TQM (Mid Sem)

Five Phases of TQM Portion

Phase 1 – History of QualityPhase 2 – Foundations of QualityPhase 3 – Tools for Implementation of QualityPhase 4 – Organising for QualityPhase 5 – New Trends in Management of Quality

Five Phases of TQM PortionPhase 1 – History of QualityDefinitions of Quality – Evolution of Managing for Quality as a Science : QC,CWQC,TQC,TQM – Definition of TQM

Phase 2 – Foundations of QualityWorks of the Quality Pioneers : Dr. W. Edwards Deming – Dr. Deming’s System of Profound Knowledge and Dr. Deming’s 14 points for Management Dr. Joseph M. Juran – The Juran Trilogy , Cost of Quality

Phase 3 – Tools for Implementation of QualityApplication of the 7 QC Tools and Management Tools

Phase 4 – Organising for QualityCorporate Quality and the Quality Director , Quality Council and Quality Circle Implementation , Kaizen and Gemba Kaizen Implementation , ISO 9000 Implementation , Six Sigma Implementation , Models for Quality

Phase 5 – New Trends in Management of QualityBusiness Process Reengineering Implementation , Quality in the Supply Chain , JIT and Quality , Status of TQM in India

The first ever article on Quality as we know it today : The Control of Quality in Manufacturing – 1917 by George S. Radford

The first ever book on Quality as we know it today : The Control of Quality in Manufacturing – 1922 by George S. Radford

The Second Book : The most seminal book – Economic Control of Quality of Manufactured Product – 1931 by Walter A. Shewhart

The second book by Shewhart : Statistical Methods from the Viewpoint of Quality Control – 1938 edited by W. Edwards Deming

Evolution of Quality

1900s – Inspection1920s – Process Control1950s – Process Improvement1960s – Organisational ( Systems ) Improvement1970s – Business Improvement1980s – Business Excellence1990s – Customer Value Excellence2000 – Environmental Excellence

Many now associate Continual Improvement of Quality with ‘Meaningful Sustainable Development’

Evolution of Quality

The total composite product and service characteristics of marketing , engineering , manufacture , and maintenance through which the product and the service in use will meet the expectations of the customer - Armand V. Feigenbaum

A product or a service possesses Quality if it helps someone live better materially and /or otherwise and enjoys a large and sustainable market

- W. Edwards Deming

Quality is defined as fitness for purpose . To be fit for purpose , the product/service must have features that satisfy customer needs and must be delivered free of deficiencies. - Joseph M. Juran

Quality is conformance to requirements - Phillip B. Crosby

Different Definitions of Quality

...degree to which a set of inherent characteristics fulfils requirements- ISO 9000 : 2008

Quality of Design / Redesign

Quality of Conformance

Quality of Performance

Customer

Design Product / Service

Purpose – Creating Customer

Value

“Fundamental” Quality Management

Deming : The Early Years• Influence of Walter Shewhart – 1920s• Shewhart enlists the 2 types of mistakes and

develops the “Control Theory” to reduce effects of these mistakes

• Deming organises a landmark seminar in 1938 on Statistics at NYU where Shewhart delivers his 4 day lecture on his “Control Theory”

• Application of this theory to 1940 US census by Deming results in savings to the tune of $200 million

• Improvement in productivity during the war in America using Shewhart’s Control Chart

• Sent to lead the 1947 census taking in Japan

Deming : The Later Years

• American Response to the use of the Control Chart ( 1942 – 44 ) and afterward

• Japanese experience – 1950 onwards• How the West finally took notice – 1980 onwards• Teachings between 1979 – 1987• Teachings between 1989 – 1993

• The marketplace is now global. Basis for trade between countries will be defined by Quality

• The customer is all-important. Seek to cultivate long-term relations with your customers. Seek to continuously understand consumer needs when designing products.

• Quality is determined by managers. The Quality of products and services must reflect consumer needs. Products must be uniform, be consistent, and perform dependably. The Quality of the product cannot be better than the intentions and specifications of management. Quality results from the way managers lead.

• Production is a system. The supplier is your partner. Make the supplier a partner and an integral part of the system. The customer is also part of the system, the most important part of the system.

• The chain reaction. If you improve your processes and product, your costs will decrease and you will capture the market with better Quality and lower prices, thus allowing you to stay in business and provide jobs and more jobs.

• Japan must see itself as a system. There must be trust and cooperation throughout all of industry along with government , education and healthcare in Japan. A common commitment to cooperation must sweep through Japan “like a Prairie fire”

Deming in Japan – 1947 to 1950

Production Viewed as a System

CustomerCustomerss

Suppliers of Materials and Equipment

Receipt and Test of Materials

Consumer FeedbackDesign and Re - design

Distribution

Production Assembly Inspection

Tests of Processes , Machines , Methods , Costs

“ I believe this Diagram made the difference in Japan….the greatest way I accomplished anything there was through this diagram ” W. Edwards Deming

Improve Quality

Costs Decrease because of less rework , fewer mistakes , fewer delays , snags ; better use of machine time and materials

Productivity Improves

Expand the Market withbetter Quality , LowerPrice , Diversification ,

Innovation

Stay in Business Provide Jobs and more Jobs

Deming Chain Reaction – 1950 ( revised 1988 )

Improve Qualityfurther

And so on…

THE DEMING PRIZE ESTABLISHED IN 1950 BY THE JAPANESE UNION OF

SCIENTISTS AND ENGINEERSPeace and happiness through prosperity was in fact at the root of my thoughts when in 1950, in Japan, I wrote the following inscription on the medal for the Deming Prize, given annually by the Deming Prize Committee to a company that has successfully and effectively advanced the Quality of their systems : ‘The right Quality and Uniformity are the foundations of Commerce, Prosperity, and Peace.’ “Quality brings commerce. It brings people together from different parts of the world, makes friends, and brings respect. . . . Quality does not stand still, however. Invention and design of new products are essential parts of Quality. Design, manufacture, marketing, service, testing, all go on forever in a cycle.”

Deming’s view of Quality

• Begins with meeting real needs of customers ( in use )

• High degree of Uniformity , predictability• Beyond mere conformance ( to

requirements / specifications )• Joy in Ownership through Joy in Work

Four prongs of Quality

• Innovation in products and services• Innovation in process• Improvement of existing products and

services• Improvement of existing processes

People are the most important part of a System . They must work in a System to create value for the Customer . The Manager’s Job is

to work on the System and continually improve it with help from the people and the Customer

A Manager’s Job

System of Profound Knowledge

• Culmination of Dr. Deming’s philosophy• A Theory of Leadership and Management founded in four

different but deeply interconnected sciences• Systems Theory• Human Psychology• Statistical Thinking and Methods• Learning how we learn and Improve

A “tool” for the quest of wisdom

System of Profound Knowledge

A different view of events and happenings around us• Not as incidences – rather – as outcomes• Not isolated – rather – deeply connected

Helps us get the “complete” picture

A “lens” with which we view the landscape

To see things we normally wouldn’t see

Appreciation for a System

Understanding Variation

Understanding a Theory of

Knowledge

Understanding Psychology

What Is A System?

A System is a Network of Interdependent components that work together to achieve the

Aim of the System . Every System must have an Aim , Without an Aim

there is no System

The Three most important words are• Network• Interdependent• Aim

System Thinking

• Cause and Effect are not closely related in time or space

• Outputs are a result of a myriad of inputs• Inputs affect each other also• The extent to which inputs affect each other need to

be determined• Effect of environment on the inputs need to be

studied• Effect of the inputs on the environment need to be

studied

System Thinking

Important points about a system :• Should have an aim . Without an aim there

is no system ( as before )• Aim is for all the components to gain –

over the long term• Aim is to make life better for everyone

impacted by the System

System Thinking

Pattern – Relationships that determine the System’s Characteristics

Structure – The Physical Layout of the System

Processes – Activities that take place in the Structure

Meaning – The Purpose of existence of the system

Danger of Sub-optimisation

• Interdependence – knowledge of relationships – need for communication and co-operation

• Efforts to improve a system without considering effect on all outputs may result in sub-optimisation

Action Required to Avoid Sub-optimisation

• Co-ordinate activities to optimise whole system• Evaluate performance on basis of contribution

to whole system• Look for opportunities to widen boundaries• Break down barriers – e.g. get together and list

all inputs and outputs

• Win – Win : Everyone feels a Winner

• Building trust, gaining commitment

• Making the pie bigger

• Not Mandatory Action , Patience or Collusion

Meaning of Co-operation

A Better Way to Compete ?

Co-operation an integral partLittle room for co-operation

Focus on improvement of own work, skills, team work

Focus on other team/person/group

Stress on skills, enjoying, acquiring mastery

Stress on winning

Competing withCompeting against

Fear of losing No such fear

Fight for market share – be no.1

Focus on customers – improve standard of living

Compare performance with others

Continual improvement of product, process

Harmful Effects of Competing Against

• Causes conflict and destroys desire to help• Kills intrinsic motivation• Results in Sub-optimisation• Means greater effort to get credit• Implies long-term losses

Benefits of Co-operation

• Encourages intrinsic motivation• Results in each department working for

overall good of organisation• Results in huge financial benefits• Produces unprecedented results if no one

cares who gets the credit

What should management do?

• Practice co-operation as a system• Provide leadership which nurtures teamwork e.g.

create conditions in which people work in teams with their ‘Suppliers’ and ‘Customers’

• Remove various manifestations of win – lose philosophy

• Extend “all one team” outside the organisation• Build Trust

Areas and their

options

Effects of Options

Effect on Area A

Effect on Area B

Effect on Area C

Net Effect on the

Company

Area A

i + - - -

ii + - + +

iii + - - -

Net effect on the company = ‘ - ’Net effect on the company = ‘ - ’

Areas and their

options

Effects of Options

Effect on Area A

Effect on Area B

Effect on Area C

Net Effect on the

Company

Area B

i - + - -

ii + + - +

Net effect on the company = ‘ 0 ’Net effect on the company = ‘ 0 ’

Areas and their

options

Effects of Options

Effect on Area A

Effect on Area B

Effect on Area C

Net Effect on the

Company

Area C

i + + + +++

ii - - + -

iii - - + -

Net effect on the company = ‘ + ’Net effect on the company = ‘ + ’

Areas and their options

Effects of Options

Effect on Area A

Effect on Area B

Effect on Area C

Net Effect on the

Company

Area A

i + - - -

ii + - + +

iii + - - -

Area B

i - + - -

ii + + - +

Area C

i + + + +++

ii - - + -

iii - - + -

Net Effect of Adopted Options

++ -- 0 0

Areas and their

options

Effects of Options

Effect on Area A

Effect on Area B

Effect on Area C

Net Effect on the

Company

Area A

i + - - -

ii + - + +

iii + - - -

Area B

i - + - -

ii + + - +

Area C

i + + + +++

ii - - + -

iii - - + -

Net Effect of Adopted Options

+++ + + +++++

Areas and their options

Effects of Options

Effect on Area A

Effect on Area B

Effect on Area C

Net Effect on the Company

Area A

i + - - -

ii + - + +

iii + - - -

iv - + + +

v - + + +

vi - - + -

Area B

i - + - -

ii + + - +

iii + - + +

iv + - + +

Area C

i + + + +++

ii - - + -

iii - - + -

iv + + - +

v + - - -

Net Effect of Adopted Options ++++ ++ ++++

++++++++++



Understanding a Theory of

Knowledge

Understanding Psychology

Questioning

Confirming

ExperimentingActing

Hypothesis

ExplorationVerification

Improvement

System of Learning


•Understanding that cause and effect are not closely related in time and space

•Understanding that outputs are the results of a myriad of inputs .

•Understanding the importance of a common aim or purpose for the system.

Understanding a Theory of Knowledge

•Understanding the importance of theory to interpret observations ( experience ) .

•Understanding the importance of theory and practice .

•Understanding how to learn faster .


•Awareness of the distinction between Common and Special Causes of Variation and how to interpret Control Charts

•Learning how to think statistically•Understanding that reducing variation is

synonymous to increasing Quality .

Psychology• Understanding that people are inherently good -

they want to do a good job . • Understanding that people learn differently , and

hence think differently . Working on peoples’ learning processes rather than exhorting them would be better .

• Understanding that ranking destroys people .

Peter Scholtes’ portrayal of Dr. Deming’s System of

Profound Knowledge

Viewing an event with Theory 1

Viewing an event with Theories 1 & 2

Viewing an event with Theories 1 , 2 & 3

The “true” picture – What was your guess ?

• Important points to keep in mind:– Not his philosophy but 14 consequences of his

philosophy– Not a list of instructions, techniques, check list or

prescription.– Vehicles for opening up the mind to new thinking –

radically different ways of managing. – Lay the foundation for the transformation – a change of

magnitude never imagined

"The 14 points all have one aim : to make it possible for people to work with joy."

Deming’s 14 points for management.

Appreciation for a SystemUnderstanding VariationUnderstanding PsychologyUnderstanding a Theory of Knowledge


Point 1 Create a statement of the aim and purpose of the organisational system.

It must bring out the long term vision of the organisation preferably stating how it intends to stay in business through creating value for all those impacted in any way .


Point 2

Adopt the new philosophy of win – win where everybody wins . Teach and practise this philosophy with all customers , suppliers and competitors . Focus on expanding the market rather than capturing it .



Point 3

Use the system of inspection to understand the gaps in how you perceive a Customer requirement and how the Customer actually perceives it .

Try to reduce these gaps by first trying to understand customer requirements thoroughly – then deploy this learning throughout the organisation .

Design Quality in .



Point 4 Work towards having an ‘arms-around’ relationship with your suppliers . Invest in them through education and training so they can contribute effectively towards the organisation . When purchasing , do not focus on price alone without a measure of Quality . Reduce Variation by practising co-operation with your suppliers .



Point 5

Look for better ways of understanding and analysing the processes/systems you work in . Keep improving and innovating continually . Systemise this philosophy . Find out problems before they find you out .



Point 6

Training must not only focus on how the job is done but also the purpose of the job being carried out . Everyone must know how they are contributing to the entire system . Training must also aim at creating learners . This forms the basis for continual improvement and motivates intrinsically .



Point 7

Create Leaders . Managers are no longer just planners/instruction-givers . They must be leaders . People are the most important part of a System . They must work in a System to create value for the Customer . The Manager’s Job is to work on the System and continually improve it with help from the people and the Customer by leading people , coaching them and counselling them in a non-judgmental manner .



Point 8

Create a climate of openness , trust and two-way communication .

People must not be afraid to voice their problems / constraints they are facing thatprevent them from doing a better job .



Point 9

Encourage systems thinking in the organisation where everybody focuses on creating value for the customer and not just meeting departmental/sectional objectives .

Optimise the efforts of everyone – do not maximise individual efforts .



Point 10 Do not create a superficial leadership culture by using impressive-sounding but shallow slogans, posters and exhortations and arbitrary numerical targets.A genuine leadership culture focuses on improving the work environment so that people are intrinsically motivated to do productive work and, if useful, createtheir own slogans and posters .



Point 11

Do not attempt to manage the organisational systems and processes solely by irrelevant and arbitrary measures such as quotas and targets . These are merely single dimensional aspects of very multi-dimensional entities

Instead, encourage systems thinking – i.e. understanding and establishing interdependencies between the different parts of the system and thus looking beyond theblinkered view presented by quotas, numerical targets and objectives.



Point 12

Develop a sense of ownership in every employee working in the system so that s/he could take pride and joy in the work they do .

They must feel ‘one’ with their work thus creating results themselves .



Point 13

Encourage learning . Develop learners . People are the only living parts of an organisation . For an organisation to grow fast and move in the right direction , it is essential that people are growing and learning . Pay is not as much a motivator as learning is . Continual learning leads to Continual innovation and improvement .



Point 14

Create a structure and a system in the organisation that embodies all of the above principles . Nurture relationships . Extend the boundaries of the organisation to include all those impacted . This will result in long term profits beyond measures and long term survival .


•Appreciation for a System

• Knowledge of Psychology

• Knowledge of Variation

• A Theory of Knowledge

Create a constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.

Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.

Remove barriers that rob people of pride of workmanship.

Adopt the new philosophy of win – win. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.

Cease dependence on mass inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.

a) Eliminate work standards (quotas) on the factory floor. Substitute leadership.

b) Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.

Institute training on the job.

Eliminate slogans, exhortations, and targets for the work force demanding zero defects and new levels of productivity.

Drive out fear so that everyone can work effectively for the company.

Adopt and institute leadership. The aim of leadership should be to help people and machines do a better job.

Institute a vigorous programme of education and self-improvement.

Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.

End the practice of awarding business on the basis of price tag alone. Instead, minimise total cost. Move toward a single supplier for any one item, in a long-term relationship of loyalty and trust.

Take action to accomplish the transformation.

The Product . Your own tests of the Product

in the laboratory and in simulations of use .Test of the

Product in service .

Training of Customer . Instructions for use . Training of Repairmen . Service . Replacement of Defective Parts . Availability of Parts . Advertising and Warranty : What did you lead the Customer to expect ? What did your Competitor lead him to expect ?

The Customer and the way he uses the Product . The way he

installs it and maintains it . For many products , what the

Customer will think about your Product a year , three years ,

five years from now is important .

The Three Corners of Quality

The Cycle for Executives

The Cycle for Engineers

1

2

3

45

6

7

8

1. Idea for placing importance on Quality

2. Responsibility for Quality3. Research4. Standards for Designing and Improvement of Products5. Economy of Manufacturing6. Inspection of Products7. Expansion of Sales Channels8. Improvement

Customer

1.Design the Product (with appropriate Tests)

2.Make it, test it in the Production Line and in the Laboratory

3. Put it on the Market

4.Test it in Service, through Market Research, find out what the user thinks of it, and why the non-user ha snot bought it

THE DEMING WHEEL

manufacturer the user andthe non user

Plan a change or a test aimed at improvement

Do - Carry out the change or test ( preferably on a small scale )

Study the results . What went wrong? What did we learn?

Act - Adopt the change , or abandon it , or run through the cycle again

Impact Traditional view of quality Enlightened view of Quality

Products Manufactured Goods All products and services whether for sale or not

Processes Manufacturing or visible processes

All processes

Viewed as A technological opportunity A Business opportunity

Customer Clients who buy products All those impacted

Evaluation Conformance to specifications, procedures, standards

Responsiveness to Customer needs, extent to which Customer value is created

Improvement Departmental Companywide

Initiatives led by

The Quality Manager Top Management

Freedom from Deficiencies

Less Waste ,

Less Scrap

Lower Costs

Less Warranty

Costs

Less Cycle Time

Increase in Profits

Features that lead to Customer Satisfaction

Increased Demand

Increased Market Share

Increased Price

Freedom from Deficiencies

• Reduction in errors• Reduction in wastes• Reduction in failures at

the Customers’ end ( field failures )

• Reduction in inspection and tests

• Reduction in Response times

• Increase in yield and capacity

• Increase in delivery performance

Features that enhance Customer satisfaction

• Increased Customer Base• Increased Market Share• Premium Price

Qu

ality

Imp

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of

Def

ects

5

10

15

20 Quality Planning Sporadic SpikeSporadic Spike

Quality Control

Lessons Learned

Dete

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the

Cost

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y ,

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Original Zone ofQuality Control

Original Zone ofQuality Control

New Zone ofQuality Control

The Juran Trilogy

Time

Revenue : All the money that a company takes in , in any given year

Costs : All the items which use or take a company’s cash to run the business

Assets : Company owned items which can be converted into cash

Return on Assets =

Revenue minus Costs

Assets

Cost of Quality = Cost of Conformance + Cost of Non – Conformance +

Cost of Lost Opportunities

Cost of Conformance = Cost of Prevention +

Cost of Appraisal

Cost of Non – Conformance = Cost of Internal Failure +

Cost of External Failure +

Cost of Exceeding Requirements

Cost of Lost Opportunities = Cost of Lost Opportunities

Costs of Prevention

Cost of activities that prevent failure from happening• Planning for Quality• Reviews• Process Design• Process Control • Quality Audits• Supplier Evaluation• Training for Quality

Cost of Appraisal

Cost incurred to determine conformance with Customer requirements after the work has been completed

• Inspection and Tests ( Incoming , Inprocess and Final stages )

• Document Reviews• Accounts Reconciliation• Maintaining accuracy of Test Equipment• Reconciliation of Stocks , Equipment , etc

Cost of Internal Failure

Cost of correcting products or services which do not conform to internal customer requirements or are identified prior to delivery as not meeting the requirements of external customersFailure to meet Customer Requirements and Needs

• Scrap• Rework• Missing Information• Failure Analysis• 100 % Sorting• Reinspection , retests• Changing Processes• Redesign of Hardware and Software• Downgrading

Cost of Internal Failure

Cost of Inefficient Processes• Variability in Product Characteristics• Unplanned Downtime of equipment• Inventory Shrinkage• Non value added activities

Costs of External Failure

Costs to correct products or services after delivery to the Customer

• Warranty Charges• Complaint Adjustments• Returned Material• Allowances• Penalties• Rework

Cost of Exceeding Requirements

Cost of providing Information or Services which are not necessary or for which no requirements have been established

Cost of Lost Opportunities

Lost Profits due to the company not satisfying or being able to satisfy , the requirements of external customers

Implementation of the Quality Initiative through time

LO

C

NC

LO

C

NCLO

C

NC

Evolution of the Cost of Quality over time

APPLY MEASUREMENTS

THROUGHOUT

Quality Goals Identify Customers

Identify NeedsTranslate Needs

Establish Measures Develop Product

Develop ProcessOptimise Process

Transfer to Operations

QUALITY PLANNING

QUALITY PLANNING

1. Define the Project What do we need to build ?2. Identify the Customers . Who will be impacted by our efforts ?3. Discover Customer Needs . What benefit do the Customers want ?4. Develop the Product / Service . What Product features will create that benefit ?5. Develop the Processes . How will we produce the product features? 6. Develop Controls / Transfer to Operations . How do we ensure it works as designed ?

Cust

om

ers

Cust

om

er

Needs

Product Features

Pro

duct

Fe

atu

res

Pro

cess

Fe

atu

res

Process Controls

Customer Needs

ProcessFeatures

UnderstandingMatrix

DesignMatrix

ProcessMatrix

OperationsMatrix

Spreadsheets in Quality Planning

PRODUCT QUALITY

PLANNING TIMING CHART

Planning

ConceptInitiation / Approval

PLAN AND DEFINE

PROGRAMME

Plan and Define Programme

Inputs

•Voice of the Customer―Market Research―Historical Warranty and Quality Information―Team Experience

•Business Plan / Marketing Strategy•Product / Process Benchmark Data•Product / Process Assumptions•Product Reliability Studies•Customer Inputs

Plan and Define Programme

Outputs

•Design Goals•Reliability and Quality Goals•Preliminary Listing of Special Product and Process Characteristics

Interrelationships

Counterpart Characteristics

Relationships between Attributes and


Attrib

ute

s

Voice

of th

e

Custo

mer

Prio

rity

Com

petitiv

e

Evalu

atio

n

Priorities of Characteristics

PRODUCT QUALITY


Planning

Product Design and Development


ProgrammeApproval

PLAN AND DEFINE

PROGRAMME


Inputs

•Design Goals•Reliability and Quality Goals•Preliminary Listing of Special Product and Process Characteristics


Outputs

• Design for Manufacturability ( Realisation ) and Assembly• Design Verification• Design Reviews• Sketches / Drawings or “Feelers”• New Equipment and Facilities Requirements• Special Product/Service and Process Characteristics• Testing/Simulation Requirement• Team Feasibility Commitment

PRODUCT QUALITY


Planning


Process Design and Development


ProgrammeApproval Prototype

PLAN AND DEFINE

PROGRAMME

PRODUCT DESIGN AND DEVELOPMENT

VERIFICATION

PROCESS DESIGN AND DEVELOPMENT

VERIFICATION


Inputs

• Design for Manufacturability ( Realisation ) and Assembly• Design Verification• Design Reviews• Sketches / Drawings or “Feelers”• New Equipment and Facilities Requirements• Special Product/Service and Process Characteristics• Testing/Simulation Requirement• Team Feasibility Commitment

Outputs

•Packaging Standards and Specifications•Product / Process Quality System Review•Process Flow Chart•Floor Plant Layout•Characteristics Matrix•Process Instructions•Preliminary Process Capability Study Plan


PRODUCT QUALITY


Planning



Product and Process Validation


ProgrammeApproval Prototype Pilot Launch

PLAN AND DEFINE

PROGRAMME


VERIFICATION


VERIFICATION

PRODUCT AND

PROCESS VALIDATION


Inputs

•Packaging Standards and Specifications•Product / Process Quality System Review•Process Flow Chart•Floor Plant Layout•Characteristics Matrix•Process Instructions•Preliminary Process Capability Study Plan

Outputs

•Production Trial Run•Preliminary Process Capability Study•Production Part Approval•Production / Service Validation Testing•Packaging Evaluation•Team Sign-off


PRODUCT QUALITY


Planning




Production

Feedback Assessment and Corrective Action



PLAN AND DEFINE

PROGRAMME


VERIFICATION


VERIFICATION

PRODUCT AND

PROCESS VALIDATION

FEEDBACK ASSESSMENT AND CORRECTIVE

ACTION

Feedback , Assessment and Corrective Action

Inputs

•Production Trial Run•Preliminary Process Capability Study•Production Part Approval•Production / Service Validation Testing•Packaging Evaluation•Team Sign-off

Feedback , Assessment and Corrective Action

Outputs

•Reduced Variation•Customer Satisfaction•Delivery and Post Delivery Service

PRODUCT QUALITY


Planning




Production

Feedback Assessment and Corrective Action

Planning



PLAN AND DEFINE

PROGRAMME


VERIFICATION


VERIFICATION

PRODUCT AND

PROCESS VALIDATION

FEEDBACK ASSESSMENT AND CORRECTIVE

ACTION

The Control Pyramid

Informational Controls

Supervisory Control

Operator Control

Automatic Controls

Error Proofing

Choose the control subject – What do we want to regulate ?

A Negative Approach :A Control Subject emerges out of a “Bitter Experience” or Catastrophic Failure

A Positive Approach : ( A Deliberate Effort to “unearth” Control Subjects moving up the Control Pyramid )

•Highly Repetitive Activities ( Fool Proofing and / or Automation )•Effect of failures are “obvious” and localised and losses occurring are minor ( Operator Control )•Coordination , Discipline , Fluidity of Operations , High Risk Factors ( Supervisory Control )•Matters of Company Performance , Hierarchal or Geographic factors , Extensive Analysis , Great Risks ( Informational Control )

Establish Measures – How can these be expressed in terms of units , ratios , indexes etc. ?

Create a Sensor – How can these measures be captured in a timely manner ?

Establish Standards – What are the instances which will • warrant concern ( indicators ) ? • indicate normalcy ?

Measure continual performance ( frequency ) – Decide where , who , when and how to measure actual performance

Compare to Established Standards – Decide on who does this and how this is to be done

Take action on the difference – Is the difference pronounced so as to precipitate a systemic change , process change , task change , etc ?

Process Sensor Goal

Actuator Umpire

1

2 3

4

5

1 – Sensor plugged into the Process to evaluate actual performance

2 – Sensor ‘reports’ performance to the Umpire

3 – Umpire compares performance to Goal

4 – Umpire reports difference to the Actuator

5 – Actuator alters process to bring output in line with goals

Set standards for Control and Improvement

Input Transformation OutputCustomer Value

( other stakeholders )

P

DS

A

Preliminary Control

Concurrent C

ontrol

Rew

ork C

ontro

l

Feed back information on performance , study relationships among measures of performance throughout the system , and take action to improve

Communicate Standards

Information on value delivered and unmet Customer needs

Loss

Con

trol

Control Subject

Nominal Measure Unit SensorFrequency of measurement

Location of Measurement

Criteria for action

Action taken

12

3

45

6

7

8

1. Form a Quality Council2. Analyse the Symptoms3. Theorise as to the causes4. Test the Theories5. Establish the causes6. Stimulate the establishment of a

remedy7. Test the Remedy under Operating

conditions8. Establish controls to hold the gains

1 – 5 : The Diagnostic Journey6 – 8 : The Remedial Journey

Project Definition and Organisation

Diagnostic Journey

Remedial Journey

Holding the Gains

•Breakthrough in Attitude

•Breakthrough in Organisation

Demonstrated Control at the new level

Mission Statement and Team Charter

Identified Root Causes

•Breakthrough in Cultural Patterns

Implemented Solutions

•Breakthrough in Results

Juran on Quality Improvement

PROJECT DEFINITION AND ORGANISATION

1. List and prioritise problems

2. Define project and teams

DIAGNOSTIC JOURNEY

3. Analyse symptoms

4. Formulate theories of causes

5. Test theories

6. Identify root causes

REMEDIAL JOURNEY

7. Consider alternative solutions

8. Design solutions and controls

9. Address resistance to change

10. Implement solutions and controls

HOLDING THE GAINS11. Check performance

12. Monitor control system


Interrelationships




Attrib

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Voice

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Custo

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Evalu

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Needs Design Attributes

Features ProcessSteps Operational

ConditionsQualityPlan

House of QualityDesignMatrix Process

MatrixOperationalMatrix

ControlMatrix

The Progression from Philosophy to Action

Philosophy – W. Edwards Deming

Structure and Approach – Joseph M. Juran

Frameworks – Just in Time , ISO 9000 , Baldrige Criteria

Methods – SPC , QFD , DOE , QIT

QC Tools and Management Tools

Deming’s contribution to the Field of Statistics

Distinguishing between Enumerative and Analytical Studies

Enumerative Number crunching exercises – data collection , assimilation and presentation

AnalyticalApplication of the Control Theory , Scientific Method and Subject Matter Knowledge to understand the situations which led to the data being generated – in other words study of the causal systems .

Common & Special Cause Variation

Common Causes VariationVariation that exists in a system due to inherent properties of the system itself ( it’s design ) or the way it’s managed...

Special Cause VariationVariation that exists in a system due to some external factors – factors not a part of the system but alien to it...

Conventional Data Interpretation

• Common approaches are :•comparison to specifications or managing by

the last data point• Common Traps in use of Figures alone :

•Too little attention to matters for which figures are not available.

•Forcing wrong figures (due to fear).•Misuse and abuse of figures

Data presentationShewhart’s Rule One when presenting Data :

Data should always be presented in such a way that preserves the evidence in the data for all the predictions that might be made from these data .

In short the following questions need to be asked :

• Who collected the data ?• How were the data collected ?• When were the data collected ?• Where were the data collected ?• What do these values represent ?• And if the data are computed values , how were the

values computed from the raw inputs ?• Has there been a change in formula over time ?

Shewhart’s Rule Two when presenting data

Whenever an average , range or histogram is used to summarise data , the summary should not mislead the user into taking any action that the user would not take if the data were presented in a time series .

In short :

• No comparisons must be made between pairs of values except as a part of a broader comparison .

• Use time Series graphs to present values in their context .

Data presentation

Shewhart’s control chart approach

• Control chart : a time series graph with a central line (average), UCL & LCL

• Shewhart gave a simple practical way of calculating limits

• Focus on process instead of each value – hence yields insight and understanding.

Shewhart’s control chart approach

• The Control Chart is an “Operational Definition” of a process in a state of Statistical Control

• Not based on laws of probability• Not a test of Statistical significance• Empirical laws laid down by Shewhart on May 16th

1924 that have stood the test of time

Control Charts:Some Relevant Points

• Different types of charts for different situations but XmR & XbarR are most used.

• Unstable processes : unpredictable changes; no significant changes in stable processes.

Control ChartThe methodology.

• A) The XmR chart.– Useful for ‘one – at – a – time’ data– Can be used with 15 – 20 observations– Can also be used with 7 observations – but

to interpret with care !!

Control ChartThe methodology

• A) The XmR chart (continued).– For X chart (individual values).

• Upper Natural Process Limit=Xbar+2.66*Rbar.• Lower Natural Process Limit=Xbar-2.66*Rbar.

16.0 15.8 15.7 15.9 16.2

16.2 16.4 16.5 16.2 16.0

15.7 16.1 15.5 15.1 16.0

16.1 15.7 16.0 16.0 15.5

16.4 15.9 16.3 16.2 16.6

15.9 16.1 15.6 15.8 15.8

Chart for Weights of Yarn used

15.0

15.2

15.4

15.6

15.8

16.0

16.2

16.4

16.6

16.8

17.0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Shift data

Gra

ms

16.84

15.11

15.97

1999 2000

Jan 5 Jan 4

Feb 4 Feb 6

Mar 6 Mar 5

Apr 7 Apr 4

May 6 May 7

Jun 5 Jun 4

Jul 6 Jul 7

Aug 6 Aug 5

Sep 5 Sep 4

Oct 14 Oct 5

Nov 6 Nov 17

Dec 7 Dec 4

Chart for absenteeism

0

2

4

6

8

10

12

14

16

18

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

% o

f abs

ente

eism

16.04

6.21

0.00

The XbarR chart• For Xbar chart • Make Subgroups• Calculate Average and Range for each sub

group• Calculate grand average of average ( X double

bar ) and range ( R bar ) Upper Natural Process Limit=Xdbar+A2*Rbar.

Lower Natural Process Limit=Xdbar-A2*Rbar.

Control ChartThe methodology

99.7 99.0 99.7 99.1 100.2 99.1 100.2 99.2 99.2 100.3

99.8 100.3 99.6 100.4 100.0 99.3 100.1 99.6 99.8 100.1

99.9 100.1 99.4 99.3 99.9 99.5 100.0 99.5 99.7 100.0

99.9 100.0 100.4 99.9 99.9 99.6 99.9 99.3 99.6 99.9

100.0 99.9 99.3 100.2 99.8 99.7 99.7 99.7 99.5 99.9

100.1 99.9 99.1 99.8 99.8 99.8 99.6 99.8 99.4 99.8

99.4 99.8 100.1 99.9 99.7 100.1 99.5 100.0 100.2 99.7

99.5 99.7 99.9 100.0 99.6 100.0 99.3 99.9 99.9 99.6

99.6 99.6 99.9 99.8 99.5 99.9 99.2 100.2 100.0 99.5

100.3 99.6 100.0 99.7 99.3 99.8 99.8 100.1 100.1 99.4

99.76

99.28

100.25

7 10 11

4 2 5

6 3 8

9 8 12

7 8 6

5 5 8

6 3 6

8 4 6

5 5 6

10 9 12

6 12 10

7 9 10

4 6 7

6 5 5

5 7 7

4 4 3

7 4 8

15 18 19

7 5 3

6 6 6

A2 for n = 3 is 1.02

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

10.14

4.02

7.08

Total Rejection Percentage

Percentage of Shifting

Trend Analysis

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Month

Chart for Shifting percentages

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Month

Contribution made in Dollar/manhour

300

400

500

600

700

800

900

1000

1100

1 2 3 4 5 6 7

Driver no

Chart for faults per 5000 welds

0

5

10

15

20

25

30

1 2 3 4 5 6 7 8 9 1 11

Welder No.

Welder No. 6 in need of attention .Upon examination it was found that

his eyes needed treatment

Purchase Costs over Time

1.95

2

2.05

2.1

2.15

2.2

Month

Valu

e in

La

khs

Rejection Percentages over time

0

2

4

6

8

10

12

14

16

18

Month

Va

lue

in

La

kh

s

XmR chart for failures of Lube Oil System on Load Box/Road Trial for rebuilt locomotives of DCW/PTA

(Limits are calculated based on values from Jan 2004-Dec 2005)

50

55

60

65

70

75

80

85

90

95

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Use of beta blocker 2

Use of beta blocker 1

8.7 9.6 12.6 9.5

11.3 9.9 8.9 10.6

8.5 8.4 9.0 9.3

7.8 10.2 8.3 8.6

10.4 9.2 10.3 10.1

8.8 9.1 9.4 9.6

The following data were collected by an Production Manager in a Fertilizer Company . The data represent pH values of a certain chemical used to make the fertilizer . Compute the Control Limits of the process if the XmR method is used . If the Specification Limits are set at 9 ± 4.5 , what will be the values of Cp , Cpl and Cpu ? Suppose the Manager wants to implement the Six Sigma approach in this process , what will the limits become ? The Flow of the data collected is from left to right .

The following data were collected by an Production Manager in a Fertilizer Company . The data represent pH values of a certain chemical used to make the fertilizer . Compute the Control Limits of the process if the XmR method is used . If the Specification Limits are set at 9 ± 4.5 , what will be the values of Cp , Cpl and Cpu ? Suppose the Manager wants to implement the Six Sigma approach in this process , what will the limits become ? The Flow of the data collected is from left to right .

What are the instances in a Control Chart that warrant attention?

•One point outside the control limits

•Seven points in a row all above/ below average

•Seven points in a row all increasing/ decreasing.

THE CONTROL CHART IS NO SUBSTITUTE FOR THE BRAIN

Benefits of Control Charts

• For all levels – worker to CEO• Prediction of performance• Assessing effect of improvements• Common language• Local or management action• Immense benefits by use at top levels

Quality Tools

•Flow Diagram

•Pareto Charts

•Cause & Effect Diagrams

•Run Charts

•Control Charts

•Scatter Diagram

Management Tools

•Inter – relationship Diagram

•Matrix Charts

•Failure Modes and Effects Analysis

•Flow Diagram

• ( Cost of Quality )

• ( 5 Why )

Cost of Quality Example

The following costs were recorded in an organisation . Arrange them under different heads of the Cost of Quality as appropriate .

Defective Stock Returned from Customer – Rs 1,50,000Repairs to Product – Rs 4,50,000Collect Scrap – Rs 10,000Waste Scrap – Rs 2,00,000Consumer Adjustments – Rs 6,00,000Downgrading Products – Rs 1,00,000Incoming Inspection – Rs 1,00,000Laboratory Testing – Rs 1,75,000Spot Check Inspection – Rs 3,50,000Local Plant Training – Rs 5,00,000Corporate Training – Rs 2,00,000

SolutionCost of Non conformanceExternal FailureDefective Stock Returned from Customer – Rs 1,50,000Repairs to Product – Rs 4,50,000Internal FailureConsumer Adjustments – Rs 6,00,000Downgrading Products – Rs 1,00,000Collect Scrap – Rs 10,000Waste Scrap – Rs 2,00,000Cost of ConformanceAppraisalIncoming Inspection – Rs 1,00,000Laboratory Testing – Rs 1,75,000Spot Check Inspection – Rs 3,50,000PreventionLocal Plant Training – Rs 5,00,000Corporate Training – Rs 2,00,000