TQM, VTU, Unit 5


Published on

Published in: Education, Business, Technology
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

TQM, VTU, Unit 5

  1. 1. Quality based organizations should strive to achieve perfection by continuously improving the business & Production process.There are various techniques available to improve continuously and they are listed as below: PDSA Cycle Problem-Solving Method Juran Trilogy Ishikawa cause and effect diagram Prof. Raghavendran V 2
  2. 2.  Taguchi Quality Loss Function Kaizen JIT Re-engineering Six Sigma Benchmarking and process Prof. Raghavendran V 3
  3. 3. Prof. Raghavendran V 4
  4. 4. The basic Plan-Do-Study-Act was first developed by Shewhart and modified by Deming. It is an effective improvement technique. Act Plan Study Do The PDSA Cycle Prof. Raghavendran V 5
  5. 5. Prof. Raghavendran V 6
  6. 6. It is the extension of PDSA Cycle with scientific adaption/ approach which yield great results, but in this method there are 7 phases and all are integrated upon the previous phase. These phase are the framework of the objectives. Prof. Raghavendran V 7
  7. 7. 1) Identify the opportunity 2) Analyze thePlan for the future process Act Plan Study Do 3) Develop the6) Standardization optimal Opportunity the solution 5) Study the Results 4) Implement Prof. Raghavendran V 8
  8. 8. Prof. Raghavendran V 9
  9. 9. KAIZEN means Japanese word, Which are KAI and ZEN.KAI means change and ZEN means better. So, therefore KAIZEN means change for better. It implies continuous improvement: Consistently Every time Every Step Every Place, leading to self development. Prof. Raghavendran V 10
  10. 10. To say, it is Japanese way of life. International attention is being focused on the outstanding performance of Japanese economy & success of management practices being adopted in Japanese industries. The fact remains we need change for better and hence kaizen.It is continuous ongoing improvement in working life, personal life, home life and social life. It is constant and gradual Prof. Raghavendran V 11
  11. 11. Kaizen is process oriented while, innovation is result oriented. These two systems are very essential for achieving and sustaining superior company performance.Fundamentals of Kaizen improvement: Start with small improvement. Start with your problem, not others Start with easy area. Improvement is a part of daily routine Collect group wisdom Never accept status quo Never reject any idea before trying Highlight the problem, don‟t hide them Prof. Raghavendran V 12
  12. 12. There are four general avenues for continuous improvement: Improved and more consistent product and service quality. Faster cycle time (ranging from product development, order time, pay rolls) Greater Flexibility Lower costs and less waste. Prof. Raghavendran V 13
  13. 13. In Kaizen technique, the members of workforce should be viewed as associates.The following factors are to be considered for employee involvement:1. Discretion– to avoid behavior that could damage company culture.2. Commitment– The basic power behind the success of an organization3. Freedom– To allow the experience of failure.4. Fairness– to control and eliminate destructive conflict and to develop team spirit in the organization. Prof. Raghavendran V 14
  14. 14. Kaizen involves in removal of 3M‟s and application of 5S‟s for the improvement.3M‟s helps in reducing waste and losses.The Japanese‟s MU‟s are: MUDA ( Means Waste) MURI (Means Strain) MURA (Means Discrepancy) andthese should be gradually removed at different levels: Prof. Raghavendran V 15
  15. 15. • Manpower • Jigs & Tools • Place• Techniques • Materials • Way of• Method • Production Thinking• Time Volume • Inventory•5S‟s involves in improvement and they are Seri, FacilitiesSeiton, Seiso, Seiketsu and Shitsuke.Seri (Means straighten up). It involves differentiationbetween the necessary and unnecessary anddiscarding the unnecessary. It is applicable to:Work in progress, un-used machinery, unnecessarywaste, unnecessary tools, uncalled inspection, unusedSkill, Defective Products, Systems Flaws and Paper &Documents Prof. Raghavendran V 16
  16. 16. Seiton (Means put things in order). It is applicable to place of work– assign place for everything, put everything in order, keep proper documentation and entry and avoid searching things.Seiso (Means cleans up). It is applicable to place of work– keep the workplace clean, Green and cosy look of workplace.Seiketsu (Means Personal Cleanliness). Make it a habit to be clean and tidy; starting with your own personal appearance.Shitsuke (Means discipline)– Follow procedure in the system. Prof. Raghavendran V 17
  17. 17. Prof. Raghavendran V 18
  18. 18. JIT is Japanese production management concept which is been applied from1970‟s.This technique emerged as a means of obtaining the highest levels of usage out of the limited resources available.Faced with constraints, the Japanese worked towards attainment of the optimal cost- quality relationship in their manufacturing processes, thus involving reducing waste, using materials and resources. Prof. Raghavendran V 19
  19. 19. This was developed on a continuous stream of small improvements known as „KAIZEN‟The Goals of JIT:1. Integrating and optimizing2. Improving continuously3. Understanding the customers Prof. Raghavendran V 20
  20. 20. Prof. Raghavendran V 21
  21. 21. Re-Engineering is also known to be as „BPR‟.Re-Engineering was developed by Mr. Micheal Hammer from USA, where in it is defined as “ The fundamental rethinking and radical design of business process to achieve dramatic improvements in critical measures of the performance such as cost, quality, service and speed” Prof. Raghavendran V 22
  22. 22. The Three R‟s involve in Re-Engineering (3Phases) and they are:Re-Think Re-Design Re-ToolRethink:It involves organization‟s current objective and underlying the regulatory norms for determine how well they suit to the commitment of customer satisfaction Prof. Raghavendran V 23
  23. 23. Redesign:It analyses the way the organization products or services- how the process is structured. The determination is carried out which part of the process or job is to be redesigned, so that outcome will be better than the previous performance.Retool:it evaluates the current use of technologies, and to identify the advanced opportunities for change in the technology to achieve the goal. Prof. Raghavendran V 24
  24. 24. Prof. Raghavendran V 25
  25. 25. One of the best approaches developed by Dr. Joseph Juran. It has 3 components:1. Quality Planning2. Quality Control &3. Quality Improvement Prof. Raghavendran V 26
  26. 26. Quality Planning: It begins with external customers,1. Once the customers are identified2. Their needs are discovered.3. Develop product or service features that respond to customer needs.4. Stabilize and optimize the product features to meet the organizational & Customer needs Prof. Raghavendran V 27
  27. 27. Quality Control: it is used by operating forces to help and meet the product, process and service requirements. It uses the feedback loop and consist of the following steps:Determine items to be controlled and their unit of measure.Set goals for the controls & determine what sensors need to be put in place to measure the product.Measure the actual performance,Compare actual performance to goals.Act on the difference. Prof. Raghavendran V 28
  28. 28. Quality Improvement:It aims to attain levels of performance that are significantly higher than current levels.Optimize the process. Prof. Raghavendran V 29
  29. 29. Prof. Raghavendran V 30
  30. 30. This is known as „MISTAKE-PROOFING‟From Japanese:Yokeru (avoid) & Poka (inadvertent errors)Characteristics of Poka-Yoke Eliminates the cause of an error at the source; Detects an error as it is being made; Detects an error soon after it has been made but before it reaches the next operation. Prof. Raghavendran V 31
  31. 31. There are two approaches to dealing with errors:1. ERRORS ARE INEVITABLE! People always make mistakes. While we accept the mistakes as natural, we blame the people who make them. With this attitude, we are likely to overlook defects as they occur in production. They may be detected at final inspection, or worse still, by the customer. Prof. Raghavendran V 32
  32. 32. 2. ERRORS CAN BE ELIMINATED! Any kind of mistake people make can be reduced or even eliminated. People make fewer mistakes if they are supported by proper training and by a production system based on the principle that errors can be avoided.One method of detecting errors is inspection. Prof. Raghavendran V 33
  33. 33. There are two major types of inspection.1. SAMPLING INSPECTION.In some factories, the attitude is: “It may take all day to inspect all product”. “There may be a few defects, but sampling is the most practical way to check”. Prof. Raghavendran V 34
  34. 34. 2. 100% INSPECTION.In the best factories, the attitude is: “We won‟t tolerate a single defect!” “We will organize production so that 100% of the product can be easily inspected”. “That makes the most sense”. Prof. Raghavendran V 35
  35. 35.  Think about 100% inspection. Even one defective product is enough to destroy a customer‟s confidence in a company. To stay competitive a company must supply good product in thousands. The best way to achieve this is to organize production to inspect 100% of the products. Prof. Raghavendran V 36
  36. 36. 1. DON’T MAKE IT! Don’t make product you don’t need. The more you make, the greater the opportunity for defects. Follow ‘just-in-time’ principles by only making what is needed, when it is needed in the amount needed. 37
  37. 37. 2. Build Safeguards The user is an expert in finding defects. Therefore build safeguards into the production process. Quality can be built into products by implementation of Poka-Yoke. Prof. Raghavendran V 38
  38. 38.  Human errors are usually inadvertent. Poka-yoke devices help us avoid defects, even when inadvertent errors are made. Poka-yoke helps build quality into processes. 39
  40. 40. 41
  41. 41. It is defined as systematic search for the best practices, innovative ideas, and highly effective operating procedures. It consider experience of others and uses it.Benchmarking is the process of improving performance by continuously identifying, understanding, and adapting outstanding practices found inside and outside the organization. Prof. Raghavendran V 42
  42. 42.  Benchmarking has three main features:Continuous method of measuring andcomparing a firm’s business processesagainst those of another firm. Prof. Raghavendran V 43
  43. 43. TimeProf. Raghavendran V 44
  44. 44.  Benchmarking gives us the chance of gaining: Better Awareness of Ourselves (Us) › What we are doing › How we are doing it › How well we are doing it Better Awareness of the Best (Them) › What they are doing › How they are doing it › How well theyProf. Raghavendran V it are doing 45
  45. 45. Performance . Improvement Meeting Quality Creative . Standards Thinking Benchmarking Innovation Keep Pace with In Science and .Management Technology Methods Changes Cope with Meeting Competitive Customers . Markets Expectations Prof. Raghavendran V 46
  46. 46.  On the basis of “What” is being compared with other organizations we have four main types. These four major types of benchmarking are evolutionary beginning with product, through to functional (performance), process and strategic benchmarking. Strategic Process Performance Product Prof. Raghavendran V 47
  47. 47.  On the basis of “Who” is being compared with our organization, we have these categories: Best of the Best Best in Class International Generic Internal vs. External Prof. Raghavendran V 48
  48. 48. WHAT BASIS BENCH MARKING Prof. Raghavendran V 49
  49. 49. 1-Product Benchmarking Many firms perform product benchmarking when designing new products or upgrades to current products. Providing an external perspective on opportunities to improve products, technology, manufacturing and support processes, the product development process, and engineering practices are core activities of product benchmarking. Prof. Raghavendran V 50
  50. 50. 2-Performance Benchmarking Performance benchmarking focuses on assessing competitive positions through comparing the products and services of other competitors. When dealing with performance benchmarking, organizations want to look at where their product or services are in relation to competitors on the basis of things such as reliability, quality, speed, and other product or service characteristics. Prof. Raghavendran V 51
  51. 51. 3-Process Benchmarking Process benchmarking focuses on the day- to-day operations of the organization. It is the task of improving the way processes performed every day. Some examples of work processes that could utilize process benchmarking are the customer complaint process, the billing process, the order fulfillment process, and the recruitment process (Bogan, 1994). Prof. Raghavendran V 52
  52. 52. 4-Strategic Benchmarking Strategic benchmarking deals with top management. It deals with long term results. Strategic benchmarking focuses on how companies compete. This form of benchmarking looks at what strategies the organizations are using to make them successful. This is the type of benchmarking technique that most Japanese firms use (Bogan, 1994). This is due to the fact that the Japanese focus on long term results. Prof. Raghavendran V 53
  53. 53. WHY BASIS BENCH MARKING Prof. Raghavendran V 54
  54. 54.  There are several other classifications for benchmarking, based on partner type, adoption level and target process, etc. Following are the most used types: › Internal › External  Competitive  Functional  Generic Prof. Raghavendran V 55
  55. 55. 1-Competitive Benchmarking Competitive benchmarking is the most difficult type of benchmarking to practice. For obvious reasons, organizations are not interested in helping a competitor by sharing information. This form of benchmarking is measuring the performance, products, and services of an organization against its direct or indirect competitors in its own industry. Competitive benchmarking starts as basic reverse engineering and then expands into benchmarking. Prof. Raghavendran V 56
  56. 56. 1-Competitive Benchmarking Competitive benchmarking is an analysis of strategies, processes and practices with competitors and companies in the same industry. Therefore, it is industry or business type specific. It is especially beneficial to organizations managing a specialized type of operation. Prof. Raghavendran V 57
  57. 57. 2-Functional Benchmarking Functional benchmarking - a company will focus its benchmarking on a single function to improve the operation of that particular function. Complex functions such as Human Resources, Finance and Accounting and Information and Communication Technology are unlikely to be directly comparable in cost and efficiency terms and may need to be disaggregated into processes to make valid comparison. Prof. Raghavendran V 58
  58. 58. 2-Functional Benchmarking Comparative research to seek world-class excellence by comparing business performance not only against competitors but also against the best businesses operating in a different industry. Advantage: Discovering innovative practices Comparing functions Disadvantage: Not suitable for every organization or every function Prof. Raghavendran V 59
  59. 59. 3-Collaborative Benchmarking Benchmarking, originally described as a formal process by Rank Xerox, is usually carried out by individual companies. Sometimes it may be carried out collaboratively by groups of companies (e.g. subsidiaries of a multinational in different countries). One example is that of the Dutch municipally-owned water supply companies, which have carried out a voluntary collaborative benchmarking process since 1997 through their industry association. Prof. Raghavendran V 60
  60. 60. 3-Collaborative Benchmarking With collaborative benchmarking, information is shared between groups of firms. It is a brainstorming session among organizations. It is important to realize that not all collaborative efforts are considered benchmarking. It is sometimes called “data sharing." Prof. Raghavendran V 61
  61. 61. 4-Financial Benchmarking Performing a financial analysis and comparing the results in an effort to assess your overall competitiveness and productivity. Prof. Raghavendran V 62
  62. 62.  Any acceptable benchmarking should have these six features: › Comprehensive › Credible › Comparative › Performance-oriented › Confidential › Continuous assessment Prof. Raghavendran V 63
  63. 63.  Benchmarking is NOT: › Tour visits to other competitors or organizations. › Performance measurement, it‟s part of benchmarking process. i.e. competitive analysis. › A cost-cutting exercise. › Imitating others‟ practices or processes, it‟s “How to” not “What is”. › A public relations exercise. Prof. Raghavendran V 64
  64. 64.  Failure to consider organizational cultures or circumstances leads to a wrong direction. Insufficient preparation usually results in MBWAA (management by wandering around aimlessly!). › What are you trying to learn about? › Why do you want to learn it? › What will you do with it to make your processes better once you have it? Prof. Raghavendran V 65
  65. 65. Prof. Raghavendran V 66
  66. 66. What is Sigma ? A term used in statistics to represent standard deviation, an indicator of theSigma degree of variation in a set of a process
  67. 67. What is Six Sigma? A statistical concept that measures a process in terms of defects – at the six sigma level, there 3.4 defects per Six million opportunitiesSigma A philosophy and a goal : as perfect as practically possible A methodology and a symbol of quality
  68. 68. Sigma Level Sigma Level Defects per Million (Process Opportunities Capability) 2 308,537 3 66,807 4 6,210 5 233 6 3.4
  69. 69. Sigma Level Six Sigma = 99.9997%
  70. 70. Why Six Sigma? Money Quality Customer Competitive Satisfaction Advantage Growth Employee Pride
  71. 71. Why Six Sigma?Six Sigma is about practices that help you eliminate defects and always deliverproducts and services that meet customer specifications
  72. 72. Cost of Poor QualityWhat is cost of scrap?What is cost of rework?What is cost of excessive cycle times anddelays?What is cost of business lost becausecustomers are dissatisfied with yourproducts or services?What is cost of opportunities lost becauseyou didn’t have time or the resources to takeadvantage of them?
  73. 73. Critical-to-Quality (CTQ)Elements of a process that significantly affectthe output of that process. Identifying theseelements is figuring out how to makeimprovements that can dramatically reducecosts and enhance quality.
  74. 74. Six Sigma PhasesDefine Measure Analyze ImproveDMAIC Control
  75. 75. Six Sigma Phases Define the project goals and customerDefine (internal and external) deliverables Measure the process to determine currentMeasure performance Analyze and determine the root cause(s)Analyze of the defects
  76. 76. Six Sigma Phases Improve the process by eliminating defectsImprove Control future process performanceControl
  77. 77. Six Sigma Phases • Define Customers and Requirements (CTQs) • Develop Problem Statement, Goals and BenefitsDefine • Identify Champion, Process Owner and Team • Define Resources • Evaluate Key Organizational Support • Develop Project Plan and Milestones • Develop High Level Process Map
  78. 78. Six Sigma Phases • Define Defect, Opportunity, Unit and Metrics • Detailed Process Map of Appropriate AreasMeasure • Develop Data Collection Plan • Validate the Measurement System • Collect the Data • Begin Developing Y=f(x) Relationship • Determine Process Capability and Sigma Baseline
  79. 79. Six Sigma Phases • Define Performance Objectives • Identify Value/Non-Value Added Process StepsAnalyze • Identify Sources of Variation • Determine Root Cause(s) • Determine Vital Few xs, Y=f(x) Relationship
  80. 80. Six Sigma Phases • Perform Design of Experiments • Develop Potential SolutionsImprove • Define Operating Tolerances of Potential System • Assess Failure Modes of Potential Solutions • Validate Potential Improvement by Pilot Studies • Correct/Re-Evaluate Potential Solution
  81. 81. Six Sigma Phases • Define and Validate Monitoring and Control SystemControl • Develop Standards and Procedures • Implement Statistical Process Control • Determine Process Capability • Develop Transfer Plan, Handoff to Process Owner • Verify Benefits, Cost Savings/Avoidance, Profit Growth • Close Project, Finalize Documentation • Communicate to Business, Celebrate
  82. 82. Key Roles for Six Sigma Executive Includes CEO and other key top management teamLeadership members. They are responsible for setting up a vision for Six Sigma implementation.Champions Are responsible for the Six Sigma implementation across the organization in an integrated manner. Champions also act as mentor to Black Belts.
  83. 83. Key Roles for Six SigmaMaster Black Identified by champions, act as in-house expert coach for Belts the organization on Six Sigma. They devote 100% of their time to Six Sigma.Black Belts Operate under Master Black Belts to apply Six Sigma methodology to specific projects. They primarily focus on Six Sigma project execution.
  84. 84. Key Roles for Six SigmaGreen Belts Are the employees who take up Six Sigma implementation along with their other job responsibilities. They operate under the guidance of Black Belts and support them in achieving the overall results.
  85. 85. Six Sigma Do’s• Do communicate the commitment company- wide• Do demonstrate the commitment of company leaders• Do empower your key human resources• Do provide on-site mentoring for black belts
  86. 86. Six Sigma Do’s• Do be patient at the inception of you six Sigma initiative• Do claim and advertise early “wins”• Do benchmark• Do establish project baseline and goals
  87. 87. Prof. Raghavendran V1) Explain Cause and defect diagram with example, (Ishikawa Diagram)2) Explain in detail of Quality Circles.3) Brief out about Juran Trilogy and Six Sigma.4) In your opinion, which tools & technique is best suitable for evaluation the performance at AIET, Hostel, Home, Sports and canteen. Substantiate with your explanation.5) Write short notes on Six sigma, Poka-yoke, Benchmarking, Juran Trilogy6) In your gesture, what technique should be implemented to keep your class silent and why this technique! 88