operation management qm and tqm

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OPERATION MANAGEMENT Qm and TQM

Historical background of TQM

The Japanese miracle!

Transformation between 1950 to 1980

Gen. Mc Arthur in 1946

� Auto industry & Electronics

� JUSE-Dr.Deming & Dr.Jurran

What made this miracle happen?

Technology?

People?

The systems?

Total Quality Control or Culture

A set of practices Japanese industry followed in their organizations

Evolved from the teachings of Dr.Deming and Dr.Juran

Deming philosophy and Juran triology

Deming philosophy

1. Create constancy of purpose towards improvement of product & service

2. Aim improvement of product and service

3. Aim to become competitive and to stay in business, and to provide jobs

4. Aims should motivate all stake holders

5. Be strategically committed to the aims of the organization

6. Pursue the aims constantly with commitment

7. 2. Learn new philosophy

8. Seek continuous improvement



9. One has to seek out for which sensitiveness to improvement opportunities (problems) is

important

10. Customer is first priority, customer sensitivness

11. Dont expect the customer to pay for suppliers inefficiency

12. Management and workers should learn alike

13. We are in a new economic age. managements must take on leadership for change

14. Allocate resources to training and research

15. Quality is defects prevention

16. RFT, not defects correction, RST(?) is bad quality

17. Never accept non conformance

18. Only standard is acceptable, any deviation needs C/CA/PA

19. (Accepting the deviation is chalta hai)

20. Improve the process

21. Process focus for good product

22. Involve every one in the organization (Total Employee involvement)

23. Initiate Vendor Development

24. Take good, make good, give good

25. Vendor is a stake holder

3. Understand the purpose of inspection

26. To improve the process & reduce the cost

27.

To prevent the defect rather than inspect & isolate the defectives

4. Stop awarding the business based on price alone

Price is meaningless without Quality

Strategize Long term business with one supplier for one item



Keep focus on customer expectations throughout the life of the product

Product responsibility begins (not ends) after selling!

5. Improve constantly & for ever the system

28. Identify and solve problems

29. Improve quality & productivity

30. Reduce variation, use SPC to control the process

6. Institute training on the job

31. Institutionalize On the Job Training

32. Need based training to improve performance

7. Teach & institute leadership

33. Train Supervisors in Deming philosophy & SPC

34. Change the environment from Fault finding to improvement

8. Drive out fear, create trust & create a climate for innovation

35. Empower subordinates, eliminate fear of failure

36. Encourage team work

37. Provide good supervision

38. Create environment where subordinates enjoy innovating

39. Recognize & appreciate publicly

40. Raise morale

9. Break down barriers between departments.

41. Pull down functional & hierarchical barriers

42. People in research, design, sales, and production must work as a team, to foresee

problems of production, and in use, that may be encountered with the product or

service.

43. Form multifunctional teams



44. Optimize team efforts

10. Eliminate exhortations to workforce

45. Low quality and low productivity belong to the system and thus lie beyond the power of

the work force

46. Facilitate improvements

47. Ask how rather than instruct how

11. Eliminate numerical quotas for workers

48. Some how numbers?

49. Ask for improvements

50. Initiate bottom up approach to meet top down objectives

12. Remove barriers that rob people of pride of workmanship

51. Sense of achievement of quality work makes one proud

52. Listen to the workers frustrations in performing

53. Enable them to perform and take pride in their work

13. Encourage education and self improvement

54. Good people need education and training to be effective

14. Take action to accomplish the transformation

55. Responsibility for quality is rests with Top Management

56. Obstacles in the implementation of Deming Philosophy

57. Lack of Management commitment

58. Organizational culture

59. Lack of team working

60. Unwillingness to change

61. Chalta hai attitude



62. Improper planning for quality

63. Lack of continuous training & education

64. Incompatible organizational structure

65. Isolated individuals & departments Strong barriers between hierarchical levels

66. OS Vertical

67. One way communication

68. Lack of access to data, no transparency

69. Insensitiveness to internal & external

70. customers needs

71. Inadequate use of empowerment and

72. Teamwork

Juran Trilogy

73. Contribution to Quality Movement in Japan

74. Invitation of JUSE to visit Japan in 1950

75. More closely associated with implementation of Quality Movement

76. Developed a conceptual framework called Quality Trilogy to visualize Quality & its

implementation

77. Quality Trilogy - Quality Planning, Quality Control, Quality Improvement

78. Quality Planning

79. Identify customers, Internal & external

80. Understand their expectations

81. Incorporate features in the product to fulfill customer needs

82. Set organizational goals to meet customer expectations

83. Establish a process to reach the goals of the organization



104. What is total?

105. Entire process of production of product

106. Covers all functions in organization

107. Definition of TQM: a systematic method of organizational improvement through

sustained collaborative efforts crossing functional and hierarchical boundaries to satisfy

customer

108. How Total Quality is achieved in an organization?

109. By harnessing the hidden potential of employees, which is the true essence of

TQM

What is TQM?

110. A customer focused management philosophy to lead organization to prosperity

by delivering customer satisfaction and looking beyond

111. A philosophy evolved from Japanese TQC

112. Teachings of Dr.Deming & Dr.Juran

113. A philosophy focused on process rather than product, more on how, than on

how much

114. A philosophy that views every activity as quality activity

115. Do you have TQM in your company? If the answer is yes, every employee,

116. Understands and is committed to the goals of his department

117. Knows his internal customer & supplier by name

118. Has agreed requirements with his customer/suppliers

Principles of TQM

119. Perception of Quality

120. It is to do with everyone

121. Easy to see quality

122. Internal customer concept



123. Continuous improvement attitude

124. Asking people rather than telling people

125. Zero defects, right first time, planning for prevention

126. Principle of 1-30-300, kaizen

127. Root cause elimination

128. Quality improvement cycle define, analyze, correct, prevent

129. Cost of Quality

130. Cost of conformance & Cost of nonconformance

131. Top management leadership- leadership for quality can not be delegated

132. Companywide scope

133. Focus on process & not on person

Why TQM?

134. Changing business environment

135. Increasing competition & Customer Expectation due to liberalization

136. Enlightened & demanding customers

137. Consumer awareness

138. Emphasis on growth

139. Assertive employees

Implementation of TQM Main components

140. People involvement programmes

141. Seminars, workshops

142. Film shows

143. Contests

144. Team building exercises



145. Quality Control Circle activity

Quality System

146. Documented procedures

147. Quality system to cover current procedures and methodology for review

148. Flow diagrams, Formats

Techniques of TQM

149. Awareness and training

150. Process measurement & Benchmarking Q, C, D for improvement Q C C, S G A

151. Team meetings daily management, meeting agenda

152. What happened yesterday?

153. Prioritization and disposal of problems for resolution

154. Feedback on current projects

155. Customer feedback

156. Plan for today & tomorrow

157. Use of simple statistical tools

TQM Implementation

Phase I

158. Awareness sessions for top management, middle management & internal

trainers

159. Concept of TQM

160.

What is expected of employees?

161. Sense of ownership of TQM style

162. New perception of Quality

163. Team work



Phase II

164. Organizing for TQM, Responsibility and authority

165. Steering Committee, Coordinator (Management Representative), Consultant

166. Quality dream, Objectives

167. Evolution of Quality Policy & its communication

168. Team structure

169. Role/Responsibility matrix

170. Developing a road map for TQM implementation

171. Selection of a Pilot & scaling up plan

172.

Phase III

173. Quality Process



174. Prepare R - Result measures

175. Develop Cost of Quality figures

176. Develop mechanism for improvement like Quality Control Circles, use quality

tools

177. Start Quality Improvement Cycle - define, analyze, correct, prevent

Phase IV

178. Reviews & audits

179. Audit Quality system implementation, close all NCs at CA/PA level

180. New Target setting

181. PDCA

Product dev, Prodcut design,

1

What is Product development?

³Product development aims to provide the goods

wanted by the market, at the time and in the

quantities desired by it, at the prices it is willing to

pay, yet leaving a sufficient margin (or a net profit)

for the manufacturer´

Product development is the process of

commercializing a product in the market starting

from the concept stage.

An ongoing process

Why Product development?

For corporate profitability

To stay alive and grow in competitive business,

PLC decline & demise

A process to match the needs of the market

High product mortality

2



3

Types of Product development

1. Addition of a product

2. Modification/improvement of an existing

product

4

1. Addition of new product

Fill the gap in product range ± men¶s wear, ladies

wear + kids wear

To maintain some products always at maturity

level to boost the revenue for the company - PLC

To utilize the resources and skills available in the

company ± MMS + BMS + MBA

To explore new market or create new markets ±

tooth paste + tooth powder

To meet customers specific demand packaging boxes for a new product, special cans

for Ponds Magic

2. Improvement/modif ication of existing products

Short term objectives and long term objectives

Short term objectives

To stimulate the sales Colgate herbal, active, sensitive! Cell phones with cameras

To satisfy urgent needs of the customers - pencils with erasers, CFL lamps, need to meet

customers urgent need to save electric power

To utilize installed capacity fan manufacturers making radiator blowers

Long term objectives

To monopolize the market supersonic jets? NANO, small car?



To establish long term business relation ship with customer (supporting the new

product development by the customer) OEMs, ABC & TATAs

To reduce cost of manufacturing cans using thinner, double rolled steel sheets, plastic

cans for talcum powder

To produce in large quantities electrical equipment running on US and European

standards voltage

Methodology of Product Development

Product design

1. Need Identif ication

Sources for new product ideas

Market research

Research and development

Pure research

Applied research

Brain storming

2. Advance product planning/feasibility study

Market viability

Corporate Policy

SWOT Analysis of the company to ascertain where the new product idea lies

Familiarity with similar product, process, market, distribution

A conceptual design emerges

� Physical dimensions

� Appearance

� Target cost

� joint decision by technical and commercial executive



3. Advance design

Taking the product idea ahead

� Technical feasibility

� trade off in the product design

� Need for further experimentation

� Need for prototype testing

4. Detailed engineering design

Design converts concept into Reality

Production converts design into product.

Product satisfies customers needs and brings money back into business.

A good product design is built on following corner stones

What do customers want?

What do producers want?

Tools for product design

� Variety Reduction

� Standardization

� Modularization

� Computer assisted design

� Role of Operations function in design of the Product production friendly design

� User friendly, maker friendly & service friendly design

� Reliability: Failure free function for agreed Period[aviation electronics, Medical

electronics, Space crafts etc.]

� Appearance: industrial products as against consumer products

� Environmental impact: S H E Objectives of company are to be built into the product

through Design



� Product safety: safe to make, safe for use & environment

� Producibility: ease and speed of production, efforts, costs

� Maintainability: ease and speed of maintenance

� Timing: relevant to services and also to hardware [24 hr. banking]

� Accessibility: relevant to Services. Where is the service available? ICICI bankbank

comes to your door step!, ATMs, if placed in a remote area?

� Design review: PDCA on design attempts to make the product customer friendly &

production friendly.

� Design Control by feedback (Initial Control)

�

Concept of Quality Assurance

� Production process design and development

Process selection and design

How shall we produce?

1. Understand how the product is made

2. 2. Explode the major assembly into sub assemblies and sub assemblies into parts.

3. Write the process flow diagram for assembly and manufacturing operations

4. Fix the output characteristics of the product

5. Ascertain the position of the product in The PLC

6. Choose operations system

7. Different operations like assembly, parts production can have different processes

8. 7. Identify critical core operations

9. 8. Strategize Manufacturing, consider strategic factors and cost factors, make or buy

decisions

10. 9. Fix trade off between capital & labor

11. 10. Choose Technology, Equipment like S PMs or G PMs, Tooling like ceramic or HSS,

Skills



12. Product evaluation and improvement

13. Feedback from customers, workers and service providers

14. P D C A for initial control

15. Product use and support

16. Value added services

operation management qm and tqm

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