TQM, ISO 9000, JIT, KAIZEN,SIX SIGMA, AQL

LECTURE BY NITIKA RANA

Total Quality Management

TQM refers to activities that involve everyone in organisation in an integrated effort to improve performance at every level. The goal of TQM is to maintain the organisations competitiveness in the world markets TQM PERSPECTIVES ARE customer focus An emphasis on quality Team work Individual empowerment Training and education Involvement of all employees Commitment by management Continuous process improvement
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QUALITY IS .the QUALIFIER! Doing it right first time and all the time. This boosts Customer satisfaction immensely and increases efficiency of the Business operations. Clearing the bar (i.e. Specification or Standard stipulated) Excellence that is better than a minimum standard. Quality and customer expectations Quality is also defined as excellencein the product or service that fulfills or exceeds the expectations of the customer. There are 9 dimensions of quality that may be found in products that produce customer-satisfaction. Though quality is an abstract perception,it has a quantitative measure- Q= (P / E ) , where Q=quality, P= performance(as measured by the Mfgr.), and E = expectations( of the customer).

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The 9 Dimensions of Quality

Performance: Primary product Characteristics Features: Secondary characteristics, added features Conformance: Meeting specification or industry standards, Reliability: Consistency of performance over time, average time for the unit to fail Durability: Useful life, Service: Resolution of problems and complaints Response- of Dealer/ Mfgr. to Customer: Human to human interface Aesthetics of product: exterior finish Reputation- of Mfgr./Dealer: Past performance and other intangibles, such as being ranked first
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TQM requires six basic Concepts:

Management commitment to TQM principles and methods & long term Quality plans for the Organisation Focus on customers internal & external Quality at all levels of the work force. Continuous improvement of the production/business process. Treating suppliers as partners Establish performance measures for the processes.
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Effects of poor Quality

Low customer satisfaction Low productivity, sales & profit Low morale of workforce More re-work, material &labour costs High inspection costs Delay in shipping High repair costs Higher inventory costs Greater waste of material
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Benefits of Quality
Higher customer satisfaction Reliable products/services Better efficiency of operations More productivity & profit Better morale of work force Less wastage costs Less Inspection costs Improved process More market share Spread of happiness & prosperity Better quality of life for all.
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TQM implementation
Begins with Sr. Managers and CEOs Timing of the implementation process Formation of Quality council Union leaders must be involved with TQM plans implementation Everyone in the organisation needs to be trained in quality awareness and problem solving Quality council decides QIP projects.
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New & Old Culture

Quality Elements
Definition Priorities

Previous state

TQM
Customer-Oriented First among equals of Service and cost Long Term Prevention System Everyone Teams Life-cycle costs, partnership Delegate, coach, facilitate and mentor

Decision Emphasis Errors Responsibility

Problem Solving Procurement

Product Oriented Second to Service and Cost Short-term Detection Operations Quality Control Manager Price

Managers Role

Plan, assign, control and enforce

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Strategic Quality Goals and Objectives

Goals must be focused Goals must be concrete Goals must be based on statistical evidence Goals must have a plan or method with resources Goals must have a time-frame Goals must be challenging yet achievable
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What is customer satisfaction?

Is it due to Product quality? Is it due to pricing? Is it due to good customer service ? Is it due to company reputation? Is it something more?

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ISO 9000
The international Organization for Standardization (ISO) was found in 1946 in Geneva, Switzerland. Its mandate is to promote the development of international standards to facilitate the exchange of goods and services worldwide. The ISO technical developed a series of international standards for quality systems, first published in 1987. Most of the countries have adopted the ISO 9000 series as their national standards.
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 These standard seek to ensure that a company has in place the necessary organization, commitment and systems to consistently meet the defined quality and performance standard. By design, the series can be tailored to fit any organizations needs whether it is large or small. It can be applied tomanufacturing as well as services sectors. In very simplified terms, the standards require an organization to say what it is doing to ensure quality then do what it says and finally document or prove that it has done what it said.
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ISO 9000 series:

ISO 9000:- Quality Management and Quality Assurance Standards-Guidelines, fundamentals & Vocabulary discusses fundamental concepts related to QMS and provide terminology used in other standards ISO 9001: Quality Management Systems- Model for Quality Assurance in design / Development, Production, Installation and servicing ISO 9002: Quality Management Systems- Model for quality assurance in Production and Installation ISO 9003: Quality Management Systems- Model for quality Assurance in Final Inspection and Test ISO 9004: Quality Management Systems- Model and guidelines for Performance Improvement.
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Benefits of ISO Registration

Customers want ISO certified vendor or supplier to ensure quality compliance of the supplies. Internal quality : reduction in scrap, rework nonconformities Production reliability: reduction in number of breakdown per month, percent down time per shift External quality: reduction in customer complaint and return Time performance: improved on-time delivery, throughput time Cost of poor quality: External nonconformities, scarp, rework are reduced.
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Kaizen
Kaizen is a Japanese word. It means continuous improvement process of creating more value and less nonvalue adding waste. Kaizen is not just a philosophy of the workplace, it means continually improving in every facet of life, including business, industry, commerce, government, and diplomacy, among others. It involves incremental improvement involving everyone. The improvements are usually accomplished at little or no expense without sophisticated techniques or expensive equipments. If focuses on simplification by breaking down complex processes into their sub-process and then improving them.
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 Kaizen can be regarded as culture that encourages suggestions by operators who continually try to incrementally improve their job or process. Kaizen helps to achieve process more efficient, effective, under control and adaptable. Kaizen training has focused on both philosophical and cultural concepts and is based on the belief that the development of an individuals skill benefits both the company and that individual, and that people constantly aim for self-improvement

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The Kaizen improvements focus on the use of:

Value-added and non-value added work activities Muda, seven classes of wastage: over production, delay, transportation, processing, inventory, wasted motion and defective parts Principles of motion study and use of cell technology Principles of materials handling and use of onepiece flow Documentation of standard operating procedures Use of 5S Visual Management Poka-yoke to prevent or detect errors Team dynamics which includes problem solving, communication skills and conflict resolution
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Flow chart of Kaizen Procedure

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Six Sigma
Sigma () is Greek symbol, used for statistical measurement of dispersion called standard deviation. Smaller the value of sigma, less variability in the process. Six sigma simply means a measure of quality that strives for near perfection. A defect is any mistake that results in customer dissatisfaction. Six sigma is a disciplined, data-driven approach and methodology for eliminating defects. To achieve six sigma, the process must not produce more than 3.4 defects per million opportunities. Six Sigma statistically ensures that 99.9997% of all products produced in a process are of acceptable quality.
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Six Sigma
Six Sigma methodology provides the techniques and tools to improve the capability and reduce the defects in any process. It was started in Motorola, in its manufacturing division, where millions of parts are made using the same process repeatedly. Eventually Six Sigma evolved and applied to other non manufacturing processes. Today you can apply Six Sigma to many fields such as Services, Medical and Insurance Procedures, Call Centers.
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Goal of Six Sigma

To reduce Variation and maintains consistent quality To reduce Defects To improve yield To enhance customer satisfaction To improve the bottomline i.e. improvement in profits

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Key Elements of Six Sigma

Customer Satisfaction Defining Processes and defining Metrics and Measures for Processes
Using and understanding Data and Systems Setting Goals for Improvement

Team Building and Involving Employees

Involving all employees is very important to Six Sigma. The company must involve all employees. Company must provide opportunities and incentives for employees to focus their talents and ability to satisfy customers. Defining Roles: This is important to six sigma. All team members should have a well defined role with measurable objectives.
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Six Sigma Methodology

Six Sigma methodology improves any existing business process by constantly reviewing and re-tuning the process. To achieve this, Six Sigma usesa methodology known as DMAIC (Define opportunities, Measure performance, Analyze opportunity, Improve performance, Control performance).
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Define Determine benchmarks, Set Base line, Determine Customer Requirement, Get customer commitment, Map Process Flow

Measure Develop defect measurement, Develop data collection process, Collect data, Create forms, Compile and display data
Analyze Verify data, Draw conclusion from data, test conclusions, Determine improvement opportunities, Determine root causes, , Map causes to effect

Improve Create improvement ideas, Create models, Experiment, Set Goals, Create problem statement and solution statement, Implement improvement Method
Control Monitor improvement process, measure improvements statistically, Assess effectiveness, Make needed adjustment.

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OPPORTUNITIES FOR ERROR AT VARIOUS SIGMA

Number of defects opportunities for error per million Associated sigma level

66,810 22,750

3.0 3.5

6,210

4.0

1,350

4.5

233

5.0

32

5.5

3.4

6.0

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Location of 6-sigma

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Just in Time (JIT)

This concept was developed by Japanese in 1950s. JIT program is directed towards ensuring that the right quantities are purchased or produced at right and that there is no waste. It is a holistic, quality based approach to requirement planning and control which uses information systems, quality tools and techniques , capacity scheduling, continuous improvement and employee involvement to meet demand instantly (JIT) with perfect quality and no waste. It is not only the inventory and scrap. Any thing that does not add value i.e. increases usefulness or reduces cost, can be said as waste. The objective of JIT is to reduce the inventory to zero level.

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AIM of JIT
To produce or operate to meet the requirements of the customer exactly without waste immediately on demand. The JIT concept identify operational problems by tracking the following:
Material Movements:- material stops, diverts, turns backwards, Material accumulation:- buffer for problems, excessive varriability Process Flexibility:- an absolute necessity for flexible operation and design Value added efforts:- when much of what has done does not add value and the customer will not pay for it.
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Tools to carry out JIT

Flowcharting Process Study and analysis Preventive maintenance Plant lay out method Standardized design Statistical Process Control Value analysis and value engineering Batch or lot size reduction Flexible work force Kan-ban card with material visibility Mistake proofing Pull scheduling Set up time reduction
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100% inspection: Disadvantage

100% inspection is not cost effective and sometimes 100% inspection may not assure the risk of inclusion of defective materials. This is due to the reduction in effectiveness of the personnel doing inspection due to monotonous nature of job and fatigue. Use of automated systems of inspection has reduced such task to be done by human being. In case, the use of automated system of inspection is not possible, we have to rely on human efforts. For this, Statistical sampling provides more economical approach compared to 100% inspection.
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Acceptable Quality Level

Majority of sampling is based on desired achievement of predetermined acceptable quality level (AQL). AQL is a statistically measure of the consistency or quality predictor of manufactured goods. The AQL is the maximum percent defective can be considered as process average for the sampling purpose. It is designated value of percent defective that the consumer will accept. The AQL may be defined in the contract or established internally.
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 A certain proportion of defective will always occur in any manufacturing process, however, if the percentages doesnt exceed a certain limit, it is often more economical to allow the defective to go through rather than to screen entire lot. This limit is called Acceptable Quality level. In other words, the maximum percent defective or maximum number of defects per 100 units which can be considered satisfactorily as a process average is termed as Acceptable Quality level. Sampling procedures are adopted under practical and economic considerations to accept or reject a lot on the basis of the sample drawn at random from the lot. Hence it is necessary that a scientifically designed sampling plan is used to provide adequate confidence and protection to the manufacturer and the customer very economically.

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Formation of lots
Formation of lots will have to be planned with respect to the following: Type of lot(Stationary lot or moving lot) Size of the lot. Homogeneity of the lot. Accessibility of item in the lot.

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Stationary and moving lot In a stationary lot items are presented simultaneously, all the sample items may be obtained at one time in a moving lot, as the lot moves past the point of inspection, one or a few items are selected at a time. In many situations stationary lots offer advantages over moving lots.

Size of lot The general rule in the formation of lots is to make the lot size as large as possible provided that a reasonable degree of homogeneity is maintained. But size of lot will have to be limited on account of the following factors: The formation of larger lots may result in the inclusion of items differing more widely in quality. The production or supply of material may be such that the accumulation of large lots will be over a long period. Due to shortage of space and handling problems. The economic consequences of rejection of larger lots because of the cost of scrapping, the cost of detailed inspection or the cost of reworking them. In forming a lot, therefore, compromise is to be made in respect of its size.

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 Homogeneity of lots As the efficiency of sampling depends on the degree of homogeneity of the lot, efforts should be made not to have a mixed lot as far as possible and to confine the lot to materials or products originating from essentially similar condition. Accessibility of item in the lot It is also important from the point of view of convenience of inspection that the lot is easily identifiable and should have easy access to all parts of the lot to select representative sample.
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Determination of sample size

It is not possible to have a single rule for determination of the size of the sample. The number of items to be in the sample is dependent on the extent of error due to sampling that can be tolerated which in turn depends to a large extent on the degree of homogeneity of the lot. The size of the lot also comes into picture more from practical consideration than any statistical reasoning. For economical inspection of goods, a sampling plan was designed by American military department known as American Military standard. This standard has undergone many revisions from MIL-STD-105A to MIL-STD-105E. Today this sampling is very much in use. The acceptability of a lot submitted for inspection shall be determined with the sampling plan associated with the specified value of AQL.
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Drawing of Sample
Ascertain the lot size Refer the sample size code letters table Form the column indicating lot/batch size, identify the class to which the population belongs. Identify the letter (alphabet) from: General Inspection Level- II corresponding to population class. General Inspection level II shall be normally used unless otherwise instructed. Refer to table titled Single sample plan Normal Inspection using the identified letter (alphabet) of General Inspection Level II. Use the decided value of AQL for acceptance and rejection.
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