Documente Academic
Documente Profesional
Documente Cultură
12MBA42
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Introduction to Six Sigma Historical developments, statistical framework for six sigma, DPU and
DPMO concepts, DMAIC methodology, Training for Six Sigma, Benefits of Six Sigma, Six
sigma and TQM.
Practical Component:
Students have to study any Indian organization which has won Deming prize and identify the
quality initiatives of that organization
Students are expected to study various quality awards given in India like CII Business excellence
award, Rajiv Gandhi national quality award and Tata groups Excellence Award and compare
with international awards
Students can identify any 2 products and 2 services and develop Quality attributes for the same.
Students can identify industry from any sector and conduct a benchmark study with respect to
best in the class.
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TABLE OF CONTENTS
MODULE NO
CONTENT
PAGE NO
Introduction to TQM
04 to 16
17 to 36
Benchmarking
37 to 45
Business Process
Reengineering(BPR)
46 to 57
Quality Management
Systems(QMS)
58 to 74
Quality Awards
75 to 90
Quality Control
91to 102
103 to 109
MODULE I
Dept of MBA, SJBIT
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Introduction to TQM,Meaning of the terms quality, quality control and quality assurance,
importance of quality, quality dimensions of products and services, quality and competitive
advantage, cost of quality, TQM, Evolution of TQM, Basic principles of TQM, TQM VS
Traditional management, advantages of TQM.
OBJECTIVE
To Understand and appreciate
Concepts and Practices of TQM
INTRODUCTION TO TQM
Total quality management (TQM) refers to methods used to enhance quality and
productivity in organizations, particularly businesses. TQM is a comprehensive system
approach that works horizontally across an organization, involving all departments and
employees and extending backward and forward to include both suppliers and
clients/customers.
TQM is only one of many acronyms used to label management systems that focus on
quality. Other acronyms that have been used to describe similar quality management
philosophies and programs include CQI (continuous quality improvement), SQC
(statistical quality control),QFD (quality function deployment), QIDW (quality in
daily work), and TQC (total quality control). Despite the ambiguity of the popularized
term "TQM," that acronym is less important than the substance of the management
ideology that underlies it. TQM provides a framework for implementing effective quality
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and productivity initiatives that can increase the profitability and competitiveness of
organizations.
Although TQM techniques were adopted prior to World War II by a number of
organizations, the creation of the total quality management philosophy is generally
attributed to Dr. W. Edwards Deming (1900-1993). In the late 1920s, while working as a
summer employee at Western Electric Company in Chicago, he found worker motivation
systems to be degrading and economically unproductive; incentives were tied directly to
quantity of output, and inefficient postproduction inspection systems were used to find
flawed goods.
Deming teamed up in the 1930s with Walter A. Shewhart (1891-1967), a Bell Telephone
Company statistician whose work convinced Deming that statistical control techniques
could be used to supplant traditional management methods. Using Shewhart's theories,
Deming devised a statistically controlled management process that provided managers
with a means of determining when to intervene in an industrial process and when to
leave it alone. Deming got a chance to put Shewhart's statistical quality-control
techniques, as well as his own management philosophies, to the test during World War
II. Government managers found that his techniques could easily be taught to engineers
and workers, and then quickly implemented in overburdened war production plants.
One of Deming's clients, the U.S. State Department, sent him to Japan in 1947 as part of
a national effort to revitalize the war-devastated Japanese economy. It was in Japan that
Deming found an enthusiastic reception for his management ideas. Deming introduced
his statistical process control, or statistical quality control, programs into Japan's
ailing manufacturing sector. Those techniques are credited with instilling a dedication
to quality and productivity in the Japanese industrial and service sectors that allowed
the country to become a dominant force in the global economy by the 1980s.
While Japan's industrial sector embarked on a quality initiative during the middle
1900s, most American companies continued to produce mass quantities of goods using
traditional management techniques. America prospered as war-ravaged European
countries looked to the United States for manufactured goods. In addition, a domestic
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population boom resulted in surging U.S. markets. But by the 1970s some American
industries had come to be regarded as inferior to their Asian and European competitors.
As a result of increasing economic globalization during the 1980s, made possible in part
by advanced information technologies, the U.S. manufacturing sector fell prey to
more competitive producers, particularly in Japan.
In response to massive market share gains achieved by Japanese companies during the
late 1970s and 1980s, U.S. producers scrambled to adopt quality and productivity
techniques that might restore their competitiveness. Indeed, Deming's philosophies and
systems were finally recognized in the United States, and Deming himself became a
highly sought-after lecturer and author. The "Deming Management Method" became the
model for many American corporations eager to improve. And total quality
management, the phrase applied to quality initiatives proffered by Deming and other
management gurus, became a staple of American enterprise by the late 1980s. By the
early 1990s, the U.S. manufacturing sector had achieved marked gains in quality and
productivity. By the late 1990s several American industries had surpassed their
Japanese rivals in these areas.
MEANING OF THE TERMS QUALITY, QUALITY CONTROL AND QUALITY
ASSURANCE
CONCEPTS OF QUALITY
Q- Quest for excellence
U- Understanding customers needs
A- Action to achieve customers appreciation
L- Leadership-determination to be a leader
I- Involving all people
T- Team spirit to work for a common goal
Y- Yardstick to measure progress
Quality Definitions
The ability of a product or service to meet customer needs
The totality of features and characteristics of a product or service that bears on its ability to
satisfy stated or implied needs-American Society for Quality
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department
employees
employee is responsible for quality
which is called as quality at source
Quality at source
and product
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Quality circle to analyze quality
product
manuals
cates inadequate
quality
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Appraisal costs
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improvement or kaizen) and other is goal is customer satisfaction which involves meeting or
exceeding customer expectations
8 essentials of TQM
Evolution of TQM
In early 1990s F W Taylor the father of Scientific Management brought the concept of
product inspection .
After the World War II a dramatic increase caused W Edwards Deming introduced
(SQC) methods to Japanese manufacturing.
Joseph Juran formulated his cost of quality concept emphasizing accurate and complete
identification and measurement of costs of quality.
In 1950s, Armand Fiegenbaum proposed quality control on the product design and
incoming raw material.
During 1970s there was a dramatic shift from reactive to proactive approach to quality,
this in turn giving importance to customer satisfaction with a drive of team work.
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(3 decades earlier) made the US companies seek his help and experience. As a result
Ford Motor ,General Motors and Procter and Gamble to take up revolution.
In Japan, during the II World War the economy was completely disrupted.
As a result the rate of economic growth increased to 9 to 10 percent per year and the
national product doubled in 7 to 8 years .
From 1950 to 1970 ,in the course of 20 years the per capita income has increased roughly
by 4 times.
Walter Shewart ,the father of stastistical quality control, initiated the SQC movement
during 1947 48.
In 1982 due to the quality trigger in US the concept of quality circles came into
introduction in the public sector units like ,Bharat electronics and Bharat Heavy
Electricals.
Companies practice TQM though Quality circles, Suggestion schemes, kaizen and JIT
Basic principles of TQM
Customer focused approach to all activities and processes in the organization should be
directed towards winning customer satisfaction.
Strategic planning and leadership :leadership should lead to strong customer orientation
in the organization and be willing to make long-term commitments to its customers,
employees, vendors, stockholders and to society.
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Creating a culture of working through internal customer system, where each stage in the
processes and each person in the process can be linked as customers to each other.
Training and development of people : it is the people who drive the processes under
TQM system. Therefore people should be trained and developed for understanding the
process of TQM,
Empowerment and teamwork of people : team approach to work and cross functional
process management is an important aspect of TQM work culture.
TRADITIONAL MANAGEMENT
Product/service focused.
Short term satisfaction.
It is often a corrective measure.
It aims at quality conformance.
State of control is the focus.
It is based on the QMS systems (ISO 9000).
Aims to satisfy customers essential needs.
ADVANTAGES OF TQM
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Module 2: Philosophical Framework to TQM Contribution of various gurus of TQM,DemingDemings chain reaction, Demings principles, deadly sins, PDCA cycle, Jurans Quality triology,
Jurans breakthrough sequence, Philips Crosby- Quality is free, Taguchis Quality loss function,
Ishikawas contributions and Quality Circles.
OBJECTIVE
To Understand and appreciate the:
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Gurus
Shewhart
Deming
Juran
Fiegenbaum
Ishikawa
Crosby
Taguchi
Principles and Practices
Leadership
Customer satisfaction
Employee involvement
Supplier partnership
Benchmarking
Information technology
Quality management systems
Environmental management system
Quality by design
Management tools
Statistical process control
Quality engineering
CONTRIBUTIONS
Deming
Juran
Feigenbaum
Crosby
Ishikawa
Taguchi
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He modified PDCA cycle of Shewhart to the Plan ,Do ,Study and act.(PDSA).
He also advocated intensive use of Statistics and control charts and focused on product
improvement and service conformance by reducing variations in the process.
He joined the US census bureau in the year 1939 and proved that quality control methods
could lower costs even in an exclusive service organization.
Deming stressed on the importance of suppliers and customers for the business
development and improvement.
He believed that people do their best and it the system that must change to improve
quality.
This 14 points formed the basis for this advice to Japanese top management.
The 14 points are applicable to every industry in product and service sector
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DR WALTER A SHEWHART
He is considered to be the father figure of SQC, who developed control charts for quality
assessment and improvements.
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JOSEPH M JURAN
Juran also joined Western electric company and developed Statistical quality control
handbook.
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PHILIP B CROSBY
1. Quality is conformance to requirements, nothing more or nothing less and certainly not
goodness or elegance.
2. Quality has to be achieved by prevention and not by appraisal.
3. The performance standard must be zero and not something close to it.
4. The measurement of quality is the price of nonconformance ,ie, how much the defects in
design, manufacture, installation and service cost the company.
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ARMAND V FEIGENBAUM
1. Define process
2. List all the activities.
3. Flowchart the process.
4. List the elapsed time for each activity.
5. Identify non value adding tasks.
6. Eminent all possible non value adding tasks.
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KAORU ISHIKAWA
He advocated the use of cause and effects diagrams to provide a true representation of the
organizational impacts and producers.
The theory states that improvements in quality leads to lower costs because they result in
less rework, fewer delays ,and better use of time and materials.
With better quality and lower prices, a firm can achieve a higher market share and thus
stay in business, providing more and more jobs.
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DEMINGS 14 PRINCIPLES
1) Create constancy of purpose for improvement of product and service. importance of
stability in jobs ,long term plans as investment in innovation, training, R&D.
2) Adopt the new philosophy for economic stability. Customer driven approach as zero
defects,JIT.
3) Cease dependence on mass inspection to achieve quality. results in
bottleneck ,increases cost, measures only causes ,divides the responsibility between
production and quality people. Use appropriate tools to create a balance between quality
and production
4) End the practice of awarding business on price tag alone. Instead, minimize total cost move towards a single supplier for any item, on trust.
5) Improve Constantly and forever the system of production and service. Enterprise
systems and services must keep growing in order to catch up with the competitive
market.
6) Institute modern methods of training on the job.
7) Adopt and Institute modern methods of supervision and leadership.
8) Drive out fear : Change and survive.
9) Break down barriers between departments and staff . The workers in design, sales, and
production must work together to face problems and resolve them. open communication
,sharing knowledge.
10) Eliminate the use of slogans and posters . Slogans do it right the first time;;
concentrate on the root cause.
11) Eliminate work standards and numerical quotas. This focuses on quantity rather than
quality of product. Ex Targets
12) Remove barriers that hinder the hourly worker. Eliminate Monotonous tasks, Abolish
annual or merit rating.
13) Institute a vigorous program of education and training. A person must grow after
joining a company, and letting them learn new technology and techniques will increase
employee longevity.
14) Create a situation in top management that will push every day on the above
points. Just like products and services, every employee in a company must work to
accomplish the transformation.
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DEMING WHEEL/CYCLE(P-D-C-A)
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DEMINGS TRIANGLE
The basic assumption of this theory is variation from the standard activity as a major
source of problems for all process.
TQM assigns managers the task of finding the source of their variance and eliminating it
so that the process can be improved.
1 Controlled variance is a variation from standard process that a worker can correct/manage.
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2 Uncontrolled variance is a variation from the standard process due to the impact of some
factor outside the limits of the employee.
Equipment malfunctions
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4 Establish quality goals that meet the needs of customers and suppliers.
5 Develop a process that can produce the needed product
6 Prove the process capability.
Quality Control
1. Choose control subjects.
2. Choose the units of measurement.
3. Establish the measurement
4. Establish the standards of performance
5. Measure actual performance
6. Interpret the difference between the actual and the standard.
7. Take action on the difference
Quality improvement
1. Prove the need for improvement
2. Identify the specific projects for improvements.
3. Organize to guide the projects.
4. Organize for diagnosis for discovery of causes
5. Find the causes
6. Provide remedies
7. Prove that the remedies are effective under operating conditions.
8. Provide control mechanisms.
JURANS BREAKTHROUGH SEQUENCE
Identifies some fault in the current process that requires an immediate change.it
identifiescosts of not changing that exceed the costs of change.
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Traces the root cause from the symptoms (systematic causes, random causes, wilful
causes)
The project team identifies a set of alternatives and select the appropriate one .it further
includes implementation and introducing inspection and testing
Fear of unknown techniques, fear of excel in new environment create resistance among
the employees. Formulate actions to overcome fear.
Freeze the new methods and techniques to prevent any return back to old methodology.
PHILIP B. CROSBY
4 Absolutes of Quality Management:
Comprehension (understanding)
Continuance (improvement)
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Integrity, Policies
Focus on designing new systems and operations to maintain the firms new quality environment.
Communication
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His belief was that a company that established a quality program will see savings more
than pay off the cost of the quality program ("quality is free").
1. Management commitment
2. Quality improvement team
3. Quality measurement
4. Cost of quality
5. Quality awareness
6. Corrective action
7. Zero Defects program
8. Supervisor training
9. Zero defects day
10. Goal setting
11. Error cause removal
12. Recognition
13. Quality councils
14. Do it all over again
TAGUCHIS QUALITY LOSS FUNCTION
Taguchis asserts the quality of a product is a function of key product characteristics
(performance characteristics ).
Taguchis Quality loss function estimates loss to society from the failure of a product to
meet its target value for a particular performance characteristic.
A high quality product assures target values consistently throughout its life span under
all operating conditions
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4 Quality circles.
5 Cause and effect charts or fish bone diagrams
6 Bottom up view of quality
QUALITY CIRCLE
A quality circle or quality control circle (Q.C Circle) is a small group of employees 8 to
10 (average number of nine) who volunteer to meet regularly with a facilitator to solve
work related problems in their work area. The group with their leader usually meetonce
a week after their working hours.
Purpose:
To undertake work related projects designed to improve working conditions, enhance
mutual self developmentand to advance the company, all by using quality control
concepts.
Formation of QC circle
Registration of QC circle
Improvement of activities
QC circle grand meeting of each division
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Improvement of activities
Confirmation of effect
Conclusion
Presentation
Characteristics of Quality circles.
Members are from the same work area or doing similar type of work
Better quality
Improved productivity
Better housekeeping
Increased profitability
Waste reduction
Reduced absenteeism
Reduced grievances.
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Intangible benefits
Attitudinal changes
Participative culture
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Module 3
Benchmarking Definition, reasons for benchmarking, types of benchmarking, process of
benchmarking what to benchmark, understanding current performance, planning, studying
others, using findings, Xerox model of Benchmarking, Advantages and pitfalls of benchmarking
Concept of Kaizen and its applications
OBJECTIVE
To understand the meaning of Benchmarking
It is a powerful and effective tool to take up right decisions and align with the
organizational strategies.
It guides the organization to determine the strengths they need to gain competitive
advantage.
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TYPES OF BENCHMARKING
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BENCHMARKING PROCESS
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1 Getting started
Planning
Organizing and
(work technique)
( funds, technical team, technology vendor, training team, top management)
3 Conducting research
Collect information who is best and what is best org; brand image, market position,
competitive secret, competitors ,
4 Selecting whom to benchmark
Establish relationship
Plan to collect and share information
5 Collecting and sharing information
Surveys
Site visits
Determine any third parties( to collect the data)
6 Analyzing adapting and improving
Compare data
Plan to surpass
Implement and monitor
improve
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Information Services
Number of Rewrites
Marketing
Accuracy of Forecast
Overstocked Supplies
Contact Errors
Purchasing
Excess Inventory
Product Engineering
Quality Control
Errors in Reports
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Phase 1: Planning
Phase 2: Analysis
Phase 3: Integration
Phase 4: Action
Phase 5: Maturity
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ADVANTAGES OF BENCHMARKING
It promotes a thorough understanding of company's processes, strength & weaknesses is well
understood.
2. Saves time and money as known practices are adopted as adopts the practices followed by
superiors competitors rather than invention
3. Identifies non-value added activities and plans for process improvement
4. Enables comparison of performance measures in different dimensions, like Return on assets,
cycle time, delivery time and etc..
5. It focuses on processes and not on products, it is not restricted to a company boundary
6. It allows organizations to set realistic ,new performance targets to do things in a better way
7. It defines specific gaps in performance and to select that process for improvement, and
redesigning the process
8. It provides a basis for training human resources
9.Brings in new changes and ideas.
10.It is a ongoing system.
11. It helps to set goals with reference to external perspective.
LIMITATIONS OF BENCHMARKING
it focus on the process not the situation.
Benchmarking is not a panacea (solution) that can replace all other quality efforts
Benchmarking is not a instant pudding. It will not the improve performance , if top
management is not providing all the resources and not adopting quality culture
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Kaizen is a Japanese word for improvement, change for the better, or continuous
improvement.
the concept of Kaizen has evolved since the 1950s into a business strategy of making
small, but continuous changes for the better in company operations.
These changes can range from manufacturing steps to productivity, inventory or quality
control matters.
Kaizen involves every employee and strongly encourages suggestions for improvements
5S Kaizen Principles
Seisomeans to clean up
Shitsukemeans discipline.
Differentiate between the necessary and unnecessary and discard the unnecessary
It includes
Work in process
Unnecessary tools
Unused machinery
Defective products.
Keep the things in order so that they are ready to use when required.
This avoids waste of time due to searching for things like tools, parts, components.
everything should be at its place and there should be place for everything
Every individual should clean the workplace every day before starting the days work
and also at the time of closing the work
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Shitsukemeans discipline.
Every worker and manager has to follow procedures in the work place with discipline.
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Module 4
Business Process Re-engineering (BPR) Introduction, Need for BPR, Implementing BPR, Steps
in BPR, Re-engineering vs. TQM, BPR Vs. Kaizen, Re-engineering the structure, change
management and BPR, BPR and IT, Advantages and Limitations, Indian examples of BPR
OBJECTIVE
To understand the meaning of Business Process Re-engineering (BPR) & Introduction,
To realize the Need for BPR,
To explore the process of BPR Implementation & Steps in BPR,
To differentiate between Re-engineering vs. TQM,
To distinguish between BPR Vs. Kaizen,
To appreciate the need for Re-engineering the structure, change management and BPR,
To understand the relation among BPR and IT,
To recognize the advantages and Limitations of BPR,
To discuss Indian examples of BPR
INTRODUCTION TO BPR
Customer satisfaction has increasingly become the cardinal principle governing any successful
business
Despite emphasis on customer satisfaction, there has been complaints and disappointment , the
reasons for this lies in the process and systems
In many cases, present systems can no longer be fixed and improvements are not sufficient
Hence reengineering of the entire system is needed.
Radical redesigning involves tossing out existing procedures and reinventing the process.
The goal is to achieve quantum leaps in performance
Principles of BPR
Rule 1: Organise around outcomes, not tasks
Rule 2: Have those who use the output of the process perform the process (work should be
carried where it is)
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Rule 3: Merge information processing work into real work that produces the information
Rule 4: Treat geographically dispersed resources as though they work centralized
Rule 5: Link parallel activities instead of integrating their results
Rule 6: Put the decision point where the work is performed and build control into the process
Rule 7: Capture information once-at the source
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management and process delineation). As one of the first pieces of empirical evidence based on a
field study, this research emphasizes the importance of addressing BPR implementation within
the broader context of organizational change in a complex sociotechnical environment.
Understanding
the process
Streamlining
Measurement
& controls
Continuous
improvements
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Step 8: Repeat steps 1-7 for continuous BPR due to changing customer demands, technology
changes and business strategies, which leads to business stability
Retool: This phase requires a thorough evaluation of the current use of advanced
technologies, especially electronic data processing systems, to identify opportunities for
change that can improve quality of services and customer satisfaction
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think from the customer's viewpoint. Also, both TQM and BPR are process-oriented. They both
target to alter the processes, but not just on the product. Moreover, they both take team approach.
Nearly all BPR projects are initiated by top-down approach. Since BPR would results great
changes, staff resistance is obvious. Therefore, top management's support and commitment are
very important. For TQM, both top-down approach and bottom-up approach are possible.
The basic assumptions of TQM and BPR are different. TQM assumes that the existing practices
or systems are principally right and useful. The target of TQM is to improve on the basis of the
existing system. However, BPR takes an opposite assumption. BPR assumes the existing system
is useless and suggests starting it over. Unlike TQM that aims on smoothly and incremental
improvements, BPR aims on dramatic results.
TQM emphasis on total involvement, including all the stakeholders. The involvement even
extends to suppliers and customers. Also, TQM also suggests involving all the processes in the
company, including human resources management, order fulfilling, manufacturing, marketing
and customer management and others. However, for BPR, the project can be controlled to a
specified area only.
Standardization is one of the key points of TQM. TQM aims on standardize the practices, thus
achieving a consistent performance. It also makes that there is a certain degree of documentation
for TQM. However, BPR emphasis on flexibility and believes that standardization would
increase the complexity of the process. Therefore, standardization is rare in BPR and the level of
documentation is much lower.
TQM emphasis on the use of statistical process control. However, there is no similar concern for
BPR. On the other hand, BPR emphasis more on the enabling role of information technology.
TQM is a cultural issue. Once the culture is built, TQM is absorbed in the daily operation.
However, BPR is a project. It is with a clear target that should be achieved as soon as possible.
In fact, BPR is a risky project that is suitable for organizations in deep trouble or facing great
challenges. However, an organization cannot always be under BPR. TQM, on the other hand, can
be treated as a consolidation approach for the organizations to maintain continuously
improvements.
BPR VS. KAIZEN
BPR assumes lack of processes as the basis of change that might not be true in all cases.
Kaizen accepts current state of processes and works towards gradual improvement.
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BPR starts the process of improvement from a clean slate, i.e. totally ignore current status
as opposed to kaizen.
BPR is hard to implement, technology oriented and requires and considerable change
management ,opposed to kaizen which is simpler, people oriented and long term oriented.
automobile industry, and their research revealed that Toyota and other makers by applying the
principles of teamwork, quality control, customer focus, minimal buffers and continuous
improvement had cut product defects by half, factory space by half, work-time by half, and
development time by half.
While diversification had been a hallmark of good management during the 1960s, shedding
unrelated business had become the measure during the 1980s and 1990s. De-diversification,
back to basics, and a return to core competencies emerged as restructuring drivers for good
reason. More focused firms, as Robert Hoskisson and Michael Hitt show in Downscoping,
display superior performance.
Restructuring actions taken in single areas tend to achieve few enduring gains. Downsizing the
workforce generates short-term cost savings, but in the absence of a broader reorganization, it
brings only temporary relief. Reengineering business process creates immediate gains, but the
gains are short-lived without changes in performance measures, compensation incentives,
information technologies, employee skills, and organizational structure.
Restructuring and
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Company restructuring has both worsened and improved the lot of those who work there. Lean
redesigns, cost reductions, and repeated downsizings have terminated careers and decimated
communities. At the same time, reengineering, flexible work, and streamlined hierarchies have
improved employee productivity and product quality. The process of restructuring frequently
brings long work weeks and high stress levels, but the product of restructuring also often results
in greater autonomy and more challenging work. One study of restructuring experience revealed
heightened loads, diminished morale, and reduced employee commitment, but it also found
enhanced quality, customer service, risk taking, workforce competence, and productivity.
The dual impact of corporate restructuring on those who experience and manage it accounts for
some of the schizophrenia toward restructuring. Work environments can be filled with high
anxiety and low morale. At the same time, however, the quality of work life often improves,
with more variety, responsibility, and teamwork. Executives experience stress as they manage
the transformation, but in doing so they are also laying a framework for improved company
performance, richer compensation packages, and enhanced shareholder return.
CHANGE MANAGEMENT AND BPR
BPR is all about the process. Change Management is all about the people.
In a BPR context, unless you've completely automated the process then you won't get 100% of
your ROI until 100% of the people involved have internalized the new process! One of the key
reasons that many Hammer and Champy style BPR initiatives failed miserably was that their
total focus was on the Q component, to the exclusion of the A component. Alas, for most
business initiatives you don't get dollar one of ROI until somebody's behavior changes. I
won't repeat the most excellent rant extended polemic of the previous post, but there's more
discussion of the topic there if you're interested.
All of these three terms relate to change, but to different levels and types of change. The problem
with the fuzzy definitions is that it leads to people applying the wrong practice to their business
challenge. Its like someone saying, We need to dig a tunnel from England to France; let me get
my Black & Decker rechargeable drill. Or equally bad, We need to place a screw in the living
room wall to hang a mirror; hold on while I get the dynamite.
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Change Management, Process Reengineering and Corporate Transformation are clearly diffent.
They are distinct processes, require special capabilities, and are applied in different ways.
Change Management is geared towards communications and training on some specific shift in
the use of an information system or process.
Business Process Reengineering (BPR) relates to taking an entire end-to-end business process,
like billing and collecation or sales as examples, breaking it down to component steps,
realignigng the steps to be more efficient and effective, and implmenting the new process. The
implementation of BPR projects typically entail major systems changes and significant changes
to the organization and how business is conducted.
Corproate Transformation is more focused on changing the business overall. A transformation
effort is centered on clarifying the corporate strategy and putting a process and discipline in
place to drive strategy execution, alignment of the orgnaization and disciplined follow through
for performance.
The most common mistake we see in selecting the right tool for change is underestimating the
level of change that is being called up. What may seem to management as a minor tweak in
business process is often received by sales and operations as a major shift that is disruptive to the
daily operations and requires much more preparation and considerations to accomplish. My
ChangeThis artice titled, People Dont Hate Change, They Hate How Youre Trying to Change
Them became one of the fastest downloaded pieces on their site. The team at ChangeThis said
that they knew that trying to get corporate change right was one of the biggest frustrations people
have and so this was no surprise to them.
BPR AND IT
IT has penetrated the office and services environment since the 1978.The shift from mainframe
to PC based technology is breaking down communication barriers between employees and
customers. Now managers and employees from various departments are designing and
controlling complex business information systems. IT capabilities involve improving information
access and coordination across organizational units. It is so powerful that it can actually create
new process design options, rather than simply support it. In his book, Business the Speed of
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Thought, Bill Gates argues that if the 1980s were about quality and the 1990s were about
reengineering, then the 2000s will be about velocity. Gates advocates complete digitalization of
all aspects of life. He argues that to be successful in the digital age, companies need to develop a
new digital infrastructure similar to the Human nervous system. This new digital system enables
companies to run smoothly and efficiently, makes them respond quickly to emergencies and
opportunities, provides a mean for quickly getting valuable information to the people in the
company who need it. This in turn empowers employees to make decisions and interact with
customers .What is the Relation between BPR & Information Technology? Hammer considers IT
as the key enabler of BPR . Davenport & Short argue that BPR requires taking a broader view of
both IT and business activity, and of the relationships between them. IT capabilities should
support business processes, and business processes should be in terms of the capabilities IT can
provide. They believe IT's promise and its ultimate impact is to be the most powerful tool for
reducing the costs of coordination .It has been argued that innovative uses of IT would inevitably
lead many firms to develop new, coordination -intensive structures, enabling them to coordinate
their activities in ways that were not possible before. Such coordination -intensive structures may
lead to strategic advantages.
Bring complex
analytical
methods to bear on the process
Improve IT processes to
meet increasing needs of
those divisions that have gone
under reengineering
processes
Institute a program of
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design
Participate in designing
measures of success/ failures
of reengineering
Transform unstructured
processes into reutilized
transactions
Reduce/replace labor in a
process
Define clear performance goals
and objectives to drive the
implementation
Define the boundaries and
scope of the process
ADVANTAGES OF BPR
1. Organization can achieve radical changes in performance by cost , cycle time, service and quality
2. It boosts competitiveness in the operations through simpler, leaner and more productive processes
3. Encourages organization to problem solving thinking approach
4. It helps organizations to make noticeable changes in the pace& quality to respond to customer
needs
5. An organization can be transformed from rule driven organization to a marketing structured
organization to focus on customer
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LIMITATIONS OF BPR
1. It is not a panacea, application of it matters a lot.
2. It is not simple or easy to do. Hence companies do not invest time and money on BPR
3. Corporate strategy support is needed
4. BPR cannot be realized without Information technology
5. Processes in functional areas must be improved
6. It requires teamwork from all the employees
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Module 5
Quality Management Systems(QMS) Introduction, meaning of QMS, ISO 9000, Benefits of ISO,
ISO 9000-2008 series, implementation of ISO 9000,Problems related to ISO 9000, QS 9000,
Need for QS 9000, QS 9000 series ,ENVIRONMENTAL MANAGEMENT SYSTEM (EMS),
ISO 14000 series, Benefits of ISO 14000, Integrating ISO 9000 & 14000, SEI-CMM level 5.
OBJECTIVE
To understand the importance of
Quality Management Systems (QMS) Introduction, meaning of QMS,
ISO 9000,
Benefits of ISO, ISO 9000-2008 series,
Implementation of ISO 9000,
Problems related to ISO 9000,
QS 9000, Need for QS 9000, QS 9000 series
ENVIRONMENTAL MANAGEMENT SYSTEM (EMS), ISO 14000 series,
Benefits of ISO 14000,
Integrating ISO 9000 & 14000,
SEI-CMM level 5
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ISO 9000
Switzerland) bought out a set of standards pertaining to the practice of quality assurance methods
within a company.
Termed as ISO 9000 standards, these standards proved their value around the globe. Many
countries including India have adopted ISO.
ISO 9000 is not a mandatory system or it is not a government regulation. However it is a very
important customer regulation. It provides assurance to a wide variety of customers about an
organizations quality assurance methods and quality management practices
5 objectives of ISO 9000
1. Achieve, maintain and seek to continuously improve product quality including service
relationships
2. Improve the quality of operations to continuously meet customers and stake holders stated and
implied needs
3. Provide confidence to internal management and other employees that quality requirements are
being fulfilled and that improvement is taking place
4. Provide confidence to customers and other stake holders that quality requirements are being
achieved in the delivered product
5. Provide confidence that quality system requirements are fulfilled
Structure of ISO Quality standards ISO 9000
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ISO requirements
1. Management responsibility
2. Quality system
3. Contract review
4. Design control
5. Document and data control
6. Purchasing
7. Control of supplied products
8. Product identification and traceability
9. Process control
10. Inspection and testing
11. Control of inspection, measuring and test equipment
12. Inspection and test status
13. Control of nonperforming products
14. Corrective and preventive action
15. Handling, storage , packaging, preservation and delivery
16. Control of quality records
17. Internal quality audits
18. Training
19. Servicing
20. Statistical techniques
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Quality Manual
It is a document containing the quality policy, quality objectives, structure chart, and description
of the quality system of an organization. A quality manual often explains how the requirements
of a quality standard are to be met and identifies the person responsible for quality management
functions.
BENEFITS OF ISO CERTIFICATION
International competition and customer demands
Market realities and perceptions
Internal Organisational Health
Advantages of ISO 9000 certification
Marketing muscle: ISO company offers a better product and service which gives the marketing
strength to a company
Contractor selection : ISO certification helps in the Selection of contractors in abroad which
otherwise becomes difficult to search for a contractor
Supplier : Selecting a new supplier can be time consuming and costly. If a supplier is ISO
certified , it is easy to select the supplier
Benefits for all the parties like companies, suppliers, contractors and customers
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Continual improvements
Criticism (Disadvantages) of ISO
Bureaucratic
Costly
No guarantee that a company that is certified provides a quality service or product
Quality certification only provides a book of procedures and not necessarily better quality
Many companies such a s Hewlett-Packard , Marc and Spencer enjoyed a reputation for quality
before certification of ISO
People are demotivated because certification puts a block on individual initiative
Systematic controls and written procedures are considered as being unnecessary policing of
activities of workers.
Demands more work from employees and hence more human resources are required
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Implementation of ISO
Establishing a Quality Policy
Developing a corrective action process to monitor and control non-conformance (NC)
Writing document control procedures (work instructions)
Completing drafts of detailed procedures for each ISO element, reviewing and approving
them
Completing Quality manual which consolidates all procedures
Training all employees on the quality policy and audit procedures of the company
Conducting internal audits
Preparing for registration audit
Registration of ISO
o Registration is done through a Third party auditor known as registration agency (registrar)
o Registrar certifies the company and this certificate is accepted by all of the companys
customers
Registration process
1. Document review : of the quality system documents or quality manual by the registrar
2. Pre assessment : identifies potential non-compliance on the quality system
3. Assessment : of quality system by 2-3 auditors
4. Surveillance : of periodic reaudit to verify conformity with the practices
PROBLEMS RELATED TO ISO 9000
Overemphasis on Inspection
Questions of Safety
"Not a True Quality Program"
Administration and Control
Required for Basic Survival
Employee and Customer Impacts
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the requirements for gaining approval from the customer to run a new or altered part or
process
continuous improvement
automotive suppliers are required to have systems in place to ensure that organized,
measurable improvement activities take place for a variety for business aspects
manufacturing capabilities
requirements for planning and effectiveness for equipment, facilities and processes
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ISO 14000
ISO 14000 Family
A series of guidance documents and standards to help organizations address environmental
issues. Ones below deal with EMS.
14001: Environmental Management Systems
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Documentation is much talked about. There are different types. At Motorola, for example, there
are SOPs (standard Operating Procedures) and maintains a Quality Systems Manual. There is
process documentation in the manufacturing areas.
Everyone uses documentation outside of work. If you buy something (like a clock), there are
instructions in the box. That is documentation.
Think of documentation as instructions. Documentation explains how to do things.
The auditors job is to make sure everyone is Following Instructions.
Typical Types of Records
o Contract Review
o Purchasing
o Identification and Traceability
o Process Control
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effective process
product quality
of an organisations software process
to the state of the practice of the industry
CMM guides software organisations to gain control of their processes for developing and
maintaining software and to evolve of software engineering and management excellence
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Module VI
Quality Awards : Introduction, Need for Quality Awards, Deming Prize and its features,
MBNQA and its features, European quality award and its features, Golden peacock award, TQM
models.
OBJECTIVE
To realize the need and importance of Quality Awards:
Quality Awards : Introduction,
Need for Quality Awards,
Deming Prize and its features,
MBNQA and its features,
European quality award and its features,
Golden peacock award,
TQM models.
INTRODUCTION
The award promotes awareness of performance excellence as an increasingly important element
in competitiveness. It also promotes the sharing of successful performance strategies and the
benefits derived from using these strategies. To receive a Baldrige Award, an organization must
have a role-model organizational management system that ensures continuous improvement in
delivering products and/or services, demonstrates efficient and effective operations, and provides
a way of engaging and responding to customers and other stakeholders. The award is not given
for specific products or services.
In the early and mid-1980s, many U.S. industry and government leaders saw that a renewed
emphasis on quality was necessary for doing business in an ever-expanding and more
competitive world market. But many U.S. businesses either did not believe quality mattered for
them or did not know where to begin.
The Malcolm Baldrige National Quality Improvement Act of 1987, signed into law on August
20, 1987, was developed through the actions of the National Productivity Advisory Committee,
chaired by Jack Grayson. The nonprofit research organization APQC, founded by Grayson,
organized the first White House Conference on Productivity, spearheading the creation of the
Malcolm Baldrige National Quality Award in 1987. The Baldrige Award was envisioned as a
standard of excellence that would help U.S. organizations achieve world-class quality.
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In the late summer and fall of 1987, Dr. Curt Reimann, the first director of the Malcolm Baldrige
National Quality Program, and his staff at the National Institute of Standards and Technology
(NIST) developed an award implementation framework, including an evaluation scheme, and
advanced proposals for what is now the Baldrige Award. In its first three years, the Baldrige
Award was jointly administered by APQC and the American Society for Quality, which
continues to assist in administering the award program under contract to NIST.
NEED FOR QUALITY AWARDS
Do
it
to
drive
excellence,
not
to
win
the
award.
Many organizations have gotten off track by making the award the ultimate goal. This
can result in gaming the system to look better than you actually are. In the meantime, the
organizations lose sight of their true purpose of providing value adding products and
services to customers.
Use
your
company
language,
not
the
award
language.
The terms and phrases used in award criteria may be good for a generic application, but
they may not be the best fit in your company. Company taxonomy is part of company
culture. For example, if you refer to employees as associates, then you do not need to
change just because the application asks for employee related information. Integrate the
concepts into the way you do things, using words that make sense for your organization.
Use
long
term
focus.
Once and done is almost always a wasted effort. It is not enough to reach award winning
levels of quality leadership. The real goal is to sustain quality leadership performance.
Most quality award winning organizations will self assess and apply multiple times over
several years. They recognize that achieving and sustaining quality leadership is a
journey.
Use
the
feedback.
It is always amazing when an organization goes all the way through the process of
compiling and submitting an application and then ignores the feedback they receive from
the evaluation process. This is the gold nugget. This can be some of the best advice an
organization will ever receive from a team of industry leading experts. Smart
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organizations use this feedback as a major component of strategic and business planning
to identify areas of focus.
Focus
on
process.
The results will follow. Most quality award criteria seek information related to business
processes and business results. The key to success is to understand how processes drive
results and focus on improving the processes so better results can be attained.
Involve
leaders.
Leadership for Quality cannot be delegated. It must be led from the top. Accordingly,
organization leaders need to understand the awards process and criteria. Leaders need to
use quality award assessment feedback in deciding where to put focus and resources.
Develop
internal
expertise.
The awards cycle will provide valuable feedback to the organization, but it can take a
long time to get the information. Organizations which develop internal expertise can
strengthen their own assessment processes. This enables the organization to get regular
and timely information for improving processes and performance.
DEMING PRIZE AND ITS FEATURES
The Deming prize, established in December 1950 in honor of W. Edwards Deming, was
originally designed to reward Japanese companies for major advances in quality improvement.
Over the years it has grown, under the guidance of Japanese Union of Scientists and Engineers
(JUSE) to where it is now also available to non-Japanese companies, albeit usually operating in
Japan, and also to individuals recognized as having made major contributions to the
advancement of quality. The awards ceremony is broadcast every year in Japan on national
television. Two categories of awards are made annually, the Deming Prize for Individuals and
the Deming Application Prize.
Tata Steel is the first integrated steel company in the world, outside of Japan, to win the Deming
Application Prize.
The steel giant won the 2008 prize for achieving distinctive performance improvements through
the application of total quality management (TQM). Avneesh Gupta, chief (TQM) at Tata Steel
spoke to Gayatri Kamath about the journey of enlightenment and the sense of responsibility that
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comes with winning this coveted prize awarded by the Japanese Union of Scientists and
Engineers (JUSE).
FEATURES
The Deming Application Prize is considered to be the highest award in the area of TQM. Total
quality stands for not just quality of products and services, but also the processes and activities
that are needed to achieve quality. In the world of quality awards, this prize is like a gold
standard.
The prize was started in 1951 in memory of Edward Deming who was instrumental in teaching
the concepts of quality to the Japanese. The Deming Application Prize tests the application of
TQM within a company. The criteria include:
Objectives and strategies of the company and whether they are challenging and customerfocused
How TQM has been applied to achieve these objectives, and the thoroughness,
consistency and depth of its application across the organisation
The outstanding effects achieved as a result of the application of TQM
The focus here is on application what sort of systematic methods and activities have been
applied to achieve our objectives and strategies and what is the effect of this. The concept is that
we need to demonstrate our ability to use TQM to achieve our desired goals rather than our
capability (potential).
Firstly, outside Japan, no steel company has won this award. We are the first. Secondly, in the
past many years smaller sized companies have won this prize. Its been almost 20 years since a
company the size of Tata Steel has won the award an indication of the effort that is necessary.
Thus
the
impact
is
significant
and
lasting.
Tata Steel has been practising TQM since the late 1980s which was when the company initiated
several quality activities quality circles, ISO certification, quality improvements using Juran
methods, etc. After winning the JRD QV Award in 2000, the question we faced was how to
achieve the next quantum jump in performance and improvements. By going through the
Deming process, we discovered the deeper meaning of TQM.
Tata Steel has been preparing for this prize for about four years. In 2005, we conducted a TQM
diagnosis along with the JUSE team; that gave us the status of our TQM implementation and
helped us uncover a lot of areas that required improvement in both our processes and culture.
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The TQM diagnosis gave us deeper understanding and clarity on our approach to quality: what
areas should be addressed, who should get involved in what activities, etc. We specifically
looked at:
Strategic aspects or policy management: relooking at the balanced score card, looking at
areas needed to change the business, etc
Daily management: managing the day-to-day operations, ensuring that they are stable,
looking for incremental improvements, etc
The short term impact is that this has galvanised the organisation. Our people had rallied behind
the goal of winning the Deming prize and a lot of improvement activities had been further
refined.
The long term impact is that we have been able to push forward in our excellence journey. More
importantly we have put in place some fundamental approaches in the organisation which will
help us to leverage them for the performance improvement of Tata Steel. We have established
that TQM is necessary for achieving business goals. Our revised half-yearly (H2) plan has
identified enablers that address savings and benefits for the company; many of these methods use
TQM approaches for instance, how to optimise use of consumables such as lime, zinc, etc, how
to reduce turnaround or shut down times through critical chain project management, etc.
Basically, what has changed is our approach, how we apply TQM to attain our business targets.
We are looking at more than double the improvements we have achieved in the past years.
It started with the top leadership and the TQM team, but later on nearly everyone in the
organisation was a part of it. We were able to engage many of the front line or operating units in
this; there were champions in each of the departments.
The most fundamental challenge was to create a mindset that looks at improvement activities as
essential for achieving targets and goals. This is where the examiners focus. The biggest
challenges lay in creating this understanding across the organisation, dealing with 35,000
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employees, in explicitly stating and documenting improvement targets and how to go about
achieving these in a systematic manner, in standardising approaches and creating alignment to
profits and goals, and so on. Equally challenging was to bring quality to the forefront, which was
addressed by formulating customer focused objectives and strategies in the various divisions and
departments.
The other problem was that for Tata Steel there were six examination units the corporate unit
and the five major divisions (raw materials, coke, sinter and iron, flat products, long products
and shared services). Each unit had two applications one for the overall unit, and one
representing each of the departments of the division. We had to create guidelines and reference
manuals to have uniformity and alignment.
The difference is in the focus rather than the content. The Deming award criteria looks for
application which runs vertically cutting across processes/ items, rather than looking at processes
horizontally the way TBEM criteria are applied. They test the application rather than only the
approach. Deming looks at applying the basic principle of TQM the Plan-Do-Check-Act
method.
The other key difference is the rigour of the examination process. It looks for application both in
business units and the corporate functions. For us there were six examination units covering 52
departments in all. Each unit was examined for two days, so there were 12 days of examination
which spread for about a month (4th of August to the 5th of September). There were 26
examiners, each having a lot of experience and expertise both in theory and application in their
field.
As far as we know no company applies for this award every year. It is a very intense and time
consuming effort both for the company and the examination body. Usually organisations
continue to reap benefits out of one such effort for many years and put some internal diagnosis
(assessment) system in place. Tata Steel will also not apply again for the Deming award in 2009.
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There is a next level called the Japan Quality Medal. You become eligible three years after
winning the Deming prize. We will decide in due course.
Malcolm Baldrige National Quality Award (MBNQA)
o Helped to improve quality in U.S. companies
o To Recognize achievements of excellent firms and provide examples to others
o To Establish criteria for evaluating quality efforts
o To Provide guidance for other companies
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Chapter 1. LEADERSHIP
1-1 How does the Management team lead the implementation of Quality Approach within the
Organization ?
1-2 How does the Management team show the examples through internal and external actions ?
1-3 How does the Management Team encourage effort and success as regard to quality, with
individuals and teams ?
1-4 How does the Management team interact with customers, partners and representatives of
society ?
Chapter 2. - STRATEGY AND QUALITY OBJECTIVES
2-1 How does the Organizations strategy integrate its Policy on quality ?
2-2 How is the quality policy translated into measurable goals throughout the entire Organisation
?
2-3 How does the Organization improve its strategy and action plans ?
2-4 How is the Policy and strategy on quality communicated and deployed through a framework of
key processes ?
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8-1 What actions and results show that the Organization provides answers to local Communitys
needs and expectations ?
8-2 What are the results of the societys perception of the organization obtained from surveys,
press articles, public meetings, public and governmental authorities ?
Chapter 9. OPERATIONAL RESULTS
9-1 What are the results in terms of global performance ?
9-2 What are the results coming from internal management indicators ?
GOLDEN PEACOCK AWARD
Golden Peacock Awards, instituted by the Institute of Directors, India in 1991, are now regarded
as a benchmark of Corporate Excellence worldwide.
Today Golden Peacock Awards Secretariat receives over 1,000 entries per year for various
awards, from over 25 countries worldwide. The achievement of the Golden Peacock Award is
the most powerful way to build your brand. The Award winners are eligible to use the Golden
Peacock Awards logo on all printed and promotional materials for next one year, which
evidences to all its customers and suppliers the highest accolade acclaimed by the company. No
business award today receives the kind of recognition and adulation among peers that the Golden
Peacock does. They provide not only worldwide recognition and prestige, but a competitive
advantage in driving business in this tumultuous world .All sector of our business both in
manufacturing and service, whether Public, Private ,Government , NGOs self accounting
Institution , Business Units , are eligible to apply for the award . Individual leadership awards are
determined through nomination only, based on complete career profile and achievements.
Justice P.N. Bhagwati, former Chief Justice of India and acting Chairman, UN Human Rights
Committee,
is
the
Chairman
of
the
Golden
Peacock
Awards
Committee.
The Award applications are assessed at 3 three levels by independent assessors and finally by a
grand Jury. The Global Awards are finalized by a Jury headed by Dr. Ola Ullsten, former Prime
Minister of Sweden.
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All institutions whether public, private, non-profit, government, business, manufacturing and
service sector are eligible to apply. Leadership Awards are determined through nomination. They
provide not only world- wide recognition and prestige but also a competitive advantage in
driving business in this tumultuous world under Golden Peacock Award models.
The Awards are bestowed annually and are designed to encourage total improvement in each
sector of our business.
The only award, which has a meticulously defined and transparent selection criteria and
is determined by a highly elaborate and independent assessment process.
Award winners are eligible to use the Golden Peacock Awards LOGO on all
promotional literatures.
Preparation for award application helps to inspire and align the entire workforce and
rapidly accelerates the PACE OF SYSTEM IMPROVEMENT .
Even, if you dont win the award, the PREPARATION & FEEDBACK helps your
strategic learning process to put you, on your way to achieving world-class status.
The Awards Secretariat has constituted an Expert Evaluation Committee comprising from
various sectors are invited to examine the applications. Each of the applications is reviewed
independently by two assessors those satisfies the basic review requirements and are short listed
for Awards. The applications are assessed on an exhaustive set of parameters as mentioned in the
guidelines for a total score card of 1000 marks. Cut-off applied on each application is 80 percent.
Entries occupying top positions are recommended for consideration of the Jury.
In some cases the short listed finalist companies by the Assessors for Award are also asked to
make a 10 min presentation followed by questions and answers for 5 min during the Jury
meeting for the final consideration of Grand Jury.
The phenomenal interest that Companies have shown in competing for these awards and the
quality of entries is evidence of their commitment to achieve world-class status. Golden
Peacock Awards have given boost to the Industry worldwide.
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TQM MODELS
The roots of Total Quality Management (TQM) go back to the teachings of Drucker, Juran,
Deming, Ishikawa, Crosby, Feigenbaum and countless other people that have studied, practiced,
and tried to refine the process of organizational management. TQM is a collection of principles,
techniques, processes, and best practices that over time have been proven effective. Most all
world-class organizations exhibit the majority of behaviors that are typically identified with
TQM.
No two organizations have the same TQM implementation. There is no recipe for organization
success, however, there are a number of great TQM models that organizations can use. These
include the Deming Application Prize, the Malcolm Baldrige Criteria for Performance
Excellence, the European Foundation for Quality Management, and the ISO quality management
standards. Any organization that wants to improve its performance would be well served by
selecting one of these models and conducting a self-assessment
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simplest
model of TQM is shown in this diagram. The model begins with understanding customer needs.
TQM organizations have processes that continuously collect, analyze, and act on customer
information. Activities are often extended to understanding competitor's customers. Developing
an intimate understanding of customer needs allows TQM organizations to predict future
customer behavior.
TQM organizations integrate customer knowledge with other information and use the planning
process to orchestrate action throughout the organization to manage day to day activities and
achieve future goals. Plans are reviewed at periodic intervals and adjusted as necessary. The
planning process is the glue that holds together all TQM activity.
TQM organizations understand that customers will only be satisfied if they consistently receive
products and services that meet their needs, are delivered when expected, and are priced for
value. TQM organizations use the techniques of process management to develop cost-controlled
processes that are stable and capable of meeting customer expectations.
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TQM organizations also understand that exceptional performance today may be unacceptable
performance in the future so they use the concepts of process improvement to achieve both
breakthrough gains and incremental continuous improvement. Process improvement is even
applied to the TQM system itself
The final element of the TQM model is total participation. TQM organizations understand that
all work is performed through people. This begins with leadership. In TQM organizations, top
management takes personal responsibility for implementing, nurturing, and refining all TQM
activities. They make sure people are properly trained, capable, and actively participate in
achieving organizational success. Management and employees work together to create an
empowered environment where people are valued. All of the TQM model's elements work
together to achieve results.
Module 7
Quality Control tools: Introduction, 7 tools of quality control (Old & New), Poka-yoke, Quality
Function Deployment.
OBJECTIVE
To understand the meaning & importance of Quality Control tools: Introduction,
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Good design identifies the settings of products or process parameters that minimise the
sensitivity of design or sources of variation in use.
Products that are not sensitive to external sources of variation are called robust
Ex: a television whose picture quality varies with environmental conditions such as room
temperature and humidity is not a robust product. A television must function in different room
temperatures to be called as a robust product
A Japanese engineer,Dr Genichi Taguchi, proposed the use of statistically planned experiments
for parameter design. Experimental design is one of the most powerful techniques for improving
quality and increasing productivity.
Through experiments changes are intentionally introduced into the process or system in order to
observe their effects on the performance of the products
Any experiment that has the flexibility to make desired changes in the input variables of a
process to observe response is known as experimental design.
Goals of a designed experiment are to
Determine the variables and their magnitude that influence the response (output)
Determine the levels for these variables
Determine how to manipulate these variables to control the response
According to Taguchi, it is not sufficient to control only process, inspect output, identify and
remove defects, it also necessary to have a quality design
This approach is called as design of experiments (DoE)
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It can be used anywhere. According to him 95% of all the problems in a company can be solved
by these tools. In Japan these tools are used effectively by top management to line workers.
Along with these tools, facilitators and workers must also be trained in the following basic
concepts for efficient functioning of Quality Circles.
a. The concept of quality.
b. Principles and implementation concerning management and improvement. '
c. Statistical way of thinking.
As Dr K Ishikawa says
It was due to the use of this that the quality level has risen, reliability has risen, and cost has
fallen. The key has been the dogged use of process analysis and quality analysis without fanfare
for a long period of time.
This has brought about improvement in technology. Some contend that engineering technology
enhances technology and management technology maintains it. I do not subscribe to that claim. I
cannot see any difference between engineering technology and management technology. The socalled control technique is part of proper technique.
One must utilize all the technology at his disposal to strive towards advancing quality and
efficiency. After the Second World War, Japan imported many new technologies from the West.
Nowadays, Japan can export her technologies to the West as well. This is in large measure a
result of the introduction of statistical quality control and the use of statistical analysis, process
analysis and quality analysis.
Elementary Statistical Methods- (7 QC-tools)
1. Check-sheet (for data collection)
2. Graph and Control Chart
3. Stratification
4. Pareto Chart
5. Cause and Effect Diagram
6. Histogram
7. Scatter Diagram
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Check sheet
Data collection: To understand the magnitude of the problem and understand the problem. It
is the foundation for statistical analysis.
2. Graphs : Presentation of large amount of data in a cohesive manner in the pictorial form to enable
better understanding of the data and the problem and also to comprehend the trend at a glance.
Control Charts :For maintaining running control on a process. It is a tool for on-line quality control.
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4. Pareto Chart: For identification/selection of major problem or area for improvement or control, to
differentiate between vital and trivial problems.
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5 Cause & Effect Diagram: To map out all probable causes and relate the logical linking of causes
to the problem to help narrow down to the cause or causes.
6. Histogram : For study of process variation and assess process capability. This is an off-line
quality control method.
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7. Scatter Diagram : For examining relationship between two variables, nature and strength of
relationship between process factors and product quality. In a way it is also a cause and effect
approach between two variables.
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3. MATRIX DIAGRAM
4. TREE DIAGRAM
5. ARROW DIAGRAM
6. PDPC(PROJECT DECISION PROGRAM CHART)
7. MATRIX DATA ANALYSIS
Process Capability
Capability is a measure of the ability of a process to meet specified requirements, usually
expressed as an index.
Process capability measurement can be made using the data that is obtained for the control chart.
The capability assessment compares the process spread with the specified requirements.
The process chart does not make any reference to the specified requirements.
Process capability is determined by a comparison of process performance versus specification.
Process capability:
Depends on specification limits;
Is assessed with respect to a single characteristic;
Depends on process spread (i.e. the standard deviation);
Depends on the process average;
Is determined by use of control charts;
Can be described by capability indices.
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process.
-going Process Capability Study uses data from a longer time period to include all common
causes of process variation.
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Process Capability measures how well a process is generating a specific characteristic with respect to
specification limits.
Process Capability:
Assesses the process spread with respect to the width of the specification;
Assesses the process average with respect to the specification;
Depends upon process location and spread.
Capability Indices
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House of Quality
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o Parts characteristics
o Key process operations
o Production requirements
QFD- Disadvantages
o Prioritize on important attributes
o Analyzes independent subsystems independently
o Consider segmenting market
o Customers stated preferences and actions differ
o Use revealed preference techniques if you suspect a problem
o QFD is messy
o Not QFD, but rather the interaction between diverse groups is cause
o Stick with it, the results are worthwhile
Poka yoke
Poka-yoke (?) [poka yoke] is a Japanese term that means "mistake-proofing". A poka-yoke is
any mechanism in a lean manufacturing process that helps an equipment operator avoid (yokeru)
mistakes (poka). Its purpose is to eliminate product defects by preventing, correcting, or drawing attention
to human errors as they occur. The concept was formalised, and the term adopted, by Shigeo Shingo as
part of the Toyota Production System.It was originally described as baka-yoke, but as this means "foolproofing" (or "idiot-proofing") the name was changed to the milder poka-yoke.
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Poka-yoke example: Ethernet cable plug is designed to be plugged in in only one direction.
More broadly, the term can refer to any behavior-shaping constraint designed into a process to prevent
incorrect operation by the user. Similarly, a constraint that is part of the product (or service) design is
considered Design for Manufacturability or Design for X. A modern Poka-Yoke application is when a
driver must press on the brake pedal (a process step, therefore a poka-yoke)) prior to starting an
automobile. The interlock serves to prevent unintended movement of the car. An additional poka-yoke
would be the switch in the car's gear shift that requires the car to be in Park or Neutral before the car can
be started. These serve as behavior-shaping constraints as the sequence of "car in park (or neutral)"
and/or "Foot on brake" must be performed before the car is allowed to start. Over time, the driver's
behavior is conformed with the requirements by repetition and habit.
History of Poka yoke
The term poka-yoke was applied by Shigeo Shingo in the 1960s to industrial processes designed to
prevent human errors. Shingo redesigned a process in which factory workers, while assembling a small
switch, would often forget to insert the required spring under one of the switch buttons. In the redesigned
process, the worker would perform the task in two steps, first preparing the two required springs and
placing them in a placeholder, then inserting the springs from the placeholder into the switch. When a
spring remained in the placeholder, the workers knew that they had forgotten to insert it and could correct
the mistake effortlessly. Shingo distinguished between the concepts of inevitable
human mistakes and defects in the production. Defects occur when the mistakes are allowed to reach the
customer. The aim of poka-yoke is to design the process so that mistakes can be detected and corrected
immediately, eliminating defects at the source.
Implementation in manufacturing
Poka-yoke can be implemented at any step of a manufacturing process where something can go wrong
or an error can be made. For example, a jig that holds pieces for processing might be modified to only
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allow pieces to be held in the correct orientation, or a digital counter might track the number of spot welds
on each piece to ensure that the worker executes the correct number of welds.
Shigeo Shingo recognized three types of poka-yoke for detecting and preventing errors in a mass
production system:
1. The contact method identifies product defects by testing the product's shape, size, color, or other
physical attributes.
2. The fixed-value (or constant number) method alerts the operator if a certain number of
movements are not made.
3. The motion-step (or sequence) method determines whether the prescribed steps of the process
have been followed.
Either the operator is alerted when a mistake is about to be made, or the poka-yoke device actually
prevents the mistake from being made. In Shingo's lexicon, the former implementation would be called
awarning poka-yoke, while the latter would be referred to as a control poka-yoke.
Shingo argued that errors are inevitable in any manufacturing process, but that if appropriate poka-yokes
are implemented, then mistakes can be caught quickly and prevented from resulting in defects. By
eliminating defects at the source, the cost of mistakes within a company is reduced
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Module 8
Introduction to Six Sigma Historical developments, statistical framework for six sigma, DPU and
DPMO concepts, DMAIC methodology, Training for Six Sigma, Benefits of Six Sigma, Six
sigma and TQM.
OBJECTIVE
To understand the meaning, applications and Importance of:
Introduction to Six Sigma
Historical developments, statistical framework for six sigma,
DPU and DPMO concepts, DMAIC methodology,
Training for Six Sigma,
Benefits of Six Sigma,
Six sigma and TQM.
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According to the Six Sigma Academy, Black Belts save companies approximately $230,000 per
project and can complete four to 6 projects per year. (Given that the average Black Belt salary
is $80,000 in the United States, that is a fantastic return on investment.) General Electric, one of
the most successful companies implementing Six Sigma, has estimated benefits on the order of
$10 billion during the first five years of implementation. GE first began Six Sigma in 1995
after Motorola and Allied Signal blazed the Six Sigma trail. Since then, thousands of
companies around the world have discovered the far reaching benefits of Six Sigma.
Many frameworks exist for implementing the Six Sigma methodology. Six Sigma Consultants
all over the world have developed proprietary methodologies for implementing Six Sigma
quality, based on the similar change management philosophies and applications of tools.
STATISTICAL FRAMEWORK FOR SIX SIGMA
Six Sigma is a business strategy and a systematic methodology, use of which leads to
breakthrough in profitability through quantum gains in service quality, product performance,
productivity and customer satisfaction.Today SixSigma has been considered as a strategic
approach to achieve excellence in operations and service performance through the effective
utilization of statistical and non-statistical tools and techniques .Like other programs emerging
under the TQM umbrella,Six Sigma requires a transformational change in an organizations
culture, structure, and processes. The emergence of Six Sigma as a distinct approach to TQM
occurred in 1987 at Motorola ,Six Sigma is a disciplined approach to define, measure, analyze,
improve and control processes that result in variability and defect reduction. Six Sigma is a
business improvement strategy that seeks to find and eliminate causes of defects or mistakes in
business processes by focusing on outputs that are of critical importance to customers. It is a
powerful approach to process improvement, reduced costsand increased business profitability
and revenue growth. Six Sigma originated at Motorola in the early 1980s in response to a
challenge to achieve ten-fold reduction in product failure levels in five years. Six Sigma has both
management and technical components. The focus of management component is to select the
right people for Six Sigma projects, select the right process metrics, provide resources for Six
Sigma training, provide clear direction and guidance with regard to project selection, etc. The
focus of technical component is on process improvement by reducing variation, creating data
which explains process variation, using statistical tools and techniques for problem solving, etc.
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In statistical terms, Six Sigma means 3.4 defects per million opportunities (DPMO), where sigma
is a term used to represent the variation around the average of a process. Today, Six Sigma is
exploited by many organisations such as GE, Honeywell, Sony, Caterpillar, J P Morgan,
American Express, Common Wealth Health Corporation, Lloyds TSB, City Bank, Jaguar,
Kodak, Ford and Starwood Hotel Group . These contrast results make Six Sigma implementation
a complex and central process, where the CSFs in its implementation must be recognised.
Although different resources are now available on Six Sigma subjects, it seems there are only a
few, in which CSFs are addressed. In the following, the efforts made in the literature are
reviewed in case of CSFs for successful implementation of Six Sigma projects; then, a case study
is presented in which a set of CSFs are analyzed in major car maker companies in Iran..
DPU AND DPMO CONCEPTS
Defects Per Unit - DPU
Total Number of Defects
DPU = -----------------------Total number of Product Units
The probability of getting 'r' defects in a sample having a given dpu rate can be predicted with
the Poisson Distribution.
Total Opportunities - TO
TO = Total number of Product Units x Opportunities
Defects Per Opportunity - DPO
Total Number of Defects
DPO = -----------------------Total Opportunity
Defects Per Million Opportunities - DPMO
DPMO = DPO x 1,000,000
Defects Per Million Opportunities or DPMO can be then converted to sigma values using Yield
to Sigma Conversion Table given in Six Sigma - Measure Phase.
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DMAIC METHODOLOGY
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Cutting costs,
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5 Whys
Axiomatic design
Check sheet
Control chart
Correlation
Cost-benefit analysis
CTQ tree
Design of experiments
Histograms
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Pareto analysis
Pareto chart
Pick chart
Process capability
Project charter
Run charts
Scatter diagram
Stratification
Taguchi methods
TRIZ
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