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  • 1. 1 Total Quality Management
  • 2. 2 OBJECTIVES Total Quality Management Defined  Quality Specifications and Costs  Six Sigma Quality and Tools  The Shingo System : Fail-Safe  ISO 9000 / ISO 14000  Kaizen & Continuous improvement concepts 
  • 3. Total Quality Management (TQM)  Total quality management is defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer 3
  • 4. 4 Total Quality Management- TQM  Quality: Definition  Fitness for use  Meeting specifications & requirements  Customer satisfaction  Faith of user  Competitive cost & Reliability  Best at first  Pride for use  Consistency Safety 
  • 5. 5 Total Quality Management- TQM  Quality: Definition           Fitness for use Meeting specifications & requirements Customer satisfaction Faith of user Competitive cost & Reliability Best at first Pride for use Consistency Safety Right quality: Definition – Suitability for it’s intended purpose (Example:- M.D’s table Vs Classroom table)
  • 6. 6 Methods of describing quality    Samples Brand names Specifications     Standards     Material specifications Performance specifications drawings Industry National International Market Grades
  • 7. 7 Quality Specifications  Quality Characteristics – Variables – characteristics that are measurable on a numerical scale – e.g. dimensions – Attributes – a characteristic that cannot be measured on a numerical scale - e.g. the smell of a cologne is characterized as either acceptable or not/ the color of a fabric is either acceptable or not – Defect – a quality characteristic that does not meet certain standards – Standard or specification – a set of conditions and requirements – Quality of design – deals with the stringent conditions that the product or service must minimally possess to satisfy the customer requirements – Quality of conformance – Quality of performance - is concerned with how well the product functions or service performs when put to use - It measures the degree to which the product or service satisfies the customer
  • 8. 8 Quality Control & Quality Assurance Quality Assurance  Definition: All those planned or systematic actions necessary to provide confidence that a product or service will satisfy given needs  Evolution of Q.A – – – Inspection – oriented Quality Assurance Process control –oriented Quality Assurance New product development based Quality Assurance  Objective: of Q.A function is to have in place a formal system that continuously surveys the effectiveness of the company quality philosophy  Function: The Q.A Team audits the various departments and assists them in meeting their responsibilities for producing a quality product  Comparative Stance Quality Assurance – Preventive Quality Control - Curative (Popular saying – “Prevention better than Cure”)
  • 9. Costs of Quality Appraisal Costs External Failure Costs Costs of Quality Internal Failure Costs Prevention Costs 9
  • 10. 10 Six Sigma Quality  A philosophy and set of methods companies use to eliminate defects in their products and processes  Seeks to reduce variation in the processes that lead to product defects  The name, “six sigma” refers to the variation that exists within plus or minus three standard deviations of the process outputs
  • 11. 11 What is Six Sigma? • It is a methodology for continuous improvement • It is a methodology for creating products / processes that perform at high standards • It is a set of statistical and other quality tools arranged in unique way • It is a way of knowing where you are and where you could be! • It is a Quality Philosophy and a management technique Six Sigma is not: • A standard • A certification It is Another metric like percentage
  • 12. 12 The evolution of Quality Systems 2000 and beyond 1987 and beyond Six Sigma 1960-1980’s Total Quality Management 1940-1960’s 1920-1940’s Quality as Inspection Statistical process control Zero defects Lean Six Sigma • Lean manufacturing (TPM, JIT, SCM) + Six sigma • Optimized flow from the customer point of view Organizations tuned towards quality – Quality assurance Using statistical techniques for reducing variability – Quality control Time
  • 13. 13 Path to Six Sigma 6 Sigma Sigma levels and Defects per million opportunities (DPMO) 5 Sigma 4 Sigma 3 Sigma 2 Sigma 3.4 Defects 233 Defects 6,210 Defects 66,807 Defects 308,537 Defects
  • 14. 14 Origin of Six Sigma Motorola Motorola the company that invented Six Sigma the company that invented Six Sigma • The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola • Late 1970s - Motorola started experimenting with problem solving through statistical analysis • 1987 - Motorola officially launched it’s Six Sigma program
  • 15. 15 The Growth of Six Sigma GE GE the company that perfected Six Sigma the company that perfected Six Sigma • Jack Welch launched Six Sigma at GE in Jan,1996 • 1998/99 - Green Belt exam certification became the criteria for management promotions • 2002/03 - Green Belt certification became the criteria for promotion to management roles
  • 16. 16 The Growth of Six Sigma
  • 17. 17 The Growth of Six Sigma The GE model for process improvements D efine M easure A nalyze I mprove C ontrol Combination of change management & statistical analysis
  • 18. 18 Six Sigma Quality: DMAIC Cycle  Define, Measure, Analyze, Improve, and Control (DMAIC)  Developed by General Electric as a means of focusing effort on quality using a methodological approach  Overall focus of the methodology is to understand and achieve what the customer wants  A 6-sigma program seeks to reduce the variation in the processes that lead to these defects  DMAIC consists of five steps….
  • 19. Six Sigma Quality: DMAIC Cycle (Continued) 1. Define (D) Customers and their priorities 2. Measure (M) Process and its performance 3. Analyze (A) Causes of defects 4. Improve (I) Remove causes of defects 5. Control (C) Maintain quality 19
  • 20. 20 Analytical Tools for Six Sigma and Continuous Improvement: Flow Chart Material Received from Supplier No, Continue… Inspect Material for Defects Defects found? Yes Can be used to Can be used to find quality find quality problems problems Return to Supplier for Credit
  • 21. 21 Diameter Analytical Tools for Six Sigma and Continuous Improvement: Run Chart 0.58 0.56 0.54 0.52 0.5 0.48 0.46 0.44 Can be used to identify Can be used to identify when equipment or when equipment or processes are not processes are not behaving according to behaving according to specifications specifications 1 2 3 4 5 6 7 8 Time (Hours) 9 10 11 12
  • 22. 22 Analytical Tools for Six Sigma and Continuous Improvement: Pareto Analysis 80% Frequency Can be used Can be used to find when to find when 80% of the 80% of the problems problems may be may be attributed to attributed to 20% of the 20% of the causes causes Design Assy. Instruct. Purch. Training
  • 23. Analytical Tools for Six Sigma and Continuous Improvement: Checksheet Monday Billing Errors Wrong Account Wrong Amount A/R Errors Wrong Account Wrong Amount Can be used to keep track of Can be used to keep track of defects or used to make sure defects or used to make sure people collect data in a people collect data in a correct manner correct manner 23
  • 24. Number of Lots Analytical Tools for Six Sigma and Continuous Improvement: Histogram 24 Can be used to identify the frequency of quality Can be used to identify the frequency of quality defect occurrence and display quality defect occurrence and display quality performance performance 0 1 2 Data Ranges 3 4 Defects in lot
  • 25. Analytical Tools for Six Sigma and Continuous Improvement: Control Charts 25 Can be used to monitor ongoing production process Can be used to monitor ongoing production process quality and quality conformance to stated standards of quality and quality conformance to stated standards of quality quality 1020 UCL 1010 1000 990 LCL 980 970 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
  • 26. Analytical Tools for Six Sigma and Continuous Improvement: Cause & Effect Diagram Possible causes: Possible causes: Machine Man The results The results or effect or effect Effect Environment Method Material Can be used to systematically track backwards to Can be used to systematically track backwards to find a possible cause of a quality problem (or find a possible cause of a quality problem (or effect) effect) 26
  • 27. 27 Other Six Sigma Tools  Failure Mode and Effect Analysis (FMEA) is a structured approach to identify, estimate, prioritize, and evaluate risk of possible failures at each stage in the process  Design of Experiments (DOE) a statistical test to determine cause-and-effect relationships between process variables and output
  • 28. 28 Six Sigma Roles and Responsibilities 1. 2. 3. 4. Executive leaders must champion the process of improvement Corporation-wide training in Six Sigma concepts and tools Setting stretch objectives for improvement Continuous reinforcement and rewards
  • 29. The Shingo System: Fail-Safe Design  Shingo’s argument: – – –  SQC methods do not prevent defects Defects arise when people make errors Defects can be prevented by providing workers with feedback on errors Poka-Yoke includes: – Checklists – Special tooling that prevents workers from making errors 29
  • 30. Zero-Defect Concept (Total Error-free performance) • Origin- Missile Industry / later Aviation Industry • “ To Err is Human” – Training to erase the myth • Employee awareness programme - direct contribution to the product performance
  • 31. 31 ISO 9000  Series of standards agreed upon by the International Organization for Standardization  Adopted in 1987  More than 100 countries  A prerequisite for global competition?  ISO 9000 directs you to "document what you do and then do as you documented"
  • 32. 32 Three Forms of ISO Certification 1. First party: A firm audits itself against ISO 9000 standards 2. Second party: A customer audits its supplier 3. Third party: A "qualified" national or international standards or certifying agency serves as auditor
  • 33. ISO 14000 Quality Management Systems ORIGIN • • Primarily as a result of Uruguay round of GATT negotiations and RIO summit on environment in 1992. Released in the year 1996 as a Global series of Environmental management system standards. HOW MANY STANDARDS IN EMS ? • • Totally 12 standards (14000 – 14060) ISO 14001 is the most critical (“Environmental Management Systems – specifications with guidance for use”) ISO 14000- WHAT DOES IT COVER AND ACHIEVE ? • • • • • Starts with “environmental policy” Provides a framework for organization to demonstrate their commitment to environmental responsibility Establishes targets and objectives relates to identified environmental management goals. Environmental auditing, environmental labeling, life cycle assessment etc., Prevents pollution , reduced waste and create a good public image. 33
  • 34. 34 Question Bowl a. b. c. d. e. Which of the following are Dimensions of Design Quality? Performance Durability Aesthetics All of the above None of the above Answer: d. All of the above
  • 35. 35 Question Bowl Approximately what percentage of every sales Rupee is allocated to the “cost of quality”? a. Less than 5% b. About 10% c. Between 15 and 20 % d. More than 30% e. None of the above Answer: c. Between 15 and 20 % (for cost of reworking, scrapping, repeated service, etc.)
  • 36. 36 Question Bowl a. b. c. d. e. Which of the following are classifications of the “cost of quality”? Appraisal costs Prevention costs Internal failure costs External failure costs All of the above Answer: e. All of the above
  • 37. 37 Question Bowl a. b. c. d. e. Which of the following are functions of a quality control department? Testing product designs for reliability Gathering product performance data Planning and budgeting the QC program All of the above None of the above Answer: d. All of the above
  • 38. 38 Question Bowl a. b. c. d. e. Which of the following is a Critical Customer Requirement (CCR) in the context of a Six Sigma program? DMAIC Answer: e. None of the DPMO above (The CCR is the PDCA criteria that is used to DOE None of the above define desired quality. Processing a loan in 10 days is an example of a CCR.)
  • 39. 39 Question Bowl a. b. c. d. e. The DMAIC cycle of Six Sigma is similar to which of the following quality management topics? Continuous improvement Servqual ISO 9000 External benchmarking None of the above Answer: a. Continuous improvement
  • 40. 40 Question Bowl The “A” in DMAIC stands for which of the following? a. Always b. Accessibility c. Analyze d. Act e. None of the above Answer: c. Analyze (Define, Measure, Analyze, Improve and Control)
  • 41. 41 Question Bowl Which of the following analytical tools depict trends in quality data over time? a. Flowcharts b. Run charts c. Pareto charts d. Checksheets e. Cause and effect diagrams Answer: b. Run charts