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MBA 4.4: QUALITY MANAGEMENT Module 1 Evolut Evolution ion of Qualit Quality y managem management ent;; concep concepts ts and objecti objectives ves of qualit quality y manage management ment;; Zero Zero defects; Acceptance sampling; Quality Inspection; Quality assurance; Quality circles; training for quality; concept and tools of Six Sigma
Evolution of Quality Manageent T!e Quality Gu"u# !Q" evolved and it is #ort$ considering t$e beliefs of t$e main quality gurus #$o $ave added to t$e mix% starting #it$ &eming $imself $imself Ed$a"d %eing &eming's concepts of process management began #it$ t$e use of statistical quality control (is real contribution #as $is ability to cut t$roug$ academic t$eory and present ideas in a simple #ay t$at #as meaningful and practical rig$t do#n to t$e s$op )oor )oor (e interpreted quality in terms of reliability% dependability% predictability and consistency of product and service (e sa# quality improvement as being analogous to reduction in process variation *y reducing t$is #it$ t$e $elp of statistical control met$ods% variation in product quality is also reduced !$e fact t$at processes are no# under better control also means lo#er cost and improved productivity &eming's approac$ started #it$ understanding t$e causes of t#o types of variation% + + Ext Exter erna nall in)u in)uenc ences es on on t$e t$e pro proce cess ss #$i #$ic$ c$ $e $e desc describ ribed ed as as unco uncont ntrrolled olled var varia iati tion on due due to ,special causes, Examples are c$anges of operation% procedures% and ra# materials All t$ese interrupt t$e normal pattern of operation - .on .ontr trol olle led d vari variat atio ions ns #$i #$ic$ c$ ar are due to to c$an c$ance ce%% rand random om%% or ,com ,commo mon n caus causes es, , All All of t$ese by de/nition are due to t$e process itself% its design or installation 0or &eming% quality improvement must begin #it$ identi/cation of t$e t#o types of variation !$e next stage is to eliminate t$e ,special causes, and only t$en #or1 on t$e ,common causes, Identi/cation and elimination of t$ese is assisted by t$e use of Statistical Process .ontrol .ontrol 2SP.3 and various forms of simple simple control control c$arts designed to be used on a s$op )oor environment "anagement improves t$e process by re4designing it to improve it's capability to meet customer needs &emin &eming g also also stre stress ssed ed t$e t$e cruc crucia iall impo import rtan ance ce of t$e t$e need need for a deep deep unde unders rsta tand ndin ing g of businesses #or1 processes 5it$out t$is% true progress #ill not be made 6ver t$e years &eming t$oug$ts expanded% to cover issues of managing people% leaders$ip and training in order to ac$ieve quality goals
&o#e'! &u"an 7uran publis$ed ,!$e Quality .ontrol (andboo1, in +89: #$ic$ became t$e standard reference boo1 on quality #orld4#ide 7uran developed $is !Q" p$ilosop$y p$ilosop$y around $is ,quality trilogy, + Qua Quali lity ty plan plannin ning< g< t$e t$e pr proces ocess s for for prep prepar aring ing to meet meet t$e t$e qua quali lity ty goal goals s Qua Quali lity ty cont contrrol< t$e t$e pro proce cess ss for for meet meetin ing g qua quali lity ty goal goals s tt$r $rou oug$ g$ opera operati tion ons s = Qua Quali lity ty impr improv oveme ement nt<< t$e t$e proc proces ess s for for bre brea1 a1 t$r t$roug$ oug$ leve levels ls of perf perfor orma manc nce e *ot$ $e and &eming correctly stressed t$e need to involve people t$roug$out t$e organi>ation in quality improvement but in particular t$at most quality issues are do#n to management
Page ( of 49 dealing #it$ systems !$e emp$asis is on getting t$e system correct rat$er t$an blaming failure failure on operator error error 7uran particularly particularly emp$asi>ed emp$asi>ed t$e use of quality quality teams and training training t$em in measurement and problem solving
)ao"u I#!i*a$a Is$i1a#a is regarded as t$e fat$er of t$e quality circle approac$ #$ic$ #as involved building s$op )oor teams (is legacy is more directly lin1ed to $ands on% practical tec$niques and promoted many of t$e tools and tec$niques of measurement% analysis and problem solving commonly used as part of t$e !Q" armoury armoury T!e#e in+lude: Pareto Pareto analysis 0is$bone diagram 2ot$er#ise 1no#n as an Is$i1a#a diagram3 Strati/cation (istograms .ontrol .$arts Scatter diagrams • • • • • •
,!ili' -"o#y .ros .rosby by did did muc$ muc$ to popu popula lari> ri>e e t$e t$e us use e of !Q" !Q" (e /rst /rst desi design gned ed a $ig$l $ig$ly y su succ cces essf sful ul prog progra ramme mme for for I!! I!! for #$om #$om $e #or1 #or1ed ed befo before re sett settin ing g up $is $is o#n o#n qual qualit ity y colle college ge and and consultancy /rm (is training programme $as been #idely used by a large number of ?S and ?@ companies Again% li1e ot$er practitioners% $is training is targeted at t$e "anagement team as #$ole and not just quality control specialists .rosby presented $is , Absolutes of Quality, as t$e cornerstones of $is approac$ + + Qual Qualit ity y iis s de/ de/ne ned d as as c con onfo form rman ance ce to requ requir ireme ement nts% s% not not jus justt as as goo goodn dnes ess s - Qual Qualit ity y is ac$i ac$iev eved ed t$r t$roug$ oug$ prev preven enttion ion not not appr apprai aisa sall = = !$e !$e qual qualit ity y perf perfor orma manc nce e stan standa dard rd is ,>er ,>ero o defe defect cts, s, and and is is not not de/n de/ned ed by by A AQB QBs s #$i #$ic$ c$ allo# and build in acceptable levels of errors and ineCciencies Quali ualitty iis s mea meas sured ured by by tt$e $e pric price e of of no non4c n4confo onforrmanc mance e .rosby spread t$e #ord t$at% as in t$e title of $is most popular boo1% ,Quality is 0ree, (e believes t$at by setting up processes t$at are designed to prevent errors% by $aving people trained and motivated to operate t$em as designed% not only #ill quality improve% t$e costs of production #ill be reduced
Int"odu+tion *efore t$e concepts and ideas of !Q" #ere formali>ed% muc$ #or1 $ad ta1en place over t$e centuries to reac$ t$is stage !$is section c$arts t$e evolution% from inspection t$roug$ to t$e present day concepts of total quality 0rom inspection to total quality &uring t$e early days of manufacturing% an operativeDs #or1 #as inspected and a decision made #$et$er to accept or reject it As businesses became larger% so too did t$is role and full time inspection jobs #ere created Accompanying t$e creation of inspection functions% ot$er problems arose< "ore "ore tec$nic tec$nical al probl problems ems occurr occurred% ed% requir requiring ing specia speciali> li>ed ed s1ills s1ills%% often often not posses possessed sed by production #or1ers !$e inspectors lac1ed training Inspectors #ere ordered to accept defective goods% to increase output S1illed #or1ers #ere promoted into ot$er roles% leaving less s1illed #or1ers to perform t$e operational jobs% suc$ as manufacturing
Page / of 49 !$ese c$anges led to t$e birt$ of t$e separate inspection department #it$ a c$ief inspectorF% reporting to eit$er t$e person in c$arge of manufacturing or t$e #or1s manager 5it$ t$e creat creation ion of t$is t$is ne# depart departmen ment% t% t$ere t$ere came came ne# servic services es and iss issues ues%% eg% eg% stand standard ards% s% training% recording of data and t$e accuracy of measuring equipment It became clear t$at t$e responsibilities of t$e c$ief inspectorF #ere more t$an just product acceptance% and a need to address defect prevention emerged (ence t$e quality control department evolved% in c$arge of #$ic$ #as a quality control managerF% #it$ responsibility for t$e inspection services and quality control engineering In t$e +8-:Ds statistical t$eory began to be applied eGectively to quality control% and in +8- S$e#$art made t$e /rst s1etc$ of a modern control c$art (is #or1 #as later developed by &eming and t$e early #or1 of S$e#$art% &eming% &odge and Homig constitutes muc$ of #$at today comprises t$e t$eory of statistical process control 2SP.3 (o#ever% t$ere #as little use of t$ese tec$niques in manufacturing companies until t$e late +8:Ds At t$at time% 7apanDs industrial system #as virtually destroyed% and it $ad a reputation for c$eap imitation products and an illiterate #or1force !$e 7apanese recogni>ed t$ese problems and set about solving t$em #it$ t$e $elp of some notable quality gurus 7uran% &eming and 0eigenbaum In t$e early +89:Ds% quality management practices developed rapidly in 7apanese plants% and become a major t$eme in 7apanese management p$ilosop$y% suc$ t$at% by +8J:% quality contr control ol and manage management ment $ad become become a nation national al preocc preoccupa upatio tion n *y t$e late late +8J:Ds +8J:DsKear Kearly ly +8L:Ds 7apanDs imports into t$e ?SA and Europe increased signi/cantly% due to its c$eaper% $ig$er quality products% compared to t$e 5estern 5estern counterparts In +8J8 t$e /rst international conference on quality control% sponsored by 7apan% America and Europe% #as $eld in !o1yo In a paper given by 0eigenbaum% t$e term total qualityF #as used for t$e /rst time% and referred to #ider issues suc$ as planning% organi>ation and management respo responsi nsibil bility ity Is$i1 Is$i1a#a a#a gave gave a paper paper expla explaini ining ng $o# total total qualit quality y contr controlF olF in 7apan 7apan #as diGerent% it meaning company #ide quality controlF% and describing $o# all employees% from top management to t$e #or1ers% must study and participate in quality control .ompany #ide quality management #as common in 7apanese companies by t$e late +8L:Ds !$e quality revolution in t$e 5est #as slo# to follo#% and did not begin until t$e early +8M:Ds% #$en companies introduced introduced t$eir o#n quality quality programmes programmes and initiatives initiatives to counter counter t$e 7apanese success !otal !otal quality management 2!Q"3 became t$e centre of t$ese drives in most cases In a &epartment of !rade N Industry publication in +8M- it #as stated t$at *ritainDs #orld trade s$are #as declining and t$is #as $aving a dramatic eGect on t$e standard of living in t$e country country !$ere #as intense i ntense global competition and any countryDs economic performance and reputation reputation for quality quality #as made up of t$e reputations reputations and performances performances of its individual individual companies and productsKservices !$e *ritis$ Standard 2*S3 9L9: for quality systems $ad been publis$ed in +8L8 and in +8M= t$e Oational Quality .ampaign #as launc$ed% using *S9L9: as its main t$eme !$e aim #as to bring to t$e attention of industry t$e importance of quality for competitiveness and survival in t$e #orld mar1e mar1ett place place Since Since t$en t$en t$e Intern Internati ationa onall Standa Standard rdi>a i>atio tion n 6rgani 6rgani>at >ation ion 2IS63 2IS63 8::: 8::: $as become t$e internationally recogni>ed standard for quality management systems It comprises a number of standards t$at specify t$e requirements for t$e documentation% implementation and maintenance of a quality system !Q" is no# part of a muc$ #ider concept t$at addresses overall organi>ational performance and recogni>es t$e importance of processes !$ere is also extensive researc$ evidence t$at demonstrates t$e bene/ts from t$e approac$ As #e move into t$e -+st century% !Q" $as developed in many countries into $olistic frame#or1s% aimed at $elping organi>ations ac$ieve excel excellent lent perfor performan mance% ce% partic particula ularly rly in custom customer er and busines business s result results s In Europe Europe%% a #idely #idely adopted frame#or1 is t$e so4called *usiness ExcellenceF or ExcellenceF "odel% promoted by
Page 4 of 49 t$e European 0oundation for Quality "anagement 2E0Q"3% and in t$e ?@ by t$e *ritis$ Quality 0oundation 2*Q03F
-on+e't# and 0e+tive# of Quality Manageent !$e concept of quality as #e t$in1 of it no# /rst emerged out of t$e Industrial Hevolution Previously goods $ad been made from start to /nis$ by t$e same person or team of people% #it$ $andcrafting and t#ea1ing t$e product to meet 'quality criteria' "ass production broug$t $uge teams of people toget$er to #or1 on speci/c stages of production #$ere one person #ould not necessarily complete a product from start to /nis$ In t$e late +M::s pioneers suc$ as 0rederic1 5inslo# !aylor and (enry 0ord recogni>ed t$e limitations of t$e met$ods being used in mass production production at t$e time and t$e subsequent subsequent varying varying quality quality of output output !aylor !aylor establis$ed Quality &epartments to oversee t$e quality of production and rectifying of errors% and and 0ord ord emp$a emp$asi si>e >ed d stan standa dard rdi> i>at ation ion of desig design n and and comp compon onen entt stan standa dard rds s to ensur ensure e a standard standard product #as produced produced "anagement "anagement of quality quality #as t$e responsibi responsibility lity of t$e Quality department and #as implemented by Inspection of product output to 'catc$' defects Applic Applicati ation on of statis statistic tical al contr control ol came came later later as a resul resultt of 5orld orld 5ar produ producti ction on met$od met$ods s Quality management systems are t$e outgro#t$ of #or1 done by 5 Ed#ards &eming% a statistician% after #$om t$e &eming Pri>e for quality is named Quality% as a profession and t$e managerial process associated #it$ t$e quality function% #as introduced during t$e second4$alf of t$e -:t$ century% and $as evolved since t$en 6ver t$is period% fe# ot$er disciplines $ave seen see n as many c$anges as t$e quality profession !$e quality profession gre# from simple control% to engineering% to systems engineering Quality Quality control control activities activities #ere predominan predominantt in t$e +8:s% +89:s% and +8J:s !$e +8L:s #ere an era of quality engineering and t$e +88:s sa# quality systems as an emerging /eld Bi1e medi medici cine% ne% acco accoun unti ting ng%% and and engin engineer eerin ing% g% qual qualit ity y $as $as ac$i ac$iev eved ed stat status us as a recog ecogni ni>ed >ed profession
&e/nition Quality is customer satisfaction According to IS6 M:-% quality is t$e totality of features and c$aracteristics of a product or service t$at bear on its ability to satisfy stated or implied needsF *roadly Quality is; + 0itne itness ss for for us use e - rade = &egr &egree ee of of prefe prefere renc nce e &egr &egree ee of of exce excell llen ence ce 9 .onfor .onformit mity y of requir requiremen ements ts ?niversal process of managing quality + Qual Qualit ity y plan plannin ning g Establ Establis$ is$ qualit quality y goals% goals% identi identify fy custom customers ers%% dis discov cover er custom customer er needs% needs% develop develop produ product ct features% develop process features% establis$ process controls and transfer to operations
Page 2 of 49 - Quality .ontrol .$oose control subjects% c$oose units to measure% set goals% create a sensor% measure actual performance% interpret t$e diGerence and ta1e action on t$e diGerence = Quality improvement Prove t$e need% identify projects% organi>e project teams% diagnose t$e causes% provide remedies #$ic$ prove t$at t$e remedies are eGective% deal #it$ resistance% c$ange and control% and $old t$e gains
-on+e't# !o $ave a systematic approac$ to !Q"% it is necessary to develop a conceptual model enerally% a model is a sequence of steps arranged logically to guide t$e implementation of a process in order to ac$ieve t$e ultimate goal Hecogni>ed practices #ere included to develop a step by step guideline #$ic$ is universally applicable
!(E !Q"E "6&EB !$e !Q"E model advocates an integrated approac$ for managing quality in order to support t$e transition to systems management !$is is an ongoing process of continuous improvement t$at begins #$en t$e company commits itself to managing by quality 7apanese 9 S Practice 6perations "anagement *usiness Process Heengineering
Quality .ontrol .ircles 2Q..s3
Quality "anagement System
Quality "anagement
!otal Productive "aintenance !otal Quality "anagement 2!Q"3
1. &a'ane#e 23 ,"a+ti+e !$e 94S practice is a tec$nique used to establis$ and maintain quality environment in an organi>ation !$e 94S stands for /ve 7apanese #ords Seiri 2structurise3% Seiton 2systemi>e3% Seiso 2sanitise3% Sei1tsu 2standardi>e3% and S$itsu1e 2self4discipline3 !$e 94S practice is not only in improving t$eir p$ysical environment% but also t$eir t$in1ing processes !$e 94SF practice is a #ell4recogni>ed met$odology used by t$e 7apanese to improve t$e #or1 environment A #ell4recogni>ed met$odology to improve #or1 environment% t$e concept is fast catc$ing up in many #estern countries It $as no# evolved into a formal tec$nique% #$ic$ t$e 7apanese believe is useful not just for improving t$e p$ysical environment% but also for improving !otal Quality "anagement 2!Q"3 processes as #ell "any everyday problems could be solved t$roug$ adoption of t$is practice It is also seen t$at many companies $ave
Page 5 of 49 included a fe# aspects of t$e 94SF in t$eir routine processes #it$out being a#are of its existence as a formal tec$nique In fact% t$e 94SF can be applied to activities in all #al1s of life !$e term 94SF represents /ve #ords in 7apanese namely% Seiri% Seiton% Seiso% Sei1etsu and S$itsu1e !$e Englis$ equivalents for t$ese are Structurise% Systemi>e% Sanitise% Standardi>e and Self4&iscipline In ot$er #ords% t$ese 94SF terms mean 6rgani>ation% Oeatness% .leaning% Standardi>ation and &iscipline 6rgani>ation 2Seiri3 6rgani>ation is about sorting items 2li1e tools% parts and materials3% #$ic$ are essential for a job from t$ose t$at are not EGorts s$ould be made to select only t$e vital fe# and place t$em at convenient locations !$e essence of organi>ation is de/ned by< &iscard un#anted t$ings 6rgani>e t$e storage of parts% /les and ot$er items &eal #it$ t$e causes of defects% noise and lea1s !reat defects% lea1s and brea1ages Aim for t$e policy of one is bestF 444one4location /le% one4stop service for customers etc Oeatness 2Seiton3 • • • • •
Oeatness determines t$e rate at #$ic$ t$ings can be located or placed It eliminates t$e time #asted in locating and placing t$ings in an organisation In simple terms% it emp$asi>es on< • • • •
• • •
.learly designated names and places 0unctional placement of parts% tools and materials Quic1 2=:4second3 and easy retrieval of documents% parts and tools Oeat and easy4to4read notice boards 2#it$ special attention to removal of old and obsolete boards3 0iling standards and controls Zoning and placement mar1s Arrangement for /rst4in% /rst out
.leaning 2Sei1o3 In any organisation% cleaning involves delegating individual areas of responsibility Every individual s$ould be t$oroug$ly a#are of $is duties and responsibilities In doing t$is% it is important t$at all assignments be absolutely clear and t$at t$ere are no unde/ned% unallocated% or grey areas !$is can be done by< • • • •
Assigning individual cleaning responsibilities Adopting simple met$ods for cleaning and inspection Hegular cleaning activities .leaning even t$e less4noticed places
Standardi>ation 2Sei1etsu3 •
!$is emp$asi>es strict and continual maintenance of organisation% cleanliness and neatness It includes personal and environmental cleanliness It also implies standardi>ing t$e principles of 94SF practice *y maintaining standardi>ed conditions
Page 6 of 49 using visual management% employees are motivated to act f ast in any circumstance !$is necessitates< • • • • • •
.erti/cation of inspections using labels% tags% etc &angerF #arning mar1s and signs .olour coding of /les% pipes and containers Hesponsibility labels Preventing noise and vibrations &irectional mar1ings on pipes and gang#ays
&iscipline 2S$itsu1e3 &iscipline involves instilling t$e ability of doing t$ings as per t$e de/ned rules and regulations !$is $elps in building good $abits li1e framing and follo#ing rules &iscipline% an integral part of industrial safety emp$asi>es on< • • • • • •
0ollo#ing safety rules 5earing safety $elmets% gloves% s$oes #$ile at #or1 Executing individual responsibilities ood communication practices Practicing dealing #it$ emergencies .$ec1ing and follo#ing 94SF practices al#ays
"any successful organisations found t$at by developing a $ig$ quality #or1 environment and instilling discipline in t$e form of procedures and #or1 instructions% t$e employees devoted more energy and time to ac$ieve results !$e R94S practiceD $as no# become a $ig$ly appreciated tec$nique in business% #$ic$ not only $elps to impress t$e customers but also to establis$ eGective quality processes for good services and products
(. Bu#ine## ,"o+e## 7eenginee"ing *usiness process reengineering 2*PH3 is a management approac$ aiming at improvements by means of elevating eCciency and eGectiveness of t$e processes t$at exist #it$in and across organi>ations !$e 1ey to *PH is for organi>ations to loo1 at t$eir business processes from a ,clean slate, perspective and determine $o# t$ey can best construct t$ese processes to improve $o# t$ey conduct business *usiness process reengineering is also 1no#n as *PH% *usiness Process Hedesign% *usiness !ransformation% or *usiness Process .$ange "anagement &e/nition (ammer and .$ampy 2+88=3 de/ne *PH as%, t$e fundamental ret$in1ing and radical redesign of business processes to ac$ieve dramatic improvements in critical contemporary measures of performance% suc$ as cost% quality% service% and speed,
/. Quality -ont"ol -i"+le# !o involve employees in productivity and eCciency improvement activities% a team4based environment must be developed in #$ic$ t$ey can participate actively in improving t$eir process% product% or service performance 6ne suc$ employee participation program is quality control circles 2Q..s3 Q.4circle activities are usually directed to#ards improvements in t$e #or1place !$ey focus on suc$ areas as< .ost •
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• •
Safety Productivity
!$e Seven Quality .ontrol !ools Prof @arou Is$i1a#a% 1no#n as t$e fat$er of Q..s% developed seven Q. tools *ased on $is experience% $e identi/ed a set of tools% #$ic$ can be used by teams and individuals to interpret data and deriver maximum information from it !$ese seven eGective tools% #$ic$ can oGer any organi>ation t$e means to collect% present% and analy>e most of its data and problems !$ey are< • • • • • • •
Process )o#c$arts .$ec1 s$eet (istogram Pareto analysis .ause and eGect analysis Scatter diagram .ontrol c$arts
4. Quality Manageent y#te# Implementing a Quality "anagement System 2Q"S3 #it$in an organisation needs to be a decision by top management !$e objective of t$e quality system needs to be clearly de/ned so t$at t$e system can be eGective !$e design and implementation of a quality management system #ill vary depending on t$e type% si>e and products of t$e organisation Eac$ company #ill $ave its o#n objective% $o#ever most companiesD objective is to increase pro/tability A Quality "anagement System #ill assist by<
•
managing costs and ris1s increasing eGectiveness and productivity
•
identifying improvement opportunities
•
increasing customer satisfaction
•
A #ell managed quality system #ill $ave an impact on<
•
customer loyalty and repeat business mar1et s$are
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operational eCciencies
•
)exibility and ability to respond to mar1et opportunities
•
eGective and eCcient use of resources
•
cost reductions
•
competitive advantages
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participation and motivation of $uman resources
•
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•
industry reputation
•
control on all processes
!$e objectives of your Quality "anagement System s$ould mirror t$e above in some form Hequirements< •
•
• • •
•
IS6 8::+<-::: requires a quality system to be documented% tested% measured and assessed "anagement commitment is essential for t$e implementation and ongoing success of t$e Quality "anagement System Q"S objectives must be measurable and re)ect t$e overall company objectives !$e Q"S must be able to be managed properly% adequate resources must be allocated !$e system must be revie#ed regularly and measured for eGectiveness% adjustments must be made to re)ect major c$anges to t$e organisation and business practices !$e system must be practical and accessible to all employees #it$in t$e organisation
Accreditation< It is not essential to gain accreditation for a Quality "anagement System to #or1 eGectively It depends on t$e organisation if t$ey #is$ to gain accreditation% $o#ever t$e bene/ts s$ould be considered< our company #ill be recogni>ed as an organisation t$at is committed to providing quality products% improvement and customer satisfaction ou #ill gain respect t$roug$ t$e industry as a fully accredited quality company •
•
•
2. Total ,"odu+tive Maintenan+e !P" is a 7apanese idea t$at can be traced bac1 to +89+ #$en preventive maintenance #as introduced into 7apan from t$e ?SA Oippondenso% part of !oyota% #as t$e /rst company in 7apan to introduce plant #ide preventive maintenance in +8J: In preventive maintenance operators produced goods using mac$ines and t$e maintenance group #as dedicated to t$e #or1 of maintaining t$ose mac$ines (o#ever #it$ t$e $ig$ level of automation of Oippondenso maintenance became a problem as so many more maintenance personnel #ere no# required So t$e management decided t$at t$e routine maintenance of equipment #ould no# be carried out by t$e operators t$emselves 2!$is is Autonomous maintenance% one of t$e features of !P"3 !$e maintenance group t$en focused only on 'maintenance' #or1s for upgrades !$e maintenance group performed equipment modi/cation t$at #ould improve its reliability !$ese modi/cations #ere t$en made or incorporated into ne# equipment !$e #or1 of t$e maintenance group is t$en to ma1e c$anges t$at lead to maintenance prevention !$us preventive maintenance along #it$ "aintenance prevention and "aintainability Improvement #ere grouped as Productive maintenance !$e aim of productive maintenance #as to maximi>e plant and equipment eGectiveness to ac$ieve t$e optimum life cycle cost of production equipment Oippondenso already $ad quality circles #$ic$ involved t$e employees in c$anges !$erefore% no#% all employees too1 part in implementing Productive maintenance *ased on t$ese developments Oippondenso #as a#arded t$e distinguis$ed plant pri>e for developing and implementing !P"% by t$e 7apanese Institute of Plant Engineers 27IPE3 !$is Oippondenso of t$e !oyota group became t$e /rst company to obtain t$e !P" certi/cations
Page 1 of 49 !P" $as /ve goals< + "aximi>e equipment eGectiveness - &evelop a system of productive maintenance for t$e life of t$e equipment% = Involve all departments t$at plan% design% use% or maintain equipment in implementing !P" Actively involve all employees 9 Promote !P" t$roug$ motivational management !P" identi/es t$e +J types of #aste and t$en #or1s systematically to eliminate t$em by ma1ing improvements !P" $as M pillars of activity% eac$ being set to ac$ieve a >eroF target !$ese pillars are< + 0ocused improvement 2@obetsu4@ai>en3< for eliminating #aste - Autonomous maintenance 27is$u4(o>en3< in autonomous maintenance% t$e operator is t$e 1ey player It involves daily maintenance activities carried out by t$e operators t$emselves t$at prevent t$e deterioration of t$e equipment = Planned maintenance< for ac$ieving >ero brea1do#ns Education and training< for increasing productivity 9 Early equipmentKproduct management< to reduce #aste occurring implementation of a ne# mac$ine or t$e production of a ne# product
during
t$e
J Quality maintenance 2(ins$itsu4(o>en3< !$is is actually maintenance for qualityF It includes t$e most eGective quality tool of !P"< po1a4yo1eF% #$ic$ aims to ac$ieve >ero loss by ta1ing necessary measures to prevent loss L Safety% $ygiene% and environment< for ac$ieving >ero #or14related accidents and for protecting t$e environment M 6Cce !P"< for involvement of all parties to !P" since oCce processes can be improved in a similar manner as #ell !P" Success "easurement 4 A set of performance metrics #$ic$ is considered to /t #ell in a BeanK!P" environment is 6verall Equipment EGectiveness% or 6EE
5. Total Quality Manageent !otal Quality "anagement 2!Q"3 is a business management strategy aimed at embedding a#areness of quality in all organi>ational processes !Q" $as been #idely used in manufacturing% education% call centers% government% and service industries% as #ell as OASA space and science programs !Q" is composed of t$ree paradigms< • •
!otal< Involving t$e entire organi>ation% supply c$ain% andKor product life cycle Quality< 5it$ its usual de/nitions% #it$ all its complexities
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"anagement< !$e system of managing #it$ steps li1e Plan% 6rgani>e% .ontrol% Bead% StaG % provisioning and organi>ing
As de/ned by t$e International 6rgani>ation for Standardi>ation 2IS63< ,!Q" is a management approac$ for an organi>ation% centered on quality% based on t$e participation of all its members and aiming at long4term success t$roug$ customer satisfaction% and bene/ts to all members of t$e organi>ation and to society, IS6 M:-<+88 6ne major aim is to reduce variation from every process so t$at greater consistency of eGort is obtained In 7apan% !Q" comprises four process steps% namely< + Kaizen 0ocuses on ,.ontinuous Process Improvement,% to ma1e processes visible% repeatable and measurable - Atarimae Hinshitsu !$e idea t$at ,t$ings #ill #or1 as t$ey are supposed to, 2for example% a pen #ill #rite3 = Kansei Examining t$e #ay t$e user applies t$e product leads to improvement in t$e product itself Miryokuteki Hinshitsu !$e idea t$at ,t$ings s$ould $ave an aest$etic quality, 2for example% a pen #ill #rite in a #ay t$at is pleasing to t$e #riter3 !Q" requires t$at t$e company maintain t$is quality standard in all aspects of its business !$is requires ensuring t$at t$ings are done rig$t t$e /rst time and t$at defects and #aste are eliminated from operations &e/nition !otal Quality "anagement is t$e organi>ation #ide management of quality "anagement consists of planning% organi>ing% directing% control% and assurance !otal quality is called total because it consists of t#o qualities< quality of return to satisfy t$e needs of t$e s$are$olders% and quality of products
e"o %efe+t# ,Zero &efects, is Step L of ,P$ilip .rosby's + Step Quality Improvement Process, Alt$oug$ applicable to any type of enterprise% it $as been primarily adopted #it$in industry supply c$ains #$erever large volumes of components are being purc$ased 2common items suc$ as nuts and bolts are good examples3 !$e principles of t$e met$odology are four4fold<
1. Quality i# +onfo"an+e to "e;ui"eent# Every product or service $as a requirement< a description of #$at t$e customer needs 5$en a particular product meets t$at requirement% it $as ac$ieved quality% provided t$at t$e requirement accurately describes #$at t$e enterprise and t$e customer actually need !$is tec$nical sense s$ould not be confused #it$ more common usages t$at indicate #eig$t or goodness or precious materials or some absolute ideali>ed standard In common parlance% an
Page 1( of 49 inexpensive disposable pen is a lo#er4quality item t$an a gold4plated fountain pen In t$e tec$nical sense of Zero &efects% t$e inexpensive disposable pen is a quality product if it meets requirements< it #rites% does not s1ip nor clog under normal use% and lasts t$e time speci/ed
(. %efe+t '"evention i# '"efe"ale to ;uality in#'e+tion and +o""e+tion !$e second principle is based on t$e observation t$at it is nearly al#ays less troublesome% more certain and less expensive to prevent defects t$an to discover and correct t$em
/. e"o %efe+t# i# t!e ;uality #tanda"d !$e t$ird is based on t$e normative nature of requirements< if a requirement expresses #$at is genuinely needed% t$en any unit t$at does not meet requirements #ill not satisfy t$e need and is no good If units t$at do not meet requirements actually do satisfy t$e need% t$en t$e requirement s$ould be c$anged to re)ect reality
4. Quality i# ea#u"ed in oneta"y te"# < t!e ,"i+e of Non+onfo"an+e =,0N-> !$e fourt$ principle is t$e 1ey to t$e met$odology P$il .rosby believes t$at every defect represents a cost% #$ic$ is often $idden !$ese costs include inspection time% re#or1% #asted material and labor% lost revenue and t$e cost of customer dissatisfaction 5$en properly identi/ed and accounted for% t$e magnitude of t$ese costs can be made apparent% #$ic$ $as t$ree advantages 0irst% it provides a cost4justi/cation for steps to improve quality !$e title of t$e boo1% ,Quality is free%, expresses t$e belief t$at improvements in quality #ill return savings more t$an equal to t$e costs Second% it provides a #ay to measure progress% #$ic$ is essential to maintaining management commitment and to re#arding employees !$ird% by ma1ing t$e goal measurable% actions can be made concrete and decisions can be made on t$e basis of relative return
A++e'tan+e a'ling Acceptance sampling is an important /eld of statistical quality control t$at #as populari>ed by &odge and Homig and originally applied by t$e ?S military to t$e testing of bullets during 5orld 5ar II If every bullet #as tested in advance% no bullets #ould be left to s$ip If% on t$e ot$er $and% none #ere tested% malfunctions mig$t occur in t$e /eld of battle% #it$ potentially disastrous results Defnition o Lot Acceptance Sampling &odge reasoned t$at a sample s$ould be pic1ed at random from t$e lot% and on t$e basis of information t$at #as yielded by t$e sample% a decision s$ould be made regarding t$e disposition of t$e lot In general% t$e decision is eit$er to accept or reject t$e lot !$is process is called Lot Acceptance Sampling or just Acceptance Sampling Attributes !i"e"# $eect counting% &ill be assume$ Acceptance sampling is ,t$e middle of t$e road, approac$ bet#een no inspection and +::T inspection !$ere are t#o major classi/cations of acceptance plans< by attributes 2,go% no4go,3 and by variables !$e attribute case is t$e most common for acceptance sampling% and #ill be assumed for t$e rest of t$is section
Page 1/ of 49 'mportant point A point to remember is t$at t$e main purpose of acceptance sampling is to decide #$et$er or not t$e lot is li1ely to be acceptable% not to estimate t$e quality of t$e lot Scenarios lea$ing to acceptance sampling Acceptance sampling is employed #$en one or several of t$e follo#ing $old< !esting is destructive !$e cost of +::T inspection is very $ig$ • •
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+::T inspection ta1es too long
Acceptance (uality )ontrol an$ Acceptance Sampling It #as pointed out by (arold &odge in +8J8 t$at Acceptance Quality .ontrol is not t$e same as Acceptance Sampling !$e latter depends on speci/c sampling plans% #$ic$ #$en implemented indicate t$e conditions for acceptance or rejection of t$e immediate lot t$at is being inspected !$e former may be implemented in t$e form of an Acceptance .ontrol .$art !$e control limits for t$e Acceptance .ontrol .$art are computed using t$e speci/cation li mits and t$e standard deviation of #$at is being monitored )ontrol o pro$uct quality using acceptance control charts According to t$e IS6 standard on acceptance control c$arts 2IS6 L8JJ% +88=3% an acceptance control c$art combines consideration of control implications #it$ elements of acceptance sampling It is an appropriate tool for $elping to ma1e decisions #it$ respect to process acceptance !$e diGerence bet#een acceptance sampling approac$es and acceptance control c$arts is t$e emp$asis on process acceptability rat$er t$an on product disposition decisions
Quality in#'e+tion It is t$e act of monitoring or observing% !usually involving sampling an$ relate$ sampling plans%% a process% procedure% or service to insure compliance #it$ t$e operational de/nition and to insure t$at all customer requirements or internal prerequisites are meet !$ese activities may include t$e collecting data using strati/ed sampling from t$e item being inspected ?sually execute by t$e QA% !quality assurance%% departments% but not al#ays !ypically employs t$e use of a control c$arts using collected data to evaluate t$e process using statistical process control It may also require gauge HNH to guarantee t$at results are consistent and reliable bet#een t$e measurement device and t$e person doing t$e inspection Quality Inspections can use discreteKattribute data or variable data in t$e measurements
Quality A##u"an+e Quality assurance is t$e process of verifying or determining #$et$er products or services meet or exceed customer expectations Quality assurance is a process4driven approac$ #it$ speci/c steps to $elp de/ne and attain goals !$is process considers design% development% production% and service !$e most popular tool used to determine quality assurance is t$e S$e#$art .ycle% developed by &r 5 Ed#ards &eming !$is cycle for quality assurance consists of four steps< *lan% Do% )heck % and Act !$ese steps are commonly abbreviated as P&.A
Page 14 of 49 !$e four quality assurance steps #it$in t$e P&.A model stand for< •
,lan: Establis$ objectives and processes required to deliver t$e desired results
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%o: Implement t$e process developed
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-!e+*: "onitor and evaluate t$e implemented process by testing t$e results against t$e predetermined objectives A+t: Apply actions necessary for improvement if t$e results require c$anges
P&.A is an eGective met$od for monitoring quality assurance because it analy>es existing conditions and met$ods used to provide t$e product or service customers !$e goal is to ensure t$at excellence is in$erent in every component of t$e process Quality assurance also $elps determine #$et$er t$e steps used to provide t$e product or services are appropriate for t$e time and conditions In addition% if t$e P&.A cycle is repeated t$roug$out t$e lifetime of t$e product or service% it $elps improve internal company eCciency Quality assurance demands a degree of detail in order to be fully implemented at every step *lanning% for example% could include investigation into t$e quality of t$e ra# materials used in manufacturing% t$e actual assembly% or t$e inspection processes used !$e )hecking step could include customer feedbac1% surveys% or ot$er mar1eting ve$icles to determine if customer needs are being exceeded and #$y t$ey are or are not Acting could mean a total revision in t$e manufacturing process in order to correct a tec$nical or cosmetic )a# .ompetition to provide speciali>ed products and services results in brea1t$roug$s as #ell as long4term gro#t$ and c$ange Quality assurance veri/es t$at any customer oGering% regardless if it is ne# or evolved is produced and oGered #it$ t$e best possible materials% in t$e most compre$ensive #ay% #it$ t$e $ig$est standards !$e goal to exceed customer expectations in a measurable and accountable process is provided by quality assurance
Quality -i"+le# A Quality .ircle is a volunteer group composed of #or1ers 2or even students3 #$o meet to discuss #or1place improvement% and ma1e presentations to management #it$ t$eir ideas% especially relating to quality of output in order to improve t$e performance of t$e organi>ation% and motivate and enric$ t$e #or1 of employees !ypical topics are improving occupational safety and $ealt$% improving product design% and improvement in manufacturing process !$e ideal si>e of a quality circle is from eig$t to ten members Quality circles $ave t$e advantage of continuity; t$e circle remains intact from project to project -on+e't and tool# of i? iga -on+e't Six Sigma is a business management strategy% originally developed by "otorola% #$ic$ today enjoys #ide4spread application in many sectors of industry Six Sigma see1s to identify and remove t$e causes of defects and errors in manufacturing and business processes It uses a set of quality management met$ods% including statistical met$ods% and creates a special infrastructure of people #it$in t$e organi>ation 2,*lac1 *elts, etc3 #$o are experts in t$ese met$ods Eac$ Six Sigma project carried out #it$in an organi>ation follo#s a de/ned sequence of steps and $as quanti/ed /nancial targets 2cost reduction or pro/t increase3
Page 12 of 49 Six Sigma #as originally developed as a set of practices designed to improve manufacturing processes and eliminate defects% but its application #as subsequently extended to ot$er types of business processes as #ell In Six Sigma% a defect is de/ned as anyt$ing t$at could lead to customer dissatisfaction !$e particulars of t$e met$odology #ere /rst formulated by *ill Smit$ at "otorola in +8MJ Six Sigma #as $eavily inspired by six preceding decades of quality improvement met$odologies suc$ as quality control% !Q"% and Zero &efects% based on t$e #or1 of pioneers suc$ as S$e#$art% &eming% 7uran% Is$i1a#a% !aguc$i and ot$ers Bi1e its predecessors% Six Sigma asserts t$at •
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.ontinuous eGorts to ac$ieve stable and predictable process results 2ie reduce process variation3 are of vital importance to business success "anufacturing and business processes $ave c$aracteristics t$at can be measured% analy>ed% improved and controlled Ac$ieving sustained quality improvement requires commitment from t$e entire organi>ation% particularly from top4level management
0eatures t$at set Six Sigma apart from previous quality improvement initiatives include •
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A clear focus on ac$ieving measurable and quanti/able /nancial returns from any Six Sigma project An increased emp$asis on strong and passionate management leaders$ip and support A special infrastructure of ,.$ampions%, ,"aster *lac1 *elts%, ,*lac1 *elts%, etc to lead and implement t$e Six Sigma approac$ A clear commitment to ma1ing decisions on t$e basis of veri/able data% rat$er t$an assumptions and guess#or1
!$e term ,Six Sigma, is derived from a /eld of statistics 1no#n as process capability studies 6riginally% it referred to t$e ability of manufacturing processes to produce a very $ig$ proportion of output #it$in speci/cation Processes t$at operate #it$ ,six sigma quality, over t$e s$ort term are assumed to produce long4term defect levels belo# = defects per million opportunities 2&P"63 Six Sigma's implicit goal is to improve all processes to t$at level of quality or better Six Sigma is a registered service mar1 and trademar1 of "otorola% Inc "otorola $as reported over ?SU+L billion in savings from Six Sigma as of -::J 6t$er early adopters of Six Sigma #$o ac$ieved #ell4publici>ed success include (oney#ell International 2previously 1no#n as Allied Signal3 and eneral Electric% #$ere t$e met$od #as introduced by 7ac1 5elc$VMW *y t$e late +88:s% about t#o4t$irds of t$e 0ortune 9:: organi>ations $ad begun Six Sigma initiatives #it$ t$e aim of reducing costs and improving qualityV8W In recent years% Six Sigma $as sometimes been combined #it$ lean manufacturing to yield a met$odology named Bean Six Sigma
Page 15 of 49 Six Sigma $as t#o 1ey met$odologies< &"AI. and &"A&X bot$ inspired by &eming's Plan4&o4 .$ec14Act .ycle &"AI. is used to improve an existing business process; &"A&X is used to create ne# product or process designs
%MAI !$e basic met$odology consists of t$e follo#ing /ve steps< •
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Defne process improvement goals t$at are consistent #it$ customer demands and t$e enterprise strategy Measure 1ey aspects of t$e current process and collect relevant data Analyze t$e data to verify cause4and4eGect relations$ips &etermine #$at t$e relations$ips are% and attempt to ensure t$at all factors $ave been considered Improve or optimi>e t$e process based upon data analysis using tec$niques li1e &esign of Experiments Control to ensure t$at any deviations from target are corrected before t$ey result in defects Set up pilot runs to establis$ process capability% move on to production% set up control mec$anisms and continuously monitor t$e process
%MA%@ !$e basic met$odology consists of t$e follo#ing /ve steps< •
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Defne design goals t$at are consistent #it$ customer demands and t$e enterprise strategy Measure and identify .!Qs 2c$aracteristics t$at are -ritical to Quality3% product capabilities% production process capability% and ris1s Analyze to develop and design alternatives% create a $ig$4level design and evaluate design capability to select t$e best design Design details% optimi>e t$e design% and plan for design veri/cation !$is p$ase may require simulations V eriy t$e design% set up pilot runs% implement t$e production process and $and it over to t$e process o#ners
&"A&X is also 1no#n as &0SS% an abbreviation of ,%esign fo" ix igma,V8W
Implementation roles 6ne of t$e 1ey innovations of Six Sigma is t$e professionali>ing of quality management functions Prior to Six Sigma% quality management in practice #as largely relegated to t$e production )oor and to statisticians in a separate quality department Six Sigma borro#s martial arts ran1ing terminology to de/ne a $ierarc$y 2and career pat$3 t$at cuts across all business functions and a promotion pat$ straig$t into t$e executive suite
Page 16 of 49 Six Sigma identi/es several 1ey roles for its successful implementation +,ecutive Lea$ership includes t$e .E6 and ot$er members of top management !$ey are responsible for setting up a vision for Six Sigma implementation !$ey also empo#er t$e ot$er role $olders #it$ t$e freedom and resources to explore ne# ideas for brea1t$roug$ improvements •
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)hampions are responsible for Six Sigma implementation across t$e organi>ation in an integrated manner !$e Executive Beaders$ip dra#s t$em from upper management .$ampions also act as mentors to *lac1 *elts Master -lack -elts% identi/ed by c$ampions% act as in4$ouse coac$es on Six Sigma !$ey devote +::T of t$eir time to Six Sigma !$ey assist c$ampions and guide *lac1 *elts and reen *elts Apart from statistical tas1s% t$eir time is spent on ensuring consistent application of Six Sigma across various functions and departments -lack -elts operate under "aster *lac1 *elts to apply Six Sigma met$odology to speci/c projects !$ey devote +::T of t$eir time to Six Sigma !$ey primarily focus on Six Sigma project execution% #$ereas .$ampions and "aster *lac1 *elts focus on identifying projectsKfunctions for Six Sigma .reen -elts are t$e employees #$o ta1e up Six Sigma implementation along #it$ t$eir ot$er job responsibilities !$ey operate under t$e guidance of *lac1 *elts
Tool# of i? iga
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ACnity &iagram *rainstorming
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.alculators
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.ause N EGect K Is$i1a#a K 0is$bone
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.$arters
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.ontrol .$arts
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.ontract "anagement Soft#are
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.reativity K 6ut of t$e *ox !$in1ing
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&esign 6f Experiment
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&ocument .ontrol
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0lo# .$art K 0lo# .$arting
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0"EA K His1 Assessment
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lossaries
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(istogram
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@ano Analysis
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6rgani>ing &ata
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6nline Statistics !extboo1s
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Pareto
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Po1a o1e 2"ista1e Proo/ng3
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Process "ap K Process "apping
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Project .$arters
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Quality 0unction &eployment K (ouse of Quality
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Scatter &iagram K Plot
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SIP6. &iagram
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Six Sigma Heport !emplates
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Soft#are
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Support and Hestraint
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Surveys
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!$in1ing 6ut 6f !$e *ox
EN% 0 M0%ULE 1 Module ( Statistical Quality .ontrol; basic concepts; product control; process control; variations in quality; control c$arts; types of control c$arts mean c$arts% range c$arts% P4c$arts% np c$art% . c$arts; application of control c$arts
tati#ti+al Quality -ont"ol Ba#i+ -on+e't# Statistical Quality .ontrol or Statistical Process .ontrol 2SP.3 is an eGective met$od of monitoring a process t$roug$ t$e use of control c$arts .ontrol c$arts enable t$e use of objective criteria for distinguis$ing bac1ground variation from events of signi/cance based on statistical tec$niques "uc$ of its po#er lies in t$e ability to monitor bot$ process center and its variation about t$at center *y collecting data from samples at various points #it$in t$e process% variations in t$e process t$at may aGect t$e quality of t$e end product or service can be detected and corrected% t$us reducing #aste as #ell as t$e li1eli$ood t$at problems #ill be passed on to t$e customer 5it$ its emp$asis on early detection and prevention of problems% SP. $as a distinct advantage over quality met$ods% suc$ as inspection% t$at apply resources to detecting and correcting problems in t$e end product or service In addition to reducing #aste% SP. can lead to a reduction in t$e time required to produce t$e product or service from end to end !$is is partially due to a diminis$ed li1eli$ood t$at t$e /nal product #ill $ave to be re#or1ed% but it may also result from using SP. data to identify bottlenec1s% #ait times% and ot$er sources of delays #it$in t$e process Process cycle time reductions coupled #it$ improvements in yield $ave made SP. a valuable tool from bot$ a cost reduction and a customer satisfaction standpoint Statistical Process .ontrol #as pioneered by 5alter A S$e#$art in t$e early +8-:s 5 Ed#ards &eming later applied SP. met$ods in t$e ?nited States during 5orld 5ar II% t$ereby
Page 19 of 49 successfully improving quality in t$e manufacture of munitions and ot$er strategically important products &eming #as also instrumental in introducing SP. met$ods to 7apanese industry after t$e #ar $ad ended S$e#$art created t$e basis for t$e control c$art and t$e concept of a state of statistical control by carefully designed experiments 5$ile &r S$e#$art dre# from pure mat$ematical statistical t$eories% $e understood t$at data from p$ysical processes seldom produces a ,normal distribution curve, 2a aussian distribution% also commonly referred to as a ,bell curve,3 (e discovered t$at observed variation in manufacturing data did not al#ays be$ave t$e same #ay as data in nature 2for example% *ro#nian motion of particles3 &r S$e#$art concluded t$at #$ile every process displays variation% some processes display controlled variation t$at is natural to t$e process 2common causes of variation3% #$ile ot$ers display uncontrolled variation t$at is not present in t$e process causal system at all times 2special causes of variation3
,"odu+t -ont"ol ,"o+e## -ont"ol Process control is a statistics and engineering discipline t$at deals #it$ arc$itectures% mec$anisms% and algorit$ms for controlling t$e output of a speci/c process 0or example% $eating up t$e temperature in a room is a process t$at $as t$e speci/c% desired outcome to reac$ and maintain a de/ned temperature 2eg -:Y.3% 1ept constant over time (ere% t$e temperature is t$e controlled variable At t$e same time% it is t$e input variable since it is measured by a t$ermometer and used to decide #$et$er to $eat or not to $eat !$e desired temperature 2-:Y.3 is t$e set point !$e state of t$e $eater 2eg t$e setting of t$e valve allo#ing $ot #ater to )o# t$roug$ it3 is called t$e manipulated variable since it is subject to control actions A commonly used control device called a programmable logic controller% or a PB. is used to read a set of digital and analog inputs% apply a set of logic statements% and generate a set of analog and digital outputs ?sing t$e example in t$e previous paragrap$% t$e room temperature #ould be an input to t$e PB. !$e logical statements #ould compare t$e set point to t$e input temperature and determine #$et$er more or less $eating #as necessary to 1eep t$e temperature constant A PB. output #ould t$en eit$er open or close t$e $ot #ater valve% an incremental amount% depending on #$et$er more or less $ot #ater #as needed Barger more complex systems can be controlled by a &istributed .ontrol System 2&.S3 or S.A&A system In practice% process control systems can be c$aracteri>ed as one or more of t$e follo#ing forms< •
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&iscrete 0ound in many manufacturing% motion and pac1aging applications Hobotic assembly% suc$ as t$at found in automotive production% can be c$aracteri>ed as discrete process control "ost discrete manufacturing involves t$e production of discrete pieces of product% suc$ as metal stamping *atc$ Some applications require t$at speci/c quantities of ra# materials be combined in speci/c #ays for particular durations to produce an intermediate or end result 6ne example is t$e production of ad$esives and glues% #$ic$ normally require t$e mixing of
Page ( of 49 ra# materials in a $eated vessel for a period of time to form a quantity of end product 6t$er important examples are t$e production of food% beverages and medicine *atc$ processes are generally used to produce a relatively lo# to intermediate quantity of product per year 2a fe# pounds to millions of pounds3 •
.ontinuous 6ften% a p$ysical system is represented t$oug$ variables t$ose are smoot$ and uninterrupted in time !$e control of t$e #ater temperature in a $eating jac1et% for example% is an example of continuous process control Some important continuous processes are t$e production of fuels% c$emicals and plastics .ontinuous processes% in manufacturing% are used to produce very large quantities of product per year 2millions to billions of pounds3
Applications $aving elements of discrete% batc$ and continuous process control are often called hybri$ applications
@a"iation# in Quality -ont"ol -!a"t# In statistical process control% t$e +ont"ol +!a"t% also 1no#n as t$e ' !e$!a"t +!a"t or ''"o+e##3e!avio" +!a"t is a tool used to determine #$et$er a manufacturing or business process is in a state of statistical control or not If t$e c$art indicates t$at t$e process is currently under control t$en it can be used #it$ con/dence to predict t$e future performance of t$e process If t$e c$art indicates t$at t$e process being monitored is not in control% t$e pattern it reveals can $elp determine t$e source of variation to be eliminated to bring t$e process bac1 into control A control c$art is a speci/c 1ind of run c$art t$at allo#s signi/cant c$ange to be diGerentiated from t$e natural variability of t$e process !$is is 1ey to eGective process control and improvement !$e control c$art is one of t$e seven basic tools of quality control 2along #it$ t$e $istogram% Pareto c$art% c$ec1 s$eet% cause4and4eGect diagram% )o#c$art% and scatter diagram3 A control c$art consists of t$e follo#ing< •
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Points representing measurements of a quality c$aracteristic in samples ta1en from t$e process at diGerent times Vt$e dataW A centre line% dra#n at t$e process c$aracteristic mean #$ic$ is calculated from t$e data ?pper and lo#er control limits 2sometimes called ,natural process limits,3 t$at indicate t$e t$res$old at #$ic$ t$e process output is considered statistically 'unli1ely'
!$e c$art may contain ot$er optional features% including< •
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?pper and lo#er #arning limits% dra#n as separate lines% typically t#o standard deviations above and belo# t$e centre line &ivision into >ones% #it$ t$e addition of rules governing frequencies of observations in eac$ >one Annotation #it$ events of interest% as determined by t$e Quality Engineer in c$arge of t$e process's quality
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If t$e process is in control% all points #ill plot #it$in t$e control limits Any observations outside t$e limits% or systematic patterns #it$in% suggest t$e introduction of a ne# 2and li1ely unanticipated3 source of variation% 1no#n as a special4cause variation Since increased variation means increased quality costs% a control c$art ,signaling, t$e presence of a special4cause requires immediate investigation !$e control limits tell you about process be$avior and $ave no intrinsic relations$ip to any speci/cation targets or engineering tolerance In practice% t$e long4term process mean 2and $ence t$e centre line3 may not coincide exactly #it$ t$e ideal value 2or target3 of t$e quality c$aracteristic because equipment simply can't deliver t$e process c$aracteristic at t$e desired level or because it's too costly to put t$e process on target .ontrol c$arts omit speci/cation limits or targets because of t$e tendency of t$ose involved #it$ t$e process 2eg% mac$ine operators3 to focus on performing to speci/cation #$en in fact t$e least4cost course of action is to 1eep process variation as lo# as possible Attempting to ma1e a process #$ose natural centre is not t$e same as t$e target increases process variability and costs signi/cantly and is t$e cause of muc$ ineCciency in operations Process capability studies do examine t$e relations$ip bet#een t$e natural process limits 2t$e control limits3 and speci/cations% $o#ever !$e purpose of control c$arts is to allo# simple detection of events t$at are indicative of actual process c$ange !$is can be diCcult #$ere t$e process c$aracteristic is continuously varying; t$e control c$art provides statistically objective criteria of c$ange 5$en c$ange is detected t$en if t$e c$ange is good its cause s$ould be identi/ed and possibly become t$e ne# #ay of #or1ing% #$ere t$e c$ange is bad t$en its cause s$ould be identi/ed and eliminated !$e purpose in adding #arning limits or subdividing t$e control c$art into >ones is to provide early noti/cation if somet$ing is amiss Instead of immediately launc$ing a process improvement eGort to determine #$et$er special causes are present% t$e Quality Engineer may temporarily increase t$e rate at #$ic$ samples are ta1en from t$e process output until it's clear t$at t$e process is truly in control Oote t$at #it$ t$ree sigma limits% one expects to be signaled approximately once out of every =L: points on average% just due to common4causes
!$e control c$art is intended as a $euristic &eming insisted t$at it is not a $ypot$esis test and is not motivated by t$e Oeyman4Pearson lemma (e contended t$at t$e disjoint nature of population and sampling frame in most industrial situations compromised t$e use of conventional statistical tec$niques &eming's intention #as to see1 insig$ts into t$e cause system of a process """un$er a &i$e range o unkno&able circumstances# uture an$ past"""" (e claimed t$at% under suc$ conditions% /0sigma limits provided """ a rational an$ economic gui$e to minimum economic loss""" from t$e t#o errors<
1. Ascribe a variation or a mistake to a special cause &hen in act the cause belongs to the system !common cause%" 2Also 1no#n as a !ype I error3 (. Ascribe a variation or a mistake to the system !common causes% &hen in act the cause &as special" 2Also 1no#n as a !ype II error3 Ty'e# of -ont"ol +!a"t# Mean -!a"t In t$is c$art t$e sample means are plotted in order to control t$e mean value of a variable
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,3+!a"t A p4c$art is an attributes control c$art used #it$ data collected in subgroups of varying si>es *ecause t$e subgroup si>e can vary% it s$o#s a proportion on nonconforming items rat$er t$an t$e actual count P4c$arts s$o# $o# t$e process c$anges over time !$e process attribute 2or c$aracteristic3 is al#ays described in a yesKno% passKfail% goKno go form 0or example% use a p4c$art to plot t$e proportion of incomplete insurance claim forms received #ee1ly !$e subgroup #ould vary% depending on t$e total number of claims eac$ #ee1 P4 c$arts are used to determine if t$e process is stable and predictable% as #ell as to monitor t$e eGects of process improvement t$eories P4c$arts can be created using soft#are programs li1e S()pack and )HA12 runner ?se p4c$arts #$en you can ans#er yes to t$ese questions<
1. &o you need to assess system stability (. Is t$e data a count of nonconforming items per subgroup /. .an t$e counts be converted to proportions 4. Are t$ere only t#o outcomes to any given c$ec1 2. Is t$e time order of subgroups preserved n' +!a"t !$e use of attribute control c$arts arises #$en items are compared #it$ some standard and t$en are classi/ed as to #$et$er t$ey meet t$at standard or not !$e Op control c$art is used to determine if t$e rate of nonconforming product is stable% and #ill detect #$en a deviation from stability $as occurred !$ere are t$ose #$o argue t$at t$ere s$ould only be an ?pper .ontrol Bimit 2?.B3% and O6! a Bo#er .ontrol Bimit 2B.B3 since rates of nonconforming product outside t$e B.B is actually a good t$ing (o#ever% if #e treat t$e B.B violations as anot$er searc$ for an assignable cause% #e could learn #$ere lo#er nonconformity rates lie and per$aps eliminate t$em furt$er !$ere is a diGerence bet#een a ,P .$art, and an ,Op .$art, A P c$art is one t$at s$o#s t$e fraction defective 2p3% #$ereas t$e Op c$art s$o#s t$e O?"*EH of defectives 2Op3 !$ey are practically t$e same t$ing #it$ t$e exception t$at an Op c$art is used #$en t$e si>e of t$e subgroup 2O3 is constant% and a P c$art is used #$en it is O6! constant Steps in .onstructing an np .$art S!EP [+ 4 .ollect t$e data recording t$e number inspected 2O3 and t$e number of defective products 2Op3 &ivide t$e data into subgroups ?sually% t$e data is grouped by date or by lot numbers !$e subgroup si>e 2O3 s$ould be over 9:% and it is strongly recommended you stic1 #it$ t$e constant sample si>e of +:: for subgroups S!EP [- 4 Hecord t$e number of defectives on a c$art or spreads$eet% along #it$ t$e subgroup si>e •
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S!EP [= 4 Hecord t$e number of defectives for eac$ subgroup and record on t$e data s$eet !$en total bot$ columns% from our example above you can see #e $ad -Ldefects% and -9 groups of +:: \ -9:: total parts
Page (/ of 49 ?se t$e follo#ing formula to determine your Pbar% 2P3 and to determine t$e percentage defective<
OP \ number of defectives !otal Parts Inspected
\
Op O
!o indicate as a percentage% multiply your ans#er by +:: S!EP [ 4 .ompute t$e .ontrol Bimits using t$e formula belo#< •
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S!EP [9 4 &ra# in t$e .ontrol Bimits and plot t$e number of defective parts listed in our c$art above .onnect t$e dots and observe t$e c$art to determine if t$ere are any points out of t$e control limits
So t$at you can fully understand #$at t$e grap$ loo1s li1e as plotted% I $ave attac$ed t$e actual grap$ of t$is exercise for you% using t$e data from t$e c$art above Ootice t$at t$ere is one point t$at is actually over t$e ?pper .ontrol Bimit and t$us indicates a point ,out4of4 control,
- +!a"t P?HP6SE enerates a 2Poisson3 counts control c$art !$e purpose of a c c$art is to determine t$e stability of ,counted, data #$en t$e opportunity is large compared to t$e actual number of defects 2eg injuries per mont$ or falls per mont$3 &ES.HIP!I6O A . c$art is a data analysis tec$nique for determining if a measurement process $as gone out of statistical control !$e . c$art is sensitive to c$anges in t$e number of defective items in t$e measurement process !$e .F in . .6O!H6B .(AH! stands for countsF as in defectives per lot !$e . control c$art consists of< Xertical axis \ t$e number defective for eac$ sub4group; (ori>ontal axis \ sub4group designation !$e . c$art assumes t$at eac$ sub4group $as an equal sample si>e 2t$is sample si>e does not need to be speci/ed3 A sub4group is • •
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!ypically a time sequence 2eg% t$e number of defectives in a daily production run #$ere eac$ day is considered a sub4group3 If t$e !imes are equally spaced% t$e $ori>ontal axis variable can be generated as a sequence 2eg% BE! \ SEQ?EO.E + O #$ere O is t$e Oumber of sub4groups3
In addition% $ori>ontal lines are dra#n at t$e mean number of defectives and at t$e upper and lo#er control limits O6!ES !$e distribution of t$e number of defective items is assumed to be Poisson !$is assumption is t$e basis for t$e calculating t$e upper and lo#er control limits !$e ? .6O!H6B .(AH! is similar to t$e . .6O!H6B c$art !$e distinction is t$at t$e . .6O!H6B .(AH! is used #$en t$e material being measured is constant in area and t$e sub4groups $ave equal si>e !$e ? .6O!H6B .(AH! is used #$en eit$er of t$ese assumptions is not valid !$e attributes of t$e traces t$at ma1e up t$e . control c$art are controlled by t$e standard BIOES% .(AHA.!EHS% SPI@ES% and *AH commands !race + is t$e response variable% trace - is t$e mean line% and traces = and are t$e upper and lo#er control limits Some analysts prefer to dra# t$e response variable as a c$aracter or a spi1e rat$er t$an a connected line •
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A''li+ation of +ont"ol +!a"t# .ontrol c$arts are grap$ic illustrations of data collected from a process over time% t$ereby providing running records of performance Examples of accounting processes #$ere control c$arts are useful include t$e issuance of invoices and ot$er accounting documents% t$e preparation of tax returns% and various auditing processes *ene/ts of using control c$arts to monitor accounting processes include $ig$er quality services% reduced costs% and $ig$er pro/tability (o# .ontrol .$arts 5or1 .ontrol c$arts are useful for analy>ing and controlling repetitive processes because t$ey $elp to determine #$en corrective actions are needed *ecause t$ey display running records of performance% control c$arts provide numerous types of information to management 0or example% control c$arts are useful for< + Pinpointing errati or unpredictable processes; - 6btaining #arning of impending trouble% suc$ as an unexpected c$ange in a process; = Evaluating product 2service3 consistency over time; &ecreasing performance variability in a process% t$ereby decreasing t$e level of post4 process inspection of t$e output generated by t$e process; 9 &etermining t$e cause of trouble #$en a process is generating output #$ic$ $as errors and mista1es; and J @no#ing #$en a process is doing t$e best t$at can be expected from it 2+3
Page (2 of 49 A control c$art is a grap$ t$at contains a centerline% and upper and lo#er control limits !$e centerline represents t$e process average !$e control limits represent t$e upper and lo#er boundaries of acceptability around t$e centerline !$e $ori>ontal axis represents sample numbers or points in time% and t$e vertical axis represents measurements from samples .ontrol c$arts are usually based on data collected from samples of a process After a suCcient number of samples are dra#n and t$e data is plotted on a control c$art% t$e stability of t$e process is evaluated A process #$ic$ is stable is deemed to be ,in control, #$ereas an ,out of control, process is unstable% and t$erefore% unpredictable "any accounting and /nancial processes #$ic$ are repetitive in nature can also be evaluated using similar c$arts !$ese processes mig$t include< + Oumber of invoices processed per period; - !ime required preparing a mont$ly statement; = Average age of accounts receivable; Oumber of purc$ase discounts lost; and 9 Sales returns per salesperson% #$en commissions are based on t$e amount of gross sales 6nce accountants learn t$e basics of statistical quality control and $o# easy control c$arts are to prepare% t$ey can readily identify ot$er repetitive processes involved in t$e accounting function in #$ic$ control c$arts #ill be useful as a control tec$nique *ene/ts of ?nderstanding .ontrol .$arts *ecause many manufacturers are no# using control c$arts to evaluate t$eir processes% accountants $ave to understand statistical process control if t$ey are going to continue to provide maximum services to t$eir employers or clients In addition% accountants #ill undoubtedly /nd many uses for control c$arts #it$in t$eir departments or /rms If t$e quality of accounting processes is improved by using statistical met$ods% /rms s$ould experience $ig$er pro/tability !$is increase in pro/tability #ill occur because of an increase in t$e quality of accounting services and a reduction in t$e costs incurred to provide t$e services !o remain competitive in today's environment% all departments% including accounting% must try to provide $ig$ quality services and products at t$e lo#est possible cost
EN% 0 M0%ULE (
Module / !otal Quality "anagement< Strategic Quality Planning; 6rgani>ing for !Q"; !raining for !Q"; @ai>en; benc$mar1ing; !Q" in service organi>ation; Implementing !Q" Quality standards< IS6 8:::; Quality system under IS6 8:::; IS6 +:::; IS6 certi/cation process; Quality a#ards< *alding A#ard; &emingDs Pri>e
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Total Quality Manageent !otal Quality "anagement 2!Q"3 $as been one of t$e most in)uential met$ods used in managing business processes over t$e last =: years It $as been incorporated as a vital component% in t$e management systems of some of t$e #orld's most successful enterprises In trying to de/ne !Q" is it is #ell #ort$ considering t$e relevance and meaning of t$e t$ree #ords in its title
Total 4 !$e responsibility for ac$ieving Quality rests #it$ everyone a business no matter #$at t$eir function It recogni>es t$e necessity to develop processes across t$e business% t$at toget$er lead to t$e reliable delivery of exact% agreed customer requirements !$is #ill ac$ieve t$e most competitive cost position and a $ig$er return on investment Quality 4 !$e prime tas1 of any business is to understand t$e needs of t$e customer% t$en deliver t$e product or service at t$e agreed time% place and price% on every occasion !$is #ill retain current customers% assist in acquiring ne# ones and lead to a subsequent increase in mar1et s$are Manageent 4 !op management lead t$e drive to ac$ieve quality for customers% by communicating t$e business vision and values to all employees; ensuring t$e rig$t business processes are in place; introducing and maintaining a continuous improvement culture !o gain an understanding of !Q"% it is #ort$ loo1ing at $o# it developed and t$e impact of some of t$e main management ,gurus, over t$e years 3hat is total quality management4 IS6 M:-<+88 de/nes total quality management 2!Q"3 as a management approac$ of an organisation centred on quality% based on t$e participation of all its members and aiming at long4term success !$is is ac$ieved t$roug$ customer satisfaction and bene/ts to all members of t$e organisation and to society In ot$er #ords% !Q" is a p$ilosop$y for managing an organisation in a #ay #$ic$ enables it to meet sta1e$older needs and expectations eCciently and eGectively% #it$out compromising et$ical values !Q" is a #ay of t$in1ing about goals% organisations% processes and people to ensure t$at t$e rig$t t$ings are done rig$t /rst time !$is t$oug$t process can c$ange attitudes% be$aviour and $ence results for t$e better 5$at !Q" is not !Q" is not a system% a tool or even a process Systems% tools and processes are employed to ac$ieve t$e various principles of !Q"
5$at does !Q" cover !$e total in !Q" applies to t$e #$ole organisation !$erefore% unli1e an IS6 8::: initiative #$ic$ may be limited to t$e processes producing deliverable products% !Q" applies to every
Page (6 of 49 activity in t$e organisation Also% unli1e IS6 8:::% !Q" covers t$e soft issues suc$ as et$ics% attitude and culture 5$at is t$e !Q" p$ilosop$y !$ere are several #ays of expressing t$is p$ilosop$y !$ere are also several gurus #$ose in)uence on management t$oug$t in t$is area $as been considerable% for example &eming% 7uran% .rosby% 0eigenbaum% Is$i1a#a and Imai !$e #isdom of t$ese gurus $as been distilled into eig$t principles de/ned in IS6 8:::<-::: !$e principles of quality management< !$ere are eig$t principles of quality management< •
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.ustomer4focused organisation 4 organisations depend on t$eir customers and t$erefore s$ould understand current and future customer needs% meet customer requirements and strive to exceed customer expectations Beaders$ip 4 leaders establis$ unity of purpose% direction and t$e internal environment of t$e organisation !$ey create t$e environment in #$ic$ people can become fully involved in ac$ieving t$e organisation's objectives Involvement of people 4 people at all levels are t$e essence of an organisation and t$eir full involvement enables t$eir abilities to be used for t$e organisation's bene/t Process approac$ 4 a desired result is ac$ieved more eCciently #$en related resources and activities are managed as a process system approac$ to management 4 identifying% understanding and managing a system of interrelated processes for a given objective contributes to t$e eGectiveness and eCciency of t$e organisation continual improvement 4 continual improvement is a permanent objective of an organisation factual approac$ to decision ma1ing 4 eGective decisions are based on t$e logical and intuitive analysis of data and information mutually bene/cial supplier relations$ips 4 mutually bene/cial relations$ips bet#een t$e organisation and its suppliers en$ance t$e ability of bot$ organisations to create value
(o# does !Q" diGer from t$e EQA model !$e European Quality A#ard model is used to assess business excellence *usiness excellence is t$e result of adopting a !Q" p$ilosop$y and realigning t$e organisation to#ards satisfying all sta1e$olders 2customers% o#ners% s$are$olders% suppliers% employees and society3 !$e quality a#ard criteria oGer measures of performance rat$er t$an a met$odology 3hy shoul$ a company a$opt 2(M4 Adopting t$e !Q" p$ilosop$y #ill< • • • • •
ma1e an organisation more competitive establis$ a ne# culture #$ic$ #ill enable gro#t$ and longevity provide a #or1ing environment in #$ic$ everyone can succeed reduce stress% #aste and friction build teams% partners$ips and co4operation
Page (8 of 49 3hen shoul$ a company a$opt 2(M4 !Q" can be adopted at any time after executive management $as seen t$e error of its #ays% opened its mind and embraced t$e p$ilosop$y It cannot be attempted if management perceives it as a quic1 /x% or a tool to improve #or1er performance Ho& shoul$ a company a$opt 2(M4 *efore !Q" is even contemplated !Q" #ill force c$ange in culture% processes and practice !$ese c$anges #ill be more easily facilitated and sustained if t$ere is a formal management system in place Suc$ a system #ill provide many of t$e facts on #$ic$ to base c$ange and #ill also enable c$anges to be implemented more systematically and permanently !$e /rst steps In order to focus all eGorts in any !Q" initiative and to yield permanent bene/ts% a company must ans#er some fundamental questions< • • • • • •
5$at 5$at 5$at 5$at 5$at 5$at
is its purpose as a business is its vision for t$e business is its mission are t$e factors upon #$ic$ ac$ievement of its mission depends are its values are its objectives
A good #ay to accomplis$ t$is is to ta1e top management oG site for a day or t#o for a brainstorming session ?ntil management s$ares t$e same ans#ers to t$ese questions and $as communicated t$em to t$e #or1force t$ere can be no guarantee t$at t$e c$anges made #ill propel t$e organisation in t$e rig$t direction "et$odology !$ere are a number of approac$es to ta1e to#ards adopting t$e !Q" p$ilosop$y !$e teac$ings of &eming% 7uran% !aguc$i% Is$i1a#a% Imai% and 6a1land etc can all $elp an organisation realign itself and embrace t$e !Q" p$ilosop$y (o#ever% t$ere is no single met$odology% only a bundle of tools and tec$niques Examples of tools include< • • • • •
)o#c$arting statistical process control 2SP.3 Pareto analysis cause and eGect diagrams employee and customer surveys
Examples of tec$niques include< • •
benc$mar1ing cost of quality
Page (9 of 49
• • •
quality function deployment failure mode eGects analysis design of experiments
"easurements After using t$e tools and tec$niques an organisation needs to establis$ t$e degree of improvement Any number of tec$niques can be used for t$is including self4assessment% audits and SP. Pitfalls !Q" initiatives $ave been prone to failure because of common mista1es !$ese include< • • •
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allo#ing external forces and events to drive a !Q" initiative an over#$elming desire for quality a#ards and certi/cates organising and perceiving !Q" activities as separate from day4to4day #or1 responsibilities treating !Q" as an add4on #it$ little attention given to t$e required c$anges in organisation and culture senior management underestimating t$e necessary commitment to !Q"
t"ategi+ Quality ,lanning Strategic quality planning is a business planning met$odology used to formulate% deploy% and ac$ieve business objectives by concentrating resources on priority items It does not ta1e t$e place of strategic planning% but instead oGers t$e bridge from strategy to actions by lin1ing business activities to t$e long term vie# of t$e company 2a1a policy management% policy deployment% (os$in planning3
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*ene/ts 1. *uilt upon a t$oroug$ understanding of t$e business% leveraging bot$ t$e voice of t$e customer and t$e voice of t$e business (. Hequires establis$ing c$ampions% indicators% targets% met$ods to improve% and assigning responsibilities /. Emp$asis on t$e results but possessing an extreme curiosity of $o# t$e results #ere ac$ieved
0"ganiCing fo" TQM T"aining fo" TQM In t$e M:'s and 8:'s !Q" #as promoted in t$e ?SA t$roug$ t$e ,*aldridge A#ard, and in Europe t$roug$ t$e European Quality A#ard !$e main elements in t$e practice of !Q" can be $ig$lig$ted by t$e principles t$ey used for auditing companies !$ese can be summed up as follo#s< + !$e customer de/nes quality and t$is is t$e start point !$e senior management team is responsible for ta1ing t$e lead in setting t$e company strategy% values and culture #it$ regard to quality = Quality depends upon t$e design and execution of systems and processes to a $ig$ standard A 1ey part of t$e p$ilosop$y is t$at of t$e need for continuous improvement and t$e need to reac$ for continually $ig$er standards 9 Beaders$ip in quality can only be ac$ieved t$roug$ management setting clear goals and forming t$e strategic and operational plans to ac$ieve t$em J ?nderstand t$e processes t$at drive your business and base your decisions on facts L Involve employees at all levels in quality improvement activities t$roug$ appropriate education% training and communication M @ey parts of quality systems include designing quality into processes and error prevention 8 !$e s$ortening of response times for all processes is an objective of improvement eGorts +: .ompanies s$ould communicate #it$ and involve t$eir suppliers in ac$ieving t$eir quality targets !Q" programmes adopt a similar approac$ to t$at belo# + + ain top level commitment in t$e business - .reate t$e a#areness of t$e need and opportunity for quality improvement and set goals = = 6rgani>e to ac$ieve t$ese goals% for example establis$ing a quality council% quality improvement teams or project teams !rain everyone in t$e organi>ation% starting #it$ t$e management team on t$e p$ilosop$y and tools and tec$niques 9 9 Put t$e resources be$ind applying t$em Quality programmes typically include<
Page /1 of 49 + Identifying and con/rming customer requirements and identifying problems and opportunities in meeting t$ese ain understanding in t$e concept of t$e internal customer and meeting t$eir requirements !ools for understanding processes 0or example% process modeling tools (o# to build error prevention into #or1 processes = "easurement tools% including c$ec1 s$eets% run c$arts% sampling and data collection !$e use of discreet or continuous data .alculating t$e ,cost of quality, or ,price of non4conformance, #$ic$ de/nes t$e cost saving opportunity 9 Information analysis tec$niques suc$ as run c$arts% Pareto c$arts% cause and eGect diagrams% )o# c$arts J Problem solving tec$niques suc$ as brainstorming% tree diagrams L Improvement Planning t$roug$ teams and planning tools suc$ as antt c$arts and ot$er project planning tec$niques M .ontrolling t$e #or1 processes !$e use of simple Statistical Process .ontrol tec$niques and control c$arts #$ic$ can be used by s$op )oor personnel 8 .ommunicate t$e results% recogni>e people #$o $ave been involved in success and incorporate improvements into t$e companies processes and systems +: "aintain t$e commitment to continuous improvement After eac$ success% go bac1 and loo1 for more] 6ver time t$e use of benc$mar1ing and balanced scorecard $as also been incorporated into !Q" programmes by a number of companies
Bu#ine## y#te# "any of t$e practitioners of !Q" $ave successfully incorporated it into t$eir culture% business systems and processes It $as provided a means of planning and controlling t$eir business and auditing its performance *elo# is an example of $o# suc$ a business system mig$t loo1 Evaluating TQM Evidence and reports of t$e success of !Q" over t$e years $ave been mixed After t$e strong upta1e in t$e ?SA during t$e second $alf of t$e M:'s and t$e early 8:'s t$ere #ere signs of discontent and #aning of interest !$is may $ave been a result of #$at #as perceived as t$e poor /t bet#een !Q" and t$e ne# industrial imperatives of t$e +88:'s An article in t$e Economist observes 2he most ar$ent a$herents o quality are fn$ing that 2(M $oes not rea$ily blen$ &ith &ave ater &ave o restructuring# $o&nsizing an$ re0engineering" An$ the challenge o $eveloping pro$ucts an$ bringing them# to market even more s&itly# especially in in$ustries &ere prices are tumbling# such as computers# a$$s to the strain on 2(M !$e experience of do#nsi>ing% business re4engineering undoubtedly created job insecurity and de4motivation amongst employees% t$ereby undermining t$e employee involvement essential to any successful !Q" programme !$e experience of companies suc$ as erox and *A #$o bot$ #ere regarded as $aving successful !Q" programmes found it diCcult to maintain t$e level of commitment from t$eir staG #$ic$ is one of t$e pre4requisites of continuing its !Q" programme "any companies found t$emselves in a position #$ere t$ey believed it necessary to ma1e major structural c$anges to t$eir organi>ations in a relatively s$ort space of time I*"% for example $alved t$eir #or1force in a period of ten years !$e comparison bet#een re4
Page /( of 49 engineeringKdo#nsi>ingKde4layering on t$e one $and and !Q" on t$e ot$er is an interesting one *ot$ types of process are aimed at meeting customer requirements in a cost eGective manner *ot$ concentrate on t$e processes necessary to deliver t$e outputs to customers !$ey strongly diverge $o#ever in t$eir strategies for c$ange #it$ !Q" adopting t$e continuous improvement route and re4engineering utili>ing immediate% radical% mega4c$ange !$ere $ave been debates about t$e success or ot$er#ise of !Q" programmes over t$e years Studies $ave been carried out% for example by t$e by t$e ?S eneral Accounts 6Cce covering American companies and in t$e ?@ by !$e *radford "anagement .entre !$ese $ave found t$at companies t$at $ad fully adopted !otal Quality "anagement programmes produced signi/cantly better bottom line results t$an comparable companies #$o $ad not ta1en t$at approac$ A number of studies by academics and consultants also identi/ed t$at a common cause of failure of !otal Quality "anagement programmes #as simply do#n to eit$er poor management or a lac1 of commitment to quality !$ere #ere% and still are% a large number of company directors #$o believe t$at ,quality is not t$eir responsibility, !otal Quality "anagement today 5$ilst t$e number of companies today #$o are openly practicing major programmes under t$e banner of !otal Quality "anagement $as greatly declined from t$e late M:'s and early 8:'s% its p$ilosop$y and management tools it utili>es are just as evident !o many companies% it $as become t$e #ay t$ey manage and not ,an external programme, #$ic$ #as one of t$e objectives and measure of its success Bi1e#ise% companies recogni>ing t$e need to improve t$eir business performance are customi>ing !otal Quality "anagement principles and practices to suit t$eir o#n particular needs and circumstances and building t$eir o#n internal programmes !$is $as avoided t$e potential dangers of t$e ,grand programme, and jargon t$at can alienate t$e employees Alongside t$is is t$e success of J Sigma programmes #$ic$ bear great similarity in terms of t$eir objectives% people involvement and t$e tools and tec$niques used In fact% some believe J Sigma to be a form of !otal Quality "anagement !$e principles of !otal Quality "anagement are as relevant to #or1 process management today as t$ey $ave ever been% particularly #$en considered alongside learning from ot$er tec$niques suc$ as lean manufacturing It is essential t$at programmes are structured to meet t$e needs and situations of individual companies 5$ilst some may bene/t from a fully integrated programme% ot$ers $ave reali>ed t$at t$ere are signi/cant payoGs to be gained from a more modest or tailored approac$ designed to solve speci/c problems or ac$ieve de/ned% targeted improvements !$e scope and scale are up to t$e client company to c$oose
)aiCen Kaizen 2,improvement,3 is a 7apanese p$ilosop$y t$at focuses on continuous improvement t$roug$out all aspects of life 5$en applied to t$e #or1place% @ai>en activities continually improve all functions of a business% from manufacturing to management and from t$e .E6 to t$e assembly line #or1ers *y improving standardi>ed activities and processes% @ai>en aims to eliminate #aste @ai>en #as /rst implemented in several 7apanese businesses during t$e country's recovery after 5orld 5ar II% including !oyota% and $as since spread to businesses t$roug$out t$e #orld @ai>en is a daily activity% t$e purpose of #$ic$ goes beyond simple productivity improvement It is also a process t$at% #$en done correctly% $umani>es t$e #or1place% eliminates overly $ard #or1 2,muri,3% and teac$es people $o# to perform experiments on t$eir #or1 using t$e scienti/c met$od and $o# to learn to spot and eliminate #aste in business processes
Page // of 49 !o be most eGective 1ai>en must operate #it$ t$ree principles in place< •
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consider t$e process and t$e results 2not results4only3 so t$at actions to ac$ieve eGects are surfaced; systemic t$in1ing of t$e #$ole process and not just t$at immediately in vie# 2ie big picture% not solely t$e narro# vie#3 in order to avoid creating problems else#$ere in t$e process; and A learning% non4judgmental% non4blaming 2because blaming is #asteful3 approac$ and intent #ill allo# t$e re4examination of t$e assumptions t$at resulted in t$e current process
People at all levels of an organi>ation can participate in 1ai>en% from t$e .E6 do#n% as #ell as external sta1e$olders #$en applicable !$e format for 1ai>en can be individual% suggestion system% small group% or large group At !oyota% it is usually a local improvement #it$in a #or1station or local area and involves a small group in improving t$eir o#n #or1 environment and productivity !$is group is often guided t$roug$ t$e 1ai>en process by a line supervisor; sometimes t$is is t$e line supervisor's 1ey role 5$ile 1ai>en 2at !oyota3 usually delivers small improvements% t$e culture of continual aligned small improvements and standardi>ation yields large results in t$e form of compound productivity improvement (ence t$e Englis$ usage of ,1ai>en, can be< ,continuous improvement, or ,continual improvement, !$is p$ilosop$y diGers from t$e ,command4and4control, improvement programs of t$e mid4 t#entiet$ century @ai>en met$odology includes ma1ing c$anges and monitoring results% t$en adjusting Barge4scale pre4planning and extensive project sc$eduling are replaced by smaller experiments% #$ic$ can be rapidly adapted as ne# improvements are suggested Implementation !$e !oyota Production System is 1no#n for 1ai>en% #$ere all line personnel are expected to stop t$eir moving production line in case of any abnormality and% along #it$ t$eir supervisor% suggest an improvement to resolve t$e abnormality #$ic$ may initiate a 1ai>en !$e cycle of 1ai>en activity can be de/ned as<
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standardi>e an operation ^ measure t$e standardi>ed operation 2/nd cycle time and amount of in4process inventory3 ^
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gauge measurements against requirements ^
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innovate to meet requirements and increase productivity ^
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standardi>e t$e ne#% improved operations ^
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.ontinue cycle a$ infnitum
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!$is is also 1no#n as t$e S$e#$art cycle% &eming cycle% or P&.A
Page /4 of 49 "asaa1i Imai made t$e term famous in $is boo1% Kaizen5 the Key to 6apan7s )ompetitive Success @ai>en and "anagement "anagement $as t#o major components< + "aintenance% and - Improvement !$e objective of t$e maintenance function is to maintain current tec$nological% managerial% and operating standards !$e improvement function is aimed at improving current standards ?nder t$e maintenance function% t$e management must /rst establis$ policies% rules% directives and standard operating procedures 2S6Ps3 and t$en #or1 to#ards ensuring t$at everybody follo#s S6P !$e latter is ac$ieved t$roug$ a combination of discipline and $uman resource development measures ?nder t$e improvement function% management #or1s continuously to#ards revising t$e current standards% once t$ey $ave been mastered% and establis$ing $ig$er ones Improvement can be bro1en do#n bet#een innovation and @ai>en Innovation involves a drastic improvement in t$e existing process and requires large investments @ai>en signi/es small improvements as a result of coordinated continuous eGorts by all employees Process46riented !$in1ing vs Hesult46riented !$in1ing @ai>en concentrates at improving t$e process rat$er t$an at ac$ieving certain results Suc$ managerial attitudes and process t$in1ing ma1e a major diGerence in $o# an organi>ation masters c$ange and ac$ieves improvements Quic1 and Easy @ai>en Quic1 and Easy @ai>en 2or "ini4@ai>en3 is aimed at increasing productivity% quality% and #or1er satisfaction% all from a very grassroots level Every company employee is encouraged to come up #it$ ideas $o#ever small t$at could improve $isK$er particular job activity% job environment or any company process for t$at matter !$e employees are also encouraged to implement t$eir ideas as small c$anges can be done by t$e #or1er $im or $erself #it$ very little investment of time Quic1 and easy @ai>en $elps eliminate or reduce #astes% promotes personal gro#t$ of employees and t$e company% provides guidance for employees% and serves as a barometer of leaders$ip Eac$ 1ai>en may be small% but t$e cumulative eGect is tremendous
Ben+!a"*ing *enc$mar1ing 2also ,best practice benc$mar1ing, or ,process benc$mar1ing,3 is a process used in management and particularly strategic management% in #$ic$ organi>ations evaluate various aspects of t$eir processes in relation to best practice% usually #it$in t$eir o#n sector !$is t$en allo#s organi>ations to develop plans on $o# to adopt suc$ best practice% usually #it$ t$e aim of increasing some aspect of performance *enc$mar1ing may be a one4oG event% but is often treated as a continuous process in #$ic$ organi>ations continually see1 to c$allenge t$eir practices *enc$mar1ing in simplistic terms is t$e processes #$ere you compare your process #it$ t$at of a better process and try to improve t$e standard of t$e process you follo# to improve quality of t$e system% product% services etc A process similar to benc$mar1ing is also used in tec$nical product testing and in land surveying See t$e article benc$mar1 for t$ese applications
Page /2 of 49 In Sout$ @orea% !$e imitation brand commodity etc is called ,"e !oo .ommodity ,% and t$ere is an opinion assumed t$at it is a result of t$e benc$mar1ingF -enchmarking5 A continuous# systematic process o evaluating an$ comparing the capability o one organization &ith others normally recognize$ as in$ustry lea$ers# or insights or optimizing the organizations processes" Performance analysis forms t$e basis for your current process improvement #$ic$ enables you to ma1e better soft#are tomorro# Performance benc$mar1ing removes misconceptions% and lets us see t$e actual need for improvement
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,"o+e## en+!a"*ing 4 t$e initiating /rm focuses its observation and investigation of business processes #it$ a goal of identifying and observing t$e best practices from one or more benc$mar1 /rms Activity analysis #ill be required #$ere t$e objective is to benc$mar1 cost and eCciency; increasingly applied to bac14oCce processes #$ere outsourcing may be a consideration inan+ial en+!a"*ing 4 performing a /nancial analysis and comparing t$e results in an eGort to assess your overall competitiveness ,e"fo"an+e en+!a"*ing 4 allo#s t$e initiator /rm to assess t$eir competitive position by comparing products and services #it$ t$ose of target /rms ,"odu+t en+!a"*ing 4 t$e process of designing ne# products or upgrades to current ones !$is process can sometimes involve reverse engineering #$ic$ is ta1ing apart competitors products to /nd strengt$s and #ea1nesses t"ategi+ en+!a"*ing 4 involves observing $o# ot$ers compete !$is type is usually not industry speci/c meaning it is best to loo1 at ot$er industries un+tional en+!a"*ing 4 a company #ill focus its benc$mar1ing on a single function in order to improve t$e operation of t$at particular function .omplex functions suc$ as (uman Hesources% 0inance and Accounting and Information and .ommunication !ec$nology are unli1ely to be directly comparable in cost and eCciency terms and may need to be disaggregated into processes to ma1e valid comparison
Advantages of benchmarking *enc$mar1ing is a po#erful management tool because it overcomes ,paradigm blindness, Paradigm *lindness can be summed up as t$e mode of t$in1ing% ,!$e #ay #e do it is t$e best because t$is is t$e #ay #e've al#ays done it, *enc$mar1ing opens organi>ations to ne# met$ods% ideas and tools to improve t$eir eGectiveness It $elps crac1 t$roug$ resistance to c$ange by demonstrating ot$er met$ods of solving problems t$an t$e one currently employed% and demonstrating t$at t$ey #or1% because t$ey are being used by ot$ers
Procedure !$ere is no single benc$mar1ing process t$at $as been universally adopted !$e #ide appeal and acceptance of benc$mar1ing $as led to various benc$mar1ing met$odologies emerging !$e most prominent met$odology is t$e +- stage met$odology by Hobert .amp 2#$o #rote t$e /rst boo1 on benc$mar1ing in +8M83 !$e +- stage met$odology consisted of + Select subject a$ead - &e/ne t$e process
Page /5 of 49 = Identify potential partners Identify data sources 9 .ollect data and select partners J &etermine t$e gap L Establis$ process diGerences M !arget future performance 8 .ommunicate +: Adjust goal ++ Implement +- Hevie#Krecalibrate !$e follo#ing is an example of a typical s$orter version of t$e met$odology<
1. Identify your problem areas 4 *ecause benc$mar1ing can be applied to any business process or function% a range of researc$ tec$niques may be required !$ey include< informal conversations #it$ customers% employees% or suppliers; exploratory researc$ tec$niques suc$ as focus groups; or in4dept$ mar1eting researc$% quantitative researc$% surveys% questionnaires% re engineering analysis% process mapping% quality control variance reports% or /nancial ratio analysis *efore embar1ing on comparison #it$ ot$er organi>ations it essential t$at you 1no# your o#n organi>ation's function% process; base lining performance provides a point against #$ic$ improvement eGort can be measured (. Identify ot$er industries t$at $ave similar processes 4 0or instance if one #ere interested in improving $and oGs in addiction treatment sK$e #ould try to identify ot$er /elds t$at also $ave $and oG c$allenges !$ese could include air traCc control% cell p$one s#itc$ing bet#een to#ers% transfer of patients from surgery to recovery rooms /. Identify organi>ations t$at are leaders in t$ese areas 4 Boo1 for t$e very best in any industry and in any country .onsult customers% suppliers% /nancial analysts% trade associations% and maga>ines to determine #$ic$ companies are #ort$y of study 4. Survey companies for measures and practices 4 .ompanies target speci/c business processes using detailed surveys of measures and practices used to identify business process alternatives and leading companies Surveys are typically mas1ed to protect con/dential data by neutral associations and consultants 2. Xisit t$e ,best practice, companies to identify leading edge practices 4 .ompanies typically agree to mutually exc$ange information bene/cial to all parties in a benc$mar1ing group and s$are t$e results #it$in t$e group 5. Implement ne# and improved business practices 4 !a1e t$e leading edge practices and develop implementation plans #$ic$ include identi/cation of speci/c opportunities% funding t$e project and selling t$e ideas to t$e organi>ation for t$e purpose of gaining demonstrated value from t$e process Cost of benchmarking *enc$mar1ing is a moderately expensive process% but most organi>ations /nd t$at it more t$an pays for itself !$e t$ree main types of costs are< •
Xisit .osts 4 !$is includes $otel rooms% travel costs% meals% a to1en gift% and lost labor time
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!ime .osts 4 "embers of t$e benc$mar1ing team #ill be investing time in researc$ing problems% /nding exceptional companies to study% visits% and implementation !$is #ill ta1e t$em a#ay from t$eir regular tas1s for part of eac$ day so additional staG mig$t be required *enc$mar1ing &atabase .osts 4 6rgani>ations t$at institutionali>e benc$mar1ing into t$eir daily procedures /nd it is useful to create and maintain a database of best practices and t$e companies associated #it$ eac$ best practice no#
!$e cost of benc$mar1ing can substantially be reduced t$roug$ utili>ing t$e many internet resources t$at $ave sprung up over t$e last fe# years !$ese aim to capture benc$mar1s and best practices from organi>ations% business sectors and countries to ma1e t$e benc$mar1ing process muc$ quic1er and c$eaper
Technical benchmarking or Product Benchmarking !$e tec$nique initially used to compare existing corporate strategies #it$ a vie# to ac$ieving t$e best possible performance in ne# situations 2see above3% $as recently been extended to t$e comparison of tec$nical products !$is process is usually referred to as ,!ec$nical *enc$mar1ing, or ,Product *enc$mar1ing' Its use is particularly #ell developed #it$in t$e automotive industry 2,Automotive *enc$mar1ing,3% #$ere it is vital to design products t$at matc$ precise user expectations% at minimum possible cost% by applying t$e best tec$nologies available #orld#ide "any data are obtained by fully disassembling existing cars and t$eir systems Suc$ analyses #ere initially carried out in4$ouse by car ma1ers and t$eir suppliers (o#ever% as t$ey are expensive% t$ey are increasingly outsourced to companies speciali>ed in t$is area Indeed% outsourcing $as enabled a drastic decrease in costs for eac$ company 2by cost s$aring3 and t$e development of very eCcient tools 2standards% soft#are3
TQM in #e"vi+e o"ganiCation Eac$ organi>ation must tailor its approac$ to exploit strengt$s and concentrate on #ea1nesses Activities t$at are necessary include< + - =
9 J L M
A reali>ation t$at in a global mar1etplace% customer satisfaction is t$e 1ey to survival and success ?nderstanding t$at quality improvement is 1ey to increased customer satisfaction% increased productivity and reduced cost (ave a clear #ell4de/ned objective !$e commitment of a leader to t$e p$ilosop$y of !Q" A c$ange in t$e organi>ation's culture to accept t$e tenets of !Q" *e#are of people #$o use quality to establis$ /efdoms and people #$o remain in po#erful positions but don't get #it$ t$e program !raining from top to bottom ?se t$e ,/ve4#$y, ?se statistics #isely and #$ere appropriate !ry not to do too muc$ too soon &on't ta1e a coo1ie4cutter approac$ Bimit t$e number of consultants and train your employees internally 0ocus on t$e lo#4$anging fruit
I'leenting TQM !o be successful implementing !Q"% an organi>ation must concentrate on t$e eig$t 1ey elements< + Et$ics
Page /8 of 49 - Integrity = !rust !raining 9 !eam#or1 J Beaders$ip L Hecognition M .ommunication !$is paper is meant to describe t$e eig$t elements comprising !Q" @ey Elements !Q" $as been coined to describe a p$ilosop$y t$at ma1es quality t$e driving force be$ind leaders$ip% design% planning% and improvement initiatives 0or t$is% !Q" requires t$e $elp of t$ose eig$t 1ey elements !$ese elements can be divided into four groups according to t$eir function !$e groups are< I 0oundation 4 It includes< Et$ics% Integrity and !rust II *uilding *ric1s 4 It includes< !raining% !eam#or1 and Beaders$ip III *inding "ortar 4 It includes< .ommunication IX Hoof 4 It includes< Hecognition I 0oundation !Q" is built on a foundation of et$ics% integrity and trust It fosters openness% fairness and sincerity and allo#s involvement by everyone !$is is t$e 1ey to unloc1ing t$e ultimate potential of !Q" !$ese t$ree elements move toget$er% $o#ever% eac$ element oGers somet$ing diGerent to t$e !Q" concept + Et$ics 4 Et$ics is t$e discipline concerned #it$ good and bad in any situation It is a t#o4 faceted subject represented by organi>ational and individual et$ics 6rgani>ational et$ics establis$ a business code of et$ics t$at outlines guidelines t$at all employees are to ad$ere to in t$e performance of t$eir #or1 Individual et$ics include personal rig$ts or #rongs - Integrity 4 Integrity implies $onesty% morals% values% fairness% and ad$erence to t$e facts and sincerity !$e c$aracteristic is #$at customers 2internal or external3 expect and deserve to receive People see t$e opposite of integrity as duplicity !Q" #ill not #or1 in an atmosp$ere of duplicity = !rust 4 !rust is a by4product of integrity and et$ical conduct 5it$out trust% t$e frame#or1 of !Q" cannot be built !rust fosters full participation of all members It allo#s empo#erment t$at encourages pride o#ners$ip and it encourages commitment It allo#s decision ma1ing at appropriate levels in t$e organi>ation% fosters individual ris14ta1ing for continuous improvement and $elps to ensure t$at measurements focus on improvement of process and are not used to contend people !rust is essential to ensure customer satisfaction So% trust builds t$e cooperative environment essential for !Q" II *ric1s *asing on t$e strong foundation of trust% et$ics and integrity% bric1s are placed to reac$ t$e roof of recognition It includes< !raining 4 !raining is very important for employees to be $ig$ly productive Supervisors are solely responsible for implementing !Q" #it$in t$eir departments% and teac$ing t$eir employees t$e p$ilosop$ies of !Q" !raining t$at employees require are interpersonal s1ills%
Page /9 of 49 t$e ability to function #it$in teams% problem solving% decision ma1ing% job management performance analysis and improvement% business economics and tec$nical s1ills &uring t$e creation and formation of !Q"% employees are trained so t$at t$ey can become eGective employees for t$e company 9 !eam#or1 4 !o become successful in business% team#or1 is also a 1ey element of !Q" 5it$ t$e use of teams% t$e business #ill receive quic1er and better solutions to problems !eams also provide more permanent improvements in processes and operations In teams% people feel more comfortable bringing up problems t$at may occur% and can get $elp from ot$er #or1ers to /nd a solution and put into place !$ere are mainly t$ree types of teams t$at !Q" organi>ations adopt< A Quality Improvement !eams or Excellence !eams 2QI!S3 4 !$ese are temporary teams #it$ t$e purpose of dealing #it$ speci/c problems t$at often re4occur !$ese teams are set up for period of t$ree to t#elve mont$s * Problem Solving !eams 2PS!s3 4 !$ese are temporary teams to solve certain problems and also to identify and overcome causes of problems !$ey generally last from one #ee1 to t$ree mont$s . Oatural 5or1 !eams 2O5!s3 4 !$ese teams consist of small groups of s1illed #or1ers #$o s$are tas1s and responsibilities !$ese teams use concepts suc$ as employee involvement teams% self4managing teams and quality circles !$ese teams generally #or1 for one to t#o $ours a #ee1 J Beaders$ip 4 It is possibly t$e most important element in !Q" It appears every#$ere in organi>ation Beaders$ip in !Q" requires t$e manager to provide an inspiring vision% ma1e strategic directions t$at are understood by all and to instill values t$at guide subordinates 0or !Q" to be successful in t$e business% t$e supervisor must be committed in leading $is employees A supervisor must understand !Q"% believe in it and t$en demonstrate t$eir belief and commitment t$roug$ t$eir daily practices of !Q" !$e supervisor ma1es sure t$at strategies% p$ilosop$ies% values and goals are transmitted do#n t$roug$ out t$e organi>ation to provide focus% clarity and direction A 1ey point is t$at !Q" $as to be introduced and led by top management .ommitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent #it$ t$e objectives of t$e company and in creating and deploying #ell de/ned systems% met$ods and performance measures for ac$ieving t$ose goals III *inding "ortar L .ommunication 4 It binds everyt$ing toget$er Starting from foundation to roof of t$e !Q" $ouse% everyt$ing is bound by strong mortar of communication It acts as a vital lin1 bet#een all elements of !Q" .ommunication means a common understanding of ideas bet#een t$e sender and t$e receiver !$e success of !Q" demands communication #it$ and among all t$e organi>ation members% suppliers and customers Supervisors must 1eep open air#ays #$ere employees can send and receive information about t$e !Q" process .ommunication coupled #it$ t$e s$aring of correct information is vital 0or communication to be credible t$e message must be clear and receiver must interpret in t$e #ay t$e sender intended !$ere are diGerent #ays of communication suc$ as< A &o#n#ard communication 4 !$is is t$e dominant form of communication in an organi>ation Presentations and discussions basically do it *y t$is t$e supervisors are able to ma1e t$e employees clear about !Q" * ?p#ard communication 4 *y t$is t$e lo#er level of employees are able to provide suggestions to upper management of t$e aGects of !Q" As employees provide insig$t and constructive criticism% supervisors must listen eGectively to correct t$e situation t$at comes about t$roug$ t$e use of !Q" !$is forms a level of trust bet#een supervisors and employees
Page 4 of 49 !$is is also similar to empo#ering communication% #$ere supervisors 1eep open ears and listen to ot$ers . Side#ays communication 4 !$is type of communication is important because it brea1s do#n barriers bet#een departments It also allo#s dealing #it$ customers and suppliers in a more professional manner IX Hoof M Hecognition 4 Hecognition is t$e last and /nal element in t$e entire system It s$ould be provided for bot$ suggestions and ac$ievements for teams as #ell as individuals Employees strive to receive recognition for t$emselves and t$eir teams &etecting and recogni>ing contributors is t$e most important job of a supervisor As people are recogni>ed% t$ere can be $uge c$anges in self4esteem% productivity% quality and t$e amount of eGort ex$orted to t$e tas1 at $and Hecognition comes in its best form #$en it is immediately follo#ing an action t$at an employee $as performed Hecognition comes in diGerent #ays% places and time suc$ as% 5ays 4 It can be by #ay of personal letter from top management Also by a#ard banquets% plaques% trop$ies etc Places 4 ood performers can be recogni>ed in front of departments% on performance boards and also in front of top management !ime 4 Hecognition can give at any time li1e in staG meeting% annual a#ard banquets% etc •
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5e can conclude t$at t$ese eig$t elements are 1ey in ensuring t$e success of !Q" in an organi>ation and t$at t$e supervisor is a $uge part in developing t$ese elements in t$e #or1 place 5it$out t$ese elements% t$e business entities cannot be successful !Q" implementers It is very clear from t$e above discussion t$at !Q" #it$out involving integrity% et$ics and trust #ould be a great remiss% and in fact it #ould be incomplete !raining is t$e 1ey by #$ic$ t$e organi>ation creates a !Q" environment Beaders$ip and team#or1 go $and in $and Bac1 of communication bet#een departments% supervisors and employees create a burden on t$e #$ole !Q" process Bast but not t$e least; recognition s$ould be given to people #$o contributed to t$e overall completed tas1 (ence% lead by example% train employees to provide a quality product% create an environment #$ere t$ere is no fear to s$are 1no#ledge% and give credit #$ere credit is due is t$e motto of a successful !Q" organi>ation
Quality #tanda"d# I0 9 I0 9 is a family of standards for quality management systems IS6 8::: is maintained by IS6% t$e International 6rgani>ation for Standardi>ation and is administered by accreditation and certi/cation bodies Some of t$e requirements in IS6 8::+ 2#$ic$ is one of t$e standards in t$e IS6 8::: family3 include a set of procedures t$at cover all 1ey processes in t$e business; • •
monitoring processes to ensure t$ey are eGective;
•
1eeping adequate records;
•
c$ec1ing output for defects% #it$ appropriate and corrective action #$ere necessary;
•
•
regularly revie#ing individual processes and t$e quality system itself for eGectiveness; and facilitating continual improvement
Page 41 of 49
Quality y#te unde" I0 9 A company or organi>ation t$at $as been independently audited and certi/ed to be in conformance #it$ IS6 8::+ may publicly state t$at it is ,IS6 8::+ certi/ed, or ,IS6 8::+ registered, .erti/cation to an IS6 8::: standard does not guarantee t$e compliance 2and t$erefore t$e quality3 of end products and services; rat$er% it certi/es t$at consistent business processes are being applied Indeed% some companies enter t$e IS6 8::+ certi/cation as a mar1eting tool Alt$oug$ t$e standards originated in manufacturing% t$ey are no# employed across a #ide range of ot$er types of organi>ations A ,product,% in IS6 vocabulary% can mean a p$ysical object% or services% or soft#are In fact% according to IS6 in -::% service sectors no& account by ar or the highest number o 'S8 9::;5<::: certifcates 0 about /;= o the total" !$e system standards describe #$at requirements need to be met% not $o# t$ey are to be met !$is allo#s for diverse organi>ations to apply t$e same standards in a manner t$at re)ects t$e reality of t$eir business structure In essence% allo#ing eac$ organi>ation to meet t$e system requirements by implementing t$e standards in a manner t$at suits its o#n unique needs Increasingly% certi/cation to an internationally recogni>ed quality management standard li1e one from t$e IS6 8::: series is becoming an important part of distinguis$ing an organi>ation from its competition !$e ability to be audited by an independent% t$ird party organi>ation is t$e foundation of its acceptance #orld#ide .ompanies may no# objectively determine an organi>ations capacity to supply goods or services t$at meet t$e speci/ed requirements of t$e customer !$is can attract more business as customers% bot$ ne# and old; can $ave increased con/dence in your organi>ation's ability to meet t$eir expectations 6ften% just $aving an IS6 8::: certi/cation #ill automatically qualify an organi>ation as a potential supplier to companies t$at demand strict conformance to speci/ed requirements !$ese standards $ave no# become accepted around t$e #orld as t$e benc$mar1 for all quality management systems
I0 14 !$e IS6 +::: environmental management standards exist to $elp organi>ations minimi>e $o# t$eir operations negatively aGect t$e environment 2cause adverse c$anges to air% #ater% or land3 and comply #it$ applicable la#s and regulations IS6 +::+ is t$e international speci/cation for an environmental management system 2E"S3 It speci/es requirements for establis$ing an environmental policy% determining environmental aspects and impacts of productsKactivitiesKservices% planning environmental objectives and measurable targets% implementation and operation of programs to meet objectives and targets% c$ec1ing and corrective action% and management revie# IS6 +::: is similar to IS6 8::: quality management in t$at bot$ pertain to t$e process 2t$e compre$ensive outcome of $o# a product is produced3 rat$er t$an to t$e product itself !$e overall idea is to establis$ an organi>ed approac$ to systematically reduce t$e impact of t$e environmental aspects #$ic$ an organi>ation can control EGective tools for t$e analysis of environmental aspects of an organi>ation and for t$e generation of options for improvement are provided by t$e concept of .leaner Production As #it$ IS6 8:::% certi/cation is performed by t$ird4party organi>ations rat$er t$an being a#arded by IS6 directly !$e IS6 +8:++ audit standard applies #$en auditing for bot$ 8::: and +::: compliance at once
Page 4( of 49
I0 +e"tiD+ation '"o+e## IS6 does not itself certify organi>ations "any countries $ave formed accreditation bodies to aut$ori>e certi/cation bodies% #$ic$ audit organi>ations applying for IS6 8::+ compliance certi/cation Alt$oug$ commonly referred to as IS6 8:::<-::: certi/cations% t$e actual standard to #$ic$ an organi>ation's quality management can be certi/ed is IS6 8::+<-::: *ot$ t$e accreditation bodies and t$e certi/cation bodies c$arge fees for t$eir services !$e various accreditation bodies $ave mutual agreements #it$ eac$ ot$er to ensure t$at certi/cates issued by one of t$e Accredited .erti/cation *odies 2.*3 are accepted #orld4#ide !$e applying organi>ation is assessed based on an extensive sample of its sites% functions% products% services and processes; a list of problems 2,action requests, or ,non4compliances,3 is made 1no#n to t$e management If t$ere are no major problems on t$is list% t$e certi/cation body #ill issue an IS6 8::+ certi/cate for eac$ geograp$ical site it $as visited% once it receives a satisfactory improvement plan from t$e management s$o#ing $o# any problems #ill be resolved An IS6 certi/cate is not a once4and4for4all a#ard% but must be rene#ed at regular intervals recommended by t$e certi/cation body% usually around t$ree years In contrast to t$e .apability "aturity "odel t$ere are no grades of competence #it$in IS6 8::+
Quality a$a"d# Bald"ige A$a"d !$e "alcolm *aldrige Oational Quality A#ard #as created by Public Ba# +::4+:L% signed into la# on August -:% +8ML !$e A#ard Program% responsive to t$e purposes of Public Ba# +::4 +:L% led to t$e creation of a ne# public4private partners$ip Principal support for t$e program comes from t$e 0oundation for t$e "alcolm *aldrige Oational Quality A#ard% establis$ed in +8MM
!$e A#ard is named for "alcolm *aldrige% #$o served as Secretary of .ommerce from +8M+ until $is tragic deat$ in a rodeo accident in +8ML (is managerial excellence contributed to long4term improvement in eCciency and eGectiveness of government !$e 0indings and Purposes Section of Public Ba# +::4+:L states t$at<, + !$e leaders$ip of t$e ?nited States in product and process quality $as been c$allenged strongly 2and sometimes successfully3 by foreign competition% and our Oation's productivity gro#t$ $as improved less t$an our competitors' over t$e last t#o decades - American business and industry are beginning to understand t$at poor quality costs companies as muc$ as -: percent of sales revenues nationally and t$at improved quality of goods and services goes $and in $and #it$ improved productivity% lo#er costs% and increased pro/tability = Strategic planning for quality and quality improvement programs% t$roug$ a commitment to excellence in manufacturing and services% are becoming more and more essential to t$e #ell4being of our Oation's economy and our ability to compete eGectively in t$e global mar1etplace
Page 4/ of 49 Improved management understanding of t$e factory )oor% #or1er involvement in quality% and greater emp$asis on statistical process control can lead to dramatic improvements in t$e cost and quality of manufactured products 9 !$e concept of quality improvement is directly applicable to small companies as #ell as large% to service industries as #ell as manufacturing% and to t$e public sector as #ell as private enterprise J In order to be successful% quality improvement programs must be management4led and customer4oriented% and t$is may require fundamental c$anges in t$e #ay companies and agencies do business L several major industrial nations $ave successfully coupled rigorous private4sector quality audits #it$ national a#ards giving special recognition to t$ose enterprises t$e audits identify as t$e very best; and M A national quality a#ard program of t$is 1ind in t$e ?nited States #ould $elp improve quality and productivity by< a (elping to stimulate American companies to improve quality and productivity for t$e pride of recognition #$ile obtaining a competitive edge t$roug$ increased pro/ts; b Hecogni>ing t$e ac$ievements of t$ose companies t$at improve t$e quality of t$eir goods and services and providing an example to ot$ers; c Establis$ing guidelines and criteria t$at can be used by business% industrial% governmental% and ot$er organi>ations in evaluating t$eir o#n quality improvement eGorts; and d Providing speci/c guidance for ot$er American organi>ations t$at #is$ to learn $o# to manage for $ig$ quality by ma1ing available detailed information on $o# #inning organi>ations #ere able to c$ange t$eir cultures and ac$ieve e minence, 0ollo#ing t$e receipt of t$e A#ard applications% t$e /rst step of t$e A#ard process revie# cycle begins #it$ t$e Independent Hevie#% in #$ic$ members of t$e *oard of Examiners are assigned to eac$ of t$e applications Eac$ application is evaluated independently by Examiners% #$o #rite observations relating to t$e Scoring System All applicants are t$en sent t$roug$ a .onsensus Hevie# A team of Examiners% led by a Senior Examiner% conducts a series of revie#s% /rst managed virtually t$roug$ a secure 5eb site and eventually concluded t$roug$ a focused conference call !$e purpose of t$is series of revie#s is for t$e team to reac$ consensus on comments and scores t$at capture t$e teamDs collective vie# of t$e applicantDs strengt$s and opportunities for improvement based on t$e inputs from t$e Independent Hevie# After t$e .onsensus Hevie# process% t$e Panel of 7udges selects applicants to receive site visits based upon t$e scoring pro/les If an applicant is not selected for Site Xisit Hevie#% one of t$e Examiners on t$e .onsensus !eam edits t$e /nal consensus report% #$ic$ becomes t$e feedbac1 report Site visits are conducted for t$e $ig$est4scoring applicants to clarify any uncertainty or confusion t$e Examiners may $ave regarding t$e #ritten application and to verify t$at t$e information in t$e application is correct
Page 44 of 49 After t$e site visit is completed% t$e team of Examiners prepares a /nal site visit scoreboo1 Applications% consensus scoreboo1s% and site visit scoreboo1s for all applicants receiving site visits are for#arded to t$e Panel of 7udges !$e 7udges ma1e /nal recommendations on #$ic$ applicants s$ould receive t$e A#ard 0ollo#ing t$e 7udgesD revie# and recommendations of A#ard recipients% t$e Site Xisit !eam Beader edits t$e /nal site visit scoreboo1% #$ic$ becomes t$e feedbac1 report !$e "alcolm *aldrige Oational Quality A#ard is given by t$e ?nited States Oational Institute of Standards and !ec$nology !$roug$ t$e actions of t$e Oational Productivity Advisory .ommittee c$aired by 7ac1 rayson% it #as establis$ed by t$e "alcolm *aldrige Oational Quality Improvement Act of +8ML 4 Public Ba# +::4+:L and named for "alcolm *aldrige% #$o served as ?nited States Secretary of .ommerce during t$e Heagan administration from +8M+ until $is +8ML deat$ in a rodeo accident APQ. organi>ed t$e /rst 5$ite (ouse .onference on Productivity% spear$eading t$e creation and design of t$e "alcolm *aldrige Oational Quality A#ard in +8ML% and jointly administering t$e a#ard for its /rst t$ree years !$e program recogni>es quality service in t$e business% $ealt$ care% education% and nonpro/t sectors and #as inspired by t$e ideas of !otal Quality "anagement or !Q" !$is is t$e only quality a#ard t$at is actually a#arded by t$e President of t$e ?nited States !$is a#ard and t$e Hon *ro#n A#ard are t$e t#o ?S presidential a#ards given to corporations !$e original stated purposes of t$e a#ard #ere to< promote quality a#areness • •
recogni>ing quality ac$ievements of t$e ?S companies
•
publici>e successful quality strategies
!$e current a#ard criteria are stated to $ave t$ree important roles in strengt$ening ?S competitiveness< !o $elp improve organi>ational performance practices% capabilities and results • •
•
!o facilitate communication and s$aring of t$e best practice information among ?S organi>ations of all types !o serve as a #or1ing tool for understanding and managing performance and for guiding planning and opportunities for learning
!$e criteria are designed to $elp organi>ations use an aligned approac$ to organi>ational performance management t$at results in< &elivery of ever4improving value to customers% contributing to mar1et success • •
Improvement in overall organi>ational eGectiveness and capabilities
•
6rgani>ational and personal learning
!$e seven categories of t$e criteria are< + Beaders$ip - Strategic Planning = .ustomer N "ar1et 0ocus "easurement% Analysis and @no#ledge "anagement 9 5or1force 0ocus J Process "anagement L Hesults
Page 42 of 49 !$e a#ard is presented to companies in t$ree categories< manufacturing% service and small businesses Evaluations done on a +::: point system categori>ed under seven parts as given belo#
%eing# ,"iCe !$e &eming pri>e% establis$ed in &ecember +89: in $onor of 5 Ed#ards &eming% #as originally designed to re#ard 7apanese companies for major advances in quality improvement 6ver t$e years it $as gro#n% under t$e guidance of 7apanese ?nion of Scientists and Engineers 27?SE3 to #$ere it is no# also available to non47apanese companies% albeit usually operating in 7apan% and also to individuals recogni>ed as $aving made major contributions to t$e advancement of quality !$e a#ards ceremony is broadcast every year in 7apan on national television !#o categories of a#ards are made annually% t$e &eming Pri>e for Individuals and t$e &eming Application Pri>e !$e 5 Ed#ards &eming Institute states t$at !$e &eming Pri>e is a#arded to companies% or divisions of companies% #$ic$ $ave demonstrated a distinctive performance improvement t$roug$ t$e application of !Q" in a given year !$e &eming Pri>e is also a#arded to companies t$at improved t$eir application of quality control and quality management #it$ t$e pursuit of !Q" in a given year
!$e &eming Application Pri>e .$ec1list + Policies 2+3 Quality and quality control policies and t$eir place in overall business management 2-3 .larity of policies 2targets and priority measures3 2=3 "et$ods and processes for establis$ing policies 23 Helations$ip of policies to long 4 and s$ort 4 term plans 293 .ommunication 2deployment3 of policies% and grasp and management of ac$ieving policies 2J3 Executives and managers leaders$ip - 6rgani>ation 2l3 Appropriateness of t$e organi>ational structure for quality control and status of employee involvement 2-3 .larity of aut$ority and responsibility 2=3 Status of interdepartmental coordination 23 Status of committee and project team activities 293 Status of staG activities 2J3 Helations$ips #it$ associated companies 2group companies% vendors% contractors% sales companies% etc3 = Information 2l3 Appropriateness of collecting and communicating external information 2-3 Appropriateness of collecting and communicating internal information 2=3 Status of applying statistical tec$niques to data analysis 23 Appropriateness of information retention 293 Status of utili>ing information 2J3 Status of utili>ing computers for data processing
Page 45 of 49 Standardi>ation 2l3 Appropriateness of t$e system of standards 2-3 Procedures for establis$ing% revising and abolis$ing standards 2=3 Actual performance in establis$ing% revising and abolis$ing standards 23 .ontents of standards 293 Status of utili>ing and ad$ering to standards 2J3 Status of systematically developing% accumulating% $anding do#n and utili>ing tec$nologies 9 (uman resources 2l3 Education and training plans and t$eir development and results utili>ation 2-3 Status of quality consciousness% consciousness of managing jobs% and understanding of quality control 2=3 Status of supporting and motivating self4development and self4reali>ation 23 Status of understanding and utili>ing statistical concepts and met$ods 293 Status of Q. circle development and improvement suggestions 2J3 Status of supporting t$e development of $uman resources in associated companies J Quality assurance 2l3 Status of managing t$e quality assurance activities system 2-3 Status of quality control diagnosis 2=3 Status of ne# product and tec$nology development 2including quality analysis% quality deployment and design revie# activities3 23 Status of process control 293 Status of process analysis and process improvement 2including process capability studies3 2J3 Status of inspection% quality evaluation and quality audit 2L3 Status of managing production equipment% measuring instruments and vendors 2M3 Status of pac1aging% storage% transportation% sales and service activities 283 rasping and responding to product usage% disposal% recovery and recycling 2l:3 Status of quality assurance 2++3 rasping of t$e status of customer satisfaction 2l-3 Status of assuring reliability% safety% product liability and environmental protection L "aintenance 2l3 Hotation of management 2P&.A3 cycle control activities 2-3 "et$ods for determining control items and t$eir levels 2=3 In4control situations 2status of utili>ing control c$arts and ot$er tools3 23 Status of ta1ing temporary and permanent measures 293 Status of operating management systems for cost% quantity% delivery% etc 2J3 Helations$ip of quality assurance system to ot$er operating management systems M Improvement 2l3 "et$ods of selecting t$emes 2important activities problems and priority issues3 2-3 Bin1age of analytical met$ods and intrinsic tec$nology 2=3 Status of utili>ing statistical met$ods for analysis 23 ?tili>ation of analysis results 293 Status of con/rming improvement results and transferring t$em to maintenanceKcontrol activities 2J3 .ontribution of Q. circle activities
Page 46 of 49
8 EGects 2l3 !angible eGects 2suc$ as quality% delivery% cost% pro/t% safety and environment3 2-3 Intangible eGects 2=3 "et$ods for measuring and grasping eGects 23 .ustomer satisfaction and employee satisfaction 293 In)uence on associated companies 2J3 In)uence on local and international communities l: 0uture plans 2l3 Status of grasping current situations 2-3 0uture plans for improving problems 2=3 Projection of c$anges in social environment and customer requirements and future plans based on t$ese projected c$anges 23 Helations$ips among management p$ilosop$y% vision and long4term plans 293 .ontinuity of quality control activities 2J3 .oncreteness of future plans !(E &E"IO APPBI.A!I6O PHIZE .(E.@BIS! 206H SEOI6H EE.?!IXES3 l ?nderstanding 2l3 Are t$e objectives of quality control and ent$usiasm introduction and promotion clearly de/ned and #ell understood 2-3 (o# #ell do t$ey understand quality control% quality assurance% reliability% product liability% etc 2=3 (o# #ell do t$ey understand t$e importance of t$e statistical #ay of t$in1ing and t$e application of quality control tec$niques 23 (o# #ell do t$ey understand Q. circle activities 293 (o# #ell do t$ey understand t$e relations$ip of quality control and t$e concepts and met$ods of ot$er management activities 2J3 (o# ent$usiastic are t$ey in promoting quality control (o# #ell are t$ey exercising leaders$ip 2L3 (o# #ell do t$ey understand t$e status and t$e c$aracteristics of t$eir company's quality and quality control - Policies 2l3 (o# are quality policies and quality control policies establis$ed 5$ere and $o# do t$ese policies stand in relation to overall business management 2-3 (o# are t$ese policies related to s$ort4 and long4term plans 2=3 (o# are t$ese policies deployed t$roug$out t$e company for t$eir ac$ievement 23 (o# do t$ey grasp t$e status of policy ac$ievement Are t$ey ta1ing appropriate corrective actions #$en needed 293 (o# do t$ey grasp priority quality issues 2priority business issues3 &o t$ey ma1e eGective use of diagnostic met$ods suc$ as top management diagnosis 2J3 (o# #ell are targets and priority measures aligned #it$ policies 2L3 5$at 1ind of policies do t$ey employ for establis$ing cooperative relations$ips #it$ associated companies = 6rgani>ation 2l3 (o# is t$e company organi>ed and managed to $uman resources eGectively and eCciently practice quality control 2-3 (o# are t$e aut$orities and responsibilities in t$e organi>ation establis$ed
Page 48 of 49 2=3 Is t$e allocation of $uman resources suitable for t$e organi>ation 23 (o# do t$ey strive to ma1e employers $appy and satis/ed 293 (o# do t$ey grasp and evaluate employees capability and motivation levels 2J3 (o# do t$ey strive interdepartmental cooperation (o# do t$ey utili>e committees and project teams 2L3 (o# do t$ey relate to associated companies (uman resources 2l3 (o# clear is t$e p$ilosop$y for $iring% development developing and utili>ing $uman resources 2-3 (o# appropriate are t$e employee education and training plans Are t$e necessary budget and time allocated 2=3 (o# do t$ey communicate t$e policies for quality control education and training and $o# do t$ey grasp t$e status ac$ieving t$eir policies 23 (o# do t$ey provide education and training speci/c to t$e company's business needs 293 (o# #ell do t$ey understand t$e importance of employee self4 and mutual4development (o# do t$ey support t$is eGort 2J3 (o# do t$ey strive to develop Q. circle activities 2L3 (o# interested are t$ey in developing $uman resources in associated companies 9 Implementation 2l3 5$at 1ind of measures do t$ey $ave for t$e eGective evaluation and eCcient implementation of quality control 2-3 (o# #ell is t$e overall coordination of quality control and ot$er manageme nt systems 2=3 (o# do t$ey grasp t$e status of improvement in t$e business processes and t$e individual steps of t$ese processes so as to provide products and services t$at satisfy t$e customer needs Are t$ey ta1ing necessary corrective actions 23 (o# #ell are t$e systems for developing ne# products and services% ne# tec$nologies and ne# mar1ets establis$ed and managed 293 (o# #ell are t$e necessary resources secured and allocated for establis$ing and operating management and information systems 2J3 (o# do t$ey grasp t$e eGects and contributions of quality control to t$e improvement of business performance 2L3 (o# do t$ey evaluate t$eir employeeDs eGorts J .orporate social 2l3 Is t$e company structured to ensure responsibilities appropriate pro/ts for a long time 2-3 (o# #ell do t$ey regard employer #ell being 2#age levels% #or1ing $ours% etc3 2=3 (o# #ell do t$ey regard employee self4reali>ation 23 (o# #ell do t$ey strive for co4existence and co4prosperity #it$ associated companies 293 (o# #ell does t$e company contribute to t$e local community 2J3 (o# #ell does t$e company exert eGorts to protect t$e environment 2L3 (o# #ell does t$e company positively impact t$e international community L 0uture visions 2l3 (o# do t$ey assure t$e continuity of and future plans quality control 2-3 (o# do t$ey anticipate and cope #it$ c$anges in surrounding business environment and progress in science and tec$nology 2=3 (o# do t$ey grasp and cope #it$ c$anges in customer requirements
