total quality management 2015-16(odd) sem 7/ge2022... · total quality management 2015-16(odd) by...

GE2022 VII/IV TOTAL QUALITY MANAGEMENT

1

A Course Material on

Total Quality Management

2015-16(ODD)

By

Mrs. M.Latha

Assistant Professor

DEPARTMENT OF ELECTRICAL AND ELECTRONICS ENGINEERING

SASURIE COLLEGE OF ENGINEERING

VIJAYAMANGALAM – 638 056


2

QUALITY CERTIFICATE

This is to certify that the e-course material

Subject Code : GE-2022

Subject : TOTAL QUALITY MANAGEMENT Class : IV Year EEE

Being prepared by me and it meets the knowledge requirement of the university curriculum.

Signature of the Author Name: Mrs.M.Latha

Designation:

This is to certify that the course material being prepared by Mrs.M.Latha is of adequate quality.

She has referred more than five books among them minimum one is from aboard author.

Signature of HD

Name: Mr.S.Sriram

SEAL


3

GE2022 TOTAL QUALITY MANAGEMENT

UNIT I INTRODUCTION

Introduction - Need for quality - Evolution of quality - Definition of quality - Dimensions of manufacturing and service quality - Basic concepts of TQM - Definition of TQM – TQM Framework -Contributions of Deming, Juran and Crosby – Barriers to TQM. UNIT II TQM PRINCIPLES

Leadership – Strategic quality planning, Quality statements - Customer focus – Customer orientation, Customer satisfaction, Customer complaints, Customer retention - Employee involvement – Motivation, Empowerment, Team and Teamwork, Recognition and Reward, Performance appraisal - Continuous process improvement – PDSA cycle, 5s, Kaizen - Supplierpartnership – Partnering, Supplier selection, Supplier Rating. UNIT III TQM TOOLS & TECHNIQUES I

The seven traditional tools of quality – New management tools – Six-sigma: Concepts, methodology,

applications to manufacturing, service sector including IT – Bench marking – Reason to bench mark,

Bench marking process – FMEA – Stages, Types.

UNIT IV TQM TOOLS & TECHNIQUES II

Quality circles – Quality Function Deployment (QFD) – Taguchi quality loss function – TPM –

Concepts, improvement needs – Cost of Quality – Performance measures.

UNIT V QUALITY SYSTEMS

Need for ISO 9000- ISO 9000-2000 Quality System – Elements, Documentation, Quality auditing-QS

9000 – ISO 14000 – Concepts, Requirements and Benefits – Case studies of TQM implementation in

manufacturing and service sectors including IT.

TOTAL : 45 PERIODS

TEXT BOOK

1. Dale H.Besterfiled, et at., “Total Quality Management”, Pearson Education Asia, Third Edition, Indian Reprint (2006). REFERENCES 1. James R. Evans and William M. Lindsay, “The Management and Control of Quality”, (6th Edition),South-Western (Thomson Learning), 2005. 2. Oakland, J.S. “TQM – Text with Cases”, Butterworth – Heinemann Ltd., Oxford, Third Edition (2003). 3. Suganthi,L and Anand Samuel, “Total Quality Management”, Prentice Hall (India) Pvt. Ltd. (2006)

4. Janakiraman,B and Gopal, R.K, “Total Quality Management – Text and Cases”, Prentic(India) Pvt. Ltd. (2006)


4

S.No. CONTENT P.NO

UNIT-I INTRODUCTION

1 Introduction 4

2 Need for quality 4

3 Evolution of quality 7

4 Definition of quality 7

5 Dimensions of manufacturing and service quality 7

6 Basic concepts of TQM 8

7 Definition of TQM 10

8 TQM Framework 11

9 Contributions of Deming 11

10 Barriers to TQM 14

11 Juran and Crosby contributions to TQM 16

UNIT II TQM PRINCIPLES

12 Leadership 17

13 Strategic quality planning

20

14 Quality statements

19

15 Customer focus – Customer orientation, 22

16 Customer satisfaction, Customer complaints,

23

17 Customer retention - 23

18 Employee involvement

28

19 Motivation

28

20 Empowerment 31

21 Team and Teamwork 32

22 Performance appraisal 34

23 Continuous process improvement

36


5

24 PDSA cycle, 5s, Kaizen

38

25 Supplier partnership,Partnering

42

26 Supplier selection, Supplier Rating

44

27 Recognition and Reward 46

UNIT-III TQM TOOLS AND TECHNIQUES I

28 The seven traditional tools of quality 47

29 New management tools 60

30 Six-sigma: Concepts 60

31 methodology 61

32 Applications to manufacturing

63

33 Applications to service sector including IT 64

34 Bench marking 65

35 Reason to bench mark 66

36 Bench marking process 70

37 FMEA – Stages 74

38 FMEA – Types 75

UNIT-IV TQM TOOLS AND TECHNIQUES II

39 Quality circles 78

40 Quality Function Deployment (QFD) 78

41 Taguchi quality loss function 86

42 TPM –Concepts

90

43 TPM –Development

91

44 improvement needs

92

45 Cost of Quality

92

46 Performance measures

95

UNIT-V QUALITY SYSTEMS

47 Need for ISO 9000 95


6

48 ISO 9000-2000 Quality System 95

49 Elements, Documentation 97

50 Quality auditing-QS 9000,ISO 14000 99

51 Concepts, Requirements and Benefits 101

52 Concepts, Requirements and Benefits 102

Glossary 105

Review Questions 107

UNIT – I INTRODUCTION

TOTAL = Made up of the whole

QUALITY = Degree of excellence a product or service provides

MANAGEMENT = Act, art or science /manner of handling, controlling,

directing etc

Meaning

TQM is a structured system for satisfying internal and external customers and

suppliers by integrating the business environment, continuous improvement and

breakthrough with development, improvement and maintenance cycles while

changing organizational culture.

What Is Quality

Quality basically defines what is required, and how it can be

achieved. It also implies complying with the necessities, and suitability of being used. The

realm of quality has been changing rapidly from just manufacture, to numerous other

disciplines like finance, information technology, and human resources. The benefits of


7

implementing a quality management system are numerous, including creation of quality

products, and quality systems. Quality management system software is extremely useful for

implementing a quality management system, and excellent quality control, resulting into total

quality management. Software testing procedures are used extensively, to ensure that only the

quality products are produced, while those not meeting the quality standards are rejected.

What Is A Quality Management System

A quality management system can be defined as the implementation of dedicated activities in

a project to obtain continuous improvement, and enhance the organization efficiency. The

foremost effort of this system is to correctly and precisely define the procedure that will

cause creation of quality products and quality services. The aim is to prevent the errors while

within the project, and not after a product has been delivered to the user. There are many

benefits to a quality management system, due to which the organizations are devoting more

efforts to improve quality management.

Benefits of Quality Management Systems

The trend of implementing a quality management procedure is gaining popularity in all

organizations, since there are tremendous benefits in using a quality management system.

Some of the benefits are explained below:

Achievement Of Project Scope

This system facilitates a business, to attain the objectives that have been defined in the

organization strategy. It ensures the achievement of stability and reliability regarding the

techniques, equipment, and resources being used in a project. All project activities are

integrated and aligned towards the achievement of quality products. These efforts commence

by identifying the customer needs and expectations, and culminate in their contentment.

Customer Satisfaction

A fully recognized and implemented quality management system, will ensure that the

customer is satisfied by meeting their requirements, and will thus enhance the confidence of

the customer. Attaining customer satisfaction is a great achievement for the organization, that

will assist in capturing the market, or increase the market share.

Consistent Products

Implementing a quality management system can assist to attain more consistency in the

project activities, and enhance the effectiveness by improvement in the resources and time

usage.

Implementation Of Best Practices & Process Improvement

http://www.brighthubpm.com/project-planning/10057-defining-the-project-scope-tips-amp-free-template/


8

The discipline of quality includes the efforts directed towards the improvement of processes,

being used to maintain consistency, reduce expenditures, and ensure production within the

schedule baseline. The systems, products, and processes are continually improved by the

implementation of best practices, like modern manufacture techniques, use of primavera

project management software including Primavera P6, and the use of proper quality control

techniques.

Increase In Production

Improved production is achieved due to proper evaluation techniques being applied, and

better training of the employees. A strict process control is directed towards performance

consistency, and less scrap. Supervisors experience less late night problematic phone calls,

since the employees are trained on troubleshooting.

Less Rework

Quality is measured continuously due to the appropriate procedures that ensure immediate

corrective actions on occurrence of defects. Since efforts are directed towards quality

products, rework due to warranty claims is minimized. This reduction increases customer

confidence, and increase in business.

Increased Financial Performance

Investment in quality management systems are rewarded by improved financial performance.

UCLA conducted a research on the companies being traded on the New York Stock

Exchange, and observed that the financial performance of the companies that obtained ISO

9000 Quality Standard certification was improved significantly, compared to the other

companies.

Increase In Market Share

Other quality management system benefits include proper management of project risks and

costs, and identification of development prospects. This results in an increase in market share

and reputation, and capability to react to industry opportunities.

Improvement In Internal Communications

The quality management system emphasizes the issues related to operations management.

This encourages frequent interaction between project departments or groups, and promotes

harmony. All these factors contribute to improved quality, and customer satisfaction.

Implementation Of Quality Management System

An efficient quality management system should initially accurately determine the

expectations and needs of the customers, and subsequently transform this into quality

products. For the successful implementation of a TQM system, it is essential that the

http://www.brighthubpm.com/monitoring-projects/7582-use-primavera-to-improve-your-project-portfolio-management-process/



http://www.brighthubpm.com/certification/72854-a-roundup-of-quality-control-tools-and-techniques/



http://www.brighthub.com/money/investing/articles/51313.aspx




9

executive management should provide full support and leadership, provision of a suitable

quality policy, and establishment of measurable goals. The project management team should

be involved in the quality system, and suitable training be arranged to enhance the skills. A

useful system should be a tactical tool that is intended to facilitate the achievement of project

goals. Evaluation of the usefulness, efficiency, and ability of a quality management system is

crucial. Review and examination should be performed regularly to audit the quality

requirements, achievement of the project objectives, and ensuring customer satisfaction. This

review will ensure that the quality management system benefits are being fully obtained, and

amendments in the system are implemented wherever necessary.

Evolution of Quality Control

DEFINING QUALITY:

Quality can be quantified as follows

Q = P / E

where,

Q = Quality

P = Performance

E = Expectation

http://www.brighthub.com/guides/project-management-team.aspx


10

THE DIMENSION OF QUALITY

Dimension Meaning and Example

Performance Primary product characteristics

such as the brightness of the picture

Features Secondary characteristics, added

features, such as camera cell phone

Conformance Meeting specifications or industry

Standards, workmanship

Reliability Consistency of performance over

time, average time for the unit to fail

Durability Useful life, includes repair

Service Resolution of problems and

complaints, ease of repair

Response Human - to – Human interface,

such as the courtesy of the dealer.

Aesthetics Sensory characteristics, such as

Exterior finish

Reputation Past performance and other intangibles, such as being ranked first

IMPORTANT POINTS TO BE NOTED WHILE QUALITY PLANNING :

1. Business, having larger market share and better quality, earn returns much higher

than their competitors.

2. Quality and Market share each has a strong separate relationship to profitably.

3. Planning for product quality must be based on meeting customer needs, not just meeting

product specifications.

4. For same products. We need to plan for perfection. For other products, we need to plan

for value.

BASIC CONCEPT OF TQM

1. A committed and involved management to provide ling term, top to

bottom organizational support.


11

It is useless to embark on a quality journey without the top management‘s

commitment to quality. Top management must participate in the quality

programme. They must also participate on quality improvement teams and also

act as coaches to other teams

2. An un – wavering focus on the customer both internally and externally.

The employees of the organization in the first place. Mangers must listen to the

suggestions and recommendations made by the employees to improve quality.

This aspect of listening to the voice of customers leads to the emphasis of design

quality and defect the prevention.

3. Effective involvement and utilization of entire workforce.

TQM is everyone‘s responsibility in an organization. All workers in and organization

must be oriented towards TQM and all personnel must be trained in TQM,

statistical process control and other appropriate quality improvement skills.

4. Continuous improvement of the business and production process.

Continuous improvement refers to constant refinement and improvement of

products, services and organizational systems to yield improved value to

consumers.

Areas such as on-time delivery, scrap reduction, supplier management, customer

satisfaction, etc. are good quality projects to begin continuous improvement.

5. Treating suppliers as partner

The traditional relationship between the buyer and the supplier has been

adversarial in nature. Each tried to extract the maximum out of each other. There

was lack of trust on each other.

To ensure good relationship with suppliers, frequent change of suppliers should be

avoided and suppliers should be few in number so that true partnering can occur.

6. Establishing performance measures for the process.

Performance measure is an integral part of the quality process. If an organization

cannot measure its progress, it is useless for it to go on a quality journey.

Performance measures such as percentage of non conformance, absenteeism,

customer satisfaction, etc., should be determined for each functional area.

Definition for TQM


12

Total Quality Management (TQM) is a comprehensive and structured approach to organizational

management that seeks to improve the quality of products and services through ongoing refinements

in response to continuous feedback.

HISTORICAL REVIEW

The concept of specification of labour was introduced during the industrial

revolution

As a result a worker no longer made the entire product, only a portion. This

change brought about a decline in workmanship

Because productivity increased there was a decrease in cost, which result in

lower customer expectations

As products become more complicated and jobs more specialized, it became

necessary to inspect product after manufacturing

In 1942 W.A. Shewhart of Bell Telephone Laboratories developed a statistical

chart for the control of product variables. This is beginning of SQC

In some decade H.F. Dodge and H.G. Romig both of Bell telephone

laboratories developed the area of acceptance sampling as a substitute for

100% inspection. It is recognized by 1942

In 1946 the American society for Quality Control was formed. Now it is

American Society for Quality

In 1950 W. Edwards Deming who learned SQC from shewhart, gave a series

of lectures on statistical methods to Japanese Engineers

Un 1954 Joseph M. Juran made his first trip to Japan and further he

emphasized management‘s responsibility to achieve quality

By this concept the Japanese set the quality standard for the rest of the world

In 1960 the first quality circles were formed for quality improvement by Japanese

workers

By 19770‘s and 80‘s U.S. managers were making frequent trips to Japan to

learn about the Japanese miracle

In 1980‘s the automotive industry began to emphasizes statistical process

control (SQC)

Emphasis on quality continued in the auto industry in the year 1990‘s.

when the Saturn automobile ranked first in customer satisfaction in 1996

ISO 9000 became the world wide model for quality system


13

TQM FRAMEWORK

PRINCIPLES OF TQM

1. Customer focus

2. Leadership

3. Involvement of people

4. Continuous improvement/ long-term

5. Systematic improvement/ approach

6. Problem prevention

7. Quality as everyone‘s job

8. Mutually beneficial

.


14

THE DEMING PHILOSOPHY

In 1950 he taught SPC concepts and the importance of quality to the leading CEO‘s

of Japanese industry. He developed the following fourteen points as a theory for

management for improvement of quality productivity and competitive position.

1.Create and publish the aims and purposes of the organization

Organization must develop a long term view at least 10 yrs

Plan to stay in business by setting long range goals

Resources must be allocated for research, training and continuing education to

achieve the goals

Innovation in promoted to ensure that the product or services does not become

absolute

Organizational philosophy is developed to send the message that everyone is part

of the organization

2.Learn the new philosophy

Organization must seek never-ending improvement and refuse to accept non-

conformance.

Customer satisfaction is the number one priority

The organization must concentrate on defect prevention rather that defect

detection.

Everyone should involved in the quality journey and change his or her attitude

about quality

Supplier must help to improve quality

Share the information relative to customer expectations

3.Understand the purpose of inspection

Mass inspection is costly and un reliable it is replace by statistical techniques

It is required for self and supplier

Mass inspection is managing for failure and defect prevention is managing for

success.

4.Stop awarding business based on price alone

Awarding business based on the low bid, because price has no meaning without

quality

To examine how customer expectations are affected and provide feedback to the

supplier regarding the quality

5.Improve constantly and forever the system


15

Management must have take more responsibility for problems by actively finding

and correcting problemsSo that quality and productivity are continually and

permanently improved and costs are reduced.

The focus is preventing problems before they happen.

Responsibility is assigned to teams to remove the causes of problems and

continually improve the process.

6.Institute training

Employee must be oriented Management must allocate resources to train employee

to perform their jobs Everyone should be trained in statistical methods and monitor

the need for further training.

7.Teach and institute leadership

Improving supervision is management‘s responsibility Training in statistical

methods Supervisors not focusing on negative fault findings,

He create positive supportive Communication must be clear from the top

management to supervisor and to operators

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

By providing workers with adequate training, good supervision and proper tools to

do the job as well as removing physical dangerous.

When people are treated with dignity fear can be eliminated and people will work

for the general good of the organization.

This climate will provide ideas for innovations and improvement.

9.Optimize the efforts of teams, groups, and staff areas.

Barriers internally like levels of management among department within department

etc. Barriers externally like with customers and suppliers The barriers exist

because of poor communication, ignorance of the organization mission, completion,

fear and personal grudges. To overcome these attitudes need to be changed

communication channel opened, project teams organized, training for teamwork.

10.Eliminate exhortations for the work force

Exhortations that ask for increased productivity without providing specific

improvements methods They do not produce a better product or service, because

the workers limited by the system Improvements in the process cannot be made

unless the tools and methods are available.

11.a) Eliminate numerical quotas for the work force


16

Instead of quotas, management must learn and institute methods for

improvements. Quotas and work standards focus on quality rather that quality.

Quotas should be replaced with statistical method of process control.

b.) Eliminate management by objectives

Management must learn the capabilities of the processes and how to improve them

Management by numerical is an attempt to manage without knowledge of what to

do

12. Remove barriers that rob people of pride of workmanship

Loss of pride in workmanship exists throughout organization because

Workers do not know how to relate the organization mission

They are being blamed for system problems

Poor designs lead to the production of ―Junk‖

In adequate training is provided

In adequate or in-efficient equipment is provided for

Performing the required work.

13. Encourage Education and self-improvement for everyone

What an organization need is people who are improving with education

A long term commitment to continuously train and educate people must be made

by management

Everyone should be retained as the organization requirements change to meet the

changing environment

14. Take action to accomplish the transformation

Management has to accept the primary responsibility for the never ending

improvement of the process.

Management must be committed, involved and accessible if the organization is to

succeed in implementing the new philosophy.

BARRIERS / OBSTACLES IN IMPLEMENTATION OF TQM

Lack of management commitment

The management commitment should be clearly communicated both verbally and

in action to the organization.


17

If the workers feel that the management is doing only the talking about no action is

initiated on TQM then they too will lack necessary commitment and motivation to

implement TQM principles.

Inability to change organizational culture

The past culture should be unlearned and the new culture should be learnt. This

gives rise to enormous resistance to change from the employees.

It is very difficult for an organization to make a culture change.

Improper planning

When planning for TQM all the constitutes should be involved in the development

of the implementation plan and any modification that occur as the plan evolves.

Rapid planning will ensure that the TQM fails.

Planning should be done on the customer front, employee‘s front and the supplier

front.

Lack of continuous training and education

Training and education is an ongoing process for everyone in the organization. The

training needs of the employees must be determined and a plan should be

developed to satisfy those needs.

Training and education are most effective when senior management conducts the

training programme based on the principles of TQM

Incompatible organizational structures and isolated individuals and

department

Lack of co ordination and difference of opinion among departments and individuals

in an organization will create implementation problems.

The use of multifunctional teams can help to break this barrier.

Restructuring of the organization may be needed to make the organization more

responsive to the needs of the customers.

Ineffective measurement techniques and lack of access to data and results

In order to improve the process, one has to measure the present position.

Mechanisms to measure the present position should be available in the

organization.


18

Once the measurement is done the data should be made available to the necessary

mangers to make decisions.

Any clogging of data to the managers will become a barrier to TQM implementation.

Playing inadequate attention to internal and external customers

Organizations have to understand the changing needs and expectations of the

customers both internal and external.

Effective feedback mechanisms that provide data for decision making are necessary

for this understanding.

One way to overcome this is to give the right people in the organization, a direct

access to the customers.

Inadequate use of empowerment and teamwork

Individuals should be empowered to make decisions and take responsibility to

make decisions that affect the efficiency of the process of production.

Teams should be formed and need to have proper training. The team‘s

recommendations should be adopted whenever possible.

CONTRIBUTIONS OF JURAN‟S :

1. Identify customers

2. Determine customer needs

3. Translate

4. Establishment units of measurement

5. Establish measurements

6. Develop product

7. Optimize product design

8. Develop process

9. Optimize process capability

10. Transfer

CONTRIBUTIONS OF CROSBY‟S :


19

1. Management commitment

2. Quality improvement team

3. Quality measurement

4. Cost of quality evaluation

5. Quality awareness

6. Corrective action

7. Zero defect program

8. Supervisor training

9. Zero defects day

10. Goal setting

11. Error cause removal

12. Recognition

13. Quality councils

14. Do it over again

************************

UNIT II TQM PRINCIPLES

LEADERSHIP DEFINED

Leadership is interpersonal influence exercised in a situation and directed

through communication process, towards the attainment of a specialized goal or

goals. Thus leadership is a process of influencing the activities of an individual or a

group for goal achievement in a given situation.


20

LEADERSHIP CONCEPT

Leadership requires in order to become successful as a leader , he needs an

intimate and insightful understanding of human nature – the basic needs, wants

and abilities people, a leader needs to know and understand the following;

1. People need both security and independence at the same time.

2. People are sensitive and do respond to external rewards or

punishments. They are also strongly self-motivated.

3. Peoples sometime value a kind word of praise more than any monetary

reward.

4. They trust their gut reaction more than statistical data.

5. A leader should simplify the task

ROLE OF SENIOR MANGEMENT

Senior management must practice the philosophy of Management By

Wandering Around (MBWA). They should get out of the office and visit

customers, departments, and plants within the organization and suppliers

Encourage subordinates to write only important messages that need to be

part of the permanent record.

Senior management role is no longer to make the final decision, but to make

sure the teams decision is aligned with the quality statement of the

organization

Problem solving and decision making to the lowest appropriate level by

delegating authority and responsibility.

Senior managers must stay informed on the topic of quality improvement by

reading books and articles attending seminars and talking to other TQM

leaders.

The needed resources must be provided to train employees in the TQM tools

and techniques, the technical requirements of the job and safety.

Must be visibly and actively engaged in the quality effort by serving on

teams, coaching teams and teaching seminars.

They should lead by demonstrating, communicating, and re-in forcing the

quality statements.

They should spend about one third of their time on quality


21

Senior managers are listening to internal and external customers and

supplies through visits, focus groups and surveys.

To create awareness of the importance of TQM and provide TQM results in

an ongoing manner.

Senior managers should be able to drive fear out of the organization, break

down barriers, remove system roadblocks, anticipating and minimize

resistance to change and in general change the culture.

QUALITY CIRCLE

Meaning

Quality council is composed of the chief executive officer, the senior

managers of the functional areas, such as design, marketing, finance, production

and quality and a coordinator or consultant. Individual selected for the coordinated

position should be bright young person with execution potential.

Objectives of quality council:

To raise the quality consciousness in the organization through seminars,

study tours and using forms of promotion.

To ensure effective functioning of the organization on the quality statement

and plan.

To encourage basic and applied research and development in the field of

quality and dissemination of its results to the organization.

To raise the level of training of personnel engaged in quality activities

including the assessors and trainees.

To facilitate upgradation of testing and calibration facilities and laboratories

as well as to encourage the overall quality of the organization.

DUTIES OF QUALITY COUNCIL

Develop with input from all personnel; the core values Vision statement,

Mission statement, and Quality policy statement.

Develop the strategic long term with goals and the annual quality

improvement program with objectives

Determine and continually monitor the cost of poor quality.

Create the total education and training plan.

Determine the programme measures for the organization.

Continually determine those projects that improve the process.


22

( internal and external customers)

Establish or revise the recognition and reward system to account for the new

way of doing business.

QUALITY STATEMENT

In addition to the core values and concepts, the quality statement includes the

Vision statement, Mission statement and Quality policy statement. Once developed

they are occasionally revised and updated. They are part of the strategic planning

process, which included goals and objectives.

VISION STATEMENT

The vision statement is a clear declaration of what an organization

aspires to be in the future (in long term). Its purpose is to provide a platform

for the managers for thinking strategically. A vision statement is usually an

ideal condition, that might never be reached but that will inspire the people

to achieve.

Example: “THE HAPPIEST PLACE ON EARTH” - Disney Theme park.

MISSION STATEMENT

The mission statement answers the following questions. Who we are, who

are the customers, what we do and how we do it. This statement is usually one

paragraph or less. It is easy to understand and describe the functions of the

organization. It provides a clear statement of purpose for employees, customers and

supplies.

EXAMPLE: BEN & JERRY‟S ICE CREAM – MISSION STATEMENT

PRODUCT MISSION: TO make, distribute and sell the finest quality

natural ice cream and related products in a wide variety of innovative

flavors made from Vermont dairy products.

QUALITY POLICY STATEMENT

QPS serve as a guide for everyone in the organization. This statement

clarifies the employees about how the products and services must be

provided to the customers. The CEO of the company writes quality policy


23

statement after a careful study and analysis of the feedback from the

workforce. Finally the quality council must approve the statement.

EXAMPLE:

Meet the requirements of the customers (both internal and external)

Go ahead competition

Complete utilization of the entire workforce.

STRATEGIC PLANNING

Organizations are finding that strategic quality plans and business plans are

inseparable. The strategic planning is three to ten years and short term planning is

one year or less. It consists of goals and planning.

SEVEN STEPS TO STRATEGIC PLANNING.

1. Identification of customer needs.

2. Determination of customer positioning

3. Predict the future.

4. Gap analysis.

5. Closing the gap.

6. Aligning the plan to the mission and vision.

7. Implementation of the plan.

1. Identification of customer needs.

This steps provides a focus on customer satisfaction.

There needs and wants have to be identified and satisfied.

The profile of the customers are identified. Questions like who are our

customers? Will they change in future? What will they want in

future?.

2. Determination of customer positioning

The planners determine where the organization wants to be in

relation to the customers.

Expand the customer base products or services.

Products with poor quality performance should be removed or eliminated

and replaced by better ones.


24

The organization needs to concentrate its efforts on areas of excellence

3. Predict the future

Predict the future conditions that will affect their product or service

Using effective tools for analyzing and predicting future

Some products or services have become absolute because it failed to

foresee the changing technologies.

The mangers in the organization anticipate a change in the first place, and

then they can make necessary arrangements by making investments on

resources and be prepared to take on the future.

The rate of change is continuously increasing.

4. Gap Analysis

The planners to identify the gaps between the current state and future state.

The present position of the organization in the market in relation to

competition, profits, customer satisfaction employee satisfaction, etc. to the

intended position.

If any there is gap identified future strategies must be formulated taking this

gap in to consideration.

5. Closing the Gap

After gap analysis plans must be formulated to reduce or close the

strategic gap.

To close the gap by establishing goals and responsibilities.

All stakeholders should be included in the development of the plan.

6. Alignment

It must be aligned with the mission, vision, and core values and concepts of

the organization.

7. Implementation

a. Resources must be allocated to collecting data, designing changes and

overcoming resistance to change.

b. To monitoring activities to ensure that progress is being made.

Monitoring by the steering committee and periodical assessments are required for

an effective and speedy implementation

CUSTOMER SATISFACTION

CUSTOMER SATISFACTION MODEL:


25

CUSTOMER:

A customer can be defined as one who purchases a product or service.

There are two distinct type of customer.

Customer satisfaction is achieved when their expectations are matched by

what is offered to them by the organization. It is important for the organization to

listen to the voice of the customers to ensure that is marketing, production, R&D ,

distribution and service truly meet the expectations of the customers.

There are two distinct types of customers; they are external and internal

customers.

A)External Customers:

External customers can be defined as the one who purchases the product of

the organization for end usage or for reselling or to use the product in his

production process as raw material.

B) Internal customers:

Internal customers are the employees of the organization. As far as the top

management in concerned they have an obligation to keep internal customers

satisfied.

CUSTOMER PERCEPTION OF OUALITY:

An American society for quality (ASO) survey on end user perception of

important factors that influenced purchases showed the following ranking.

1. Performance

2. Features


26

3. Service

4. Warranty

5. Price

6. Reputation

1. PERFORMANCE

Performance of the product is the ―fitness‖ the product or service by the

customer at the time of sale.

It indicates that the product can be used as such without any further

modification.

Availability, which is the probability that a product will operate when

needed.

Reliability is the consistent performance of the product every time is used

Maintainability which is the ease of keeping the product operational is also

important.

2. FEATURE

Features are the secondary characteristics or added facilities available with the

core product.

FOR EXAMPLE:

Primary function of an automobile is transportation where as stereo

system is a feature.

3. SERVICE:

Service is emerging as a method for organizations to give the customer

added value.

The product may work fine but if the service which is attached to the

product is not managed properly then it will lead to customer dissatisfaction.

FOR EXAMPLE:

Purchase of Air conditioner, the seller has to come to your home to install

and run the A/C machine. After that he must come and service the A/C with

regular internal and incase of any problem immediately come and repair the

problem.

4. WARRANTY:


27

The warranty encourages customer to buy a product a service by reducing

the risk of the purchase division.

5. PRICE:

Customer is willing to pay a higher price to obtain value. he evaluating

product and services against those of its competitors who provides the greatest

value.

6. REPUTATION:

Find organizations by our overall experience with them.

Customer satisfaction is based on the entire experience with the organization

not just the product.

FEEDBACK:

Customer feedback must be continually solicited and monitored. Customer

continually changes. They change their minds, their expectations and their

supplies. Customer feedback is not a one-time effort it is a ongoing and active

probing of the customer‘s mind.

IT ENABLES THE ORGANIZATION:

Discover customer dissatisfaction.

Discover relative priorities of quality.

Compare performance with the competition.

Identify customer‘s needs.

Determine opportunities for improvement.

TOOLS USED:

1. COMMENT CARD –attach with warranty card.

Comment cards are simple cards usually in the form of prepaid postage card

which can be attached with the product manual or the warranty card. or just

included with the product the time of purchase.

2. Survey.

It is more effective and also popular tool for obtaining opinions and perceptions

about an organization and its products and services.


28

Customers are asked to furnish the answers related to the quality of the product

and service.

3. Focus group.

The focus group is like an in depth interview, except that it involves a group rather

than an individual. It is a group interview that tries to stimulate people to talk

freely about the products.in a typical focus group, a few customers are invited to

attend a group discussion at a central interviewing location.

4. Toll-free telephone numbers.

Toll free phone numbers (1600 – inIndia, /800/888 in US) are an effective

technique for receiving customer feedback. Organizations can respond faster and

more cheaply to a complaint on receiving a complaint call.

5. Customer visits.

Company personnel visiting customers at their place will provide valuable

information and feedback on the product.

6. The Internet

Web home pages and e-mails have become very popular these days that they are

fast replacing the conventional methods of feedback mechanism.Customers also

find it very easy and cheaper to provide feedback to the supplier.

Using customer complaints:

Every single complaint should be accepted, analyzed and acted upon for

its represents.

Information on customer dissatisfaction is received into

the organization at the highest level, there by providing a fast response.

Complaints can be seen as opportunity to obtain information and

provide a positive service to the customers.

Activities of the customer complaints:

Investigate customer‘s experiences by actively soliciting feedback both

positive and negative and then acting it promptly.

Develop procedures for complaint resolution.

Analyze complaints but under stand that complaints do not always fit in to

neat categories.


29

Survey response is received a senior manager should contact the customer

and strive to resolve them.

Establish customer satisfaction measures and constantly monitor them.

Provide a monthly complaint report to the quality council for their evaluation

and improvements.

SERVICE QUALITY

CUSTOMER SERVICE is the set of activities an organization used to win and retain

customer‘s satisfaction. It can be provided before during or after the sale of the

product or exits on it‘s own.

ELEMENTS OF CUSTOMER SERVICE:

ORGANIZATION:

Identify each market segment.

Write down the requirements.

Communicate the requirements.

CUSTOMER CARE:

Meet the customer expectations.

Get the customer point of view.

Deliver what is promised.

Make the customer feel valued.

Respond to all the complaints.

Over respond to the customer.

Provide a clean and comfortable customer reception area.

COMMUNICATION:

Optimize the trade-off between time and personal attention.

Minimize the number of contact points.

Provide pleasant knowledgeable and enthusiastic employees.

Write documents in customer friendly language.

FRONT-LINE PEOPLE:

Serve them as internal customer.

Hire people who like people.

Give them the authority to solve the problem.

Challenge them to develop better methods.

Be sure they are adequately trained.


30

Recognize and award performance.

LEADERSHIP:

Lead by example.

Listen to the front-line people.

Strive for continuous process involvement.

CUSTOMER RETENTION

Wheather retail or industrial customer, are constantly watching out for better

cheaper products and when a competitor is able to offer the product better, that the

customers usually switch.

Any organization should develop a very personal relationship with individual

customers, so that they do not switch over to the competitors.

CUSTOMER RETENTION represents the activities the produce the necessary

customer satisfaction that creates customers loyalty, which actually improves the

bottom line.

EMPLOYEE INVOLVEMENT

TQM requires everybody‘s involvement in the process and everyone should

feel that the company belongs to them. Employee involvement results in improved

quality and productivity.

MOTIVATION:

MEANING/DEFINITION:

1. Motivation is a process that starts with a physiological or psychological

deficiency or need that activates behavior or a derive that is aimed at a goal

or an incentive.

2. Motivation is the result of processes internal and external to the individual

that arouse enthusiasm and persistence to pursue a certain course of actor.

THEORIES OF MOTIVATION:


31

MASLOW THEORY

According to this theory every individual is depicted as a wanting organism

with a desire to rise from one level to another level in the society. Maslow suggests

five levels for every individual with differing needs at every level.

1. Basic or physiological needs

The first need of a person is physiological in nature. physiological

needs are the necessities for survival. Once this need is satisfied, they

no longer act as motivators for the employee. These factors when

available are taken for granted and employees look for the next level

as motivators.

2. Security or safety needs.

Employees now strive to achieve the next level which is safety needs.

These needs include safe place of work and job security, which are

very important for employees.

3. Social needs.

Since a man is social being, he has a need to belong and to be

accepted by the various groups. When social needs are dominant, a


32

person will strive for meaningful relationship with others. He gets a

fear of being rejected.

Conversely when an individual has an opportunity to be a part of a

group by feeling important and needed will motivate that person.

4. Esteem needs.

Self esteem needs are concerned with self respect, recognition, self

worth and feeling of being unique.

5. Self-

actualization.

Individuals in an organization must be given the opportunity to go as

far as their abilities will take them. Many organizations have a policy

of promoting employees from within. This motivates employees to

contribute their maximum to the organization.

HERZBERG‟S TWO-FACTOR THEORY:

He identified that people were motivated by recognition, responsibility,

achievement and job advancement. He labels these factors as motivation.

He also identified that bad feelings were associated with low salary, minimal

fringe benefits. Power working environment and ineffective supervision.

These factors were labeled as dissatisfaction or hygiene factor

It should note that the presence of extrinsic (hygiene factors) results in

dissatisfaction, but the absence of motivating factor does not make employee

dissatisfied.

MOTIVATION

DISSATIFACTION

(HYGINE FACTOR)


33

EMPLOYEE EMPOWERMENT

MEANING:

Employee empowerment is making a person completely responsible for a particular

task; the individual who is empowered becomes the process owner.

In the empowerment the individual in given complete authority required to

execute the process and ownership is created.

Condition:

Every one should understand the need for change in culture and

attitude.

The system must change to the new paradigm.

People should be provided with necessary resources.

Recognition Poor salary

Responsibility Ineffective leadership

Achievement Poor working environment

Job advancement Poor policies


34

Empowerment is an environment in which people have the ability the

confidence and the commitment to take the responsibility and ownership

to improve the process and initiate the necessary steps to satisfy

customer requirements within well-defined boundaries in order to

achieve organizational values and goals

TEAMS

T-together E-everyone A-achieve M-more

A team is defined as a group of people working together to achieve common

objectives or goals.

Teamwork is the cumulative actions of the team during which each member

of the team subordinates his individual interests and opinions to fulfill the

objectives or goals of the group.

TYPES OF TEAM

1. Process improvement team.

Here, five to six members from various disciplines of the organization

are brought together to solve a problem. Usually the scope of the team

is limited to the work unit.

The life cycle of the team is usually temporary. The team is disbanded

after the problem (process improved) is solved.

2. Cross-functional team.

Here the team is constituted by the number of different functional

areas such as production, engineering, marketing, finance, e etc. it

may also include customers and suppliers.

3. Natural team.

This type of team is not voluntary in nature as it was with other

teams. Here all members of the work unit are in the team and the

manger is also part of the team.

4. Self-management work groups.


35

They are an extension of natural work team without the supervisor.

These teams are the essence of the empowered organization. These

teams not only do the work but also manage it.

STAGES OF TEAM DEVELOPMENT:

1. Forming.

Forming is the fist and beginning stage of the life cycle of

a team.

A facilitator is appointed by the quality council and he

meets with the senior management to charter the path

the solution of the problem should take.

Once team is assembled, a meeting is called and the

facilitator briefs the problem to the team, and then

determine the type of training the team members may

need and identify an appropriate team leader.

2. Storming.

In this stage all members of the team are fully aware of

the quality problem they are faced with.

They will be interested in proving themselves by

exhibiting their individual skills.

3. Norming.

In this stage members have understood each other well.

Everyone knows each others strengths and weakness

and capabilities and limitations.

The roles of the members are clearly defined, mission

and objectives are clear and the course to be taken to

solve the problem is also clear.

4. Performing.

In this stage, the team members have understood the

project better and begin performing by diagnosing and

solving problems and choosing and implementing

changes.

BARRIES OF TEAM PERFORMING:

1. Poor training for the group members.


36

2. Improper reward schemes.

3. Lack of planning.

4. Lack of management commitment in monitoring the team program.

5. Poor communication.

6. Too many members in team.

Role of team leader:

1. Ensure the smooth and effective operation of the team.

2. Handling and assigning the responsibilities.

3. Good record keeping.

4. Preparing and presenting the report.

5. Prevents other members from dominating.

6. Use positive interpersonal dominating.

7. Serve as a contact point between the team and qty council.

8. Monitors the status and accomplishments of member assuming

firmly completion of assignments.

9. Prepares the meeting agenda i.e. time, date, location.

Role of team member:

1. Contributes best.

2. Sharing knowledge.

3. Listen carefully and ask question.

4. Negotiate important points.

5. Supports the decisions of the team.

6. Trust support concern for other team members.

7. Understands and is committed to team objectives.

8. Respects and is tolerant of individual differences.

9. Acknowledges and worker through conflict openly.

10.Carries out assignments between meetings such as connecting

data observing charting data and returning report.

11.Gives honest sincere appreciation.


37

Recognition and reward:

Recognition and reward are basic motivational tools used to motivate

employees to encourage them to maintain and improve their present level.

Publicly acknowledging the contributions of an individual is called

recognition.

This acknowledgement may be in the form of a certificate or a verbal

praise.

On the other hand the rewards are tangible such as cash reward, gold

coins etc

Reward can be delayed but the recognition of the contributions must

be done immediately.

Purposes:

1. Reward system reminds the continual improvement required for the TQM

journey.

2. Serves as a platform for encouraging the super performances.

3. Serve as a goal for the employee.

4. Serve as a morale booster.

Performance appraisal

Performance appraisal is the judgement of employee‘s performance in the

organization.

Performance appraisal is defined to show the employees how they are doing.

This serves as a basis for promotion, salary increases etc those who are rated

poorly should be allowed to undergo special counseling and skill up-grading

programmer.

It should help people to assess themselves and improve.

Appraisal format:

1. Ranking- compares employees by ranking from highest to lowest.

2. Narrative- gives a written description of employee‘s strength and weakness.

3. Graphic-indicate the major duties performed by the employees and rate each

duty with a sale, which is usually from 1(poor) to 5(excellent).


38

4. Forced choice-places each employee‘s in a category with a predetermined

percentage for example excellent 10%, very poor 25%, grave 30%, fair 25%,

poor10%.

BENEFITS

1. PROMOTION

2. SALARY INCREASE

3. BONUS

4. INCENTIVES

5. INDENTIFYING TRAINING NEEDS

6. IMPRORING SKILLS OF THE EMPLOYEE‘S

7. TO IMPROVE EMPLOYEE PERFORMANCE

8. TO RATING THE CUSTOMERS.

CONTINUOUS PROCESS IMPROVEMENT

CPI is the care of TQM. CI in the business process as war as

production process is desired for the growth of the organization.

CPI is possible by

1. Making all process effective and adaptative.

2. Accepting the change in the customer requirements and tuning ourselves to

meet demand.

3. Improving the productivity by eliminating waste.

4. Permanently eliminating the ‗non-value adding activities‘.

5. Our self with the best player in the field.

6. Using advanced tool like DOE(design of experiments), SPC, quality function

development etc .

JURAN‟S TRILOGY

Juran‘s trilogy consists of three managing process quality planning, quality

control and quality improvement.

Quality planning:

The quality planning starts with identifying external customers of a business.

Identify who are the customers.

Determine the needs of those customers

Translate those needs into the business possibility

Develop a product that can respond to those needs


39

Optimize the product features so as to meet the organizations

needs and customer‘s needs.

Quality Improvement

Develop a process which is able to produce the

Product.

Optimize the process.

Quality control:

Prove that the process can be producing the producet under

operating conditions with minimal inspection.

Transfer the process to operations.

The quality control involves checking the products produced

with specification.

QUALITY IMPROVEMENT STRAREGIES

1. REPAIR:

There are two levels of repair.

a) In the first level the team or an individual working in the process

identifies the problem and eliminates the root cause of the problem. This

brings in permanent solution for the problem.

b) In the next level the faulty product reaches the customer. The customer

then indicates that he has received a bad product and the product is

either replaced or repaired. This is temporary solution to the problem.

c) It is important to note that the repair strategy will not make the process

better than the original design.

2. CONTINUOUS IMPROVEMENT/ REFINEMENT:

Refinement is doing things a little bit, faster, better, easier, or with

less waste.

It is the process products and services are required to keep the

quality improvement process alive. But management may fail to notice the

small improvement and influence fail to reward the improvement efforts.

This will result in dissatisfaction and loss of involvement.

3. INNOVATION:

The processes and products by innovative methods.


40

For example: automation of process.

4. PARADIGM SHIFT (RE-INVENTION):

When a company understand that the existing processes cannot

ensure the customer satisfaction it is better to reinvent the process.

PDSA CYCLE

STEWART developed the plan-do-check-act (PDCA) cycle and late Deming

modified it to plan-do-study-act (PDSA) cycle.

Plan: By management. Do: By the operator. Study: quality manager Act:

management

Plan

It is important to establish the stage of the change to be introduced.

Plan on how you are going to collect the information about the

differences that occur after the implementation of the plan.

What is to be done and how to achieve.

Do:

Put the plan into practice.


41

There may be changes that should only be measured over long

periods.

Record any unexpected event, problems and other observations. Star

analyzing the data.

Study

Review and reflect on the data collected in the previous step

Find out whether there has been any improvement in the process.

Did your expectations match the reality of what happened?

Find out what could have been done differently.

Act

Carry out an amended version of what happened during the ―Do"

stage and measure any differences

PROBLEM SOVING METHOD FOR PROCESS IMPROVEMENT.


42

5s-concept

1. Seiko (Proper arrangements)

This is the proper identification of materials, equipments and tools,

data and information which are necessary or not necessary,.

Provide the necessary space for the required or necessary items which

you require to perform the necessary task.

2. Seiton (orderliness)

Every equipment or data or anything should be placed in its

appropriate and unique place.

So that a simple eraser or pencil can be found at the same place every

time by everybody in the organization.

This reduces confusion and avoids wastages of time.

The place in which it is stored should be easily accessible and

appropriate.

3. Seiso (Cleanliness)

The shop floor should be free of wastage, oil spills, cotton wastes etc.,

The tools also should be clean, the machines should be clean and the

entire organization should be free from dirt and any unexpected

objects lying around.

Keep the work place clean and make data and information easily

available and constantly updated in order to support decision making.

4. Seiketsu (personal cleanliness).

A person should be clean and his cloths should be clean. Only a clean

person can be conscious about keeping his workplace clean and neat.

Moreover unclean person present a work situation were co-workers

become uncomfortable to work in.

Personal cleanliness automatically creates a favourable condition at

work place for physical and mental health, free from dirt, pollutants

etc.

5. Shitsuke (Discipline).

This may not only be the jobs related to the organization but also

personal work.

Job discipline is the habit and skill development to perform the job

according to standards, to observe company rules and policies at all

times.


43

This habit of discipline is developed as a result of excursing mental,

moral and physical strength.

KAIZEN

The philosophy that defines management role in continuously

encouraging and implementing small improvements involving everyone.

It is the process of continuous improvement in small increments that

make the process more efficient, effective, under control and adaptable.

Improvements are usually that make the accomplished at little or no

expenses without sophisticated techniques or expensive equipment. It focuses on

simplification.

Kaizen is possible only when the management is able to hear the

workers. It requires an effective communication in both the directions.

KAIZEN REQUIRES THE USE OF THE FOLLOWING:

1. The data about value adding and non-value adding activities.

2. The knowledge about various types of waster (Muda). Over production, delay,

transportation, processing, inventory, wasted motion and defective parts.

3. Documentation of the operating procedure.

4. Principles of time study.

5. Following the 5s concept.

6. Fewer inventories – use JIT.

7. Mistake proofing- to prevent or detect errors.

8. Effective use of teams to solve problems and to improve the performance.

SUPPLIER PARTNERSHIP

The relationship between customer (company) and the supplier. Customer

and supplier have the same goal to satisfy the end user. Both the customer and

the supplier have limited resources they must have work together as partners to

maximize their return on investment.

Principles of customer-supplier relations:

1. Both the customer and supplier are responsible for the quality control.

2. Supplier and customer should be independent of each other.


44

3. The customer must communicate to the supplier about his requirements.

4. There should be agreement with respect to quality, price, mode of delivery

and payment mode.

5. The supplier should supply quality materials that will result in customer

satisfaction.

6. Provisions for the easy settlement of the disputes.

7. Mutual exchange of information.

PARTNERING

Meaning:

Partnering is a long-term commitment between two or more organization for the

purpose of achieving specific business goals and objectives by maximizing the

effective of each participants resources.

Benefits:

1. Improve quality.

2. Increased efficiency.

3. Lower cost.

4. Opportunity for innovation.

5. Continuous improvements of product and services.

KEY ELEMENTS OF PARTNERING:

1. LONG-TERM COMMITMENT:

Long-term commitment provides the needed environment for both

partners to work toward continuous improvement.

Problems require time to solve or process need constant improvement.

Each partner contributes its unique strengthen to the processes.

Investment in new equipment or systems may be required.

These must be a to far organization involvement from the CEO to the

workers.

2. TRUST:

Mutual trust forms the basis for a strong working relationship.


45

Open and frequent communication avoids misdirection and disputes

while strengthening the relationship.

The parties should have access to each other business plans and

technical information.

They may share or integrate resources such as training activities,

administration systems and equipment.

Both parties become mutually motivated when win-win solution not

rather than win-lose solution.

3. SHARED VISION:

Shared goal and objectives ensure a common direction and must be

aligned with each parties.

Employees of both parties should think and act for their common

good.

Understand each other‘s business so that equitable decision are made

Sharing of business plan.

SOURCING

SOURCING is the process of identifying the suppliers for the items required by an

organization for produce or manufacturing the product. There are three types of

sourcing

1. Sole sourcing:

The organization is forced to use only one supplier.

Only one organization producing the item.

2. Multiple sourcing:

Two or more suppliers are available for the required item.

It eliminates dependency.

Usually these suppliers are chose in term of price, quality and

delivery.

It will result in better quality low cost and better service.

If there is a strike going on in one of the supplier‘s company the

manufacturer need not wait for him.

3. Single sourcing:


46

Though there are number of suppliers available for a particular

commodity selecting a single vendor for the organization to supply the item

is called single sourcing.

It results in long-term product.

Supplier Selection

The company before going for selecting a supplier should finalize on ―Make

or Buy‖ decision. The following questions must be answered before

proceeding with the suppliers.

1. How critical is the item to the final product/ service

2. Is it possible to produce the item internally? Do we have technology to

produce it? If not, can we develop it?

3. Are there any specialized suppliers for the item? Or can we develop such

a supplier?

Finally the decision is made to outsource, the following points must be considered

for evaluating the suppliers.

a. The supplier‘s ability to understand the management philosophy of the

organization.

b. The technical expertise available now and the ability to cope up with the

future technical requirements.

c. The supplier‘s ability to consistently supply the raw materials that meet the

specifications of the purchaser.

d. The supplier‘s ability to meet the demand and ability to increase the volume

of production when demanded.

e. The credibility of the supplier in maintaining the corporate secrets.

f. System of delivery and communication systems available with the supplier.

g. The track record of the supplier with the company.

Supplier Rating.

To assess the performance of the suppliers with respect to quality, speed if

delivery, and service, the supplier rating is done. Supplier rating is the process of

categorizing the suppliers on the basis of quality, prompt delivery, and services.

1. Supplier rating enables the company to obtain an overall rating of the

supplier performance.

2. It ensures complete communication with customers on all the key areas.


47

3. It enhances the customer- supplier relationship by providing an objective

feedback of the supplier‘s performance.

4. It provides the supplier‘s with a factual record of mistakes, so that the

suppliers can eliminate them in future.

For example

Supplier Rating System. - Scorecard.

Performance Characteristics

Supplier

Quality

(40-

Marks)

Prompt

Delivery

(20-

Marks)

Communication

system (20-

Marks)

Product

Technology

(20-Marks)

Total

Marks

(for 100 –

Marks)

Supplier –

A 35 15 12 20 82

Suppler -

B 30 20 19 10 79

Supplier -

C 25 13 17 10 65

The above the clearly show - the supplier –A having more score comparing with the

B and C. so it is conclude that the supplier –A is good performance.

RELATIONSHIP DEVELOPMENT

Sustaining the relationship with the suppliers is important after initiating

the customer supplier partnering process. To keep the relationship alive and

growing the following activities are carried out.

1. Inspection


48

The purpose of this inspection process is to gain confidence in each other‘s

performance and finally automating the inspection activity. There are four

phase in the inspection process.

a. 100% inspection

b. Sampling inspection

c. Audit

d. Identity Checks.

2. Training

It is always better to educate the suppliers on what we expect from them and

what quality means to us in the business process. This is possible by allowing the

suppliers to undergo training programmes conducted by the senior officials at

customer‘s sites.

3. Team Effort

In all the possible areas the teams must involve officials from the suppliers

side also. This will enhance the understanding of the suppliers and their role in the

business process will be clear to them.

The team meeting must be arranged at both the customer and the supplier

premises.

4. Recognition

The customer should recognize the supplier‘s performance by awarding

them with a place in the preferred suppliers list. A certificate of contribution

to the business must be given to them. This recognition will surely develop

the relationship between the customer and the supplier


49

UNIT III TQM TOOLS & TECHNIQUES I

SEVEN TOOLS OF QUALITY

FLOW CHARTS It shows the process of work i.e. the flow of material or

information through a sequence of operations. These diagrams

show the flow of the product or services as it moves through

the various processing operations.

The diagram makes it easy to visualize the entire system,

identify potential trouble spots and locate control activities.

Improvements can be accomplished by changing, reducing

combining or eliminating steps.

For Example

Flow diagram for an order entry activity

OK

RUN CHARTS Run charts are simply plots of process characteristics against

time or in chronological sequence. They do not have statistical

basis, but are useful in revealing.‘

Trends Relationship between variables.

Telephone

Log in Fax

Letter

Schedule

production Inventory

Check

Contract

review

Hold

Notify customer as to

delivery date

Production

etc.,

Credit

check


50

12

10

08

06

04

02

0

0 20 40 60 80 100 120 140

PARETO CHARTS AND ANALYSIS The 20% rule

Vilfredo Pareto (1848-1923)

80% of the wealth in Italy was held by 20% of the production

20% of customers accounted for 80% of sales 20% of parts accounted for 80% of cost.. Etc.

Pareto principles states that

PARETO charts show the most frequently occurring factors Analysis of pareto charts help to make best use of limited

resources by targeting the most important problems to tackle.

60

50

40

30

20

10


51

0

A B C D E F G H

CAUSE AND EFFECT DIAGRAMS It was developed by Dr. Kaoru Ishikawa in 1943mand is

sometimes referred to as an Ishikawa diagram or a fishbone

diagram because of its shape.

A cause and effect diagram is a picture composed of lines and

symbols designed to represent a meaningful relationship

between an effect and its causes.

This tool helps to organize problem-solving efforts by

identifying all the factors that might have caused the problem.

During brain storming sessions, this diagram is used to

organize the ideas generated.

A typical cause-and-effect diagram is shown. The diagram

shows the various elements (cause) that would have caused

cracks on the surface, after the finishing process.

People Materials Arrangement

Hiring Responsibility Commitment

Qty Policy

Specification Vendors

Orientation Costs

Training

Inspection Customer needs

Controlled

Design Devices

Quality

Improvem

ent


52

Maintenance calibration Un controlled

Standards Quality Impact

Equipment Measurement Environment

HISTOGRAM DIAGRAMS A histogram is a graph that displays the distribution of data. A

histogram is also known as ‗frequency distribution diagram‘. It is

constructed from the data collected in a frequency table. A frequency

table is a chart that divides the range of data into several equal

sections to compare the frequency of occurrence in each section.

Uses of histogram

A histogram is used to show clearly where the most frequently

occurring values are located and the data is distributed. It is also a

tool for determining the maximum results. It enables the analyst to

quickly visualize the features of a complete set of data.

Construction of histogram A histogram may be constructed using the following steps:

1. After the data collection, count the number of data values collected. 2. Determine the range of the data. Range=Highest value-lowest value.

3. Divide the data values in groups or classes and count the number of values in each class. The following table shows the guidelines to

divide the data values. GUIDELINES TO FORM CLASSES

Number of values Number of classes Number of values Number of classes

Less than 50 5-7 100-250 7-12

50-100 6-10 More than 250 10-20

4. Now deter mine the width of the classes


53

Width of the classes=range/Number of classes selected from the above

table

5. Draw a frequency table for all values. 6. Construct a histogram based on the frequency table. For that, mark

the class limits on the horizontal axis and the frequency on the vertical axis.

7. Finally write the title and number of values on the diagram.

Types of histograms and their interpretations The following patterns are very useful in the analysis of data.

(a) Bell-shaped histogram

Bell-shaped Symmetrical shape with a peak in middle representing a normal

distribution.


54

(b) Double-peaked histogram

Double-peaked Two normal distribution with two peaks in middle indicating more than

one distribution at work.

© Plateau

Plateau Flat top, no distinct peak and tails indicating more than one distribution

at work


55

(d) Comb

Comb Alternative peaks showing possible errors in data collection and analysis

(e) Isolated peak


56

Isolated peak Two normal distributions suggesting two processes taking place at the

same time.

(f) Edged peak

Edged peak A normal distribution curve with a large peak at one end indicating

errors in data recording.


57

(g) Skewed

(h) Truncated

Skewed An asymmetrical shape positively or negatively skewed-usually reflecting

limits in the specification on one side.

Truncated An asymmetrical shape with a peak at the end. Usually being a part of a


58

CHECK SHEET

A check sheet is a form in table format prepared for recording

data. Thus the necessary information can be recorded by

making a check mark on the page. Check sheets are used in

following ways:

1. Check sheets for recording data and making surveys

Defective item check sheet

Defect factor check sheet

Defect position check sheet

Process distribution check sheet 2. Inspection and validation check sheet

Product name…

Product no…

Process: publishing

DEFECTIVE ITEM CHECK SHEET

DAY

normal distribution with part of it having been removed.

Defect 1 2 3 4 Total

A IIII II IIII I II I 16

B III IIII I I II 12

C IIII IIII IIII I III III 21

D II IIII I II IIII 13

Total 16 29 8 9 62


59

A-spelling mistakes

B-grammar mistakes

C-mistakes in the page numbers

D-punctuation marks

CONTROL CHARTS A control charts is used to monitor a process to see if the

process output is random. It helps to detect the presence of

controllable causes of variation. It can also indicate when a

problem occurred and give insight into what might have caused

the problem. Control charts are discussed in detail in the topic

‗statistical process control‘.

A control chart invented by WALTER A.SHEWRAT is the most widely used tool

in statistical process control (SPC).

A control chart is a graph that displays data taken over time and variations of

this data.


60

The control chart is based on a series of random samples taken at regular

intervals.

The chart consists of three horizontal lines that remain constant over time: a

centerline, a lower control limit (LCL), and on upper control limit (UCL).

The center is usually set at normal design value. The UCL and LCL are generally

set at +_3 standard deviations of the sample means.

If a sample drawn from the process lies inside these (UCL and LCL) limits, it

means the process is in control. On the other hand, if the sample lies outside

these limits, then the process is said to be out of control. So appropriate

corrective action is necessary to eliminate the condition.

Types of control charts:

The two basic control charts are:

(a) Control charts for variable-for measurable data such as time, length, temperature, weight, pressure etc.

(b) Control charts for characteristics-for quantifiable data such as number of defects in a glass bottle (air bubbles), typing error in report, etc.

Uses of control charts The purpose of a control chart is to identify when the processes has gone out

of statistical control, thus signaling the need for some corrective action to be

taken.

SCATTER DIAGRAMS

Scatter diagram is a graph that shows the degree and direction of relationship

between two variables. It can be useful in deciding whether there is a correlation

between any two variables.

Relationship between the temperature and the number of errors committed per

hour. High values of temperature correspond to high number of errors and vice

versa. Higher values of speed correspond to low noise and vice versa.

The higher the correlation between the two variables, the lesser will be the scatter

the points will tend to line up. On the other hand, if there were little or no

relationship between two variables, the points would be completely scattered.

Uses of scatter diagram

The purpose of scatter diagram is, therefore to display what happened to one variable to another variable is changed.

This diagram is used to understand, why particular variations occur and how they can be controlled.


61

Types of scatter diagram

a) Positive correlation b) Negative correlation

c) No correlation d) Negative correlation may exist


62

x

x

x

x

x x

x x

e) Correlation by stratification f)curvilinear relationship

PROCESS CAPABILITY

Process capability compares the output of an in-control process to the

specification limits by using capability indices. The comparison is made by forming

the ratio of the spread between the process specifications (the specification ―width‖)

to the spread of the process values, as measured by process standard deviation

units (the process ―width‖)

SIX SIGMA Six-sigma strategy can be used in an organization to achieve incredible levels of

efficiency. The defects can be brought down to a level pf 3.4 parts per million. This level is

with a shift of 1.5 . If the process can be cantered properly the value can be still smaller (i.e.

two defects per billion).

The objective of the six-sigma quality is to reduce process output variation so that six

standard deviations lie between the mean and the nearest specification limit.

THE NEW SEVEN MANAGEMENT AND PLANNING TOOLS The advanced tools that are used to manage cross functionality include the

seven new QC tools also known as the ― Seven Management and Planning Tools‖ or

7 MP Tools in the US.

1. Identify a system owner and team members for each critical system.

2. Describe the system under study


63

3. Identify all subsystems that contribute to the critical system

4. Define the interdependencies of the subsystems

5. Prioritize the subsystems as to their contribution to the critical system

6. Develop a detailed ―as is‖ description of the critical system. This includes identifying the interfaces between all system components as well as expanding the level of detail for major contributing subsystems. 7. Identify obvious system deficiencies 8. Identify possible causes of system deficiencies 9. Establish ― basic line‖ measures for the system and major subsystems 10. Assess the performance of the system and major subsystems 11. Develop a ― should be‖ description of the system and subsystems 12. Recommended changes to improve system and subsystem performance.

THE NEW SEVEN MANAGEMENT AND PLANNING TOOLS ARE:

AFFINITY DIAGRAMS In affinity diagrams large volumes of data is gathered and

organized. Ideas, opinions, and facts relating to a problem are grouped. A

sequence or pattern formation is the main aim. This is mainly used in

addressing issues such as customer dissatisfaction etc. affinity diagram

are tools for verbal data. Its applications are to organize into groups a large

number of ideas, opinions about a particular topic.

English language speaking skills of students

Teachers

MANA

GERI

AL

FUNC

TION

S AT

DIFF

EREN

T

ORGA

NISA

TION

AL

LEVE

Flu

ency

Qu

alif

icat

ion

Pat

ien

ce

Mother

tongue

Lite

racy

Leis

ure

Neighbor

hood

Interest

Fellow

Students

Parents

MANA

GERI

AL

FUNC

TION

S AT

DIFF

EREN

T

ORGA

NISA

TION

AL

LEVE

Students

MANA

GERI

AL

FUNC

TION

S AT

DIFF

EREN

T

ORGA

NISA

TION

AL

LEVE


64

Example of an affinity diagram drawn to improve the English language

speaking skills of students.

INTER RELATIONSHIP DIAGRAM The relationship between causative factors and then main issue is

established. This tool helps us in identifying the relationship between different factors,

which cause a problem or issue.

It also helps in determining the interrelationship between these

factors. This tool is used to identify the major causes, which help in solving

a problem on the basis of logical analysis and linkage of causes associated

with the problem.

Customer

Satisfaction

Example of a relationship diagram drawn to improve customer satisfaction.

TREE DIAGRAM Tree diagram is listed as a tool for non- numerical data. It is

used to show the relationship between an issue and its component elements.

Therefore a tree diagram breaks down the issue into its component elements. This

is a tool for operational planning after initial diagnosis of issues.

Good

Performance

Good aesthetic

product

Long Lasting

Product

Low

Cost

Low cost raw

material

Low cost

technology

Labour Welfare


65

Example of a tree diagram constructed to analyze the monthly outgoings in a

company

MATRIX DIAGRAM A matrix diagram consists of a set of columns an rows. The intersections of

these rows and columns are checked for determining the nature and

strength of the problem. These help us to arrive at the key ideas and

determining the relationship and an effective way of perusing the problem,

MATRIX DATA ANALYSIS

***** *****

Maximum Profit

Expenses towards

material purchase

Expenses towards

labour wages

Labour Wages

Facilities for work

force

Materials for

Maintenance

Consumables

Materials for

infrastructure

development


66

***** ***** ***** ***** *****

***** ***** ***** ***** ***** *****

***** ***** ***** ***** ***** *****

***** ***** ***** ***** ***** ***** *****

Matrix data analysis

PROCESS DECISION PROGRAMME CHART It is method, which maps out conceivable events and contingencies

that can occur in any implementation plan along with appropriate counter

measures. This tool is used to plan each possible chain of events that need

to occur when the problem or goal is unfamiliar one. This is a qualitative

tool.

Thus PDPC is useful whenever uncertainty exists in a proposed

implementation plan.

Poonamalle koyambedu

Madras

Kanchipuram

Walajapet Padapai

Example of process decision programme chart for commuting

between Kanchipuram and Madras

ARROW DIAGRAM Arrow diagram is tool to plan the most appropriate schedule for

the completion of a complete task and its related sub-task. It projects likely


67

completion time and monitors all sub tasks adherence to necessary

schedule.

The total work or task is sub- broken down to sub tasks or activities.

The sub tasks and the total work is linked by arrows and a diagram is

constructed to depict the activities.

Soil test

Acquire site obtain bids

Feasibility study Prepare plan evidence Release contract

approval

Loan application

Market study secure finance

Arrow diagram of list of activities in a construction firm

A

B

C

D

E

F

G

H

-Measures of Central Tendency and dispersion,

-Population and sample,

-Normal curve,

-Control charts for variables and attributes

-Population and sample

-Process capability

Problems and solutions


68

BENCH MARKING

Introduction

Benchmarking involves management identifying the best firms in their

industry, or any other industry where similar processes exist, and comparing the

results and processes of those studied (the "targets") to one's own results and

processes to learn how well the targets perform and, more importantly, how they do

it

Bench marking is the comparison of the processes and systems of a given

business function across companies. It is a way for managers and employees to

compare their functional performance to that of other companies. It can be defined

as

Measuring your performance against that of best in-class companies

Analyzing how (methods) the best achieve their performance level.

Using the information as the basis for evaluating your own targets,

strategy and applications.

Involvement and improvements are not limited to employees. In some

cases, customers and suppliers are involving group problem solving.

DEFINITION

“Bench marking is the process of identifying, understanding, and

adapting outstanding practices from organizations anywhere in the world to

help your organization improve its performance”.

The following is an example of a typical benchmarking methodology:

1. Identify your problem areas –

Because benchmarking can be applied to any business process or

function, a range of research techniques may be required. They include:

informal conversations with customers, employees, or suppliers; exploratory

research techniques such as focus groups; or in-depth marketing research,

http://en.wikipedia.org/wiki/Qualitative_marketing_research



http://en.wikipedia.org/wiki/Focus_group

http://en.wikipedia.org/wiki/Marketing_research


69

quantitative research, surveys, questionnaires, re-engineering analysis,

process mapping, quality control variance reports, or financial ratio analysis.

Before embarking on comparison with other organizations it is essential that

you know your own organization's function, processes; base lining

performance provides a point against which improvement effort can be

measured.

2. Identify other industries that have similar processes –

For instance if one were interested in improving hand offs in addiction

treatment he/she would try to identify other fields that also have hand off

challenges. These could include air traffic control, cell phone switching

between towers, transfer of patients from surgery to recovery rooms.

3. Identify organizations that are leaders in these areas –

Look for the very best in any industry and in any country. Consult

customers, suppliers, financial analysts, trade associations, and magazines

to determine which companies are worthy of study.

4. Survey companies for measures and practices –

Companies target specific business processes using detailed surveys

of measures and practices used to identify business process alternatives and

leading companies. Surveys are typically masked to protect confidential data

by neutral associations and consultants.

5. Visit the "best practice" companies to identify leading edge practices –

Companies typically agree to mutually exchange information

beneficial to all parties in a benchmarking group and share the results

within the group.

6. Implement new and improved business practices –

Take the leading edge practices and develop implementation plans

which include identification of specific opportunities, funding the project and

selling the ideas to the organization for the purpose of gaining demonstrated

value from the process.

http://en.wikipedia.org/wiki/Quantitative_marketing_research

http://en.wikipedia.org/wiki/Statistical_survey

http://en.wikipedia.org/wiki/Questionnaire_construction


70

Types of benchmarking

Process benchmarking –

The initiating firm focuses its observation and investigation of

business processes with a goal of identifying and observing the best

practices from one or more benchmark firms. Activity analysis will be

required where the objective is to benchmark cost and efficiency;

increasingly applied to back-office processes where outsourcing may be a

consideration.

Financial benchmarking –

Performing a financial analysis and comparing the results in an effort

to assess your overall competitiveness and productivity.

Benchmarking from an investor perspective-

Extending the benchmarking universe to also compare to peer

companies that can be considered alternative investment opportunities from

the perspective of an investor.

Performance benchmarking –

Allows the initiator firm to assess their competitive position by

comparing products and services with those of target firms.

Product benchmarking –

The process of designing new products or upgrades to current ones.

This process can sometimes involve reverse engineering which is taking

apart competitors products to find strengths and weaknesses.

Strategic benchmarking –

Involves observing how others compete. This type is usually not

industry specific, meaning it is best to look at other industries.

Functional benchmarking –


71

A company will focus its benchmarking on a single function to

improve the operation of that particular function. Complex functions such as

Human Resources, Finance and Accounting and Information and

Communication Technology are unlikely to be directly comparable in cost

and efficiency terms and may need to be disaggregated into processes to

make valid comparison.

Best-in-class benchmarking –

Involves studying the leading competitor or the company that best

carries out a specific function.

Operational benchmarking –

Embraces everything from staffing and productivity to office flow and

analysis of procedures performed

Reasons to Bench Marking

Its aims at a goal setting process to facilitate comparison with the best

To measure the relative performance of the organization.

To analyze and determine how the best company has achieved its

performance level so that the same strategy can be followed.

The information can be used to relatively evaluate or rank our targets

and strategies presently followed.

It aims at searching for industry best practices

Bench Marking Concept

What is our present

performance level?

How do we do it?

Break through

performance

What are others

performance levels?

How did they get there?

Creative

Adaptation


72

Bench Marking Process

The benchmarking process consists of five phases:

Gap analysis between our own company practices and other superior

practicesAssimilating and understanding the prevalent best practices in industries

to find out ―What must be changed‖Recognizing and identifying the ― bench

marking partner‖ and studying there best practices.Executing and implementing

bench marked practices at our own unit to achieve the target.Evaluating the

results and outcomes to determine where we stand after


73

implementing the changes.

I. Planning.


74

The essential steps are those of any plan development:

what, who and how.

Earmark what is to be benchmarked?

Identifying the best competitor

Determine the data collection method and the start collecting data

What is to be benchmarked? Every function of an organization has or

delivers a ―product‖ or output. Benchmarking is appropriate for any output

of a process or function, whether it‘s a physical good, an order, a shipment,

an invoice, a service or a report.

To whom or what will we compare? Business-to-business, direct

competitors are certainly prime candidates to benchmark. But they are not

the only targets. Benchmarking must be conducted against the best

companies and business functions regardless of where they exist.

How will the data be collected? There‘s no one way to conduct

benchmarking investigations. There‘s an infinite variety of ways to obtain

required data – and most of the data you‘ll need are readily and publicly

available. Recognize that benchmarking is a process not only of deriving

quantifiable goals and targets, but more importantly, it‘s the process of

investigating and documenting the best industry practices, which can help you

achieve goals and targets.

II. Analysis.

The analysis phase must involve a careful understanding of your

current process and practices, as well as those of the organizations

being benchmarked. What is desired is an understanding of internal

performance on which to assess strengths and weaknesses.

Ask:

Is this other organization better than we are?

Why are they better?

By how much?

What best practices are being used now or can be anticipated?


75

How can their practices be incorporated or adapted for use in our

organization?

Answers to these questions will define the dimensions of any performance

gap: negative, positive or parity. The gap provides an objective basis on

which to act—to close the gap or capitalize on any advantage your

organization has.

III. Integration.

Integration is the process of using benchmark findings to set

operational targets for change. It involves careful planning to

incorporate new practices in the operation and to ensure benchmark

findings are incorporated in all formal planning processes.

Steps include:

Gain operational and management acceptance of benchmark findings.

Clearly and convincingly demonstrate findings as correct and based on

substantive data.

Develop action plans.

Communicate findings to all organizational levels to obtain support,

commitment and ownership.

1. Communicate benchmark findings and gain acceptance.

2. Establish functional goals

Communication data for analysis Give acceptance for

analysis

IV. Action.


76

Convert benchmark findings, and operational principles based on

them, to specific actions to be taken. Put in place a periodic measurement

and assessment of achievement. Use the creative talents of the people who

actually perform work tasks to determine how the findings can be

incorporated into the work processes.

Any plan for change also should contain milestones for updating the benchmark

findings, and an ongoing reporting mechanism. Progress toward benchmark

findings must be reported to all employees.

V. Maturity.

Maturity will be reached when best industry practices are incorporated in all

business processes, thus ensuring superiority.

Tests for superiority:

If the now-changed process were to be made available to others, would a

knowledgeable businessperson prefer it?

Do other organizations benchmark your internal operations?

FAILURE MODE AND EFFECT ANALYSIS

Introduction

Failure Mode Effect Analysis is an analytical technique that goes in for

combining Technology and Experience of people to identify foreseen

failures in a product or process and planning to eliminate the Failure.


77

MEANING

Failure mode and effect analysis (FMEA) also known a risk analysis is a

preventive measure to systematically display the causes, effects and possible

actions regarding observed failure.

The objective of FMEA is to anticipate failures and prevent them from occurring.

FMEA priorities failures and attempts to eliminate their causes.

FMEA is an engineering technique used to define, identify and eliminate known

and/ or potential failures, problems, errors which occur in the system, design

process and service ‗ before they reach the customers‘

TYPES OF FMEA

Major Classification

Design FMEA

Process FMEA

Sub Classification

Equipment FMEA

Maintenance FMEA

Service FMEA

System FMEA

1. Design FMEA

Design FMEA involves the analysis of the potential failures of product

or service due to component or subsystem unreliability

Design FMEA is to establish priorities based on expected failures and

severity of those failures.

2. Process FMEA

Process FMEA involves a failure analysis of a manufacturing process.


78

The process FMEA is used primarily to identify areas of critically of

control and to emphasize the design and more reliable.

FAILURE RATE

Products follow a pattern of failure.

There is no information about the reliability (i.e. Failure) of the product.

Failure Rate is a constant is known period of failure can be found out using

Exponential Distribution

Rt = e – λt Rt = Reliability of survival

Rt = e - t / θ t = Time for operation without failure

λ = Failure rate θ = Mean time to Failure

BENEFITS OF FMEA

Improve product/process reliability and quality

Increase customer satisfaction

Early identification and elimination of potential product / process failure

modes.

Prioritize product /process deficiencies

Capture engineering/ organizational knowledge

Document and track the actions taken to reduce risk

Provide focus for improved testing and development.

Minimize late changes and associated cost.

FMEA PROCEDURE

1. Describe the product/process and its function

2. Create a block diagram of the product/ process:


79

It shows the relationship of components and establishes a

structure, which the FMEA can be developed.

3. Complete the header of the FMEA form worksheet.

Changing team leader, team members if it‘s needed

4. List product/process function

5. Identify failure modes

A failure mode is defined as the manner in which a component,

subsystem, system, process, etc., could potentially fail to meet the design

purpose.

Examples of potential failure modes include- corrosion, torque,

fatigue, deformation, cracking, electrical short or open and hydrogen

embitterment.‘

6. Describe the potential failure effects:

A failure effect is defined as the result of a failure mode on the

function of the product/process as perceived by the customer

Examples of failure effects include: injury to the user, impaired

operation, poor appearance, odors, noise and degraded performance.

7. Establish the numerical ranking for the severity of the effect.

8. The ClASS column is used to classify any special product characteristics

for components, sub-systems, or systems that may require additional

process controls.

9. Identify the potential causes/ mechanisms of failure.

Example:- improper torque applied, improper operating

conditions, improper alignment, excessive loading etc.,

10. Enter the probability factor.

A numerical weight should be assigned to each cause that

indicates how likely that cause. (i.e., probability of the cause causing)


80

11. Identify current control

12. Determine the likelihood of deduction

The likelihood of detection is also based on a 1 to 10 scale, with 1

being the certain of detection and 1- being the absolute uncertainty of

detection.

13. Review Risk Priority Number (RPN)

The risk priority number is defined as the product of Severity(S),

Occurrence (O), and detection (D) rankings

i.e., RPN = Severity x Occurrence x Detection

14. Determine the recommended actions

15. Assign responsibility and a target completion date for these actions. This

makes responsibility clear cut and facilities tracking

16. Indicate actions taken..

17. Update the FMEA as the design or process changes, the assessment

changes or new information becomes known.

UNIT IV TQM TOOLS & TECHNIQUES II

QUALITY FUNCTION DEPLOYMENT

It is a structured method that is intended to transmit and translate

customer requirements, that is, the

Voice of the Customer

Through each stage of the product development and production process,

that is, through the product realization cycle.

These requirements are the collection of customer needs, including all

satisfiers, exciters/delighters, and dissatisfies.

QFD is systematic and organized approach of taking customer needs and demands

into consideration while designing new products and services (or while improving

existing products and services)


81

QFD focuses on the „ voice of the customer ‟ i.e. customer expectation or

requirements. That‘s why QFD is sometimes as “Customer Driven Engineering‖

Definition

Quality Function Deployment may be defined as a system for

translating consumer requirements into appropriate requirements at every

stage, from research through product design and development, to

manufacture, distribution, installation and marketing sales and services.

Objectives

To identify the true voice of the customer and to use this

knowledge to develop products which satisfy customers

To help in the organization and analysis of all the relevant

information associated with the project.

In short the QFD aims at translating the customer voice (or)

requirements into products specifications

QFD PROCESS

QFD is a team based management tool. Here customer expectations are

used to drive the product development process. In a typical QFD

application, a cross functional team creates and analysis a matrix

linking customer wants and needs to a set of product and service

designs metrics that the company can then measure and control.

Customer Requirements

Design requirements

Part / Item Characteristics

Process Operations

Operations Requirements

Product

Planning

Product

Design

Process Planning

Process Control


82

Product planning (Begins with customer requirements)

Part Development

Process planning

Production planning (End with

Prototype and production launch)

Phase-I

Product planning

Part

Characteristics

Des

ign

Req

uir

emen

ts

Design

requirements

Cu

sto

mer

Req

uir

emen

ts

Manufacturing

operations

Par

t

Ch

arac

teri

stic

s

Production

Requirements

Man

ufa

ctu

rin

g

op

erat

ion

s


83

List of customer requirements (What‘s)

List technical descriptors (How‘s)

Develop a relationship matrix between What and How

Develop an interrelationship matrix between How‘s

Do competitive assessments

Develop prioritized customer requirements‘

Develop prioritized technical descriptors

Phase- II

Part Development

Deploy QFD process down to sub- components level both in terms of

requirements and characteristics

Deploy the component deployment chart. Relate the critical sub-

component control characteristics

Phase – III

Process Planning

Develop the relationship between the critical characteristics and

process used to create the characteristics

Develop the control plan relating critical control to critical processes

Phase-IV

Production planning

Tabulate operating instructions from process requirement

Develop prototype and do testing

Launch the final product to the market.

There are many benefits to be realized by using Quality Function

Deployment (QFD), including the following:

Customer driven:

The focus is on customers wants, not what the company thinks

the customer wants. The "Voice of the Customer" drives the

development process.


84

Competitive analysis:

Other products in the marketplace are examined, and the

company product is rated against the competition.

Reduced development time:

The likelihood of design changes is reduced as the QFD process

focuses on improvements to be made to satisfy key customer

requirements. Careful attention to customer requirements reduces

the risk that changes will be required late in the project life cycle.

Time is not spent developing insignificant functions and features.

Reduced development costs:

The identification of required changes occurs early in the project

life cycle. Minimizing changes following production reduces warranty

costs and product support costs.

Documentation:

A knowledge base is built as the QFD process is implemented.

A historical record of the decision-making process is developed

BENEFITS OF QFD

Promotes better understanding of customer demands

Improve customer satisfaction

Promotes team work

Facilitates better understanding of design interactions

Concentrates on design efforts

Introduce new design to the market faster.

Breaks down barriers between functions and departments

HOUSE OF QUALITY ( Tools of QFD)

House of Quality is a graphic tool for defining the relationship between

customer desires and the firm/product capabilities. It is a part of the

Quality Function Deployment (QFD) and it utilizes a planning matrix to

http://en.wikipedia.org/wiki/Customer

http://en.wikipedia.org/wiki/Quality_function_deployment

http://en.wikipedia.org/wiki/Planning

http://en.wikipedia.org/wiki/Matrix


85

relate what the customer wants to how a firm (that produce the products) is

going to meet those wants. It looks like a House with a "correlation matrix"

as its roof, customer wants versus product features as the main part,

competitor evaluation as the porch etc. It is based on "the belief that

products should be designed to reflect customers' desires and tastes"[1]. It

also is reported to increase cross functional integration within organizations

using it, especially between marketing, engineering and manufacturing.

The primary planning tool used in the QFD is the ―HOUSE OF

QUALITY”

The House OF Quality converts the voice of the customer into product

design characteristics

QFD uses a series of matrix diagrams also called ‗ QUALITY TABLES‟

that resemble connected houses.

Basic structure of House of Quality

V Interrelationship

between technical

descriptors

III

Technical descriptions

(Voice of the organization)

IV

Relationship between requirements and

descriptions

II

Pri

ori

tize

d

cust

om

er

requir

emen

ts

I

Cust

om

er

req

uir

emen

ts

(voic

e of

the

cust

om

er)

http://en.wikipedia.org/wiki/Correlation_matrix

http://en.wikipedia.org/wiki/House_of_Quality#cite_note-0

http://en.wikipedia.org/wiki/Marketing


86

The house of quality has six sections

Section –I

Customer Requirements

The exterior walls of the house are the customer requirements

On the left hand side, the voice of the customer i.e, what the customer

expect from the product is listed.

Section – II

Prioritized Customer Requirements

On the right hand side, the prioritized customer requirements or

planning matrix are listed

Some of the listed items include customer bench marking, customer

importance rating, target value, scale up factor and sales point.

Section –III

Technical Descriptors

The second floor, or ceiling of the house contains the technical

descriptors

Product design characteristics, expressed in engineering terms, are

located in this ceiling

Section – IV

Relationship Matrix

The interior walls of the house are the relationship between customer

requirements and technical descriptors.


87

The relationship matrix correlates customer requirements with

product characteristics

Section – V

Trade –Off Matrix

The root of the house is the interrelationship between technical

descriptors.

Trade –off between similar and /or conflicting technical descriptors

are identified.

Section – VI

Prioritized Technical Descriptors

The foundation of the house is the prioritized technical descriptors

Some of the items included are the technical benchmarking, degree of

technical difficulty, and target value.

TAGUCHI‟S QUALITY LOSS FUNCTION


88

Taguchi‘s methods are statistical methods developed largely by Genichi

Taguchi to improve the quality of manufactured goods

Definition

Simply put, the Taguchi loss function is a way to show how each non-perfect part

produced, results in a loss for the company. Deming states that it shows

"a minimal loss at the nominal value, and an ever-increasing loss with departure

either way from the nominal value." - W. Edwards Deming

The quality loss function is based on the work of electrical engineer, Genichi

Taguchi. This view disagrees with the traditional (goalpost) view. The quality

loss function recognizes that products falling between specific limits are not

all equal. The four following statements summarize Taguchi‘s philosophy.

1. We cannot reduce cost without affecting quality.

2. We can improve quality without increasing cost.

3. We can reduce cost by improving quality.

4. We can reduce cost by reducing variation. When we do so,

performance and quality will automatically improve.

Taguchi defines Quality as “the loss imparted by the product to

society from the time the product is shipped.”

LOSS = Cost to operate, Failure to function, maintenance and

repair cost, customer satisfaction, poor design.

Product to be produced “being within specification”

Taguchi‟s Vs Traditional Approach


89

Taguchi‟s Loss Function

Taguchi‘s defines quality as ―the loss imparted by the product to

society from the time the product is shipped‖

This loss includes costs to operate, failure to function, maintenance

and repair costs, customer dissatisfaction, injuries caused by poor

design and similar costs.

Defective products/ parts that are detected, repaired reworked, or

scrapped before shipment are not considered part of this loss

The essence of the loss function is that whenever a product deviates

from its target performance, it generates a loss to society. This loss is

minimum when performance is right on target, but it grows gradually

as one deviates from the target.

Therefore the loss function philosophy says that for a manufacturer,

the best strategy is to produce as close to the target as possible,

rather than aiming at ― being with in specifications‖

Taguchi‟s Quadratic Quality Loss Function

Quality Loss Occurs when a product‟s deviates from target or

nominal value.

Deviation Grows, then Loss increases.

Taguchi‟s U-shaped loss Function Curve

Taguchi‟s Traditional

When a product moves

from its Target will cause

the loss even if the

product lies or not within

Limits

There is Good or Bad Products only as

per Limits


90

Taguchi‟s U-shaped loss Function Curve

Formula to find Taguchi‟s Loss Fn

Taguchi uses Quadratic Equation to determine loss Curve

L (x) = k (x-N)²

Where L (x) = Loss Function,

k = C/d² = Constant of proportionality,

where C – Loss associated with sp limit


91

d - Deviation of specification from target value

x = Quality Features of selected product,

N = Nominal Value of the product and

(x-N) = Tolerance

Problem

A part dimension on a power tool is specified as 32.25±0.25.Company records

show±0.25 exceeded & 75% of the returned fo replacement. Cost of replacement is

Rs.12,500.Determine k & QLF

A part dimension on a power tool is specified as 32.25±0.25.Company records

show±0.25 exceeded & 75% of the returned fo replacement. Cost of replacement is

Rs.12,500.Determine k & QLF

MAINTENANCE

Maintenance is defined as the management, control, and

execution and quality assurance of activities, which ensure the achievement

of optimum availability and performance of a plant in order to meet business

objectives.

Types of Maintenance

Corrective or breakdown maintenance

It implies that repairs are made after failure of machine or

equipment.

Scheduled or routine breakdown

It is a stitch-in-time procedure aimed to avoiding breakdowns

Preventive maintenance


92

It is carried out before the failure arises (or) prior to the

equipment actually breakdowns. E.g. Overhauling & Periodic

upkeep.

Predictive maintenance

Equipment Condition evaluated periodically and maintenance

carried out.

TOTAL PRODUCTIVE MAINTENANCE

TPM is a partnership between the maintenance and

production organization to improve product quality, reduce waste,

reduce cost, increase equipment availability and improve maintenance

state.

Total productive maintenance (TPM) is the systematic execution of

maintenance by all employees through small group activities

The dual goals of TPM are zero breakdowns and zero defects.

TPM improves equipment efficiency rates and reduces cost. It also

minimizes inventory costs associated with spare parts.

TPM is concerned with the fundamental rethink of business processes to

achieve improvements in cost, quality, speed etc.

OBJECTIVES OF TPM

1. To improve equipment effectiveness.

2. To achieve autonomous maintenance

3. To plan maintenance

4. To train all staff in relevant maintenance skills

5. To Zero Breakdowns

WHAT ARE THE 6 BIG LOSSES?

1. Breakdown - Long interruptions, expensive repairs

2. Setup and changeover - Taking much longer that needed

3. Idling and minor stoppages - Hard to quantify, add up to big losses

4. Reduced speed -Equipment cycle times have gradually

deteriorated

5. Defects and rework - Quality losses and unhappy customers

6. Start up losses - Too long to get to steady state after a

Change.


93

CONCEPT OF TPM

TPM is that everyone from the operator to top management is responsible for

maintenance activities

Under TPM operators no longer limit themselves to simply using the

machine and calling the technician when a breakdown occurs. Operators

can inspect , clean, lubricate, adjust and even perform simple calibrations

on their respective equipment.

In TPM s management should also show interest in data concerning

equipment uptime, utilization and efficiency.

Everyone understands that zero breakdowns, zero defects and maximum

productivity are goals to be shared by everyone under TPM

TPM cannot implement overnight. Normally it takes an organization at least

two years to set and effective TPM system in place.

Activities carried out in small teams with specific tasks. Every level in the

overall organizations must be represented by a team or more

TWELVE STEPS FOR TPM DEVELOPMENT

1. Announce top management about the decision to introduce TPM

2. Launch education and campaign to introduce TPM

3. Create organization to promote teams

4. Establish basic TPM policies and goals

5. Formulate basic TPM policies and goals

6. Hold TPM kick off

7. Improve effectiveness of each piece of equipment

8. Develop an autonomous maintenance programme

9. Develop a scheduled maintenance program for the maintenance

department.

10. Conduct training to improve operation and maintenance skills

11. Develop early equipment management program

12. Perfect TPM implementation

BENEFITS OF TPM

Increased equipment productivity

Improved equipment reliability

Reduced equipment downtime

Increased plant capacity

Extended machine line.

Lower maintenance and production costs


94

Approaching zero equipment – caused defects

Improved teamwork between operators and maintenance people.

Enhanced job satisfaction

Improved return on investment

Improved safety

QUALITY COSTS

1. PREVENTION COST

Marketing / Customer / User.

Product / Service / Design Development.

Purchasing

Operations (Manufacturing or Service)

Quality Administration.

2. APPRAISAL COST

Purchasing Appraisal Costs.

Operations Appraisal Costs

External Appraisal Costs

Review of Test and Inspection Data

Miscellaneous Quality Evaluations

3. INTERNAL FAILURE COST

Product or Service Design Failure Costs (Internal)

Purchasing Failure Costs

Operations (Product or Service) Failure Costs

4. EXTERNAL FAILURE COST

Complaint Investigations of Customer or User Service

Returned Goods

Retrofit and Recall Costs

Warranty Claims

Liability Costs

Penalties

Customer or User Goodwill

Lost Sales

QUALITY PLANNING

Planning in the field of quality control must be geared fundamentally for

delivering satisfactory product quality to the customer at minimum cost. These

objectives are realized only by carefully planning the necessary quality procedures

which establish the required operational detail.

Establishing quality goals

Identify the customers


95

Determine the customer‘s needs Develop product features which response to the customers needs Develop processes that are able to produce the product features Establish quality controls Transfer the plans to the operating forces

QUALITY COSTS

The cost of poor quality can add to the other costs used in decision making,

such as maintenance, production, design, inspection, sales and other activities.

This costs is no different than other costs. It can be programmed, budgeted,

measured and analyzed to help in attaining the objectives for better quality and

customer satisfaction at less cost. A reduction in these costs (quality costs) will

lead to increased profit.

Prevention Cost

Cost incurred to avoid or minimize the failures

The various elements of prevention cost are given below.

1. Marketing / Customer / User cost.

2. Product/ service / Design Development cost.

3. Purchasing cost

4. Operations costs ( manufacturing or service)

5. Quality administration costs.

Appraisal costs

Costs involved in determining the degree of conformance

to the quality requirements

These are the costs incurred by the organization for inspection and testing of

the product in production process itself. In its widest sense, this cost includes all

the checks done by people who are not titled inspectors. For example machinists,

tools setters, supervisors etc routinely inspect the production process to ensure

quality and this is the appraisal cost.

1. Purchasing appraisal cost

2. Operations (manufacturing or service) appraisal costs.

3. External appraisal costs.

4. Review of test and inspection data cost.


96

5. Checking labour cost.

6. Setup for test or inspection.

7. Laboratory acceptance testing cost.

8. Test and inspection of purchased material cost.

9. Quality audit cost.

10. Outside endorsement.

11. Fields testing costs.

Internal failure costs

These are the costs incurred within the manufacturing

organization. Costs associated with defects found before the customer

receives the product or service. Typically these costs include scrap, rework

or corrective operations etc.

1. Product or service design failure cost – internal

2. Purchasing failure costs.

3. Operation (product or service) failure costs.

4. Scrap costs

5. Rework cost.

6. Factory contact engineering cost.

External failure costs

These are the costs incurred by the manufacturer after the

product has been delivered to the customer. For example, cost of products

or services rejected by the customer or recalled because of some defects

will fall under this category.

1. Returned goods costs.

2. Product recall costs.

3. Complaints in warranty costs.

4. Complaints out of warranty costs.

5. Product liability costs.

6. Product service cost.

7. Penalties.

8. Customer goodwill

9. Lost sales cost.


97

PERFORMANCE MEASURES

Performance measures are used to assess the performance of all those involved in

the process. Measures play an important role in the success or failure of an

organization. An organization without performance measures is like a pilot of plane

trying to locate the position and moving forward without proper instruments.

Basic Concepts

Performance measures are used to carry out one or more of the following objectives. 1. Identifying the business trends

2. To identify the processes that requires improvement 3. Determine the profit and loss due to a process 4. To calculate the gap between the actual and desired performance. 5. To gather information for assessing the individuals and teams. 6. To aid the decision making process with correct data and information. 7. To assess the performance of the company. TYPICAL MEASUREMENTS

S: No Element Performance Measures

01 Human

Resources

Absenteeism, employee satisfaction, training cost and

time per employee, number of accidents due to an

employee, number of complaints about an employee,

number of suggestions received from each employee,

etc.

02 End User

Satisfaction

Number of complaints received and rectified,

time taken to solve the problems,

customer satisfaction index, etc.

03 Manufacturing

Process

Process capability of each machine, over the time ,

usage of SPC charts, machine downtime etc,

04 R&D Development time for a product development Process, number of constructive improvements made in an year by the department, expenditure, etc

05 Suppliers

Performance

Quality of delivered goods, promptness, service etc.,


98

06 Marketing

Expenditure on training the sales force, new customers list, lost customers list, number of product enquiry calls per week and successful sales per week, etc,

07 Administration Profit per employee, number of errors made in the

business transactions per day etc.,

UNIT V QUALITY SYSTEMS

International Organization for Standardization (ISO) was established in 1946 in

Geneva, Switzerland.

International Organization for Standardization (ISO) define the term quality

systems as follows:

―The quality systems are the organizational structures, responsibilities, procedures,

processes and resources for implementing quality management.‖

ISO -9000 and ISO- 14000 The ISO 9000 family primarily concerned with ―quality Management‖. This means

what the organization does to fulfill.

- The customers quality requirements - Applicable regulatory requirements, while aiming to - Enhance customer satisfaction and - Achieve continual improvements of its performance in pursuit of these

objectives. The ISO 14000 family primarily concerned with ―environmental management‖. This

means what organization does to?

- Minimize harmful effects on the effect on the environment caused by it activities, and to

- Achieve continual improvement of its environmental performance.

Reasons for implementing a Quality System that conforms to an ISO standard

Improved employee involvement (average gain is 100%)

Improved housekeeping (average gain is 140%)

Improved decision making based on facts and data (average gain is (5%)

Improved customer satisfaction (average gain is 55%)

Improved safe working (gain is 45%)

Reduced customer complaints (about40%)

Reduced inspection efforts (about 45%)

Reduced quality cost (about 50%)


99

SELECTION OF ISO STANDARDS:

An organization can use the decision tree for selection of ISO standards

ELEMENTS OF CLAUSES OF ISO 9000:

(QUALITY SYSTEM REQUIREMENTS):

The elements of ISO 9000 must be understood for their successful

implementation in an organization. The following are the twenty elements of quality

managements.

1. MANAGEMENT RESPONSIBILITY:

The management should define and documents its quality policy and objectives.

The responsibility, authority and interrelations of all employees should be clearly defined.


100

The management should provide adequate resources for internal verification activities.

The management should nominate management representative such as quality director or quality manager to coordinate the quality activity.

The management must periodically review the effectiveness of the quality system and keep record of the same.

2. QUALITY SYSTEM:

The organization should document, establish and maintain a quality system.

The documentation of quality system includes preparation of quality manual, procedures, process work instructions, workmanship standards, drawing specifications and relevant quality records.

3. CONTRACT REVIEW:

This element states that the customer‘s requirements (the contract) should be formally reviewed to ensure that the supplier is capable in terms of both technical and organizational requirements.

The records of those reviews should be properly maintained.

4. DESIGN CONTROL:

This element requires that the design process should be documented and planned correctly.

Both the design inputs(like specifications) and the design outputs(like drawings) should be identified and documented.

The supplier shall review the designs to ensure that the outputs meet the input requirements and that any changes to the designs are properly controlled.

5. DOCUMENT CONTROL:

The ISO 9000 quality management system is totally documented system.

This element explains the method of documentation, approval and issue of all quality documents.

The various documents include quality manual, quality system procedures, work instructions quality plans and quality records.

6. PURCHASING:

This clause addresses relating to assessment of subcontractor, purchasing data, verification of purchased components, materials and procedures there of are specified.

The suppliers must have4 procedures for maintaining list of approved sub contractors, deleting sub contracting etc.

This clause on purchasing/sub-contracting is applicable to raw materials, purchased components, sub-contracted components which are likely to affect the product.

7. PURCHASER SUPPLIED PRODUCT:

(Control of customer supplied product)


101

In many situations the customer supplies various products. For example, in construction work, the customer may supply cement and steel. This clause explains how a system has to be laid down for inspection, storage and usage of customer-supplied products.

This also lays down the responsibility for preventing damage or loss and the same to be recorded and reported to the customer.

8. PRODUCT IDENTIFICATION AND TRACEABILTY:

This clause lays down the requirement for the product or services to be correctly identified throughout the production process.

Trace ability means the method by which the item can be identified. 9. PROCESS CONTROL:

This clause specifies that the supplier shall identify and plan the production and installation processes, which directly affect the quality.

According to this clause, each process has to be performed under controlled conditions. Controlled conditions mean the following:

i. Quality system procedure (QSP) to describe how each process is carried out.

ii. Compliance with relevant codes/ standards and quality plans iii. Monitoring and control of specified process parameters and

product characteristics. iv. Approval of process a specified in quality system. v. Maintaining workmanship standards in terms of representative

samples, sketches, photographs, details write ups etc., vi. Continuous monitoring to ensure continuing process

capability. 10. INSPECTIONS AND TESTING

Receiving inspection and testing – to ensure the quality while at the time of receiving the products from purchaser.

In-process inspection and testing – to ensure the quality at the time of processing of the product/ services

Final inspection and testing – to ensure the quality at final stage (Finished product) of the product/ services.

11. INSPECTION, MEASURING AND TESTING EQUIPMENT (IMTE)

Identify the measurements to be made and the accuracy required.

Selecting appropriate inspection, measuring and test equipments


102

Calibrating the measuring equipments and test devices.

Maintaining calibration records for inspection , measuring and test equipments.

12. INSPECTION AND TEST STATUS

This clause explains how the systems should be laid down to indicate that the product has been inspected and tested and conforms or does not conform to specifications at various stages or production.

13. CONTROL OF NON CONFORMING PRODUCTS

This clause lays down how action should be taken that does not conform to specifications.

This control includes identification, documentation, evaluation, segregation and disposal of non-conforming product.

This part of the standard is sometimes referred to as the calibration section.

14. CORRECTIVE AND PREVENTIVE ACTION

This clause explains the systems for removing actual and potential non-conformities.

Corrective action includes effective handling of customer complaints investigation of the cause of non-conformity and its removal.

Prevention action is taken to ensure that non-conformity does not occur. This is done by continuous study and analysis of various sources of information.

15. HANDLING, STORAGE, PACKING PRESERVATION AND DELIVERY

This clause explains how the supplier ensures that there is no degradation of quality of product due to handling, storage, preservation, and delivery at different stages of production.

16. CONTROL OF QUALTIY RECORDS.

The records of the performance of the quality system (contract review, sub contractor assessment, test records, calibration data etc.,) should be established and maintained.

These records are essential for assessment of the effectiveness of the quality system by the internal/ external certificiaiton audits and management reviews.

17. INTERNAL QUALITY AUDIT

This clause describes the self-evaluation mechanism. These are carried out by the suppliers own people trained for the purpose.

These audits are used to verify the effectiveness of the quality system.


103

The audit result should be documented and reported to the concerned mangers to take any identified corrective action.

18. TRAINING

This clause describes how training needs of personnel are identified, organized, implemented and monitored.

Appropriate records of all training should be maintained.

Training pertains to professional training as well as training for maintenance and implementation of quality system.

19. SERVICING

This clause explains how servicing will be planned and executed wherever it is a specified requirement.

Record of service provided should.

20. STATISTICAL TECHNIQUES

This clause describes that the organization has to identify the most useful statistical techniques (such as pareto analysis, histograms, PERT, etc.,) for its operations.

IMPLEMENT OF QUALITY SYSTEMS (STEPS TO REGISTRATION)

1. Top management commitment. 2. Appoint the management representative 3. Awareness 4. Appoint an implementation team. 5. Training 6. Time schedule 7. Select element owners. 8. Review the present system 9. Write the documents 10. Install the new systems 11. Internal Audit

12. Management Review 13. Pre assessment 14. Registration 15. Award of ISO 9000 certificate.

DOCUMENTS TO BE PREPARED

1. Quality Policy Manual. 2. Quality System procedures (QSPs) 3. Work Instructions (Wis) 4. Records/ Formats/ Forms


104

the above system documentation can be viewed as a hierarchy containing four

levels as shown in the below diagram.

WHY Define WHAT will be done

Stated once

Policy

WHO

Procedures WHEN

WHERE

HOW Work instructions

Or practices

Records or proof Evidence

1. QUALITY POLICY MANUAL

Quality policy manual is the first level of documentation.

This is the documentation that defines ―what will be done ― and ―Why‖.

The policy manual communicates the quality policy and objectives of an organization.

This manual is a living document. Because it reflects the current system being followed in the organization.

2. QUALITY SYSTEM PROCEDURES

These procedures describe the methods that will be used to implement and perform the stated polices.

These procedures define who should perform specific tasks, when the task should be done, and where documentation will be made.


105

These procedures are confidential documents of the organization and therefore need not be revealed to outsiders.

3. WORK INSTRUCTONS

It gives details of flow individual work processes (for example, machining welding, casting etc.,) are carried out within a company.

It also specify how the work should be done; who should undertake the work and what records are to be maintained.

The work instructions should be written by the employee who performs the task.

Glossary of Total Quality Management Terms

BPM Stands for Business Process Management. BPM is a business improvement strategy based on

documenting, analyzing, and redesigning processes for greater performance.

DMAIC A Six Sigma quality improvement strategy described by five phases: Define, Measure, Analyze,

Improve, and Control. See also DMADV.

DMADV A Six Sigma strategy divided into five phases: Define, Measure, Analyze, Design, and Verify. See also

DMAIC.

ERP Stands for Enterprise Resource Planning. ERP refers to software packages that attempt to

consolidate all the information flowing through the company from finance to human resources. ERP

allows companies to standardize their data, streamline their analysis process, and manage long-term

business planning with greater ease.

IDEF


106

Stands for ICAM Definition Method or Integration Definition Method. IDEF is a modeling

methodology developed by the U.S. Air Force to help programmers design complicated software

systems. IDEF can be divided into five separate modeling methods: 1.IDEF0 (Function Modeling)

2.IDEF1X (Data Modeling)

3. IDEF2 (Simulation Model Design)

4. IDEF3 (Process Description Capture)

5. IDEF4 (Object-Oriented Design).

ISO Series of standards and documented technical specifications used as guidelines to ensure that

products, processes, and services are manufactured consistently. European countries established the

ISO organization as a way to certify the quality control systems of companies across international

boundaries.

JIT Stands for Just in Time. Just in time is the cornerstone philosophy of Lean Manufacturing and MRP.

Using the just-in-time philosophy, raw materials arrive no earlier than they are required to reduce

costs and inefficiencies associated with large inventory.

Kaizen A Japanese quality improvement philosophy named after the phrase "continuous improvement."

Kaizen aims to create a quality-oriented culture that permeates all levels of the business from

manufacturing to management and aims to improve the organization in small increments from the

ground up.

Kaizen is the father of many quality improvement procedures including: suggestion systems,

automation, small group activities, Kanban, just-in-time, Zero defects, total productive maintenance,

total quality control, and more.

Lean Manufacturing

A quality methodology focused on eliminating all waste from the manufacturing process. Lean

manufacturing aims to cut down on processing times and inventory by reducing human involvement

and by streamlining the supply chain. See also Supply Chain Management.

MRP Stands for Material Requirements Planning. MRP aims to increase manufacturing efficiency by

managing the production schedule, reducing inventory, increasing cash flow, and delivering products

in a timely manner. ERP is a technical subset of MRP.


107

QFD Stands for Quality Function Deployment. The goal of QFD is to prioritize and translate customer

needs into technical requirements for engineers, and deliver a quality product or service that aims to

satisfy the customer.

Six Sigma A statistically driven quality management methodology that aims to reduce defects and variation in

a business process. In fact, the goal of any Six Sigma initiative is to reduce to the number of defects

to 3.4 per one million opportunities thereby increasing customer satisfaction and business profits.

Six Sigma was first developed and implemented by Motorola in the 1980s. In 1996 GE announced it

saved $1 Billion by using the Six Sigma methodology. Now a lot of industry leaders have adopted the

Six Sigma methodology as their quality improvement method of choice.

Supply Chain Management

Managing the movement of goods from raw materials to the finished product delivered to

customers. Supply Chain Management aims to reduce operating costs, lead times, and inventory and

increase the speed of delivery, product availability, and customer satisfaction.

TQM Stands for Total Quality Management. It is a philosophy that embodies all processes and systems

that aim to improve efficiency and quality throughout the entire organization.

Zero Defects A practice that aims to reduce defects as a way to directly increase profits. The concept of zero

defects lead to the development of Six Sigma in the 1980s.

PART-A QUESTIONS WITH

ANSWERS

Unit I

1. Define Total Quality? TQM is an enhancement to the traditional way of doing business. It is the art of

managing the whole to achieve excellence. It is defined both a philosophy and a set

of guiding principles that represent the foundation of a continuously improving

organization

2. Define Quality? Quality = Performance x Expectations

3. What are the Dimensions of Quality? Performance


108

Features

Conformance

Reliability

Durability

Service

Response

Aesthetics

Reputation.

4. Give the Basic Concepts of TQM? A committed and involved management to provide long- term top- to-

bottom organizational support. An unwavering focuses on the customer, both

internally and externally. Effective involvement and utilization of the entire work

force. Continuous improvement of the business and production process. Treating

suppliers as partners. Establish performance measures for the processes.

5. State Deming Philosophy? Create and publish the aims and purposes of the organization.

Learn the new philosophy.Understand the purpose of inspection.

Stop awarding business based on price alone. Improve constantly and forever the

system. Institute training. Teach and institute leadership. Drive out fear, Create trust

and Create a climate for innovation. Optimize the efforts of teams, groups and staff

areas. Eliminate exhortations for the work force. Eliminate numerical quotes for the work force.Eliminate management by objective. Remove barriers that rob people of

pride of workmanship. Encourage education and self- improvement for everyone.

Take action for accomplish the transformation.

6. Give the Principles of TQM? 1. Constancy of purpose: short range and long range objectives aligned

2. Identify the customer(s); Customer orientation 3. Identification of internal and external customers

4. Continuous improvement

5. Workflow as customer transactions


109

6. Empower front- line worker as leader

7. Quality is everybody’s business

8. Customer orientation to child care services, a marketing perspective 9. Barriers that exist to a customer orientation

7. Give the Obstacles associated with TQM Implementation? I. Lack of management commitment Inability to change organizational culture

II. Improper planning Lack of continuous training and education III. Incompatible organizational structure and isolated individuals and

IV. departments Ineffective measurement techniques and lack of access to data

and

V. results. Paying inadequate attention to internal and external customers.

VI. Inadequate use of empowerment and teamwork.

8. Give the Analysis Techniques for Quality Costs? I. Trend Analysis

II. Pareto Analysis

9. Define Quality Costs? Quality Costs are defined as those costs associated with the nonachievement of

product or service quality as defined by the requirements established by the

organization and its contracts with customers and society.

10. Give the primary categories of Quality cost? I. Preventive cost category

II. Appraisal cost category

III. Internal failure cost category

IV. External failure cost category

11. Give the sub-elements of Preventive cost category? I. Marketing/Customer/User

II. Product/Service/Design development

III. Purchasing IV. Operations/

V. Quality Administration VI. Other Prevention Costs

12. Give the sub-elements of Appraisal cost category? I. Purchasing appraisal cost

II. Operations appraisal cost

III. External appraisal cost IV. Review of test and application data

V. Miscellaneous quality evaluations


110

13. Give the sub-elements of Internal failure cost category? i. Product or Service Design costs (Internal)

ii. Purchasing failure costs

iii. Operations failure costs


111

14. Give the sub-elements of External failure cost category? I. Complaint investigations of customer or user service

II. Returned goods

III. Retrofit and recall costs

IV. Warranty claims V. Liability costs

VI. Penalties VII. Customer or user goodwill

VIII. Lost sales

IX. Other external failure costs

15. Give the typical cost bases? I. Labor

II. Production

III. Unit IV. Sales

16. How will you determine the optimum cost? a. Make comparison with other organizations

b. Optimize the individual categories

c. Analyze the relationships among the cost categories

17. State the Quality Improvement Strategy? Reduce failure costs by problem solving Invest in the “right” prevention

activities

Reduce appraisal costs where appropriate and in a statistically sound manner

Continuously evaluate and redirect the prevention effort to gain further quality

improvement.

18. Define Quality Planning? A quality plan sets out the desired product qualities and how these are

assessed and define the most significant quality attributes. It should define the quality

assessment process. It should set out which organizational standards should be

applied and, if necessary, define new standards.

19. Give the Objectives of TQM? a. To develop a conceptual understanding of the basic principles and methods

associated with TQM;

b. To develop an understanding of how these principles and methods have

been put into effect in a variety of organizations;

c.To develop an understanding of the relationship between TQM principles and the

theories and models studied in traditional management;


112

d. To do the right things, right the first time, every time.


113

20. Give the Quality Hierarchy? 1. Inspection

2. Quality Control (QC) 3. Quality Assurance (QA)

4. Total Quality Management

Inspect products.

Detection

Finding &

Fixing Mistakes. 21. What is needed for a leader to be effective?

To be effective, a leader needs to know and understand the following: People, paradoxically, need security and independence at the same time. People are

sensitive to external rewards and punishments and yet are also strongly self-

motivated. People like to hear a kind word of praise People can process only a few

facts at a time; thus, a leader needs to keep things simple. People trust their gut

reaction more than statistical data People distrust a leader’s rhetoric if the words are

inconsistent with the leader’s actions.

22. What is the important role of senior management? Listening to internal and external customers and suppliers through visits,

focus groups and surveys. Communication. To drive fear out of the organization,

break down barriers, remove system roadblocks, anticipate and minimize resistance

to change and in general, change the culture.

23. What are the general duties of a quality council? i. Develop, with input from all personnel, the core values, vision statement,

mission statement, and quality policy statement. ii. Develop the strategic long-

term

plan with goals and the annual quality improvement program with objectives.

iii. Create the total education and training plan.

iv. Determine and continually monitor the cost of poor quality.

v. Determine the performance measures for the organization, approve those for

the functional areas, and monitor them.

vi. Continually, determine those projects that improve the processes, particularly

those that affect external and internal customer satisfaction.

vii. Establish multifunctional project and departmental or work group teams and

monitor their progress.

viii. Establish or revise the recognition and reward system to account for the new

way of doing business.


114

24. What does a typical meeting agenda contain after establishing the TQM? Progress report on teams

Customer satisfaction report


115

Progress on meeting goals

New project teams

Recognition dinner

Benchmarking report

Unit II

25. What are the various quality statements? Vision Statement

Mission Statement

Quality Policy Statement

26. Give the basic steps to strategic quality planning? I. Customer needs

II. Customer positioning

III. Predict the future IV. Gap analysis

V. Closing the gap VI. Alignment

VII. Implementation

27. What is a quality policy? The Quality Policy is a guide for everyone in the organization as to how they

should provide products and service to the customers. The common characteristics

are Quality is first among equals. Meet the needs of the internal and external

customers. Equal or exceed the competition. Continually improve the quality. Include business and production practices. Utilize the entire work force.

28. What is a mission statement? The mission statement answers the following questions: who we are, who are the

customers, what we do, and how we do it.

29. What is a vision statement? The vision statement is a declaration of what an organization should look like five to

ten years in a future.

30. What are the important factors that influenced purchases? I. Performance

II. Features

III. Service

IV. Warranty

V. Price

VI. Reputation

31. Give the need for a feedback in an organization? Discover customer dissatisfaction. Discover relative priorities of quality.


116

Compare performance with the competition. Identify customer’s needs. Determine

opportunities for improvement.


117

32. List the tools used for feedback? Comment cards

Surveys Focus groups

Toll- free telephone lines Customer visits

Report cards

The internet

Employee feedback

American Customer Satisfaction Index

33. What are the activities to be done using customer complaints? a. Investigate customer’s experience by actively soliciting feedback, both

positive and negative, and then acting on it promptly.

b. Develop procedures for complaint resolution that include empowering front-

line personnel.

c. Analyze complaints, but understand that complaints that do not always fit into

neat categories.

d. Work to identify process and material variations and then eliminate the root

cause. “More inspection” is not corrective action.

e. When a survey response is received, a senior manager should contact the

customer and strive to resolve the concern.

f. Establish customer satisfaction measures and constantly monitor them.

g. Communicate complaint information, as well as the results of all

investigations and solutions, to all people in the organization.

h. Provide a monthly complain report to the quality council for their evaluation

and, if needed, the assignment of process improvement teams.

i. Identify customer’s expectations beforehand rather than afterward through

complaint analysis.

34. What are the elements of customer service? a. Organization b. Customer care

c. Communication d. Front- line people

e. Leadership

35. Define customer retention? Customer retention represents the activities that produce the necessary

customer satisfaction that creates customer loyalty, which actually improves the

bottom line. It is the nexus between the customer satisfaction and the bottom line.

36. Define Employee Involvement? Employee involvement is a means to better meet the organization’s goals


118

for quality and productivity at all levels of an organization.

37. State Maslow’s Hierarchy of Needs? Level 1 : Survival


119

Level 2 : Security

Level 3 : Social

Level 4 : Esteem

Level 5 : Self-actualization

38. State Frederick Herzberg’s Two- factor theory? Herzberg found that people were motivated by recognition, responsibility,

achievement and the work itself.

39. What does an employee want? I. Interesting work

II. Appreciation

III. Involvement

IV. Job security

V. Good pay

VI. Promotion/growth

VII. Good working conditions

VIII. Loyalty to employees IX. Help with personal problems

X. Tactful discipline

41. Define Empowerment? Empowerment means invest people with authority. Its purpose is to tap the

Enormous reservoir of creativity and potential contribution that lies within every

worker at all levels. Empowerment is an environment in which people have the

ability, the confidence, and the commitment to take the responsibility and ownership to improve the process and to initiate the necessary steps to satisfy customer

requirements within well-defined boundaries in order to achieve organizational

values and goals.

42. What are the three conditions necessary to create the empowered

environment? i. Everyone must understand the need for change.

ii. The system needs to change for the new paradigm

iii.The organization must enable its employees.

43. What are the types of teams? i. Process improvement team

ii.Cross- functional team

iii. Natural work teams

iv.Self- directed/self- managed work teams

44. What are the characteristics of successful teams? a. Sponsor


120

b. Team charter

c. Team composition

d. Training


121

e. Ground rules

f. Clear objectives

g. Accountability

h. Well-defined decision procedures

i. Resources

j. Trust

k. Effective problem solving

l. Open communications

m. Appropriate leadership

n. Balanced participation

o. Cohesiveness

45. What are the decision- making methods? a) Nondecision

b) Unilateral decision

c) Handclasp decision

d) Minority- rule decision

e) Majority- rule decision

f) Consensus

46. What are the stages of team development? i. Forming

ii. Storming

iii. Norming

iv. Performing

v. Adjourning

47. Give some common team problems? d. Floundering e. Overbearing participants

f. Dominating participants

a. Reluctant participants

b. Unquestioned acceptance of opinions as facts c. Rush to accomplish

d. Attribution

e. Discounts and “plops” f. Wanderlust : digression and tangents

g. Feuding team members

48. What are the common barriers to team progress?


122

i. Insufficient training ii. Incompatible rewards and compensation iii. First- line supervisor resistance

iv. Lack of planning


v. Lack of management support

vi. Access to information systems

vii. Lack of union support

49. Give the steps involved in training process? 1st. Make everyone aware of what the training is all about.

2nd. Get acceptance.

3rd. Adapt the program. 4th. Adapt to what has been agreed upon.

50. Define Recognition and Reward? Recognition is a form of employee motivation in which the organization

publicly acknowledges the positive contributions an individual or team has made to

the success of the organization. Reward is something tangible to promote desirable

behavior. Recognition and reward go together to form a system for letting people

know they are valuable members of the organization.

51. What are the types of appraisal formats? i. Ranking

ii. Narrative

iii. Graphic

iv. Forced choice 52. What are the benefits of employee involvement?

Employee Involvement improves quality and increases productivity because

Employees make better decisions using their expert knowledge of the

process.

Employees are more likely to implement and support decisions they had a part

in making.

Employees are better able to spot and pinpoint areas for improvement.

Employees are better able to take immediate corrective action. Employee involvement reduces labor/management hassle by more effective

Communications and cooperation.

Employee involvement increases morale by creating a feeling of belonging to

the organization.

Employees are better able to accept change because they control the work

Environment.

Employees have an increased commitment to unit goals because they are

involved.

53. What are the basic ways for a continuous process improvement? Reduce resources

Reduce errors Meet or exceed expectations of downstream customers

Make the process safer


Make the process more satisfying to the person doing it.

54. What are the three components of the Juran Trilogy? Planning

Control Improvement

55. What are the steps in the PDSA cycle? The basic Plan-Do-Study-Act is an effective improvement technique.

I. Plan carefully what is to be done

II. Carry out the plan

III. Study the results IV. Act on the results by identifying what worked as planned and what

didn’t.

56. What are the phases of a Continuous Process Improvement Cycle? a) Identify the opportunity

b) Analyze the process c) Develop the optimal solutions

d) Implement

e) Study the results

f) Standardize the solution

g) Plan for the future

57. Define 5S? 5S Philosophy focuses on effective work place organization and standardized work

procedures. 5S simplifies your work environment, reduceswaste and non- value

activity while improving quality efficiency and safety. Sort – (Seiri) the first S

focuses on eliminating unnecessary items from the workplace.

Set In Order (Seiton) is the second of the 5Ss and focuses on efficient and effective

storage methods. Shine: (Seiso) Once you have eliminated the clutter and junk that

has been clogging your work areas and identified and located the necessary items, the

next step is to thoroughly clean the work area. Standardize: (Seiketsu) Once the

first three 5S’s have been implemented, you should concentrate on standardizing best

practice in your work area. Sustain: (Shitsuke) This is by far the most difficult S to

implement and achieve. Once fully implemented, the 5S process can increase

morale, create positive impressions on customers, and increase efficiency and

organization.

58. What is a Kaizen? Kaizen is a Japanese word for the philosophy that defines management’s

role in continuously encouraging and implementing small improvements involving

everyone. It is the process of continuous improvement in small increments that make

the process more efficient, effective, under control and adaptable.

64. What are the characteristics used to measure the performance of a


i. Long-term commitment

ii. Trust

iii. Shared vision

60. What are the three types of sourcing? a) Sole sourcing

b) Multiple sourcing

c) Single sourcing

61. What are the ten conditions for the selection and evaluation of suppliers? I. The supplier understands and appreciates the management philosophy of the

organization.

II. The supplier has a stable management system.

III. The supplier maintains high technical standards and has the capability of

dealing with future technological innovations.

IV. The supplier can supply precisely those raw materials and parts required by

the purchaser, and those supplied meet the quality specifications.

V. The supplier has the capability to produce the amount of production needed or

can attain that capability.

VI. There is no danger of the supplier breaching corporate secrets.

VII. The price is right and the delivery dates can be met. In addition, the supplier is

easily accessible in terms of transportation and communication.

VIII. The supplier is sincere in implementing the contract provisions.

IX. The supplier has an effective quality system and improvement program such

as ISO/QS 9000.

X. The supplier has a track record of customer satisfaction and organization Credibility.

62. What are the four phases of inspection?

i. 100% inspection

ii. Sampling

iii. Audit iv. Identity check

63. What are the objectives of Performance measures?

i. Establish baseline measures and reveal trends.

ii. Determine which processes need to be improved. iii.

Indicate process gains and losses.

iv. Compare goals with actual performance.

v. Provide information for individual and team evaluation. vi.

Provide information to make informed decisions.

vii. Determine the overall performance of the organization.


particular process?

i. Quantity

ii. Cost iii.

Time

iv. Accuracy v.

Function vi.

Service

vii. Aesthetics 65. Give the six basic techniques for presenting performance measures?

a) Time series graph

b) Control chart

c) Capability index

d) Taguchi’s Loss Function

e) Cost of poor quality

f) Malcolm Baldrige National Quality Award

Unit III 66. Give the seven tools of quality?

i. Pareto Diagram

ii. Process Flow Diagram

iii. Cause-and- Effect Diagram iv.

Check Sheets

v. Histogram

vi. Control Charts

vii. Scatter Diagrams 67. Define Statistics?

Statistics is defined as the science that deals with the collection,

tabulation,analysis, interpretation, and presentation of quantitative data. 68. What is a measure of central tendency?

A measure of central tendency of a distribution is a numerical value that

describes the central position of the data or how the data tend to build up in the center. 69. What is Measures of dispersion?

Measures of dispersion describe how the data are spread out or scattered on

each side of the central value. The measures of dispersion used are range and standard

deviation.


70. What is a normal curve?

The normal curve is a symmetrical, unimodal, bell-shaped distribution withthe

mean, median and mode having the same value. 71. What is the use of the control chart?

The control chart is used to keep a continuing record of a particular quality

characteristic. It is a picture of process over time. 72. Give the objectives of the attribute charts?

i. Determine the average quality level.

ii. Bring to the attention of management any changes in the average. iii.

Improve the product quality.

iv. Evaluate the quality performance of operating and management personnel. v. Determine

acceptance criteria of a product before shipment to the customer. 73. Define Six Sigma Problem Solving Method?

Define - improvement opportunity with an emphasis on increasing customer

satisfaction.

Measure - determine process capability (Cp/ Cpk) & dpmo

Analyze - identify the vital few process input variables that affect key product

output variables (“Finding the knobs”).

Improve - Make changes to process settings, redesign processes, etc. to reduce the

number of defects of key output variables.

Control - Implement process control plans, install real- time process

monitoring tools,standardize processes to maintain levels. 74. What are the new seven management tools?

i. Affinity Diagram

ii. Interrelationship Digraph iii.

Tree Diagram

iv. Matrix Diagram

v. Prioritization Matrices

vi. Process Decision Program Chart vii.

Activity Network diagram

Unit IV 75. Define Benchmarking?

Benchmarking is a systematic method by which organizations can measure

themselves against the best industry practices. The essence of benchmarking is the process

of borrowing ideas and adapting them to gain competitive advantage. It is a tool for

continuous improvement.


76. Enumerate the steps to benchmark?

a) Decide what to benchmark

b) Understand current performance c)

Plan

d) Study others

e) Learn from the data f)

Use the findings

77. What are the types of benchmarking?

i. Internal

ii. Competitive

iii. Process

78. What is a QFD?

Quality Function Deployment is a planning tool used to fulfill

customer expectations. It is a disciplined approach to product design, engineering,

and production and provides in- depth evaluation of a product.

79. What are the benefits of QFD?

i. Customer driven

ii. Reduces implementation time iii.

Promotes teamwork

iv. Provides documentation

80. What are the steps required to construct an affinity diagram?

i. Phrase the objective

ii. Record all responses iii.

Group the responses

iv. Organize groups in an affinity diagram

81. What are the parts of house of quality?

i. Customer requirements

ii. Prioritized customer requirements iii.

Technical descriptors

iv. Prioritized technical descriptors

v. Relationship between requirements and descriptors vi.

Interrelationship between technical descriptors

82. How will you build a house of quality?

a) List customer requirements

b) List technical descriptors

c) Develop a relationship matrix between WHATs and HOWs\

d) Develop an interrelationship matrix between HOWs e)

Competitive assessments


f) Develop prioritized customer requirements g)

Develop prioritized technical descriptors

83. Define FMEA?

Failure Mode Effect Analysis is an analytical technique that combines the

technology and experience of people in identifying foreseeable failure modes of a product

or process and planning for its elimination.

84. What are the stages of FMEA?

1. Specifying possibilities

a. Functions

b. Possible failure modes

c. Root causes

d. Effects e Detection/Prevention

2. Quantifying risk

a. Probability of cause

b. Severity of effect

. Effectiveness of control to prevent cause

d. Risk priority number

3. Correcting high risk causes

a. Prioritizing work

b. Detailed action c. Assigning action responsibility

d. Check points on completion

4. Revaluation of risk

85. What are the goals of TPM?

The overall goals of Total Productive Maintenance, which is an

extension of TQM are

i. Maintaining and improving equipment capacity

ii. Maintaining equipment for life

iii. Using support from all areas of the operation

iv. Encouraging input from all employees

v. Using teams for continuous improvement

86. Give the seven basic steps to get an organization started toward TPM? a) Management learns the new philosophy b) Management promotes the new philosophy c) Training is funded and developed for everyone in the organization

d) Areas of needed improvement are identified

e) Performance goals are formulated

f) An implementation plan is developed

g) Autonomous work groups are established

87. What are the major loss areas? i. Planned downtime ii. Unplanned downtime iii. Idling and minor stoppages

iv. Slow-downs


v. Process nonconformities

vi. Scrap

Unit V

88. Give the ISO 9000 Series of Standards? i. ISO 9000, “Quality Management and Quality Assurance Standards Guidelines for Selection and Use”.

ii. ISO 9001, “Quality Systems – Model for Quality Assurance in Design,

Development, Production, Installation & Servicing”.

iii. ISO 9002, “Quality Systems – “Model for Quality Assurance in Production,

Installation & Servicing”.

iv. ISO 9003, “Quality Systems – “Model for Quality Assurance in Final Inspection and Test”.

v. ISO 9004-1, “Quality Management and Quality System Elements –

Guidelines”.

89. What is the need for ISO 9000?

ISO 9000 is needed to unify the quality terms and definitions used by

industrialized nations and use terms to demonstrate a supplier’s capability of controlling its processes.

90. Give some other quality systems?

i. QS-9000

ii. TE-9000

iii. AS9000

91. Enumerate the steps necessary to implement the Quality Management System? i. Senior management commitment ii. Appoint the management representative iii. Awareness

iv. Appoint an implementation team

v. Training

vi. Time schedule

vii. Select element owners

viii. Review the present system

ix. Write the documents

x. Install the new system

xi. Internal audit

xii. Management review

xiii. Preassessment

xiv. Registration

92. What are the three sections of QS-9000?

i. Common requirements, which include the exact text of ISO 9001 and the addition of automotive/heavy trucking requirements.

ii. Additional requirements covering production part approval process, continuous

improvement and manufacturing capabilities.

iii. Customer-specific requirements.

93. What are the ISO/QS 9000 elements? i. Management responsibility


ii.The Quality system

iii. Contract review

iv. Design control

v.Document and data control

vi. Purchasing

vii.Control of customer-supplied product

viii. Product identification and traceability

ix. Process control

x.Inspection and testing

xi. Control of inspection, measuring and test equipment

xii.Inspection and test status

iii. Control of nonconforming product

xiv. Corrective and preventive action

xv.Handling, storage, packaging, preservation and delivery

xvi. Control of quality records

xvii.Internal quality audits

xviii. Training

xix. Servicing

xx.Statistical techniques

94. Give the objectives of the internal audit?

a) Determine the actual performance conforms to the documented quality systems.

b) Initiate corrective action activities in response to deficiencies.

c) Follow up on noncompliance items of previous audits.

d) Provide continued improvement in the system through feedback to

management.

e) Cause the auditee to think about the process, thereby creating possible

improvements.

95. What are the requirements of ISO 14001?

i. General requirements ii. Environmental policy

iii. Planning iv. Implementation and operation

v. Checking and corrective action

vi. Management review

96. What are the benefits of ISO 14000? a. Global i. Facilitate trade and remove trade barriers ii. Improve environmental performance of planet earth

iii. Build consensus that there is a need for environment management and a

common terminology for EMS.

b. Organizational

i. Assuring customers of a commitment to environmental

management

ii. Meeting customer requirements

iii. Maintaining a good public / community relations image

iv. Satisfying investor criteria and improving access to capital

v. Obtaining insurance at reasonable cost


vi. Increasing market share that results from a competitive advantage

vii. Reducing incidents that result in liability

viii. Improving defense posture in litigation

ix. Conserving input materials and energy

x. Facilitating the attainment of permits and authorization

xi. Improving industry/government relations

97. What are the four elements for the checking &

corrective action of ISO 14001? a) Monitoring and measuring b) Nonconformance and corrective and preventative action c) Records

d) EMS audit

98. What are the seven elements for the implementation & operations of ISO 14001? a) Structure and responsibility b) Training, awareness and competency c) Communication

d) EMS documentation

e) Documentation control

f) Operational control

g) Emergency preparedness and response

99. What are the four elements for the planning of ISO 14001? a) Environmental aspects b) Legal and other requirements c) Objectives and targets

d) Environmental Management Programs

100. Give the types of Organizational Evaluation Standards?

i. Environmental Management System

ii. Environmental Auditing

iii. Environmental Performance Evaluation

101. Give the types of Product Evaluation Standards?

i. Environmental Aspects in Product Standards

ii. Environmental Labeling

iii. Life-Cycle Assessment

104. Define Quality Audits? Quality Audits examine the elements of a quality management system in order to

evaluate how well these elements comply with quality system requirements.

105. Analyze TQM? Total Made up of the whole. Quality Degree of excellence a product or service provides.

Management Act, art or manner of handling, controlling,

directing etc.


106. Give the usage of an effective recognition and reward system? -Serves as a continual reminder that the organization regards quality and

productivity as important.

-Offers the organization a visible technique to thank high achievers for outstanding

performance.

-Provides employees a specific goal to work toward. It motivates them to improve

the process.

-Boosts morale in the work environment by creating a healthy sense of competition

among individuals and teams seeking recognition.

107. How will you improve the performance appraisal system? Use rating scales that have few rating categories. Require work team or group evaluations that are at least equal in emphasis to individual-focused evaluations.

Require more frequent performance reviews where such reviews will have a

dominant emphasis on future planning.

Promotion decisions should be made by an independent administrative

process that draws on current-job information and potential for the new

job.

Include indexes of external customer satisfaction in the appraisal process. o

Use peer and subordinate feedback as an index of internal customer

satisfaction.

Include evaluation for process improvement in addition to results.

108. What are the typical measurements frequently asked by managers and teams? Human Resource Customers Production

Research & Development

Suppliers

Marketing/Sales

Administration

109. What are the criteria to evaluate the performance measures? -Simple - Few in number - Developed by users

- Relevance to customer

-Improvement

- Cost

- Visible

- Timely

- Aligned

-Results

20


110. Give the usage of C&E diagrams? -Analyze actual conditions for the purpose of product or service quality

improvement, more efficient use of resources, and reduced costs.

-Eliminate conditions causing nonconformities and customer complaints. -Standardize existing and proposed operations.

-Educate and train personnel in decision-making and corrective-action

activities.

111. Define Six Sigma?

Six-Sigma is a business process that allows organizations to drastically improve

their bottom line by designing and monitoring every day business activities in ways that

minimize waste and resources while increasing customer satisfaction. It is achieved

through continuous process measurement, analysis & improvement.

112. What are the various histogram shapes? -Symmetrical -Skewed right -Skewed left

-Peaked

-Flat

-Bimodal

-Plateau distribution

-Comb distribution

-Double peaked distribution

113. Differentiate Population & Sample?

Population represents the mathematical world and Sample represents the real

world. A population frequency distribution is represented by a smooth curve whereas a

sample frequency distribution is represented by a histogram.

114. Give the sources of variation?

ï Equipment ï Material

ï Environment

ï Operator

115. Define Run chart?

A run chart is a very simple technique for analyzing the process in the development stage or, for that matter, when other charting techniques are not applicable.

21


16 Mark Questions

Unit-I 1. Explain the Dimensions of Quality?

- Performance - Features - Conformance

- Reliability

- Durability

- Service

- Response

- Aesthetics

- Reputation

2. Explain Deming Philosophy?

-Create and publish the aims and purposes of the organization. -Learn the new philosophy. -Understand the purpose of inspection.

-Stop awarding business based on price alone.

-Improve constantly and forever the system.

-Institute training.

-Teach and institute leadership. -Drive out fear, Create trust and Create a climate for innovation.

-Optimize the efforts of teams, groups and staff areas.

-Eliminate exhortations for the work force.

-Eliminate numerical quotes for the work force.

-Eliminate management by objective.

-Remove barriers that rob people of pride of workmanship.

3. Explain the Analysis Techniques for Quality Costs?

i. Trend Analysis

ii. Pareto Analysis

4. Describe the primary categories of Quality cost?

i. Preventive cost category

ii. Appraisal cost category

iii. Internal failure cost category

iv. External failure cost category

5. Explain the important role of senior management?

-Listening to internal and external customers and suppliers through visits,

focus groups and surveys.

-Communication. -To drive fear out of the organization, break down barriers, remove system

roadblocks, anticipate and minimize resistance to change and in general,

change the culture.

22


6. Explain the various quality statements? Vision Statement Mission Statement Quality Policy Statement

7. Discuss the basic steps to strategic quality planning? i. Customer needs ii. Customer positioning iii. Predict the future

iv. Gap analysis

v. Closing the gap

vi. Alignment

vii. Implementation

8. Explain the elements of customer service?

" Organization " Customer care " Communication

" Front-line people

Unit II

9.Explain Maslow’s Hierarchy of Needs?

Level 1 : Survival Level 2 : Security Level 3 : Social

Level 4 : Esteem

Level 5 : Self-actualization

10. Explain the types of teams?

i. Process improvement team

ii. Cross-functional team

iii. Natural work teams iv. Self-directed/self-managed work teams

11. Explain the characteristics of successful teams?

a. Sponsor b. Team charter c. Team composition

d. Training

e. Ground rules

f. Clear objectives

g. Accountability


i. Resources

j. Trust



23



n. Balanced participation o.

Cohesiveness

12. Explain the stages of team development?

i. Forming ii.

Storming

iii. Norming iv.

Performing v.

Adjourning

13. Explain the three components of the Juran Trilogy?

i. Planning

ii. Control

iii. Improvement

14 .Explain the steps in the PDSA cycle?

The basic Plan-Do-Study-Act is an effective improvement technique.

1st. Plan carefully what is to be done

2nd. Carry out the plan

3rd. Study the results

4th. Act on the results by identifying what worked as planned and what

didn’t.

15. Explain the phases of a Continuous Process Improvement Cycle?

a) Identify the opportunity

b) Analyze the process

c) Develop the optimal solutions

d) Implement

e) Study the results f) Standardize the solution

16. Explain 5S?

Sort – (Seiri)

Set In Order (Seiton)

Shine: (Seiso)

Standardize: (Seiketsu)

Sustain: (Shitsuke)

17. Explain the three types of sourcing? a) Sole sourcing b) Multiple sourcing

c) Single sourcing

UNIT III

18. Discuss the seven tools of quality?

i. Pareto Diagram

24


ii. Process Flow Diagram iii. Cause-and-Effect Diagram

iv. Check Sheets

v. Histogram

vi. Control Charts

vii. Scatter Diagrams

19. Explain the Six Sigma Problem Solving Method?

a. Define b.Measure

c.Analyze

d.Improve

e.Control

20. What are the new seven management tools? i. Affinity Diagram ii. Interrelationship Digraph

iii. Tree Diagram

iv. Matrix Diagram

v. Prioritization Matrices vi. Process Decision Program Chart

vii. Activity Network diagram

21. What are the characteristics of successful teams? a. Sponsor

b. Team charter

c. Team composition

d. Training

e. Ground rules f. Clear objectives

g. Accountability


i. Resources

j. Trust




n. Balanced participation

o. Cohesiveness

UNIT IV

25


22. Explain the steps to benchmark? a) Decide what to benchmark b) Understand current performance c) Plan

d) Study others

e) Learn from the data

f) Use the findings

23. Explain the types of benchmarking? i. Internal ii. Competitive iii. Process

24. Explain the parts of house of quality? i. Customer requirements ii. Prioritized customer requirements iii. Technical descriptors

iv. Prioritized technical descriptors

v. Relationship between requirements and descriptors

vi. Interrelationship between technical descriptors

25. Explain the stages of FMEA?

1. Specifying possibilities

a. Functions

b. Possible failure modes

c. Root causes

d. Effects e. Detection/Prevention

2. Quantifying risk

a. Probability of cause

b. Severity of effect

26. How will you build a house of quality? a) List customer requirements

b) List technical descriptors

c) Develop a relationship matrix between WHATs and HOWs\

d) Develop an interrelationship matrix between HOWs

e) Competitive assessments

f) Develop prioritized customer requirements

g) Develop prioritized technical descriptors

UNIT V

27. Explain the steps necessary to implement the Quality Management System? i. Senior management commitment

26


ii. Appoint the management representative

iii. Awareness

iv. Appoint an implementation team

v. Training

vi. Time schedule

vii. Select element owners

viii. Review the present system

ix. Write the documents

x. Install the new

system

xi. Internal audit

xii. Management review

xiii. Reassessment

xiv. Registration

28. Explain the ISO/QS 9000 elements?

i. Management responsibility

ii.The Quality system

iii. Contract review iv.

Design control v.Document

and data control vi.

Purchasing

vii.Control of customer-supplied product

viii. Product identification and traceability

ix. Process control

x.Inspection and testing xi. Control of inspection, measuring and test equipment

xii.Inspection and test status.

29. Explain the benefits of ISO 14000? a. Global i. Facilitate trade and remove trade barriers ii. Improve environmental performance of planet earth

iii. Build consensus that there is a need for environment management and a

common terminology for EMS.

b. Organizational

i. Assuring customers of a commitment to environmental

management

ii. Meeting customer requirements

iii. Maintaining a good public / community relations image

iv. Satisfying investor criteria and improving access to capital

v. Obtaining insurance at reasonable cost

vi. Increasing market share that results from a competitive advantage

vii. Reducing incidents that result in liability

viii. Improving defense posture in litigation

ix. Conserving input materials and energy

x. Facilitating the attainment of permits and authorization

27


xi. Improving industry/government relations.

30. Explain the seven elements for the implementation & operations of ISO 14001? a) Structure and responsibility b) Training, awareness and competency c) Communication

d) EMS documentation

e) Documentation control

f) Operational control

g) Emergency preparedness and response

28

GE2022 VII/IV TOTAL QUALITY

MANAGEMENT

total quality management 2015-16(odd) sem 7/ge2022... · total quality management 2015-16(odd) by...

Documents