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TQM, ISO 9000, JIT, KAIZEN,SIX

SIGMA, AQL

LECTURE BY NITIKA RANA

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Total Quality Management

TQM refers to activities that involve everyone in organisation in anintegrated effort to improve performance at every level.

The goal of TQM is to maintain the organisations competitiveness inthe world markets

TQM PERSPECTIVES ARE

customer focus An emphasis on quality

Team work

Individual empowerment

Training and education

Involvement of all employees

Commitment by management

Continuous process improvement


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QUALITY IS .the QUALIFIER!

Doing it right first time and all the time. This boostsCustomer satisfaction immensely and increases efficiency of

the Business operations. Clearing the bar (i.e. Specification or Standard stipulated)

Excellence that is better than a minimum standard.

Quality and customer expectations

Quality is also defined as excellencein the product or servicethatfulfills or exceeds the expectations of the customer.

There are 9 dimensions of qualitythat may be found inproducts that produce customer-satisfaction.

Though quality is an abstract perception,it has a

quantitative measure- Q= (P / E ) ,where Q=quality, P= performance(as measured by theMfgr.), and E = expectations( of the customer).


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The 9 Dimensions of Quality

Performance: Primary product Characteristics

Features: Secondary characteristics, added features

Conformance: Meeting specification or industry standards,

Reliability: Consistency of performance over time, average

time for the unit to fail Durability: Useful life,

Service: Resolution of problems and complaints

Response- of Dealer/ Mfgr. to Customer: Human to human

interface Aesthetics of product: exterior finish

Reputation- of Mfgr./Dealer: Past performance and otherintangibles, such as being ranked first


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TQM requires six basic Concepts:

Management commitment to TQM principles andmethods & long term Quality plans for theOrganisation

Focus on customers internal & external

Quality at all levels of the work force.

Continuous improvement of theproduction/business process.

Treating suppliers as partners Establish performance measures for the

processes.


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Effects of poor Quality

Low customer satisfaction

Low productivity, sales & profit

Low morale of workforce

More re-work, material &labour costs High inspection costs

Delay in shipping

High repair costs

Higher inventory costs

Greater waste of material


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Benefits of Quality

Higher customer satisfaction

Reliable products/services

Better efficiency of operations

More productivity & profit

Better morale of work force Less wastage costs

Less Inspection costs

Improved process

More market share Spread of happiness & prosperity

Better quality of life for all.


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TQM implementation

Begins with Sr. Managers and CEOs

Timing of the implementation process

Formation of Quality council

Union leaders must be involved with TQM plans

implementation

Everyone in the organisation needs to be trained

in quality awareness and problem solving

Quality council decides QIP projects.


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New & Old Culture

Quality Elements Previous state TQM

Definition Product Oriented Customer-Oriented

Priorities Second to Service and

Cost

First among equals of

Service and cost

Decision Short-term Long Term

Emphasis Detection Prevention

Errors Operations System

Responsibility Quality Control Everyone

Problem Solving Manager Teams

Procurement Price Life-cycle costs,

partnership

Managers Role Plan, assign, control and

enforce

Delegate, coach, facilitate

and mentorLECTURE BY NITIKA RANA

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Strategic Quality Goals and Objectives

Goals must be focused

Goals must be concrete

Goals must be based on statistical evidence Goals must have a plan or method with

resources

Goals must have a time-frame Goals must be challenging yet achievable


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What is customer satisfaction?

Is it due to Product quality?

Is it due to pricing?

Is it due to good customer service ? Is it due to company reputation?

Is it something more?


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ISO 9000

The international Organization forStandardization (ISO) was found in 1946 inGeneva, Switzerland.

Its mandate is to promote the development ofinternational standards to facilitate the exchangeof goods and services worldwide.

The ISO technical developed a series of international standards for quality systems, first

published in 1987. Most of the countries have adopted the ISO 9000

series as their national standards.


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These standard seek to ensure that a company has inplace the necessary organization, commitment andsystems to consistently meet the defined quality andperformance standard.

By design, the series can be tailored to fit anyorganizations needs whether it is large or small.

It can be applied tomanufacturing as well as servicessectors.

In very simplified terms, the standards require anorganization to say what it is doing to ensure qualitythen do what it says and finally document or prove thatit has done what it said.


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ISO 9000 series:

ISO 9000:- Quality Management and Quality Assurance

Standards-Guidelines, fundamentals & Vocabularydiscusses fundamental concepts related to QMS andprovide terminology used in other standards

ISO 9001: Quality Management Systems- Model forQuality Assurance in design / Development,

Production, Installation and servicing ISO 9002: Quality Management Systems- Model for

quality assurance in Production and Installation

ISO 9003: Quality Management Systems- Model for

quality Assurance in Final Inspection and Test ISO 9004: Quality Management Systems- Model and

guidelines for Performance Improvement.


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Benefits of ISO Registration

Customers want ISO certified vendor or supplier toensure quality compliance of the supplies.

Internal quality : reduction in scrap, reworknonconformities

Production reliability: reduction in number of breakdown per month, percent down time per shift

External quality: reduction in customer complaint andreturn

Time performance: improved on-time delivery,throughput time

Cost of poor quality: External nonconformities, scarp,rework are reduced.


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Kaizen

Kaizen is a Japanese word. It means continuousimprovement process of creating more value and less non-value adding waste.

Kaizen is not just a philosophy of the workplace, it meanscontinually improving in every facet of life, includingbusiness, industry, commerce, government, and diplomacy,among others.

It involves incremental improvement involving everyone.

The improvements are usually accomplished at little or no

expense without sophisticated techniques or expensiveequipments.

If focuses on simplification by breaking down complexprocesses into their sub-process and then improving them.


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Kaizen can be regarded as culture that encouragessuggestions by operators who continually try toincrementally improve their job or process.

Kaizen helps to achieve process more efficient,effective, under control and adaptable.

Kaizen training has focused on both philosophical andcultural concepts and is based on the belief that thedevelopment of an individuals skill benefits both the

company and that individual, and that peopleconstantly aim for self-improvement


Th K i i t f

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The Kaizen improvements focus on

the use of:

Value-addedand non-value addedwork activities

Muda, seven classes of wastage: over production, delay,transportation, processing, inventory, wasted motion anddefective parts

Principles ofmotion studyand use ofcell technology Principles ofmaterials handling and use ofonepiece flow

Documentation ofstandard operating procedures

Use of5S

Visual Management

Poka-yoke to prevent or detect errors

Team dynamics which includes problem solving,communication skills and conflict resolution


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Flow chartof Kaizen

Procedure


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Six Sigma

Sigma () is Greek symbol, used for statistical measurementof dispersion called standard deviation.

Smaller the value of sigma, less variability in the process.

Six sigma simply means a measure of quality that strives for

near perfection. A defect is any mistake that results in customer

dissatisfaction.

Six sigma is a disciplined, data-driven approach andmethodology for eliminating defects.

To achieve six sigma, the process must not produce morethan 3.4 defects per million opportunities.

Six Sigma statistically ensures that 99.9997% of all productsproduced in a process are of acceptable quality.


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Six Sigma

Six Sigma methodology provides the techniquesand tools to improve the capability and reducethe defects in any process.

It was started in Motorola, in its manufacturingdivision, where millions of parts are made usingthe same process repeatedly.

Eventually Six Sigma evolved and applied to othernon manufacturing processes.

Today you can apply Six Sigma to many fields suchas Services, Medical and Insurance Procedures,Call Centers.


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Goal of Six Sigma

To reduce Variation and maintains consistent

quality

To reduce Defects

To improve yield

To enhance customer satisfaction

To improve the bottomline i.e. improvementin profits


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Key Elements of Six Sigma

Customer Satisfaction

Defining Processes and defining Metrics and Measuresfor Processes Using and understanding Data and Systems

Setting Goals for Improvement Team Building and Involving Employees

Involving all employees is very important to Six Sigma. Thecompany must involve all employees. Company mustprovide opportunities and incentives for employees tofocus their talents and ability to satisfy customers.

Defining Roles: This is important to six sigma. All teammembers should have a well defined role with measurableobjectives.


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Six Sigma Methodology

Six Sigma methodology improves any existing

business process by constantly reviewing and

re-tuning the process.

To achieve this, Six Sigma usesa methodology

known as DMAIC(Define opportunities,

Measure performance, Analyze opportunity,

Improve performance, Control performance).


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Define

Determine benchmarks, Set Base line, Determine Customer Requirement, Getcustomer commitment, Map Process Flow

Measure

Develop defect measurement, Develop data collection process, Collect data, Createforms, Compile and display data

Analyze

Verify data, Draw conclusion from data, test conclusions, Determine improvement

opportunities, Determine root causes, , Map causes to effect

Improve

Create improvement ideas, Create models, Experiment, Set Goals, Create problemstatement and solution statement, Implement improvement Method

Control Monitor improvement process, measure improvements statistically, Assess

effectiveness, Make needed adjustment.


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OPPORTUNITIES FOR ERROR AT

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OPPORTUNITIES FOR ERROR AT

VARIOUS SIGMA Number of defects per million

opportunities for error

Associated

sigma level

66,810 3.0

22,750 3.5

6,210 4.0

1,350 4.5

233 5.0

32 5.5

3.4 6.0


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Location of 6-sigma


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Just in Time (JIT)

This concept was developed by Japanese in 1950s.

JIT program is directed towards ensuring that the rightquantities are purchased or produced at right and that thereis no waste.

It is a holistic, quality based approach to requirementplanning and control which uses information systems, qualitytools and techniques , capacity scheduling, continuousimprovement and employee involvement to meet demandinstantly (JIT) with perfect quality and no waste.

It is not only the inventory and scrap. Any thing that does notadd value i.e. increases usefulness or reduces cost, can besaid as waste.

The objective of JIT is to reduce the inventory to zero level.


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AIM of JIT

To produce or operate to meet the requirements of thecustomer exactly without waste immediately ondemand.

The JIT concept identify operational problems by

tracking the following: Material Movements:- material stops, diverts, turns

backwards,

Material accumulation:- buffer for problems, excessivevarriability

Process Flexibility:- an absolute necessity for flexibleoperation and design

Valueadded efforts:- when much of what has done doesnot add value and the customer will not pay for it.


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Tools to carry out JIT

Flowcharting Process Study and analysis

Preventive maintenance

Plant lay out method

Standardized design

Statistical Process Control

Value analysis and value engineering

Batch or lot size reduction

Flexible work force

Kan-ban card with material visibility Mistake proofing

Pull scheduling

Set up time reduction


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100% inspection: Disadvantage

100% inspection is not cost effective and sometimes100% inspection may not assure the risk of inclusion ofdefective materials.

This is due to the reduction in effectiveness of the

personnel doing inspection due to monotonous natureof job and fatigue.

Use of automated systems of inspection has reducedsuch task to be done by human being.

In case, the use of automated system of inspection isnot possible, we have to rely on human efforts.

For this, Statistical sampling provides more economicalapproach compared to 100% inspection.


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Acceptable Quality Level

Majority of sampling is based on desired achievementof predetermined acceptable quality level (AQL).

AQL is a statistically measure of the consistency orquality predictor of manufactured goods.

The AQL is the maximum percent defective can beconsidered as process average for the samplingpurpose.

It is designated value of percent defective that theconsumer will accept.

The AQL may be defined in the contract or establishedinternally.


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A certain proportion of defective will always occur in anymanufacturing process, however, if the percentages doesntexceed a certain limit, it is often more economical to allowthe defective to go through rather than to screen entire lot.This limit is called Acceptable Quality level.

In other words, the maximum percent defective ormaximum number of defects per 100 units which can beconsidered satisfactorily as a process average is termed asAcceptable Quality level.

Sampling procedures are adopted under practical andeconomic considerations to accept or reject a lot on thebasis of the sample drawn at random from the lot. Hence itis necessary that a scientifically designed sampling plan isused to provide adequate confidence and protection to themanufacturer and the customer very economically.


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Formation of lots

Formation of lots will have to be planned with

respect to the following:

Type of lot(Stationary lot or moving lot)

Size of the lot.

Homogeneity of the lot.

Accessibility of item in the lot.


d l

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Stationary and moving lot

In a stationary lot items are presented simultaneously, all the sample itemsmay be obtained at one time in a moving lot, as the lot moves past thepoint of inspection, one or a few items are selected at a time. In manysituations stationary lots offer advantages over moving lots.

Size of lot

The general rule in the formation of lots is to make the lot size as large aspossible provided that a reasonable degree of homogeneity is maintained.But size of lot will have to be limited on account of the following factors:

The formation of larger lots may result in the inclusion of items differingmore widely in quality.

The production or supply of material may be such that the accumulation oflarge lots will be over a long period.

Due to shortage of space and handling problems.

The economic consequences of rejection of larger lots because of the costof scrapping, the cost of detailed inspection or the cost of reworking them.In forming a lot, therefore, compromise is to be made in respect of its size.


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Homogeneity of lots As the efficiency of sampling depends on the

degree of homogeneity of the lot, efforts shouldbe made not to have a mixed lot as far as possible

and to confine the lot to materials or productsoriginating from essentially similar condition.

Accessibility of item in the lot

It is also important from the point of view ofconvenience of inspection that the lot is easilyidentifiable and should have easy access to allparts of the lot to select representative sample.


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Determination of sample size

It is not possible to have a single rule for determination ofthe size of the sample. The number of items to be in thesample is dependent on the extent of error due to samplingthat can be tolerated which in turn depends to a large extenton the degree of homogeneity of the lot. The size of the lot

also comes into picture more from practical considerationthan any statistical reasoning.

For economical inspection of goods, a sampling plan wasdesigned by American military department known asAmerican Military standard. This standard has undergone

many revisions from MIL-STD-105A to MIL-STD-105E. Todaythis sampling is very much in use.

The acceptability of a lot submitted for inspection shall bedetermined with the sampling plan associated with thespecified value of AQL.


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Drawing of Sample

Ascertain the lot size Refer the sample size code letters table

Form the column indicating lot/batch size, identify the classto which the population belongs.

Identify the letter (alphabet) from: General InspectionLevel- II corresponding to population class. GeneralInspection levelII shall be normally used unless otherwiseinstructed.

Refer to table titled Single sample plan Normal Inspection

using the identified letter (alphabet) of General InspectionLevel II.

Use the decided value of AQL for acceptance and rejection.


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