Total Quality Management PDF

TOTAL QUALITY MANAGEMENT Sub Code - 720 Developed by Prof. P.M. Bendre On behalf of Prin. L.N. Welingkar Institute of Management Development & Research Advisory Board Chairman Prof. Dr. V...

TOTAL QUALITY MANAGEMENT Sub Code - 720 Developed by Prof. P.M. Bendre On behalf of Prin. L.N. Welingkar Institute of Management Development & Research Advisory Board Chairman Prof. Dr. V.S. Prasad Former Director (NAAC) Former Vice-Chancellor (Dr. B.R. Ambedkar Open University) Board Members 1. Prof. Dr. Uday Salunkhe 2. Dr. B.P. Sabale 3. Prof. Dr. Vijay Khole 4. Prof. Anuradha Deshmukh Group Director Chancellor, D.Y. Patil University, Former Vice-Chancellor Former Director Welingkar Institute of Navi Mumbai (Mumbai University) (YCMOU) Management Ex Vice-Chancellor (YCMOU) Program Design and Advisory Team Prof. B.N. Chatterjee Mr. Manish Pitke Dean – Marketing Faculty – Travel and Tourism Welingkar Institute of Management, Mumbai Management Consultant Prof. Kanu Doshi Mr. Smitesh Bhosale Dean – Finance Faculty – Media and Advertising Welingkar Institute of Management, Mumbai Founder of EVALUENZ Prof. Dr. V.H. Iyer Prof. Vineel Bhurke Dean – Management Development Programs Faculty – Rural Management Welingkar Institute of Management, Mumbai Welingkar Institute of Management, Mumbai Prof. Venkat lyer Dr. Pravin Kumar Agrawal Director – Intraspect Development Faculty – Healthcare Management Manager Medical – Air India Ltd. Prof. Dr. Pradeep Pendse Mrs. Margaret Vas Dean – IT/Business Design Faculty – Hospitality Welingkar Institute of Management, Mumbai Former Manager-Catering Services – Air India Ltd. Prof. Sandeep Kelkar Course Editor Faculty – IT Mr. Anuj Pandey Welingkar Institute of Management, Mumbai Publisher Management Books Publishing, Mumbai Prof. Dr. Swapna Pradhan Course Coordinators Faculty – Retail Prof. Dr. Rajesh Aparnath Welingkar Institute of Management, Mumbai Head – PGDM (HB) Welingkar Institute of Management, Mumbai Prof. Bijoy B. Bhattacharyya Ms. Kirti Sampat Dean – Banking Manager – PGDM (HB) Welingkar Institute of Management, Mumbai Welingkar Institute of Management, Mumbai Mr. P.M. Bendre Mr. Kishor Tamhankar Faculty – Operations Manager (Diploma Division) Former Quality Chief – Bosch Ltd. Welingkar Institute of Management, Mumbai Mr. Ajay Prabhu Faculty – International Business Corporate Consultant Mr. A.S. Pillai Faculty – Services Excellence Ex Senior V.P. (Sify) COPYRIGHT © by Prin. L.N. Welingkar Institute of Management Development & Research. Printed and Published on behalf of Prin. L.N. Welingkar Institute of Management Development & Research, L.N. Road, Matunga (CR), Mumbai - 400 019. ALL RIGHTS RESERVED. No part of this work covered by the copyright here on may be reproduced or used in any form or by any means – graphic, electronic or mechanical, including photocopying, recording, taping, web distribution or information storage and retrieval systems – without the written permission of the publisher. NOT FOR SALE. FOR PRIVATE CIRCULATION ONLY. 1st Edition, May 2021  CONTENTS Contents Chapter No. Chapter Name Page No. 1 Welcome to the Wonderland of Quality 4-38 2 Wonderland of Quality: Continues 39-65 3 Total Quality Management Philosophy 66-94 4 Process Approach 95-132 5 Problem Solving and Decision Making 133-156 6 Preventive Techniques 157-171 7 Continuous Improvement 172-219 8 Cost of Quality 220-237 9 Reliability 238-251 10 Customer Focus 252-275 11 Supplier Teaming 276-289 12 People: Total Employee Involvement 290-315 13 Measurement Systems Analysis 316-329 14 Taguchi’s Quality Concepts 330-341 15 Quality Management System 342-366 16 Information Technology 367-378 17 Competitive Advantage 379-389 18 Total Productive Maintenance (TPM) 390-402 19 Service Quality 403-427 20 Road Map to Total Quality Management 428-440 21 Innovative Methods for TQM 441-470 22 Quality Awards 471-484 3  WELCOME TO THE WONDERLAND OF QUALITY Chapter 1 Welcome To The Wonderland Of Quality Objectives After completing this chapter, you will be able to understand: Quality work in every aspect of life Doing it right the first time, every time Importance of continual improvement Importance of internal and external customer’s satisfaction, delight and thrill Quality and competitiveness Quality life Thorough understanding of TQM concept made easy to grasp Structure 1.1 Welcome 1.2 Our Life 1.3 Defining Quality 1.4 Evolution of Total Quality Management 1.5 Contributions of the Great Quality Gurus 1.6 Definition of a Defect 1.7 Inspection Criteria: Limit Samples 1.8 Process Approach 1.9 Human Resources Development and Leadership 1.10 Supplier Development 1.11 Continual Improvement 1.12 Concept of Internal Customer 1.13 Quality and Competitiveness 1.14 Quality is Not a Destination: It is a way of LIFE! 1.15 Ultimate Solution: Education and Training 1.16 Activities for the Students 1.17 Summary 1.18 Self Assessment Questions 1.19 Multiple Choice Questions 4  WELCOME TO THE WONDERLAND OF QUALITY 1.1 Welcome I welcome you to the most wonderful subject on the earth: that is, Quality. I assure you that thorough study of this subject will not only improve your competence as an entrepreneur, engineer, doctor or a professional in any discipline, but also will enhance your life tremendously and make your life on earth more meaningful. Every individual must make quality as a matter of continuous practice and improvement. You may be wondering what all difference I am going to make in this book and what different topics I am going to explain to you when there are so many books on this subject already available everywhere. Most of the available books really give you just the theory of TQM whereas in this book we are going to emphasize upon the implementation or application of this theory in our practical life which has been steadily becoming very difficult, full of tension and tedious – day in and day out. We shall find ways and means to make our day-to-day routine more pleasant, by travelling the Quality route. Further, this book will certainly convince you that the only way to take our Nation to fast become the developed country is the Quality way. I had always felt that the Primary and Secondary Education must have Quality as the prime subject in the syllabus. If it happens, the deterioration of moral values will stop and people will become more serious and focused about the goals of the Nation. It is not only the Government, but also participation of the people which is required in making our Nation a developed country. You will agree that as Management students, we must be more practical than being theoreticians. And hence this effort is presented only for you. 5  WELCOME TO THE WONDERLAND OF QUALITY 1.2 Our Life We always feel as consumers that we are indeed big losers, don’t we? I am citing a few examples: 1. Adulteration in food 2. Premature failure of electrical, electronic and automotive components 3. Late starting and late arrival of buses, trains and airplanes 4. Passenger’s luggage misplaced/lost by an airline 5. Poor education level in spite of high expenditure 6. Corruption resulting into premature failure of new constructions/roads 7. Zero traffic discipline 8. Late deliveries by courier services and transporters, transit damages 9. Inconsistent/Good and Bad workmanship 10.Poor service by almost every supplier/vendor/shopkeeper 11.Purchased product found damaged/broken If on the scale of 1-100, level of good quality is considered as 100, I am afraid we might be less than 5, aren’t we? This situation has to be totally improved and as the students of Management, you only might have to do it. 6  WELCOME TO THE WONDERLAND OF QUALITY 1.3 Defining Quality Quality is defined as degree to which a set of inherent characteristics fulfils customer requirements. Requirement means need or expectation that is stated, generally implied or obligatory. The term “quality” can be used with adjectives such as poor, good or excellent. “Inherent” means existing in something, especially as a permanent characteristic. Customer is defined as an organization or a person that receives a product. External Customers: current, prospective and lost customers. Customer satisfaction is defined as customer’s perception of the degree to which the customer’s requirements have been fulfilled. There are many earlier definitions of quality such as Fitness for use, Conformance to specifications, Value for price paid, excellence that is better than a minimum standard etc. All of these definitions also give very good idea what quality must be. However, the above said definition made by ISO 9000:2005 (ref: Chapter No. 2 and 14) gives the total perception of the subject. Now with this definition, you can judge yourself as to where we stand if we compare ourselves as consumers. 7  WELCOME TO THE WONDERLAND OF QUALITY Case Example: One of my friends was planning to buy a sports car. He was making a comparative study of various models. My other friend is an expert in this field having a long time exposure to automobiles. He advised my friend to buy the Fortuner. You will agree that my expert friend was right, because the Fortuner is manufactured conforming to all specifications and is totally fit for use as a sports car in every point of view. It has a competitive price advantage over other models, and is better than a minimum standard. Though the Fortuner fulfilled all the quality requirements, my friend did not buy the Fortuner, instead he bought the Santa Fe. The reasons for this were: 1. The Fortuner was not available in the market immediately. My friend who is a merchant Navy guy wanted to buy the car before going on voyage. 2. He also felt that the running cost of the Fortuner would be higher and the after-sales service of it might not be as good. So, the definition, viz., “Customer’s perception of the degree to which the customer’s requirements have been fulfilled” gives the perfect perspective of the matter. Though quality is an abstract perception, it has a quantitative measure: Q = (P / E) where, Q = quality, P = performance as measured by the manufacturer, and E = expectations of the customer. Better the performance better is the quality which is inversely proportional to the expectations. Quality Objectives are defined as “something sought or aimed for, related to Quality”. Quality Objectives are generally specified for relevant functions and levels in the organization. 8  WELCOME TO THE WONDERLAND OF QUALITY Quality is in-built into the product at every stage from conceiving – specification and design stages to prototyping – testing and manufacturing stages. Reliability Probability and capability of components, equipments, products and systems to perform their required function: 1. For desired period of time without failure 2. In specified environments and 3. With a desired confidence. Effects of Poor Quality 1. Low customer satisfaction 2. Low productivity, sales and profit 3. Low morale of workforce 4. More re-work, material and labor costs 5. High inspection costs 6. Delay in shipping 7. High repair costs 8. Higher inventory costs 9. Greater waste of material Benefits of Quality 1. Higher customer satisfaction 2. Reliable products/services 3. Better efficiency of operations 4. More productivity and profit 5. Better morale of workforce 6. Less wastage costs 7. Less Inspection costs 9  WELCOME TO THE WONDERLAND OF QUALITY 8. Improved process 9. More market share 10. Spread of happiness and prosperity 11. Better quality of life for all 12. Generally, customers are often willing to pay more for or wait for delivery of products of superior quality. Quality Costs 1. Quality cost is the cost of bad quality of product and services that rebounds to the Manufacturer. 2. It adds to other costs in Design, Purchase, Production, Sales, and Service etc. Quality costs in all departments. can be measured, programmed, budgeted etc. 3. External failure costs – Returned goods, Warranty, Service etc. 4. Internal failure Quality costs – Rework of products 5. Appraisal costs – Inspectors and Inspection costs 6. Prevention costs-associated with Design, Sales, Purchase Consistency The process must guarantee consistency in: 1. Delivery and 2. Service. Periodical calibration of instruments Local exhaust to ensure that fumes do not spread on other operations Traceability: by batch numbers. 10  WELCOME TO THE WONDERLAND OF QUALITY 1.4 Evolution of Total Quality Management The evolution of TQM started with Inspection, followed by Quality Control, Quality Assurance and then Total Quality Management. Inspection 1. Identifying non-conformities 2. Salvaging 3. End of pipe approach 4. End justifies means Quality Control 1. Process Performance data 2. Quality Planning 3. Statistical Tools 4. Control Instrumentation Quality Assurance: 1. Quality Manuals 2. Systems Certification 3. Quality Costs 4. Documentation Total Quality Management 1. Customer Focus 2. Human and System Component 3. Continuous Improvement 4. Performance Measurement 11  WELCOME TO THE WONDERLAND OF QUALITY Various Definitions of TQM TQM is the integration of all functions and processes within an organization in order to achieve continuous improvement of the quality of goods and services. The goal is customer satisfaction. The TQM policy has two components: 1. Defect free product/service supplied on time to customers. 2. Advancing the state-of-the-art which is a development process to meet the rising expectations of customers’ requirements. The foundation on which a successful TQM effort rests includes: 1. Customer Focus 2. Total Participation 3. Continual Improvement 1.5 Contributions of the great quality Gurus 1. In 1924, W.A. Shewhart of Bell Telephone Labs developed a statistical chart for the control of product variables – the beginning of SQC and SPC and showed that productivity improves when variation is reduced. 2. In the same decade, H.F. Dodge and H.G. Romig of Bell Telephone Labs developed statistical acceptance sampling instead of 100% inspection. 3. In 1946, the American Society for Quality Control was formed. 12  WELCOME TO THE WONDERLAND OF QUALITY W.A. Shewhart W. Edwards Deming Joseph M. Juran 4. In 1950, W. Edwards Deming, who got inspired from Shewhart, taught SPC and SQC to Japanese engineers and CEOs. PLAN-DO-CHECK-ACT cycle was made popular by him however; he always referred to it as the "Shewhart cycle". He is considered by many to be the father of modern quality control. Later in Deming's career, he modified PDCA to "Plan, Do, Study, Act" (PDSA) because he felt that "check" emphasized inspection over analysis. Today, he is regarded as a national hero in Japan. Japanese Union of Scientists and Engineers (JUSE)'s board of directors established the Deming Prize which continues to exert considerable influence on the disciplines of quality control and quality management. 5. In 1954, Joseph M. Juran taught Japanese managements their responsibility to achieve quality. He focuses on top-down management and technical methods rather than worker pride and satisfaction. 6. In 1960, Dr. K. Ishikawa formalized “quality circles” – the use of small groups to eliminate variation and improve processes. SQC techniques were being applied by Japanese workers. 7. 1970’s US managers were learning from Japan Quality implementation miracles. 8. In the late ‘70’s and early ‘80’s: a. Deming returned from Japan to write “Out of the Crisis”, and began his famous 4-day seminars in the United States. b. Phil Crosby wrote “Quality is Free”. c. In 1980, Deming was featured prominently in an NBC TV documentary titled “If Japan can... Why can't we?” 13  WELCOME TO THE WONDERLAND OF QUALITY About the increasing industrial competition the United States was facing from Japan. As a result of the broadcast, demand for his services increased dramatically, and Deming continued consulting for industry throughout the world until his death at the age of 93. 1. Motorola began Six Sigma a. In 1980s TQM principles and methods became popular (also in auto industry), b. In 1990s, the ISO 9000 model became the worldwide standard for QMS. Walter A. ♦ Contributed to understanding of process variability Shewhart (1924) ♦ Developed concept of statistical control charts ♦ Originator of PDCA cycle W. Edwards ♦ Stressed upon management’s responsibility for quality Deming (1950 ♦ SQC Approach onwards...) ♦ Developed “14 Points” to guide companies in quality ♦ Popularized PDCA cycle Joseph M. Juran ♦ Defined quality as “fitness for use” (1950 onwards...) ♦ Developed concept of cost of quality. Armand V. ♦ Introduced concept of total quality control. Feigenbaum (Mid-1950s) Philip B. Crosby ♦ Coined phrase “quality is free” (1960’s) ♦ Zero defects concept Kaoru Ishikawa ♦ Developed cause-and-effect diagrams (1960s onwards) ♦ Identified concept of “internal customer” ♦ Quality circles Genichi Taguchi ♦ Focused on product design quality (1950s onwards) ♦ Developed Taguchi loss function 14  WELCOME TO THE WONDERLAND OF QUALITY Deming’s 14 Points 1. Create constancy of purpose for improvement 2. Adopt a new philosophy 3. Cease dependence on mass inspection 4. Do not award business on price alone 5. Work continually on the system of production and service 6. Institute modern methods of training 7. Institute modern methods of supervision of workers 8. Drive out fear 9. Break down barriers between departments 10. Eliminate slogans, exhortations, and targets for the workforce 11. Eliminate numerical quotas 12. Remove barriers preventing pride of workmanship 13. Institute a vigorous program of education and retraining 14. Take action to accomplish the transformation 1.6 Definition of a Defect A defect is any variation of a required characteristic of the product (or its parts) or services which is far enough from the target value. It prevents the product from fulfilling the physical and functional requirements of the customer as viewed through the eyes of your customer. A defect is anything that causes the processor or the customer to make adjustments. Above all, a defect is ANYTHING that dissatisfies your customer. 15  WELCOME TO THE WONDERLAND OF QUALITY Case Examples: 1. In Kirloskar Electric Company Bangalore, the Marketing Department sent a witness inspection call to the customer for an induction motor. The customer being extremely busy in his audit requested to postpone the date of inspection, but since the monthly target was to be fulfilled, Marketing Department insisted on him to come on the scheduled date. Finally, the inspector came, only to find that the offered motor was horizontal, and not vertical as per customer’s order. 2. In one more such incident, in Kirloskar Electric Company, Bangalore, the Marketing Department sent a witness inspection call to the customer for an induction motor. When the inspector gave a confirmation ring about his arrival to the Marketing Department, nobody attended the call. Finally the inspector came. However, he was made to wait for one hour. Nobody offered him even a glass of water. After that the customer got a shock when he found that the motor was not yet ready for testing. 3. In MICO Bosch, Nasik, a customer gave a trunk call from Kolkata, which was attended by a junior clerk after so many rings, asked the customer to hold on, went to call the concerned case worker and never came back. After about one hour, when the customer called up again, he was told that the concerned person to whom he wanted to speak was on leave. They say, most of the times the customer is unhappy not because of the bad quality, but because of aforesaid incidents, which are nothing but defects. Customer Satisfaction/Dissatisfaction Feedback 1. Customer feedback has to be continuously sought and monitored – not one-time only! (Pro-active! Complaints are a reactive method of finding out there is a problem). 2. Customer feedback can be relayed to Manufacturer. 3. Performance comparison with competitors can be known. 4. Customers needs can be identified. 5. Relative priorities of quality can be obtained from the horses’ mouth! 6. Areas for improvement can be noted. 16  WELCOME TO THE WONDERLAND OF QUALITY Customer Feedback Methods 1. Comment cards enclosed with warranty card when product is purchased 2. Customer survey and questionnaire 3. Customer visits 4. Customer focus groups 5. Quarterly reports 6. Toll-free phones 7. e-mail, Internet newsgroups, discussion forums 8. Employee feedback Customer Handle with Care! 1. Employers don’t pay wages but it is the customer who pays the wages! 2. So take good care of your customers. 3. Customer-care centers not just profit-centers! 4. The entire organization must in effect revolve around the customer – whether the customer is being well served and if he is really pleased, contented and satisfied with the service you have to offer. Customer Care 1. Keep promises to customers 2. Return customer calls promptly 3. Allot staff to handle customer problems 4. Treat customers with courtesy, respect and professionalism always 5. Evaluate customer satisfaction regularly 6. Search for customer-related improvements continuously 7. Deliver products/services promptly and efficiently 8. Give every customer complete and personal attention. 9. Maintain a neat and clean appearance of self and work-place, at all times 10.Review and implement customer feedback and suggestions into current procedures when needed 11.Training and education to enhance job performance and commitment to customer care 17  WELCOME TO THE WONDERLAND OF QUALITY 12.Treat every customer as we would treat ourselves 1.7 Inspection Criteria: Limit Samples Inspection criteria: Criteria which is used to judge a product whether it is good or bad. This has to be objective, independent of personal choice. For making this judgement objective, limit samples are created. Limit samples, also referred to as border samples, are used as frame of reference. These parts are the ones that can be correlated to the actually produced parts in order to make decisions. Border samples are pre-selected parts, which have the given characteristics very near to the specification limit. These samples are most commonly used if the given characteristic is not, or hardly measurable. Example of a Limit sample for visual inspection: An aesthetic product is being checked by human eye. The customer requirement – based on the specification - allows one visual failure with the maximum size of 0,2 mm. The human eye is incapable to measure, so the supplier uses a limit sample that can be correlated to the checked part. If the visual defect of the actual part is bigger, than the one on the limit sample, the part must be rejected by the technician / operator. Many limit samples are used continuously, with various frequencies. Those often used for visual inspection can wear out earlier. Hence, you need to take care of your limit samples frequently. Revalidate your limit sample with the needed frequency (e.g. daily in case of visual inspection). If it’s possible, prepare your limit samples in the way to keep them in good condition with conservation (supporting materials, glues, resins, etc.). Limit samples must be marked perceptibly to avoid any part mixing with the serial production. If your limit sample is not a usable any more, scrap it immediately. It is to be noted that the limit sample is not equal to the golden / master sample. 18  WELCOME TO THE WONDERLAND OF QUALITY Limit Sample Accept Reject Figure 1.2 19  WELCOME TO THE WONDERLAND OF QUALITY Gas Turbine Blade Inspection Figure 1.3 20  WELCOME TO THE WONDERLAND OF QUALITY The most common edge defects are dents, nicks and tears. An overview of the defect types and their characteristics together with a sample photograph is shown above. It should be noted that the sample images show severe defects. The test dataset also contained blade images with smaller defects that are more difficult to detect. Detecting those defect types is important as they can lead to fatigue cracks resulting in material separation and breakage of the entire blade under centrifugal load, which has the potential to cause severe damage to the engine and aircraft. Different Welding Defects Different Types of Welding Defects Figure 1.4 Among the commonly known welding defects, incomplete penetration and fusion, porosity and slag inclusions are the most common to affect welding strength. 21  WELCOME TO THE WONDERLAND OF QUALITY 1.8 Process Approach ISO 9000:2008 says (Here, supplier means manufacturer): 1. The supplier shall identify and plan the production, installation and servicing processes which directly affect quality and shall ensure that these processes are carried out under controlled conditions. 2. Process has to ensure compliance with all applicable government safety and environmental regulations. 3. Documented process monitoring and operator instructions. 4. Process capability > 1.67 should be achieved. 5. Inspect and test the product as required by the quality plan. Further, Process Flow Chart, Control Plan, Process Capability Summary have to be made for all the critical processes. 1.9 Human Resources Development and Leadership 1. Deming emphasized that no organization can survive without good people, who are improving. 2. In order to satisfy customers, businesses must first satisfy employees. 3. Secret of Toyota Quality is the workforce - everybody that has a hand in production. 4. The human resource is the only one that the competitor cannot copy. HRM activities include: 1. Determining organizations’ human resource needs 2. Assisting in design of work systems 3. Selecting, recruiting, training and developing, counseling, motivating and rewarding employees 4. Acting as a liaison with trade union and government organizations 5. Welfare of employees 22  WELCOME TO THE WONDERLAND OF QUALITY 1.10 Supplier development 1. Suppliers are referred as the co-producers. 2. Purchasing departments develop long-term relationships with few suppliers rather than short-term relationship with many suppliers. 3. Along with other aspects, quality becomes the primary basis for selection of suppliers. 4. Suppliers are ordinarily located near the buying firm’s factory and are responsible for their quality. 1.11 Continual Improvement ISO 9000:2005 defines continual improvement as: “Recurring activity to increase the ability to fulfil requirements”. The aim of continual improvement is to increase the probability of enhancing the satisfaction of customers and other interested parties. Customer’s needs are not static. They change continually. There is no logical end to how and to what extent customers change their expectations and to what competitors do to meet those expectations. A special innovative product feature being considered as value for money today might become too costly tomorrow. For example, the customer who keeps on buying the components from a particular automotive company expects that there must be continual improvement in quality, performance, reliability and service from the manufacturer; otherwise he might be attracted towards other manufacturers who are better. 23  WELCOME TO THE WONDERLAND OF QUALITY Actions for improvement include: Analyzing and evaluating the existing situation to identify areas for improvement Establishing the objectives for improvement Searching for possible solutions to achieve the objectives Evaluating these solutions and making a selection Implementing the selected solution Measuring, verifying, analyzing and evaluating results of the implementation to determine that the objectives have been met Formalizing changes The main focus of all our Quality actions must be on continual improvement. This book will specially give you inputs about this aspect. Elimination of all wastes and workplace improvement are parallel to the idea of continual improvement, which will be discussed in detail in next chapters. Bad Housekeeping: Everything is in a Mess 24  WELCOME TO THE WONDERLAND OF QUALITY Figure 1.5: Good Housekeeping A Place for Everything and Everything in its Place Figure 1.6 25  WELCOME TO THE WONDERLAND OF QUALITY 1.12 Concept of Internal Customer Kaoru Ishikawa was the first quality guru to emphasize the importance of the “internal customer,” the next person in the production process. Whatever is said above about the external customer has to be practiced in case of ALL internal customers also. Quality is not possible if internal customers are not happy. As mentioned earlier, Customer is defined as an organization or a person that receives a product. Every function in an organization – marketing, engineering, purchasing or production has an internal customer – each receives a product or service. Every person in a process is considered as a customer of the preceding operation. Each worker’s goal is to ensure that the quality of his operation meets the expectations of the next worker in the process chain. Every employee throughout the organization is a part of the chain of internal customers and suppliers. Internal Customer/Supplier Relationships Questions asked by people to their internal customers 1. What do you need from me? 2. What do you do with my output? 3. Are there any gaps between what you need and what you get? Good teamwork and inter-departmental harmony is required. Also the leaders’ role in supervising the internal customer-supplier chain is of very big importance. Case example: In MICO Bosch an inspection operator No. 1 was not co-operating with his next inspection operator No. 2. He did not inspect the components properly and was pushing defectives to the next inspection operator. This resulted in delays of the next operator’s work because the poka-yoke system which was there on inspection workplace No. 2 did not accept the defectives. Further, the operator No. 1 was frequently leaving the workplace and was wasting time, which affected the next operator’s efficiency and incentive, being fully dependent on the first operator. As an internal customer, 26  WELCOME TO THE WONDERLAND OF QUALITY operator No. 2 was very must unsatisfied as well as angry. His output quality was affected due to this problem, which was the matter of concern. 1.13 Quality and competitiveness For a manufacturing firm to be competitive, its products and services must be free from deficiencies and also should be acceptable to its customers. For this, a manufacturing firm should excel in: 1. Quality of design 2. Quality capability of production processes 3. Quality of conformance 4. Quality of customer service 5. Organization Quality culture To compete globally, it is necessary to produce goods of world-class quality – which means better goods – better in performance, reliability, durability, ease of use, serviceability, maintainability, availability, aesthetics, choices or options for customers, better image – but at reasonable, competitive prices. So, the focus is on best cost and best quality by doing right the first time, every time. This gives the competitive advantage. For a country to succeed in global marketplace, it must export manufactured goods. For this to happen, a manufacturer must be able to outperform foreign competitors in terms of quality and productivity. 1.14 Quality is not a destination: It is a way of LIFE! The importance of quality can be stated in the following statements: 1. No quality, no sales 2. No sales, no profit 3. No profit, no jobs 4. Quality and image are no accident: they are the result of focused hard work and diligence. 5. Quality is not a destination: it is a way of life. 6. We strive for excellence and accept nothing less. 27  WELCOME TO THE WONDERLAND OF QUALITY Seven Habits of Highly Effective People As per Stephen Covey 1. Be pro-active 2. Begin with the end in mind 3. Put first things first 4. Think win-win 5. Seek first to understand, then to be understood 6. Synergy 7. Sharpen the saw Use of Quality Tools, e.g., Check Lists Our life is becoming full of tensions and worries, most of them being as a result of pending tasks. We have to get habituated to maintain: 1. Things to do 2. Tasks 3. Memos This is because many times our memory fails miserably. After making a list of things to do, you should prioritize them as per urgency, seriousness, growing tendency of the problem. Relist them as per geographical order so that in a single round you can finish all tasks without backtracking and with minimum time. You must finish at least three important tasks in a day. Before going to bed, you must go through the list to see how many tasks could not be completed. This way, your tension will vanish in a week’s time and you will be able to focus on Quality of your work in a better way. 28  WELCOME TO THE WONDERLAND OF QUALITY Figure 1.7 Further, it is necessary to do systematic inspection and maintenance of our equipments, machines, tools, documents etc. by sincerely maintaining: 1. Daily check list 2. Weekly check list 3. Monthly check list Use the 80/20 rule, which states that 80% of your accomplishments come from only 20% of your efforts. So, devote more of your time to the productive activities and reduce time spent on unproductive work. The main idea is to do things on your schedule, rather than the schedules of others. Avoid time wasters such as phone calls and meeting the people, when you have to focus on your tasks. Figure 1.8 29  WELCOME TO THE WONDERLAND OF QUALITY “Make every second count”, by proper Time Management. You will be astonished to know how the quality of your life gets enhanced and quality of your work improves by these simple tools. We must take an oath that: 1. Whatever we do, we will do it RIGHT the first time, every time. 2. We shall strive for quality better than the set standards. 3. In our day to day life, we will identify ALL internal and external customers and satisfy them. Even some of our family members, friends and relatives could be our internal customers. In the company, our workers and employees are our internal customers. The internal and external customers’ delight is the goal of our life: “Customer’s perception of the degree to which the customer’s requirements have been fulfilled” and so we must know what their requirements are and what their perception is. Keeping the word of promise is also part of this. Maintaining good image, character, truthfulness, punctuality, sincerity is also part of this. 1. In business, we shall strive to delight all of our customers by continually improving design quality, process quality and workmanship. And by continually improving delivery fulfillment and selling at competitive prices. 2. We shall follow what Philip Crosby has taught us: “The system for causing quality is prevention”. “The performance standard must be zero defects, not “that’s close enough.” “The measurement of quality is the price of non-conformance. When that goes to zero, then quality is free”. 3. Ethical way of conducting our business will be our policy. 4. We should ask, “If Japan can, why can’t we?” 30  WELCOME TO THE WONDERLAND OF QUALITY 5. It has always been an unbearable thought to me that someone could inspect one of my products and find it inferior in any way. For that reason, I have constantly tried to produce products which withstand the closest scrutiny – products which prove themselves superior in every respect.” — Robert Bosch 'If you want excellence, you must aim at perfection. I know that aiming at perfection has its drawbacks. It makes you go into detail that you can avoid. It takes a lot of energy out of you but that's the only way you finally actually achieve excellence. So in that sense, being finicky is essential. A company, which uses the name Tata, shares a tradition. The symbol 'T' has to be a symbol of quality.' — J.R.D. Tata 31  WELCOME TO THE WONDERLAND OF QUALITY 1.15 Ultimate Solution: Education and Training As is mentioned above, our humble request is that the subject “Quality” should be included as a compulsory subject like science and mathematics in the syllabi of all the standards of Primary and Secondary Education, then in colleges also. Further, all the parents, employees and industrial workers should be fully trained in this field. This is the ultimate solution to all the basic problems of our nation. “The quality of students entering Indian Institutes of Technology (IITs) has deteriorated over the years due to the coaching classes that prepare engineering aspirants. The majority of the students fare poorly at jobs and global institutions of higher education.” — N.R. Narayana Murthy 32  WELCOME TO THE WONDERLAND OF QUALITY 1.16 Activities for the students Activity A 1. Make a list of all the pending “Things to do” and prioritize them on the scale of 1 to 10, for the following aspects: Seriousness Urgency Growth of the concern (i.e., if the thing is not done today, the problem/ concern will increase tomorrow) ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… Activity B 1. Make a list of your internal customers as well as your external customers. Write down in front of each customer’s name the score about the following points on the scale of 1 to 10: What is his perception about your product/service? What is his perception about your behavior/character/truthfulness? Is he happy (1 to 5 marks), delighted (6 to 9 marks) or thrilled (10 marks)? How many customers have you lost in last year? ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… Activity C 1. Write down the activities which you will perform in coming year by “doing it right, first time, every time”. ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… 33  WELCOME TO THE WONDERLAND OF QUALITY Activity D 1. Make a list of time wasters in your life. ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… Activity E 1. Make a list of products or services which you have done till now with your best ability and resulted into best quality. ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… 34  WELCOME TO THE WONDERLAND OF QUALITY 1.17 Summary Quality is not a destination: it is a way of LIFE! Do it right, first time, every time Take care of your external and internal customers Improve your processes continually “The system for causing quality is prevention” 1.18 Self Assessment Questions 1. Explain various definitions of Quality. 2. Explain the concept of internal customer. 3.Why is a customer lost? Explain giving case examples. 4.What is the contribution of Deming and Juran? What inspiration do you get from them? 5. Explain the term “Quality is free” by Philip Crosby. 6. Explain one of the definitions of TQM. 7. What is the importance of limit samples? 35  WELCOME TO THE WONDERLAND OF QUALITY 1.19 Multiple Choice Questions 1. An Organization or a person that receives a product is: (a) Security Inspector (b) Goods Inwards store (c) Manufacturing worker (d) Customer 2. Need or expectation that is stated, generally implied or obligatory is: (a) Purchase order (b) Requirement (c) Dream (d) Ambition 3. Joseph M. Juran defined Quality as: (a) Customer satisfaction (b) Value for money (c) Better than standards (d) Fitness for use 4. “Drive out fear” is written by: (a) Juran (b) Deming (c) Shewhart (d) Feigenbaum 5. Quality circles were formalized by: (a) Deming (b) Shewhart (c) Ishikawa (d) Crosby 6. The foundation on which a successful TQM effort rests includes customer focus, total participation and: (a) Inspection (b) Quality Planning (c) Documentation (d) Continual Improvement 7. ________ are pre-selected parts of which have given characteristics on (or very near) to the specification limit. These samples are most commonly used if the given characteristic is not, or hardly measurable. (a) Trial parts (b) Customer complaint returns (c) Limit samples (d) R&D parts Answers: 1. (d), 2. (b), 3. (d), 4. (b), 5. (c), 6. (d), 7. (c) 36  WELCOME TO THE WONDERLAND OF QUALITY Transition from Chapter 1 to 2 So, my dear students, by reading the Chapter 1, you have made a beginning of your picnic in Wonderland of Quality, haven’t you? I hope that in this first chapter itself, you have already got an idea of what the subject is like, and you have put forward your first step towards your career in Quality life. You have understood the meaning of quality, customer satisfaction, reliability, effects of poor quality, benefits of good quality and cost of quality. You are now got acquainted with our quality gurus also. You also know what is process approach. All this was just the introduction to the subject. In the following chapters, every aspect of TQM is described in more and more details, in order that you get to know everything about TQM. I have taken care that the language is easy to understand, so that you really do not get bored and start getting interested and involved in the subject and start thinking how you will make your business more and more efficient and effective. Let us now move to Chapter 2 which is nothing but extension of Chapter 1 with some more ideas. 37  WELCOME TO THE WONDERLAND OF QUALITY REFERENCE MATERIAL Click on the links below to view additional reference material for this chapter Summary PPT MCQ Video Lecture - Part 1 Video Lecture - Part 2 38  WONDERLAND OF QUALITY: CONTINUES Chapter 2 Wonderland Of Quality: Continues Objectives After completing this chapter, you will be able to understand: Vision and Mission Statements Objectives, Goals and Targets Quality Planning Concept of Effectiveness as Well as Efficiency Structure 2.1 Quality Means Satisfying Customer Expectations 2.2 Efficiency and Effectiveness 2.3 Why Should One Practice Quality Principles? 2.4 Vision and Mission Statements 2.5 Objectives, Goals and Targets Followed by Action Plans 2.6 Quality Planning 2.7 Acceptable Quality Limits AQL: Sampling Inspection 2.8 Activities for the Students 2.9 Summary 2.10 Self Assessment Questions 2.11 Multiple Choice Questions 39  WONDERLAND OF QUALITY: CONTINUES 2.1 Quality Means Satisfying Customer Expectations The quality head of a company was having a tough time dealing with numerous customer complaints pouring in. Past one year had been a disaster for him. The company CEO was very unhappy with him. Actually, there was no effort that was not taken by him to ensure that the goods were inspected before despatch. There was an inspector doing 100% inspection. Then there was sampling inspection by a QA person. Again there was an audit inspection just before despatch. The simple truth was that though the goods were inspected and audited, customer expectations were not met because the expectations were not known to the inspectors. The customer expectations are bound to change over time. The QA people must know what the customer expects that day. There should be constant dialogue with customers both by marketing and quality people. In Bosch, there is a component called “element”. The colour of this component used to be light grey. Due to change of heat treatment process, the colour became dark grey. The customer rejected the consignment considering that the elements were spurious. This happened because of lack of a dialogue with customer, who always expected that the colour of the elements manufactured by Bosch must be light grey. As said in the first chapter section 1.3, “Customer’s perception of the degree to which the customer’s requirements have been fulfilled” gives the perfect perspective of the matter. Though quality is an abstract perception, it has a quantitative measure: Q = (P / E) where, Q = quality, P = performance as measured by the manufacturer, and E = expectations of the customer. We have reiterated this important point here because quality is proportional to performance but is inversely proportional to customer expectations. 40  WONDERLAND OF QUALITY: CONTINUES 2.2 Efficiency and Effectiveness The manufacturer “A” has a very good system of marketing, design, production, quality assurance, packing, delivery etc. He also has Just in time system, and so he never fails in delivery schedules. He takes pride in producing and selling his product, which is having a world-class quality. He also exports the product. The manufacturer “B” also has a similar system. His product also has world-class quality, just in time system; everything is same as the first manufacturer. However, there is a difference. He is very closely associated with his customers, and makes exactly what his customers’ requirements are. His quality, cost and delivery is always made in such a way that his customer is always delighted. He makes changes in his design, processes to suit to the changing needs of his customers. He gives world-class quality to his customers, in time, and at a reasonable price. Efficiency is all about how the manufacturer has performed in his business: More output with less input resulting into more profitability. We can say that the manufacturer “A” is efficient. However, effectiveness is all about how the perception of the customer is. We can say that the manufacturer “B” is effective. The customer is delighted with him and so he is making better business than manufacturer “A”. We must be efficient, no doubt. That means, we must “Do things right, the first time, every time.” However, that is not enough. We must also do right things about our customer. He must be happy and there is no exception to this rule. 41  WONDERLAND OF QUALITY: CONTINUES Case Example: In Lear Manufacturing Company, a customer had come for witness inspection. He was sitting in an excellent meeting room with A.C. He wanted tea without milk and without sugar. The case worker took his order very politely, went back and came after a long time with coffee with milk and sugar. The coffee also had become cold. You can imagine how the customer must have felt. Small things, but important, aren’t they? There are many organizations which are very efficient, but are hardly effective. Hence, they have a long list of lost customers. Quality target is 100% and Not 99.9% because 99.9% quality will mean: At least 160000 wrong prescriptions every year More than 120000 new born babies accidently dropped by doctors each year Unsafe drinking water almost one hour every month Two or three rail accidents every day! There are three levels of quality – implied quality, expected quality and specified quality. It should be our effort to give implied quality to customers – internal as well as external – on a continuous basis. 42  WONDERLAND OF QUALITY: CONTINUES 2.3 Why should one Practice Quality Principles? Question of Remaining in the Business If we do not practice quality principles, it is very difficult to compete with the other manufacturers and survival itself is at threat. The market situation in our country is continuously posing threat to many organizations. This point happens to be a major driver due to which industries are forced to practice quality principles. Conclusion: Quality is a must for survival. Competition Earlier, one was able to produce the goods and services as he wanted and was able to sell them in the market. Many monopolists were selling the goods at exorbitant prices. The consumers had little choice but to buy whatever was available to them. However, in today’s market, when the foreign companies are also selling their goods at lower prices, every manufacturer is facing tough competition. To be in market, one has to have something exclusive in his product. He must know what exactly the customer requirements are, which are not getting fulfilled by the competitors. He must manufacture the products tailor-made for the customer. Conclusion: Quality is a must for competitive advantage. 43  WONDERLAND OF QUALITY: CONTINUES Changing Needs of the Customers The customers’ requirements are continuously undergoing a change. The entrepreneur has to cater for them. The vast knowledge available for the customers from the Internet makes them aware as to what they can demand at lower prices. They also have so many options and alternatives. If the manufacturer does not improve his performance, he would lose all his existing customers, and would not get new orders also, because of loss of reputation. Greater Profitability Practicing Quality Principles does improve the profitability, which is an experience of many entrepreneurs, such as Motorola, Wipro, and Bosch etc. This happens due to reduction in all kinds of wastes, increase in productivity and workers’ morale and efficiency. One would like to implement the Quality Principles in order to increase the profitability. Self-motivation This is also a driver for quality. One always wants to be number one in his area of work and the quality principles will help him accomplish all his goals. 44  WONDERLAND OF QUALITY: CONTINUES 2.4 Vision and Mission Statements Vision Statement This says what an organization should accomplish in a span of next five to ten years. In order to always remain ahead of the competition and to continue to be a world-class manufacturer, the entrepreneur must look into the future; predict what is needed to be done, recognize the challenges of the changing environment, understand the required inputs and resources, and plan for it. Following qualities are necessary with the personnel who make a good vision statement: 1. Quick responsiveness 2. Creative approach 3. Innovativeness 4. Willingness to learn and unlearn 5. Pro-activeness 6. Team spirit 7. Open to the suggestions and ideas 8. Unique thinking 9. Enthusiastic 10. Progressive Total involvement of the employees is a must for making the vision statement because their contribution is necessary in making the vision a reality. Brainstorming is a sure way of involving the employees in making the vision statement. The organizations need a vision statement to provide a direction for making mission statements, department-wise objectives, and for each objective, goals are identified and targets are fixed. 45  WONDERLAND OF QUALITY: CONTINUES A sample Vision Statement is given below: 1. Customer comes first, and his delight is the first priority. 2. Our Company believes in manufacturing world class products which will be tailor-made to satisfy every requirement of our customers including quality, cost, delivery, reliability and safety. 3. Our company believes in continual improvement in our products and services. 4. Aspirations of our employees are carefully monitored. They are the internal customers having same priority as the external customers. We shall thus create a team of committed and dynamic people. 5. By following the above principles, our vision is to become the world leader in our products and services during next 5 to 10 years and create a good corporate image of ethical business. Mission Statements This is the next step after making the Vision Statement. Mission statements are prepared to make the employees to get an idea as to how to accomplish the Vision. These are actually the road maps to achieve the vision. Mission statements should clearly indicate the methods to be followed for fulfilling the vision. A sample Mission Statement is given below: 1. Constant interaction with the customers by direct meetings and feedbacks, by the marketing and engineering teams. 2. Continual improvement in the designs to be in line with the changing needs of the customers. 3. Continual improvement in design and processes to produce world class innovative products. 4. To practice Just in time and six sigma methodologies to ensure quality, cost and delivery targets. 46  WONDERLAND OF QUALITY: CONTINUES 5. Quarterly review of employee performance and their aspirations, and also review of their ongoing problems and actions to solve those problems. 6. Continuous Training for skill and management development. 7. Benchmarking techniques to always remain ahead of others. Quality Policy Top Management should ensure that the quality policy: 1. Is appropriate to the purpose of the organization 2. Includes a commitment to comply with requirements and continually improve the effectiveness of the quality management system 3. Provides a framework for establishing and reviewing quality objectives 4. Is communicated and understood within the organization 5. Is reviewed for continuing suitability 2.5 Objectives, Goals and Targets followed by Action Plans After the Vision and Mission Statements are made, the individual departments will start writing down their well-defined objectives in order to realize the mission statements. For example, the objectives of the engineering department could be as follows: 1. Constant interaction with every customer 2. Design the product with latest know-how and technology in order to satisfy all the customer requirements 3. Incorporate innovative ideas in the design and check the design with the help of design failure mode and effects analysis before finalizing it. 47  WONDERLAND OF QUALITY: CONTINUES The objectives of the purchasing, manufacturing and QA departments could be as follows: 1. Just in time methodology to be implemented everywhere. 2. Processes to be controlled statistically and process capabilities to be improved continually. 3. Customer complaints to be analyzed and continually reduced with a target of zero complaints. 4. Workers’ participation, team work to be continually improved in order to have better productivity and quality. Goals and Targets In order to achieve the objectives, it is necessary for each and every department to fix goals with time bound targets. The goals should be SMART, i.e.: S = Specific M = Measurable A = Achievable R = Realistic T = Time bound For example, the goals of the engineering department should be: 1. Customer requirement of reduction of temperature rise as per IS on an induction motor: a. Revised design to be ready by October 2013 b. Motor to be offered to the customer by 1st week December 2013. 2. Customer complaint of humming noise in the motor: To be settled by improvement in design on his motor: by November 2013 48  WONDERLAND OF QUALITY: CONTINUES 3. New order for vertical motor: Customer Witness inspection to be planned in 1st week September 2013. The targets should be: 1. Temperature rise in medium size motors to be brought down by 10% (Jan. 14). 2. Humming noise in all the small motors to be reduced completely (Nov. 13). 3. All the new orders design to be completed by end of July 2013. Every target should accompany the detailed Action Plan: Table 2.1 Goal and target: _________________________________________ Serial No. Action Action by Due Date Continuous monitoring and feedback is absolutely necessary to follow up the progress of each and every action: 1. In order to achieve the goals and targets 2. In order to accomplish the objectives 3. The Mission 4. The Vision 49  WONDERLAND OF QUALITY: CONTINUES 2.6 Quality Planning Management should take responsibility for the quality planning of the organization. This planning should focus on defining the processes needed to meet the organization Quality objectives and requirements consistent with the strategy of the organization. Inputs for the effective and efficient planning include: 1. Defined organizational objectives 2. Defined needs and expectations of the customers 3. Evaluation of the statutory and regulatory requirements 4. Lessons learned from previous experience 5. Indicated opportunities for improvement 6. Related risk assessment and mitigation data Advanced Product Quality Planning Figure 2.1 50  WONDERLAND OF QUALITY: CONTINUES Product Quality Planning Timing Chart Figure 2.2 The type of product, complexity and customer expectations should be considered in selecting the timing elements that must be planned and charted. All team members should agree with each event, action and timing. A well organized timing chart should list tasks, assignments and events. The Critical Path Method as follows is appropriate for this. In 1950, W. Edwards Deming, who got inspired from Shewhart, taught SPC and SQC to Japanese engineers and CEOs. PLAN-DO-CHECK-ACT cycle was made popular by him. The success of any program depends on meeting customer needs and expectations in a timely manner at a cost that represents value. The Product Quality Planning cycle based on above mentioned PDCA methodology and the chart above require a planning team to concentrate its efforts on defect prevention, which is driven by simultaneous engineering performed by product and manufacturing engineering activities working concurrently. 51  WONDERLAND OF QUALITY: CONTINUES Figure 2.3 Following are the details of various stages of Product Quality Planning Timing Chart Plan and Define Program: Table 2.2 Inputs Outputs Voice of the customer Design goals Business plan/marketing strategy Reliability/quality goals Product/process benchmarking data Preliminary bill of materials Product/process assumptions Preliminary process flow chart Product reliability studies Special characteristics Customer inputs Product assurance plan/management support 52  WONDERLAND OF QUALITY: CONTINUES Product Design and Development: Table 2.3 Inputs Outputs Design goals Design FMEA Reliability/quality goals Design for manufacturability and assembly Preliminary bill of materials Design verification Preliminary process flow chart Design reviews Special characteristics Prototype build-control plan Product assurance plan/management Engineering Drawings and support specifications Process Design and Development: Table 2.4 Inputs Outputs Design FMEA Packaging standards Design for manufacturability and Product/process quality system review assembly Design verification Process flow chart Design reviews Floor plan layout Prototype build-control plan Characteristics matrix Engineering Drawings and Process FMEA specifications Material specifications Pre-launch control plan New equipment, tooling and facilities Process instructions requirements Special characteristics Measurement systems analysis plan Gages/testing equipment requirements Preliminary process capability studies plan 53  WONDERLAND OF QUALITY: CONTINUES Team feasibility commitment Packaging specifications Product and Process Validation: Table 2.5 Inputs Outputs Packaging standards Production trial run Product/process quality system review Measurement systems evaluation Process flow chart Preliminary process capability study Floor plan layout Production part approval Characteristics matrix Production validation testing Process FMEA Packaging evaluation Pre-launch control plan Production control plan Process instructions Quality planning sign off Measurement systems analysis plan Management support Preliminary process capability studies plan Packaging specifications Feedback, Assessment and Corrective Action: Table 2.6 Inputs Outputs Production trial run Reduced variation Measurement systems evaluation Customer satisfaction Preliminary process capability study Delivery and service Production part approval Production validation testing Packaging evaluation Production control plan 54  WONDERLAND OF QUALITY: CONTINUES Quality planning sign off Special Characteristics During the advanced product quality planning process, and particularly during the preparation of FMEAs and control plans, the planning team shall finalize special characteristics. Appropriate process controls shall be established for all special characteristics. Quality Plan/Control Plan Quality plan = Document specifying which procedures (specified way to carry out an activity or a process) and associated resources shall be applied by whom and when to a specific project, product, process or contract. Table 2.7 Control Plan No. Key Contact/Phone No. Date Customer engineering Part No. Core team approval/date Customer quality approval/ Part Name Supplier approval date date Supplier/plant Other approval Other approval Part Proce Mach Chara Chara Chara Speci Produ Evalu Sampl Sampl Contr Reacti Proce ss -ine, cterist cterist cterist al ct/ ation/ e size e ol on ss descri tools ics ics ics chara proce meas Frequ metho plan numb pti-on numb produ proce cte- ss ureme ency d er er ct ss ristics specifi nt ca- techni tion que 55  WONDERLAND OF QUALITY: CONTINUES 2.7 Acceptable Quality Limits Aql: Sampling Inspection How QC sampling relies on acceptable quality levels AQL is based on acceptance sampling, a statistical QC sampling method for determining whether to accept or reject a production lot based on a representative sample size. AQL is basically defined as the lowest or worst quality level, or limit, that is acceptable in an order of goods. This is generally measured in quality defects found, or pieces found with quality defects, in the inspected sample size. And this ratio of defects found per total sample size helps determine whether the order passes or fails inspection. AQL 2.5 means the buyer considers as acceptable quality limit a defect rate of 2.5% of the total order quantity. Two potential problems can result from using the wrong sample size for inspection: 1. Inspecting too few pieces to accurately assess the total order. You risk discovering only after receiving the total shipment at your warehouse that there are more defects than you anticipated based on the inspection result. 2. Inspecting too many pieces than necessary to accurately assess the total order. This can raise your QC costs and delay production or shipping. The most common AQL standard for the consumer goods industry is ANSI- ASQ Z.14. ANSI-ASQ Z.14 was developed by the American National Standards Institute (ANSI) and the American Society for Quality (ASQ). 56  WONDERLAND OF QUALITY: CONTINUES The ANSI-ASQ Z.14 AQL table will help you determine: The appropriate sample size you need to inspect, determined by your lot size The maximum number of defects you will accept in the order, sometimes known as an “accept point”, as determined by your defect tolerance, or AQL Knowing these empowers you to make an informed decision to accept or reject the entire lot based on the results of inspecting a sample. Table 2.8 57  WONDERLAND OF QUALITY: CONTINUES Table 2.9 For example, let’s consider a lot size of 5,000 pieces, represented in the above table within the range 3,201 to 10,000. The three inspection levels each result in a different sample size, denoted by a different letter—“J”, “L” and “M” in this case. Sample size for various letters is as follows: J=80, L=200, M=315 General inspection level G1: G1 inspection level offers the smallest sample sizes of the three general inspection levels. Considered the “budget option”, G1 may be your best option if you’re particularly short on time or money. 58  WONDERLAND OF QUALITY: CONTINUES GI may be adequate in cases where: You have strict budgetary constraints and can’t afford to send an inspector to inspect for longer than one day Products are of low value, such as promotional goods, or pose minimal safety risks Suppliers have a strong quality management system based on ISO 9001 and a long and consistent history of meeting your requirements Using the 5,000-piece lot size above, let’s say you choose the GI sample size of J, or 80 pieces. This sample size then also influences the number of defects you can accept in your order. To determine your accept and reject points, you must first set your acceptable quality levels for each defect type Just as your tolerance for defects can vary by the severity of each defect, “…so your acceptable quality level for each defect should also vary”. Many importers set acceptable quality levels of 4 or lower for “minor” defects for consumer goods. You might similarly choose an AQL of 2.5 for “major” and 0 for “critical” defects, indicating a lower tolerance for these more severe defects. Let’s say you choose an AQL of 2.5 for major defects in our current example. You would then have an accept point of 5 defects and a reject point of 6 defects in the inspected sample of 80 pieces. 59  WONDERLAND OF QUALITY: CONTINUES General inspection level GII Inspection companies sometimes refer to the GII AQL inspection level as a “normal” sample size. GII is the inspection level importers most often choose, as GII achieves wider coverage scope with relatively low cost. GII inspection level is often especially fitting for the first inspection of a lot. Seeing these first results can help you determine if GII is still suitable going forward, or if you should raise or lower your inspection level. Now let’s look at how a GII sample size of L, or 200 pieces, would influence the accept and reject points for your order of 5,000 pieces. The accept and reject points generally increase with the sample size, assuming your acceptable quality levels stay the same. So with an AQL of 2.5, your accept point increases to 10 defects, and your reject point increases to 11 defects. General inspection level GIII The GIII inspection level provides the largest sample size for your lot out of the three AQL inspection levels. Compared to the GI sample size of 80 units for a 5,000-piece lot size, the GIII sample size is nearly four times as large—315 pieces. This general inspection level offers the largest scope and greatest assurance of order status and quality with acceptance sampling. Thus, GIII minimizes your risk of unknowingly accepting a shipment with a higher portion of defective pieces than found during inspection. Returning to your 5,000-piece lot size, a GIII sample size of 315 pieces would lead to an accept point of 14 defects and a reject point of 15 defects. 60  WONDERLAND OF QUALITY: CONTINUES 2.8 Activities for the Students Activity A You are going to start a business of manufacturing of fast moving consumer goods. Initially it will be a Private Limited Company with three of your friends, with your own investment of Rs. 15,00,000 each, in addition to a loan from a bank. You already have a site in Nasik. You also have a person having experience in the field. You also know a person who is expert in finance and commercial matters. 1. Make a vision and mission statement for your business. ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… Activity B 1. Make a process flow chart for manufacture of any vehicle spare part about which you have some knowledge and information. ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………… 61  WONDERLAND OF QUALITY: CONTINUES 2.9 Summary 1. To be efficient as well as effective, we must do right things in a right way, the first time, and every time. 2. It is a mere must to improve quality in education. 3. It is a need of the day to impart education on quality principles to one and all. 4. Every business must make a vision statement, a mission statement, quality policy, department-wise objectives, goals with time bound targets followed by action plans, and a periodical follow-up of the action plans to monitor fulfillment of the vision. 5. One must fully understand the eight quality principles. 6. Understanding the quality planning methodology is the first step towards TQM. 2.10 Self Assessment Questions 1. Explain whether you are efficient or effective or both in preparing your Project given by the College/Institute, and how. 2. Explain the quality in education in the high school/college which you have attended. Rate it on the scale of 1-10. 3. What will be the syllabus which you will make for education on quality in your business organization? 4. Explain SWOT analysis done by you for yourself. 5. Explain AQL. 62  WONDERLAND OF QUALITY: CONTINUES 2.11 Multiple Choice Questions 1. Requirement is defined as ____________ that is stated, generally implied or obligatory. (a) Need or Expectation (b) Wish (c) Order (d) Demand 2. Top Management should ensure that the quality policy is: (a) Distributed and displayed throughout the organization (b) Descriptive and known in the organization (c) Printed and published (d) Communicated and understood within the organization 3. The organization’s goals should be: (a) Clear (b) SMART (c) Objective (d) Achievable 4. In a restaurant, tea is normally prepared by putting 2 spoons of sugar and one teaspoon of tea powder. The customer likes the tea very much. If the restaurant prepares equally good tea with 1.5 spoons of sugar and 0.5 spoon of better quality but cheaper tea powder and customer likes the tea equally well, this improvement is called the restaurant’s: (a) Effectiveness (b) Efficiency (c) Profitability (d) Business tactics 5. A customer has been buying all the required products from LG. Over last ten years, he has purchased many products such as fridge, TV etc. from LG. Every time he buys the product, he finds some innovation in it, and he is thrilled to buy the product. This is ____________ of LG. (a) Efficiency (b) Effectiveness (d) Profitability (d) Policy 63  WONDERLAND OF QUALITY: CONTINUES 6. In a classroom, teacher-student teams are the equivalent of industry’s front-line workers. The product of their successful work together is the development of the student’s capabilities, interests, and character. In one sense, the student is the teacher’s ____________. (a) Property (b) Disciple (d) Customer (d) Supplier Answers: 1. (a), 2. (a), 3. (b), 4. (c), 5. (d), 6. (d) Transition from Chapter 2 to 3 Your picnic in wonderland of quality is now becoming more and more value adding, isn’t it? The idea of education in Quality as a prime subject in schools and colleges is of very high significance. Please think seriously about it. Also the deteriorating level of quality in schools and colleges is really worrying. Youngsters like you can bring about a drastic change in the situation. In future, many of you will become entrepreneurs. The Chapter 2 gives valuable ideas such as vision and missions statements, goals, targets, quality planning etc. for new entrepreneurs to practice. In the Chapter 3, your travel really enters into the TQM methodology, and then onwards, you get totally engrossed in the subject. Let me see whether this journey becomes more beneficial to you or not. You will see that many topics are either repeated or explained differently, the reason for this is that you get more clarification about the topic and your queries in the mind get answered better. Let us now move to Chapter 3. 64  WONDERLAND OF QUALITY: CONTINUES REFERENCE MATERIAL Click on the links below to view additional reference material for this chapter Summary PPT MCQ Video Lecture 65  TOTAL QUALITY MANAGEMENT PHILOSOPHY Chapter 3 Total Quality Management Philosophy Objectives After completing this chapter, you will be able to understand: Meaning and Definitions of TQM Benefits and Principles of TQM Program Structure 3.1 Definitions and Concepts of TQM 3.2 What TQM IS 3.3 Benefits of TQM Program 3.4 Total Quality Management Principles 3.5 Ethics of Quality 3.6 Activities for the Students 3.7 Summary 3.8 Self Assessment Questions 3.9 Multiple Choice Questions 66  TOTAL QUALITY MANAGEMENT PHILOSOPHY 3.1 Definitions and Concepts of TQM 1. Total Quality Management is a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. 2. TQM is the integration of all functions and processes within an organization in order to achieve continuous improvement of the quality of goods and services. The goal is customer satisfaction. 3. Total Quality Management (TQM) are sweeping “culture change” efforts to position a company for greater customer satisfaction, profitability and competitiveness. 4. TQM may be defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer. 5. Total Quality Is… (a) Meeting Our Customer’s Requirements (b) Doing Things Right the First Time (c) Freedom from Failure (Defects) (d) Consistency (Reduction in Variation) (e) Continuous Improvement (f) Quality in Everything We Do 6. The salient features of TQM approach are: (a) Find out what the internal and external customers want. (b) Design a product or service that will meet or exceed what the customers want. (c) Design a production process that facilitates doing right, the first time, every time. (d) Keep track of the result and use these results to improve the system continually. (e) Extend these concepts to suppliers. 67  TOTAL QUALITY MANAGEMENT PHILOSOPHY 7. TQM stresses on three principles: (a) Customer satisfaction (b) Employee involvement (c) Continuous improvements in quality and processes 8. Eight essentials of the TQM focus (a) Customer satisfaction (b) Leadership (c) Quality policy (d) Organizational structure (e) Employee involvement (f) Quality cost (g) Supplier selection and development (h) Recognition and reward 9. Seven important points about TQM: (a) Strive for quality in all the things (b) The customer is the criterion of quality (c) Improve the process or system by which products are produced (d) Quality improvement is continuous, neverending activity (e) Worker involvement is essential (f) Ground decisions and actions in knowledge (g) Encourage team work and cooperation We are people, not rabbits or alligators Silence means non-involvement This is a “CAN DO” Group Uniqueness is an opportunity for creativity 68  TOTAL QUALITY MANAGEMENT PHILOSOPHY We are all learners, responsible for own learning, which is an interactive process Everyone is committed to learn how to implement TQM “Show me” is a healthy attitude Implementing TQM should be a fun Eight Rules of Conduct: 1. Keep an open mind 2. Share responsibility 3. Respect each person and listen to him emphatically 4. Speak what you feel 5. Do not criticize ideas and people 6. Ask questions and participate 7. Utilize time well 8. Check the process from time to time 3.2 What TQM Is The concept of quality control as a distinct discipline emerged in the US in the 1920s. At that time, quality control was intended to simply control or limit the creation of defectives in industrial processes. The earliest idea of Quality Control was to inspect the output of manufacturing process and sort the defective items from the good ones. However, even after 100% sorting out, some defectives were escaping into the good items and reaching the customer. Particularly when the process produced large number of defectives, 100% sorting was found to be of no use in preventing the escaping defectives into the lot of good components. Shewhart (1920s-1940s) recognized the need to separate variation into assignable and unassignable causes. He was founder of the control chart. He was originator of the PDCA cycle. He was perhaps the first to integrate statistics, engineering and economics. 69  TOTAL QUALITY MANAGEMENT PHILOSOPHY Deming (Post world war through 1980s) was well known for helping Japanese companies to apply Shewhart’s Statistical Process Control. His main contribution was his 14 points to quality. Deming’s 14 Points Explained in More Detail Deming offered fourteen key principles to managers for transforming business effectiveness. The points were first presented in his book Out of the Crisis. It is credited with launching the Total Quality Management movement. 1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive, stay in business and to provide jobs. 2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3. Cease dependence on inspection to achieve quality. Eliminate the need for massive inspection by building quality into the product in the first place. 4. End the practice of awarding business on the basis of a price tag. Instead, minimize total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6. Institute training on the job. 7. Institute leadership. The aim of supervision should be to help people and machines and gadgets do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. 8. Drive out fear, so that everyone may work effectively for the company. 9. Break down barriers between departments. People in research, design, sales, and production must work as a team, in order to foresee problems of production and usage that may be encountered with the product or service. 70  TOTAL QUALITY MANAGEMENT PHILOSOPHY 10.Eliminate slogans, exhortations, and targets for the workforce asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the workforce. 11.(a) Eliminate work standards (quotas) on the factory floor. Substitute with leadership. (b) Eliminate management by objective. Eliminate management by numbers and numerical goals. Instead substitute with leadership. 12.(a) Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. (b) Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objectives. 13.Institute a vigorous program of education and self-improvement. 14.Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job. "Massive training is required to instill the courage to break with tradition. Every activity and every job is a part of the process. Seven Deadly Diseases Described by Deming: The "Seven Deadly Diseases" include: 1. Lack of constancy of purpose 2. Emphasis on short-term profits 3. Evaluation by performance, merit rating, or annual review of performance 4. Mobility of management 5. Running a company on visible figures alone 6. Excessive medical costs 71  TOTAL QUALITY MANAGEMENT PHILOSOPHY 7. Excessive costs of warranty, fueled by lawyers who work for contingency fees The Deming Chain Reaction Table 3.1 72  TOTAL QUALITY MANAGEMENT PHILOSOPHY Japanese saw this as a natural approach to preventing waste, maximizing productivity. They listened more attentively when Deming advised them on methods of preventing the manufacture of defectives. Japanese dominated almost every market they chose to enter. Superior quality became a common theme of Japanese market dominance. Much of the Japanese quality superiority occurred as a result of statistical manufacturing methods and other management philosophies, now recognized as Total Quality Management. Deming’s message had fallen on deaf ears in US. While Japan continued its quality revolution in the years following World War II, SPC methods were not widely pursued in US. Later on the US also recognized that management philosophies should be applied to the quality improvement challenge. This blending of additional management philosophies, all targeting quality improvement, became known as Total Quality Concept. Joseph M. Juran (Post World War Through 1980s) He is also known for helping to improve Japanese quality. He directed most of his work at the executive level and field of quality management. When he began his career in the 1920s, the principal focus in quality management was on the quality of the end, or finished, product. The tools used were from the Bell system of acceptance sampling, inspection plans, and control charts. The ideas of Frederick Winslow Taylor dominated. Juran is widely credited for adding the human dimension to quality management. He pushed for the education and training of managers. For Juran, human relations problems were the ones to isolate. Resistance to change—or, in his terms, cultural resistance—was the root cause of quality issues. Juran's vision of quality management extended well outside the walls of the factory to encompass non-manufacturing processes, especially those that might be thought of as service related. 73  TOTAL QUALITY MANAGEMENT PHILOSOPHY For example, in an interview published in 1997 he observed: 1. The key issues facing managers in sales are no different than those faced by managers in other disciplines. 2. Sales managers say they face problems such as "It takes us too long...we need to reduce the error rate." They want to know, "How do customers perceive us?" 3. These issues are no different than those facing managers trying to improve in other fields. The systematic approaches to improvement are identical. 4. There should be no reason our familiar principles of quality and process engineering would not work in the sales process. The Juran Trilogy He developed the Juran Trilogy as follows: 1. Quality Planning 2. Qulaity control 3. Quality im