TQM

2012

TOTAL QUALITY MANAGEMENT 3rd Semester MBA Elective Organization wide effort to develop the systems, tools, techniques, skills and mindset required to establish a quality assurance system that is responsive to emerging market needs

G.ANILKUMAR TKMCE 1/1/2012

rd

3 Semester MBA

Elective: Operations

TOTAL QUALITY MANAGEMENT

Total Quality Management Management

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UNIT I An overview and role of TQM- classical definition of quality – product satisfaction- product dissatisfaction trends in change management and role TQM TQM

Total quality management can be defined as an organization wide effort to develop the systems, tools technique, skills and mindset required to establish a quality assurance system that is responsive to emerging market needs The total quality management calls for radical change in the thinking among employees. First the term total connotes every one, everywhere and every time TQM can be thought of as involving every one and every aspects of an organization in continuous improvement through team work. It is an approach for Gaining or sustaining competitive advantage Excellent techniques-

customer focused.

Excellent methods—

Quality driven

Excellent people ---

improvement oriented


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Quality

The word quality is recognized by most people and in general speech is used to describe excellence, value, reliability or goodness. Why is quality management important? >> Because of completion Definitions


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 

 

Conformance to specifications – specifications – focus on manufacturing process Fulfilling customer needs- customers perceptions and preferences are taken into consideration Fitness for use Attaining Zero defects (ppm, ppb)

Dimensions of quality

1. 2. 3. 4. 5. 6. 7. 8.

Aesthetics Conformance Durability Features Performance Reliability Safety Serviceability

Quality is both qualitative (consumer perspective by experience and intangible issues) and quantitative (manufacturers perspective)

fitness for use

conformanc

Minimization of loss to society

fulfillment of customer needs

e to specification

QUALITY IMPROVEMENT APPROACHES EVOLUTION

• • • • •

Inspection of finished items Product Certification ( BIS, AGMARK) Quality Assurance/Quality Assurance/Quality SystemSystem- (ISO 9000, CMM 5) SPC TQM/TPM


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•

Six Sigma/ LM

Quality cost

Quality costing is a technique by which all the costs related to the delivering of quality are captured and classified for evaluation of management efforts in an organization

QUALITY COSTS

CONTROL COSTS

PREVENTION

FAILRE COSTS

APPRAISAL

EXTERNAL

INTERNAL

Classification of quality costs

Employee Involvement & Team work -Use of Small group improvement projects


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Product satisfaction and dissatisfaction

Customers usually recognize good quality not by a set of attributes but by experience and intangible issues. Thus a customer using similar products from two competitors will find it much easier to rate one to be of better quality than the other


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The international market for any product is now mature- the products or services offered by different companies are basically same. As a result the basis of competition is increasingly the quality of the product or service. There is no conflict between quality and price as more and more organizations realize that in the long term quality goods and actually cost less. 1. Hence it can be seen that satisfaction and dissatisfaction of a product is basically dependent upon its quality. The degree of satisfaction or dissatisfaction dissatisfaction is based on the various dimensions dimensions of quality such as Aesthetics Conformance ,Durability, Features, Features, Performance,Reliability,Safety,S Performance,Reliability,Safety,Serviceability erviceability Change management

Change management is a structured approach for transforming to individuals, teams and organizations from a current state to a desired future state. It is an organizational process aimed at helping employees to accept and embrace changes in their current business environment

• • • •

The manager has a responsibility to facilitate and enable change Workshops are very useful processes to develop collective understanding, approaches, policies, methods, systems, ideas, etc tolerance and compassion from the leaders and executives Management and leadership style and behaviour are more important than clever process and policy. Employees need to be able to trust the organization

Change management principles

• • • • •

At all times involve and agree support from people within system Understand where you/the organization is at the moment. Understand where you want to be, when, why, and what the measures will be for having got there. Plan development towards above No.3 in appropriate achievable measurable stages. Communicate, involve, enable and facilitate involvement from people, as early and openly and as fully as is possible.


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Kotler's eight step change model can be summarized as:

• • •

•

•

•

•

•

Increase urgency - inspire people to move, make objectives real and relevant. Build the guiding team - get the right people in place with the right emotional commitment, commitment, and the right mix of skills and levels. Get the vision right - get the team to establish a simple vision and strategy focus on emotional and creative aspects necessary to drive service and efficiency. Communicate for buy-in - Involve as many people as possible, communicate the essentials, simply, and to appeal and respond to people's needs. De-clutter communications - make technology work for you rather than against. Empower actions - Remove obstacles, enable constructive feedback and lots of support from leaders - reward and recognise progress and achievements. Create short-term wins - Set aims that are easy to achieve - in bite-size chunks. Manageable numbers of initiatives. Finish current stages before starting new ones. Don't let up - Foster and encourage determination and persistence ongoing change - encourage ongoing progress reporting - highlight achieved and future milestones. Make change stick - Reinforce the value of successful change via recruitment, promotion, new change leaders. Weave change into culture


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Unit II Philosophical approach of TQM- Eastern and western approachesmethodological approaches to TQM- Deming, Juran, Crossby and others Methodological Approaches

• QUALITY CIRCLES • • • • • • •

By 1968, Kaoru Ishikawa, one of the fathers of TQC in Japan, had outlined the elements of TQC management, Quality comes first, not short-term profits. The customer comes first, not the producer. Customers are the next process with no organizational barriers. Decisions are based on facts and data. Management is participatory and respectful of all employees. Management is driven by cross-functional committees committees covering product planning, product design, production planning, purchasing, manufacturing, sales, and distribution (Ishikawa 1975)

 The introduction of quality circles in Japan in the postwar years was

inspired by the lectures of W. Edwards Deming (1900-1993), a statistician for the U.S. Noting that American management had typically given line managers and engineers about 85 percent of responsibility for quality control and only about 15 percent to production workers, Deming argued that these shares should be reversed. Quality Circle as “a small group of employees doing similar or related work who meet regularly to identify, analyze and solve product quality and production problems and to improve general operations. The circle is a relatively autonomous unit (ideally about ten workers) usually led by a supervisor or a senior worker and organized as a work unit”.  Contributions of Quality Circles towards 4M’s According to F. Talib (2003) the Quality Circles have contributed towards various projects in order to increase the productivity of Man, Machines, Material and Methods.  Man -36%

Machine-29%


Material-21%

Methods-14%

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Attributes of Quality Circle Quality Circle concept has three major attributes:  Quality circle is a form of participation management  Quality circle is a human resource development technique  Quality circle is a problem solving technique

Scope of Quality Circle activities

According to the International Quality Management System, the areas of improvement include  Work area  Working environment  Methods of working / manufacturing  Products & services

Q.C Goals that serve the Organization  To improve the quality of the product manufactured or service provided.  To reduce the costs of the product or service.  To increase productivity by solving problems that interferes with

production.  To improve communication within the organization. Goals serving the interests of the Employees  To permit employees to use a greater amount of knowledge and skill.  To provide a vehicle whereby relationships among workers improve.  To provide the opportunity to gain more control over their work by

allowing them more input to factors that affect it.  To enrich jobs through greater involvement in the work progress. Role of Management  The top management must be committed to providing all the support,

encouragement and necessary, infrastructure for QC activities  The middle management should make themselves knowledgeable and up-to-date about the concepts and working of the QCs, They should


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make themselves responsive to the ideas and contributions by one and all at the shop floor. Structure of Quality Circles  A steering committee: This is at the top of the structure. It is headed by



  

a senior executive and includes representatives from the top management and human human resources resources development. development. It establishes the policy, plans and directs the program and meets usually once in a month. Coordinator: He may may be a Personnel or Administrative Administrative officer officer who co- ordinates and supervises the work of the facilitators and administers the program Facilitator: He may be a senior supervisory officer, he co-ordinates the work of several quality circles through the Circle leaders. Circle leader: Leaders may be from the lowest level workers or Supervisors. A circle leader organizes and conducts Circle activities. Circle members: They may be staff workers. Without circle members the program cannot exist. They are the lifeblood of quality circles. They should attend all meetings as far as possible, offer suggestions and ideas, participate actively in-group process and take training seriously with a receptive attitude

Training & motivation  Training should also comprise of:  Brief orientation program for top management  Program for middle level executives  Training of facilitators  Training for circle leaders and members

Apart from the training program as basic tool of QC, various means as given below may be followed for motivating the workers to undertake QC activities:  Formal presentation of the case studies by the workers themselves    

before the management Publication and distribution of in-house case study volumes Publication in House Magazine Awards for good case studies Recording in personnel file


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g roups) in major forums  Participation of the workers (in small groups) Process  Problem Identification  Problem Analysis  Problem Selection

Implementation of the solution  Implementation  Select the most appropriate solution  Generate Alternate Solutions  Prepare Plan of Action  Presentation to management

QUALITY GURUS William Edward Deming (1949-1958 in Japan). He is considered to be the father of Japanese quality management system. In recognition of his contribution, the highest honour for excellence in quality management, The Deming Prize is named after him. Deming proposed a four –step process PLANDO- CHECK-ACT, popularly known as PDCA cycle. Deming also proposed a 14point agenda for quality improvement. Joseph.M.Juran: - Juran visited Japan immediately after Deming and imparted to Japanese Executives the key principles behind quality management. Juran proposed simple definition for quality “Fitness for use”. His approach to quality management focuses on three important aspects known as Juran’s Trilogy

• • •

Quality planning- process of preparing to meet quality plan Quality control – the process of making quality goals during operations Quality Improvement Improvement - The process of breaking through to Unprecedented levels of performance

Philip.B.Crossby:- Philip .B. Crossby was the vice president for quality at International Telephone and Telegraph in Japan for 14 years. The essentials of Crossby’s quality philosophy are embodied in what he calls the absolutes of quality management.  Absolute I: Definition of quality is conformation of standards.

I: System of quality is prevention.  Absolute I:  Absolute III: The performance standard is zero defects.


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 Absolute IV : Measurement of quality is the prize of non conformance  Absolute V: There is no such thing as a quality problem.

Crossby introduced the notion of zero defect performance and hence popularize the phrase “do it right the first time”. Karou Ishikawa : He was the most prominent figure in Japanese quality management until his death in 1989. Dr. Ishikawa influenced the development of a participative, bottom- up approach to quality management. He promoted the concept of company wide quality through use of quality control circle (QC). He also proposed the fish bone diagram to analyze quality problems problems at the work place. Shigeo Shingo : Shingo’s primary contribution to quality management is to suggest an approach for complete elimination of error. He proposed a method called POKA- YOKE or mistake proofing for eliminating defects once and for all. Genichi Taguchi: Taguchi’s focus was on achieving quality by reducing variation in processes. Taguchi proposed a three stage approaches to the design process

1] System design

2] Parameter design


3] Tolerance design.

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Unit III Tools of TQM- Diagnostic- 7 tools of analysis- old and newcybernetic analysis Basic Tools of QC

The greatest strength of management system such as TM is the emphasis laid on using simple yet powerful tools for tracking various aspects relate to quality management. The QC tools fall under five broad categories.

• • • • •

Tools for high lighting quality problem Tools for identifying specific improvement opportunities Tools for analyzing problem and their root causes Tools for operational planning Tools for strategic planning

The workers should be given in-depth exposures to basic QC techniques (i.e. 7 basic tools of QC), which are as follows: 1. Stratification 2. Check-sheets 3. Pareto analysis 4. Cause & Effect diagram 5. Histogram /Frequency distribution 6. Control charts / graphs 7. Scatter diagram


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Quality Management Tools – a classification

Histogram It is a simple method of graphically representing the frequency distribution of multiple attributes of interest. Based on a simple count of occurrences of each attribute, a histogram can be constructed. The value of histogram lies in its ability to portray various causes pertaining to the problem as well as the magnitude of these causes. The power of histograms lies in its ability to trigger the quality Manager and the employees to further investigate the root causes of the problem. The visual appeal of histogram is much greater than data arranged in a tabular form alongside.


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Pareto Diagram Pareto diagram is a method by which clear cut priorities are established for directing the improvement effect. It is similar to histograms, but the data are plotted in a decreasing or increasing order of occurrence to obtain an importance/ priorities of improvement.

Cause effect l/Fish bone /Ishikawa Diagram It is a generic methodology developed to trace the problems to their root causes. A fishbone diagram helps the quality improvement team to analyze problems in a structured manner and identify the root causes.


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CEDAC- CAUSE EFFECT DIAGRAM ACTION CHARTS It is a variation of cause effect diagram where the brainstorming process is left open to all employees of the organization by adding two sets of colour code cards known as problem card and solution card. An employee who thinks that he/she knows what the problem or solution to the problem could well pick up an appropriate card and write the suggestions and affix it at the appropriate leg of the fish bone. It enables all the employees in an organization to make full use of their accumulated knowledge and experience and helps to change the organizational culture by empowering people to fully participate in the continuous improvement process Poka Yoke Poka Yoke is the Japanese word for mistake proofing of operations. Shigeo Shingo proposed this method while he improved the Toyota Production System. The basic principle behind this method is that several defects that creep in to operations are usually avoidable. Errors and defects have cause and effect relation ship. If errors are not eliminated they will become defects. The root causes could be eliminated by re-designing the operations and incorporating methods by which the process will not allow the errors to happen in future. Matrix Diagram It is one of the quality management tools used in operational planning and for building quality into products and services.


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Seven New tools of analysis

1) 2) 3) 4) 5) 6) 7)

Affinity Diagram Relationship Diagram Tree Diagram Matrix Diagram Matrix Data Analysis Process Decision Progress Chart (PDPC) Arrow Diagram

Affinity diagram:- Grouping ideas according to family--a creative brain storming tool Interrelations digraph:- To map logical links of a central idea to more than one idea at a time--- Lateral thinking than linear thinking


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Tree diagram:- Maps paths & tasks to achieve a goal Matrix diagram:- Spread sheet/ graphically displays relations between tasks and functions , House of quality. Matrix data analysis:-Matrix in the form of quantitative factor analysis Process decision program chart :- maps every conceivable event from problem statement to solution and counter measures. Arrow diagrams:-PERT/CPM

TQM techniques

• • • • • • • •

Bench marking Nominal group technique 5 Ws and 1 how Cost of quality QFD(Quality Function Deployment) FMEA(Failure Modes & effects Analysis) Force field analysis VE/VA(Value engineering & Value analysis

Steps in Nominal Group Technique

• • • • • • • •

Read problem statement Problem clarification Silent idea generation Round robin idea generation Idea clarification Idea grouping Individual ranking of first 6 ideas Compilation of idea ranking by all, by Facilitator

FMEA Analyses ways of failure of a product and its effect of each mode using 3 criteria on 5 pt scale

• •

severity Probability of occurrence(MTBF)


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•

Ease of detection of failure

Items of higher Total scores are to be dealt with on priority Force field analysis

• • • • •

Kurt Levin in 1920s To identify the forces (pressures) for and against changes. Participation and sense of ownership Forces for forces against What can be done to strengthen forces for and weaken forces against

VE/VA

• •

Better value to customer at lower cost Ex; plastics replacing in automobiles

Steps

• • • • • •

Gather information Functional identification’ Functional analysis Creative alternatives analysis &evaluation Implementation

Read Edward de Bono, six thinking hats, penguin,1990

7 wastes

• • • • • • •

Overproduction Waiting Transporting Inappropriate processing (poor process capability) Unnecessary inventory Unnecessary motion defects


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Cybernetic Analysis

Cybernetics" comes from a Greek word meaning "the art of steering". Cybernetics is about having a goal and taking action to achieve that goal. Knowing whether you have reached your goal (or at least are getting closer to it requires "feedback", "feedback", a concept that comes from cybernetics


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Unit IV Overview of other developments in TQM, TQM, QFD-TPM- ISO-CMM- Bench marking- six sigma- leadership management for TQM Continuous Improvement  Continuous improvement  Refers to constant and positive change in the working conditions in an         

operating system Leading to better performance evident from key performance measures Typical examples of such improvements Increase in production with no addition of capacity, Elimination of manpower even when production levels go up No appreciable increase in cost of production even when the volume drops Increase in the velocity of various business processes without any addition of new capacity or technology Significant reduction in defects Rework and inventory investments when the production rates g o up An overall increase in the productivity

Improvement in Operations-Alternative Trajectories Radical (Step) Improvement  raises the level of the system substantially at a point in time  Typically happen due to innovations in technology pertaining to the operations & substantial up-gradation of the capacity  Once a radical improvement is made, the system moves to a significantly higher level of performance

Continuous (Ramp) Improvement  Improvements made in small steps and on a continuous basis through a systematic study of the existing system and changes in the processes and procedures  Does not call for breakthrough innovations, large investment in capacity or radically new technology


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 Could

be applied in several areas of business including manufacturing, business processes in other areas such as marketing, finance and customer and supplier relationship

Hybrid Improvement  A combination of both in alternating cycles


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Continuous Improvement-Creating a context  Benchmarking Exercises 

Internal benchmarking  Competitor benchmarking  Process Benchmarking  TPM & TQM Initiatives  International Awards & Certifications  Industry Association initiatives  IMVP Example  CII’s initiatives in automotive cluster


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Continuous Improvement -Tools & Techniques  Process Mapping  A tool to understand various steps involved in performing a

business process  Non-Value Added (NVA) Analysis  A method by which the relevance of some of the existing activities are questioned  Business Process Engineering (BPR) Fundamental rethinking and radical redesign of processes  Kaizen Initiatives  Setup time reduction through SMED  QC Tools

 Activity Based Management (ABM) Process Mapping - Some alternatives o o o o

Customer order “walk through” Collaborative brainstorming/charting brainstorming/charting Bottom-up approach – Interviews of staff in functional departments Executive judgment

Reasons QC do not function well

•

• • • • • • • • •

According to the Quality Forum of the World Class Organization , infantile mortality failure of these QC circle has been found to be very high. Probing into such failures revealed that the following were the frequent modes of failures in general: By-passing top management. management. Not convincing top management. Non-committing Non-committing by top management. Lip sympathizing by top management. management. Mistrust by middle management. Disassociation Disassociation by middle management. By-passing the work force. Poor leadership in QC. Lack of team spirit and Non-Cooperation among the members in a QC


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• • •

Lack of proper guidance from the management in the face of difficulties experienced by a QC while pursuing a problem Lack of motivational measures for the QC members. Poor information feed-back mechanism.

A STUDY ON THE EFFECTIVENESS OF THE QUALITY CIRCLES AT HI – TECH ARAI LIMITED, MADURAI Company Profile  Started operations in 1985 with initial capital of Rs. 4.25 Lakhs  Technical Collaboration with Arai Seisakusho Company Limited, Japan  Joint Venture with Arai Seisakusho Company Limited, Japan  Company is a leader in the Oil Seals market with 70% market share  The company has a sales of Rs.190 Crore and PBT of Rs.30crores  Major Clients

– – – –

Yamaha TVS Maruti Udyog Piaggio

The products also serve export clients in Thailand, France, Indonesia, China and Italy  Vision

1993- To become the market leader in the country with in five years 1997- To become one of the top three in the world in the field of oil seals  Mission

To produce high quality products at competitive prices combined with on time delivery strictly adopting environmental friendly processes  Products

– – – –

‘O’ rings Oil Seals Reed valve assemblies Technically specified Molded Rubber Products


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 Quality Practices

– – – – –

Total quality management Poka yoke 5S practices ISO 9001:2000 ISO 14000

Objectives  To study the structure and working of the Quality Circles.  To study the employees attitude towards the functioning of the Quality

Circles  To study the level of Employee Improvement because of Quality Circles.  To study the impact of Quality Circles on the production performance of the organization  To study the impact of Quality Circles on the production performance of the organization Research Methodology

• • •

Plant visit and personal observation Discussion with executives in Quality and HR departments Questionnaires (2 types)

Questionnaires for the members of the Quality Circles Questionnaires for non-members

• • • •

Articles published in dailies and magazines Booklets Websites and Books on Quality Management and Research


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Employee perception towards the Quality Circle

1

2

3

4

5

Weighted Total

Weighted Average

%

Functioning of Q f QC

13

24

3

0

0

170

1 1 .3

85

Support f rom Supervisor

16

16

8

0

0

168

1 1 .2

84

Support f rom Top Management

11

S2 0

9

0

0

162

1 0 .8

81

Continuous Improvement

26

14

0

0

0

186

1 2 .4

93

Implementation time

18

15

7

0

0

171

1 1 .4

8 5 .5

Overall Perf ormance

33

7

0

0

0

193

1 2 .9

9 6 .5

Recommendation f or colleagues to jo jjoin QC

33

6

1

0

0

192

1 2 .8

96

Total


124 2

8 8 .7

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Major Findings

•

Attitude  Skill Development is the major factor that motivates the

employees to join the Quality Circle.


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 Foundation for Continuous Improvement

•

Employee Improvement  Teamwork, Leadership, Confidence, Credibility, Safety Awareness, and Communication  Problem Solving and Creativity are the areas where the employees need improvement

Conclusion

– QCs have improved the performance of the organization – QCs have also increased the proficiency of the employees – Positive attitude of the employees towards QCs Total Productive Maintenance (TPM) Practice of optimal maintenance of equipments for enhancing over all Equipment Efficiency (OEE). The focus is on for zero defects, zero waste, zero break down through total employee involvement, sense of ownership, management commitment, commitment, team work and continual improvement.

• •

• • •

• • •

TPM is a maintenance process developed for improving productivity by making processes more reliable and less wasteful. “Continuously improve all operational conditions, within a production system; by stimulating the daily awareness of all employees ” (by Seiichi Nakajima, Japan, JIPM) a) Efficient Equipment Utilization b) Efficient Worker Utilization c) Efficient Material & Energy Utilization TPM is a maintenance process developed for improving productivity by making processes more reliable and less wasteful. “Continuously improve all operational conditions, within a production system; by stimulating the daily awareness of all employees ” (by Seiichi Nakajima, Japan, JIPM) a) Efficient Equipment Utilization b) Efficient Worker Utilization c) Efficient Material & Energy Utilization TPM focuses primarily on manufacturing (although its benefits are applicable to virtually any "process") and is the first methodology Toyota used to improve its global position (1950s). After TPM, the focus was stretched, and also suppliers and customers were involved (Supply Chain), this next methodology was called lean manufacturing


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Pillars of TPM

• • • • •

•

• •

•

1) Focused improvement (Kobetsu Kaizen) - Continuously even small steps of improvement. 2) Planned Maintenance - It focuses on Increasing Availability of Equipments & reducing Breakdown of Machines. 3) Initial Control - To establish the system to launch the production of new product & new equipment in a minimum run up time. 4) Education & Training - Formation of Autonomous workers who have skill & technique for autonomous maintenance. 5) Autonomous Maintenance (Jishu Hozen) - It means "Maintaining one's equipment by oneself". There are 7 Steps in & Activities of Jishu Hozen 6) Quality Maintenance (Hinshitsu Hozen) - Quality Maintenance is establishment of machine conditions that will not allow the occurrence of defects & control of such conditions is required to sustain Zero Defect. 7) Office TPM - To make an efficient working office that eliminate losses 8) Safety, Hygiene & Environment - The main role of SHE (Safety, Hygiene & Environment) is to create Safe & healthy work place where accidents do not occur, uncover & improve hazardous areas & do activities that preserve environment Other Pillars : Tools Management - To increase the availability of Equipment by reducing Tool Resetting Time, To reduce Tool Consumption Cost & to increase the tool life.

• • • • • • •

Zero accident Pillars 1 to 5 Zero defects Pillars 1 to 7 Zero accidents Pillars 2,4,7 and 8 Indian TPM journey started in 1991 when Vikram Cements initiated TPM consulting through JIPM, the then JIPM Solutions Co Ltd with Mr. Sueo Yamaguchi as their consultant. From them on there has been no stopping for the Indian TPM Journey. Journey. Today, 20 years later, more than 10 Japanese consultants and 9 CII – TPM Club India Counselors are


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providing TPM consulting support to over 200 companies, making India the largest known TPM practicing country in the world outside Japan. Growth of TPM in a company : – Levels of Awards

• • • • • •

Award for TPM Excellence – Category A & B Award for Excellence in Consistent TPM Commitment Special Award for TPM Achievement Advanced Special Award for TPM Achievement Award for World-class TPM Achievement

TPM Companies in India ABI Showtech (Ind) Ltd, Sholingur,Hindustan Lever Ltd, Khaliabad ,Beverages factory Munjal Showa Limited, Manesar, Aditya Cements Hindustan Lever Ltd, Khamagaon Munjal Showa Ltd, Aquasub (Aqua group) Hindustan Lever Ltd, Kidderpor ,National Engg Industries Ltd, Jaipur ,Aradhana Soft Drinks., Hindustan Lever Ltd, Mangalore, National Engg Industries Ltd, Newai Plant, Asahi India India Glass Limited, Hindustan Lever Ltd, Mysore Beverages, Beverages, Orient Cements, AVTEC Ltd, Power Unit Plant, (Hindustan Motors Ltd) Pithampur , Hindustan Lever Ltd, Nashik factory ,PepsiCo India Holdings Private Ltd, Bajaj Auto Ltd, Akurdi Plant, Pune TPM Implementation


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Quality Function Deployment  The process of incorporation of the Voice of the Customers into the

design and development of a certain product and service and subsequently standardization of the process of manufacturing.  Quality Function Deployment is a design planning process driven by customer requirements.  QFD deploys “The Voice of the Customer” throughout the organization.  QFD uses planning matrices -- each called “The House of Quality”. History of QFD

•

1960’s, Yoji Akao conceptualized QFD. Statistical Quality Control, SQC, was the central quality control activity after WWII. SQC became Total Quality Control, TQC. QFD was derived from TQC. First Application of QFD

• •

1966, Bridgestone Tire Corp first used a process assurance table. 1972, the process assurance table was retooled by Akao to include QFD process.


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• •

1972, Kobe Shipyards (of Mitsubishi Heavy Industry) began a QFD Oil Tanker project. The QFD institute was formed in 1994. What Does QFD Require?

•

QFD requires time, effort, and patience. QFD requires access to stakeholder groups. The benefits of QFD are not realized immediately. Usually not until later in the project or the next project. QFD requires full management support. Priorities for for the QFD process cannot cannot change if benefits are to be realized. Why use QFD?

•

The QFD process leads participants to a common understanding of project direction and goals. QFD forces organizations to interact across their functional boundaries. QFD reduces design changes. How QFD works?

– – – –

market analysis to establish needs and expectations examination of competitors abilities identification identification of key factors for success translation of key factors into product and process characteristics

Characteristics of QFD

4 Main Phases to QFD 

  

Product Planning including the ‘House of Quality’ (Requirements Engineering Life Cycle) Product Design (Design Life Cycle) Process Planning (Implementation Life Cycle) Process Control (Testing Life Cycle)


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Process of QFD

Phases of QFD

•

•

•

•

Product planning – wishes of customer transferred to product – evaluation of competitor products identification of important properties – identification Product design – choose best design to fulfill targets – identify critical parts and components – further R&D if needed. Process design – critical parameters identified – process control/improvement methods set Production design – design instructions for production – define measurements, frequency frequency and tools to be used


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The House of Quality (HoQ)

HoQ is a set of matrices which contains the requirements (What’s) and the detailed information to achieve those requirements (How’s, How Much’s). Stakeholder groups fill in the matrices based on their priorities and goals Key Items to Address in HoQ

• • • • • • • •

Who is the customer? What are the Requirements? How important is each requirement? How will you achieve each requirement? Complete the Relationship Matrix (what’s vs. how’s). Which how’s are the most important? What are the tradeoffs between the hows? What target values should be established?


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Process capability Process capability

It indicates the spread of the process about the mean. The purpose of process capability improvement initiatives initiatives is to minimize minimize the process spread. According to Genichi Taguchi, any deviation or spread is a loss to the society, amounting to squared values of the deviation form target values. Concepts of precision and accuracy Precise process is one with narrow spread/std deviation. Accurate process is one which has process average close to design values, but variability may be high.

• •

Process A is centered at 15 cm with spread +/-1.2 cm . Process B is centered at 15.3 cm with spread of +/- .004


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•

Which is better and why? Pictorially represent. Process A is accurate but not precise. Process B is precise but not accurate. By shifting the process average to the design value it can be accurate. In the former case, reducing variation is difficult.

Cp & Cpk

•

Cp

= (USL –LSL)/UCL – LCL = (USL –LSL)/6 sigma

•

Cpk

= Lower of the two values .i.e. 1) (mean-LSL) / 6sigma 2) (USL-mean) / 6sigma

Higher values above 1 for both Cp & Cpk indicate better process capability

• • •

Problem Ball bearings of X brand brand has the following following spec; 245 +/-0.85mm Two Processes are available. see matrix in next slide Centre

LCL

Process A

244.90

244.15

Process B

244.98

244.16

• • • • • • • •

UCL 245.65 245.80

Which process will you recommend and why? Cp process A =1.133 Cp process B=1.037 Cpk process A =1.000 Cpk process B =1.012 A is precise precise due to high Cp while B is accurate accurate having close average Precise process is to be preferred Both process have low Cp & Cpk values. Process variability needs further reduction

Concepts of six sigma


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Fundamentally, it is a customer-focused methodology that drives drives out waste, waste, raises levels of quality, and improves the financial anytime performance of organizations to breakthrough levels.

•

•

Six Sigma’s target for perfection is to achieve no more than 3.4 defects, errors or mistakes per million opportunities whether it involves the design and production of a product or a customer-oriented service process. It is from this target that the “Six Sigma” name originated. sigma is the symbol used to denote the standard deviation or measure of variation

Table values of different sigma levels ppm (ONE TAIL)


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It would be foolish, however, to try to achieve Six Sigma levels of performance for every process in the organization. This is because not all processes are equally important. For example, the process for requesting time-off or vacation is not as critical as the order fulfillment process. What really counts is significant improvement improvement in the mission critical areas – critical as defined by the customer, “critical-to-quality” requirements or CTQs.


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Define, measure Define – identify, evaluate and selectprojects; prepare the mission; and select and launch the team. Measure – the size of the problem, document the process, identify key Customer requirements determine key product characteristics and process parameters, document potential failure modes and effects; theories on the causes or determinants of performance. for data data the data, and establish establish and and confirm confirm the the “vital “vital few” Analyze – plan for determinants of performance.

Improve – design and carry out to determine the mathematical cause-effect relationships, and optimize the Control – design controls; make improvements, implement, and monitor. There is another methodology for designing and developing a new product, service or process.


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Design for Six Sigma Follows the DMADV cycle. DMADV is quality in the eyes of the customer. DMAIC. Typically focuses on one CTQ, which is related to the problem at hand. Analyze – identifies alternative alternative design concepts and develops one or more into a high-level design design control mechanisms mechanisms in place. Project approach in implementation implementation Champion

Six Sigma Project Teams are supported by the leadership of each business unit through the Champions. As influential members of management, they are expected to promote the application, acceptance and evolution of the process within their business units. They select projects, team’s objectives, allocate resources & mentor teams. They are normally the owners of the process being improved

• •

•

•

Master Black Belt Fully trained experts in six sigma tools& methods. The work across organization to develop teams, conduct training, lead change. Role of facilitator and trouble shooters Black belts Having been trained for 160 160 hours hours they they do the technical analysis on full time basis for the projects They help select members, assist in training, lead teams for timely completion After project they work with functional managers managers to implement and monitor monitor solutions they develop and mentor green belts Highly motivated and respected ,they are future business leaders Green belts

Functional employees trained in introductory tools. tools. They work work on projects projects part time ,assisting black belts. Conduct base analysis and give ideas for improvement, To become green belt must complete one six sigma project.

• •

Team members Individuals from functional as who support the project The gather data conduct experiments, due to their functional domain knowledge of


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• • • • •

process details Typically green belts are team leaders. Black belt is staff expert Process mapping (value stream mapping) Pareto Ishikawa diagram SPC Statistical tools like anova

Capability Maturity Model ( CMM)

It is the unique quality certification programme developed by the Software Engineering Institute(SEI) Institute(SEI) at the Carnegie Mellon University University for the software software sector. CMM is model used used by many many organizations to identify identify the best practices useful in helping them to increase the maturity of their processes Currently six variations of CMM are available

• • • • • •

Capability Maturity Model Integration (CMMI) People Capability Maturity Model (P-CMM) Software acquisition Capability Maturity Model (SA-CMM) Capability Maturity Model for Software (SW-CMM) System Engineering Capability Maturity Model (SE-CMM) Integrated Product Development D evelopment Capability Maturity Model(IPD-CMM)


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UNIT V Integration and implementation application of TQM

of

TQM

in

organizations-

TQM elements Based on MBNQA framework for business excellence Leadership

1) Visible long term commitment of transformational leadership 2) Vision and mission 3) Facilitating conducive environment and work culture for employee empowerment, competence, competence, learning & innovation, and joy at work 4) Keeping in touch with stake holders employees, suppliers & customers, besides share holders 5) Corporate social responsibility TQM elements Based on MBNQA

1) Formulation of strategy by involving every one in strategic planning. 2) Deployment of strategy strategy to to day to day activities for creating alignment of operations with strategy 3) Major strategic strategic initiatives in quality like TQM, TOM, Six sigma, Lean manufacturing Customer Focus • • •

• •

• •

• • •

•

Customer satisfaction Market share New product development Customer relationship management Meeting changing customer expectations Human resources focus Training Employee involvement & empowerment Team work among workers and executives Minimum hierarchy and access to top management Treatment of Human Resource as an asset and with respect Process management


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•

•

•

• • •

•

•

Process approach Lay out for efficient efficient process flow with minimum minimum non value adding activities Process capability for near zero defect (ppm) in critical operations Focus on process and product improvements for reducing variation variation Focus on prevention for errors and defects Use of problem solving tools for continuous improvement and contemporary techniques of quality management Energy conservation Cost reduction Supplier focus

• •

•

Supplier partnership Involving suppliers in product & process improvements. Vendor development for reliable supplies for lean manufacturing Information Management

• •

•

Transactional automation Measurement of key performance indicators in relation to strategic and operational goals, for feedback and improvements Data base and knowledge management for benchmarking and improvements Business results

•

•

• • •

•

Financial performance Market share growth customer satisfaction Employee satisfaction Supplier satisfaction Impact on society


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List of Deming Prize winners Year

Name of the company

1998



Sundaram-Clayton Sundaram-Clayton Limited, Brakes Division

2001



Sundaram Brake Linings Ltd. (India)

2002



TVS Motor Company Ltd. (India)

2003

   

2004

  

Brakes India Ltd., Foundry Division (India) Mahindra and Mahindra Ltd., Farm Equipment Sector (India) Rane Brake Linings Ltd. (India) Sona Koyo Steering Systems Ltd. ( India) SRF Ltd - Industrial Synthetics Business Lucas-TVS Indo Gulf Fertilisers Limited

Implementing TQM •

•

• •

Decide Prepare Start Expand


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•

•

Integrate Timing of TQM implementation phases 1

Decide

1

2

2.5

4

4.5

5

----------------

Start

-----------------

expand

-------------------------

integrat e

•

3.5

---------------

Prepare

•

3

--------------------------------------------

Decide appropriate approach SPC,QCs,TPM,5S etc Prepare initial training to top and selected middle managers.Start more training, pilot quality project,( to show case success to all employees), Expand.

•

Deploy approach to other organizational units by setting teams, measurement systems systems individual quality quality initiatives, additional additional training. Integrate. Final phase.

•

• •

• •

1) Strategic goals are deployed to all levels. 2)People are trained to work in teams and do individual roles. 3)Key business processes are finalized. 4) Assessments reviews, audits are in place. 5)In short, quality is a way of life and not merely a programme. TQM culture is institutionalized institutionalized Formulation of quality goals

• •

• •

•

Vision/Mission strategy Excellence Model (Deming, MBNQA, EQA etc) Gap Analysis Prioritize key actions


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•

•

•

Develop tactical plans Organize improvement teams Measure achievements against goals

Competitive benchmarking • •

Compare with the best in particular industry particular industry Compare with the best in any industry any industry

Training for quality Topic

Top mgmnt

Quality awareness

x

Basic concepts

x

x

SQM

x

x

Personal Roles

x

Quality processes

x

Problem solving methods

Basic statistics

x

Quality mgrs

other middle mgrs

specialists

Facilitators

workers

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

Advanced statistics

x

Quality functional areas

x

x

x

x

Motivation for quality

x

x

x

x

Obstacles to achieving TQM •

•

•

Lack of leadership & top management commitment. commitment. Lack of infrastructure for quality. Plans, budgets, rewards recognitions Skepticism about new quality programs


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•

•

•

•

•

•

•

Mere exhortations trying to achieve TQM results too soon ,and all together. Learning from pilot projects and then deploying in other units is effective. Limiting the scope of projects to achievable levels is important to sustain interest of employees. Reliance on specific techniques like SPC, QFD, QCs, FMEA, etc. Techniques are important; but address only part of the problems. Perspective on the big picture is more important. Under estimating time & resource requirements. 10% time of top % middle management is required. Time must be found with out adding personnel, by reallocating work

Business Process Engineering- Some guidelines to identify scope • • • • •

Extensive information exchange, data redundancy and re-keying of data points to arbitrary fragmentation of a natural process Large investment in inventory, buffers and other assets indicates that the existing process is unable to cope up with uncertainty High proportion of checking, control and progress monitoring implies too much fragmentation of the process Inadequate feedback in the process results in excessive rework and iteration Increase in complexity of operations, exceptions and special cases also indicate the need for simplifying the process by revisiting the process fundamentals


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What is ABM

– ABM is a management tool to link different functional areas of management to achieve a common goal of enhancing the competitiveness competitiveness of a firm – Process view of an organization is as important as the cost view. It facilitates continuous improvement process for obtaining operational and strategic benefits.

Organization for Continuous Improvement

• • • •

Task force for continuous improvement Quality Circles Small Group Improvement Activity (SGIA) Projects Visual control aids for improvement


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Using Visual Control Aids for continuous improvement: An Example

Continuous Improvement - Organizational Challenges

• • • •

Resistance to Change Tangibility of Improvements Improvements Incentive & Rewards Systems Organizations make improvements either in a step mode or a gradual mode.


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The step mode improvement happen on account of radical innovations. • On the other hand, gradual mode improvements happen on account of continuous improvements. A continuous improvement does not require any radically new technology or product. It concentrates on improving the effectiveness of existing processes in small steps. There are several ways by which organizations can create a context for continuous improvement of their operations. • Benchmarking exercises • Preparing for international awards and certifications • Engaging in TPM and TQM initiatives

•

•

•

Working along with other industry partners in cluster mode 5S practices

• • • • • • •

Table I The 5-Ss in Japanese and English Japanese English Meaning Seiri Structurize Organization Seiton Systemize Neatness Seiso Sanitize Cleaning Seiketsu Standardize Standardization Shitsuke Self-discipline Discipline The technique has been practiced in Japan for a long time. Most Japanese 5-S 5-S practitioners practitioners consider consider the 5-S useful not just their physical physical environment but for improving their thinking processes as well.

• • • • • • • • •

Seiri …structure. …structure. Separate and keep immediately necessary things as few as possible, Neatess. A place for every thing and and every thing in its placeplaceSeiton. Neatess. quick identification by name, safe storage, neatness for notice ,posters Seiso..cleaning Every one from CEO to the operator is a janitor. No separate cleaner Every one will not get things dirty, nor spill, nor scatter litter, Every one will right away, away, rewrite rewrite things, things, which got erased


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• • • • • • • • • • • • • • • • • • • • • • • • • • •

..standardization Seiketsu..standardization Repeatedly and continually maintain neatness and cleaning, by visual management. Labeling, colour codes are used Transparency. Keep things things visible. visible. Do not sweep sweep things things under under the the carpet, out of sight Shitsuke..Discipline Creating a habit of dong things in the way supposed to be done. Self discipline and are important training 5S check points for factory Cleaning up machines / equipment Whether fixtures, tools are in their allotted place Whether pallets, tote pans are kept clean Whether work- in- process(WIP) and finished goods(FG) are kept in proper place Whether surrounding work places is clean Whether empty pallets, tote pans are kept in their allotted place Whether machines fans, lights are switched off after work Whether used consumable consumable items like like waste not thrown on the floor Whether rusted, dust- covered WIP are sent to next stage or not. Whether walkway/pathway walkway/pathway are kept clear without obstacles Floor and surrounding area is clean Telephone and computers are kept clean Furniture, cupboard, table drawers are kept kept clean and in order Files are kept in labeled folders in file racks In record rooms, files ore kept in order Defective equipments are reported to maintenance department Lights, Fans, computers computers and AC equipments equipments are switched off after use Work place is cleaned after work. Index of files is kept Answering telephones in pleasant and decent manner. Implementing 5S

• • • • •

Top management commitment Promotional campaign Keep records photos, video before and after 5S 5S training Evaluation


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ANSWERS TO TEST PAPER COST OF QUALITY

•

141

The reason quality has gained such prominence is that organizations have gained an understanding of the high cost of poor quality. Quality affects all aspects of the organization and has dramatic cost implications. The most obvious consequence occurs when poor quality creates dissatisfied customers and eventually leads to loss of business. However, quality has many other costs, which can be divided into two categories. The first category consists of costs necessary for achieving high quality, which are called quality control costs. These are of two types: prevention costs and appraisal costs. The second category consists of the cost consequences of poor quality, which are called quality failure costs. These include external failure costs and internal failure costs. These costs of quality are shown in Figure 5-1. The first two costs are incurred in the hope of preventing the second two. Prevention costs are all costs incurred in the process of preventing poor quality from occurring. They include quality planning costs, such as the costs of developing and implementing a quality plan. Also included are the costs of product and process design, from collecting customer cus tomer information to designing processes that achieve conformance to specifications. Employee training in quality measurement is included as part of this cost, as well as the costs of maintaining records of information and data related to quality. Appraisal costs are incurred in the process of uncovering defects. They include the cost of quality inspections, product testing, and performing audits to make sure that quality standards are being met. Also included in this category are the costs of worker time spent measuring quality and the th e cost of equipment used for quality appraisal. Internal failure costs are associated with discovering poor product quality before the product reaches the customer site. One type of internal failure cost is rework , which is the cost of correcting the defective item. Sometimes the item is so defective that it cannot be corrected and must be thrown away. This is called scrap, and its costs include all the material, labor, and machine cost spent in producing the defective product. Other types of internal failure costs include the cost of machine downtime due to failures in the process and the costs of discounting defective items for salvage value.


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External failure costs are associated with quality problems that occur at the customer site. These costs can be particularly damaging because customer faith and loyalty can be difficult to regain. They include everything from customer complaints, product returns, and repairs, to warranty claims, recalls, and even litigation costs resulting from product liability issues. A final component of this cost is lost sales and lost customers. For example, manufacturers of lunch meats and hot dogs whose products have been recalled due to bacterial contamination have had to struggle to regain consumer confidence. Other examples include auto manufacturers whose products have been recalled due to major malfunctions such as problematic braking systems and airlines that have experienced a crash with many fatalities. External failure can sometimes put a company out of business almost overnight. Companies that consider quality important invest heavily in prevention and appraisal costs in order to prevent internal and external failure costs. The earlier defects are found, the less costly they are to correct. For example, detecting and correcting defects during product design and product production is considerably less expensive than when the defects are found at the customer site. Robust design Robust design is a design that results in products that can perform over a wide range of conditions. Taguchi is known for applying a concept called design of experiment to product design. This method is an engineering approach that is based on developing a robust design. Taguchi’s philosophy is based on the idea that it is easier to design a product that can perform over a wide range of environmental conditions than it is to control the environmental e nvironmental conditions SERVQUAL SERVQUAL or RATER is a service quality framework. SERVQUAL was developed in the mid eighties by Zeithaml, Parasuraman & Berry. SERVQUAL was originally measured on 10 aspects of service of service quality: quality : reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding the customer customer and and tangibles. It measures the gap between customer expectations and experience. By the early early nineties nineties the authors authors had refined refined the model model to the useful acronym acronym RATER: 





Reliability Assurance Tangibles


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



Empathy , and Responsiveness 

 









SERVQUAL has its detractors and is considered overly complex, subjective and statistically unreliable. The simplified RATER model however is a simple and useful model for qualitatively exploring and assessing customers' service experiences and has been used widely by service delivery organizations. It is an efficient model in helping an organization shape up their efforts in bridging the gap between perceived and expected service. The five gaps that organizations should measure, manage and minimize: •Gap 1 is the distance between what customers expect and what managers think they expect - Clearly survey research is a key way to narrow this gap. •Gap 2 is between management perception and the actual specification of the customer experience - Managers need to make sure the organization is defining the level of service they believe is needed. •Gap 3 is from the experience specification to the delivery of the experience Managers Managers need to audit the customer experience experience that their organization organization currently delivers in order to make sure it lives up to the spec. •Gap 4 is the gap between the delivery of the customer experience and what is communicated to customers - All too often organizations exaggerate what will be provided to customers, customers, or discuss the best case rather than the likely case, raising customer expectations and harming customer perceptions. •Gap 5 is the gap between a customer's perception of the experience and the customer's expectation of the service - Customers' expectations have been shaped by word of mouth, their personal needs and their own past experiences. Routine transactional surveys after delivering the customer experience are important for an organization to measure customer perceptions of service.

  

  

 

 

PDCA ( plan plan – do – check – act) is an iterative four-step management method used in business for the control and continuous improvement of processes and products. It is also known as the Deming circle / cycle / wheel wheel cycle , or plan – do – study – act , Shewhart cycle , control circle / ( PDSA PDSA). [2][3] The steps in each successive PDCA cycle ar e ar e : PLAN Establish the objectives and processes necessary to deliver r esults in accordance with the expected output (the target or goals). By establishing output expectations, the completeness and accuracy of the specification is also a part of the targeted improvement. When possible start on a small scale to test possible effects. DO Implement the plan, execute the process, make the product. Collect data for charting and analysis in the following "CHECK" and "ACT" steps. CHECK Study the actual results (measured and collected in "DO" above) and compare against the expected results (targets or goals from the "PLAN") to ascertain any differences. Look for deviation in implementation from the plan and also look for the appropriateness/ completeness of the plan to enable the execution i.e.'Do'. Charting


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 

data can make this much easier to see trends over several PDCA cycles and in order to convert the collected data into information. Information is what you need for the next step "ACT". ACT Request corrective actions on significant differences between actual and planned results. Analyze the differences to determine their root causes. Determine where to apply changes that will include improvement of the process or product. When a pass through these four steps does not result in the need to improve, the scope to which PDCA is applied may be refined to plan and improve with more detail in the next iteration of the cycle, or attention needs to be placed in a different stage of the process.

Comparison of eastern and western approaches of TQM EASTERN Thinking is based on inclusion Emphasis process in things Individualism plays a role Naturally convergent

WESTERN Thinking is based on exclusion West will emphasis things in process Individual referred by group Naturally divergent

Cause effect l/Fish bone /Ishikawa Diagram It is a generic methodology developed to trace the problems to their root causes. A fishbone diagram helps the quality improvement team to analyze problems in a structured manner and identify the root causes.


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Master Black Belt

Black belts are fully trained experts in six sigma tools& methods. The work across organization to develop teams, conduct training, lead change. Role of facilitator and trouble shooters. Black belts having been trained for 160 hours they do the technical analysis on full time basis for the projects. They help select members, assist in training, lead teams for timely completion After project they work with functional managers to implement and monitor solutions they develop and mentor green belts Highly motivated and respected, they are future business leaders Poka Yoke

Poka Yoke is the Japanese word for mistake proofing of operations. Shigeo Shingo proposed this method while he improved the Toyota Production System. The basic principle behind this method is that several defects that creep in to operations are usually avoidable. Errors and defects have cause and effect relation ship. If errors are not eliminated they will become defects. The root causes could be eliminated by re-designing the operations and incorporating methods by which the process will not allow the errors to happen in future. 5S practices

• • • • • • • • • • •

•

Japanese English Meaning Seiri Structurize Organization Seiton Systemize Neatness Seiso Sanitize Cleaning Seiketsu Standardize Standardization Shitsuke Self-discipline Self-discipline Discipline Discipline

Seiri …structure. …structure. Separate and keep immediately necessary things as few as possible, Neatness. A place for every thing and every thing in its placeplaceSeiton. Neatness. quick identification by name,safe storage, neatness for notice ,posters Seiso..Cleaning. Every one from CEO to the operator is a janitor. No separate cleaner. Every one will not get things dirty, nor spill, nor scatter litter.Every one will will right away, away, rewrite rewrite things, things, which got erased ..standardization. Repeatedly and continually maintain neatness Seiketsu..standardization. and cleaning, by visual management. Labeling, colour codes are used.


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•

Transparency. Keep things visible. Do not sweep things under the carpet, out of sight. Shitsuke..Discipline. Creating a habit of dong things in the way supposed to be done. Self discipline and are important training

EMS Environmental Management Systems

The increasing consciousness of environmental protection has fostered the development of environmental management systems (EMS). ISO 14001 is an international standard that provides guidance for the establishment and monitoring of EMS implementation

An Environmental Management System (EMS) is a systematic approach for incorporating energy and environmental goals and priorities (such as energy use and regulatory compliance) into routine operations. While some sort of de facto system is inherent to any organization that must meet energy and environmental requirements as part of daily operations, it is generally accepted as a valuable step to formalize the approach by documenting it. Not only does documentation of the system ensure consistency over time and across employees, there is a growing body of evidence indicating that there is considerable value in defining a systematic approach to managing energy and environmental goals. EMS Models More than one model or conceptual framework for an EMS exists. Probably the most well known of EMS models is the ISO 14001 international standard. Other models include the following: • European Eco-Management Eco-Management and Audit Scheme (EMAS); • Responsible Care model developed by the American Chemical Council (ACC); • US Department of Justice (DOJ) “Seven Key Compliance Program Elements;” and • EPA National Enforcement Investigation Center (NEIC) “Compliance Focused” EMS. •

Complementary Systems and Tools Growing industrial and government interest in energy and environmental management has led to the development of a number of concepts and tools that enable organizations to understand, evaluate and manage the environmental


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implications of their operations, services and products. Some tools are: Green procurement; Sustainable community planning; Life cycle management; Life cycle assessment; and Sustainable design. The ISO 14001 EMS Model

According to the international standard, ISO 14001, an Environmental Management System (EMS) is “the part of the overall management system that includes organizational structure, planning activities, activities, responsibilities, responsibilities, practices, procedures, processes, and resources for developing, implementing, achieving, reviewing and maintaining the environmental policy.” While this is a more complex definition than previously provided, it still implies the same cycle of “Plan, Do, Check, Feedback.” The ISO 14001 EMS standard consists of five sections, Environmental Policy, Planning, Implementation & Operations, Checking and Corrective Action, and Management Review. SA 8000 SA8000 is a global social accountability standard for decent working conditions, developed and overseen by Social Accountability International (SAI). SA8000 is an auditable certification standard based on the UN Universal Declaration of Human Rights, Rights, Convention on the Rights of the Child and various International Labour Organization (ILO) conventions.

SA8000 covers the following areas of accountability: 









Child labor: labor: No workers under the age of 15; minimum lowered to 14 for countries operating under the ILO Convention 138 developing-country exception; remediation of any child found to be working. Forced labor: labor: No forced labor, including prison or debt bondage labor; no lodging of deposits or identity papers by employers or outside ou tside recruiters. Health and Safety: Safety: Provide a safe and healthy work environment; take steps to prevent injuries; regular health and safety worker training; system to detect threats to health and safety; access to bathrooms and potable water. Freedom of Association and Right to Collective Bargaining: Bargaining: Respect the right to form and join trade unions and bargain collectively; where law prohibits these freedoms, facilitate parallel means of association and bargaining. Discrimination:: No discrimination based on race, caste, origin, religion, Discrimination disability, gender, sexual orientation, union or political affiliation, or age; no sexual harassment.


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







Discipline: No corporal punishment, mental or physical coercion or verbal Discipline: abuse Working hours: hours: Comply with the applicable law but, in any event, no more than 48 hours per week with at least one day off for every seven day period; voluntary overtime paid at a premium rate and not to exceed 12 hours per week on a regular basis; overtime may be mandatory if part of a collective bargaining agreement. Compensation:: Wages paid for a standard work week must meet the legal Compensation and industry standards and be sufficient to meet the basic need of workers and their families; no disciplinary deductions. Management systems for Human Resources: Facilities seeking to gain and maintain certification must go beyond simple compliance to integrate the standard into their management systems and practices FMEA

A failure modes and effects analysis (FMEA) is a procedure in product development and operations management for analysis of potential failure modes within a system for classification by the severity and likelihood of the failures. A successful FMEA activity helps a team to identify potential failure modes based on past experience with similar products or processes, enabling the team to design those failures out of the system with the minimum of effort and resource expenditure, thereby reducing development time and costs. It is widely used in manufacturing industries in various phases of the product life cycle and is now increasingly finding use in the service industry. Failure modes are any errors or defects in a process, design, or item, especially those that affect the a nalysis refers to studying the customer, and can be potential or actual. Effects analysis consequences of those failures. Implementation

In FMEA, failures are prioritized according to how serious their consequences are, how frequently they occur and how easily they can be detected. A FMEA also documents current knowledge and actions about the risks of failures for use in continuous improvement. FMEA is used during the design stage with an aim to avoid future failures (sometimes called DFMEA in that case). Later it is used for process control, before and during ongoing operation of the process. Ideally, FMEA begins during the earliest conceptual stages of design and continues throughout the life of the product or service.


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The outcomes of an FMEA development are actions to prevent or reduce the severity or likelihood of failures, starting with the highest-priority ones. It may be used to evaluate risk management priorities for mitigating known threat vulnerabilities. FMEA helps select remedial actions that reduce cumulative impacts of life-cycle consequences (risks) from a systems failure (fault). It is used in many formal quality systems such as QS-9000 or ISO/TS 16949.

Analyses ways of failure of a product and its effect of each mode using 3 criteria on 5 pt scale • • •

severity Probability of occurrence(MTBF) Ease of detection of failure

Items of higher Total scores are to be b e dealt with on priority Force field analysis • • • • •

Kurt Levin in 1920s To identify the forces (pressures) for and against changes. Participation and sense of ownership Forces for forces against What can be done to strengthen forces for and weaken forces against

Six Sigma projects follow two project methodologies inspired by Deming Deming''s Plan-Do-Check-Act Cycle. Cycle. These methodologies, composed of five phases [14] each, bear the acronyms DMAIC and DMADV. DMADV. 



DMAIC is used for projects aimed at improving an existing business [14] process. process. DMAIC is pronounced as "duh-may-ick". DMADV is used for projects aimed at creating new product or process [14] designs. designs. DMADV is pronounced as "duh-mad-vee".

DMAIC

The DMAIC project methodology has five phases: 

Define the problem, the voice of the customer, and the project goals, specifically.


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







easure key aspects of the current process and collect relevant data. M easure Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation. mprove or optimize the current process based upon data analysis using I mprove techniques such as design of experiments, experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability. capability. ontrol the future state process to ensure that any deviations from target are C ontrol corrected before they result in defects. Implement control systems such as statistical process control, control, production boards , visual workplaces, and continuously monitor the process.

DMADV or DFSS

The DMADV project methodology, also known as DFSS ("Design For Six [14] Sigma"), igma"), features five phases: 









Define design goals that are consistent with customer demands and the enterprise strategy. easure and identify CTQs (characteristics that are Critical To Quality), M easure product capabilities, production process capability, and risks. Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design. Design details, optimize the design, and plan for design verification. This phase may require simulations. erify the design, set up pilot runs, implement the production process and V erify hand it over to the process owner(s).

Cybernetics Cybernetics is the interdisciplinary study of the structure of regulatory of regulatory systems. systems. Cybernetics is closely related to information theory, theory, control theory and systems theory,, at least in its first-order form. (Second-order cybernetics has crucial theory methodological and epistemological implications that are fundamental to the field as a whole.) Both in its origins and in its evolution in the second half of the 20th century, cybernetics is equally applicable to physical and social (that is, language-based) systems.

Cybernetics is a broad field of study, but the essential goal of cybernetics is to understand and define the functions and processes of systems that have goals and that participate in circular, causal chains that move from action to sensing to


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comparison with desired goal, and again to action. Studies in cybernetics provide a means for examining the design and function of any system, including social systems such as business management and organizational learning, including for the purpose of making them more efficient and effective effective.. The second order cybernetics emphasized the concepts of autonomy, selforganization,, cognition organization cognition,, and the role of the observer in modeling a system CMM- capability Maturity Model

The software sector has adopted a unique quality certification programme developed by the Software Engineering Institute(SEI) at the Carnegie Mellon University, known as Capability Maturity Model. It is amodel used by many organizations to identify the best practices usful in helping them increae the maturity of their processes. In 2000 CMM was upgraded to CMMI. Currenntly six variations variations of CMM are are available Capability Maturity Model Integration (CMMI) (CMMI) People Capability Maturity Model (P-CMM) Software acquisition Capability Maturity Model ( SA-CMM) SA -CMM) Capability Maturity Maturity Model for for software (SW-CMM) System Engineering Capability Maturity Maturity Model (SE-CMM) Integrated product product development Capability Maturity Model Integration ( IPD-CMM) • • • • • •


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TQM

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