Total Quality Management

9 September 2016

Hence new ways of doing global business has to be evolved Slides by : Anjan Ghosh Why TQM ? Is it a short term fad …… or a long term strategic necessity ? External Developments …. ….. reshaping our lives …… restructuring organisations …….. redefining requirement parameters Change is a constant ……… ………………getting more complex ……………….. becoming faster …. accelerating …………………uncertainty ….. diversity … variability Managing & Adapting to change is critical for organisation survival Slides by : Anjan Ghosh

Coping Successfully with External Developments depends on The Organisational Characteristics External Developments Adaptability for survival Organisational Characteristics will determine success or failure TQM helps organisations to adapt continuously to these changes and sustain their performance by reshaping their strategies , improving the culture and improving systems and processes •Vision & Strategy •Structure & Functions •People & Culture •Systems & Processes Slides by : Anjan Ghosh What is Quality ? Some common parameters long life , durability • reliability • fitness for use • zero defects • performance as per specifications • customer satisfaction etc • Genichi Taguchi’s definition of Quality – a revolutionary concept of ”Loss Function” • loss to society – more the loss , less the quality The Japanese Bullet Train is considered to be an example of excellent Quality . But according to the Taguchi Loss Function it may not be so as there are many losses to society such as farmland depletion , high cost , high energy need etc that may not justify the advantage of time saving…

Total Quality Management Essay Example

Slides by : Anjan Ghosh ISO-9000 definition of quality “ degree to which a set of inherent characteristics fulfils requirements” The requirements are of customers . There are millions of customers with their individual needs and requirements . The more the requirements fulfilled the higher is the perception of quality . Is Quality absolute ? It is not absolute . It depends on each person . It depends on country , culture , time etc . What we may have called high quality 20 years back may be low quality now . So it is relative .

But there are some common factors regarding quality that are more or less constant eg . performance , durability , reliability etc ….. Slides by : Anjan Ghosh What is a Product ? Product – ( as per ISO 9000 definition ) Services (eg. Transport, hospital) Software (eg. Computer program, dictionary) Hardware (eg. , chair, spark plug) Processed material (eg. Lubricant, cement) Who is a customer ? Customer Uses the product ( consumers , end-users ) Distributes the product ( wholesellers , dealers ) Influences others about the product

Slides by : Anjan Ghosh Who are our internal customers ? The next person / dept. impacted by our product or service is our internal customer . Eg production dept. is the internal customer of stores dept. The Despatch dept. is the internal customer of production dept. Satisfying internal customers leads to satisfying external customers . Internal customer dissatisfaction means that the Products & processes are having problems and not as per specifications which may be sold to external customers leading to their dissatisfaction Slides by : Anjan Ghosh Dimensions Of Product Quality • Performance – primary operating characteristics • Features – secondary aspects of performance • Reliability – probability of successful performance • Conformance – degree to which operating characteristics meet specified standards • Durability – measure of product life • Serviceability – ease and cost of repair • Aesthetics – look , feel , smell ….. • Perceived Quality – reputation , image Slides by : Anjan Ghosh 10 Dimensions of Service Quality • Reliability – consistency of performance ( dependability ) • Responsiveness – willingness, timeliness, readiness…. Competence – skills & knowledge for performing service • Access – approachability & ease of contact • Courtesy – politeness , friendliness ….. • Communication – information , relationship management • Credibility – trustworthiness , honesty , belief ….. • Security – freedom from risk , confidentiality . • Understanding customer needs – specific requirements • Tangibles – physical evidence of service , facilities, tools ,appearence Slides by : Anjan Ghosh What is TQM ? TOTAL QUALITY MANAGEMENT Involving all Stakeholders (People) Processes Systems Functions Products At all time

Fullfillment of Requirements Of Customers Planning Implementing Controlling Reviewing Improving Slides by : Anjan Ghosh What are the goals of TQM ? • process improvement • waste reduction • customer satisfaction • people involvement • organisational performance • improvement of teamwork • make jobs enjoyable & satisfying • waste reduction • Slides by : Anjan Ghosh TQM Concepts & Philosophy Systems & Standards :- Tools & techniques :- examples :- examples :- examples :- Customer orientation Process improvement People involvement Effective leadership Empowerment Core Values Win-Win relationships

ISO 9000 ISO 14001 TS 16949 MIL-105 D BIS / DIN / JIS IEC 65 HACCP 5-S 7 QC Tools SPC QFD FMEA TPM Benchmarking Waste Reduction Prevention better than cure Bus. Excellence Models OHSAS 18000 BBSC 6 Sigma PDCA Cycle Slides by : Anjan Ghosh 3 Most Important Philosophies/ Focus Areas • Customer Orientation Internal , External • Process Improvement Kaizen , Breakthrough • People Involvement QC? s, SGA? s , Suggestions Slides by : Anjan Ghosh Process is the way we do things Inputs •Man •Machine •Material •Method •Money •Info Process Outputs feedback Target •Goods •Services •Info Slides by : Anjan Ghosh Elements of a Process

Controls, Procedures Input Material, Information Process Mechanisms People, Machines Output Material, Services Information Noise variables causing the process to vary or destabilise Slides by : Anjan Ghosh What is a process ? A Process Is… suppliers cust. suppl. cust. suppl. cust. suppl. customers … a chain of activities transforming input into output by adding value Slides by : Anjan Ghosh Process Structure Main Process Sub-process Work Process Support Processes Slides by : Anjan Ghosh Functions ( in departments . ) vs. Processes Cross-functional processes across depts. Dept. 1 Dept. 2 Dept. 3

Vertical hierarchy of authority in Departments ; Horizontal workflow of the process that runs across departments Slides by : Anjan Ghosh What is a system ? From System 2 P4 P1 P2 P5 P6 P3 System 1 Set of interrelated & interacting processes ( P1 , P2 … etc ) is a system Slides by : Anjan Ghosh A Process Must Be: Characteristics of a good process :Effective : Efficient : Robust : Flexible : Meeting Customer Needs , meeting organisational objectives Optimum use of resources, Least Cost, Least Time Mistake-Proofed, does not become unstable with change of conditions and persons Easy to Change according to needs of business & ustomer requirements Slides by : Anjan Ghosh Every Process has to Be: • owned ( responsibility fixed) • documented ( written & approved ) • • • • measured ( important parameters) designed ( planned & defined) controlled ( made stable & capable ) improved ( bettered ) Example : a production process Slides by : Anjan Ghosh The 3 Voices we need to measure for controlling & improving organisational performance By P D C A cycle Supplier Process Customer Voice Of Supplier Voice Of Process Voice Of Customer Feedback Voice means parameters of measuring performance and effectiveness Slides by : Anjan Ghosh Improving Thru Small Steps & Big Strides ….

Both are reqd . Breakthrough improvement Incremental improvement (Kaizen) Value Time • Incremental Triggered by work experience No new technology Gradual – Several in short time Anybody can contribute Low resources • Breakthrough Triggered by business strategy Innovation Few in long span of time Require technical expertise Large resources Slides by : Anjan Ghosh P-D-C-A Cycle for Improvement ( Deming Wheel ) Continual Improvement Replan new target • Standardize the new process after taking corrective actions A ct P lan • Objectives / targets • Strategies • Activities • Responsibilities • Resources • Time frame Check / Measure The result • If results meet target go to Act phase • If not , go back to Plan C heck Do • Implement plan • Change process All processes need to go through the P-D-C-A cycle for improvements Slides by : Anjan Ghosh Two sources of variation in a process ( noise variables ) • Random causes ( or chance causes) – Normal variation – Within control limits – Non-assignable Examples:Small ambient changes Material Tolerence Shift operators • Special causes ( or assignable causes ) – Abnormal variation – Outside control limits – Assignable Examples:Temp set point changes Out-of-spec materials Untrained operator

Slides by : Anjan Ghosh Process Control Left to itself a process will drift from its set-point due to the chance and assignable causes . If the drift is too much the process may go outside the tolerance limits or target values . So there is a need for controlling the process by means of continuous feedback and corrections – either manual or automatic . The ability of a process to stay within the tolerance limits ( and hence In control ) is called its stability The ability of a process to go near to the target value is called Its capability Slides by : Anjan Ghosh Requirements of control knowledge of what is to be done – procedures , instructions , standards • knowledge of what is being done – feedback , monitoring & measurement • means of adjusting process – correction and corrective action Slides by : Anjan Ghosh Standard Organisations International Organisation for Standardisation – ISO (Gives all standards except electronics and electricals) International Electro-technical Commission – IEC (Gives all standards relating to electricals and electronics ) American Society for Testing & Materials – ASTM Deutsches Institut fur Normung – DIN Japanese Industrial Standards – JIS

Bureau of Indian Standards – BIS Slides by : Anjan Ghosh International Organisation for Standardisation – ISO • Apex body consisting of 161 member countries – HQ Geneva • Set up in 1947 to bring commonality in standards between countries • ISO works with Technical Sub-committees and working groups of experts • Have till date published about 18,000 standards ISO 9000 series of standards :• Consists of about 150 experts from 52 countries (member bodies) • Consists of Standardisation Bodies, Consultants, Certification Bodies, Quality Managers of Industries, Industry Representatives, Consumer Bodies, Professors etc. TC-176 set up in 1975 . ISO 9001 – 1st edition 1987 , 1994 , 2000 , 2008 Slides by : Anjan Ghosh QMS RELATED STANDARDS – ISO 9000 Series ISO 9000 : 2005 – Quality Management System FUNDAMENTALS AND VOCABULARY ISO 9001 : 2008 – Quality Management System REQUIREMENTS ISO 9004 : 2009 – Quality Management System GUIDELINES ISO 19011 : 2011 – Guidelines on QMS / EMS AUDITING ISO 10012 :2003 – Measurement Management System REQUIREMENTS Plus 13 other associated standards / guidelines …..

Slides by : Anjan Ghosh Based on ISO 9000 series other industries have made their Own standards • TL-9000 for Telecom sector • AS-9100 for Aerospace • ISO/TS-16949 for Automotive • ISO 22000 for Food Safety • ISO 26000 for Social Accountability • etc ISO –9000 : 2005 lays down Principles , concepts , vocabulary It also lays down the 8 management Principles which Every organisation must focus on . Slides by : Anjan Ghosh Quality Management Principle 1 “Customer Focussed Organization”

Organizations depend on their customers and therefore should understand current and future customer needs, meet customer requirements and strive to exceed customer expectations. Slides by : Anjan Ghosh Quality Management Principle 2 “Leadership” Leaders establish unity of purpose and direction of the organization. They create the internal environment in which people can become fully involved in achieving the organization? s objectives. Slides by : Anjan Ghosh Quality Management Principle 3 “Involvement of People”

People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization? s benefit. Slides by : Anjan Ghosh Quality Management Principle 4 “Process Approach” A desired result is achieved more efficiently when related resources and activities are managed as a process. Slides by : Anjan Ghosh Quality Management Principle 5 “System Approach to Management” Identifying, understanding and managing a system of interrelated processes for a given objective contributes to the effectiveness and efficiency of the organization.

Slides by : Anjan Ghosh Quality Management Principle 6 “Continual Improvement” Continual improvement is a permanent objective of the organization. Slides by : Anjan Ghosh Quality Management Principle 7 “Factual approach to decision making” Effective decisions are based on the analysis of data and information. Slides by : Anjan Ghosh Quality Management Principle 8 “Mutually beneficial supplier relationships” Mutually beneficial relationships between the organisation and its suppliers enhance the ability of both organisations to create value.

Slides by : Anjan Ghosh The ISO-9000 : Quality System Model Continual improvement of the quality management system vision & planning Customers requirements Management Responsibility Customers satisfaction Resource Management Measurement Analysis & Improvement Product Realisation Product input output Organisation Slides by : Anjan Ghosh Process-based structure of ISO-9001:2008 • Scope ( clause 1) • Normative References ( clause 2 ) • Terms & Definitions (clause 3 ) • Quality management System ( clause 4) General requirements, documentation requirements , Q.

Manual , Control of documents & records • Management responsibility ( clause 5 ) Commitment, Customer focus, Policy, Planning, Responsibility, Communication, Review • Resource management ( clause 6 ) Human resources, Infrastructure, Work environment • Product realization ( clause 7 ) Customer Processes , Design, Purchasing, Operations, Calibration • Measurement, analysis and improvement ( clause 8 ) Customer satisfaction, Audit, Process / product control, Non-conforming product, Data analysis, Improvement Slides by : Anjan Ghosh

Scope ( clause 1) ( where ISO-9001 can be applied ) General ( clause 1. 1 ) ISO-9001 International Standard specifies requirements for a quality management system where an organization a) needs to demonstrate its ability to consistently provide product that meets customer and applicable statutory and regulatory requirements, and b) aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable statutory and regulatory requirements.

Application ( clause 1. 2 ) All requirements of this International Standard are generic and are intended to be applicable to all organizations, regardless of type, size and product provided. Where any requirement(s) of this International Standard cannot be applied due to the nature of an organization and its product, this can be considered for exclusion. Exclusion only allowed under clause 7 . Slides by : Anjan Ghosh ISO-9001 Broad Requirements • Quality Policy to show intent and purpose of top management • Setting up of objectives and targets to support policy Planning and implementation of activities to reach the objectives • Documentation of the processes – mapping of main ,sub. work & support processes • Documentation includes – Quality manual where broad aspects of the QMS is defined – Procedures that are reqd to run , control and improve the processes – Work instructions and test methods used by operating persons – relevant records that show QMS is being followed – relevant standards , drawings , specifications etc …… Slides by : Anjan Ghosh ISO-9001 Broad Requirements ( contd.. ) People should be competent and trained • Proper infrastructure and work environment for quality should be provided • Products should be designed based on customer requirements and validated that it meets the requirements before the product is delivered to customer • Measuring instruments to be calibrated against a standard reference • All processes , including customer satisfaction , to be measured and analysed • Periodic Internals Audits to be carried out of the QMS and reported to management • Management to periodically review the QMS and take appropriate corrective and preventive actions Continual improvement shall be a permanent objective and evidence demonstrated Slides by : Anjan Ghosh 3 Types of Solutions to Problems • Correction – Action to eliminate a detected non-conformity. • Corrective Action – Action to eliminate the cause of a detected non-conformity. • Preventive Action – Action to eliminate the cause of a potential non-conformity. Slides by : Anjan Ghosh Types of Data Data Qualitative (Tall, Fair…) Quantitative Variable Attribute (ok, not ok ; colour) Discrete (2,3….. ) Continuous (2. 33, 5. 09……) • Primary Data – Collected for specific purpose directly from field of enquiries and used by same person. Secondary Data – Compiled from some other source by persons who have not collected the original data. Slides by : Anjan Ghosh Measures of Central Tendency Mean (Average): Sum divided by no. of observations. Median : Value of middle-most item when observations are arranged in order of magnitude. : Value which occurs with maximum frequency. Mode Slides by : Anjan Ghosh Measures Of Dispersion ( Spread ) Dispersion Absolute Measures Range Quartile Deviation Mean Deviation Standard Deviation Relative Measures Coefficient of Variation Coefficient of Quartile Deviation

Coefficient of Mean Deviation Slides by : Anjan Ghosh Measures of Dispersion • • • Range = Maximum – Minimum Quartile Deviation = Q3 – Q1 2 Mean Deviation = 1/n xi – x • • Standard Deviation = Co-efficient = 1/n (xi – x) 2 Standard Deviation X 100 Mean The two most important with which we work are Range & Standard Deviation Slides by : Anjan Ghosh Tools / Techniques of Problem Solving 7 Quality Control (QC) Tools • Check sheet / Tally chart • Pareto Chart • Ishikawa Diagram / Fishbone diagram / Cause-Effect Diagram • Histogram • Scatter diagram • Run chart • Control chart

Slides by : Anjan Ghosh Check Sheet (Tally Chart) example For a factory making light bulbs – the breakup of type of defects for one week Is there any pattern ? Defect Type Filament fused Mon 8 Tue 9 Wed 8 Thu 7 Fri 6 Sat 5 Pole disconnection Heat sealing of glass Low wattage Manual Soldering bad 6 5 28 48 16 3 27 37 28 6 25 11 5 2 28 10 17 3 33 10 22 4 28 11 Slides by : Anjan Ghosh Pareto Chart Example Vital few approx 80% Parameter Being Measured Example : % of Defects Trivial many approx 20% A B C D E F G H Type of Defect Slides by : Anjan Ghosh Cause And Effect Diagram Example

People New joinees Untrained operator Material Too high dross Too thick Cork spray Frequent change of operator High absenteeism Carelessness Recording of defects not done W. I. Not displayed Alloy not proper High Fe Content Cooling fluid inconsistent Does not follow P. I. Dilute Heater fused Shelf life over Pot temp. low Set point drifts Spraying not proper Can too Heavy to hold Running at higher speed No SPC Circulation of cooling water Cycle time lower Thermo couples not working Maintenance not done Cutting blade blunt Life over Low temp. Heater fused High rejects at Grid casting

Fouling with pipe Ladle jerking Cam shaft worn out Mould misaligned Too much vibration Setting nuts loose Method / Process Machine Slides by : Anjan Ghosh Histogram Example Histogram showing marks obtained by Students in a class test Number 80 60 40 20 10-15 16-20 21-25 26-30 31-35 36-40 41-45 Class interval ( marks ) Slides by : Anjan Ghosh Scatter Diagram Interpreting the Data Positive Correlation y 4. 5 4. 0 3. 5 150 400 650 x Possible Positive Correlation y 4. 5 4. 0 3. 5 150 400 650 x y 4. 5 4. 0 3. 5 150 No Correlation 400 650 x Possible Negative Correlation y 4. 5 4. 0 3. 5 150 400 650 x 4. 4. 0 3. 5 y Negative Correlation 150 400 650 x Slides by : Anjan Ghosh Line Diagram (Run Chart) Example Plotting Data (y axis) Average Measurement (x axis) Time or sequence Slides by : Anjan Ghosh Ave. Weekly Participant Rating 3. 0 3. 5 4. 0 4. 5 5. 0 R X Wk # 2. 0 1. 8 1. 6 1. 4 1. 2 1. 0 . 8 . 6 . 4 . 2 1. 01 1. 27 0. 48 1. 32 1. 52 1. 03 1. 15 1. 07 0. 70 2. 05 0. 95 0. 99 1. 06 1. 21 1. 33 0. 78 1. 21 1. 23 1. 08 1. 64 1. 20 0. 98 0. 91 1. 19 1. 03 3. 76 4. 21 4. 29 4. 36 4. 13 3. 77 4. 17 4. 21 4. 22 4. 00 4. 30 4. 20 4. 32 4. 18 4. 02 3. 71 4. 08 4. 23 3. 98 4. 46 3. 96 3. 63 4. 48 4. 30 4. 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 X & R Chart X UCL R Control Charts Example LCL LCL UCL . Slides by : Anjan Ghosh Why-why Analysis :- ask repeated questions , at least 5 Conveyor belt stopped Why did m/c stop Why did motor stop Why armature coil burnt Why high current in coil Why shaft bearing jammed Why no lubrication oil So Final action :Add lubricating point in Preventive Maintenance Schedule Slides by : Anjan Ghosh Driving Motor Replaced (Immediate Action) motor stopped armature coil burnt high current in coil shaft bearing jammed no lubrication oil not part of preventive Maintenance Sigma : A Methodology to reduce rejection & variation • The most important objective of any organisation would be to maximise Customer Satisfaction thru – high Quality of products and services – least integral Cost – on time Delivery • In many cases these are not possible due to high rate of defects , scrap and waste in products and services due to deficiencies in design , incapable or unstable processes , deviations in materials , weak measurement systems , etc . • If the root causes can be detected and actions taken , the defects can be brought down and ultimately eliminated . Instead of ad-hoc fire-fighting approaches , a structured methodology would have much more probability of success . Slides by : Anjan Ghosh 6 Sigma : A Methodology to reduce rejection & variation • Variation is natural and random . But when variation becomes too large and assignable causes creep in – defects occur . So defects must be reduced by eliminating the assignable causes and limiting the effects of the natural ( random ) causes . • Over the past decades quality engineers have been trying different tools and techniques to reduce variation . All these tools and techniques , fortified by more powerful ones , have been collected in a basket and given the name “ 6 Sigma “ . It was invented by Motorola in the 1980? s . • 3 Sigma process has 66807 PPM reject level in the long run ( Cpk = 1 ) 6 Sigma process has 3. 4 PPM reject level in the long run ( Cpk = 2 ) Slides by : Anjan Ghosh The Six Sigma Project Methodology – DMAIC Cycle Six Sigma Improvements are done through 5 – Stage Projects. Define Measure Analyse Improve Control- Determine what needs to improve , select parameters , set targets, set up teams , plan actions – Current state against desired state.

Gather data . – From data find root causes of the gaps by using various statistical techniques . – Select and implement best solutions by using various tools / techniques – Long-term sustainability and monitoring mechanisms. Slides by : Anjan Ghosh Poka-Yoke – Mistake Proofing Prevention is better than cure The earlier the better 85 % of failures arise due to wrong / insufficient design of product or manufacturing process . So to improve quality and prevent failures / errors it has to be taken care in design and not depend on person „s skills or judgement.

Anybody can and should practice poka yoke in the workplace. Poke yoke does not necessarily require any complicated science or engineering sometimes it just needs common sense and the appropriate poka yoke device – and the will to do zero defects . Poka yoke devices should have the following characteristics: 1) 2) 3) 4) 5) useable by all ; simple to install; does not require continuous attention from person (ideally, it should work even if the person is not aware of it); low-cost; provides instantaneous feedback, prevention, or correction. Slides by : Anjan Ghosh Examples of Poka Yoke ) A jig that prevents a part from being misoriented during assembly 2) Non-symmetrical screw hole locations that would prevent a plate from being screwed down incorrectly 3) Electrical plugs that can only be inserted into the correct outlets 4) Notches and assymetric pin configuration in computer connectors 5) A flip-type cover over a button that will prevent the button from being accidentally pressed 6) Sounds alarm and does not start car if doors are not locked properly 7) A punching tool works only when operator presses two different switches with two hands and holds them down 8) A wrapping machine won’t work if serial number is missing

Slides by : Anjan Ghosh HOUSE KEEPING AND “5-S” Keeping your workplace clean & well organised Organized and tidy workplace reduces errors / rejects , improves productivity • • • A place for everything, and everything in its place To develop a sense of standardized operations 5-S is basic to all processes and is a pre-requisite for any management system including , QMS , EMS , Health & safety Slides by : Anjan Ghosh

Housekeeping & Workplace Organization • Housekeeping While many people may consider housekeeping an unappealing topic, we should realize that housekeeping is closely tied to many important aspects of running a world-class organisation. For example, there is a strong linkage between the level of housekeeping and the level of scrap, machine breakdowns, accidents, absenteeism, inventory and improvement suggestions. If we understand this linkage well, rather than taking a look at each issue independently, each of us should better understand what actions are required to increase improvement activities.

Housekeeping is everybody’s job. Slides by : Anjan Ghosh Housekeeping & Workplace Organization • Workplace Organization Housekeeping is tied closely to better workplace organization. The value of clean floors and machines is not simply a pleasing appearance. Clean surfaces expose problems such as oil leaks and cracks so that corrective action can be taken as early as possible. Similarly, in organizing dies or tools, it does not make much sense to nicely orient the dies or tools in the rack if the most frequently used dies are far away from the machine.

Housekeeping and workplace organization have a definite economic impact. Slides by : Anjan Ghosh 5-S & Housekeeping Some Examples of Bad Housekeeping • Materials lying on floor. • Windows & emergency exits blocked . • Unmarked shelves/ racks. • Unclean toilets. • Wrong tool in tool box. • Dangling wires. • Obsolete documents in current files. • Oil dripping from leaks. • Material without identification. • Notice board not updated. • Water stagnating in drains. • Clock slow/ fast. • Rejected material in ok area. • No marked areas for office furniture. Slides by : Anjan Ghosh Consequences of poor Housekeeping Large amount of defective products • Waste of untraceable (lost) material • Large number of m/c breakdowns • Inefficient routing of material flow • High inventory levels • Low morale & motivation • High level of absenteeism • Low number of improvement suggestions • High obsolescence • Lost time in looking for tools • Concealed problem area? s • Unaccounted work in progress and spare parts • Safety & health problems • Shabby & dirty looks • Low confidence of customers & visitors • Slides by : Anjan Ghosh THE FIVE PILLARS OF HOUSEKEEPING ( 5-S ) BUSINESS EXCELLENCE SEIRI SEITON SEISO SEIKETSU SHITSUKE

PRINCIPLES OF BETTER WORKPLACE ORGANISATION Slides by : Anjan Ghosh The 5 Pillars of Housekeeping Seiri (Structurise) – Take out unnecessary items and dispose them away. Keep only essentials. Seiton (Systematise) – Arrange necessary items in a proper order so that they can be easily located and picked up for use. Seiso (Sanitise ) – Clean the workplace thoroughly using proper tools & equipment. Seiketsu (Standardise) – Maintain a high standard of housekeeping at all times. Check & audit periodically. Shitsuke (Self-Discipline) – Train and motivate people to follow good housekeeping practices & discipline.

Slides by : Anjan Ghosh Housekeeping What can I gain from 5-S ? • • • • • • • 5-S makes one’s workplace more pleasant 5-S helps in work efficiency 5-S and safety go hand-in-hand 5-S leads to better quality & higher productivity 5-S leads to waste reduction & hence lower costs 5-S leads to lower inventories & on-time deliveries 5-S leads to lower machine downtimes Slides by : Anjan Ghosh Lean Manufacturing Lean is about doing more with less: such as less time, inventory, space, labor, and money. “Lean manufacturing”, aims at eliminating waste, simplifying procedures and speeding up production.

Also known as Toyota Production System (TPS) as its principles were first proposed and put to use in Toyota by Taiichi Ohno during the 1970? s . This system, more than any other aspect of the company, is responsible for having made Toyota the respected company it is today. Toyota has long been recognized as a leader in the automotive manufacturing and production industry. [ By eliminating waste you can do more with less: Less capital equipment Less floor space Less operator effort Less direct labor Less indirect labor Less inventory Less lead time Slides by : Anjan Ghosh

Lean identifies seven types of waste ( Muda in Japanese ) : 1. Over-Production – A product that cannot be sold or has to be dumped at a reduced price is wasteful. Also producing product before the customer needs it requires the part to be stored and ties up money in inventory. 2. Inventory – Excess Inventory ties up a great deal of cash, which is wasteful. Stockpiling inventory between processes is wasteful. 3. Transportation – Unnecessarily moving a part during the production process is wasteful. It can also cause damage to the part, which creates wasteful rework. 4.

Correction – Re-work/ repair of defects is a large source of waste. Additionally, sorting and inspecting parts is wasteful .. 5. Motion – Unnecessary or awkward operator motions put undue stress on the body and cause waste. 6. Processing – Unclear customer requirements cause the manufacturer to add unnecessary processes, which add cost to the product. 7. Waiting time– People and machines remaining idle between operations is wasteful. Slides by : Anjan Ghosh Total Productive Maintenance ( TPM ) Breakdown of machines & equipment has to be avoided as it decreases productivity , Increases cost and may affect quality .

Therefore maintenance is vital . Breakdown Maintenance (BM) means rectifying after the breakdown has happened . In order to keep machines healthy and fit for production Preventive Maintenance (PM) also known as Time Based Maintenance (TBM) has to be done as per a planned schedule . In some cases even Preventive Maintenance is not enough. We need to predict failures by measuring the parameters of the machine like vibration , temperature , corrosion etc . If the state of the health after the measurement is not found to be OK then maintenance or change of parts is done . This is called Condition Based

Maintenance ( CBM) Small everyday maintenance can be done by the operator of the machine like lubricating , cleaning , tightening , inspecting etc . The change of parts or CBM or TBM or BM can be done by specialist maintenance people. By doing proper maintenance the productivity and life of machines can be increased with Improvement in quality and decrease in cost . A lot of training and involvement of people are reqd. to ensure that proper maintenance is done . Proper records of the maintenance and history cards of the machines has to be kept . For each breakdown and failure analysis needs to be done to find the root cause of the failure .

These learnings will help in designing of better machines . This whole methodology is called as TPM because it involves many people & depts. Slides by : Anjan Ghosh Benchmarking – A Process of Improvement to Reach the Best • Comparison with past results / targets in the same function/ department. • Comparison with other functions/ depts within the organisation at same location. • Inter location (sister plants/offices) of same organisation. • Comparison with other organisations in same industry – local, global. • Comparison with other industries – local, global.

Benchmarking is not only of results but on the processes. Often benchmarking would require intensive studies and redesigning of products and processes. Benchmarking is not spying or blindly coping others . Understanding & learning reqd. In many cases there is collaboration between organisations for mutual benefit . Benchmarking is a dynamic exercise and not one-time , because by the time the Improvements are done the best being benchmarked would have improved further. Slides by : Anjan Ghosh Economics Of Quality Quality Cost Cost of control Cost of lack of control (cost of poor Quality) Prevention Cost Appraisal cost

Internal Failure Cost • Costs associated with defective products & components that fail to meet quality requirements and cause manufacturing losses. • Cost associated with designing , implementing, maintaining and improving the products, services and quality system. It includes auditing the quality system • Costs associated with measuring, evaluating or inspecting products or components to assure conformance with quality standards and performance requirements External Failure Cost •Costs generated by defective products being sent to customer s Slides by : Anjan Ghosh Economics Of Quality WHERE IS THE POINT OF OPTIMUM QUALITY COST ?

Total Cost Cost per good unit of product Internal + External failures Least cost Prevention + Appraisal 100 % Defectives 0% Slides by : Anjan Ghosh Monitoring Organisation Performance The Business Balanced Score Card Leading indicators (enablers, drivers) Creates and predicts future results – hence proactive Lagging indicators (results, outcomes) Postmortem of earlier actions – hence reactive Learning & Innovation Process Management Customer satisfaction Financial Results Learning / Competencies example of P. I :• % training hours • No of SGA teams • Employee Motivation Survey Score • Competency level • Benchmark projects

Processes example of P. I :• Asset utilisation • % Scrap • CP, Cpk • Cycle Time • Time to market Customers example of P. I :• Customer Satisfaction Index Financials example of P. I :• Sales T. O. • PBT / IFO • Cash Flow • Stock Turns • ROCE • Warranty returns • Time to resolve • Delivery reliability • No of new customers Slides by : Anjan Ghosh The Need for BBSC • The BBSC enables companies to track financial results, while simultaneously monitoring progress in building the capabilities and acquiring the intangible assets they need for future growth. The name reflects the balance provided between short-and long-term objectives between financial and non-financial measures, between lagging and leading indicators, and between external and internal performance perspectives. Slides by : Anjan Ghosh Involvement of People The full potential of people needs to be harnessed and people motivated to contribute towards improvements in a voluntary way . The aim would be to make jobs , enjoyable and satisfying . Management needs to provide training and development and provide support for ongoing improvements both for individuals and teams .

Also give due rewards & recognition to keep motivation high . In most cases the rewards are non-monetary . Suggestion Box : Employees can give suggestions ( dropped in a box ) . Which are evaluated by a committee and if found suitable are implemented . Kaizens : Small improvements in machines , processes , materials etc by individuals or teams Teams go by different names : Quality Circles ( QC? s) – where 5-8 non-mgt employees work under guidance of a facilitator (mgt ) and take up improvement projects in their dept or area of work . QC? solve one Problem after another with same members and may be working as a team for several years Small Group Activities (SGA? s) : Work like QC? s but members can be from other depts also . After problem is solved SGA is disbanded . May include mgt staff Cross Functional Teams (CFT? s) , Self Directed Teams (SDT? s ) , Task Forces are other types of improvement teams Slides by : Anjan Ghosh International Business Excellence Models • Deming Model – Japan • Malcolm Baldridge Model – USA • European Foundation for Quality Management ( EFQM ) Model All other models are derivatives of these three .

These models are Much higher than ISO 9001 or ISO 14001 or OHSAS 18001 And looks at Ladership , Strategy , People Involvement , Products , Processes , Customer Satisfaction , Social Responsibility , Financial and non-Financial Results over a period of at least 3 years The most popular Business Excellence Model in India is the CII-EXIM Bank Award that is based exactly on the EFQM Model. This Is run by the Confederation of Indian Industries (CII) Slides by : Anjan Ghosh

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