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National Workshop on “Enabling MSME to be Competitive through Quality Tools”

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MSIL approach for supplier upgradationthrough cluster activity

- By Dr. K. Kumar

Training Support Consultancy Copyright ©. All rights reserved.

What is Quality ?


Kano Model


WHAT IS QUALITY …...

PAST EXPERIENCEWORD OF MOUTHCOMMUNICATIONS PERSONAL NEEDS

EXPECTEDQUALITY

PERCEIVED QUALITY

DELIVEREDQUALITY

EXTERNALCOMMUNICATIONTO CUSTOMER

CUSTOMER

PROVIDER

GAP *


Quality is meeting or exceeding customer’s perceived needs.

To some people Quality means that they have met whole range of internal specifications, rules and standards.

Any definition of Quality must include the customer, the voice of authority. The voice above all other voices must be the voice of customer.

WHAT IS QUALITY …...


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TOTAL QUALITY MANAGEMENT

TQM IS BOTH A PHILOSOPHY AND A SET

OF GUIDING PRINCIPLES THAT FORM THE

FOUNDATION FOR A

CHANGING &

CONTINUOUSLY IMPROVING

ORGANISATION


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ELEMENTS OF CUSTOMER SATISFACTION

PRODUCT DESIGN

CONFORMANCE

SERVICE

COST EFFECTIVE

PRICE EFFECTIVE

RIGHT PLACE

RIGHT TIME

RIGHT AMOUNT

IN USE

IN PRODUCTION

EVERYONE CARES

QUALITY

COST

DELIVERY

SAFETY

MORALE

WORLD CLASSQUALITY FORCORPORATESURVIVAL

FULLCUSTOMER

SATISFACTION/ DELIGHT

ASSU

RA

NC

E OF Q

UA

LITY

As a Good Customer

I will

As a Good ProcessOwner or User

I Will:

As a Good Supplier

I Will:

1) Agree on and document my requirements with my supplier

2) Return defective inputs to my supplier promptly and tactfully

3) Feed back input quality data to my supplier

1) Learn and apply the tools of quality and teach others.

2) Continuously improve my process-reduce defects, cycle time and know benchmarks

3) Document and display my process, defect levels, and CI projects

1) Understand my customer requirements and agree on and document my deliverables

2) Reduce defects and variations in my output

3) Measure my output quality from my customer’s perspective

My Customer

My Supplier

My input My output

RequirementAnd

feedback

RequirementAnd

feedback

I AmResponsible

for Quality

Living Our CI Values

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Principles of Quality

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Principle of total qualityPrinciple 1• Proactively and systematically understand current and

future customer needs (External and Internal)

• Customer complaints analysis is critical, it can only bedone after the complaint is resolved.

Proactively Companies must anticipate customer’s needs.

• Systematically it must be ensured that the processused to resolve the complaints is valid, objectiveand statistically reliable.

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Proactively and systematically measure the customer’sperception of how well your organization and your directcompetitors satisfy these needs. Robert Galvin, former chairman and CEO of Motorolacited,

“Only by measuring something it can be truly known.” In order to be useful, customer satisfaction measurementsmust be both objective and reliable.To ensure objectivity, a number of companies use a thirdparty to assess customer satisfaction.Reliability means that for any situation the measurementprocess will yield the same, or nearly the same result.

Principle 2

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Focus efforts on improving the processes or methods thatsatisfy customer needs. Better financial results such as costreduction and higher profits are the outcome of processimprovements. Total Quality approach would be to improve the process bystreamlining it, reducing errors, shortening process, cycle timeand eliminating activities that don’t affect CustomerSatisfaction. To improve quality, reduce process variation. Variation is present in all activities and processes. Althoughthey might be made or delivered according to the same design,there will be differences in parts, products and services. Inmany instances, variation is within an acceptable toleranceband.

Principle 3


3

Variation

13

14

•Common causes of process variation areever present and vary randomly within somestatistical distribution. Process is stable whencommon causes are present.•Special causes of variation are those outsidethe common causes that are ever present. Thevariation is due to specific assignable causesthat are non random occurrences. Specialcauses are sporadic and not predictable.

Principle 4

Variation A stable process in control (Natural or common cause)

Upper process

limit

Mean

Lower

process

limit

Time

Cu

sto

me

r S

ati

sfa

cti

on

Upper process

limit

Mean

Lower

process

limit

Time

Cu

sto

me

r S

ati

sfa

cti

on

An unstable process out of control(Special Cause)

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•Develop robust design for products and processes.

•Robust design are not sensitive to variations ofproduction processes, components, raw materials,and customer usage.

•The traditional engineering approach is to design atarget (target value, target function, target region)then reduce variation around the target.

•The new approach developed by Genichi Taguchi,is to design for robust function, then adjust thetarget.

Principle 5

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L

L

Taguchi Loss Function

L = k (y – T)2

L = Cost Incurred as quality Deviates from the target

y = Performance Characteristic

T = Target

k = Quality Loss Function

y

y

Step function

LSL USL

A

0

T - T T+

Lo

ss (

$)

LSL USL

A

0

T - T T+

Lo

ss (

$)

Quadratic function

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Principle 6

•Use the scientific method for solving problemsand improving processes.•This means that organizations must manage byfact and not by assertion. Dr. W. Edwards Deminghas said

“In God we trust, but from all others we demand data.”

•Managing by fact really means applying thescientific process, which is described very clearlyby the Plan-Do-Check-Act (PDCA) Cycle


4

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PDCA Cycle

Objective

Method

Education

Implementation

Checking

Corrective action

Product

Consumer

Data

Inside & Outside Company

Abroad

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When there are problems, and expectations haven’t beenmet, look to the system. Don’t blame people.

Instead of finger pointing, management should focus onthe system. Instead of asking “Who did it?” or “Who didn’t doit.?” Management should ask “What is wrong with thesystem?”

Paradoxically the whole system is controlled bymanagement and not by people who work inside the system.

Emphasize prevention instead of detection. Inspection doesnot add value and it doesn’t improve quality. It only helps toensure that what goes to the customers is okay.

Principle 7

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The ultimate way to ensure quality, however, is todesign processes so that regardless of variation ofprocess control parameters the output is optimal or nearlyoptimal. Such processes are said to be robust designs. Arelated concept is the principle of Fool Proofing, orpoka - yoke in Japanese.

Put Quality ahead of quantity.

It means:- Consistent Quality standards

Principle 8

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Never pass on known or suspected bad quality to

the next person in the process.

Follow 3-NAI activity

Do not receive

Do not make

Do not send defects to the next process

Cont.


Biggest Challenge •How to Maintain the Market Share & How many varieties of products are introduced in the Market every Year?

•To improve the Quality of the Products in terms of Quality, Cost & Delivery.

For improving Quality what should we do?


QC 7 Step Solving approach

QC 7 steps Procedure is the basic procedure for solving

problems scientifically, rationally & effectively.

It is the fundamental Problem solving strategy which

allows to solve the problems rationally & scientifically.

If we want to achieve EFFECTIVE improvement we have

to know the rules of the game i.e. QC 7 Steps

Procedure.

The secret of our problem solving is to know the

Procedure & act in accordance with it.


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QC 7 Step Formulae

The conventional method is based on trial & error.

•Grasp Problem•Set Target•Identify gapbetween existingsituation & Target

•Investigate Causes

•PlanCountermeasures•ImplementCountermeasure•Institutionalize

Expose Problem

Experience, Intuition, nerve, Inspiration

Implement Counter-Measure

Expose Problem

Analyze Causes

Implement Counter-Measure

Figure‐1a. b.

Conventional Problem Solving approach

QC Problem Solving approach


Problem arises

Identify its Causes

Act against the Causes

Symptom Disappears

Problem Solved

In case of QC Problem Solving approach, the problem really has been Solved; thisis true Problem Solving

Figure‐2 QC Problem Solving approach


QC 7 Step Problem Solving Formula

Table‐1

Step No.

Basic Steps Action Item

1 Select Topic •Identify Problem•Decide Topic

2 Understand the situation & Select Target.

Understanding Situation•Collect Data•Decide characteristic to attack•Decide Target

3 Plan Activities. •Decide what to do•Decide Schedule, division of responsibility etc.

4 Analyze Causes •Check present values of Characteristic•List Possible Causes•Analyze Causes•Decide items to tackle.

Cont…


Table‐1 Cont.

Step No.

Basic Steps Action Item

5 Consider & Implement Countermeasures

Consider Countermeasures•Propose the ideas for Countermeasures•Discuss how put Countermeasures into effect.•Check details of the CountermeasuresImplement Countermeasures•Plan how to implement Counter Measures•Implement Countermeasures

6 Check Results •Check results of Countermeasures•Compare results with Target•Identify Tangible & Intangible benefits

7 Standardize & Establish Control

Standardize•Establish new standards & revise old ones.•Decide methods of controlEstablish Control•Familiarize relevant people with the methods.•Educate those responsible.•Verify that benefits are being maintained.

QC 7 Step Problem Solving Formula


Procedure for Problem Solving

In the QC Seven Step Procedure the following points are

important:

1. Understand the situation & set targets: This would mean analyzing data on the existing & past situation & then decide the target. Fig. 3 shows the procedure to calculate the targets

Baseline 117642

Entitlement 86013

Difference 31629

70% of Diff. 22140

Target @70% of Entitlement

95502

Figure‐3


2. Analysis of the causes : Late Dr. Kaoru Ishikawa,

the father of Japanese Quality Control, wanted it to

be renamed as “analyze the process”. But ultimately

in JUSE 7 step procedure analyze the causes was

retained & is widely used.

3. Countermeasures: After the analysis of the Causes,

the team proceeds to take the countermeasures to

prevent the occurrence of the defects.



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4. Standardize & Establish the Control : In the Past

this step was known as “Apply the Brakes” i.e.

prevent any back sliding & establish the permanent

Countermeasure. Failing to check the effect of

Countermeasure is like omitting the touch up after

Painting. This would need establishing the new

standards or revising the old standards. Familiarize

people with the new standards & verify that the

benefits are being maintained.



5. Target Control: While fixing the targets & the timelimits for the achievements following key points areimportant.

What control Characteristic are to be taken up forstudy.

By When the study will be completed.

By How much such as reduce the defect at theQuality gate by 30%.

Figure‐4



TOOLS & TECHNIQUES

USED FOR PROBLEM SOLVING

AT

MACE


Basic 7 QC Tools

Checksheet Run Chart Pareto Chart

Control Chart

Fishbone Diagram Scatter Plot

Histogram


Originally developed by Sakichi Toyoda.

Later used within Toyota Motor

Corporation during the evolution of their

manufacturing methodologies.

The architect of the Toyota Production

System, Taiichi Ohno, described the 5

whys method as "the basis of Toyota's

scientific approach by repeating why five

times, the nature of the problem as well as

its solution becomes clear

Taiichi Ohno

Why-Why Analysis


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This method ofproblem solvingsimply involvesasking “Why” anumber of times(typically five timesis enough) until theroot cause of aproblem isdetermined .

Problem Solving: 5 Whys


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Why -Why Analysis at Toyota

Why there is a puddle of oil on the Shop Floor?

• Because Machine is Leaking Oil

Why the Machine is Leaking oil?

• Because Gasket has deteriorated

Why Gasket has deteriorated?

• Because we bought the Gasket made of inferior Material.

Why did we buy a Gasket of Inferior Material?

Because we got a Fair deal on those Gaskets

Why we purchased the Material at Fair Price when the Quality of the Gasket was not Good ?

a) Because the Purchasing agent gets evaluated on short term Cost Savings

Why 1?

Why 2?

Why 3?

Why 4?

Why 5?


Shainin Techniques for Problem Solving

Dorian Shainin (September 26, 1914 –January 7, 2000) was an influential American quality consultant, aeronautics engineer, author

Known for his contributions in the fields of industrial problem solving, product reliability, and quality engineering, particularly the creation and development of the “Red X” concept

Dorian Shainin



Disassembly/Assembly

X-BOB X-WOW

Initial 113 86

Ist 115 84

IInd 111 85

Median 113 85

Range 4 2

D( Diff of Medians = ( 113 -85 ) = 28

d ( Avg. of Ranges )

= ( 4+2 )/2 = 3

Component Search

S.No. Surface Finish Status Of the Pump

1 65 Bad

2 64 Bad

3 61 Bad

4 58 Bad

5 51 Bad

6 48 Bad

7 47 Bad

8 45 Bad

9 32 Good

10 32 Good

11 28 Good

12 24 Good

13 22 Good

14 22 Good

15 21 Good

16 19 Good

Paired Comparison

-50

-40

-30

-20

-10

0

10

20

Tem

p

Sequence

Component Search



Process Parameter Snorkel Position

Parameter Range 0to 1/2"

Bag no.

1 1/2 B

2 1/2 B

3 1/2 B

4 1/2 B

5 1/2 B6 1/4 B7 1/4 B

8 1/4 B

9 0 G10 0 G

11 0 G

12 0 G

13 0 G

14 0 G

15 0 G

16 0 GEnd Counts 8+ 8 = 16

Product Process Search B Vs C

B

225

223

219

C

217

212

210

Modified Component Search

Disassembly/Assembly

X-BOB X-WOW

Initial 113 86

Ist 115 84

IInd 111 85

Median 113 85

Range 4 2

D( Diff of Medians = ( 113 -85 ) = 28

d ( Avg. of Ranges )

= ( 4+2 )/2 = 3

-50

-40

-30

-20

-10

0

10

20

Tem

p

Sequence

Component Search


S.NO. ITEM TARGET1 Safety : Zero Accidents2 5 S – Score 90% min.3 Quality : 3.4 ppm4 Supply to Customer 2 hourly basis5 Customer Line Stops Zero6 Inventory Turns: Min 507 Change over time < 10 min.8 OEE (Overall Equipment Efficiency) 85 - 90 %9 VA to Employee cost 510 VSM : Value stream mapping 25%11 Cost 50% less12 Absenteeism (Unauthorized) 0%13 Direct to Indirect manpower 60 : 4014 Kaizens / employee 24/emp/year

15New Product Development

At 50% less time and Cost

16 Training Hours / Emp / Year > 5 % of working hrs

Attributes for World Class


CLUSTER APPROACH

AT

MACE


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MODEL

F R

WORLD CLASS•TEI through SSQC activities.•Single Piece Flow using Model Line; identifying Lean Manufacturing Projects (MPS) based on Customer Requirements.•Inventory Turns Ratio Management•Energy Consumption Management•Cost of Poor Quality•Initial Supply Control•Value added per employee cost (VAPCO)•Training on SSQC, MPS, EMS, QMS, NPD.

PHASE 2

•Complete 5-S•Up-gradation through advance Quality Tools •Hoshin-Kanri (MFO).•Autonomous Maintenance; OEE•Yield Improvement•Implementation of 8 Pillars Check sheet•Training on advance tools like DOE, DMAIC & OEE

Phase 3

•Capturing Customer Voice•1-S,2-S and Visualization•Customer Concern (QCD) through why-why Analysis.•Red Bin Analysis using basic QC Tools•Daily Work Management for Target Monitoring.•Monthly Performance Review at Gemba & Collaborative Learning•5 New Kaizen/month/vendor.•Training on 5S, VUD, 7 QC tools, CAPA

PHASE 1

•TPM Cluster•Certified Quality Engineer•Six Sigma Black Belts.•Benchmarking Visits.•Horizontal Deployment of Cluster Activity through Tier-2.

Phase 4


Concept of Cluster

A group of 5 to 10 vendors ( non-competing) get together to undergo a common training session and get hand held experience.

Individual attention is given to all cluster members & all queries during the session are answered.


Advantages of Cluster

Lower Cost.

Group discussions & sharing of ideas.

Competitiveness.

Learning from one another.

Exposure to best practices.

Learning in a team.

Exposure to benchmarking.

Improved motivation.


CLUSTER MEETING IN PROGRESS


EXACTNESS

The first step in the improvement journey is Exactness. Thisinvolves three parameters:

Exactness of Process: The vendor must ensure that theprocess is being followed exactly as per the standards, asper written down instructions. To achieve this the vendormust employ check points in Daily Work management.


Exactness of Measurement:

Any process is as good as its measurement. The vendormust ensure that there is a control plan for all theinstruments & measuring gauges; periodic calibrationsare carried out as per the plan & all instruments /gaugesare kept in good working condition.

This image cannot currently be displayed.

EXACTNESS


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Direct CauseCauseCause

CauseCause

Root Cause

1. Initial Problem Perception(Large , Vague, Complicated Problem)

2. Clarify the Problem

3. The “ Real “ Problem

4. POC

5. Countermeasure

6. Evaluate7. Standardize

5 Why ?-Investigation

Of Root Cause

Why ?

Grasp the Situation

Why ?

Why ?

Why ?

Why ?

Basic Cause and EffectInvestigation

Funnel Approach

Practical Problem Solving Process


TEAM ORIENTED PROBLEM SOLVING [ TOPS ]

We encourage Tier – 2 vendors in Quality Circle & Lean Manufacturing activities .

Every Year a competition amongst the Tier – 2 vendors is held at MSIL where each vendors make a presentation about the QC & Lean Manufacturing activities [ MPS ].

In order to motivate the vendors, awards are given through MSIL, the parent organization .

We also encourage our Tier – 2 vendors to participate in National Competitions to understand the best practices.


TEAM ORIENTED PROBLEM SOLVING [ TOPS ] Quality Circle Competition in progress


TEAM ORIENTED PROBLEM SOLVING [ TOPS ] Kaizen Competition at CII – Confederation of Indian

Industries


Result of Cluster approach initiated by MACE

Measure 2004 - 05 2010 - 11 2011 – 12 Improvement

Rejection ppm

10933 2695 1617

No. of defects per month

432 263 159

85 %

63 %

Total no. of Tier 2 clusters : 19Total no. of Tier 2 vendors covered : 150


MPS for Tier-2 vendors Implementation status


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QC Activity for Tier-2 vendors

QC Projects completed in 2011-12 till Oct’11


MACE conducted Kaizen Meet for MSIL Vendors. Total of 200 Tier-1 & 400 Tier-2 vendors participated in this competition.The results were as follow:Tier-1

AWARD VENDOR NAME CLUSTER COUNSELLOR

Winner M/s Premier Pin Minda Cluster Mr. Amit Chauhan

1st Runner Up M/s Bhamra Fabricators Subros Cluster

Mr. O.P.Uttareja

2nd Runner Up M/s Lakhani Sona Cluster Mr. R.P.Bhatti

AWARD VENDOR NAME COUNSELLOR

Winner M/s KML Seat-1 Mr. Prateek Mandal

1st Runner Up M/s Bright Autoplast Mr. Himnashu Sharma

2nd Runner Up M/s Tenneco Mr. Sagar Vashisht

Tier-2

MACE Kaizen Meet


M/S Bhambra Fabricator receiving the Best Kaizen Award in T-2 Category


As a part of Quality month celebration,Tier-2 Quality circle competition was

organized at MACE on 26th Nov’11.

Each of the cluster member held the competition at their end to select the best QC

Circle at their end for Competition in MACE.

A Total of 12 Quality Circles from 12 Tier-2 Clusters participated in this

competition.

The results of competition were as follow:

Winner : Superfine : Lumax Cluster

1st runner up : Aar Aar Industries : Pricol Cluster

2nd runner up : NRB Bearing : Subros Cluster

MACE Quality Circle Convention


Lumax T-2- Superfine receiving the winner Award of Quality Circle Competition


M/S Precision Pin, Tier-2 of Minda receiving the Zero ppm Certificate


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M/S Subros receiving the Trophy for Best VSA Score in 2011-12


CII conducts annual Cluster summit in month of September in which various

clusters working with CII, ACMA & MACE are invited to participate by giving

their Kaizens & Case Studies on Problem Solving using 7 QC tools, Why-Why

analysis & Six Sigma.

In year 2011-12, 47 vendors of MSIL participated in this event where the best

Kaizen & the Case studies were adjudged by the Jury consisting of eminent

people from the industry.

A total of 285 Kaizens & 120 Case studies were received by CII for evaluation.

We are happy to inform that the following awards out of the total awards were

bagged by MSIL’s Tier-1 & 2 vendors:

Stream Name of CompanyMSME Award Large Award

Manufacturing Excellence

Auto Décor Pvt. Ltd. 1st Godrej & Boyce Mfg. Co. Ltd. Mohali

1st

Horizon Industrial Products Pvt. Ltd.

2nd Minda Industries Limited 2nd

Shivai Enterprises Pvt. Ltd. 3rd Sona Koyo Stering Systems Ltd.

3rd

Cost Competitiveness

Bhambra Fabricators 1st Godrej & Boyce Mfg. Co. Ltd. Shirwal

1st

Mahindra & Mahindra 1st

Energy Efficiency USV Ltd. 1st Godrej & Boyce Mfg. Co. Ltd. Shirwal

1st

Promed Export Pvt. Ltd. 2nd Mahindra & Mahindra 2nd

Tata Motors Ltd. 3rd

Total Employee Involvement

Eastman Cast & Forge Ltd. 1st Godrej & Boyce Mfg. Co. Ltd. Mohali

1st

Rakheja Engineers Pvt. Ltd. 2nd

Vox Populi Godrej & Boyce. Mohali for Manufacturing Excellence

Award Company1st Award Suman Auto Parts Ltd.2nd Award Raunaq Automotive Components Ltd.3rd Award Krishna Maruti Limited

CII Cluster Championship Award Winners

CII Kaizen Award Winners

MSIL Vendors. The Case studies were based on completed MPS Projects.


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