Quality Management Systems and Practices

(FOR MBA PHARM TECH TRIMESTER XII)

By PROF. HARESH

1 Introduction to Management, PDCA cycle & Operations Management

The Great Pyramid from Third million B.C. of Chepos , EGYPT

Salient Features of Pyramids:

Approximate duration of construction - 20 yrs. 2,300,000 stone blocks used, weighing from 2 to 70 tons a piece. Structure height of a modern 40 story building Each facing stone was set against the next with an accuracy of 0.04 inch. Base covers 13 acres, with deviation less than 1 inch from level. 100,000 laborers were levied to quarry the stones and transport them down the Nile. Number of skilled masons employed were 40,000. Public works was essential to keep the working population employed and fed. 150,000 women and children were housed and fed. In absence of modern tools and tackles, how they managed all above is a mystery. The quality and enormity of the finished product remain a marvel. Milestone of sorts in one of humanitys grandest undertakings due to managerial ability of Egyptians i.e. planning, organizing & controlling the entire activities over a long period of time to achieve the end product as desired.

Some large projects of Universal importance of recent times may include:

The international space station, a modern large scale project. This project required development of new technologies and the efforts of the US, Russian, European, Canadian and Japanese space agencies.

The Large Hadron Collider (LHC) is the worlds largest and highest energy particle accelerator. It is expected that it will address some of the most fundamental questions of physics, advancing humanity's understanding of the deepest laws of nature. The LHC lies in a tunnel 27 kilometers in circumference, as much as 175 meters (574 ft) beneath the Franco-Swiss border near Geneva , Switzerland

What is Management?
Definition :- Management is a continuous process of creating and maintaining an environment conducive for performance for a group of people working together towards attainment of a common objective or goal in time. Key points: 1. Management is a process oriented approach. 2. Management is not a one time activity. 3. Management creates and maintains an environment conducive for performance. 4. Management is teamwork for a group of people bound by a common objective. 5. In time Very important aspect otherwise the whole efforts may become null and void. Leader Vs Manager

Managerial Functions, Conventionally :

Planning Organizing Staffing Directing and Controlling

The conventional concept was discarded by the Japanese industries more than 50 years ago. Soon after the European, American and rest of the world industry realized the flaws in these managerial functions. Some obvious errors were.
Planning can not be done prior to Organizing and staffing. It will be incomplete plan without knowing who are going to execute it and how they will be staffed? Along with directing , coordinating, leading etc should also have been included. Also these can not be termed as functions of management. You never see a department meant for directing workers, its part and parcel of all management functions. Controlling is a Management function which is nothing but the periodic check to see whether we are proceeding as planned and in case of deviation to take corrective action.

Dr. W. Edward Demings PDCA cycle:

Mr. Walter Shewart introduced Management with focus on continuous improvement and elimination of errors. It was projected as a process concept of P-D-C-A cycle. Mr. Edward Deming popularized P-D-C-A cycle worldwide. Here again Planning plays a crucial role. It is often said that if you have one hour to cut down a tree, you must spend seven hours sharpening your axe. Let us now understand PDCA cycle in detail. ( refer continuous improvement ppt)

Effective and Improved PDCA cycle:

A deviation or mistake should occur only once and should not be repeated again. This is achieved by continuous process of refinement or mistake proofing. Adoption of QMS like ISO 9000 ensures the above objective along with the Total Employee Involvement. Organization should have a SMART vision statement Specific, Measurable, Attainable, Realistic and Time bound. Unification of objectives of the employees with organizational objectives and goals is a must. Hence the improved PDCA cycle can be shown as below:

Model of Process based Quality Management System

Redefining the functional orientation of departments:

For a good long time organizations followed strict departmental orientation and each department is a power centre by itself. Departmental objectives and loyalty come to play over and above organizational objective and loyalty, sometimes they used to clash giving result as a zero. In WOR or Monthly review meetings , passing the buck becomes the practice.

Functional relationship of departments :

 Organization structure :- vertical chimney structure.

The vertical chimney structure symbolizes , Strong power centers Autocratic working culture without goal integration Organizations started failing in highly competitive global environment. The functions of the departments and the organization structure have to be reoriented for survival and succeed. The departmental walls need to be thin and transparent mingling into each other into a continuous process with ultimate and internal customer focus and Horizontal quality thinking.

Horizontal Quality Thinking:

The only way to survive in Market is Customer Focus Concept of Internal Customer i.e. Final Customer is direct customer of Marketing /sales department , which is in turn customer for production department. Production department involved in value addition by conversion is customer for materials, finance, maintenance , HRD etc. and so on

Horizontal Quality Thinking , contd.

Customer Satisfaction is the key, but is missing badly in Indian Industries as compared to industries in Europe and USA.

Horizontal Quality Thinking , contd.

The key areas of focus to achieve complete customer satisfaction are : 1. Accurate demand measurement and sales forecasting 2. Market research/ consumer research 3. Customer relationship management ( CRM) 4. Technology Management 5. Environmental scanning 6. Value analysis 7. Logistics and supply chain management ( SCM) 8. Excellent customer response ( ECR)

Managerial roles:
All managers need four types of skills to adapt themselves to their role of achieving surplus. 1. Technical skills / Technological skills knowledge about product and its usage, technical knowledge about process, technical knowledge about the competency of the team 2. Human relation skill - communication skills, informational role, interpersonal skills, liasoning skills 3. Decision-making role - Timely decision making 4. Entrepreneurship skills Self motivation, crises management

Operations Management:
Is the management of a process or sub-process consisting of a distinctive input and a well defined process for value addition by conversion leading to a value- added output. Operation management principles are uniformly applied to both the manufacturing and the service sectors.

Definition of Operations Management:

Effectively and efficiently carrying out a business process or an activity which leads to accomplishment of goal and / or objective normally related to an organization with creation of maximum possible surplus in time. Salient features of Operation Management are: 1. It is a business process, which should be both effective and efficient 2. Effectiveness ability to achieve the target 3. Efficiency Output/ Input 4. CWQA Company wide quality assurance activity 5. Value added = Value of output Value of Input 6. Cos to value addition = Cost of resources consumed for value addition 7. Surplus= Value added cost of value addition, obviously should be + ve. 8. Performance of Manager is judged by his/her ability to generate the surplus and achievement of organization objectives with in a time frame. 9. The concept of Operations management can be equally and effectively applied to all functions such as Production, Marketing, Finance, General management, HRM etc.

Universal model of Operation Management :

The management ensures optimum utilization of all the resources for attainment of business objective.

The environment plays a crucial role: e.g. Political, global business environment, legal environment, infrastructure, social , economic and so on. Operation management strives for performance excellence and multiplying ROI.

Concept of Productivity :
World class companies create surplus through productive operations. Productivity = Output/ Input , with in defined time period with due consideration for quality. To improve productivity, 1. Increasing output with the same input 2. Increasing output more than the increase in input 3. Decreasing input for the same output 4. Increasing output with decreasing input Clarity to all managers about their goals and organizations goals is a must to avoid confusion in the organization. Hence the organization should declare its vision, mission and annual objectives to chart out a clear unambiguous path for the organization.

2 Customer satisfaction/ ROI & Organization structure

The Concept of Customer Satisfaction:

The organization survives because of its customers. Fulfillment of stated need and implied need results in satisfied customer. A satisfied customer results in : 1. Repeat business sometimes with increased quantity. 2. Good will ambassador for the organization ( word of mouth publicity) 3. Neglect minor errors if captured and sometimes gives valuable suggestions. 4. Support for further improvement of product / service In case of service, time utility, place utility and price play a pivotal role in customer satisfaction wherein he looks for Value for Money A. The concept of Right Quality : to meet functional usage of product, Customers
B. C. D. E. perception about right quality must be properly understood. The concept of Right Quantity : DRP ( Distribution requirement planning) is of utmost importance. Customers perception of right quantity should be well understood. The concept of Right Time: Personal usage and buying habits should be well captured. The concept of Right Place: Availability of product at right place where demand exists. The concept of Right Price: Very important specially in globalised market environment.

Return on Investment ( ROI):

Main objective of business from investors/ shareholders view point. ROI calculation involves two factors:
1. The average profit per transaction ( cycle of working capital) 2. The number of times the working capital is turned round per annum. And ROI is given as, ROI = ( Avg.) Profit ( per cycle ) x No. of working capital cycle per annum

Thus to increase ROI one need to work on both the factors. Let us now take an example to compare two options using ROI concept:
Customer B ( small organization)
Allows company to charge a profit margin of 5% Payment processing starts immediately and payment is received effectively after 5 days supply

Customer A ( Big organization)

Allows company to charge profit margin of 20% Payment processing starts after 3 months of supply payment is received effectively after 4 months of supply

Consider company supplies both the customers same value of material every month. Which of the two is a better business proposal? ( Solution)

Break Even point ( BEP) :

It is the crucial point beyond which the firm starts making profit Let, TR: Total revenue / Total sales value
TC :Total cost FC : Fixed cost VC : Variable cost per unit BEP : Break even point (quantity), and SP : Selling price per unit , Then Per unit Contribution = SP- VC At break even point ( no profit no loss point ) you will have, FC = BEP x ( SP VC) Or BEP = FC / ( SP-VC) (Example )

3 Total Quality Management ( TQM)

Conventional approach of quality:

Quality is product related , standards guidelines Food quality - Agmark Technical products / laboratory standards - ISI These were segment specifics eg european standards were differ from ISI, etc. A product which is good quality for a certain user may be a bad quality for another user segment Quality defined : Dr. Juran, management and quality guru of the 20th century defined Quality as fitness for use. Philip Crosby, who worked a lot in TQM arena , defined Quality as conformance to the requirement ISO 9000-2000 defined Quality as the degree to which a set of inherent characteristics fulfills requirements To sum up quality can be defined as The totality of the features or state of the products and/ or services that satisfies the stated and the implied need of the customer.

 Quality has become key aspect of current business management and success of an organization. Mr. Edward Deming states : Leadership in quality decides the market leadership

Quality satisfies Three Fs Fit , Form and Function

1. 2. 3. Fitness for use, fitness for purpose Totality of features and characteristics shape and design of the product Conformance to the requirement customers requirements are exactly investigated and understood by the organization and products and services are offered accordingly. In some cases customer doesnt have prior experience of the product or service and hence will not be able to transform the implied need into the stated need at the time of purchase, but a quality oriented organization is expected to educate the customer and give him the best quality product or service to satisfy his implied need.

Stated and Implied need

Introduction to TQM:
The Indian industries has a comfortable period from 1950 to 1980 due to License Raj Where supply was less than demand and the Indian market was highly protected from foreign players, and the result was Even junk product had customers Industries followed a push strategy Plant production optimization got priority over customer satisfaction or market requirements No customer orientation Less innovation/ dynamism outdated technology lower productivity, poor product quality and stagnant industry. Japanese industries followed path and guidance of Joseph Juran and Edward Deming and followed TQM principles and by 1970-80 were leaders in most of the industries. The leading global companies were, SONY Consumer electronics TOYOTA and HONDA Four wheelers RICOH Watch industry

Mitsubishi Heavy vehicles, engines etc Japanese TQM pioneers were, Taichi Ohno JIT, KANBAN and TPS ( Toyota Production systems) Matsushita & Shiego Shingo Ishikawa & Masaki Imai After Japan slowly industries from Korea, US and Europe started adopting the Japanese success stories through TQM route or rather Process oriented TQM route. China , Taiwan, Malaysia and other Asian countries later joined the TQM path. In India post liberalization in early 1990s , strong need for TQM was felt by industries. Some new emerging Indian industries adopted TQM principles and started seeing the benefits of it immediately. Some of such names are: TVS group, Wipro, Infosys, Reliance Industries, Mahindra group, Tata group, L & T group, Birla group etc.

BIG Q and small q:

The key to customer satisfaction is to go beyond the concept of product quality or small q and adopt the TQM or BIG Q. The only department involved in small q was quality control but in TQM all functions including marketing, production, materials, personnel and even finance were involved. Marketing department assumed critical role where the TQM activity begins and ends. The two management gurus Edward Deming and Joseph Duran made the world to realize the key to the business leadership is the management of quality on all aspects of business operation and not merely to the product quality. Big Q overlooked small q and TQM became way of life for industries across.

TQM definition:
An organized scientific approach towards continuous improvement of quality involving everyone in the organization covering every function aimed towards total customer satisfaction The concept believes that if the process is correct and control , the product can not be defective Goals of TQM are: 1. Customer delight / satisfaction in totality 2. Continuous improvement 3. Total employee involvement and empowerment 4. Optimization of resources 5. Do it right the first time ( in satisfying the customers), organization should develop capability to capitalize the opportunity first time itself if it has to survive and excel.

Important features of TQM are:

Enduring journey of infinite length, Peoples process with bottom up approach without forcing the employees instead working for change of their mind set. Challenge the business for better i.e. continuous improvement should be the usual attitude self renovating business organization Although commitment and participation of all the members of organization to attain the desired organizational goals with respect to TQM, the final responsibility belongs to the top management.

Eight Building blocks of TQM:

1. 2. 3. There are eight building blocks which need to be practiced together in a cycle for the implementation of TQM These blocks can take the organization to an invincible position of market leadership globally. The 8 blocks are: Act always in line with customer needs ( stated and implied) , ultimate customer satisfaction will lead to market leadership Develop an internal customer- supplier relationship with in organization Measure the value added to the input by the process or the sub process, measure the cost of value addition ( resources consumed) surplus generated or efficiency of the process management Do it right the first time : Statistical process control, six sigma with aim of zero defect, wastage elimination , timely delivery

4.

5.

Follow Seven zero banner : Zero disdain for others Zero stock or inventory Zero delay Zero paper Zero downtime Zero defect Zero accident 6. Focus on prevention to prevent repetition of mistakes, root cause analysis 7. Involve all participants in the organization as well as business partners i.e. suppliers, vendors as well as customers 8. Satisfy all parties at the same timethe parties include employees, suppliers, customers, environment, share holders, society, country or universe at large.

Eight building blocks of TQM : Diagrammatic representation

TQM Pioneers :
TQM is world class management system which got established in last 5 decades.

The people who made substantial contributions towards TQM are: 1. Walter Shewart

Founder of PDCA cycle Originator of SPC ( statistical process control) at A & T lab in 1930 ( More)
Led quality revolution in Japan during the post world war II period Established that Quality is key to competitive advantage Today Deming quality award is most prestigious quality award in Japan He popularized PDSA cycle. ( Covered earlier) He gave 14 points for excellence and 7 diseases.

2. W. Edward Deming

Deming's 14 points
Deming offered fourteen key principles for management for transforming business effectiveness. In summary: 1. Achieve constancy of purpose for the improvement of product and service, with the aim to become competitive, stay in business, and provide jobs. In short : Setting the course today for being in business tomorrow. todays short term measures have long term impacts Peter Drucker. Often problem is consistency of purpose within the organization. Doing your best is not good enough, first you should know what to do and then do your best W.E. Deming 2. Adopt a new philosophy of cooperation (win-win) in which everybody wins and put it into practice by teaching it to employees, customers and suppliers. Also new philosophy of quality and cost relationship. Old thinking was if one tries to improve quality the quantity and hence productivity drops, i.e. it is a see-saw situation. New philosophy says of a little improvement in quality outlook results in increased quantity and productivity. How?

HOW?.. Improved process greater uniformity of product less mistakes and rework less waste of manpower, machine time, materials Increased output with lowered cost. Other benefits: better competitive position, happier people on the job, more jobs and improved morale. 3. Cease dependence on mass inspection ( Use of statistical sampling techniques) to achieve quality. Instead, improve the process and build quality into the product in the first place. Aim should be that of prevention ( of defects from occurring) and not elimination (of final products) based on final inspection. 4. Reduce number of vendors for better control and consistency :Stop practice of awarding business on the basis of price tag alone. Instead, minimize total cost in the long run. Move toward a single supplier for any one item, based on a long-term relationship of loyalty and trust. Why do this? The short answer is: reduce variation.

5.

Recognize two sources of faults: a) Management and production system & b) production workers. Improve constantly, and forever, the system of production, service, planning, of any activity. This will improve quality and productivity and thus constantly decrease costs. It is management's job to work continually on the system (design, incoming materials, maintenance, improvements of machines, training, supervision, retraining ). Assignable faults can be controlled by training/ retraining of production staff to improve their technical skills. 6. Improve on the job training: On the job training is most effective as the absorption on knowledge is maximum. Identify the training needs and skills required for each operator/ employee and use on the job training to address them. New skills are required to developed by all to keep up with the changes. `Statistical thinking will one day be as necessary for efficient citizenship as the ability to read and write. - H G Wells

7. Improve Supervision: Improve the supervision at process level to not only minimize errors during production but to also impart on the job training. Adopt and institute leadership for the management of people, recognizing their different abilities, capabilities, and aspiration. The aim of leadership should be to help people, machines, and gadgets do a better job. This will lead to continuous improvement, better productivity and enhanced quality of products, processes and services. 8. Drive out fear and build trust so that everyone can work more effectively. The entire organization should be self sustaining, proactive and employees should be involved. Fear should not be the driving force to achieve the end results as it will fail in long run. Fear of change is a big barrier to be overcome: people dont resist change, they resist being changed!! The need is for everybody to be part of the change, and to own the change process. 9. Improve communication: Break down barriers between departments. Abolish competition and build a win-win system of cooperation within the organization. People in research, design, sales, and production must work as a team to foresee and address the problems in time.

10. Eliminate slogans, exhortations, and targets asking for zero defects or new levels of productivity. Indeed, surely posters can give useful and helpful information? Surely, slogans are useful to jog the memory on important matters, and thus aid greater commonality of thought and aims? The argument is directed at those who simply tell (exhort) others to do better without helping them in any way so to do. Such exhortations only create adversarial relationships. It demonstrates ignorance or disbelief of the fact that the large majority of problems lie in the system, the responsibility of management, rather than with the workers at whom the posters and slogans are aimed. 11. Consider work standards carefully. Eliminate work standards (quotas) on the factory floor. Substitute leadership. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership. Eliminate work standards that prescribe numerical quotas for the workforce and numerical goals for people in management. Substitute aids and helpful leadership; statistical methods for continual improvement of quality and productivity.

11. contd. No, Deming is not telling us to manage without numbers! And, of course, both companies and individuals need goals, intentions, and aims - but not in isolation; they need the education, training, systems and methods to make it reasonable for these to be attained. What they do not need is arbitrary numerical goals. Of course, a company needs budgets and forecasts for planning and allocation of resources but they must also not be arbitrary numerical goals, nor must they become such. Total Quality Leadership versus Management by Control: Consider these examples: An electronics firm typically ships 30% of its production on the last day of the month. Why? In order to meet the monthly shipment quota. How? By expediting parts from around the country, by moving partially-completed instruments ahead of their place in line and, occasionally, by letting quality standards slip. Another firm sometimes ships incomplete instruments. A service representative then flies around the country installing the missing parts. The shipment quota for the month is met again. Profits, at least on paper, hold firm.

11. contd. A chemical plant reports it cannot efficiently run at the mandated inventory levels, so it keeps inventories higher until June 30 and December 31 when inventories are measured. For those days, it depletes the inventories to an acceptable level, perhaps losing two days production as a consequence. Many managers annually negotiate safe goals and manage to exceed them, just barely. Some managers include on their list of negotiable goals figures which were already secretly accomplished prior to the negotiations. Production which exceeds the standards is stored so it can be pulled out and used another day. An operator stops his machine at 2 o'clock in night and goes to sleep rather than exceed his work standard. 12. Teach Statistical Methods: Emphasize implementation of SPC in manufacturing which, Improves machine/ process capability Improves capability to produce zero defect in products and services Enhances productivity and gives smart solutions to achieve end results effortlessly.

 Use statistical knowledge to reduce efforts eg sampling techniques and achieving fair amount of accuracy in the results which leads to improvement in productivity. Statistical techniques like sensitivity analysis etc helps management in decision taking and achieving most optimum results. 13. Institute a vigorous programme of education and self-improvement for everyone, encourage new skills. Deming was, first and foremost, an educator. 'WE'RE NOT HERE TO LEARN SKILLS; WE'RE HERE FOR EDUCATION TO LEARN THEORY'. Training for a skill is finite; it ends when ability has reached a stable state. In comparison, education is never-ending. A company should take action to aid and encourage the education of its employees at all levels. The company's own courses should no longer be restricted to training, but be broadened to include good educational content. New skills, innovations and development is a must for any organization. An organization should have a system like suggestion scheme, quality improvement teams, etc to encourage new skills and their implementation.

14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job. Clearly define top management's permanent commitment to ever-improving quality and productivity, and their obligations to implement all of these principles. Create a structure in top management that will push every day on the preceding 13 Points, and take action in order to accomplish the transformation. Mere support is not enough: action is required. Learn and adopt the new philosophy, and put everyone to work on it and in it. Some final words from Deming: QUALITY IS MADE IN THE BOARDROOM LIMITATIONS ON QUALITY ARE ALSO MADE IN THE BOARDROOM A COMPANY CAN DO WELL WITH POOR MANAGEMENT FOR A WHILE after all, SURVIVAL IS NOT COMPULSORY!

Seven Deadly Diseases given by Dr. Deming

The Seven Deadly Diseases: 1. Lack of constancy of purpose to plan product and services that have a sufficient market to keep the company in business and provide jobs. 2. Emphasis on short-term profits; short term thinking that is driven by a fear of unfriendly takeover attempts and pressures from bankers and shareholders to produce dividends. 3. Evaluation by performance, merit rating, or annual review of performance and management by objectives without providing methods or resources to accomplish objectives is a huge disaster. 4. Mobility of management staff or Job hopping by managers may result in degradation of quality of the management staff, which is a severe disease. 5. Running a company on visible figures alone i.e. not considering anything beyond available figures for decision making is not a healthy practice. 6. Excessive medical costs clearly indicates either high rate of accidents or unhealthy practices or environment with in the organization. 7. Excessive costs of liability driven by lawyers who work for contingency fees is a bad indication.

3. Dr. Joseph M Juran (December 24, 1904 February 28, 2008)

Led quality revolution in Japan during the post world war II period Defined quality as Fitness for use He gave the triology of I. Quality Planning on the lines of Demings PDCA cycle but in a more organized way of deciding the MISSION, VISION and QUALITY OBJECTIVES in advance and working out a plan to achieve it in least cost. He introduced the concept of cost of poor quality (COPQ) to focus on wastage and taking suitable steps to eliminate the same. II. Quality Control Dr. Juran defined quality control as Control over the process involving periodic measurement of events and checking whether they are as per the prior plan and taking corrective action if deviation is observed. This he believed would keep the deficiencies at the same level and would not allow them to increase. III. Quality improvement To eliminate the hatchery of chronic deficiencies in a systematic manner involving Jurans quality improvement projects ( JQIP) leading to reduction in COPQ and thereby increasing profit, quality and customer satisfaction.

JQIP focuses on the major cross functional areas of performance improvement leading to quantum jump in organization improvement. Founder of Jurans Institute in USA , which is very active in consultancy and training He was the first to publish Quality control Handbook you can follow them on face book visit following site http://www.qualitydigest.com/inside/quality-insider-news/strategic-qualityplanning-and-deployment-moving-good-great.html - Useful video on Minitab He proved with his detailed research work that an organization, which has quality leadership is also the market leader.

Jurans Triology in detail 1) Quality Planning The steps involved are,

1) Set up a long term goal or mission 2) Define vision statement, i.e. value system in organization guiding every one.

3.

Break up the mission statement in annual short term goals which should be SMART ( Specific, Measurable, Attainable, Realistic and Time bound) 4. Identify customer who will help organization to achieve these goals. 5. Discover their needs 6. Develop product features responding to their needs 7. Establish product goals 8. Develop system and processes to produce these product features. 9. Prove process capability and hand over to production ( plan at operating level) Jurans findings through his research were: 1. 20% deficiencies are normally inherent, due to bad quality planning 2. The best quality control can do is to maintain this 20% level not allow the deterioration 3. Quality planning integrates the organizations mission and achievements with routine activities and makes it a habit. 4. Quality planning replaces conventional system of budgeting and is the starting point for an organization to be world class.

2. Quality Control: He defined it as control over process, It consists of two major processes:
1. 2. Statistical Process control ( SPC) Training on statistical tools It is to be from within or the concept of self control, for achieving which everybody in organization ( workers and management staff) must be provided with: Means of knowing quality goals Means for knowing his performance on the quality goals Means for regulating and correcting his performance. Thus QC Continuous appraisal and measurement of the performance of an individual, department/ function and organization visa vis quality plan , corrective action for deviation to put the process back on track. Also QC warrants taking preventive action to avoid future recurrence of the deviation. Jurans triology does not believe in becoming cheer leader, slogans, exhortations, etc as they do not work due to vagueness involved which can not compete with the structured and systematic process.

1. 2. 3.

Juran clearly stated that every successful quality revolution has included the participation of upper management without exception. Thus QC ensures consistency in performance of product, process and service.

3. Quality Improvement- JQIP is extremely popular across globe.

Juran clearly states that it is the number of QIP undertaken by an organization decides the rate of growth of an organization (evolutionary or revolutionary rate of growth) and market leadership. Different phases of Quality improvement are as follows: 1. Start up Create organization and infrastructure 2. Test Pilot phase 3. Scale up 4. Institutionalize: a) The habit of annual quality improvement b) Number of QIP undertaken decides quality leadership c) It is high time now for Indian Industries to take up quality planning and improvement to overcome the chronic deficiencies.

 Two changes required

i. ii. Structured and disciplined approach Training to Planners

5.

Provide lessons learned from feedback for QIP- create database and implement in other relevant areas.

Dr. Juran gave 10 step Quality improvement plan as follows:

1. 2. Building awareness for both needs and opportunities for improvement should be an ongoing activity. The Quality council to do the Pareto analysis to choose vital few projects, which if successful will give organization a huge jump in performance in processes , products or services. The Quality council should select a heterogeneous cross functional team to work on JQI project, the leader should be from the most affected function eg JQI project on increasing market share will choose marketing head as leader. The organization to provide training to this entire team on advanced problem solving tools and techniques.

3.

4.

The team does , Brainstorming session cause and effect diagram analysis to discover root causes Study from all cross functional angles. 6. Evolve remedies to overcome causes - remedial journey 7. Team should test all remedies for adequacy and effectiveness and ultimately reach the best remedy which satisfies all the musts and maximum wants. Validate the remedy by implementing under controlled conditions and if satisfied then implement in the entire organization. 8. Team should address the change to the relevant persons and train and convince them to implement the solution. The project team must overcome the resistance and institutionalize the solution for implementation. 9. The Quality Council and the top management should give recognition to the good JQI projects and its team members. The success should be shared in open house meetings, sessions and the house journals. Suitable benefits and rewards can also be given depending on the quality and benefit of the work. 10. Involvement of Quality Council, the Project Team as well as the concerned officials in the day to day activity concerned with the project work should ensure that there is a suitable control mechanism to hold the gain post implementation. 5.

4. Philip B. Crosby
Defined quality as Conformance to Requirement Started Crosby quality college, wrote many books like Quality is free Quality without tears The Eternally successful organization. IBM was one of his major successful clients. He tried to popularize concept that Quality is free and became famous for his 6 Cs. Comprehensions or ability to understand and absorb quality related activities, its sustenance and improvements. Commitments by all i.e. top management, employees , suppliers and the customers to Quality Management System ( QMS) performance. Competence ( of the entire QMS) for improvement and then sustaining the improvement on a long term basis.

1.

2.
3.

4.

Corrections that is fool proofing the QMS by rectifying the mistakes and deviations to put back the system on track. 5. Communications in the organization should be clear and honest. This will ensure support to QMS from employees, suppliers and the customers alike. 6. Continuance of the Organizations good performance and its continuous improvement is the essence of a world class organization and its successful operation. Crosby formulated his theory on how to get results by spending a small % of the operating cost on education and error prevention. He educated the companies how to get things right the first time and achieve Zero Defect. Crosby has defined 4 absolute requirements to be fulfilled for the attainment of quality. They are as follows: 1. The definition of quality is conformance to requirement. 1. Establish the requirements that employees are to meet. 2. Supply resources needed by the employees to meet those requirements. 3. Encourage and help employees to meet the requirements.

2.

The System of Quality is Prevention The concept of prevention is based on understanding the process that needs preventive action. The preventive activities are to look at the processes and identify opportunities for the error which can be controlled by eliminating the root cause of the problem. 3. The performance of the standard is Zero defects Declare AQL ( Acceptable quality level) , SPQL ( Shipped product quality level) etc. Absolute conformance to the requirement. There can not be grade or % of performance. The employees have to do the things right the first time. 4. The measurement of Quality is the Price of Nonconformance- The Cost of Quality has two factors: 1. Price of Conformance- Cost of the prevention efforts, training , education on quality, generally should not exceed 2% of the sales. 2. Price of Non conformance- Faulty handling of a customers enquiry to loss of orders, rejection, delayed delivery, rework, salvaging etc, it can be as high as 20% to eat up companys entire profit.

Crosby gave 14 point implementation procedure given below:

1. Management Commitment Quality Council to be formed Decide on Corporate policy / Quality Policy. Discuss Quality in Management review meetings and other Top Management communications to employees and others. Quality Improvement Team- cross functional, Chair person should be from Top. Measurement devise ways and means of measuring evidence of improvement, Quantification of costs and benefits. Cost of Quality The Team plans and implements a strategy to measure the cost of non conformance and undertake quality improvement projects to minimize the same until they reach stage of zero defect i.e. Nil cost of non conformance . Quality Awareness - through number of education and training programs. Corrective Action- All the employees to develop habit of taking corrective action at the first instance of deviation noticed. Zero defect planning- Once the organization has reached a reasonably good level then the team should plan for a fool proof system or Do-it -right -the -first -time. Employee education with help of consultants impart training about Quality Improvement tools to employees.

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5. 6. 7. 8.

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10. 11.

12. 13.

14.

Zero defect days Team plans for occasional zero defect days when the team closely monitors the processes and activities and ensures that the employees actually believe that zero defect is possible by actually seeing it happening. Goal Setting Team should motivate and help individual functions to set their own objectives or goals and action plan ( QIP) for the same. Error cause removal - Team should go to the root cause and plan for preventive action so that the root cause itself is not repeated again so that error will never get repeated. Reorganization Team should recognize good efforts by individual or QIP teams by giving awards, promotions, etc. Extremely important for motivation of employees. Quality council QIP teams should submit periodic reports to Quality Council which should discuss the progress with the team with respect to the goals set and decide on resource allocation. Do it over again The Quality Council and QIP team takes stock of the successful QIP projects by measuring the gains from such projects. Then examine other areas critically to identify areas where similar projects can be taken straightway for implementation.

5.

A.V. Feigenbaum
Born 1922 is an American Quality Control expert and businessman. He devised the concept of Total Quality Management (TQM). He was Director of Manufacturing Operations at General Electric (1958-1968). Feigenbaum wrote several books and served as President of the American Society for Quality (1961-1963). He worked towards effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organization so as to enable production and service at the most economical levels which allow full customer satisfaction." The concept of a "hidden" plantthe idea that so much extra work is performed in correcting mistakes that there is effectively a hidden plant within any factory. Accountability for quality: Because quality is everybody's job, it may become nobody's jobthe idea that quality must be actively managed and have visibility at the highest levels of management. His also gave theory of 3 steps to Quality : 1. Quality Leadership, 2. Modern quality technology and 3. Organizational commitment

6. Kaoru Ishikawa Originator of Fish bone or the cause and effect diagram Originator of concept of Company wide Quality Control ( CWQC) Responsible of initial deployment of quality circles Remove the root cause and not the symptoms.

Let us see Ishikawa Diagram or Cause and Effect diagram in detail:

Follow these steps to solve a problem with a Cause and Effect Diagram: 1. Identify the problem: Define the exact problem you face in detail and write in problem box at the end of the arrow. Where appropriate identify who is involved, what the problem is, and when and where it occurs. 2. Work out the major factors involved: Next identify the factors that may contribute to the problem. Draw lines off the spine for each factor, and label it. Generally factors/ causes are categorized in 5 major categories : Men, Machine, Method, Material and Environment. Using the 'Fish bone' analogy, the factors you find can be thought of as the bones of the fish. 3. Identify possible causes: For each cause/factor , sub causes are also defined and written on the diagram. Show these as smaller lines coming off the 'bones' of the fish. 4. Analyze your diagram: By this stage you should have a diagram showing all the possible causes of your problem. Depending on the complexity and importance of the problem, you can now investigate the most likely causes further to get to the root cause of the problem. This may involve setting up investigations, carrying out surveys, etc. Team should ensure a permanent solution to the problem and prevent its recurrence.

7. Shiego Shingo
Poka-Yoke Techniques to Correct Defects + Source Inspection to Prevent Defects = Zero Quality Control This famous equation is the essence of Zero Quality Control Concepts formulated by the Japanese quality guru, Dr. Shigeo Shingo. Dr. Shigeo had gained notable fame as an engineering genius from his work in developing Just-In-Time (JIT), and consequently the Toyota Production System (TPS) Just in Time ( JIT) : According to the American Production and Inventory Control Society (APICS), JIT can be defined as: "A philosophy of manufacturing based on planned elimination of all waste and continuous improvement of productivity. The primary elements include having only the required inventory when needed; to improve quality to zero defects; to reduce lead time by reducing setup times, queue lengths and lot sizes; to incrementally revise the operations themselves; and to accomplish these things at minimum cost."

The primary objective in implementing JIT to a production facility is to obtain a competitive advantage and increased productivity by eliminating the following seven types of wastes. The 7 types of wastes are : 1. Waste from overproduction 2. Excess Transportation 3. Excess Inventory 4. Waiting Time 5. Processing Waste 6. Wasted Motion 7. Waste from Production Defects

SMED
Dr. Shingo Shigeo, as part of JIT, also pioneered the concept of Single Minute Exchange of Dies. SMED was developed in order to reduce the fixed cost associated with the setup and changeover of dies. The basic elements driving the SMED concept are to reduce the setup time of dies, which directly result in smaller batch sizes for parts. A smaller batch size translates as lower costs associated with work in process inventory storage. This concept is especially beneficial as it allows the manufacturing system to quickly adjust to changes with very little costs. In addition, SMED allows for higher machine utilization and in turn results in higher productivity. Dr. Shigeos approach to developing the SMED concept was to isolate and identify the setup time as two entities: internal setup time and external setup time. According to him, a simple approach to achieving a quick setup and changeover of the dies can be done in the following steps: (concept of modular manufacturing) 1. Separating internal and external setup as it is existing 2. Converting internal to external setup 3. Streamlining all aspects of the setup operation Many companies that conduct stamping operations in a manufacturing environment have found success by implementing this principle into their existing improvement programs.

Zero Quality Control

Dr. Shigeo Shingos Zero Quality Control (ZQC) techniques make use of the following engineering principles: 1. 100 percent inspections done at the source instead of sampling inspections 2. Immediate feedback from successive quality checks and self checks 3. Poka-yoke designed manufacturing devices The Zero Quality Control concepts are based on a theoretically ideal scenario. However, by using these principles and concepts, quality improvements can be made. Dr. Shigeos basic idea was to implement mistake-proofing devices in the assembly line to eliminate the possibility of defective operations. In addition, his emphasis on targeting the root cause of defect (source defect) whenever a defect occurs, virtually eliminates the need for statistical process control.

8. Taiichi Ohno
Formulated Flexible manufacturing system ( FMS) Father of JIT ( Just in time) and Kanban system of manufacturing Father of TPS ( Toyota Production systems)

9. Masaaki Imai Populated the Kaizen concept of

continuous improvement

10. E . Goldratt Theory of Constraints All of them advocated the Involvement of Top Management as the foremost important requirement for successful implementation of TQM.

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