BMGT 26

TOTAL QUALITY MANAGEMENT

 CONTINUOUS
PROCESS
IMPROVEMENT
 There are three regions, chronic waste, quality
improvement and new zone of quality control. Quality
planning is completed before the operations begin.
Quality control is helpful to keep the fire under control.
The defects have emanated due to defects in quality
planning. To reduce the high level of defects, the
organization initiates quality improvement which
decreases the defect level. Juran’s quality trilogy
should be applied to improve quality at periodic
intervals. Thus, it is useful for continuous
improvement of quality. Therefore, the organization
should initiate quality improvement efforts on a
continuing basis and update quality planning.
 TABLE 8.1 IMPROVEMENT WITHOUT CAPITAL INVESTMENT

 Productivity improvement of 40 percent

 Work in progress (WIP) reduction of 70 percent
 Machine set up time reduction of 30 percent
 Space reduction for manufacturing by 40 percent and no
additional capital investment
This is the result of Kaizen. Kaizen is a Japanese word. It
means gradual, orderly and continuous improvement. Kaizen
does not need any capital investment, but it requires time and
efforts and every employee in the organization, right from the
top management. Continuous improvement is achieved through
improving the current way of manufacturing and eliminating
waste. Kaizen is a Japanese strategy for continuous
improvement. Kaizen succeeded because it is a good
management practice.
Two Activities of Kaizen
Kaizen comprises the following two activities, carried out
simultaneously:
 Maintainance

 Improvement

An organization functions with a set of processes.

Maintenance involves activities directed at maintaining
current technological, managerial, and operating standards.
While efforts are going on for improving the processes, the
present activities should continue as per the current
standards without any interruption. It should not come to a
halt. Kaizen involves small, continuous improvements of the
current processes. Thus, an organization will be involved in
two distinct activities simultaneously namely, maintenance
and Kaizen.
TABLE 8.2 KAIZEN ACTIVITIES
 Finding new ways or improving the ways in which the tasks are currently carried
out
 Improving working environment
 Improving processes
 Improving capability of machinery through periodic as well as preventive
maintenance
 Improving usage of tools and fixtures
 Improvement of human resources through training and job rotation
 Improving plant layout
It is the primary responsibility of the factory workers to maintain the
existing system. The top management and the middle management make
efforts in finding out improvement opportunities. The supervisors will also
participate in Kaizen efforts but their main responsibility will be to maintain the
current system. While the workers and the supervisors concentrate on
maintaining the current status and production, middle management and the top
management have to take keen interest in the following activities towards
Kaizen:
 Maximizing efficiency and productivity of employees as well as the plant
 Improving the quality of the processes, plant and thereby the product
 Minimizing inventory levels and Work In Progress (WIP) – (WIP means that
making the product has started but not finished due to some reasons, beyond
the control of the organization)
 Improving ergonomics to facilitate the human resources to maximize their
output with more comfort
 Call for suggestions from workers
 Enabling team work
 Improving systems in the organization

Three Basic Principles of Kaizen

There are essentially three basic principles of Kaizen.
(i) Work place effectiveness
(ii) Elimination of waste, strain and discrepancy
(iii) Standardization
Work place effectiveness Japanese have developed the
5S tools for addressing the workplace effectiveness
which will be discussed later in detail in this chapter.
Eliminating waste, strain and discrepancy Kaizen is
achieved through application of 5S tools for workplace
effectiveness and elimination of three MUs. The three
MUs stand for three Japanese words as given below
Table 8.3.
Table 8.3 Three MUs and their meaning
1 Muda Waste
2 Muri Strain
3 Mura Discrepancy
 The wastes are not free, but have been paid for by the organization,
since those who produce wastes also get paid in the managerial wasted
costs money. Therefore, one has to minimize and ultimately eliminate the
waste in an organization. The waste, strain and discrepancy in respect of
the following are to be reduced and finally eliminated.
 Human resources
 Production volumes
 Inventory (materials)
 Time
 Working space
 Machinery
 Techniques
 Facilities
 Tools and Jigs
 Thinking
Standardization Kaizen stresses standardization of processes, materials,
machinery, etc. with the following objectives:
 Represents the best, easiest and safest way to carry out a job in the form
of operating procedures and work instructions
 Represents the best way to preserve know-how and expertise and
standardize the procedures for the same
 Evolve effective means to measure performance and standardize the
same
 Standardize all the procedure that are used in the organization for
maintenance and improvement of process
 Standardize the training programs

 Standardize the audit for diagnostic problems

 Standardize the procedures for preventing occurrence of errors and

minimizing variability
Thus, Kaizen consists of three basic principles namely the application of 5S
for improving workplace effectiveness and simultaneously reducing and eliminating
three MUs as well as standardization of methodologies.
PCDA AND 7 QUALITY TOOLS
Kaizen advocates usage of seven quality tools for problem
solving. It also calls for using PCDA cycle for improvement of
processes. It encourages forming cross-functional teams for
improvement. The team should identify improvement
opportunities and implement them by following the PCDA
cycle for effectiveness. This will facilitate effective
implementation for improvement.
GOAL OF KAIZEN
The goal of Kaizen should also be clearly understood. They are
given in 8.4.
 Table 8.4 Goal of Kaizen
• Kaizen is implemented not for profit
but for quality. Unless an organization
improves quality, it cannot prosper.
• The success of Kaizen should be
measurable through its impact on the
customer satisfaction
• Kaizen will be successful only when it
is process oriented
• It is important to recognize that any
organization will have problems and
hence the employees should be
encourage to admit when there is a
problem
• A suggestion system is an integral part
of Kaizen. The management should
encourage the employees to give
suggestions and their involvement in
improvement process
• Kaizen should be prioritized based on the
impact on the customers. Thus, Kaizen is a
customer driven strategy for improvement.
• Kaizen is a problem-solving tool based on
cross-functional team and collaborative
approach
• Kaizen is basically for improving the
processes in the organization
• Collaboration between the cross-
functional team, the process owners (those
who carry out the job regularly) and the
management is essential for success of
Kaizen.
• Quality Circles can become part of Kaizen
since it is a group oriented suggestion
system
Kaizen Implementation
The organizations embrace Kaizen in two ways as given below:
(i) Gradual improvement of processes
(ii) Kaizen Blitz

Kaizen Blitz on the contrary, is a quick improvement methodology. A large

number of organizations embark upon Kaizen Blitz (events) to unleash
employee creativity and dramatically improve the operations overnight.

Whether it is a Kaizen Blitz or Kaizen in the traditional sense, it

involves the following:
 Application of 5S for improving the workplace effectiveness
 Reduction and finally elimination of three MUs
 Standardization of effective methodologies for carrying out the work
A typical improvement process using Kaizen is indicated in Fig. 8.2:

Start

Select process for

improvement

Study process
flowchart

Identify problems
and wastes

Apply 5S for
workplace

Remove 3 MUs

Revise
standardized
methodologies
Figure 8.2 Applying Kaizen
KAIZEN BLITZ-BENEFITS
Table 8.5 Benefits of Kaizen Blitz
Criteria Before After % Improvement
VA Ratio 0.2% 3.5% 94%
WIP 1044 150 85%
Manufacturing 305 m2 252 m2 17%
Set Time 70 mins. 45 mins. 35%
Lead Time 13 days 0.6 days 95%
Distance Turn/Drill 35 m 4.5 m 87%
Travelled Drill/Weld 186 m 20 m 89%
Turn/Weld 160 m 5m 96%
Weld/Test 10 m 4m 60%
Transactions 82 0 100%
Worldwide Business Solutions
5S PRACTICES
Kaizen is a carefully evolved strategy by Japanese for improved
competitiveness of business. It is more than just a tactical weapon. It is also
a collection of tools. The Kaizen toolbox includes the 5S for improving
workplace effectiveness. 5S is rather than a management tool focused on
fostering and sustaining high quality housekeeping.
The 5S practices are:
(i) Sort

(ii) Straighten

(iii) Scrub

(iv) Systematize

(v) Standardize

The Japanese equivalent names for the five practices start with the
alphabet ‘S’. Thus, these are known as 5S practices.
 TABLE 8.6 5S TOOLS
1. Seiri (sort) Separate out all unnecessary things and eliminate them.
2. Seiton (straighten) Arrange the essential things in order, so that they can be easily accessed.
3. Seiso (scrub) Keep machinery and working environments clean.
4. Seiketsu (systematize) Make cleaning and checking as a routine practice.
5. Shitsuke (standardize) Standardize the previous four steps.

1. Seiri – Sort
The objective of Seiri is to sort and throw away unnecessary items.
separate tools, machinery, products, inspections, work in progress, and documentation
into necessary and unnecessary and discard unnecessary items.
2. Seiton – Straighten
The purpose of this tools is to arrange necessary items in a neat, proper manner so that
they can be easily retrieved for use and to return them to their proper locations after use.
3. Seiso – Scrub
The objective of Seiso tool is to clean and inspect the respective work places thoroughly,
so that there is no dust on the floor, machinery and equipment. Keep machinery and work
environment clean.
4. Seiketsu – Systematize
The objective of this tool is to maintain high standards of workplace organization by
keeping everything clean and orderly at all times. Develop routine practices for cleaning
and checking.
5. Shitsuke – Standardize
The objective of the last 5S tools is to make the previous four steps part of
the daily routine and to observe self-discipline through continuous practice.
Follow procedures and standardize continuously to improve processes and
reestablish standards.
THE SEVEN DEADLY WASTES
Waste cannot be totally eliminated but can be reduced to the minimum. Toyota, the
Japanese automobile manufacturer, identified the following seven types of wastes as
the most common in industries.
 Waste from overproduction
 Waste of waiting time
 Transportation waste
 Processing Waste
 Inventory waste
 Waste of motion
 Waste from product defect
BUSINESS PROCESS REENGINEERING (BPR)
What is BPR?
BPR is undertaken essentially to result in a quantum jump in performance
of processes. BPR is synonymous with innovation because it is more than
just automating or applying Information Technology to the existing processes
or operation.

BPR is the “fundamental rethinking and radical redesign of business

processes to achieve dramatic improvement in critical, contemporary
measures of performance, such as cost, quality, service and speed”.