tqm and reliability engineering

Historic bombing of Hiroshima

06 Aug 1945

Nagasaki witnessed similar fate

3 Days later

A week laterEmperor of Japan announced surrender of his country

02 Sep 1945Gen Mac Arthur took the formal surrender of Japan

War Ravaged Japan

United States sent two of its Quality Gurus

Scarce natural resources

Weak Administration

Poor quality products from its industries

Deming

Juran

to bring reforms in the Japanese industries

Devastated economy

1970 s - Japanese industries captured the world market.

- U S sent its team to study the secret behind success

The secret behind success

Japanese thrust was on

-Human values

-Basic principles

Which is the quality one?

BASIC CONCEPTS

Evolution of total quality Management

Comparison between traditional approach and TQM

Deming theories

Crosby theories

Juran, Taguchi, Ishikawa theories

Quality costs

Product quality Vs Service quality

Strategic planning

TQM implementation.

TQM PRINCIPLES & BASIC TOOL

Types of customers, customer supplier chain, Customer perception of quality

Customer perception of quality

customer feed back - Customer complaints

Customer retention - Service quality

Employee involvement

Employee motivation

Maslow's hierarchy of needs - Herzberg theory - Empowerment and team work.

Check sheets, histograms - Control charts, Pareto diagram - Cause and effect

diagram -

Stratification - Scatter diagrams

NEW SEVEN MANAGEMENT TOOLS & ADVANCED TOOLS

Affinity diagram - Relations diagram

Tree diagram - Matrix diagram - Matrix data analysis diagram -

Process decision program chart - Arrow diagram.

QFD

Root cause analysis - Taguchi method

Mistake proofing (poka-yoke)

Failure mode and effects analysis (FMEAs),

failure mode and effects criticality analysis (FMECAs)

Fault tree analysis (FTAs)

Quality Management Systems

RELIABILITY

Probabilistic nature of failures

Mean failure rate

Meantime between failures,

Hazard rate - Hazard models

Weibull model

System reliability improvement

Redundancy - Series - Parallel and Mixed configurations.

MAINTAINABILITY

Choice of maintenance strategy

Mean time- to repair (MTTR) -

Factors contributing to Mean Down Time (MDT)

Fault diagnosis, Routine testing for unrevealed faults

Factors contributing to Mean Maintenance Time - (MMT) on condition

maintenance

Periodic condition monitoring

Continuous condition monitoring - Economics of maintenance.

Text books:Joel E. Rose, Total Quality Management, 2nd Edition, Kogan Page Ltd., USA

1993

Srinath, L. S., Reliability Engineering, Affiliated East West Press, New Delhi

1995

Reference Books:Balagurusamy, E., Reliability Engineering Tata McGraw Hill publishing Co.,

New Delhi, 1984

Greg Bound, et.al, Beyond Total Quality Management towards the emerging

paradigm, McGraw Hill Inc., 1994

Zeiri, Total Quality Management for Engineers, Wood Head Publishers, 1991

Subburaj Ramasamy, Total Quality Management, Tata McGraw Hill publishing

Co.,

Poornima M charantimath, Total Quality Management, Pearson.

Bjrn Andersen, Tom Fagerhaug, Root Cause Analysis, Second Edition:

Simplified Tools and Techniques, ASQ Quality Press

Most Important is Class Room Lecture

TQM - Basic Concepts

Definition of Quality

14

is Fitness for

- Juran

15

DEFINITION

DEFINITION

is the Conformance to requirements

or

- Philip Corby

16

Degree of Uniformity and

dependability, at low cost suited to the

- Dr . Edward Deming

17

DEFINITION

totality of features and characteristics of

a product or service, that bears on its ability to

satisfy a given and implied

- ISO

18

DEFINITION

19

DEFINITION

ISO - International Organisation for

Standandardisation

Founded in 1946

Headquarters in Geneva

ISO 9000 standard

Happiness is when

- What you think

- What you say

- What you do

are in harmony.

Qualitydefinition

Old view : Quality relates to productsmanufactured exactly to specifications.

New view : Total Quality relates to products thattotally satisfy our customer needs and expectationsin every respect on a continuous basis. Qualitythen is in fact to delight customers.

20

Questions?

21

Dimension of Quality

Sl.No Dimension (Property) Meaning & Example (TV)

1 Performance Primary character (Brightness)

2 Features Secondary (Remote control)

3 Conformance Specifications and Standards

4 Reliability Consistency (till failing)

5 Durability Useful time (including Repair)

6 Services Resolution of Problem

7 Response H2H interface courtesy to Dealer

8 Aesthetics Sensory Characteristics (finish)

9 Reputation Performance n ranking in market

22

Total Quality Management

Main concerns of Manufacturers and Customers

Manufacturer Customer

Quality Quality

Cost Price

Productivity Availability

Concerns of manufacturer and customer are

generally not the same. Customer usually

has no concern for company productivity and cost.

Quality is the only common concern

23

Qualitydefinition

Quality target is 100%, not even 99.9% becauseeven 99.9% might mean many dissatisfiedcustomers every year, defective componentsentering assembly, accidents etc.



24

25

JAPANESE APPROACH

Improve Quality

Costs reduces due to fewer defects,

lesser rework, fewer delays and better use of

men, machine and materials

Improved productivity

Stay in business

Provide more jobs

EVOLUTION OF TQM

26

27

EVOLUTION OF QUALITY

Inspection

Quality Control Pre-World War II

Quality Assurance Post-World War II

Quality Management


-------------------------------------------------------------------------------------------------

QUALITY CONTROL

Quality Control (QC)

- Evaluate the actual performance

- Compare with the goals

- Act on the difference

QC is more of inspection of end products/services andcompare with the original plan.

Practiced during World War II.

28

QUALITY ASSURANCE

Quality Assurance (QA)

All the planned and systematic activities implemented withinthe quality system and demonstrated as needed,

to

provide adequate confidence that the end product/service will fulfill the requirements.

i.e., The end result is assured.

29

QUALITY ASSURANCE

Steps in QA

- Quality of Design

- Quality of Conformance

- Quality of Performance

- Quality of Service

30

Stage Inspection and Documentation

Managementimplies :

Quality does not happen on its own. It requires to

be planned and managed.

It is a management function, though it involves

everyone.

All activities of the overall management function

that determines the quality policy, objectives and

responsibilities and implementing them.

31

QUALITY MANAGEMENT

Total implies - %

- All areas and functions

- All activities

- All employees

- All time

In 1985, the Americans came up with the term TQMto represent the Japanese Wide QualityControl .

32

TOTAL QUALITY MANAGEMENT

TQM is the management approach of an

organization, centered on quality, based on the

participation of all its members and aiming at

long time success through customers satisfaction,

benefits to all members of the organization and

to society.

33

ACCORDING TO ISO

Traditional and TQM approachElement Traditional TQM

Definition Product oriented Customer Oriented

Priority Cost Quality First

Decisions Short term Long term

Emphasis Detection Prevention

Manager role Plan, Assign, control

and enforce

Delegate, coach,

facilitate and mentor

Responsibility Quality control Everyone

Problem solving Manager Teams

Procurement Price Life-cycle cost

Partnership

34

TQM & organizational Cultural ChangeTraditional Approach

Lack of communication

Control of staff

Inspection & fire fighting

Internal focus on rule

Stability seeking

Adversarial relations

Allocating blame

TQM

Open communications

Empowerment

Prevention

External focus on customer

Continuous improvement

Co-operative relations

Solving problems at their roots

36

EVOLUTION OF QUALITY

Inspection

Quality Control Pre-World War II

Quality Assurance Post-World War II

Quality Management


-------------------------------------------------------------------------------------------------

Evolution of TQM

The concept of quality has existed for many years, though its meaning has

changed and evolved over time.

Quality was viewed as needed to be inspected and corrected.

In the 1940s, during World War II, quality became more statistical in

nature. Statistical sampling techniques were used to evaluate quality, and

quality control charts were used to monitor the production process.

In the 1950s, with the help of so-called quality gurus the concept took

on a broader meaning.

Quality began to be viewed as something that encompassed the entire

organization, instead of production process.

Since all functions were responsible for product quality and all shared the

costs of poor quality, quality was seen as a concept that affected the entire

organization.

37

A new concept of quality was emerging. One result is that quality began to

have a strategic meaning.

Since the 1970s, competition based on quality has grown in importance and

has generated tremendous interest, concern, and enthusiasm.

Today, successful companies understand that quality provides a competitive

advantage. They put the customer first and define quality as meeting or

exceeding customer expectations.

Companies in every line of business are focusing on improving quality in

order to be more competitive. In many industries quality excellence has

become a standard for doing business.

Companies that do not meet this standard simply will not survive.

Nowadays the importance of quality is demonstrated by national quality

awards and quality certifications that are coveted by businesses.

You can see that the old concept is reactive, designed to correct quality

problems after they occur.

The new concept is proactive, designed to build quality into the product

and process design.

38

Questions?

39

40

1. Quality

2. Quality control (QC)

3. Statistical Quality Control (SQC)

4. Quality Assurance (QA)

5. TQM

The Natural Expansion to Quality

Management

Dimension of Quality

Sl.No Dimension (Property) Meaning & Example (TV)

1 Performance Primary character (Brightness)

2 Features Secondary (Remote control)

3 Conformance Specifications and Standards

4 Reliability Consistency (till failing)

5 Durability Useful time (including Repair)

6 Services Resolution of Problem

7 Response H2H interface courtesy to Dealer

8 Aesthetics Sensory Characteristics (finish)

9 Reputation Performance n ranking in market

42


Main concerns of Manufacturers and Customers

Manufacturer Customer

Quality Quality

Cost Price

Productivity Availability

Concerns of manufacturer and customer are

generally not the same. Customer usually

has no concern for company productivity and cost.

Quality is the only common concern

43

Qualitydefinition



44


TQM is a philosophy which applies equally to all parts of the organization.TQM can be viewed as anextension of the traditional approach to quality.TQM places the customer at the forefront of quality decision making.Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality.All staff are empowered.

CONCEPTS OF TQM

Be customerfocused means everything you do will be done by placing the customer in the centre. The company should regularly check

This will include the external and internal customer concept.

Elements of TQM

Leadership

Top management vision, planning and support.

Employee involvement

All employees assume responsibility for the quality of their work.

Product/Process Excellence

Involves the process for continuous improvement.

Elements of TQM

Continuous ImprovementA concept that recognizes that quality improvement is a journey with no end and that there is a need for continually looking for new approaches for improving quality.

Design qualitySpecific characteristics of a product that determine its value in the marketplace.

Conformance qualityThe degree to which a product meets its design specifications.

People and Their Contribution

50

Deming

Quality Gurus

W.E.DEMING - asserted that quality starts with top management

and is a strategic activity. philosophy is that quality and

productivity increase as process variability decreases (a decrease in

the unpredictable).

Deming theories

In his 14 Points for quality improvement he emphasized the need for

statistical control methods, education, openness, purposeful

improvement and participation.

Top management is responsible for most quality problems.

Management should give employees the appropriate working

environment and climate for work - free of faultfinding, blame or fear.

Deming also strongly promotes employee participation.

14 points for managers.

1. Create and publish the Aims and Purposes of the Organization.

2. Learn the New Philosophy Top management and every one must learn the new philosophy.

3. Understand the Purpose of Inspection.

4. Stop Awarding Business based on Price Alone.

5. Improve Constantly and forever.

6. Institute Training.

7. Teach and Institute Leadership.

8. Drive out fear, Create Trust, and Creat a Climate for Innovation.

9. Optimize the Efforts of Teams.

10. Eliminate Exhortations for the Work Forces.

11. (a) Eliminate Numerical Quotas for the Work Force

11. (b) Eliminate Management by Objective

12. Remove Barriers that Rob People of Pride of Workmanship

13. Encourage Education and Self-improvement for Everyone

14. Take Action to Accomplish the Transformation.

POINT 1: CREATE CONSTANCY OF

PUPRPOSE TO IMPROVE PRODUSTS

AND SERVICES

An organization must define its values, mission, and

vision of the future to provide long-term direction

for its management and employees.

Resources to be allocated for research, training and

continuing education

Do you have clear goals for the organization communicated to all employees?

POINT 2: LEARN AND ADOPT THE NEW

PHILOSOPHY

Companies must take a customer-driven approach based

on mutual cooperation between labor and management

and a never-ending cycle of improvement.

Elimination of wastes, delays and adopt CWQC (TQM)

JIT with zero defects

How can everyone be empowered, feel a senseofownershipandsharein the success?

Point 3: Cease Dependance on

Mass Inspection

Concentrate on improving the

process

If the process is corrected, the

defects will cease

Replace mass inspection with

statistical techniques

Inspection should be used to

improve process and reduce

cost

With everyone participating our goals are to deliver perfect

quality to our customers

Point 4: Stop Awarding Business On Price

Alone

Avoid pure low bidmethod

Establish long-termrelationships withfewer suppliers,leading to loyalty andopportunities formutual improvement.

Avoid poor quality ofincoming materials,tools and machineries

Point 5: Improve Constantly and

Forever, the system of production and

servicesKaizen ..the continuous improvement

Deming chain reaction: PDSA cycle

Continuous improvement of incomingmaterials, design, maintenance, etc.

At all levels, everyone should be involved in continuous improvement activities every single day.

Point 6: Institute Training

Training

- Results in improvements in quality andproductivity

- Modern methods of OJT to orient topolicy

- Adds to worker morale

- Demonstrates to workers that the company isdedicated to helping them and investing in thefuture

Point 7: Institute Leadership

The job of management

is leadership, not

supervision.

Supervision simply

overseeing and directing

work

Leadership providing

guidance to help

employees do their hobs

with less effort.

The leaders select the music, set the tone and ensure that everyone is on board at every moment.

Point 7: Institute Leadership

Leader Manager

Proactive Reactive

Coaches Findsfault

Understands Process

Moves around Confinesto office

Improves process Maintains process

Communicates frequently Communicates rarely

Seeks suggestions Questions

Senior employees should be trained on leadership qualities

Point 8: Drive Out Fear

Fear is manifested in

many ways: fear of

reprisal, fear of failure,

fear of the unknown, fear

of relinquishing control,

and fear of change.

Fear encourages short-

term thinking

Create trust and climate

for innovation

Take rounds with a view to catch people doing.......things right

Point 9: Optimize the Efforts of Teams

Teamwork helps to break

down barriers between

departments and

individuals.

Barriers between

functional areas occur

when managers fear they

might lose power.

Lack of cooperation

leads to poor quality.Find ways to open communications between suppliers, customers and all employees.

Point 10: Eliminate Slogans and

Exhortations

Motivationalapproaches overlookthe major source ofproblems thesystem

Causes of variationstemming from thedesign of the systemareproblem, not the

Value is placed on doing and demonstrating.

Point 11: Eliminate Numerical Quotas and

Management by Objective (MBO)

Many organizations

manage by the

numbers.

Management must

understand the

system and

continually try to

improve it, rather

than focus on MBO.

Point 12: Remove Barriers to Pride in

Workmanship

One of the biggestbarriers to pride inworkmanship isdestructive criticism

Management must giveemployees jobdescription, provideproper tool andmaterial, stress theirroll in processimprovement.

Why come to work if it is not joyous?

Point 13: Encourage Education and Self-

Improvement

Continuing, broad education for self-

improvement

Organizations must invest in their people at all

levels to ensure success in the long term

Developing the worth of the individual is a

powerful motivation method

Point 14: Take Action to Accomplish

the Transformation

Any culture change

begins with top

management and

includes everyone

Create a structure in

the organisation

Team-based approach

Crosby

P.B. CROSBY - Suggested that many organisations do not know

how much they spend on quality, either in putting it right or getting it

wrong.

HisDefinition isconformanceto

He emphasized on zero defects, or getting it right first

time.

This requires an emphasis on preventing rather than

after the inspection.

1. Definition of quality conformance to requirements.

2. Quality system prevention.

3. Quality standard zero defects.

4. Measurement of quality price of non-conformance.

Crosby provides 14 steps to quality improvement as listed below:-

1. Management commitment - to make clear that management stands on quality.

2. Quality improvement team - to set up a high-level, cross-functional team to run

the quality improvement program.

3. Quality measurement - to provide a display/report of current and potential non-

conformance problems in an objective manner.

4. The cost of quality - to define the ingredients of the cost of quality and explain

its use as a management tool.

5. Quality awareness - to provide a method of raising the personal concern for

quality felt by all employees.

6. Corrective action - to provide a systematic method for resolving problems

identified

7. Zero defects (ZD) action (planning) - preparatory activities for ZD

program launching.

8. Employee education - define the type and extent of supervisor training.

9. ZD day - popularize ZD philosophy and raise quality consciousness.

10. Goal setting - goals and commitments are set by employees for

themselves and their groups.

11. Error-cause removal - develop a method for employees to communicate

with the management regarding error-cause removal.

12. Recognition of good work in the quality process - to appreciate

employees with superior performance.

13. Quality councils - brings together the professional quality staff for a

planned communication on a regular basis.

14. Do it over again - emphasize that quality improvement never ends and

is a constant effort.

J.M.JURAN- tried to get organizationsto moveawayfrom the traditional

manufacturing-basedviewof quality

conformanceto

based

Hecreatedthe phrase Fitnessfor Use.

Juranadvocated 10 steps for quality improvements as follows:

Build awareness of the need and opportunity for improvement.

Set goals for improvement.

Organize to reach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators).

Provide training.

Carry out projects to solve problems.

Report progress.

Give recognition.

Communicate results.

Keep score

Maintain momentum by making annual improvement part of the regular systems and processes of the company.

JURAN TRILOGY

Juran

trilogy

Quality planning

Quality control

Quality Improvement

Chronic (constant) problems - - - req.the

Sporadic (irregular) problems - - - req. the

Establish the quality goal.

Identify customers.

Discover customer needs.

Develop product features.

Develop process features.

Establish process controls and transfer to operations.

Choosing the control subject: i.e., choosing what we intend to regulate.

Choosing a unit of measure.

Setting a goal for the control subject.

Creating a sensor which can measure the control subject in terms of the unit of measure.

Measuring actual performance.

Interpreting the difference between actual performance and the goal.

Taking action (if any) on the difference.

Organizingfor breakthroughin knowledge- defining the organizationalmechanismfor obtainingthe knowledgefor achievinga breakthrough.

Creation of a steering arm - defining and staffing a mechanismfordirectingthe investigationfor quality improvement.

Creation of a diagnosticarm - defining and staffing a mechanismforexecutingthe technicalinvestigation.

Diagnosis- collectingandanalyzingthe factsrequiredand recommendingthe actionneeded.

Breakthroughin cultural pattern - determining the effect of a proposedchangeon the peopleinvolvedandfindingwaysto overcomeresistancetochange.

Breakthroughin performance- obtainingagreementto takeaction.

Transitionto the newlevel- implementthe change.

Ishikawa

Quality Gurus

K. ISHIKAWA - created

- Quality circles and

- Cause-and-effect diagrams.

Ishikawa claimed that there had been a period of over-

emphasis on statistical quality control that caused people to

dislike it.

Ishikawa saw the worker participation as the key to the

successful implementation of TQM. Quality circles were an

important vehicle to achieve this.

product that is most economical, most useful, and always

six fundamental principlesQuality first- not short-term profits first

Customer orientation- not producer orientation;

The next step is your customer - breaking down the barrierof sectionalism;

Using facts and data to make presentations- utilization of statistical methods

Respect for humanity as a management philosophy, full participatory management

Cross - functional management.

Taguchi

definition of quality uses the concept of the loss

that is imparted by the product or service to society from the

time it is created.

He created Quality Loss Function (QLF) that included factors

such as costs of warranty, customer complaints, and loss of

customer goodwill.

TAGUCHI - was concerned with engineering in quality

through the optimisation of product design combined with

statistical methods of quality control.

He encouraged interactive team meetings between workers

and managers to criticise and develop product design.


TQM is a philosophy which applies equally to all parts of the organization.TQM can be viewed as anextension of the traditional approach to quality.TQM places the customer at the forefront of quality decision making.Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality.All staff are empowered.


Internetix (2005)

TQM & organizational Cultural ChangeTraditional Approach

Lack of communication

Control of staff

Inspection & fire fighting

Internal focus on rule

Stability seeking

Adversarial relations

Allocating blame

TQM

Open communications

Empowerment

Prevention

External focus on customer

Continuous improvement

Co-operative relations

Solving problems at their roots

exp

ecta

tio

ns f

or

the p

rod

uct

or

serv

ice

perc

ep

tio

ns o

f th

e p

rod

uct

or

se

rvic

e

perc

ep

tio

ns o

f th

e p

rod

uct

or

serv

ice

ex

pec

tati

on

s

for

the p

rod

uct

or

serv

ice

perc

ep

tio

ns o

f th

e

pro

du

ct

or

serv

iceGap

Perceived quality is poor

Perceived quality is good

Expectations > perceptions

Expectations = perceptions

Expectations < perceptions

expectations and their perceptions of the product or service

exp

ecta

tio

ns o

f th

e p

rod

uct

or

serv

ice

Gap

Source: Slack et al. 2004

Continuous Improvement

Philosophy that seeks to make never-ending improvements to the process of converting inputs into outputs.

Kaizen: Japanese word for continuous improvement.

Obstacles to Implementing TQM

Lack of a company-wide definition of quality.

Lack of a formalized strategic plan for change.

Lack of a customer focus.

Poor inter-organizational communication.

Lack of real employee empowerment.

Lack of employee trust in senior management.

View of the quality program as a quick fix.

Drive for short-term financial results.

Politics and turf issues.

PDCA Cycle repeated to createcontinuous improvement

Time

Perf

orm

ance

improvement

Plan

Do

Check

Act

Recognizing and rewarding Quality

Promotion of high quality goods and services

Malcolm Baldrige National Quality Award (MBNQA) (United States)

Deming Prize (Japan)

European Quality Award (European Union)

ISO9000 certification

QUALITY COSTS

101

PREVENTION COST

Cost incurred by an organisation to ensure

- Design

- Development

- Production

- Delivery of product or services

Incurred to reduce the inspection and failure costs

i.e., TQM implementation is a prevention cost

(Stopping errors occurring in the first place)

PREVENTION COST

- Education and training of employees

- Process improvement efforts

- Process control

- Market research

- Product qualification

- Field testing

- Preventive maintenance

- Calibration of instruments

- Audits

- QA staff

APPRAISAL COST

Cost incurred in verifying, checking or evaluating

a product/service at various stages during

- Incoming inspection

- Supplier evaluation and audit

- Inspection during process

- Final inspection

Incurred due to lack of confidence in the quality of

product/service.

(Checking to see if errors have occurred after the event)

INTERNAL FAILURE COST

Design failure cost

Rejected material, supplied by vendor

Rejected pieces of sub-assemblies

Rejected products at final inspection

Scrap on account of poor workmanship

Rework cost

(Coping with errors while they were still

inside the Organisation)

EXTERNAL FAILURE COST

Complaint Investigations of CustomerReturned GoodsRetrofit and Recall CostsWarranty ClaimsLiability CostsPenaltiesCustomer GoodwillLost Sales

(Cost due to product failure after selling)

The Original or Classical

COQ model

107

Cost

per

good u

nit

of

pro

duct

Quality of conformance %

Total quality costs

Failure costs

Costs of appraisal plus

prevention

1000

Questions?

COST OF QUALITYor

QUALITY COSTS

109

Definition

COQ offers managers a financial method toevaluate the level of their quality and the costsassociated with different levels of quality.

The cost is a well-organized and often disputedtool used to understand the economicconsequences of quality.

Purchasing manager and clever customers areasking: are the costs related to

The definition of COQ varies but, in general, isconsidered to be the costs relating to be the qualitycharacteristics of a product or service.

110

Placing a cost figure on quality is difficult and thataccounting is unable to capture the costs ofquality. Some concerns:

Quality costs do not readily appear in the accountingjournals.

Large timing delays between quality costs and benefitscreate distortions.

Numerous cost estimates are needed.

There are hidden costs never captured (tangible andintangible).

Matching future costs with historical costs is necessary.

111

The Traditional Cost-of-Quality Model

The model states that cost can be divided

into two broad categories:

1. Conformance Costs

a. Prevention costs

b. Appraisal costs

2. Non-Conformance Costs

a. Internal failure costs

b. External failure costs

112

Conformance Costs

A. Prevention costs:

Costs associated with all activities designed to prevent defects in product or service. These include :

The direct and indirect costs related to quality training and education, pilot studies, quality circles, quality engineering, etc.

These costs are used to build awareness of the quality program and to keep the costs of appraisal and failure to a minimum.

Prevention costs are all costs incurred in an effort to

113

Types of Prevention Costs

1. Quality planning and engineering: creation of the

overall quality plan, the inspection plan, the reliability

plan, the data system, all activities of the quality

assurance function, the preparation of manuals and

procedures used to communicate the quality plan, costs

auditing the system.

2. New products review: evaluation of new designs,

preparation of tests & experimental programs to evaluate

the performance of new products.

3. Product & process design: costs incurred during the

design of the product or the selection of the production

processes that are intended to improve the overall quality

of the product.

114

Types of Prevention Costs cont.

4. Process control: the cost of process controltechniques, such as control charts, that monitor themanufacturing process in an effort to reducevariation and build quality into the product.

5. Training: the cost of developing, preparing,implementing, operating, and maintaining formaltraining programs for quality.

6. Quality data acquisition and analysis: the cost ofrunning the quality data system to acquire data onproduct and process performance. Includes cost ofanalyzing these data to identify quality problems.

115

Conformance CostsB. Appraisal costs

The costs associated with measuring and

evaluating the product or service quality to

ensure conformance.

These include the cost of inspection, test or audit

of purchases, manufacturing or process

operations and finished goods or services.

The direct and indirect costs of the various tests

& inspections to determine the degree of

conformity are included in this category.

116

Types of Appraisal Costs

1. Inspection & test of incoming material:

Costs associated with the inspection and testing of allvendor-supplied material.

Receiving inspection & test

The same at the facility

Periodic audit of the quality assurancesystem.

2. Product inspection & test:

The cost of checking the conformance of the productthroughout its various stages of manufacturing.

Final acceptance testing

Packing and shipping checks

Salaries of inspectors and supervisors.117

Types of Appraisal Costs cont.

3. Materials & Services consumed:

The cost of operating a system that keeps the

measuring instruments and equipment in

calibration.

4. Maintaining accuracy of test equipment:

the cost of operating a system that keeps the

measuring instruments and equipment in

calibration.

118

Non-Conformance CostsThese are associated with products or services that do

not conform the customer's requirement. They are oftenreferred to as costs and consist of two types.

A. Internal failure costs:

costs incurred prior to the shipment of the product or the delivery of the service.

These costs are associated with defects that are found prior to customer delivery.

These include the net cost of scrap, re-inspection and retest, downtime due to quality problems, opportunity cost of product classified as seconds, or other product downgrades.

These costs would disappear if there were no defects in the product.

119

Types of Internal Failure Costs1. Scrap costs: the net loss of labor, material and

overhead (fixed costs) resulting from defective product that can not economically be repaired or used.

2. Rework: the cost of correcting nonconforming units so that they meet specifications. Rework costs usually include additional operations or steps in the manufacturing process, thus includes extra direct labor, machine time and supplies costs.

3. Retest Cost: the cost of reinspection and retesting of products that have undergone rework or other modification.

120

Types of Internal Failure Costs cont.

4. Downtime costs: the cost of idle production

facilities that result from nonconformance to

requirements.

5. Downgrading cost: the price differential

between the normal selling price and any selling

price that might be obtained for a product that

does not meet the requirements.

Downgrading is common in the textile, apparel

goods, electronics, and carpet industries.

121

B. External Failure Costs

The costs of discovered defects occurring afterproduct shipment or service delivery.

These costs include warranty charges, customercomplaint adjustments, returned merchandise,product recalls, allowances, and product liability.

They also include the direct and indirect costssuch as labor and travel associated with theinvestigation of customer complaints, warrantyfield inspection, tests and repairs.

These costs would disappear if every unit ofproduct conformed to requirements andspecifications.

122

Types of External Failure Costs

1. Complaint adjustment: all cost of investigation andadjustment of justified complaints attribute to thenonconforming product.

2. Returned product & material: all costs associated withreceipt, handling, and replacement of the nonconformingproduct or material returned from the field. Also recallsof defective product.

3. Warranty charges: all costs involved in service tocustomers under warranty contracts. Includes repair andreplacement of product or parts.

4. Liability costs: costs or awards incurred as a result ofproduct liability litigation.

5. Indirect costs: in addition to direct operating costs ofexternal failures, there are some indirect costs.Customer dissatisfaction with the level of quality

Loss of good-will; loss of business reputation; loss of futurebusiness; loss of market share.

123

Cost of Quality =

Cost of Prevention+Cost of Appraisal

+Cost of Failure

124

Reducing the Cost of Quality

The aim of management is to minimize the cost of quality.

It makes no difference if this is done by reducing all three components or by increasing some and decreasing others enough to lower the total cost.

To have a significant impact on the total cost; the cost of failure must be reduced, and the usual strategy for achieving this objective is to spend more on prevention.

125

The Traditional Cost of Quality Model

The study of the relationship of the COQ

categories led to the development of a

significant body of economic literature

offering various models to explain the

interrelationship of the COQ categories.

126

The Original or Classical

COQ model

127

Cost

per

good u

nit

of

pro

duct

Quality of conformance %

Total quality costs

Failure costs

Costs of appraisal plus

prevention

1000

Definition of COQ model figure

In this case, the costs of prevention and appraisal are zero with a100% failure rate.

The costs of prevention & appraisal rise to infinity as perfection(no failures) is reached.

This hypothetical model shows that total quality cost is higherwhen quality is low and falls as quality improves.

According to the model, a company greatly reduce failure costsby adding relatively low-cost prevention and appraisalmeasures.

As prevention and appraisal expenditures continue to rise, therate of improvement begins to diminish until additionalexpenditures produce little decrease in failure.

The model suggests that a relationship exists betweenconformance and nonconformance quality costs, with a minimaltotal quality cost at the optimal balance.

Implicit in this model is the trade off of conformance costs fornonconformance costs to achieve the lowest total quality cost.

128

Behavior of Cost Components During TQM

Implementation

The general behavior of the four quality costcomponents for a company starting TQM is asfollows:

Prevention costs remain relatively consistent as theawareness of TQM is built and maintained.

Appraisal costs will initially increase as inspectionprograms are initiated but should eventually level off.

Internal failure costs will initially increase as theinspection programs are implemented, but should thegradually decrease with learning.

External failure costs should continue to fall asvarious TQM programs are brought on line.

129

Quadratic Loss Function

Taguchi Quadratic Function

L(x) = k (x- N)2

L(x) = Loss function

k = Constant of proportionality = C/d2

x = Quality characteristic of selected products

N= Nominal value of chosen product and

(x- N) = Tolerance

C = loss associated with specification limit

d = deviation of specification from the target value

131

Q) A certain part dimension on a power garden tool is specified as32.25 with +/- 0.25 mm. company repair record indicated that if the+/-0.25 mm is exceeded then 75 % of product is returned. Costassociated with replacement is Rs 12,500.

Find Taguchi loss function and QLF.

Ans) Specification= 32.25

Deviation = 0.25mm

P=0.75 (75%)

Replacement cost = 12,500/-

Loss is expected cost of repair, C = 12000*0.75= 9375

k = C/d2 = 9375/0.252 = Rs 1,50,000

QLF = L(x) = 1,50,000(x-N)2

132

Q) Taguchi QLF of a component in a component is L(x)

= 2520 (x-N)2 , where x is actual value of a critical

dimension N is nominal value. N= 162.00 mm.

determine the value of loss function of for tolerance

of a) +/- 0.25 mm & b) +/- 0.15 mm .

Ans) L(x) = 2520 (x-N)2

N = 162.00 mm

Tolerance (T) = (x-N)

When (T) =0.25 mm

L(x) = 2520 (0.25)2 = Rs 157.5

When (T) =0.15 mm

L(x) = 2520 (0.15)2 = Rs 56.70

133

PRODUCT QUALITY

Vs

SERVICE QUALITY

134

Various features of a product or service.

Product Quality Service Quality

1. Functionality 1. Customer Service

2. Reliability 2. Service Design

3. Usability 3. Service Delivery

4. Maintainability

5. Efficiency

6. Portability

135

DIMENSIONS OF QUALITY

PRODUCT QUALITY Vs SERVICE QUALITY

80% of workers globally employed in service sector.

90% of the potential for improvement may lie in service industries and service jobs in manufacturing firms.

People employed in manufacturing functions tend to focus on production first and quality second.

Concern for quality was lacking among workers & quality as an objective in manufacturing was secondary to the primary goal of meeting production schedules .


Supervisors set targets related to productivity and cost reduction than quality improvement


The strongest complaints of customers registered not for products but rather for services.

Executives rate quality of service as a more critical issue than quality of product.


Customer service considered a majordimensionsof competitiveness.

Improvingquality and serviceto customersasthe keyto competitivesuccess.

Competitive edge is price. To admit thatproductsandservicesarecommodities


Defining and controlling quality of service more difficult than quality assurance of products.

The process of quality control less manageable but no less important.


Service company operations are the intangible nature of the output & the inability to store the output.


The behavior of the service provider becomes a factor in service delivery.

The service recipient has the final say regarding quality.


Service requires contact between the service provider and the service recipient.

The image of the organization shapes the perception of customers .


The measure of output difficult to define

Quality can mean different things to different people given the same experience

Quality defined in the context of the totality of the experience.


STRATEGIC

PLANNING

146

Goals Long term planning

Eg., Win the war

Objectives Short term planning

Eg., Capture the bridge

GOALS Vs OBJECTIVES

Improve customer satisfaction, employee satisfaction and process

Be based on statistical evidence

Be measurable

Have a plan or method for its achievement

Have a time frame for achieving the goal

Finally, it should be challenging yet achievable

GOALS / OBJECTIVES SETTING

Goal setting

STRATEGIC PLANNING

Making Plans for the Following:1. Business Value2. Markets to be served3. Investment in machinery and equipment4. Manpower to be hired5. Budget6. Product Diversification7. Strategies for improving properties

Etc.

7 Steps in Strategic Planning

Customer Needs-

identify needs, requirement

Customer Position-

should we give up, maintain or expand

Predict the future-

tools and economic forecasts and technical projection

Gap analysis-

b/w the current stage and the future (value stream mapping)

Closing the gaps-

specific plan (process improvement)

Alignment-

revised plan with mission & vision

Implementation-

resource allocation, designing changes, overcome the resistance.

151

Steps

Identification of customer needs

Determination of customer positioning

Predict the future

Gap analysis

Closing the gap

Aligning the plan to the mission and vision

Implementation of the plan

STEPS INVOLVED IN STRATEGIC QUALITY PLANNING

1. Customer needs

2. Customer positioning

3. Predict the future

4. Gap analysis

5. Closing the gap

6. Alignment

7. Implementation

QUALITY TRILOGY:

Juran is well known for originating the idea of the quality trilogy:

Quality planning, is necessary so that companies identify their

customers, product requirements, and overriding business goals.

Processes should be set up to ensure that the quality standards

can be met.

Quality control, stresses the regular use of statistical control

methods to ensure that quality standards are met and to identify

variations from the standards.

Quality improvement, according to Juran, quality improvements

should be continuous as well as breakthrough. Together with

Deming, Juran stressed that to implement continuous

improvement workers need to have training in proper methods on

a regular basis.

154

TQM

IMPLEMENTATION

155

TQM implementation

TQM IMPLEMENTATION

Begins with Management Commitment

Select a consultant

Leadership is essential during every phase of the implementation process and particularly at the start

TQM IMPLEMENTATION

Senior Management should develop an implementation plan

Timing of the implementation process is very important

Communicate TQM to the entire organization

TQM IMPLEMENTATION

Formation of Quality Council

The council establishes the project teams and work groups and monitors their progress

Early discussions with the Union is a must

Training on quality awareness and problem solving

TQM IMPLEMENTATION

Customer, Employee and Supplier surveys must be conducted to benchmark

Active involvement of Middle Managers and First Line Supervisors is essential

BARRIERS TO TQM IMPLEMENTATION

Lack of Management CommitmentInability to change Organizational cultureImproper planningLack of continuous training and educationIncompatible organizational structure and isolated individuals and departmentsIneffective measurement techniques and lack of access to data and resultsPaying inadequate attention to internal and external customersInadequate use of empowerment and teamworkFailure to continually improve


Lack of management commitment


inability to change organization culture


Improper planning


inadequate use of empowerment and teamwork


Lack of continuous training and education


Incompatible organisational structure & isolated individuals and department


Inefficient measurement techniques & lack of access to data and results


Paying inadequate attention to customers

Failure to continually improve

BENEFITS OF TQM

Improved quality Employee participationTeam workWorking relationshipsCustomer satisfactionEmployee satisfactionProductivityCommunicationProfitabilityMarket share

Obstacles to Implementing TQM

Lack of a company-wide definition of quality.

Lack of a formalized strategic plan for change.

Lack of a customer focus.

Poor inter-organizational communication.

Lack of real employee empowerment.

Lack of employee trust in senior management.

View of the quality program as a quick fix.

Drive for short-term financial results.

Politics and turf issues.

PDCA Cycle repeated to createcontinuous improvement

Time

Perf

orm

ance

improvement

Plan

Do

Check

Act

Customer Satisfaction

Types of Customers

Customer Supplier Chain

176

Various features of Customer Satisfaction are:

1. Delivery

- With right quality

- In right quantity

- At the right time

- At the right price

- At the right place

2. Good customer service

3. Company reputation

177

CUSTOMER SATISFACTION

Customer dictates the market trends and direction

Customer not only has needs to be supplied ( basic performance functions)

him and influence his purchase decision)

Hence the Suppliers and Manufacturers have to closely follow up with the customer.

CUSTOMER SATISFACTION

Customer satisfaction Model: (Teboul Model)

Company offer

(product or service)

Customer

needs

Customer satisfactionNeeds not fulfilled

Total satisfaction is achieved when offer

matches the need i.e. circle is

superimposed on the square

Service organizations and customer satisfaction

Difficult but not impossible

Determine key performance indicators

Set Targets SMART goals

Make teams

Analyze them on weekly basis

Standardize

Sustain

Why customers leave?

Poor service 69%

Others, 9%Better prices

elsewhere, 9%

Product

dissatisfaction,

13%

Who is the customer?

Onewho usesthe productor service,the onewho purchases

the product or service or the one who influences the

productor service.

Two types of customers:

Internal customers

External customers

External current,prospectiveandlostcustomers

Internal Every person in a process is acustomerof the previousoperation.

(applies to design, manufacturing, sales,suppliesetc.)

TYPES OF CUSTOMERS

Inputs from

external customers

Internal customers

Outputs to

external customers

CUSTOMER SUPPLIER CHAIN

Each worker should see that the quality meets expectations of the next person in the supplier-to-customer chain

TQMis commitment to customer-focus

Both internal and external

CUSTOMER SUPPLIER CHAIN

Internal Customer/Supplier Relationships

Questions asked by people to their internal customers

What do you need from me?

What do you do with my output?

Are there any gaps between what you need and what you get?

Good team-work and inter-Departmental harmony is required.

TQM and Customer quality percepts

There is no full stop and no break in the chain!

Continuous process improvement is all.

Why? One important reason is the customer quality level is not static and his expectations keep changing and his demands too!

Also plant process dynamics- how to achieve maximum efficiency , optimizing cost and performance in the process operations, minimizing waste etc.

Categories of customers:

Angry customers

Passive customers

Demanding customers
http://images.google.co.in/imgres?imgurl=http://www.upyourservice.com/library/CustomerServiceTrainingCultureArticle0021.GIF&imgrefurl=http://www.upyourservice.com/library/CustomerServiceTrainingArticle0021.html&h=756&w=717&sz=40&hl=en&start=14&tbnid=zFbw5ViZimntQM:&tbnh=142&tbnw=135&prev=/images?q=upset+customer&svnum=10&hl=en

CUSTOMER PERCEPTION OF

QUALITY

189

Customer perception of quality:

An AmericanSocietyfor quality (ASQ)surveyon customer

perception about quality of product or serviceshowsthefollowingranking.

1. Performance

2. Features

3. Service

4. Warranty

5. Price

6. Reputation

CUSTOMER PERCEPTION OF QUALITY

Performance

- fitness for use

Features

- psychological, time oriented, technological

Service

- time lag in various operations, excellent customer service more difficult than a good quality product

Warranty

- replacement of parts, feed back on the product

Price

- willing to pay a high price to get value

Reputation

- Life long customers

- errors in documentation and delivery

Customer Feedback

Comment card

Report card

Customer questionnaire

Toll free phone numbers

Customer visits

Focus groups (GD with a moderator)

Feedback through emails/internet

Employee feedback

Comment card

Report card

Customer questionnaire

Toll free phone numbers

Customer visits

Focus groups

Online focus groups

Feedback through emails/internet

Employee feedback

Customer Complaints

Related to Product Related to Service Quality

1. Defective 1. Poor response

2. Unreliable 2. Slow response

3. Not meeting reqmt. 3. Behavior/courteousness

4. Higher expectation 4. Incompetence of team

5. Frequent break down 5. Persistent defect

6. Defective parts 6. Hidden cost in service

207

CUSTOMER COMPLAINTS

Guidelines for Effective Problem Resolution

1.

2. Act fast, especially the first response.

3. Understand the problem fully.

4.

5.

6. Clarify the steps needed to solve the problem.

7. Sitrep on progress.

8. Compensation for the inconvenience.

9. Give benefit of the doubt.

10. Try to regain good will.

208

CUSTOMER COMPLAINTS

CUSTOMER COMPLAINTS

Investigate customers experiences by actively getting feed back, both positive and negative, and then acting on it promptly

Develop procedures for complaint resolution that include empowering front line personnel.

CUSTOMER COMPLAINTS

Analyze complaints, but understand that complaints do not always fit into neat categories.

Work to identify process and material variations and then eliminate the root cause.

CUSTOMER COMPLAINTS When a survey response is received, a senior manager should contact the customer and strive to resolve the concern.

Communicate complaint information, as well as the results of all investigations and solutions, to all people in the organization.

CUSTOMER COMPLAINTS

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

rather than afterward through complaint analysis.

CUSTOMER RETENTION

CUSTOMER RETENTION

Top management commitment to the customer satisfaction.

Identify and understand the customers what they like and dislike about the organization.

1) sampled surveys on customer satisfaction, focus groups, interviews

CUSTOMER RETENTION

Develop standards of quality service and performance.

Recruit, train and reward good staff.

1) high employee retention significant effect on customer retention

Always stay in touch with customer.

CUSTOMER RETENTION

Work towards continuous improvement of customer service and customer retention.

Reward service accomplishments by the front-line staff.

CUSTOMER RETENTION

Customer Retention moves customer satisfaction to the next level by determining what is truly important to the customers.

SERVICE QUALITY

Customer service is the set of activities an

satisfaction.

It can be provided before, during, or after the sale of the product .

SERVICE QUALITY

Organization

Customer Care

Communication

Front-Line people

Leadership

SERVICE QUALITY

Organization

Identify each market segment.

Write down the requirements.

1) service quality manual prepared

Communicate the requirements.

2) through training, video projections, meetings

Organize processes.

Organize physical spaces. 3) hospital- causality, ICU , OP

SERVICE QUALITYCustomer Care

Deliver what is promised.

Make the customer feel valued.

Respond to all complaints.

Over respond to the customer.

Provide a clean and comfortable customer reception area.

Customer CareKeep promises to customers

Return customer calls promptly

Allot staff to handle customer problems

Treat customers with courtesy, respect and professionalism always

Evaluate customer satisfaction regularly

Search for customer-related improvements continuously

Deliver Products/Service promptly and efficiently

Give every customer complete and personal attention.

Customer CareMaintain a neat and clean appearance of self and work-place, at all times

Review and implement customer feedback and suggestions into current procedures when needed

Training and education to enhance job performance and commitment to customer care

Treat every customer as we would treat ourselves.

SERVICE QUALITY

Communication

Optimize the trade off between time and personal attention.

Minimize the number of contact points.

1) single door service

Provide pleasant, knowledgeable and enthusiastic employees.

Write document in customer friendly language.

2) web site should be customer friendly

SERVICE QUALITY

Front-Line people

Hire people who like people.

1)need to care , smile with a positive attitude

Challenge them to develop better methods.

Give them the authority to solve problems

2) empowered to resolve complaints

Serve them as internal customers.

Be sure they are adequately trained.

3) oral, written communication skills , problem solving skills

Recognize and reward performance.4) public rewards medals on republic day

SERVICE QUALITY

Leadership

1) every executive to spend time a few hours every month behind customer service desk.

Lead by example.

Listen to the front-line people.

Strive for continuous process improvement.

TQM Principles & Basic Tools

227


Customer Satisfaction

Types of Customers

Customer Supplier Chain

Customer Perception of Quality

Customer Feedback & Complaints

Customer Retention & Service Quality

Employee Involvement & Motivation

Needs, Empowerment & Team Work


Basic Tools

Introduction to 7 basic tools

Stratification Scatter diagrams

Employee Involvement

TQM principles & strategies pertaining toemployee involvementare:

Motivation

Teamwork

Training& mentoring

Recognition& Rewards

Performanceappraisal& feedback

Empowerment

Behavioral pattern of employees in anorganization

Self actualized

10 %

Fence sitters

80%

Difficult to improve

10 %

Employee Motivation

Motivation: Internal and externalforcesand influencesthat driveanindividualto achievecertaingoals.

Motivation theories of individual employees:

(Sigmund Frend)

Thistheory assumesthat the employeescannot be trusted and they

haveto be supervisedall the time. TheoryXcharacterizesemployeesasfollow:

o Avoid work

o No ambition

o No initiative

o Do not take responsibilities

o Needs security
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(Douglas Mc Gregor)

Accordingto this theory employeesseekfreedomto do difficult and

challenging jobs, all by themselves. Theory Y characterizesemployeesasfollow:

o Want to learn

o Work isa naturalactivity

o Haveselfdiscipline

o Developthemselves

o Haveselfconfidence
http://image.shutterstock.com/display_pic_with_logo/111187/111187,1257869897,5/stock-vector-good-employee-cartoon-series-40647904.jpg

AbrahamMaslowbelievesthat goodqualitiesare inherent in people

atleastat birth, althoughlater on they aregraduallylost. Hebelievesthat five basichumanneedsthat motivatethe employeesare:

o Self actualization needs

o Self Esteem needs

o Social needs

o Safety needs

o Physiological needs

Herzberg theory

Team Work:

Team work is not a natural human function

Management role in enabling team work

Use of Quality circles

Training & Development:

Training enables employees in understanding;

- Objectives of the organization

- His role

- His responsibilities

- His authority

- Understanding the nature of job

Experienced recruits need more orientation

Training is not a one time activity

Recognition & Reward:

Recognition of achievement is important

Select a few best performers

Reward teams, rather than individual

Performance Appraisal:Used for the development of employees

Each dept. head should prepare a action plan for each individual for whole year.

Performance of each employee should be reviewed on quarterly basis & reports submitted to mgnt.

Appraisals are used for several purposes aso Promotion

o Granting of additional increments

o Transfers

o Training

Empowerment:

Theprocessof displacingdecisionmakingdownwardsto the

workforce,or lower levelsof management,to enablethemto usetheir skillsmore effectivelyandflexibly. Theemphasisisoften on better engagementwith customers.

Seven Quality Control Tools

What is QC

Problem Solving ?

of a problem and the development of a permanent solution, is an integral part of the quality-

Not hit or miss, but objective and systematic

Not directed at symptoms, but rather at root causes

Statistical Process Control

The application of statistics to quality control hasenabled quick analysis and control of quality in all types of businesses.

STATISTICS : Collection, Organization, Analysis, Interpretation and Presentation of data.

The 7 Quality Tools are Problem Solving Tools which can

Help to identify and prioritise problems quickly and more effectively.

Assist the decision making process.

Provide simple but powerful tools for use in continuous

improvement activity.

Provide a vehicle for communicating problems and resolutions

throughout the business.

Provide a way of extracting information from the data collected.

The Seven QC Tools

Histograms

Control Charts

Run Charts

Pareto Charts

Cause and Effect Diagrams

Scatter Diagrams

Process Flow Charts

Lead Indicators of Quality

Variation indicates poor quality.

To measure variation, there are several

tools that can be used:

Histograms Run Charts Control Charts

Diagnostic Information

While lead indicators tell that there IS a

problem, diagnostic tools help determine

WHAT the problem is.

Cause-and-

Effect Diagrams

Scatter

Diagrams

Process Flow

Charts

Pareto Charts

While Lead indicators tell that there IS a

problem,

Diagnostic tools help to determine

WHAT the problem is.

Cause-and-

Effect Diagrams

Histograms

Histogramsarepowerfultoolsfor elementaryanalysisof data

thatcontainvariations.

A histogramis adiagramwhichrepresentstheclassinterval

andfrequencyin theform of arectangle.

Therewill be asmanyadjoiningrectanglesasthereareclass

intervals.

Example

The daily wages of 50 workers, in rupees, are given below

Histogram

0

5

10

15

20

25Fre

qu

ency

Category

7 Quality Tools

Control Chart

To identify common cause and special causevariations

Accordingto walterA.Shewhart

phenomenonwill be saidto be controlledwhen,throughthe pastexperience,wecanpredict,at leastwithin limits,how thephenomenoncanbeexpectedto varyin

Control Chart

Control ChartProcess control involves monitoring a production process and charting the results on a control chart.

If any of the points plotted falls outside the control limits, the process is out-of-control.

18

12

6

3

9

15

21

24

27

2 4 6 8 10 12 14 16

Sample number

Num

ber

of

defe

cts

UCL =

23.35

LCL =

1.99

c = 12.67

Run Chart

A run chart, alsoknown as a run-sequenceplot is a graphthatdisplaysobserveddatain a time sequence. Often, the datadisplayedrepresentsomeaspectof theoutput.

Whatit isusedfor

To show the output of a manufacturingor otherbusinessprocessover time.

Whento use

To monitorprocessperformance

In determiningwhen a change to a processmight haveoccurred.
http://en.wikipedia.org/wiki/Time_sequencehttp://en.wikipedia.org/wiki/Time_sequencehttp://en.wikipedia.org/wiki/Time_sequence

An Example of Using a Run Chart

An desireis to have

their product arrive to their

customerson time, but they have

noticedthat it takethesame

amount of time eachday of the

week.

They decided to monitor the

amountof time it takesto deliver

their product over the next few

weeks.

Check Sheet

Shifts

De

fect T

yp

e

Check Sheet

COMPONENTS REPLACED BY LAB

TIME PERIOD: 22 Feb to 27 Feb 1998

REPAIR TECHNICIAN: xxxx

TV SET MODEL 1013

Integrated Circuits ||||

Capacitors |||| |||| |||| |||| |||| ||

Resistors ||

Transformers ||||

Commands

CRT |

Pareto Charts

Paretochart, namedafter VilfredoPareto, is a type ofchartwhichcontainsboth barsanda line graph.The purpose of the Pareto chart is to highlight themost important amonga (typicallylarge)setof factors.The bars displaythe valuesin descendingorder, andthe line graph shows the cumulative totals of eachcategory,left to right.The left vertical axis is the frequencyof occurrence,but it can alternatively represent cost or otherimportant unit of measure.Theright vertical axisis the cumulativepercentageofthe total numberof occurrences,total cost,or total ofthe particularunit of measure.
http://en.wikipedia.org/wiki/Vilfredo_Paretohttp://en.wikipedia.org/wiki/Vilfredo_Paretohttp://en.wikipedia.org/wiki/Vilfredo_Pareto

Pareto chart

Cause and Effect Diagram

DevelopedbyKaoruIshikawa(1953)

The causeand effect diagramis also calledthe Ishikawa

diagramor thefishbonediagram.

It is a tool for discoveringall the possiblecausesfor a

particulareffect.

Themajorpurposeof this diagramis to actasa first stepin

problemsolvingbycreatingalist of possiblecauses.

Constructing a Cause and Effect Diagram

First, clearlyidentify and definethe problemor effect for

whichthe causesmustbe identified. Placethe problemor

effectat therightor theheadof thediagram.

Identifyall thebroadareasof theproblem.

Writein all thedetailedpossiblecausesin eachof thebroad

areas.

Each causeidentifiedshouldbe looked upon for further

morespecificcauses.

Viewthediagramandevaluatethemaincauses.

Setgoalsandtakeactionon themaincauses.

Quality

Problem

Materials

EquipmentPeople

Procedures

Cause and Effect Diagram

Fishbone Diagram

Quality

Problem

MachinesMeasurement Human

ProcessEnvironment Materials

Faulty testing equipment

Incorrect specifications

Improper methods

Poor supervision

Lack of concentration

Inadequate training

Out of adjustment

Tooling problems

Old / worn

Defective from vendor

Not to specifications

Material-

handling problemsDeficiencies

in product

design

Ineffective quality

management

Poor process

design

Inaccurate

temperature

control

Dust and

Dirt

Cause and effect diagrams

Advantages

making the diagram is educational in itself

diagram demonstrates knowledge of problem solving team

diagram results in active searches for causes

diagram is a guide for data collection

Cause and effect diagrams

To construct the skeleton, remember:

For manufacturing -

man, method, machine, material

For service applications

equipment, policies, procedures, people

Flowcharts

Graphical description of how work is done.

Used to describe processes that are to be improved.

A flowchartis a common type of diagram, that represents

an algorithmor process, showing the steps as boxes of

various kinds, and their order by connecting these with

arrows.

Flowchartsareusedin analyzing,designing,documentingor

managingaprocessor programin variousfields.

a flowchartfor whateveryou do. Until you do, you

do not knowwhatyouaredoing,youjusthaveajob.

-- Dr. W. Edwards Deming.
http://en.wikipedia.org/wiki/Diagramhttp://en.wikipedia.org/wiki/Algorithmhttp://en.wikipedia.org/wiki/Process

Symbols

Startandendsymbols

Representedas circles,ovalsor roundedrectangles,usuallycontainingthe word"Start"or "End", or anotherphrasesignalingthestartor endof a process,suchas"submitenquiry"or "receiveproduct".

Arrows

Showingwhat'scalled"flow of control" in computerscience. An arrowcomingfrom onesymbolandendingat anothersymbolrepresentsthatcontrolpassestothesymbolthearrowpointsto.

Processingsteps

Representedas rectangles. Examples: "Add 1 to X"; "replaceidentifiedpart";"savechanges"or similar.

Input/Output

Representedasaparallelogram. Examples: GetX from theuser; displayX.
http://en.wikipedia.org/wiki/Control_flowhttp://en.wikipedia.org/wiki/Control_flowhttp://en.wikipedia.org/wiki/Control_flowhttp://en.wikipedia.org/wiki/Control_flowhttp://en.wikipedia.org/wiki/Control_flowhttp://en.wikipedia.org/wiki/Parallelogram

The Seven QC Tools

Histograms

Control Charts

Run Charts

Pareto Charts

Cause and Effect Diagrams

Process Flow Charts

Scatter Diagram

A scatterdiagramis a tool for analyzingrelationshipsbetween

two variables.

One variableis plottedon the horizontalaxisand the other is

plotted on the verticalaxis. The patternof their intersecting

pointscangraphicallyshowrelationshippatterns.

When to use it

Useascatterdiagramto examinetheoriesaboutcause-and-effect

relationshipsand to searchfor root causesof an identified

problem.

Title and Label the Diagram

Interpret the dataScatter diagrams will generally show one of six possible correlations between the variables

Types of correlations

Strong Positive Correlation

Strong negative Correlation

weak Positive Correlation

Strong negative Correlation

Complex Correlation

week Correlation

Strong Positive

Correlation

The value of Y clearly

increasesasthe valueof

X increases.

Scatter Diagram

Strong Negative

CorrelationThevalueof Y clearlydecreases

asthevalueof X increases.

Scatter Diagram

Weak Positive

Correlation

The value of Y increases

slightlyas the valueof X

increases.

Scatter Diagram

Weak Negative

Correlation

The value of Y

decreasesslightly as the

valueof X increases.

Scatter Diagram

Complex CorrelationThe value of Y seemsto be

relatedto the valueof X, but the

relationship is not easily

determined.

Scatter Diagram

No Correlation

There is no demonstrated

connection between the two

variables.

Scatter Diagram

Summary

This presentationprovided learning material for each ofsevenbasictoolsof quality.

As seenthroughthe presentation,thesetools arerathersimpleandeffective.

Why do we need the 7 QC tools?

TQM is data driven: data are impersonal; opinions are not.

Experience is gained quickest by collecting and analyzing data.

The 7 QC tools provide common methods of analysis to help problem solving teams operate effectively.

Unit - III

New 7 Management Tools &

Advanced Tools

287

New 7 Management Tools

1. Affinity diagram

2. Relations diagram

3. Tree diagram

4. Matrix diagram

5. Prioritization diagram (Matrix data analysis diagram)

6. Process Decision Program Chart (PDPC)

7. Activity Network Diagram (Arrow Diagram)

Advanced QC Tools

Quality Function Deployment (QFD)

Root cause analysis

Taguchi method (Taguchi loss function)

Mistake proofing (Poka-yoke)

Failure Mode & Effects Analysis (FMEA)

FMECA

Fault Tree Analysis

etc.

Quality Management Systems

(ISO 9000)

Affinity diagrams:

Advantages of Affinity Diagram

A team can generate a large number of ideas in a relatively short period of

time.

Encourages participation because every ideas find their way into

the process.

Encourages thinking when only solutions are emerging from a

group.

Facilitates the exploration of new and logical thought patterns by

encouraging people to react from a creative response level rather than the

intellectual and logical levels.

An effective way to deal with large and complex issues which may be

the brainstorming of a team.

Consensus and support are reached on a solution because all participants

have in the process.

Limitations of Affinity Diagram

The use of technical language skills may require

detailed clarification of ideas which is not allowed

because ideas are generated in silence and without

discussion.

Group members must have the necessary expertise on

the issue.

Getting a non-traditional group together that is

do.

Quality Management System

ISO 9000 STANDARDS

ISO 9001Design, Development, Production, Installation & Servicing

ISO 9002Production, Installation & Servicing

ISO 9003Inspection & Testing

ISO 9004Provides guidelines on the technical, administrative and human factors affecting the product or services.

BENEFITS OF ISO 9000 STANDARDS

Achievement of international standard of quality.

Value for money

Customer satisfaction

Higher productivity

Increased profitability

Improved corporate image

Access to global market

Growth of the organization

Higher morale of employees

LIMITATIONS OF ISO 9000

ISO 9000

Say What You Do

DO What You Say

ISO 14000 ENVIRONMENTAL MANAGEMENT SYSTEM

The overall aim of the Environmental Management systems is to provide protection to the environment and to prevent pollution

BENEFITS OF ENVIRONMENTAL MANAGEMENT SYSTEM

GLOBAL BENEFITS

Facilitate trade & remove trade barrier

Improve environmental performance of planet earth

Build consensus that there is a need for environmental management and a common terminology for EMS

Organizational BenefitsAssuring customers of a commitment to environmental management

Improve public relation

Increase investor satisfaction

Market share increase

Conserving input material & energy

Better industry/government relation

Low cost insurance, easy attainment of permits & authorization

BENEFITS OF ENVIRONMENTAL MANAGEMENT SYSTEM

VISION STATEMENT

It is a short declaration of what an organization aspires to be in future

Example :

Disney Theme Park- Happiest place on earth

MISSION

It answers the following questions

- Who we are?

- Who are the customers?

- What we do?

- How we do it?

It describes the function of the organization. It provides a clear statement of purpose for employees, customers & suppliers

QUALITY POLICY

It isa guidefor everyonein the organizationasto how they should provide products andservicesto the customers.

QUALITY POLICY

Quality is first among equals

Meet the needs of the internal & external customers

Equal or exceed competition

Continuously improve the quality

Utilize the entire workforce

QUALITY COUNCIL

The council is composed of

1. Chief Executive Officer

2. Senior Managers

3. Management Representative

4. A Representative from the Union

Duties of the Quality council

Develop the core values, vision statement, mission statement and quality policy statement

Develop the strategic long term plan with goals and Annual Quality Improvement Program with objectives

Create the total education and training plan

Determine and monitor the cost of poor quality

Duties of the Quality council

Determine the performance measures

Determine projects those improve the process

Establish multifunctional project and work group teams

Revise the recognition and rewards system

A typical Quality council meeting agenda

Progress report on teams

Customer satisfaction report

Progress on meeting goals

New project teams

Benchmarking report

The 5S Method

Seiko - Sort ( Proper arrangement )

Seiton - Set ( Systematic or Orderliness )

Seiso - Shine ( Sweep or clean-up )

Seiketso - Standard ( Personal cleanliness )

Shitsuke - Sustain ( Self-discipline )

Palaniappan Kannan CFSE

333

WHAT IS FAULT TREE ANALYSIS (FTA)?

FTAis a deductivelogicmodel techniques.. a commonhazard

identificationtool.

Thedeductionbeginswith a statedtop levelhazardous/undesired

event.

It useslogicdiagramsand BooleanAlgebrato identify single

eventsandcombinationsofeventsthatcouldcausethetopevent.

Probabilityof occurrencevaluesareassignedto the lowestevents

in the tree in orderto obtainthe probabilityof occurrenceof the

topevent.


334

FAULT TREE MAIN SYMBOLS.

Commonly Used Symbols Occasionally Used Symbols

OR gate Incomplete event

AND gate An External Event

An Event / Fault Inhibit gate

Basic Event


335

FTA Symbols Explained

Basic Event: A lower most event that can not be further developed. E.g. Relay failure, Switch failure etc.,

An Event / Fault: This can be a intermediate event (or) a top event. They are a result logical combination of lower level events.E.g. Both transmitters fail, Run away reaction

OR Gate: Either one of the bottom event results in occurrence of the top event. E.g. Either one of the root valve is closed, process signal to transmitter fails.

AND Gate: For the top event to occur all the bottom events should occur. E.g. Fuel, Oxygen and Ignition source has to be present for fire.


336

FTA Symbols Explained

Incomplete Event: An event which has scope for further development but not done usually because of insufficient data. E.g. Software malfunction, Human Error etc.,

External Event: An event external to the system which can cause failure.E.g. Fire.

Inhibit Gate: The top event occurs only if the bottom event occurs and the inhibit condition is true.


337

Simple Examples

Example 1:

Example 2:

Transmitter Failed

OR

Transmitter 1

Failed

Transmitter 2

Failed

Valve Failed

Valve 1

Failed

Valve 2

Failed

AND

0.1 0.2

0.28

0.001 0.002

0.000002(2E-06)


338

Procedure

Procedure for Fault Tree Analysis

Define TOP

event

Define overall

structure.

Explore each

branch in

successive level

of detail.

Solve the fault

tree

Perform

corrections if

required and

make decisions


339

Define Top Event:Use PHA, P&ID, Process description etc., to define the top event.

If its too broad, overly large FTA will result. E.g. Fire in process.

If its too narrow, the exercise will be costly. E.g. Leak in the valve.

The boundaries for top event definition can be a System, Sub-system, Unit, Equipment (or) a

Function.

Some good examples are: Overpressure in vessel V1, Motor fails to start, Reactor high

temperature safety function fails etc.,

Procedure


340

Procedure for Fault Tree Analysis

Define TOP

event

Define overall

structure.

Explore each

branch in

successive level

of detail.

Solve the fault

tree

Perform

corrections if

required and

make decisions

Procedure


341

Define overall structure:

Determine the intermediate events & combination of failure that will lead to the top event.

A

tqm and reliability engineering

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