Tqm Slides

1

Total Quality Management&

Six Sigma

…..30 Contact Hrs. for Class of 2009

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Total Quality Management……concepts & understanding

“TQM is a philosophy that represents a set of guiding principles that lays the foundation of a continuously improving and customer driven organization”

IT IS

– Encompassing and mobilizing entire organization to satisfy the customer

– Improving each individual and groups within the organization

– Integrating the philosophy and practices in day to day approach to work

– Influencing all product, services, systems, process & technology

– Long term and continuous and is sensitive to the social responsibilities of the enterprise

– Supporting ‘High Performance Culture through teamwork, trust & leadership

IT IS NOT

– A program, that has a beginning & an end. It is a continuous journey.

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Prelude……To introduction to TQM

Philosophy of integrating market driven focus elements for continuous improvement in all work processes of the enterprise becomes necessary due to:

• Customer driven market revolution

• Fierce global competition

• Unpredictable market, changing expectations & moving targets

• Need to develop a customer focused culture

– Integrate market driven culture

– Focus on quality, cost, productivity

– Customer loyalty

– Change Management

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Focus Elements of a Market Driven Enterprise

• Commitment to customer satisfaction

• Human Resource Development

• Total Quality Culture

• Error Prevention Philosophy

• Total Quality Solutions

• Design & Product Quality

• Quality Services

• Quality of Management & Services

• People Development

• Productivity, efficiency and effectiveness

• Process & Technologies for continuous improvement

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History…

• Craftsmen… Early days, generations learning, own inspector.

• Early 20th Century…Unskilled repetitive, start of interchangeability.

• Ford Story…. Standardization, concepts for quality, Mass Mfg.

• Post War….. American Society for Quality 1944, Safety, Public interest ‘producer beware’

• Dr. Joseph Juran & Dr. Edward Demming story Pioneering work in Total Quality, but in Japan Demming returns to US (1980-1993)

• Product Quality to Performance Excellence‘Quality of Management’ as important as ‘Management of Quality’

• American Society for Quality identifies future challengesPartnering, Learning system, Adaptability and speed of changeEnvironmental Sustainability, Knowledge Focus, GlobalizationCustomization & Differentiation, Shifting Demographics

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TQM

All Employees involvedEmpowermentTeamworkQuality Strategy

Quality Assurance

Quality Systems ISOQuality PlanningQuality PolicyQuality ControlsProblem Solving

Journey to TQM….

Quality Control

Quality StandardsStatistical ControlsProcess PerformanceTreat Quality Problems

Inspection

Error DetectionRectificationUnhappy Customer

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Criteria• Leadership

• Strategic Planning

• Customer & Market Focus

• Information & Analysis

• Human Resources Development & Planning

• Process Management

• Business Results

Weightage

12%

8%

8%

8%

10%

10%

44%

Award Criteria … Ref: Malcolm Baldrige

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Leadership …..TQM relevance• Definition

– Traditional – Leadership for Quality … Assortment of behaviors

vision, hope, stimulation, mission, transformation dreams to reality, stewardship, Integration, courage, communication, consensual, conviction, empowering, deploying, motivating, motivating and tenacity.

• ‘Executive Leadership’-not the only one– Changed Business Scenario & New Economy demanding Unit, Team,

Project and Transformational Leadership‘No more the one or few men show’

• Strategic Plan Integration– Quality is the key element to strategic planning for ‘ Quality

management’ and ‘Performance Excellence’ under the current business environment

– Identification of such competitive advantages that is driven by customer and market.

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Leadership …..TQM relevance• Effective Leadership

Five Core Skills– vision, empowerment, intuition, self-understanding & value congruence

• Leadership Practices– Customer Focus, Strategic vision, Quality value– Creating sustainable leadership, environment, empowerment, innovate– Setting high expectations, demonstrate substantial personal commitment

and involvement, missionary zeal and constancy of purpose– Integrating quality values in daily values, extensive communication– Integrate public responsibility and community support in business

practices• TQ Leadership Contrasts….. Details• Leadership & Public Responsibilities

– Public Health, safety & environment– Compliance– Corporate Citizenship, Community education, welfare, conservation– Industry Obligation to Community

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TQ Leadership Contrasts

Traditional/Modernists

• Plan Projects– Make plans– Organize resource– Preach M.B.O

• Push Products– Lip service to quality– Sell to customer– Perform R&D

• Control People– Control through systems– Reward conformance punish

deviation– Maintain status QUO

TQ Leaders

• Practice– Envision the future– Optimize the resource– Participative management

• Produce– Exemplary quality– Service the customer– Innovate

• Motivate people– Development, talent & system– Reward effort, skill

development and empower– Continuous improvement

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Criteria• Leadership

• Strategic Planning

• Customer & Market Focus

• Information & Analysis

• Human Resources Development & Planning

• Process Management

• Business Results

Weightage

12%

8%

8%

8%

10%

10%

44%

Award Criteria … Ref: Malcolm Baldrige

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Understanding of Criteria1. Leadership

– Leadership System.. How the senior leaders guide the company in setting directions and in developing and sustaining an effective leadership system.

– Company Responsibility & Citizenship… How the company addresses the its responsibility to the public and how it practices good citizenship.

2. Strategic Planning

– Strategy Development Process.. How the company sets strategic directions to better define and strengthen its competitive position and how the development process leads to action plan for deploying and aligning key plan and performance requirements.

– Company Strategy.. How the performance requirements and measures align with the human resource plan and how the plans project the co’s future as compared to the competitors and key benchmarks.

3. Customer & Market Focus

– Customer & Market Knowledge.. How the company determines the long term requirements and preference of target and potential customers and market and anticipate needs to develop business opportunities .

– Customer Relationship & Satisfaction Enhancement..How the company determines and enhances the satisfaction of customers to strengthen relationships to improve current offerings and to support customer and market related planning.

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4. Information & Analysis– Selection & Use of Information & Data…How the co. selects, manages and uses the

information and data needed to support key company process and improve the co’s performance.

– Selection & use of comparative information & data.. How the company selects, manages and uses comparative information data to improve co’s competitive position.

– Analysis & Review of Company’s Performance..How the co. analyses and reviews overall performance to assess the progress relative to plans to identify key areas of improvement.

5. Human Resources Development & Management– Work Systems.. What is the company’s work & job design and its compensation and

recognition approaches to enable and encourage all employees to contribute effectively to achieve the co’s performance and learning objective.

– Employee Education Training & Development.. How the co’s training and education addresses its plan and needs including building knowledge & capabilities & contribute to improved employees’ performance and development.

– Employee Well-Being & Satisfaction..How the company maintains its work environment and work climate to support the well-being, satisfaction and motivation of all its employees

Understanding of Criteria

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6. Process Management

– Management of Product & Service Processes..How the significantly modified and customized products and services are designed. How the product/services delivery systems are designed, implemented and improved.

– Management of Support Process.. How the co’s key support processes are designed, managed and continuously improved.

– Management of Supplier and Partnering..How the co’s supplier and partnering processes, performance and relationships are managed and improved.

7. Business Results

– Customer Satisfaction Results..How the co. performance on Customer Satisfaction

– Financial & Market Results….Co’s key financial & marketplace performance

– Human Resource Results…Co’s Human Resource results including employee well-being, satisfaction, development and work system performance

– Supplier & Partner Results…Co’s supplier and partner results

– Company-Specific Results…How the company’s key operational performance and results significantly contribute to key company goals- customer satisfaction, operational effectiveness and financial/market place and performance.

Understanding of Criteria

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Strategic Planning“The process of envisioning organization’s future and

developing necessary procedures and operations to shape and achieve that future”

Concept• Plan that integrates an organization’s major goals• Policies and actions sequences in alignment and supporting the

goals• Marshalling and allocating organization’s resources into an unique

and viable posture• Based on one’s relative strengths and competencies and

anticipated changes in the environment• Counter measures and actions anticipating contingent moves by

intelligent opponents

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Leading Practices

• Top management, employees & even customers actively participate in the planning process

• Systematic planning process for strategy development and deployment including measurement, feedback and review.

• Gathering and analysis of variety of data external & internal factors

• Alignment of short-term action plans with long term strategic objectives.

Strategic Planning …Influence of TQ culture

Vision

Mission

Guiding Principles

Strategies ObjectivesActionPlans

Environmental Scan

Strategy Development

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“Converting the strategies into small doable goals and then ultimately deployed to the right teams & people in form of SMART objectives”

• Hoshin Kanri or Hoshin Planning

• Policy Deployment

• Management by Planning

‘Team based deployment is most suited to TQ environment

Strategic Deployment …TQ way

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Strategic Planning– Customer & market driven quality ‘integrated into bloodstream’

– Integrated into the product, operations and service processes

– Operational Excellence to deliver on above

Deployment– Deployment to the right people with ‘smart’ objectives

– Organization’s ability to translate strategic objective into action plans

Caliberations …What the auditor will look for

Customer DrivenQuality

Operational Excellence

TQM way to implement strategy

TQ aspects include•Empowerment•Diffused Leadership•Institutionalized Learning•Innovation and Experimentation

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Customer & Market Integration• Customer Satisfaction

– Understanding

– Business driver

• Satisfaction & Loyalty– Attitude & Behaviour

– Lifetime Value

– Business Possiblities

– New acquisition vis-à-vis retention

• Total Benefit Package– No Longer only product or price

– Opportunities with what can be offered as a package

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• Expected Quality… of Product, Services & Delivery

• Actual Quality… of Execution, Information, Communication

• Perceived Quality…PQ= AQ – EQ

Resultant Delight or Disgust

Case of un-kept promise

• Some leading practices– Define key customer groups, markets, competitors, potential customers & segment them

– Understand short term & long term needs & expectations, employ process for listening

– Build relationship with customer through commitments & promote trust & confidence, easy accessibility to people & information, effective service standards, train customer contact employees, effective follow up on all transactions

– Effective complaint management & resolution systems exceeding expectations

– Measure customer satisfaction compare with competition & use info to improve

Creating a Satisfied Customer

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• Identification & Segmentation of Customers– Juran’s Vital Few & Useful Many Concept

– Segmentation based on

– Geography, Demographic factors, Usage pattern, Volumes Expected levels of service

– Net Present Value

• Understanding Customer NeedsProduct Service

Performance Reliability

Feature Assurance

Conformance Tangibles

Durability Empathy

Serviceability Responsiveness

Aesthetics

– Understanding of the above under the three classes of;

Dissatisfiers – Satisfiers – Exciters/ Delighters

• Gathering Customer InformationComment cards, Formal surveys, Focus groups, Direct Customer contact, Field Intelligence,

Internet monitoring, multi-brand distribution, retail & service partners, Complaint analysis

• Information Analysis & Usage for Continuous ImprovementImportance, Impact & performance gap analysis

Identification of opportunities

Decide measurements

Deploy


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“Building of Customer Loyalty by developing Trust”

Communication

Interaction

Relationships

• Moments of Truth– Direct Contact …. Phone, letter, product & personnel

– Problems arising out of ‘un-kept promises’

– Airlines examples (Scandinavian, South-West)* Opportunities during the entire process (ticketing to baggage delivery)

‘Dignity of Customer’

• Five aspects of CRM– Accessibility & commitments

– Selecting & developing customer contact employees

– Relevant customer contact requirements

– Effective Complaint Management

– Strategic Partnerships and Alliances

Customer Relationship MarketingCustomer & Market Integration


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• Designing Satisfaction Surveys– Determination of purpose

– Who is the customer

– Who conducts the survey

– Choice of survey instrument…..written, phone, recording

– Type of questions asked….. LIKERT scale

* Analysis & usage of Feedback

– Performance/importance/ Impact Matrix

Customer Relationship MarketingCustomer & Market Integration


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Module Covers

Duration

Project

Product Processes

Support Processes

Service Process

Supplier & Partnership Processes

Managing the Change

3 Contact Classes

At the end of Module

TQM… Process Management

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New Economy Online shopping becoming commonFrequent Customer Dissatisfaction

reported“it takes more than just a web site and brand communication”

Q – Was necessary attention to customer requirements and relevance to process paid? – Did the product designers have all the information & data

about the customer & environment?

Examples Delhi Road traffic design & management (not so good?)Delhi Metro ( can we say good so far?)

Demming– “Most quality problems have been due to processes and seldom have they been due to men – as normally thought”


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Some leading practices:

– Translation of customers requirements into product & service design early enough in the process taking into account all linkages between product design requirement, conversion processes, supplier capabilities & legal and environmental considerations.

– Ensuring that quality is built into the product and services and use proper technologies, qualitative tools and approaches during the developmental process.

– Product development process manages cross functional communication, reduce time, smooth and uninterrupted introduction of product and process.

– Define and Document important product, delivery & support processes and manage them as an important business process

– Define performance requirement for suppliers, partners and relationships

– Control quality and operational performance, identify significant variations, analyze root- causes, apply corrections and verify results.

– Continuously improve process

– Innovate for breakthrough performance improvements through benchmarking and re-engineering.


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Benchmarked Process• Idea generation• Preliminary Concept Development• Product/Process Development• Full-Scale production• Market introduction• Market evaluation

Design Approach Considerations– Performance– Cost– Manufacturability/ Serviceability– Facility, suppliers & partners capability & preparedness– Safety & environment

Streamlining Design process– Concurrent engineering/simultaneous engineering– Reduced Cycle-time– Cross Functional involvement

TQM… Process ManagementProduct Design Process

CONCEPTUALIZATION

CONVERSION

EXECUTION

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TQM…Process Management ….Support Processes

Basic Understanding of significant ones;– Human Resources Processes

– Information Technology Processes

– Finance & Accounts

Exercise: How the above processes get influenced by TQM culture

– Customer Orientation

– Strategic Fit

– Cross Functional Alignment

– Data Analysis

– Measurement and Controls

– Continuous Improvement

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Decentralization & Strategic Outsourcing– Adding new dimension to the significance– Competency development, Talent retention & cost of ownership– Flexibility & Speed to market

Supplier Involvement– Product Development– From Design to Delivery– Service & Spare parts– Bench marking on Technology, Materials, Practices & Designs

Guiding Principles– Realization of the strategic importance of suppliers– Developing win-win relationship with suppliers– Establishing trust through transparency leading to mutual benefits

Exercise: On customer orientation of suppliers

TQM…Process Management ….Supplier & Partnership Processes

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Juran’s Trend in Supplier Relationships

Element Traditional/Adversarial TQM- Teamwork Focus

• No. of suppliers Multiple/Many Few/Often Single

• Duration of suppliers Annual Contracts 3yrs. or more

• Quality Criteria Conformance to Total Alignment

Specifications Fit for use

• Emphasis on Surveys Procedures, Data & Process Capability

systems

• Quality Planning Separate Joint, Certification

• Pattern of Partnership Arms Length Mutual Visits

Secrecy Disclosures & Transparency

Mutual Supervision Mutual Assistance

TQM…Process Management ….Supplier Partnerships

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Service Product Design:– Exercise on application of TQM requirement checks

– On how it can influence the Delivery Process

– Typical Customer requirement to be converted in product & delivery

How Service Processes are ‘unique’– Measurements are not always possible

– Dealing with softer side of life

– There is no standard customer

Deliver of Front-end contacts getting influenced by:– Too many things which are beyond his control or influence

– Physical Facility

– Professional Judgment

– Personal Behaviors

TQM…Process Management ….Service Processes

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• Cross Functionalism of TQM• New culture demanding on ‘Organizational Change’• Type of Changes;

DevelopmentalTransitionalTransformational

• Dissatisfaction with the STATUS QUOFrog Example

‘the frog can’t realize the transition from comfort to danger’

• Dissatisfaction with the NEW SITUATION– Cross functional attention (apply the product development lense)– Live to change in customer & market expectations– Quality, cost, productivity & customer delivery focus

TQM… ….Managing Change

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New Model of Managing– Vision communication

Clear, concise & easily understandable

Memorable

Exciting & inspiring

Challenging

Excellence centered

Stable but flexible

Implementable & Tangible

– Specify Key Success Factors (KSF)

– Implementation Plan


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TEN COMMANDMENTS OF CHANGE• Analyze the organization & its need for change

• Create a shared vision and common direction

• Separate from the past

• Create a sense of urgency

• Support a strong leader role

• Line up political sponsorship

• Graft an implementation plan

• Develop enabling structures

• Communicate, involve people & be honest

• Reinforce & institutionalize the change


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Alignment with the Strategy‘The competition can copy everything, but for the edge that your people

can create. It is only them who can make 2+2 more than Four’

• Satisfaction, loyalty and commitment of customer possible only through satisfied, loyal & committed employees

• Only Loyal employees can create Loyal customers

Change of Paradigm• Human Resource Management from Personnel Admin & Management

• From watch dog to strategic leadership through

developing, coaching, training, teamwork, motivation & recognition

Traditional versus Total Quality Human Resource Paradigm (table)

TQM…

….Human Resource Development & Management

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Traditional versus Total Quality Human Resource Paradigm

(table)

(PLEASE SEE THE WORD DOCUMENT ATTACHED)

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How do the Leading Company’s do it;• Integrate human resources plans with strategic objectives and action

plans to fully address the needs and development of entire workforce• Design work and jobs to promote organizational learning, innovation and

flexibility for ever changing business needs. • Develop effective performance management plans, compensation, reward

and recognition approaches to support high performance and motivate employees.

• Promote cooperation and collaboration through teamwork• Empower individuals and teams to make decisions that impact quality and

customer satisfaction• Make extensive investment in training, education and development• Maintain work environment conducive to well-being & growth of all

employees• Monitor the extent and effectiveness of human resources practices &

measure employee satisfaction as a means to continuous improvement.

TQM…Human Resource Development & Management(Linking HR Plans to Business Strategy)

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TQM…Human Resource Development & Management(Linking HR Plans to Business Strategy)

Corporate operating principles to provide full opportunity to employees to reach their full potential by developing a highperformance culture to support its vision, mission & goals

Human Resource impactingBusiness Strategy

Attract, develop, challenge & retain a diverse workforce to have skills in the organization to build business

Involve & empower employees to improve processes & participation in decisions that impact business

Recognize & reward performance that contribute to the business strategy and goals

Continuously improve those elements of the work environmentThat enhance employees well-being, satisfaction and productivity

Roadmap

Staffing & Development

Recognition & Reward

Continuous Improvement

Involved Employee

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High Performance Work Systems…Work approaches used to systematically pursue ever-higher levels of

overall organizational and human performance…

Characterized ByFlexibility, innovation, knowledge & skill sharing, alignment

with organization directions, customer focus and rapid response to ever changing business needs and market requirements.

Requires– Extensive employee involvement – Empowerment– Training & Education– Teamwork– Communication– Compensation & Recognition– Attention to Employee well-being

TQM…Human Resource Management

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Job & Work Design– Work design refer to how employee are organized in formal &

informal units such as departments & teams– Job design refers to responsibilities and tasks assigned to

individuals…Both are vital to organizational effectiveness & employee satisfaction

Need Must Be Understood (Refer Table)– Critical Psychological states– Core job characteristics– Moderating Variables– Outcomes

Concept of Job Enrichment– Enlargement/ Enrichment


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Work Design Model

Critical Psychological States

OutcomeCore Job

Characteristics

Moderators1. Knowledge & skill2. Growth Need Strength3. Context Satisfaction

Skill VarietyTask Identity

Task Significance

Experienced Meaningfulness of the

work

Autonomy

Feedback fromjob

ExperiencedResponsibility of outcome

Knowledge of the outcome/results

High internal workMotivation

High ‘growth’ jobSatisfaction

High general jobSatisfaction

High work effectiveness

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Employee Involvement– Levels of involvement (refer table)– Suggestion Scheme– Resistance to EI

Empowerment– Sincere belief and trust in people– Leaders and managers relinquish some authority– New responsibilities of managers– Building of confidence

Training & Education– TQ demands heavy investment in Training & Education– Generally includes quality awareness, leadership, project

management, communication, teamwork, problem solving, interpretation & analysis of data, meeting customers requirements, process analysis and simplification, waste reduction, cycle time reduction, error- proofing

– Measure Effectiveness of Training


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List of Employee Involvement

LEVEL ACTION PRIMARY OUTCOME

Information Sharing Managers decide and inform employees Conformance

Dialogue Managers get input and then decide Acceptance

Special Problem Solving

Managers assign one time problems to selected employees

Contribution

Intra Group Problem Solving

Intact groups meet weekly to solve local problems Commitment

Inter Group Problem Solving

Cross functional teams meet to solve mutual problems Cooperation

Focused Problem Solving

Intact groups deepen daily involvement in a specific issue

Concentration

Limited Self Direction

Teams at selected sites function full time with minimum supervision

Accountability

Total Self Direction Executives facilitates self management in an all team company

Ownership

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Compensation ….salary & wages– Production incentive

– Department incentive

– Non-production incentive

– Indirect incentive

Recognition & Reward– Individual & team awards

– Involving everyone

– Measurable objectives- Quality, Cost, Productivity, Delivery

– Publicize Extensively

– Make it a fun


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Teamwork– Quality circles– Problem solving teams– Management teams– Work teams …..self managed teams– Project teams– Virtual teams …. ‘Boundary Less’

Success Factors– Team goal clarity – Improvement plan– Clarity of role/definition– Clarity of communication– Decision procedures– Clear ground rules– Information access


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Behavioral Influence– Horizontal job enlargement– Vertical job enlargement/enrichment– Job Rotation

Contemporary Trends– Job flexibility– Responsibility & empowerment– Training & development– Teamwork

Compensation – Hourly rates/ daily rates/ monthly rates– Piece rates- generally detrimental to quality– Incentives– Profit sharing

Work Measurements.. Time and motion study

TQM…HR Management Development…The Changing Nature with TQM

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Measurements and Continuous Improvement

Performance Measurement Traditionally many companies have almost entirely depended upon the financial sand

operational efficiencies and productivity. Unfortunately many of these are inaccurate and lack focus on quality and hence drive wrong behaviors

Balance score Card Concept “Translates strategy into measures that uniquely communicate the version to the

organization and ensure behaviors suited and aligned to desired improvement”

Ø Financial Measures• Shareholders returns, Profitability, revenue growth, ROI, EVA

Ø Internal Measures• Quality levels, Productivity, Cycle time, Costs, etc.

Ø Customers perspective• Service levels, Customers Satisfaction, repeat Business etc

Ø Innovation & Learning Perspective• Employee Sat, market innovation, intellectual Capital, skills development

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Measurements & Continuous Improvement ( contd.)

Two Segments of measure• Leading Measures

– Projections of what is likely to happen and the measures driving the behaviors and improvements

• Lagging measures– Results of what has already happened and would provide opportunities for analysis

and correction

Performance excellence ModelEncourages grouping of performance measure into following five sets

1. Customer

2. Financial and Market3. Human resources4. Supplier & partnership performance5. Organizational Effectiveness

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Measurements of quality (Products & Processes)

Cost of Quality model

Traditional Model– Conformance costs

• Prevention cost• Appraisal

– Non Conformance• Internal• External failures

Challenges– Quality costs do not appear in the accounting ledger– There is a considerable time delay between costs and results– Accounting rules do not put quality on the credit side– Numerous estimates to be made– There are considerable hidden costs– Behavior of cost elements during implementation of TQM

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Limitations of Cost of Quality Model

– Does not resolve quality problem– Communication of COQ does not simulate cost reduction– Report does not specify action– Do not capture all costs– COQ is of little use for evaluating quality programme– Some important costs are eliminated and not reflected– Delays between cost and effect– Subjected at times to judgments and estimates– Tendency to be short term

Concept of ‘Return to quality’ (ROQ) model– Examples of training & Development– Introduction of prevention for Market Returns

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Measurements & Continuous Improvement

Market Driven Quality Model Three Major Components

– Setting of Initiatives– A system of quality measurement– Process Reviews

Target;Central objective is around defect elimination (SIX- SIGMA)Key

Quality Measures in a Benchmarked Co• Customer Related – Percent Shipping, Warehouse Errors, Return Cycle Time• Product Quality Measures – PPM defects (internal/external), Life test results• Process Quality Measures – Cycle Time, Rework at various stages, Final Yield• Supplier Performance Measures – PPM defective, Purity Level, Test Results• Organizational Effectiveness Measures – Cost of Conformance, Cost of non-conformance &

COQ

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Business Performance Measures & Indicators

Business Performance

Perceived ValueOverall satisfaction ComplaintsGains & Losses of CustomerCustomer awards & satisfaction

Return of equityReturn of InvestmentOperating profit

Earnings per share

Market share% new product sales

AbsenteeismTurn overTraining effectivenessGrievancesSuggestion RatesEmployee Satisfaction

Customer

Human Resource

Financial & Market

Financial

Market

Supplier & PartnerQuality & DeliveryPrice & cost saving

Organizational Effectives

Defects & errorsProductivityCycle timeRegulatory & legal complianceNew product introductionsCommunity ServiceSafety Environment

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Closing of Gaps…. Between final output & the expectations and needs of the customers.• Addressed through either continuous improvement, breakthroughs, or a

combination of both• Application of the two, not only relevant to quality improvements but also

to general management• Concept of “ foolproofing” or POKAYOKE.

Types of data– Numeric or quantitative– Categorical or qualitative.

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TQM… Continuous Improvement ….Basic Tools

• Flow Charts

• Cause & Effect Diagrams

Fish bone diagrams or Ishikawa Diagrams

• Numeric Data Summarization

• Measures of location

Mean & Median

• Measures of Spread

Standard Deviation, Variance, Range& Percentiles

• Graphic relationship between two variables

Scatter Diagrams

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54 not available

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Tabular & Graphic Summarization of data

• Tabular:1.Frequency distribution

2.Proportions

3.Absolute Frequencies

4.Relative frequencies

5.Cumulative Distributions

(The above are used for both qualitative as well as quantitative)

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• Graphic: 1. Qualitative

1. Tally sheets2. Location plots3. Bar charts4. Paired bar charts5. Pie charts6. Pareto diagrams

2. Quantitative1. Tally sheets2. Histograms3. Stem & leaf4. Run charts

•

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Continuous Improvement ……Basic Tools

Seven Steps to Continuous Improvement (PDCA or Shewhart Cycle)

• Select a problem and describe it clearly

• Study the present system PLAN

• Identify the possible causes

• Plan and implement a solution DO

• Evaluate Effects CHECK

• Standardize the effective solution ACT

• Reflect on process and develop future plans.

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STATISTICAL PROCESS CONTROL (SPC)

Methodology1. Prepare - Choose the variable or attribute to be

measured - Determine the basis, size and frequency of sampling

- Set up the control chart

2. Data Collection

3. Determination of trial control limits

4. Analysis and Interpretation

5. use as a problem solving

6. Use the chart for process capability analysis

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• X – R Charts• __• X = Xi• -------- ; i=1 to k• k• __• __ __• X = Xi• -------- ; i=1 to k• k• __• R=Range; R= Ri• -------- ; i=1 to k• k

• Normal Distribution Curve• NDC with different Mean and identical NDC with identical Mean and different

standard deviation standard deviation•

Sample

0

10

20

30

40

50

Population

0

10

2030

40

50

60

0 2 4 6 8 10

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• Difference between Run- Charts and Control Charts• Variable Control Charts

• STATE OF CONTROL• • OUT OF PROCESS CONTROL• - Seven continuous above or below mean• - Six consecutive increasing or decreasing• - Two consecutive points in outer quartile•

UCL

u

LCL

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• CONTROL CHARTS FOR ATTRIBUTES

•

• P – Chart – Proportion defective in a sample

• C – Chart – Nos. defective in a sample

•

• RANGE CHART (R)

• __ __

• LCL = D3R UCL = D4R

• __

• R = u R/ K K= No. of samples; R = Range of Each Sample;

• D3 & D4 = Table Constants

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• MEAN CHART (X)

• __ __ __ __

• X = x1+x2+x3

• ----------------

• __ __ K

• UCL = x + A2 R

• __ __

• LCL = X – A2R A2 = Tabular Constant

•

• USING X bar – R CHART TOGETHER

•

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61 not available