TOTAL

QUALITY
MANAGEMENT
Continuous Improvement
Strategies
Chapter - 7

NAZMUN NAHAR 0
KAIZEN

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 What is KAIZEN?
Kaizen is a Japanese word for the Philosophy
that defines managements role in
continuously encouraging and implementing
small improvements involving everyone.
It is the process of continuous improvement
in small increments that make the process
more efficient , effective, Under control and
adaptable.
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 The Kaizen improvement focuses on the
use of:
Value added and non value added work
activities
Muda which refers to the seven classes of
waste- a. Overproduction
b. Delay
c. Processing
d. Wasted Motion
e. Inventory
f. Transportation
g. Defective parts 3
Continuous Improvement Strategies
Continuous improvement is a vital
component of an effective performance
management system
Measuring performance will not result in
system improvements. It requires a strategy
for linking performance measurement to the
implementation of specific system
improvements
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 Benefits
98% on-time delivery
15+% productivity improvement
50% reduction in shop lead time
50% reduction in inventory
25% reduction in scrap and rework
Achievement of a World Class look

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Continuous Improvement Strategies
Basic tips for continuous improvement
strategies -
Start by questioning current practices
Come away from conventional fixed ideas
Think of how to do it, not why it cannot be done
Do not seek perfection at the first instance
If you make mistake, correct it
Do not spend money, use your wisdom
Ask WHY? and seek root causes
Seek the wisdom of more people rather than the
knowledge of one 6
 Deming wheel
1. PLAN
Identify the process which requires continuous
improvement
Locate the problem area
Define the problem
Project expected results
Identify the best method for solving
Set targets for solving the problems
Preparing the resources
Preparing the time schedule 7
 Deming wheel (CONTD.)
2. DO
If training is required then it has to be taken up
as first activity
Improvement activity should be taken up
Commitment of top management has to be
ensured

3. CHECK
The methodology followed and the outcome
achieved are compared with the plans.
Identifying gaps if any exist 8
 Deming wheel (CONTD.)
4. ACT
If there is compliance then steps have to be taken
to ensure that solution methodologies are made a
part of the process
If there is non-compliance then such items are
identified and reasons are analyzed

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 Zero defect concept
The zero defect concept has gained momentum in
many developed countries
Emphasizes on preventive techniques rather than
corrective techniques
Attaining zero defect is not a one time affair, this
is a slow process requiring continuous
improvement
Initially the current status and the desired future
status of the process are to be clearly defined. The
difference between these two indicate the quality
improvement 10
 Zero defect concept (CONTD.)
Once this exercise is over the next step of quality
improvement has to be planned
Now the final quality status attained in the first exercise
becomes the current status. A new desired future status
is fixed. As before the difference between these two
will become the new quality improvement which has to
be introduced in the process
This exercise is again continued
After a prolonged exercise the gap will reduce and one
can hope to achieve the zero defect at the end
How soon the zero defect status will be reached
depends on how creative the ideas are .. 11
 Benchmarking
Benchmarking is a way to go backstage and watch
another companys performance from the wings where
all the stage tricks and hurried realignment are visible
WALL STREET JOURNAL
Benchmarking is the practice of being humble enough to
admit that someone else is better at something, and wise
enough to learn to how to match and even surpass, them
at it BUSINESS TODAY
Benchmarking is the process of identification,
understanding, adopting and practicing the outstanding
practices and processes from organizations anywhere in
the world to help the organization to improve its
performance BUSINESS TODAY 12
 What is benchmarking?
If a company is loosing the market or customers,
the company has to realize that somebody is doing
well ahead. So it is necessary to find out the way to
get their competitors level and have to beat them to
retain the market and customers. An idea tool to
meet this level is benchmarking.
Benchmarking is not copying or imitating, it
involves observing and learning.
Benchmarking is not a time bound event. It is a
continuous journey and on going process without
end, till the company exist. 13
 Benchmarking (contd.)
INTERNAL BENCHMARKING
Within their business: same location, other
location
Different business: same company
EXTERNAL BENCHMARKING
With main competitor: same location, other
location
With similar industries: different companies, any
location
Best practice: any process, any company, any
industry, any location 14
Step model for Benchmarking:

5. Maturity
4. Action
3. Integration

2. Analysis
1. Planning

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 Step model for benchmarking
1. PLANNING
Identifying benchmarking subject
Identifying benchmarking partners
Determining data collection method
Collecting data
2. ANALYSIS
Determining current competitive gap
Projecting future performance 16
 Step model for benchmarking
3. INTEGRATION
Communicating findings and gain
acceptance
Establishing functional goal
4. ACTION
Developing action plan
Implementing plans and monitor progress
Recalibrating benchmark 17
 Step model for benchmarking
5. MATURITY
Attaining leadership
Practicing benchmarking continuously

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 SIX SIGMA
World Class Performance
With 99 % With Six Sigma
Quality Quality
For every 300000 3,000 1 misdelivery
letters delivered misdeliveries
For every week of 1.68 hours of dead 1.8 seconds of
TV broadcasting air (no sound or dead air
per channel video)
Out of every 4100 crashes Less than 2
500,000 computer crashes
restarts
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Source: The Six Sigma Way by Peter Pande and Others
 SIX SIGMA
Business Definition
A break through strategy to significantly
improve customer satisfaction and
shareholder value by reducing variability in
every aspect of business.

Technical Definition
A statistical term signifying 3.4 defects per
million opportunities. 20
 What is Six Sigma?
Six Sigma is originally developed by
Motorola in 1986.[Six Sigma became well
known after Jack Welch made it a central
focus of his business strategy at General
Electrics in 1995, and today it is used in
different sectors of industry.
It uses a set of quality management methods,
including statistical methods, and creates a
special infrastructure of people within the
organization who are experts in these very
complex methods. 21
 What is Six Sigma?
Each Six Sigma project carried out within an
organization follows a defined sequence of
steps and has quantified financial targets (cost
reduction and/or profit increase)
Six sigma accuracy means that the process is
99.999998% accurate. in quality practice six
sigma means 3.4 defects per million

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 Six sigma definition (contd.)
Sigma Defects Per Million Rate of
Level Opportunities Improvement
1 690,000
2 308,000 2 times

3 66,800 5 times

4 6,210 11 times

5 230 27 times

6 3.4 68 times 23
 Goals of Six Sigma
To reduce variations
To reduce defects
To improve productivity
To enhance customer satisfaction
To improve market reputation
To increase shareholder value
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 Six Sigma DMAIC
DMAIC
Define the project goals and customer
(internal and external) deliverables
Measure the process to determine current
performance
Analyze and determine the root cause(s) of
the defects
Improve the process by eliminating defects
Control future process performance 25
 Six Sigma DMAIC
When To Use DMAIC
The DMAIC methodology, instead of the
DMADV methodology.
Should be used when a product or process is
in existence at your company but is not
meeting customer specification or is not
performing adequately.

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 Six Sigma DMADV
DMADV
Define the project goals and customer (internal
and external) deliverables
Measure and determine customer needs and
specifications
Analyze the process options to meet the
customer needs
Design (detailed) the process to meet the
customer needs
Verify the design performance and ability to
meet customer needs 27
 Six Sigma DMADV
When To Use DMADV
A product or process is not in existence at your
company and one needs to be developed
The existing product or process exists and has
been optimized (using either DMAIC or not)
and still doesn't meet the level of customer
specification or six sigma level

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 Process capability (cp)
We have to quantify the extent to which a
process is capable of meeting its specifications

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Process capability (cp) (contd.)

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 Process capability index (cpk)
The Process Capability Index Cpk is the ratio
of the range of values permitted on one side
of the mean to three times the standard
deviation
In some cases the output of a capable process
can be non-conforming if the process is not
properly centered. Cpk helps to measure it

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Process capability index (cpk)
(contd.)

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 END
OF
THE
CHAPTER

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