Quality Management

QUALITY - AN
INTRODUCTION
Lesson 1

Definition of quality
 There is no definition for quality, definition can
only be perceived.
 But could be these options:
1. Conformance to specifications.
2. Fitness for use.
3. Value for Price paid.

Questionnaires on Definitions of Quality:
 1. Performance:
 Will the product/service do the intended job?
 2. Reliability:
 How often does the product/service fail?
 3. Durability:
 How long does the product/service last?
 4. Serviceability:
 How easy to repair the product / to solve the problems in service?

Related definitions
 Quality assurance:
 The maintenance of a desired level of quality in a service or product,
especially by means of attention to every stage of the process of delivery or
production.
 Quality control:
 A system of maintaining standards in manufactured products by testing a
sample of the output against the specification.
 Quality management:
 The act of overseeing all activities and tasks needed to maintain a desired
level of excellence.

Quality need
 First used for industry.
 For improvements, solving customers problems, needs, satisfaction.
 With proper decision-making and problem-solving.
 To keep the industry success and alive for several years.
 Now it is used in education as well.

Quality gurus
Walter A. Shewhart - Contributed to understanding of process variability.
- Developed concept of statistical control charts.
W.Edwards Deming - Stressed management’s responsibility for quality.
- Developed “14 Points” to guide companies in quality
improvement.
Joseph M. Juran - Defined quality as “fitness for use.”
- Developed concept of cost of quality.
Armand V.Feigenbaum - Introduced concept of total quality control.
Philip B. Crosby - Coined phrase “quality is free.”
- Introduced concept of zero defects.
Kaoru Ishikawa - Developed cause -and-effect diagrams.
- Identified concept of “internal customer.”
Genichi Taguchi - Focused on product design quality.
- Developed Taguchi loss function.

DIMENSIONS OF MANUFACTURING AND
SERVICES QUALITY
Dimensions of Quality for Manufacturing versus Service Organizations:
Manufacturing Organizations Service Organizations
Conformance to specifications Tangible factors
Performance Consistency
Reliability Responsiveness to customer needs
Features Courtesy/friendliness
Durability Timeliness/promptness

Quality planing
 1. Set up a long-term goal or mission.
 2. Define a vision statement, i.e. value system of the organization guiding
everyone in the organization.
 3. Break up the mission statement into annual short-term goals or objectives
which should be ‘SMART’, i.e. Specific, Measurable, Attainable, Realistic and Time
bound.
 4. Identify customers who will help the organization to achieve the goals.
 5. Discover their needs.
 6. Develop product features responding to customer needs.
 7. Establish product goals.
 8. Develop systems and processes to produce these product features.
 9. Prove process capability and hand over to production, i.e. develop the plan at
operating level.

QUALITY COSTS AND ANALYSIS
TECHNIQUES OF QUALITY COSTS
Costs of Quality
Prevention Costs. Costs of preparing and implementing a
quality plan.
Appraisal costs. Costs of testing, evaluating, and
inspecting quality.
Internal failure costs. Costs of scrap, rework, and material
losses.
External failure costs. Costs of failure at customer site,
including returns, repairs, and recalls.

TECHNIQUES OF QUALITY COSTS
DETERMINATION
analyses of the
tendency and
the Pareto
analyses
Pareto diagram
Left side
few vital
Right side
many useful
for quality costs
guaranteed by
the operator
determine the
opportunity to
improve the
quality.

QUALITY AND
COMPETITIVE
ADVANTAGE
Lesson 2

3 levels of quality
1. Evaluate and summarize overall quality management at the organization
level
2. Evaluate and summarize quality management at the process level
3. Evaluate and describe quality management at the performer level

Quality Performance Communication
Plan
1. Discuss and include types of reports that will be part of the overall
communications plan
2. Describe who and how often communications will occur for quality assurance
activities
3. Identify final closure process on resolved quality assurance issues.

Definition of advantage of competitive
quality
A condition or circumstance that puts
a company in a favorable or superior
business position.

Resource-based vs. positional view of
advantage
Advantage
resource-based view
The firm as its primary
source of advantage
ore competencies,
distinctive
competencies, dynamic
capabilities, and
organization evolution.
positional view.
that position within an
industry is the source
of advantage

Competitive advantage
 Advantage is not nullified through competing firms duplicating the benefits of that
competitive advantage.
 To have the potential of sustained competitive advantage, a firm resource must have four
attributes:
1. It must be valuable, in the sense that it exploit opportunities
2. neutralizes threats in a firm's environment.
3. It must be rare among a firm's current and potential competition.
4. It must be imperfectly imitable. This can be due to three reasons:
1) The ability of a firm to obtain a resource is dependent upon unique historical conditions.
2) 2) The link between the resources possessed by a firm and a firm's sustained competitive
Advantage is causally ambiguous.
3) 3) The resource generating a firm's advantage is socially complex, such as cultural factors

Demand-based perspective of
competitive advantage
the effects of decreasing marginal utility and consumer heterogeneity
across market segments
affect the sustainability of competitive advantage
hrough shifts in consumer willingness to pay

The Principle of Competitive Advantage
inventing
an offering
a real
scarcity in
the world
charging a
price
inventing a
way of
making it
available
cheap
enough to
leave a
high margin
Succes

Sources of Competitive AdvantageSpecialization
With its division of
labour, produces
economies of scale.
Specialization can
overrun its usefulness
Capabilities
Capabilities, intrinsic
capabilities, or
distinctive capabilities
include secrets of
value, established
business networks,
brands, general
management skills,
and engineering
competency,
innovation

Indicator of Competitive Advantage
Profitability
increases
Cost of
capital
lowers

Elements of Competitive Advantage, Kay
(2004)
Uniqueness
•unique opportunities and solutions is about imagination, insight, foresight, and the courage to pursue it
Strategic Focus:
•eveloping a longer view of competitive advantage with a combination of purpose, competency, and value proposition.
Strategic Intent/Vision/BHAGs
•Strategic intent challenges and guides the organization to achieve the unachievable
Innovation
•is inventiveness put into profitable practice.
Continual Innovation:
•Making innovation as an on-going process on all fronts.
Democratic Principles
•Broad and diverse participation improves innovation
Strategic Management as a self-improving learning process:
•a learning and self-improvement process for the organization
Dynamic Capabilities
•the capability to produce and utilize new capabilities on a continuous basis

competitive vs. comparative advantage
competitive comparative

Framework for competitive advantage
1. the pool of inputs,
2. skills and knowledge they can draw upon,
3. the goals that condition investment,
4. and the pressures on the firm to act

orces needed to keep progressing
Factor conditions: general,
specialized, generic, local,
global, natural resources,
labor
Firm strategy, structure,
and rivalry: intensity of
competition, susceptibility
to substitutes, actual
rivalry, potential rivalry.
Demand conditions:
customer demands,
sophistication, fickleness
Related and supporting
industries: suppliers,
customers, synergy,
dependency

Reference collected from Porter (1991)
 Success requires the choices of:
 •A relatively attractive position given industry structure
 •The firm's circumstances
 •The positions of competitors
 •Bringing all the firm's activities into consistency with the chosen position.

Drivers of competitive advantage in an
activity
 •Scale
 •Cumulative learning in the activity
 •Linkages between the activities and others
 •The ability to share the activity with other business units
 •The pattern of capital utilization in the activity over the relevant cycle
 •The activity's location
 •The timing of investment choices in the activity
 •The extent of vertical integration in performing the activity
 •Institutional factors affecting how an activity is performed such as government
regulations
 •The firm's policy choices about how to configure the activity independent of other
drivers.
 •Solving the longitudinal problem of strategy, getting to an operational understanding
of competitive advantage

Deming philosophy
 By adopting appropriate principles of management, organizations can
increase quality and simultaneously reduce costs (by reducing waste, rework,
staff attrition and litigation while increasing customer loyalty). The key is to
practice continual improvement and think of manufacturing as a system, not
as bits and pieces

JURAN PHILOSOPHY
1. Quality Planning,
2. Quality Control
3. and Quality Improvement.

Quality Planning
 he quality planning phase is the activity of developing products and processes to
meet customers’ needs. involves building an awareness of the need to improve,
setting goals and planning for ways goals can be reached. This begins with
management’s commitment to planned change. It also requires a highly trained
and qualified staff. It deals with setting goals and establishing the means required
to reach the goals. Below are the steps in the quality planning process:
 Establish quality goals
 Identify the customers: those who will be impacted by the efforts to meet the
goals
 Determine the customer’s needs
 Develop processes that can produce the product to satisfy customers’ needs and
meet quality goals under operating conditions.
 Establish process controls, and transfer the resulting plans to the operating forces

Quality Control
 This process deals with the execution of plans and it includes monitoring
operations so as to detect differences between actual performance and goals.
means to develop ways to test products and services for quality. Any deviation
from the standard will require changes and improvements. It is outlined with
three steps:
 Evaluate actual quality performance
 Compare actual performance to quality goals
 Act on the difference

Quality Improvement
 It is a continuous pursuit toward perfection. Management analyses processes
and systems and reports back with praise and recognition when things are
done right This is the process is for obtaining breakthrough in quality
performance, and it consists of several steps:
 Establish the infrastructure needed to secure annual quality improvement
 Identify the specific needs for improvement- the improvement projects
 Establish project teams with clear responsibility for bringing the project to a
successful conclusion
 Provide the resources, motivation, and training needed by the teams to-
diagnose the cause, stimulate establishment of remedies, and establish
controls to hold the gains.

THE CROSBY PHILOSOPHY
 Doing It Right the First Time, was his answer to the quality crisis. He defined
quality as full and perfect conformance to the customers' requirements. The
essence of his philosophy is expressed in what he called the Absolutes of
Quality Management and the Basic Elements of Improvement.

The Absolutes of Quality Management
 Crosby defined Four Absolutes of Quality Management, which are
 The First Absolute: The definition of quality is conformance to requirements
 The Next Absolute: The system of quality is prevention
 The Third Absolute: The performance standard is zero defects
 The Final Absolute: The measurement of quality is the price of non-
conformance

Zero Defects
 Crosby's Zero Defects is a performance method and standard that states that
people should commit themselves to closely monitoring details and avoid
errors. By doing this, they move closer to the zero defects goal. According to
Crosby, zero defects was not just a manufacturing principle, but was an all-
pervading philosophy that ought to influence every decision that we make.
Managerial notions of defects being unacceptable and everyone doing ‘things
right the first time’ are reinforced.

ACCEPTANCE SAMPLING TECHNIQUES
 Acceptance sampling is a form of inspection that is applied to lots or batches
of items either before or after a process.
 The lots represent incoming purchased items or final products awaiting
shipment to warehouses or customers.
 PURPOSE
 The purpose of acceptance sampling is to decide whether a lot satisfies
predetermined standards (specifications) for important characteristics of the
item

Acceptance sampling
 uses statistical sampling to determine whether to accept or reject a
production lot of material. It has been a common quality control technique
used in industry. It is usually done as products leaves the factory, or in some
cases even within the factory

Single-Sampling Plans
 A sampling plan in which a decision about the acceptance or rejection of a lot
is based on a single sample that has been inspected is known as asingle
sampling plan.
 A single sampling plan requires the specification of two quantities which are
known as parametersof the single sampling plan. These parameters are
 n–size of the sample, and
 c–acceptance number for the sample.

Double-Sampling Plans
 Double and multiple sampling plans were invented to give a questionable lot
another chance. For example, if in double sampling the results of the first
sample are not conclusive with regard to accepting or rejecting, a second
sample is taken.

Multiple sampling plan
 Multiple sampling is an extension of double sampling. It involves inspection
of 1 to successive samples as required to reach an ultimate decision. Mil-Std
105D suggests is a good number. Multiple sampling plans are usually
presented in tabular form. Procedure for multiple sampling.

Early history
 Increase in international trade during the 1980s created a need for the
development of universal standards of quality
 In 1987 the International Organization for Standardization (ISO) published its
first set of standards for quality management called ISO 9000
 By receiving ISO 9000 certification, companies demonstrate that they have
met the standards specified by the ISO. The standards are applicable to all
types of companies and have gained global acceptance.

ISO 9000-2000
 In December 2000 the first major changes to ISO 9000 were made, introducing
the following three new standards

Acquiring ISO
 To receive ISO certification, a company must provide extensive
documentation of its quality processes.
 Monitor quality, methods and frequency of worker training, job
descriptions, inspection programs, and statistical Process-control tools used
 The company is then audited. If the registrar finds that all is in order,
certification is received.
 The entire process can take 18 to 24 months and can cost anywhere from
$10,000 to $30,000.
 Companies have to be recertified by ISO every three years.

INTRODUCTION TO
TOTAL QUALITY
MANAGEMENT
Lesson 5

Concept
 The standard of something as measured against other things of a similar kind;
the degree of excellence of something.
 1. Quality Management (QM)
 2. Quality Assurance (QA)
 3. Quality Control (QC)

Historical review
 In the 1940s, during World War II, quality became more statistical in nature.
 In the 1960s, with the help of so-called “quality gurus,” the concept took on a
broader meaning. Quality began to be viewed as something that encompassed
the entire organization.
 The meaning of quality for businesses changed dramatically in the late 1970s.
Before then quality was still viewed as something that needed to be inspected
and corrected.
 The 1970s and 1980s many U.S. industries lost market share to foreign
competition.
 ince the 1970s, competition based on quality has grown in importance and has
generated tremendous interest, concern, and enthusiasm.

framework
 Meeting and exceeding customer expectations by involving everyone in the
organization through an integrated effort. Total quality management (TQM) is
an integrated organizational effort designed to improve quality at every level.
 PHILOSOPHY
 Empower all employees to seek out quality problems and correct them.
 TEAMS
 The contributions of teams are considered vital to the success of the
company.
 Teams vary in their degree of structure and formality, and different types of
teams solve different types of problems.

Quality circle team
 One of the most common types of teams is the quality circle, a team of
volunteer production employees and their supervisors whose purpose is to
solve quality problems. The circle is usually composed of eight to ten
members, and decisions are made through group consensus. The teams
usually meet weekly during work hours in a place designated for this purpose.
They follow a pre-set process for analyzing and solving quality problems

TQM vs CONVENTIONAL QUALITY
MANAGEMENT
Empower all employees
to seek out quality
problems and correct
them.
Employees were afraid to
identify problems for
fear that they would be
reprimanded.

BENEFITS AND COSTS OF TQM
Appraisal costs
• Incurred in the process of
uncovering defects.
• Include the cost of quality
inspections, product testing,
and performing audits.
• The costs of worker time
spent measuring quality and
the cost of equipment used
for quality appraisal.
Internal failure costs
• Discovering poor product
quality before the product
reaches the customer site.
• Rework, which is the cost of
correcting the defective
item.
• The item is so defective that
it cannot be corrected and
must be thrown away.

BARRIERS TO TQM IMPLEMENTATION
 Other decisions within operations management.
 Dictates how all other areas of operations management will support this
commitment.
 Needs to incorporate customer-defined quality.
 Job design is affected.
 Supply chain management is affected.

TQM gurus
GURUS
Deming by adopting appropriate principles of management, organizations can increase quality and simultaneously
reduce costs (by reducing waste, rework, staff attrition and litigation while increasing customer loyalty).
The key is to practice continual improvement and think of manufacturing as a system, not as bits and
pieces
Juran Joseph Juran is one of the leading thinkers on the route establishing a culture of quality throughout
much of Japanese and then western business. He asserted that quality was nothing new or clever. Rather,
it is elemental and elementary.
Crosby Crosby, based on his idea of “doing it right the first time” (DIRFT), enumerated four fundamental
principles for quality management. And on these four fundamental principles, he developed his fourteen
steps to achieve a continuous improvement of quality.
PDSA Step 1: Plan—Plan the test or observation, including a plan for collecting data
Step 2: Do—Try out the test on a small scale
Step 3: Study—Set aside time to analyze the data and study the results
Step 4: Act—Refine the change, based on what was learned from the test
5s Is a standardized process that when properly implemented creates and maintains an organized, safe,
clean and efficient workplace
Kaizen Small, ongoing positive changes can reap major improvements. Based on cooperation and commitment.

CONTRIBUTIONS OF
Other contributions
Walter A. Shewhart Bringing a process into a state of statistical control would allow the
distinction between assignable and chance cause variations. By
keeping the process in control, it would be possible to predict future
output and to economically manage processes. This was the birth of
the modern scientific study of process control.
Dr. Armand V.
Feigenbaum
is an effective system for integrating the quality development, quality
maintenance, and quality improvement efforts of the various groups in
an organization so as to enable production and service at the most
economical levels which allow full customer satisfaction.

Total quality elements
 The elements of total quality to enable a totally customer focus (internal and
external)
 •Quality is the customer’s perception of what quality is, not what a company
thinks it is.
 •Quality and cost are the same no different.
 •Quality is an individual and team commitment.
 •Quality and innovation are interrelated and mutually beneficial.
 •Managing Quality is managing the business.
 •Quality is a principal.
 •Quality is not a temporary or quick fix but a continuous process of improvement.
 •Productivity gained by cost effective demonstrably beneficial Quality investment.
 •Implement Quality by encompassing suppliers and customers in the system.

Japanese pioneers
Pioneers
Ishikawa The technique uses a diagram-based approach for thinking through
all of the possible causes of a problem. This helps you to carry out a
thorough analysis of the situation.
Taguchi Design as "off-line quality control" because it is a method of
ensuring good performance in the design stage of products or
processes. Some experimental designs, however, such as when used
in evolutionary operation, can be used on-line while the process is
running.
Taiichi
Onho
Seven wastes.
Shingo
Shingo
Is a management exercise in which enterprise leaders use various
methodologies to analyze their procedures to identify areas where
they can improve accuracy, effectiveness and/or efficiency and then
redesign those processes to realize the improvements.

Seven wastes
 Ohno was also instrumental in developing the way organizations identify
waste, with his "Seven Wastes" model which have become core in many
academic approaches. These wastes are:
 1. Delay, waiting for time spent in a queue with no value being added
 2. Producing more than you need
 3. Over processing or undertaking non-value added activity
 4. Transportation
 5. Unnecessary movement or motion
 6. Inventory
 7. Production of Defects

PRINCIPLES OF TQM–I
Lesson 7

LEADERSHIP
DEFINITIONS
[Chemers MM 2002 Process of social influence in which one person can enlist the aid and
support of others in the accomplishment of a common task.
Alan Keith Leadership is ultimately about creating a way for people to
contribute to making something extraordinary happen.
Ken "SKC" Ogbonnia Effective leadership is the ability to successfully integrate and
maximize available resources within the internal and external
environment for the attainment of organizational or societal goals.
Ann Marie E.
McSwain
Leadership is about capacity: the capacity of leaders to listen and
observe, to use their expertise as a starting point to encourage
dialogue between all levels of decision-making, to establish processes
and transparency in decision-making, to articulate their own values
and visions clearly but not impose them. Leadership is about setting
and not just reacting to agendas, identifying problems, and initiating
change that makes for substantial improvement rather than managing
change

CUSTOMER SATISFACTION
Customers want to get their money's worth from a product or service.
Users If the user of the product is different than the purchaser, then
both the user and customer must be satisfied, although the
person who pays gets priority.
Company
philosophy
Providing them value for what they buy and the quality they
expect will get more repeat business.
Internal
customers
A worker provides a product or service to his or her
supervisors. If the person has any influence on the wages the
worker receives, that person can be thought of as an internal
customer.
Chain of
customers
Each improving a product and passing it along until it is finally
sold to the external customer.
Satisfy the
supplier
Which is the person or organization from whom you are
purchasing goods or services
External Providing them with clear instructions and requirements and

EMPLOYEE AND INVOLVEMENT
Keep workers happy and productive
Get better work The reason to do this is to get more productivity out of
the workers, as well as to keep the good workers.
Empower workers To allow them to make decisions on things that they can
control.
Continuous
improvement
You can never be satisfied with the method used,
because there always can be improvements.
Working smarter, not
harder
Some companies have tried to improve by making
employees work harder. This may be counter-productive.
Worker suggestions They can provide suggestions on how to improve a
process and eliminate waste or unnecessary work.
Quality methods such as just-in-time production, variability reduction,
and poka-yoke that can improve processes and reduce
waste

Leadership
DEFINITION
Chemers MM 2002] Process of social influence in which one person can enlist the aid and
support of others in the accomplishment of a common task.
Alan Keith Leadership is ultimately about creating a way for people to
contribute to making something extraordinary happen.
Ken "SKC" Ogbonnia Effective leadership is the ability to successfully integrate and
maximize available resources within the internal and external
environment for the attainment of organizational or societal goals.
Ann Marie E.
McSwain
Leadership is about capacity: the capacity of leaders to listen and
observe, to use their expertise as a starting point to encourage
dialogue between all levels of decision-making, to establish processes
and transparency in decision-making, to articulate their own values
and visions clearly but not impose them. Leadership is about setting
and not just reacting to agendas, identifying problems, and initiating
change that makes for substantial improvement rather than managing
change.

CONTINUOUS PROCESS IMPROVEMENT
 The set of on-going systems engineering and management activities used to
select, tailor, implement, and assess the processes used to achieve an
organization goals.
 STATE-OF-THE-ART
 State-of-the-art refers to the highest level of general development, as of a
device, technique, or scientific field achieved at a particular time. It also
refers to such a level of development reached at any particular time as a
result of the common methodologies employed at the time.

Supplier and Partnership
 A strategic alliance is when two or more businesses join together for a set
period of time.
 Alliance means "cooperation between groups that produces better results that
can be gained from a transaction.
 ‘’A strategic alliance is a partnership between firms whereby resources,
capabilities and core competences are combined to pursue mutual interests.“
 Non-equity strategic alliances, equity strategic alliances, and joint ventures
are the three basic types of strategic alliances.

MEASURES OF PERFORMANCE
 For superior results you can't simply call each other partners. You must
function as partners. Alliances go beyond doing things between firms that
become transactions afterwards – like licensing, co-locating resources,
starting to outsource, or trading a lower price for a longer term. Such tactics
may be involved in alliances; alone they produce one-time gain. In an
alliance, continued creativity leads to regular improvement, outperforming
what any single change can do.

Before entering a strategical alliance
 Define expected outcomes from the relationship for all the parties in the
strategic alliance.
 Define and document the elements provided by each party, and the benefits a
successful alliance brings to each.
 Identify the results that will cause the alliance to be most beneficial for your
business and define the structure and operating issues that need to be
addressed to achieve these results.
 Protect your company's intellectual property rights through legal agreements
and restrictions when transferring proprietary information.
 Define the basics of how you will operate.

EVOLUTION OF TOTAL
QUALITY
Lesson 9

Total quality management history
 A term coined by the Naval Air Systems Command to
describe its Japanese-style management approach to
quality improvement.
 An umbrella methodology for continually improving the
quality of all processes.

Kaizen
Principles Good processes bring good results
Go see for yourself to grasp the current situation
Speak with data, manage by facts
Take action to contain and correct root causes of problems
Work as a team
Kaizen is everybody’s business

Total productive maintenance
 In industry, total productive maintenance is a system of
maintaining and improving the integrity of production and
quality systems through the machines, equipment,
processes, and employees that add business value to an
organization

Meaning
 It aims to radically transform the organization through progressive changes in the attitudes,
practices, structures, and systems.
 Meanings by by the US Naval Air:
 (1) commitment and direct involvement of highest-level executives in setting quality goals and
policies, allocation of resources, and monitoring of results;
 (2) realization that transforming an organization means fundamental changes in basic beliefs and
practices and that this transformation is everyone's job;
 (3) building quality into products and practices right from the beginning;
 (4) understanding of the changing needs of the internal and external customers, and stakeholders,
and satisfying them in a cost effective manner;
 (5) instituting leadership in place of mere supervision so that every individual performs in the best
possible manner to improve quality and productivity, thereby continually reducing total cost;
 (6) eliminating barriers between people and departments so that they work as teams to achieve
common objectives; and
 (7) instituting flexible programs for training and education, and providing meaningful measures of
performance that guide the self-improvement efforts of everyone involved

Statistical Quality Control basics
 Statistical quality control refers to the use of statistical methods in the
monitoring and maintaining of the quality of products and services. One
method, referred to as acceptance sampling, can be used when a decision
must be made to accept or reject a group of parts or items based on the
quality found in a sample. A second method, referred to as statistical process
control, uses graphical displays known as control charts to determine whether
a process should be continued or should be adjusted to achieve the desired
quality.

Quality tools and techniques
Gap analysis
A gap analysis is a
technique used to assess
the differences between
the current and desired
performance levels of a
company's
Homologation
Homologation is the
certification of a product
to indicate that it meets
regulatory standards

QUALITY IMPROVEMENT AND TOTAL
EMPLOYEE INVOLVEMENT 1
• A system for direct participation of employees to
organizational success, by letting them take responsibilities.
• Enables everyone-deeply involved, using own brain power, in
problem solving, learning, continuous improvement
activities.
• TQM principles & strategies pertaining to employee
involvement are: • Motivation• Team work• Training &
mentoring• Recognition & Rewards• Performance appraisal &
feedback• Empowerment.
• Behavioural pattern of employees in an organization Self-
actualized 10 % Fence sitters 80% Difficult to improve 10 % .
Total
employee
involvement

• Motivation: Internal and external forces and influences that drive an individual to
achieve certain-goals.
• Theory ‘X’: (Sigmund Frend) This theory assumes that the employees cannot be
trusted and they have to be supervised all the time. Theory X characterizes
employees as follow-on Avoid work No ambition No initiative do not take
responsibilities Needs security
• Theory ‘Y’: (Douglas MC Gregor) According to this theory employees seek
freedom to do difficult and challenging jobs, all by themselves. Theory Y
characterizes employees as follow: o Want to learn Work is a natural activity
Have self-discipline Develop themselves Have self confidence
• Theory ‘Z’: (Abraham Maslow) Abraham Maslow believes that good qualities are
inherent in people at least at birth, although later on they are gradually lost. He
believes that five basic human needs that motivate the employees are: o Self-
actualization need so esteem need-so Love needs Safety need-so Physiological
needs
Total
employee
involvement

• 9. Team Work: • “Together every one achieves more”•
Team work is not a natural human function• Management
role in enabling team work• Use of Quality circles
• 10. Training & Development: • Necessity for orientation
training: Training enables employees in understanding
Objectives of the organization His roles His
responsibilities His authority Familiarity in understanding
nature of job• Experienced recruits need more
orientation• Training is not a onetime activity
Total
employee
involvement

Jit manufacturing and lean
manufacturing through waste
elimination
Lesson 10

What is JIT?
 It works on a demand-pull basis, contrary to
hitherto used techniques, which worked on a
production-push basis.

SIX sigma tool
 10 tools:
 Tool #1 - The Critical to Quality (CTQ) Tree.- is used during the design phase of
DMAIC to brainstorm and validate the needs and requirements of the customer.
 Tool #2 - The Process Map: During the Define phase, the project team creates the
first of several process maps. A process map is a picture of the current steps in the
process targeted for improvement. A process map (SIPOC)has five major categories
of work from
 the identification of the suppliers of the process,
 the inputs the suppliers provide,
 the name of the process,
 the output of the process, and
 the customers of the process.

SIX sigma tool
 Tool #3 - The Histogram: used during the Analysis stage of DMAIC. The project
team reviews data collected during the Measure stage of DMAIC. Data is of
two types –
 Discrete data (go/no go, fail or pass) and
 Continuous data (time, height etc.).
 Tool #4 - The Pareto Chart Histogram is useful for continuous data, same way
when the data is discrete; most teams create a Pareto chart. Discrete data is
counted data - go/no-go, off/on, yes/no, and defect/no defect type data.
 Tool #5 - The Process Summary Worksheet The goal of a Six Sigma project
team is to improve effectiveness and efficiency. Efficiency is measured in
terms of cost, time, labour, or value. The process summary worksheet is a
"roll-up" of the sub process map indicating which steps add value in the
process and which steps don't add value

SIX sigma tool
 Tool #6 - The Cause-Effect Diagram.- This tool captures all the ideas of the project team relative to
what they feel are the root causes behind the current sigma performance and finally help in finding
a root cause of the problem.
 Tool #7 - The Scatter Diagram.- Once ideas have been prioritized after use of the cause-effect
diagram, the most important thing the project team does is to validate the remaining ideas with
fact and data. The scatter diagram takes an idea about root causation and tracks corresponding
data, in the response the team is trying to improve. The team can validate an idea about root
causation through one of the three methods. Using basic data collection, a designed experiment, or
through the scatter diagram.
 Tool #8 - The Affinity Diagram is used to help sort and categorize a large number of ideas into major
themes or categories. It is especially useful when the team is ready to brainstorm solutions in the
Improve stage of DMAIC.
 Tool #9 - The Run Chart.- We have discussed the histogram and Pareto chart. Think of both of these
tools as similar to a camera where a snapshot of the process has been taken. But the run chart is
similar to a camcorder, recording some process element over time.
 Tool #10 - The Control Chart Similar to a run chart, a control chart uses the data from a run chart to
determine the upper and lower control limits. Control limits are the expected limits of variation
above and below the average of the data. These limits are mathematically calculated and indicated
by dotted lines.

Quality circles
 A quality circle is composed of a group of employees (usually 5 to 15 people)
who are members of a single work unit, section, or department.
 The unit’s supervisor or manager is usually included as member of the quality
circle.
 These employees have a common bond; they perform similar service or
function by turning out a product, part of a product, or a service.
 Membership in a quality circle is almost always voluntary.
 The basic purpose of a quality circle is to discuss quality problems and to
generate ideas that might help improve quality.

Statistical process control
 The seven major tools are
 1) Histogram or Stem and Leaf plot
 2) Check Sheet
 3) Pareto Chart
 4) Cause and Effect Diagram
 5) Defect Concentration Diagram
 6) Scatter Diagram
 7) Control Chart
 A process that is operating with only chance causes of variation present is said to
be in statistical control. A process that is operating in the presence of assignable
causes is said to be out of control.

Process capability studies
 Select a candidate for the study
 Define the process, the scope of the study. A unique combination of machines,
tools, methods, and personnel engaged in adding value by providing a product or
service.
 Procure resources for the study. Process capability studies disrupt normal
operations and require significant expenditures of both material and human
resources.
 Evaluate the measurement system. Be prepared to spend the time necessary to
get a valid means of measuring the process before going ahead.
 Prepare a control plan. The purpose of the control plan is twofold:
 1) Isolate and control as many important variables as possible and,
 2) provide a mechanism for tracking variables that cannot be completely controlled.

Cost of Quality
 Quality costs are defined as costs associated with non-achievement of
product/service quality. In simple terms, quality cost is the cost of poor
products/services.
 The cost of poor quality can add to other costs such as design, production,
maintenance, inspection, sales, etc. Quality costs cross department
boundaries by involving all activities of the organization – marketing,
purchasing, design, manufacturing, service, etc.

EVEN MAGNIFICENT
QUALITY TOOLS AND
TECHNIQUES
Lesson 11

The magnificent seven
 Make sure that goals and expectations are well defined and communicated.
 Explain the differentiation of roles of members to all.
 The responsibilities and accountabilities of each member of the team need to
be clearly identified and individual performance monitored and managed.
 Team meetings should evolve into self-regulated events, while those in lead-
activity positions should be encouraged to take the floor and lead the
meeting.
 Plan the work and work the plan but don't overload the team with excessive
reporting requirements, charting, status reports, etc.
 Keep the sponsors in the loop.
 Celebrate milestone completionswith activities appropriate to the stage and
scope of the project.

Control Charts for Attributes
 P Charts - measures proportion defective.
 C Charts - measures the number of
defects/unit.

Control Charts for Variables
 1. An upper control limit (UCL) and a lower control limit (LCL) are set for the
process.
 2. A random sample of the product or service is taken, and the specified
quality characteristic is measured.
 3. If the average of the sample of the quality characteristic is higher than the
upper control limit or lowers than the lower control limit, the process is
considered to be "out of control"

CONTROL CHARTS FOR ATTRIBUTES
 1. Take a random sample and inspect each item
 2. Determine the sample proportion defective by dividing the number of
defective items by the sample size
 3. Plot the sample proportion defective on the control chart and compare
with UCL and LCL to determine if process is out of control.

Control Limits
 UCL = u + z sigmap
 LCL = u - z sigma p
 z is the number of standard deviations from the mean. It is set based how
certain you wish to be that when a limit is exceeded it is due to a change in
the process proportion defective rather than due to sample variability.
1. 1. Randomly select one item and count the number of defects in that item
2. 2. Plot the number of defects on a control chart
3. 3. Compare with UCL and LCL to determine if process is out of control

R-Chart for Process Variability
 UCLR = D4(R)
 LCLR = D3(R)
 Where the average of past R values, and D3 and D4 is are constants based on
the sample size

Chart for Process Average
 UCLR = X bar + A2(R)
 LCL = X bar – A(2)
 Where X bar is the average of several past values, and A2 is a constant based
on the sample size.

OTHER CONCEPTS
 Double-Sampling Plan:
 Specifies two sample sizes (n1 and n2) and two acceptance levels (c1 and c2)
 1. if the first sample passes (actual defects c1), the lot is accepted
 2. if the first sample fails and actual defects > c2, the lot is rejected
 3. if first sample fails but c1< actual defects c2, the second sample is taken
and judged on the combined number of defectives found

OTHER CONCEPTS
 Sequential-Sampling Plan: Each time an item is inspected, a decision is made
whether to accept the lot, reject it, or continue sampling.
 Acceptance Sampling
 Goal: To accept or reject a batch of items. Frequently used to test
incoming materials from suppliers or other parts of the
organization prior to entry into the production process. Used to
determine whether to accept or reject a batch of products.
Measures number of defects in a sample.

TOOLS AND TECHNIQUES
 The Oracle E-Business Suite delivers Oracle's market-leading database and
application server products in a single, consolidated technology stack.
 The GM tech 2 diagnostic tool has been around since the 1980's. It has been
the flagship diagnostic tool and programing device for many years. It
continues to be a valuable part of the GM dealership stable because it’s
quick, efficient, and works great!
 Tech 2 gives you unprecedented access to EVERY GM module and controller,
provides the best and highest volume of vehicle data, and possesses the most
bi-directional functionality of any diagnostic tool for GM family cars.
 PLENTY of people here in the United States selling clones! They buy a few
hundred of them, and un-load them on unsuspecting people calling them
"slightly used" or surplus. If they have very little feedback, or the feedback
looks like it was written by a foreigner, you’re likely looking at a clone.

TOOLS AND TECHNIQUES
OF TQM
Lesson 12

TQM – I tools for an organization
 Total quality management TQM-i tools help organizations to identify, analyze
and assess qualitative and quantitative data that is relevant to their business.
 These tools can identify procedures, ideas, statistics, cause and effect
concerns and other issues relevant to their organizations.
 Each of which can be examined and used to enhance the effectiveness,
efficiency, standardization and overall quality of procedures, products or
work environment, in accordance with ISO 9000 standards (SQ, 2004).

TQM – I tools for an organization
 According to Quality America, Inc. the number of TQM tools is close to 100
and come in various forms, such as brainstorming, focus groups, check lists,
charts and graphs, diagrams and other analysis tools.
 In a different vein, manuals and standards are TQM tools as well, as they give
direction and best practice guidelines to you and/or your staff.
 TQM tools illustrate and aid in the assimilation of complicated information
such as: The list goes on, though essentially TQM tools can be used in any
situation, for any number of reasons, and can be extremely effective if used
properly

Check Sheet
 1. SPC - 7 BASIC TOOLS 2013.10.22
 2. STATISTICAL PROCESS CONTROL
 3. CHECK SHEET Data record Checklist Develop a matrix for data collection.
 4. STRATIFICATION ANALYSIS Stratification Variables To group your data by a
stratification variable.
 5. SCATTER DIAGRAM EXPLAINS THE RELATIONSHIP BETWEEN... ...X and Y.

Check Sheet
 6. HISTOGRAM Normal manufacturing process, normal quality Limitation Data
from difference sources
 7. HISTOGRAM VS. BAR GRAPH Histogram Size, shape and the density of
interval.
 8. CREATING HISTOGRAM
 1. Collecting input data (n>50).
 2. Define K (base on sampling size, density of the bin, narrow the interval) Either
the experience or use the formula K=1+3.32*log(n)
 3. Define I the Range: R=X max – X min i= R/ K (take the odd number)
 4. Bin range L = X min-(unit/2), U=L+I ...apply to other number, till > X max
 5. On the Tools menu, click Data Analysis.
 6. In the Analysis Tools box, click Histogram, and then click OK.

Check Sheet
 9. REVIEW THE 4 BASIC TOOLS Check Sheet A systematic and constantly, data
record collection.
 10. CAUSE AND EFFECT DIAGRAM Measurement Materials Method analytical
procedure Sampling
 11. REVIEW THE OTHER 3 BASIC TOOLS Pareto Chart 80-20 rule.
 12. ADDRESS YOUR CONCLUSION Follow MECE Principle mutually exclusive and
collectively exhaustive South East North Seattle East ←→↑ Grouping Find
what’ve been missing East South ↓ North ↑ Seattle West North ← Blue West
Blue west south north direction Summarizing West→ East West South North

More measurement tools
Histograms a diagram consisting of rectangles whose area is proportional to the
frequency of a variable and whose width is equal to the class interval.
Run chart A run chart is a line graph of data plotted over time. By collecting and
charting data over time, you can find trends or patterns in the process.
Scatter
diagrams
a type of plot or mathematical diagram using Cartesian coordinates to
display values for typically two variables for a set of data. If the points are
color-coded, one additional variable can be displayed.
Cause and
affect
Diagrams
Show the causes of a specific event.
Each cause or reason for imperfection is a source of variation
Paretos Chart a type of chart that contains both bars and a line graph, where individual
values are represented in descending order by bars, and the cumulative
total is represented by the line.

Constructing a Process Flowchart
 Step 1: Determine the Boundaries
 1. Where does a process begin?
 2. Where does a process end?
 Step 2: List the Step
 1. Use a verb to start the task description.
 2. The flowchart can either show the sufficient information to understand the
general process flow or detail every finite action and decision point.
 Step 3: Sequence the Steps
 1. Use post-it notes so you can move tasks.
 2. Do not draw arrows until later.

 Step 4: Draw Appropriate Symbols
 1. Start with the basic symbols:
 1. Ovals show input to start the process or output at the end of the process.
 2. Boxes or rectangles show task or activity performed in the process.
 3. Arrows show process direction flow.
 4. Diamonds show points in the process where a yes/no questions are asked or a
decision is required.
 5. Usually there is only one arrow out of an activity box. If there is more than one
arrow, you may need a decision diamond.
 6. If there are feedback arrows, make sure feedback loop is closed; i.e. it should
take you back to the input box.

 Step 5: System Model
 1. Draw charts using system model approach.
 2. Input - use information based upon people, machines, material, method, and
environment.
 3. Process - use subsets of processes in series or parallel.
 4. Output - use outcomes or desired results.
 5. Control - use best in class business rules.
 6. Feedback - use information from surveys or feedback.

 Step 6: Check for Completeness Include pertinent chart information, using
title and date for easy reference.
 Step 7: Finalize the Flowchart
 1.Ask if this process is being run the way it should be.
 2.Are people following the process as charted?
 3.Do we have a consensus?
 4.What is redundant; add what is missing.

Regression Analysis
 A statistical process for estimating the relationships among variables.
 Helps one understand how the typical value of the dependent variable
changes when any one of the independent variables is varied, while the other
independent variables are held fixed.
 Widely used for prediction and forecasting.
 Depends on the form of the data generating process, and how it relates to the
regression approach being used.

how to analyze team productivity in 5
simple steps.
1. Track your Current Productivity and Utilization.
2. Analyse, Analyse, And Analyse.
3. Improve your Planning.
4. Manage Customer Expectations.
5. Create a Productive Working Environment.

The 5 whys
 1. Implement some form of time recording – “You can’t manage what you can’t
measure”, by capturing time-sheets you can understand your current utilization
and productivity
 2. Define Appropriate Variables – if you sell services you will want to measure
chargeable utilization, ensure you define variables that enable you to measure
utilization and productivity that is applicable to your business.
 3. Improve your planning – it will also give you a more realistic view of the health
of the organization by comparing planned versus actual.
 4. Manage Customer Expectations – communicate to your entire team the
importance of managing the customer’s expectation from initial enquiries all the
way through to project delivery. In the long run you will have more happy
customers resulting in your employees having to perform less un-productive tasks.
 5. Encourages Collaboration – boost your productivity by creating an environment
where your team members can easily share knowledge, ideas and lessons learned.

OVERRAL REQUIREMENT EFFECTIVENESS
 To evaluate how effectively a manufacturing operation is utilized.
 The results are stated in a generic form which allows comparison between
manufacturing units in differing industries.
 Used to identify scope for process performance improvement, and how to get
the improvement.
 Also commonly used as a key performance indicator (kpi) in conjunction with
lean manufacturing efforts to provide an indicator of success.

IMPPROVEMENT TOOLS AND
TECHNIQUES
Lesson 15

KAIZEN
 Less waste – inventory is used more efficiently as are employee skills.
 People are more satisfied – they have a direct impact on the way things are done.
 Improved commitment – team members have more of a stake in their job and are
more inclined to commit to doing a good job.
 Improved retention – satisfied and engaged people are more likely to stay.
 Improved competitiveness – increases in efficiency tend to contribute to lower
costs and higher quality products.
 Improved consumer satisfaction – coming from higher quality products with fewer
faults.
 Improved problem solving – looking at processes from a solutions perspective
allows employees to solve problems continuously.
 Improved teams – working together to solve problems helps build and strengthen
existing teams.

JIT
 Strategy where materials are only ordered and received as they are needed in
the production process.
 The goal of this method is to reduce costs by saving money on overhead
inventory expenses.
 The company must be able to accurately forecast demand for goods and
services for the just-in-time method to be effective.
 When sales activities warrant more production, inventory is "pulled" and more
manufacturing supplies are ordered.
 The result is a smooth flow of production and reduced inventory costs.

QUALITY CIRCLES
 A quality circle or quality control circle is a group of workers who do the same
or similar work, who meet regularly to identify, analyze and solve work-
related problems.
 (1) improved communication;
 (2) management awareness of employee job-related concerns;
 (3) personal growth and development;
 (4) enhanced decision making skills;
 (5) increased individual power and improved motivation; and
 (6) opportunities for recognition of individual improvement.

FORCE FIELD ANALYSIS
 Force-field analysis is a development in social science.
 It provides a framework for looking at the factors that influence a situation,
originally social situations.
 It looks at forces that are either driving movement toward a goal or blocking
movement toward a goal.
 Describe your plan or proposal for change in a box in the middle of the paper.
List the forces for change in a column on the left-hand side, and the forces
against change in a column on the right-hand side.

GANTT CHART
 a type of bar chart that illustrates a project schedule, named after its
inventor, Henry Gantt,
 He designed such a chart around the years 1910–1915.
 Modern Gantt charts also show the dependency relationships between
activities and current schedule status.

Network diagram
 Computer network diagram is a schematic depicting the nodes and
connections amongst nodes in a computer network or, more generally, any
telecommunications network.
 Computer network diagrams form an important part on network
documentation.

Radar chart
 A radar chart is a graphical method of displaying multivariate data in the form
of a two-dimensional chart of three or more quantitative variables
represented on axes starting from the same point.
 The relative position and angle of the axes is typically uninformative.

EARNED VALUE MANAGEMENT
 Earned Value Management (EVM) helps project managers to measure
project performance.
 It is a systematic project management process used to find variances in
projects based on the comparison of worked performed and work planned.
EVM is used on the cost and schedule control and can be very useful in
project forecasting.

Terms for earned value management
 Budgeted cost for work scheduled (BCWS), sometimes called the planned value.
 Budgeted cost for work performed (BCWP) or earned value.
 Actual cost of work performed (ACWP).
 Budget at completion (BAC).
 Estimate at completion (EAC) which is comprised of the cumulative to date actual
cost of work performed plus the estimate to complete the remaining work.
 Cost variance (CV) which is calculated as BCWP minus ACWP. A result greater than
0 is favourable (an under run), a result less than 0 is unfavourable (an overrun).
 Schedule variance (SV) which is calculated as BCWP minus BCWS. A result greater
than 0 is favourable (ahead of schedule), a result less than 0 is unfavourable
(behind schedule).
 Variance at completion (VAC) which is calculated as BAC minus EAC. A result
greater than 0 is favourable, a result less than 0 are unfavourable.

Quality Management

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