04_Handout_1(47).pdf

BM2408 TQM TOOLS AND TECHNIQUES IN OPERATIONS MANAGEMENT TQM tools and techniques in operations management play a vital role in enhancing the quality, efficiency, and productivity of busine...

BM2408 TQM TOOLS AND TECHNIQUES IN OPERATIONS MANAGEMENT TQM tools and techniques in operations management play a vital role in enhancing the quality, efficiency, and productivity of business processes. They hold utmost significance in today’s business landscape as organizations must consistently pursue excellence and fulfill customer expectations. The utilization of TQM tools serves the purpose of identifying and eliminating defects, minimizing waste, and steadily enhancing operations. Through the implementation of these methodologies, organizations can elevate customer satisfaction, bolster competitiveness, and attain sustainable growth (Luther, 2024). Failure Mode and Effects Analysis (ASQ, 2023) Failure Mode and Effects Analysis (FMEA) is a systematic method for evaluating and improving the reliability of a product or process by identifying potential failure modes and their effects. It is used to identify and mitigate risks associated with design and processes proactively. FMEA involves identifying failure modes, evaluating the severity of their effects, determining their likelihood of occurrence, and assessing the effectiveness of current controls. This analysis can be performed at various stages of product development, including design, production, and service. FMEA helps to prioritize areas for improvement, reduce the likelihood of failures, and enhance overall product or process reliability. It is widely used across industries such as automotive, healthcare, aerospace, and manufacturing to prevent and mitigate potential failures. Figure 1: Failure Mode and Effects Analysis Source: www.velaction.com 04 Handout 1 *Property of STI Page 1 of 19  BM2408 Using FMEA in Business Operations The bank has conducted a thorough FMEA process on its ATM system. During this analysis, the bank identified that the majority of customer complaints are focused on the crucial function of "dispensing cash." According to their analysis, "machine jams" and "heavy computer network traffic" are identified as the top two highest risks. Upon reviewing customer feedback, the bank was able to identify the severity, occurrence, and detectability of this problem. To determine the most appropriate priorities for addressing these risks, the team relied on their expertise and judgment, combining their experience with the relevant FMEA data (ASQ, 2023). Description Potential Failure Potential Root Cause S O D RPN Action S O D RPN Mode Effects of Failure Customer Does not dispense Dissatisfied Out of Cash 8 5 5 200 Internet- withdraw cash customer low cash cash from alert the ATM Incorrect Machine jams 3 10 240 Internal jam entry to alert demand deposit system Discrepancy Power failure 2 10 160 None in cash during balance transaction Dispense too Bank loses Bills stuck 6 2 7 84 Loading much cash money together procedure riffle ends of a stack Discrepancy Denominations 3 4 72 Two-person in cash in the wrong visual balance tray verification Takes too long to Annoyed Heavy 3 7 10 210 None dispense cash customer computer network traffic Power 2 10 60 None interruption during a transaction Figure 2: Failure Mode and Effects Analysis Source: https://asq.org/quality-resources/fmea Using the collected data, the team calculates a Risk Priority Number (RPN) for each failure mode by multiplying the severity, occurrence, and detectability scores. The higher the RPN, the higher the priority the company assigns to addressing that failure mode. Based on the results, the company develops action plans to reduce or eliminate high-risk failure modes. 04 Handout 1 *Property of STI Page 2 of 19  BM2408 How to use FMEA 1. Define the scope and goals of the FMEA. 2. Identify potential failure modes for the system or process being analyzed. 3. Assess the severity of each failure mode, considering the impact it would have if it occurred. 4. Determine the occurrence of each failure mode, considering factors such as frequency and predictability. 5. Evaluate the detectability of each failure mode, considering its ability to be detected, prevented, or mitigated. 6. Calculate the Risk Priority Number (RPN) for each failure mode by multiplying severity, occurrence, and detectability scores. 7. Develop and implement appropriate actions to mitigate or eliminate high-priority failure modes. 8. Continuously monitor and evaluate the actions taken by computing the severity, occurrence, and detectability scores. Benefits of Using FMEA Anticipates and mitigates potential failures: FMEA helps identify potential failure modes in a process or system and evaluates their potential effects, allowing for proactive measures to be taken to prevent or mitigate these failures. Enhances product or process design: By detecting potential failure modes early in the design stage, FMEA enables improvements to the design to enhance reliability and performance. Improves decision-making: FMEA provides a structured approach for analyzing failures and their effects, which aids in making informed decisions about prioritizing improvements or corrective actions. Statistical Process Control (Sharma, 2024) Statistical Process Control (SPC) is an industry-standard methodology for measuring and controlling quality during the manufacturing process to enable continual improvement. Figure 3: Statistical Process Control (SPC) Source: https://www.researchgate.net/ Statistical-Process-Control-SPC 04 Handout 1 *Property of STI Page 3 of 19  BM2408 The following factors determine the degree of process conformity or non-conformity: Quality of conformance. This refers to a manufacturing state in which the product fully conforms to its intended design and characteristics. Chance variation/Random variation. This refers to a manufacturing state where the product differs in design and characteristics due to the combined natural influences in the production process. For instance, the use of older machines may generally exhibit a higher degree of variability to the output, in comparison to the use of newer machines that may have incorporated design improvements that lessen the variability of the output. Assignable variation/Nonrandom variation. This refers to a manufacturing state where the product differs in design and characteristics due to an identifiable cause that can be easily eliminated. The typical sources of assignable variation include equipment that needs adjustment, defective materials, or human sources such as carelessness, fatigue, and incapacity to perform assigned tasks. Using SPC in Business Operations Intel Technology Philippines Inc. utilizes Statistical Process Control (SPC) as a tool to oversee the production process and guarantee the quality of their electronic components meets and exceeds industry standards. This approach enables them to continually supervise and regulate their manufacturing operations, ensuring that all processes operate within the desired specifications and yield exceptional products of utmost quality. By gathering and analyzing data in real time, statistical process control empowers Intel to swiftly detect any deviations or patterns that might suggest potential defects or inefficiencies in their processes. , they can take proactive measures and promptly make any necessary adjustments, thereby preventing quality concerns and enhancing overall production efficiency. How to use SPC 1. Define the process and identify the critical quality characteristics. 2. Collect data on the critical quality characteristics over a period. 3. Plot the data on a control chart to visualize the process variation. 4. Calculate the upper control limit (UCL) and the lower control limit (LCL). 5. Monitor the process data and plot new data points on the control chart. 6. Analyze the control chart to identify trends, patterns, or points outside the control limits. 7. Take appropriate action if any points are outside the control limits or if there are significant trends or patterns. 8. Continuously collect and monitor data, updating the control chart as new data becomes available. 9. Conduct periodic reviews and analyses of the control chart to assess process stability and capability. 10. Make necessary improvements in the process to ensure consistent quality and reduce process variation. Sample Computation: Consider a manufacturing plant that produces bottles. The quality control team wants to monitor the filling process to ensure consistent results. They collect data on the bottle fill volumes for a week, obtaining the following measurements: 200 mL, 195 mL, 205 mL, 198 mL, 202 mL, 200 mL, and 203 mL. To compute the mean (μ), add the values and divide by the number of data points: (200 + 195 + 205 + 198 + 202 + 200 + 203) / 7 = 200. 04 Handout 1 *Property of STI Page 4 of 19  BM2408 To compute the standard deviation (σ), calculate the average deviation from the mean: Subtract the mean from each data point: (200-200), (195-200), (205-200), (198-200), (202-200), (200- 200), (203-200). Square each deviation: 0, 25, 25, 4, 4, 0, 9. Sum all squared deviations: 0 + 25 + 25 + 4 + 4 + 0 + 9 = 67. Divide the sum by the number of data points minus 1: 67 / (7-1) = 11.16. Take the square root of the result: √11.16 ≈ 3.34. For control limits, assuming a desired level of significance, commonly set at ±3 standard deviations: Upper Control Limit (UCL) = μ + (3 x σ) = 200 + (3 x 3.34) = 200 + 10.02 ≈ 210.02 mL. Lower Control Limit (LCL) = μ - (3 x σ) = 200 - (3 x 3.34) = 200 - 10.02 ≈ 189.98 mL. Therefore, the mean fill volume is 200 mL, the standard deviation is approximately 3.34 mL, the upper control limit is around 210.02 mL, and the lower control limit is roughly 189.98 mL. Benefits of Using SPC Improved quality: SPC helps detect and correct variations in the production process, leading to better- quality products and reduced defects. Cost savings: SPC can help organizations save money and resources by minimizing waste, rework, and defects. Decision-making: SPC provides real-time data for monitoring processes, allowing for informed and timely decisions about process adjustments. Customer satisfaction: With better quality products, SPC can contribute to higher customer satisfaction and loyalty. Continuous improvement: SPC fosters a culture of continuous improvement by identifying areas for enhancement and facilitating data-driven decision-making for process optimization. Six Sigma Methodology (Kumar, 2024) This approach improves production processes to make a company more competitive, profitable, and successful. Its benefits include cost reduction, productivity improvement, market-share growth, and customer retention. Figure 4: Six Sigma Methodology Source: https://trainingheights.com/six-sigma-certification-in-nigeria/ 04 Handout 1 *Property of STI Page 5 of 19  BM2408 How to Use Six Sigma 1. Define: Objectives and goals are determined in this phase, with a focus on comprehending customer requirements, identifying the problem or improvement opportunity, and defining project scope and limitations. 2. Measure: This phase entails the collection of data and measurement of the current performance of the process. This involves pinpointing key process metrics, gathering pertinent data, and analyzing the data to glean insights into process performance. 3. Analyze: The data collected is thoroughly analyzed for the purpose of identifying the root causes of defects, errors, or variations. A range of statistical and analytical tools are deployed to ascertain the elements that contribute to process inefficiencies. 4. Improve: Based on the analysis conducted in the previous phase, potential solutions have been developed and implemented to address the root causes of the identified problems. This phase emphasizes data-driven improvements to the process and the testing of their effectiveness. 5. Control: This last phase is designed to ensure the stability of the process and the sustainability of the improvements. This is achieved through the establishment of control mechanisms and standard operating procedures, which monitor and maintain the improved process performance. Using Six Sigma in Business Operations Bank of the Philippine Islands (BPI) applied Six Sigma to their processes and operations to minimize defects and improve customer satisfaction. BPI utilized Six Sigma's DMAIC (Define, Measure, Analyze, Improve, Control) approach to identify areas for improvement, gather data, analyze root causes of problems, implement solutions, and maintain the improvements. This helped the company reduce errors, enhance operational efficiency, and deliver better quality services. As a result, BPI experienced cost savings, increased productivity, and higher customer retention, thus solidifying its position in the competitive banking industry. Benefits of Using Six Sigma Risk Reduction: Six Sigma helps in identifying and mitigating potential risks in processes, thereby reducing the likelihood of errors, accidents, and failures. This leads to increased operational reliability and minimized business risks. Competitive Advantage: Implementing Six Sigma differentiates organizations from their competitors by ensuring consistent quality and high customer satisfaction. It helps organizations stand out in the market and gain a competitive edge. Employee Engagement: Six Sigma initiatives involve training employees in problem-solving techniques and statistical tools. This not only improves their skills but also increases their engagement and motivation by involving them in process improvement efforts. Data-Driven Decision Making: Six Sigma relies on data-driven analysis and tools like statistical process control (SPC) and hypothesis testing. This promotes informed decision-making based on actual data and facts, reducing subjective decision-making biases. Customer Satisfaction: Six Sigma emphasizes understanding customer requirements and aligning processes accordingly. By prioritizing customer needs, organizations can deliver better products and services, resulting in an enhanced customer experience and increased loyalty. 04 Handout 1 *Property of STI Page 6 of 19  BM2408 Lean Management Principles (Verma, 2023) This approach focuses on maximizing customer value while minimizing waste. A lean operation is the process of developing a better product or service with a minimum number of resources. Lean focuses on reducing and, ideally, eliminating the following types of waste: Overproduction waste. It refers to the excessive manufacturing of a product or delivery of a service. In a manufacturing setting, this might mean producing 100 parts when only 50 are needed. In a service setting, it might mean pumping 20 gallons of gas for a customer who wanted only 15. Inventory waste. It refers to the excessive inventory stored in a warehouse. In a manufacturing setting, this might mean having more parts stack up at an assembly station than can be used for a given production run. In a service setting, this could mean a bookstore carrying more copies of a given book than it is likely to sell. Motion waste. It refers to the unnecessary movement into the production process or in the delivery of services. In a manufacturing setting, this might mean programming too many motions into a machine. In a service setting, it might mean having to move around the office several times to accomplish a single task. Defects waste. It refers to the rejected work or rework as the result of production or processing errors. In a manufacturing setting, an example of a defect would be a faulty part that does not meet customer specifications. In a service setting, it might mean having to rewrite an insurance policy because of calculation errors in writing the original policy. Waiting waste. It refers to the idle time of people, machines, or processes caused by unavailable resources. In a manufacturing setting, it might involve an expensive machine and its operator sitting idly because the parts they are to work on have not been delivered. In a service setting, the classic example is the airliner idling on the taxiway, waiting for clearance to take off. Underutilization waste. It refers to the underuse capabilities of technology or underutilized talents, skills, and creativity of people. In a manufacturing setting, it might involve failing to include the people who operate processes in brainstorming sessions aimed at improving the performance of those processes. In a service setting, it might mean failing to use a sophisticated word processing system with a visual display monitor. Figure 5: Lean Management Principles Source: https://www.planettogether.com/five-principles-of-lean-manufacturing 04 Handout 1 *Property of STI Page 7 of 19  BM2408 How to Use LMP 1. Define Value. This can be achieved through methods such as conducting surveys, interviews, and other research to uncover what customers find valuable, the optimal delivery approach for products or services, and identifying an appropriate price point. 2. Map the Value Stream. Assess the workflow and activities of the company to determine their value. By eliminating any unnecessary waste and minimizing the necessary waste, businesses can enhance their capacity to fulfill customers' demands and reduce their expenses simultaneously consistently. 3. Create Flow. This can be achieved through the implementation of various strategies, including the establishment of cross-functional departments, balancing workloads, breaking down steps, and training employees to be multi-skilled, among others. 4. Establish Pull System. The primary objective is to manufacture products precisely when they are required, in the desired quantity, and delivered promptly, commonly known as 'just in time' delivery. This methodology enhances resource capacity optimization and assists organizations in meeting customers' demands while simultaneously minimizing waste. 5. Pursue Perfection. This step is important for integrating continuous process improvement and lean thinking into the organization's culture. It plays a big role in driving the business towards perfection and constant improvement. Using LMP in Business Operation Ayala Land Incorporated is an example of a Philippine company that uses lean management principles. The company applies lean management in its construction processes to improve efficiency and reduce waste. Ayala Land uses lean construction methods, such as Just-in-Time (JIT) delivery of materials, which ensures materials are delivered to the construction site only when needed, minimizing storage and inventory costs. They also implement Value Stream Mapping (VSM) to identify and eliminate non-value-added activities, improving workflow and reducing lead times. This approach helps Ayala Land minimize project delays and cost overruns. Benefits of Using LMP Sustainability: Lean management focuses on reducing waste and conserving resources. This aligns with sustainable practices, such as reducing energy consumption, minimizing environmental impact, and promoting a responsible approach to business operations. Flexibility and Adaptability: Lean management promotes a flexible and adaptable work environment. Through practices like just-in-time inventory management and cross-functional teams, organizations can respond efficiently to changes in customer needs and market demands. Improved Efficiency: Lean management eliminates waste and focuses on streamlining processes. By reducing unnecessary steps, time, and resources, it increases overall efficiency and productivity. Cost Reduction: By eliminating waste, lean management helps reduce costs associated with unnecessary inventory, overproduction, and over-processing. This leads to better financial performance for the organization. 04 Handout 1 *Property of STI Page 8 of 19  BM2408 Pareto Analysis (Krajewski, 2024) Pareto analysis is a technique used to prioritize and focus on the most important factors. It is based on the Pareto principle, which states that 80% of the effects come from 20% of the causes. The analysis involves identifying the most significant factors that contribute to a particular outcome or problem. It helps in determining where efforts should be concentrated to achieve the greatest impact. It was proposed by Vilfredo Pareto, a nineteenth-century Italian scientist whose statistical work focused on inequalities of data. The Pareto Principle states that eighty percent of activity is caused by twenty percent of the factors. It is also known as the “80–20 rule.” The principle suggests that managers must concentrate on twenty percent of the factors to eliminate eighty percent of the organizational problems. Using the Pareto Principle in Business Operation The manager of a neighborhood restaurant is concerned about the low number of customers patronizing his eatery. Complaints have been rising, so he would like to find out the issues to address and present the findings in a way his employees can understand. The manager surveyed his customers over several weeks and collected the following data: Customer Complaints Frequency Impolite server 12 Slow service 42 Cold dinner 5 Cramped tables 20 Atmosphere 10 Figure 6: Frequency of customer complaints Source: Operations Management: Process and Supply Chains, 14th Edition, p. 91 04 Handout 1 *Property of STI Page 9 of 19  BM2408 50 120% 100% Percent of Total 40 80% 30 Frequency 60% 20 40% 10 20% 0 0% Slow Cramped Service Tables Impolite Atmosphere Cold server Dinner Customer Complaints Frequency Percent of Total Figure 7: Customer complaints Source: Operations Management: Process and Supply Chains, 14th Edition, p. 92 Figure 6 presents the data in a way that shows which complaints are more prevalent. To solve for the percentage of prevalent complaints, add and get the average of the two (2) most dominant complaints and multiply it by 100%. Based on the given data, the two (2) most dominant complaint accounts for slow service and cramped tables with data frequencies of 42 and 20, respectively. = (42 + 20)/ 89 × 100% = 69.7% It was clear to the manager which complaints if rectified, would cover most of the process failure problems in the restaurant. First, slow service will be addressed by training the existing staff, adding another server, and improving the food preparation process. Removing some decorative furniture from the dining area and spacing the tables better will solve the problem of cramped tables. The Pareto Chart shows that these two (2) problems, if rectified, will account for almost 70% of the complaints. Benefits of Using Pareto Analysis Risk management: Pareto analysis can be used to identify the most significant risks or hazards that may impact business operations, allowing businesses to address them and minimize potential disruptions proactively. Cost reduction: By addressing the main causes of problems or waste, Pareto analysis helps reduce costs associated with inefficiencies, errors, or unnecessary activities. Identifying the vital few: It helps to identify and focus on the most critical problems or factors that have the highest impact on overall performance. Prioritizing actions: Prioritization is crucial. Pareto analysis provides a framework for making informed decisions about which issues to address first, enabling businesses to take effective actions and achieve quick wins. 04 Handout 1 *Property of STI Page 10 of 19  BM2408 Root Cause Analysis (Krajewski, 2024) Root Cause Analysis relates a key performance problem to its potential causes. It is used to identify and isolate the causes of a problem. Because of its structure, it is sometimes called the “fishbone diagram.” It was developed by Kaoru Ishikawa, a Japanese quality expert, so sometimes the diagram is also called the “Ishikawa Diagram.” Using Root Cause Analysis in Business Operation A process improvement team is working to improve the production output at the Johnson Manufacturing Plant’s Header Cell, which manufactures a key component: headers used in commercial air conditioners. A header is part of a commercial air conditioner's circulatory system, moving coolant between various components, such as the evaporator coil and the condenser coil. Currently, the header production cell is scheduled separately from the main work in the plant. Often, individual headers are not sequenced according to their counterparts in the final assembly line in a timely manner, so the product can sit in a queue waiting for a header. Steps within the cell are followed by the transport of the finished header to the air conditioner assembly area for installation into an air conditioner unit. The six (6) processing steps include the following: 1. Cutting copper pipes to the appropriate length. 2. Punching vent and stubbing holes into the copper log. 3. Welding a steel supply valve onto the top of the copper log. 4. Brazing end caps and venting plugs to the copper log. 5. Brazing stub tubes into each stub hole in the copper log. 6. Adding plastic end caps to protect the newly created header. To analyze all the possible causes of the problem, the team constructed a root cause analysis shown in Figure 7 below. The main problem, Inadequate Header Production, is the diagram’s head. The team brainstormed possible causes and collectively identified several major categories: Management, manpower, method, measurement, machine, and materials, or the six (6) M’s. Several suspected causes were identified for each major category. Figure 8: Fishbone Diagram of Johnson Manufacturing Plant’s Header Source: Operations Management: Process and Supply Chains, 14th Edition, p. 102 04 Handout 1 *Property of STI Page 11 of 19  BM2408 The improvement team noted several immediate issues that were slowing down the production of headers. These issues included operators batching individual jobs (method branch) into groups to save walking time, which was further exasperated by the availability of raw materials stocked on the shop floor (materials branch) and the lack of specific job requirements (management branch). Furthermore, there were many instances of individual tasks not being done correctly and thus having to be redone, such as the 90% rework rate at weld (method branch). The next step in this process improvement was to eliminate the raw material on the floor, improve quality at the welding machine, and move each header individually using a header- specific cart. Benefits of Using Root Cause Analysis Prevention of recurring problems: By addressing the root causes, organizations can implement effective preventive measures to avoid recurring problems in the future. This helps save time, resources, and efforts that would have otherwise been spent dealing with repetitive issues. Increased efficiency and productivity: By addressing the root causes of problems, organizations can streamline their processes, remove bottlenecks, and improve overall efficiency. This results in increased productivity and optimized resource utilization. Facilitates learning and knowledge sharing: Root cause analysis involves analyzing data and gathering information from various sources. This fosters a culture of learning and knowledge sharing within teams and organizations, where insights gained from root cause analysis can be shared and utilized for future problem-solving. Kaizen Events (Meissner, 2024) “Kaizen” is the name given by the Japanese to the concept of continual incremental improvement. “Kai” means “change,” and “zen” means “good.” The underlying value system of Kaizen can be summarized as continual improvement of all things, at all levels, all the time. Each member of the organization plays an important role in the implementation of Kaizen as follows: Role of executive management. Executive managers are responsible for establishing Kaizen as the organization's corporate strategy and for establishing systems, procedures, and structures that promote it. Role of middle managers. Middle managers are responsible for implementing the Kaizen policies established by executive management and ensuring that employees receive the training necessary to understand and implement Kaizen. Role of supervisors. Supervisors are responsible for applying the Kaizen approach in their functional roles by developing plans, improving communication, maintaining morale, providing coaching for teamwork activities, and soliciting Kaizen suggestions from employees. Role of employees. Employees are responsible for participating in Kaizen by taking part in teamwork activities, engaging in continual self-improvement activities, and enhancing job skills through education and training. 04 Handout 1 *Property of STI Page 12 of 19  BM2408 Figure 9: The Six-Step Cycle of Kaizen Source: https://kanbanzone.com/resources/lean/kaizen/ How to Use Kaizen 1. Identify problems: Start by identifying specific areas or processes within your organization that can be improved. This could include anything from reducing waste or improving productivity. 2. Analyze current processes: Once you have identified an area for improvement, analyze the current state of the process. This involves gathering data, observing the process, and understanding the root causes of any issues. 3. Create Solutions: Based on the analysis, develop a detailed plan for improvement. This plan should outline the specific actions needed to address the identified issues. 4. Test the Solutions: Implement the proposed improvements to put the plan into action. This may involve assigning responsibilities, providing necessary resources, and communicating the changes to the relevant stakeholders. 5. Measure and Analyze Result: Once the improvements have been implemented, review the results to determine if the desired outcome has been achieved. This involves collecting data and evaluating the impact of the changes. 6. Standardize the Solution: Finally, establish standard procedures and practices based on the successful changes made. This ensures that the improvements become part of the regular operations and encourages ongoing improvement efforts. Using Kaizen Events in Business Operations Toyota Motor Philippines Corporation (TMP) adopts Kaizen events to enhance their production processes and boost efficiency continuously. Regular Kaizen events are conducted throughout various sectors of their operations, including assembly lines, logistics, and supply chains. By fostering cross-functional collaboration, TMP employees collectively identify areas with potential for improvement, analyze current processes, and devise solutions to eliminate waste and heighten productivity. Swift implementation of small-scale changes, often within a week, allows for rapid testing of these enhancements. Through the utilization of Kaizen events, TMP strives to consistently achieve successive improvements over time, ultimately resulting in the delivery of superior quality products, reduced lead times, and lowered costs. 04 Handout 1 *Property of STI Page 13 of 19  BM2408 Benefits of Kaizen: Reduced Lead Time: It aims to reduce lead time through the streamlining of processes and elimination of non-value-adding activities, which improves responsiveness to customer needs. Culture of Excellence: It fosters a culture of excellence and a mindset of always seeking better ways of doing things, leading to sustained improvement and innovation. Cost Savings: By focusing on efficiency and waste reduction, Kaizen leads to significant cost savings in production and operations Total Productive Maintenance (Besterfield, 2024) Total Productive Maintenance (TPM) is a proactive approach to maintenance that aims to maximize equipment productivity and efficiency. It involves empowering operators to take responsibility for their equipment's maintenance. TPM focuses on preventing breakdowns and improving overall equipment effectiveness (OEE). The key elements of TPM include autonomous maintenance, planned maintenance, quality maintenance, and focused improvement. TPM aims to create a culture of ownership and continuous improvement within an organization. By implementing TPM, companies can reduce downtime, improve equipment reliability, and optimize their overall production process. How to Use TPM 1. Set clear goals: Define the objectives of TPM, such as maximizing equipment uptime and reducing maintenance costs. 2. Create a TPM team: Form a cross-functional team consisting of operators, maintenance personnel, and management representatives. 3. Implement autonomous maintenance: Train operators to conduct routine maintenance tasks like cleaning, inspection, and lubrication. This helps identify potential issues early on and empowers operators to take care of their equipment. 4. Conduct planned maintenance: Develop a preventive maintenance program based on equipment- specific requirements and manufacturer recommendations. Schedule regular inspections, repairs, and replacements. 5. Initiate early equipment management: Create a system to monitor equipment condition and performance using tools like vibration analysis, infrared thermography, or oil analysis. Implement predictive maintenance techniques to detect and address problems before they cause failures. 6. Train and educate employees: Provide comprehensive training on TPM methodologies, focusing on improving operational and maintenance skills. Raise awareness about the importance of TPM and foster a culture of continuous improvement. 7. Implement quality maintenance: Incorporate quality management principles into TPM to ensure that maintenance processes align with customer requirements and product quality standards. 8. Focus on continuous improvement: Establish regular review meetings to discuss maintenance issues, feedback, and improvement opportunities. Use tools like root cause analysis and Kaizen events to identify and eliminate sources of waste, downtime, and defects. 04 Handout 1 *Property of STI Page 14 of 19  BM2408 9. Practice total employee involvement: Encourage all employees to participate in TPM activities and share their ideas for improvement. Foster a sense of ownership and responsibility for equipment maintenance. 10. Monitor and measure progress: Regularly track Key Performance Indicators (KPIs), such as equipment uptime, maintenance costs, and employee involvement. Use the data to identify areas for improvement and adjust TPM activities accordingly. Using TPM in Business Operations One company that uses Total Productive Maintenance (TPM) is San Miguel Corporation, a diversified conglomerate that operates in the food and beverage, packaging, power, fuel and oil, and infrastructure industries. San Miguel Corporation implemented TPM across its manufacturing facilities to optimize equipment efficiency, reduce breakdowns, and improve overall productivity. They have integrated TPM into their operations by focusing on proactive and preventive maintenance, involving cross-functional teams in equipment management, and promoting a culture of continuous improvement. The implementation of TPM has helped San Miguel Corporation reduce equipment downtime, minimize production losses, and enhance the overall equipment effectiveness, leading to improved operational efficiency and cost savings. Benefits of Using TPM Better Asset Utilization: By minimizing equipment breakdowns and losses, TPM helps in maximizing the utilization of production assets. Greater Predictability: TPM can lead to more predictable and consistent equipment performance, allowing for better production planning and scheduling. Improved Safety: A well-implemented TPM program can address safety issues and promote a safer working environment by identifying and resolving potential hazards. Enhanced Overall Equipment Effectiveness (OEE): TPM strives to boost OEE by targeting availability, performance, and quality losses, thereby increasing overall productivity. Design of Experiments (Jacobs, 2024) Design of Experiments (DOE) is a systematic approach used to determine the relationship between different factors and their impact on a process or outcomes. By identifying significant factors and their interactions, DOE helps optimize processes and improve the quality of products or services. DOE involves planning and conducting experiments, analyzing the data, and drawing conclusions to make informed decisions. It allows for efficient experimentation by systematically varying the factors instead of testing all possible combinations. The results obtained from DOE can be used to predict the impact of factors on the process or outcomes. It is a powerful tool for process improvement and decision-making in various industries. 04 Handout 1 *Property of STI Page 15 of 19  BM2408 Figure 10: Design of Experiments Source: https://www.isixsigma.com/design-of-experiments-doe/design-experiments How to Use DOE 1. Identify the problem or question you want to investigate. 2. Determine the factors that may influence the outcome of the experiment. 3. Define the levels or settings for each factor. 4. Select the appropriate DOE design, such as full factorial, fractional factorial, or response surface. 5. Randomize the order or sequence of experiments. 6. Conduct the experiments according to the selected design. 7. Collect and record the data. 8. Analyze the data using statistical methods, such as analysis of variance (ANOVA) or regression analysis. 9. Identify significant factors and their effects on the outcome. 10. Conclude and make recommendations based on the results of the experiment. Using DOE in Business Operation Coca-Cola utilizes experiment design to optimize its products' formulation and production processes. By conducting experiments that examine various ingredient combinations, process parameters, and packaging designs, the company can pinpoint the most cost-effective and efficient methods for creating superior products. This approach not only reduces production costs but also enhances product quality and minimizes production time. As a result, customer satisfaction is heightened, and the company's competitive edge in the market is strengthened. Benefits of Using DOE Faster problem-solving: DOE facilitates the identification of significant factors and their interactions, accelerating the problem-solving process. Predictive capability: Based on the experimental results, DOE enables the development of predictive models for process or product behavior, aiding in future decision-making. Efficient troubleshooting: DOE can expedite troubleshooting efforts by systematically identifying the root causes of issues and guiding corrective actions. Improved insight: DOE provides a systematic approach to understanding the impact of multiple factors on a process or product, leading to deeper insights and better decision-making. 04 Handout 1 *Property of STI Page 16 of 19  BM2408 Quality Function Deployment (Shafer, 2024) Quality Function Deployment (QFD) is a structured approach to product development that aims to ensure customer needs and expectations are met. It involves translating customer requirements into specific design elements and production processes. QFD integrates the customer's voice into all stages of product development to improve quality and customer satisfaction. The process typically involves cross-functional teams collaborating to prioritize customer needs and implement them into the product design and production. Figure 11: Quality Function Deployment Source: https://www.sciencedirect.com/topics/engineering/quality-function-deployment QFD helps companies understand and prioritize customer requirements by using methods such as house of quality, prioritization matrices, and decision matrices. It facilitates the creation of a product that meets or exceeds customer expectations while also improving internal processes and quality. QFD has been widely used in industries such as manufacturing, automotive, and consumer goods to enhance customer focus and product quality. How to Use QFD 1. Identify customer needs and expectations. 2. Identify product features that correspond to customer needs. 3. Prioritize customer needs and product features. 4. Develop a relationship matrix to link customer needs with product features. 5. Evaluate technical requirements for each product feature. 6. Develop a house of quality to translate customer needs into specific technical requirements. 7. Design products or services based on the house of quality. 8. Continuously update and refine the QFD process based on feedback and new information. 04 Handout 1 *Property of STI Page 17 of 19  BM2408 Using QFD in Business Operation Shangri-La incorporates Quality Function Deployment (QFD) in its hotel operations by aligning customer requirements with different aspects of the hotel experience, such as room amenities, dining options, and customer service. The company uses QFD to prioritize customer needs and preferences and then translates them into specific design and service requirements for each hotel location. This approach helps the company to enhance customer satisfaction, improve operational efficiency, and maintain a competitive edge in the hospitality industry. Benefits of Using QFD Reduction in design and production time: By integrating cross-functional teams and utilizing QFD methodologies, organizations can streamline their design and production processes, reducing time- to-market for new products. Cost savings: QFD helps in identifying unnecessary features or functions that do not add value to the customer, allowing organizations to eliminate them and reduce production costs. Increased competitiveness: By continuously improving product design and effectively meeting customer needs, organizations can gain a competitive advantage in the market. Efficient resource allocation: QFD facilitates effective resource allocation by ensuring that resources are directed toward meeting customer requirements and expectations. 5S Methodology (Besterfield, 2024) The 5S methodology is a system for organizing and maintaining a clean and efficient work environment. It helps reduce waste, improve productivity, and enhance safety. It involves removing unnecessary items, logically arranging necessary items, ensuring cleanliness and hygiene, establishing standard procedures, and maintaining the system on an ongoing basis. The goal of the 5S methodology is to create a visual workplace that promotes efficiency, effectiveness, and employee satisfaction. Five-S. It represents Japanese words that describe the steps of a workplace organization process as follows: Seiri (Sort). It refers to the practice of distinguishing necessary things and eliminating unnecessary things in the workplace. Seiton (Straighten, Set). It refers to the practice of creating an orderly storage so items can be located efficiently. Seiso (Shine, Sweep). It refers to the practice of maintaining a clean workplace so problems like leaks, spills, or furniture damage can be more easily identified. Seiketsu (Standardize). It refers to the practice of setting up standards for a clean workplace. Shitsuke (Sustain). It refers to the practice of supporting behaviors and habits that maintain organizational standards for the long-term success of the company. Using 5S Methodology in Business Operation Jollibee Foods Corporation has strategically integrated the 5S methodology into its operations to enhance efficiency and productivity. First, the company embraces the "Sort" principle, streamlining work areas and eliminating unnecessary items to optimize performance. Second, it applies the "Set in Order" principle, arranging tools and materials logically to reduce waste and improve workflow. Third, Jollibee prioritizes the 04 Handout 1 *Property of STI Page 18 of 19  BM2408 "Shine" principle, ensuring a clean and safe work environment and creating a positive atmosphere. Then, it focuses on the "Standardize" principle, establishing standard operating procedures to maintain consistency and quality. Lastly, the company emphasizes the "Sustain" principle, fostering a culture of continuous improvement. Benefits of Using 5S Methodology Reduction in design and production time: By integrating cross-functional teams and utilizing QFD methodologies, organizations can streamline their design and production processes, reducing time- to-market for new products. Space utilization: The methodology helps in optimizing the use of available space, leading to better storage and resource utilization. Standardization: 5S promotes setting standards for workplace organization and cleanliness, leading to a consistent and reliable work environment. Cost reduction: The 5S methodology can contribute to cost savings by reducing waste, improving efficiency, and reducing defects. Improved morale: A clean and organized workplace can boost employee morale and satisfaction. References ASQ (2023). Failure and Effects Analysis (FMEA). https://asq.org/quality-resources/fmea Besterfield, D. (2024) Total Quality Management. Pearson Davis, S. (2024). Total Quality Management: An Integrated Approach. Butterworth-Heinemann Publications Jacobs, R. (2024). Operations and Supply Chain Management. McGraw-Hill Education Kumar, P. (2024). What is Six Sigma: Everything You Need to Know About it. https://www.simplilearn.com/what-is-six-sigma-a- complete-overview-article Krajewski, L. (2024). Operations Management: Process and Supply Chains, 14th Edition. Pearson Luther, D. (2024). Operations Management: Processes & Best Practices. https://www.netsuite.com/portal/resource/articles/erp/operations-management.shtml Meissner, M. (2024). Critical Factor That Determines the Success of Kaizen Event. https://www.villanovau.com/articles/six- sigma/kaizen-event-steps/ Sharma, D. (2024). What is Statistical Process Control (And Its Advantage). https://www.indeed.com/career-advice/career- development/statistical-process-control Shafer, M. (2024). Operations Management for MBAs. Wiley Publications Verma, E. (2023). The Five Principles of Lean. https://www.simplilearn.com/5-lean-principles-article Walkme (2023). What is Total Quality Management (TQM)? https://www.walkme.com/glossary/tqm/ 04 Handout 1 *Property of STI Page 19 of 19