TQM, VTU, Unit 5

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

 Taguchi Quality Loss Function
 Kaizen
 JIT
 Re-engineering
 Six Sigma
 Benchmarking and process


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


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.


1) Identify the
opportunity

2) Analyze the
Plan for the future
process
Act Plan

Study Do 3) Develop the
6) Standardization
optimal Opportunity
the solution

5) Study the Results 4) Implement

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.


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

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


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.


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 organization
3. Freedom– To allow the experience of failure.
4. Fairness– to control and eliminate destructive
conflict and to develop team spirit in the
organization.


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) and
these should be gradually removed at different
levels:

• Manpower • Jigs & Tools • Place
• Techniques • Materials • Way of
• Method • Production Thinking
• Time Volume
• Inventory
•5S‟s involves in improvement and they are Seri,
Facilities
Seiton, Seiso, Seiketsu and Shitsuke.
Seri (Means straighten up). It involves differentiation
between the necessary and unnecessary and
discarding the unnecessary. It is applicable to:
Work in progress, un-used machinery, unnecessary
waste, unnecessary tools, uncalled inspection, unused
Skill, Defective Products, Systems Flaws and Paper &
Documents Prof. Raghavendran V 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.

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.


This was developed on a continuous stream of
small improvements known as „KAIZEN‟
The Goals of JIT:
1. Integrating and optimizing
2. Improving continuously
3. Understanding the customers


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”

The Three R‟s involve in Re-Engineering
(3Phases) and they are:

Re-Think
Re-Design
Re-Tool
Rethink:
It involves organization‟s current objective and
underlying the regulatory norms for
determine how well they suit to the
commitment of customer satisfaction

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

One of the best approaches developed by Dr.
Joseph Juran. It has 3 components:

1. Quality Planning
2. Quality Control &
3. Quality Improvement


Quality Planning: It begins with external
customers,
1. Once the customers are identified
2. 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


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.

Quality Improvement:
It aims to attain levels of performance that are
significantly higher than current levels.
Optimize the process.


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.

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.

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.

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”.


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”.


 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.


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

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.


 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

POKA-YOKE

MEANS

ZERO DEFECTS

40

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.

 Benchmarking has three main features:
Continuous method of measuring and
comparing a firm’s business processes
against those of another firm.


Time

 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

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


 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

 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


WHAT BASIS BENCH MARKING


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.


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.


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).


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.


WHY BASIS BENCH MARKING


 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


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.

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.


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.

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


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.

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."


4-Financial Benchmarking

 Performing a financial analysis and
comparing the results in an effort to assess
your overall competitiveness and
productivity.


 Any acceptable benchmarking should have
these six features:
› Comprehensive
› Credible
› Comparative
› Performance-oriented
› Confidential
› Continuous assessment


 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.


 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?

What is Sigma ?

A term used in statistics to represent
standard deviation, an indicator of the
Sigma
degree of variation in a set of a process

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 opportunities
Sigma A philosophy and a goal : as perfect as
practically possible

A methodology and a symbol of quality

Sigma Level

Sigma Level Defects per Million
(Process Opportunities
Capability)
2 308,537
3 66,807
4 6,210
5 233
6 3.4

Sigma Level

Six Sigma =
99.9997%

Why Six Sigma?

Money Quality

Customer Competitive
Satisfaction Advantage

Growth Employee Pride

Why Six Sigma?

Six Sigma is about practices that help you
eliminate defects and always deliver
products and services that meet customer
specifications

Cost of Poor Quality
What is cost of scrap?
What is cost of rework?
What is cost of excessive cycle times and
delays?
What is cost of business lost because
customers are dissatisfied with your
products or services?
What is cost of opportunities lost because
you didn’t have time or the resources to take
advantage of them?

Critical-to-Quality (CTQ)
Elements of a process that significantly affect
the output of that process. Identifying these
elements is figuring out how to make
improvements that can dramatically reduce
costs and enhance quality.

Six Sigma Phases

Define Measure Analyze

Improve

DMAIC Control

Six Sigma Phases
Define the project goals and customer
Define (internal and external) deliverables

Measure the process to determine current
Measure
performance

Analyze and determine the root cause(s)
Analyze
of the defects

Six Sigma Phases
Improve the process by eliminating defects
Improve

Control future process performance
Control

Six Sigma Phases
• Define Customers and Requirements (CTQs)
• Develop Problem Statement, Goals and Benefits
Define
• Identify Champion, Process Owner and Team
• Define Resources
• Evaluate Key Organizational Support
• Develop Project Plan and Milestones
• Develop High Level Process Map

Six Sigma Phases
• Define Defect, Opportunity, Unit and Metrics
• Detailed Process Map of Appropriate Areas
Measure
• Develop Data Collection Plan
• Validate the Measurement System
• Collect the Data
• Begin Developing Y=f(x) Relationship
• Determine Process Capability and Sigma Baseline

Six Sigma Phases
• Define Performance Objectives
• Identify Value/Non-Value Added Process Steps
Analyze
• Identify Sources of Variation
• Determine Root Cause(s)
• Determine Vital Few x's, Y=f(x) Relationship

Six Sigma Phases
• Perform Design of Experiments
• Develop Potential Solutions
Improve
• Define Operating Tolerances of Potential System
• Assess Failure Modes of Potential Solutions
• Validate Potential Improvement by Pilot Studies
• Correct/Re-Evaluate Potential Solution

Six Sigma Phases
• Define and Validate Monitoring and Control
System
Control
• 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

Key Roles for Six Sigma
Executive Includes CEO and other key top management team
Leadership 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.

Master 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.

Green 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.

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

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

Prof. Raghavendran V

1) 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 Trilogy
6) In your gesture, what technique should be
implemented to keep your class silent and
why this technique!
88

TQM, VTU, Unit 5

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TQM, VTU, Unit 5