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Design
Manufacturing
Sales
Assembly
Testing
Despatch
Sales
Product user
Elements of TQM
7.1 Top management commitment
Management responsibility
Support all TQM activities
Appointment of management representative
Customer feedback and complaints
Quality reviews
Shareholder delight
7.2
Elements of TQM
7.3 People based management
Elements of TQM
7.4 Management by fact
Process orientation
Measurement, Observation, Experimentation
7.5
Continuous improvement
PDCA Cycle
4. Act
Institutionalize
improvement;
continue cycle.
How to improve
next time?
1. Plan
Identify problem
and develop
plan for
improvement.
What to do?
How to do?
3. Study/Check
2. Do
Assess plan; is it
working?
Implement plan
on a test basis.
Do as planned
Do
Definition of
problem
Analysis of
Problem
Identification
Of causes
Planning
Countermeasures
Implementation
Check
Confirmation
Of result
Action
Standardization
Elements of TQM
7.6 Appropriate technology
JIT
Automation
Fool proofing
TPM
7.7
Elements of TQM
7.10 Quality Function deployment
Identify customer expectations
Derive measurable parameters
Set standards for these
7.11 Monitor
variability in parameters
7.12 Move towards zero variability
7. Elements of TQM
7.13 Institute all pervasive system
ISO 9001:2000
TS 16949
ISO 14000 series, ISO 14001
7.14
Supplier Control
Elements of TQM
7.15 Reduce cost of quality
Internal failure
External failure
Appraisal
Prevention
7.16 Developing a quality culture
Change in mind set
Being proactive
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Cost of
uality
%
50
40
30
20
10
Factory Data
Defect Reports
Labor Hours
Recode/Redesign
Customer Complaints
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Percentage of
Sales Dollar
Cost of
uality
Iceberg
Bugs
Returned Goods
Recode
Defects
Warranty
Costs
Product Liability
Quotation Errors
Missed Deadlines
Complaint Handling
Bad Market Reviews
Interface
Errors
Configuration Errors
Help Desk
Process Slowdown
Poor Documentation
Training
Field Service
Lost Market Share
Software Patches
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Cost of
uality
YES
PREVENTION
YES
APPRAISAL
NO
Is Cost related to
Evaluating the
Conformance ?
NO
Is Cost related to
Non-conformance ?
NO
Not a Quality Cost
INTERNAL FAILURE
YES
Is Non-Conformance
found prior to
Shipment ?
YES
NO
EXTERNAL
FAILURE
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Cost of
uality
Examples of
Elements
PREVENTION
Design Quality Progress Reviews
Requirements Documentation
QA Training
Process Engineering
INTERNAL FAILURE
Recode/Repair Labor
Defect Tracking & Reports
Requirement Changes
Down Equipments
APPRAISAL
Unit Testing
Regression Testing
Automated Test Tools
User Interface Reviews
EXTERNAL FAILURE
Returned Goods
Liability Costs
Help Desk
Lost Sales/Market Share
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Cost of
uality
Strategy Premise
The Strategy is based on the premise that:
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Cost of
uality
Appraisal
Prevention
Total Sales
Internal
Failures
Cost of
Quality%
External
Failures
TOTAL SALES
C O Q (Rs.Rs.Rs.)
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COST OF QUALITY
OPTIMUM QUALITY COST MODEL
COST/ GOOD UNIT
OPTIMAL
POINT
TOTAL
COST
FAILURE
COSTS
% GOOD
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100
Japanese factory
(Target-oriented)
LSL
Target
USL
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U.S. factory
(Conformanceoriented)
Benchmarking
How
Benchmarking
Benchmarking
concept
What are others
Performance levels?
How did they get there?
What is our
Performance level?
How do we do it?
Creative
Adaptation
Breakthrough
Performance
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Benchmarking
Implicit
Benchmarking
requires that managers understand
why their performance differs.
Bench markers must develop a thorough and indepth knowledge of both their own processes and
the processes of the best-in-class organization.
An understanding of the differences allows the
managers to organize their improvement efforts to
meet the goal.
Benchmarking is about setting goals and about
meeting them by improving processes.
Benchmarking
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Benchmarking Process
Decide
what to benchmark
Understand current performance
Plan
Study others
Learn from the data
Use the findings
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Benchmarking Process
Decide
what to benchmark
Think about the critical success factors and the
mission.
Which processes are causing the most trouble?
Which processes contribute most to customer
STANDING IN THE
MARKETPLACE
Weight
Company X
Competitor A
Safety
Performance
Quality
Service
Ease of
Use
Reliability
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Competitor B
STANDING IN THE
MARKETPLACE
Company X
Greeting with a
smile
Processing
transactions
without error
Easy to read and
understand bank
statements
Prompt response
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Competitor
A
Competitor B
STANDING IN THE
MARKETPLACE
Weightage
Comparison to competition %
Superior
Quality of
equipment
Quality and
availability of
spare parts
Quality of field
repair service
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Competitive
Inferior
Types Of Benchmarking
Internal
1.
Competitive
2.
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Types Of Benchmarking
3.
Process.
Types Of Benchmarking
3.
Process.
<Examples>
Southwest Airlines benchmarked turnaround
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Benchmarking Process
Identifying
companies.
Hierarchy of best practices
World Class
Any organization, India
Industry-wide, Sector-wide
Competitor
Internally
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Benchmarking Process
Studying
Others
Benchmarking Process
Learning
Is
Benchmarking Process
Using
Two
the findings
Benchmarking Process
Using
the findings
Specify tasks
Sequence tasks
Determine resource needs
Establish task schedule
Assign responsibility for each task
Describe expected results
Specify methods for monitoring results
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of QFD:
Improves customer satisfaction
Defines requirements in a set of basic needs and
implementation time
of QFD:
Promotes team work
Horizontal deployment of communication channels
Avoids misinterpretation, opinions and miscues.
Provides
documentation
created.
Serves as a training tool for new engineers.
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Voice of Customer
Unsolicited
Solicited
Qualitative
Quantitative
Random
Structured
Trade visits
Customer visits
Consultants
Focus groups
Customer Complaint reports; lawsuits
Customer surveys; market
surveys; trade trials;
customer audits; product
purchase (buy back) survey
of customer:
What does the customer really want?
What are the customers expectations?
Are the customers expectations used to
drive the design process?
What can the design team do to achieve
customer satisfaction?
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of customer:
Once the customer expectations and needs
have been identified and researched, QFD
team processes the information.
The Affinity diagram is ideally suited for
most QFD applications.
QFD team:
Designing a new product
Improving an existing product
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team
Team
Affinity Diagram
Gathers large amount of data and organizes data into
groupings based on their natural interrelationships.
Used when thoughts are too widely dispersed or
numerous to organize
New solutions are needed
Steps
Phrase the objective
Record all responses
Group the responses
Organize groups in an affinity diagram
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Engineering changes
Insufficient training
Overcrowded dock
Error on bill of lading
Computer crashes
Facilities
Overcrowded dock
No place for returns
People
Insufficient training
Teams not used
Shipping turnover
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System
Computer crashes
Engineering
changes
Error on bill
of lading
House of Quality
The
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Interrelationship between
technical descriptors
Relationship between
requirements and descriptors
Prioritized customer
requirements
Customer requirements
Technical descriptors
(voice of the organization)
(Fig A)
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Process
features
Product
features
Customers
Customers
needs
Customers
needs
Product
features
Process
features
Process
Control
features
Correlations entered
In squares like:
Strong positive, positive,
Negative,
Strong negative
Technical
requirements
Paper
width
Paper
thickness
Coating
thickness
Tensile
strength
Paper
color
X = Us
Importance
to customer
A = Competitor A
B = Competitor B
( 5 is best)
1 2 3 4 5
Customer
requirements
Relationships
Strong=9
Medium = 3
Small=1
Competitive
evaluation
Paper will
not tear
Consistent
finish
No ink bleed
Prints clearly
A B
A X B
B A
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X AB
Correlations entered
In squares like:
Strong positive, positive,
Negative,
Strong negative
Technical
requirements
Peper
width
Paper
thickness
Coating
thickness
Tensile
strength
Paper
color
X = Us
Importance
to customer
A = Competitor A
B = Competitor B
( 5 is best)
1 2 3 4 5
Customer
requirements
Relationships
Strong=9
Medium = 3
Small=1
Importance
weighting
27
36
27
Target Values
W:mm
T: mm
microns
Kg per sq
cm
Approved
panel
Technical
evaluation
Competitive
evaluation
5
4
3
2
1
B
X
A
A B
A X B
B A
A
X
B
B
A
X
A
X
B
J.M.Pant, Faculty
X
B
A
X AB
Conventional
TQM way
Meet specifications
MBO
Kaizen (continuous
improvement)