BYVIMAL TRIPATHI (F.Q.C.)

& GIRISH CHANDAN (T.L.)

MCM Mobile Telecom Equipment Pvt . Ltd.

Increase Sales Volume (Increase Market share)

Increase Sale Price Reduce Purchase cost of Input Reduce cost of production Improve quality (Reduce cost of

Quality) Improve productivity

Improve ProfitImprove Profit

Productivity is a ratio of The amount of output per unit of input

(labor, equipment, and capital).

• Number of products / No. of hours taken to produce them

• Revenue generated by employee / Salary of employee

System is a set of interactive elements corresponding to the given inputs to produce the desired output

Procedure is a set of activities which have to follow in a systematic format without taking any shortcuts

Process is a set of activities/operations which follow the procedures and systems with right RM and intermittent checking to avoid any lapses.

Process is a summation of activities such as operations, inspection, delays, storage, transportation and everything else that happens between the beginning and the end of the process

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3 4

5

Final output of production without Quality Assurance..

Six Sigma- (The statistical Representation) is a process of Quality measurement, which helps the organization in the improvement of their Quality

Six Sigma is a systematical process which helps the organization to eleminate the defects which prevent it from reaching perfection

Six Sigma ensures the QC, TQM and Zero Defect When a process attains six sigma level it means

that there is no room for the product to fail Six sigma is professionalizing of the Quality

Management functions

Sigma Sigma LevelLevel

% Good% Good PPM/PPM/DPMODPMO

Cost of Quality as % Cost of Quality as % of Salesof Sales

22 95.4595.45 4550045500 Over 40%Over 40%

33 99.7399.73 27002700 25 - 40%25 - 40%

44 99.993799.9937 6363 15 - 25%15 - 25%

55 99.9999499.9999433

0.570.57 5 - 15%5 - 15%

66 99.9999999.999999898

0.0020.002 Less than 1%Less than 1%

Total quality management (TQM) is a business management strategy aimed at embedding awareness of quality in all organizational processes. TQM has been widely used in manufacturing, education, hospitals, call centers, government, and service industries, as well as NASA space and science programs

Total Quality Management (TQM) is a

structured system for meeting and exceeding customer needs and expectations by creating organization-wide participation in the planning and implementation of improvement (continuous and breakthrough) processes

What is TQM ?What is TQM ?

Total: Involve all functions to have customer focus and give reliable delivery of product+service in line with customer’s expectations at lowest cost

Quality: Design and manufacture the product+service to achieve zero defect and 100% customer satisfaction

Management: Lead to achieve quality for customers by communicating the vision, mission and values to all employees and creating continuous improvement culture

1. Customer-Focused Organisation 2. Leadership 3. Involvement of People 4. Process Approach 5. System Approach to Management 6. Continual Improvement 7. Factual Approach to Decision Making 8. Mutually Beneficial Supplier

Relationships

Understand customer needs and expectations for products, delivery, price, dependability, etc.

Ensure a balanced approach among customers and other stake holders’ (owners, people, suppliers, local communities and society at large) needs and expectations.

Communicate these needs and expectations throughout the organisation.

Measure customer satisfaction & act on results, Manage customer relationships

Be proactive and lead by example. Understand and respond to changes

in the external environment. Establish a clear vision of the

organisation's future. Set challenging goals and targets Implement a strategy to achieve

these goals and targets.

Accept ownership and responsibility to solve problems.

Actively seek opportunities to make improvements, and enhance competencies, knowledge and experience.

Freely share knowledge & experience in teams.

Focus on the creation of value for customers. Be innovative in furthering the organisation’s

objectives Make people enthusiastic and proud to be

part of the organisation.

Define the process to achieve the desired result.

Identify and measure the inputs and outputs of the process.

Identify the interfaces of the process with the functions of the organisation.

Evaluate possible risks, consequences and impacts of processes on customers, suppliers and other stake holders of the process.

Define the system by identifying or developing the processes that affect a given objective.

Structure the system to achieve the objective in the most efficient way.

Understand the interdependencies among the processes of the system.

Continually improve the system through measurement and evaluation, and

Estimate the resource requirements and establish resource constraints prior to action.

Make continual improvement of products, processes and systems an objective for every individual in the organisation.

Apply the basic improvement concepts of incremental improvement and breakthrough improvement.

Use periodic assessments against established criteria of excellence to identify areas for potential improvement.

Continually improve the efficiency and effectiveness of all processes.

Take measurements and collect data and information relevant to the objective.

Ensure that the data and information are sufficiently accurate, reliable and accessible.

Analyse the data and information using valid methods.

Understand the value of appropriate statistical techniques, and

Make decisions and take action based on the results of logical analysis balanced with experience and intuition.

1. Set company strategy, values and culture2. Identify the customers and understand their

expectations3. Define their specific needs4. Build the quality in the process from the

begining(advocate prevention & not correction)5. Reduce chronic waste6. Reduce variation7. All levels of the organization must be involved/trained 8. Continually improve the quality of product or service9. Use structured methodology for process improvement10. Use a balanced approach

100% Customer Satisfaction

Zero Defects

Continuous Improvement Culture

1. Ethics2. Integrity 3. Trust4. Training5. Teamwork6. Leadership7. Recognition8. Communication

Ability to be more competitive Improved market share Cost reduction Increased flexibility and responsiveness Simplified processes Improved communications More satisfaction among the workforce

1. Seiri : separate out needed items2. Seiton: organize workplace for faster

retrieval (fix place for each item)3. Seison: sweeping/cleaning around

work area4. Seiketsu: keep everything clean for

constant state of readiness5. Shitsuke: Everyone must understand

and practice the rules in the plant

Maintenance is done on the equipments to keep them running as efficiently as possible for as long as possible

There are three types of maintenance :1. Breakdown maintenance (unplanned)2. Preventive maintenance (planned)3. Predictive maintenance ( High tech

analysis )

1. Quality Integration (Process capability- Cpk)2. New Equipment Management (design)3. Autonomous Maintenance (military like)4. Planned Maintenance (reduce unplanned)5. Equipment Improvement (productivity)

Quality = fitness for use by the customer

Juran’s Triology: (Quality oriented Principles)

1. Quality Planning2. Quality Control3. Quality improvement

Setting Quality standards

Apraising conformance to these standards

Acting when standards are exceeded

Planning for improvements in standards

Definition : For the customer to buy the

product/service with confidence and use it for a long time with ease and satisfaction, the manufacturer has to give assurance and also give evidence that the product will not fail

Develop quality plans Carryout vendor quality surveys Carryout product quality audits Review disposition of non-conforming

products Initiate customers’ future needs Co-ordinate document control activity Upgrade inspection records

Variation is the main reason of poor Quality There is no such thing as Quality Problem, it

is an opportunity to improve There is nothing like economics of Quality,it

is cheaper to do the job right , the first time The only performance measurement is the

cost of Quality The only Performance standard is “ZERO DEFECT”

Prevention Cost…….investment cost Appraisal Cost……Inspection & Analysis Internal Cost……Scrap and rework External Cost……Customer Complaints Product Recalls and

Returns

Prevention costs…..High throughout Appraisal costs……low/same throughout Internal costs……..initially high, gradually declining External costs……initially high, sharply

decline (stability period) Total Cost……….sharply decline as the

product becomes stable

As we keep improving the Quality, the total Cost of Quality keeps coming down

However if we improve the Quality beyond a certain point, the prevention cost will sharply go up and the total cost will also go up

Hence we have to find an economic Balance of Cost and Quality (six sigma)

Customer awareness = keeping customer’srequirements in mind

These requirements are: Right Quality, Right Quantity, Right time & Right Cost

The customer delight is far beyond customersatisfactione.g: Taxi keeping newspapers, Telephonedirectory, Railway Timetable, etc

Why customers Quit ?

1% die natural death 3% relocate 5% move away due to friends contact 9% due to competitive reasons 14% poor quality of product 68% indifferent attitude towards

customers

Old Definition of Quality: Products and services are provided

exactly as per the specifications already laid down

New definition of TQM: Products and services that totally satisfy

the customer needs and expectations in every respect, on a continuous basis

Commitment by senior management and all employees

Meeting customer requirements Reducing development cycle times Just In Time/Demand Flow Manufacturing Improvement teams Reducing product and service costs Systems to facilitate improvement Line Management ownership Employee involvement and empowerment

Bill Gates:There will be a personal computer on every desk running microsoft software

Vision Statement should answer:1. Why did I start this business2. When I move on from this business, what do

I leave behind3. What am I providing for my customers

beyond product/service4. If my business could be everything I dreamed how would it be

The quality of the product is checked to see the variation

The control in variation wrt the design spec/dimension is aimed at

More the variation, poorer the quality Less the variation better the quality The analysis of variations ( control

charts) give direction for the action to be taken to control the variation

Quality Plan (Quality Assurance Plan) A Quality plan is a document specifying the

quality management system elements and the resources to be applied in a specific case

Activities to be considered are: Product spec,quality and delivery

requirements, how the product/service is created and resources required,quality verification and records to be kept to demonstrate conformity

Identify who the customers are Determine the needs of those customers Translate those needs into our language Develop a product that can respond to those

needs Optimise the product features so as to meet

our needs and customer’s needs Optimise the process Prove that the process can produce the

product under operating conditions Transfer the process to operation

ISO 9000 is a series of International stds To be used by the cos. wanting to

implement in house quality systems These stds are developed by international

organization for standardization (ISO) These promote international trade by

providing one consistent set of requirements recognized around the world

1. Management responsibility

2. Quality system3. Contract review4. Purchasing5. Product

identification and traceability

6. Process control7. Inspection and test

equipments

8. Control of non conforming products

9. Storage, packing and delivery

10. Quality records11. Internal quality

audits12. Training 13. Statistical

techniques

BPR is a management approach aiming at improvements by identifying and implementing new ways of carrying out work. Thus elevating efficiency and effectiveness of the processes that exist within and across the organization

1. Men2. Materials3. Machines4. Manufacturing conditions5. Manufacturing process6. Capability to invest money7. Management commitment to Quality8. Product design (Tangible and *Intangible)9. After sales service (*Safety and Reliability)

1. Quality2. Tangibility3. Reliability4. Responsiveness5. Communication

6. Security7. Competence8. Courtesy9. Understanding10. Access

Answer the phone Don’t overpromise Listen to your Customers Deal with Complaints Be helpful and knowledgeable Train the staff to be courteous Take the extra step Throw in something extra

Service quality has high level of intangibility

Most services are intangible as there are performances and not objects

Services are perishable , they can not be inventoried, saved and resold later

The actual performance of service differs from provider to provider

QC is a small group of employees working on similar jobs, mostly at worker level to perform quality control and improvement activities within their workplace

These groups work on continuous improvements as a part of company wide activity

This was started in Japan in 1962 in line with the conviction of Ishikawa that the workers can significantly contribute to improve quality and productivity

Japan attributes phenomenal growth in 1960-1970 to QC

Basic Objectives:1. Wider contribution towards

improvement and development of the enterprise

2. Respecting humanity and building a happy and cheerful workplace

3. Exploiting human capabilities fully and drawing out infinite possibilities

1. Decide on the theme2. Establish the goals3. Clarify reasons and their importance4. Access the current situation5. Probe the causes and analyze them6. Establish corrective measures 7. Implement the measures8. Evaluate results9. Standardize to prevent slipups10. Reflection of the results

Operational Management 5 ‘S’ BPR Quality Management QC ( Quality Circles) ISO TPM ( Total Productive Maintenance) Six Sigma ( For Processes CTQ )

Quality Mgmt Systems Devendra Kumar Bhatt / Aparna Raj Productivity and Quality Mgmt Shashikant D Aphale Vipul Prakashan