TQM, VTU, Unit 5

Tools & Techniques in TQM

By Prof. Raghavendran.V

Prof. Raghavendran V 2

Tools & Techniques

Quality based organizations should strive to achieve perfection by continuously improving the business & Production process.

There are various techniques available to improve continuously and they are listed as below:

PDSA Cycle Problem-Solving Method Juran Trilogy Ishikawa cause and effect diagram


Tools & Techniques

Taguchi Quality Loss Function Kaizen JIT Re-engineering Six Sigma Benchmarking and process


PDSA CYCLE


PDSA Cycle

The basic Plan-Do-Study-Act was first developed by Shewhart and modified by Deming. It is an effective improvement technique.

Plan

DoStudy

Act

The PDSA Cycle


PROBLEM SOLVING METHOD


Problem- Solving Method

It is the extension of PDSA Cycle with scientific adaption/ approach which yield great results, but in this method there are 7 phases and all are integrated upon the previous phase. These phase are the framework of the objectives.


Problem-Solving Method

Plan

DoStudy

Act

1) Identify the opportunity

2) Analyze the process

3) Develop the optimal

Opportunity

4) Implement5) Study the

Results

6) Standardization the solution

Plan for the future


KAIZEN


Kaizen

KAIZEN means Japanese word, Which are KAI and ZEN.

KAI means change and ZEN means better. So, therefore KAIZEN means change for better. It implies continuous improvement:

Consistently Every time Every Step Every Place, leading to self development.


Kaizen

To say, it is Japanese way of life. International attention is being focused on the outstanding performance of Japanese economy & success of management practices being adopted in Japanese industries. The fact remains we need change for better and hence kaizen.

It is continuous ongoing improvement in working life, personal life, home life and social life. It is constant and gradual improvement.


Kaizen

Kaizen is process oriented while, innovation is result oriented. These two systems are very essential for achieving and sustaining superior company performance.

Fundamentals of Kaizen improvement: Start with small improvement. Start with your problem, not others Start with easy area. Improvement is a part of daily routine Collect group wisdom Never accept status quo Never reject any idea before trying Highlight the problem, don’t hide them


KaizenThere are four general avenues for

continuous improvement:

Improved and more consistent product and service quality.

Faster cycle time (ranging from product development, order time, pay rolls)

Greater Flexibility Lower costs and less waste.


KAIZENIn Kaizen technique, the members of workforce

should be viewed as associates.The following factors are to be considered for

employee involvement:1. Discretion– to avoid behavior that could

damage company culture.2. Commitment– The basic power behind the

success of an organization3. Freedom– To allow the experience of

failure.4. Fairness– to control and eliminate

destructive conflict and to develop team spirit in the organization.


KAIZENKaizen involves in removal of 3M’s and

application of 5S’s for the improvement.

3M’s helps in reducing waste and losses.The Japanese’s MU’s are: MUDA ( Means Waste) MURI (Means Strain) MURA (Means Discrepancy) and these should be gradually removed at

different levels:


Kaizen• Manpower• Techniques• Method• Time

• Facilities• Jigs & Tools• Materials• Production

Volume

• Inventory• Place• Way of

Thinking

5S’s involves in improvement and they are Seri, Seiton, Seiso, Seiketsu and Shitsuke.Seri (Means straighten up). It involves differentiation between the necessary and unnecessary and discarding the unnecessary. It is applicable to:Work in progress, un-used machinery, unnecessary waste, unnecessary tools, uncalled inspection, unused Skill, Defective Products, Systems Flaws and Paper & Documents


KAIZENSeiton (Means put things in order). It is

applicable to place of work– assign place for everything, put everything in order, keep proper documentation and entry and avoid searching things.

Seiso (Means cleans up). It is applicable to place of work– keep the workplace clean, Green and cosy look of workplace.

Seiketsu (Means Personal Cleanliness). Make it a habit to be clean and tidy; starting with your own personal appearance.

Shitsuke (Means discipline)– Follow procedure in the system.


JIT


JIT ( Just – In- Time) JIT is Japanese production management

concept which is been applied from1970’s.

This technique emerged as a means of obtaining the highest levels of usage out of the limited resources available.

Faced with constraints, the Japanese worked towards attainment of the optimal cost- quality relationship in their manufacturing processes, thus involving reducing waste, using materials and resources.


JITThis was developed on a continuous

stream of small improvements known as ‘KAIZEN’

The Goals of JIT:1. Integrating and optimizing2. Improving continuously3. Understanding the customers


RE-Engineering


RE-Engineering

Re-Engineering is also known to be as ‘BPR’.

Re-Engineering was developed by Mr. Micheal Hammer from USA, where in it is defined as “ The fundamental rethinking and radical design of business process to achieve dramatic improvements in critical measures of the performance such as cost, quality, service and speed”


BPRThe Three R’s involve in Re-Engineering

(3Phases) and they are:

Re-ThinkRe-Design

Re-ToolRethink:It involves organization’s current objective

and underlying the regulatory norms for determine how well they suit to the commitment of customer satisfaction


BPRRedesign:It analyses the way the organization

products or services- how the process is structured. The determination is carried out which part of the process or job is to be redesigned, so that outcome will be better than the previous performance.

Retool:it evaluates the current use of

technologies, and to identify the advanced opportunities for change in the technology to achieve the goal.


JURAN TRILOGY


JURAN TRILOGYOne of the best approaches developed

by Dr. Joseph Juran. It has 3 components:

1. Quality Planning2. Quality Control &3. Quality Improvement

2) Contro

l

3) Improvem

ent

1) Planni

ng


TrilogyQuality Planning: It begins with external

customers,1. Once the customers are identified2. Their needs are discovered. 3. Develop product or service features

that respond to customer needs.4. Stabilize and optimize the product

features to meet the organizational & Customer needs


TrilogyQuality Control: it is used by operating forces

to help and meet the product, process and service requirements. It uses the feedback loop and consist of the following steps:

Determine items to be controlled and their unit of measure.

Set goals for the controls & determine what sensors need to be put in place to measure the product.

Measure the actual performance,Compare actual performance to goals.Act on the difference.


TrilogyQuality Improvement:It aims to attain levels of performance

that are significantly higher than current levels.

Optimize the process.


POKA-YOKE


Poka-YokeThis is known as ‘MISTAKE-PROOFING’From Japanese:Yokeru (avoid) & Poka (inadvertent

errors)Characteristics of Poka-Yoke Eliminates the cause of an error at

the source; Detects an error as it is being made; Detects an error soon after it has

been made but before it reaches the next operation.


Poka-YokeThere are two approaches to dealing with

errors:1. ERRORS ARE INEVITABLE! People always make mistakes. While we accept the mistakes as natural,

we blame the people who make them. With this attitude, we are likely to

overlook defects as they occur in production.

They may be detected at final inspection, or worse still, by the customer.


Poka-Yoke2. ERRORS CAN BE ELIMINATED! Any kind of mistake people make

can be reduced or even eliminated. People make fewer mistakes if they

are supported by proper training and by a production system based on the principle that errors can be avoided.

One method of detecting errors is inspection.


Poka-Yoke

There are two major types of inspection.

1. SAMPLING INSPECTION.In some factories, the attitude is:

“It may take all day to inspect all product”.

“There may be a few defects, but sampling is the most practical way to check”.


Poka-Yoke2. 100% INSPECTION.In the best factories, the attitude is:

“We won’t tolerate a single defect!” “We will organize production so that

100% of the product can be easily inspected”.

“That makes the most sense”.


100% Inspection - Reflection Think about 100% inspection. Even one defective product is

enough to destroy a customer’s confidence in a company.

To stay competitive a company must supply good product in thousands.

The best way to achieve this is to organize production to inspect 100% of the products.

Two Strategies for Zero Defects

1. DON’T MAKE IT!Don’t make product you don’t

need.The more you make, the greater

the opportunity for defects.Follow ‘just-in-time’ principles by

only making what is needed, when it is needed in the amount needed.

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Two Strategies for Zero Defects2. Build SafeguardsThe user is an expert in finding

defects.Therefore build safeguards into the

production process.Quality can be built into products by

implementation of Poka-Yoke.

Poka-Yoke Devices

Human errors are usually inadvertent.

Poka-yoke devices help us avoid defects, even when inadvertent errors are made.

Poka-yoke helps build quality into processes.

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Poka-Yoke

POKA-YOKE

MEANS

ZERO DEFECTS

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BENCH MARKING

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Bench Marking

It is defined as systematic search for the best practices, innovative ideas, and highly effective operating procedures. It consider experience of others and uses it.

Benchmarking is the process of improving performance by continuously identifying, understanding, and adapting outstanding practices found inside and outside the organization.


What is Benchmarking? (J. McEvilly-2008)

Continuous method of measuring and comparing a firm’s business processes against those of another firm.

Discover performance gaps between one’s own processes and those of leading firms.

Incorporate leading firm’s processes into one’s own strategy to fill the gaps and improve performance.

Benchmarking has three main features:


Continuous and Breakthrough Improvement

Time

Impr

ovem

ent

ContinuousImprovement

BreakthroughImprovement

ContinuousImprovement

Highly

Competitive

Situation

Benchmarking

Accelerates

Innovation

and Change


Why Benchmarking?

Benchmarking gives us the chance of gaining:

Better Awareness of Ourselves (Us)› What we are doing› How we are doing it› How well we are doing it

Better Awareness of the Best (Them)› What they are doing› How they are doing it› How well they are doing it


Why Benchmarking

.

.

.

.

Cope withCompetitive

Markets

Keep Pace withScience andTechnology

Changes

InnovationIn

ManagementMethods

MeetingQuality

Standards

PerformanceImprovement

CreativeThinking

Meeting Customers

Expectations

Benchmarking


Types of Benchmarking On the basis of “What” is being

compared with other organizations we have four main types. These four major types of benchmarking are evolutionary beginning with product, through to functional (performance), process and strategic benchmarking.

Product

Performance

ProcessStrategic


Types of Benchmarking

On the basis of “Who” is being compared with our organization, we have these categories:

Internal vs. External

Generic

InternationalBest in Class

Best of the Best


WHAT BASIS BENCH MARKING


Many firms perform product benchmarking when designing new products or upgrades to current products. Providing an external perspective on opportunities to improve products, technology, manufacturing and support processes, the product development process, and engineering practices are core activities of product benchmarking.

1-Product Benchmarking


Performance benchmarking focuses on assessing competitive positions through comparing the products and services of other competitors. When dealing with performance benchmarking, organizations want to look at where their product or services are in relation to competitors on the basis of things such as reliability, quality, speed, and other product or service characteristics.

2-Performance Benchmarking


Process benchmarking focuses on the day-to-day operations of the organization. It is the task of improving the way processes performed every day. Some examples of work processes that could utilize process benchmarking are the customer complaint process, the billing process, the order fulfillment process, and the recruitment process (Bogan, 1994).

3-Process Benchmarking


Strategic benchmarking deals with top management. It deals with long term results. Strategic benchmarking focuses on how companies compete. This form of benchmarking looks at what strategies the organizations are using to make them successful. This is the type of benchmarking technique that most Japanese firms use (Bogan, 1994). This is due to the fact that the Japanese focus on long term results.

4-Strategic Benchmarking


WHY BASIS BENCH MARKING


Types of Benchmarking

There are several other classifications for benchmarking, based on partner type, adoption level and target process, etc. Following are the most used types:› Internal› External

Competitive Functional Generic


Competitive benchmarking is the most difficult type of benchmarking to practice. For obvious reasons, organizations are not interested in helping a competitor by sharing information. This form of benchmarking is measuring the performance, products, and services of an organization against its direct or indirect competitors in its own industry. Competitive benchmarking starts as basic reverse engineering and then expands into benchmarking.

1-Competitive Benchmarking


Competitive benchmarking is an analysis of strategies, processes and practices with competitors and companies in the same industry. Therefore, it is industry or business type specific. It is especially beneficial to organizations managing a specialized type of operation.

1-Competitive Benchmarking


Functional benchmarking - a company will focus its benchmarking on a single function to improve the operation of that particular function. Complex functions such as Human Resources, Finance and Accounting and Information and Communication Technology are unlikely to be directly comparable in cost and efficiency terms and may need to be disaggregated into processes to make valid comparison.

2-Functional Benchmarking


Comparative research to seek world-class excellence by comparing business performance not only against competitors but also against the best businesses operating in a different industry.

2-Functional Benchmarking

Comparing functions

Advantage:Discovering innovative practices

Disadvantage:Not suitable for every organization or every function


Benchmarking, originally described as a formal process by Rank Xerox, is usually carried out by individual companies. Sometimes it may be carried out collaboratively by groups of companies (e.g. subsidiaries of a multinational in different countries). One example is that of the Dutch municipally-owned water supply companies, which have carried out a voluntary collaborative benchmarking process since 1997 through their industry association.

3-Collaborative Benchmarking


With collaborative benchmarking, information is shared between groups of firms. It is a brainstorming session among organizations. It is important to realize that not all collaborative efforts are considered benchmarking. It is sometimes called “data sharing."

3-Collaborative Benchmarking


Performing a financial analysis and comparing the results in an effort to assess your overall competitiveness and productivity.

4-Financial Benchmarking


Six Principles of Benchmarking

Any acceptable benchmarking should have these six features:› Comprehensive› Credible› Comparative› Performance-oriented› Confidential› Continuous assessment


Benchmarking Pitfalls

Benchmarking is NOT:› Tour visits to other competitors or

organizations.› Performance measurement, it’s part of

benchmarking process. i.e. competitive analysis.

› A cost-cutting exercise.› Imitating others’ practices or processes,

it’s “How to” not “What is”.› A public relations exercise.


Benchmarking Pitfalls

Failure to consider organizational cultures or circumstances leads to a wrong direction.

Insufficient preparation usually results in MBWAA (management by wandering around aimlessly!).› What are you trying to learn about?› Why do you want to learn it?› What will you do with it to make your

processes better once you have it?


SIXSIGMA

What is Sigma ?

Sigma A term used in statistics to

represent standard deviation, an

indicator of the degree of variation

in a set of a process

What is Six Sigma?

Six Sigm

a

A statistical concept that measures a

process in terms of defects – at the

six sigma level, there 3.4 defects per

million opportunities

A philosophy and a goal : as perfect

as practically possible

A methodology and a symbol of

quality

Sigma Level

Sigma Level (Process

Capability)

Defects per Million Opportunities

2 308,537

3 66,807

4 6,210

5 233

6 3.4

Sigma Level

Six Sigma = 99.9997%

Why Six Sigma?

Money

Customer Satisfaction

Growth

Quality

CompetitiveAdvantage

Employee Pride

Why Six Sigma?

Six Sigma is about practices that help

you eliminate defects and always

deliver products and services that

meet customer specifications

Cost of Poor QualityWhat is cost of scrap?

What is cost of rework?

What is cost of excessive cycle times and delays?

What is cost of business lost because customers are dissatisfied with your products or services?

What is cost of opportunities lost because you didn’t have time or the resources to take advantage of them?

Critical-to-Quality (CTQ)

Elements of a process that significantly affect the output of that process. Identifying these elements is figuring out how to make improvements that can dramatically reduce costs and enhance quality.

Define Measure Analyze

Improve

Control

Six Sigma Phases

D M A I C

Define

Measure

Analyze

Six Sigma Phases

Define the project goals and customer (internal and external) deliverables

Measure the process to determine current performance

Analyze and determine the root cause(s) of the defects

Improve

Control

Six Sigma Phases

Control future process performance

Improve the process by eliminating defects

Six Sigma Phases

Define

• Define Customers and Requirements (CTQs)

• Develop Problem Statement, Goals and Benefits

• Identify Champion, Process Owner and Team

• Define Resources

• Evaluate Key Organizational Support

• Develop Project Plan and Milestones

• Develop High Level Process Map

Six Sigma Phases

Measure

• Define Defect, Opportunity, Unit and Metrics

• Detailed Process Map of Appropriate Areas

• Develop Data Collection Plan

• Validate the Measurement System

• Collect the Data

• Begin Developing Y=f(x) Relationship

• Determine Process Capability and Sigma Baseline

Six Sigma Phases

Analyze

• Define Performance Objectives

• Identify Value/Non-Value Added Process Steps

• Identify Sources of Variation

• Determine Root Cause(s)

• Determine Vital Few x's, Y=f(x) Relationship

Six Sigma Phases

Improve

• Perform Design of Experiments

• Develop Potential Solutions

• Define Operating Tolerances of Potential System

• Assess Failure Modes of Potential Solutions

• Validate Potential Improvement by Pilot Studies

• Correct/Re-Evaluate Potential Solution

Six Sigma Phases

Control

• Define and Validate Monitoring and Control System

• Develop Standards and Procedures

• Implement Statistical Process Control

• Determine Process Capability

• Develop Transfer Plan, Handoff to Process Owner

• Verify Benefits, Cost Savings/Avoidance, Profit Growth

• Close Project, Finalize Documentation

• Communicate to Business, Celebrate

Champions Are responsible for the Six Sigma implementation across the organization in an integrated manner. Champions also act as mentor to Black Belts.

Includes CEO and other key top management team members. They are responsible for setting up a vision for Six Sigma implementation.

Key Roles for Six Sigma

Executive Leadership

Black Belts Operate under Master Black Belts to apply Six Sigma methodology to specific projects. They primarily focus on Six Sigma project execution.

Identified by champions, act as in-house expert coach for the organization on Six Sigma. They devote 100% of their time to Six Sigma.


Master Black Belts

Are the employees who take up Six Sigma implementation along with their other job responsibilities. They operate under the guidance of Black Belts and support them in achieving the overall results.


Green Belts

Six Sigma Do’s

• Do communicate the commitment company-wide

• Do demonstrate the commitment of company leaders

• Do empower your key human resources

• Do provide on-site mentoring for black belts

Six Sigma Do’s

• Do be patient at the inception of you six Sigma initiative

• Do claim and advertise early “wins”

• Do benchmark

• Do establish project baseline and goals

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Assignment Time: To be submitted before 10-10-2011

1) Explain Cause and defect diagram with example, (Ishikawa Diagram)

2) Explain in detail of Quality Circles.3) Brief out about Juran Trilogy and Six Sigma.4) In your opinion, which tools & technique is

best suitable for evaluation the performance at AIET, Hostel, Home, Sports and canteen. Substantiate with your explanation.

5) Write short notes on Six sigma, Poka-yoke, Benchmarking, Juran Trilogy

6) In your gesture, what technique should be implemented to keep your class silent and why this technique!

Prof. Raghavendran V

TQM, VTU, Unit 5

Education

Transcript of TQM, VTU, Unit 5