TQM EXAM NOTES

RASHMI.S

PAPER 1

PART A - 1. GOALS OF TQM

There are 5 goals of TQM. 1. Customer Delight- Customer Needs Customer & supplier relationship customer pays salary idea. 2. Continuous Improvements value additions . 3 .Total employee involvement & empowerment team work Motorola, Ford teams , TVS Sundaram Iyengar. 4 .Optimization of resources all resources optimum no extras. 5 .Do Right At First Time collect data, check suitability & see how the knowledge is useful to u & use it for competitive adv.

2. QUALITY COST
Quality cost is the sum of all costs a company invests to ensure that there is release of a quality product. They are associated with preventing, finding, and correcting defective work There are 3 types of quality costs, viz; Prevention Cost Appraisal Cost Failure Cost

Prevention Cost: involved in ensuring that faulty or defections / rejections are not produced in very first instance. Design Reviews/Checking Documents Checking Supplier Evaluation/Education Capability Studies Tool Inspection Operator Training Inspection Quality Audit/Education/ Zero Defect Programme Customer Inspection

Appraisal Cost: Costs involved in carrying out the actual inspection. Prototype Inspection Design Evaluation Qualification Tests Purchase Surveillance Incoming Inspection Product Inspection Calibration

Failure Cost : Direct / indirect costs incurred on those products/ services which fail to comply with the prescribed standards.
Redesign Effort Engineering Changes Scrape, Rework, Unplanned Purchase Corrective Action/NCR Warranty/After Sales Service Product Liability

3. TQM GURUS - DEMING

DEMING: William Edwards Deming (October 14, 1900 December 20, 1993) was an American statistician, professor, author, lecturer, andconsultant. Deming made a significant contribution to Japan's reputation for innovative highquality products and its economic power. He is regarded as having had more impact upon japanese manufacturing and business than any other individual not of Japanese heritage. he taught top management how to improve design (and thus service), product quality, testing and sales (the last through global markets)[1] through various methods, including the application of statistical methods. His 14 principles, known widely as Demings 14 principles are;

1. Consistency of Purpose : Top Management should follow vision, Mission and objectives to be achieved
2. Learn a new Philosophy : Learn new techniques-challenge the working 3. Do not depend on Mass Inspection : Use sampling methods for inspection

4. Reduce the number of vendors Indian corporates more; Japanese 1 vendor only- Educate vendor & make him understand responsibility. 5. Recognize two sources of namely a ) Management and production systems : Integrate all process. 85% of quality with mgmt. b) Production workers 6. Improve on the job Training : Training for best results continuous improvement assess training needs in local Lang, - measure every 3 months. 7. Improve supervision for continuous improvement: existing process inventory, WIP. 8. Drive out fear : Self sustaining- new methods for process, proactive 9. Improve communication: proper, crisp communication in local lang & reach in shortest time notice boards, feedback , daily meeting. 10. Eliminate fear : wrong decisions experience, eliminates fear Reliance individual decisions. 11. consider work standards carefully tolerance not important, usage important ; no overdesign..- cheaper cost @ same quality. 12. Teach statistical Methods : SPC-for process capability ,machine capability, 13 .Encourage new skills-Innovation -continuous improvement 14 . Use statistical knowledge- 6 sigma statistics excellent

4. TQM AWARDS DEMING AWARD

Demings Prize is the Japanese quality award for individuals and groups that have contributed to the field of quality control. Established in 1951 by Japanese Union of Scientists and Engineers (JUSE) to recognise those who excel in quality control and as a way of driving quality control. It was also established to thank Dr. Deming for his accomplishments and impact in the Japanese industry. There are 4 categories of the Deming awards; 1 . Deming Prize for individuals individuals outstanding contribution in tqm and statistical methods in tqm . 2. The Deming distinguished service awards for dissemination & Promotion Overseas individuals activities outside Japan. 3. Deming Application Award org that achieve distinctive performance through tqm throughout the yr. 4. the Quality control award for operations business units: operation business units achieved distinctive performance through tqm in a designated yr.

 The Deming Application Prize is an annual award presented to a company that has achieved distinctive performance improvements through the application of TQM. Regardless of the types of industry, any organization can apply for the Prize, be it public or private, large or small, or domestic or overseas. Provided that a division of a company manages its business autonomously, the division may apply for the Prize separately from the company. There is no limit to the number of potential recipients of the Prize each year. All organizations that score the passing points or higher upon examination will be awarded the Deming Application Prize. Some of the Indian Cos that have got the Deming Prize are; Sundaram-Clayton Limited, Brakes Division ;(1998) Sundaram Brake Linings Ltd.(2001) TVS Motor Company Ltd. (2002) Mahindra and Mahindra Ltd., Farm Equipment Sector Lucas-TVS Ltd. Krishna Maruti Limited, Seat Division Asahi India Glass Limited, Auto Glass Division Tata Steel Limited (2008)

(2003) (2004) (2005) (2007)

Assessment model of the DAP 1 Policy-Management and quality policy Policy creation-consistency of policies-Review-Relation ship between policy and plans. 2 Organizations and Management 3 Education and dissemination 4 Quality information management 5 Analysis 6 Standardization 7 Control/Management 8 Quality Assurance 9. Results/effects 10 Future plans

5. ISO 9001 SERIES

ISO 9001 is by far the worlds most established quality framework, currently being used by around 897,000 organizations in 170 countries worldwide, and sets the standard not only for quality management systems, but management systems in general. It helps all kinds of organizations to succeed through improved customer satisfaction, staff motivation and continual improvement. ISO 9001 is one of a series of quality management system standards. It can help bring out the best in your organization by enabling you to understand your processes for delivering your products/services to your customers. The ISO 9001 series of standards consist of: ISO 9000 this introduces the user to the concepts behind the management systems and specifies the terminology used. ISO 9001 this sets out the criteria you will need to meet if you wish to operate in accordance with the standard and gain certification. ISO 9002 - primarily deals with production operations and assembly ISO 9003- primarily deals with final inspection and testing to assure quality in the products that the company receives from other companies

ISO 9004 Guidelines for performance improvement: based upon the eight quality management principles, these are designed to be used by senior management as a framework to guide their organizations towards improved performance by considering the needs of all interested parties, not just customers. gives guidance to organizations that provide services to customers that may or may not have a product to offer Some software organizations usually support the products they supply instead of designing or manufacturing the products. ISO 9001:2008-It gives the requirements for quality management systems. It is firmly established as the globally implemented standard for providing assurance about the ability to satisfy quality requirements and to enhance customer satisfaction in supplier-customer relationships. Revised from ISO 9001:1994 Requires organizations that are already certified to update their quality systems to comply with the new standards Differs from ISO 9001:1994 in terms of quality models (e.g. 20 elements are no longer required) Emphasizes continual improvement, management responsibility, and resources management Is broader so that more industries can apply the quality standards to their areas

6. IMPORTANCE OF TAGUCHIS LOSS FN

Simply put, the Taguchi loss function is a way to show how each non-perfect part produced, results in a loss for the company. Deming states that it shows L(y) = K (y-m)2 = Loss at a point where, k = loss coefficient x = measured value t = target value

The Taguchi Loss Function is a graphical depiction of loss developed by the Japanese business statistician Genichi Taguchi to describe a phenomenon affecting the value of products produced by a company.

Rather than designing defects, lets design quality into the product right from the beginning .

 Concept : quality does not suddenly plummet when, for instance, a machinist exceeds a rigid blueprint tolerance. Instead "loss" in value progressively increases as variation increases from the intended condition. This was considered a breakthrough in describing quality, and helped fuel the continuous improvement movement that since has become known as lean manufacturing The Taguchi Loss Function is important for a number of reasons. Primarily, to help engineers better understand the importance of designing for variation. It was important to the Six Sigma movement by driving an improved understanding of the importance of Variation Management Finally, It was important to describing the effects of changing variation on a system, which is a central characteristic of Lean Dynamics, a business management discipline focused on better understanding the impact of dynamic business conditions (such as sudden changes in demand seen during the 2008-2009 economic downturn) on loss, and thus on creating value.

PART B- 4. ISO 9001 PROCESS OF CERTIFICATION

ISO 9001 is the internationally recognized standard for the quality management of businesses. It applies to the processes that create and control the products and services an organization supplies. It prescribes systematic control of activities to ensure that the needs and expectations of customers are met It is designed and intended to apply to virtually any product or service, made by any process anywhere in the world. The key phrase in the ISO 9001 standard of "management systems". ISO 9001 does not deal with product or service quality issues. ISO 9001 is all about management of processes and procedures. It came into effect as on Dec 2008, after revision from the ISO 9000: 9004 series.

BENEFITS Planning each and every activity in the system, avoids duplication or missed/ delayed actions causing delays / added costs. Ensures Consistency in the delivery process. Documenting the process/ activities generate means for audit, basis for corrective action and continuous process improvements. Training new personnel becomes easier with the documented procedures/ instruction. Better implementation and sustaining of procedures/forms introduced as the system is subject to audit. Operations will tend to shift towards System orientated from Person oriented. Better standing in the market. Education delivery service marketed shall be from an ISO 9001 certified Institute. ISO 9001:2008, The requirement standard, for certification and updation includes the following main sections: 1. Quality Management System 2. Management Responsibility 3. Resource Management 4. Product Realization 5. Measurement Analysis and Improvement.

STEPS TO ISO 9001 1. ISO awareness to Management and Senior Staff. 2. Study existing system, identify the gaps. 3. Identify Processes carried out in the functions and develop system for the same. 4. Set departmental objectives identify measures and set mechanism for measuring the data, analyzing the data and taking actions for improvements 5. Quality System Documentation (Procedures, Work Instruction, and Forms/Format) linked to the Process identification. 6. Generation of Quality policy, Objectives and Measures. 7. Re-define the Resource Management to measure competency of all the staff and demonstrate improvements in the competency through HRD 8. Quality Manual development and finalization. 9. Internal auditors training for reporting non-conformities in Quality System. 10.Conduct Internal Audits and fine-tune the system. 11.Monitor implementation through Management Review meetings. 12.Application to the certification agency. 13.Pre-assessment audit by certification agency (Optional). 14.Compliance audit by certification agency. 15.CERTIFICATION.

 ISO 9001 certification is granted after audit by a number of certification agencies. There are a number of foreign agencies operating world wide providing ISO 9001 certification. These are DNV, BVQI, ISOQAR, KPMG, TuV, SAQAS, etc. There are also Indian agencies granting certification, these are BIS and STQC. Guidance shall be given to client in selecting the certification agencies at appropriate time of the ISO 9001 activities. In principle if we narrow down on the Certification agencies, quotations may be obtained and finalized. The cost of certification charged by the certification agencies depends on the size and area of operation to be covered. The cost of certification fees charges depends from Agencies to agencies and includes Registration fees Certification audit fees Surveillance audit fees Based on the activities carried out in the Institute, the scope of certification has to be defined and certificate issued accordingly.

3. FAILURE MODE EVALUATION ANALYSIS (FMEA)

A Failure mode and effects analysis (FMEA) is a procedure for analysis of potential failure modes within a system, either for the classification by severity or determination of the failures' effect upon the system. It is widely used in the manufacturing industries in various phases of the product life cycle and is now increasingly finding use in the service industry as well. Failure causes are any errors or defects in process, design, or item especially ones that affect the customer, and can be potential or actual. Effects analysis refers to studying the consequences of those failures. [Failure mode: "The manner by which a failure is observed; it generally describes the way the failure occurs." Failure effect: The immediate consequences a failure has on the operation, function or functionality, or status of some item.]

 The oldest form of the FMEA is the trial and error method. FMEA was formally used by the US military and the aerospace / rocket science dept, after which it was introduced by Henry Ford as safety & regulatory consideration & to improve their production and design. The purpose of the FMEA is to take actions to eliminate or reduce failures, starting with the highest-priority ones. It may be used to evaluate risk management priorities for mitigating known threat-vulnerabilities. FMEA helps select remedial actions that reduce cumulative impacts of life-cycle consequences (risks) from a systems failure (fault). It is used in many formal quality systems such as QS-9000 or ISO/TS 16949. FMEA begins during the earliest conceptual stages of design, later it is used for process control, before and during ongoing operation of the process and continues throughout the life of the product or service.

PROCESS OF FMEA: straightforward 3 phases. Pre Work: Before starting with an FMEA, the robustness analysis and past history must be looked into through the Interface Matrices, Boundary Diagrams and Parameter Diagrams. Describe the system and its function. Which uses are desirable & which are not. Consider both intentional and unintentional uses- hostile environment. Block diagram of the system -major components or process steps and how they are related. Around this the FMEA can be developed- worksheet created. Step 1: Severity: Determine all failure modes based on the functional requirements and their effects. Examples of failure modes are: Electrical short-circuiting, corrosion or deformation. As a failure mode in one component can lead to a failure mode in another component, each failure mode should be listed in technical terms and for function. Hereafter the ultimate effect of each failure mode needs to be considered. Each effect is given a severity number(S) from 1(no danger) to 10(important), based on which the engineers prioritize. If an effect has a number 9 or 10, actions are considered to change the design by eliminating the failure mode, if possible, or protecting the user from the effect. A severity rating of 9 or 10 is generally reserved for those effects which would cause injury to a user or otherwise result in litigation.

Step 2: Occurrence In this step it is necessary to look at the cause of a failure and how many times it occurs. This can be done by looking at similar products or processes and the failures that have been documented for them. A failure cause is looked upon as a design weakness. All the potential causes for a failure mode should be identified and documented. Again this should be in technical terms. Ex: excessive voltage. A failure mode is given a probability number 1-10. Actions need to be determined if the occurrence is high This step is called the detailed development section of the FMEA process. Step 3: Detection When appropriate actions are determined, it is necessary to test their efficiency. Also design verification is needed. The proper inspection methods need to be chosen. First, an engineer should look at the current controls of the system, that prevent failure modes from occurring or which detect the failure before it reaches the customer. Identify testing, analysis, monitoring and other techniques that can have been used on similar systems to detect failures. From these controls an engineer can learn how likely it is for a failure to be identified or detected. Each combination from the previous 2 steps, receives a detection number (D). This number represents the ability of planned tests and inspections at removing defects or detecting failure modes. After this the Risk Priority Nos ( RPN ) must be calculated.

The failure modes that have the highest RPN should be given the highest priority for corrective action. recommended actions with targets, responsibility and dates of implementation are noted. The FMEA should be updated whenever: At the beginning of a cycle (new product/process) Changes are made to the operating conditions A change is made in the design New regulations are instituted Customer feedback indicates a problem Uses of FMEA Development of system requirements that minimize the likelihood of failures. Development of methods to design and test systems to ensure that the failures have been eliminated. Evaluation of the requirements of the customer to ensure that those do not give rise to potential failures. Identification of certain design characteristics that contribute to failures, and minimize or eliminate those effects. Tracking and managing potential risks in the design. This helps avoid the same failures in future projects. Ensuring that any failure that could occur will not injure the customer or seriously impact a system.

 Advantages Improve the quality, reliability and safety of a product/process Improve company image and competitiveness Increase user satisfaction Reduce system development timing and cost Collect information to reduce future failures, capture engineering knowledge Reduce the potential for warranty concerns Early identification and elimination of potential failure modes Emphasis problem prevention Minimize late changes and associated cost Catalyst for teamwork and idea exchange between functions FMEA can be used in diff types for the diff industries.

2. QUALITY FUNCTION DEPLOYMENT

Quality Function Deployment, or QFD, is a tool that helps in improving the existing processes by focusing energy and attention on efforts that will ensure the greatest result. QFD was developed to bring a personal interface to modern manufacturing and business & bridge the growing distance between producers and users. QFD works by first identifying and prioritizing customer requirements and expectations. This information can be used to focus with greater confidence on the important customer requirements as a starting place to define such things as product requirements, design features, manufacturing processes or support requirements.

 implements elements of Systems Thinking with elements of Psychology and Epistemology (knowledge). QFD provides a system of comprehensive development process for: Understanding customer needs What 'value' means to the customer Understanding how customers or end users become interested, choose, and are satisfied Analyzing how do we know the needs of the customer Deciding what features to include Determining what level of performance to deliver Intelligently linking the needs of the customer with design, development, engineering, manufacturing, and service functions Intelligently linking Design for Six Sigma (DFSS) with the front end Voice of Customer analysis and the entire design system

 QFD helps organizations seek out both spoken and unspoken needs, translate these into actions and designs, and focus various business functions toward achieving this common goal, empowering organizations to exceed normal expectations and provide a level of unanticipated excitement that generates value. The QFD methodology can be used for both tangible products and non-tangible services, including manufactured goods, service industry, software products, IT projects, business process development, government, healthcare, environmental initiatives, and many other applications.

 Implementation: Define the project.- with intended results. Create the team Get buy-in commitment from all members Define customer expectations.- perceive as the customer will think / expect. Define the requirements that will satisfy your customers expectations how to satisfy their requirements. Develop the first relationship matrix. -compare each customer expectation against list of identified product or

service requirements .

Check your work reality survey with customers. Prioritize your requirements Establish targets. Construct the QFD set of matrices - generates a list of the important process characteristics that must receive special attention to ensure that design features are met.

1. NEW 7 QC TOOLS OF MGMT

In 1976, the Union of Japanese Scientists and Engineers (JUSE) saw the need for tools to promote innovation, communicate information and successfully plan major projects

. A team researched and developed the seven new quality control tools, often called the seven management and planning (MP) tools, or simply the seven management tools. Not all the tools were new, but their collection and promotion were.
The seven MP tools, listed in an order that moves from abstract analysis to detailed planning, are: Affinity diagram: Relations diagram: Tree diagram:

Matrix diagram:
Matrix data analysis Arrow diagram Process decision program chart (PDPC):

Affinity dig: Large vol of data are gathered and organized. Ideas, opinions and facts relating to a problem are grouped. A sequence / pattern formation is the main aim. Mostly used in addressing customer dissatisfaction issues. tools for verbal data. Relations diagram: Also called as Inter relationship diagram. Relationships between diff causative factors & main issue are established.- identifies causes which cause problems. Solves problems on the basis of logical analysis and linkages with the prob. Tree Diagram: tool for non numerical data. shows the relationships between an issue and its component elements. Tool for operational planning & initial diagnosis of issues. final chart shows steps from the initial problem to the final problem in a sequential development.

 Matrix diagram : consists of a set of rows & columns. The intersection of the rows & columns are checked for determining the nature & strength of the problem helps in arriving at key ideas & effective way of perusing & solving the issue. ideas are conceived on a 2 dimensional basis. Matrix data analysis: Also known as principal component analysis. It is a multi variate analysis technique. Quantifies & arranges data, presented in a matrix dig to find general indicators that differentiate & give clarity to a large no of complexly intertwined info. The L-shaped matrix, a prioritization matrix uses pairwise comparisons of a list of options to a set of criteria in order to choose the best option(s).

 Arrow diagram : Tool to plan the most appropriate schedule for the completion of a complex task & its related sub tasks. It projects the likely completion time & monitors all sub tasks for adherence to necessary schedule. The total task/ work is broken down into sub tasks. The sub tasks & the total work are linked together by arrows & a dig is constructed to depict the activities. Projects. Process decision Program Chart (PDPC): Method which maps out conceivable contingencies & events that can occur in any implementation plan along with appropriate counter measures, Qualitative tool - Plans each possible tool of events, that needs to occur when the problem / goal is an unfamiliar one. It is used when ; 1. task on hand is new/ unique. 2. Implementation plan has sufficient complexity. 3. Consequences of failure are severe. 4. Efficiency of implementation is crucial. 5. Contingencies must be planable.