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UNIT 3 TOOLS OF QUALITY

Structure

3.1 Introduction

Objectives

3.2 Elements of TQM

3.3 Seven QC Tools for Improvement

3.3.1 Affinity Diagram 3.3.2 Tree Diagram 3.3.3 Interrelations Diagram

3.3.4 Prioritization Matrices

3.3.5 Process Decision Program Chart (PDPC)

3.3.6 Activity Network Diagram 3.3.7 Matrix Diagram

3.4 Implementation of TQM

3 4 . 1 Integrated Management Approach 3.4.2 Traditional Management Approach 3.4.3 Guidelines while Implementing TQM

3.5 Quality Measurement System

3.5.1 High Cost o f Poor Quality

3.5.2 Improper Time Management 3.5.3 Lack o f Score Keeping

3.6 Summary

3.7 Key Words

3.8 Answers to SAQs

3.1 INTRODUCTION

Total Quality Management is a management approach that originated in the 1950s and has steadily become more popular since the early 1980s. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. This culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations. Scientific methodology can be employed for the implementation of TQM. For this purpose, a number of well-established tools/methodologies can be used.

Objectives

After studying this unit, you should be able to

explain the various elements of TQM,

know the various types of quality tools for improvement,

describe the process of implementing TQM in an organization, and

understand certain aspects of a quality measurement system.

3.2 ELEMENTS OF TOM

TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design, planning, and improvement initiatives. To be

~ ; r i i t ~ Systems successful in implementing TQM, an organization must concentrate on the following eight key elements :

(i) Ethics,

(ii) Integrity,

(iii) Trust,

(iv) Training,

(v) Teamwork,

(vi) Leadership,

(vii) Recognition, and

(viii) Communication.

These elements can be divided into four groups according to their function. These groups namely foundation, bricks, binding mortar and roof constitute the necessary features of a house as shown in Figure 3.1.

Training

Teamwork

=. Leademhlp

I Ethics, integfity and Trust I Communication

Figure 3.1: The 8 Elements of T Q M

Foundation

TQM is built on a foundation of ethics, integrity and trust. It promotes openness, fairness and sincerity and allows involvement by everyone. These three elements move together, however, each element offers something different to the TQM concept.

Ethics

Ethics is the discipline concerned with good and bad in any situation. It is a two-faced subject represented by organizational and individual ethics. Organizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their work. Individual ethics include personal rights or wrongs.

Integrity

Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity. These are the characteristic that the customers (internal or external) expect and deserve to receive. People see the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity.

Trust Tools of Quality

Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built. Trust promotes full participation of all members. It allows empowerment that encourages pride in ownership and also encourages commitment. It allows decision making at appropriate levels in the organization, promote individual risk-taking for continuous improvement and helps ensure that measurements focus on improvement of process. Trust is essential to ensure customer satisfaction. So, trust builds the cooperative environment essential for TQM. The interrelationship between ethics, integrity and trust is shown in Figure 3.2.

Figure 3.2: Interrelationship between Ethics, Integrity and Trust

Bricks

On the basis of strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of recognition. It includes training, teamwork and leadership.

Training

During the creation and formation of TQM, employees are trained so that they can become effective employees for the company. Training that employees require are interpersonal skills, the ability to function within teams, problem solving, decision making, job management, performance analysis, business economics and technical skills. Supervisors play an important role in implementing TQM within their departments, because they impart training and teach the employees the philosophies of TQM.

Teamwork

Teamwork is a key element of TQM to bring success. With the use of teams, the business will receive quicker and better solutions to problems. Teams also provide more permanent improvements in processes and operations. In teams, people feel more comfortable bringing up problems that may occur, and can get help from other workers to find a solution and put into place. There are mainly three types of teams that TQM organizations adopt. These are :

Quality Improvement Teams or Excellence Teams : These are temporary teams with the purpose of dealing with specific problems that often re-occur. These teams are set up for a period of three to twelve months.

Problem Solving Teams : These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one week to three months.

Natural Work Teams : These teams consist of small groups of skilled workers who share tasks and responsibilities. These teams use concepts such as employee involvement teams, self-managing teams and quality circles. These teams generally work for one to two hours a week.

Quality Systems Leadership

It is possibly the most important element in TQM. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to encourage values that guide subordinates. For TQM to be successful in the organization, the supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it and then demonstrate the belief and commitment through the daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are transmitted down throughout the organization to provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top management. Commitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the objectives of the company and in creating and deploying well-defined systems, methods and performance measures for achieving those goals.

Binding Mortar

From foundation to roof of the TQM house, everything is bonded by the strong mortar of communication.

Communication

Communication acts as a vital link between all elements of TQM. Communication means a common understanding of ideas between the sender and the receiver. The role of sender and receiver can be played by anyone who is actively participating to realize the goal of achieving TQM. The success of TQM demands communication with all personnel within the department or among departments, the suppliers and customers. Supervisors must keep open the means through which employees can send and receive information about the TQM process. It is vital that ideas, thoughts and results of actions are being shared correctly. The communication process can be said to be credible only if receiver interprets in the way the sender intended. Communication follows different ways such as :

8 Downward Communication : This is the dominant form of communication in an organization. Presentations and discussions basically do it. By this the supervisors are able to make the workers conversant with TQM.

8 Upward Communication : By this the lower level of employees are able to provide suggestions to upper management of the effects of TQM. As employees provide insight and constructive criticism, supervisors must listen effectively to correct the situation that comes about through the use of TQM. This forms a level of trust between supervisors and workers.

8 Sideways Communication : This type of communication is important because it breaks down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner.

Roof

The roof of the TQM house is built with recognition.

Recognition

Recognition is the last and final element in the entire system. A team or an individual should be given the r .i .~gnition for the suggestions and achievements. Recognition comes in its best form when it immediately

follows an action that an employee has performed. Recognition can be a . positive factor to changes in self-esteem, productivity, quality and the amount of effort to the task at hand. Recognition comes in different ways, places and time such as,

Ways : It can be by way of personal letter from top management or by awards.

Places : Good performers can be recognized in front of departments, on performance boards and also in front of top management.

Time : Recognition can be given at staff meetings, annual awards ceremony, etc.

It is very clear from the above discussion that TQM without involving integrity, ethics and trust would be an incomplete mission. Training is the key by which the organization creates a TQM environment. Leadership and teamwork go hand in hand. Communication between departments, supervisors and workers create the liveliness in the whole TQM process. Last but not the least, recognition should be given to people who contributed to the overall completed task. Hence, lead by example, train employees to provide a quality product, create an environment where there is no fear to share knowledge, and give credit where credit is due should be the motto of a successful TQM organization.

3.3 SEVEN OC TOOLS FOR IMPROVEMENT

The new seven quality tools were adopted with the aim of developing quality control techniques with a design approach. Design approach implies that the best way of tackling a problem is decided before actually solving the problem. Since these tools are capable of identifying a problem from verbal facts they are used mainly for the qualitative problems in nature. When used in conjunction with original Basic Seven Tools (Flowcharting, Cause and Effect Diagrams, Pareto Analysis, Run Charts, Control Charts and Histograms), it increases TQM effectiveness. Figure 3.3 illustrates the difference in approach between the use of Basic Seven Tools and the Seven New Tools.

I Data /

Numerical Data rT& Define problem before

Collecting numerical data Collecting numerical data

The Seven New T 001s

[=%- pzF/) Formulate Plans

Tools of Quality

Figure 3.3 : Relation between New Seven QC Tools and Basic Seven Tools

Quality Systems The basic seven tools rely on numerical data to give shape to the problem and make use of mathematical formulas. The new tools, on the other hand, act on a predefined problem and are used to organize verbal data into a more structured form. The Japanese realized the new seven quality tools were the most effective, which entered them into the second wave of quality. Following are the Seven New Quality Control tools.

3.3.1 Affinity Diagram An Affinity diagram is used to pinpoint the problem in a chaotic situation and generating solution strategies. It involves gathering of large amounts of inter-related'verbal data (ideas, opinions) concerning a product or process. This is followed by organizing the data into groups based on natural relationship or affinity. This affinity makes it feasible for further analysis and to find a solution to the problem.

-..

The steps for constructing zin affinity diagram are as follows :

(i) State the issue or problem.

(ii) Brainstorm and record all verbal data including ideas. Write each idea on a card. Pile data cards into groups of similar themes (natural affinity for each other).

(iii) Combine statements on data cards to new affinity statement.

(iv) Make new card with affinity statement. Continue to combine until less than five groups remain.

(vi) Lay the groups out, keeping the affinity clusters together.

Complete the diagram as shown in Figure 3.4.

Main idea A Main idea B Main idea C

The advantages of Affinity diagrams are :

It facilitates breakthrough in thinking and stimulates fresh ideas.

It permits the problem to be pinned down accurately.

3.3.2 Tree Diagram

The tree diagram is a systematic methodology that helps develop a succession of strategies for achieving objectives. The purpose of making a tree diagram is to generate the most specific level of action items that can be implemented to accomplish a broader goal. They are also known as Systematic diagrams or Dendrograms. The steps to construct the tree diagram are as follows :

(i) Record the problem or goal and identi& constraints on how objective can be achieved.

(ii) Generate the primary mean of achieving objective by asking questions like : "What needs to happen to achieve this goal or solve this problem?"

(iii) Review each system of means in both directions, i.e. from objective to means and means to objective. Figure 3.5 shows how the development of

means and confirmation of objective are carried out through the entire process of building a tree diagram.

(iv) Take each primary mean and ask questions of achieving it (secondary means). Continue expanding to next level of means by asking more specific questions.

(v) Review the tree diagram. Start with the last level and ask: "Will this set of items achieve the next higher level?" If the answer is yes for every level, then the diagram is complete. If not, then redo the diagram.

Development of the Means b

Question : How? - Ways and Means -

Ways and Question Why? Means

Limitations Question : Why?

. Confirmation of Objectives

Figure 3.5 : Tree Diagram

Advantages of' tree diagrams are:

Tree diagrams are very systematic and approaches each objective logically, hence it is less likely that items are omitted.

Tree diagrams facilitate agreement among team.

3.3.3 Interrelations Diagram

lnterrelations diagram is a tool for finding solution to problems that have complex relationships. The purpose of making it is to identify the root causes and root effects of a problem. Root causes are those factors or aspects of a problem, which primarily influence other factors and root effects are those factors of a problem, which are primarily influenced by other factors. Following are the steps on how to construct an inter-relationshi p diagram :

Develop the Problem Statement

The problem is presented as a complete sentence and is made clear to all team members.

Develop Issues Related to the Problem

These issues may be the result of a previous activity such as an affinity diagram or a brainstorming session. Each member lists five causes affecting problem.

Arrange the Issues in a Circle

The problem statement is noted at the center of a piece of paper and circle drawn around it. The header cards from the affinity diagram or the causes found after brainstorming are arranged in a circular pattern around the problem statement.

Identify Cause-and-effect Relationships

Using any of the issues as a starting point, the relationships are worked in sequence. For each pair of issues, determine if there is

Tools of Quality

no causeleffect relationship,

Quality Systems a weak causeleffect relationship, >

a strong causeleffect relationship

Draw Arrows to Indicate Directions of Influence

For each relationship pair, draw an arrow fiom the issue that is the cause to the issue that is influenced. For strong relationships, use a solid line. For weaker relationship, draw a dashed line. If some relationships may seem evenly balanced, the arrow must point f ~ o m stronger influenoe.'Never draw two-headed arrows. Figure 3.6 illustrates how the arrows are used to draw a cause and effect relation.

Count the Arrows 1

Once the analysis state is complete, the number of arrows going in and out of each category is counted. The numbers are noted above each category in the form number idnumber out.

Identify the Root Causes and Effects

The root causes are the categories with the greatest number of arrows going out and the effects are the bategories with the greatest number of arrows going in.

The advantages of interrelationship diagrams are: I.

a Useful at planning stage for obtaining perspective on overall situation.

a Facilitates consensus among team.

a Assists to develop and change people's thinking.

a Enables priorities to be identified accurately.

1 In = 0.5 1 Out = 1 1 We don't know

how to solve problems

/

Cause, We don't identiv Effect

Fiprure 3.6: Interrelationship Diagram '

Prioritization matrices are designed to narrow .dow.the. foqus of apy, {yap beforc; detailed implementation planning , . can happen. These i001s should be uied bhen :

' . I I

? L . < ' , , > , - I . f 3 L ' I - 1 < . - . robi ca&s hav< b&n idedfied and mo3t'critical~ b u d s must be

,,. ,t . m o w e d down, . , , .. + , I ~ b - z 5 ~ : - . 7 >. - . --

, $ - When - tM issues afe ebmpl%x and they have strong interrelationshi$;. ?.- 1 - - " " -

a r ' The& are limited {edurces! foi iniprov&erll de@fti'ds so bff6hi must i e ,! . It) - L ' $ 4 .LC, '

1 cmcmtrated on the critibal.fik - .- - - - I - , . ?<' 1 , ' , ,?L '

This apprqach helps to quicklytidintintifl basic disagreements. The apprd&h to construct the prioribtion-matricdsis depend& upunwillingness of teamttrdecide on a consensus: Unless cdnsensdi is understdod and utiliied 'in the dekisioq dkdess, the approach toprio~i4iMim will tbot .Be bffwtive. When e o s ~ e n s u * has k n reaehed, the task of creating a pribritization ,matriaes is started. iF611tiwf~ are thb St@%:

i 3

' - Fist&; the team irivolve? must agi$<o$:t$e goal to be achieved; the agreement must btl clear: concise, and exact. t l l I

. . -> - . - " . - " - 1

, ,, , , Qext,,g list ?;crjteria is created.qrate the ~yj'.pt;lji,p~pib&~~olytipqs. The . c r i t e r i a p q > ~ a : n n w ~ ~ i c a l pcoy i~y~h,as ,C3,q~t ?tt $05 4 out, pf $1 or,? ,, verbal score (such as excellent, good, satisfactory, bad, worse).

,) < 2 , < J I 3 $ ? ,

Make an ~ - i h a ~ e d tabk'as shown in'kablb $11. h e various elements of the 1 . ' ~~o%krn~fe:t#b&d.in~W-Ieft.mt coiumy $hiarr&fletts the needs of the

group. The various options are categorized into plans arull&mged

I( I ) , , horjzontally. , ? , , ! i t J I , is ' t . ~ p l ~ I. * .,.. a , - . *$> ' , - 1 1 < , . P! , 1 . i ~ : ~

Now, coTpare all sqtions relative to each criterion and mark a score. 8 . ::,, z1 , t * , A , j , f ' ,, ;, :,: . , *',I'TJ . L ' ~ , : .

Sum individual ratings to establish overall ranking. 1"iii ,! l .,, : 1.xi; ,*., : , :6 ; t7 ;34 ; v , * ,*,* ,; -

Choose the best pption(s) across all criteria. * 1 - r * , &.{lt, . ' . I t ' ,-I L , , , , , ' '! .

, Table 4.1 .: . ~ - s b a ~ d ~ q ~ k r j t i ~ t i o n ~ a t ~ & , ~ s f o r ~ p r n ~ * ~ j n ~ . ~ e <p,tiom,

The following example illustrates haw,@ psejp5to,r;itifitipq ~ t r i c g ? t@g~q)yi~qg,pultigle problems. Assume that a LPG bottling plant has been facing'a number of problems in the last tkeembdhs:Tlir dq5eddl ~ b p e r WvUt corpo*t&,me~hgf the boaftl .of thanagers have short-listed 5 problems thdt d e 'sumed60 ~~sb@fstoW'~ie9$fl thaplttfit's operation. These problems ~ e , l i s t e d ,,I in . . .,\ the sepond col~,mn,of:Ta~~~~.3.,Each~obleq was subjectpd p a.liu$ of,?nalys;.y, $i $mparpg them ggalyt certg; c i t ~ r i q b or condjtio& (A, B, C 61. l,p,sr&po de6fd$~hi2$p*52bif~$~, ta~kg'fiist a rating scale is devi;ed.~he rjt$;ng:+xi&' $,a nuir;erical, scor/i ykpi yy$t 'o ,~bre~ent how closely the ;&ria i re met. This is showA iA~ab ld 3.F'

6 P < ' * -' 2 'lThbj& 3 3 : kkh"i & k l ~ fdr dgt&;& criieiion ,

4

Tools of Quality

c

Now a matrix is prepared as shown in Table 3.3. Therated score of each criteriod is filled in the cells corresponding to a problem topic. For example, the 'scores of criterions for problem 1 are 5 , 4 , 4 and 4. Finally, the total score is calculated. The highest score represents the project of greatest priority.

. < , . . , l z

D&s ~t met Criterion well

' 2 j ,

Meets ctiterion fairly well

, , +p '

Meets ~tiidrion well

: , , ? . , . < . +

.Meets k t i tehn very well

,, A 5 , Meets criterion extremely well

Quality Systems Table 3.3 : Prioritizing Problems in Order to Identify a Schedule Plan

Based on this rating, the board of LPG Gas bottling plant decides to give priority to the problem of high cost in maintaining centralized compressed air plant.

The advantages of drawing prioritization matrices are as follows :

It forces a team to focus on best things to do, rather than everything they could do.

It limits private agendas since all the criteria identified are team generated.

It increases participation and ownership of both probIems and solutions.

3.3.5 Process Decision Program Chart (PDPC)

The Process Decision Program Chart (PDPC) is a very useful and powerful method to overcome a problem or a goal to be achieved which are not familiar. With the help of PDPC it is possible to map out all the conceivable events or contingencies that can occur in the implementation stage and also find out feasible counter measures to overcome these problems. The idea behind drawing PDPC chart is that "implementation plans do not always progress as anticipated". When problems, technical or othekise, arise, solutions are frequently not apparent. The PDPC method, in response to these kinds of problems, anticipates possible outcomes and prepares countermeasures that will lead to the best possible solutions. For this reason, PDPC is a way of contingency planning. The steps to construct this chart are explained with an example. Figure 3.7 illustrates how contingency planning is camed when testing a lawn mower machine.

The various steps in carrying out this test are as follows :

Determine proposed implementation tasks. In this example, the tasks are testing of wheel, blade and grass box independently.

List activities to achieve the tasks as well as possible outcomes of each task. While testing the wheel, there are two outcomes, either the wheels are working correctly or the wheels skid. Similarly for the blades, either the blades have retained their sharpness or the blades have corroded.

Identify constraints of objective. For example, the weight of lawn mower must not exceed 15 kg.

Prepare contingency plan for each task and review what action is needed if task is not performed well. If the blades have corroded, find out alternative material that cuts wet grass as well.

Examine carefilly to check for inconsistencies and ensure that all important faotors are included.

Lawn Mower Trial w Tools of Quality

Skids ( :!z*) pq Strength

Test with Different

TFImnnt I I Redesign Number WheelTyres I I Blade Material of Reinforcing Ribs

Figure 3.7: The PDPC Chart

The PDPC method can be used to :

establish an implementation plan for management by objectives,

establish an implementation plan for technologydevelopment themes,

enable those involved to understand decision-makers intentions,

facilitate forecasting because it uses past data to anticipate contingencies, and

implement countermeasures to minimize nonconformities in the manufacturing process.

3.3.6 Activity Network Diagram The most popular activity network diagram (AND) is also known as the Program Evaluation Review Technique (PERT). It is used to find the most efficient path and a realistic schedule for the completion of any project by graphically showing the total completion time, the necessary sequence of tasks, those tasks that can be done simultaneously, the critical tasks to monitor, and the slack time of tasks within the project. In order to properly utilize an activity network diagram, it is essential to understand some specific terms used. Some of them are explained below.

Activity

Part of a project represented by an arrow, which has a defined beginning and end, and which requires time and resources.

Event Indicates the start or completion of one or more activities, and is shown graphically as a circle or square. Theoretically, an event is an instant of time.

Best Estimate (B)

Earliest possible completion time.

Quality Systems Worst Estimate (W)

Time required if all goes wrong. ....................... i. ............... .- ................ L

I

Most Likely EstimatC (MI"., .......... I . . . . . . . . .

. ,~* . '., ,>>< ,

Length df tihi; likely neededsi :),!.i ,; - .. . - . . . . . . . . . . . ........... . . . . . . . . . . . . . . .

Expected Time (ET): , . . . .--, . . . . . . . . . . . . . .

The average duraqon time. . . . %

The sequence of activities imposing the most /rigorous time constraini on attainment of the Ma1 event. +

. . . . . . . . . . . . . . . . .... ......................... - - > . . . ....- ................ -* ..-

. ,

i , : : . . - :si,*?-.i! '?,,. ;.;r': ! Earliest Start Tim&: (mT) :+i: :, ; i I : ...:l.:j::.;:'fi:<~,..;.~' ' i i > +;v ; < ' ' '

8 ;;s,;: ..,:;:., . , : ;q i i.,' " 1 , i

Earliest bossible . . . time ...- that .. ---- a i activitycsnwegin;B&ore hnyaetiljq.-may&gin, all activities preceding%.must be completed. $he EST is determirled by a forward pass through the n e d r k , allowing the expeqted time (Q'FJfor each activity.

Latest Start Time (LST) . . - - -- -. -- #

:*c' .%:)~*$i~i$:,o,2 Latest possible time an activi6 ................... can begin and - .... still be completed by the time the next activity must begin. The LST is calculated by starting at the end ofthe network and working baqk%yds,SNqy.$h$$q.~~Work.

. . . . . . . Float (Slack) ,>, , .,: ,.,<,! .:!? f.. I J:,>i-., . . . t f 2 s . - ' . , . L . . . . . . > . '.

Project i ..

Two '&&,& $&i4f&6'8 Gftfi pitGei ijjw-& &P haQ..B ,.;c >.,,, -qi* ,. r : . . q . - , . r . , , . -< : ... schedule of completion, and an end. , r: : ,,..? ~.,,,.,!,-:,,,,

,..",ti-Q ' "' '

To actually construct the AND, the following 3 r ~ 1 k * r ~ i / 8 d 4 ~ ! ' 4-8 - 6 .: ,!.. <t'~?",,",C,

: : . . > l : , : ; ? p I l i ! ::;:j;; ;; !<!,"::,;::.j if($,s+::< .,,,-;.-~~>,!~~,~, . : J ! , : : : ,:.- ;; :!;(;,~,.~.J i,?c,)rcr P -i : ... Ruleit:: ,:::a ;,,li,,jlr ... ..,.,il ,:, bl;.:I ?i f j ;.i,:i:fit: , ,:,iJi*,;!lijL>:;;: .,,;:,: /:;>.j r:!,;(;f;,ij!r -,,

i . t . : ~~cg.mj&y.k$ fe@-$sknW .~kn&:@& mty: m&&j k:thedea&k;:::.:.,; :; ; ; .: : .. ., ;;;J.4; .:(i i : f s ~ ; ;>;<j? :.;;,,.:,, :;25;+,: ,i,,,:,<..;r-j'o C)Gf;.>/,;r>:;,:< y::Y;?;;<; :.,I<. :?;:! ! > , ; ; i ? ! , ~ , w ; . - ~. . ,, '..J .! ; '.!

Rule Tlii <:i<jr!+<, '.;(.z ,;;;:,: , i : ;b ; !c . ~ ; . ~ j ~ . ~ , ? ~ ; : , - ; ~ ~ j ~ f ~ , ~ ~ ~ t ,;>I ; ;:+,;; jL.;;lili-:.> -,{!; ,vfri!,,p::r, ~~~,k~~it). a ~ s g ~ , ~ ~ n t ~ ~ b.y! ~6 dwktie& ndwfi'!c; :, ! ic,ti,!c; nj .: .:i:".:.:

............ ;rt . i r; , C } J ~ , ,2:ti j , .; i t : : J - j : f ; , j : : j , ' ~ ? ' ; ; : . ; ~ i ; f i f ~ , ~ ,j;a,:?l)kfii-s>j .J?j;>>(;. : . , V ~ ! ~ j ~ ~ ( i ~ , ~ . : ! : ~ ; ~ ; j ; :

Rule 3 vdi'.~i.e:h.t;

To rnaintain,the coqect relationship,,the folloying 7 <;,>.!'; ,!(, ;> ,$>;7iiic' ;!,a; <.: h'j!!;.~, ,

' . , 2 P > --.'.'.* uestions must be answered as

' . . & ;,'i.:i :;:,,n: ?.~>[fis.! . ; : , r ~ ! , ? < ~ )9 36" ea& acfivdj 1s add~diti't?i=fi&woik ....... : - , !$. ":

:I? i , , : $ \ !>I;[;! ,>Y!?$:L:>,i :,.:,.>ij-;\$- b p J i t ;

What activity must immediately precede the current activity? 3 i-i:. !

What, activity ,must follow the current Wiwity?

What activitiks must o w concurrentfy with' the current adtivitiek? r , * , :

For example, consider the task of preparing a budget for launching a new product. Table 3.4 provides the duration of each activity and the sequence of preceding activities essential for making a budget.

Table 3.4 : Activities and Duration to Prepare a Budget for a New Product

It can be noted that

(i) Activities A and B have no activity preceding them.

(ii) Activity C can start immediately after A is completed.

(iii) Activities D and E can start immediately only after C and D respectively are completed.

(iv) Activities E and F each have two immediately preceding activities, i.e (B, E) and (E, F) respectively.

With the above conditions and denoting an activity by an arrow and an event by a node, the network can be constructed. To account for the fact that E immediately precedes both F and G while E and F immediately precede G, dummy activities are used. The activity network diagram for the above problem is shown in Figure 3.8. The dotted lines represent dummy activities.

Figure 3.8 : Activity Network Diagram

3.3.7 Matrix Diagram

The matrix diagram method is designed to seek out principal factors from many characteristics concerning a subject under study. The matrix diagram helps to advance the process of problem solving by indicating the presence and degree of strength of a relationship between two sets offactors. By using the intersecting points of the factors, the experimenter may determine the strength of the relationship. A matrix diagram can

Tools of Quality

Quality Systems be used to compare the results of implementing a new manufacturing process to the needs of a customer. The common matrix diagrams are T-type, Y-type, X-type and c-type.

As an example of matrix diagram, assume that a restaurant manager wants to improve the customer's dining experience. The factors by which he can bring about an improvement are food, staff and atmosphere of the restaurant. There are six types of options to be considered: Improve the quality of food, improve the quality of service, increase budget for decoration, add staff, and decrease menu prices. The factors and options are tabulated as shown in Table 3.5. Impact of each option is rated as 1,2 or 3, 3 indicating a high impact and 1 indicating a low impact. From the table, it is seen that maximum impact is possible in the case of staff, followed by food and atmosphere.

Table 3.5 : An Example of a Matrix Diagram

SAQ 1

(a) The best estimate, most likely estimate and worst estimate for the three tasks are shown in the figure below. If the first task begins on day zero, on what day can the third task be expected to complete?

OPTIONS

FACTORS

Food

Staff

Atmosphere

(b) What are the eight elements of TQM?

3.4 IMPLEMENTATION OF TQM

Increase Budget for Decoration

2

Improve Quality of

Food

3

An organization should be healthy before beginning TQM. Basically, three types of scenario exist in any organization.

Decrease Menu Prices

1

Add Staff

2

Improve Quality of

Service

3

(i) The organization has a track record of effective responsiveness to the environment. In the past, it has successfully modified its operation when needed. Such an organization is an ideal case where TQM will be easier to implement.

Total

4

5

2

(ii) The organization has been performing well in the past but has no skill at improving its operating systems to current standards. No one has seen what changes can bring about. The employee looks into change with doubt. Ifthis condition prevails, a comprehensive program of management arld leadership development may be necessary. A majority of industries face this situation.

(iii) The organization has significant problems such as a very unstable funding base, weak administrative systems, lack of managerial skill, or poor employee morale. In this scene, TQM would not be appropriate.

In case the organization is inexperienced with dealing in change, a program of management,and leadership development can update the knowledge base. This makes the employees slowly praise the benefits of change. For example, if the existing quality of working life of the worker improve with change, he will appreciate change. If the current reality of an organization does not indicate good health, TQM implementation should be delayed until the organization is in a state in which TQM is likely to succeed. In the next two sub-sections, you will come to know of two types of approaches used to implement TQM in an organization.

3.4.1 Integrated Management Approach

In this approach, the principles of TQM are blended and balanced with existing practices in both organizational and human resource (employee) management systems. The management asks for a third party assistance, who is an expert in the field, in order to establish TQM in the company. This approach represents the 20% success rate of TQMs. It is divided into two sub-choices, depending upon managerial resources, readiness, acceptance, and competencies. In both sub-choices one and two, TQM finds a way to blend both bottom-line organizational realities with individual human realities into a unique set of quality beliefs and actions.

Sub-choice One

TQM can be approached as a concept of management that adjusts and restores management in producing end product or services resulting in customer satisfaction. In this case, management and individuals of the organization are usually operating fairly effectively and the culture is supportive of accepting innovation. In such a scenario, TQM becomes the "accepted advantage" in beating competition for gaining customers, loyalties etc. Thus, successful TQM implementation can be done internally without much external help.

Sub-choice Two

TQM can also be approached as a system of management that provides processes and competencies currently lacking and needed by management. Some of the basic areas include decision-making and traditional areas of measurement. In these cases, companies benefit from well-designed "TQM Initiatives" that have the external power for changing culture to a supportive role. The TQM's role in this instance is much greater, as it must enlighten the individuals and systems in the organization in areas essential to healthy TQM.

3.4.2 ~raditional Management Approach

This is the most common approach, and is also the cause of most of the failures. It involves overlaying (or forcing) of TQM system (s) and processes onto (or into) existing cultures without negotiating with or gaining commitment to their impact on individual's lives. The management sees TQM as a technical process only. As usual, a third party expert group is called for making the change. Since these groups are expensive to employ, the companies try to extract maximum benefit within a limited period. In most cases, the employees are subjected to a series of training lectures. This quick spell on TQM aims to change the behaviour of employees but does not aim for a cultural change that supports the behaviour change. In fact, with proper guidance and training, it is possible to change attitudes of employees within weeks and months. However, sustainable culture change takes a minimum of three years before total impact is seen.

Tools of Quality

Quality Systems The consequence of such a limited focus is that employees tolerate the changes in the initial period, but as there is no real agenda of what change to bring into the personal lives of employees or the health of the organization, it remains a concept. When money runs out or a new idea comes along the company quickly abandons this concept too.

3.4.3 Guidelines while Implementing TQM

There is no one right way to implement TQM successfully in an organization. Due to the variation of cultures, each organization is unique and as such, there is no guaranteed formula for success. The steps, which help in implementation of TQM, are as follows :

Recognize at the Beginning that the Organization is Unique

As a consequence, one should not borrow someone else's experience and try to fit into it. It would not work even though the model organization was very successful with it.

Conduct a Need Assessment

It is not fruitful to develop improvement plans before conducting a needs assessment. The need assessment helps develop a strategy for improvement. This is done by identifying vital processes to be targeted for change. It also provides a baseline measurement for judging progress.

Start Small

The best plans are those that result in action, which improve the processes of the organization and result in better services and products for the customer. A simple plan that generates action and gets results is better than an elaborate plan that does not give conclusive results. Some initial TQM actions might consist of specific projects designed to address problem that have potential for expanding to other processes of organization.' Examples of such efforts might include :

Conduct of customer identification, survey, and feedback efforts to be reflected in quality and timeliness indicators.

Designate quality teams to address specific operating problems.

Conduct organizational assessment and leadership development.

Directly involve some line personnel in implementing some form of quality improvement effart reflected in the overall strategic plan.

ldentify Customers and Their Requirements

A review of the customer's requirements serves quality indicators on the areas where TQM would be implemented.

Make a Plan

The more specific a plan is, the more likely the organization will be successful.

SAQ 2

(a) Why traditional management approach is not successful in implementing TQM?

(b) What guidelines must be followed while implementing TQM?

3.5 OUALITY MEASUREMENT SYSTEM Tools of Quality

Measurement is the process of assessing the performance of a product characteristics or process parameters. The measurement of a quality system provides feedback of the process so that adjustment can be made to allow the operation to continue on its current course. In recent years, quality measurement has become as important as practicing and implementing TQM. This is because installing TQM demands huge investment. Therefore, the organization expects a good return on investment (ROI). When results are less than satisfactory, the temptation is to blame the training or the whole total quality ,novement. This section shall discuss three major root causes as to why some companies do not receive substantial ROI from their TQM efforts.

3.5.1 High Cost of Poor Quality

The price of any product or service is driven by profits and total cost to produce. This is shown in Figure 3.9(a). The total cost to produce can be broken into two categories as shown in Figure 3.9(b).

Theoretical Cost

The cost associated with doing only the right things right the first time.

Cost of Poor Quality

The waste or non-value added cost is referred to as COPQ. According to quality gurus such as Deming, Juran, etc., the percentage of COPQ in most companies is 20-40%. This Cost of Poor Quality is due to high cycle times, long development times, high defect rates, poor productivity, excessive inventories, training without ROI, lack of customer focus, and many other non-value added activities. COPQ serves as a metric or scale to measure the amount of waste generated.

In order to survive global competition, the company must come out with a lower and more competitive price. Figure 3.9(c) shows that the company has cut down its expenditure in order to attract customers. Removing 113 of its work force and selling off non-profitable assets have made the cut in expenditure (Figure 3.9(d)). This ensures the company a profit margin but it has done very little to cut the COPQ. In other words, the company has not put emphasis on waste reduction, and proper metrics. The company that will survive competition is depicted in Figure 3.9(e). It has cut its COPQ significantly. The key to competitiveness and survival is tied to reducing the 20-40% waste. Lowering COPQ is a difficult strategy in the short term, but it is the only way to long-term profitability, competitiveness, and the ability to bear hard times.

L Total Product or Senrice Priceto Customers - - T - - - - - - - - - - - - -

eoretical

a b. c. d. e.

Figure 3.9 : Impact of Competition and Lowering COPQ

Quality Systems 3.5.2 Improper Time Management The second reason for not receiving ROI is a claim by people in industry that they do not have enough time. This claim can be verified by drawing a Pareto Diagram. A Pareto Diagram shows that the major part of the problems may be caused by small number of possible causes. Consider the case of the fire depement in an iron and steel factory. If the company spends majority of its time fighting fires in the blast furnace section, it leaves little opportunities for the management to instruct the employees about quality measures. There might be situations also in which new technology cannot be installed because of frequent fires in the blast furnace. Such a situation is shown in Figure 3.10(a). Thus the scientists, engineers, technicians, and operators who although have gone through a proper training do not have time to implement what they have learned. A manager must learn where his people are spending their time, and then develop a way to increase the amount of time spent on quality improvement.

Figure 3.10(b) illustrates that a majority aftime is allocated to teaching and training the employees about fire prevention. Such an education is the first constructive step towards quality improvement. Although the installation of fire preventive program cannot completely rule out fires lesser fires indicate that more time and money is saved. The time saved is utilized for managers to bring forward the new quality schemes and employees to practice their teaching.

% of Time % of Time

~h Papel Meeting! Travel Othrl Fire Fire Pap, Meatlngr Tmve Other Fin Flgttthg Work Prevention Pmventlon Work

Fighting

(a) Improper Time Management (b) Proper Time Managemtnt

Figure 3.10 : Pareto Diagram for Time Management

3.5.3 Lack of Score Keeping The third aspect of the ROI prbblem is the fact that everyone in the company seems to be talking quality improvement, but no one is keeping score. Many corporate vice presidents claim that they are not getting the needed support from middle management. Commonsense would indicate that they are not keeping score or, at the very least, not keeping the right score on middle management. For example, if middle managers are responsible for processes that have computable measures of quality, such as defects per unit (dpu) or COPQ, they should be plotting these measures over time. If a plot of dpu or COPQ appears as shown in Figure 3.1 1, it will be difficult convincing anyone that the process demonstrates quality improvement. The scorecard does not show it.

Score keeping is mandatory to prevent the daily routine from becoming nothing more than mere practice. Keeping score must be used in order to know how the process is doing (i.e., whether the efforts are bringing the company to a winning or losing position). In addition, management must ensure that scorecards are implemented in a way that motivates people to ethically play to win rather than motivating them to falsifL data to avoid looking bad. Figure 3.12 depicts a winning scorecard.

dpu , * .................................

May 2003 May 2004

COPQ

Irzr- . . .................................

May 2003 May 2004

Tools of Quality

(a) Defects per Unit versus Time (b) COPQ versus time

Figure 3.11

COPQ

<, 1 .

.................................................... Time

Figure 3.12: A Winning Score Card SAQ 3

(a) What is meant by cost of poor quality?

(b) Giving an example, explain how time management affects quality.

-

3.6 SUMMARY

The eight elements are the key in ensuring the success of TQM in an organization. Without these elements, the business entities cannot be successful TQM implementers. These are :

(i) Ethics

(ii) Integrity

(iii) Trust

(iv) Training

(v) Teamwork

(vi) Leadership

(vii) Recognition and

(viii) Communication.

Quality Systems There are seven quality control tools for Improvement. These are :

(i) Affinity Diagram

(ii) Tree Diagram

(iii) ~nterrelationshi~ Diagram

(iv) Prioritization Matrices

(v) PDPC Chart

(vi) Activity Network Diagram

(vii) Matrix Diagram.

Two common approaches for implementing the TQM are : Integrated Management Approach and Traditional Management Approach, though there is no unique way to implement TQM. Some guidelines for implementing the TQM are described in this unit, In recent years, quality measurement has become as important as practicing and implementing TQM. The measurement of a quality system provides feedback of the process so that adjustment can be made to allow the operation to continue on its current course.

3.7 KEY WORDS

Affinity Diagram : It is a tool or method that gathers large amount of inter-related verbal data and organizes the verbal data into groups based on natural relationship.

Activity Network Diagram : It is a technique using nodes for events and arrows for activities for project planning, scheduling and monitoring. This is very useful for finding the completion date of the various activities within a complex task or project.

Cost of Poor Quality : It is the cost associated with non-value added activities and waste management.

Interrelations Diagram : It is a tool for finding solution to problems that have complex causal relationship in order to identify the {oat causes and root effects of a problem.

Management by Objective : An art of management and technique whereby the actions of analysis, direction and control are focused on the end result.

Matrix Diagram

PDPC

Score Keeping

: A Matrix diagram consists of a number of columns and rows whose intersections are checked up, to find out the nature and strength of the problem.

: PDPC stands for Process Decision Program ~tiar ts : The PDPC helps to find out all the conceivable events or contingencies that can occur in the implementation stage and also find out feasible counter measures to overcome these problems.

. : It is the task of monitoring the levels of activities that do not bring returns or cause loss (financial or materialistic).

3.8 ANSWERS TO SAOs

SAQ 1

1 (a) The exmcted com~letion date for task 1 can be found fiom the formula

I 6 -- '

Similarly, the completion date for task 2 and task 3 are 6 and 9.67 , respectively. So the expected duration of the project is 5.33 + 6 't 9.67 or

t 21 days.

I Answers to all other questions may be found in the text.

Tools of Quality