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INTRODUCTION
Problems occur in the organizations, not because of the employees but because of the failure of
management to foresee the importance of a system in the organization.
Every organization should be a well-knit collection of processes so as to practice TQM and be
competitive and successful. This concept is also advocated by ISO9001:2000 standard
Japanese perfected a number of process models and derived maximum benefits.
Process orientation should be adapted for TQM. Process orientation is the right strategy to be
adopted for practicing quality as well as management of organizations so that the producer can be
certain about the quality of the products or services even before the final inspection.
A process is nothing but a repeatable sequence of events. An organization should be organized
as a collection of processes
Quality should be built into the product or service right from the early stages.
In product orientation, defects are found only at final stages, whereas in process orientation,
defects could be prevented totally by eliminating the cause of failure in the process.
The process model is quite simple. It contains three clearly distinguishable elements, as given
below:
o Inputs to the processes
o Outputs of the processes
o The process or task
Element Consists of
Bill of materials
Specification for each material
Input of the process
Requirements for inspection for incoming materials
Procedure for receipt of materials
The products or services to be delivered
Documents to be delivered
The specification for all the above
Output of the process
Method of measurements for verifying conformance to the
specifications
Criteria for acceptance/rejection
Value Addition in the Process
Every organization attains profit only through value addition to its processes. Therefore, the
primary goal of the organization is value addition. It, in turn, applies to every process in the
organization. Each process should help in value addition at the lowest cost, without any defects or
hassles. In fact, the organization should not have any process, which does not add value.
ETX MODEL
It is the most popular process model. It stands for entry, task and exit. It is a refined model of the
process model. The entire organization should be depicted as an unbroken chain of processes
expressed in the ETX form
The value adding process is called Task.
Entry – conditions to be satisfied before the task is undertaken
Exit – conditions to be fulfilled before the task is considered as completed
The most important requirement for transforming the employees from product orientation to
process orientation is training and coaching.
Measure Process
In line with the TQM philosophy, the processes should be improved continuously. Efforts should
be put in for continuous process improvement. This will help manufacturing or service organization
to achieve much higher yields.
Since 1991, the author has been heading ETDC, Chennai which is a testing and calibration service
provider, offering services to more than 700 organizations in a year. The Center has 50 employees.
The author declared the year 1993 as a TQM Year for the organization. As part of TQM journey,
the author developed and practiced 6S model for process improvement.
It should be the aim of every organization to reduce the inspection to the least possible and still
should be able to have control over the quality of the products or services. This can be achieved
through establishing customer supplier chains in the organization
The fundamental requirement for building quality into the process is having a continuous control
over the quality of the processes so that quality is ensured at all stages in the process.
Continuous control over the quality of the processes is achieved by establishing customer supplier
chains in every enterprise
Establishing customer supplier chains involves dividing the process into a number of sub-
processes using the ETX model discussed in the previous section and forming customer-supplier
chains in the organization
A “divide and conquer” approach is advocated in customer supplier chains which is suitable for
solving quality problem or for that matter any scientific problem,
The key to building quality in the process is to identify internal and external suppliers
Customer-supplier Chains
Customer-supplier chain is nothing but dividing the entire process of manufacturing or providing
services starting from external supplier and ending at the external customer into a number of clearly
defined sub-processes in the organization
In customer-supplier chain, each sub-process has an owner, who is actually responsible for giving
an output to internal customers after receiving the right inputs from internal suppliers and adding
value.
All sub-processes are linked in a chain. Some sub-processes would terminate at the internal
customer. Some sub-processes would have external suppliers. No sub-process will stand alone. All
sub-processes will be connected.
Educate
The sub-processes, its owners, customers and suppliers should be documented and the employees
should be coached and motivated to practice customer-supplier chains. This should be overseen by
the management. The management’s task is to make the customer-supplier chain work for the
successful implementation of TQM.
It is the responsibility of the process owner to educate the internal customers so that there is no
communication problem. This will also increase the responsibility of the process owner as well as
the supplier and the customer to enable practicing quality in all activities of the organization as well
as building a product or a service.
Supply Chain
A supply chain is the series of links and shared processes that exist between the suppliers and
customers. It encompasses all activities and processes to supply a product or service to the ultimate
customer. It may consist of different divisions in an organization and more than one organization.
It is the Customer-supplier Chain, where the customer can be a supplier to another customer and
hence the total chain can have a number of customer-supplier relationships
We can call the flow of a product from supplier to customer as down-stream and the demand of
information from customer to supplier as up-stream.
Supply Chain Management (SCM)
Supply Chain Management is a task of optimizing all activities throughout the supply chain, so
that the products and services are supplied in the right quantity, right quality, to the right customer,
at the right time and at the optimal cost.
It involves the following activities:
Activity Definition
It is a planning process to predict the demand of products and services
based on forecasts. Accurately forecasting customer demands
Demand Planning
improves customer service while decreasing costs by reducing
demand uncertainty
It is a planning process that optimally schedules manufacturing
orders with production capacity. This is performed by combining
Manufacturing Planning and
Material Requirements Planning (MRP) and Capacity Requirements
Scheduling
Planning (CRP) to create optimized and constrained production
plans.
It is a process that meets customer demand based on available
inventory and transportation resources, this includes Distribution
Supply Planning
Requirements Planning (DRP), which determines the need to
replenish inventory at branch warehouses.
It is a planning process to optimally schedule, load, and deliver
Transportation Planning shipments to customers while considering constraints, such as
delivery date, mode of transportation, carrier, etc.
There are software systems available for Supply Chain Management. Although the software is
related to Enterprise Resources Planning (ERP), Supply Chain Management focuses on planning
and ERP is focused on execution
The performance of Supply Chain Management is to specifically integrate suppliers, warehouses
and retailers so that the products are produced and distributed efficiently at optimal costs. It also
plays an important role in satisfying the customers
Supply Chain Management systems provide decision support for those decisions that must be
made prior to execution of manufacturing. It performs the planning required to allow ERP systems
to execute the plan.
The primary function of an ERP system is to control the flow and execution of transactional
information across the supply chain
For greater advantage, organizations must implement the closed-loop Supply Chain Management
that interacts with its ERP system. Thus success lies in integrating ERP with Supply Chain
Management.
Benefits of SCM
Improved customer service: having the right products, available for delivery when requested at a
good price
Reduction of costs across the supply chain and more efficient management of working capital.
More efficient management of raw materials, WIP, and finished good inventory.
Increased efficiency in the transactions between supply chain partners
Better manufacturing resource management
Optimized manufacturing schedules
Optimal distribution of existing inventory across the supply chain
Enhanced customer value, often in the form of lower prices.
JUST-IN-TIME MANUFACTURING
Definition
Objectives of Just-In-Time
Kaizen
Team Work
Multi-function workforce
Optimizing plant layout
Eliminating wastages
Reduced set-up time
Kanban
Material requirements planning
Manufacturing resources planning
Involvement of people
Plant optimization
Benefits of Just-In-Time
Reduction of wastes
Reduction of work-in-progress
Establishing proper customer-supplier relationship
Reduction in lead time
Less inventory of raw materials
Improvement in flexibility
Lower cost and high productivity
Enhanced customer satisfaction due to lower price owing to elimination of wastes
Improved employee morale owing to a perfect system without waiting
Improved satisfaction of shareholders due to higher profits
Reduced space requirements on account of total elimination of WIP and buffer st3ock of
materials, sub-assemblies, and products
Improved productivity and improved quality.
JIT does not mean that the products are made when needed, but that no materials are stocked for
years waiting to be used. In fact, the reason for JIT is to reduce inventory costs
Practicing TQM
Documented system
Trustworthy suppliers who also practice TQM
Efficient customer handling processes to know the demand just in time
People are educated, trained and coached continuously
Competitive people at all positions in the company
Machinery which are maintained periodically and updated continuously
Proper operating environment for machinery and people
Excellent system of support and infrastructure
Proper layout of machinery and manufacturing
Housekeeping, which reduces the confusion
Identification of an item should be as fast as possible
Employees should be sure about the quality of the material and the process
They should be able to know when the machinery has to be taken out of service for maintenance
They should be thorough with routing and preventive maintenance schedules of the machinery
They should be thorough with the process
They should be familiar with process parameters ad how to inspect the materials, sub-assemblies
and in-process measurements
The employee should know the quality requirements of the product or service
Support of good information technology infrastructure
Reordering of materials should be automatic when the inventory level goes down
The company needs to automate the delivery process.
LEAN MANUFACTURING