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TOTAL QUALITY MANAGEMENT – 06ME758
N.Venkatesh, CEC, Bantawal Page 1
TOTAL QUALITY MANAGEMENT
UNIT 1
QUALITY, TOTAL QUALITY, TOTAL QUALITY MANAGEMENT
LEARNING OBJECTIVES
By the end of this chapter students should be able to
Understand the meaning of quality
Explain the basic frame work of Total Quality Management
Explain the various stages of development of TQM
Understand various benefits of TQM
QUALITY
Definition:
What is quality?
It is a relative word. It lies in the eyes of the perceiver
According to ISO 9000:2000, it is defined as the degree to which a set of inherent characteristics fulfills the requirements.
Q = P/E where P is performance and E is expectations.
DIMENSIONS OF QUALITY
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INTRODUCTION to TQM
Basic definition:
What is TQM?
Total- made up of the whole
Quality - degree of excellence of product and service
Management - act, art of handling, controlling, directing, etc.
It is defined as both philosophy and a set of guiding principles that represent the foundation of a continuously improving organization.
TQM is a corporate business management philosophy which recognizes that customer needs and business goals are inseparable. It is appropriate within both industry and commerce
TQM is an integrated organisational approach in delighting customers by meeting their expectations on a continuous basis through everyone involved within organisation working on a continuous improvement in all products, services and processes along with proper problem solving methodology
BASIC APPROACH
The success of TQM rests with following six concepts
1. A committed and involved management to provide long term top to bottom organizational support
You must remove fear from work place, then empower employee... you provide the proper environment. This work of removing the fear from the total work force should start from the top management and spread throughout the organization. Management commitment is indispensable in achieving quality management in a company: such commitment is to be shown to employees, customers, and other stakeholders. A management decision can lead a company either upward or downward. It is not difficult to find examples of established companies, with long-standing fame, being hit hard by scandal—seeing their favorable public reputation being lost quickly. Therefore, in order to achieve sustainable business management, it is necessary for management to implement TQM to convincingly articulate to its subordinates its firm commitment.
2. An unwavering focus on the customer, both internally and externally
Whatever you do for quality improvement, remember that ONLY customers are the kings who determine the level of quality. Whatever you do to foster quality improvement, training employees, integrating quality into processes management,
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ONLY customers determine whether your efforts were worthwhile. Today the customers hold the key which open the lock of the fate of any manufacturer.
3. Effective involvement and utilization of the entire work force
TQM is mentioned by Japanese as CWQC – Company Wide Quality Control, means TQM is not to be restricted to one department or one part of the organization. People must be encouraged not only just to do their job but to improve their job through innovative ideas that contribute to the growth of the company.
4. Continuous improvement of the business and production process
Using analytical, quality tools, and creative thinking to become more efficient and effective. Superior quality/performance is not a luxury, it is essential to survival. Emphasis on continuing system’s analysis even when a satisfactory solution to a problem is obtained. Improvement needs to be a regular part of daily work in order to achieve the highest levels of quality and performance excellence
5. Treating suppliers as partners.
There exists in each department, each office, each home, a series of customers, suppliers and customer supplier interfaces. These are “the quality chains”, and they can be broken at any point by one person or one piece of equipment not meeting the requirements of Customers or Suppliers. Failure to meet the requirements in any part of a quality chain has a way of multiplying, and failure in one part of the system creates problems elsewhere, leading to yet more failure and problems, and so the situation is exacerbated. The ability to meet customers’ (external and internal) requirements is vital.
6. Establish performance measures for the processes.
Processes if not measured will not yield the result as anticipated. Hence quality must be measured in terms of productivity, cost, customer satisfaction, etc. to understand the progress.
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NEW AND OLD CULTURES
TQM FRAME WORK
Source: Dale Besterfield, et.al., Total Quality Management, pearson education, third edition, 2005
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HISTORICAL REVIEW
It started during the middle ages
Industrial revolution saw the development of specialization of labour
Eli whitney introduced concept of interchangeable parts
In 1924 Walter Shewart developed a statistical chart and later Dodge and Romig developed that how scientifically acceptance sampling can replace 100% inspection.
After World War II Edward Deming and Joseph Juran gave series of lectures in Japan Kaoru Ishikawa, Taiichi Ohno, Masaki Imai introduced the concept of TQM at Toyota and
other industries The world opened their eyes to TQM after oil shock of 1970’s Then GM, Ford, and other automobile industries in US and Europe introduced these
concepts Malcolm Baldridge and Deming’s award were introduced to recognize the commitment
to quality. Today it has become the life blood of all the industries
As we move into the 21st century, TQM has developed in many countries into holistic frameworks, aimed at helping organisations achieve excellent performance, particularly in customer and business results. In this connection ‘the Malcom baldridge Award” by US and the Deming’s prize by Japan have played an exceptional role in promoting the awareness of quality in industries. The awards are based on evaluation of the achievement and effectiveness of the applicants’ quality management process—from its establishment of a theme and goal, to its kaizen activities, and to the achievement of the set goal. The evaluator examines how the theme has been established according to needs and how much the improvements result in contributing to future activities.
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BENEFITS OF TQM
1. Induces customer satisfaction due to most optimized product/service is available to them
2. Customers feel delighted as their requirement is met first time, every time
3. Reduces waste and hence total cost and improves productivity
4. Problems are prevented than fire fight
5. Because of involved top management proper planning takes place
6. As every one is involved, the cooperation and commitment improves
7. Hence the gates are opened for creativity which delivers work satisfaction
8. Suppliers feel a part of the system
OBSTACLES TO TQM
1. Lack of management commitment
2. Inability to change organization culture
3. Improper planning
4. Lack of continuous training and education
5. Incompatible organization structure and isolated individuals and departments
6. Ineffective measurement techniques and lack of access to data and results
7. Paying inadequate attention to internal and external customers
8. Inadequate use of empowerment and teamwork
9. Failure to continually improve
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UNIT 2
EVOLUTION OF TQM
LEARNING OBJECTIVES
At the end of this chapter the student will be able to:
Understand the contribution of various gurus like Edward Deming, Joseph Juran, Kaoru Ishikawa, A. Fiegenbaum, etc. towards the development of TQM
Study the relative methods
Contribution of Quality Gurus
1. Edward Deming – 14 points, PDSA cycle
2. Joseph Juran – Quality trilogy
3. Philip Crosby – Quality treatment
4. Kaoru Ishikawa – Company wide quality control, cause and effect diagram, quality circles
5. Genichi Taguchi – Quality loss function
6. Fiegen baum – Total Quality Control and Price of Non Conformance (PONC)
Deming’s 14 points
1. Create constancy of purpose for continual improvement of product and service
Set the course today for better tomorrow
Preventive maintenance
Long term planning of resources
Take care not to get tangled in one while loosening the other
Stability with innovation
Minimization of variability and dispersion
Adopt the new philosophy for economic stability
Quality is important than quantity
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Higher quality at lower price
Mobilization of everyone is required
A paradigm shift is required
3. Cease dependence on inspection to achieve quality
Build quality during design/development stage through off line inspection and in production through online inspection
Eliminate inspection of final product
Do ‘right first time’ instead of ‘do until right’
Checking without considering how to improve is not useful
Fallacy of divided responsibility
End the practice of awarding business on price tag alone
It is not the fault of operator for faulty material
Price is not the only ultimate source
Stick to sole supplier
Loss of using lowest priced product is always high
5. Improve constantly and forever the system of production and service
Search for problems
Prevent rather than fire fight
Never get into bottleneck stage
Innovation must be applied to the whole system
Institute training on the job
Knowledge must be enhanced by all employees
Training is not non productive
Experience is not the solution for everything
Theory of optimization – win-win situation
Knowledge of statistical theory
Knowledge of psychology
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7. Adopt and institute modern methods of supervision and leadership
Supervisors should be teachers than observers
Motivate by example than fear
Counselors and not judges
Should be supportive, sympathetic, encouraging
Variety among people should be taken for improvement
8. Drive out fear
Encourage two way communication
Fear is a barrier for improvement
Fear is counterproductive
Stick to what you know becomes inevitable
9. Break down barriers between departments and individuals
Work as team
Destructive competition must be overcome by constructive
Contribution to the company as a whole
Everyone is customer to everyone
10. Eliminate the use of slogans, posters and exhortions
Slogans remain as words not facts
People are good, system make them bad
Give proper training instead of slogans
Eliminate work standards and numerical quotas
Eliminate MBO
Competent leadership develops productivity
MBO expects more than what can be done
Ratio of 85:15::common problems: special problem
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12. Remove barriers that rob the hourly worker of right to pride in work
Remove physical and mental obstacles
Barriers are MBO and performance appraisal
These increase internal destructive competition
Reduces risk taking
13. Institute vigorous program of education and retraining
Training and retraining must continue
Commitment to permanent employment
14. Define top management’s permanent commitment to ever improving quality and productivity
Deming’s (PDSA) cycle
Plan
Plan the route of action
Decision based on objectives, changes needed, performance measures, persons responsible, availability of resources
PLAN
DO
STUDY (CHECK)
ACT
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Do
Involvement of everyone
Training, survey of customers, identification of core process
Small scale implementation of planned change
Study (Check)
Measuring and observing the effects, analysis of results and feedback
Deviations from the original plan should be evaluated
Act
Take corrective steps
Standardize the improvement
Joseph Juran
Juran’s trilogy
Source: Dale Besterfield, et.al., Total Quality Management, pearson education, third edition, 2005
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I stage: Quality planning
– Identify customers (internal and external) and their needs
– Translate needs to everyone’s language
– Optimize the process of production
– Transfer process into operation
II stage: Quality control
– Corrective action to control sporadic (special) problems – 15%
– Aim to reduce chronic (common)waste – 85%
– Compare actual performance to quality goals and act on the difference
III stage: Quality improvement
– Quality breakthrough is needed to improve to very high levels
– Requires long range planning, company wide training, good coordination, top management commitment, etc.
Philip Crosby - Quality treatment
Diagnosis of troubled company
1. Having reworking and field service
2. Defect is seen as necessary evil and non conformance is the norm
3. No top management’s commitment resulting in workers setting their own performance standard
4. Not accepting 85:15 ratio
5. Ignoring costs of non conformance
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Quality vaccine
Crosby’s absolutes for quality management
I. The definition of quality is conformance to requirements, not goodness
o Quality is based on customer’s needs
o Provide proper communication to workforce
o Provide appropriate tools and training
o Provide continuous support
II. The system of quality is prevention
o Identify opportunity for error
o Avoid final inspection
III. The performance standard is zero defect
o Do right first time every time
o This is a dream not the reality
o Never use this as slogan
o Aim towards continuous improvement
IV. The measurement of quality is the price of non conformance
o Higher the PONC lower the quality
o PONC represents 20% to 40% of total costs
o PONC = rejects, reworks, warranty costs, unnecessary servicing, etc.
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Kaoru Ishikawa
His contribution towards TQM is in the form of CWQC, Cause and effect diagram and quality circles
Quality circle is a voluntary team that discusses the quality problems on a regular basis
PRINCIPLES OF CUSTOMER/SUPPLIER RELATIONS
Dr. Kaoru Ishikawa has suggested ten principles:
1. Customer and supplier are fully responsible for Quality control.
2. Customer and supplier should respect each others independence.
3. Supplier is entitled to complete information from the customer.
4. Non-adversarial contract between customer and supplier is needed for quality, quantity, price, delivery method & payments.
5. Supplier should provide quality to meet customers satisfaction.
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6. Product quality evaluation methods should be decided by the mutual consent of both the parties.
7. Amicable settlement of disputes between customer and supplier should be established in the contract.
8. Continuous information exchange will improve the product or service quality.
9. To maintain an amicable relationship, both the parties should do procurement, production, and inventory planning.
10. Best interest of the end user should be considered while doing business transactions.
10-Step Quality Improvement Cycle
1. Identify a process
2. Define the purpose of the process
3. Identify the primary customers
4. Determine the customer’s expectations about the process
5. Determine if expectations are being met and identify opportunities for improvement
6. Identify root causes of problems/challenges/deficiencies/etc.
7. Plan improvements
8. Implement improvements
9. Evaluate improvements
10. Revise as needed
Genichi Taguchi
He has devised Taguchi methods of applying statistical theory to manufacturing problems.
His quality loss function is studied in 7 categories
1. Total loss to society – bad product vs good product
2. Staying in business – requires service it provides for the society
3. Incessant reduction in variations
4. The customer’s loss
5. Design and manufacture – put emphasis on manufacturing nearer to design
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6. Reduction of performance variation
7. Statistically planned experiments
Armand Feigenbaum
He has written the book “Total Quality Control”
The four steps for quality control are:
1. Setting quality standards
2. Appraising conformance to these standards
3. Acting when standards are exceeded
4. Planning for improvements in the standards
Problem is not to increase quality, increasing quality
is the answer to the problem
Improvement – you need not have to do this;
SURVIVAL IS NOT COMPULSORY
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UNIT 3
LEADERSHIP AND QUALITY COSTS LEARNING OBJECTIVES
By the end of this chapter the student should be able to
understand the meaning of a leader
Explain the characteristics of a leader
Define and differentiate between different quality statements
Explain the 7 steps of strategic planning
Understand the various quality costs
Classify various quality costs into proper segment
Understand how to manage the quality costs
Explain the economics of quality costs
Enumerate the process of reducing the quality costs
LEADER
A leader strengthens and inspires the followers to accomplish shared goals
Senior leaders should serve as role models through their inspired ethical behavior and their personal involvement throughout the organization
CHARACTERISTICS OF QUALITY LEADERS
There are 12 characteristics that leaders demonstrate
1. They give attention to internal and external customers and their needs
2. They empower rather than control subordinates
3. They emphasize improvement rather than maintenance
4. They emphasize prevention
5. They encourage collaboration rather than competition
6. they train and coach rather than direct and supervise
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7. They learn from problem
8. They continually try to improve communication
9. They continually demonstrate their commitment to quality
10. They choose suppliers on the basis of quality rather than price
11. They establish organizational systems to support the quality effort
12. They encourage and recognize team effort
QUALITY STATEMENTS
Quality statements include vision, mission statement, and quality policy statement
Once developed they need to be reviewed and updated occasionally
They are part of the strategic planning process
It varies from one organization to another
They play a very important role in Malcolm Baldridge award
Vision statement
The vision statement is a short declaration of what an organization aspires to be
tomorrow
It is the ideal state which every organization should strive to achieve
They are timeless, inspirational and become deeply shared within the organization
It gives a distinct guideline for the decision making
Vision of VTU
"To become an outstanding Technological University at the cutting edge of Science and
Technology that produces world class Knowledge-delivery, Research, Extension and Leadership
in Technology innovation for Industry and Society".
Mission statement
It is the statement which elaborates the function of an organization
It gives the ways of achieving the vision
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Mission of VTU
• "To plan the development of technical education, to establish value-based and need-
based education and training in engineering and technology, with a view to generate
qualified and competent manpower, responsive to technological and societal needs".
Quality policy statement
It is the guide to everyone in the organization as to how they should provide products
and service to the customers
Quality Policy Statement example
• “The company is dedicated to the quality policy that will ensure that its products and
services fully meet the requirements of its customers at all times. The goal of the
company is to achieve a high level of customer satisfaction at all times”.
STRATEGIC PLANNING
There are 7 basic steps to strategic planning
1. Customer needs
2. Customer positioning
3. Predict the future
4. Gap analysis
5. Closing the gap
6. Alignment
7. Implementation
1. Customer needs Discover the future needs of the customer. Identify them and their needs. Find ways of exceeding their expectations 2. Customer positioning Next, what position does a customer has in the company will highlight the concern of the company towards the customer. 3. Predict the future Economic and technological forecasts, demographical studies will help to predict the future.
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4. Gap analysis Identify the gap between the current state and the future state of the organization 5. Closing the gap A proper plan has to be developed to close the gap 6. Alignment As the new plan is developed it must be aligned with quality statements 7. Implementation This step is very crucial as this will decide the fate of the plans and procedures.
QUALITY COSTS The value of quality must be based on its ability to contribute to profits
The efficiency of business is measured in terms of money it earns
This cost is no different than other costs
It is the sum of the money that the organization spends in ensuring that the customer requirements are met on a continual basis and also the costs wasted through failing to achieve the desired level of quality
CLASSIFICATION The quality costs quantifies the quality problem in the best language that the management can understand – rupees
Quality costs identify the opportunities for quality improvement and establish funding priorities by means of Pareto analysis
It identifies the hidden buried costs in all functional areas
Feigenbaum has identified four different types of quality costs viz.
1. Prevention costs
2. Appraisal costs
3. Internal failure costs and
4. External failure costs
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Prevention costs These costs relate to efforts to prevent failures
These are the costs incurred on preventing a quality problem from arising
The categories of these costs include
1. Marketing/customer/user
2. Product/service/design development
3. Purchasing
4. Operations (manufacturing or service)
5. Quality administration Appraisal costs These costs relate to testing, execution and examination to assess whether specified quality is being maintained
These are the costs incurred in assessing that the products or service conform to the requirements
Various categories of appraisal costs are
1. Purchasing appraisal costs
2. Operations appraisal costs
3. External appraisal costs
4. Review of test and inspection data
5. Miscellaneous quality evaluations
1. Quality administration Internal failure costs These costs arise when a product or service fail to meet the requirement before delivery
These costs occur within the organization as this occurs before it is transferred to the owner/customer
This occurs because of scrap, rework, non-conformance.
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Its various forma are: 1. Product or service design failure costs
2. Purchasing failure costs
3. Operations failure costs External failure costs These arise from rejection of the products by the customers due to poor quality
These occur after the transfer of the ownership
These losses have future implications also as customer goodwill loss or future loss of sales
Hence it is very important for the companies to recognize the relative importance of these costs Its various forms are 1. Complaint investigations of customer service
2. Returned goods
3. Retrofit or recall costs
4. Warranty claims
5. Liability costs
6. Penalties
7. Customer or user goodwill
8. Lost sales
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Prevention Costs Internal Failure Costs
Systems development Quality engineering Quality training Quality circles statistical process control Supervision of prevention activities Quality data gathering, analysis, and reporting Quality improvement projects Technical support provided to suppliers Audits of the effectiveness of the quality system
Net cost of scrap Net cost of spoilage Rework labor and overhead Re-inspection of reworked products Retesting of reworked products Downtime caused by quality problems Disposal of defective products Analysis of the cause of defects in production Re-entering data because of keying errors Debugging software errors
Appraisal Costs External Failure Costs
Test and inspection of incoming materials Test and inspection of in-process goods Final product testing and inspection Supplies used in testing and inspection Supervision of testing and inspection activities Depreciation of test equipment Maintenance of test equipment Plant utilities in the inspection area Field testing and appraisal at customer site
Cost of field servicing and handling complaints Warranty repairs and replacements Repairs and replacements beyond the warranty period Product recalls Liability arising from defective products Returns and allowances arising from quality problems Lost sales arising from a reputation for poor quality.
MANAGING QUALITY COSTS The following strategy is used to manage the quality costs (economics of quality costs) 1. Reduce failure costs by problem solving
2. Invest the right prevention costs
3. Reduce appraisal costs where appropriate and in a statistically sound manner
4. Continuously evaluate and redirect the prevention effort to gain further quality improvement
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Source: Dale Besterfield, et.al., Total Quality Management, pearson education, third edition, 2005
REDUCING QUALITY COSTS 1. Appraisal costs
Is 100% inspection necessary?
Can inspection stations be combined, relocated or eliminated?
Are the inspection methods most efficient?
Could the inspection and test activity be automated?
Could data be collected, analyzed using computer?
Should operating personnel be made responsible for inspection?
Is appraisal being used as substitute for prevention?
2. Failure costs
Failures should be deleted in the beginning than at the end which will be very costly
The project team must see the root cause of the problem
Prevention of quality costs should be followed
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UNIT 4 CONTINUOUS IMPROVEMENT
LEARNING OBJECTIVES At the end of this chapter the student will be able to Understand the meaning of continuous improvement Explain the various stages of the W-V model Differentiate between process control, reactive improvement and proactive
improvement Enumerate the relative importance of seven quality tools and seven management tools
CONTINUOUS IMPROVEMENT Continuous improvement= systematic improvement + iterative improvement
Systematic improvement is a scientific approach for improvement
It considers a variety of possible solutions until the best and not just the most obvious is identified factually
Iterative improvement carries on from where the systematic improvement had left
This ensures that the improvement is not stopped
W-V MODEL
- Rumination, planning, analyzing
- information from real world Three stages of CI 1. Process control
2. Reactive improvement
3. Proactive improvement
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Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
Process control
This is used when we have a standard process to perform some function
This follows S-D-C-A cycle S – Have standard D – Do standard C – Check/evaluate effect A – Act to return to standard
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Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
The principles of process control are
1. Customer needs determine the desired output
2. The process used determines the actual output
3. The actual output inevitably has variance
4. Inspection is a poor method of control
5. To meet the desired output specification, reduce variance of the actual output by finding and removing the sources of variance in the process
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Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
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Reactive Improvement
Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
Seven QC steps 1. Select theme
2. Collect and analyze data
3. Analyze causes
4. Plan and Implement solution
5. Evaluate effects
6. Standardize solution
7. Reflect on process and next problem
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Seven QC tools 1. Check sheet / stratification
2. Pareto diagram
3. Cause and effect diagram
4. Graphs
5. Control charts
6. Histograms
7. Scatter diagram Check sheet / stratification They are used for easy collection of the data Ex: estimating the no. of passengers in each stop to decide the size of the train Stratification is used to compare the two different data Ex: performance of two teams in cricket
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Pareto diagram It is used to arrange different problems prioritized through their difficulty level Named after the person who started this Helps the organization to tackle “Vital few”
Source: downloaded from www.vertex32.com
Cause and effect diagram This diagram gives the details of causes versus effects A very simple way to identify the causes for a particular problem
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Source: downloaded from www.vertex32.com
Graphs – radar graphs
Control charts Control charts are a very important quality control tool. We will study the use of control charts at great length in the next chapter. These charts are used to evaluate whether a process is operating within expectations relative to some measured value such as weight, width, or volume. For example, we could measure the weight of a sack of flour, the width of a tire, or the volume of a bottle of soft drink. When the production process is operating within expectations, we say that it is “in control.”
0
10
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30
401/5/2002
1/6/2002
1/7/20021/8/2002
1/9/2002Series 1
Series 2
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Histograms A histogram is a chart that shows the frequency distribution of observed values of a variable. We can see from the plot what type of distribution a particular variable displays, such as whether it has a normal distribution and whether the distribution is symmetrical.
0%10%20%30%40%50%60%70%80%90%
100%
Series 3
Series 2
Series 1
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Scatter Diagrams Scatter diagrams are graphs that show how two variables are related to one another. They are particularly useful in detecting the amount of correlation, or the degree of linear relationship, between two variables. For example, increased production speed and number of defects could be correlated positively; as production speed increases, so does the number of defects. Two variables could also be correlated negatively, so that an increase in one of the variables is associated with a decrease in the other. For example, increased worker training might be associated with a decrease in the number of defects observed.
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7 QC steps versus 7 QC tools
Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
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PROCESS CONTROL AND PROCESS IMPROVEMENT
Basic cycle for process control is S-D-C-A CYCLE and for process improvement P-D-C-A CYCLE
Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
MANAGEMENT DIAGNOSIS
Diffuses good improvement practices throughout the organization by example
Acknowledges team accomplishment
Increases improvement skills of the team
Creates management BUY – IN to standardize the solution
Ensures legitimacy of conclusion
GENERAL GUIDELINES
Senior management attends
Comments highlight positive lessons and areas for further improvement
Non verbal signs show management interest
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Do not suggest going back
The process should follow 7 steps format
PROACTIVE IMPROVEMENT
It is used to find the upstream criteria
No standard format
Fully developed format is Quality Function Deployment (QFD)
Data type 1 is collected in proactive improvement
Data 1 is completely qualitative
Data 2 was both qualitative and quantitative
Data 3 was completely quantitative
Procedure to collect data 1
1. 3600 view
2. Stepping stone approach
3. By chance
4. Believe your intuition
5. Collect qualitative data
K J Method
This involves problem solving approach for gathering and analyzing the data developed by Jiro Kawakita
The steps of the KJ method are
1. Agree on a topic (theme)
2. Write and understand the data
3. Group similar data
4. Title groups
5. Layout groups and show relationships among groups
6. Vote on the most important low level issues and draw conclusion
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Standard steps
1. Sense problem – avoid biased opinion
2. Explore situation – keep a flexible schedule to pursue unexpected opportunities
3. Formulate problem – get the most optimal solution by taking all the constraints
Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
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THE SEVEN MANAGEMENT AND PLANNING TOOLS
1. Affinity diagram
2. Relations diagram
3. Matrix diagram
4. Tree diagram
5. Process Decision Program Chart (PDPC) diagram
6. Arrow diagram
7. Matrix data analysis
Affinity Diagrams The affinity diagram is a tool for organizing a large number of ideas, opinions, and facts relating to a broad problem or subject area. In developing a vision statement, for example, senior management might conduct a brainstorming session to develop a list of ideas to incorporate into the vision. Answers ‘WHAT’ type of questions.
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Relations diagram An interrelationship digraph identifies and explores causal relationships among related concepts or ideas. It shows that every idea can be logically linked with more than one other idea at a time, and allows for “lateral thinking” rather than “linear thinking.” This technique is often used after the affinity diagram had clarified issues and problems. Used to answer ‘WHY’ type of questions.
Matrix Diagrams Matrix diagrams are “spreadsheets” that graphically display relationships between ideas, activities, or other dimensions in such a way as to provide logical connecting points between each item. A matrix diagram is one of the most versatile tools in quality planning. used to answer ‘WHICH’ type of question
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Tree Diagrams A tree diagram maps out the paths and tasks necessary to complete a specific project or reach a specified goal. Thus, the planner uses this technique to seek answers to such questions as “What sequence of tasks will address the issue?” or “What factors contribute to the existence of the key problem?” A tree diagram brings the issues and problems revealed by the affinity diagram and the interrelationship digraph down to the operational planning stage. A clear statement specifies problem or process. From this general statement, a team can be established to recommend steps to solve the problem or implement the plan. The “product” produced by this group would be a tree diagram with activities and perhaps recommendations for timing the activities. Answers ‘HOW’ type of questions
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Process Decision Program Chart (PDPC) diagram
A process decision program chart (PDPC) is a method for mapping out every conceivable event and contingency that can occur when moving from a problem statement to possible solutions. A PDPC takes each branch of a tree diagram, anticipates possible problems, and provides countermeasures that will (1) prevent the deviation from occurring, or (2) be in place if the deviation does occur. Answers the question ‘WHAT IF’
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Arrow Diagrams Arrow diagramming has also been taught extensively in quantitative methods, operations management, and other business and engineering for a number of years. Adding arrow diagramming to the “quality toolbox” has made it more widely available to general managers and other non-technical personnel. It is a simplified PERT chart used for scheduling events and identifying bottlenecks. Answers ‘WHEN’ type of questions
Matrix Data Analysis Matrix data analysis takes data and arranges them to display quantitative relationships among variables to make them more easily understood and analyzed. In its original form used in Japan, matrix data analysis is a rigorous, statistically based “factor analysis” technique. Many feel that this method, while worthwhile for many applications, is too quantitative to be used on a daily basis and have developed alternative tools that are easier to understand and implement. Some of these alternatives are similar to decision analysis matrixes that you may have studied in a quantitative methods course.
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Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
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APPLYING PROACTIVE IMPROVEMENT TO DEVELOP NEW PRODUCTS
Stage I: DEVELOP AN UNDERSTANDING OF CUSTOMER’S NEEDS AND ENVIRONMENT
Step 1:
Plan for exploration
Whom to visit?
Who should collect the data?
How to visit?
Use 7 principles of customer visitation
Step 2: Collect the voice and context of the customer
Contextual enquiry means living in customer’s environment to understand real situation
Step 3: Develop an image of the customer’s environment
Interpret the voice of the customer to know what the customer is doing and how the product will be used
Stage II (Step 4 ): TRANSFER THE VOICE OF THE CUSTOMER INTO CUSTOMER REQUIREMENT
Stage II (Step 4 ): TRANSFER THE VOICE OF THE CUSTOMER INTO CUSTOMER REQUIREMENT
Collect the voice of the customer
Collect and identify scenes
of using products
Translate to statement of
customer requirement
Extract the key item
Link voice to context
Check CR against voice
and image
43
Seven translation guidelines
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1. Avoid statements in a negative form
2. Use multivalued attributes to 2 valued
3. Avoid abstract words
4. Avoid statement of solution
5. Avoid premature detail
6. Avoid auxiliary verbs like should, must, etc.
7. Avoid intangible concepts
Use Tip of the iceberg principle and multiple thought
Step 5: Select the most significant customer requirement
Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
Step 6: Develop insight into relations between requirement
It is necessary to align everyone’s understanding of what the group process has produced
Step 7: Investigate characteristics of customer requirement
It is very important to rank the requirement
Invisible ideas about quality can be made visible
Customer satisfaction for some requirement is proportional to how fully functional the product is with respect to a requirement
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Some customer requirements are not one dimensional
Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
STAGE III (STEP 8): GENERATE METRICS FOR CUSTOMER REQUIREMENT
Since customer requirements are in qualitative language it is required to translate that in to quantitative language of the engineer
Step 9: Integrate understanding about customer requirements
Use Quality Function Deployment or quality tables
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Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
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Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
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PART B UNIT 5
TOOLS AND TECHNIQUES IN TQM LEARNING OBJECTIVES
At the end of this chapter the students will be able to
Understand and interpret the meaning, relevance and theme of
Kaizen
Reengineering
Six sigma
Benchmarking
5S
3M
Pokayoke
KAIZEN
This is a Japanese word framed by Masaaki Imai to define a philosophy that involves encouraging and implementation of small changes on a continuous basis
These small increments make the progress more efficient, effective under control and adaptable
This involves very little or no cost
Kaizen focuses on the use of:
Value added and non value added activities
MUDA, which refers to the seven classes of waste – over production, delay, transportation, processing, inventory, wasted motion, and defective parts.
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Principle of motion study and the use of cell technology
Principles of material handling and use of one piece flow
Documentation of standard operating procedure
The 5 S for work place of organization
Visual management by means of visual displays that everyone in the plant can use for better communication
Just-in-time principles to produce only units in right quantities, at right time, and with right resources
Poka-yoke to prevent or detect errors
Team dynamics, which include problem solving, communication skills and conflict resolution
Kaizen versus innovation
Kaizen is the brain child of Japanese while Innovation is followed by US and European countries
Innovation achieves the success through some unprecedented ways by investing huge amount
While kaizen achieves success without any sophisticated technologies but entirely depends on people.
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REENGINEERING
Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance
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• Reengineering starts with a high-level assessment of the organization's mission, strategic goals, and customer needs.
• Basic questions are asked, such as "Does our mission need to be redefined? Are our strategic goals aligned with our mission? Who are our customers?"
• An organization may find that it is operating on questionable assumptions, particularly in terms of the wants and needs of its customers.
• Only after the organization rethinks what it should be doing, does it go on to decide how best to do it.
• Reengineering recognizes that an organization's business processes are usually fragmented into sub processes and tasks that are carried out by several specialized functional areas within the organization.
• Reengineering maintains that optimizing the performance of sub processes can result in some benefits, but cannot yield dramatic improvements if the process itself is fundamentally inefficient and outmoded.
• For that reason, reengineering focuses on redesigning the process as a whole in order to achieve the greatest possible benefits to the organization and their customers.
• This drive for realizing dramatic improvements by fundamentally rethinking how the organization's work should be done distinguishes reengineering from process improvement efforts that focus on functional or incremental improvement.
SIX SIGMA
It is a TQM process that uses the process capability analysis as a way of measuring progress.
This was originated at Motorola company
It is the best measurement of the process variability, because the smaller the deviation value, the less variability in the process.
This six sigma limits has non conformance rate of 0.002ppm
However the processes are rarely centered due to which there is a center shift by 1.5σ
This makes the non conformance rate of 3.4 ppm
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Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
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Process capability index
IT IS THE INDEX DISPLAYING THE CAPABILITY OF THE PROCESS TO MEET THE SPECIFICATIONS
Cp =USL-LSL/6σ If the value of Cp is greater than one then the process is capable of meeting
specifications If the value of Cp is less than one then the process is not capable of meeting
specifications By default the most preferred Cp is 1.33 even though some companies use 2.00
Six Sigma Methodology
In six sigma DMAIC methodology is followed
D – Define
M – Measure
A – Analyze
I – Improve
C – Control
Define—Identify a suitable project based on customer needs and feedback, as well as quality characteristics. Report on the scope and definition of the project, potential benefits, data analysis, and improvement implementations.
• Measure—Identify the key internal processes that influence the process, and measure the related defects. Map and measure process performance and the effectiveness of improvement efforts in meeting customer requirements.
• Analyze—Discover what the defects are and identify solutions. Assess what can go wrong and the impact.
• Improve—Prioritize and implement improvement opportunities. Confirm the key variables, and quantify their effect. That is, does it improve a process, add value, reduce costs, or integrate new technologies and ideas?
• Control—Set in place a control plan or system to sustain the improvement and ensure that key variables remain within acceptable ranges. This plan includes ongoing process measures, customer feedback, and as-needed adjustments. Report what has been done to prevent and/or control problems and how a problem would be recognized and addressed if it occurred again.
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Competency levels
In six sigma it is very important for continuous improvement
In this regard a small group of trained individuals have a full time job of making these
improvements
The competency levels of these individuals use the karate designation
Green belt – project leaders and have five days of class room training
Black belt – these help green belts define their projects, attend the training and assist
them with their projects. They receive 160 hours of class room instruction and one-on-
one project coaching from master belts
Master belts – they provide the technical leadership and much of the training for the
program
Common obstacles for six sigma implementation
Define specific problem Set goals Identify the customers
(SIPOC diagram)
DEFINE
Monitor the improvement progress
Document and standardize the process
CONTROL
Data collection plan Identification of the
variation in the process MEASURE
Identify the potential improvement solution
Implement the improvement solution
IMPROVE
Determination of root cause
Cause and effect analysis
ANALYZE
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A lot of problems are associated with six sigma methodology
It is not a cost effective venture and hence not suitable for Small and Medium scale
Enterprises
Many organizations including Motorola have suffered loss due to heavy infrastructure of
these various belts
What Makes a Six Sigma Implementation Successful? The following elements are absolutely essential to successful implementation of Six Sigma:
1. Consistent and visible leadership involvement.
2. A measurement system to track progress, providing accountability for the initiative.
3. Internal and external benchmarking of the organization’s products, services, and
processes. You must find out where you really are.
4. Setting challenging stretch goals that focus your employees on changing the process, not
just tweaking it.
5. Educating and informing every member of your organization about the Six Sigma
methodology.
BENCHMARKING
It is a systematic method of continuous improvement, by which organizations compare
themselves against the best industry practices.
Benchmarking in essence is the process of borrowing ideas an adopting them to gain
competitive advantage
Many companies like GM, Chrysler, Ford, Xerox have used this as quality standard tool
both at manufacturing and service sectors
Benchmarking is done with the external organizations
These tools have been around since 1800s
There are two key elements in Benchmarking
1. Measuring performance some sort of units of measure – called as metrics
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2. Managers should understand WHY their performance differs
Reasons for Benchmarking
It is an effective tool to achieve business and competitive objectives
Since competitors are being analyzed the factor of being unaware of the competition is
avoided
It is time and cost effective as it involves very less invention
Process of Benchmarking
1. Decide what to benchmark
2. Understand current performance
3. Plan
4. Study others
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5. Learn from data
6. Use the findings
Decide what to benchmark
Select the critical success factors Pareto analysis will help
Some of the questions that can be useful are
1. Which processes are causing the most trouble? 2. Which factors contribute most to customer satisfaction and which are not performing
up to expectations? 3. What are the competitive pressures impacting the organization the most? 4. What processes or functions have the most potential for differentiating our organization
from competition?
Understand current performance
Document the current process
Attention must be paid to inputs and outputs
Questioning must be done in a proper way
Quantify the documented process using the metrics – unit costs, asset measures, quality
measures, etc
Account details are usually not true
Plan
Form the benchmark team
Identify the method of collecting the data
Identify the organizations that are to be benchmarked
While planning three different types of benchmarking can be followed
1. Internal benchmarking
2. Competitive benchmarking
3. Process benchmarking
Study others
• Two types of information should be gathered
• Description of how best in-class processes are practiced
• How best the benchmarked processes are
• To understand the internal processes, internal data can be used
• To gather data on external processes, three techniques can be used, viz. questionnaires,
site visits and focus groups
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Learn from data
• It is very important to be ready with answers for the following questions
• Is there any gap between the organization’s performance and the performance of the
best in class?
• What is the gap? how much is it?
• Why is there a gap? What does the best in class do differently that is better?
• What would be the resulting improvement if the same is adopted at our side?
The superior practice can be proved in two ways:
1. By comparison using proper performance measures,
2. Market analysis
The difference could be negative, in par or positive.
Use the findings
• When negative gap occurs, the objective is to close the gap
• In the process two teams must agree for the change
• First the process owners
• Second the top management
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Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
5S • The 5S Process, or simply "5S", is a structured program to systematically achieve total
organization, cleanliness, and standardization in the workplace.
• A well-organized workplace results in a safer, more efficient, and more productive
operation. It boosts the morale of the workers, promoting a sense of pride in their work
and ownership of their responsibilities.
• A Five S program is usually a part of, and the key component of establishing a Visual
Workplace. and are both a part of Kaizen -- a system of continual improvement -- which
is a component of lean manufacturing.
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• "5S" was invented in Japan, and stands for five (5) Japanese words that start with the
letter 'S': Seiri, Seiton, Seiso, Seiketsu, and Shitsuke.
• The English translation is:
• Sort - the first step in making things cleaned up and organized
• Set In Order - organize, identify and arrange everything in a work area
• Shine - regular cleaning and maintenance
• Standardize - make it easy to maintain - simplify and standardize
• Sustain -maintaining what has been accomplished
Japanese Term English Equivalent Meaning in Japanese
Context
Seiri Tidiness
Throw away all rubbish and
unrelated materials in the
workplace
Seiton Orderliness
Set everything in proper
place for quick retrieval
and storage
Seiso Cleanliness
Clean the workplace;
everyone should be a
janitor
Seiketsu Standardization Standardize the way of
maintaining cleanliness
Shitsuke Discipline
Practice 'Five S' daily -
make it a way of life; this
also means 'commitment'
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3M
Toyota Production System or TPS which was created by Taiichi Ohno around the 1950s,
is said to be the origin of Lean Production.
Lean consists of a set of tools which helps in the identification and eradication of the
wastes.
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Wastes can be defined as all activities and tools that do not add value to the customer.
A customer will not pay for the wastes which add to the cost of production.
Waste, in lean thinking, is defined as: all activities that do not add value from a
customer perspective and that can be removed. Examples are overproduction and over-
processing, work-in-process or inventory, defects, hand-over and task switching, waiting
and unused employee creativity.
The different types of wastes are classified as Muda, Muri and Mura. (3M)
• Waste (in Japanese: muda).
• Overburden (Japanese: muri) and
• Unnecessary variation (Japanese: mura).
All three M's must be eliminated to create a sustainable lean process
MUDA
Muda is any non-value adding activity that the customer is unwilling to pay for. Taiichi Ohno
has identified seven wastes that normally occur in the making of a product. They are:
Inventory that consists of products or materials waiting to be processed that have failed to
generate an income is considered to be a waste.
o Defects that have been an outcome of the process which has to be reworked,
leading to the loss of certain materials and time.
o Transportation of materials, product, etc as the customers is not willing to pay for it.
o Motion which denotes the excess movement of the employees or equipment
leading to unnecessary wear and tear.
o Overproducing more than what is required by the customer.
o Over processing or adding values more than what the customer is ready to pay for.
o Waiting time on account of the delay due to the shortage of materials, and other
causes.
To eliminate Muda, the management needs to go to the Gemba or the shop floor,
observe the Muda and take steps for its eradication.
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Lean manufacturing - TAKT time
Lean manufacturing systems work on a rhythm. Whole organization works on the rhythm
provided by the customer. This rhythm is known as the TAKT time of the system. This is the
ultimate pull scheduling system anyone can think about.
The TAKT Time can be calculated using simple formula given below.
TAKT time = Net Time Available for production / Customer Demand
For an example think you work 8 hrs a day for 5 days a week. For a week you have a
demand of 100Pcs. Then your calculation will be as follows.
Takt = 8 x 5 x 60 minutes / 100 Pcs = 24 minutes
What is the meaning of this?
This means that you have to produce a finished product in every 24th minute. No this does
not mean that you should produce 2Pcs in every 48 Minutes. It doesn’t mean that the
system should produce an item in less than 24 minutes. Both these scenarios can lead to
inefficiencies and wastes in the system.
Only very little number of people understand that we should only produce to the
customer demand not extra.
So what are the advantages of sticking to the takt time?
1. It will give you the rhythm in which the system should operate
2. Production is smoothly planned and operations will be carried out without interruptions
3. The system is in synchronization with customer requirement
4. Pull scheduling is enabled
5. No over production
6. No rush hours in work
7. WIP reduced and problems in the system will be reveled
Takt time principle will work very well in cases where the demand can be traced easily.
In a system where there is a fluctuating demand the takt will change continuously on
the customer demand.
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MURI
Even though most traditional development organizations carry out few activities that
truly add value, the right approach is often to attack a different disease first:
overburden.
As long as people work crazy hours, and as long as projects and teams are overwhelmed
by the amount of work, the removal of waste alone is ineffective.
Waste is likely to creep back in unless we limit the amount of work to the capacity and
capabilities of the organization.
Limiting demand to capacity and capabilities is exactly what Scrum and Extreme
Programming do.
By empowering the team to select a realistic amount of work for a given iteration,
overburden is stopped and systematically avoided. A sustainable pace is achieved.
Additionally, Scrum and XP create a pull process and a steady cadence where the team
essentially pulls requirements from the product backlog and transforms them into
product increments on a regular basis.
MURA
• The term Mura in Japanese stands for unevenness in the production system which can
be related to the man power or the materials.
• Widely varying workload is a waste as it has a direct impact on the productivity of the
employees.
• To ease the burden, the jobs can be broken down into normal routine tasks and other
tasks.
• The time requirement for the normal routine can be defined by the takt time.
• The task should be performed on the basis of the time set by the customer demand.
• This will tell about the jobs that need to be performed per day to guarantee its
completion within the deadline.
• Performance of the job without proper planning leads to overburden which is
considered to be a non-value adding activity.
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POKAYOKE (Mistake Proofing)
Poka Yoke is a quality management concept developed by a Matsushita manufacturing
engineer named Shigeo Shingo to prevent human errors from occurring in the
production line.
Poka yoke (pronounced “poh-kah yoh-kay”) comes from two Japanese words – “yokeru”
which means “to avoid”, and “poka” which means “inadvertent errors.” Thus, poka yoke
more or less translates to “avoiding inadvertent errors”.
The main objective of poke yoke is to achieve zero defects. In fact, it is just one of the
many components of Shingo’s Zero Quality Control (ZQC) system
Poka yoke is more of a concept than a procedure.
Thus, its implementation is governed by what people think they can do to prevent errors
in their workplace, and not by a set of step-by-step instructions on how they should do
their job.
Poka yoke is implemented by using simple objects like fixtures, jigs, gadgets, warning
devices, paper systems, and the like to prevent people from committing mistakes, even
if they try to! These objects, known as poka yoke devices, are usually used to stop the
machine and alert the operator if something is about to go wrong.
Poka yoke devices should have the following characteristics:
1) Useable by all workers;
2) Simple to install;
3) Does not require continuous attention from the operator (ideally, it should work even if
the operator is not aware of it);
4) Low-cost;
5) Provides instantaneous feedback, prevention, or correction.
A lot of Shingo's poka yoke devices cost less than $50!
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Everyday Examples of Mistake-Proofing
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UNIT 6
QUALITY FUNCTION DEPLOYMENT (QFD) AND
FAILURE MODES EFFECTS ANALYSIS (FMEA) LEARNING OBJECTIVES
By the end of this chapter the student should be able to:
Understand the meaning of QFD
Explain the QFD process
Apply QFD and develop the House of Quality
Understand the concept of quality by design or concurrent engineering
Understand the meaning of FMEA
Explain different types of FMEA
Differentiate between process FMEA and design FMEA
QUALITY FUNCTION DEPLOYMENT (QFD)
Quality Function Deployment is pointed way of listening to customers to learn exactly what they want, & then using a logical system to determine how best to fulfill those needs with available resources.
QFD translates customer requirements (WHAT) into appropriate technical requirements(HOW).
It helps teams determine the correct methods, tools & order of use.
The main input to the QFD is customer’s needs & wants.
Quality function deployment is a team-based management tool in which customer needs are the driving force for the product development process.
Conflicting characteristics or needs are identified early in the QFD process and can be resolved before production.
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History of QFD
QFD was developed in Japan in the late 1960’s by professor’s Shigeree Mizuno and Yogi Akao.
The purpose of professors Mizuno and Akao was to develop a assurance method that would design customer satisfaction into a product before it was manufactured.
Prior quality control methods were primarily aimed at instead of fixing a problem during or after manufacturing.
The first large scale application was presented in 1966 by Kiyotaka Oshiumi of Bridgestone tire in Japan.
In 1972, with the application of QFD to the design of an oil tanker at the Kobe Shipyard of Mitsubishi Heavy industry, the fishbone diagrams used till that time, refashioned into a spreadsheet or matrix format with the rows being desired efforts of customer satisfaction and the columns being the controlling and measuring causes.
At the same time, Katsuyoshi Ishihara introduced the Value Engineering principles merged with these new ideas, QFD eventually became the comprehensive quality design system for both product and business process.
The introduction of QFD to America and Europe began in 1983. QFD caught across a wide variety of industries in the U.S and Western Europe.
Today QFD continues to inspire strong interest around the world, generating ever new applications, practitioners and researchers each year.
Benefits of QFD
Improves customer satisfaction
Reduces implementation time
Promotes team work
Provides documentation
Lower costs, greater productivity
HOUSE OF QUALITY
The primary planning tool used in QFD is the HoQ.
The HoQ translates the Voice of Customer into design requirements that meet specific target values and matches those against how an organization will meet those requirements.
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The parts of the house of quality
The Exterior walls of the house are the customer requirements. On the left side is a listing of the voice of the customers and on the right side are the prioritized customer requirements.
The ceiling or first floor of the house contains the technical descriptors. Consistency of product is provided through engineering characteristics, design constraints and parameters.
The interior walls of the house are relationship between customers’ requirements and technical descriptors. Customers’ expectations are translated into engineering characteristics.
The roof of the house is the interrelationship between technical descriptors. The foundation of the house is the prioritized technical descriptors.
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QFD process
The Four Steps of the QFD process:
1. Product Planning (House of Quality)
2. Product Design (Parts Deployment)
3. Process Design (Process Planning)
4. Production Design (Production Planning)
Customer
Requirements
Engineering Characteristics
Engineering Characteristic
Parts
Characteristic
Key Process
Operations
Parts
Characteristic
Key Process
Operations
Production
Requirements
Step 1
Step 3 Step 4
Step 2
13
Product Planning
The requirements of the customer (voice of the customer) are transferred to the properties or characteristics of the product.
Information from competitor’s products are also used. This is done by building a “house of quality.”
Product Design
• The design concept is chosen that best fulfils the given target values in the house of quality.
• Parts and components that will be critical for the product are identified and then the part properties are set.
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Process Design
• The critical detail properties are transferred to production operations and their critical parameters are identified.
• Methods for process control and process improvement are decided upon.
Production Design
• Production instructions are designed.
• The operator needs exact descriptions of the parts that have to be measured and the measurements that have to be observed.
• Ends with prototype and production launch.
Example of QFD
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Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
QUALITY BY DESIGN
It is the practice of using multidisciplinary team to conduct conceptual thinking, product design, and production planning all at the same time
This is called as CONCURRENT ENGINEERING or simultaneous engineering
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The earlier method of sequential engineering has been replaced by concurrent engineering as this will reduce the time product development time
Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
In sequential engineering each steps in product development process is sequentially followed
This requires repeated steps of redesign, re-verification in order to compile all previous stages.
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Hence it takes long time.
RATIONALE FOR IMPLEMENTATION
Earlier the increase in production cost were passed onto customer in the form of increased price.
But now this is not possible as customers are smart enough to choose the best product.
Quality by Design helps control cost by shifting the design changes to the beginning of the project rather than throughout its life cycle.
Fewer design changes and shorter lead times respond to customer needs quickly
Lower reject and scrap improves the profit
Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
FAILURE MODE EFFECT ANALYSIS (FMEA)
It is a technique that combines the technology and experience of people to identify foreseeable modes of failure of a product or process or planning.
FMEA includes identifying failure modes, eliminate or reduce them and document the procedure
FMEA can be broadly classified as design FMEA and Process FMEA.
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Design FMEA aids in design process by identifying the known and foreseeable failure modes and ranking them according the relative impact on the product.
This helps to establish priorities based on expected failures and severity of those failures and helps to uncover oversights, misjudgments and errors that may have been made.
Helps to reduce the cost of manufacturing and development time
Process FMEA is used to identify potential process failure modes and ranking them in relative impact on the internal and external customers.
This helps to identify the assembly and manufacturing causes in order to establish controls for occurrence reduction and detection.
Stages of FMEA
1. Specifying possibilities – functions, possible failure modes, root causes, effects, detection and prevention
2. Quantifying risk – probability of cause, severity of effect, effectiveness of control to prevent cause, risk priority number
3. Correcting high risk causes – prioritizing work. Detailing action, assigning action responsibility, check points on conclusion
4. Re-valuation of Risk – recalculation of risk priority number
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Source: Shoji shiba, et.al., A new American TQM, four revolutions of Management, productivity press, 1990.
Design FMEA document
The document has the following documents
1. FMEA number – used for tracking
2. Item – clarifies exact component or process
3. Design responsibility – the team in-charge of the design or process should be identified
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4. Prepared by – the name, telephone number, address of the team
5. Model number/year – both the name and the identification number of the system, sub-system or component along with year to avoid confusion
6. Key date – the date the initial FMEA is due
7. FMEA date – the date the original FMEA was compiled
8. Core team – the persons or teams responsible for performing tasks
9. Item/function – the name and number being analyzed along with its function is
recorded
10. Potential failure modes – here the two reasons arise, one, the method in which the item
being analyzed may fail to meet the design criteria or two, the method that may cause
the potential failure. Brain storming method can be used for this.
11. Potential effects of failure – these are the effects as perceived by the customer
12. Severity (S) – it is the assessment of the seriousness of the effect of the potential failure
mode to the next component, sub system, system or customer if it occurs. (Table 14-1)
13. Classification – classifies any special product characteristics for components, sub system,
system that may require additional process controls
14. Potential cause mechanism of failure – all mechanisms of failure are listed
15. Occurrence (O) – it is the chance that one of the above listed causes or mechanisms will
occur. (Table 14-2)
16. Current design control – the activities that assure the design sufficiency for the failure
mode or mechanism are listed
17. Detection (D) – it is the relative measure of the assessment of the ability of the design
control to detect either a potential cause or mechanism table 14-3
18. Risk Priority Number – RPN is the product of Severity, Occurrence, and Detection
RPN = S*O*D
19. This ranges from 1 to 1000 with 1 being smallest risk possible and 1000 being the
highest.
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20. Recommended actions – the corrective actions that may be employed starting from
highest risk factor.
21. Responsibility and target completion dates – groups or individual responsible for the
recommended actions must be indicated along with target date
22. Action taken – after implementation the brief description of actual action and its
effective date must be entered to track the progress of the plan. The RPN is re-
calculated following the previous steps.
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Process FMEA document
The process FMEA document is almost identical to design FMEA document
The notable similarities are:
1. Actively involving members from all affected areas
2. Including all the concerns from all the involved departments
3. Treating the document as a living document that is being revised constantly and updated over time
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UNIT 7
QUALITY MANAGEMENT SYSTEMS (QMS) LEARNING OBJECTIVES
By the end of this chapter the student should be able to:
Understand the meaning of Quality Management Systems Explain the ISO 9000 series of QMS Differentiate between different ISO series of QMS Understand the procedure of ISO implementation Study the factors affecting ISO implementation Study the documentation procedure of ISO Understand the importance of ISO implementation Understand the Meaning of the word BIS Explain the ISO 14000 EMS
INTRODUCTION
The International Organization for Standardization (ISO) is based in Switzerland
Started in 1946 at Geneva
More than 150 countries are under its umbrella
The ISO technical committee (TC) published series of international standards (ISO 9000, 9001 and 9004)
These were first published in 1987
They were intended to be advisory and to be used for two party contractual situations and for internal auditing.
Most countries have accepted ISO 9000 series as their national standards
In USA these series as ANSI/ASQ 9000 series (American national Institute / American Society for Quality)
In a two party system, the supplier of a product or service would develop a quality system that conformed to the standards.
The customers would then audit the system for acceptability
This two party system results in multiple audits and is too costly
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Hence this is replaced by third party registration system who is a registrar
When the conforms to a system the registrar issues a certificate
This registration ensures customers that a supplier has a quality system in place and it is being monitored
ISO SERIES OF STANDARDS
It is generic in scope
Generic means that the same standards can be applied:
to any organization, large or small, whatever its product or service, in any sector of activity, and
Whether it is a business enterprise, a public administration, or a government department.
It can be applied to large or small, manufacturing or service, engineering, construction, legal or any other professional services
In simpler terms the standards require an organization to say what it is doing to ensure quality and then do what it says and finally document or prove that it has done what it said.
Characteristics
• A set of procedures that cover all key processes in the business;
• Monitoring processes to ensure they are effective;
• Keeping adequate records;
• Checking output for defects, with appropriate and corrective action where necessary;
• Regularly reviewing individual processes and the quality system itself for effectiveness; and
• Facilitating continual improvement
• Three different standards are being followed:
• ISO 9000 : 2000 – Quality management system – fundamentals and vocabulary
discusses the fundamental concepts related to the QMS and provides the terminology
used in other two standards
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• ISO 9001 : 2000 – QMS – requirements is the standard used for registration by
demonstrating conformity of the QMS to customers, regulatory and organization’s own
requirements
• ISO 9004 : 2000 – QMS – guidelines for performance improvement provides guidelines
that an organization can use to establish a QMS focused on improving performance
Sector specific standards
Some ISO systems have been developed that are specific to a particular industry
These systems use ISO 9001 as their basic framework and modify it to their needs
This requires suppliers to meet standards for a specific industry, which will burden their work
Currently three systems viz. AS 9100, ISO/TS16949 and TL 9000 are being followed
AS 9100:
This is the aerospace industry quality system introduced by Society of automotive Engineers in May 1997
In March 2001 International Aerospace Quality group aligned AS 9100 with ISO 9001:2000
This attempts to unify the requirements of NASA, and other aerospace organizations
ISO/TS 16949:
This is entitled as Quality Systems automotive suppliers – particular requirements for the application of ISO 9001
It harmonizes the supplier requirement of the US with French, German, and Italian auto makers
The goal of this technical specification is the development of fundamental quality systems that provide for continuous improvement, emphasizing defect prevention and the reduction of variation and waste in the supply chain
There are three basic levels – ISO 9001, sector specific requirements, and company specific requirements
If appropriate levels for division specific, commodity specific and part specific requirements
GM has reported that the use of this has resulted in 85% improvement in first 5 years.
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TL 9000:
This is the telecom standard
This was started by Motorola, Lucent
It is a specific set of requirements based on ISO 9001 that defines the design, development, production, delivery, installation, and maintenance of telecommunication products and services
ISO IMPLEMENTATION
Steps necessary for successful implementation of a QMS are
1. Top management commitment
2. Appoint the management representative
3. Awareness
4. Appoint an implementation team
5. Training
6. Time schedule
7. Select element owners
8. Review the present system
9. Write the documents
10. Install the new system
11. Internal audit
12. Management review
13. Pre-assessment
14. Registration – choosing a registrar, submitting an application, and conducting the registrar’s system audit
Factors affecting ISO implementation
• Commitment of Senior Management to monitor, control, and improve quality.
• How well the ISO system integrates into their business practices.
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• How well the ISO system focuses on improving the customer experience. This means taking into account all processes that deal with the three stakeholders (your customers, your suppliers, and your organization), only then will you be able to sustain improvements in your customer experience.
• How well the auditor finds and communicates areas of improvement. Auditors that can clearly identify and communicate areas of improvement in language and terms executive management understands allows the companies they audit to act on improvement initiatives.
DOCUMENTATION
It is very important to document the quality procedure in a QMS
There are four tires in the documentation procedure
1. Policy
This defines what will be done and why
The quality manual should be written so it is clear, precise, practical and easy to understand
The why question can be answered with the help of quality policy statement
2. Procedure
This is the second tier which describes the method that will be used to implement and perform the stated policies
These are more detailed than policies
The procedure defines who should perform specific tasks, when the task should be done and where documentation will be made showing that the task was performed
3. Work instructions
These are usually department, machine or product oriented and spell out how a job will be done
These are the most detailed in the documentation tiers
These include drawings, photos, routing sheets, etc.
4. Records
These are the forms that are filled and obtain a stamp of approval on a product or a signature on a document
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They help to trace the procedure and work instructions.
They provide for corrective actions
Policy –what
and why
Procedures - who, when, where
Work instructions or practices - how
Records or proof - evidence
Documentation pyramid
ADVANTAGES OF ISO REGISTRATION
• Create a more efficient, effective operation
• Increase customer satisfaction and retention
• Reduce audits
• Enhance marketing
• Improve employee motivation, awareness, and morale
• Promote international trade
• Increases profit
• Reduce waste and increases productivity.
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THE BUREAU OF INDIAN STANDARDS (BIS)
• The Bureau of Indian Standards (BIS) is the national standards body of India working under the aegis of Ministry of Consumer Affairs, Food & Public Distribution, Government of India.
• The organization was erstwhile known as the Indian Standards Institution which was founded in the year 1947.
• As a corporate body, it has 25 members drawn from national and state politics, industry, scientific and research institutions, and consumer organizations.
• Its headquarters are in New Delhi, with regional offices in Kolkata, Chennai, Mumbai, Chandigarh and Delhi, and 19 branch offices. It also works as WTO-TBT enquiry point for India.
ISO 14000
In 1991 ISO formed strategic advisory group on the environment, which led to the formation of the technical committee (TC) 207 in 1992
The mission of TC 207 is to develop standards for an environmental management system (EMS) which is known as ISO 14000
The EMS addresses how the overall business activities, including its products and services impact the environment
The EMS maximizes the company participation in environment performance now and in future
ISO 14000 series of standards
These are Guide to Environmental Management Principles, Systems and Supporting Techniques
These have been classified into
A. Organizational evaluation standards
B. Product evaluation standards
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Organizational evaluation standardsStandard Title / Description
14001 Environmental Management Systems - Specification
with Guidance for Use
14004General guidelines – provides only information not used for
registration
14010 Guidelines for Environmental Auditing - General
Principles of Environmental Auditing
14011
Guidelines for Environmental Auditing - Audit
Procedures-Part 1: Auditing of Environmental
Management Systems
14012Guidelines for Environmental Auditing - Qualification
Criteria for Environmental Auditors
14031/32 Guidelines on Environmental Performance Evaluation
14050 Glossary
Environmental management
systems
Environmental Auditing
Environmental Performance
evaluation
Product evaluation standardsStandard Title / Description
Guide 64 EAPS guide
14020 Basic principles
14021 Self declaration
14022 Symbols
14023 Testing and verification
14024 Third party
14040Life Cycle Assessment General Principles
and Practices
14041 Goals and definition
14042 Impact assessment
14043 Improvement assessment
14050 Glossary
Environmental aspects of product standards
Environmental labeling
Life Cycle Assessment
• ISO 14001:2004 is the latest, improved version.
• ISO 14001 is for environmental management. This means what the organization does to:
• minimize harmful effects on the environment caused by its activities,
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• to conform to applicable regulatory requirements, and to
• achieve continual improvement of its environmental performance.
• Both ISO 9001 and ISO 14001 concern the way an organization goes about its work.
• They are not product standards.
• They are not service standards.
• They are process standards.
• They can be used by Product manufacturers and service providers.
THE ISO SURVEY - ISO 9001 (CONT.)2010
• The worldwide total of certificates to ISO 9001:2000/2008 at the end of 2010 was 1,457,912.
• This was increase of 6.23% over 2009 when the total was 951 486 certificates.
• Certificates had been issued in 178 countries compared to 175 the previous year.
• The biggest increases in certification are to the sector-specific ISO 22000:2005 food safety management system standard which is up by 34% and to the issue-specific ISO/IEC 27001:2005 information security management system standard which has risen by 21%
PROBLEMS
• A common criticism of ISO 9001 is the amount of money, time and paperwork required for registration.
• ISO 9001 is not in any way an indication that products produced using its certified systems are any good. A company can intend to produce a poor quality product and providing it does so consistently and with the proper documentation can put an ISO 9001 stamp on it.
• Wade argues that ISO 9000 is effective as a guideline, but that promoting it as a standard "helps to mislead companies into thinking that certification means better quality”
• While internationally recognized, most US consumers are not aware of ISO 9000 and it holds no relevance to them. The added cost to certify and then maintain certification may not be justified if product end users do not require ISO 9000. The cost can actually put a company at a competitive disadvantage when competing against a non ISO 9000 certified company.
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• The standard is seen as especially prone to failure when a company is interested in certification before quality.
• Another problem reported is the competition among the numerous certifying bodies, leading to a softer approach to the defects noticed in the operation of the Quality System of a firm.
SUMMARY
A good overview for effective use of ISO 9000 is provided by Barnes: "Good business judgment is needed to determine its proper role for a company. Is certification itself important to the marketing plans of the company? If not, do not rush to certification Even without certification, companies should utilize the ISO 9000 model as a benchmark to assess the adequacy of its quality programs."
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UNIT 8
PRODUCT ACCEPTANCE CONTROL LEARNING OBJECTIVES
By the end of this chapter the student should be able to:
Understand the various terminologies associated with acceptance sampling technique Study various acceptance sampling plans Understand the meaning of IS 2500 part 1 and 2 Enumerate the advantages of acceptance sampling
• Acceptance Sampling
– Statistical quality control technique, where a random sample is taken from a lot, and upon the results of the sample taken the lot will either be rejected or accepted.
• Purposes
– Determine the quality level of an incoming shipment or, at the end production
– Ensure that the quality level is within the level that has been predetermined
– Can be either 100% inspection, or a few items of a lot.
• Complete inspection
– Inspecting each item produced to see if each item meets the level desired
– Used when defective items would be very detrimental in some way
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• Problems with 100% inspection
– Very expensive
– When product must be destroyed to test
– Inspection must be very tedious so defective items do not slip through inspection
• Acceptance sampling advantages
– Less handling damages
– Fewer inspectors to put on payroll
– 100% inspection costs are to high
– 100% testing would take to long
• When to use acceptance sampling
ACCEPTANCE SAMPLING
ACCEPT LOT
RETURN LOT TO SUPPLIER 100% INSPECTION
DECISION
REJECT LOT SAMPLE AGAIN
DECISION
INSPECT SAMPLE
Type title here
TAKE SAMPLE
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– Between your organization and outside world
– Samples taken run through “filter,” either passing or rejecting it
o Also filter from suppliers to you
– When products in use could be damaged easily
– When using new suppliers
– When new products produced
– When current supplier in question
– Testing whole lot could be harmful
Important terminologies
• Acceptable Quality levels(AQL)
– Number of defect percentage allowed in a lot which can still be considered accepted(Type I error)
• Lot Tolerance Percent Defective(LTPD)
– Amount of defects that will come with a lot of goods(Type II error)
• Sampling Plan
– Forms after n and c values have been found
• Producer’s risk
The Producer's Risk (Seller's Risk) is the probability of rejecting a good lot. It is the Type
I error rate, or ("alpha").
• Consumer's Risk
The Consumer's Risk (Buyer's Risk) is the probability of accepting a bad lot. It is the
Type II error rate, or ("beta").
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• N
– Sample size taken for your sampling plan
• C
– Where rejections would occur when defects exceeded this percent
• Operating characteristics curve(OC)
– A graph, displaying standards at which shipments would be accepted
Example 2:
N=10000 , n = 89 and c=2
The probability of acceptance for different values of p, fraction defective are shown in the
following table.
Type I & Type II
Errors
State of the Lot
H0 True
Good Quality Lot
Ho False
Poor Quality Lot Decision
Accept H0
Accept the lot
Correct Decision Type II Error
Accepting a Poor
Quality Lot
Reject H0
Reject the lot
Type I Error
Rejecting a Good
Quality Lot
Correct Decision
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The OC curve is shown in the figure below.
The ideal OC curve which has perfect discriminatory power is as shown below.
The following figure shows the effect of sample size on the OC curves. It is noted that the
discriminatory power of the sampling plan increases with sample size.
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Double Sampling Plan
Decision of acceptance or rejection based on two samples
A lot may be accepted if the sample is good enough or may be rejected if the sample is
bad enough
If the first sample is neither good enough nor bad enough, decision is based on evidence
of first and second sample combined.
This is shown in the following .
OC Curve of a double sampling plan:
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Types A and B
Sampling plans for screening single lots are called Type A plans and use the hypergeometric
distribution. Here the model is that there is an existing single lot of size N and it actually
contains a fixed number D of defectives, which is unknown to us. The true fraction defective is
D/N.
Sampling plans for screening a series of lots are called Type B plans and use the binomial
distribution. Here the model is that there is a process which is producing a series of lots and
the true fraction defective p is characteristic of the series of lots.
______________________________________________________
Type A Type B
Single lot Series of lots
Unknown number of defectives, D Fraction defective, p
Hypergeometric Binomial
Type-A OC curve always lies below the Type-B OC curve.
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SUMMARY
• Acceptance sampling is a statistical method that enables us to base the accept-reject
decision on the inspection of a sample of items from the lot
• Acceptance sampling is used by organizations to determine if there process’s are
running within a controlled limit and to see if they should reject or accept lots
TEXT BOOKS: 1. Total Quality Management: Dale H. Bester field, Publisher - Pearson Education India, ISBN: 8129702606, Edition 03/e Paperback (Special Indian Edition) 2. Total Quality Management for Engineers: M. Zairi, ISBN: 1855730243, Publisher: Wood head Publishing REFERENCE BOOKS: 1. A New American TQM, four revolutions in management, Shoji Shiba, Alan Graham, David Walden, Productivity press, Oregon, 1990 2. 100 Methods for Total Quality Management: Gopal K. Kanji and Mike Asher, ISBN: 0803977476, Publisher: Sage Publications, Inc.; Edition – 1 3. Organisational Excellence through TQM, H. Lal, New age pub, 2008 4. The original quality gurus,[Courtesy: www.dti.gov.uk/quality/gurus]
5. Brigham, Steven E. (1993). TQM: Lessons We Can Learn From Industry – Total Quality
Management. Retrieved December 1, 2006 from
http://www.findarticles.com/p/articles/mi_m1254/is_n3_v25/ai_15331762
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6. CEO, A.N. Other (N.D.). TQM Didn’t Work For Us – So Now We’re Going Lean. Retrieved
December 4, 2006 from http://www.saferpak.com/tqm.htm
7. Chaudron, David PhD (2006). Re-engineering and TQM: Approaches t Organizational Change
told as a “Tale of Three Villages”. Retrieved December 4, 2010 from
http://www.organizechange.com/village.htm
8. Eironline (N.D.). Employee involvement in Total Quality Management. European Industrial
Relations Observatory on-line. Retrieved December 4, 2010 from
http://www.eiro.eurofound.eu.int/1997/05/feature/uk9705113f.html
9. Total Quality Management. [courtesy: www.wiley.com/college/sc/reid/chap5.pdf]
Question bank
1. Define quality.
2. What is the contribution of Juran?
3. Explain any two points of Deming.
4. What do you do in the stage STUDY?
5. What is the famous ratio as given by Deming?
6. Explain the TQM frame work with the help of a block diagram.
7. What do you do in the stage ACT?
8. How Crosby has contributed to TQM?
9. Explain the incidence of Oil shock.
10. Who practiced Scientific Management?
11. What is zero defect?
12. What are the symptoms of a troubled company?
13. What are the contributions of E. Deming?
14. How fitness to requirement is different from fitness to goodness?
15. What is PONC?
16. Which company started practicing TQM? What is its earlier name?
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17. What do you do in the stage DO?
18. What is Kaizen?
19. What do you do in the stage PLAN?
20. How Kaizen is different from Innovation?
21. Who delivered series of lectures in Japan after WW II?
22. What are absolutes of Quality as told by Fiegenbaum?
23. What are the contributions of K. Ishikawa?
24. What is Quality Circle?
25. What are the dimensions of quality?
26. Define TQM.
27. What are the basic approach for the success of TQM?
28. Explain briefly the process of paradigm shift that has occurred from
past to TQM era.
29. What are the potential benefits of TQM?
30. What are the obstacles to the implementation of TQM?
31. Which factors way lay in the success of TQM?
32. Explain Deming’s cycle with an example.
33. How Juran has contributed to the development of TQM ?
34. Explain the cause and effect diagram with an example.
35. What are the different names of cause and effect diagram?
36. Explain the concept of quality loss function of Taguchi.
37. Name the book written by Feigenbaum.
38. What is continuous improvement?
39. What are the stages of W-V model? Compare them.
40. Explain the characteristics of process control.
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41. What are the principles of process control?
42. Explain the 7 QC steps.
43. Explain 7 QC tools with one example for each tool.
44. How do you use process control and process improvement
alternately?
45. What is the importance of management diagnosis?
46. What is the characteristic of three types of data?
47. What are the standard steps of proactive improvement?
48. What are the seven advanced QC tools? Why are they used?
49. Elaborate on the relationship between PDCA, seven QC steps, seven
QC tools and seven management tools.
50. How do you use proactive improvement to develop product?
51. How do you collect Data type1?
52. Explain the process of KJ method for proactive improvement.
53. What are the seven translation guidelines?
54. What is ‘tip of iceberg’ principle?
55. Explain the quality table.
56. Explain the KANO diagram.
57. What is Kaizen?
58. How does Kaizen differ from innovation?
59. What is Reengineering? What are its characteristics?
60. What is Six Sigma concept? How does it help the organization to
control defects?
61. Explain the six sigma methodology.
62. How do you decide the competency level in six sigma?
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63. What is bench marking?
64. Explain the concept of benchmarking with a neat block diagram.
65. What is the necessity of benchmarking?
66. Explain different steps involved in benchmarking.
67. What is 5S’?
68. Explain the concept of 5S with an example.
69. What is 3M?
70. How does 3M concept help the organization in reducing waste?
71. What is Pokayoke? Give two examples of mistake proofing.
72. What are the different characteristics of a leader?
73. What are the different quality statements? How they are important for
the organization? Explain with example.
74. What is strategic planning? Explain the process of strategic planning.
75. What are quality costs? How do you classify them?
76. Explain the economics of the quality costs.
77. How do you reduce quality costs?
78. Explain the concept of QFD with an example.
79. Explain the 4 phase process of QFD with the help of block diagram.
80. What are the potential benefits of QFD?
81. What is quality by design? How is it different from sequential
engineering?
82. Why do we need to implement quality by design?
83. What is FMEA? What are its different forms?
84. Explain the design FMEA documentation.
85. Explain the process FMEA documentation.
TOTAL QUALITY MANAGEMENT – 06ME758
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86. What is the most significant part of the FMEA process?
87. What is a Quality Management System?
88. What are the different series of standards of ISO 9000?
89. What are the different characteristics of ISO standards?
90. Briefly explain various sector specific standards.
91. What are the necessary steps to implement the ISO standards
successfully?
92. Explain the process of ISO documentation.
93. Why do we need ISO registration?
94. Write short notes on BIS.
95. What is EMS? How do you classify the ISO 14000 series of standards?
Explain them briefly.
96. Explain briefly the problems associated with the implementation of
ISO.
97. What is product acceptance control? Discuss briefly the different
terminologies associated with sampling.
98. What are the different sampling plans? Explain them briefly with a
neat flow chart.
99. What are the advantages of acceptance sampling plans?
100. What are the limitations of acceptance sampling plans?
101. With the help of a diagram explain the OC curve.
102. Differentiate between Type A OC curve and type B OC curve.
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