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7/10/2013
2
Evolution of Quality Management
� Mass Inspection
� Inspecting
� Salvaging
� Sorting
� Grading
� Rectifying
� Rejecting
� Quality Control
� Quality manuals
� Product testing using SQC
� Basic quality planning
� Quality Assurance
� Emphasis on prevention
� Proactive approach using SPC
� Advance quality planning
� Total Quality Control
� All aspects of quality of inputs
� Testing equipments
� Control on processes
3
Evolution of Quality Management
� Company wide Quality Control
� Measured in all functions connected with production such as
� R&D
� Design
� Engineering
� Purchasing,
� Operations etc
� Total Quality Management
� Measured in all aspects of business,
� Top management commitment
� Continuous improvement
� Involvement & participation of employees
4
7/10/2013
4
Gurus of TQM
Dr. W E Deming Dr. J M Juran Dr. Philip Crosby
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Gurus of TQM
Dr. Kaoru IshikawaDr. Genichi Taguchi Dr. Masaaki Imai
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Gurus of TQM
Dr. Shigeo Shingo
Dr. Yoshio Kondo
Dr .Armand V. Feigenbaum
Dr. James Harrington
9
W E Deming
� Reduction in process variability by extensive use of statistics will lead to improvement in quality and increase in productivity
� Talked about New Climate (organisational culture)
� Joy in work
� Innovation
� Co-operation
� Win-Win approach
� He proposed a 14 point TQM programme
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Seven Deadly Sins� Lack of vision and mission as regards quality & process improvement
� Emphasis on short term profit
� Personal performance appraisal systems
� Mobility of management
� Running a company on visible figures alone
� Customer satisfaction level
� Employee morale
� Relationship with your vendors
� Confidence the market has in your company
13
Deming’s Prize
� Establish in 1950 originally for Japanese companies for major advances in quality improvement
� Deming’s Prize is given under Japanese Union of Scientists & Engineers
� These days Deming’s Prize is awarded to non Japanese companies and even individuals
� 2001 – Sundram Brake Linings, the world’s first friction material company to win
� 2008 –Tata Steel is the first integrated steel plant in Asia to win
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8
Malcolm Baldrige National Quality Award
� MBNQA is given by United States National Institute of Standards and Technology
� Original stated purpose of the award were
� promote quality awareness
� recognise quality achievements of the US companies
� publicise successful quality strategies
� Current award criteria are stated
� To help improve organizational performance practices, capabilities and results
� To facilitate communication and sharing of the best practice information among US organizations of all types
� To serve as a working tool for understanding and managing performance and for guiding planning and opportunities for learning
15
Malcolm Baldrige National Quality Award
� The categories are
� Leadership
� Strategic Planning
� Customer & Market Focus
� Measurement, Analysis and Knowledge Management
� Workforce Focus
� Process Management
� Results
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9
J M Juran
� Developed the idea of trilogy
� Quality Planning
� Quality Improvement
� Quality Control
� Conformance to specifications is necessary but not sufficient requirement of a product.
� Fitness for use by the consumer of the targeted market segment is an essential requirement in addition to conformance
17
J M Juran’s Trilogy
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Juran’s 10 Points� Build awareness of need and opportunities for improvement
� Set goals for improvement
� Organise the overall improvement programme
� Provide the training
� solve problems through project methodology
� Report progress
� Give recognition
� Communicate results
� Keep score
� Institutionalise the improvement process
19
Philip Crosby
� Quality is defined as conformance to requirements, not as 'goodness' or 'elegance'
� The system for causing quality is prevention, not appraisal – Quality is Free
� The performance standard must be Zero Defects, not "that's close enough"
� The measurement of quality is the Price of Non-conformance, not indices.
� Cost of quality is only the measure of operational performance
Do it right the first timeZero DefectsAbsolutes of QM20
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11
Crosby 14 points� Management commitment
� Quality improvement team
� Quality measurement
� Evaluation of cost of quality
� Quality awareness
� Corrective action
� Establish committee for zero defect planning
� Supervisor training
� Zero Defect Day
� Goal Setting
� Error cause removal
� Recognition
21
Cost of Quality
� Prevention Cost
� Cost associated with time spend in planning the quality system
� Consists of the following
� Process control costs
� Information systems costs
� Training Costs
� General Management cost
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Cost of Quality
� Appraisal Costs
� Cost incurred on measurement & analysis of data in order to detect & correct problems
� Consist of
� Cost of maintaining, testing & inspection
� Process control costs
� Internal Failure Cost
� Incurred due to non-conformance
� Include
� Scrap and rework costs
� Cost of corrective action
� Downgrading costs
23
Cost of Quality� External Failure Cost
� Occur when poor products reach customer
� Include
� Costs of customer complaints and returns
� Product recall costs
� Warranty claims costs
� Product liability costs
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13
Genichi Taguchi� His methodologies held ensure customer satisfaction
� Taguchi’s Loss Function
� Taguchi Method – Design of Experiments
25
Taguchi’s Loss Function
� A quality product is a product that causes a minimal loss (expressed in money!) to society during it's entire life. The relation between this loss and the technical characteristics is expressed by the loss function
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Taguchi’s Loss Function
27
Kaoru Ishikawa
� Simplified statistical techniques for QC
� Cause and Effect diagrams (Ishikawa Diagrams or Fish Bone Diagrams)
� Company wide quality control
� quality does not only mean the quality of product, but also of after sales service, quality of management, the company itself and the human life
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Ishikawa Diagram
29
Ishikawa Diagram
� Diagrams which show the causes of a certain event
� Three sets of causes
� 6 M’s
� Machine
� Method
� Maintenance
� Man
� Mother Nature
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16
Ishikawa Diagram
� 8 Ps
� Price
� Promotion
� Process
� Place/Plant
� Policies
� Procedures
� Product (or Service)
� 4 Ss
� Surroundings
� Suppliers
� Systems
� Skills
31
Masaaki Imai� Introduced the concept of Kaizen or continuous improvement
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17
Shigeo Shingo� “Fool-Proofing” or “Poke-Yoke”
� Source Inspection systems
� No statistical sampling is necessary
� Zero defects through good engineering and process investigation rather than slogans and exhortations
33
Yoshio Kondo
� Emphasised inter-relationship between quality and people
� Creativity – joy of thinking
� Physical activity – joy of working
� Sociality – joy of sharing pleasure and pain with colleagues
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18
Toyota Production System� Long –Term Philosophy
� Base your Management Decisions on a Long-Term Philosophy, even at the Expense of Short-Term Financial Goals
35
14 Principles of TPS
� The Right Process Will Produce the Right Results
� Create Continuous Process Flow to Bring Problems to the Surface
� Use “Pull” Systems to avoid Over Production
� Level out the Work Load (Heijunka)
� Build a Culture of Stopping to Fix Problems, to get Quality Right the First Time
� Standardised Tasks are the foundation for Continuous Improvement and Employee Empowerment
� Use Visual Control so no Problems are Hidden
� Use Only Reliable, Thoroughly Tested Technology that Serves your People and Processes
36
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19
Continue …….
14 Principles of TPS
� Add Value to the Organisation by Developing Your People and Partners
� Grow Leaders who thoroughly understand the Work, Live the Philosophy and Teach it to Others
� Develop Exceptional People and Teams who follow your Company’s Philosophy
� Respect your Extended Network of Partners and Suppliers by Challenging them and Helping them Improve
37
14 Principles of TPS
� Continuously Solving Root Problems Drives Organisational Learning
� Go and See for Yourself to thoroughly Understand the Situation
� Make Decisions Slowly by Consensus, thoroughly Considering all Options, Implement Decisions Rapidly
� Become a Learning Organisation through Relentless Reflection (Hansei) and Continuous Improvement (Kaizen)
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•Continual organizational learning through Kaizen
•Go see for yourself to thoroughly understand the
situation (Genchi Genbutsu)
•Make decisions slowly by consensus, thoroughly
considering all options; implement rapidly
•Grow leaders who live the philosophy
•Respect, develop, and challenge your
people and teams
•Respect, challenge, and help your suppliers
•Create process “flow” to surface problems
•Use pull systems to avoid overproduction
•Level out the workload (Heijunka)
•Stop when there is a quality problem (Jidoka)
•Standardize tasks for continuous improvement
•Use visual control so no problems are hidden
•Use only reliable, thoroughly tested technology
•Base management decisions on a
long-term philosophy, even at the
expense of short-term financial goals
“4 P” Model of the Toyota Way
39
•Continual organizational learning through Kaizen
•Go see for yourself to thoroughly understand the
situation (Genchi Genbutsu)
•Make decisions slowly by consensus, thoroughly
considering all options; implement rapidly
•Grow leaders who live the philosophy
•Respect, develop, and challenge your
people and teams
•Respect, challenge, and help your suppliers
•Create process “flow” to surface problems
•Use pull systems to avoid overproduction
•Level out the workload (Heijunka)
•Stop when there is a quality problem (Jidoka)
•Standardize tasks for continuous improvement
•Use visual control so no problems are hidden
•Use only reliable, thoroughly tested technology
•Base management decisions on a
long-term philosophy, even at the
expense of short-term financial goals
Where Most
“Lean”
Companies
are
“4 P” Model of the Toyota Way
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7/10/2013
21
•Continual organizational learning through Kaizen
•Go see for yourself to thoroughly understand the
situation (Genchi Genbutsu)
•Make decisions slowly by consensus, thoroughly
considering all options; implement rapidly
•Grow leaders who live the philosophy
•Respect, develop, and challenge your
people and teams
•Respect, challenge, and help your suppliers
•Create process “flow” to surface problems
•Use pull systems to avoid overproduction
•Level out the workload (Heijunka)
•Stop when there is a quality problem (Jidoka)
•Standardize tasks for continuous improvement
•Use visual control so no problems are hidden
•Use only reliable, thoroughly tested technology
•Base management decisions on a
long-term philosophy, even at the
expense of short-term financial goals
Toyota’s
Terms
“4 P” Model of the Toyota Way
41
Evaluate
Results
(Check)
Surface
Problems
(Plan)
Counter
Measures
(Do)
Eliminate
Waste
Create
Flow
(Act)
Creating Flow
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22
PEOPLE
Long – term Asset –> Learned Skills
Machinery Depreciates -> Loses Value
People Appreciates -> Continue to Grow
PHILOSOPHICAL
Technical• Stability• JIT• Jidoke• Kaizen• Heijunka
Management• True North• Tools to FocusManagement Attention
• Go and See• Problem – Solving• Presentation Skills• Project Management• Supportive Culture
Philosophy / Basic Thinking
• Customer First
• People are most Important Asset
• Kaizen
• Go and See -> Focus on Floor
• Give feedback to Team Members and Earn Respect
• Efficiency Thinking
• True (vs. apparent) Condition
• Total (vs. Individual) Team Involvement
Toyota’s Leader View
43
Myth vs Reality
Myth
What TPS is Not Reality What TPS Is
� A Tangible recipe for Success
� A Management Project or Program
� A set of Tools for Implementation
� A system for Production Floor only
� Implementable in a Short or
� Mid-term Period
� A Consistent way of Thinking
� A Total Management Philosophy
� Focus on Total Customer Satisfaction
� An Environment of Teamwork and
� Improvement
� A Never-ending Search for a
� Better Way
� Quality Built in Process
� Organised, Disciplined
� Workplace
� Evolutionary
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23
45
5 S
� Seiri – Sorting
� Seiton – Straighten or Set in order
� Seiso – Sweeping, shining or cleanliness
� Seikestu – Standardising
� Shitsuke – Sustaining the discipline
46