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Question No-1: Input output Process Model
Process
Process is an activity or group of activities that takes one or more inputs, transforms and adds
value to them and provides one more outputs for its customers.
Processes are the fundamental activities that organizations use to do work and achieve their goal.
Process refers to business and production activities of an organization. Business processes such
as purchasing, engineering, accounting, and marking are areas where nonconformance can
represent an opportunity for substantial improvement.
A business process is a collection of related, structured activities or tasks that produce a specific
service or product (serve a particular goal) for a particular customer or customers. It often can be
visualized with a flowchart as a sequence of activities with interleaving decision points or with a
Process Matrix as a sequence of activities with relevance rules based on the data in the process.
Input/output Process Model
There are three very common terms that are linked to each other. They describe particular stages
in information handling. They are:
Input, processing and output.
Inputs may be materials, money, information, data, etc. Outputs may be information, data,
products, service, etc. The output of one process also can be the input to another process. Outputs
usually require performance measures. They are designed to achieve certain desirable outcomes
such as customer satisfaction. Feedback is provided in order to improve the process.
Along with a definition, many times you will be asked to draw a diagram to show the stages. It is
essential that you learn the diagram below, along with the direction of information flows. You
need to be able to reproduce it exactly.
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The components of the IPO model are defined as:
 I: Input - The information, ideas, and resources used in creating a program
 P: Processing - Actions taken upon/using input or stored material
 O: Output - Results of the processing that then exit the system
 S: Storage - Location(s) where material inside the system is/are placed for possible use at
a later point in time
The process is the interaction of some combination of people, materials, equipment, method,
measurement, and the environment to produce an outcome such as a product, a service, or an
input to another process. In addition to having measurement input and output, a process must
have value-added activities and repeatability. It must be effective, efficient, under control, and
adaptable.
Process definition begins with defining the internal and/or external customers. The customer
defines the purpose of the organization and every process within it. Because the organization
exits to serve the customer, Process improvements must be defines in terms of increased
customer satisfaction as result of higher quality products and services.
OUTCOMES
OUTPUT
Information
Data
Product
Service,etc
PROCESS
People
Equipment
Method
Procedures
Environment
Materials
Materials
INPUT
Materials
Money
Information
Data, etc
FEEDBACK
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Continuous ProcessImprovement
A continual improvement process (CIP or CI), also often called a continuous improvement
process is an ongoing effort to improve products, services, or processes. These efforts can seek
"incremental" improvement over time or "breakthrough" improvement all at once.
Quality is a never ending quest and Continuous Process Improvement (CPI) is a never ending
effort to discover and eliminate the main causes of problems. It accomplishes this by using
small-steps improvements, rather than implementing one huge improvement.
CPI means making things better. It is NOT fighting fires. Its goal is NOT to blame people for
problems or failures. . . it is simply a way of looking at how we can do our work better. When we
take a problem solving approach, we often never get to the root causes because our main goal is
to put out the fire.
Ways to improve a process
There are five ways to improve a process. Now we will chronologically discuss the process
improvement:
01. Reduce resources
02. Reduce errors
03. Meet or exceed expectation of downstream customers
04. Make the process safer
05. Make the process more satisfying to the person doing it.
First, a process that uses more resources than necessary is wasteful. Reports that are distributed
to more people than necessary wastes copying abd distribution time, material, user read time, and
eventually, file space.
Second, for the most part, errors are a sign of poor workmanship and require rework. Typing
errors that are detected after the computer printout require opening the file, madding the
correction, printing the revised document.
Third, by meeting or exceeding expectations of downstream customers, the process is improved,
For example, the better the weld, the less grinding required, making the appearance of a finish
paint more pleasing.
The fourth way a process can be improved is by making it safer. A safer workplace is a more
productive one with fewer lost-time accidents and less workers compensation claims.
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The fifth way to improve a process is to increase the satisfaction of the individual performing
the process. Sometimes a little change, such as an ergonomically correct chair, can make a
substantial change in a person’s attitude toward their work.
Question No-2:The Juran Trilogy
Jurandefines qualityas fitness for use interms ofdesign, conformance, availability, safety, and field use. Thus, his
concept more closely incorporates the viewpoint ofcustomer. He is prepared to measure everythingand relies on
systems and problem-solving techniques. Unlike Deming, he focuses on top-down management and technical
methods rather than worker pride and satisfaction.
Process improvement involves planning. One of the best approaches is the one developed by Dr
Josep Juran. It has three components:
 Planning
 Control
 Improvement
These refer to as the Juran Trilogy. It is based loosely on financial processes such as budgeting
(planning), expense measurement (control), and cost reduction (improvement).
Planning
The planning component begins with external customers.
First, quality goals are established, marketing determines the externals customers and all
organization personnel (managers, members of multifunctional teams, or work groups) determine
the internal customers.
Second, the customers are determined, their needs are discovered. This activity requires the
customers to state needs in their own words and from their own viewpoint; however, teal needs
may differ from stated needs. For example, a stated need may be an automobile, whereas the real
need is transportation or a status symbol.
One might discover these needs by-
 Being a user of the product or service
 Communication with customers through product or service.
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 Simulation in the laboratory.
Third step in the planning process is to develop product and service features that respond to
customer needs, meet the needs of the organization and its suppliers, are competitive, and
optimization the cost of all stakeholders. This step typically is performed by a multifunction.
Forth step is to develop the processes able to produce the product abd service features. This step
is also performed by a multifunctional team with a liaison to the design team. Activities include
determining the necessary facilities, training, and operation, control, and maintenance of the
facilities.
Final step of the planning process is the transferring plans to operations. Once again, a
multifunctional team with a liaison to the other teams is used.
Quality Planning
Control
Control is used by operating forces to help meet the product, process, and service requirements.
It uses the feedback loop and consists of the following steps:
1. Determine items/subjects to be controlled and their units of measure.
2. Set goals for the controls and determine what sensors need to be put in place to
measure the product, process or service.
3. Measure actual performance.
4. Compare actual performance to goals.
5. Act on the difference.
Quality Control
ts of measurements
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Improvement
The third part of trilogy aims to attain levels of performance that are significantly higher than
current levels. Process improvements begin with the establishment of an effective infrastructure
such as the quality council. Two of the duties of the council are to identify the improvement
projects and establish the project teams with a project owner. In addition, the quality council
needs to provide the teams with the resources to determine the causes, create solutions, and
establish control to hold the gains. While the quality council is the driver that ensures that
improvement is continuous and never ending. Process improvement can be incremental or
breakthrough.
Quality Improvement
emedies for effective in operating conditions
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The above figure provides an example of how the three continuous improvement processes
interrelate. In the figure, Juran provides a distinction between sporadic waste and chronic waste.
The sporadic waste can be identified and corrected through quality control. The chronic waste
requires an improvement process.
Question No-3:Improvement strategies
There are four primary improvement strategies-repair, refinement, renovation, reinvention. Choosing the
right strategy for the right situation is critical. It is also true that proper integration of the strategies will
produce never ending improvement.
1. Repair: this strategy is simple – anything broken must be fixed so that it functions designed.
There are two levels to this strategy. If a customer receives a damaged product, a quick fix is
required. This level is a temporary or short term measures shore up the problem, they should not
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become permanent. This level occurs when an individual or team identifies and I; eliminates the
root cause(s) of the problem and effects a permanent solution. It is important to note that the
repair strategy does not make the process better than the original design.
2. Refinement: This strategy involves activities that continually improve processes, products,
and services are accomplished on an incremental basis. Refinement improves efficiency and
effectiveness. It should become an integral part of every employee’s job. Both individuals and
teams can use this strategy. Typically it relies on doing things just abit quicker, better, Easier or
with less waste. The primary benefit of gradual change is that it produces little resistance from
employees. However, because the change is so gradual, management may not be recognize and
reward the affected employees. Also, minor changes may not be documented or properly
communicated.
3. Renovation: This strategy results in major or breakthrough improvements. Although
the resulting product, service, process or activity might often appear to be different from
the original, it is basically the same. Innovation and technological advancements are key
factors in this approach. For exam le, the process of drilling a hole was originally done by
hand with a cranking mechanism; another renovation occurred that was brought about by
the development of rechargeable electric drill is basically the same as the hand drill.
Renovation is more costly than the previous strategies and is usually undertaken by teams
rather than individuals.
4. Reinvention: Reinvention is the most demanding improvement strategy. It is preceded
by the feeling that the current approach will never satisfy customer requirements. A new
product service, process, or activity is developed using teams based on a complete
understanding of the customer’s requirements and expectations. Reinvention or
reengineering begins by imagining that the previous condition does not exist- in other
words, a clean sheet of paper. Then the team uses in depth knowledge of the customer’s
requirements and expectation ns and invents a new product, services, process or activity.
For example, the process of drilling holes using lasers or water jets was a reinvention.
Question No-4: Types of problems
There are five types of problems in continuous process improvement which are discussed below:
Compliance
Unstructured
Efficiency
Process design
Product design
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The first three are performance problem and the last two are design problems that requires a new
or improved design.
Compliance: Compliance problems occur when a structured system having standardized
inputs, process, and outputs is performing unacceptably from the user’s viewpoint. These
problems are identified by comparing with standards or by feedback from the internal or external
customer.
Unstructured: Unstructured problems resemble compliance problems except that they are not
specified by standards. The absence of standards may be due to system immaturity or to the need
for flexibility in system performance. For example, an expert woodpecker adjusts her activities
to the or moisture contents of the wood and customer service workers adapt their behavior to
individual customers. Identification of unstructured problems is usually brought about by
negative customer feedback. The major challenges are to determine customer needs and to
diagnose the causes of poor performance. Because of customer variability, it is difficult to
determine why a product or service was unacceptable. Organizations need to treat each customer
as an individual and maintain a database on acceptable and unacceptable behavior.
Efficiency:Efficiency problems occur when the system is performing unacceptability from the
view point of its owners or operators. In other words, the end user is satisfied; however, the
process is more costly than desired, or working conditions are not acceptable. Indentification of
such problems occurs from benchmarking and operator suggestions.
Process Design: Process design problems involve the development of new processes and
revision of existing processes. Many business and production processes have not been well
designed or have become obsolete with advantages of technology. Identification of problems is
prompted by poor performance, the knowledge that we can do better , or the introduction of new
of products. It requires that user needs and relevant constraints.
Product Design: Product design problems involve the development of new products and the
improvement of existing products. A major focus is to prevent process and the user problems by
relying on customer needs. Although design work can be initiated as a result of poor product
performance, problem solving usually occurs as a naturally part of a competitive environment. A
major challenge is to translating, in a timely manner, user needs and constraints into product
attributes and specifications, usually using quality function deployment.
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Question No-5: The PDSA Cycle
The concept of the PDCA Cycle was originally developed by Walter Shewhart, the pioneering
statistician who developed statistical process control in the Bell Laboratories in the US during
the 1930's. It is often referred to as `the Shewhart Cycle'. It was taken up and promoted very
effectively from the 1950s on by the famous Quality Management authority, W. Edwards
Deming, and is consequently known by many as `the Deming Wheel'.
Use the PDCA Cycle to coordinate your continuous improvement efforts. It both emphasizes and
demonstrates that improvement programs must start with careful planning, must result in
effective action, and must move on again to careful planning in a continuous cycle.
Also use the PDCA Cycle diagram in team meetings to take stock of what stage improvement
initiatives are at, and to choose the appropriate tools to see each stage through to successful
completion.
How to use the PDCA Cycle diagram to choose the appropriate tool is explained in detail in the
`How to use it' section below.
The basic Plan-Do-Study-Act(PDSA) cycle was first developed by Shewhart and then modified
by Deming. It is an effective improvement technique.
The following figure illustrates the cycle:
Figure: The PDSA Cycle
The four steps in the cycle are exactly as stated.
First, plan carefully what is to be done.
Next, carry out the plan (do it).
Third, study the results-did the plan work as intended, or were the results different?
Finally, act on the results by identifying what worked as planned and what did not. Usually the
knowledge learned, develop an improved pan and repeat the cycle.
Act Plan
Study Do
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Here is what you do for each stage of the Cycle:
 Plan to improve your operations first by finding out what things are going wrong (that is
identify the problems faced), and come up with ideas for solving these problems.
 Do changes designed to solve the problems on a small or experimental scale first. This
minimizes disruption to routine activity while testing whether the changes will work or
not.
 Check whether the small scale or experimental changes are achieving the desired result
or not. Also, continuously Check nominated key activities (regardless of any
experimentation going on) to ensure that you know what the quality of the output is at all
times to identify any new problems when they crop up.
 Act to implement changes on a larger scale if the experiment is successful. This means
making the changes a routine part of your activity. Also Act to involve other persons
(other departments, suppliers, or customers) affected by the changes and whose
cooperation you need to implement them on a larger scale, or those who may simply
benefit from what you have learned (you may, of course, already have involved these
people in the Do or trial stage).
Question No-6: Problem Solving Method
Process improvement achieves the greatest result when it operates the problem solving method.
In the initial stage of a program, quick result are frequently obtained because the solutions are
obvious or an individual has a brilliant idea. However, in the long run, a systematic approach
will yield the greatest benefits. There are seven phases. The phases are intregrated because each
phase is dependent upon the previous phase. Continuous process the improvement is the
objective, and these phase are the framework to achieve that objective.
Phase 1: Identify the opportunity: The objective of this phase problem is ti identify and
prioritize opportunities for improvement. It consists of three parts: a. identify the problem b.
form the team c. define the scope.
Problem identification answers the question, ‘What are the problems?’ The answer leads to those
problems that have the greatest potential for improvement and have the greatest need for solution.
Problems can be identified from a variety of inputs, Which are-
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01. Pareto analysis of repetitive external alarm signals, such as field failures, complaints,
returns and others.
02. Pareto analysis of repetitive internal alarm signals
03. Proposal from suggestion schemes
04. Field study of user’s needs.
05. Data on performance of competitors
06. Comments of key people outside the organization
07. Findings and comments of government regulators and independent laboratories
08. Customer surveys
09. Employee surveys
10. Brainstorming by work groups.
For a condition to qualify as a problem, the following criteria must be met;
01. Performance varies from an established standard.
02. Deviation from the perception and the facts.
03. The cause is unknown; if we know the cause, there is no problem.
Act Plan
Study Do
Phase2 Analyze the
process
Phase 3 Developthe
optimal solutions
Phase 5 Studythe
results
Phase 4 Implementation
Phase 7 Planfor the future
Phase 6 Standardise the
solutios
Phase 1 Identifythe opportunity
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The quality council must or work group must prioritize problems using the following
criteria:
01. Is the problem is most important or less important?
02. Will problem solution contribute to the attainment of goals?
03. Can the problem be defined clearly using objective measures?
The second part of phase 1 is to form a team. If the team is natural work group or one
where members already work together, then this part is complete. If the the problem is of
a multifunctional nature, as most are, then the team should be selected and tasked by the
quality council to address the improvement of a specific process. Goals and milestone are
established.
If the improvement strategy is repair or refinement, an individual, rather than a team ,
may be assigned to work on the problem.
Third part of phase 1 is to define scope. Failure in problem solving is frequently caused
by poor identification of the problem. A problem well stated is half solved.
Criteria for a good problem statement are as follows:
01. It clearly describes the problem as it currently exists and is easily understood.
02. It states the the effect –what is wrong, when it happens, and where it is occurring, not
why it is wrong or who is responsible.
03. It focuses on what what is known, what is unknown, and what needs to be done.
04. It uses facts and is free of judgement
05. It emphasize the impact on the customer.
Phase 2: Analyze the Current Process:
The object of this phase is to understand the process and how it is currently performed.
Key activities are to define process boundaries, outputs and customers, Inputs and
suppliers, and process flow: determines level of customer satisfaction and measurements
needed, gather data and identify root causes. This phase atso follow some steps:
01. The first step is for the team to develop a process flow diagram.
02. Next, the target performance measures are defined.
03. Then the collection of all available data and information.
Phase 3: Developthe optimal solution:
This phase has the objective of establishing potential and feasible solutions and
recommending the best solutions to improve the process. Once all the information is
available, the project team begins its search for possible solutions. Sometimes the
solutions are quite evident from a cursory analysis of the data. In this creativity plays the
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major role and brainstorming is the principal technique. Brainstorming on possible
solutions requires not only a knowledge of the problem but also innovation and creativity.
Phase-4:Implementation Changes:
Once the best solution is selected, it can be implemented. This phase has the objective of
preparing the implementation plans, obtaining approval, and implementation the process
improvements.
The contents of the implementation plan report must fully describe –
01. Why will it be done?
02. How will it be done
03. When will it be done.
04. Who will do it?
05. Where will it be done?
Phase-5 Study the results:
This phase has the objective of monitoring and evaluating the change by tracking and
studuing the effectiveness of the improvement efforts through data collection and review
of progress. It is vital to institutionalize meaningful change and ensure ongoing
measurement and and evaluation effortsto achieve continuous improvement.
Phase 6: Standardize the solution:
Once the team is satisfied with the change, it must be institutionalized by positive control
of the process, process certification, and operator certification. Positrol assures the
important variables are kept under control. It specifies the what, who, how, where and
when of the process and is an updating of the monitoring activity.
Finally, operators must be certified to know what to do and how to do it for a particular
process.
Phase 7: Plan for the future:
This phase has the objective of achieving improved levels of process performance. It is
important to remember that TQM addresses the quality of management as well as the
management of quality. Everyone in the organization is involved in a systematic, long
term endeavour to constantly improve quality By developing process that are customer
oriented, flexible and responsive.
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Management must establish the system to identify areas for future improvements and to
track performance with respect to internal and external customers. They must also track
changing customer requirements.
Question No-7: The Concept of Kaizen, Reengineering and
Six sigma
Kaizen
Kaizon is a Japanese word for the philosophy that defines management’s role in continuously
encouraging and implementing small improvements involving everyone. It is the process of
continuous improvement in small increments that make the process more efficient, efficient,
effective, under control, and adaptable. Improvements are usually accomplished at little or no
expense, without sophisticated techniques or expensive equipment. It focuses on simplification
by breaking down complex processes into their sub-processes abd then improving them.
The Kaizon improvement focuses on the use of:
1. Value-added abd non-value-added work activities.
2. Muda, which refers to the seven classes of waste----over-production, delay,
transportation, processing, inventory, wasted motion, and defective parts.
3. Principles of motion study and the use of cell technology.
4. Principles of materials handling and use of one-piece flow.
5. Documentation of standard operation procedures.
6. The five S’s for workplace organization, Which are five Japanese words that
mean proper arrangement (Seiko), orderliness (seition), Personal cleanliness
(seiketso),Cleanup(seiso), and discipline(shitsuke)
7. Visual management by means of visual display that everyone in the plant can
use for better communication.
8. Just in time principles to produce only the units in the right quatities, at the
right time,and with the right resources.
9. Poka-yoke to prevent or detect errors
10. Team dynamics, which include problem solving, communication skills, and
conlict resolution
Implementing Kaizen: 7 Conditions
Point 1: Institute modern methods of training and education for all. Modern methods of on-the-
job training use control charts to determine whether a worker has been properly trained and is
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able to perform the job correctly. Statistical methods must be used to discover when training is
complete.
Point 2: Institute modern methods of supervision. The emphasis of production supervisors must
be to help people to do a better job. Improvement of quality will automatically improve
productivity. Management must prepare to take immediate action on response from supervisors
concerning problems such as inherited defects, lack of maintenance of machines, poor tools or
fuzzy operational definitions.
Point 3: Fear is a barrier to improvement so drive out fear by encouraging effective two-way
communication and other mechanisms that will enable everybody to be part of change, and to
belong to it.
Fear can often be found at all levels in an organization: fear of change, fear of the fact that it
may be necessary to learn a better way of working and fear that their positions might be usurped
frequently affect middle and higher management, whilst on the shop-floor, workers can also
fear the effects of change on their jobs.
Point 4: Break down barriers between departments and staff areas. People in different areas
such as research, design, sales, administration and production must work in teams to tackle
problems that may be encountered with products or service.
Point 5: Eliminate the use of slogans, posters and exhortations for the workforce, demanding
zero defects and new levels of productivity without providing methods. Such exhortations only
create adversarial relationships.
Point 6: Eliminate work standards that prescribe numerical quotas for the workforce and
numerical goals for people in management. Substitute aids and helpful leadership.
Point 7: Remove the barriers that rob hourly workers, and people in management, of their right
to pride of workmanship. This implies, abolition of the annual merit rating (appraisal of
performance) and of management by objectives.
Reengineering
Reengineering sometimes called Business Process Reengineering (BPR), involves a complete rethinking and
transformation of key business processes, leading to strong horizontal coordination and greater flexibility in
responding to changes in environment. Because work is originated around processes rather than function,
reengineering often involves ashift tohorizontal structure basedonteams.
Reengineering basically means starting over–throwing out all the notions of how work was done and deciding
how it canbest be done now. It requires identifying customer needs and themdesigning how it canbest be done
now. Itrequires identifying customer needs then designing processes and aligning people tomeet those needs.
Banks and insurance companies, manufacturing and mining companies, and service companies throughout the
world, all have achieved breakthroughs in speed, flexibility, innovation and quality through reengineering.
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According to the authors of the book, “Reengineering is the fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements incritical, contemporary measures ofperformance suchas
cost, quality, service and speed.
Reengineering is done by analyzing and redesigning of workflow within and between enterprises. engineering
reached its heyday in the early 1990′s when Michael Hammer and James Champy published their best-selling
book,“Reengineering the Corporation”
The authors promoted the idea that sometimes radical redesign and reorganization of anenterprise (wiping the
slate clean) was necessary tolower costs and increase quality of service.
The Work Reengineering Tool Set
These improvement objectives are typically accomplished through the creative application of
a variety of industrial engineering principles, information technologies, and advanced
management practices.
Borrowing from traditional industrial science, eastern manufacturing philosophies, and a
variety of other sources, Work Reengineering employs a variety of principles and techniques
to achieve its goals. Nearly 30 such principles have been documented including:
• Mistake Proofing
• Visual Control Systems
• Outcome Orientation
• Process Standardization
• Visible Process Flow
Demand Pull Processing Statistical Process Control Employee Involvement
• Work Flow Balancing
• Synchronized Scheduling
As the concept of Work Reengineering has matured, comprehensive methodologies have
begun to emerge incorporating elements such as process analysis, benchmarking, opportunity
identification, stretch targeting, process redesign, and implementation activities. A number of
helpful tools have also been incorporated such as process mapping, stakeholder analysis,
problem solving techniques, and value-added analysis.
Six sigma
In 1999, M. Harry and R. Schroeder published Six Sigma: The Breakthrough Management
Strategy Revolutionizing the World’s Top Corporations.
Six Sigma is a powerful approach to improving processes to do things better, faster, and at
lower cost. It can be applied to every facet of business, from production, to human resources, to
order entry, to technical support.
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Six Sigma is a relatively new concept as compared to Total Quality Management (TQM).
However, when it was conceptualized, it was not intended to be a replacement for TQM. Both
Six Sigma and TQM have many similarities and are compatible in varied business
environments, including manufacturing and service industries. While TQM has helped many
companies in improving the quality of manufactured goods or services rendered, Six Sigma
has the potential of delivering even sharper results.
Six Sigma methods have their roots in Motorola's quality improvement efforts in the late 1980s.
That effort was a major contributor to Motorola being one of the first Malcolm Baldrige winners
in 1988. In the 1990's Six Sigma achieved popular appeal as a result of the success General
Electric and Allied Signal (now Honeywell) had
implementing Six Sigma concepts.
While the name "Six Sigma" has taken on a broader
meaning, the fundamental purpose of Six Sigma is to
improve processes such that there are at least six
standard deviations between the worst case specification
limit and the mean of process variation. For those of us
that are statistically challenged, that means the process is
essentially defect free!
The tools of Six Sigma are not new. Most of them are the
same basic tools used by Quality Improvement Teams in
the 1970s and early 80s. Six Sigma does have a catchy
name and titles like "Black Belts," but its real value is in
the systematic approach to improvement. The DMAIC process is a variation of PDCA that many
people find helpful. There is no doubt about it, Six Sigma can help organizations improve
processes.
On the other hand, many Six Sigma program managers complain that projects are all over the
map. How can they make sure people are "working on the right things?" The best approach is to
align Six Sigma projects with the organization's strategic business plan.
When Six Sigma projects are aligned with the organization's strategic direction, breakthrough
results can be realized.
For Motorola, the originator of Six Sigma, the answer to the question "Why Six Sigma?" was
simple: survival. Motorola came to Six Sigma because it was being consistently beaten in the
competitive marketplace by foreign firms that were able to produce higher quality products at a
lower cost. When a Japanese firm took over a Motorola factory that manufactured Quasar
television sets in the United States in the 1970s, they promptly set about making drastic changes
in the way the factory operated. Under Japanese management, the factory was soon producing
TV sets with 1/20th the number of defects they had produced under Motorola management. They
did this using the same workforce, technology, and designs, making it clear that the problem was
Motorola's management. Eventually, even Motorola's own executives had to admit "our quality
stinks."
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Some argue that many of the tools Six Sigma uses are not new. However, while Six Sigma uses
conventional methods, its application is anything but conventional. Instead it stresses the
importance of searching for a new way of thinking and doing.
In fact, Six Sigma defines a clear road map to achieve Total Quality:
1. Leadership Commitment: Top management not only initiates Six Sigma deployment, it
also plays an active role in the whole deployment cycle. Six Sigma starts by providing
senior leadership with training in the principles and tools it needs to direct the
development of a management infrastructure to support Six Sigma. This involves
reducing the levels of organizational hierarchy and removing procedural barriers to
experimentation and change.
2. Customer Focus: Systems are developed for establishing close communications with
“external customers” (direct customers, end-users, suppliers, regulatory bodies, etc), and
with internal customers (employees). From upstream suppliers to ultimate end-users, Six
Sigma eliminates the opportunities for defects.
3. Strategic Deployment: Six Sigma targets a small number of high-financial leveraged
items. It focuses the company’s resources: right support, right people, right project, and
right tools, on identifying and improving performance metrics that relate to bottom-line
success.
4. Integrated Infrastructure: The Leadership Team defines and reviews project progress.
The Champion acts as a political leader and removes the barriers for the project team.
The Master Black Belt acts as a technical coach and provides in-depth knowledge of
quality tools. The Black Belt controls the project while the Green Belt supports the Black
Belt - together they form the Six Sigma Project Teams. In addition, the incentive and
recognition systems motivate the project teams to achieve the business goals.
5. Disciplined Framework: Six Sigma projects are Implemented using the Measure,
Analyze, Improve and Control disciplined road map. This MAIC discipline sets up a
clear protocol to facilitate internal communication. In addition, from a business
perspective, Six Sigma is also a framework for continuous business improvement.
6. Education and Training: Six Sigma believes that true commitment is driven by true
understanding. As a fact-based methodology, it intensively utilizes quality and statistical
tools to transform a practical problem to a practical solution. Thus, a top-to-bottom
training is conducted in Six Sigma philosophy and system improvement techniques for all
levels.
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Question No-8:Two basic issues of continuous process improvement
There are two basic issues in continuous process improvement which are:
A. Excellency in everywhere in the organization
B. Improvement is never ending process
A. Excellency in everywhere in the organization
A list of process is found within the organization. Continuous process improvement strive
to improve all the process within the entire organization is-
1. Greater emphasis of business process.
2. Greater emphasis on production activities.
Business process refers to the purchasing, engineering accounting and marketing
areas. All the departments and units of an organization should be continually
improved. If one department don’t work well and others not. The overall
improvement will hampered. All the personnel in different department must be
trained in TQM. They have to make them understand that you come to work not only
to do your jobs but also to think about how to improve your jobs.
There must be a continual striving to improve all the production process to improve
all the production process. There should be established good relation with all supply
chain participant. Relation between forward and backward participants should be a
partnering relation rather than a advertised one suppliers are being motivated and
selected to supply quality raw material also. Good relationship with distributors will
enhance product acceptability at market place. In this way improvement process will
going on.
B. Improvement is never ending process:
A continual improvement process (CIP or CI), also often called a continuous improvement
process is an ongoing effort to improve products, services, or processes. These efforts can seek
"incremental" improvement over time or "breakthrough" improvement all at once. Improves
refers to perfection. Perfection is never ending process. The race is never over.
21
Business improvement process (BIP) is a holistic management approach focused on aligning all
aspects of an organization with the wants and needs of clients. It promotes business effectiveness
and efficiency while striving for innovation, flexibility, and integration with technology. BPM
attempts to improve processes continuously. It can therefore be described as a "process
optimization process." It is argued that BPM enables organizations to be more efficient, more
effective and more capable of change than a functionally focused, traditional hierarchical
management approach.
An empirical study by Kohlbacher (2009) indicates that BPM helps organizations to gain higher customer
satisfaction, product quality, delivery speed and time-to-market speed.[2] An empirical study by Vera & Kuntz
(2007) conducted in the German hospital sector indicates that BPM has a positive impact on organizational
efficiency

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TOTAL QUALITY MANAGEMENT

  • 1. 1 Question No-1: Input output Process Model Process Process is an activity or group of activities that takes one or more inputs, transforms and adds value to them and provides one more outputs for its customers. Processes are the fundamental activities that organizations use to do work and achieve their goal. Process refers to business and production activities of an organization. Business processes such as purchasing, engineering, accounting, and marking are areas where nonconformance can represent an opportunity for substantial improvement. A business process is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers. It often can be visualized with a flowchart as a sequence of activities with interleaving decision points or with a Process Matrix as a sequence of activities with relevance rules based on the data in the process. Input/output Process Model There are three very common terms that are linked to each other. They describe particular stages in information handling. They are: Input, processing and output. Inputs may be materials, money, information, data, etc. Outputs may be information, data, products, service, etc. The output of one process also can be the input to another process. Outputs usually require performance measures. They are designed to achieve certain desirable outcomes such as customer satisfaction. Feedback is provided in order to improve the process. Along with a definition, many times you will be asked to draw a diagram to show the stages. It is essential that you learn the diagram below, along with the direction of information flows. You need to be able to reproduce it exactly.
  • 2. 2 The components of the IPO model are defined as:  I: Input - The information, ideas, and resources used in creating a program  P: Processing - Actions taken upon/using input or stored material  O: Output - Results of the processing that then exit the system  S: Storage - Location(s) where material inside the system is/are placed for possible use at a later point in time The process is the interaction of some combination of people, materials, equipment, method, measurement, and the environment to produce an outcome such as a product, a service, or an input to another process. In addition to having measurement input and output, a process must have value-added activities and repeatability. It must be effective, efficient, under control, and adaptable. Process definition begins with defining the internal and/or external customers. The customer defines the purpose of the organization and every process within it. Because the organization exits to serve the customer, Process improvements must be defines in terms of increased customer satisfaction as result of higher quality products and services. OUTCOMES OUTPUT Information Data Product Service,etc PROCESS People Equipment Method Procedures Environment Materials Materials INPUT Materials Money Information Data, etc FEEDBACK
  • 3. 3 Continuous ProcessImprovement A continual improvement process (CIP or CI), also often called a continuous improvement process is an ongoing effort to improve products, services, or processes. These efforts can seek "incremental" improvement over time or "breakthrough" improvement all at once. Quality is a never ending quest and Continuous Process Improvement (CPI) is a never ending effort to discover and eliminate the main causes of problems. It accomplishes this by using small-steps improvements, rather than implementing one huge improvement. CPI means making things better. It is NOT fighting fires. Its goal is NOT to blame people for problems or failures. . . it is simply a way of looking at how we can do our work better. When we take a problem solving approach, we often never get to the root causes because our main goal is to put out the fire. Ways to improve a process There are five ways to improve a process. Now we will chronologically discuss the process improvement: 01. Reduce resources 02. Reduce errors 03. Meet or exceed expectation of downstream customers 04. Make the process safer 05. Make the process more satisfying to the person doing it. First, a process that uses more resources than necessary is wasteful. Reports that are distributed to more people than necessary wastes copying abd distribution time, material, user read time, and eventually, file space. Second, for the most part, errors are a sign of poor workmanship and require rework. Typing errors that are detected after the computer printout require opening the file, madding the correction, printing the revised document. Third, by meeting or exceeding expectations of downstream customers, the process is improved, For example, the better the weld, the less grinding required, making the appearance of a finish paint more pleasing. The fourth way a process can be improved is by making it safer. A safer workplace is a more productive one with fewer lost-time accidents and less workers compensation claims.
  • 4. 4 The fifth way to improve a process is to increase the satisfaction of the individual performing the process. Sometimes a little change, such as an ergonomically correct chair, can make a substantial change in a person’s attitude toward their work. Question No-2:The Juran Trilogy Jurandefines qualityas fitness for use interms ofdesign, conformance, availability, safety, and field use. Thus, his concept more closely incorporates the viewpoint ofcustomer. He is prepared to measure everythingand relies on systems and problem-solving techniques. Unlike Deming, he focuses on top-down management and technical methods rather than worker pride and satisfaction. Process improvement involves planning. One of the best approaches is the one developed by Dr Josep Juran. It has three components:  Planning  Control  Improvement These refer to as the Juran Trilogy. It is based loosely on financial processes such as budgeting (planning), expense measurement (control), and cost reduction (improvement). Planning The planning component begins with external customers. First, quality goals are established, marketing determines the externals customers and all organization personnel (managers, members of multifunctional teams, or work groups) determine the internal customers. Second, the customers are determined, their needs are discovered. This activity requires the customers to state needs in their own words and from their own viewpoint; however, teal needs may differ from stated needs. For example, a stated need may be an automobile, whereas the real need is transportation or a status symbol. One might discover these needs by-  Being a user of the product or service  Communication with customers through product or service.
  • 5. 5  Simulation in the laboratory. Third step in the planning process is to develop product and service features that respond to customer needs, meet the needs of the organization and its suppliers, are competitive, and optimization the cost of all stakeholders. This step typically is performed by a multifunction. Forth step is to develop the processes able to produce the product abd service features. This step is also performed by a multifunctional team with a liaison to the design team. Activities include determining the necessary facilities, training, and operation, control, and maintenance of the facilities. Final step of the planning process is the transferring plans to operations. Once again, a multifunctional team with a liaison to the other teams is used. Quality Planning Control Control is used by operating forces to help meet the product, process, and service requirements. It uses the feedback loop and consists of the following steps: 1. Determine items/subjects to be controlled and their units of measure. 2. Set goals for the controls and determine what sensors need to be put in place to measure the product, process or service. 3. Measure actual performance. 4. Compare actual performance to goals. 5. Act on the difference. Quality Control ts of measurements
  • 6. 6 Improvement The third part of trilogy aims to attain levels of performance that are significantly higher than current levels. Process improvements begin with the establishment of an effective infrastructure such as the quality council. Two of the duties of the council are to identify the improvement projects and establish the project teams with a project owner. In addition, the quality council needs to provide the teams with the resources to determine the causes, create solutions, and establish control to hold the gains. While the quality council is the driver that ensures that improvement is continuous and never ending. Process improvement can be incremental or breakthrough. Quality Improvement emedies for effective in operating conditions
  • 7. 7 The above figure provides an example of how the three continuous improvement processes interrelate. In the figure, Juran provides a distinction between sporadic waste and chronic waste. The sporadic waste can be identified and corrected through quality control. The chronic waste requires an improvement process. Question No-3:Improvement strategies There are four primary improvement strategies-repair, refinement, renovation, reinvention. Choosing the right strategy for the right situation is critical. It is also true that proper integration of the strategies will produce never ending improvement. 1. Repair: this strategy is simple – anything broken must be fixed so that it functions designed. There are two levels to this strategy. If a customer receives a damaged product, a quick fix is required. This level is a temporary or short term measures shore up the problem, they should not
  • 8. 8 become permanent. This level occurs when an individual or team identifies and I; eliminates the root cause(s) of the problem and effects a permanent solution. It is important to note that the repair strategy does not make the process better than the original design. 2. Refinement: This strategy involves activities that continually improve processes, products, and services are accomplished on an incremental basis. Refinement improves efficiency and effectiveness. It should become an integral part of every employee’s job. Both individuals and teams can use this strategy. Typically it relies on doing things just abit quicker, better, Easier or with less waste. The primary benefit of gradual change is that it produces little resistance from employees. However, because the change is so gradual, management may not be recognize and reward the affected employees. Also, minor changes may not be documented or properly communicated. 3. Renovation: This strategy results in major or breakthrough improvements. Although the resulting product, service, process or activity might often appear to be different from the original, it is basically the same. Innovation and technological advancements are key factors in this approach. For exam le, the process of drilling a hole was originally done by hand with a cranking mechanism; another renovation occurred that was brought about by the development of rechargeable electric drill is basically the same as the hand drill. Renovation is more costly than the previous strategies and is usually undertaken by teams rather than individuals. 4. Reinvention: Reinvention is the most demanding improvement strategy. It is preceded by the feeling that the current approach will never satisfy customer requirements. A new product service, process, or activity is developed using teams based on a complete understanding of the customer’s requirements and expectations. Reinvention or reengineering begins by imagining that the previous condition does not exist- in other words, a clean sheet of paper. Then the team uses in depth knowledge of the customer’s requirements and expectation ns and invents a new product, services, process or activity. For example, the process of drilling holes using lasers or water jets was a reinvention. Question No-4: Types of problems There are five types of problems in continuous process improvement which are discussed below: Compliance Unstructured Efficiency Process design Product design
  • 9. 9 The first three are performance problem and the last two are design problems that requires a new or improved design. Compliance: Compliance problems occur when a structured system having standardized inputs, process, and outputs is performing unacceptably from the user’s viewpoint. These problems are identified by comparing with standards or by feedback from the internal or external customer. Unstructured: Unstructured problems resemble compliance problems except that they are not specified by standards. The absence of standards may be due to system immaturity or to the need for flexibility in system performance. For example, an expert woodpecker adjusts her activities to the or moisture contents of the wood and customer service workers adapt their behavior to individual customers. Identification of unstructured problems is usually brought about by negative customer feedback. The major challenges are to determine customer needs and to diagnose the causes of poor performance. Because of customer variability, it is difficult to determine why a product or service was unacceptable. Organizations need to treat each customer as an individual and maintain a database on acceptable and unacceptable behavior. Efficiency:Efficiency problems occur when the system is performing unacceptability from the view point of its owners or operators. In other words, the end user is satisfied; however, the process is more costly than desired, or working conditions are not acceptable. Indentification of such problems occurs from benchmarking and operator suggestions. Process Design: Process design problems involve the development of new processes and revision of existing processes. Many business and production processes have not been well designed or have become obsolete with advantages of technology. Identification of problems is prompted by poor performance, the knowledge that we can do better , or the introduction of new of products. It requires that user needs and relevant constraints. Product Design: Product design problems involve the development of new products and the improvement of existing products. A major focus is to prevent process and the user problems by relying on customer needs. Although design work can be initiated as a result of poor product performance, problem solving usually occurs as a naturally part of a competitive environment. A major challenge is to translating, in a timely manner, user needs and constraints into product attributes and specifications, usually using quality function deployment.
  • 10. 10 Question No-5: The PDSA Cycle The concept of the PDCA Cycle was originally developed by Walter Shewhart, the pioneering statistician who developed statistical process control in the Bell Laboratories in the US during the 1930's. It is often referred to as `the Shewhart Cycle'. It was taken up and promoted very effectively from the 1950s on by the famous Quality Management authority, W. Edwards Deming, and is consequently known by many as `the Deming Wheel'. Use the PDCA Cycle to coordinate your continuous improvement efforts. It both emphasizes and demonstrates that improvement programs must start with careful planning, must result in effective action, and must move on again to careful planning in a continuous cycle. Also use the PDCA Cycle diagram in team meetings to take stock of what stage improvement initiatives are at, and to choose the appropriate tools to see each stage through to successful completion. How to use the PDCA Cycle diagram to choose the appropriate tool is explained in detail in the `How to use it' section below. The basic Plan-Do-Study-Act(PDSA) cycle was first developed by Shewhart and then modified by Deming. It is an effective improvement technique. The following figure illustrates the cycle: Figure: The PDSA Cycle The four steps in the cycle are exactly as stated. First, plan carefully what is to be done. Next, carry out the plan (do it). Third, study the results-did the plan work as intended, or were the results different? Finally, act on the results by identifying what worked as planned and what did not. Usually the knowledge learned, develop an improved pan and repeat the cycle. Act Plan Study Do
  • 11. 11 Here is what you do for each stage of the Cycle:  Plan to improve your operations first by finding out what things are going wrong (that is identify the problems faced), and come up with ideas for solving these problems.  Do changes designed to solve the problems on a small or experimental scale first. This minimizes disruption to routine activity while testing whether the changes will work or not.  Check whether the small scale or experimental changes are achieving the desired result or not. Also, continuously Check nominated key activities (regardless of any experimentation going on) to ensure that you know what the quality of the output is at all times to identify any new problems when they crop up.  Act to implement changes on a larger scale if the experiment is successful. This means making the changes a routine part of your activity. Also Act to involve other persons (other departments, suppliers, or customers) affected by the changes and whose cooperation you need to implement them on a larger scale, or those who may simply benefit from what you have learned (you may, of course, already have involved these people in the Do or trial stage). Question No-6: Problem Solving Method Process improvement achieves the greatest result when it operates the problem solving method. In the initial stage of a program, quick result are frequently obtained because the solutions are obvious or an individual has a brilliant idea. However, in the long run, a systematic approach will yield the greatest benefits. There are seven phases. The phases are intregrated because each phase is dependent upon the previous phase. Continuous process the improvement is the objective, and these phase are the framework to achieve that objective. Phase 1: Identify the opportunity: The objective of this phase problem is ti identify and prioritize opportunities for improvement. It consists of three parts: a. identify the problem b. form the team c. define the scope. Problem identification answers the question, ‘What are the problems?’ The answer leads to those problems that have the greatest potential for improvement and have the greatest need for solution. Problems can be identified from a variety of inputs, Which are-
  • 12. 12 01. Pareto analysis of repetitive external alarm signals, such as field failures, complaints, returns and others. 02. Pareto analysis of repetitive internal alarm signals 03. Proposal from suggestion schemes 04. Field study of user’s needs. 05. Data on performance of competitors 06. Comments of key people outside the organization 07. Findings and comments of government regulators and independent laboratories 08. Customer surveys 09. Employee surveys 10. Brainstorming by work groups. For a condition to qualify as a problem, the following criteria must be met; 01. Performance varies from an established standard. 02. Deviation from the perception and the facts. 03. The cause is unknown; if we know the cause, there is no problem. Act Plan Study Do Phase2 Analyze the process Phase 3 Developthe optimal solutions Phase 5 Studythe results Phase 4 Implementation Phase 7 Planfor the future Phase 6 Standardise the solutios Phase 1 Identifythe opportunity
  • 13. 13 The quality council must or work group must prioritize problems using the following criteria: 01. Is the problem is most important or less important? 02. Will problem solution contribute to the attainment of goals? 03. Can the problem be defined clearly using objective measures? The second part of phase 1 is to form a team. If the team is natural work group or one where members already work together, then this part is complete. If the the problem is of a multifunctional nature, as most are, then the team should be selected and tasked by the quality council to address the improvement of a specific process. Goals and milestone are established. If the improvement strategy is repair or refinement, an individual, rather than a team , may be assigned to work on the problem. Third part of phase 1 is to define scope. Failure in problem solving is frequently caused by poor identification of the problem. A problem well stated is half solved. Criteria for a good problem statement are as follows: 01. It clearly describes the problem as it currently exists and is easily understood. 02. It states the the effect –what is wrong, when it happens, and where it is occurring, not why it is wrong or who is responsible. 03. It focuses on what what is known, what is unknown, and what needs to be done. 04. It uses facts and is free of judgement 05. It emphasize the impact on the customer. Phase 2: Analyze the Current Process: The object of this phase is to understand the process and how it is currently performed. Key activities are to define process boundaries, outputs and customers, Inputs and suppliers, and process flow: determines level of customer satisfaction and measurements needed, gather data and identify root causes. This phase atso follow some steps: 01. The first step is for the team to develop a process flow diagram. 02. Next, the target performance measures are defined. 03. Then the collection of all available data and information. Phase 3: Developthe optimal solution: This phase has the objective of establishing potential and feasible solutions and recommending the best solutions to improve the process. Once all the information is available, the project team begins its search for possible solutions. Sometimes the solutions are quite evident from a cursory analysis of the data. In this creativity plays the
  • 14. 14 major role and brainstorming is the principal technique. Brainstorming on possible solutions requires not only a knowledge of the problem but also innovation and creativity. Phase-4:Implementation Changes: Once the best solution is selected, it can be implemented. This phase has the objective of preparing the implementation plans, obtaining approval, and implementation the process improvements. The contents of the implementation plan report must fully describe – 01. Why will it be done? 02. How will it be done 03. When will it be done. 04. Who will do it? 05. Where will it be done? Phase-5 Study the results: This phase has the objective of monitoring and evaluating the change by tracking and studuing the effectiveness of the improvement efforts through data collection and review of progress. It is vital to institutionalize meaningful change and ensure ongoing measurement and and evaluation effortsto achieve continuous improvement. Phase 6: Standardize the solution: Once the team is satisfied with the change, it must be institutionalized by positive control of the process, process certification, and operator certification. Positrol assures the important variables are kept under control. It specifies the what, who, how, where and when of the process and is an updating of the monitoring activity. Finally, operators must be certified to know what to do and how to do it for a particular process. Phase 7: Plan for the future: This phase has the objective of achieving improved levels of process performance. It is important to remember that TQM addresses the quality of management as well as the management of quality. Everyone in the organization is involved in a systematic, long term endeavour to constantly improve quality By developing process that are customer oriented, flexible and responsive.
  • 15. 15 Management must establish the system to identify areas for future improvements and to track performance with respect to internal and external customers. They must also track changing customer requirements. Question No-7: The Concept of Kaizen, Reengineering and Six sigma Kaizen Kaizon is a Japanese word for the philosophy that defines management’s role in continuously encouraging and implementing small improvements involving everyone. It is the process of continuous improvement in small increments that make the process more efficient, efficient, effective, under control, and adaptable. Improvements are usually accomplished at little or no expense, without sophisticated techniques or expensive equipment. It focuses on simplification by breaking down complex processes into their sub-processes abd then improving them. The Kaizon improvement focuses on the use of: 1. Value-added abd non-value-added work activities. 2. Muda, which refers to the seven classes of waste----over-production, delay, transportation, processing, inventory, wasted motion, and defective parts. 3. Principles of motion study and the use of cell technology. 4. Principles of materials handling and use of one-piece flow. 5. Documentation of standard operation procedures. 6. The five S’s for workplace organization, Which are five Japanese words that mean proper arrangement (Seiko), orderliness (seition), Personal cleanliness (seiketso),Cleanup(seiso), and discipline(shitsuke) 7. Visual management by means of visual display that everyone in the plant can use for better communication. 8. Just in time principles to produce only the units in the right quatities, at the right time,and with the right resources. 9. Poka-yoke to prevent or detect errors 10. Team dynamics, which include problem solving, communication skills, and conlict resolution Implementing Kaizen: 7 Conditions Point 1: Institute modern methods of training and education for all. Modern methods of on-the- job training use control charts to determine whether a worker has been properly trained and is
  • 16. 16 able to perform the job correctly. Statistical methods must be used to discover when training is complete. Point 2: Institute modern methods of supervision. The emphasis of production supervisors must be to help people to do a better job. Improvement of quality will automatically improve productivity. Management must prepare to take immediate action on response from supervisors concerning problems such as inherited defects, lack of maintenance of machines, poor tools or fuzzy operational definitions. Point 3: Fear is a barrier to improvement so drive out fear by encouraging effective two-way communication and other mechanisms that will enable everybody to be part of change, and to belong to it. Fear can often be found at all levels in an organization: fear of change, fear of the fact that it may be necessary to learn a better way of working and fear that their positions might be usurped frequently affect middle and higher management, whilst on the shop-floor, workers can also fear the effects of change on their jobs. Point 4: Break down barriers between departments and staff areas. People in different areas such as research, design, sales, administration and production must work in teams to tackle problems that may be encountered with products or service. Point 5: Eliminate the use of slogans, posters and exhortations for the workforce, demanding zero defects and new levels of productivity without providing methods. Such exhortations only create adversarial relationships. Point 6: Eliminate work standards that prescribe numerical quotas for the workforce and numerical goals for people in management. Substitute aids and helpful leadership. Point 7: Remove the barriers that rob hourly workers, and people in management, of their right to pride of workmanship. This implies, abolition of the annual merit rating (appraisal of performance) and of management by objectives. Reengineering Reengineering sometimes called Business Process Reengineering (BPR), involves a complete rethinking and transformation of key business processes, leading to strong horizontal coordination and greater flexibility in responding to changes in environment. Because work is originated around processes rather than function, reengineering often involves ashift tohorizontal structure basedonteams. Reengineering basically means starting over–throwing out all the notions of how work was done and deciding how it canbest be done now. It requires identifying customer needs and themdesigning how it canbest be done now. Itrequires identifying customer needs then designing processes and aligning people tomeet those needs. Banks and insurance companies, manufacturing and mining companies, and service companies throughout the world, all have achieved breakthroughs in speed, flexibility, innovation and quality through reengineering.
  • 17. 17 According to the authors of the book, “Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements incritical, contemporary measures ofperformance suchas cost, quality, service and speed. Reengineering is done by analyzing and redesigning of workflow within and between enterprises. engineering reached its heyday in the early 1990′s when Michael Hammer and James Champy published their best-selling book,“Reengineering the Corporation” The authors promoted the idea that sometimes radical redesign and reorganization of anenterprise (wiping the slate clean) was necessary tolower costs and increase quality of service. The Work Reengineering Tool Set These improvement objectives are typically accomplished through the creative application of a variety of industrial engineering principles, information technologies, and advanced management practices. Borrowing from traditional industrial science, eastern manufacturing philosophies, and a variety of other sources, Work Reengineering employs a variety of principles and techniques to achieve its goals. Nearly 30 such principles have been documented including: • Mistake Proofing • Visual Control Systems • Outcome Orientation • Process Standardization • Visible Process Flow Demand Pull Processing Statistical Process Control Employee Involvement • Work Flow Balancing • Synchronized Scheduling As the concept of Work Reengineering has matured, comprehensive methodologies have begun to emerge incorporating elements such as process analysis, benchmarking, opportunity identification, stretch targeting, process redesign, and implementation activities. A number of helpful tools have also been incorporated such as process mapping, stakeholder analysis, problem solving techniques, and value-added analysis. Six sigma In 1999, M. Harry and R. Schroeder published Six Sigma: The Breakthrough Management Strategy Revolutionizing the World’s Top Corporations. Six Sigma is a powerful approach to improving processes to do things better, faster, and at lower cost. It can be applied to every facet of business, from production, to human resources, to order entry, to technical support.
  • 18. 18 Six Sigma is a relatively new concept as compared to Total Quality Management (TQM). However, when it was conceptualized, it was not intended to be a replacement for TQM. Both Six Sigma and TQM have many similarities and are compatible in varied business environments, including manufacturing and service industries. While TQM has helped many companies in improving the quality of manufactured goods or services rendered, Six Sigma has the potential of delivering even sharper results. Six Sigma methods have their roots in Motorola's quality improvement efforts in the late 1980s. That effort was a major contributor to Motorola being one of the first Malcolm Baldrige winners in 1988. In the 1990's Six Sigma achieved popular appeal as a result of the success General Electric and Allied Signal (now Honeywell) had implementing Six Sigma concepts. While the name "Six Sigma" has taken on a broader meaning, the fundamental purpose of Six Sigma is to improve processes such that there are at least six standard deviations between the worst case specification limit and the mean of process variation. For those of us that are statistically challenged, that means the process is essentially defect free! The tools of Six Sigma are not new. Most of them are the same basic tools used by Quality Improvement Teams in the 1970s and early 80s. Six Sigma does have a catchy name and titles like "Black Belts," but its real value is in the systematic approach to improvement. The DMAIC process is a variation of PDCA that many people find helpful. There is no doubt about it, Six Sigma can help organizations improve processes. On the other hand, many Six Sigma program managers complain that projects are all over the map. How can they make sure people are "working on the right things?" The best approach is to align Six Sigma projects with the organization's strategic business plan. When Six Sigma projects are aligned with the organization's strategic direction, breakthrough results can be realized. For Motorola, the originator of Six Sigma, the answer to the question "Why Six Sigma?" was simple: survival. Motorola came to Six Sigma because it was being consistently beaten in the competitive marketplace by foreign firms that were able to produce higher quality products at a lower cost. When a Japanese firm took over a Motorola factory that manufactured Quasar television sets in the United States in the 1970s, they promptly set about making drastic changes in the way the factory operated. Under Japanese management, the factory was soon producing TV sets with 1/20th the number of defects they had produced under Motorola management. They did this using the same workforce, technology, and designs, making it clear that the problem was Motorola's management. Eventually, even Motorola's own executives had to admit "our quality stinks."
  • 19. 19 Some argue that many of the tools Six Sigma uses are not new. However, while Six Sigma uses conventional methods, its application is anything but conventional. Instead it stresses the importance of searching for a new way of thinking and doing. In fact, Six Sigma defines a clear road map to achieve Total Quality: 1. Leadership Commitment: Top management not only initiates Six Sigma deployment, it also plays an active role in the whole deployment cycle. Six Sigma starts by providing senior leadership with training in the principles and tools it needs to direct the development of a management infrastructure to support Six Sigma. This involves reducing the levels of organizational hierarchy and removing procedural barriers to experimentation and change. 2. Customer Focus: Systems are developed for establishing close communications with “external customers” (direct customers, end-users, suppliers, regulatory bodies, etc), and with internal customers (employees). From upstream suppliers to ultimate end-users, Six Sigma eliminates the opportunities for defects. 3. Strategic Deployment: Six Sigma targets a small number of high-financial leveraged items. It focuses the company’s resources: right support, right people, right project, and right tools, on identifying and improving performance metrics that relate to bottom-line success. 4. Integrated Infrastructure: The Leadership Team defines and reviews project progress. The Champion acts as a political leader and removes the barriers for the project team. The Master Black Belt acts as a technical coach and provides in-depth knowledge of quality tools. The Black Belt controls the project while the Green Belt supports the Black Belt - together they form the Six Sigma Project Teams. In addition, the incentive and recognition systems motivate the project teams to achieve the business goals. 5. Disciplined Framework: Six Sigma projects are Implemented using the Measure, Analyze, Improve and Control disciplined road map. This MAIC discipline sets up a clear protocol to facilitate internal communication. In addition, from a business perspective, Six Sigma is also a framework for continuous business improvement. 6. Education and Training: Six Sigma believes that true commitment is driven by true understanding. As a fact-based methodology, it intensively utilizes quality and statistical tools to transform a practical problem to a practical solution. Thus, a top-to-bottom training is conducted in Six Sigma philosophy and system improvement techniques for all levels.
  • 20. 20 Question No-8:Two basic issues of continuous process improvement There are two basic issues in continuous process improvement which are: A. Excellency in everywhere in the organization B. Improvement is never ending process A. Excellency in everywhere in the organization A list of process is found within the organization. Continuous process improvement strive to improve all the process within the entire organization is- 1. Greater emphasis of business process. 2. Greater emphasis on production activities. Business process refers to the purchasing, engineering accounting and marketing areas. All the departments and units of an organization should be continually improved. If one department don’t work well and others not. The overall improvement will hampered. All the personnel in different department must be trained in TQM. They have to make them understand that you come to work not only to do your jobs but also to think about how to improve your jobs. There must be a continual striving to improve all the production process to improve all the production process. There should be established good relation with all supply chain participant. Relation between forward and backward participants should be a partnering relation rather than a advertised one suppliers are being motivated and selected to supply quality raw material also. Good relationship with distributors will enhance product acceptability at market place. In this way improvement process will going on. B. Improvement is never ending process: A continual improvement process (CIP or CI), also often called a continuous improvement process is an ongoing effort to improve products, services, or processes. These efforts can seek "incremental" improvement over time or "breakthrough" improvement all at once. Improves refers to perfection. Perfection is never ending process. The race is never over.
  • 21. 21 Business improvement process (BIP) is a holistic management approach focused on aligning all aspects of an organization with the wants and needs of clients. It promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. BPM attempts to improve processes continuously. It can therefore be described as a "process optimization process." It is argued that BPM enables organizations to be more efficient, more effective and more capable of change than a functionally focused, traditional hierarchical management approach. An empirical study by Kohlbacher (2009) indicates that BPM helps organizations to gain higher customer satisfaction, product quality, delivery speed and time-to-market speed.[2] An empirical study by Vera & Kuntz (2007) conducted in the German hospital sector indicates that BPM has a positive impact on organizational efficiency