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Theoretical Operation Management Assignment                                 on    Total Quality Management and Lean Manufa...
INDEXAbstractIntroductionLiterature reviewMethodology / Analysis of the topicLimitationsFuture directionConclusionReferenc...
AbstractPurpose: Lean Manufacturing arose from the Toyota Production System. Today theToyota production system (TPS) is on...
expenditure of resources for any goal other than the creation of value for the endcustomer to be wasteful and thus a targe...
5. morale. Just as mass production is recognized as the production system of the 20th century, lean production is viewed a...
TQM has become a billion-dollar industry, heavily promoted as an effective solution tomanagement problems. However, while ...
Following are the comparison between TQM and Lean:Subject              TQM                                            Lean...
There are many reasons to introduce Lean techniques in an organization because it maycontribute substantially to cutting c...
that JIT is not possible in their industry, but every day we make technical advances thatallow this possible in almost any...
3. Streamlining of customer service functions so that customers are no longer placed onhold, etc. and strategic improvemen...
 Benefits may not be seen for several years while using the TQM model.    Workers may be resistant to change – may feel ...
Conclusion:Albeit TQM and Lean have the same origin (the quality evolution in Japan), the conceptshave developed different...
References / Bibliographies     TQM&id=1173044
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Om theoretical assignment group 5


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Om theoretical assignment group 5

  1. 1. Theoretical Operation Management Assignment on Total Quality Management and Lean Manufacturing: Through Lean Thinking ApproachSubmitted To:Prof. Arun Kumar Paul Submitted By Ansumani Pandey(u311056) Kamod Kr. Jha (U311072) Rahul Wahi (u311085) Vandana Kumari (U311098) OM Theoretical Assignment Group No.5
  2. 2. INDEXAbstractIntroductionLiterature reviewMethodology / Analysis of the topicLimitationsFuture directionConclusionReferences / BibliographiesOM Theoretical Assignment Group No.5
  3. 3. AbstractPurpose: Lean Manufacturing arose from the Toyota Production System. Today theToyota production system (TPS) is one of the most admired lean manufacturing systemsin existence. Replicating the system, however, is fraught with difficulties. Most outsiderssee the TPS as a set of tools and procedures that are readily visible during a plant tour.The variants of Lean Manufacturing, such as TQM, were originally founded in theJapanese automotive industry, but their evolution was mostly carried out in the West. Thepurpose of this paper is to make a comparative study between Total Quality Managementand Lean Manufacturing with an emphasis on the Lean Thinking approachDesign/methodology/approach: It rationally categorizes the related literature of variousstudies, analyze the literature and finally appraise and integrate it methodologically.Findings/Results: The results of this research divulge that Total Quality Managementand Lean Manufacturing have much in common. Derived from Lean strategies, TotalQuality Management, similar to numerous improvement approaches, can be a tool tosupport and create synergy for stirring up a more competitive market among companies.Key words: Lean Manufacturing, Lean Thinking, Total Quality ManagementIntroductionThere have been many management theories that have been presented over the years,some of which could be argued to be management fad and they have been criticized forhaving four major defects (Carson et al., 1999). Total quality management is amanagement system for a customer focused organization that involves all employees incontinual improvement of all aspects of the organization. TQM uses strategy, data, andeffective communication to integrate the quality principles into the culture and activitiesof the organization. Total quality management (TQM) andLean Manufacturing (LM) is two management approaches to optimization, but there arevarious ideas and views of them. But these two are different and have their own processand methodology. TQM is “The management of quality at every stage of operations,from planning and design through self-inspection, to continual process monitoring forimprovement opportunities”. Many different definitions of TQM have been presentedover the years and some of the examples are:According to Boaden : “ TQM is like shooting at a moving target”. While some arguethat TQM is a corporate culture characterized by increased customer satisfaction throughcontinuous improvement, in which all employees in the companies participate actively.Dale claims that TQM is both a philosophy and a set of guiding principles for managingan organization. TQM focuses on control of business processes and customer satisfaction.Activities such as improvement, statistical control, supply control and quality engineeringare ingredients of TQM. TQM as a concept arises from the academic field and hascontributors such as Feigenbaum, Juran and Deming. LM, also called as Lean Production(LP) which is often simply known as „Lean‟, is a production practice that considers theOM Theoretical Assignment Group No.5
  4. 4. expenditure of resources for any goal other than the creation of value for the endcustomer to be wasteful and thus a target for elimination; basically it refers to more valuewith less work. LM is a generic process management philosophy derived originally fromthe Toyota Production System (TPS).The term „Lean‟ was probably coined by Womack et al. in their book „The Machine thatChanged the World‟. Some authors‟ state that a definition of Lean includes both thepeople and the process components on the one hand and internal (related to the firm) andexternal (related to supplier and customer) components on the other hand. In this sense,Shah and Ward‟s definition of LP highlights mechanisms needed to achieve the centralobjective of waste elimination. So, LM is the production of goods using less ofeverything. In using LM with your company, the goals would be to use less waste, lesshuman effort, less manufacturing space, less investment in tools and less engineering todevelop a new product. LM is renowned for its focus on the reduction of waste, which inturnLiterature ReviewThis is an interesting postulation about Total Quality Management (TQM) that it isactually an old wine in a new bottle; and the various arguments in support of the processof growing a new theory from the principles of the older theories that may not have theluster of newness wafting off them comes to mind. While it is important to becontinually in pursuit, both academically and professionally, of improved methods andpractices in the business of producing a product or service, it is equally important not tothrow out the learnings of past management theories just to grab hold of the latestfindings from the newest expert.However many definition of TQM has been presented over the years. According toBoade n TQM is shooting at moving target. Some argue that TQM is like corporateculture characterized by increased customer satisfaction through continuousimprovement, in all employees in the company company participated actively. Activitiessuch as improvement, statically control, supply control and quality engineering areingredients of TQM.Lean is about doing more with less: less time, inventory, space, labor, and money. "Leanmanufacturing", shorthand for a commitment to eliminating waste, simplifyingprocedures and speeding up production.Lean Manufacturing (also known as the Toyota Production System) is, in its most basicform, the systematic elimination of waste – overproduction, waiting, transportation,inventory, motion, over-processing, defective units – and the implementation of theconcepts of continuous flow and customer pull.Five areas drive lean manufacturing/production: 1. cost 2. quality 3. delivery 4. safety, andOM Theoretical Assignment Group No.5
  5. 5. 5. morale. Just as mass production is recognized as the production system of the 20th century, lean production is viewed as the production system of the 21st century. TQM has Kaizen as a tool for continuous work ;this is visualized by Demming‟s wheel. Stastical control is a powerful tool to gain control of manufacturing defects and it correlates to measurement. This paper draws attention on whether lean differs from other improvement methods (TQM) and two major differences are noteworthy. First lean main focus is in improving entire value stream while other most of the other improvement methods tend to focus on individual processes. The second important difference is that most process improvement method tends focus on productivity and efficiency of major value adding processes, whereas lean emphasize on reducing or eliminating non value –adding activities i.e. waste. Principle of TQM is: 1. Be customer focused 2. Ensure total employee involvement 3. Continual improvement 4. Leadership 5. Process approachPrincipal of Lean Manufacturing:Lean manufacturing is underpinned by 5 principles: 1. Specify what creates value from the customers perspective 2. Identify all the steps along the process chain 3. Make those processes flow 4. Make only what is pulled by the customer & Strive for perfection by continually removing wastes.OM Theoretical Assignment Group No.5
  6. 6. TQM has become a billion-dollar industry, heavily promoted as an effective solution tomanagement problems. However, while the advantages of TQM seem obvious,implementing TQM systems has not produced equally good results in all cases. Severalresearchers report that TQM programmes have produced improvements in quality,productivity and competitiveness in only 20-30 per cent of the companies that haveimplemented such programmes. TQM approaches are : 1) To find out the customer wants2) Keep track of results 3)Design process that facilitates doing the job right the first timeQuality management can be described as management revolution, a revolutionaryphilosophy of management , a new way of thinking about the management oforganization, a comprehensive way to improve total organizational performance, or as aLean manufacturing can be looked at as an overall philosophy for business improvementas well as a collection of lean. These tools applied on their own without the overallframework for improvement will not be as effective as a planned implementation of lean.Framework for competition management.Problem solving tools are as much part of lean tools as they are part of qualitymanagement, the seven quality tools are well used and developed within lean and theToyota Production System. These quality tools are used for continual improvement ofprocesses and problem solving within any lean manufacturing or total qualityenvironment. Total Productive Maintenance (TPM) like 5S is one of the foundationblocks of lean manufacturing and seeks to ensure that is machines and processes arereliable and efficient through improved maintenance activities and autonomousmaintenance.TPM focuses on the six big losses and tries to minimize them all through a performancemeasure known as OEE or overall equipment effectiveness. Tom incorporates aspectsof predictive maintenance and preventive maintenance but involves everyone in theorganization rather than just the maintenance crew who in traditional organizations arethe ones who fix machines while the operators only run them.Kaizen is continuous improvement of every aspect of your business using everyonewithin it. The Japanese typically use kaizen as an ongoing process of many smallimprovements which together add up to a major improvement across the whole company.In the west we tend to like running kaizen events or a kaizen blitzas some call them tomake major step change improvements over just a few days to a week.Kaizen is very much about empowering the employees to make decisions and choosetheir own improvements without having to go through a complicated and lengthyapprovals process or have the changes forced on them by experts. The kaizen blitzapproach is very much about "just do it" (JFDI), getting out there and making thingshappen, a typical kaizen event will result in the re-layout of cells and other significantchanges.Lean exists at two levels, having both strategic and operational dimensions ; neither ofthe positions is more correct than the other. In addition, Lean can be seen as having botha philosophical as well as a practical orientation. There are four definable approaches ofLP. These are performative, ostensive,discrete and continuous.OM Theoretical Assignment Group No.5
  7. 7. Following are the comparison between TQM and Lean:Subject TQM Lean The failures of TQM implementation have been well documented: Brown et al. In moredetail, Harari states that, after studying all the independent research conducted byconsulting firms, the conclusion is that only about one-fifth, or at best one- third, of theTQM programs in the USA and Europe have Total Quality Management (TQM)and quality circles(QCs) became popular programs that were implemented in manyorganizations, but there were implementation problems. In some cases, TQM and QCswere not implemented completely, or the corporate culture was unable to adapt to thesenew techniques. Some employees considered these innovations little more than the latestmanagement fad which, if ignored, would be replaced shortly by a new management fad.Some organizations realized substantial gains by implementing these techniques; othersabandoned them while others maintained the names, but reverted to traditional Westernapproaches to quality management. This research considers the management of quality inWestern organizations, how TQM has been co-opted, and techniques that might improvequality management in service industries.OM Theoretical Assignment Group No.5
  8. 8. There are many reasons to introduce Lean techniques in an organization because it maycontribute substantially to cutting costs and providing competitive advantages. Leanbenefits include reduced work-in-process, increased inventory turns, increased capacity,cycle-time reduction and improved customer satisfaction. According to a recent survey ,of 40 companies that had adopted LM, typical improvements are visible in three areas.These improvement areas are: operational improvements (reduction of lead time, increasein productivity, reduction in work-in-process inventory, etc.), administrativeimprovements (reduction in order processing errors, streamlining of customer servicefunctions so that customers are no longer placed on hold, etc.) and strategicimprovements (reduced costs, etc.). Despite the several success stories associated with the Lean concept, it does have someshortcomings. Examples of shortcomings that can be found in the literature on the subjectare the following: The Lean organization may become very susceptible to the impact ofchanges. The Leanness in itself leads to reduced flexibility and less ability to react to newconditions and circumstances . JIT deliveries cause congestion in the supply chain thatlead to delays, pollution, and shortage of workers and so on . To summarize, Leanrequires a stable platform from which scale efficiency can be maximized. Highlydynamic conditions cannot be dealt with because there is no room for flexibility due tothe focus on perfection, which is always a function of particular market conditions at acertain period of time .As a result, the analysis is done with three different aspects: basic assumptions, changeprinciples and interventions.Methodology/ Analysis:As per Hellsten and Klefsjo A methodology, “consists of a number of activitiesperformed in a certain way”. According to them tools are defined as: “rather concreteand well-defined tools, which sometimes have a statistical basis, to support decision-making or facilitate analysis of data”. Tools that are frequently mentioned in the TQMliterature include the seven quality control tools, see Shewhart and Ishikawa and theseven management tools, see Mizuno . The improvement cycle is also a commonmethodology used in order to improve the business, according to Evans and Lindsay .The improvement cycle is composed of four stages: plan, do, study and act (PDSA).Total quality management (TQM) is an integrated organizational effort designed toimprove quality at every level. There are many tools of lean manufacturing, many ofthem are not new and many have been developed and improved as part of the ToyotaJust in TimeJIT or Just in Time is one of the main principles of Lean Manufacturing, that ofproducing only what the customer wants, where the customer wants, when the customerwants it. Not producing large batches of stock that the customer may or may not require.To implement JIT you need to implement flow through your value stream and reducebatch sizes as much as possible, the ideal batch size been that of .Many people will sayOM Theoretical Assignment Group No.5
  9. 9. that JIT is not possible in their industry, but every day we make technical advances thatallow this possible in almost any industry..Value Stream MappingValue stream mapping is one of the most important tools of lean manufacturing, it allowsyou to map out your whole value stream from materials through to your customer andidentify the areas of waste and delays.Through the creation of current value stream maps you can highlight the problems andcreate your future state maps and action plans to improve your value streamsJidoka and AutonomationAutnonomation or Jidoka is the principle of having automation with a “human touch”,machines and processes that detect when something is wrong and stop to allow humanintervention. Through this method one operator can watch several machines rather thanbeing stood over the one machine waiting for something to go wrong.There are many reasons to introduce Lean techniques in an organization because it maycontribute substantially to cutting costs and providing competitive advantages to theorganisation. Lean benefits include reduced work-in-process, increased inventory turns,increased capacity, cycle-time reduction and improved customer satisfaction. Accordingto a recent survey of 40 companies that had adopted LM, typical improvements arevisible in three areas in the companies. These improvement areas are:1.Operational improvements which include: reduction of lead time, increase inproductivity, reduction in work-in-process inventory, etc.,2. Administrative improvements which comprises of reduction in the order processingerrors and,OM Theoretical Assignment Group No.5
  10. 10. 3. Streamlining of customer service functions so that customers are no longer placed onhold, etc. and strategic improvements i.e. reduced costs, time etcTools: Lean principles are fundamentally customer value driven, which makes themappropriate for many manufacturing and distribution situations. Five basic principles ofLM are generally acknowledged: Understanding customer value. Only what the customers perceive as value is important. Value stream analysis. Having understood the value for the customers, the next step is to analyze the business processes to determine which ones actually add value. If an action does not add value, then it should be modified or eliminated from the process. Flow. Focus on organizing a continuous flow through the production or supply chain rather than moving commodities in large batches. Pull. Demand chain management prevents producing commodities to stock, i.e. customer demand pulls finished products through the system. No work is carried out unless the result of it is required downstream. Perfection. The elimination of non-value-adding elements (waste) is a process of continuous improvement. “There is no end to reducing time, cost, space, mistakes and effort” .Limitations :  Choosing a difficult or low-impact project as the first one. Lean isn‟t difficult, but can be complicated because of all the variables and communication involved. If the first Lean project isn‟t successful or generates little return on investment, cooperation and support for future projects will fade.  Overlooking administrative areas. Some manufacturing environments, especially continuous processes (e.g., high-volume chemical manufacturers) have only small or insignificant opportunities in the production or operations areas. Implementing Lean there will provide little impact.  The company spends too much time on training and not "doing," or they start at the wrong place.  Failing to expand lean implementation to the supply chain. Because of the need for just-in-time delivery of materials, minimization of inventories and Leans dependence upon high quality products and services, companies need to bring suppliers into the improvement efforts. If critical suppliers cannot deliver on time, and in smaller quantities, the benefits of Lean will be greatly diminished or even non-existent. development of a lean supply chain is probably one of the most difficult tasks, but more financially rewarding, aspects of implementing Lean.  Lean principles do not always apply when customer demand is unstable and unpredictable.  The Leanness in itself leads to reduced flexibility and less ability to react to new conditions and circumstances.  Initial introduction costs- training workers and disrupting current production whilst being implemented are high in the TQM model.OM Theoretical Assignment Group No.5
  11. 11.  Benefits may not be seen for several years while using the TQM model.  Workers may be resistant to change – may feel less secure in jobs because of the implementation of the TQM model.  Another limitation of total quality management as a tool for restructuring is its internal focus. The difficulty in identifying the "customer" for public sector goods and services and the focus on internal work processes make it hard to truly involve citizens in these TQM efforts. Companies seek to identify external customer needs with surveys and include elected representatives on committees, but they don‟t include citizens on committees.Future DirectionIn this study, main emphasis is on LM and TQM through Lean thinking approach. Acomparison of two management philosophies is the inadequacy of this study. The authorssuggest that a comparative study among more than two management philosophies (e.g.LM, TQM, TPM, CWQC, 6Sigma….) considering new approaches can be done in futureresearch. TQM is a customer-driven process that applies the scientific method to theimprovement of organizational management systems. Many current TQM practitionersget worried by the dogmatic emphasis that some TQM “gurus” place on different aspectsof the philosophy and on the lack of universally accepted definitions of many of the TQMterms that are commonly employed.Every TQM organization must capture the hearts and minds of everybody in theorganization, starting at the top and permeating down in a series of customer/supplierrelationships throughout the whole organization and beyond. Here initiatives likeInvestors in People pioneered by the Department for Education and the TEC movementhave a vital and complementary role in helping to establish a total quality environment.So where does all this lead? We have seen that many of the factors defined in BS 7850date back for millennia. Many of the factors that have been so strongly advocated inrecent decades are now becoming well rooted in most successful organizations. A recentissue of The International Journal of the ISO 9000 Forum tells us that over 70,000certificates of conformance to BS/EN/ISO 9000 have been issued worldwide. The mostneglected factor is still, in my view, the people factor, that special blend of thepsychological, the philosophical and the practical. So probably the most practical advicefor the TQM committed industrialist seeking “continuous improvement” is to concentrateon the people and pay attention to such initiatives as Investors in people as a practicalway forward. Future perspective of lean thinking can be stated in following way: Steady diffusion of the core ideas in every manufacturing industry across the world. Steady application of the core ideas in related activities like logistics and warehousing. Beginning of diffusion of the core ideas in activities “beyond the factory” after a false start with business process reengineering in the early 1990‟s The prospect of dramatic progress in the years ahead is real if we can address several challenges.OM Theoretical Assignment Group No.5
  12. 12. Conclusion:Albeit TQM and Lean have the same origin (the quality evolution in Japan), the conceptshave developed differently. In the beginning of the 1990s TQM became a very popularnotion among researchers and practitioners who wanted to describe how organizationsshould work to obtain better performance and customer satisfaction. Many researchersalso talk about failure of TQM. However, LP is not a singular concept and it cannot beequated solely to waste elimination or continuous improvement, which constitute itsguiding principles, nor to JIT, pull production, kanban, TQM, or employee involvement,which make-up some of its underlying components. In the comparative study byAndersson et al. they claim that the Lean approach is project management and Lean is notapplicable in all industries! A LP system pushes all decisions as close to the source of theproblem as possible. A value stream includes all the operations and processes totransform raw materials into finished goods or services, including non-value addingactivities. According to our review of the literature, there is not common point of Leanand TQM clearly. Since LM evolution is LT. The idea of a LP system is reviewed in LTIn summary, although Lean and TQM both aim to improve quality, TQM reaches acertain point or stage at which no more improvements can be made. LM, however,focuses on taking quality improvement to the next level.. Though aim of both TQM andLM is same to improve quality but TQM reaches a certain point at which no further impimprovement can be made. And LM emphasized to take quality improvement at nextlevel. The approaches followed by TQM and LM also create difference between them.TQM views quality as internal requirement while LM focuses on reducing wastages.Basically, LM requires skilled, trained professionals and TQM may not. TQM can be apart time thing and done by anyone. According to review there is no common point between Lean and TQM clearly.SinceLM evolution is Lean thinking. Based on the new lean thinking approach, Lean is not justa box of tools; it is a system, philosophy and thinking! Therefore, Lean thinking approachcan be used to create synergic power for implementation of LM, inducing morecompetitive market among companies.In this paper more emphasis is given on the comparison between LM and TQM.Comparative study on other management philosophies such as TPM, 6 Sigma can bedone for future studies.OM Theoretical Assignment Group No.5
  13. 13. References / Bibliographies TQM&id=1173044 Scale_Lean_Manufacturing_Initiatives_upon_Manufacturing_process_innovation _in_Irish_Companies.pdf Theoretical Assignment Group No.5