APPROACHES
Total Quality Management
Elements
Role of
Top Management
Quality
System
Plan
Act Specialist Do
Plan
Check
50.0
20.0
40.0
15.0
30.0
10.0 20.0
10.0
5.0
0.0
Lack of Tooling Process Design issues Vendor related
0.0
drawing clarity problems control issues problems
Leakage Missing Fouling Rew orks Poor routing Loose fitting
Cumulative occurrences
Cumulative occurences (%)
90.0
Number of occurences
80.0
25.0
Number of occurences
(%)
50.0
15.0 50.0 15.0 40.0
40.0 10.0 30.0
10.0
30.0 20.0
20.0 5.0
5.0 10.0
10.0 0.0 0.0
0.0 0.0 Design Lack of Vendor Tooling Process
Reworks Leakage Missing Loose Poor Fouling issues drawing related problems Control
fitting routing clarity problems Issues
Categories of problems Categories of problems
Cause and Effect Diagram
A generic representation
Quality
Equipment
Labour
Effect
Cause
Matrix Diagram: An Example
Hindustan Motors - 1035N Dumper
Better
Worst Same
Less Order
Qualifying
important Winning
POKA YOKE
An 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 Operations
Alternative 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 Operations
Alternative trajectories
Performance attribute
Performance attribute
Performance attribute
for the system
for the system
Set up a measurement
Create a context for
methodology for assessing
continuous
the quantum of
improvement
improvement
Continuous
Closely monitor and Improvement
recognise the benefits Equip the employees
Cycle with tools & techniques
accrued from
improvements for continuous
improvement
Create appropriate
organisational structures
for continuous
improvement
Continuous Improvement
Creating 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
Plan
Collect
Adapt
Analyse
Source: Adopted from http://www.apqc.org/portal/apqc/site/generic?path=/site/benchmarking/free_resources.jhtml
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 Mapping
Some alternatives…
• Customer order “walk through”
• Collaborative brainstorming/charting
• Bottom-up approach – Interviews of staff
in functional departments
• Executive judgement
Business Process Engineering
Some 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 BPR
A three-step methodology
3. Wyvomatic B 165
Process Performance
Drivers
Activities Measures
Process View
Cost
Objects
Organisation for Continuous
Improvement
• Task force for continuous improvement
• Quality Circles
• Small Group Improvement Activity (SGIA)
Projects
• Visual control aids for improvement
Continuous Process Improvement
Using SGIA Projects
Estimated
savings per
month due
to this alone
is about Rs.
40,000.
Continuous Improvement
Organisational Challenges
• Resistance to Change
• Tangibility of Improvements
• Incentive & Rewards Systems
Continuous Improvement
Chapter 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 analysis
Matrix in the form of quantitative factor
analysis
Process decision program chart .
maps every conceivable event from
problem statement to solution and counter
measures.
Arrow diagrams
PERT/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
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