TQM Tools Benchmarking and Quality Function Deployment

Presented by
Dr. R. RAJA, M.E., Ph.D.,
Assistant Professor, Department of EEE,
Muthayammal Engineering College, (Autonomous)
Namakkal (Dt), Rasipuram – 637408
16EEE20 -TOTAL QUALITY MANAGEMENT
MUTHAYAMMAL ENGINEERING COLLEGE
(An Autonomous Institution)
(Approved by AICTE, New Delhi, Accredited by NAAC, NBA & Affiliated to Anna University),
Rasipuram - 637 408, Namakkal Dist., Tamil Nadu.
Unit-IV TQM Tools

Unit-IV TQM Tools
Benchmarking – Reasons to Benchmark – Benchmarking Process, Quality Function
Deployment (QFD) – House of Quality, QFD Process, and Benefits – Taguchi
Quality Loss Function – Total Productive Maintenance (TPM) – Concept,
Improvement Needs, and FMEA – Stages of FMEA- Case studies.
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Benchmarking
 Benchmarking is the process of comparing the cost, cycle time, productivity,
or quality of a specific process or method to another that is widely considered to
be an industry standard or best practice.
 Essentially, benchmarking provides a snapshot of the performance of your
business and helps you understand where you are in relation to a particular
standard.
 The result is often a business case for making changes in order to make
improvements.
 The term benchmarking was first used by cobblers to measure ones feet for
shoes.
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 They would place the foot on a "bench" and mark to make the pattern for the
shoes.
 Benchmarking is most used to measure performance using a specific indicator
(cost per unit of measure, productivity per unit of measure, cycle time of x per
unit of measure or defects per unit of measure) resulting in a metric of
performance that is then compared to others.
 Also referred to as "best practice benchmarking" or "process benchmarking", it
is a process used in management and particularly strategic management, in
which organizations evaluate various aspects of their processes in relation to
best practice, usually within a peer group defined for the purposes of
comparison.
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 This then allows organizations to develop plans on how to make improvements
or adopt best practice, usually with the aim of increasing some aspect of
performance.
 Benchmarking may be a one-off event, but is often treated as a continuous
process in which organizations continually seek to challenge their practices.
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Types of benchmarking
Process benchmarking
 The initiating firm focuses its observation and investigation of business
processes with a goal of identifying and observing the best practices from one
or more benchmark firms. Activity analysis will be required where the objective
is to benchmark cost and efficiency; increasingly applied to back-office
processes where outsourcing may be a consideration.
Financial benchmarking
 Performing a financial analysis and comparing the results in an effort to assess
your overall competitiveness.
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Performance benchmarking
 Allows the initiator firm to assess their competitive position by comparing
products and services with those of target firms
Product benchmarking
 The process of designing new products or upgrades to current ones. This
process can sometimes involve reverse engineering which is taking apart
competitors products to find strengths and weaknesses.
Strategic benchmarking
 Involves observing how others compete. This type is usually not industry
specific meaning it is best to look at other industries.
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Functional benchmarking
 A company will focus its benchmarking on a single function in order to
improve the operation of that particular function. Complex functions such as
Human Resources, Finance and Accounting and Information and
Communication Technology are unlikely to be directly comparable in cost and
efficiency terms and may need to be disaggregated into processes to make valid
comparison.
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Procedure
The following is an example of a typical shorter version of the methodology:
Identify your problem areas
 Because benchmarking can be applied to any business process or function, a
range of research techniques may be required.
 They include: informal conversations with customers, employees, or suppliers;
exploratory research techniques such as focus groups; or indepth marketing
research, quantitative research, surveys, questionnaires, re-engineering analysis,
process mapping, quality control variance reports, or financial ratio analysis.
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 Before embarking on comparison with other organizations it is essential that
you know your own organization's function, processes; base lining performance
provides a point against which improvement effort can be measured.
Identify other industries that have similar processes
 For instance if one were interested in improving hand offs in addiction
treatment he/she would try to identify other fields that also have hand off
challenges.
 These could include air traffic control, cell phone switching between towers,
transfer of patients from surgery to recovery rooms.
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Identify organizations that are leaders in these areas
 Look for the very best in any industry and in any country. Consult customers,
suppliers, financial analysts, trade associations, and magazines to determine
which companies are worthy of study.
Survey companies for measures and practices
 Companies target specific business processes using detailed surveys of
measures and practices used to identify business process alternatives and
leading companies.
 Surveys are typically masked to protect confidential data by neutral associations
and consultants.
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Visit the "best practice" companies to identify leading edge practices
 Companies typically agree to mutually exchange information beneficial to all
parties in a benchmarking group and share the results within the group.
Implement new and improved business practices
 Take the leading edge practices and develop implementation plans which
include identification of specific opportunities, funding the project and selling
the ideas to the organization for the purpose of gaining demonstrated value
from the process.
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Reasons to Benchmark
1. Efficiency and Effectiveness
 The reasons to benchmark, business effectiveness and efficiency have to be the
most important.
 But it isn’t just important in manufacturing and sales. Service driven businesses
need to be effective and highly efficient too because without it they will be
losing to the competition.
 So, how effective is your business’s marketing, support, advertising, and sales?
Is it more effective than it was three years ago? If those are the questions,
you’re trying to answer it means you’re trying to compete with yourself.
 What should you be asking is how effective and efficient is your business
compared to the Big Three in the industry?
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 Benchmarking proactively allows you to figure out just how well others are
doing in the industry. It will help you answer the following game-changing
questions for your business:
a. How efficient are the leading companies in your niche?
b. Why are they more efficient?
c. What steps can be taken to improve effectiveness across all areas of the business?
d. How can benchmarks be improved for next year’s evaluation?
Important note: Even though the assumption is that efficiency and effectiveness go
hand in hand, that’s not always the case. Some businesses can be efficient in some
aspects but not effective in delivering results. For instance, a company selling
budget-friendly cars could be efficient at manufacturing those vehicles, perhaps even
the most efficient in the industry but they aren’t effectively outselling the
competition.
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2. Improves Performance Potential
 Many businesses ask how to use benchmarking for performance improvement?
What to benchmark for performance insights? Well, one of the reasons that
companies have started using benchmarking is because it helps them improve
performance.
 One way it does that is by offering insights into the performance of other
companies. However, you’ll only gain those insights if you measure the right
performance metrics.
 What that means is if you’re trying to improve the performance of your sales
team, make sure to take into considering sales figures for the entire year and not
just profits earned.
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 Many businesses exclude chargebacks, returns, and refunds from sales figures
which is incorrect.
 If you want to benchmark sales, it should be done with the raw figures.
Now when you benchmark sales figures you may learn the following:
 The competition’s sales team is on average selling 25% more than you.
 The sales team works 6-days a week, whereas the competition’s teamwork maybe 5
days a week.
 The competition is on average offering a 10% commission off each sale whereas
you’re not offering a commission.
 The competition has partnerships with major companies which are frequent annual
buyers whereas you don’t. Competing companies may also have a 40% larger sales
team.
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So, to improve sales performance, you’ll probably have to do the following:
 Give the sales team an extra day off to unwind.
 Reduce salary and instead offer a commission with performance bonus to
motivate the team.
 Add more experienced salespeople to the team.
 Focus on business development and forming alliances with major companies.
 It is fair to say that once you’ve incorporated the abovementioned factors into
your business sales should improve.
 In most cases, it has for other businesses so yours shouldn’t be an exception.
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3. Expanding Your Business’s Horizons
 We know it sounds like a cliché, but many companies are stuck in a rut because
they aren’t sure what they are capable of achieving. If you want to know why
do organisations benchmark? Well, this is one big reason why they do!
 We are all for businesses looking inwards for success, but sometimes it pays to
look outwards too. When you run benchmarks on things like annual sales and
profit figures with competing businesses it is not hard to see that they are
making a bigger profit.
 So, the question is why are they making more money? What are they doing
apart from what you are doing to turn a larger profit? Those are questions which
will prompt you to study what other sources of income those businesses have.
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 Take for instance if you’re providing electrical repair services with a $150,000
in annual profits. But your nearest competitors are reporting $300,000 if not
more on average. When the benchmarks show that the business is achieving
almost half of what you have the potential of doing then its time to study the
competition.
 When you do it may not be hard to see that the other services are also working
on government contracts, for instance, they also provide door-to-door appliance
repair, etc. So, you could be doing all of this and making more money…its just
that simple!
Pro tip: While benchmark figures may show that you have the potential to do more
that may not always be a good idea. Sometimes catering to a niche and specializing
in that niche can turn a higher profit over the long term but with a lower investment
regarding time, labor and effort.
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4. Helps to Motivate Staff
 One of the reasons to benchmark is that it helps get businesses and their staff
out of the comfort zone.
 The comfort zone is where you never want the staff to be because it leads to
stagnation.
 When you’re benchmarking individual departments against the competition, the
result good or bad can be used as a source of motivation.
 It helps to set goals and then its everyone’s to job to work towards achieving
those goals.
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5. Instigates Innovation from Inspiration
 So, what to benchmark to inspire innovation and inspiration? That’s a question
we get a lot of, and the answer is not as complex once your business type has
been identified.
 However, generally speaking, you can learn a lot from how the competition is
achieving a certain goal.
 That is your source of inspiration. Combining that with your unique methods
and human resource is what will lead to innovation.
 An excellent example of this innovation is a lending company which runs a
benchmark of its lending packages against the competition. It discovers that the
competition is doing the following:
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 They have 0% interest during the first month
 A high approval rate for those who have lower than average credit scores
 Don’t charge for documentation also known as administrative fees
 Inspired by this the lending company in question can come up with a different
package designed exclusively for people with low or bad credit scores.
 So, instead of just focusing on people with subpar credit scores, they can
continue to focus on their regular clients but also add those who were
previously not eligible.
 Those new packages they come up with will be innovative in the sense that
nobody else is doing it exclusively for people with below-average credit.
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6. Understanding the Competition
 Understanding and respecting competing businesses is just as important as
making sure that you’re competitive.
 Benchmarking gives you insight into what the competition is doing but not
necessarily how they are doing it.
 But once you know what they are doing it is only a matter of good research to
find out how they are doing it.
 Once you understand the competition’s methods, it becomes possible to outdo
them. Benchmarking allows you to learn and expand on what you’re currently
doing with that knowledge.
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7. Insight into Present Performance
 The big question for all businesses is how far they can stretch their performance
if all things remain equal? Well, that’s where benchmarking can help a great
deal especially when you compare your performance to those of similarly sized
businesses.
 You will learn exactly why your performance is lagging and when it lags.
 Plus, it will tell you if there is even a possibility to expand if all things are kept
equal.
 So, looking inwards becomes especially easy when using internal
benchmarking.
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What Does All This Mean?
 Well, it means a lot, but it isn’t all applicable to every business under the sun.
 Why do organisations benchmark vary from one industry and business to the
next? So, you need to think of why it is crucial for your organisation then run
benchmarks accordingly.
 Nevertheless, the abovementioned reasons may work as a starting point for any
business that isn’t benchmarking performance.
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Benchmarking Process
 If a company is to be successful, it needs to evaluate its performance in a
consistent manner.
 In order to do so, businesses need to set standards for themselves and measure
their processes and performance against recognized industry leaders or against
best practices from other industries, which operate in a similar environment.
 This is commonly referred to as benchmarking in management parlance.
 The benchmarking process is relatively uncomplicated. Some knowledge and a
practical dent is all that is needed to make such a process a success.
 Therefore, for the benefit of corporate executives, students and the interested
general populace, the key steps in the benchmarking process are highlighted
below.
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A Step-by-Step Approach to Benchmarking
 Following are the steps involved in benchmarking process:
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1.Planning
 Prior to engaging in benchmarking, it is imperative that corporate stakeholders
identify the activities that need to be benchmarked.
 For instance, the processes that merit such consideration would generally be
core activities that have the potential to give the business in question a
competitive edge.
 Such processes would generally command a high cost, volume or value. For the
optimal results of benchmarking to be reaped, the inputs and outputs need to be
redefined; the activities chosen should be measurable and thereby easily
comparable, and thus the benchmarking metrics needs to be arrived at.
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 Prior to engaging in the benchmarking process, the total process flow needs to
be given due consideration. For instance, improving one core competency at the
detriment to another proves to be of little use.
 Therefore, many choose to document such processes in detail (a process flow
chart is deemed to be ideal for this purpose), so that omissions and errors are
minimized; thus enabling the company to obtain a clearer idea of its strategic
goals, its primary business processes, customer expectations and critical success
factors.
 An honest appraisal of the company's strengths, weaknesses and problem areas
would prove to be of immense use when fine-tuning such a process.
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 The next step in the planning process would be for the company to choose an
appropriate benchmark against which their performance can be measured.
 The benchmark can be a single entity or a collective group of companies, which
operate at optimal efficiency.
 As stated before, if such a company operates in a similar environment or if it
adopts a comparable strategic approach to reach their goals, its relevance
would, indeed, be greater.
 Measures and practices used in such companies should be identified, so that
business process alternatives can be examined.
 Also, it is always prudent for a company to ascertain its objectives, prior to
commencement of the benchmarking process.
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 The methodology adopted and the way in which output is documented should
be given due consideration too.
 On such instances, a capable team should be found in order to carry out the
benchmarking process, with a leader or leaders being duly appointed, so as to
ensure the smooth, timely implementation of the project.
2.Collection of Information
 Information can be broadly classified under the sub texts of primary data and
secondary data.
 To clarify further, here, primary data refers to collection of data directly from
the benchmarked company/companies itself, while secondary data refers to
information garnered from the press, publications or websites.
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 Exploratory research, market research, quantitative research, informal
conversations, interviews and questionnaires, are still, some of the most popular
methods of collecting information.
 When engaging in primary research, the company that is due to undertake the
benchmarking process needs to redefine its data collection methodology.
 Drafting a questionnaire or a standardized interview format, carrying out
primary research via the telephone, e-mail or in face-to-face interviews, making
on-site observations, and documenting such data in a systematic manner is vital,
if the benchmarking process is to be a success.
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3.Analysis of Data
 Once sufficient data is collected, the proper analysis of such information is of
foremost importance.
 Data analysis, data presentation (preferably in graphical format, for easy
reference), results projection, classifying the performance gaps in processes,
and identifying the root cause that leads to the creation of such gaps (commonly
referred to as enablers), need to be then carried out.
4.Implementation
 This is the stage in the benchmarking process where it becomes mandatory to
walk the talk. This generally means that far-reaching changes need to be made,
so that the performance gap between the ideal and the actual is narrowed and
eliminated wherever possible.
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 A formal action plan that promotes change should ideally be formulated
keeping the organization's culture in mind, so that the resistance that usually
accompanies change is minimized.
 Ensuring that the management and staff are fully committed to the process and
that sufficient resources are in place to meet facilitate the necessary
improvements would be critical in making the benchmarking process, a success.
5.Monitoring
 As with most projects, in order to reap the maximum benefits of the
benchmarking process, a systematic evaluation should be carried out on a
regular basis.
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Contd..
 Assimilating the required information, evaluating the progress made, re-
iterating the impact of the changes and making any necessary adjustments, are
all part of the monitoring process.
Conclusion
 As is clearly apparent, benchmarking can add value to the organization's
workflow and structure by identifying areas for improvement and rectification.
 It is indeed invaluable in an organization's quest for continuous improvement.
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House of Quality
What is House of Quality / QFD Example
 House of Quality refers to a well-known process for product development that
is inspired by customer desires for product or process development and
anchored by the capabilities and resources of the organization seeking to meet
those desires.
 It is a process of listening to customers, translating their desires into a written
plan, prioritizing steps of execution based on what is most important to the
customer, and putting a realistic plan on paper.
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What is QFD?
 House of Quality is a part of a larger process called QFD, which stands for
Quality, Function, Deployment.
 This represents quality-monitoring, a focus on the function of execution of a
quality plan, and the application of resources for deployment of that plan.
While the name, QFD, does not encapsulate all that QFD covers, it is a name
that has been around for quite some time.
 It is familiar, so organizations continue to use it. The House of Quality name
comes from the very useful diagram used to make this plan that resembles a
house, which we will dig into shortly.
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Primary Purposes of QFD & House of Quality
Understand Customer Desires
 Many times, customers need outside perspective to discover what they really
need to build their product or process.
 The goal is to understand customers perhaps even better that they understand
themselves so as to open their eyes to ideal solutions.
Understand Customer Priorities
 During the interview stage, get to know customer needs, but then break those
needs down into prioritized parts.
 For example, if a customer is building drones for media production, how
important is battery life compared to camera quality?
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 How important is aesthetic compared to quality of the drone body? Weights are
assigned to each quality based on what is most important to the customer.
 How well each need is met is ultimately how the customer will judge your
solution’s value.
Departmental Buy-In
 Often, disagreement or misunderstanding between departments of a customer’s
organization can occur in relation to what is actually needed.
 Marketing may think that a drone with trending features is top priority, but
engineering may think that overhaul of a problematic part is top priority.
 The process helps create a plan that addresses all true priorities and to which all
departments can agree.
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Translate Customer Desires Into Goals & Technicalities
 This is the heart of the QFD process where the recorded desires of the customer
are ranked by priority and specific process and resource planning takes place.
 They are laid out onto a useful diagram labeled the House of Quality.
Specify Traceable Requirements
 Specific requirements for the execution of the customer’s product or process
should be laid out.
 The how and why questions should be answered in the plan–how are we
meeting the client’s requirements and why are we doing it this way?
 The written requirements and should be specific enough that their completion
and success are traceable.
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 One should be able to work forward and backward in the plan and determine
easily whether or not the overall plan is being executed successfully.
 For example, if there is a question on why something is done a certain way, one
should be able to trace back to the beginning of the process to the initial
requirement that determined the process needed to meet that requirement.
Provide Structure
 It is easy for customers to jump all over the place stating what they desire and
tossing out ideas. But, at the end of the day, your role is to hone in on what they
want and provide a logical, executable, traceable structure to organize their
ideas.
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Allocate Resources
 Whether developing a physical product or creating a process for a customer,
resources are needed to do so.
 Humans, machines, computers, construction materials, disposable materials and
more must be accounted for.
 What do we have available to us and what do the available resources allow us to
do? Answering these questions is a critical part of execution.
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House of Quality Diagram
 Below is an example of a House of Quality Diagram. We will now walk
through a summary overview of its various parts.
 We continue our example of a media-production drone manufacturer.
 The Customer Specifications section to the left lays out the specific priority
features on which the customer has set focus.
 The numbers just to the right represent their importance to the customer on a
scale of one to five.
 The Engineering Specifications section displays engineering methods needed
to measure and execute production. At the base, the engineering specifications
are detailed in specific measurements.
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 The center grid containing symbols displays how strong a relationship each
customer specification has to each
 engineering piece. Referring to the Legend, a ◎ indicates a strong relationship
with a weight of 9, a ❍ is a medium relationship with a weight of 3, and a △ is
a weak relationship with a weight of only 1. For example, if you cross-reference
the Lightweight specification with the Noise Output (dB) engineering
specification (refer to the orange dotted line, you will find a △, indicating a
medium relationship between how heavy the drone is and how much noise it
puts out. A cross-reference of Durable Body and Stress Tests shows a ◎,
indicating a strong relationship between how durability is judged and in-house
stress tests.
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 The top portion, the “roof” of the house, displays potential conflicts between
engineering specifications.
 Referring to the blue dotted line, you see that there is a strong positive
correlation between the unit’s weight and the noise output.
 When the weight goes up, the propellers must work harder to keep the drone
suspended, so the noise level also goes up.
 Just below the roof, the up and down arrows indicate which direction the
customer would like each engineering specification to go.
 For example, they want style up, noise level down, and battery run time up.
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 The Importance numbers and Importance Weights at the bottom are the
overall importance after evaluating customer importance and engineering
relationships.
 To obtain these numbers, calculate the product of each customer importance
weight and the value of the relationship symbol for each specification and
engineering specification.
 For example, the overall importance of minimal noise output is obtained as
follows:
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 The total of all importance weights (634) is shown to the right.
 Per the above calculation, minimal noise holds an importance in the group of
engineering specifications of 57.
 This number (57) divided into the total weight of 634 gives minimal noise
output a percentage importance weight of 9%, shown below the weight
numbers.
 Referring to the weight numbers and percentages at the base shows that runtime
Minutes is the most-important specification to focus on at 154 or 24%.
 Style, Size, and Stress Tests are the least important area of focus at 23, 27, and
27, which all round to 4%.
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 Lastly, the Comparative Assessment section to the right displays a trending
line indicating where your model stands in the market compared to other brand
models of similar specifications.
 Three brands are represented with F representing FlyCo (your brand), S for
Samsung, and P for Panasonic drones. Each brand’s effectiveness in executing
each specification is rated on a scale of 1 (poor) to 5 (excellent). For example,
refer to the Stable specification.
 Going to the right under Comparative Assessment, you will see that Samsung
(S) drone stability is mediocre, FlyCo (F) is good, and Panasonic (P) is at the
top with an excellent rating of 5. For Drone Battery Life, Samsung rates poor,
Panasonic is in the middle, and FlyCo (you) are rated good with a rating of 4.
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In Closing
 There are various levels of detail into which one can go using the House of
Quality diagram. Some might include ratings for each engineering specification
that indicate technical difficulty of execution, and so forth. But the example
above is widely applicable and fairly detailed.
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Taguchi’s Quality Loss Function
 In the field of Quality management and manufacturing industry, Taguchi’s
Quality loss function proposed a different approach and was a turning point in
how businesses considered cost of quality and loss associated with poor quality
product.
Traditional Quality Loss:
 Traditionally organizations had specification limits: Upper or Lower
specification limits or sometimes both limits.
 All values of the product characteristic that falls within the limits are considered
acceptable and are considered equal irrespective of where the value lies within
the range and the variation of the characteristic.
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Contd..
 Also, while measuring the loss, the cost of poor quality was measured only till
the product was sold to the customer.
 However, in real scenarios, the cost of poor quality was manifold than the
production cost of the product cost itself, which was not estimated as COPQ.
Taguchi’s Loss Function:
 Taguchi countered both the assumptions of the traditional approach. He stated
that:
 Not all values falling within the specification limits are equal and create equal
loss due to poor quality.
 The loss value depends on how close the characteristic is to the targeted value.
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 Quality Loss is not only the cost spent on poor quality till manufacturing.
 It includes the financial loss to the society.
 He proposed a Quadratic function to explain this loss as a function of the
variability of the quality characteristic and the process capability.
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Contd..
 He explained that the loss value is a function of the process capability; because,
process capability represents how consistent the Quality parameter is and how
close the parameter’s performance value lies to the targeted value/average
value.
 Therefore processes with less variation will have a lower cost of poor Quality.
Thus Taguchi explained that variation directly affects the Quality and hence
Customer satisfaction and Revenue of an organization.
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Total Productive Maintenance (TPM)
Definition
 TPM (Total Productive Maintenance) is a maintenance philosophy designed to
integrate equipment maintenance into the manufacturing process.
 The goal of any TPM program is to eliminate losses tied to equipment
maintenance or, in other words, keep equipment producing only good product,
as fast as possible with no unplanned downtime.
Expanded Definition
 Maintenance has traditionally been viewed as a separate entity outside of the
manufacturing process. As companies began to identify the role of maintenance
in the production process a gradual shift in thinking occurred.
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 TPM emerged out of the need to integrate maintenance with manufacturing to
improve productivity and asset availability.
 The culmination of change from a reactive/corrective maintenance environment
to one that is based on preventative maintenance through predictive
maintenance is the process of TPM.
 TPM is used to drive waste out of the manufacturing process by reducing or
eliminating production time lost to machine failures.
 The goal of any TPM program is to ensure that machinery and equipment is
always available to manufacture products for the end customer.
 By minimizing rework, slow running equipment and downtime, maximum
value is added at the minimum cost.
9/21/2020 56
Contd..

 Successful TPM is a group effort where the entire organization works together
to maintain and improve the equipment.
 One of the first steps in implementing TPM is forming teams that are
empowered to improve the process.
 Flattening the organizational structure enables teams to address issues when
they have the greatest impact – when they occur.
 As employees join TPM teams, operators are trained to perform routine
maintenance items and assume an ownership role.
 Employees empowered to affect the process will typically be in a position to
identify and create process improvements that would have normally been
overlooked by management.
9/21/2020 57
Contd..

 An on-going refactoring of the process provides a method to implement
improvements.
 As maintenance issues are addressed and total productive maintenance
programs implemented, the true value of TPM begins to emerge.
 Just as lean manufacturing relies on Kaizen or continuous improvement;
continuous re-evaluation of the maintenance cycle allows for kaizen in
maintenance programs.
 Root cause analysis exposes the underlying issues to be addressed. By
addressing issues at the root level, problems can be eliminated.
 As with any lean initiative it is critical to measure change.
9/21/2020 58
Contd..

 OEE (Overall Equipment Effectiveness) is a metric originally developed to
measure the success of total productive maintenance programs by associating
the Six Big Losses with three measurables: Availability, Performance and
Quality.
 OEE enables organizations to benchmark and monitor their progress with
simple, easy to understand metrics. OEE provides both a gauge for the success
of TPM and a framework to identify areas that can be improved.
9/21/2020 59
Contd..

Benefits
 Equipment maintenance is a fact of life. Companies that understand this and use
TPM to get the most out of their resources see:
 Significantly decreased maintenance costs
 Increased equipment availability and profitability
 Improved teamwork and employee involvement
 TPM provides the tools to turn maintenance programs into a competitive
advantage.
9/21/2020 60
Contd..

FMEA
Introduction to Failure Mode and Effects Analysis (FMEA)
 There are numerous high-profile examples of product recalls resulting from
poorly designed products and/or processes.
 These failures are debated in the public forum with manufacturers, service
providers and suppliers being depicted as incapable of providing a safe product.
 Failure Mode and Effects Analysis, or FMEA, is a methodology aimed at
allowing organizations to anticipate failure during the design stage by
identifying all of the possible failures in a design or manufacturing process.
 Developed in the 1950s, FMEA was one of the earliest structured reliability
improvement methods. Today it is still a highly effective method of lowering
the possibility of failure.
9/21/2020 61

What is Failure Mode and Effects Analysis (FMEA)
 Failure Mode and Effects Analysis (FMEA) is a structured approach to
discovering potential failures that may exist within the design of a product or
process.
 Failure modes are the ways in which a process can fail. Effects are the ways
that these failures can lead to waste, defects or harmful outcomes for the
customer.
 Failure Mode and Effects Analysis is designed to identify, prioritize and limit
these failure modes.
9/21/2020 62
Contd..

 FMEA is not a substitute for good engineering. Rather, it enhances good
engineering by applying the knowledge and experience of a Cross Functional
Team (CFT) to review the design progress of a product or process by assessing
its risk of failure.
 There are two broad categories of FMEA, Design FMEA (DFMEA) and
Process FMEA (PFMEA).
9/21/2020 63
Contd..

Design FMEA
Design FMEA (DFMEA) explores the possibility of product malfunctions, reduced
product life, and safety and regulatory concerns derived from:
 Material Properties
 Geometry
 Tolerances
 Interfaces with other components and/or systems
 Engineering Noise: environments, user profile, degradation, systems
interactions
9/21/2020 64
Contd..

Process FMEA
Process FMEA (PFMEA) discovers failure that impacts product quality, reduced
reliability of the process, customer dissatisfaction, and safety or environmental
hazards derived from:
 Human Factors
 Methods followed while processing
 Materials used
 Machines utilized
 Measurement systems impact on acceptance
 Environment Factors on process performance
9/21/2020 65
Contd..

Why Perform Failure Mode and Effects Analysis (FMEA)
 Historically, the sooner a failure is discovered, the less it will cost. If a failure is
discovered late in product development or launch, the impact is exponentially
more devastating.
 FMEA is one of many tools used to discover failure at its earliest possible point
in product or process design. Discovering a failure early in Product
Development (PD) using FMEA provides the benefits of:
 Multiple choices for Mitigating the Risk
 Higher capability of Verification and Validation of changes
 Collaboration between design of the product and process
 Improved Design for Manufacturing and Assembly (DFM/A)
9/21/2020 66
Contd..

9/21/2020 67
Late Failure Mode Discovery
Contd..

9/21/2020 68
Early Failure Mode Discovery
Contd..

 Lower cost solutions
 Legacy, Tribal Knowledge, and Standard Work utilization
Ultimately, this methodology is effective at identifying and correcting process
failures early on so that you can avoid the nasty consequences of poor performance.
When to Perform Failure Mode and Effects Analysis (FMEA)
There are several times at which it makes sense to perform a Failure Mode and
Effects Analysis:
 When you are designing a new product, process or service
 When you are planning on performing an existing process in a different way
 When you have a quality improvement goal for a specific process
9/21/2020 69
Contd..

 When you need to understand and improve the failures of a process
In addition, it is advisable to perform an FMEA occasionally throughout the lifetime of a
process. Quality and reliability must be consistently examined and improved for optimal
results.
How to Perform Failure Mode and Effects Analysis (FMEA)
 FMEA is performed in seven steps, with key activities at each step. The steps are
separated to assure that only the appropriate team members for each step are
required to be present.
 The FMEA approach used by Quality-One has been developed to avoid typical
pitfalls which make the analysis slow and ineffective.
 The Quality-One Three Path Model allows for prioritization of activity and efficient
use of team time.9/21/2020 70
Contd..

There are Seven Steps to Developing an FMEA:
 FMEA Pre-Work and Assemble the FMEA Team
 Path 1 Development (Requirements through Severity Ranking)
 Path 2 Development (Potential Causes and Prevention Controls through
Occurrence Ranking)
 Path 3 Development (Testing and Detection Controls through Detection
Ranking)
 Action Priority & Assignment
 Actions Taken / Design Review
 Re-ranking RPN & Closure
9/21/2020 71
Contd..

Stages of FMEA
Process Failure Mode and Effects Analysis must be done in a step-wise fashion since
each step builds on the previous one. Here’s an overview of the 10 steps to a
Process FMEA.
STEP 1: Review the process
 Use a process flowchart to identify each process component.
 List each process component in the FMEA table.
 If it starts feeling like the scope is too big, it probably is. This is a good time to
break the Process Failure Mode and Effects Analysis into more manageable
chunks.
9/21/2020 73

STEP 2: Brainstorm potential failure modes
 Review existing documentation and data for clues about all of the ways each
component can failure.
 The list should be exhaustive – it can be paired down and items can be
combined after this initial list is generated.
 There will likely be several potential failures for each component.
STEP 3: List potential effects of each failure
 The effect is the impact the failure has on the end product or on subsequent
steps in the process.
 There will likely be more than one effect for each failure.
9/21/2020 74
Contd..

STEP 4: Assign Severity rankings
 Based on the severity of the consequences of failure.
STEP 5: Assign Occurrence rankings
 Rate the severity of each effect using customized ranking scales as a guide.
STEP 6: Assign Detection rankings
 What are the chances the failure will be detected prior to it occuring.
STEP 7: Calculate the RPN
 Severity X Occurrence X Detection
9/21/2020 75
Contd..

STEP 8: Develop the action plan
 Decide which failures will be worked on based on the Risk Priority
Numbers. Focus on the highest RPNs.
 Define who will do what by when.
STEP 9: Take action
 Implement the improvements identified by your Process Failure Mode and
Effects Analysis team.
STEP 10: Calculate the resulting RPN
 Re-evaluate each of the potential failures once improvements have been made
and determine the impact of the improvements.
9/21/2020 76
Contd..

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