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  1. 1. quality guru Unit -2
  2. 3. W. Edwards Deming 1900 - 1993
  3. 4. <ul><ul><li>Father of quality control </li></ul></ul><ul><ul><li>Stressed management’s responsibility for quality </li></ul></ul><ul><ul><li>Developed “14 points” to guide companies in quality improvement </li></ul></ul><ul><ul><li>Japanese established “Deming Prize” in his name </li></ul></ul><ul><ul><li>15% of quality problems are actually due to worker error </li></ul></ul><ul><ul><li>85% of quality problems are caused by systems and errors </li></ul></ul>
  4. 5. <ul><li>Dr. W. Edwards Deming is known as the father of the Japanese post-war industrial revival and was regarded by many as the leading quality guru in the United States. </li></ul><ul><li>Trained as a statistician, his expertise was used during World War II to assist the United States in its effort to improve the quality of war materials. </li></ul>
  5. 6. <ul><li>HE WAS INVITED TO JAPAN AT THE END OF WORLD WAR II BY JAPANESE INDUSTRIAL LEADERS AND ENGINEERS. THEY ASKED DR. DEMING HOW LONG IT WOULD TAKE TO SHIFT THE PERCEPTION OF THE WORLD FROM THE EXISTING PARADIGM THAT JAPAN PRODUCED CHEAP, SHODDY IMITATIONS TO ONE OF PRODUCING INNOVATIVE QUALITY PRODUCTS. </li></ul><ul><li>Dr. Deming told the group that if they would follow his directions, they could achieve the desired outcome in five years. Few of the leaders believed him. But they were ashamed to say so and would be embarrassed if they failed to follow his suggestions. As Dr. Deming told it, &quot;They surprised me and did it in four years.&quot; </li></ul>
  6. 7. <ul><li>He was invited back to Japan time after time where he became a revered counselor. For his efforts he was awarded the Second Order of the Sacred Treasure by the Emperor . </li></ul><ul><li>Japanese scientists and engineers named the famed Deming Prize after him. It is bestowed on organizations that apply and achieve stringent quality-performance criteria. </li></ul>
  7. 8. Deming prize <ul><li>Established in December 1950 in honor of W. Edwards Deming, was originally designed to reward Japanese companies for major advances in quality improvement. Over the years it has grown, and is now also available to non-Japanese companies, albeit usually operating in Japan, and also to individuals recognized as having made major contributions to the advancement of quality. The awards ceremony is broadcast every year in Japan on national television. </li></ul><ul><li>Tata Steel 2008 & Mahindra & Mahindra tractors(2003) </li></ul>
  8. 9. DEMING'S 14 PRINCIPLES <ul><li>PRINCIPLE 1 : &quot;Create a constancy of purpose&quot; </li></ul><ul><li>Define the problems of today and the future allocate resources for long-term planning allocate resources for research and education constantly improve design of product and service </li></ul><ul><li>PRINCIPLE 2 : &quot;Adopt the new philosophy &quot; </li></ul><ul><li>Quality costs less not more </li></ul><ul><li>The call for major change Stop looking at your competition and look at your customer instead </li></ul><ul><li>PRINCIPLE 3 : &quot;Cease dependence on inspection&quot; </li></ul><ul><li>Quality does not come from inspection Mass inspection is unreliable, costly, and ineffective Inspectors fail to agree with each other Inspection should be used to collect data for process control </li></ul>
  9. 10. <ul><li>PRINCIPLE 4 : &quot;Do not award business based on price tag alone&quot; </li></ul><ul><li>Price alone has no meaning Change focus from lowest initial cost to lowest total cost Work toward a single source and long term relationship Establish a mutual confidence and aid between purchaser and vendor </li></ul><ul><li>PRINCIPLE 5   : Improve every process Improve constantly and forever every process for planning, production, and service. Search continually for problems in order to improve every activity in the company, to improve quality and productivity, and thus to constantly decrease costs. Institute innovation and constant improvement of product, service , and process. It is management's job to work continually on the system (design, incoming materials, maintenance, improvement of machines, supervision, training, retraining).         </li></ul>
  10. 11. <ul><li>6. Institute training on the job Institute modern methods of training on the job for all, including management, to make better use of every employee. New skills are required to keep up with changes in materials, methods, product and service design, machinery, techniques, and service. </li></ul><ul><li>7 Institute leadership Adopt and institute leadership aimed at helping people do a better job. The responsibility of managers and supervisors must be changed from sheer numbers to quality. Improvement of quality will automatically improve productivity. Management must ensure that immediate action is taken on reports of inherited defects, maintenance requirements, poor tools and all conditions detrimental to quality . </li></ul>
  11. 12. <ul><li>8. Drive out fear Encourage effective two way communication and other means to drive out fear throughout the organization so that everybody may work effectively and more productively for the company </li></ul><ul><li>9. Break down barriers Break down barriers between departments and staff areas. People in different areas, such as Leasing, Maintenance, Administration, must work in teams to tackle problems that may be encountered with products or service . </li></ul>
  12. 13. <ul><li>10. Eliminate exhortations Eliminate the use of slogans, posters, exhortations for the work force, demanding Zero Defects and new levels of productivity, without providing methods. </li></ul><ul><li>11. Eliminate arbitrary numerical targets Eliminate work standards that prescribe quotas for the work force and numerical goals for people in management. Substitute aids and helpful leadership in order to achieve continual improvement of quality and productivity .   </li></ul><ul><li>12. Permit pride of workmanship </li></ul><ul><li>13. Encourage education Institute a vigorous program of education, and encourage self improvement for everyone. What an organization needs is not just good people; it needs people that are improving with education.       </li></ul>
  13. 14. <ul><li>14. Top management commitment and action Clearly define top management's permanent commitment to ever improving quality and productivity, and their obligation to implement all of these principles. Indeed, it is not enough that top management commit themselves for life to quality and productivity. They must know what it is that they are committed to—that is, what they must do. Create a structure in top management that will push every day on the preceding 13 Points, and take action in order to accomplish the transformation. Support is not enough: action is required </li></ul>
  14. 15. Kaoru Ishikawa
  15. 16. <ul><li>His notion of company-wide quality control called for continued customer service . This meant that a customer would continue receiving service even after receiving the product. </li></ul><ul><li>This service would extend across the company in all levels of management. </li></ul><ul><li>quality improvement is a continuous process, and it can always be taken one step further. </li></ul><ul><li>With his cause and effect diagram (also called the &quot;Ishikawa&quot; or &quot;fishbone&quot; diagram) this management leader made significant and specific advancements in quality improvement. </li></ul>
  16. 17. Cause and effect diagram <ul><li>ALSO CALLED FISH BONE DIAGRAM </li></ul>
  17. 18. Quality Problem Machines Measurement Man Method Environment Materials Faulty testing equipment Incorrect specifications Improper methods Poor supervision Lack of concentration Inadequate training Out of order Tooling problems Old / worn Defective from vendor Not to specifications Material- handling problems Deficiencies in product design Ineffective quality management Poor process design Inaccurate temperature control Dust and Dirt
  18. 19. <ul><li>With the use of this new diagram, the user can see all possible causes of a result, and hopefully find the root of process imperfections. </li></ul><ul><li>Both Ishikawa and Deming use this diagram as one the first tools in the quality management process. </li></ul><ul><li>Ishikawa explored the concept of quality circles-- a Japanese philosophy which he drew from obscurity into world wide acceptance. </li></ul><ul><li>He continually urged top level executives to take quality control courses , knowing that without the support of the management, these programs would ultimately fail. </li></ul>
  19. 20. QUALITY CIRCLE <ul><li>The Quality Circle Concept was started in Japan by Prof. Ishikawa who is known as ‘The Father of Quality Circle Movement’. The contribution of the Quality Circles in making Japan an economic superpower has led many countries to adopt this concept. In India Quality Circle Forum was started in 1980 with Headquarters at Hyderabad. </li></ul><ul><li>Quality Circles defined: </li></ul><ul><li>It's a small group comprising of 6 to 12 employees doing similar work meet together voluntarily on a regular basis for identifying improvements in their respective work areas. Their aim to achieve and so also to sustain excellence towards mutual upliftment of employees as well as the organization. </li></ul>
  20. 21. Definition of Quality Circle <ul><li>A small group of between six and twelve people who do the same or similar work, voluntarily meeting together regularly for about an hour per week in paid time , usually under the Leadership of their own supervisor , and trained to identify, analyze, and solve some of the problems in their work , presenting solutions to management , and where possible, implementing the solutions themselves .' </li></ul>
  21. 22. <ul><li>Quality Circle is one of the employee participation methods. </li></ul><ul><li>It creates conditions and environment of work that stimulates commitment towards excellence. </li></ul><ul><li>Quality Circles utilize the potential of people for improvement in quality. </li></ul>WHY Quality Circles
  22. 24. Roles and Responsibilities The Success of the quality circle depends solely on the attitude of the top management and plays an important role to ensure the success of implementation of quality circles in the organization.
  23. 25. Roles and Responsibilities Steering committee called middle management consists of chief executive heads of different divisions or a coordinator plays a positive role in quality circle’s activities for the success of the efforts. The meetings are conveyed at least once in one or two months interval.
  24. 26. Roles and Responsibilities Coordinator , who also acts as a facilitator, is an individual responsible for coordinating and directing the quality circles activities within an organization and carries out such functions as would make the operations of quality circles smooth , effective and self-sustainable .
  25. 27. Roles and Responsibilities <ul><li>Facilitator acts as a catalyst, innovator, promoter and teacher and is nominated by the management. His Roles are as follows: </li></ul><ul><li>Communicating with all levels of management and obtaining their support; </li></ul><ul><li>Facilitating the training of QC leaders and members; </li></ul><ul><li>Maintaining an open and supportive environment ; </li></ul><ul><li>As a mediator in problem solving; </li></ul><ul><li>Evaluating the cost and benefits of the QC program and reporting it to the management </li></ul>
  26. 28. Roles and Responsibilities <ul><li>The leader is chosen by the members amongst themselves and is rotated on a regular basis. His role is mainly as follows: </li></ul><ul><li>Training members on problem solving techniques with the assistance of the facilitator as and when required; </li></ul><ul><li>Fostering the spirit of cooperation amongst the members; </li></ul><ul><li>Assisting the circle members in record keeping and in the preparation of management presentations; </li></ul><ul><li>Conducting meeting in an orderly and effective manner; </li></ul><ul><li>Encouraging other people to become members; </li></ul><ul><li>Enforcing team discipline and channelizing the efforts effectively </li></ul>
  27. 29. Roles and Responsibilities <ul><li>Members of the quality circles are a small group of people from the same work area or doing similar type of work whereas non-members are those who are not the members of the QC but provide suggestions. Members are expected to; </li></ul><ul><li>Attend meetings regularly; </li></ul><ul><li>Direct their efforts towards solving work-related problems; </li></ul><ul><li>Identifying problems, contributing ideas, undertaking research and investigating (where necessary) and assisting the QC in problem solving; </li></ul><ul><li>Participating in management presentations </li></ul>
  28. 30. The objectives of Quality Circles <ul><li>a ) Change in Attitude . From &quot;I don't care&quot; to &quot;I do care&quot; </li></ul><ul><li>b) Self Development Bring out 'Hidden Potential' of people, People get to learn additional skills. </li></ul><ul><li>c) Development of Team Spirit -Individual Vs Team – &quot;I could not do but we did it“ </li></ul><ul><li>Eliminate inter departmental conflicts. </li></ul><ul><li>d) Improved Organizational Culture Positive working environment. Total involvement of people at all levels. Higher motivational level . </li></ul>
  29. 31. <ul><li>Rise Organizational moral </li></ul><ul><li>Inspire more effective team work </li></ul><ul><li>Promote Job involvement </li></ul><ul><li>Create problem solving capabilities by members of QC’s themselves </li></ul><ul><li>Promote personal and leadership development </li></ul><ul><li>Improve communication within the organization </li></ul><ul><li>Promote cost function </li></ul><ul><li>Increase employee motivation </li></ul>
  30. 32. INTANGIBLE BENEFITS OF QUALITY CIRCLE <ul><li>Developing the ability of self expression </li></ul><ul><li>Personal Growth resulting from long-term group educational activities. </li></ul><ul><li>Greater self-confidence </li></ul><ul><li>Member morale increase </li></ul><ul><li>Level of self supervision improves </li></ul><ul><li>Helps develop ability to work in teams and appreciate other’s point of view </li></ul><ul><li>Better exchange of ideas and improvement in communication </li></ul><ul><li>The co-operative activities of the circle cement human relations. </li></ul><ul><li>It facilitates the satisfaction of members self-esteem needs. </li></ul><ul><li>The social need of human beings for belonging to a group is satisfied through QC activities. </li></ul>
  31. 33. Limitations and problems of QC <ul><li>Lack of management commitment and support </li></ul><ul><li>Lack of clear objectives </li></ul><ul><li>Unrealistic expectations for fast results </li></ul><ul><li>Failure to get solutions implemented </li></ul><ul><li>Inadequate training </li></ul>
  32. 34. HR AND QUALITY CIRCLE <ul><li>PHILOSOPHY OF QUALITY CIRCLE </li></ul><ul><li>The man on job knows more about its problem than anyone else. </li></ul><ul><li>Every person is inherently talented and a conducive environment brings the best out </li></ul><ul><li>People building is more important than people using </li></ul><ul><li>Motivation, Participation and Recognition are the three major aspects of QC. </li></ul>
  33. 35. QUALITY CIRCLE AT WORK <ul><li>XEROX one of the most well known firms in the world has benefitted from it. </li></ul><ul><li>Xerox reduced waste production by 65000 tonnes annually-with the help of Quality Circles. </li></ul><ul><li>United Airlines –one of the largest carriers in the USA </li></ul><ul><li>Quality circles at UA helped tackle the issue of sick leaves. </li></ul><ul><li>Result: Sick leaves were down by 17% and UA could save 18.2 million dollars </li></ul>
  34. 36. QUALITY CIRCLE AT WORK(CONTD) <ul><li>BHEL-’Navratna’ PSU one of the largest PSU’s in INDIA. </li></ul><ul><li>BHEL’s Tiruchirapalli Plant : A large heavy engineering units manufacturing boiler’s and an entire range of equipments required for a thermal power unit. </li></ul><ul><li>BHEL-pioneer in implementing QC’s in INDIA. Introduced it in 1981. Introduced in 1984 at the Tiruchirapalli Plant. </li></ul><ul><li>Impact of Quality Circles in BHEL </li></ul><ul><li>• Cohesive team work and team spirit. </li></ul><ul><li>• Work itself is more enjoyable. </li></ul><ul><li>• Improvement in interpersonal and intergroup relations. </li></ul><ul><li>• Improvement in the quality of workmanship within the work group. </li></ul><ul><li>• Greater and prompter response to suggestions given. </li></ul><ul><li>• Attitudinal changes. </li></ul><ul><li>• A greater sense of belonging to the group and the organization as a whole. </li></ul><ul><li>• Positive approach. </li></ul><ul><li>• Mutual trust. </li></ul>
  35. 37. QUALITY CIRCLE AT WORK(CONTD) <ul><li>The positive impact at the plant lead to the encouragement of the QC concept </li></ul><ul><li>10% in crease in the number of Quality Circles at BHEL </li></ul>
  36. 38. Toyota Motor Corporation <ul><li>Toyota Motor Corporation introduced total quality control or TQC in 1971. Fours years later, the company was awarded the Deming Application Prize for their efforts. TMC began Quality Circles activities in 1974 in pursuit of the Deming Prize and has continued to sustain them for more than 40 years since then. </li></ul><ul><li>In 1993 the company deployed its New QC Circle Activities. By the end of 2004 Toyota Motor Corporation, focusing on its skilled workplaces (Operations Group) boasted a domestic QC Circle participation of approximately 40,000 members in nearly 4,400 circles. </li></ul>
  37. 39. <ul><li>TQM’s primary aims at Toyota are improving the quality of work and enlivening the organisation and people that make up the company. Three core principles are employed towards these aims: putting the customer first, continuous kaizen (improvement), and 100% participation . QC Circles are considered an important TQM activity in addition to the other representative tools of TQM employed. </li></ul><ul><li>Toyota Motor Corporation carries out their QC activities with three aims in mind. The first is to develop the abilities of individuals in the workforce and empower them to self-fulfilment. The second to develop an attitude of mutual respect among members and create a motivating environment. Third , to contribute to corporate development by fostering continuous improvement of the workplace .  </li></ul>
  38. 40. <ul><li>Juran defines quality as &quot;fitness for use </li></ul><ul><li>Juran goes on  further to quantify &quot;fitness for use&quot; in two different categories: </li></ul><ul><li>1.  Product features that meet customer needs </li></ul><ul><li>2.  Freedom from deficiencies </li></ul>
  39. 41. <ul><li>  To achieve the first objective, Juran, like Deming, proposes that the producer learn what the customer expects from the product.  In many cases, this also includes determining who the end customer really is.   </li></ul><ul><li>At this point, the task is to translate the customer demands into the desired production specifications and features, and come up with a coherent PLAN to produce them. </li></ul><ul><li>    The second objective is achieved through MEASURING the results of production and how well-received the product is in the marketplace.  </li></ul><ul><li>By comparing the actual results with the desired results, acting on deficiencies and providing feedback into the system, continuous IMPROVEMENT can be attained.  These three activities - quality planning, quality control, and quality improvement - are known as the Juran Trilogy. </li></ul>
  40. 42. Quality Trilogy
  41. 43. Philip B. Crosby
  42. 44. <ul><li>Phillip B. Crosby, a corporate vice-president and director of quality for 14 years, gained a lot of attention when he published his book Quality is Free in 1979. </li></ul><ul><li>The conventional wisdom at that time was that each level of quality has some price. </li></ul><ul><li>For example, reducing the level of defect from 8 percent to 3 percent would cost a lot. The basis of this believe was the notion that improvements in quality require the purchase of improved machines, better materials, or more skilled labour. </li></ul><ul><li>Crosby pointed out that poor quality has hidden costs: increased labour and machine hours, increased machines failures , customer dissatisfaction, delivery delays, lost future sales, and even increased warranty costs. </li></ul><ul><li>Crosby believes that these costs typically dwarf the costs of machines, materials, and training needed to foster high quality. </li></ul><ul><li>The savings created by reduction of hidden costs can offset the costs incurred to create the proper environment. </li></ul>
  43. 45. The Fourteen Steps to Quality Improvement <ul><li>1) Make it clear that management is committed to quality. </li></ul><ul><li>2) Form Quality Improvement Teams with senior representatives from each department. </li></ul><ul><li>3) Analysis processes to determine where current and potential quality problems lie. </li></ul><ul><li>4) Evaluate the cost of quality and explain its use as a management tool. </li></ul><ul><li>5) Raise the quality awareness and personal concern of all employees. </li></ul><ul><li>6) Take actions to correct problems identified through previous steps. </li></ul>
  44. 46. <ul><li>7) Establish progress monitoring for the improvement process. </li></ul><ul><li>8 ) Train supervisors to actively carry out their part of the quality improvement programme. </li></ul><ul><li>9) Hold a Zero Defects Day to reaffirm management commitment. </li></ul><ul><li>10) Encourage individuals to establish improvement goals for themselves and for their group. </li></ul><ul><li>11) Encourage employees to tell management about obstacles to improving quality. </li></ul><ul><li>12) Recognize and appreciate those who participate . </li></ul><ul><li>13) Establish Quality Councils to communicate on a regular basis. </li></ul><ul><li>14) Do it all over again to emphasize that the quality improvement process never ends </li></ul>
  45. 47. Zero defects <ul><li>Zero defects is referred to as a philosophy, a mentality or a movement. It's not a program, nor does it have distinct steps to follow or rules to abide by. </li></ul><ul><li>This is perhaps why zero defects can be so effective, because it means it's adaptable to any situation, business, profession or industry. </li></ul><ul><li>Zero defects is NOT about being perfect. Zero defects is about changing your perspective. It does this by demanding that you: </li></ul><ul><li>Recognize the high cost of quality issues. </li></ul><ul><li>Continuously think of the places where flaws may be introduced. </li></ul><ul><li>Work proactively to address the flaws in your systems and processes, which allow defects to occur. </li></ul>
  46. 48. &quot; The quality manager must be clear, right from the start, that zero defects is not a motivation program. Its purpose is to communicate to all employees the literal meaning of the words 'zero defects' and the thought that everyone should do things right the first time. &quot; &quot;Quality Is Free&quot; by Philip B. Crosby (McGraw-Hill Books, 1979)
  47. 49. <ul><li>'Zero defects' does not mean that people never make mistakes, but that companies should not begin with 'allowances' or sub-standard targets with mistakes as an in-built expectation. </li></ul><ul><li>Systems that allow things to go wrong - so that those things have to be done again - can cost organisations between 20% and 35% of their revenues, in Crosby's estimation. </li></ul>
  48. 50. Note…….. <ul><li>If you fanatically follow a zero defects approach in areas which don't need it, you'll most likely be wasting resources. One of the most important of these resources is time, and this is where people are accused of time-destroying &quot;perfectionism.&quot; </li></ul>
  49. 51. Taguchi <ul><li>Genichi Taguchi born January 1, 1924, was an engineer and statistician. </li></ul><ul><li>From the 1950s onwards, Taguchi developed a methodology for applying statistics to improve the quality of manufactured goods. </li></ul><ul><li>Taguchi's key argument was that the cost of poor quality goes beyond direct costs to the manufacturer such as reworking or waste costs. Traditionally manufacturers have considered only the costs of quality up to the point of shipping out the product. Taguchi aims to quantify costs over the lifetime of the product. Long term costs to the manufacturer would include brand reputation and loss of customer satisfaction leading to declining market share. </li></ul>
  50. 52. Genichi Taguchi's Quality Loss Function <ul><li>The Quality Loss Function gives a financial value for customers' increasing dissatisfaction as the product performance goes below the desired target performance. Equally, it gives a financial value for increasing costs as product performance goes above the desired target performance. Determining the target performance is an educated guess, often based on customer surveys and feedback. </li></ul><ul><li>The quality loss function allows financial decisions to be made at the design stage regarding the cost of achieving the target performance. </li></ul>
  51. 53. Quality through Robust Design Methodology <ul><li>Taguchi methods emphasised quality through robust design, not quality through inspection. Taguchi breaks the design process into three stages: </li></ul><ul><li>System design - involves creating a working design first </li></ul><ul><li>Parameter design - involves experimenting to find which factors influence product performance most </li></ul><ul><li>Tolerance design - involves setting tight tolerance limits for the critical factors and looser tolerance limits for less important factors. </li></ul>
  52. 54. <ul><li>Taguchi’s Robust Design methodologies allow the designer through experiments to determine which factors most affect product performance and which factors are unimportant. The designer can focus on reducing variation on the important or critical factors. Unimportant or uncontrollable “noise” factors have negligible impact on the product performance and can be ignored. </li></ul>
  53. 55. Robust Design of Cookies....... Example <ul><li>This is easier explained by example. If your business makes cookies from raw ingredients, there are many possible factors that could influence the quality of the cookie - amount of flour, number of eggs, temperature of butter, heat of oven, cooking time, baking tray material etc. </li></ul><ul><li>With Genichi Taguchi’s Robust Design methodologies you would set up experiments that would test a range of combinations of factors - for example, high and low oven temperature, with long and short cooking time, 1 or 2 eggs, etc. The cookies resulting from each of these trials would be assessed for quality. </li></ul>
  54. 56. <ul><li>A statistical analysis of results would tell you which are the most important factors , for example oven temperature affects cookie quality more than the number of eggs. With this knowledge you would design a process that ensures the oven maintains the optimal temperature and you would be able to consistently produce good cookies. </li></ul>