QUALITY IMPROVEMENT APPROACHES

Total Quality ManagementElements

QualityQualitySystemSystem

Role ofTop Management

Tools & TechniquesEmployee InvolvementTraining & Team Work

Evolution in Quality Mgmt.Scientific Management Era

Plan

Act Do

Check

Specialist

Management/Specialist controls. All problem solving derived from specialist

Direct employeesperform tasks

Evolution in Quality Mgmt.TQM Era

Plan

Act Do

Check

Employee controls the cycle

Management provides the resources of raw material, equipmentand training.

Identify Quality problem

Set the scopeMeasure

current status

Identify improvement

projects

Project 1 Project 2 Project 3 Project N. . .

Small group improvement using Quality Control Tools

Employee Involvement & Team workUse of Small group improvement

projects

Quality Management ToolsA classification

Purpose for which the tool is used Quality Control Tools New 7 Management tools

Highlighting problems (a) Process Control Charts Identifying specific improvement opportunities

(b) Histograms (c) Check Sheets (d) Pareto Diagrams (e) Scatter Diagrams (f) Process chart

Analysing problems & their root caus es

(g) Cause and Effect (Fish bone) Diagram

(i) Affinity Diagram (j) Relationship

Diagram Operational planning for building quality into products/services

(k) Tree Diagram (l) Matrix Diagram (m) Matrix Data

Analysis (n) Process Decision

Program Chart (PDPC)

(o) Arrow Diagram

Strategic Planning QFD , Bench marking

HistogramAn example

Causes for adjustment snags

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Leakage Missing Fouling Rew orks Poor routing Loose fitting

Categories of problems

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Causes for Rework

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Lack ofdrawing clarity

Toolingproblems

Processcontrol issues

Design issues Vendor relatedproblems

Categories of problemsN

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Pareto DiagramAn example

Adjustment Snags Analysis

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Reworks Leakage Missing Loosefitting

Poorrouting

Fouling

Categories of problems

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ces

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mu

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Reworks Analysis

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Designissues

Lack ofdrawingclarity

Vendorrelated

problems

Toolingproblems

ProcessControlIssues

Categories of problemsN

um

ber

of

occ

ure

nce

s

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Cause and Effect DiagramA generic representation

Materials Work methods

Equipment Labour

Quality

Cause

Effect

Matrix Diagram: An ExampleHindustan Motors - 1035N

Dumper

Order Winning

QualifyingLess

important

Bet

ter

Sam

eW

orst

POKA YOKEAn example

A pair of sensors for fail proof

through drilling

Continuous Improvement Approaches

Continuous Improvement

• Continuous improvement– Refers to constant and positive change in the working conditions in an

operating system

– Leading to better performance evident from key performance measures

• Typical examples of such improvements – Increase in production with no addition of capacity,

– Elimination of manpower even when production levels go up

– No appreciable increase in cost of production even when the volume drops

– Increase in the velocity of various business processes without any addition of new capacity or technology

– Significant reduction in defects

– Rework and inventory investments when the production rates go up

– An overall increase in the productivity

Improvement in OperationsAlternative Trajectories

• Radical (Step) Improvement– raises the level of the system substantially at a point in time

– Typically happen due to innovations in technology pertaining to the operations & substantial up-gradation of the capacity

– Once a radical improvement is made, the system moves to a significantly higher level of performance

• Continuous (Ramp) Improvement– Improvements made in small steps and on a continuous basis through a systematic

study of the existing system and changes in the processes and procedures

– Does not call for breakthrough innovations, large investment in capacity or radically new technology

– Could be applied in several areas of business including manufacturing, business processes in other areas such as marketing, finance and customer and supplier relationship

• Hybrid Improvement– A combination of both in alternating cycles

Improvement of OperationsAlternative trajectories

Per

form

ance

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stem

Time

Per

form

ance

att

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stem

Time

(a) Step improvement (b) Ramp improvement

Per

form

ance

att

ribu

tefo

r th

e sy

stem

Time

(c) Hybrid improvement

Continuous Improvement ProcessA framework

Create a context for continuous

improvement

Set up a measurement methodology for assessing

the quantum of improvement

Equip the employees with tools & techniques

for continuous improvement

Create appropriate organisational structures

for continuous improvement

Closely monitor and recognise the benefits

accrued from improvements

Continuous Improvement

Cycle

Continuous ImprovementCreating a context

• Benchmarking Exercises– Internal benchmarking– Competitor benchmarking– Process Benchmarking

• TPM & TQM Initiatives• International Awards & Certifications• Industry Association initiatives

– IMVP Example– CII’s initiatives in automotive cluster

Benchmarking APQC methodology

Source: Adopted from http://www.apqc.org/portal/apqc/site/generic?path=/site/benchmarking/free_resources.jhtml

Colle

ct

Plan

Analyse

Ad

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Continuous Improvement Tools & Techniques

• Process Mapping– A tool to understand various steps involved in performing a

business process

• Non-Value Added (NVA) Analysis– A method by which the relevance of some of the existing

activities are questioned

• Business Process Engineering (BPR)– Fundamental rethinking and radical redesign of processes

• Kaizen Initiatives• Setup time reduction through SMED• QC Tools• Activity Based Management (ABM)

Process MappingSome alternatives…

• Customer order “walk through”

• Collaborative brainstorming/charting

• Bottom-up approach – Interviews of staff in functional departments

• Executive judgement

Business Process EngineeringSome guidelines to identify

scope• Extensive information exchange, data redundancy and re-

keying of data points to arbitrary fragmentation of a natural process

• Large investment in inventory, buffers and other assets indicates that the existing process is unable to cope up with uncertainty

• High proportion of checking, control and progress monitoring implies too much fragmentation of the process

• Inadequate feedback in the process results in excessive rework and iteration

• Increase in complexity of operations, exceptions and special cases also indicate the need for simplifying the process by revisiting the process fundamentals

Implementing BPRA three-step methodology

Understand the existing

Process

Simplify theProcess by

eliminating NVA

Automatethe Process

Process MappingBrainstorming

“As-is” analysis

NVA Analysis“Should-be”

analysis

EDIERP

Internet tools

Tools used in each step

Setup Time Reduction

An illustration of results

1. Wyvomatic A 540 450 205

2. Acme Gridley 1020 315

3. Wyvomatic B 165

4. Stama Feed Machine 510 180 60

5. Stama Bleed Machine 110 65

Operation/Machine Changeover time ( in minutes) 1 2 3 4

What is ABM?

• ABM is a management tool to– Link different functional areas of management

to achieve a common goal of enhancing the competitiveness of a firm

• Process view of an organisation is as important as the cost view

– Facilitates continuous improvement process for obtaining operational and strategic benefits

Activity Based ManagementUnifies Operations & Costing

functions

Resources

Cost Objects

Cost view

Process Drivers

PerformanceMeasures

Process View

Activities

Organisation for Continuous Improvement

• Task force for continuous improvement

• Quality Circles

• Small Group Improvement Activity (SGIA) Projects

• Visual control aids for improvement

Continuous Process ImprovementUsing SGIA Projects

Product/Service

Identified

Set the scopeMeasure

current status

Map at overallLevel; Identify

detailed projects

Project 1 Project 2 Project 3 Project N. . .

Explore and Implement improvements for each project

Using Visual Control Aids for continuous improvement: An

Example

Estimated savings per month due

to this alone is about Rs.

40,000.

Using Visual Control Aids for continuous improvement: An

Example

Continuous ImprovementOrganisational Challenges

• Resistance to Change

• Tangibility of Improvements

• Incentive & Rewards Systems

Continuous ImprovementChapter Highlights

• Organisations make improvements either in a step mode or a gradual mode. – The step mode improvement happen on account of radical

innovations. – On the other hand, gradual mode improvements happen on account

of continuous improvements.

• A continuous improvement does not require any radically new technology or product. It concentrates on improving the effectiveness of existing processes in small steps.

• There are several ways by which organisations can create a context for continuous improvement of their operations.– Benchmarking exercises– Preparing for international awards and certifications– Engaging in TPM and TQM initiatives – Working along with other industry partners in cluster mode

New 7management & planning tools

• Affinity diagram

Grouping ideas according to family--a creative brain storming tool

Interrelations digraph

To map logical links of a central idea to more than one idea at a time--- Lateral thinking than linear thinking

Tree diagram

• Maps paths & tasks to achieve a goal

Matrix diagram

• Spread sheet/ graphically displays relations between tasks and functions , House of quality.

Matrix data analysisMatrix in the form of quantitative factor analysisProcess decision program chart .maps every conceivable event from problem statement to solution and counter measures.Arrow diagramsPERT/CPM

TQM techniques

• Bench marking• Nominal group technique• 5 whys and 1 how• Cost of quality• QFD(Quality Functon Deployment)• FMEA(Failure Modes & effects Analysis)• Force field analysis• VE/VA(Value engineering & Value analysis

Steps in Nominal Group Technique

• Read problem statement• Problem clarification• Silent idea generation• Round robin idea generation• Idea clarification• Idea grouping• Individual ranking of first 6 ideas• Compilation of idea ranking by all, by

Facilitator

FMEA

Analyses ways of failure of a product and its

effect of each mode using 3 criteria on 5 pt scale

• severity

• Probability of occurence(MTBF)

• Ease of detection of failure

• Items of higher Total scores are to be dealt with on priority.

Force field analysis

• Kurt Levin in 1920s

• To identify the forces (pressures) for and against changes.

• Participation and sense of ownership

• Forces for forces against

• What can be done to strengthen forces for and weaken forces against

VE/VA

• Better value to customer at lower cost• Ex; plastics replacing in automobilesSteps• Gather information• Functional identification’• Functional analysis• Creative alternatives • analysis &evaluation• ImplementationRead Edward de Bono, six thinking hats, penguin,1990

7 wastes

• Overproduction• Waiting• Transporting• Inappropriate processing (poor process

capability) • Unnecessary inventory• Unnecessary motion• defects

5S practices

• Table I The 5-Ss in Japanese and English

• Japanese English Meaning

• Seiri Structurize Organization

• Seiton Systemize Neatness

• Seiso Sanitize Cleaning

• Seiketsu Standardize Standardization

• Shitsuke Self-discipline Discipline

• The technique has been practised in Japan for a long time. Most Japanese 5-S practitioners consider the 5-S useful not just their physical environment but for improving their thinking processes as well.

• Seiri…structure. Separate and keep immediately necessary things as few as possible,

• Seiton. Neatess. A place for every thing and every thing in its place-

• quick identification by name,

• safe storage,

• neatness for notice ,posters

• Seiso..cleaning

• Every one from CEO to the opeartor is a janitor. No separate cleaner

• Every one will not get things dirty,nor spill,nor scatter litter,

• Every one will right away, rewrite things,which got erased

• Seiketsu..standardisation

• Repeatedly and continually maintain neatness and cleaning, by visual management. Labelling, colour codes are used

• Transparency. Keep things visible. Do not sweep things under the carpet, out of sight

• Shitsuke..Discipline

• Creating a habit of dong things in the way supposed to be done.

• Self discipline and are important training

5S check points for factory

• Cleaning up machines / equipment• Whether fixtures, tools are in their allotted place• Whether pallets, tote pans are kept clean• Whether work- in- process(WIP) and finished goods(FG) are kept in

proper place• Whether surrounding work places is clean• Whether empty pallets, tote pans are kept in their allotted place• Whether machines fans, lights are switched off after work• Whether used consumable items like waste not thrown on the floor• Whether rusted, dust- covered WIP are sent to next stage or not.• Whether walkway/pathway are kept clear without obstacles

5S check points for office• Floor and surrounding area is clean• Telephone and computers are kept clean• Furniture, cupboard, table drawers are kept clean and in order• Files are kept in labeled folders in file racks• In record rooms, files ore kept in order• Defective equipments are reported to maintenance department• Lights, Fans, computers and AC equipments are switched off after

use• Work place is cleaned after work.• Index of files is kept• Answering telephones in pleasant and decent manner.

Implementing 5S

• Top management commitment

• Promotional campaign

• Keep rcords photos, video before and after 5S

• 5S training

• Evaluation

Poke yoke

• Fail safe arrangements to prevent defective occurring

• Originally devised by Shigeo Shingo

• Chances for wrong activity is eliminated

• See examples in next slides

POKA YOKEAn example

A pair of sensors for fail proof

through drilling

Poke yoke in Lucas TVS

• 353 poke yoke arrangements have been installed to prevent errors, quality problems and accidents. The bench marking has been done for cellular manufacturing, with world class companies like Mitsbushi and Denso