Unit-3

Techniques of TQM
Benchmarking
Benchmarking is a systematic method by
which organization can measure themselves
against the best industry practices.

Essence of BM is the process of borrowing

ideas and adapting them to gain competitive
advantage.
Benchmarking is the process of improving
performance by continuously identifying,
understanding and adapting outstanding
practices found inside and outside the
organization.
Definition
• Bench Mark is the systematic search for best
practice, innovative ideas and highly effective
operating procedure.
• Benchmarking is a process of measuring the
performance of a company's products,
services, or processes against those of another
business considered to be the best in the
industry, aka “best in class.”
Definition
• Bench marking is defined as measuring the
performance against of the best in class
companies, determining home the best in class
achieve those performance levels and using
the information as a basis for company target,
strategies and implementation.
 BENCHMARKING CONCEPT
What is our What are others’
performance level performance levels?
How did they get there

Creative
Adaptation

Breakthrough
Performance

5
Reasons for Bench Marking
• To achieve Business & Competitive Objectives.
• Goals & Objectives Based on External
Environment.
• Cost Efficient.
• Continuous Improvement & New
Development.
 Bench Marking Process
Phases S.no Steps
1 Earmark what is to be Bench Marked ?

Planning 2 Identify the best competitor

3 Determine the data collection method

and start collecting data

4 Determine the current performance GAP

Analysis
5 Project future performance levels
 Phases S.no Steps
6 Communicate bench mark findings and
gain acceptance
Integration
7 Establish Functional Goals

8 Develop Action Plans

Action

9 Implement specific actions and monitor

Progress
Phases S.no Steps
10 Recalibrate Benchmarks
Maturity
11 Attain the Leadership position

12 Integrate Practice into the Process

Types of Benchmarking
1. Strategic Benchmarking
• It is used where organizations seek to
improve their overall performance by
examining the long term strategies and
general approaches that have enabled high
performers to succeed.
• Identify the fundamental lessons and winning
strategies that have enabled high performing
companies to be successful in their
marketplaces.
• Strategic benchmarking examines how
companies compete and is ideal for
corporations with a long-term perspective.
• It considering high level aspects such as core
competencies developing new products and
services.
2. Performance Benchmarking
• It is used where organisations consider their
positions in relations to performance
characteristics of key product and services.
Benchmarking partners are drawn from the
same sector.
• However in the commercial world it is
common for companies to undertake this type
of benchmarking through trade associations or
third parties to protect confidentiality.
3. Process benchmarking
• An organization researches its organizational
processes to find out what the strengths of
other organizations are.
• Analyses are made of the activities with
respect to successful processes for reasons of
cost reduction and efficiency.
• Process benchmarking invariably involves
producing process maps to facilitate
comparison and analysis.
4. Product benchmarking
• New products or upgrades for current
products are designed based on comparative
research.
• By comparing the competitors’ products, the
organization will discover the strengths and
weaknesses of the current product.
5. Functional Benchmarking
• It is used when organisations look to
benchmark with partners drawn from
different business sectors or areas of activity
to find ways of improving similar functions or
work processes.
• This sort of benchmarking can lead to
innovations and dramatic improvements.
6. Internal Benchmarking
• It involves seeking partners from within the
same organisations, for example from business
units located in different areas.
• The main advantages of internal benchmarking
are that access to sensitive data and
information are easier.
• Real innovations may be lacking and best in
class performance is more likely
7. External Benchmarking
• It involves seeking outside organisations that
are known to best in class. External
benchmarking provides opportunities of
learning from those who are at the leading
edge.
• In addition this type of benchmarking may
take up more time and resource to ensure the
comparability of data and information.
8. International Benchmarking
• It is used where partners are sought from
other countries because best practitioners are
located elsewhere in the world.
 Quality Function Deployment (QFD)
Quality Function Deployment (QFD) is a
systematic process for motivating a business to
focus on its customers.
It is used by cross-functional teams to identify
and resolve issues involve in providing
products, processes, services and strategies
which will more than satisfy their customers.
Why use QFD?
To improve the communication of customer
wants throughout the organization.

To improve the completeness of specifications

and to make them traceable directly to
customer wants and needs.
Definition
• QFD may be defined as a system for translating
consumer requirements into appropriate
requirements at every stage, from research
through product design and development, to
manufacture, distribution ,installation and
marketing, sales and service.
Benefits Of QFD
• Promotes better understanding of customer
demands
• Improves Customer Satisfaction
• Reduces Development Time
• Improves Team Work
• Reduces Cost
• Quick New Product Release
• Documentation
• Critical Quality Features
• Right Technology
 Process of QFD
• QFD is a process which brings together the
lifecycle of a product from its conception
through design,manufacture,distribution and
use, until the product has in the customers
opinion, served its expected life. The
management of QFD ensures that vital
customers satisfaction and excitement
attributes are recognized and developed so
that the company can achieve a competitive
edge.
Step 1: Customer Requirements - "Voice of the
Customer”
Step 2: Regulatory Requirements
Step 3: Customer Importance Ratings
Step 4: Customer Rating of the Competition
Step 5: Technical Descriptors - "Voice of the
Engineer”
Step 6: Direction of Improvement
Step 7: Relationship Matrix
Step 8: Organizational Difficulty
QFD Methodology
Step 1 : List Customer requirement
(Customer identification, likes and dislikes)
Step 2 : List Technical Descriptors
(Translate customer wants into design
characteristics)
Step 3: Develop a Relationship Matrix
(Investigate relationship between customer
expectations and technical descriptors)
Step 4: Develop an Interrelationship
( Identify interrelationship between each
technical descriptors)
Step 5: Competitive Assessment
( Compare the performance of the product with
competitive products)
 House of Quality
• House of Quality is a diagram, resembling a
house, used for defining the relationship
between customer desired and the
firms/product capabilities.
• It is a part of the quality function deployment
and it utilizes a planning matrix to relate what
the customer wants to how a firms is going to
meet those wants.
 Steps to the House of Quality
Step 1: Customer Requirement- “Voice of the
Customer”- What the customer need or
expects.
Step 2: Technical Descriptors- “ Voice of the
Engineer”- How to design a product that will
meet the customer requirements.
Step 3: Relationship Matrix: Relationship
between the technical descriptors and the
customers need.
Step 4: Correlation Matrix-Relationship between
the technical descriptors impact each other.
The Correlation Matrix is probably the least
used room in the House of Quality.
Step 5: Competitive Assessment – Customer
Competitive Assessment/Technical
Competitive Assessment
 Failure Mode and Effect Analysis(FMEA)
Failure: The loss of an intended function of a
device under stated conditions.
Failure Mode: The manner by which a failure is
observed ;it generally describes the way the
failure occurs.
Failure effect: Immediate consequences of failure
on operation, function or functionality or
status of some item.
 Failure Mode and Effect Analysis(FMEA)
• Failure Mode and Effect Analysis is a
systematic approach to analyzing causes and
effect to predict failures.
• It begins with listing the functions of the
products and each of its parts.
• Failure mode such as fatigue,
leakage,buckling,binding or excessive force
required are then defined.
• It is a group of activities comprising the
following :
1. Recognize the potential failure of a product or
process.
2. Identify actions that eliminate / reduce the
potential failure.
3. Document the process.
Intent of FMEA :
• Continually measuring the reliability of a
machine, product or process.
• To detect the potential product - related failure
mode.
• FMEA evaluation to be conducted immediately
following the design phase.
FMEA TEAM :
• Engineers from
• - Assembly - Manufacturing - Materials -
Quality - Service - Supplier - Customer
Benefits of FMEA
• Reduces costs
• Prioritizes risk
• Engineering/Manufacturing Knowledge Base
• Prevents failures before they happen
• Identifies controls needed
• Identifies where to focus
• Essential to continuous improvement
• Essential to Quality
 Process /Procedure of FMES
Step 1: Severity
Step 2 : Occurrence
Step 3 : Detection
Step 1: Severity
• Determine all failure modes based on the
functional requirements and their effects.
• Examples of failure modes are: Electrical
short-circuting, corrosion or deformation.
• A failure mode in one component can lead to a
failure mode in another component, therefore
should be listed in technical terms and for
function.
• A failure effect is defined as the result of a
failure mode on the function of the system as
perceived by the user.
Step 2 : Occurrence
• Looks at the cause of a failure mode and the
number of times it occurs
• All the potential causes for a failure mode
should be identified and documented in
technical terms.
• A failure mode is given an occurrence rankin,
again 1-10. This step is called the detailed
development section of the FMEA process.
• Occurrence also can be defined as %.If a non
safety issue happened less than1%, we can
give 1to it based on your customer satisfaction.
Step 3: Detection
• An engineer should look at the current
controls of the system, that prevent failure
modes from occurring or which detect the
failure before it reaches the customers.
• Identifying testing, analysis, monitoring and
other techniques that can be or have been used
on similar systems to detect failures.
• Likeliness for failure is identified or detected.
 Types of FMEA
1. Process: Analysis of manufacturing and
assembly processes
2. Design: Analysis of products prior to
production.
3. Concept: Analysis of systems or subsystems in
the early design concept stages
4. Equipment: Analysis of machinery and
equipment design before purchase
5. Service: Analysis of service industry
processes before they are released to impact
the customer
6. System: Analysis of the global system
functions
7. Software: Analysis of the software functions.
 Uses of FMEA
• Development of system requirements that
minimizes the likelihood of failures.
• Development of methods to design and test
systems to ensure that the failures have been
eliminated.
• Evaluation of the requirements of the
customer to ensure that those do not give rise
to potential failures.
• Identification of certain design characteristics
that contribute to failures, and minimize or
eliminate those effects.
Advantages
• Improve the quality, reliability and safety of a
product/process
• Improve company image and competitiveness
• Increase user satisfaction
• Reduce system development timing and cost
• Collect information to reduce future failures
capture engineering knowledge
• Reduce the potential for warranty concerns
• Early identification and elimination of
potential failure modes.
• Emphasize problem prevention
• Minimize late changes and associated cost
• Catalyst for teamwork and ides exchange
between functions.
• Reduce the possibility of same kind of failure
in future
• Reduce impact of profit margin company
• Reduce possible scarp in production
• To produce world class quality products