A PRESENTATION ON

KAUSTAV LAHIRIPRODUCTION AND OPERATIONS MANAGEMENT

HP INDIA

◦ In today’s world due to insufficient quality or indifference to quality lead to disputes, which imposes serious drain on the financial resources of a company and limits profit potential.

◦ To be competitive in today’s market, it is essential for construction companies to provide more consistent quality and value to their owners /customers.

◦ It is high time to develop better and more direct relationships with our owners/ customers, to initiate more teamwork at the jobsite, and to producebetter quality work.

◦ TQM owes its origin to two Americans- W.Edwards Deming and J.M. Juran- who launched it first in Japan which was on the process of rebuilding its economy devastated by World War- 2

ABOUT

◦ WHAT IS TQM?

TQM is an integrated organizational approach in delighting customers (both external and internal) by meeting their expectations on a continuous basis through everyone involved with the organizational working on continuous improvement in all products/processes along with proper problem solving methodology.

“TO DELIVER HIGHEST VALUE AT LOWEST COST” is the main objective of TQM

◦Total - The responsibility for achieving Quality rests with everyone a business no matter what their function. It recognizes the necessity to develop processes across the business, that together lead to the reliable delivery of exact, agreed customer requirements. This will achieve the most competitive cost position and a higher return on investment.

◦Quality - The prime task of any business is to understand the needs of the customer, then deliver the product or service at the agreed time, place and price, on every occasion. This will retain current customers, assist in acquiring new ones and lead to a subsequent increase in market share.

◦Management - Top management lead the drive to achieve quality for customers, by communicating the business vision and values to all employees; ensuring the right business processes are in place; introducing and maintaining a continuous improvement culture.

Significance of the term TQM

TQM is the foundation for activities, which includes: ◦ Commitment by senior management and all employees ◦ Meeting customer requirements ◦ Reducing development cycle times ◦ Just In Time/ Flow Manufacturing ◦ Improvement teams ◦ Reducing product and service costs ◦ Systems to facilitate improvement ◦ Employee involvement and empowerment ◦ Recognition and celebration ◦ Challenging quantified goals and benchmarking ◦ Focus on processes / improvement plans

This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.

Scope of TQM

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1) Create constancy of purpose towards improving products and services, allocate resources to provide for long term need rather than short term profitability.

2) Adopt the new philosophy for economic stability.

3) Cease dependence on inspection to achieve quality.

4) End the practice of awarding business on the basis of price tag alone.

5) Improve constantly and forever every process.

6) Institute modern training (for every employee!).

7) Institute modern methods of supervision on helping people do a better job.•

Deming’s fourteen principles for TQM

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8) Encourage employees to speak up to drive out fear throughout the organisation.

9) Break down barriers between departments by encouraging through teamwork and combining the efforts of people.

10) Eliminate slogans, exhortations, and targets for the work force.

11) Eliminate work standards that prescribe numerical quotas.

12) Remove barriers to pride in workmanship.

13) Institute a vigorous program of education and self- improvement for everyone.

14) Place everybody in the company to work to accomplish the transformation and create a structure in top management that will push every day on the above points.

Deming’s fourteen principles for TQM(Contd..)

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The benefits of TQM can be classified into the following two categories:1. Customer satisfaction oriented benefits.2.Economic improvements oriented benefits.

1. Customer satisfaction oriented benefits: The benefits under this category are listed below:(a) Improvement in product quality.(b) Improvement in product design.(c) Improvement in production flow.(d) Improvement in employee morale and quality consciousness.(e) Improvement of product service.(f) Improvement in market place acceptance.

2. Economic improvements oriented benefits: The benefits under this category are as follows:(a) Reductions in operating costs.(b) Reductions in operating losses.(c) Reductions in field service costs.

Benefits of TQM

THE COMPANY

IMPLEMENTATION OF TQM AT:

Rashtriya Ispat Nigam Limited (Vizag Steel Plant)

◦One of the leading public sector enterprises under the Ministry of Steel, Government of India

◦Located in the state of Andhra Pradesh.

Why TQM at RINL?

◦TQM was implemented in the company to achieve the objectives of:

◦Preparing the company's products and internal processes to global standards

◦Enhancing quality, productivity, and total performance of the organization

◦Enriching the quality of work life of its employees

CONCEPT OF CONCEPT OF SIX SIGMASIX SIGMA

What is Six Sigma exactly means:

o Six sigma is a way of thinking and the results of the approach can yield a spectrum of improvement choices based on the balance of values and risk.

o Six sigma is an internationally recognized management process focused on producing high quality products or services to meet the customer’s need and satisfaction

o Six Sigma is not a set of statistical tools, neither it is a bureaucratic, stage – gate approach to managing the projects but it is represents a philosophy to reduce variation continuously and create a win situation for all the partners in and around the business or services.

o Six Sigma pioneer Motorola started the program in 1987. Motorola describe Six Sigma as a standard methodology "for driving and achieving transformational change within an organization.

CONTD.

Objectives of Six Sigma:

1. To reduce variation.2. To solving the problems in scientific manner. 3. Six Sigma places an emphasis on the DMAIC approach (define,

measure, analyze, improve, and control) to problem solving.4. To develop the bottom line responsibilities towards continuous

improvement.5. Organizations using Six Sigma often utilize teams that are assigned

well-defined projects with a direct impact on the bottom line.

Three Key Characteristics of SIX SIGMA:

Leadership Commitment:

Achieving Six Sigma is not easy – it requires serious commitment in the form of time, effort, and resources. For a company to be successful, such commitment must come first from the top executive leadership of the organization and must be practiced by everyone.

Managing Decisions with Data:

It is not enough to run a business based on one's experience or "tribal knowledge." Decisions must be based on data versus the typical "I think", "I feel", or "In my opinion" practices that often exist today.

With the maturation of the information economy, data is available to virtually everyone in the organization, along with the tools for analyzing that data. Properly using data to Measure, Analyze, Improve, and Control performance forms the foundation of the Six Sigma methodology.

*** Training and Cultural Change:

• Improved performance does not and will not happen automatically. High-calibre training is required. Disciplined implementation must follow, and people at all levels have to change the way they go about doing their jobs.

•In short, new ways of thinking, communicating, and operating must pervade the entire organization. You also need a methodology. DMAIC and DFSS provide a structured problem solving roadmap and tools towards obtaining the results you expect.

Six Sigma Methodology – DMAIC & IDOV

Six Sigma is a process oriented methodology designed to improve business performance by improving specific areas of strategic business processes. There are 2 different methodologies available for carrying out improvements in processes or operations.

Improvements can be of two types: improving the existing process or designing a new process altogether. When we have an existing process and we want to improve the process we deploy the DMAIC methodology. While designing a new process or completely revamping the existing process the Design for Six Sigma or IDOV methodology is deployed.

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Define Define the problem.Define the customer(s) and the requirements.Define the current capability.Define the key processes that will have the greatest impact on customer.

Measure Identify the statistical measures to monitor the key process.Set up the data collection plan.Measure the process

Analyse Determine the analysis tools and methods to be used.Summarize the data measured.Run the analysis and determine the root causes, effects, etc.

Improve Improve and Implement.Focus on developing process/technology to improve the root cause.Test the method on sample process and validate the improvement.

Control Standardize and document the process and implement the plan.Monitor the process and feedback the results back to the process for continuous improvement.

DMAIC Methodology

Identify Develop a team.Create team charter.Gather VOC.Perform competitive analysis.Develop CTQs and formally tie design to VOC.

Design Identify functional requirements.Develop alternative concepts.Evaluate alternatives and select a best-fit concept.Deploy CTQs and predict sigma capability.

Optimize Determine process capability.Develop detailed design elements.Predict performance.Optimize design.

Verify Test and validate the design.Share feedback with manufacturing and sourcing to improve future manufacturing and designs.

DFSS (IDOV) Methodology

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Six Sigma Philosophy

Improve customer satisfaction by reducing and eliminating defects

Greater Profits

Motorola’s application of Six

Sigma

Six Sigma became a poster child for driving down cost and improving organizational

bottom line when Motorola won the Malcolm Baldrige National Quality Award in 1988, which was the first year this award was presented. In 1987, Motorola was operating at a four sigma level. This means that Motorola was running at defect rate of about 6,200per million opportunities compared to its Japanese counter parts that were running at 3.4 defects per million opportunities. Motorola’s defect rates lead to increase cost to sales and diminished profits and contributed to losing market share. Motorola’s customers included many police, fire, and emergency response organizations that relied on radios and communication equipments manufactured by Motorola.. Losing these customer’s to foreign competition would be public relations and financial disaster for Motorola.

Given Motorola’s dire situation, Chairman Bob Galvin mandated bold initiative forthe company. This mandate could be summed up as:(1) improve product quality by ten times in two years;(2) improve product quality by 100 times in four years; and(3) reach Six Sigma quality level in five years.

The immediate goal of Six Sigma is to reduce defects. Reducing defects leads to yield improvement. Higher yields improve customer satisfaction. The ultimate goal is enhanced net income.

Six Sigma applications brought process focus to the company and resulted in tremendous cost and process improvements. In 2002, Six Sigma application earned Motorola another Malcolm Baldrige National Quality Award in the Government and Industrial Sector.

WE APPRECIATE THE TIME TAKEN TO GO THROUGH THIS ARTICLE.