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  3. 3. Total Quality Management WHAT IS TQM? TQM is an integrated organizational approach in delighting customers (both external and internal) by meeting their expectations on a continuous basis through everyone involved with the organizational working on continuous improvement in all products/processes along with proper problem solving methodology. “TO DELIVER HIGHEST VALUE AT LOWEST COST” is the main objective of TQM
  4. 4. Significance of the TQM • Total - The responsibility for achieving Quality rests with everyone a business no matter what their function. It recognizes the necessity to develop processes across the business, that together lead to the reliable delivery of exact, agreed customer requirements. This will achieve the most competitive cost position and a higher return on investment. • Quality- The prime task of any business is to understand the needs of the customer, then deliver the product or service at the agreed time, place and price, on every occasion. This will retain current customers, assist in acquiring new ones and lead to a subsequent increase in market share. • Management- Top management lead the drive to achieve quality for customers, by communicating the business vision and
  5. 5. values to all employees; ensuring the right business processes are in place; introducing and maintaining a continuous improvement culture.
  6. 6. Principles of TQM 1. To satisfy the customer  Users – If the user of the product is different than the purchaser, then both the user and the customer must be satisfied, although the person who pays gets it properly  Company Philosophy – A company that seeks to satisfy the customer by providing them the value for what they buy and the quality the expect will get more repeat business, referral business , and reduced complaints and services expenses. Some top companies not only provide quality product, but they also give extra service to make their customer feel important and valued.
  7. 7.  Internal customers – Within a company; a worker provides a product or service to his supervisors. If the person has any influence on the wages the workers receives, that person can be thought of as nan internal customer. A worker should have the mind-set of satisfying internal customers in order to keep his or her job and to get a raise or promotion.  Chain of customers – Often in a company, there is a chain of customers, each improving a product and passing it along until it is finally sold to the external customer. Each worker must not seek to satisfy the immediate internal customer, but he or she must look up the chain to try to satisfy the ultimate customer.
  8. 8. 2. Satisfy the supplier  External supplier – A company must look to satisfy their external suppliers by providing them with clear instructions and requirements and then paying them fairly and on time. It is only in the company’s best interest that its suppliers provide it with quality goods and services, if the company hopes to provide quality good or services to its external customers.  Internal Suppliers – A supervisor must try to keep his or her workers happy and productive by providing good task instructions, the tools they need to do their job and good working conditions. The supervisor must also reward the workers with praise and good pay.
  9. 9.  Get better work – The reason to do this is to get more productivity out of workers, as well as to keep the good workers. An effective supervisor with a good team of workers will certainly satisfy his or her internal customers. 3. Continuous Improvement –  Working smarter and not harder – Some companies have tried to improve by making employees work harder. This may be counter-productive, especially if the process itself is flawed. For example, trying to increase worker out put on a defective machine may result in more defective parts.  Work Suggestions –Workers are often a source of continuous improvements. They can provide suggestions on how to improve a process and eliminate the wastes or unnecessary work.
  10. 10. Lean Thinking  Meaning - Lean Thinking is a manufacturing phenomenon that seeks to "maximize the work effort of a company's number one resource, the People." Lean is therefore ‘a way of thinking’: to adapt to change, to eliminate waste and continuously improve. There are a number of tools and techniques, to be used in concert, to achieve maximization of the effort of the workforce and to operate as a Lean enterprise.  Effects – There are many reasons to introduce Lean techniques in an organization because it may contribute substantially to cutting costs and providing competitive advantages. Lean benefits include reduced work-in-process, increased inventory turns, increased
  11. 11. capacity, cycle-time reduction and improved customer satisfaction. According to a recent survey of 40 companies that had adopted LM, typical improvements are visible in three areas. These improvement areas are: operational improvements (reduction of lead time, increase in productivity, reduction in work-in-process inventory, etc.), administrative improvements (reduction in order processing errors, streamlining of customer service functions so that customers are no longer placed on hold, etc.) and strategic improvements (reduced costs, etc.).  Criticism – Despite the several success stories associated with the Lean concept, it does have some shortcomings. Examples of shortcomings that can be found in the literature on the subject are the followings:  The Lean organization may become very susceptible to the impact of changes.
  12. 12.  The Leanness in itself leads to reduced flexibility and less ability to react to new conditions and circumstances.  JIT deliveries cause congestion in the supply chain that lead to delays, pollution, shortage of workers and so on summarize, Lean requires a stable platform from which scale efficiency can be maximized. Highly dynamic conditions cannot be dealt with because there is no room for flexibility due to the focus on perfection, which is always a function of particular market conditions at a certain period of time.
  13. 13. KAIZEN  Introduction • Masaaki Imai is known as the developer of Kaizen. • 改 ('kai') KAI means 'change' or 'the action to correct'. • 善 ('zen') ZEN means 'good' • So basically kaizen is small incremental changes made for improving productivity and minimizing waste.
  14. 14.  Features Of Kaizen • Widely applicable– Can be used in both manufacturing and non-manufacturing environments • Highly effective & results oriented - Kaizen events will generate quick results, Measurable results, Establish the baseline, and measure the change. • A Learning Experience- Every member of a Kaizen Team will walk away from the event learning something new. • Team based & cross functional - Team members can be from various functions of the business. Top management participation is encouraged.
  15. 15. Wastes of Kaizen  Muda • Meaning - It is a Japanese word that means ‘waste’. Here we refer to waste in activities within processes and not really waste in its physical form. That heap of material sitting as defects/ scrap on the shop-floor is not really referred to as Muda (waste). Muda in this case will be the wasteful activities involved in ‘inspecting’ the production to find the defects or the rework that follows defect detection. So ‘rework’, ‘inspection’, here are the Muda’s (wasteful activities). These activities are performed by people; it costs money to perform, consumes resources, but adds NO value. Activity that costs money; but adds no value to the customer (internal or external) is Muda.
  16. 16. • Causes - Muda is classically seen in eight forms:– 1. Unnecessary material transportation, 2. Unnecessary motion of people… hands, feet, eyes! 3. Rework/ inspection due to defects, 4. People, material or machines waiting for each other 5. Unnecessary processing – over kill! 6. Unnecessary production – producing more or faster than required 7. Unnecessary inventory – in any form raw, work in progress or finished goods 8. Finally the killer – unused human skills/ potential
  17. 17.  Mura • Meaning – Mura means Variation. Variation means deviation from a set standard or expected outcome. Mura - Variation from expectations is a rampant virus, inflicting all processes and work activities. Variation results in waste in the form of scrap, reworking or reprocessing. For e.g.; Two cups of coffee may not taste the same or have the same temperature, though it is coming from the same vending machine at the same point of time, thus it may require reheating – which is a clear waste (not to mention reheated Coffee may be totally rejected by some of us) Coming to business, there is variation in business processes, products, materials, skills, output etc. In spite of advancements in machines and in process technology, variation do occur and it is the management’s duty to IDENTIFY, MEASURE, ELIMINATE and keep out all variation from the processes. Standard Deviation (SD) and it is a statistical measure of variation or
  18. 18. variability. It is denoted by Greek letter ‘σ’ (Sigma). In the western world, the state which is almost variation free is termed at Six Sigma. It is important to note that Mura results in Muda – that is, variation results in waste (in form of rework/ redoing) • Causes – When the outcome expected does not happen, one can safely say that there is some Mura (variation) in the process. Symptoms, is in the form of either variations in quantity of output, or quality of the output or delays. Say, when a business process like processing of payments (payables) has a variation, either the number of payments expected to be processed in given unit of time will greatly vary or the payments processed have errors and omissions. Let us look at another simple case, like liquid filing (for say for Milk or Shampoo), if each bottle coming out of the line has more or less than the required volume, it means that there is variation in the filling line (this can be a costly variation for the company). Most organizations prefer to build numerous checks,
  19. 19. counterchecks and inspections into the process to ‘catch’ variation. Catching is hardly a solution, as it is done after the damage is already done.
  20. 20.  Muri – • Meaning – Muri means avoidable physical strain/ burden on people and machines/ equipment’s at work. Same strain (within defined & safe limits) is to be expected at work, but when the strain becomes excessive, it becomes a burden It results in accidents, injury, leading to poor output or quality errors. A person, who in working in extreme conditions caused due to excess noise, temperature, fumes, etc, experiences Muri / burden. Muri (overburden) on equipment means machines that are operating over its safe limits or set performance limits. Overloading, abuse, poor maintenance etc, causes Muri. It results in the equipment breaking down or performing under its expected output and quality limits.
  21. 21. • Causes – Excess strain or Muri on an operator is to be measured through on site observations and trails. Of course at times someone sweating profusely or his strained posture while doing a job is a symptom by itself. Management must recognize it and fix it. Otherwise Muri will result in Mura – variation.Strain/ Muri on equipment’s can be easier to identify. Machines will shudder, squeak, leak, stop, produce defects and finally protest and STOP! .
  22. 22. Conclusion We have learned about the various techniques used for the improvement of quality and have seen the types, effects and the problems associated with each of the techniques. Deciding upon the “BEST” technique is next to impossible as they cannot be compared and each has its own advantages and limitations. Firms can utilize a combination of techniques which would garner better results in the future. Thus, we conclude that adoption of such techniques are crucial for any firm which wants to capture the market and gain consumer loyalty. Also, there is the fact of maintenance of this quality level; otherwise the goodwill of the firm will be lost. To keep the quality standard up to expectations, the firm should engage in inspection from time to time.
  23. 23. THANK YOU.