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Total Quality Management and Quality Management Philosophies

This document discusses total quality management (TQM) and quality management philosophies. It defines key quality terms like dimensions of quality, definitions of quality, quality characteristics, and provides a brief history of quality control and improvement. The management aspects of quality improvement are also outlined, including quality planning and quality assurance.

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Ishaan Raj
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0% found this document useful (0 votes)
33 views

Total Quality Management and Quality Management Philosophies

This document discusses total quality management (TQM) and quality management philosophies. It defines key quality terms like dimensions of quality, definitions of quality, quality characteristics, and provides a brief history of quality control and improvement. The management aspects of quality improvement are also outlined, including quality planning and quality assurance.

Uploaded by

Ishaan Raj
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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TOTAL QUALITY

MANAGEMENT AND QUALITY


MANAGEMENT
PHILOSOPHIES
Dr. Raghu Nandan Sengupta
Professor
Department of Industrial and Management Engineering

All figures are taken from(unless otherwise mentioned):


Introduction to Statistical process Control
Douglas. C Montgomery
6th Edition
Quality
• One of the most important decision factor in selection of
products/services from competing sets
• Understanding and improving quality leads to business
success, growth and competitiveness
• Can be defined as possession of one or more desirable
characteristics for a product/service
• ISO 9000 Definition – a degree to which a set of inherent
characteristics that fulfils a need or expectation that is
stated ,generally implied or is obligatory
Dimensions of Quality
• Performance – Will the product do the intended job

• Reliability – How often does the product fail

• Durability – How long does the product last

• Serviceability – How easy it is to repair the product


Dimensions of Quality
• Aesthetics – What does the product look like

• Features – what does the product do

• Perceived Quality – What is the reputation of the


company or its products

• Conformance to Standards – Is the product made exactly


as the designer intended
Definition of Quality
• Fitness for use

• Consists of two aspects

• Quality of design – All automobiles have the same basic


objective of providing transportation yet they are different
in terms of size, shape, performance etc.

• Quality of Conformance – How well the product conforms


to the specification required by the design. Depends on
choice of manufacturing process, training and supervision
of workforce, types of process control, inspection activities
etc.
Definition of Quality (continued)
• Above definition does not emphasize the focus on
customer

• “Quality is inversely proportional to variability”


• If variability of an important characteristics of a product decreases,
the quality of the product increases
• Variability here refers to unwanted variability

• Focusses on customer requirement of less variability


7

Meaning of Quality:
A Final Perspective

• Consumer’s and producer’s perspectives depend on


each other

• Consumer’s perspective: PRICE

• Producer’s perspective: COST

• Consumer’s view must dominate


An example
• An automobile company in US received transmission parts from a
domestic plant and from a Japanese Supplier
• Analysis of transmission cost for parts produced in US and Japan
• Huge difference in costs between the two sources

• To identify reasons for difference, the company selected Random


Samples from plants, disassembled them and measured Critical to
Quality characteristics
Understanding variability

• The units manufactured in US took up around 75% of the width


of the specification while those manufactured in Japan took up
around 25%
• Considerable less variability in Japanese products
• Customer does not see the mean, they look at the variability
around the target that is not removed – Jack Welch
Quality improvement
• Why and how did the Japanese do it?

• Why

• Reduced variability leads to lower costs (Fig 1.1)

• Japanese gears ran more smoothly with less noise and hence had
a higher perceived quality in minds of the consumers

• Fewer repairs and warranty claims -> less rework -> reduction in
wasted time effort money
Quality improvement
• How

• Quality improvement – Reduction of variability in processes and


products

• Reduction of waste

• Specially pertinent to the service industry – improving service


process leads to less effort and time in correction
Quality characteristics
• Quality characteristics – Elements that describe what
consumer perceives as quality
• Often referred to as Critical-To-Quality Characteristics
• Physical – length, weight, voltage, viscosity
• Sensory – taste, appearance, colour
• Time orientation – reliability, durability, serviceability
• Quality engineering – set of operational, managerial and
engineering activities that the quality characteristics of a
product are at a nominal or required levels and the
variability around the desired levels is minimum
Quality characteristics
• No two products are ever identical – variability
• The thickness of blades of a fan/between two fans will be different
• Customer may not accept product if this variability is large
• Sources of variability include difference in materials, difference in the
performance and operation of the manufacturing unit etc.

• Specification
• Desired measurements of the characteristics

• A value of measurement that corresponds to the desired


value for the quality characteristic is called the nominal or
target value
Some Important Terminologies
• The largest allowable value for a quality characteristic is
called the Upper Specification Limit (USL)

• The smallest allowable value for the quality characteristic


is called the Lower Specification Limit (LSL)

• Nonconforming products – which do not meet one or


more of it’s specifications

• A non-conforming product is called defective as it has one


of or more defects
• A defect is the non-conformance to the specification
An Example
• Consider a blade of a fan
• Let length and thickness be two quality characteristics
• For length
• Target length:30 cm
• USL: 32 cm
• LSL:28 cm
• A blade having length between 28cm and 32cm is acceptable
• For thickness
• Target value: 10mm
• USL : 12 mm
• LSL: 8mm
• A blade having thickness between 8mm and 12 mm is acceptables
An Example (continued)
• If a blade has length 32cm and thickness 6 mm then it is said
to be non-conforming/defective and has 1 defect (for the
thickness)

• If a blade has length 33cm and thickness 9 mm then it is said


to be non-conforming/defective and has 1 defect (for the
length)

• If a blade has length 34cm and thickness 6 mm then it is said


to be non-conforming/defective and has 2 defects (for the
thickness)

• If a blade has length 32cm and thickness 8mm then it is said to


be conforming and has no defect
Brief History of Quality Control and
Improvement
Year Event
1875 Frederick W. Taylor introduces “Scientific Management”
principles to divide work into smaller, more easily
accomplished units—the first approach to dealing with
more complex products and processes. The focus was on
productivity. Later contributors were Frank Gilbreth and
Henry Gantt.

1900–1930 Henry Ford—the assembly line—further refinement of work


methods to improve productivity and quality; Ford
developed mistake-proof assembly concepts, self-
checking, and in-process inspection.

1907–1908 AT&T begins systematic inspection and testing of products


and materials.
History of Quality Control

Year Event
1908 W. S. Gosset (writing as “Student”) introduces the t-
distribution—results from his work on quality control at
Guinness Brewery.
1915–1919 WWI—British government begins a supplier certification
program.
1920s AT&T Bell Laboratories forms a quality department—
emphasizing quality, inspection and test, and product
reliability.
B. P. Dudding at General Electric in England uses statistical
methods to control the quality of electric lamps.
1924 W. A. Shewhart introduces the control chart concept in a Bell
Laboratories technical memorandum.
History of Quality Control
Year Event
1928 Acceptance sampling methodology is developed and refined by H. F.
Dodge and H. G. Romig at Bell Labs.
1931 W. A. Shewhart publishes Economic Control of Quality of Manufactured
Product—outlining statistical methods for use in production and control
chart methods.
1946 The American Society for Quality Control (ASQC) is formed as the
merger of various quality societies. The International Standards
Organization (ISO) is founded.

Deming is invited to Japan by the Economic and Scientific Services


Section of the U.S. War Department to help occupation forces in
rebuilding Japanese industry.

The Japanese Union of Scientists and Engineers (JUSE) is formed.


History of Quality Control
Year Event
1948 G. Taguchi begins study and application of experimental design
1950 Deming begins education of Japanese industrial managers; statistical
quality control methods begin to be widely taught in Japan. K. Ishikawa
introduces the cause-and-effect diagram.
1987 ISO publishes the first quality systems standard. Motorola’s six-sigma
initiative begins.
2000 ISO 9000:2000 standard is issued. Supply-chain management and
supplier quality become even more critical factors in business success.

Quality improvement activities expand beyond the traditional industrial


setting into many other areas including financial services, health care,
insurance, and utilities
Management Aspects of Quality
Improvement
• Quality Planning

• A strategic activity without which enormous amount of time and


effort may be wasted in dealing with faulty designs, manufacturing
defects, customer complaints etc.

• It involves identifying the internal and external customers and


listening to their needs (listening to the Voice of the Customer(VoC)

• Helps in developing products or services that exceed customer


expectations
Management Aspects of Quality
Improvement
• Quality Assurance - It is the set of activities that ensures
the quality levels of products and services are properly
maintained and that supplier and customer quality issues
are properly resolved

• Documentation of quality system - policy, procedures, work


instructions and specifications, and records.

• Policy -> what is to be done

• Procedure ->methods and personnel

• Work instruction and specification -> product/department oriented


Management Aspects of Quality
Improvement
• Quality control and improvement

• The set of activities used to ensure that the products and services
meet requirements and are improved on a continuous basis

• Since variability is a major source of poor quality, this involves uses


of statistical techniques such as Statistical Process control and
Design of Experiments

• Often done in a project by project basis


Quality Philosophy and Management Strategies - W.
Edwards Deming
• 14 point frame work for quality and productivity
improvement
1. Create a constancy of purpose focused on
the improvement of products and services
For source of image see reference

2. Adopt a new philosophy that recognizes we are in a


different economic era.
3. Do not rely on mass inspection to “control” quality
4. Do not award business to suppliers on the basis of price
alone, but also consider quality
5. Focus on continuous improvement
Quality Philosophy and Management
Strategies - W. Edwards Deming
6. Practice modern training methods and invest in on-the-job
training for all employees.
7. Improve leadership, and practice modern supervision
methods
8. Drive out fear
9. Break down the barriers between functional areas of the
business.
10. Eliminate targets, slogans, and numerical goals for the
workforce
11. Eliminate numerical quotas and work standards
12. Remove the barriers that discourage employees from doing
their jobs.
13. Institute an ongoing program of education for all employees
14. Create a structure in top management that will vigorously
advocate the first 13 points
Seven deadly sins of management:
W. Edwards Deming
• Lack of constancy of purpose

• Emphasis on short-term profits

• Evaluation of performance, merit rating, and annual reviews of


performance

• Mobility of top management

• Running a company on visible figures alone

• Excessive medical costs

• Excessive legal damage awards


Quality Philosophy and Management
Strategies - W. Edwards Deming
• Recommended model for improvement

• Plan-Do-Check-Act, are often called the PDCA cycle.

• The check step is sometimes called Study


• The cycle becomes PDSA
Quality Management Philosphy:
Joseph M Juran
• Three components
• Juran Trilogy of planning, control and improvement
• Planning
• Identifying external customers and their needs
• Planning for quality improvement on a regular basis
• Control
• Statistical Process control
• Improvement For source of image see reference

• Project by project improvement


• Higher quality than current levels
• Breakthrough and incremental improvement
Quality Control: Armand V. Feigenbaum
• Introduced the concept of company wide
quality control in the book “Total Quality Control”

• Three step approach to improving quality


• Quality Leadership
• Quality Technology
Organizational Commitment

• 19 step quality improvement process


For source of image see reference
Total Quality Management
• A strategy for implementing and managing quality
improvement strategies across the organization
• Started in 1980 with Deming’s and Juran’s philosophies
• Focus on all elements of organization on quality
improvement efforts
• Major focus was on customer and integrating quality goals
with business goals
• Different teams including quality council, cross-functional
teams to improve quality
• Limited success
Total Quality Management
• “A management philosophy and company practices that
aim to harness the human and material resources of an
organization in the most effective way to achieve the
objectives of the organization."
• Formal definition of TQM as given by British Standards Institution
• Main targets of TQM
• Customer Satisfaction
• Continuous Operational Improvement
• Continuous Cost Reduction
• A “want to” culture instead of “have to” culture
• Highly Skilled Workforce
Quality Circle
Organization
8-10 members
Same area
Supervisor/moderator

Training
Presentation Group processes
Implementation Data collection
Monitoring Problem analysis

Problem
Solution Identification
Problem results List alternatives
Consensus
Brainstorming
Problem Analysis
Cause and effect
Data collection and
analysis
Reasons for Limited Success
• Ineffective training and lack of proper impact
measurement
• Major focus was on customer and integrating quality goals
with business goals
• Inadequate use of statistical methods and insufficient
recognition of variability reduction as a prime objective
• General as opposed to specific business-results-oriented
objectives
• Too much emphasis on widespread training as opposed
to focused technical education
• Wrapping around ineffective programs like Zero Defects,
Quality is free etc.
Basic Ideas of Probability distribution
• Consider the rolling of a dice
• Total there are 6 possible outcomes (1,2,3,4,5,6)(Sample
Space)
• Say let X(random variable) denote the outcome 5 (when
we toss a dice and a 5 appears)
• So probability(X=5)=1/6(No of favourable outcome/total
possible outcomes)
• A probability distribution function can be thought of as a
mathematical function which gives the probability for an
outcome for a particular random variable
PMF and PDF
• Probability distribution functions can be for discrete and
continuous events
• Discrete – When the sample space is made of discrete events like
tossing a dice will always have an outcome from the
set(1,2,3,4,5,6)
• Continuous- When the sample space consists of continuous
numbers like temperature of a room (it can be any continuous value
between say 15 and 50 like 15.51 or 16.72)
• For the discrete case, the probability distribution is termed
as Probability Mass Function(PMF)
• For the continuous case, the probability distribution is
termed as Probability Density Function(PDF)
PMF- AN example (Rolling two dices)
Probability Mass Function
0.18

0.16

0.14

0.12
Probability

0.10

0.08

0.06

0.04

0.02

0.00
2 3 4 5 6 7 8 9 10 11 12
Outcome
PDF – Normal Distribution(Bell shaped
curve) Normal Distribution
0.45
0.4
0.35
0.3
Probability

0.25
0.2
0.15
0.1
0.05
0
-6 -4 -2 0 2 4 6
Value of z

• The above graph shows the probability dictribution for a


set of outcomes referred to as z values
• From the graph it can be said that probability of z=2 and
z=-2 is equal and its value is .05
• What if we want to find the probability for z>2 or z<3??
CDF
• PDF and PMF gives the probability at a point for
continuous and discrete events
• What if we want to find the probability of a set of events as
mentioned?
• Say from the normal graph, we want to find the probability
of z<2
• The probability will be equal to sum of all probability from -6(the
leftmost point) to 2
• The probability distribution which shows the sum of
probability up to that point is termed as Cumulative
Distribution Function(CDF)
CDF for Discrete case
Probability Mass Function
0.18 CDF
1.2
0.16

0.14 1
Probability

0.12

Cumulative Probability
0.8

0.10
0.6
0.08

0.4
0.06

0.04
0.2

0.02
0
0.00 2 3 4 5 6 7 8 9 10 11 12
2 3 4 5 6 7 8 9 10 11 12 Outcome
Outcome
CDF for Continuous Case
Normal Distribution
0.45
0.4
0.35
0.3
Probability

0.25
0.2
0.15
0.1
0.05
0
-6 -4 -2 0 2 4 6
Value of z

CDF
1.2
Cumulative Probability

1
0.8
0.6
0.4
0.2
0
-8 -6 -4 -2 0 2 4 6 8
-0.2
Z value
Standard Normal Distribution and
Standard Normal Table(Cumulative)
• A normal distribution with mean=μ=0 and standard
deviation=σ=1 is termed as a standard normal distribution
Six Sigma- An Overview
• Developed by Motorola around 1980s

• Focus is on reducing variability of product quality characteristics to a


level at which defects becomes extremely unlikely

• We assume that a particular quality characteristic follow a normal


distribution with mean=μ and standard deviation= σ
Sig Sigma(continued)
• The probability of producing a product within this specification
is .9973 which transforms to around 2700 defective parts per
million(ppm) (Three sigma quality performance)
• Consider a product which has 100 components of above type
and for it to work correctly all 100 must function correctly
• So the probability that a particular product is non-defective from
a basket of such products is given by:
• =.9973*.9973….100times= (.9973)100 =.7631
• So the probability that a product will be defective is around 23%

• Now consider the fact that for a car has around 100000
components and a an airplane has around 1 to2million
components
Six sigma concept

• Reduce the variability in process so that the specification limits


are at least 6 standard deviations(σs) from the mean
• Under such a scenario the probability that the item is non
defective is .9999998 or .2 ppm
• It is assumed that once six sigma level is reached, the process
mean may shift by 1.5σs
Six Sigma – An Overview
• Six sigma is used for improving corporate business
performance by improving quality and lowering costs

• Individuals having special training on statistical methods


and quality management/improvement tools are involved
in implementing six sigma quality improvements

• Designated as Green Belt(least experienced), Black Belt(team


leads) and Master Black Belt(technical experts who work with
multiple teams and share their expertise)
DMAIC - 5 Step Problem Solving Approach
Structured Problem Solving DMAIC
• DMAIC is a structured problem soling methodology that
can be used for cycle time reduction, throughput
improvement etc.

• Each stage is followed by a “tollgate”


• Evaluation after completion of a particular stage to ensure project is
on track and to allow suggestions for modification

• It uses a small set of powerful tools that can be


specifically applied to each of the steps
• Cause and Effect->Measure
• Process capability analysis ->Measure
• Hypothesis Testing-> Analyze
Define
• Objective is to identify and validate a project opportunity
• Project must be important to customer as well as the business
• Project charter to be prepared
Define
• Graphical understanding of flow in a process-SIPOC
Diagram

• Action plan for moving forward to other steps


• Tentative timeline, individual work assignments etc.
• Tollgate review
• Are stakeholders identified?
• Is the symptom appropriately being focussed?
Measure
• This step involves collection of data relating to quality, cost,
throughput time etc.
• Develop a list of Key Process Input Variable(KPIV) and Key Process
Output Variable(KPOV)
• Data collected tells us about the current state or baseline
performance
• Important to measure the capability of measurement system using
tools gauge repeatability and reproducibility
• Data collected can be displayed in forms of Pareto charts,
histogram
• If needed project charter to be updated and team makeup to be
revaluated
• Tollgate Review
• All assumptions made for data collection
• Complete process flow chart
Analyse
• Objective is to use data collected from previous step to
understand cause-and-effect relationship and to identify
sources of variability
• Identify sources of common cause and assignable cause
• Several tools are used in this step
• Control charts to separate common cause from assignable cause
• Hypothesis testing and confidence interval estimation to determine
if different conditions of operation produce statistically different
results
• Regression analysis to model dependent and independent
variables
Analyse (continued)
• Failure Modes and Effects Analysis(FMEA)
• Used to prioritize different sources of error, variability or failure
according to:
• The likelihood that something will go wrong (ranked on a 1 to 10 scale with
1 = not likely and 10 = almost certain).
• The ability to detect a failure, defect or error (ranked on a 1 to 10 scale with
1 = very likely to detect and 10 = very unlikely to detect).
• The severity of a failure, defect or error (ranked on a 1 to 10 scale with 1 =
little impact and 10 = extreme impact, including extreme financial loss,
injury, or loss of life).
• The three scores are multiplied to obtain a Risk Priority Number(RPN)
• Tollgate Review
• What opportunities are to be targeted for investigation?
• Will the investigation of these opportunities help the desired outcome
Improve
• Creative thinking to about the specific change that can be
made in the process
• Redesigning process to eliminate bottleneck/reduce
wastes
• Mistake proofing – One correct way of doing things
• Develop a solution and do a pilot test for the study
• Tollgate Review
• Adequate documentation of how the problem solution was obtained
• Results of pilot test including data display, analysis, experiments
and simulation analysis
• Plans to implement the pilot test results on a full-scale basis
• Analysis of any risks of implementing the solution, and appropriate
risk-management plans
Control
• Objective is to complete all remaining project and to hand
off the improved process to the owner along with a
process control plan
• The process owner should be provided with before and
after data on key process metrics, operations and training
documents, and updated current process maps
• Control charts are an important statistical tool used in the
control step of DMAIC
• Tollgate Review
• A summary of lessons learned from the project should be available
• Data illustrating that the before and after results are in line with the
project charter should be available
• A list of opportunities to use the results of the project in other parts
of the business should be prepared
Examples of implementation of DMAIC
• DuPont Litigation Case- To develop an efficient process to
allow timely access to needed documents with minimal
errors
• Define
• Rapid and error free access to needed documents
• Project team - Process owners, Legal Subject matter experts,
clerks, information systems specialist and a Black belt in six sigma
process
• Focus on CTQs involving reduction of cycle time, reduction of
errors, elimination of non-value-added process activities, and
reduction of costs
• Started by mapping the entire document-production process
DuPont Litigation Case (continued)
• Measure
• The team measured the degree to which the CTQs were being met
by reviewing data in the electronic data base; obtaining actual
invoices etc.
• Errors: copy of wrong/confidential document
• Analyze
• FMEA analysis highlighted issues that required attention
• Team interviewed persons involved in the process to understand
the flow of work and the nature of problems
• Some root causes identified included
• A high turnover rate for the contractor’s clerks.
• Inadequate training
• The large volume of documents
DuPont Litigation Case (continued)
• Improve
• the team proposed a digital scanning system for the documents
• Solution rejected earlier because of higher costs
• Actual loss in terms of errors etc. was identified to be higher
• Worked with IT team to identify appropriate system
• Control
• Design of the new system to automatically track and report the
estimated costs per document
• The system also tracked performance on other critical CTQs and
reported the information to users of the process
• Explanations about how the new system worked and necessary
training were provided for all those who used the system
A second example – Improving On Time
Delivery
• Problem
• On-time deliveries were at 85%, instead of the desired target value of
100%
• Customer penalty clause of 15%
• Customer concern regarding capability and schedule adherence of
supplier

• Define
• Objective: 100% on-time delivery.
• Maintaining a satisfied customer

• Measure
• The contractual lead time for delivery of the tool was eight weeks
• The CTQ for this process was to meet the target contractual lead time
• Certain historical data were available
Process Map
Improving On Time Delivery
• Analyze
• Supplier quality issues
• Purchase order process delay
• Delay in customer confirmation
• Incorrect tool configuration orders
• Improve
• Supplier Quality Control and Improvement
• Improve the Internal Purchase Order Process
• Improve the Ordering Process with the Customer
• Control
• Developed a new process map
Improved Process Map
DMADV
• A variation of DMAIC used for customer focussed services
like product improvement, product adjustment or new
product development
• Define
• Identify the needs and wants of customer through customer review,
feedback etc.
• Measure
• Process required to manufacture the product/deliver the service are
assigned metrics
• Analyze
• Results of manufacturing/service delivery process is tested by
internal teams
DMADV (continued)
• Design
• Results of the internal tests are compared with identified client
requirements
• Adjustments (if required) are made
• Improved process is tested and presented to test customer groups
for feedback
• Verify
• Continuous adjustment while product/service is delivered
• New metrics to track and review customer feedback and review
• Other area may be identified which may lead to new DMADV
cycles
Three Generations of Six Sigma
• Six sigma implementation can be divided into three
generations
• The first generation focussed on defect elimination and
variability reduction
• Motorola is the best example
• Second generation mainly focussed on integrating the
above with improved business performance through cost
reduction
• GE is a pioneer in such efforts
• Third generation is marked by focus on creating value
throughout the organization and for its stakeholders
• Owners, employees, customers, suppliers
Six Sigma Organization
DFSS and Lean
• Six sigma is often used in conjunction with DFSS and
Lean
• DFSS- Design for Six sigma
• Used for new product development
• VoC(Voice of Customer) is used for identification of new products
• Critical quality requirements for such product are then developed
• In place of DMAIC, DMADV(D-Design, V-Verify) is used
• Lean uses several tools of industrial engineering and
operations research
• Use of simulation models to predict performance of new/redesigned
systems
Combined Usage Model
Link between Quality and Productivity
• Rapid evolution of technology->urgency to exploit the new
technology->problems in designing and manufacturing
superior quality products
• Dimensions of an optimal process
• Economy, efficiency, productivity, quality
• Effective quality improvement can be instrumental in increasing
productivity and reducing cost
• Basic categories of quality cost
• Prevention Costs – new product review, Burn-in, Training etc.
• Appraisal Costs – Inspection of incoming/outgoing products,
maintaining accuracy of test equipment
• Internal Failure Costs- Scrap, Rework, Downtime, Failure Analysis
• External Failure costs- Warranty charges, liability costs, Complaint
adjustment
Implementing Quality Improvement
• Management must recognize that quality is a multifaceted
entity

• Important step of strategic quality management is


identification of those dimensions in which the
organization will compete
• Select and develop the “niches” of quality

• In industries where a high percentage of parts in the end


item are manufactured by outside suppliers, selecting
suppliers is an important task
• Selection of suppliers should be based on quality, schedule, and
cost, rather than on cost alone
Implementing Quality Improvement
• Quality improvement must be a total, company-wide
activity, and that every organizational unit must actively
participate
• A significant challenge to senior management
• Responsibility of quality assurance is to assist management in
providing quality assurance for the companies’ products

• All of the individuals in the organization must have an


understanding of the basic tools of quality improvement
• There must be some specialised experts but everyone should know
the basics
Toyota Production System(TPS)
• Developed by Toyota Motor Corporation to
• Provide best quality
• Lowest cost
• Shortest lead time
• It consist of two pillars
• Jut in Time
• Jidoka
• TPS - Taiichi Ohno
• Jidoka – Sakichi Toyoda
• JIT – Kiichiro Toyoda
• The Machine that Change World
• Published by MIT in 1990
Kaizen
• Kaizen consist of two words (Kai->change) and (Zen->good)

• Broad philosophy is to focus on continuous improvement on all


aspects of life

• Removing all forms of waste


• Focus on standardizing activities and processes

• It is a 7 step cyclic process that involves several iterations


• Identify an opportunity
• Analyse the process
• Develop an optimal solution
• Implement the solution
• Implement the solution
• Study the result
• Standardize the solution
• Plan for the future
Some Areas covered under Kaizen
• Quality
• Better product/service, reduced cost, process and methods
• Cost
• Reduction of expense and waste of manpower, better use of
energy etc.
• Delivery
• Reducing delivery time, elimination of non-value adding activity
• Management
• Training, planning, documentation, information flow
• Management support and action is of prime importance
• Safety
• Reducing hazardous process/methods, unsafe working condition,
damage to environment etc.
Execution of Kaizen
• Kaizen should be preceded by a careful consideration of
the three states
• Now: Present Condition
• Next: Desired State
• New: How to Reach that State
• A possible three stage implementation process
• Encourage participation: Promoting kaizen specific activities
through monetary or other benefits
• Training and Education: Desired training to understand principles
and problem solving techniques
• Quality Level Improvement: Focus on alignment with organizational
objective and planning objective
References
• http://www.sae.org/manufacturing/lean/column/leanjun01.htm
• https://en.wikipedia.org/wiki/W._Edwards_Deming
• Picture of Deming
• https://en.wikipedia.org/wiki/Joseph_M._Juran
• Picture of Juran
• http://mitsloan.mit.edu/alumnimagazine/ss09-alumni-news.php
• Picture of Feigenbaum
• https://www.isixsigma.com/methodology/kaizen/kaizen-six-
sigma-ensures-continuous-improvement/
• http://businesscasestudies.co.uk/leyland-trucks/continuous-
improvement-within-an-organisation/continuous-improvement-
or-kaizen.html#axzz4Un8Si4k9
• Kaizen case study example
References
• https://www.villanovau.com/resources/six-sigma/six-
sigma-methodology-dmadv/#.WGz54IVOLIU

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