PRODUCTION TO ACTUAL DEMANDAND MAINTAINS FLOW• EXPOSES ROOT CAUSE PROBLEMS BOTTLENECKS AND ALL TYPES
OF WASTES• ATTACKS WASTES SUCH AS EXCESSIVE SETUP TIME QLTY
REJECTS M/C DOWNTIME TRANSPORTATION INSPECTION OVER PRODUCTION SCRAP
• IMPROVES FLEXIBILITY AND RESPONSIBILITY AND RESPONSIVENESS OF FIRM
• HELPS REDUCE COSTS
263
JUST IN TIME
• JIT IMPLEMENTED TO INCREASE EFFICIENCY
• JIT SUPPLIER PROGRAM REQUIRES SUPPLIER TO SHIP SMALL LOTS ON A PULL BASIS THAQT ARRIVE EXACTLY AT THE POINT IN THE PROCESS WHEN AND WHERE THE PARTS ARE REQD
• PARTS ARE NOT INSPECTED BUT DELIVERED STRAIGHT TO WORK CENTRE
264
PRINCIPLES OF JIT
• CONTINUOUS IMPROVEMENT• SIMPLIFIED APPROACHES FOR PROCESSES• CYCLE TIME REDUCTION• PULL BASED MECHANISM• ELIMINATION OF 7 WASTES• PARTNERSHIP WITH EMPLOYEES SUPPLIERS
CUSTOMERS• BUILT IN QLTY WITH REDUCTION OF
VARIABILITY• LEAN PRODUCTION• PROCESS MEASUREMENTS AND IMPROVEMENT
265
WHAT JIT ELIMINATES/MINIMIZES
• WASTES DUE TO TOYOTA 7 AND OTHER WASTES
• WASTES IN INSPECTION• WASTE IN M/C SET UP TIME• REDUCES QUEUES BY USING A PULL
BASED SYSTEM• STRESSES NEED FOR OPERATIONAL
SIMPLICITY WHICH INCLUDES MATRL FLOW AND CONTROL
266
JIT APPROACH TO MATERIAL FLOW
• APPROACH TO MATRL FLOW AIMS TO ELIMINATE COMPLES ROUTES BY ADOPTING UNIDIRECTIONAL FLOWLINES
• MAJORITY OF BATCH SYSTEMS ARE ORGANIZED IN A TYPICAL PROCESS LAYOUT
• MOST ITEMS MFG IN BATCH MODE GO THROUGH VARIOUS SHOPS
• EACH PROCESS INVOLVES WAIT TIME AS WELL AS TRANSPORT TIME
• CONSEQUENCES ARE HIGH WIP AND LONG MFG LEAD TIMES
• JIT IS A PULL BASED MFG SYSTEM WHICH RESULTS IN REDUCED WIP LEVELS ,REDUCED INVENTORY LEVELS,REDUCED MFG LEAD TIMES
267
GUIDING PRINCIPLES FOR JIT
• VALUE ADD AND WASTE ELIMINATION• SIMPLIFICATION• CLEANLINESS AND ORGANIZATION• VISIBILITY• CYCLE TIMING• AGILITY• VARIATION REDUCTION• CONTINUOUS IMPROVEMENT• MEASUREMENT
268
TQM AND JIT
• MFG IMPLEMENT JIT TO INCREASE EFFICIENCY• JIT FORCES QLTY MGT• JIT SUPPLIERS PROGRAM REQUIRES A SUPPLIER TO SHIP SMALL
LOTS ON A PULL BASIS THAT ARRIVE EXACTLY AT THE POINT OF IN THE PROCESS WHEN AND WHERE THE PARTS ARE NEEDED
• PARTS ARE NOT INSPECTED BUT DELIVERED STRAIGHT TO WORK CENTRE
• JIT ENABLES ELIMINATION OF WASTE WHICH COULD BE BY WAY OF OVER PRODN , INVENTORY, SCRAP, REWORK etc
• JIT ALSO STRIVES TO ELIMINATE WASTES IN MATRL HANDLING,INSPECTION , WAITING, M/C SET UP TIMES
• JIT REDUCES QUEUES BY USING A PULL SYSTEM• JIT STRESSES NEED FOR OPERATIONAL SIMPLICITY WHICH
INCLUDE MATRL FLOW AND CONTROL.
269
TQM AND JIT
• APPROACH TO MATRL FLOW AIMS TO ELIMINATE COMPLEX ROUTE PATHS BY ADOPTING UNIDIRECTIONAL FLOWLINES
• MAJORITY OF BATCH SYSTEMS ARE ORGANIZED IN A TYPICAL PROCESS LAYOUT
• MOST ITEMS MFG IN A BATCH MODE GO THRU VARIOUS OPERATIONS SHOPS AND EACH PROCESS INVOLVES WAIT TIME AS WELL AS TRANSPORT TIME
• CONSEQUENCES ARE HIGH WIP AND LONG MFG LEAD TIME
• JIT IS A PULL BASED MFG SYSTEM WHICH RESULTS IN REDUCED WIP LEVELS REDUCED INERNTORIES REDUCED MFG LEAD TIMES ,IDENTIFYING BOTTLENECK AREAS AND IDENTIFYING PROBLEM AREAS
270
PROCESS FLOW AND JIT• JIT REDUCES DELAYS BETWEEN PROCESS STAGES AND ENABLES AUDIT TRAILS OF
EVIDENCE • GOAL OF JIT IS TO MOVE MATRL, MONEY,KNOWLEDGE,PEOPLE, IN THE PIPELINE AS
FAST AS POSSIBLE• PIPELINE IS SELDOM UNIFORM OR WITHOUT OBSTACLES THAT VARY IN SIZE• OUTPUT OF PIPELINE LIMITED BY NARROWEST PARTS OF PIPE WHICH CORRESPOND
TO STAGES OF PROCESS THAT TAKE MORE TIME OR WHERE STOPPAGES/SLOWDOWNS OCCUR
• OBSTRUCTION DIFFICULT TO ELIMINATE AS THERE ARE SEVERAL TASKS IN PROCESS AND EACH PROBLEM MAY ARISE FROM DIFFERENT TASK AND ALSO IT MAY BE DIFFICULT TO BUILD A CAUSE-EFFECT RELATIONSHIP AS NEW OBSTRUCTIONS MAY APPEAR
• FLOW IN PIPELINE IS DYNAMIC AND SOURCES OF OBSTRUCTION KEEP CHANGING AND QLTY OF OUTPUT VARIES eg RAW MATRL QLTY,M/C PERFORMANCE,CUSTOMER ORDERS ALL VARY REQUIRING CHANGE IN FLOW RATE
• JIT ENABLES CONTINUOUS ADAPTATION OF PIPELINE FLOW TO DESIRED FLOW RATES AND MATCH CUSTOMER DEMANDS WITH ACCEPTABLE QLTY LEVELS
271
EFFECTS OF JIT
• USE OF POKA YOKE• WORKERS RESPONSIBILITY FOR QLTY• STANDARDISATION • TEAM WORK• BLANKET ORDERS FREQUENT DELIVERIES• SMALL LOT SIZE OF MFG / PURCHASE AND ZERO INVENTORY• MULTISKILLED WORKFORCE• EMPOWERED AND INVOLVED WORKFORCE• FEW VENDORS WHO ARE GEOGRAPHICALLY CLOSE• NO INSPECTION OF SUPPLY FROM VENDOR• LESSER LEAD TIME• MINIMISED WIP• BALANCE IN WORK STATION CAPACITY
272
BENEFITS OF JIT
• SHORTENED LEAD TIME
• REDUCED TIME SPENT ON NON PROCESS WORK
• REDUCED INVENTORY
• BETTER BALANCE BETWEEN VARIOUS PROCESSES
• PROBLEM CLARIFICATION
273
BENEFITS OF JIT AT ASHOK LEYLAND
• WIP REDUCTION BY 50%• MFG LEAD TIME REDUCTION BY 50-
75%• VENDOR RESPONSE TIME
REDUCTION BY 30%• DELIVERY LEAD TIME REDUCTION
BY 60%• SCRAP COST REDUCTION BY 40%
274
JIT2
• ELIMINATES NON VALUE ACTIVITIES THAT EXIST IN SUPPLY CHAIN OUTSIDE COMPANY
• MODIFICATION MADE IN PURCHASE PROCESS BY ELIMINATING BUYER IN PURCHASE DEPT AND SALESMAN IN SALES DEPT
• VENDOR HAS ACCESS TO CUSTOMER DATABASE AND CUSTOMER NEEDS TRANSLATED TO VENDOR ORDERS
275
PRINCIPLES OF JIT2
• LONG TERM ALLIANCE OF CUSTOMER – SUPPLIER AND COMMITMENT TO QLTY COST DELY
• SUPPLIER REP PHYSICALLY PRESENT INSIDE MFG FACILITY AND IS EMPOWERED BY CUST TO MANAGE ACTIVITIES ASSOCIATED WITH THEIR SUPPLY PROGRAM DAILY OPERATIONS ORDER ETC
276
BENEFITS OF JIT2
• ELIMINATES PURCHASING ADMIN COSTS
• REDUCES COST OF MATRL
• UTILISES SUPPLIER EXPERTISE IN PRODUCT/PROCESS DESIGN ISSUES
• REDUCES SALES PROMOTION AND ADMIN EXPENSES
277
WASTE MANAGEMENT
• WASTE EXISTS EVERYWHERE FROM INDUSTRY TO HUMAN ACTIVITIES
• IN ANY PROCESS WASTE ACCOUNTS FOR A VERY LARGE AMOUNT OF NON VALUE ADD ACTIVITY
• MGT NEEDS TO CONTROL ACTIVITIES BETTER THRU TIGHTER CONTROL
• WASTE MGT IMPROVES COSTS AND PRODUCTIVITY AND REDUCES CYCLE TIMES
278
TOTAL WASTE REDUCTION
• STRUCTURED APPROACH TO DEAL WITH WASTES AND DELAYS WITH VIEW TO ELIMINATION
• APPROACH SEPARATES WASTE(NON VALUE ADD ACTIVITIES) FROM VALUE ADDITION AND SCRUTINISES ESSENTIAL NON VALUE ADD ACTIVITIES FOR MINIMISATION OF WASTEFUL ACTIVITIES
• PREREQUISITE FOR TQM
279
TOTAL WASTE REDUCTION
• WASTE MAY EXIST IN PROCEDURES POLICIES SYSTEMS AND IS DIFFICULT TO IDENTIFY HIDDEN WASTES
• AUTOMATION IS NOT THE SOLUTION TO WASTE • NEED OF THE HOUR IS TO IDENTIFY REAL
WASTES THAT AFFECT BOTTOM LINES• WASTE MGT SHOULD BE A CONTINUOUS DRIVE
ON THE GUIDELINES OF TQM• PERIODIC REVIEW OF
POLICIES,PROCEDURES,PROCESSES TO ENSURE PROCESS IMPROVEMENT AND WASTE REDUCTION
280
TOTAL WASTE REDUCTION
• DRASTICALLY IMPROVES QLTY, PRODUCTIVITY,FLEXIBILITY AND SAFETY
• REDUCES CYCLE TIME AND IMPROVES RESPONSIVENESS
• MAXIMIZES UTILIZATION OF ASSETS AND PROCESSES
• MINIMISES [PROCESS LOSSES AND COST OF NON CONFORMITY
• REDUCES PROCESS AND PRODUCT COST AND IMPROVES CONTRIBUTIONS
• IMPROVES LIQUIDITY BY FREEING MONEY TIED UP IN INVENTORIES AND OTHER WASTES
281
TOYOTA 7 WASTES
• PRODUCTION DEFECTS
• TRANSPORTATION
• INVENTORY
• OVER PRODUCTION
• WAITING
• PROCESSING
• MOTIONS AND EFFORT
282
OTHER WASTES
• WASTED CAPACITY• WASTED ENERGY• WASTE FROM LOST OPPORTUNITY• WASTE FROM UNREQD EXPENSES• WASTE FROM UNUTILISED TALENT• WASTE FROM LOSSES DUE TO
EFFICIENCY,STARTUP,IDLING, BATCH CHANGEOVER• WASTE DUE TO COMMN LOSSES OR INEFFECTIVENESS OF
COMMN• WASTED PLANNING EFFORTS• WASTED INVESTMENTS• WASTED OVERSTAFFING• WASTE IN DISPOSAL
283
PROCESS WASTE
• INSERT PPT ON PROCESS WASTE
284
ELIMINATION OF 3M
• 3M STAND FOR MUDA MURA AND MURI• MUDA MEANS WASTES OF ALL KINDS
SUCH AS REWORK,TRANSPORTATION,DELAYS
• MURA MEANS INCONSISTENCES SUCH AS NON CONFORMANCE TO QLTY AND STD OPERATING PROCEDURES
• MURI MEANS NON RATIONALITY OR DISCREPANCY ie UNSCIENTIFIC WAY OF DOING THINGS
285
ELIMINATION OF 3M
• 3M EXERCISE DONE TO -ELIMINATE WHOLE ACTIVITY -REDUCE STEPS IN ACTIVITY -CHANGE AND SIMPLIFY ACTIVITY -REDUCE THE TIME COST AND FATIGUE INVOLVED IN ACTIVITY
286
LEVELS OF WASTE
• FOUR LEVELS OF WASTE: -LEVEL 1 refers to business related wastes. It includes wastes due to cross functional issues, poor communication and coordination between vendors, customers and even poor investment decisions -LEVEL 2 refers to plant level wastes. It includes faulty production planning and control, poor layout resulting in un required movement and WIP It includes poor m/c capability resulting in rework, scrap and rejection. It also includes poor maintenance policies
287
LEVELS OF WASTE
• FOUR LEVELS OF WASTE (CONTD): -LEVEL 3 refers to process or method related work and includes issues like excess time spent or setup activities adjustment and alignment. It covers poor workplace design and unsafe methods -LEVEL 4 refers to wastes within processes. Includes issues such as improper postures at workplace and lack of standard operating procedures
288
LEVEL 1 BUSINESS LEVEL WASTE
• Faulty performance measure• Poor business policies and short sightedness at top
level• Poor communication and coordination between
vendors and customers• Too much emphasis on utilization of resources• Excess production• Poor product and process design
289
LEVEL 2-PLANT LEVEL WASTES
• Play safe tendency
• Poor production planning and control
• Poor layout resulting in back tracking and excessive traveling
• WIP inventory
• Batch size constraints
290
LEVEL 3-PROCESS AND METHOD WASTES
• Poor sequencing of machines and operations
• Long changeover times
• Poor work place design
• Tendency of temporary storage
• Incapable and poorly maintained equipment
• Unsafe methods
291
LEVEL 4-MACHINE/OPERATOR LEVEL WASTES
• Poor housekeeping
• Excess bending and fatigue
• Lack of operator training
• Operator has to frequently fetch material for production
292
BPR BENCHMARKING
293
TQM CHANGE MGT
294
WHAT IS SMED
• MEHOD DEVELOPED BY SHINGO• AIM OF APPLYING SMED METHODOLOGY IS TO
SYSTEMATICALLY REDUCE TIME LOST IN PRODN FOR MACHINE SETUPS FROM HOURS TO MINUTES
• APPLIES TO ALL PRODN ACTIVITIES AND IS AN IMPORTANT INITIATIVE IN THE LEAN MFG AREA
• VERY RELEVANT IN THE DAYS OF INCREASED REQUESTS FOR CUSTOMISED PRODUCTS AT SHORT NOTICE
• SMED LEADS TO REDUCED LESDTIMES
295
BATCH CHANGEOVER ACTIVITIES
• IN CLASSICAL CHANGEOVER BETWEEN TWO BATCHES THE FOLLOWING ACTIVITIES TAKE PLACE: -FINISH ACTUAL BATCH -DISMOUNT OLD TOOLS -STOP MACHINE -CHANGE TOOLS -ADJUST MACHINE TO NEW REQMNT -START MACHINE -TRIALS -PROCESS NEW BATCH
• CHANGEOVER SEQUENCE GENERALLY DONE WITHOUT STD METHOD OR PROCEDURES AND DURATION DEPENDS ON INDIVISUAL SKILLS
• CHANGEOVERS CAUSE PRODUCTIVITY LOSS AND CREATES TEMPTATIONS FOR LARGER EBQ
296
APPROACH OF SMED
• SETUP TIME REDUCTION IS OF CRUCIAL IMPORTANCE FOR PROFITABILITY
• APPROACH OF SMED IS TO REDUCE OUTPUT AND QLTY LOSSES DUE TO CHANGEOVER
• SMED APPROACH IS RECOMMENDED BY JIPM TO REDUCE SETUP LOSSES
297
TOTAL PRODUCTIVITY MAINTENANCE
298
KAIZEN
• PROCESS OF SYSTEMATIC,SMALL GRADUAL AND CONTINUOUS IMPROVEMENT THAT USES TECHNIQUES SUCH AS TPM,JIT,PDCA
• SEEKING BETTER METHODS IN ACCORDANCE WITH REQUIREMENT OF ACTUAL SITUATION
• KEY ELEMENTS OF KAIZEN INCLUDE ADAPTABILITY OF PROCESSES AND PEOPLE AND OPTIMISING EXISTING CAPACITIES
• PEOPLE BASED APPROACH WHICH CENTRES AROUND PROCESS ORIENTED THINKING
• AIM IS TO ALIGN COMPANY FOR CONTINUOUS IMPROVEMENT• PRACTICES ELIMINATION OF 3M WHICH ARE MUDA-WASTE
MURA-NONCONFORMITY TO QLTY,MURI-DISCREPANCY OF METHOD OF DOING THINGS
• ALIGNING COMPANY FOR CONTINUOUS IMPROVEMENT• GENERATES PROCESS ORIENTED THINKING• TRIES TO SIMLIFY,COMBINE,ADD,REARRANGE,ELIMINATE
ACTIVITIES(SCARE)
299
KAIZEN
• DEVELOPS EMPLOYEES TO OWN THEIR PROCESSES AND GENERATE PROCESS ORIENTED THINKING
• EFFECTIVELY TRAINS PARTICIPANTS TO IDENTIFY ROOT CAUSE AND PERMANENTLY RECTIFY PROBLEMS
300
TYPES OF KAIZEN
• GROUP ORIENTED
• INDIVISUAL ORIENTED
301
GROUP ORIENTED KAIZEN
• KAIZEN IN GROUP WORK IS REPRESENTED BY SMALL GROUP ACTIVITIES LIKE QUALITY CIRCLES
• CALLS FOR PDCA APPROACH NAND DEMANDS THAT PEOPLE IDENTIFY PROBLEM AREAS IDENTIFY AND ANALYSE CAUSES IMPLEMENT COUNTER MEASURES TO RESOLVEPROBLEMS AT THE ROOT CAUSE AND ESTABLISH NEW PROCEDURES
302
SMALL GROUP ACTIVITIES
• SMALL GROUP ACTIVITIES ARE INFORMAL VOLUNTARY SMALL GROUPS WITHIN DEPT TO CARRY OUT SPECIFIC TASKS eg SAFETY, ZERO DEFECT,PRODUCTIVITY
• ADVANTAGES OF SMALL GROUP ACTIVITIES ARE: -STRENGTHENING OF TEAM WORK - BETTER COORDINATION OF ROLES - BETTER COMMUNICATION BETWEEN PLANNERS AND EXECUTORS -IMPROVED MORALE -DEVELOPMENT OF MULTI SKILLS AND IMPROVEMENT OF CURRENT SKILLS -IMPROVED LABOUR MGT RELATIONS -
303
INDIVISUAL ORIENTED KAIZEN
• SUGGESTION SYSTEM IS A VEHICLE FOR CARRYING OUT INDIVISUAL ORIENTED KAIZEN
• CONSIDERED A MORALE BOOSTER AND MGT TRIES TO SEARCH FOR KAIZENS WHICH GIVE ECONOMIC PAYBACKS
• CONVERT WORKFORCE TO THINKING PEOPLE WHO ADD VALUE TO WORK
304
HIERARCHY OF KAIZEN INVOLVEMENT
• TOP MANAGEMENT
• MIDDLE MGT AND STAFF
• SUPERVISOR
• WORKERS
305
TOP MANAGEMENT
• INTRODUCE KAIZEN AS CORPORATE STRATEGY
• PROVIDE SUPPORT AND DIRECTION FOR KAIZEN BY ALLOCATING RESOURCES
• ESTABLISH POLICY FOR KAIZEN AND CROSS FUNCTIONAL GOALS
• REALISE KAIZEN GOALS THROUGH POLICY DEPLOYMENT AND AUDITS
• BUILD SYSTEMS,PROCEDURES AND STRUCTURES CONDUCICE FOR KAIZEN
306
MIDDLE MANAGEMENT
• IMPLEMENT KAIZEN GOALS AS DIRECTED BY TOP MGT THROUGH POLICY DEPLOYMENT
• USE KAIZEN IN FUNCTIONAL CAPABILITIES• ESTABLISH MAINTAIN UPGRADE STANDARDS• MAKE EMPLOYEES KAIZEN CONSCIOUS
THROUGH TRAINING PROGRAMS• HELP EMPLOYEES DEVELOP SKILLS AND TOOLS
FOR PROBLEM SOLVING
307
SUPERVISORS
• USE KAIZEN IN FUNCTIONAL AREAS• FORMULATE PLANS FOR KAIZENS AND
PROVIDE GUIDANCE TO WORKERS• IMPROVE COMMUNICATION WITH
WORKERS AND SUSTAIN MORALE• SUPPORT SMALL GROUP ACTIVITIES AND
INDIVISUAL SUGGESTION SYSTEM• INTRODUCE DISCIPLINE IN THE
WORKSHOP AND PROVIDE KAIZEN SUGGESTIONS
308
WORKERS
• ENGAGE IN KAIZEN THROUGH THE SUGGESTION SYSTEM AND SMALL GROUP ACTIVITIES
• PRACTICE DISCIPLINE• ENGAGE IN CONTINUOUS SELF
DEVELOPMENT TO BECOME BETTER PROBLEM SOLVERS
• ENHANCE SKILLS AND JOB PERFORMANCE EXPERTISE WITH CROSS EDUCATION
309
KAIZEN STRATEGY
• MAINTAIN AND IMPROVE WORKING STANDARDS THROUGH GRADUAL IMPROVEMENT
• DELEGATE RESPONSIBILITY OF MAINTAINING STANDARDS TO WORKERS WITH MGT IMPROVING STDS
• PRODUCE A SYSTEMS APPROACH THAT CAN BE APPLIED TO REALIZING THIS GOAL
310
PREREQUISITES FOR KAIZEN
• HIGHLY RESPONSIVE WORKFORCE• DEEP UNDERSTANDING OF BUSINESS
PROCESS WORKFLOW RULES, OBJECTIVES, DEPENDENCIES
• PROJECTION OF KAIZEN AS CORPORATE PHILOSOPHY AND VISIBLE IN STRATEGIES
• ALL EMPLOYEES SHOULD UNDERSTAND AND BE INVOLVED IN THE DRIVE
• SENSE OF PROCESS OWNERSHIP AND COMMITMENT
311
ADVANTAGES OF KAIZEN
• ENSURES INCREMENTAL BUT CONTINUOUS IMPROVEMENT IN QLTY,PRODUCTIVITY,SAFETY,CLEANLINESS AND CAPACITY UTILIZATION
• REMOVES DEFECTS USING ROOT CAUSE ANALYSIS
• REDUCES WASTE REWORK REJECTION AND LOSS OF ENERGY
• OFFERS FLEXIBILITY AND REDUCES PROCESS CYCLE TIMES
• LOWERS PROCESS COSTS AND LESSENS WASTE
312
ADVANTAGES OF KAIZEN
• PROVIDES SCOPE FOR INNOVATION• INSTILS SENSE OF OWNERSHIP• ENSURES INCREMENTAL CONT IMPR• REMOVES PROCESS OBSTACLES• REMOVES DEFECTS THRU RCA• IMPROVES TEAM BUILDING• REDUCESWASTES,REWORK, REJECTION
AND LOSS OF ENERGY • REDUCES PROCESS CYCLE TIME
313
KAIZEN IMPL IN ASHOK LEYLAND
• MATRL AND INFO FLOW REVIEWED• TIME STUDY OF PROCESS ELEMENTS• CYCLE TIME OF ACTIVITIES MEASURED• PROCESS PROBLEMS IDENTIFIED
ANALYSED • GOALS SET FOR CHANGE• KAIZEN IDEAS DEVELOPED PLANS FOR
IMPL DONE AND IMPL • IMPACT OF KAIZEN MEASURED• REPORT ON ACHIEVEMENT
314
KAIZEN TRAINING AT ASHOK LEYLAND
• TRG CONSISTS OF REVIEW OF TPS PHILOSOPHY OBJECTIVE AND EXAMPLES OF PAST KAIZEN EFFORTS
• EXTENDS TO ACTUAL APPLICATION IN WKPLACE AND F/U TO ENSURE ACHIEVEMENT OF PLANNED IMPROVEMENT
• KAIZEN MATRL AND INFO FLOW IS REVIEWED
• TIME STUDY OF PROCESS ELEMENTS
315
KAIZEN TRAINING AT ASHOK LEYLAND
• CYCLE TIME OF M/C MEASURED• PROCESS PROBLEMS IDENTIFIED AND
ANALYSED• KAIZEN GOALS SET FOR CHANGE• KAIZEN IDEAS DEVELOPED AND
IMPLEMENTED• IMPACT OF KAIZENS ON PROCESSES
VERIFIED• REPORT ON ACHIEVEMENT PREPARED
316
DESIGN QUALITY
• IDENTIFYING NEEDS INCLUDING NEED TO CHANGE
• DEVELOPING OFFERING THAT SATISFY NEEDS
• CHECKING CONFORMANCE TO THE NEED
• ENSURING THAT NEED IS SATISFIED
317
LINKS BETWEEN GOOD DESIGN AND MANAGING
BUSINESS• LEADERSHIP AND MANAGEMENT STYLE• CUSTOMERS STRATEGY AND PLANNING• PEOPLE MGT AND SATISFACTION• RESOURCE MGT• PROCESS MGT• IMPACT ON SOCIETY AND BUSINESWS
PERFORMANCE
318
DESIGN ATTRIBUTES IN SERVICES
• LABOUR INTENSITY-RATIO OF LABOUR COSTS INCURRED TO THE VALUE OF ASSETS AND EQUIPMENT (PEOPLE V/S EQPT COST)
• CONTACT-PROPORTION OF TOTAL TIME REQD TO PROVIDE SERVICE FOR WHICH CUSTOMER IS PRESENT
• INTERACTION-EXTENT TO WHICH CONSUMER ACTIVELY INTERVENES IN THE SERVICE PROCESS TO CHANGE THE CONTENT OF THE SERVICE. THIS INCLUDES CUSTOMER INFO FROM WHICH NEEDS CAN BE ASSESSED AND FEEDBACK FROM WHICH SATISFACTION LEVELS CAN BE INFERRED
• CUSTOMIZATION-INCLUDES CHOICE AND ADAPTATION
319
CHARACTERISTICS OF SERVICE DELIVERY SYSTEMS
• PERISHABLE-SERVICES CANNOT BE STORED
• SIMULTANEOUS-CONSUMER MUST BE PRESENT FOR MANY SERVICES TO BE RENDERED eg MEDICAL OPERATION
• HETEROGENOUS-EXPLICIT AND IMPLICIT SERVICE ELEMENTS RELYING ON PERSONAL PREFERENCES AND PERCEPTIONS.SAME SERVICE MAY GENERATE VARIED DEGREES OF SERVICE OUTPUTS AND QLTY
320
DESIGN FOR MANUFACTURE
• DESIGN FOR MFG DESCRIBES DESIGNING A PRODUCT SO THAT IT CAN BE PRODUCED EASILY AND ECONOMICALLY
• DFM VIEWS PRODUCT DESIGN AS FIRST STEP IN PRODUCT MFG• DFM IDENTIFIES PRODUCT-DESIGN CHARACTERISTICS THAT ARE
EASY TO MFG, FOCUSES ON DESIGN OF COMPONENT PARTS THAT ARE EASY TO FABRICATE AND ASSEMBLE
• DFM INTEGRATES DESIGN WITH PLANNING• DFM ENSURES THAT MFG CONCERNS ARE INTEGRATED INTO
DESIGN• DFM IMPROVES QLTY OF PRODUCT-DESIGN AND REDUCES COST
OF DESIGN AND MFG• DESIGN SHOULD MEET CUSTOMER NEEDS• STANDARDISATION ALLOWS INTERCHANGEABILITY OF PARTS
RESULTING IN REDUCTION IN INVENTORY ITEM NUMBERS
321
DFM GUIDELINES
• MINIMSE NUMBER OF PARTS• DEVELOP A MODULAR DESIGN• DESIGN PARTS FOR SEVERAL M/C
TYPES• MAKE ASSEMBLY EASY AND
FOOLPROOF• DESIGN FOR MINIMAL HANDLING• MINIMISE SUB ASSEMBLIES
322
DFM GUIDELINES
• USE STD PARTS
• SIMPLIFY OPERATIONS
• DESIGN FOR EASY REPLACEMENT OF PARTS
• USE WELL UNDERSTOOD PROCESSES
• ANALYSE FAILURES
323
DESIGN FOR ASSEMBLY
• SET OF PROCEDURES FOR REDUCING NUMBER OF PARTS IN AN ASSEMBLY AND DETERMINING AN ASSEMBLY SEQUENCE
• PROVIDES A CATALOG OF GENERIC PART SHAPES ALONG WITH ESTIMATES OF ASSEMBLY TIMES
324
DESIGN FOR ENVIRONMENT
• EVERY YEAR MILLIONS OF PC ETC ARE DISCARDED
• GOVT HAS ENFORCED A RETHINK ON DISPOSAL OF ELECTRONIC WASTE
• DFE INVOLVES DESIGNING PRODUCTS FROM RECYCLED MATRL USING MATRL WHICH CAN BE RECYCLED OR DESIGNING A PRODUCT WHICH IS EASIER TO REPAIR THAN DISCARD
325
IMPACT ON SOCIETY AND BUSINESS PERFORMANCE
• CONSIDER HOW PRODUCT DESIGN CAN IMPACT -ENVIRONMENT -RECYCLING AND DISPOSAL OF MATERIAL -PACKAGING AND WASTAGE OF RESOURCES -ECONOMY(EMPLOYMENT) -BUSINESS RESULTS FINANCIAL AND NON FINANCIAL
326
DEFINITION OF VALUE
• VALUE IS A WORD USED WITHOUT UNDERSTANDING THE MEANING
• DIFFERENT DEPTS OF SAME COMPANY HAVE VARIED MEANING
• DESIGNER RELATES VALUE WITH RELIABILITY
• MFG RELATES WITH COST OF MFG• PURCHASE RELATES WITH COST OF RM• SALES RELATES TO THE PRICE CUSTOMER
IS WILLING TO PAY
327
DEFINITION OF VALUE
• VALUE IS THE RELATIONSHIP BETWEEN COST AND QLTY • VALUE = QUALITY/COST• VALUE IS PLACED FOR VARIOUS ATTRIBUTES MORE POPULARLY
KNOWN AS FUNCTIONS OF A PRODUCT• TWO TYPES OF FUNCTIONS -
PRIMARY –SECONDARY• PRIMARY FUNCTIONS ARE THOSE ATTRIBUTES FOR WHICH A
PRODUCT IS PURCHASED AND MEANT TO BE USED eg THE PRIMARY FUNCTION OF A CAR IS TO SAFELY TRANSPORT PEOPLE BETWEEN TWO POINTS WITH FUEL ECONOMY
• SECONDARY FUNCTIONS ARE THOSE ATTRIBUTES WHICH ARE NOT PRIMARY FUNCTIONS BUT WHICH PEOPLE WISH TO SEE AS ATTRIBUTES OR FUNCTIONSS IN A PRODUCT eg IN A CAR WE ALSO WISH TO HAVE A/C AND OTHER ACCESSORIES
328
DEFINITION OF VALUE ANALYSIS/ENGINEERING
• VA/VE DEFINED AS TECHNIQUE WHICH EXAMINES ALL FACETS OF FUNCTION AND COST OF A PRODUCT IN ORDER TO DETERMINE WHETHER CERTAIN PRODUCT COSTS CAN BE REDUCED OR ELIMINATED WHILE RETAINING ALL FEATURES AND QLTY
• SOCIETY OF AMERICAN VALUE ENGRS DEFINES VALUE ANALYSIS AS THE SYSTEMATIC APPLICATION OF RECOGNISED TECHNIQUES WHICH IDENTIFY FUNCTION OF PRODUCT/SERVICE,ESTABLISH A MONETARY VALUE FOR THE FUNCTION AND PROVIDE FUNCTION RELIABILITY AT LOWEST COST
• VALUE ANALYSIS IS A FUNCTIONALLY IORIENTED METHOD FOR IMPROVING PRODUCT VALUE BY RELATING ELEMENTS OF PRODUCT WORTH TO ELEMENTS OF COST
• OBJECTIVE OF VA IS TO IMPROVE VALUE BY REDUCING COSTS WITHOUT SACRIFING QLTY AND RELIABILITY
• VE IS A COST PREVENTIVEE TECHNIQUE WHICH ELIMINATES UNREQD COSTS FROM BEING BUILT INTO PRODUCT
329
VALUE ENGG/ANALYSIS
• ENGINEERING IS A PROCESS OF ASSESSMENT OF A PRODUCT DURING DESIGN PHASE
• ANALYSIS IS ASSESSMENT OF A PRODUCT DURING USAGE• OBJECTIVE IS TO ELIMINATE UNREQD FEATURES AND
FUNCTIONS IN PRODUCT DESIGN• MOST ACTIVITIES PERFORMED IN ANALYSIS PHASE• VA TEAM ASSIGNS A VALUE TO EACH FUNCTION AND
FINDS COSTS TO DELIVER FUNCTION AND RATIO OF VALUE TO COST IS CALCULATED
• RATIO IMPROVED BY REDUCING COST OF ITEM OR INCREASING WORTH
330
VALUE ENGG/ANALYSIS
• VALUE ANALYSIS IS A MGT TECHNIQUE FOR REDUCING MFG COSTS AND ///LY IMPROVING QLTY AND RELIABILITY OF PRODUCT
• VALUE ENGG IS USED TO COVER THE INITIAL DESIGN STAGE
• VALUE MEANS DIFFERENT THINGS TO DIFFERENT PEOPLE AT DIFFERENT TIME
• VALUE OF AN ITEM DETERMINED ON THE BASIS OF VARIOUS ASPECTS:
331
TYPES OF VALUE• COST VALUE IS SUM OF ALL COSTS INCURRED IN MFG OF PRODUCT eg MATRL
LABOUR TOOLING O/H• USE VALUE IS THE COST INCURRED TO MAKE PRODUCT FUNCTIONAL eg QLTY
COSTS INCURRED TO ENSURE A/C COOLS TO REQD TEMPERATURE• ESTEEM VALUE IS THE COST INCLUDED INTO PRODUCT TO ENHANCE CUSTOMER
APPEAL Eg IN SOME CASES THE MOTOR CAR ESTEEM VALUE > USE VALUE IN TERMS OF FUEL
CONSUMPTION LIKE IN THE CASE OF A MERCEDES BENZ WHICH GIVES ONLY 6 KM/LTR AGAINST THE AVERAGE 15-18KM/LTR IN OTHER BRANDED CARS
• EXCHANGE VALUE IS THE VALUE OF PROPERTIES WHICH ENABLES AN ITEM TO BE EXCHANGED FOR SOMETHING ELSE .EXCHANGE VALUE IS GENERALLY RESALE VALUE. Eg REAL ESTATE EXCHANGE VALUE IS INFLATED BY 20% EVERY YEAR
• PLACE VALUE IS VALUE OF PROPERTY/EQUIPMENT WHICH VARIES IN PRICE WRT LOCATION eg IN MUMBAI REAL ESTATE IS MORE EXPENSIVE IN WESTERN SUBURBS THAN IN EAST
• TIME VALUE IS PROPERTY OF PRODUCT/SERVICE RENDERED AT THE RIGHT TIME eg THE TIMING OF AN EMERGENCY OPERATION IS CRITICAL FOR SURVIVAL OF THE PATIENT
332
VALUE ENGG/ANALYSIS
• ECONOMIC WORTH = COST VALUE + EXCHANGE VALUE + USE VALUE + ESTEEM VALUE + PLACE VALUE + TIME VALUE
• REAL WORTH = ECONOMIC WORTH/COST VALUE • REAL WORTH = WORTH/LIFE CYCLE COST• FOCUS OF VE TO INCREASE REAL VALUE OF
PRODUCT PROCESS OR SERVICE• VE/VA GENERALLY RESULTS IN COST
REDUCTION
333
QUESTIONS IN VALUE ANALYSIS
• CAN WE DO WITHOUT IT• DOES IT DO MORE THAN REQD• DOES IT COST MORE THAN IT IS WORTH• CAN SOMETHING ELSE SUBSTITUTE IT• CAN TWO PARTS BE COMBINED OR CAN ONE
COMPONENT BE MADE INTO TWO • CAN IT BE MADE IN A LESS COSTLY METHOD
WITH LESS COSTLY MATRL• CAN IT BE MADE CHEAPER BETTER OR FASTER• WHAT NEW PROCESSES CAN WE USE
334
QUESTIONS IN VALUE ANALYSIS
• CAN AN ALTERNATIVE MATRL BE USED• CAN ANY DIMENSIONS BR REDUCED TO
USE LESS MATRL• CAN AMOUNT OF WASTE BE REDUCED• CAN PARTS BE STANDARDISED• CAN TWO PARTS BE COMBINED • IS BUYING CHEAPER THAN MAKING• WHAT IS THE COST OF ADHERING TO
SPECS• WHAT NEW PROCESSES CAN BE USED
335
WAYS TO INCREASE VALUE BY VE
• REDUCE FUNCTIONS WITH CUT CORNERS EXERCISE
• KEEP FUNCTIONS UNCHANGED BUT REDUCE COSTS
• INCREASE FUNCTIONS BUT RETAIN COSTS
• INCREASE FUNCTIONS MORE THAN COST INCREASE
336
USES OF VALUE ENGINEERING
• COST PREVENTION AND ELIMINATN TECHNIQUE TO REDUCE COST OF PRODUCT
• ENABLES BETTER UNDERSTANDING OF EMPL JOBS
• BALANCES COST AND PERFORMNCE• PREVENTS OVER DESIGN OF COMPONENTS• MOTIVATES EMPL TO GIVE CREATIVE IDEAS• INCREASES PROFITS AND DEFLATES COSTS• HELPS SATISFY CUSTOMERS WITH PRODUCTS
337
PRINCIPLES OF VALUE ANALYSIS
• DO NOT USE A PART THAT DOES NOT CONTRIBUTE TO THE VALUE OF THE PRODUCT
• DO NOT USE A PART WHOSE COST IS NOT PROPORTIONAL TO ITS USEFULNESS
• DO NOT PROVIDE ANY FEATURES TO THE COMPONENT OR FINISHED PRODUCT THAT ARE NOT ABSOLUTELY REQUIRED
• ACCEPT CHANGE IF PART OF REQD QLTY IS MADE BY A PROCESS COSTING LESS THEN USE THE ALTERNATIVE PROCESS
• USE STANDARDISED PARTS WHEREVER POSSIBLE• USE PROPER MFG METHODS TAKING INTO ACCOUNT THE QUANTITIES• COST OF COMPONENT USED SHOULD BE PROPORTIONAL TO ITS FUNCTION• USE THE MATERIAL BEST SUITED FOR THE PURPOSE• PURCHASE THE PART INSTEAD OF IN HOUSE MFG IF SUITABLE SUPPLIER
CAN PROVIDE THE PART OF GOOD QLTY AT REASONABLE PRICE
338
WHEN TO APPLY VA
• PRODUCTS ARE LOSING THEIR MKT SHARE AND THERE IS DECLINE IN SALES
• PRODUCTS ARE PRICED HIGHER THAN COMPETITION IN A PRICE SENSITIVE MKT OR PRODUCT COST IS > SALES PRICE OF COMPETITION
• NEW DESIGNS TO BE UNDERTAKEN• RISING MFG COSTS
339
REASONS FOR UNNECCESARY COSTS
• LACK OF RELEVANT INFO LEADS TO WRONG DECISIONS WHICH INCREASE COSTS
• WRONG BELIEFS FROM ACCEPTING OPINIONS
• LACK OF IDEAS
340
DIFFERENCE BETWEEN VE AND OTHER COST REDUCTION
TECHNIQUES• TRADITIONAL TECHNIQUES ARE POST PRODUCTION ORIENTED
AND CONCENTRATION IS ON THE PART OR ELEMENT IN CONTRAST TO VALUE ANALYSIS WHICH IS FUNCTION ORIENTED
• OTHER TECHNIQUES TRY TO REDUCE THE COST BY EXISTING METHOD WHEREAS VA NEVER CONSIDERS ANY PROCESS METHOD OR ELEMENT GRANTED AND IT ANALYSES BY FUNCTION RATHER THAN PART OR ELEMENT
• COST REDUCTION CAN REDUCE THE COSTS UPTO 10% WHEREAS VA CAN REDUCE COSTS UPTO 40-50% WITHOUT SACRIFICING QLTY AND PERFORMANCE
• VALUE ANALYSIS QUESTIONS THE VERY EXISTENCE OF PARTS OR PROCESS BY ANALYSIS OF ITS DESIGN SPECIFICATIONS, MATRLS AND PROCESS OF MFG
• COST REDUCTION IS COST ORIENTED AND CONCENTRATES ON FINDING THE CHEAPER COST WHEREAS VALUE ANALYSIS IS FUNCTION ORIENTED AND TRY TO PRODUCE THE PRODUCT AT LOWEST COST WITHOUT SACRIFICING QLTY AND PERFORMANCE
341
STRATEGIC STEPS IN VALUE ANALYSIS
• DETERMINE FUNCTION AND COST OF EACH ELEMENT IN FINISHED PROD
• CONSIDER ALTERNATIVES THAT FULFIL FUNCTIONS
• SELECT BEST ALTERNATIVE WHICH INCLUDES MATRL,STANDARDISATION OF DIMENSIONS
• STRATEGIC CHOICE OF MAKE EXPENSIVE PRODUCTS OR SUBCONTRACT
• MODIFY DESIGN TO REDUCE COSTS
342
VA PROCEDURE
• IDENTIFY ITEMS TO BE ANALYSED• DIFFERENTIATE WHETHER ITEM OR PROCESS• IDENTIFY INTERNAL AND EXTERNAL CUSTOMERS• IDENTIFY BASIC FUNCTIONS• IDENTIFY SECONDARY FUNCTIONS WHICH SUPPORT BASIC• TO PRIORITISE DETERMINE VALUE OR IMPERTANCE TO
CUSTOMER OF EACH FUNCTION• BREAK ITEM/PROCESS INTO CONSTITUENT COMPONENTS
BY USING FLOWCHART• ASSOCIATE COMPONENTS WITH FUNCTIONS• LOOK FOR COMPONENTS WHICH CAN BE MODIFIED OR
ELIMINATED
343
OPTIONS IN VA/VE
• MODIFY
• INTEGRATE
• SUBSTITUTE
• SIMPLIFY
344
WHEN TO USE VA/VE
• AIM IS TO EVALUATE REAL VALUE OF PRODUCT/PROCESS
• FOCUS IS ON SAVING COSTS
• AIM IS ON INCREASING VALUE OF PROCESS/PRODUCT
345
BENEFITS OF VALUE ENGINEERING
• COST REDUCTION/ELIMINATION TECHNIQUE
• BALANCES COSTS AND PERFORMANCE• PREVENTS OVER DESIGN OF PRODUCT
(CUSTOMER FUNCTION DEPLOYMENT)• INCREASES PROFITS AND REDUCES COSTS• INCREASES CUSTOMER SATISFACTION
346
EXAMPLES OF VALUE ANALYSIS
• MODIFY-MOTOR CAR ENGINES HAVE BEEN MODIFIED TO RUN ON CNG
• INTEGRATE-AIR CONDITIONER AND HEAQTER INTEGRATED INTO ONE UNIT
• SUBSTITUTE-INHOUSE WIRING HAS BEEN CHANGED FROM COPPER TO ALUMINIUM OR COKE BOTTLES CHANGED FROM GLASS TO PLASTIC
• SIMPLIFY-APPLICATION SOFTWARE SIMPLIFIED BY BEING MADE MODULAR.EARLIER ALL MODULES WERE BUNDLED OR COMPLICATED EQUIPMENT MADE MODULAR WHICH SIMPLIFIES MAINTENANCE
347
FAILURE MODE EFFECT ANALYSIS
• ENGG TECHNIQUE USED TO DEFINE IDENTIFY AND ELIMINATE KNOWN/POTENTIAL FAILURES PROBLEMS,ERRORS WHICH OCCUR
• ALL PROBABLE FAILURE MODES WITH THEIR CAUSES AND RESULTS LISTED WITH LIKELIHOOD OF FAILURE
• DONE BEFORE PRODUCT REACHES CUSTOMER• IN BUSINESS PROCESSES THE DIRECT/INDIRECT
FINANCIAL/NON FINANCIAL IMPACT COMPUTED• FMEA AIMS TO ASSESS WHETHER EFFECTS OF FAILURE
MODE ARE CRITICAL• CONSIDERATIONS LIKE SEVERITY OF
FAILURE,LIKELIHOOD OF FAILURE AND DETECTABILITY (FORESEEN THRU DEGRADATION,INSPECTION)
348
METHODOLOGY OF FMEA
• IDENTIFY PROCESS CHARACTERISTICS IN EACH OPERATION• DEFINITION OF WHAT IS FAILURE-TOTAL,PARTIAL WITH EFFECTS• FIND OUT ALL POSSIBLE FAILURE MODES AND ANALYSE EFFECTS• ESTIMATE SERIOUSNESS OF FAILURE MODES AND EFFECT TO
CUSTOMER BY RATING FAILURE IN TERMS OF RISK PRIORITY NUMBER
• FIND OUT ROOT CAUSE OF FAILURE• SUGGEST ACTIONS TO IMPROVE DETECTION AND ELIMINATE
FAILURE MODE OR REDUCE OCCURRENCE AND IMPACT• FAILURES ADDRESSED BASED ON RPN• OBJECTIVE OF FMEA TO ANTICIPATE FAILURES• INTER RELATIONSSHIP BETWEEN FAILURES DRAWN THRU FAULT
TREE ANALYSIS USING AND/OR GATES• FTA/FMEA DEVELOPED BY BELL LAB AND WIDELY USED BY US
DEFENCE UNDER THE INITIATIVE RCM 1
349
KEY DEDUCTIONS OF FMEA
• PROCESS RELIABILITY AND UPTIME• ROOT CAUSE FAILURE ANALYSIS• CAUSE EFFECT CHAIN OF FAILURES
WITH PATTERNS• PROCESS EFFECTIVENESS AND
EFFICIENCY• CUSTOMER COMPLAINTS AND
RETURN DATA ANALYSIS
350
CATEGORIES OF FMEA
• SYSTEM FMEA USED TO ANALYSE COMPONENTS/SUBSYSTEMS IN EARLY STAGE OF DESIGN CONCEPT DONE THRU COP AID SIMULA
• DESIGN FMEA USED TO ANALYSE PRODUCTS/PARTS BEFORE THEY ARE RELEASED TO MFG THRU CAE-CAD
• PROCESS FMEA APPLICABLE IN ANALYSIS OF FAILURE MODES CAUSED BY PROCESS DEFICIENCES
• SEVICE FMEA USED TO ANALYSE SERVICES BEFORE THEY REACH THE CUSTOMER THRU ENSURING OF QLTY AND RELIABILITY OF SERVICE
351
OUTPUT OF FMEA
• POTENTIAL LIST OF FAILURE MODES• POTENTIAL LIST OF CRITICAL
CHARACTERISTICS AND EFFECTS• POTENTIAL LIST OF FAILURE MODES
PRIORITIES RANKED BY RPN• POTENTIAL LIST OF PARAMETERS TO BE
TESTED FOR A PROCESS• SHORT AND LONG TERM PROCESS
CAPABILITIES
352
PROCEDURAL STEPS IN FMEA ANALYSIS
• IDENTIFY ALL COMPONENTS AND ASSEMBLIES OF THE SYSTEM
• LIST ALL POSSIBLE FAILURE MODES OF A SYSTEM WITH PROBABILITIES AND CAUSE-EFFECT CHAIN DIAGRAM
• ESTIMATE EFFECTS EACH FAILURE MODE HAS ON PROCESS/PRODUCT
• LIST ALL POSSIBLE CAUSES OF EACH FAILURE MODE
• CALCULATE RPN=PROBABILITY*SERIOUSNESS*DIFFICULTY OF DETECTION
353
RISK PRIORITY NUMBER
• HELPS IN DEFINING CRITICALITY OF FAILURE• GOAL OF FMEA TO REDUCE RPN• RPN=SEV* OCCUR*DET• SEV 1=NO EFFECT SEV 10=HAZARD• OCCURRENCE PROBABILITY 1-9 WITH 1 BEING
REMOTE AND 9 CERTAIN FAILURE• DETECTION IS POSSIBILITY AND EASE OF
DETECTION WITH 1 BEING EASILY DETECTED AND 4 BEING DETECTED ONLY AFTER CAUSE EFFECT AND ROOT CAUSE ANALYSIS
354
SEVERITY CODES• 1 NO EFFECT• 2 VERY SLIGHT EFFECT ON PERFORMANCE. NON VITAL FAULTS
OBSERVED.CUST NOT ANNOYED• 3 SLIGHT EFFECT ON PERFORMANCE.CUST SLIGHTLY ANNOYED• 4 MINOR EFFECT ON PERFORMANCE.FAULT DOES NOT REQUIRE
IMMEDIATE ATTENDANCE.CUST OBSERVES MINOR EFFECT ON PERFORMANCE.NON VITAL FAULTS OBSERVED
• 5 MODERATE EFFECT ON PERFORMANCE.CUST DISSATISFIED.FAULT REQUIRES REPAIRS
• 6 SIGNIFICANT DEGRADATION OF PERFORMANCE BUT SYSTEM OPERATIONAL.CUST DISCOMFORT.NON VITAL PART INOPERABLE
• 7 MAJOR PERFORMANCE RETARDATION BUT SYSTEM OPERATIONAL. SUBSYSTEM INOPERABLE.CUST VERY DISSATISFIED
• 8 EXTREME SITUATION.SYSTEM INOPERABLE BUT SAFE CUST VERY DISSATISFIED
• 9 SERIOUS POTENTIAL HAZARD GRADUAL WHOLE FAILURE.SAFETY ENDANGERED
• 10 CATASTROPHIC HAZARDOUS EFFECTS SAFETY RELATED FAILURES.
355
OCCURRENCE PROBABILITY
• RATING CHANCE LIKELY• 1 10**-8 REMOTE• 2 10**-7 ISOLATED• 3 10**-6 OCCASIONAL• 4 10**-5 MODERATE LOW• 5 10**-4 MODERATE HIGH• 6 10**-3 RSNABLE PROBABLTY• 7 10**-2 HIGH PROBABLTY• 8 10**-1 IMMINENT• 9 100% FAILURE
356
DETECTION RATING
• 1 FAULT OBVIOUS• 2 FAULT DISCOVERED AFTER
INSPECTION• 3 FAULT DICOVERED AFTER
FAILURE ANALYSIS• 4 FAULT DISCOVERED AFTER
PERFORMING CAUSE EFFECT AND ROOT CAUSE ANALYSIS
357
FMEA CHART AT ASHOK LEYLAND
• PROCESS-PROJECTION WELDING• POTENTIAL FAILURE MODES:
-THREAD TIGHT –NUT DAMAGE -NUT MISSING
• POTENTIAL EFFECTS OF FAILURE -FITMENT PROBLEM
• SEVERITY 9• POTENTIAL CAUSES OF FAILURE:
-CURRENT FLUCTUATION -IMPROPER WELDING
• OCCURRENCE 8• DETECTION METHOD-PROCESS CHECKING• DETECTION 3• RPN 216
358
FAULT TREE ANALYSIS• WELL ESTABLISHED TECHNIQUE FOR FINDING FAILURE RELATIONSHIP
AND IS FAULT ORIENTED WHERE IT LOOKS AT ALL POSSIBLE WAYS IN WHICH A PRODUCT COULD FAIL
• FOCUSES ON RELATIONSHIPS BETWEEN FUNCTIONAL EFFECTS AND PRODUCT COMPONENT AND IS DONE TOP DOWNWARDS AND BEGINS BY IDENTIFYING THE TOP UNDESIRABLE EVENTS IN THE SYSTEM
• BASIC STEPS INVOLVED IN PERFORMING FTA : -ESTABLISHING SYSTEM DEFINITION -CONSTRUCTING FAULT TREE - EVALUATING FAULT TREE QUALITATIVELY -COLLECTING DATA SUCH AS FAILURE RATES REPAIR RATES AND FAILURE PROBABILITY AND MTBF -RECOMMENDING CORRECTIVE MEASURES
• WHEREAS FMEA CONSIDERS FAILURE OR INDIVIDUAL COMPONENTS OF SYSTEM ONE AT A TIME AND NOTING FAILURE CONSEQUENCES FROM BOTTOM UP FTA IS REVERSE OF FMEA
• USES OR /AND GATES FOR DRILLING DOWN
359
ROOT CAUSE ANALYSIS OF FAILURE
• UNDERTAKEN TO SEARCH FOR ROOT OF PROBLEM• EFFECTIVE RCA IS ABOUT SEEKING SOLUTIONS THAT
CONTROL CAUSES OF PROBLEMS• LOOK FOR CAUSES FROM EFFECTS• EACH CAUSE OR SET OF CAUSES CAUSE THE NEXT
EFFECT(S)• SOLUTION IS ATTACHED TO THE CAUSE THAT PREVENTS
THE PROBLEM FROM REOCCURING • UNDERSTANDING CAUSE EFFECT RELATIONSHIP IS VITAL
IN EFFECTIVE MAINTENANCE PROGRAM• TECHNIQUE FOR FAULT ANALYSIS WHICH TRACES ROOT
CAUSE IS CALLED 5-WHY ANALYSIS
360
ROOT CAUSE ANALYSIS OF FAILURE
• SEARCH ROOT CAUSE OF PROBLEM
• EACH CAUSE PRODUCES 1 OR MORE NEXT EFFECTS
• SOLUTION IS ONE THAT PREVENTS CAUSE FROM REOCCURING
• QUESTION WHY 5 TIMES MAY LEAD TO ROOT CAUSE OF PROBLEM
361
STAGES IN ROOT CAUSE ANALYSIS
• UNDERSTANDING THE PROBLEM
• DATA COLLECTION AND REVIEW
• DATA ASSESSMENT ANALYSIS AND ROOT CAUSE DETERMINATION
• CORRECTIVE ACTION TAKEN
• CORRECTIVE ACTION REPORTING AND ANALYSIS
362
5 WHY ANALYSIS OF CONVEYOR BELT AT ASHOK
LEYLAND• PROBLEM-CONVEYOR BELT GOT CUT ALONG
WIDTH• WHY BELT CUT--FOREIGN MATRL STUCK• WHY FOREIGN MATRL STUCK—ENTRAPPED
AROUND ROUTE• WHY ENTRAPPED—MATRL NOT SCREENED• WHY MATRL NOT SCREENED—INADEQUATE
PROCESS CONTROL• ROOT CAUSE—WHY INADEQUATE PROCESS
CONTROL—• SCREENING FACILITY NOT AVAILABLE
363
QUALITY FUNCTION DEPLOYMENT
• METHODOLOGY WHERE ALL KNOWLEDGE ABOUT NEEDS AND WANTS OF CUST ARE INCORPORATED INTO ALL STAGES OF DESIGN,MFG,DELVY AND SERVICES
• QFD IS METHODOLOGY WHERE ALL REQMNT ARE UNDERSTOOD AND INCORPORATED FOR BENEFIT OF CUSTOMERS
• QFD EMPLOYS A STEP BY STEP APPROACH FROM CUSTOMER NEEDS AND EXPECTATIONS THRU 3 PLANNING PHASES OF: -PRODUCT PLANNING –PRODUCT DEVELOPMENT -PROCESS DELIVERY AND SERVICES
• QFD IS PROCEDURE WHICH HELPS TO BUILD QLTY INTO UPSTREAM PROCESSES AND INTO NEW PRODUCT DEV
• VOICE OF CUSTOMER IS CARDINAL TO QFD• IMPORTANT TO DETERMINE WHO ACTUALLY IS THE CUSTOMER INTERNAL OR
EXTERNAL• LEVELS OF CUSTOMER EXPECTATIONS: -
BASIC FUNCTIONAL EXPECTATION –PERFORMANCE EXPECTATIONS -SERVICE EXPECTATIONS -INVESTMENT PROTECTION EXPECTATIONS -MINIMUM COST OF OWNERSHIP
364
QUALITY FUNCTION DEPLOYMENT
• CUSTOMER REQUIREMENTS AND PERCEPTIONS• PRODUCT PLANNING(TRANSLATION OF REQMNT INTO FUNCTIONAL FEATURES AND
SPECIFICATIONS)• DESIGN REQUIREMENT TRANSLATED INTO DESIGN ATTRIBUTES AND ENGINEERING
MEASURES• PART DEPLOYMENT AND CHARACTERISTICS• PROCESS PLANNING- OPERATIONAL STEPS AND MEASURES• OPERATIONAL TASKS,MEASURES,CONDITIONS• CONTROLS• DEPLOYED THRU PRODUCT PLANNING, PART DEVELOPMENT,PROCESS
PLANNING,PRODUCTION PLANNING,SERVICE PLANNING • VARIOUS DEGREES OF PLANNING INVOLVED IN QFD INCLUDE: -
PRODUCT PLANNING -PART DEVELOPMENT -PROCESS PLANNING -PRODUCTION PLANNING -SERVICE PLANNING -
365
LEVELS OF CUSTOMER EXPECTATION
• BASIC FUNCTIONAL EXPECTATIONS
• PERFORMANCE EXPECTATIONS
• SERVICE EXPECTATIONS
• INVESTMENT PROTECTION EXPECTATIONS
• MINIMISED COST OF OWNERSHIP EXPECTATIONS
366
QFD PROCESS• REQUIRES THAT COMPANY ADOPT A CUSTOMER ORIENTED PHILOSOPHY• QFD HAS MULTIPLE MATRICES FOR TRANSLATRING CUSTOMER NEEDS INTO
PRODUCT REQMNT AND SYSTEM SPECS• PHASES EMPLOYED ARE:
-CONVERTING CUSTOMER REQMNT INTO TECHNICAL REQMNT -CONVERTING TECHNICAL REQMNT INTO CHARACTERISTICS OF KEY PARTS OF PRODUCT -CONVERTING CHARACTERISTICS OF KEY PARTS INTO THE PROCESS TO MFG OF THESE PARTS -CONVERTING CHARACTERISTICS OF THE MFG PROCESS INTO DETAILED PRODN PROCEDURES AND CONTROL METHODS
• 1 CUSTOMER REQUIREMENT –TECHNICAL ATTRIBUTES -CUSTOMER PERCEPTIONS -ENGINEERING MEASURES
• 2 DESIGN MATRIX -TECHNICAL ATTRIBUTES -PRODUCT FEATURES –MEASURES• 3 OPERATING MATRIX –PRODUCT FEATURS -PROCESS STEPS –MEASURES -PROCESS
STEPS• 4CONTROL MATRIX -PROCESS STEPS –OPERATIONAL
TASKS,CONDITIONS,CONTROLS MEASURES
367
IMPLEMENTING THE QFD PROCESS-SEQUENCE OF
ACTIONS• OBTAIN CUSTOMER NEEDS AND PERCEPTIONS• TRANSLATE CUSTOMER NEEDS INTO PRODUCT/ SYSTEM REQMNT
& SPECS• MEASURES OF CUSTOMER NEEDS ARE TRANSLATED INTO DESIGN
ATTRIBUTES AND ENGINEERING MEASURES• DESIGN ATTRIBUTES ARE TRANSLATED INTO PRODUCT/SERVICE
FEATURES• REQUIRED FEATURES ARE BASED DIRECTLY ON MEASURES OF
CUSTOMER NEEDS• FEATURES ARE THEN USED TO DEFINE PROCESSES AND
OPERATING CONDITIONS THAT ARE REQUIRED TO DELIVER VALUE TO CUSTOMER
• CONTROLS ARE DEFINED FOR OPERATING CONDITIONS HOUSE OF QLTY – DESIGN MATRIX – OPERATING MATRIX – CONTROL MATRIX
368
BENEFITS OF QFD
• PROMOTES BETTER UNDERSTANDING OF CUSTOMER DEMANDS AND COMPLAINTS AND SIMPLIFIES REMEDIAL ACTION
• PROMOTES BETTER UNDERSTANDING OF DESIGN INTERACTIONS• INVOLVES MFG IN DESIGN PROCESS• IMPROVES DOCUMENTATION OF DESIGN AND DEVELOPMENT
PROCESS• REDUCES NUMBER OF ENGG CHANGES• BRINGS NEW DESIGNS TO MARKET FASTER• REDUCES OVERALL COSTS OF DESIGN AND MFG• FACILITATES IDENTIFICATION OF CAUSES OF CUSTOMER
COMPLAINTS AND MAKES IT EASIER TO TAKE PROMPT ACTION • INCREASES CUSTOMER SATISFACTION• USEFUL TOOL FOR IMPROVING PRODUCT QLTY• MINIMIZES REJECTS AND REWORK• MINIMIZES CUSTOMER CLAIMS SUBSTANTIALLY
369
SIX SIGMA
• BUSINESS STRATEGY FOR GOOD QUALITY
• LEVEL OF PERFORMANCE THAT REDUCES DEFECTS
• METRIC OF PROCESS CAPABILITY • COMMITMENT TO CUSTOMERS TO
ACHIEVE ACCEPTABLE LEVEL OF DEFECTS
370
SIX SIGMA
• STATISTICAL INDICATION OF VARIATION FROM STANDARD WHICH IS MEANT TO INCREASE CUST SATISFACTION AND A TOOL WHICH AIMS AT ELIMINATING DEFECTIVE OUTPUT
• SIXMA EXPRESSED AS DEFECTS OR NON CONFORMITIES PER MILLION OPPORTUNITIES. 6 SIGMA IS A LEVEL OF PERFORMANCE WITH 3.4 DPMO
• ENABLES COMPANIES TO DRASTICALLY IMPROVE BOTTOM LINES AND MEASURES PROCESS CAPABILITY FOR QLTY
• CONCEPT DEVELOPED BY MOTOROLA• SIGMA IMPL CONSISTS OF
-DEFINE OBJECTIVE OF PROJECT -MEASURE KEY PROCESS PARAMETERS -ANALYSE PARAMETERS - IMPROVE THRU BENCHMARKING AND CONTINUOUS IMPROVEMENT -CONTROL PROCESS EXECUTION
371
STRATEGIC IMPLICATION OF SIX SIGMA
• BUSINESS PHILOSOPHY
• COMPANY VISION
• METRIC TO MEASURE AND COMPARE PERFORMANCE/RESULTS
• SYMBOL OF EXCELLENCE
• GOAL
• METHODOLOGY
372
ESSENCE OF SIX SIGMA• STRATEGIC TOOL WHICH AIMS AT ELIMINATING DEFECTIVE OUTPUT BY
BRINGING DOWN THE COST OF QLTY TO ZERO• DRASTICALLY REDUCES INSPECTION COSTS,DEFECTIVE COSTS,REWORK
AND RECTIFICATION COSTS• DATA AND FACT DRIVEN MGT APPROACH WITH FOCUS ON CUST• RIGOROUS ANALYTICAL PROCESS ORIENTED METHODOLGY• LEVEL OF PERFORMANCE(3.4 DPMO) WHICH REFLECTS REDUCED DEFECTS• MECHANISM WHICH ALLOWS COMPANIES TO INPROVE BOTTOM LINE• CONCEPT LINKED WITH QLTY,PRODUCTIVITY AND COST• METRIC WHICH DESCRIBES HOW WELL PROCESSES MEET CAPABILITY
REQMNT• SET OF STATISTICAL TOOLS TO HELP DMAIC PHASES • SIGNIFICANTLY IMPROVES PROFITABILITY THYRU CAPABILITY
IMPROVEMENT OF PROCESSES• EMPOWERS COST MSRMNT AND CONTROL
373
GOALS OF SIX SIGMA
• DEFECT REDUCTION
• YIELD IMPROVEMENT
• IMPROVED CUSTOMER SERVICES
• HIGHER NET INCOME
374
SIX SIGMA SPECIFICATION TABLE
• 1 SIGMA 30.23% 697700DPPM
• 2 SIGMA 69.13% 308700DPPM
• 3 SIGMA 93.32% 66810DPPM
• 4 SIGMA 99.3790% 6210DPPM
• 5 SIGMA 99.97670% 233DPPM
• 6 SIGMA 99.999660% 3.4DPPM
375
APPROACH FOR SIX SIGMA
• SIX SIGMA HAS A UNIVERSALLY DEFINED APPROACH WHICH CALLED DMAIC OR DEFINE,MEASURE,ANALYSE,IMPRVE,CONTROL
376
DEFINE
• QUESTIONS -WHAT IS THE PROBLEM AND SCOPE -CRITICALITY AND IMPORTANCE TO CUSTOMER -WHAT IS THE BENCHMARK -DEPENDENT VARIABLES AFFECTNG PROJECT -VOICE OF CUSTOMER HOW CAPTURED
• KEY ISSUES -WHAT IS DEFINITION OF PROJECT INCLUDING OPERATIONAL DETAILS -WHAT ARE PROJECT MILESTONES -CRITICAL TO QUALITY PARAMETERS AND IDENTIFICATION OF CRITICAL SUCCESS FACTORS
• TOOLS USED -PROJECT MGT -PARETO ANALYSIS -QFD -PROCESS MAPPING
377
MEASURE
• QUESTIONS -LIST PERFORMANCE VARIABLES AND IMPACT -GAP BETWEEN BENCHMARK AND EXISTING STATUS -PERFORMANCE CAPABILITY OF PROCESSES
• KEY ISSUES -REQMNT OF CUSTOMER –VALIDATION OF MSRMNT SCHEMES
• TOOLS USED - PROCESS MAPPING –QFD –CAUSE-EFFECT -7QC TOOLS –PROCESS SIGMA AND CAPABILITY
378
ANALYSE
• QUESTIONS -WHAT ARE SUCCESS FACTORS -WHAT ARE PERFORMANCE GOALS -WHAT ARE SOURCES OF VARIATION -WHAT IS TARGET % FOR IMPROVEMENT
• KEY ISSUES -ABILITY OF COMPANY TO DO IT -SELECTION OF VARIABLE AND QUANTIFICATION
• TOOLS USED -PROCESS MAP ,GAP ANALYSIS,ANALYTICAL TOOLS
379
IMPROVE
• QUESTIONS -HOW IS VARIABLE PERFORMANCE DIAGNOSED -HOW OPERATING LIMITS AND PROCESS CAPABILITY ESTABLISHED
• KEY ISSUES -HOW PERFORMANCE IMPRVMNT VERIFIED -ACTION PLANS -SOLUTIONS TO ADDRESS ROOT CAUSE OF PROBLEM -ESTABLISH OPERATING TOLERANCES
• TOOLS USED -DESIGN OF EXPERIMENTS
380
CONTROL
• QUESTIONS -HOW PERFORMANCE METRICS MONITORED –HOW CONTINUOUS IMPROVEMENT MONITORED
• KEY ISSUES -CONTROL OF PROCESSES -IMPLEMENTATION AND AUDIT OF CONTROL SYSTEM
• TOOLS USED -SPC POKA YOKE -INTERNAL QLTY AUDITS –CAPABILITY AUDITS
381
TOTAL PRODUCTIVITY MAINTENANCE
382
STRATEGIC QLTY MGT
• PROCESS OF ESTABLISHING LONG RANGE QLTY GOALS AND DEFINING APPROACH TO MEETING THESE GOALS
• STRATEGIC QLTY MGT LED BY SENIOR MGT• ELEMENTS IN SQM INCLUDE MISSION, SWOT
ANALYSIS• IDENTIFY AND EVALUATE ALTERNATIVE
STRATEGIES,DEVELOP GOALS• PREPARE DETAILED SHORT TERM PLANS• TRANSLATE PLANS INTO BUDGETS ACTIONS AND
RESOURCE REQMNTS
383
STRATEGIC QLTY MGT
• FUNDAMENTAL OBJECTIVE OF TQM STRATEGY IS TO ACHIEVE CUSTOMER SATISFACTION THRU TOTAL QLTY
• ACHIEVED THRU CUSTOMER FOCUS,CONTINUOUS IMPROVEMENT AND PEOPLE INVOLVEMENT
• THRUSTS ADOPTED INCLUDE SIX SIGMA,REDUCED CYCLE TIMES,CUSTOMER SATISFACTION TEAMWORK AND EMPOWERMENT
• BENCHMARKED WITH BEST OF CLASS AND ASSESSMENT OF QLTY WORTHINESS DONE THRU FRAMEWORKS SUCH AS MALCOLM BALDRIDGE ETC
• PERFORMANCE METRICS INCLUDE MEETING CUSTOMER REQMNT,QLTY STDS-DPU,DPMO,CYCLE TIME ETC
384
• ORG VISION MISSION VALUE STATEMENTS• FUNCTIONAL VISION MISSION etc• LONG TERM AND SHORT TERM GOALS• CRITICAL SUCCESS FACTORS • COMPETENCE ASSESSMENT• STRATEGIES TO ACHIEVE GOALS• RISK ASSESSMENT OF STRATEGIES WITH IMPACTS AND
ALTERNATIVES• DEFINITION OF MEASURES STRATEGIC OUTCOMES AND TARGETS
FOR PROCESSES AND ACTIVITIES• SELF ASSESSMENT AND ANALYSIS OF PROCESSES GAP FINDING
ANALYSIS AND IMPROVEMENT• BENCHMARKING FOR PROCESS IMPROVEMENT• FEEDBACK AND IMPROVEMENT• CONTINUOUS PROCESS OF IMPROVEMENT
SQM FRAMEWORK
385
STRATEGIC STATEMENTS
• IN ORDER TO SUCCEED COMPANIES MUST ENUNCIATE VISION MISSION AND QLTY POLICY STATEMENTS
• STATEMENTS PERIODICALLY REVIEWED AND UPDATED IF REQD
• PART OF STRATEGIC PLANNING PROCESS WHICH INCLUDES GOALS AND OBJECTIVES
• VISION STATEMENT IS A DECLARATION OF WHERE AN ORG WISHES TO BE IN THE FUTURE. GOOD COMPANIES HAVE A CORPORATE VISION AND DEPENDENT FUNCTIONAL VISIONS
• MISSION STATEMENT PROVIDES A CLEAR STATEMENT OF PURPOSE AND DEFINES THE FUNCTION OF THE ORG
• QLTY POLICY IS A GUIDE AS TO HOW TO PROVIDE PRODUCTS/SERVICES TO CUSTOMERS
386
QUALITY POLICY AND MISSION STATEMENT
• ORG MUST HAVE QLTY POLICY AND MISSION STATEMENTS WHICH DETERMINE AND INFLUENCE HOW WORK IS DONE
• POLICIES AND MISSION STATEMENT ARE INDICATIVE OF ORG VALUE SYSTEMS
• POLICY IS RULES FOR PREDETERMINED COURSE OF ACTION TO GUIDE PERFORMANCE OF WORK TOWARD THE ORG OBJECTIVE. POLICIES ARE COURSE OF ACTION SELECTED BY BUSINESS UNITS TO GUIDE ORG THINKING AND DESIGNED TO INFLUENCE DECISIONS
387
NEED FOR QUALITY POLICY AND MISSION STATEMENT
• ESSENTIAL FOR SUCCESSFUL FUNCTIONING OF QLTY IMPROVEMENT PROCESS
• STATEMENT OF INTENTIONS OF TOP MGT INDICATING WHAT ORG PROPOSES TO DO
• STATEMENT OF VALUES WHICH DOMINATE ORG ACTIONS AND TRANSLATES GOALS TO ACTIONS
• STANDARDS FOR EVALUATING PERFORMANCES• ENCOURAGE IMPROVEMENT AND INNOVATION• SUPPORT OF LONG TERM OBJECTIVES• ENABLING ORG TO CARRY OUT MAIN OBJECTIVE OF
CUSTOMER SATISFACTION• POLICY SHOULD DEAL WITH FUTURE DEVELOPMENT• STATEMENTS SHOULD BE PERIODICALLY REVIEWED TO
INCORPORATE CHANGING NEEDS
388
QUALITY STATEMENTS
• COMPANIES WISHING TO BE PROFICIENT IN QLTY SHOULD CLEARLY DEFINE THEIR VISION,MISSION AND QLTY POLICY STATEMENTS
• PERIODICALLY REVIEWED AND UPDATED
• PART OF STRATEGIC PLANNING EXERCISE WHICH INCLUDES GOALS AND OBJECTIVES
• VISION STATEMENT DEPICTS THE LONG TERM ASPIRATIONS OF THE COMPANY
• MISSION STATES HOW THE VISION WILL BE ACCOMPLISHED
• QLTY POLICY IS A GUIDE TO PROVIDE QLTY PRODUCTS/SERVICES TO CUSTOMERS AND DETERMINES AND INFLUENCES HOW WORK IS DONE
• POLICIES ARE INDICATIVE OF SYSTEMS IN PLACE
389
QUALITY POLICY
• QLTY IMPROVEMENT IS MGT RESPONSIBILITY
• ALL EMPLOYEES SHOULD PARTICIPATE IN QLTY IMPROVEMENT WHICH IS A CONTINUOUS PROCESS
• CARRY OUT QLTY BENCHMARKING SO AS TO IMPROVE
• IMPORTANT SUPPLIERS AND CUSTOMERS WILL BE CLOSELY INVOLVED IN QLTY POLICY
390
QUALITY POLICY
• COMPANY SHOULD ANNOUNCE QUALITY POLICY AND CONTENT SHOULD BE KNOWN TO ALL EMPLOYEES
• QUALITY POLICY REQUIRES TOP MGT TO : -IDENTIFY CUSTOMER NEEDS -ASSESS ORG CAPABILITY TO MEET THESE NEEDS ECONOMICALLY -ENSURE PURCHASED MATERIAL AND SERVICES RELIABLY MEET REQUIRED STANDARDS OF PERFORMANCE AND EFFICIENCY -CONCENTRATE ON PREVENTION RATHER THAN DETECTION -EDUCATE AND TRAIN FOR QUALITY IMPROVEMENT -MEASURE CUSTOMER SATISFACTION -REVIEW QLTY MGT SYSTEMS TO MAINTAIN PROGRESS
391
QUALITY POLICY AND MISSION STATEMENT
• ORG MUST HAVE QLTY POLICY AND MISSION STATEMENTS WHICH DETERMINE AND INFLUENCE HOW WORK IS DONE
• POLICIES AND MISSION STATEMNTS ARE INDICATIVE OF ORG VALUE SYSTEMS
• POLICY IS RULES FOR PREDETERMINED COURSE OF ACTION TO GUIDE PERFORMANCE OF WORK TOWARD THE ORG OBJECTIVE
• POLICIES ARE PLANS OR COURSE OF ACTIONS SELECTED BY BUSINESS UNITS TO GUIDE ORG THINKING AND DESIGNED TO INFLUENCE DECISIONS
• STATEMENTS PERIODICALLY REVIEWED FOR CURRENCY
392
QUALITY POLICY AND MISSION STATEMENT
• ESSENTIAL FOR SUCCESSFUL FUNCTIONING OF QLTY IMPROVMNT PROCESS
• STATEMENT OF INTENTIONS OF TOP MGT INDICATING WHAT ORG PROPOSES TO DO
• STANDARD FOR EVALUATING PERFORMANCE
• SUPPORT OF LONG TERM OBJECTIVES• POLICY SHOULD DEAL WITH FUTURE
DEVELOPMENTS
393
REQUIREMENT OF QLTY POLICY
• ESSENTIAL FOR SUCCESSFUL FUNCTION OF QLTY IMPROVEMENT PROCESS
• STATEMENT OF INTENT OF OF TOP MGT
• STATEMENT OF VALUES WHICH DOMINATE ACTIONS
• STANDARD FOR EVALUATING PERFORMANCE
• SUPPORT FOR LONG TERM OBJECTIVES
• ESTABLISH ORG AS A QLTY CONSCIOUS COMPANY
• IDENTIFY CUSTOMER PERCEPTION OF NEEDS
• ENSURE SUBCONTRACTED MFG/SERVICES MEET REQD STDS OF PERFORMANCE AND QLTY
• CONCENTRATE ON PREVENTION RATHER THAN CURE
394
POLICY DEPLOYMENT HOSHIN KANRI
• STRUCTURED PLANNING PROCESS THAT USES FACT BASED AND PARTICIPATIVE METHODS TO DELIVER ACHIEVEMENT OF OBJECTIVES THRU CONTINUOUS IMPROVEMENT
• APPROACH TO CONTINUOUS IMPROVEMENT THRU TQM AND APPLICATION OF PDCA FOR STRATEGIC MGT
• POLICY REFERS TO COMPANY VISION LONG RANGE PLANS AND TARGETS• DEPLOYMENT REFERS TO THE WAY TOP MGT CONVEYS VISION AND PLANS TO
MGRS AND ENCOURAGE THEIR PARTICIPATION IN DEPLOYING VISION RELATED GOALS AND PLANS
• ALL EMPLOYEES AND PROCESSES WORK IN SAME DIRECTION TO ACHIEVE ORG OBJECTIVES
• MEANS OF ENGAGING EMPLOYEES IN THE BUSINESS PLANNING PROCESS FOCUSING ON CRITICAL OBJECTIVES TO ACHIEVE BUSINESS OBJECTIVES AND CONVERTING STRATEGIC INTENT TO OPERATING PLAN
• 3 COMMON PHASES -DEFINITION OF VISION,MISSION,GOALS AND OBJECTIVES OF COMPANY -DEPLOYMENT OF OBJECTIVES THROUGHOUT ORGANISATION -MGT OF ACHIEVEMENT OF OJBECTIVES
• POLICY DEPLOYMENT IS PDCA APPLIED TO PLANNING AND EXECUTION OF FEW CRITICAL STRATEGIC OBJECTIVES
• POLICY DEPLOYMENT HAS SIX KEY STEPS
395
STEPS IN POLICY DEPLOYMENT
• 1 DEVELOP A LONG TERM VISION • 2 DETERMINE ANNUAL POLICIES TO
SUPPORT VISION• 3 DEPLOY POLICY IN COMPANY THRU
PARTICIPATION IN PLANNING• 4 IMPLEMENT THE POLICY• 5 AUDIT THE PROCESS AND PLANS
MONTHLY• 6 AUDIT THE POLICY ANNUALLY BY TOP
MGT
396
PDCA CYCLE IN POLICY DEPLOYMENT
• PDCA CYCLE USED EXTENSIVELY
• PLAN POLICY DEVELOPMENT
• DO DEPLOY POLICY
• CHECK AUDITING DIAGNOSIS REPORTING
• ACT POSSIBLE CHANGE OF PLAN BASED ON THE DIAGNOSIS
397
MAIN FEATURES EMERGING FROM DEFINITION OF POLICY
DEPLOYMENT• CLEAR ORG OBJECTIVES UNDERSTOOD
BY ALL EMPLOYEES• INVOLVEMENT OF EMPLOYEES IN
DEVELOPMENT OF ACTION PLANS• ALL EMPLOYEES AND PROCESSES
WORKING IN SAME DIRECTION TO ACHIEVE ORG OBJECTIVES
• REGULAR REVIEW MECHANISM USING PDCA CYCLE PROMOTING ORG OBJECTIVES
398
KEY DRIVERS IN POLICY DEPLOYMENT
• CLEAR ORGANISATION GOALS UNDERSTOOD BY ALL EMPLOYEES
• INVOLVEMENT OF EMPLOYEE IN DEVELOPMENT OF ACTION PLANS
• ALL EMPLOYEES WORK IN SAME DIRECTION TO ACHIEVE ORG OBJECTIVES AND USE PDCA FOR CONTINUOUS IMPROVEMENT
399
PDCA CYCLE IN POLICY DEPLOYMENT
• PLAN-POLICY DEVELOPMENT
• DO-DEPLOY POLICY
• CHECK-AUDITING,DIAGNOSIS AND REPORTING
• ACT-POSSIBLE CHANGE OF PLAN BASED ON DIAGNOSIS
400
STEPS IN POLICY DEPLOYMENT
• DEVELOP LONG TERM VISION FOR COMPANY
• DETERMINE ANNUAL POLICIES TO SUPPORT VISION
• DEPLOY POLICY ORGWIDE THRU PARTICIPATION IN PLANNING
• IMPLEMENT POLICY• AUDIT PROCESS AND PLANS MONTHLY• AUDIT PROCESS ANNUALLY BY TOP MGT
401
CUSTOMER STRATEGY AND PLANNING
• CUSTOMER DESIGNED AS A PART OF POLICY AND STRATEGY DECISIONS
• DESIGNERS AND CUSTOMERS COMMUNICATE BIDIRECTIONALLY
• CUSTOMERS INCLUDED INTO DESIGN PROCESS• CUSTOMERS HELPED IN UNDERSTANDING THEIR NEEDS
AND WANTS• SYSTEMS IN PLACE TO ENSURE THAT THE CHANGING
REQUIREMENTS OF CUSTOMERS ARE ADDRESSED AND STRATEGIES AND POLICIES ARE REVISED ACCORDINGLY
• INNOVATIVE PERFORMANCE MEASURES INCORPORATED INTO POLICY AND STRATEGY REVIEWS
• DESIGN PROCESS RESPONDS QUICKLY TO CUSTOMERS
402
ROLE OF DIFFERENT TOOLS OF TQM
• SETTING UP DIFFERENT ROLES AS PER TQM PRINCIPLES • ESTABLISHING PROCESS CAPABILITY USING SPC• DETERMINING COST OF QUALITY AND POKA YOKE• AGILITY• CONTINUOUS IMPROVEMENT OF PROCESS• DETERMINING COST OF IMPROVEMENT• REENGINEERING OF BUSINESS PROCESS TO MINIMISE
COSTS AND MAXIMISE EFFICIENCY• BENCHMARKING FOR WHAT MUST BE ACHIEVED AND
HOW• INTEGRATION OF BENCHMARKING TO RELATED BUSINESS
AREAS AND PROCESSES• REFINEMENT OF PROCESS BASED ON IMPROVEMENT
EFFORTS
403
TQM ASSESSMENT MODELS
404
TQM ASSESSMENT MODELS
• FOR CONTINUOUS IMPROVEMENT TO BE SUSTAINED ACTIVITIES NEED TO BE MONITORED CONTINUALLY
• TQM ASSESSMENT PROVIDES FRAMEWORKS FOR GENERATED TYPE OF FEEDBACK ABOUT CONTINUOUS IMPROVEMENT
• CRITERIA COVER VARIOUS ACTIVITIES PRACTICES PROCESSES AND PROVIDES MECHANISM FOR QUANTIFYING ORG CURRENT STATE OF TQM DEVELOPMENT BY MEANS OF A POINTS SCORE
• TQM ASSESSMENT IS A COMPREHENSIVE SYSTEMATIC AND REGULAR REVIEW OF ACTIVITIES AND RESULTS
405
TQM ASSESSMENT MODELS
• PROCESS ENABLES ORG TO ASCERTAIN STRENGTHS AND DISCOVER AREAS IN WHICH IMPROVEMENT IS CALLED FOR
• RESULTS ARE MONITORED FOR PROGRESS• THREE POPULAR INTERNATIONAL TQM
ASSESSMENT MODELS: -MALCOLM BALDRIGE NATIONAL QUALITY AWARD(MBNQA) -EUROPEAN FOUNDATION FOR QLTY MGT(EFQM) -DEMING AWARD
• THE FIRST TWO ARE POPULAR IN INDIA AND KNOWN AS IMC- RAMAKRISHNA BAJAJ(MBNQA) AND CII-EXIM RAJIV GANDHI AWARD(EFQM)
406
TQM ASSESSMENT MODELS
• MODELS OFFER GUIDELINES IN ASSESSING STATE OF READINESS OF PROCESSES TOWARDS ACHIEVEMENT OF BUSINESS EXCELLENCE
• BENEFITS OF TQM ASSESSMENT INCLUDE -CONTINUOUS IMPROVEMENT -VISIBILITY IN DIRECTIONS -AWARENESS OF QLTY RELATED ISSUES -IMPROVEMENT OF BUSINESS RESULTS -INCREASED LEVEL OF MEETING CUSTOMER EXPECTATIONS
• TWO TYPES OF ASSESSMENTS -SELF -COLLABORATIVE
407
MALCOLM BALDRIDGE MODEL
408
MALCOLM BALDRIGE FRAMEWORK
• FOUR INDUSTRY CATEGORIES -MFG AND SERVICES -EDUCATION -HEALTHCARE -NON PROFIT
409
OBJECTIVES OF MBNQA
• PLAN TO KEEP IMPROVING OPERATIONS CONTINUOUSLY• SYSTEM FOR MEASURING IMPROVEMENTS ACCURATELY• STRATEGIC PLAN BASED ON BENCHMARKS THAT
COMPARE COMPANY PERFORMANCE WITH WORLDS BEST • CLOSE PARTNERSHIP WITH SUPPLIERS AND CUSTOMERS
THAT FEEDS IMPROVEMENT BACK INTO OPERATIONS• DEEP UNDERSTANDING OF CUSTOMER SO THAT THEIR
REQMNT CAN BE TRANSLATED INTO PRODUCTS/SERVICES• LONG LASTING RELATIONSHIP WITH CUSTOMER GOING
BEYOND PRODUCT DELY • FOCUS ON PREVENTING MISTAKES RATHER THAN
CORRECTION
410
INSERT MBCRITERIA PRESENTATION
411
STEPS INVOLVED IN PROCESSING OF MBNQA
• SELF ASSESSMENT AND BPI• APPLICATION• FORMING OF TEAMS• EXAMINER INDIVISUAL SELF ASSESSMENT BASED ON APPLICATION-
STRENGTHS,AREAS OF IMPROVEMENT AND SITE VISIT ISSUES• CONSENSUS SCORING-IDENTIFICATION OF STRENGTHS,AREAS OF
IMPROVEMENT AND SITE VISIT ISSUE• SENDING OF SITE VISIT ISSUES BY TEAM LDR TO CUSTOMER• SITE VISIT• REVIEW OF SCORES AND REPORT• FEEDBACK REPORT SENT TO CUSTOMER• CUSTOMER SCORES SENT TO JUDGES PANEL• SHORTLISTING BY JUDGES• ROLE MODEL DETERMINATION• JUDGES FINAL REVIEW• ANNOUNCEMENT OF AWARDS• AWARDS CEREMONY
412
APPLICATION CONTENTS FOR MBNQA
• EACH APPLICANT MUST SUBMIT AN APPLICATION REPORT IN MAX OF 60 PAGES CONSISTING OF -A BRIEF ORGANIZATIONAL PROFILE WHICH IS MAX OF 5 PAGES. -RESPONSES TO EACH AREAS TO ADDRESS IN THE CRITERIA WITH REFERENCE TO THE PROPER SUB POINT NUMBER WHICH IS MAX OF 60 PAGES
413
EFQM Criteria
414
ADDENDUM