tqm overview

7/31/2019 TQM Overview

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Quality Way

DMR PandaPMI


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Employees/Aircraft Passenger/EmplIndia 664 153

gapore airlines 341 441France 277 426irates 267 703ish Airway 227 573thansa 185 714ted Air lines 174 953anese Airlines 146 1589

ustry Average 162 986

Source : BW, December 9, 2002


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Why Quality Revolution?

Survival Survival

You may thinking that you are onYou may thinking that you are ona right track, but if you keep ona right track, but if you keep onsitting there some one will oversitting there some one will over

run you.run you. A Japanese saying


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ACHIEVING EXCELLENCE


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History of quality

1450 BC Egypt:1450 BC Egypt: PyramidsPyramids

1750 France:1750 France: Interchangeability ConceptInterchangeability Concept

Upto 1950:Upto 1950: Quality by InspectionQuality by Inspection

1950 65 :1950 65 : Quality assuranceQuality assurance

1965-80:1965-80: Total Quality ControlTotal Quality Control

Beyond 1980s:Beyond 1980s: Total Quality ManagementTotal Quality Management


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What is quality ?

Quality should be aimed at the needs of theconsumer, present and future- Deming

Absenteeism is a function of Poormanagement; if people feel important to a

job, they will come to work Deming


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What is quality ?

Fitness for purpose or use Juran

Quality doesnt happen by accident; ithas to be planned Juran

Defects are Gold in the Mine- Juran


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What is quality ?

Conformance to requirements Crosby

Quality is free - Crosby


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The total composite product and servicecharacteristics of marketing, engineering,manufacture and maintenance throughwhich the product and service in use willmeet the expectation by the customer

Feigenbaum

The Hidden factory-loss to the tune of 40% by not getting it right the first time.

Feigenbaum

What is quality ?


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The totality of features and

characteristics of a product orservice the bear on its ability tosatisfy stated or implied needs

BS 4778, (ISO 8402, 1986) Quality Vocabulary:Part 1

International Terms

What is quality ?


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Quality is Fully meeting agreed requirement

of internal and external customersat a specific cost,

every time,

all the time.


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Basics of TQM

TQM

Customers delight

ContinuousImprovement

Participationby all

ContinuousImprovement-CI is a activelypromoted andencouraged.

Contribution &Participation ispromoted,supportedrecognized and

rewarded

Customer First Thinkingfor customer before anyaction in the organization


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Cause & Effect Diagram for Japanese Products

PoorQuality of

JapaneseProducts

Materials Machine

Methods Man


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TQM by JUSE (1998)

TQM is a set of systematic activities carried out by the entire organization to effectively and efficiently achievecompany objectives so as to provide

products and services with a level of quality that satisfies customers at theappropriate time and price


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What TQM Implies?

TOTAL QUALITY

Participationby allEmployees,in allDepartments,at all

Levels

Using theprocess of build-maintain-improve Quality,thinking in &practicing the

Quality Way

Achieving:

P: PRODUCTIVITY

Q: QUALITY

C: COST

D: DELIVERYS: SAFETY

M: MORALE

MANAGEMENT


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Typical TQM Model

Business Excellence,BSC

Six Sigma, TPM, Benchmarking,ISO

STRATEGIC

OPERATIONAL

PEOPLE INVOLVEMENTKAIZEN

[Quality Circle,Suggestion system, 5 S

]


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I MPRO VEME N T

TIME

KAIFU

KAIZEN

KAIRO

ISO system

DRAM

ISO system

Lean EnterpriseBusiness process re-engineering {BPR}Six sigma

C o r r e

c t i o n

P r e v e n

t i o n

B r e a k t h r

o u g h

i m p r o

v e m e n t s


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Continuous

improvement


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It is a positive attitude through

Existing operation has always a lot of room for improvement

Existing facilities & methods can

always be improved by effortThe accumulated improvementsmakes big difference

Continuous Improvement - KAIZEN


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Worst CompaniesWorst Companies

Top

Middle

Supervisor

Worker M a i n t a i n

Concern


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Breakdown between Maintenance, Kaizen &Improvement

Concern

Improve

Kaizen

Maintenance

Top

Middle

Supervisor

Worker


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Traditional Management Philosophy

GEMBA-The Work Place

CustomersExpectation

CustomersSatisfaction


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GEMBA

ManagementSupport

CustomersExpectatio

n

CustomersSatisfactio

n

Kaizen Philosophy of Gemba Management


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Production

ProductionCapability

Quality Circles

GEMBA


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Quality Circles

Originated in April 1962, by Dr K. Ishikawa

Adopted in India by BHEL-Ramachandrapuram in 1970s.

Made famous in 1982 by Sh ND Tiwari

In 1983, Seminar and training programme was carried out in Vigyan Bhawan for CMDs and Sr. officials..

GEMBA

Lower Mgmt

Middle Mgmt

Top Mgmt


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Quality CirclesQC Circle is a small group, consisting of

Gemba people-First line work place people,work towards improving and maintaining thework place.

GEMBA

Lower MgmtMiddle Mgmt

Top Mgmt

They display creativity, make self development and promoteself-actualization.

Enhance Customer Satisfaction, Safety, reduce fatigue,promote productivity.


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Quality CirclesHigher officials, must necessarily, engagethemselves in a noticeable TQM activity,relevant to other employees like Kaizen, 5S.

GEMBA

Lower MgmtMiddle Mgmt

Top Mgmt

Give Guidance and Support..

Enhance participation of everybody.

Make it evident that QC is not an addendum, butprimary responsibility like other jobs.

We make People before we make it products. M. Matsushita, National Panasonic

GEMBA


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Quality Circles

QC Circle is a Group Oriented Kaizen activity.

Behind every suspenseful QC circle, there is a (an exhausted) Manager, playing invisible but Vital supporting role.

Suggestion system, QC circle shows that employees areactively involved in Kaizen.

QC activities should be made Visually seen by makingbanners, posters---, so that employees are motivated.

GEMBA

Lower Mgmt

Middle Mgmt

Top Mgmt

GEMBA


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Quality Circles

What QC Circle is Not??

It contributed to Japans success alone.

QC is TQM.

QC is for money saving!!

Effectiveness of any Organisation adopting QCC ismeasured by number of QCs.

GEMBA

Lower Mgmt

Middle Mgmt

Top Mgmt

GEMBA


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Quality Circles- The ProcessGEMBA

Lower Mgmt

Middle Mgmt

Top Mgmt

Orientation of all Executives, regardless of hierarchicalposition ( in batches, if not possible at one go )

Orientation of all potential QCC members and solicitingvolunteers.

Each QCC must not have more than 6-8 members.

There is to be facilitator for each QCC and one overall co-ordinator (who has a penchant for Quality, enthusiastic).

Training of QCCs along with the Facilitators, spread over 4-5months.


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Improvement Ideas

Japan: 24 improvement ideas in writingper employee each year

U.S. : Average less than one

United Kingdom: one idea every six years

India: Average 2-3 ideas per employeeper annum (Nestle)


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Improvement Ideas

24/72 Rule in Florida Power & Light, In 24 hours, suggestion is acknowledged

by supervisor

In 72 hours, employees gets a feedbackon status

Lunch with Head-Power Station who gives morethan 10 suggestions that are considered forimplementation

Employees can track their suggestions and gets toknow POINTS accumulated


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Six Honest

Serving Man

Rudyard Kipling , 1865 -1936 from "The Elephant's Child" in Just So Stories

I keep six honest serving men(They taught me all I knew );

Their names are What and Why and WhenAnd How and Where and Who.

I send them over land and sea,

I send them east and west;But after they have worked for me,

I give them all a rest.


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Who is the Customer


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Cost of Quality

1.Cost of Conformance

2.Cost of NonConformance

Cost Of Quality


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Cost Of Quality

Cost of Conformance

Cost of Prevention; eg Training, Planning, design, analysis

Cost of Appraisal, eg Inspecting, checking, auditing, expe

Cost of non Conformance

Cost of Internal Failure, eg prior to delivery, Scrap & rewo Cost of External Failure; eg after delivery, warranty, adju

Good

Bad Ugly

Cost Of Q alit


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Cost Of Quality

Time

Prevention cost

Appraisal cost

Totalcost of Quality

L o s t o p p o r t u n i t y

E x c e e d i n g r e q u i r e m e n t

Internal +External Failure


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Cost of Quality%

TOTAL SALES

Appraisal

Prevention

InternalFailures

ExternalFailures

C O Q

Cost of uality

Cost of Quality


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Cost of Quality

Operating Cost

Profit Cost of Quality, 20-

30 %


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http://www.statgraphics.com/quality_assessment.htm


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Cost of Quality
http://www.pickprints.com/redirect.asp?item=826960&AID=1192851031&PSTID=1&LTID=1


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Cost of Quality traditional view

cost

defects

Time


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cost

defects

Time

Cost of Quality TQM View


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1-10-100 Rule

Prevention:Correction:Failure

= 1:10:100


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ity doesnt happen by AcciIt has to be Planned


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TQM Ways

Eastern ways

Western ways

Through Quality Awards

l d


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Quality paradigms

Junk Desired Quality

Bad Business Small, selected market

Quality HighLow

Cost

Low

High

Q lit dig


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Quality paradigms

Low quality at low cost amounts to producing junk for which there is no place in a competitiveworld.

Low quality at High cost amounts to theexploitation of the market and will flourish onlyin a protected market a phenomenon that wascommon before the liberalisation of the

economy in many countries. It also indicatesinefficiency in production.

Q li di


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Quality paradigms

High quality at High cost has a very smalland select market catering only to the smalland affluent section of society.

High quality at low cost is the mostdesirable combination of attributes and the bestmanufacturers aspire to occupy space in thefourth quadrant.


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Some Facts


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Some Facts

1. Its estimated that 80% of lost customer stopdoing business with a company because of Quality problems.

2. It costs five times as much to attract a new

customer as it does to keep a current one.3. A Harvard Business School study found that a

5% decrease in customer defections resulted inprofit increases ranging from 25-85% of

operating earnings.

A S


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A Story

Captain Eddie Rickenbacker was president of EasternAirlines, he demonstrated to top management the impactof poor service. Baggage handling had deteriorated badlyat Eastern, and nothing he had done had improved it. SoRickenbacker called a meeting of his top managers in a

hot Miami hotel with no air conditioning.

When the managers checked in, Rickenbacker had thedesk clerks tell them their bags would be brought to theirrooms. But the bags were locked in a storage areainstead. The managers arrived for the next morningsmeeting mostly unshaved and in dirty clothes.


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Western ways for ensuring Quality


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2. The system for causing Quality is prevention




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3. Performance standard is zero defect.



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Control: Cost of Quality


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Control: Cost of Quality

Case Study: Cost of Poor Quality


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Sunshine Co, a leading manufacturer of tyres in India, was set upat Kota by Sanghi Group in 1970 in technical collaboration withTranstyre Inc of USA. The company has a manufacturing capacityof 1.2 million tyres per year. In view of the strong competition,Sunshine decided to examine its cost of quality.The following data was collected for the financial year 2003-04-

1. Production for the year 512500 nos2. Sales Rs 41 crores3. Scrap tyres: Rs 187. 4 lakh4. Transport of warranty tyres: Rs 2.2 lakh

5. Old stock scrapped : Rs 3.2 lakh6. Incoming inspection: Rs 32. 6 lakh7. QA, Engg: Rs 7.8 lakh

8. Rework: Rs 73.3 lakh9. In process inspection: 32.5 lak10. Process Engg: 30.0 lakh11. Final Inspection:65.9 lakh

12. Warranty returns:408.2 lakh13. Audit insp: 25.2 lakh14. Sold as seconds: 22.8 lakh

Calculate the following:1.Prevention cost, 2. Appraisal cost,3. Failure(Internal/External) costWhat is your comment about the various costs ?What would you recommend ?

y y

P fil f P bl i O i i


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Profile of an Problematic Organisation

1. Outgoing services normally contain deviations fromagreed upon requirement.

2. Organisation has experienced (qualified) personnelfor reworking /rectifying (to keep customers happy)

3. Management doesn't provide a clear performancestandard or defined quality level so employeedevelop their own .

4. Management doesn't know/appreciate price of non

conformance.5. Management denies that it is the cause of the

problem


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ki g S i g


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aking a Swing

aking a Swing


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aking a Swing

aking a Swing


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aking a Swing


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king a Swing


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king a Swing


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Product Quality & Business Quality


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Product Quality & Business Quality


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5 S IN EFFECT


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Shitshuke[Sustain /discipline]

Make a habit of maintainingestablishedprocedures

Seiri[Sorting/organising]

Seiton[Set in order/systematizing/orderliness]

Keeping neededitems in the correctplace to allow foreasy and immediateretrieval

Seiso[Shine/Spic & Span/Clean with inspection]

Keeping theworkplace clean;

the human touch isan essentialprerequisite

Seiketsu[Standardization]

Integrating 3S intoroutine job

Distinguish neededitems from unneeded

items and eliminatethe latter

Problems in Workplace


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Unnecessary stock isoccupying the space of workplace and use of thespace becomesinconvenient.

Making a detour becauseof unnecessary things arekept on the workshop.

It takes some time to findnecessary thing sincemany unnecessary thingsare kept together withnecessary things.

Before After


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The location of materialis only known by incharge person.

Paper/documentslocation is only knownby in charge person.

The key of a tool box

cannot be found.


5S Level 1 & Level 2


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5S Level 1 & Level 2

Level 1 Good looking working environment

The location of goods are decided Things are kept in order People are following rules Working area is clean


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I S : SEIRI - SORT


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"Sorting" is going through

everything in work area. Keeping only what is necessary.

Moving less frequently useditems to a separate, commonstorage area.

Items not in use to be discarded .

Don't keep things around just because they

might be used, someday, by some body.


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Show no mercy disposing useless items

Mess is like gas, it takes all available space.

SOME ADVANTAGES OF SEIRI SOME ADVANTAGES OF SEIRI


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Eliminates unnecessary items from workplace,frees up space .

Enhances flexibility , because once unnecessary

items have been discarded, only what is neededremains.

Time is saved and productivity is improved.

Saves costs in terms of moving items to theirrightful places (other depts.. Where they areactually needed).

Action Plan for SEIRI


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Define your objectives:Why are you doing Seiri?

Decide where will you do Seiri, andWhere will you store things.

When will you do Seiri?Decide the time plan. Who will do Seiri?

Decide the group members & leader

How will you do Seiri,Decide on the method you will use.


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With all the office paperworknow easy to find, in labelledareas, and on the wall for ease of

Team access, the results weredramatic!

Within 4 weeks SOLAS recordedNO misplaced pieces of paperwork.


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Success Stories at Milton Plastics


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1. Each item traced easily. 1. Unwanted items

removed through SEIRI.1. Missing items detected

immediately.1. 15% search time

eliminated, thus networking time increased.

1. Prevents frustration &distress.

nged drawer ensures easy visibility & simpler mon



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Before After / BeforeToilet Workers


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Before After / Before

Before After / BeforeToilet Staff


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Before After / BeforeLocker Room


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2S - Seiton (Arranging)


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Easy toStore

Easy toIdentify

Easy toPick up

FIFO Easy toReplenish

Easy to Return toOriginal Location

( g g)Concept - To Arrange Parts for Ease of Use

- To Arrange According to a Rational and Methodical Way

Determine where to locate

Determine where to Store

AS-IS STATE LAYOUTMDs Cabin


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15

14

13

12 10

9

8

7

6

5

4

32 1

In such scenario, the harder employees work, the least productivethey become,.

If such indications are at our office, this is the right time to go for

5s and best opportunity to improve productivity of employees.

Secretarys Desk

DESIRED LAYOUT


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13 12

MDs Cabin

10 9

8

7654321

Desired layout to be made using all visuals, alternatives can bebrainstormed with colleagues

11SecretarysDesk

Filing Cabinets in U-Shape to havefaster and easy accessibility

MAKE A DESIRED LAYOUT BASED ON SEITON GUIDELINES

Eliminating 3 Biggest Culprits


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3 M" MUDA(Waste) " MURI ( Strain )" MURA(Irregularity)

Eliminating 3 Biggest Culprits

Success & Happiness Equations


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Average Organization= Great Organization + MUDA

Great Organization = Average Organization - MUDA

Humans= God + MUDA

God = Humans - MUDA

Good to Great Journey

Happiness Journey

Waste Elimination


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Value Added time : What thecustomer is willing to pay for

37%37%

13%13%

TPM activities, breaks, lunches5S time, team meeting

50%50%

n Valueded time :nnecessary

motionaterial handlingaiting time

ework/ scrapennecessary part

processingxcess inventoryver Production

13%13%

89%89%

7 Seven wastes


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1. Unnecessary Motions1. W aiting for work and materials

2. T ransportations

3.O verproduction4.P rocessing5.Inventories6.C orrective operation

Other Tools


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Suggestion schemesQuality circlesJust in timeTotal Productive MaintenanceTeam Effort

Benchmarking

Process ReengineeringSix Sigma

Golden Rules of TQM


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Golden Rules of TQM

Find Root cause

Ask WHY as many times?

5 W & 1 H

(why, where, when, what, who, how)

Why Why diagram


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Excessive time spentOn correspondence

Too Many Errors Too Many Reviews

Typists NeedMore Training

Need Better Equipment

Standards Not Clear

Fear of Top Boss

The Five Ws and The One H


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Who What Where1. Who does it?

2. Who is doing it?3. Who should be doing it?4. Who else can do it?5. Who else should do it?6. Who is doing 3-Mus?

1. What to do?

2. What is being done?3. What should be done?4. What else can be done?5. What else should be done?6. What 3-MUs are being

done?

1. Where to do it?

2. Where is it done?3. Where should it be done?4. Where else can it be done?5. Where else should it be

done ?6. Where are 3- MU s being

done?


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Quality thruSix Sigma


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Sources:Eero E. Karjalainen: Laatuviesti 4/99, s.26-29Thomas Pyzdek: The Six Sigma Handbookhttp://www.qualitas-fennica.fi/artikkelit/sixsigma.html

Six Sigma Process Improvement Roadmap TheDEMAIC Methodology


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What isimportant?

How arewe doing?

What iswrong?

Whatneeds tobe done?

How do weguarantee

performance?


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BIG Q AND LITTLE q


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All costs that would disappear if everything were perfect.

Costs associated withdeficient manufacturedgoods

COST OF POOR QUALITY

All industries, manufacturingservice, government, etc.,whether for profit or not

ManufacturingINDUSTRIES

All who are affected, externaland internal

Clients who buy theproduct

CUSTOMER

All processes; manufacturingsupport, business etc.

Processes directly relatedto manufacture of goods

PROCESSES

All products, goods and services,whether for sale or not

Manufactured goodsPRODUCTS

Qq

Source: Juran on Leadership on Quality


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Assessment Process

CommendationsCommendations for for StrongStrong Commitment to ExcelCommitment to Excel

Commendations for SignificantCommendations for Significant

Achievement Achievement

PrizesPrizes

Award Award (600) + & Role Modal(600) + & Role Modal

((600) + & Best in600) + & Best inthe categorythe categ ory

501 to 600501 to 600

401 to 500401 to 500

CII EXIM BE AWARD Strategic QM


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STRONGCOMMITTMENT

SIGNIFICANT

ACHIEVMENT

PRIZES

CII EXIMAWARD

>> FOUR LEVELS OF RECOGNITION

20052002

TATA MotorsInfosys

2000 TATA Steel

1998 Maruti1997 HP India

CII EXIM Winners

DADRI

Mahindra & Mahindra

Sona Koyo

Sundaram Brake liningsBirla Cellulosic

Hi tech Carbon

DEMING WinnersDEMING Winners

400-500

500-600

600 +


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BUSINESS EXCELLENCE

Broad Improvement Framework

3-4 years journey for WORLD CLASS performance

Dual Strategy of Internal & External Assessment

Assessors Comprehensive Feedback- basis for ImprovementFramework besides organizational Inputs

Time bound improvement plans & implementation

Developing pool of Internal Assessors

Continuous Education & Training on Business Excellence

Sharing & Exchange of experience with external Organizations


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Mission-Vision-Values-Strategy-Outcomes/Results


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MISSIONWhy we exist

VALUES

Whats important to usVISION

What we want to be

STRATEGYOur game plan

BALANCED SCORECARDTranslate, Focus and Align

STRATEGIC INITIATIVESSet priorities for actions necessary to succeed

EMPOWERMENT / PERSONAL OBJECTIVESMotivate employees

STRATEGIC OUTCOMES

SatisfiedSHAREHOLDERS

DelightedCUSTOMERS

Efficient and effectivePROCESSES

Motivated & PreparedWORKFORCE

TOTAL QUALITY MANAGEMENTImprove local processes

Typical Business Excellence Model


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What capabilities, support, direction & tools do ouremployees require, to help them execute ourstrategy

Who are our targeted customers & what isour value proposition in serving them?

To satisfy our customers & share holders, atwhat processes must we excel ?

How we should appear to our stake holders?


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Thank You


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Thank you

tqm overview

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