production development towards quality
TRANSCRIPT
PRODUCTION DEVELOPMENT TOWARDS QUALITY 7.50HP KV8002 50% ITD
ORTSOBEROENDE PROGRAME ht 2015.
Larare : Aron Chibba;
Assignment
(Part 1, Part 2, Part 3)
By
SHOBIN JOHN
MASTERS IN MECHANICAL ENGINEERING
Halmstad University, Halmstad, Sweden.
PART 1: BOOK REVIEW
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE
JAMES EVANS AND WILLIAM LIINDSAY (8th EDITION)
By
Shobin John1,
Krishna Kumar Shanmugham Chetiyar2
CHAPTER 1 - INTRODUCTION TO QUALITY
PURPOSE:
In the opening of the chapter author examine basically the notion of quality. In addition, discuss its
history, its importance in business, its role in building and sustaining competitive advantage. Rest of the
chapter mentioned about quality definitions, principles, practices in Deming point of view.
CONTENT:
In the twelfth century of BC china, during the Zhou Dynasty specific government were created concept
of “quality” especially in the production of utensils, carts, cotton and silk. During 1990 to 2001 US arises
the “quality work place” and “standardized quality tools” for improving profits. Motrola, Inc (US company)
to receive the Malcolm Baldige national quality award in 1988 mainly for “respect for peoples and
uncompromising integrity”. They are further focusing about customer satisfaction, product quality and cycle
time. The early twentieth century arise concept of statistical quality control (SQC). During world war the
discipline‟s first professional journal, “Industrial Quality Control” was published. After the world war US
made production a top priority and delegated this responsibility to quality managers. During this time, two
U.S. consultants, Joseph Juran and W. Edwards Deming, introduced statistical quality control techniques
to the Japanese. Due to the higher quality levels of their products, Japanese companies‟ penetration into
Western markets was significant. The concept “Leadership through Quality” was help lot to decrease
defect finally got Malcolm baldrge national quality award in 1989. In 1984, the U.S. government
designated October as National Quality Month. In 1985, NASA announced an Excellence Award for Quality
and Productivity. Later quality management changes to Total Quality Management means continues
increment customer satisfaction and lower the cost. United States to define quality have different
responses, including Perfection, Consistency, Eliminating waste, Speed of delivery, Compliance with
policies and procedures, Providing a good usable product, Doing it right the first time, Delighting or pleasing
customers and Total customer service and satisfaction. We can define a quality in different perspectives
Judgmental Perspective quality is both absolute and universally recognizable, a mark of uncompromising
Standards and high achievement. Product-Based Perspective: function of a specific, measurable variable and
that differences in quality reflect differences in quantity of some product attribute. User-Based Perspective:
Quality is defined as fitness for intended use, or how well the product performs its intended function.
Value-Based Perspective From this perspective, a quality product is one that is as useful as competing
products and is sold at a lower price, or one that offers greater usefulness or There are three level of
quality Organisational level, Process level and performance level satisfaction at a comparable price.
Integrating Perspectives on Quality The customer is the driving force for the production of goods and
services, and customers generally view quality from either the transcendent or the product-based perspective.
The main fundamental principles for total quality are focus on customers and stakeholders, Employee
engagement and teamwork by everyone in the organization and process focus supported by
continuous improvement and learning. Deming, involvement of production system are highly significant
one. A learning cycle consists of four stages: Planning, Execution of plans, Assessment of progress and
Revision of plans based upon assessment findings. TQ Practices are Strategic planning and design of
organizational and work systems, Customer engagement and knowledge acquisition, Workforce
management, Process management, Information and knowledge management and Leadership.. These are
concern as a questioner format; from these questions we got complete idea about quality. According to the
former CEO of Motrola Quality is a very personal obligation.
CONCLUSION:
The main factor behind the success of an organisation is the quality. For getting quality to an
organisation, they must meet or exceed the customer requirements, for that they should understand every
product and customer attributes that contribute to customer value and lead to customer satisfaction and
loyalty. For getting competitive advantage, the organisation should know the strategies and plans of the
competitor and improve the strategic plans continuously; it provides direction and motivation to the whole
organisation. Then only we are able to achieve market superiority.
CHAPTER 2 –TOTAL QUALITY IN ORGANISATIONS
PURPOSE:
This chapter reveals the measure of quality in manufacturing and services and illustrate Impact of
quality on different types of organisations. It point out the importance of quality in healthcare and education
sectors. It further explains about the quality measures of public sectors and small businesses, which help
them to improve quality.
CONTENT:
In 1990 onwards Organisations and manufactures started giving more attention to quality. In present
scenario quality is absolutely vital for retain customers and for getting good market value. Two types of
qualities are very essential for retaining the customer are service quality and material quality. Management
of an organisation should focus on the quality of combined system rather than focussing the quality of an
individual system. Now days, quality is affected very advance level in manufacturing field, they started
giving more attention to the voice of the customer. Equipment reliability, inspection defect measurement
and process control are main technical issues faced by the manufacturing industries. The importance of
quality in services cannot be overestimated; Service is the key element for all traditional manufacturing
companies. The customer is influenced on service quality, for better quality service increase customer will
leads to good profit organization. Most of the service organisations can have well developed quality service
system. Employees and information technology are the main two component of service system.
Information technology includes speed of service, high volume data processing, computing, better
communication and various other means of converting data into useful information‟s. Service compared to
manufacturing is required for high degree of customisation. Service must be performs According to the
convenience of each customer, service must be perform in good manner. Area of cost reduction and increase
efficiency are main objectives of health care organization to obtain measurable improvement from their
quality initiative. In 1917, the American College of Surgeons developed minimum standards for hospital and
began inspections. The main quality oriented health care organizations are JCAHO (Joint Commission on
Accreditation of healthcare organisations), NCQA (National Committee for Quality Assurance) and
IHI (Institute for Health and Improvement). Education is the most interesting and challenging areas for
quality improvement. According to David Langford, quality in education takes time and it’s not a quick
fix. It is difficult to implement quality in the public sector compared to private sector and other non-profit
organization.
CONCLUSION:
In this competitive world, quality is one of the major criteria for attracting and retaining the customers,
and it is very critical in the manufacturing and service industries. Quality in service is vital, service
employees should focus on the convenience of the customer, which increases the customer satisfaction.
Education and healthcare are the two major fields which need more quality and these are the fastest
growing sectors in quality. For catching the customer attraction in these fields continuous improvement is
mandatory. Quality growth of public sector is very slow compared to private firms, Public sector
organisations have to concentrate more on quality to compete with private firms.
CHAPTER 3 – PHILOSOPHIES AND FRAME WORKS
PURPOSE:
In the opening of the chapter, Evan contrasts the various philosophies of quality management, their
similarities and differences. The development of quality and TQ principles are influencing to achieving
better quality for an organisation and which leading to the development of several awards and quality
standardization. The rest of the chapter details the major awards and frameworks for quality, also the various
processes and methods for developing the standards of an organisation.
CONTENT:
This portion expounded about the management philosophies of Philosophers and their contributions. Dr
W Edward Deming was the significant one in the field of quality; he was a trained statistician and
recognizes the importance of viewing management process statistically and his 14 principles are the pillar of
quality study. After Second World War II, Deming got an invitation from Japan; he shares the importance of
leadership, continuous product development and manufacturing processes. Japanese authorities accept
the ideas of Deming and establish Deming application prize in 1951. Joseph Juran was also an another
important person who develop and designed a programme which is according to that organisations existing
strategic planning, so chance for failure is minimum. The Juran mainly focused on the quality planning,
quality control and quality improvement. Philip B Crosby is also a well-known person in the field of
quality and his philosophy is called as “Absolute Quality Management” and “basic element of
improvement”. According to Crosby, Quality means conformance to requirements, not elegance. He
emphasized using management process rather than statistical techniques. The term “zero defects” is the only
performance standard which means instead of finding and fixing the defects we have to take measures for
preventing the defects. A V Feigenbaum, Kaoru Ishikawa and Genichi Taguchi are the other well-known
quality philosophers. Feigenbaum developed the phrase “Total Quality Control” and formed the three steps
for qualities are leaderships, modern technology and organizational commitment. The most important
frameworks are International ISO 9000 certification and US Malcolm Baldridge National Quality Award.
These awards and frameworks inspired many other nations. Some of the other major awards and frameworks
are European foundation for quality management organise European Quality Award, Canadian national
quality institute organise Canadian award and Australian government organise Australian business
excellence award. Now a day SIX SIGMA evolved to remarkable framework for better quality experience.
The concepts of SIX SIGMA are the business process focus on a customer requirement, overcome the
resistances, providing incentives and accountability, Extensive training and cycle time reduction.
CONCLUSION:
The philosophies of Deming, Juran, Crosby and others made evolutionary change in quality of
organization, world-wide. The effective application of TQ principles on management results numerous
awards. The different awards and frameworks on quality increase the competition between different
organisations all over the world which leads to quality improvement. Quality is hence an incessant process.
CHAPTER 4 – LEADERSHIP AND STRATEGIC PLANNING
PURPOSE
The essential factor for developing a total quality culture is strong leadership. The leadership is very
importance in an organisation, which increases the strength of an organization. Weak leadership may leads
to the quality failures. In this chapter mainly gives idea about various leadership theories and leading
practices which explains the different styles of leaderships. Further they explained about different strategic
planning, seven management, planning tools and organization structure.
CONTENT:
To achieve important result and positive impact on organization, influence people and every process are
controlled by single authority are the key concept of leadership. The leadership has major roll to
implementing quality in an organization. The main vision of leadership is to convert hopes into reality.
Baldrige criteria, ISO 9000 and Japan‟s Deming prize are main quality framework they are the first
category of leadership. To understand and implement the management theory of the leadership are gives the
idea about leadership. Attribution, transactional and emotional intelligence theories are the important
theories of leadership. An effective leadership system includes mechanisms for leader‟s self-examination
and improvement. In an organization leaders have public which includes ethics, protection of health, safety
and the environment. Strategic planning, development and deployment are the important aspects required for
an organization. A strategy is a pattern that harmonizes an organisations major goal, policies, and action
sequences into a unique system. The systematic planning, understand the competitive environment, align
short term plan with long term strategy and derive resource plans from strategic objectives are the leading
practices for strategic planning. Henry Mintzberg point of view strategic development is capturing what
manager learns from all sources of the direction that the business should pursue and then synthesizing that
learning into a vision. Sometimes poor deployment is happen due to lack of alignment, misallocation of
resources and insufficient measures. Seven management and planning tools which is used to implement
policy deployment are affinity diagram, interrelationship diagram, tree diagram, matrix diagram,
data analysis, process decision program chart and arrow diagram. These tools helps managers to make
better decision, continuous improvement and use time more effectively. Leadership system and strategic
planning have vital role to increase effectiveness of an organization. Category 1 of 2003 Malcolm Baldrige
national quality award criteria for performance excellence is leadership which helps to competitive business
success. Vision, empowerment, intuition, self-understanding, and valuable congruence are major skills for
effective leadership. The main objectives of leaders is creating and balancing their customer as per the
requirement for that they need high expectations about mission and commitment towards the job.
CONCLUSION:
The main factor influencing to successful organization is leadership. Described leadership theories are
helps the employees to shape the way they work and live. Strong leadership has a vital role in empowering
the employees and processes in an organisation. Other critical factor is Strategic planning which helps to
make a business success, which describes where you want your company to go.
CHAPTER 5 – FOCUSING ON CUSTOMERS
PURPOSE:
The importance of customers in organization and customer-driven quality are described in the initial
stage of chapter. Customers are the core of an organisation; Chapter is mainly focused on the concept of
understanding customers. Examine the loyalty and compare leading practices can be creating a satisfied
customer. Through the customer-supplier relationships get clear idea about customer. Further he described
about key dimensions to understanding customer needs through various examples. Analysis of all gathered
information linking to design, production, and service delivery gives all about the customers. Customer
relationship is relevant for the growth of organizations. In addition, it explains about building the customer
requirement, approaches for getting good relationships with the customers and also the ways for measuring
the customer satisfaction.
CONTENT:
The quality profiles of park place Lexus and Robert wood Johnson university hospital Hamilton, which
gives idea about the various techniques and strategy they took to meet customer requirement. The customer
satisfaction and loyalty are the main discussion factor of Lesson while the Patrick Mehne, the chief quality
officer at the Ritz-Carlton hotel said that “satisfaction is attitude and loyalty is behaviour”. The
competitive advantages are the main driving force of customer’s satisfaction. Loyal customers and
satisfied customers requirements are affected factors for a firm. The American customer satisfaction index is
defines the measure of customer satisfaction all over the nation by American society for quality and
university of Michigan business school in 1994. The expected quality is the basic customer needs while
improve the actual quality to expected quality is for getting satisfied customers. Successful companies are
mainly focused on the internal perspectives and various customer-oriented practices. Define and understand
different types of customers, linkage to production and satisfactions are under the leading practices of
creating satisfied customer. Identify weather customers are belongs to internal or external and types of
customer groups, after that divide the customers in to different segments, then understanding the needs of
customers into different segments by key dimensions of quality which getting loyalty of customers. Analysis
the “voice of the customer” and key dimensions of quality are necessary for the understanding the
customer needs. Excellent companies always keep close relationships with customer and proper feedback
from customers which lead to customer loyalty. The commercial bank found that a 0.1 percentage point
improvement in customer satisfaction translated into a 0.6 percentage point increase in customer retention.
The customer focuses criteria for getting frameworks and awards [Baldrige criteria and ISO 9000].
CONCLUSION:
The customer satisfaction is the key factor of success for every organization. The organisation should
meet customer requirements and the design of the product should be based on those requirements for getting
satisfied customers. Customer feedbacks and “voice of the customer” are vital for improving the standards
of an organisation. The competitive success can be understand customer needs and maintain relationships for
getting customer loyalty.
CHAPTER 6 – HIGH PERFORMANCE WORKFORCE MANAGEMENT
PURPOSE:
This section details the role of employees and workforce management in developing the quality of an
organization. This chapter mainly deals the key issues that organization must on in order to build a
workforce environment conductive to high performance. This chapter helps us to understand the major
objectives of work force management and its leading principles. In addition we will get better idea regarding
design and managing high performance work system and its functions.
CONTENT:
Customer‟s requirement and flexibility to meet ever-changing customer demand is satisfied through
work force management. Work force management is a vital task for all managers to understand both the
theory and practices of organization. The employee attitude has vital role in higher profit organization. For
employee satisfaction, work force engagement is the major principle of good organization. The motivation
and allowing employee to achieve their own unique level of excellence are the key factor to meet the
common organizational goal. High performance work refers to work method used to higher human
performance, flexibility and effective production. Work and job design, empowerment, team work,
developing and empowering teams, work place environment, engaging the work place in process excellence,
skill for team leaders and skill for team members are the design strategies of high performance work system.
Job design means responsibilities assigned to individuals while work design refers to “how employee are
organized”. Empowerment means relinquish decision responsibility of leaders to downward within an
organization. Teams go through formation and growth and simplify complex tasks. The employees are
considered as key stakeholder of an organization, their safer, productive and overall well-being is major
factors in the work environment. Skilled leaders and members are also important for workforce management.
Managing high-performance work system includes compensation and recognition, performance management
and assessing workforce engagement, satisfaction, and effectives. Workforce management focus is a
category for Malcolm Baldrige national quality award which examines how an organisations work
system, employee learning and motivation and employee well-being and satisfaction. Compensation and
recognition motivates the employees and workforce for developing their skills which improves the quality of
an organisation. Measuring employee satisfaction and HRM effectiveness is useful to access the linkages
with company strategy and to provide a foundation for improvement.
CONCLUSION:
Workforce management has vital role for the progress of an organization. The customers of an
organisation can be satisfied only if the needs of the workforce are catered. Designing and managing of high-
performance work system are major influence in work force management.
CHAPTER 7: PROCESS MANAGEMENT
Purpose:
A business runs with both internal and external customers. Only by satisfying both customers, a
business can run with profit and good reputation. In this chapter we are going to discuss about the different
types of process improvement methodologies and to apply in the business. And also show the different
process management frameworks in the business. Here the author also talks about the different
breakthroughs in improvement and the Baldrige criteria‟s for process management.
Content:
The Author briefly introduces various business processes. Value Creation processes, Supporting
processes and process requirements. Value creation processes are run by external customer needs and
Supporting process run by internal customer needs. Understanding the requirement that process should meet
is vital for designing them. Process Management involves planning and administering the activities
necessary to achieve a high level of performance in key business process and identifying opportunities for
improving quality and operational performance and ultimately customer satisfaction. Process management
consists of three important activities: design, control and improvement. Design- defines the process,
Control- measures the process and Improvement- improves the process. For applying the process
management process the product must be repeatable and measureable. Repeatability - process must
recur overtime. Measureable is the capability to reveal important features like quality and performance in
patterns. Designing process can have a significant impact on cost, flexibility and the quality of output.
Different kinds of approaches are process design approach, mistake-proofing process. Most of value-creation
processes in business and all support processes are primarily service orientated. So it is important to
understand the fundamental difference between manufacturing and service processes. Outputs of service
processes are not well defined as manufactured products. Services have three basic components: physical
facilities, processes, and procedures. Poka-yoke is an approach for mistake proofing processes using
automatic devices or methods to avoid simple human error. Three levels of mistake-proofing with increasing
costs associated with them, Designing potential errors out of the process, Identifying potential defects and
stopping a process before the defect is produced and finding that enter or leave a process. Process control
methods are the basis for effective daily management of process. Long term improvements cannot be made
to a process unless the process is first brought under control. Quality control in manufacturing, control is
usually to incoming materials, key processes, and final products and services. Quality control not only
applies to manufacturing it applies to services also. Most common quality characteristics are time and
number of non-conformance, can be measured rather easily. By continuous improvement only a company
can sustain in the market. The most important methods for process improvement is The Deming Cycle,
creative Problem solving, six sigma. Category 6 of the 2009-10 Malcom Baldrige National Quality Award
Criteria for performance Excellence is process management. Many aspects of ISO 9000:2000 deals with the
process management activities.
Conclusion:
We can conclude that, from this chapter we can learn about the different methodologies to improve the
process management process. We learn in depth about process management and its framework. There are
three main activities in process management; they are designing process, control process, improvement
process. We have seen the different process for the designing, control and improvement of the process. The
Deming Cycle, Six Sigma, is the different methods to improve the process management. Many aspects of
ISO 9000:2000 deals with the process management activities. By learning and implementing these ideas in
our business we can move towards a better future for the company and for society. Thus it stands an
important role in our business activities.
CHAPTER 8: PERFORMANCE MEASUREMENT AND INFORMATION MANAGEMENT
Purpose:
For a better improvement of our business we need to know where we stand now. We have to measure
our performance and compare it to the previous data‟s to know how much we have improved. In this chapter
we are going to learn about different systems to measure our business performance and how to apply it.
Measure the quality we are giving and the return we are going to get. Analysing the data and compare it for
betterment.
Content:
An organization needs good measurements for leading the entire organization in a particular direction,
to manage the resources needed to travel in that direction and to operate the processes that make the
organization work and continuously improve. An effective information system provides the right
information to right person at right time. Balanced scoreboard is to translate the strategy into measures that
uniquely communicate your vision to the organization. There are different types of balanced scoreboard
available for modern organizations. Sometimes different types of balanced scoreboard fail for variety of
reasons. For designing an effective measurement system we should select few measures and
concentrate on vital key business drivers, it also should include mix of past, present, and future.
Measures also should be based on the needs of customers and shareholders. Key performance measures
should be aligned with strategies and action plans. For making an effective decision we have to analyse the
performance data and facts.
The important way of analysing data is by comparing the data, to know where the organization stands
now. Comparing performance information frequently leads to better understanding of the process and
provide significant improvement. The Cost of Quality approach has numerous objectives, but perhaps
the most important one is to translate quality problems into the language of money. Quality costs can
be organized into four major categories: prevention costs, appraisal costs, internal failure costs, and external
failure costs. Return on quality is based on four main principles: quality is an investment, quality efforts
must be made financially accountable, it is possible to spend too much on quality, and not all quality
expenditures are equally valid. Simply collecting the data is not enough; organization must also ensure its
reliability. An organization must have knowledge about current trends and about competition. Process of
identifying, capturing, organizing and using the knowledge assets to create and sustain competition is known
as Knowledge management. Category 4 of the Malcom Baldrige National Award Criteria for performance
Excellence is titled Measurement, Analysis and Knowledge Management.
Conclusion:
We can conclude that, from this we came to know about the different measurement tools that can be
used and still using in industries. For improvement of our business we have to measure our performance and
quality of satisfaction that customers have from using our products. From this chapter we came to know the
important of analysing these data, the cost of quality and return of quality. An organization must have
knowledge about current trends and about competition. Without analysing the data or getting the measures
we will not get to know where we stand, without knowing our current status we won‟t be able to improve in
the right direction.
CHAPTER 9: BUILDING AND SUSTANING PERFORMANCE EXCELLENCE IN
ORGANIZATIONS
Purpose:
In every organization the quality of the work is important. These qualities in their products and services
are achieved by active participation of employees from top level management to low level employees.
Organization needs changes to be made for this performance excellence. The purpose of this chapter is to
show different ways to build a performance excellence culture in an organization and how to maintain that
culture in an organization.
Content:
The top three obstacles to implementing a quality based strategy have been cited as lack of strong
motivation, lack of time to devote to quality initiatives, lack of formalized strategic plan for change. Culture
in an organization is defined as organization‟s value system and collection of guiding principles. Quality
and performance must define and drive the culture of organization for its success. Six sigma shares
many synergies with Baldrige framework and can provide a complementary foundation for pursuing
higher levels of performance excellence using Baldrige framework. Best practices are simply those that
are recognized by business community to lead to successful performance. The five best practices are cycle-
time analysis, process value analysis, process simplification, strategic planning, formal supplier certification
programs. The three key players for a successful quality culture are senior management, middle management
and the workforce.
Changes make people uncomfortable; thus, managing change is seldom pleasant. There will be
numerous barriers exists for successful transformation of organizations to sustained culture of performance
excellence. Understanding these barriers can help significantly in managing change processes. Getting
started often seems easy by comparison with sustaining a quality focus. For sustaining the performance
excellence requires viewing quality efforts as journey, not an end, as well as the ability to develop into a
learning organization. Learning organizations have to become good at performing activities including
systematic problem solving, experimentation with new approaches, learning from their own experience and
history, learning from the experiences and best practices from others, and transforming knowledge quickly
and efficiently throughout the organization. To build and sustain a performance excellence culture in an
organization is to conduct self-assessment. There are many routes to building a quality culture, but none of
them represents the one best way. Many organizations might pursue Baldrige, ISO 9000, Six Sigma or
some combination of all three. Many organization starts with ISO 9000 because of its prescriptive nature
and process orientation. Four major barriers for implementing ISO 9000 are misinterpretation of the
requirements, over control of the quality system, excessive documentation, failing to identify current gaps in
requirements. A major benefit of Baldrige is that it naturally provides a framework for organizational
learning and therefore helps to enhance and sustain an organization, no matter what its current level of
maturity. Several key principles are required for successful implementation of six sigma are committed
leadership, integrating with existing initiatives, process thinking, disciplined customer and market
intelligence gathering, a bottom line orientation, leadership in trenches, training, continuous reinforcement
and reward.
Conclusion:
From this chapter, we learnt the different ways to implementing the Baldrige, ISO 9000, and six sigma.
And we learnt how to build up the performance excellence and how to sustain that. We have seen what the
barriers are when we change the culture of organization. Thus by this chapter we can see how to maintain
and what all to expect from implementing and sustaining a good culture. Without this knowledge of the
above it is hard to sustain in the market and competitors.
CHAPTER 10: STATISTICAL THINKING AND APPLICATIONS
Purpose:
Many managers who do not understand how to use statistics effectively make mistakes. Statistical
concepts are crucial to good quality management and are the key dealing with the process and their inherent
variations. Companies large and small need to understand statistical aspects of data analysis to make good
decision. In this chapter we are going to discuss about the statistical methodologies and its foundation.
Content:
Statistics is essential in implementing continuous improvement philosophy. Every data collected must
be organized, analysed and interpreted. Statistics will provide an efficient and effective way of obtaining
meaningful information from data. A system governed only by common cause is called a stable system,
differentiating special and common causes of variation in a stable system is essential for managing a system.
To apply statistics properly, you need to have basic understanding of probability distribution and
sampling. A mathematical function that assigns numerical values to every possible outcome in a sample
space is called random variable, it maybe discrete or continuous. A probability distribution represents a
theoretical model of the relative frequency of a random variable. Sampling forms the basis for applications
of statistics. Errors in sampling generally stem from two causes: sampling error and systematic error.
Types of sampling procedures are simple random sampling, stratified random sampling, systematic
sampling, cluster sampling, judgmental sampling. There are three components in statistical methodology.
The first major of statistical methodology is the efficient collection, organization and description of data,
commonly referred to as descriptive statistics. The second component of statistical problem solving is the
process of drawing conclusions about unknown characteristics of population from which data were taken is
called Statistical inference. The third component in statistical methodology is predictive statistics, the
purpose of which is to develop predictions of future values based on historical data.
Microsoft excel provides data analysis tools called analysis toolbar, that are useful in complex
statistical analyses. Deming called the analysis of static population an enumerative study and the
analysis of a dynamic time series an analytic study. A designed experiment is a test or series of test that
enables the experimenter to compare two or more methods to determine which is better or determine levels
of controllable factors to optimize the yield of process or minimize the variability of a response variable.
One of the most common types of experimental designs is called factorial experiment. ANOVA is a
methodology for drawing conclusions about equality of means of multiple populations. Regression
analysis is a tool for building statistical models that characterize relationships between a dependent variable
and one or more independent variables, all of which are numerical. Correlation is a measure of linear
relationship between two variables, X and Y, and is measured by the correlation coefficient.
Conclusion:
From this chapter we can learn about the statistical methodology for analysing the data and interpreting
the data. For applying statistics we should understand the basic understanding of probability distribution and
sampling. If the managers do not understand the data or the statics or variation well it will be hard for
making decision or they will end up making wrong decision. From this chapter we can move into the right
direction.
CHAPTER 11: SIX SIGMA AND PROCESS IMPROVEMENT
Purpose:
In every organization there are complex tasks to do and it is hard for to explain and to do. Today there
are different methods and tools to make it easier for organizations. In this chapter the author is explaining
about the different tools of process management and about six sigma.
Content:
Six sigma reduces defect levels to only a few parts per million. Six sigma has been applied in product
development, new business acquisition, customer services, accounting, and many other business functions.
Six sigma principal problem solving methodology used is DMAIC- define, measure, analyse, improve,
and control. One must describe the problem in operation terms that facilitate further analysis- define. The
analyse phase of DMAIC focuses on why defects, errors, or excessive variation occur, finding the root
cause. Once the root cause of a problem is understood, the analyst or team needs to generate ideas for
removing or resolving the problem and improve the performance measures and CTQs. The control phase
focuses on how to maintain the improvements, which includes putting tools in place to ensure that the key
variables remain within the maximum acceptable ranges under the modified process. One of the
requirements for achieving green belt status is to successfully complete a basic six sigma project by
solving meaningful business problems that positively impacts customers or business performance.
Classifying quality and performance- related problems by problem type can help identify potential six sigma
projects and most appropriate tools to address them. Although we view process improvement tools and
techniques from the perspective of six sigma, it is important to understand that they are simply a collection
of methods that have been used successfully in all types of quality management and improvement initiatives,
from generic TQM efforts, to ISO 9000 and in Baldrige processes. Among the many tools that comprise
the six sigma toolbox are seven simple tools: Flowcharts, check sheets, histograms, pareto diagrams,
cause and effect diagrams, scatter diagrams and control charts. Six sigma projects have three key
characteristics: a problem to be solved, a process in which the problem exists, and one or more measures that
quantify the gap to be closed and can be used to monitor progress.
Conclusion:
Six sigma can be used in different sectors of an organization, from manufacturing department to the
customer service section. From this chapter we will get information about the methodology about
implementation of six sigma in project management, the tools for process management and seven quality
tools.
CHAPTER 12: DESIGN FOR QUALITY AND PRODUCT EXCELLENCE
Purpose:
Design of products decides the quality and profit of the company. A good design gives minimum loss
of time and resources. So with a good design company can move forward in the direction towards
excellence. In this chapter we can learn about the different types of designing processes.
Content:
Better designs not only reduces costs, but improves the quality too. A typical product development
process consists of six phases. They are Idea generation, Preliminary Concept Development,
Product/Process Development, Full-Scale Production, Market introduction, Market Evaluation.
Concurrent Engineering involves multifunctional teams, including every specialty in the company. To
develop the concepts and decide what design methods and production methods are appropriate. The
uniqueness of DFSS lies in the manner in which they are integrated into the formal methodology, driven by
Six Sigma philosophy, with clears the business objective in the mind. Concept development is the process of
applying the scientific, engineering and business knowledge to produce a basic functional design that meets
both customer needs and manufacturing or service delivery requirements. Development of design is the
process of developing basic functional design involves translating the design concept and customer
requirement into measurable technical requirements and subsequently into detailed design specifications.
Quality Function Development benefits the companies through improved communication and
framework between all constituencies in the value chain. The house of quality provides the marketing
function with an important tool to understand customer needs and gives top management strategic
direction. Design For manufacturability is the process of designing a product for efficient production at
highest level of the quality. DFX includes many design related initiative such as concurrent engineering,
DFM, Design for assembly design for environment and other “design for” approaches. A scientific
approach to tolerance design uses the Taguchi Loss function. Design Optimization includes setting proper
tolerances to ensure maximum product performance and making design robust. One tool proactively used
for the addressing the risk is design failure mode and effects analysis (DFMEA). The final Phase of
DFSS is verification of product and product designs i.e., Design Verification. It is necessary to ensure design
meets customer requirements and can be produced to specification. Design reviews help the designers to
solve the problems even before they arise. The reliability of a product is determined principally by design
and the reliability of the components of product. Reliability tests are accelerated life testing, Burn-in or
component stress testing. The size of the errors relative to measurement value can significantly affect the
quality of data and resulting decisions. Process of capability is the range over which the natural variation of
process occurs as determined by the system common causes.
Conclusion:
From this chapter we came to know the design processes and how to design towards the product and
quality excellences. A better design reduces costs and increases the quality. For example the late 1980s,
Citibank designed a new mortgage approval procedure that reduces the turnaround times from 45 to less than
15 days.
CHAPTER 13: STATISTICAL PROCESS CONTROL
Purpose:
The failure to distinguish between common causes and special causes of variation can actually increase
the variation in a process. This problem will often lead to mistaken belief that whatever process output is off
target. This will lead to wrong decision from top management. In this chapter we will learn about the Statics
and statics process control.
Content:
SPC relies on control charts, one of the basic quality improvement tools. Quality control
Measurements and indicators fall into categories, Attribute and Variable. Process capability
calculations make little sense if the process is not in statistical control. If a process is neither capable nor
in control, first get the special causes and attack on common causes. Control charts have three basic
applications: establish a state of statistical control, to monitor process and signal, to determine process
capability. Two most common charts used for variable data are x-chart, R-chart and X-chart for monitoring
centring of the process and R-chart for monitor the variation in the process. One point Outside Control
Limits is usually produced by a special cause. Sudden Shift in the process Average is basically caused by
common cause. Hugging the Control Limits pattern shows up when many points are near the control limits
with few in between. Control Charts indicate when to take action and when to leave a process alone. An
alternative to using the R-chart along with the x-chart is to compute and plot the standard deviation s of each
sample. Attribute data assume only two values- good or bad. Attributes usually can’t be measured but
they can be observed and counted.
Most common chart used for attribute is p-chart; it monitors the proportion of nonconforming items
produced in lot. It is often called fraction nonconforming or fraction defective chart. C-chart is used to
control the total number of defects per unit when subgroup size is constant. If sub group sizes are variables
u-chart is used. The np-chart is a control chart for number of nonconforming items in sample. The key issue
in selecting between c- and u-charts to consider is whether the sampling unit is constant. Designers of
control charts must consider four issues, the basis for sampling, the sample size, the frequency of
sampling and the location of the control limits. The purpose of a control chart is to identify the
variation in the system that may change overtime. A small sample size is desirable to minimize the
opportunity for within-sample variation due to special causes. Taking large samples on a frequent basis is
desirable but clearly not economical. Location of control limits is closely related to the risk involved in
making an incorrect assessment about the state of control. ISO 9000:2000 places increased emphasis on the
use of statistical methods compared with previous version. A new version of ISO standard, 11462-1,
provides guidance for organizations wishing to use SPC to meet the requirements. SPC is a useful
methodology for processes that operate at a low sigma level, for example 3-sigma or less. Pre-Control is a
technique useful in operations such as machining, where quality characteristics are easily monitored and can
be adjusted.
Conclusion:
For making a decision, top management needs to analysis the situation well. For this they need data.
From this chapter we will know how to form chart and change the data into meaningful language for the
management. SPC is a useful methodology for processes that operate at a low sigma level, for example 3-
sigma or less.
END OF PART 1.
PART 2:ARTICLE WRITING
IMPLEMENTATION OF TQM IN DIFFERENT TYPES OF
ORGANIZATION
By
Shobin John1,
Krishna Kumar Shanmugham Chetiyar2
IMPLEMENTATION OF TQM IN DIFFERENT TYPES OF
ORGANIZATION
Shobin John1, Krishna Kumar Shanmugham Chetiyar2.
School Of Engineering and Business, Halmstad University, Halmstad, Sweden
Key Words: Total Quality Management (TQM), Implementation Techniques
Abstract: This paper is a study on implementing the Total Quality Management (TQM) in organization and how it effects the
performance of the organization. Everyday large or small organizations are trying to improve their performance and quality of
their products by improving or developing new ideas. Organizations worldwide have implemented Total Quality Management
(TQM) to have a competitive edge in the market. Total Quality management is the approach for improving the quality of product
and services provided by the company. TQM is implemented in different organization from the early stages of 1980s. And it is
still implemented in organization. Total Quality Management is not just a management challenge. Larger companies have higher
level of implementation across almost all practices. Small and medium companies have hard time implementing Total Quality
Implementation (TQM). Total Quality Management will improve the organizational effectiveness and receive considerable
attention in current scenario. The main object of the implement the Total Quality Management (TQM) is to combine the
organizational business process and the performance of the organization towards the profit of the organization. This paper will
concentrate on the methods of implementing the Total Quality Management (TQM) and what are the strategies for implementing
in an organization. This paper will discuss about two cases of implementation of Total Quality Management in Toyota and
General Motors.
1. INTRODUCTION:
“A subjective term for which each person has his or her own definition, in technical usage, quality
can have two meanings: (1) the characteristics of a product or service that bear on its ability to satisfy stated
or implied needs and (2) a product or service free of deficiencies.” American Society for Quality (ASQ)
(CDX) A Quality Management System is “The organizational structure, processes, procedures and resources
needed to implement, maintain and continually improve the management of quality.” American Society for
Quality (ASQ) (PATRICIA LOTICH, MAY 20, 2013)
For an organization to achieve continuous quality improvement they need appropriate quality tools
and techniques. Currently there are several management tools and techniques available for the organization,
so selecting the appropriate tool for their use is not an easy task.
Total Quality Management is an approach that is applied from the year 1950s and it gradually came
to popularity from the year 1980s. It is both, a philosophy and a set of principle and practices for the
continuous improvement of organization. Total Quality Management also implies total quality of
management and management of quality. Total Quality defines the culture, attitude and Organization of
company that starves for the quality of the products and service to suit their customer needs. Culture of an
organization requires quality in all aspects of company‟s operation to reduce the defects from the first
process of product and to eradicate the waste. TQM involves the participation of employees from all levels,
from top management to foreman towards improving the process, products, services and culture they work
for in the company. Every employee needs training and clear vision and aim about the company. (Brian B.
Mansir & Nicholas R. Schacht, 1989: 1.1-1.3; Khurram Hashmi, 2012)
The methods for implementing the TQM process in organization comes from the quality gurus like
Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran.
Why do we need TQM?
We know get an idea about Total Quality Management; now let‟s see why do we need TQM in our
organization. For that we should first discuss about the cost of doing things wrong, price paid for non-
Quality products. These losses include the inadequate training provided for the employees, dissatisfaction of
customer by that destroying the company‟s reputation. Unfulfilled needs of the customer, improper usage of
resources, reputation damage for the training provider etc. We all know this is enough for closing an entire
facility or the company itself.
Now what happens when we adopt for TQM, what are the benefits of it?
Product Quality ensured and gradual increases, Service Quality increases towards the market needs,
Customer is well satisfied and Gaining a Reputation, A new culture will be developed in company towards
growth and competiveness, Reduction in administrative and operation cost, better teamwork, defining a
process for continuous improvement, surviving and staying in the competition of market. (Moustafa Gabr:
2002)
The benefits of implementing Total Quality Management (TQM) are widely recognized following its
successful repots of the large companies. After the successful implementation of the TQM it has led
companies to be highly competitive both locally and internationally. Through the production of quality
products that meet customer requirements at low cost. Thus we will increase the market share and the
profitability of the organization. (PHAIK LAN GOH, May 2000).
We had a brief introduction about Total Quality Management (TQM) and the benefits of TQM. In
this article we further discus about the following points.
What are the processes for implementing the Total Quality Management?
How it is implemented in the organization?
What results that they get after implementing Total Quality Management?
2. HOW TO IMPLEMENT TQM IN AN ORGANIZATION:
The important purpose for the implementation of TQM process is to get the task completed with least
time and with improved quality. TQM process can be implemented on organization by different ways. By
applying PDSA cycle for improvement, Shewhart developed a Plan, Do, Check, Act (PDCA) cycle for
improvement process, later Deming modified the cycle into Plan, Do, Study, Act (PDSA). Using the 6 C‟s
for implementing the TQM (Commitment from employees, Quality Improvement Culture, Continuous
Improvement in Process, Co-Operation from Employees, Focus on Customer Requirement, Effective
Control shall be laid down). Five strategies for Development of TQM process, Deming‟s 14 points on TQM,
12 steps for implementing Quality Management system,… these are the few methods for implementing
TQM in an organization. Now we are going to discuss few of the methods for implementation of TQM.
I. Six C’s of TQM
Figure 1: Six C‟s Of TQM.
i. Commitment from Employees:
TQM process must be developed in such a way that every employees of an organization must be involved.
By this quality improvement will become an essential part of everyone‟s work. Furthermore, this will ensure
Quality improvement commitment for every work given to these employees
ii. Culture:
Quality improvement culture should be introduced in the organization. There should be a modernized
method to collect feedback from employees. This should ensure a comfort environment for the employees
iii. Continuous Improvement of process:
TQM process is not a program, it needs continuity. It requires continuous improvement in all polices,
controls and procedures laid down by management. There should be continuous search for improvement.
Even it is a small improvement, we should strive for improvement.
6 Cs of
TQM
Control
Customer
Focus
Culture
Continuous
Improvement
Cooperation
Commitment
iv. Cooperation from Employees:
Application of TQM is directly in relation with total involvement of employees during and after the
implementation of TQM. The experience of employees is utilized in the development and improvement of
the process.
v. Customer Requirement:
The whole TQM process must be developed according to the customer requirement and their expectations
from the company‟s product and services. In present day market, the customer‟s expect zero defects in
product and services. This will improve the relationship with the customer and improves the reputation.
vi. Control:
There should be a set of controls to monitor and measuring the performance done in the business. The
controls should be documented or manuals of the current business practices. These controls will help in
identifying the deficiencies, if any in the business. (Shiv kumar Sharma, Shivanand Vishnu Gupta, Rahul
Singh: September 2014)
II. DEMING’S 14 POINTS FOR TQM IMPLEMENTATION
Deming‟s 14 points on total quality management is a core concept of implementing total quality
management. It is a set of management practices that helps the company to improvement of their quality and
productivity. (Henry R. Neave: 1987)
Create consistency of purpose for improving the product and services.
Adapt to the new philosophy.
Cease dependence on inspection to achieve quality.
End the practice of awarding price alone; instead, minimize the total cost by working with a single
supplier.
Improve constantly and forever every process for planning, production and service.
Institute training on the job.
Adopt and institute leadership.
Drive out fear.
Break down barriers between staff areas.
Eliminate slogans, exhortations and targets for the workforce.
Eliminate numerical quotas for the workforce and numerical goals for management.
Remove the barriers that rob people of pride of workmanship and eliminate the annual ratings or
merit system.
Institute a vigorous program of education and self-improvement for everyone.
Put everybody in the company to work accomplishing the transformation.
III. Five Strategies for developing TQM process
i. Strategy 1: The TQM element Approach
The TQM element approach, it takes key elements of business process and/ or organizational units and uses
the TQM tools for improvement. These methods were widely used on the early 1980s, they learned as they
were trying to implement TQM in their companies. Examples are quality circles, SPC (Statistical Process
Control), Taguchi Methods and Quality function Deployment.
ii. Strategy 2: The Guru Approach
This approach uses the teaching and writings of one or more of the leading quality thinkers as a guide
against which to determine where the organization has deficiencies. Then find appropriate remedies for those
deficiencies. For example, managers might study the Deming‟s 14 points or attend the Crosby College.
iii. Strategy 3: The Organization Model Approach
In this approach the individuals or teams visit organization that have taken leading role in TQM and
determine the whole process and reason for their success. Then they will integrate their own ideas to develop
an organizational model adapted for their own organization.
iv. Strategy 4: The Japanese total quality approach
Organizations using this approach will examine the detailed implementation techniques and strategies
employed by Deming prize-winning companies and use this experience to develop a long range master plan
for in-house use. This approach was used by Florida Power and Light among others to implement TQM and
to compete for win the Deming Prize.
v. Strategy 5: The award Criteria approach
When using this model, an organization uses the criteria of a quality award, for example, the Deming Prize,
the European Quality Award, or the Malcolm Baldrige National Quality Award, to identify areas for
improvement. Under this approach, TQM implementation focuses on meeting specific award criteria.
Although some argue that this is not an appropriate use of award criteria, some organizations do use this
approach and it can result in improvement. (The Certified Manager of Quality/Organizational Excellence
Handbook, Russell T. Westcott: 2013)
3. ORGANIZATIONAL FRAME WORK THROUGH TQM
According to European Centre for Business Excellence (EC for BE) Implementation of
framework is very important for organization excellence. The framework is about three points, setting the
direction, managing process and Improve performance of organisation.
There are two key factors critical success factor (Fred AppiahFening Chai-Les, PesiAmariaand Dean,
2013) (c s f) and key performance indicator (k p i) which determines whether organization achieves its
Visions, mission and goal (SajidJavid, 2010).
KPI = Number of new customers. (Measurable, quantifiable) + Threshold = 10 per week [KPI
reached if 10 or more new customers, failed if <10]
CSF = Installation of a call centre for providing superior customer service (and indirectly,
influencing acquiring new customers through customer satisfaction) (Rockart, John F and Christine
V. Bullen, 1981).
Vision is long term view which gives perfect plan for future while mission‟s stands for
what are thing do organisations to achieve the vision. For completion of mission first step is to brainstorm
the entire success factor and accomplish to achieve mission. They must be measure key success factors by
using performance parameters which accompanied lucid target. It is necessary to cross check the critical
success factor at each step of core process for continuous improvement of quality in an organization. After
finding the critical process subdivided into sub-process, task and activities and it can be analysed using
matrix method. By using this method and tasks, to allow the opportunities for continuous improvement of
organization or process re-design to be identified. Another fact to improve the quality of an organization is
“goal translation” which makes sure that to convert all “what” to “how”(SajidJavid, 2010).
To achieve a quality management is a tedious task. The managing of system, jobs and
process are carried out in right time. For the better quality deterministic approach that will affects the
employees, customers, suppliers, shareholders and society. But the quality of the management is competitive
weapons of organization (Ž. Antoli, 2008).
The tasks of implementing quality on organization have two steps, The “Blitz” approach
whole organization adapt the concept and mass education started. These cause difficult to overcome
unhealthy situation. The planned purpose full approach that cause a gradual change in organization.
The principles will never change for quality of organizations are customer satisfaction,
process development and employee satisfaction. In a present scenario TQM is very effective for
multinational companies (MNC) like GM motors and TOYOTO. We discussed about influence of TQM on
management and company strategy.
4. METHODOLOGY
The study was conducted in multinational companies GM motors in Detroit and TOYATO in Japan.
Quality implementing technique was adopted by the researchers in getting the comparison between these
two companies. . Before administering the full study, a pilot study (4 weeks) was conducted in 2
manufacturing companies. With the pilot study several researched ideas were pre-tested, using some selected
manufacturing companies. The subjects for the study was based on the total quality management impact
including; Organization commitment, training, customer driven information, process control and
improvement, employee empowerment (James R. Evans and William M, 2014).
a) TQM on G M (MNC)
Case 1
History
G M is a multinational automotive company in Detroit. It was founded in 1908 by William “Billy”.
At its early stage held only Buick Motor Company, but later would acquire more than 20 companies
including Oldsmobile, Cadillac, Pontiac and Oakland (Patricia Lotich, 2013). GM employs 202,000 people
and does business in 157 countries (Eugene G. Wagner-Public Affairs Manager, Motor Vehicle Mfrs. Assn.
of U.S., Inc. Revive).In 2009; GM was faced bankruptcy court protection. The company had 150 full-time
Red X employees. They were working in its Technical problem and performance. Gradually, GM
Corporation becomes an international level(The New York Times. May 31, 2009). Re-emerging at the new
GM is the competitive spirit that, for decades, leads GM to leadership in styling. (Patricia Lotich,
2013,Eugene G. Wagner-Public Affairs Manager, Motor Vehicle Mfrs. Assn. of U.S., Inc).
Organizational Strategy
Figure 2 GM’s New Organizational Structure.
The GM organization rooted in lean methodology and structured around five principles- people
involvement, built-in quality, standardization, short lead time, and continuous improvement. Improving the
manner which enterprises currently doing business and moving a promises business in to new area are
traditionally influenced approaches for grow up (Barabba, Vincent P, 2004). The main quality of GM is
production waste is recycled or reused in the manufacturing process.
Red X team are the pillar of the company following the problem solving techniques is
Queue: Define project, work load and parts
Duplicating the Green -Y: Recreate the issue and detail analysis.
Clue generation: Converge down the root cause of the problem.
Implementation: Corrective action and complete project (Sajid Javid, 2010).
Re organizational product change
After the bankruptcy company reorganized its structure and contents of brand. They put “GM mark
as excellence” and remove low rating brand introduce hybrid bank architecture structure. Further they
introduce multiple brands associated with invisible brand architecture structure. Standardization towards
excellence in product and strong relationship in management system are other driving strategy to improve
quality. (Merriam Associates, Inc. Brand Strategies. November 22, 2010. Retrieved December 4, 2010)
b) TQM on Toyota (MNC)
Case 2
History
Toyota motors are a multinational automotive company in Japan. It was founded in 1924 by Sakichi
Toyoda.9 at its early stage held only passenger car, the model AA, which is cheaper than GM cars
10, but later
would acquire 11th
largest production company in the world, and produce 200 million vehicle. GM employs
338,875 11
people and does business in all over the world ("Overview". Global website. Toyota Motor
Corporation. 2014-03-31."History of Toyota”. Archived from the original on November 20, 2012).
Quality Strategy
Toyota Motor Co.Ltd. Won the Deming Application prize and japan Quality control Award based on
the philosophy “customer first” and “quality first” and the unchanging principles of “continuous
improvement and “total participation” (Liker, J. 2004).
Toyota management has been focused on “lean manufacturing”, “just in time production” and “six
sigma”. They are well trained in “process simplified”, “value stream mapped”, “work cell mapped” and
“problem solving”. The employees are working under two headlines, “Respect for peoples” and “continuous
improvement” (Resetarits, P.J, 2012).
The key principle of the Toyota way in 2001 are Challenge, Improvement, Genchi Genbustu (go and see)
belongs to continuous improvement and Respect, team work belongs to Respect people. All over the
organization follows the Deming principles and Piggly-Wiggly‟s just in time. (David Magee 2007,The
Toyota Way, 2001).
c) Limitation
Influence of quality in technical section, product design and marketing. GM motors and TOYOTA
produce lot of different variety products. Types of products, developments in production field through
quality are not mentioned in our study.
d) Result
Analysis can be concluded that TQM is highly influenced in multinational company like GM motors
and TOYOTA. For GM motors principle of TQM used to revive their bankruptcy and continuous
improvement while TOYOTA used to excellence in production and quality. According to the vision, mission
and principle of company TQM is affects in different manner. GM motors and TOYOTA are mainly focused
in customer satisfaction, continuous improvement and quality of product.
e) Comparison
The GM motors engineering mainly focused on the weight reducing, robotization and front wheel
driving in its production field while TOYOTA deals the Aerodynamics and vehicle design. In GM industry,
Mangers and labours are not committed to develop quality product while TOYOTA are committed to
develop quality product. In dealing with Japanese industries and TOYOTA in particular, it appears that
organization focusing on employee satisfactions and 6C‟s. The entire factor analysed to determine whether
in fact Japanese industry represented by TOYOTA is superior to American industry exemplified by GM
motors. The GM motors faced problems are worst product quality, labour relation, dirtier and nosier plant
for continuous production. GM motors, Tarrytown QWL program led to good relationship between
management and labours to make a quality production. There would be no conflict in TOYOTA because of
its norms of UWA and labour force dedicate to company improvement and quality of product (Wagner,
Eugene G. 1982, 0hmae, Kenichi.1982, "Japan's Transpacific Team", Bruce-Briggs, B, "More Firms Cut or
Freeze Managers”,1982).
5. CONCLUSION:
Today, to be in competition every organization try to develop new ideas or improve the
techniques we already had. Total Quality Management is one of the finest methods for improving the
quality and product excellence in their organization. There are different methods to implement Total
Quality Management. We have discussed few methods to implement TQM. Deming‟s 14 points of
TQM, Six C‟s of TQM and the five strategies for implementing TQM, these process are few important
process in which many company got succeed. Continuous improvement keeps the organization in the
right direction of improvement. From the cases we can see that, when they were in difficult times they
overcome those with the help of Total Quality Management. In case 1, the multinational company like
General Motors were nearly under bankruptcy and they were trying to get back. For GM, they put GM
mark as Excellence and removed the low quality brand introduce hybrid bank architecture structure.
And they improved a strong relationship between management and the system. They also standardized
the product towards excellence. Thus by applying Total Quality Management they got passed the
difficult times. In case 2, the multinational company Toyota motors thrive towards continuous
improvement by applying the Deming‟s principle and Piggly-Wiggly‟s just in time. In both the cases
the companies were mainly focused on the customer satisfaction, continuous improvement and quality
of the product. By applying the Total Quality Management they achieved those and now we know the
importance of TQM.
6. REFERENCE
1. PATRICIALOTICH (2013, MAY 20), 12 Steps to Implementing a Quality Management System
[online]. Available: http://thethrivingsmallbusiness.com/12-steps-to-implementing-a-quality-
management-system/
2. Brian B. Mansir & Nicholas R. Schacht, Total Quality Management, LMI Ed, August 1989, pp 1.1-
1.13.
3. Khurram Hashmi (2012, Jan), Introduction and Implementation of Total Quality Management
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tqm/introduction-and-implementation-total-quality-management-tqm/
4. Moustafa Gabr. (2002) „QUALITY ASSURANCE IN TRANSLATOR TRAINING‟ vol.6 July, pp
1-3.
5. PHAIK LAN GOH, (May 2000) „THE IMPLEMENTATION OF TOTAL QUALITY
MANAGEMENT IN SMALL AND MEDIUM ENTERPRISES‟, Ibberson Centre, Department of
Mechanical Engineering, The University of Sheffield, Mappin street, Sheffield
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SUCCESS‟, Journal of the Royal Statistical Society. Series D (The Statistician), Vol. 36, No.
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Knowledge (BoK) of ASQ‟s Certified Manager Of Quality/ Organizational Excellence (CMQ/OE)
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Total Quality Management and Organizational Survival in Manufacturing Companies in
Ghana .International Journal of Business and Social Science Vol. 4 No. 10 1-17.
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12. John F, Christine V. Bullen, and Rockart. (1981). "A Primer on Critical Success Factors" published
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13. Ž. Antoli, (2008), an Example of Using Key Performance Indicators for Software Development
Process Efficiency Evaluation.
14. Eugene G. Wagner-Public Affairs Manager, Motor Vehicle Mfrs. Assn. of U.S., Inc.
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END OF PART 2
PART 3: CASE STUDIES
Production for total quality, appendix 3
Case 3.1: Breakdown aluminium door (vertical)
Case 3.2: Failure of the boom
Case 3.3: A break in the wire Case
Case 3.4: Failure of the truck (carrier sheet)
Case 3.5: Displacement Problem
Case 3.6: Drum washing machine
Case 3.7: Information logistics - the right information, at the right place at the right time, in the right
amount.
By
Shobin John1
ZoelFikar Elghoul
Ahmad EL-Masari
Sai Sumanth Galla Venkata Sri
Krishna Kumar Shanmugham Chetiyar
CASE: 1
BREAKDOWN ALUMINIUM DOOR (VERTICAL)
Case background: The accident had occurred after the fitters hoisted up port over a specific location where a
switch would have batted. Welding engineer took out three samples for the basis for this mission. The three
samples were taken from the existing port that was wrecked. These welds were x-rayed and it was found that
two of the welds contained incomplete penetration. All three welds were then sent to an accredited lab to
perform destructive testing i.e. in this case the tensile test. The results indicated that one of the three welds
passed the yield point of the material, > 360MPa the other two were below. Finally, a report that was written
above was summarized and a report sent to the layer.
After further discussion we think, the role of manufacturing and assembly in producing quality is to ensure
that the product is made correctly. Manufacturing cannot do its job without a good product design and good
process technology. However, no defects should acceptable. Finished goods should be inspected and tested.
The purpose of final product inspection are to judge the quality of manufacturing, to discover and help to
resolve production problems that may arise, and to ensure that no defective items reach the customer. About
the installation the products must be used correctly in order to benefit the customer. As the user must
understand the product and have adequate instructions for proper installation and operations.
We can see from test results of the three samples
Specimen 1 2 3
Cause of failure - Yield stress < 360
MPa,
Yield stress < 360
MPa,
Table1.1 Cause of Failure of the aluminium port (YIELD STRESS)
From the discussion, we came to the conclusion that the failure was due to the
Lack of information passed to the customer for installation and operations.
Improper welding.
There was lack physical inspection during and after the process.
No proper maintenance for the robot welding.
We recommend the following,
Inspection during and after the process. The practice allows to detect deviations from the processes
immediately and to make necessary adjustments.
Periodic maintenance and supervision for robot welding.
Manufacturing processes must be capable of producing output that meets specifications consistently.
CASE: 2
FAILURE OF THE BOOM
A boom of a mobile crane XX tons had breakdown. All welds had large cracks. After visual inspection it
seems like the welds comply with SS-EN ISO 5817, welding class B.
We can see that the
overloading of weight is the primary cause,
external conditions like weather and wind condition,
lack of information for the operator,
lack of maintenance,
lack of inspection from authorities,
Mechanical issues like rusting, hydraulics
We can recommend that
Physical inspection before using the crane.
Regular Maintenance
Periodical quality Inspections by concerned authorities
Provide required training for supervisor and operator
CASE: 3
A BREAK IN THE WIRE
The accident background, a lifting device with a wire attached to a crane snapped and 5 tons of glass was
shattered. No one was injured. By doing visual inspection and interviewing the person we came to the
conclusion that the wire has snapped in the same area that has been affected during all previous lifts. The
operation consists in lifting approx. 5 tons of glass from a frame to a rack and from there to a finished stock.
The lifting height was between 300-500 mm.
After the discussion we came to the conclusion that the problem caused by the following,
Over usage than the prescribed yield strength and factor of safety of wire.
Improper inspection and maintenances.
Lack of information passed to the operator.
Improper supervising by supervisor.
Solution and preventive measures for the problem,
Proper documentation about the device limit.
Proper schedule for inspection and maintenance.
Training provide for the operator and supervisor.
CASE: 4
FAILURE OF THE TRUCK (CARRIER SHEET)
Case background: Staff at a large international company that manufactures forklifts noted that a support
plate to the chassis seems to be cracked. There had been a "crack" in a 40 mm thick steel plate. After doing
NDT, we found that the plate was afflicted with laminations. In agreement with the production and
management the NDT performed an ultrasound check on all vehicles produced (> 20 pc). The cause of the
lamination could be traced to the supplier. A Subsidiary (which was not in Sweden) had without warning
switched supplier. However, the former supplier manufactured the steel plate with better results than
standard meanwhile the new supplier used the entire margin in the standard, but within limits.
Here we can find the root cause by using 5 why concept. It is the approach to find the root cause of problem,
it is basically asking 5 why‟s ideally.
i. Why we had a crack in the steel plate?
Because of the manufacturing defects.
ii. Why manufacturing defects?
Because of the change in supplier.
iii. Why the change in supplier?
Because for the profit from purchase.
iv. Why go for profit from purchase?
Because of the purchase department decision.
v. Why did they make that decision?
Because management needed more profit for running the company.
By using the 5 why technique we came to the conclusion that, for the profit of the company they made the
wrong decision without increasing the limit.
We can find a solution by providing some negotiable limits for the steel plate.
CASE: 5
DISPLACEMENT PROBLEM
Case background: After a sudden failure of a cylinder in vehicle (dump truck) the manufacturing
organization began to suspect the cause to be defects in weld on all cylinders that were welded by a welding
robot. The number of cylinders was about 3000 pcs. Several experts where brought in to performed non-
destructive testing (NDT) by ultrasonic and magnetic particle testing on these 3000pcs. It was found that the
robots bushings and bearings were worn. A wire fee did not work properly, which affected the welding
results. Lack of fusion occurred between the weld beads.
Here we can find the root cause by using 5 why concept. It is the approach to find the root cause of problem,
it is basically asking 5 why‟s ideally.
i. Why there was a failure in cylinders?
Because of the welding defects in the cylinders.
ii. Why there was a welding defect in the cylinders?
Due to the worn out of bushing and bearings.
iii. Why the bushing and bearings worn out?
Due to the malfunction of welding robots.
iv. Why there was a malfunction in welding robot?
Due to improper maintenances of the robot.
v. Why there was no proper maintenance?
Because of the lack of information about maintenance required for the robot and not scheduling the
maintenance well.
By using the 5 why techniques we came to know about the root cause of problem, because of improper
maintenance scheduling and lack of information about the maintenance of robot.
We can solve it by
giving proper training to the operator
scheduling a proper maintenance period for the robot
CASE: 6
DRUM WASHING MACHINE
Case Background: A large international company that manufactures washing machines had problems with
the inner drum (shaft, washer and rear end) in washing machines. Model D520 was the object of analysis
(the largest volume). The following problems had occurred: Throw on axis i.e. rear axle and did not become
perpendicular. The following information was available: Axis, washer and rear end are welded together
using a welding robot, a (new) operator to program the robot, washer was loose before welding took place,
material thicknesses ranging from 2 mm to 8 mm, stainless steel materials was used, the design was
relatively new, the welding machine was calibrated, the method was previously manual, management has
approved method.
For solving this problem, we can use anyone of the tools from the basic 7 quality tools. The seven quality
tools are:
Cause-and-effect diagram (also called Ishikawa or fishbone chart): it is a simple graphical
method for presenting a chain of causes and effects and for sorting out causes and organizing
relationship between variables.
Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool that can
be adapted for a wide variety of purposes.
Control charts: Graphs used to study how a process changes over time.
Histogram: The most commonly used graph for showing frequency distributions, or how often each
different value in a set of data occurs.
Pareto chart: Shows on a bar graph which factors are more significant.
Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a
relationship.
Stratification: A technique that separates data gathered from a variety of sources so that patterns can
be seen (some lists replace “stratification” with “flowchart” or “run chart”).
After discussing we came to conclude that the following may have been the causes
Lack of training for the operator
Improper program used in the robot, caused to use improper welding methods.
Improper installation of the robot.
Improper inspection done by the inspector
Quality of the welding
We can solve it by
Giving proper training for the operator.
Quality check of the product could have been done using quality tools.
Check for proper installation and proper periodic maintenance.
CASE: 7
INFORMATION LOGISTICS - THE RIGHT INFORMATION, AT THE
RIGHT PLACE AT THE RIGHT TIME, IN THE RIGHT AMOUNT.
Case background: A large international company that manufactures washing machines had problems with
several orders when the customer makes changes in an existing aggregated order. The company offers its
customers to manufacture products according to customer requirements i.e. customized, turnkey products. In
this case a large American-customer wishes to have different shaped holes in the cylinder barrel, instead of
round. This notifies the client, however, long after the orders are placed. The management decides to meet
the changing demands. It is one of the largest customers they have. However, the company does not succeed
fully to deliver the 50 machines on time, even if they had "plenty" of time. The following were noted: there
is a computerized system for receiving orders that reaches all involved departments. However, there are
many employees, many people may be involved in one order, many people use e-mail and telephone as a
communication tool, and they also produce standardized machines alongside other customized orders.
After the discussion we found the problem was with
Human error from product manager
Improper documentation.
Lack of information passed between management and workmen
Poor communication gap between end customer and company
Absence of scheduled production
Unable to solve issues on time
Quality of interaction between end customer and service advisor
Thus in the above case if the service department would have managed to convey the right information, at the
right time to the right people department the company would have managed to deliver the final product to
the customer as per the customer‟s requirement.