DM Book 2014 Final PDF

Daily
CAPA
SOP
FMEA
2x2 Matrix
Roles & Objectives

ControlProcess
Control Chart
KPI Monitoring
Process Flow
Conformity
Stability
Abnormality
Analysis
Control Plan
Deviation
X Bar Chart
Visual Workplace
Management
Disclaimer
The information or the data provided in the book is solely the company`s
copyright. The Daily Management book is designed to provide information on
the subject only to Tata Steel employees.
This book has not been created to be specific to any individual's situation or
needs in relation to Daily Management. Every effort has been made to make
this book as accurate as possible. However, there may be typographical and
or content errors. Therefore, this book should serve only as a general guide
and not as the ultimate source of subject information. This book contains
information that might be dated and is intended only to educate our
employees.
Any unauthorized re-printing, copying or re-production of this book will
constitute an infringement of copyright.
DAILY MANAGEMENT
A Comprehensive Implementation Guide
(Revision 4, February14)
TOTAL QUALITY MANAGEMENT
FOREWORD
Tata Steel became the first integrated steel plant outside Japan to win the 'Deming Grand prize in 2012'- yet
another milestone in our pursuit for excellence. While the journey was not an easy one, it was indeed quite
enriching and a great learning experience.
During the course of our improvement journey, we have been successful in 'creating islands of excellence' and
now we need to uniformly deploy the best practices across the organization. While we have been successful in
deploying a standardized Daily Management system across the organization, we now need to move to the next
level of maturity. We need to now inculcate the systematic approach of carrying out routine jobs through
implementation of SOP based work culture, visual workplace management and infrastructural support in the
form of IT enablement.
Daily Management, often called 'No-hero's job' is fundamental of TQM. For sustenance of business
performance, it is imperative that the TQM way of Daily Management activities be embedded in our work
culture. A systematic deployment of Daily Management needs a lot of sincere and continuous efforts at all
levels of the organization. All of us have experienced the power of Daily Management- its ability to engage
people and significantly impact the business performance in the long run. Hence we need to pursue its
implementation with lots of perseverance.
It gives me immense pleasure to know that TQM department is publishing the fifth edition of the book on Daily
Management with an objective of strengthening and sustaining the Daily Management system of our
organization. The book has been revised incorporating various inputs from our learning during the DGP journey,
to feedback from consultants and DGP examiners.
I am sure that this book will be helpful in further improving our understanding of the Daily Management
concepts and deployment of the same across the organization.
Anand Sen
President TQM & Steel Business
Contents
Chapter
Page No.
Objective of the Book
1.0 Overview of Total Quality Management

1.1 History of Total Quality Management
1.2 Total Quality Management at Tata Steel
1.3 Key principles of Daily Management
1.4 Linkage of Policy Management, Daily Management and Problem Solving Task Achieving
2
6
12
17
2.0 Important elements of Daily Management Implementation

2.1 Planning for Daily Management
2.1.1 Establishing Ownership: Defining Roles & Objective
2.1.2 Capturing Customer Requirement
2.1.2.1 Memorandum of Understanding
2.1.2.2 Charter of Agreement
2.1.2.3 Voice of Customer
2.1.3 Understanding & Visualizing the Process Mechanism
2.1.3.1 Process Flow Chart
2.1.3.2 Management System Chart
2.1.4 Visualizing the Cause and Effect relationship between the process parameters using
KPI Drill Down
2.1.5 Priortizing Using Failure Mode & Effect Analysis
2.1.5.1 Process FMEA
2.1.5.2 Design FMEA
2.1.5.3 Equipment FMEA
2.1.6 Developing the Control Plan & KPI Tracker
2.1.7 Standardisation
20
20
21
21
23
23
24
24
26
29
2.2 Implementating Process Control

2.2.1 Overview on Process Analysis & Process Control
2.2.2 Statistical approach in Process Control
2.2.2.1 Data collection & sampling
2.2.2.2 Histogram
2.2.2.3 Cause & Effect Diagram
2.2.2.4 Scatter diagram
2.2.2.5 Check Sheet
2.2.2.6 Stratification
2.2.2.7 Pareto Diagram
2.2.2.8 Control Chart
2.2.3 Types of Control Chart
2.2.3.1 Individual Moving Range Chart
2.2.3. 2 X bar R chart
2.2.3.3 p Chart
2.2.3.4 pn Chart
2.2.3.5 c Chart
2.2.3.6 u Chart
2.2.4 Application of Control chart
2.2.5 Using Control Chart for Analysis
2.2.5.1 Subgrouping
2.2.5.3 General points concerning analysis
59
59
61
62
64
67
68
70
72
72
73
75
76
80
83
86
88
89
92
93
93
95
95
34
36
43
43
50
52
Contents
Chapter
Page No.
2.2.5.4 Procedure for analysis in preparation for Process Control

2.2.6 Using Control Chart for control
2.2.7 Interpreting the Charts
2.2.8 Updating Control chart Limits
2.2.9 Process Capability
2.3 Abnormality Analysis
2.3.1 Abnormality Analysis Framework
2.3.2 Watanabe analysis
2.3.3 Root Cause Failure Analysis
2.3.4 Implementing CAPA on identified abnormalities
96
97
99
103
104
109
109
113
114
115
2.4 Reviewing Daily Management implementation

2.4.1 Review of Daily Management Implementation
2.4.1.1 Visualizing the KPIs monitored through Control chart on 2X2 Matrix
2.4.1.2 Process of reporting KPIs in 2X2 Matrix on Stability & Conformity
2.4.1.3 Visualizing the KPIs monitored through Trend chart on 2X2 Matrix
2.4.2 Evaluating maturity of Implementation of Daily Management
116
116
116
117
119
121
3.0 DM Deployment in various Functions & Process Flow (Includes case studies)
3.1 Daily Management in Operation Function
3.2 Daily Management in Maintenance Function
3.3 Daily Management in Services Function
124
146
168
Annexures
I Visual Management
180
II Adjusted Process
187
III Change Management
196
IV Frequently Asked Questions
203
V Daily Management Formats

1.0 Roles and Objective
2.0 Process Flow Chart
3.0 Process Failure Mode and Effect Analysis
4.0 Control Plan
5.0 KPI tracker
6.0 Management System Chart
7.0 Corrective and Preventive Action
8.0 Memorandum of Understanding
9.0 Qualitative feedback from customers
10.0 Abnormality Analysis Framework
11.0 Charter of Agreement
12.0 Root Cause Failure Analysis
13.0 Watanabe Analysis
14.0 Equipment Failure Mode and Effect Analysis
15.0 KPI tracker for Maintenance
16.0 Calculation of Maintenance Performance KPIs
209
210
211
212
213
214
1
215
216
217
218
219
220
221
222
223
224
Objective of the book
Objective of the book

Daily Management was introduced in our company in the year 2006. Since then a standardized process for
implementing Daily Management concepts at various functions e.g. Operations, Maintenance and Services
have been developed and implemented across the organization. Some customized processes such as Adjusted
Process, Change Management also have been developed and implemented. Regular assessment of Daily
Management deployment by our internal assessors as well as external consultants and examiners has shown a
clear sign of initial success bringing stability to many of the process parameters.
While the basic systems are in place, we as an organization now need to move to the next level of Daily
Management implementation by focusing on shop floor visualization, SOP based work culture and recurrence
prevention activities.
The Daily Management book is a comprehensive implementation guidebook which will help people in
understanding the concepts and also guide them in implementing the same. To fulfill this purpose, the book
has been divided into three parts- a) Introduction to TQM and Daily Management b) The PDCA approach of
implementing Daily Management i.e Planning the system, implementing it and reviewing it and c) DM
deployment in various function viz operations, maintenance and services. Examples and case studies have
been included in order to explain the concepts better. The common queries regarding DM implementation has
been compiled in a separate section. Inputs on sampling and 7 QC Tools have been included in the chapter on
Process Control as these tools are helpful in analyzing the process and designing the Daily Management
system.
TQM Department hopes that this edition of DM book will be useful for Daily Management practitioners and will
help us in our journey of internalizing the practices in our daily work.
We would like to acknowledge and thank CRM Maintenance team, FP Planning,LD2 and SC, ITS, NBM and WRM
for the support and inputs provided by them.
Total Quality Management

Tata Steel
Chapter 1
Overview of Total Quality Management
History of Total Quality Management
1.1 History of Total Quality Management

Total Quality Management (TQM) has evolved from the quality assurance methods that were first developed
around the time of the First World War. The war effort led to large scale manufacturing efforts that often
produced poor quality. To help correct this, quality inspectors were introduced on the production line to ensure
that the level of failures due to quality was minimized. The roots of TQM can be traced back to early 1920s
when statistical theory was first applied to product quality control. This concept was further developed in Japan
in the 40s led by Americans, such as Deming, Juran and Feigenbaum. The focus widened from quality of
products to quality of all issues within an organisation which was the start of TQM. The evolution of TQM can be
explained through the Table1.1 given below:
Table 1.1 : Evolution of TQM
1920s
1930s
1950s
1968
1980
onwards
?
Some of the first seeds of quality management were planted as the principles of
scientific management swept through U.S. industry.
?
Businesses clearly separated the processes of planning and carrying out the plan, and
union opposition arose as workers were deprived of a voice in the conditions and
functions of their work.
?
The Hawthorne experiments in the late 1920s showed how worker productivity
could be impacted by participation.
?
Walter Shewhart developed the methods for statistical analysis and control of
quality.
?
W. Edwards Deming taught methods for statistical analysis and control of quality to
Japanese engineers and executives.
?
Joseph M. Juran taught the concepts of controlling quality and managerial
breakthrough.
?
Armand V. Feigenbaum s book Total Quality Control a forerunner for the present,
understanding of TQM, was published.
?
Philip B. Crosby s promotion of zero defects paved the way for quality improvement
in many companies.
?
The Japanese named their approach to total quality companywide quality control.
Kaoru Ishikawas synthesis of the philosophy contributed to Japans ascendancy as a
quality leader.
?
Western companies started to introduce their own quality initiatives. TQM,
developed as a catchall phrase for the broad spectrum of quality -focused strategies,
programmes and techniques during this period, became the centre of focus for the
western quality movement. Quality standards such as the ISO 9000 series and quality
award programs such Malcolm Baldridge National Award based on principles of
TQM established
1.1.1 Quality in Japan

In the 1940s, Japanese products were not perceived as quality products as it is today. Japanese industrial
leaders recognised this problem and aimed to produce innovative, high quality products. They invited a few
quality gurus, such as Deming, Juran, and Feigenbaum to learn how to achieve this aim.
Edward Deming suggested that they could achieve their goal in five years; not many Japanese believed him.
However, they followed his suggestions and never looked back.
In the 1950s, quality control and management developed and quickly became the main theme of the Japanese
management. The idea of quality did not stop at the management level. Quality circle concept started in the
early 60s. A quality circle is a volunteer group of workers who meet and discuss issues to improve any aspects
related to the workplace, and make presentations to management with their ideas.
A by-product of quality circles was employee motivation . Workers felt that they were involved and heard.
Another by-product was the idea of improving not only quality of the products, but also every aspect of
organisational issues. This probably was the start of the idea, Total Quality.
1.1.2 Evolution of Total Quality Management
The different stages of Total Quality Management can be defined as
(a)
Quality Inspection Stage
(b)
Quality Control Stage
(c)
Quality Assurance Stage
(d)
Total Quality Management Stage
a) Quality Inspection stage

Quality management started with simple inspection-based systems. Under such a system, one or more
characteristics of a product are examined, measured or tested and compared with specified requirements to
assess its conformity. This system is used to appraise incoming products, manufactured components and
assemblies at appropriate points in the production process. It is undertaken mainly by staff employed
specifically for this purpose. Products which do not conform to specification may be scrapped, reworked or sold
as lower quality items. In some cases, inspection is used to grade the finished products. The system is an afterthe-fact screening process with no prevention content other than, perhaps, the identification of suppliers,
operations or workers manufacturing non-conforming products. Simple inspection-based systems are usually
wholly in-house and do not directly involve suppliers or customers.
b) Quality Control Stage
Under a system of quality control, product testing and documentation control became the ways to ensure
process control and reduced non-conformance.Typical characteristics of such systems were performance-data
collection, feedback to earlier stages in the process, and self-inspection. While screening inspection was again
the main mechanism for preventing products which were outside the specification from being shipped to
customers, quality control measures led to greater process control and a lower incidence of non-conformance.
c) Quality Assurance Stage
The quality assurance stage came with the shifting of focus from product quality towards system quality. In this
stage, an organization sets up a system for controlling what is being done and the system is audited to ensure
that it is adequate both in design and use. A major part of this change is the use of both second-party and thirdparty audits to assess the efficiency and effectiveness of the system. The major characteristics of this stage are
the use of quality manuals, procedures, work instructions, quality planning, quality audits, etc. The
fundamental difference is that quality assurance is prevention-based while quality control is inspection-based.
d)Total Quality Management Stage

Total Quality Management stage is the highest level, involving the application of quality management
principles to all aspects of the business. Total Quality Management requires that the principles of quality
management be applied in every branch and at every level in an organization. The fundamental belief behind
this stage is that quality is not just product quality but also the quality of the whole organization, including sales,
finance, personnel and other nonmanufacturing functions.
TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance,
design, engineering, and production, customer service, etc.) to focus on meeting customer needs and
organizational objectives.
Total Quality is a description of the culture, attitude and organization of a company that strives to provide
customers with products and services that satisfy their needs. The culture requires quality in all aspects of the
company's operations, with processes being done right the first time and defects and waste eradicated from
operations.
TQM views an organization as a collection of processes. It maintains that organizations must strive to
continuously improve these processes by incorporating the knowledge and experiences of workers. The simple
objective of TQM is Do the right things, right the first time, every time. TQM is infinitely variable and
adaptable. Although originally applied to manufacturing operations, and for a number of years only used in
that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and
public sector organizations. There are a number of evolutionary strands, with different sectors creating their
own versions from the common ancestor. TQM is the foundation for activities, which include:
l
Commitment by senior management and all employees
l
Meeting customer requirements
l
Reducing development cycle times
l
Just in time/demand flow manufacturing
l
Improvement teams
l
Reducing product and service costs
l
Systems to facilitate improvement
l
Line management ownership
l
Employee involvement and empowerment
l
Recognition and celebration
l
Challenging quantified goals and benchmarking
l
Focus on processes / improvement plans
l
Specific incorporation in strategic planning
1.1.3 Evolution of TQM at Tata Steel

TQM was introduced in a formal way at Tata Steel in 1989 with a small group directly reporting to the Joint
Managing Director. This happened after the visit of Dr. J. J. Irani (then the Joint Managing Director) to JUSE,
Japan wherein he saw the changes that TQM could bring about in an organization. Initially, TQM in Tata Steel
started with providing education to all employees about 'q' and 'Q' (small q & big Q) propagated by
Dr. J. M. Juran. Since then a number of initiatives have been undertaken systematically under the TQM
4
movement. Further, Tata Steel had introduced concepts of value engineering, method improvement, work
simplification etc. as methodologies to improve performance since early 1980s. Whenever such initiatives were
introduced, appropriate training and workshops were conducted to educate the concerned persons on the
methodology.
In the early 1990s, the thrust was to get all departments certified to ISO 9000 standards. The departments
which had internal customers were certified to an equivalent internal standard (TS 13004-1). In all this it was
found that planning at the level of department as well as better coordination between departments were
needed. Hence Annual Quality Improvement Plans (AQUIP) and Memorandum of Understanding (MoU) were
started in all departments to enable them to plan, monitor progress and satisfy their internal customers.
Gradually various TQM initiatives were include in the fold as and when the need arose.
Tata Steel adopted the Tata Business Excellence Model (TBEM) framework in 1994. TBEM is based on the
Baldridge Criteria for Business Excellence. Though the oldest in
DETERMINATION
the Tata Group, Tata Steel was the first recipient of the JRD QV
Award in year 2000 a highly prestigious group award.
With the launch of 'Vision 2007' in May 2002 the company
introduced (in 2003) ASPIRE (Aspirational Initiatives to Retain
Excellence). Appropriate TQM approaches were identified for
different business strategies which were carefully articulated,
communicated and administered across the organization under
the overall unifying initiative of ASPIRE (Aspirational Initiatives
to retain excellence).
MUSTERING
RESOURCES
SELF CONFIDENCE
ACHIEVEMENT
Fig 1.1 Aspire Philosophy
Continuous improvements became embedded into the day to day work style. Marketing initiatives were further
strengthened in terms of Branding, Customer Value Management (CVM) and Retail Value Management (RVM).
CVM and RVM were the unique application in Indian steel industry undertaken to create value for our
customers. For retail products, Tata Steel set up a unique distribution system, uncommon in the steel business
in India during that time.
Tata Steel also embarked on a journey of TPM (Total Productive Maintenance), structured problem solving
process (DMAIC) and Knowledge Management program to help achieving our vision. The Autonomous
Maintenance and Planned Maintenance pillars of TPM focused on the plant health and utilization, DMAIC
process focused on solving problems and
Knowledge Management process was
used for capturing tacit knowledge for
value creation.
While implementing the ASPIRE
framework, we continued to explore the
unifying framework available elsewhere
in the world. The overall improvement
management philosophy of TQM
emerged as the unifying framework of
ASPIRE in 2006 as shown in Fig 1.2.
Fig 1.2 Integrated Improvement framework of Tata Steel

5
Total Quality Management at Tata Steel
1.2 Total Quality Management at Tata Steel

As per Japanese Union of Scientists & Engineers (JUSE), the promoter of TQM philosophy worldwide, TQM is
defined as under:
Total Quality Management is a set of systematic activities carried out by the entire organization to effectively
and efficiently achieve company objectives so as to provide products and services with a level of quality that
satisfies customers at the appropriate time and price.
In order to deploy TQM concepts at any company, the vehicles generally used are:
Policy Management
Daily Management
Cross-functional Management
Small Group Activities (Quality Control (QC) Circles +TQM Circles)
As per the TQM philosophy, a company must focus upon their customers, both internal and external, and make
customer satisfaction a primary business goal. Creation of such quality for their customers generally involves
two vehicles of management: Policy Management and Daily Management. While most of the time of the senior
leaders of a company is spent on Policy Management to steer the business in the most favorable direction while
looking at the long term strategic horizons, it is the Daily Management system which sustains the present status
of the business while continually improving it.
The relationship between Policy Management, Daily Management and Cross Functional Management
can best be understood with the help of Dr. Kanos "Boat Model (as shown in the Fig. 1.3). To succeed in a boat
journey:
a)
Every section of the boat, including the bridge, the engine room and the navigator must play their
defined role, even without directions from the captain.
b)
Various sections of the boat must function as a team. In absence of communication between the
different sections, journey in the desired direction at a consistent velocity cannot be ensured.
c)
The captain should be a strong leader, who can direct the crew, when the boat needs to change direction
or respond to environmental changes, to speed up or slow down or change direction.
d)
All the members, especially the frontline people should be highly motivated to do their jobs.
In order to take the boat in the current on-going direction, the method of Daily Management is required to
maintain and sustain the present pace of movement/progress. However, in case there is a need to change the
direction of the boat in order to achieve any long term strategic objectives, the Chief Executive Officer (CEO)
needs to adopt the Policy Management method. Typically, Policy Management activities are done for
"Changing the Business" whereas Daily Management activities are done for "Running the Business".
Fig.1.3 TQM Vehicles: Dr.Kano's Boat Model
(Copyright: Dr. N. Kano)
1.2.1 Policy Management and Daily Management

The concept of Policy Management and Daily Management can also be understood by the graph shown below
in the Fig. 1.4 which shows that all the maintenance and sustenance activities being done by continuing the
existing processes with some incremental improvements in the performance is called Daily Management.
However, if the management sets a higher level stretched performance target, this level of performance may
not be achievable with the continuation of existing processes/activities and therefore, there will be a need to
perform additional/modified activities to achieve this enhanced level of performance. These
additional/modified activities is called Policy Management.
e.g.: In case of KPI(x) a stretched target is taken to reduce it from the current level of 540 to 500. Maintaining it
at 540 will be the DM objective and reducing it to 500 will be a policy management activity.
540
Fig.1.4 Policy Management & Daily Management

7
Daily Management can be defined as "all the activities that must be carried out daily (or regularly) in each area,
in order to attain the purpose of the job efficiently. Although, in principle, these activities aim to maintain the
current status, the activities to improve the situation are also included."
Daily Management intends to look at processes and systems in an objective manner. It enables everyone in the
organization to do what is required, measure and control the performance levels in order to keep the
organization running smoothly. It also involves managing routine transactional activities, monitoring key
performance indicators (KPIs) and emphasizes the use of statistical process control (SPC), wherever applicable,
to run and continually improve the system based on standard operating procedures (SOPs). It is a very effective
process for identifying problems/deviations such that appropriate preventive countermeasures (remedies)
can be arrived at and implemented to avoid recurrence of these problems/deviations in future.
1.2.2 Daily Management- An Introduction

Daily Management comprises all the routine activities that must be carried out efficiently; while maintenance
activities are the main concern, improvement activities are also part of Daily Management.- Committee of
TQMC Managers 'course, JUSE 1989.
Daily Management is the system that provides the ability to manage Department's functions and processes
wherein processes are defined, standardized and controlled by the process owners. As a result of good daily
management deployment, the company rarely has troubles in daily work. Major operations in each
department are stabilized, through standardization and education and training. The company also makes
improvements on quality and other aspects of its business in a planned and continual manner. It reduces claims
and defect problems in the market or the succeeding processes by maintaining these at extremely low levels
and thereby improving customer satisfaction.
DAILY- Although it is called Daily Management (DM), the activity includes management of hourly, daily,
weekly, monthly, seasonal, yearly etc. jobs as applicable. For example, preparing the Annual report is an
important job, however the job itself does not greatly differ from year to year, unless vast changes are effected
in the accounting system. DM calls for management of all routine jobs at all levels e.g. jobs in front-line
operation, supervisory jobs, section manager's jobs or departmental/senior executives' jobs. In view of this,
sometimes DM is also termed as Routine Management.
DM activities can be done to control and monitor performance parameters related with production, quality,
cost, delivery, safety, morale etc. and for doing this, any improvement tools/initiatives can be used, as depicted
in the Fig. 1.5 (a) below.
Fig.1.5 (a) Improvement Tools/Initiatives for effective DM

8
1.2.3 Importance of Daily Management

The end results expected from daily management are:
a.
Consistent and high quality of products with reduction in defects
b.
Better understanding of process capability and process variability
c.
Stable and predictable operations - consistent quality, timely delivery, better safety etc.
d.
Develop a culture of fact-based continuous improvement
e.
Attitudinal change (Next process is my customer)
f.
Better understanding of cause-effect correlating process with product/service
For any company to be in its journey of continuous improvement, both the policy management and daily
management activities are important. Where the policy management activities helps in achieving a newer and
better level of performance through breakthrough improvement, daily management activities helps in
maintaining and sustaining this level of performance along with some incremental improvements. If the daily
management system is poor and not working satisfactorily, all the improvements achieved through policy
management will not be maintained and the performance will deteriorate and come back to the earlier levels or
may be worse than the earlier levels, thereby making all the improvements/investments done through policy
management go into vain. This has been depicted well in the graphs shown in the Fig. 1.5 (b) below.
Actual history of Continual Improvement
If Daily Management is poor???
All the efforts, investments should be gone

Fig. 1.5 (b) Importance of Daily Management
9
1.2.4 History of Daily Management Implementation at Tata Steel

In early 1990s', Tata Steel implemented ISO 9001/TS 16949 Quality Management, ISO 14001 Environmental
Management and OHSAS 18001 Occupational Health and Safety Management systems at all its
divisions/departments. Total Productive Maintenance (TPM) concepts were also implemented at all the
manufacturing and maintenance departments. Daily Management activities during this period comprised of
tracking and monitoring of various key performance indicators (KPI) as per their objectives & goals, on a regular
basis at various levels of the organizational structure and taking corrective and preventive actions wherever
required (in cases of non-conformities) as per these systems.
DM in the TQM way was identified as a vehicle to establish a control method for all the processes in 2006. The
approach aimed at integrating the existing initiatives such as ISO Quality Management System, TPM and the
Memorandum of Understanding (MOU) concepts. The steps of the DM system at TSL were broadly defined as :
(a)
KPI Identification by departments based on customer requirement, role of the function and criticality of
the process
(b)
Process Standardization (SOPs)
(c)
Designing of Control Plan to keep the process stable
(d)
Monitoring of KPI as per control plan/ KPI tracker
(e)
Identification of abnormality
(f)
Taking corrective and preventive action
10
The DM Journey at Tata Steel can be divided into three phases as summarised in the Table 1.2:
Table 1.2 Evolution of Daily Management at Tata Steel
Phase (Period)
Purpose/ Objective
Key Activities
Phase 1:
(2006-2008)
Standardisation
and Visualisation
Putting a standard
practice in place across
the organisation.
?
Standard Process flow for implementation developed.
The standardised process codified and
communicated to all through DM workbook.
?
Extensive training at all levels to promote the concept
?
Workshops and seminars conducted extensively for
creating awareness and communicating the concepts .
?
Providing facilitation to the departments for
implementing the concepts
?
Quarterly Assessments on sample basis (one section
from each department) introduced to check the
implementation
?
To evaluate the effectiveness of the process, review
of key KPIs at corporate level using stability and
capability matrix initiated.
?
To facilitate shop floor employees identify their roles
and KPIs better, KPI drill down introduced
.
?
Training focussed on KPI drill down and Case studies .
?
Governance system established for uniform deployment
of the practices across the value chain Apex DM
Sub-committee formed.
?
Continued with quartely assessments
to identify the gaps in implementationon sample basis
?
To improve effectiveness, customised approach for
maintenance processes where frequent adjustment
is required and processes that experience sudden
changes due to dynamic nature operating
conditions developed.
?
To promote SOP based culture, SOP abnormality
analysis framework was developed
?
To share and horizontaly deploy the best practices
Division wise workshops/ seminars conducted.
?
To view the implementation status across
departments and sections-two stage assessment
process covering all sections introduced.
Focus was on coverage

and training
Phase 2:
(2009-2011)
Stabilisation
Validating the
effectiveness of the
process defined
Focus was on setting

up review systems and
people involvement /
empowerment
Phase 3:
(2012 and beyond)
Customisation
Stability of the Key

processes.
Focus was on
customisation of
approach suiting the
needs of different parts
of the value chain.
11
Key Principles of Daily Management
1.3 Key Principles of Daily Management

An organization is a set of interlinked processes. Any process is defined by its inputs, outputs and in-process
characteristics. The inputs are from the supplier (internal or external) and outputs are meant for the customers
(internal or external). All processes work within their capabilities and under the influence of a continuously
changing environment. Necessarily, then the output of all processes will vary to a certain extent. This is known
as the inherent variability of the process. Much as we would like to do away with variability, it is not something
which can be eliminated totally. Efforts then need to be directed towards keeping the variability within the
natural limits of the process. The motto of Daily Management is Keep Stable, Improve Progressively. This
ensures stability of processes and daily rotation of PDCA ensures improvements are progressive.
1.3.1 Process Approach
Unless you change the process, why would you expect the results to change?
A "Process" can be defined as a "set of interrelated or interacting activities, which transforms inputs into
outputs". These activities require allocation of resources such as people and materials.
What is the definition of 'process approach'?
The application of a system of processes within an organization, together with the identification and
interactions of these processes, and their management, can be referred to as the process approach.
Organizations are comprised of numerous linked activities (processes) which must be managed, with the goal
of meeting customer requirements. Typically, the output of one process directly forms the input of the next.
Processes
Fig 1.6 Viewing an organisation as a set of interlinked & interdependent processes
A process approach emphasizes the importance of:

1.
Understanding and meeting customer/stakeholders requirements
2.
Determining if the processes add value
3.
Determining process performance and effectiveness
4.
Using objective measurement for continual improvement of the processes
12
All processes must meet (customer, organizational and applicable regulatory) requirements. This requires the
use of resources, e.g. - people, equipment, materials, technology etc. These resources can be used as inputs
(raw materials or information such as a customer specification) as well as for the value-adding conversion
activity (e.g. use of machinery, equipment, computers, technology, people, etc.) to transform raw material
(input) into finished product (output).
The performance of all processes can be monitored and measured. Performance data that can be analyzed to
determine process effectiveness and whether any corrective action or improvement is needed. The
performance of an organization can be improved through the use of the process approach. The processes are
managed as a system defined by the network of the processes and their interactions, thus creating a better
understanding of added value. The consistent operation of this network is often referred to as the "system
approach" to management. Often the outputs from one process can be the inputs into other processes and are
interlinked into the overall network or system.
Outputs from
other process
Inputs
to A
PROCESS A
Inputs to B
Outputs
from A
Inputs to C
Outputs from
other process
PROCESS B
Outputs
from B Inputs to D
Outputs
from D
PROCESS D
Outputs
from C
PROCESS C
Fig 1.7 Example of a generic process sequence
A major advantage of the process approach, when compared to other approaches, is in the management and
control of the interactions between these processes and the interfaces between the functional structures of
the organization.
1.3.2 Benefits of process approach
Focuses on integrating, aligning and linking processes effectively to achieve planned goals and objectives
Allows the organization to focus on improving process effectiveness and efficiency.
Facilitates consistent performance which in turn provides assurance to customers about the
organization's quality and capability.
Promotes the smooth and transparent flow of operations within the organization.
Contributes to lower costs and shorter cycle times, through the effective use of resources.
Focuses on continual improvement of processes results in improved, consistent and predictable results.
Facilitates the involvement and empowerment of people and the clarification of their responsibilities.
1.3.3 Fact Based Decision Making

We need data, information, knowledge and wisdom to make any decision. If you have enough of them at the
right time, you can make appropriate decisions. However, in real life it is impossible to have the perfect data to
13
make decisions and hence, we often take risks in decision making. Unfortunately, we make same mistakes again
and again. Especially, experienced managers tend to neglect and deny the fact and rely too much on personal
experience.
The daily management principle emphasizes the importance of making decisions based on fact to minimise the
risk. Data is one of the most powerful tools to understand facts. We need to transform datainto
information, knowledge, or wisdomto understand facts.
Organizations often collect/monitor large amount of data but fail to analyze it and generate essential
information from that so as to initiate countermeasures/actions for improvement. DM helps to channelize data
for a particular use. One of the roles of DM is to reduce the DRIP (Data Rich and Information Poor)
phenomenon. To avoid the DRIP phenomenon, organizations need to break-down the mass of data into small
set of points to assimilate the required information so as to identify opportunities for improvement and initiate
actions on these for achieving a sustained and stable operation.
1.3.4 PDCA & SDCA
The PDCA is an interactive, four step management method used in business for control and continual
improvement.
4a. Immediate remedy

4b. Analyse the Process
for Root cause for recurrence
prevention
3a. Achieved Target or not?

3b.Check the process along with
the plan
Act
Plan
Check
Do
1a.Target Setting
1b.Clarifying Process
2a. Implementation
2b. Process preparation
Including training
Fig 1.8 PDCA cycle of Improvement
Daily Management is all about SDCA (Standardize - Do - Check - Act) and PDCA (Plan - Do - Check - Act) rotations,
all the members of the organization should understand the same and there will be a need of a well-structured
systems and procedures (SOPs - Standard Operating Procedures) that can assure to rotate SDCA/PDCA as an
entire organization. SDCA (Standardize Do Check - Act) cycle is used to maintain a process for giving sustained
and planned outcomes and this cycle normally succeeds or precedes a PDCA cycle of improvement (as shown in
the Fig.1.8). Actually SDCA is a special form of PDCA cycle, where to emphasize the importance of DM, Plan part
is replaced by S standardization. The cycle starts with a standardized process (normally documented in the
form of standard operating procedures) which has been well communicated and training provided to all the
concerned persons. The persons perform the operations as per this standardized process. As per the planned
frequency, the result as well as the process is checked to confirm whether these are as per the plan or not. If this
14
is OK, then the process continues and this becomes the favorable cycle (ideal cycle) as depicted in the Fig. 1.9
below. However, while checking, we sometimes find that there is a gap between the standard and the
actual and this is called a deviation or abnormality. Both an immediate remedy (correction A1) as well as a
Recurrence Prevention (corrective action A2) is therefore required to be initiated to ensure that the
deviation/abnormality does not happen again in the future. Once the corrective action, thus taken, is
confirmed to be effective, the existing standardized procedures are revised to incorporate the same such that
this becomes the revised standardize procedure now and all persons follow this revised procedure so that the
same abnormality/deviation does not repeat again.
Normally, any maintenance/sustenance process starts with the SDCA cycle and as & when any
abnormality/deviations occur, these are defined, analyzed, resolved and standardized following a PDCA cycle
and finally come back to the SDCA cycle for maintenance. Similarly, any improvement process starts with PDCA
cycle and once the desired outcome has been achieved, it is transferred to SDCA cycle of maintenance to sustain
the improved results.
For sustenance of any improvement activity, standardization / modification of standards are a must. Hence,
SOPs(S) become an important element of organization's improvement activities.
SDCA Cycle for Maintenance
Favorable Cycle
S=>D=>C=>D=>C=>
S
C
Recurrence Prevention
S=>D=>C=>A1=>A2=>S
=>D=>C=>A1=>
Recurrence
Prevention
(A2)
Immediate
Remedy
(A1)
Standardize
(S)
Inspect
(C)
Operate
(D)
Fig 1.9 SDCA cycle for Maintenance
A2
Cycle of
Immediate Remedy
S=>D=>C=>A1
=>D=>C=>A1=>
A1
Daily Management also aims at strengthening the standardization of processes; making SOPs a live document
which is useful for the front-line operators. The development of SOPs would also help in translating the implicit
skills of the operators into explicit activities of job execution, thereby, making the processes less persondependent and getting automated eventually.
While the process or steps used to deploy or implement DM activities will be different for the various functions
(operation, maintenance and service functions). Dr. N Kano, a Japanese expert on Total Quality Management,
has set the following questions on steps of DM.
PLAN
P1:
What is the mission, roles or the objective of the job of your group?
(Group means department, sections etc. that you are responsible for)
15
P2:
By what indicators do you evaluate the status of P1?
P3:
Have you prepared standards for the job?
P4:
Do you have a system to check the status?
DO
D1:
Are you doing the job as specified standards in P3
D2:
Are you monitoring the job in appropriate frequency using the control points.
CHECK
C1:
Have you evaluated current status of the job by the data?
C2:
Could you find abnormalities in appropriate frequencies?
ACT
A1: Have you taken immediate actions and made observations on abnormalities?
A2: Have you taken timely corrective and preventive actions? Have you revised standards, control points,
control levels as appropriate
A decreasing trend of number of abnormalities/deviations on all KPIs over a period shows an effective
implementation of daily management system at any department or section.
16
Linkage of PM, DM & PSTA
1.4 Linkage of PM (Policy Management), DM (Daily Management) & PSTA (Problem

Solving & Task Achieving)
As shown in the in the Fig. 1.10 below, once the management sets its policies, business objectives & strategies
are decided and targets set. In order to achieve the stretched target, cross functional approach of problem
solving and task achieving is required. Once these actions have been taken and the performance has improved
(PDCA) and the targets achieved, these activities need to be standardized so that these are followed
consistently in future to sustain the performance. These, therefore, then become a part of DM activities
(SDCA).
Business Objectives & strategies
Identification of improvement projects as a means

to achieve Business Objectives & strategies
Improvement PSTA
Policy Management
Activities carried out through cooperation of entire
company to establish & achieve policies
Management direction/business environment
Standardization
Is it a
chronic
problem?
Maintenance Activities
Yes
No
Standardization
Improvement Activities
Daily Management
(All activities that must be carried out to achieve each
individuals job activities throughly & efficiently)
Important activities to
enhance management level
Basic Business
system
Current standards
Procedure for administrative activities

Procedure for managerial & supervisors job accountability
Fig 1.10 Relation between Policy Management, Daily Management& Problem solving & Task Achieving
17
Similarly, while doing the DM activities, some chronic problems are identified which needs to be taken up for
improvement on a priority basis (may need a QC Story approach of problem solving) and therefore becomes
part of the policy management activities. This cycle of Policy Management and DM therefore helps the
company achieves its long term and short term objectives.
1.4.1 Deciding Approach using 2X2 Matrix
Lots of discussion happens on the appropriateness of the methodology to be applied under any given
condition. A 2X2 matrix on stability and conformity is used to monitor the process performance of a KPI with
respect to process stability as well as customers specification. Mapping the key performance indicators which
needs improvement on 2 x2 matrix given below Fig. 1.11 can help in deciding which approach to be applied
when.
CONFORMITY
STABILITY
Fig 1.11 2X2 Matrix on stability and conformity
Quadrant 1: Since the process is unstable, applying Daily Management itself will give significant benefit
Quadrant 2: Possibility of generating defects even in a stable process. While the Daily Management should
continue for sustenance, Problem solving activity should be taken up for producing conforming
products
Quadrant 3: Though the products conform to the specification, the process is unstable. In order to continue
producing conforming products, Daily Management has to be applied.
Quadrant 4: Ideal Condition
The table 1.3 further elaborates the applicability and the difference between DM & PSTA activity.
18
Table 1.3 Comparison between Problem Solving & Task Achieving and Daily Management Activity
Problem Solving (PSTA)
Purpose
Daily Management
Strategic problem solving, aligned

with business objectives.
Tactical monitoring and reaction as

well as continuous improvement.
Scope
Few, large breakthrough projects.
Many, small impact efforts.
Effect
Large impacts adding up to (Rs. Crs).
Small, numerous, ongoing

improvements adding up to Rs. Crs ) .
Participation
Few experts (Black Belts) working

with a few local area experts.
Every person in every area involved

in some part of Daily Management.
Management
High -level (Master Black Belt /
Local area process leaders
Champion) prioritizing,
organizing and driving
deploying, and monitoring
process and improving Daily
projects and improving Six

Sigma process.
Management process.
Team - based or individual

clear completion criteria with
Team - based permanent

management team spawning
relatively short time to
improvement sub - teams or
completion
individuals with clear local
Activity modality
and length
area responsibility.
19
Chapter 2
Important Elements of
Daily Management Implementation
Planning for Daily Management
2.1 Planning for Daily Management

Planning for DM is essentially setting up or designing a system for controlling the process or KPIs, the
planning passes encompasses the following steps
a. Establishing Ownership
b. Capturing Customer Requirement
c. Understanding the process mechanism
d. Prioritizing
e. Standardization
2.1.1 Establishing Ownership: Defining Roles & Objectives (R&O)
The first and the most important step of Daily Management is to identify the jobs which are related to the
purpose of existence of the section. One can manage well if jobs are identified well. Based on Dr. N Kano's
Questions, the R & O format has been developed to help departments in identifying their roles & objectives.
The details of the format and guidelines to fill the same are described in Table 2.1.
The aim of this exercise is to examine the precise objective of the department/section, from the stakeholder's
perspective i.e. what is the deliverable our stakeholders expect from us and whether we are capable of
delivering the required output to them or not and if not, what are our action plans to improve our capabilities.
These questions should be answered at the departmental as well as the sectional levels in the prescribed
format (TQM/DM/R&O/001) as shown in the attachments at the end of the book. A filled-in format for a
particular department has also been attached for ready reference in Chapter 3.
Table 2.1 Guideline to fill R&O format
Sl. No.
Dr. Kanos
Question
Answer
(i)
What is the role of your

department/section?
Purpose of the existence of the department/section

should be mentioned
(ii)
What is the Objective of the Job of

your department/section?
Set the objectives as per P,Q,C,D,S,M,E to meet the

purpose of the department/section
(iii)
By what indicators, do you evaluate

whether the job of your
department/section is successful or
not?
Indicators which evaluate status of Objectives, the

unit of measure for the KPI should be mentioned but
should not have values (baselines/targets) as the
values can be mentioned in control plan
(iv)
What are the critical concerns
The concerns can be of 2 kinds. First are for those

KPIs which need to be stabilized , second concern
is how to monitor/capture them
(v)
Do you have the data for these

indicators?
Yes/No
(vi)
What are the action points for these

concerns?
Critical concerns could generate PSTA projects or

establishing systems for data collection.
(vii)
Timelines
The Target dates for completion of action points
20
2.1.2 Capturing Customer Requirement

The basic objective of TQM is to meet customer requirement. For capturing these requirements, there are
various tools as described below:
(a)
Memorandum of understanding (MoU)
(b)
Charter of agreement (CoA)
(a)
Voice of Customer (VoC)
The inputs captured through the above tools then need to be translated into process requirements to meet the
desired objective.
2.1.2.1 Memorandum of Understanding (MoU)
Total Quality Management philosophy is focused on Customer and it is expected that the organizations must
provide products and services to their customers with a level of quality that satisfies them, at the appropriate
time and price. In order to achieve this, organizations need to establish challenging and customer-oriented
business objectives and strategies for not only satisfying their basic or expressed needs but also their latent
needs to delight them. That is why, the Customer Focus requirement of TQM is the primary requirement and
is shown at the top of the TQM pyramid (as shown in the Fig. 2.1below).
Fig 2.1 TQM Pyramid
In any chain of processes, each process is the previous process's consumer or customer, while the previous
process is the producer. If the people responsible for each process consider the next process as their customer,
listen carefully to their requirements, and are prepared to discuss them sincerely, then problems such as
sectionalism will disappear from the company.
The customers for an organization can be external customers who finally buy the products or services or
internal to the organization, as shown in the Fig. 2.2 below.
Fig.2.2 Internal/External Customer Orientation

21
It is, therefore, necessary that the various departments/divisions of an organization follow the concept of
Next Process is our Customer - may be external or internal and establish their objectives, strategies and the
related action plans to satisfy and delight them. For doing this, they need to identify the followings:
a. Who are our customers (the next process)?
b. What is required by our customers (the next processes)?
c. What must be done to satisfy the requirements of the customers (next processes)?
d. Were the customers (next processes) satisfied with the result of our process?
In order to take care of the internal customer orientation, Tata Steel has a method called Memorandum of
Understanding (MoU), under which all the departments of the company identify their internal customer(s),
finds out their requirements (key performance indicators and desired targets) and does a formal sign-off on
these (between the HODs of the supplier and customer departments). These performance indicators are then
planned to be complied, done and reviewed for compliance internally as well as along with the customers. The
customer focused KPIs, thus identified in this process, also become part of the KPIs identified for monitoring
under the DM. The SDCA-PDCA-SDCA cycles are then rotated for improving the KPIs .
The steps to be followed for the MoU are as under:
(a)
Identify the customer(s) of the department. If any department has multiple customers and it is not
feasible to have MOU sign-off with all of them, the department should identify few key customers
amongst all the customers based on their criticality and importance for having formal MoU with them.
(b)
Identify the key requirements of the customer along with their key performance indicators. These can be
related to quality, delivery and responsiveness of the products and services being provided to the
customers. Mode of doing the same may be through formal meeting with customers, inputs from Annual
Business Plan, through Customer Meets etc. to understand the voice of the customers.
(c)
Do a formal sign-off with the customer as per the prescribed format (TQM/DM/MOU/009), which
includes the performance indicators, its base & target levels, review frequency, etc. and the formal
signatures of the heads of the department of supplier and customer departments. A filled-in form (for
reference) has been attached in Chapter 3.
(d)
Include all the identified KPIs in the MoU agreement with customers into the Control Plan or KPI Tracker,
as the case may be, for regular monitoring and controlling the processes and these indicators.
(e)
Perform the activities and monitor these KPIs as per the plan. In cases of abnormalities/ deviations,
necessary corrective and preventive actions should be taken similar to the activities done for any KPI
being monitored under daily management.
(f)
The performance of the department on the identified MoU KPIs should be reviewed along with the
customers at the prescribed frequency (as per the MoU statement). In cases of deviations as well as
additional requirements of customer expressed during these meetings should also be documented and
appropriate actions on the same should be initiated for their compliance.
(g)
In addition to the quantitative performance on these KPIs, at a prescribed format(TQM/DM/MOU/010),

formal qualitative feedback from customer (s) may also be taken, to assess his/her satisfaction level.
22
2.1.2.2 Charter of Agreement (CoA)

Charter of agreement (CoA) is a document which takes inputs from customers (production departments) with
respect to their maintenance related requirement. CoA is a mutually agreed document that identifies
requirements of maintenance as well as production department to fulfill the roles of both functions. The steps
of formulation of Charter of agreement can be categorized as:
a.
Identification of maintenance requirement by Operation Department to meet the department's

ABP
b.
Identification of operation requirement by Maintenance Department in order to implement

maintenance strategies smoothly.
c.
Charter of agreement consists of Objectives (linked with ABP), Means/action, KPI, UOM (Unit of
measurement) with proper base level, target level, review frequency, responsibility and TQM vehicle to
achieve the objective.
d.
Responsibility is to be assigned to operation as well as maintenance department.
e.
Necessary & Sufficiency check for each item to be done.
f.
Syndication between Maintenance as well as Operation dept.
KPIs are identified for each of the agreed items. CoA is prepared as per the format DM/Maint./COA/001. A
sample of Charter of Agreement (CoA) between M&U Mech. Maint. and NBM is given in Chapter 3.2.
2.1.2.3 Voice of Customer (VoC)
Voice of the Customer (VoC) is tool for identification of customer needs and requirements. Organizations that
align offerings directly to these needs are able to achieve best-in-class products and services. The aim of this
exercise is to examine the precise objective of the department/section, from the stakeholder's perspective i.e.
what is the deliverable our stakeholders expect from us and whether we are capable of delivering the required
output to them or not and if not, what are our action plans to improve our capabilities to receive the feedback
and act on the same for corrective or improvement actions.
2.1.2.3.1 Translating VoC into process parameters
The Quality assurance department focuses on Quality across Tata Steel. In order to meet customer
requirement, enhance visualization and strengthen our existing quality system, a comprehensive and robust
corporate Quality Assurance System has been established. Product related customer requirements are
captured, translated into chemical and physical attributes and documented as 'Technical Delivery Condition'
(TDC) by Steel Manufacturing Departments. An Integrated Quality Chain has been developed to visualize the
linkage of customer requirement to the upstream processes. This visualization has helped in developing an
understanding of the linkage of individual Department's activities and DM KPIs right up to the end customer
thus increasing the focus on MOU/COA/TDC. The parameters thus identified should be controlled through the
application of Daily Management to reduce variability across the value chain.
23
Material Flow
Customer Information flow
Undersize
CaO/SiO2
Moisture Beneficat
SiO2
ed Iron
Ore
Sinter
Moisture
Phosphorus
Tumbler
Ash
VM
T
T
T
Clean
Coal
Moisture
Coal
CSN
Fluidity
Ash
VM
Tumbler
Index T
MOU / Requirements
RDI
Coal
CSR
CRI
Micum T
Moisture T
Specifications
Moisture
Specifications
Process
Consumables
Equipment
Maintenance &
Spares
Shared Services (RM-owned)

N
Review by RM
Feedback
??
Inspection
??
M Measurement
??
Charter of Agreement
MOU
Memorandum of
Understanding
Physical
Properties
??
??
??
Reqnmts of next process

Impurity elements
Added elements
Cracks,
Scratches
Silvers, Patches
Rust, Lap
Process
Consumables
T
D
C
Physical
Properties (YS,
UTS, etc)
Damages
Rust
Dimensions
(Thickness, width
etc)
Service
parameters
(identification,
Damages, Weight
shortage, etc.)
Specifications
Services
Service
parameters
(identification,
Damages,
Weight
shortages, etc.)
Surface (Defects,
etc.)
Product
Performance
(Paintability,
Weldability,
Formability,
Ducbility
Drawability
Cracking,
Stiffness,
Britieness
Inclusions
Yeild, etc.)
Service parameters I
(paclaging, weight
shortage, documents etc.)
Service
Performance
(Yeld,
Processing
difficulty, etc)
Specifications
Spares
Services
LEPAC
Procurement
C O A / Requirements
Equipment
Maintenance &
Spares
Utility - eg.
Power, Gas
Desired
To Sinter/Coke/BF
N
For adjustments
Information at Sinter/Coke/BF
Added elements
(Mn, Ti, Nb, Cr, etc.)
YS, UTS, %
Elong, RA,
UTS/YS
Surface
Shared Services
OK (As per
MOU)
COC
Specifications
Dimensions
Procurement
Utility - eg.
Power, Gas
T Test parameter
Thickness,
Width
Diameter
Lenght
Added
elements
(Mn, Ti, Nb,
etc) T
LD1
and
LD2
Effect
Impurity elements
(C, S, P etc.) T
Temperature
Process
Spares
Bought out RM Consumables
Procurement (RM-owned)
Equipment
Maintenance &
Spares
Phosphor
us
Specifications
Services
Spares
Supphur
Blast
Furnace
Ash
Customer
Parameter
Silicon
MOU / Requirements
MOU / Requirements
Oversize
W/H & Transp
Mills: Hot & Cold rolling
Impurity
elements
CaO
MOU / Requirements
Steel Making
Iron Making
Coke & Sintermaking
Alumina
Alumina
Iron
Ore
FP / LP
CSI
Benification
MOU / Requirements
RM
Mining
Utility - eg.
Power, Gas
Shared Services
To LD1/LD2
Control by Hot Metal

N
Logistics
Rejection
level
Dupm Iron
Technical
Service of
FP/LP
For adjustments
at LD1/LD2
Can be fitted
in other TDC?
Seconds/
Defectives/
Scrap
Physical property
Dimension parameter
Surface parameter
OK (As per
TDC)
To Customer
To different
customers
grade
Fig.2.3 Integrated Quality Chain at Tata Steel
2.1.3 Understanding and Visualizing the Process Mechanism

In order to deliver the output desired by the customer it is important to understand the activities taking place in
the process. The sequential identification and visualization of activities help in understanding various process
components and the basic process flow.
The two methods mostly followed to visualize the process are (a) Process Flow Chart (b) Management System
Chart
2.1.3.1 Process Flow Chart (PFC)
A process flow chart (as shown in the Fig. 2.4) is a diagrammatic representation of the activities taking place in a
process and is intended to show the desired outcome of the process based on customer requirements as well
as the sources of variations in the input and the process parameters which are responsible for the outcome. The
purpose of developing the process flow chart is basically to identify the input sources of variation and the
process characteristics critical for delivering the output requirements specified by the customer (next process).
24
Fig 2.4 Process Flow Chart
After developing the process flow chart for a department, we must draw findings from this exercise in terms of
advantages/benefits realized while doing this. Some of these can be:
Identification of some new characteristics, which were not known earlier.
Some sources of variation (Input, process or output characteristics) that are still unknown for which
actions need to be initiated to develop understanding.
Process Flow Chart for a department should be developed as per the attached format TQM/DM/PFC/002 at the
end of the book. A filled-in format showing an example of the same from LD2- SC and WRM are also attached for
ready reference. The following Table 2.2 explains how to fill the format . Few examples of process characteristic
are mentioned in Table 2.3.
Table 2.2 Guideline to fill the process flow chart format
Sl No.
Columns
Explanation of Columns
(i)
Process Number
It is a serial number which starts with 10 then 20,30 ,40 etc.
(ii)
Pr ocess function
Operations step by step or sub Operations
(iii)
Brief Description
Each operation description(generic reference to main activities of the

operation)
(iv)
(v)
Customer
Input sources of
Variation
Final customer/Next Process

- Try to link each Product characteristics with incoming source of variation.
Consider all incoming material related causes.
- Incoming source of variation can include previous steps product
characteristics.
- It should not include previous Process characteristics.
Tools ,machine are not input sources of variations
(vi)
Process
characteristics
(vii)
Product (Output)
characteristics
Identify & link process characteristics for each product characteristics

separately.
Consider Man, Machine, Method, Measurement, and Environment
etc. as part of process characteristics.
Consider first level causes only.
No need to include incoming material related causes under this.
Consider following as desired outcomes after completion of process
Directly /Indirectly stated by customer(Length, Diameter etc.)
Characteristics decided by department for processing convenience.
Product specification requirement given by customer( e.g. hardness,
carbon content)
Design functions (e.g. free rotation, circularity, surface defects)
Regulatory characteristics - eg. Exhaust gas, noise level etc
25
tools
Table 2.3 Examples of Process characteristic
Man
Operator not setting m/c as per specification

Operator forgetting to fit a part
Machine
Machine consistent performance

Machine related problems
Method
Current, pressure, cycle time settings
Environment
Tool
High level of dust, humidity

Tool broken/wear out
2.1.3.2 Management System Chart (MSC)

A Management System Chart is typically a visual representation of a process/ operation involving more than
two departments/ agencies. Complex processes like New Product Development, Customer Complaint
Handling, Performance Management System, Organization wide Quality Assurance process, Production
Management System, Cost Management System, Waste Management System etc. where multiple agencies are
involved in successful accomplishment of stated objective, MSC is very useful in bringing more clarity.
The differences between MSC and PFC has been explained in the following table.
Table 2.4 Differences between Management system chart and process flow chart
Management System Chart
Process Flow Chart
Representation
Two dimensional representation of a process/

operation
One -dimensional representation of a

process or operation
Usage
Useful for complex processes where multiple

agencies are involved
Suitable for simple processes within a

department
Important
element
Input, Output, In process measures (check

points), time line and frequency are necessary
elements which brings more clarity in process
Time line and Frequency are missing

elements.
Visualization
Visualization of cross functional involvement is

good
Visualisation of cross functional

involvement is poor.
(a) Selection of MSC or Process Flow Chart (PFC)

It is often confusing when to select an MSC and when to select a Process Flow Chart to explain a process. There
is no hard and fast rule for this. Generally MSC is used for complex processes as explained earlier. If the process
is within the same department it can be explained by a conventional process flow with some additional
elements (responsibility, time line, measures etc.) to bring more clarity and usefulness. So the process owner
has to decide where actually a MSC is required and where a process flows can fulfill the purpose based on type
of process.
Following are the necessary elements to create a Management System Chart.
26
Table 2.5 Guidelines for MSC creation
Show material flow and information flow in different line types.
An overall diagonal flow pattern of activity boxes, is preferred.
Mention all functions who directly/indirectly contribute in any activity (e.g. IT)
Standardize use of colors in rows/columns/text boxes. Use colors only if it has special significance.
Include feedback & feed forward activities performed by different groups of functions before or
after the referred department/Division.
Inspection decision box to have focus & responsibility identification.
Show and define primary & secondary responsibilities
Phases in the first column are to be grouped together (e.g. pre-production, Production, etc), not
just P -D-C -A.
MSCs should consider department as a processing agent and mention input/output activities
along with the process.
10
Generally MSCs start with the customer and end with the customer.
11
Keep staff functions in the extreme right or at the bottom.
12
MSCs can be sub divided, as required, for simplicity (e.g. separate MSCs for
Stan dard/OEM/Sub contracted), when the processes are different or when deeper
understanding of specific functions are required.
13
Committees should feature as column items e.g. Quality board, Technical Development
committee, etc.
14
Include standards that are required to be made as a separate column.
15
MSCs should have well identified system measures-Efficiency measure, Effectiveness

measure and Speed Measure.
16
Each version should have a Prepared by, Checked by & Approved by box.
17
Whenever a revision occurs, keep the old version as well. Details of revision history should be
part of the MSC documentation
(b) Symbols used in MSC

The symbols used in a MSC are same as used in process flow diagram. A generic list of symbols used and the
purpose for which these are used are given in the Table 2.6 mentioned below:
Table 2.6 Commonly used symbols in Tata Steel for MSCs
Symbol
Used for
Input
Activity
Output Document (single)
Output Document (multiple)
Decision
Review
27
Table 2.7 Details of various symbols used in MSC

Symbol
Symbol Name
Symbol Description
Display
Indicates a process flow step where information is display to a

persons (e.g. PC user, machine operator).
Manual Input
Where the operator/ user is prompted for information that must

be ,manually inputs into a system.
Manual
Operation
Manual Operations flowchart shapes show which process steps

are not automated
Connector
(Inspection)
Process Flowchart : In process flowcharts, this symbol is typically

small and is used as a Connector to show a jump from one point
in the process flow to another. Connectors are usually labeled with
capital letter (A, B, AA) to show matching jump points.
Business Process Map : In process maps, this symbol is full sized
and shown an Inspection point in the process flow.
Off-Page
Connector
Off-Page Connector shows continuation of a process flowchart

onto another page.
Or
The logical Or symbol shows when a process diverges - usually for more
than 2 branches. When using this symbol, it is import to table the
out-going flow lines to indicate the criteria to flow each branch.
Summing
Junction
The logical Summing Junction flowchart shape is shows when multiple

branches converge into a single process. The merge symbol is more
common for this use, through. This symbol and the Or symbol are really
more relevant in data processing flow diagrams than in process flowcharts.
Collate
The Collate flowchart shape indicates a process step that requires

organizing data, information or materials according into a
standard format or arrangement.
Sort
Indicate the sorting of data, information, material into some

pre-defined order
Merge
(Storage)
Process Flowchart : In process flowchart, this symbol shown the merging

of multiple processes or information into one,
Business Process Map : In process mapping, this symbol is commonly
indicates storage of raw materials.
Delay
The Delay flowchart symbol depicts any waiting period that is part
of a process. Delay shapes are common in process mapping.
Stored Data
A general Data Storage flowchart shape used for any process step
that stores data (as opposed to the more specific shapes to follow
next in this table)
Magnetic Disk
(Database)
The most universally recognizable symbol for a data storage

location, this flowchart shape depicts a database.
28
2.1.4 Visualizing the Cause & Effect relationship between the process parameters using KPI Drill Down
Daily Management is the basis for sustenance in any organization. The improvement journey are brought
through by following standardization of activities and pursuing continual improvement activities by
identification of abnormalities/ deviation and taking appropriate measures for prevention of recurrence.
Important KPIs at the top need to be drilled down to activity level, as this helps in aligning and visualizing the
activities carried out at frontline level with the objective at the top. This is termed as 'KPI Drill-down'. This
approach is quiet helpful in an industry, where there are a lot of interrelated processes. It helps to understand
and visualize the cause-effect relationship between the various activities and the KPI. KPI drill down helps in
visualizing the key parameters and their inter linkages for Series of complex processes across the value chain
that converts iron ore to finished steel.
There are different approaches to visualizing the KPIs and its sub KPIs. First is the Cause and Effect KPI which is
cascaded as per the cause and effect chain. So if one KPI is adverse, we can look for the cause/ related KPIs in
link to understand the real reason and take necessary corrective action. Secondly in an organization, like ours,
the KPI visualization can also be hierarchical in nature. The mapping of responsibility reflects the organizational
hierarchy so information becomes more relevant and specific. Low level measures can be combined and add up
to higher level KPI providing perfect traceability.
Production and Quality KPI Drill Down has been attached as an example in Fig 2.6 & Fig 2.7. To meet the
production objective of steel making section of LD2 and SC department. There are three most important KPIs
shown in Fig 2.6. The first KPI is Heats/day. This is further drill down to KPIs which can be grouped as set up
related KPIs, refractory related KPIs, operational loss related KPIs, maintenance KPIs and external KPIs. The
second KPI is Heat size. All these KPIs are drill down up to frontline employee level with details .The owner of the
KPI who reviews it is also mentioned with KPIs in color codes. The interfacing KPI also impact the performance
of process.
The second KPI drill down is of quality drill down at WRM as shown in Fig 2.7. The quality tree is drilled down to
following broad classifications(a) dimensional properties,(b)mechanical properties,(c)surface properties,(d)
coil aesthetics. These are further drilled down to the actual activity level showing responsibility up to workmen,
supervisor and manager level with color codes for better visualization.
We have deployed the combination of all these approaches at different departments. These KPIs have clear
ownership and are also displayed on various dashboards.
2.1.4.1 Objective of KPI Drill down
The objective of KPI drill down is mentioned below
a)
To control the process parameters at the grass root level so that the variation in the KPIs is reduced. This
will fulfill the organizational need of reducing variability.
b)
Motivation of the employees: Drilling down the KPIs, help in identifying the roles and objectives of the
operators and hence empowering them to rotate their own PDCAs.
KPI drill down is also an effective way to involve the front line employees in DM to effect the improvement
faster in order to achieve the objective as it makes each one measure the progress of his own actives done and
take actions to bridge the gap.
29
2.1.4.2 Process of KPI drill down

Once the KPI is identified at the higher level based on section/departmental roles & objective and customer
point of view, the sub KPIs at lower level should be identified based on data/past experience or assumption as
described below:
Category A: Relation exists as per theory (Fact based- data available completely)
Category B: Relation exists but not completely as per theory (some data available and some subjectivity
involved)
Category C: Relation exists but based on assumption/experience (completely subjective).
Business results (KPI stability) cannot be achieved until and unless we start controlling and reviewing these KPIs
at every level. So efforts should be made to monitor the lower level parameters and put efforts to stabilize
them. This will lead to a gradual improvement in the long term trends, reduction in variations. The cause and
effect relationship will become stronger as we start understanding the system better through data and
phenomenon observation.
It is important to keep in mind that the objective of identifying and monitoring DM parameters at each level is to
identify abnormality and taking corrective and preventive action at each level to stabilize the entire system.
Escalation Mechanism and Review Mechanism can be built in the KPI Drill Down. When a subordinate is not
able to do recurrence prevention or take corrective action on abnormalities he/she should escalate the matter
to his/her superior. Through reviews the superior should confirm if counter measures are being taken or
analysis of abnormalities are correct.
Both vertical and horizontal review should be done. Horizontal review is looking at the trend of each KPI over a
time period and vertical review is looking at the entire set of KPIs and summarizing: percentage in green,
percentage in yellow and percentage in red. Depending on the ratio of red and green KPIs, the system of control
should be re-looked.
Concerns related to DM could be of two types. First, Process capability is not enough, second there is no
mechanism for measurement or control of some KPIs. Stratify the KPIs in both the above categories and then
take action on case to case basis.
2.1.4.3 Visualization of KPI Drill down and monitoring
Visualization of KPI drill down helps in establishing the cause and effect relationship between the lower level
parameters and the top level KPI. It also helps the operator to understand the linkage between his DM
parameter and the output KPI.
30
Fig 2.5 Example of KPI drill Down
2.1.4.4 Advantage of KPI drill down

The Advantages of KPI Drill down are mentioned below:
1.
Clarity in roles and responsibility: By drilling down the KPIs, roles and responsibility can be identified for
each employee hence, brings clarity to individual.
2.
Empowering Employees: As each employee becomes the process owner, they feel empowered.
3.
Faster Improvement: As everyone starts rotating PDCA, the improvement is faster and manifold.
4.
It also helps operators to understand the linkage between his DM parameter and the output KPI.
5.
Helps to develop the culture of SOP, as for each activity, developing SOP becomes the necessity of the
process.
2.1.4.5 Difficulties faced while doing KPI Drill down

Many items at the frontline levels that can be identified are activities and not parameters This is expected at
the frontline level and hence different type of boxes can be used to differentiate activities from indicators.
However there should be some methodology to understand the status of the activities. There can be various
ways of understanding the status based on the type of indicators such as:
a) Type 1 Yes/ No.
b) Type 2 A, B, C, D categories. Here A, B, C or D are not In Order (example defect category)
c) Type 3 Grade1, Grade2, Grade3 etc. Here the grades are in order but the difference between Grade 1
and Grade 2 is not the same as Grade 2 and Grade 3 (severity level of defects)
Note the trend of the indicators - whether it is Y/N or A/B/C/D or Grade1/Grade2/Grade3- understand the
normal pattern. Abnormal changes in the pattern can be termed as abnormal.
31
2.1.5 Prioritizing using Failure Mode & Effect analysis (FMEA)

The KPIs identified through process flow needs to be prioritized, FMEA is an effective tool for
doing the same.
FMEA is a systematic tool for:
l
Identifying
l
Ranking
effects or consequences of a potential product or process failure.
or prioritizing
l
Developing
methods to eliminate or reduce the chance of failure
Introduction
A systematic analysis of the systems is required to demonstrate that no single failure will cause an undesired
event. It is commonly defined as a systematic process for identifying potential design and process failures
before they occur, with the intent to eliminate them or minimize the risk associated with them. FMEA
procedures are based on standards in the reliability engineering industry, both military and commercial. Failure
Modes and Effects Analysis (FMEA) is a systematic, proactive method for evaluating a process to identify where
and how it might fail and to assess the relative impact of different failures, in order to identify the parts of the
process that are most in need of change. FMEA requires a step-by-step approach to identify all the possible
points of failure in a design, manufacturing process or product or service. Failure mode, the FM in FMEA, refers
to the way in which something might fail and includes any potential error that may occur, especially errors that
may affect the customer. Effective analysis, the EA in FMEA, involves deciphering the consequences of those
failures by determining how frequently a failure might occur, making sure those failures can be detected and
identifying which potential failures should be prioritized. Business analysts typically use FMEA templates to
assist them in the completion of the analysis.
Objective of FMEA
To identify potential design and process failures before they occur and to minimize the risk of failure by either
proposing design changes or, if these cannot be formulated, proposing operational procedures. Essentially the
FMEA is to:
l
Identify the equipment or subsystem, mode of operation and the equipment
l
Identify potential failure modes and their causes
l
Evaluate the effects on the system of each failure mode
l
Identify measures for eliminating or reducing the risks associated with each failure mode
l
Identify trials and testing necessary to prove the conclusions
l
Provide
information to the operators and maintenance so that they understand the capabilities and
limitations of the system to achieve best performance.
History of FMEA
The FMEA discipline was developed by the United States Military. It was used as a reliability evaluation
technique to determine the effect of system and equipment failures. Failures were classified according to their
impact on mission success and personnel/equipment safety.
34
The technique has therefore been in use for quite a long time in military circles, particularly the aerospace field.
It has evolved over the years, and more and more industries have seen the benefits to be gained by using FMEAs
to complement their design processes, notably the automotive industry.
Types of FMEA
There are different types of FMEA
(a) Concept FMEA is used to analyze concepts for systems and subsystems in the early stages. It focuses
on potential failure modes associated with the functions of a concept proposal caused by design
decisions that introduce deficiencies. This includes the interaction of multiple systems, and
interactions between the elements of a system at concept stages. This can be applied to all new
machinery concepts that have never been done before, all new plant machinery layout, new
architecture for machinery, etc.)
(b) Design FMEA is used to analyze products, high volume tools or standard machines, machine
components, standard production tooling, etc., before they are released to production. Focuses on
potential failure modes of products caused by design deficiencies and on parts that can be prototyped
and tested or modeled before high volume production of the product is launched.
(c) Machinery/ Equipment FMEA Is a tool that helps one to systematically determine and solve for the
different failure modes of equipment. It focuses on designs that improve the reliability and
maintainability of the machinery for long-term plant usage. Considers preventive maintenance as a
control to ensure reliability.
(d) Process FMEA is used to analyze manufacturing and assembly processes. Focuses on potential
product failure modes caused by manufacturing or assembly process deficiencies. Useful in analyzing
process steps that can influence the design of machinery, including selection of appropriate tooling
and machinery component parts.
Steps of an FMEA
General Steps of FMEA:
a. Identify and evaluate
i. potential failure modes
ii. potential causes of the failure mode
b. Identify and quantify the impact of potential failures
c. Identify and prioritize actions to reduce or eliminate the potential failure
d. Implement action plan based on assigned responsibilities and completion dates
e. Document the associated activities
FMEA Terminologies
a) Failure Modes: (Specific loss of a function) is a concise description of how a part, system, or
manufacturing process may potentially fail to perform its functions.
b) Failure Mode Effect: A description of the consequence or ramification of a system or part failure. A
35
typical failure mode may have several effects depending on which customer you consider.
c) Severity Rating: (Seriousness of the Effect) Severity is the numerical rating of the impact on customers.
When multiple effects exist for a given failure mode, enter the worst case severity on the worksheet to
calculate risk.
d) Failure Mode Causes: A description of the design or process deficiency (global cause or root level
cause) that results in the failure mode .You must look at the causes not the symptoms of the failure.
Most failure modes have more than one cause.
e) Occurrence Rating: Is an estimate number of frequencies or cumulative number of failures (based on
experience) that will occur (in our design concept) for a given cause over the intended life of the
design.
f)
Failure Mode Controls: The mechanisms, methods, tests, procedures, or controls that we have in
place to PREVENT the Cause of the Failure Mode or DETECT the Failure Mode or Cause should it occur.
g) Detection Rating: A numerical rating of the probability that a given set of controls WILL DISCOVER a
specific Cause of Failure Mode to prevent bad parts leaving the facility or getting to the ultimate
customer.
h) Risk Priority Number (RPN): Is the product of Severity, Occurrence, & Detection.
Risk= RPN= S (Severity)x O(Occurrence) x D(Detection)
2.1.5.1 Process Failure Mode and Effect Analysis
Process Failure Mode and Effect Analysis (PFMEA) is a systematic tool for identifying effects or consequences of
a potential product or process failure and methods to eliminate or reduce the chances of occurring of these
failures. Focus is on potential process related failures and their causes. With the help of this tool, we basically
try to answer the following questions in order to identify the processes which have higher risk priority numbers:
l
What can go wrong?
l
What are the effects and how severe is the effect?
l
What are its potential causes of failure and how often can it happen?
l
What
are the present process controls for their prevention/detection and how good is the present
method of detecting it?
Step 1: Process FMEA begins with defining the scope. Scope is essential because it sets limits on the given
FMEA, that is, it makes it finite. Once the scope is defined develop a process flow chart . The flow chart provides
an overview of the complete production process for the manufacturing of a part. The flow chart should display
the sequence of each manufacturing /assembly operation and show how these functions generate the required
product characteristics. Process Flow Chart is the foundation of FMEA. The process must be defined step by
step, including interfaces. The process flow provides the structure to document what product characteristics
and requirements (OUTPUTS) are affected by a given operation and how these characteristics and sources of
variation are controlled (INPUTS).
Step 2: Identification of customer needs : Four major customer needs to be considered
36
l
End Users
l
OEM Plants
l
Supplier Plants
l
Government Agencies (safety and environment)
Customer knowledge can contribute to precise definition of functions, requirements, and specifications.
Step 3: Identify Functions, process requirements and customer specifications. Function is a description of what
the process does to meet the requirements related to process specification and product characteristics.
Identify and understand the process steps and their functions, requirements, and specifications that are within
the scope of the analysis. The goal in this phase is to clarify the design intent or purpose of the process. This
step, well done, leads quite naturally to the identification of potential failure modes.
Step 4: Identify the potential process failures mode.
Omission
of an action
Functional
Requirements
Function
Not Done
Incorrect
Action
Function
Done Poorly
Surprise
Result
Correct
Action
Fig. 2.8 Identification of Failure Modes
Step 5: Determine the possible causes of failure: Potential cause of failure describes how a process failure
could occur, in terms of something that can be controlled or corrected. The goal is to describe the direct
relationship that exists between the cause and resulting process failure mode. Document a unique failure
sequence with each potential cause.
Causes
Precede the
Failure Mode
Direct
Cause
Direct
Cause
Failure
Mode
Immediate
Effect
Direct
Cause
Fig. 2.9 Possible Causes of failure
37
Step 6: Identify the effects of the failure: Potential effects of a process failure are defined as the result of the
failure mode as perceived by the customer. The intent is to describe the impact of the failure in terms of what
the customer might notice or experience. This applies to both internal and external customers.
An effect is the immediate consequence of the failure mode.
l What is the pain that is felt by the end user?
l What is the pain felt by downstream operations?
Step 7: Assign a severity rating for each effect (Severity)

Step 8: Assign an occurrence rating for each failure mode. (Occurrence)
Step 9: Evaluate the current process controls and assign a rating. Process controls are planned activities or
devices that can prevent or detect the cause of a failure or a failure mode itself.
Based on the evaluation of the current control a detection rating for each failure mode or effect (Detectability)
should be assigned.
Step 10: Identify and Prioritize Risk and calculate Risk Priority Number (RPN) for each effect
Risk Priority Number (RPN) = Severity * Occurrence * Detectability
Each of these (severity, occurrence and detect-ability) is assessed on a scale of 1 to 10 based on the present
condition
Severity is a rating corresponding to the seriousness of an effect of a potential failure mode on a scale of 1 to 10
(1 : no effect on output, 10 : hazardous effect): A general criterion for evaluation of the severity, occurrence and
detect-ability on a scale of 1 to 10 has been attached for ready reference
Occurrence is a rating corresponding to the rate at which a first level cause and its resultant failure mode may
occur over the design life of the system or product on a scale of 1 to 10 (1 : failure unlikely, 10 : failure certain)
Detect-ability is a rating corresponding to the likelihood that the detection method or current controls will
detect the potential failure mode before the product is released or it leaves the production facility on a scale of
1 to 10 (1 : will detect failure, 10 : almost certain not to detect failure)
Step 11: Prioritize the Failure modes for action- Failure mode and effect analysis is done for all the processes
and sub processes identified under Process Flow Chart using the prescribed format (TQM/DM/FMEA/003).
Based on this analysis, those causes which have high RPN are selected and control plan for the same is made. As
these processes will have high likelihood of producing non-conforming products they needs to be controlled on
a priority basis. However in cases where the Severity is very high (8-10), irrespective of the control mechanism,
it should be part of the control plan.
38
Table 2.8 Guidelines for filling up the FMEA format is provided below:
Sl . No. Columns of the format

(I)
Process Function & its
Requirements
(ii)
Potential Failure Mode
(iii)
Potential Effect of failure
(iv)
Severity
(v)
Potential causes of failure
(vi)
Occurrence
(vii)
Current process control

Detection/Prevention
Detectability
(viii)
Description of the information to be filled up

Describe the process and its purpose. Functions are spoken
and unspoken requirements of the process which are
measurable, testable, and include special conditions
Unwanted outcomes (from the Output Characteristics of
Process Flow Chart).
Describe effect on customer/end-user product or system
performance (mention safety/environmental issues).
Tells the impact of failure. Ranking as per standard table
(The severity is calculated for each effect)
List all causes for the failure mode (Out of control Process
characteristics and/or input Sources of variation of Process
Flow Chart)
Ranking as per standard table (based on
historical data/past experience/intuition) of the causes
Describe present process control mistake
proofing/Statistical process control/Post-process evaluation.
Ranking as per standard table (assuming that the failure has
occurred)
A filled-in sheet of the process FMEA showing an example from LD2-SC and WRM is also attached for ready
reference in Chapter 3.1.
With the establishment of the process FMEA table, the high RPN items should be selected for process control.
The process FMEA report should be used to generate the control plan, Visual Aids for inspection, the
production process verification check list etc. If the FMEA table is used for documentation only, this information
will be wasted.
After developing the process FMEA for the processes, we should also draw a conclusion / findings of doing this
exercise in terms of advantages / benefits realized by doing the same. Some of these can be:
l
Identification of some new causes which were not known earlier.
l
Cause of occurrence, detectability, etc. which were not known earlier and will be made known.
39
Table 2.9 Suggested PFMEA Severity Evaluation Criteria

Criteria : Severity of Effect
Criteria : Severity of Effect
This ranking results when a

potential failure mode results in a
final customer and / or a
manufacturing / assembly plant
defect. The final customer should
always be considered first. If both
occur, use the higher of the two
severities.
This ranking results when a potential

failure mode results in a final customer
and / or a manufacturing / assembly
plant defect. The final customer should
always be considered first. If both
occur, use the higher of the two
severities.
(Customer Effect)
(Manufacturing /Assembly Effect)
Hazardous
without
warning
Very high severity ranking when a

potential failure mode involves
noncompliance with government
regulation without warning.
Or may endanger operator (machine or

assembly) without warning.
Hazardous
with
warning
Very high severity ranking when a

potential failure mode involves
noncompliance with government
regulation with warning.
Or may endanger operator (machine or

assembly) with warning.
Very High
Item inoperable (loss of primary

function)
Or 100% product may have to be

scrapped, or Vehicle/item repaired in
repair department with a repair time
greater than one hour.
Item operable but at a reduced

level of performance. Customer
very dissatisfied.
Or product may have to be sorted and a

portion (less than 100%) scrapped or
vehicle / item repaired in repair
department with a repair time between a
half an hour and an hour.
Item operable but Comfort /

Convenience item (s) inoperable
Customer dissatisfied.
Or a portion (less than 100%) of the

product may have to be scrapped with
no sorting, or vehicle / item repaired in
repair department with a repair time
less than a half hour.
Item operable but Comfort /

Convenience item (s) inoperable
at a reduced level of performance.
Or 100% of product may have to be

reworked, or vehicle / item repaired
offline but does not go to repair
department,
Defect noticed by most customers

(greater than 75%).
Or the product may have to be

sorted, with no scrap and a portion
(less than 100%) reworked
Defect noticed by 50% of

customers.

product may have to be reworked, with
no scrap, OH line but out - of-station
Defect noticed by discriminating

customers (less than 25%).

product may have to be reworked, with
no scrap, on line but in station.
No discernible effect
Or slight inconvenience to
operation or operator, or no
effect.
Effect
High
Moderate
Low
Very Low
Minor
Very Minor
None
40
Ranking
10
Table 2.10 Suggested PFMEA Occurrence Evaluation Criteria
41
Table 2.11 Suggested PFMEA Detection Evaluation Criteria

Detection
1. Almost
Impossible
2. Very
Remote
3.
4.
5.
6.
7.
Remote
Very Low
Low
Moderate
Moderate
High
8. High
9. Very High
10. Certain
Criteria
Inspection
Types
A
B
Absolute certainly
of non-detection
Controls
willprobably not
detect.
Controls have
poor chance of
detection.
Controls have
poor chance of
detection.
Controls
may detect.
Controls
may detect.
Controls have good

chance of detect.
Controls have
good chance of
detect.
Controls almost
certain to detect.
Controls almost
certain to detect.
Suggested Range of
Detection Methods
Ranking
C
Cannot detect or is not
checked
10
Controls is chieved with

indirect or random
checks only.
Controls is achieved with
visual inspection only

double visual inspection
only.
charting methods, such
as SPC (Statistical
Process Control).
Controls is based on
variable gauging after
parts have left the
station, or Go/ No Go
gauging performed on
100% of the parts have
left the station.
Error detection in
subsequent operations,
OR gauging performed
on setup and first -piece

check (for set -up causes
only).
Error detection in-station,
or error detection in
subsequent operations
by multiple layers of
acceptance : supply,
select, install, vary.
Cannot accept discrepant
part.
Error detection in-station
(automatic gauging with
automatic stop feature).
Cannot pass discrepant

part.
Discrepant parts cannot
be made because item
has been error -proofed

by process/product
design
Inspection Type
Error-proofed
Inspection Type
Gauging
Inspection Type
Manual Inspection
42
2.1.5.2 Design FMEA

The FMEA technique is an iterative process that promotes systematic thinking during the design phase of a
system or product. It is a design tool that has been around for a number of years and is used as a means of
identifying single point failures or common mode failures in the design of any type of equipment.
The information input to design FMEA consists of customer inputs and specifications. Based on customer
requirements, the potential failure modes are formed. All the possible functional failures in product design
must be caught at the development of the design FMEA report. Component by component evaluations are
necessary in design FMEA. A well-trained and balanced design FMEA team must be established to initiate the
FMEA process and to embed reliability concerns in the product design process. Reliability engineers should
provide the potential failure information about the current design concept/prototype to product
designers/engineers.
The design FMEA team checks the component problems, the functionality problems, the specification
problems; and then lists all the possible failures and begins to communicate with customers and suppliers. The
members of the team discuss the potential failure modes in design with their customers to make the possible
changes in the product specifications to improve its design. They also talk to product engineers to improve the
product's manufacturability. They inform suppliers about the potential problems in components or possible
improvement required for a better design.
The design FMEA report is used to develop the receiving inspection procedure and the design verification check
list.
2.1.5.3 Equipment FMEA (EFMEA)
EFMEA is used to anlalyse equipment and machinery and focuses on designs that improve the reliability and
maintainability of the machinery for long-term plant usage. EFMEA can be defined as follows:
A structured root-cause problem solving tool that facilitates maintaining equipment's critical components in
their original design state by examining their most likely failure modes and developing corrective fixes, effective
and efficient preventive maintenance routines and, if necessary, equipment re-designs.
The following steps describe the EFMEA process
Step 1: List down the equipment, subassembly and components
List down the equipment, subassembly and component of the system being analyzed.
Example
Area (System)
Blast Furnace Charging System
Equipment
BLT Hopper
Sub assembly
Upper Seal Valve
Component (Maintainable item)
Flap
Step 2: List down the Function and Performance Requirements

Enter, as concisely as possible, the function of the subsystem/equipment being analyzed to meet the design
43
intent. Include information regarding the environment in which this equipment operates (e.g., define
environmental conditions, machine performance specification). If the equipment has more than one function
with different potential modes of failure, list all the functions separately.
Start by listing the wants, needs or requirements of the system. Function analysis should be used to insure
requirements are defined in terms that can be measured. Describe the function in terms that can be measured.
A description of the function should answer the question: What is this equipment/subsystem supposed to
do? It is helpful to describe the function using a verb-noun phrase. However, avoid the use of verbs like
provide, facilitate, allow, which are too general.
When an equipment must function under certain conditions, it is helpful to describe the conditions. Conditions
may include environmental parameters, engineering requirements, and/or machine performance
specifications (i.e., operating temperature, capability, cycle time, mean-time-between-failure (MTBF), meantime-to-repair (MTTR) or other measurable engineering attributes).
Step 3: List down Potential Failure Modes(s)
Potential Failure Mode is defined as the manner in which machinery could potentially fail to meet its intended
function. The potential failure mode may also be the cause of a potential failure in a equipment, sub-assembly
or component. Machinery failure is an event when machinery is not available to produce parts at specified
conditions when scheduled or is not capable of producing parts or performing scheduled operations to
specification. For every potential failure, an action is required to bring the machinery back to its intended
production capability. Machinery failure mode can occur three ways:
(1)
A type of machinery component defect contributing to a failure (hard failures; i.e., bearing seized, shaft
broke).
(2)
The manner by which machinery system failure is observed or the way the failure occurs (degraded
performance; i.e., slow cycle time, excessive process variation).
(3)
The abnormality of performance that constitutes the machinery system to be classified as failed (quality
defects; i.e., high micron due to vibration, concentricity due to worn shaft bearing diameter).
List each potential failure mode for the particular equipment function. The assumption is made that failure
could occur, but may not necessarily occur. A recommended starting point is a review of maintenance logs,
downtime reports, field service reports, warranty documents, scrap reports and group brainstorming.
Brainstorm potential failure modes by asking:
l
In what way can this equipment fail to perform its intended function?
l
What can go wrong although the subsystem/equipment is manufactured/assembled to print?
l
If the equipment function were tested, how would its failure mode be recognized?
l
How will the environment contribute to or cause a failure?
l
In the application of the subsystem/equipment, how will it interact with other subsystems/equipment?
Fault Tree Analysis (FTA) can be used to help determine component failure modes. Assume the top level event
of the Fault Tree is how a component may fail to meet its intended function. Then the next level down will
identify the causes as part failure modes.
44
Step 4: List down potential effect(s) of failure

Potential Effects of Failure are defined as the consequence(s) of the failure mode on the equipment, described
in terms of Safety and the 7 Big Losses. The 7 Big Losses are as follows:
l
Breakdowns: Losses that are a result of a functional loss (mechanical, chemical, or electrical) or function
reduction on a piece of equipment requiring maintenance intervention.

l
Setup
and Adjustment: Losses that are a result of setup procedures such as retooling, changeover,
die/mould change, etc. Adjustments include the amount of time production is stopped to adjust process
or machinery to avoid defect and yield losses, requiring operator intervention.
l
Idling and Minor Stoppages: Losses that are a result of minor interruptions in the process flow, such as a
process part jammed in a chute or a limit switch sticking, etc., requiring only operator intervention.
l
Reduced
Cycle time: Losses that are a result of differences between the ideal cycle time of a piece of
machinery and its actual cycle time.
l
Start-up Losses: Losses that occur during the early stages of production after extended shutdowns
l
Defective
Parts: Losses that are a result of process part quality defects resulting in rework, Scrap and
rejects
l
Tooling:
Losses that are a result of tooling failures/breakage or deterioration/wear (e.g., cutting tools,
fixtures, welding tips, punches, etc.).
Step 5: Severity Rating
Severity is a rating corresponding to the seriousness of the effect(s) of a potential equipment failure mode in
accordance with Table 2.12 . Severity is comprised of three components: safety considerations to equipment
operator or downstream customer, equipment downtime, and defective parts. A reduction in Severity Rating
index can be effected only through a design change. Assess the seriousness of each effect listed. Safety of the
personnel is the primary criteria in determining the rating.
Equipment functions can be prioritized by rating the severity of the effect that will result from loss of the
equipment function. Estimate the Severity of failure of the equipment function and enter the rating in the
equipment function worksheet. Rank the functions in descending order. Begin the analysis with the highest
ranked functions. Generally, these will be the functions that affect safe equipment operation, government
regulations, and customer specification (downtime, defective parts).
The FMEA Team should consent on Severity ratings for each effect listed. The effects on downtime and defective
parts are independent events, and the team should select the highest rating that meets the individual criteria
(i.e., downtime of 4 hours or defective part loss of 2 to 4 hours of production, select rating of 7; downtime of 40
minutes, or loss of 40 minutes of production, select 5).Enter the rating for the most serious (highest) effect.
Severity Ranking Criteria is given in Table 2.12.
45
Table 2.12 Severity Ranking Criteria
Effect on
Criteria : Survey of Effect
Rating
Hazardous without
warming
Very high sventy ranking Affects operator, plant or

maintenance personnel, safety and/or affects noncompliance with government regulations
10
Hazardous with
warming
High sventy ranking Affects operator, plant or

maintenance personnel, safety and/or affects noncompliance with government regulations
Very high Downtime

or Defective parts
Downtime of more than 8 hours or defective parts loss

more than 4 hours of production
High Downtime or
Defective parts
Downtime of 4 to 7 hours or defective parts loss of 2 to 4

hours of production
Moderate Downtime
or Defective parts
Downtime of 1 to 3 hours or defective parts loss of 1 to 2

hours of production
Low Downtime or
Defective parts
Downtime of 30 minutes to 1 hours or defective parts loss

of upto 1 hours of production
Very Low Downtime

or Defective parts
Downtime upto 30 minutes no defective parts
Minor Effect
Process parameter variability exceeds Upper/Lower Control

limits. Adjustment or other process controls need to be
taken no defective parts
Very Minor Effect
Process parameter variability within Upper/Lower Control

limits. Adjustment or other process controls need to be
taken no defective parts
No Effect
Process parameter variability within Upper/Lower Control

limits. Adjustment or other process controls not need or at
normal maintenance no defective parts
Step 6: List down Potential cause(s)/ Mechanism(s) of Failure

The cause of a failure mode is:
1)
A design deficiency, or
2)
Machinery process variation that can be described in terms of something that can be corrected or can be
controlled.
Identification of causes should start with those failure modes with the highest severity rating.
Brainstorm potential cause(s) of each failure mode by asking questions, such as:
l
What could cause the equipment to fail in this manner?
l
What circumstance(s) could cause the equipment to fail to perform its function?
l
What can cause the equipment to fail to deliver it intended function?
Identify all first level causes. A first level cause is the immediate cause of the failure mode.
It will directly make the failure mode occur. In a Cause and Effect Diagram, it will be an item on the major
fishbone of the diagram. In a Fault Tree Analysis (FTA), it will be the first cause identified below the failure
mode.
46
A Root Cause(s) may be below the first level cause. For example, consider the following.
Failure Mode :
Failed to operate
First Level Cause :
Material cracked
(overstress)
Second Level Cause :

(root Cause)
Material to thin
(inadequate design)
Fig. 2.10 Causes of Failure Modes
For failure modes whose effects have a severity rating of 9 or 10, identify the Root Cause(s) of the failure mode.
Root Causes are sometimes below the first level cause, and there may be more than one lower level root cause.
Techniques such as TOPS (8D), Cause and Effect Diagram, or Fault Tree Analysis (FTA) can be used to help
determine Root Causes.
Step 7: Occurrence Rating
Occurrence is a rating in accordance with Table, corresponding to the likelihood that a particular failure mode
will occur within a specific time period.
Note: Controls can be used to prevent or minimize the likelihood that failure cause(s) will occur. In this event,
the presence or application of the control should be considered when estimating the Occurrence rating. For
each cause listed, estimate the possible failure rates and/or mean time between failures. The occurrence of
failure can be based upon historical data, including the service history, warranty data, and maintenance
experience with similar or surrogate parts. Occurrence ranking criteria is given in Table. 2.13.
Table 2.13 Occurence Ranking Criteria
Likelihood of
Occurrence
Criteria : Possible Failure Rates/Mean Time Between

Failure (MTBF)
Rating
Very High
Intermittent operation resulting in 1 failure in 10 or MTBF of

less than 1 hour
10
Very High
Intermittent operation resulting in 1 failure in 100

production pieces or MTBF of less 2 to 10 hours
High
Intermittent operation resulting in 1 failure in 1000

production pieces or MTBF of 11 to 400 hours
High
Intermittent operation resulting in 1 failure in 100,00

production pieces or MTBF of 101 to 400 hours
Moderate
MTBF of 401 to 1000 hours
Moderate
Moderate
Low
Low
MTBF of 6001 to 10,000 hours
Remote
MTBF generate than of 10,000 hours
47
Step 8: Detection
Detection is an assessment, in accordance with Table, of the ability of the Design / Machinery Controls to
detect a potential cause/mechanism or to detect the potential failure mode.
Estimate the effectiveness of each Design/Machinery Control to detect the cause/mechanism or the failure
mode. Assume the failure mode has occurred. When several Controls are listed, estimate a Detection rating for
each Control and then select the best (lowest) rating. Detection ranking criteria is explained in Table 2.14.
Table 2.14 Detection Ranking Criteria
Detection
Criteria : Likelihood 0f Detection by Design o Machinery

control
Rating
Absolute Uncertainty
Machinery Control CANNOT detect a potential cause and

Subsequent failure, or there is no Design or Machinery
Control
10
Very Remote
Very remote chance a Design/Machinery Control will detect

a potential cause and subsequent failure mode
Remote
Remote chance a design/Machinery Control will detect a

potential cause and subsequent failure mode and
Machinery Control will provide indicator of imminent failure
Very Low
Very Low chance a design/Machinery control will detect a

Machinery control will prevent an imminent failure (e.g.
stop machine)
Low
Low chance a Design/Machinery Control will detect a

Machinery control will prevent an imminent failure (e.g.
stop machine)
Moderate
Moderate chance a Design/Machinery control will detect a

Machinery Control will prevent an imminent failure (e.g.
stop machine) and isolate the cause
Moderate High
Moderate High chance a Design/Machinery control will

detect a potential cause and subsequent failure mode and
stop machine) and isolate the cause. Machinery Control
MAY be required
High
High chance a Design/Machinery Control will detect a

potential cause and subsequent failure mode, and
stop machine) and isolate the cause. Machinery Control
MAY be required
Very High
Very High chance a Design/Machinery control will detect a

potential cause and subsequent failure mode. Machinery
Controls NOT required
Almost Certain
Design Control will almost certainly detect a potential cause

and subsequent failure mode. Machinery Controls NOT
required.
48
Step 9: Risk Priority Number (RPN)

The Risk Priority Number is the product of the Severity (S), Occurrence (O), and Detection
(D) Ratings.
FORMULA: RPN = (S) x (O) x (D)
The Risk Priority Number (RPN) is obtained by multiplying the Severity, Occurrence and
Detection ratings. Remember, ratings and RPN numbers, in themselves, have no value or meaning.
Ratings and RPN numbers should be used only to prioritize the potential design weaknesses (root causes) for
consideration of possible design actions to reduce criticality and/or to make the design more robust (less
sensitive to manufacturing variation).
Recommended Action(s)
Design actions taken to reduce the Severity, Occurrence, and/or Detection ratings. Remedial design actions
should be considered in the following order:
l
A Failure Mode has an effect with a Severity rating of 9 or 10.
l
A
Failure Mode/Cause combination has a high Severity and Occurrence rating (based on Team
consensus).
l
A Failure Mode/Cause/Design Control and Machinery Control combination has a high RPN rating (based
on Team consensus).
The intent of design actions is to reduce the Severity, Occurrence and Detection ratings, in that order.
49
2.1.6 Developing the Control Plan & KPI Tracker

Once the KPIs are identified, a system needs to be design to control them. Control plan is a tool which facilities
the process
The objective of Control Plan is to provide a written description of the system and mechanisms in order to
minimize product and process variations by developing and documenting the process monitoring and control
methods to be used during regular production runs to control product characteristics. It describes the action
required at each step in the process to assure that all process outputs will be in a state of control, with the help
of standard operating procedures which also includes what actions are required to be taken in case any
deviation occurs in any of the processes. It also reflects the strategy responsive to changing process conditions
and aids in manufacturing products as per the customer requirements.
Control Plan contains the following information in it:
Table 2.15 Guidelines to fill control plan
Sl No.
(i)
(ii)
(iii)
(iv)
(vii)
(viii)
Elements
Process Function
Machine/Device
Characteristic number
Output/Product
characteristics
Process
characteristics
Produc t/process
Specifications
Evaluation Method
Sample size
(ix)
frequency
(x)
Control Method
(xi)
Reference Document
(v)
(vi)
Description
Take reference from Process Flow Chart
Machine & facility us ed for the process.
Cross reference from Process Flow Chart
From the output characteristics of Process Flow Chart
From the process characteristics of Process Flow
Specifications/tolerances as per technical/ engineering
documents/M anufacturing requirements .
Identification of measurement system used to measure the indicator
Total number of samples or observations of total constitution. We must
focus on following
a) Checking adequacy of present sampling methods
b) Purpose of sampling
c) Sampling locations
d) Sampling errors
e) Sampling and subgrouping
f) Standardizing sampling method
Sample taken per unit time. How often the sample should be taken/interval
of data
Describe how operation is controlled (control chart, inspection, Mistakeproofing etc.) Process control rather than product control
The standard operating procedures required to be followed by the
operating personnel to control the processes within the desired limits and
the instructions/decision trees required to be followed by the operating
personnel in cases of deviations from the set/target. Specifications should
also be prepared and made readily available at the point of use for
reference. These should be made as visual as possible for better
effectiveness and use by the front-line employees.
The control plan is prepared for all the product / process characteristics of all the processes in a department as
per the attached prescribed format (TQM/DM/CP/004). A sample filled-in format showing an example from
WRM is also attached in Chapter 3.1.
50
2.1.6.1 KPI Tracker

The key performance indicators (KPI) identified, (from answering Dr. Kano's Question on Roles and Objectives
and from Flow Chart/Management System Charts) should be compiled in the standard format of KPI Tracker
(TQM/DM/KPI/005) as shown in the attachment. A filled- in format for a department is also attached for ready
reference in Chapter 3.
2.1.6.2 KPI Tracker - Maintenance Performance KPIs
The Maintenance Performance KPIs should be compiled in the standard format of KPI tracker.
The KPI Tracker should also include reference to all standard operating procedures and maintenance plans for
performing the planned activities related with any process/performance indicators. Traffic light color coding is
used against each KPI's actual value to show its deviation from plan value. Refer to Chapter 3.2 for example
& details.
51
2.1.7 Standardization
Standardization is the process of developing and implementing technical standards to control the KPI. It
encompasses formulation, publication, and implementation of guidelines, rules, and specifications for
common and repeated use, aimed at achieving optimum degree of order or uniformity in a given context,
discipline, or field.
A Standard Operating Procedure (SOP) is a set of written instructions that document a routine or repetitive
activity followed by an organization. SOPs are documented procedures prescribed for repetitive use as a
practice, in accordance with agreed upon specifications aimed at obtaining a desired outcome.
The development and use of SOPs are an integral part of a successful quality system as it provides individuals
with the information to perform a job properly, and facilitates consistency in the quality and integrity of a
product or end-result. The term SOP may not always be appropriate and terms such as protocols,
instructions, worksheets, and laboratory operating procedures may also be used. For this document SOP will
be used.
SOPs describe both technical and fundamental programmatic operational elements of an organization that
would be managed under a work plan.
2.1.7.1 Objective
SOPs detail the regularly recurring work processes that are to be conducted or followed within an organization.
They document the way activities are to be performed to facilitate consistent conformance to technical and
quality system requirements and to support data quality. They may describe, for example, fundamental
programmatic actions and technical actions such as analytical processes, and processes for maintaining,
calibrating, and using equipment. SOPs are intended to be specific to the organization or facility whose
activities are described and assist that organization to maintain their quality control and quality assurance
processes and ensure compliance with governmental regulations.
If not written correctly, SOPs are of limited value. In addition, the best written SOPs will fail if they are not
followed. Therefore, the use of SOPs needs to be reviewed and re-enforced by management, preferably the
direct supervisor. Current copies of the SOPs also need to be readily accessible for reference in the work areas of
those individuals actually performing the activity, either in hard copy or electronic format, otherwise SOPs
serve little purpose.
2.1.7.2 Benefits
The development and use of SOPs minimizes variation and promotes quality through consistent
implementation of a process or procedure within the organization, even if there are temporary or permanent
personnel changes. The details in an SOP standardize the process and provide step-by-step instructions that
enable anyone within operation to perform the task in a consistent manner. The SOP document serves as an
instructional resource that allows employees to act without asking for directions, reassurance, or guidance.
The step-by-step written procedure can also help hold employees accountable because employee expectations
are documented and their actions can be measured against the SOP. SOPs can be used as a part of a personnel
training program, since they should provide detailed work instructions. In addition, SOPs are frequently used as
checklists by inspectors when auditing procedures. Ultimately, the benefits of a valid SOP are reduced work
52
effort, along with improved comparability, credibility, and legal defensibility. Communicating procedures that
anyone in the operation can follow with consistent results will ensure your operation continually provides high
quality products and services.
2.1.7.3 Fundamentals of SOP
Fundamental 1: Product Quality is built through SOP. Operator follows SOP.
Operators retire/change in the organization. There will be difference between operator to operator but we
need to standardize the work to achieve consistent quality. This is achieved through SOP. SOP is the knowledge
bank for the organization.
Fundamental 2: Few things can be learnt only through practice
Everything cannot be learnt by listening, reading and seeing. Developing any skills requires practice. Many work
related problems are due to operator skill. Operator should practice following SOP and develop skill.
Fundamental 3: Operator cannot read SOP and do the operation
SOP is required to find out the current best way to achieve quality, speed and safety. It is required to train the
operator. It is required to build operator skill. Training on SOP and on-job training is must before the operator
starts to work.
Fundamental 4: Practice more and remember few
Operator should develop skill by practicing operation in the way it is mentioned in SOP. Operator has to
remember certain key points in the operation.
2.1.7.4 Six Steps to Developing a SOP
SOPs should be written in a concise, step-by-step, easy-to-read format. The information presented should be
unambiguous and not overly complicated. The active voice and present verb tense should be used. The term
"you" should not be used, but implied. The document should not be wordy, redundant, or overly lengthy. Keep
it simple and short. Information should be conveyed clearly and explicitly to remove any doubt as to what is
required. Also, use a flow chart to illustrate the process being described. In addition, follow the style guide used
by your organization, e.g., font size and margins.
Step 1: Name the SOP using descriptive action words. Supervisor's role is making & implementing SOP
a.
Supervisor should prepare SOP using engineering documents, taking help from managers
(engineers) & users (operators) etc.
b.
He should practice to follow all the steps of SOP & he should remember all the key points and
reasons for key points. If supervisor is not able to perform job as per SOP, he cannot train operators.
c.
He should know how to train operators in his line
d.
He should ensure that standards are respected and followed.
Step 2: Write scope for the SOP. To do this, answer these questions: Which specific operations or tasks within an
operation will be covered? Which are not covered? Who is the SOP written for?
Step 3: Develop an overall task description: Include the number of people required for the task, their skill levels,
53
the equipment and supplies required, any personal protective or safety equipment required, and a description
of how the finished product or result should look.
Step 4: Describe each task in detail. In this section include the following:
Specific order in which activities are done
Timing sequences and time allowed
Materials or tools used and how they are used
Safety or health considerations
References to other associated SOPs
Define terms and concepts when needed. Place health and safety warnings prominently in the SOP.
Step 5: Get everyone on board: Successful SOP development and implementation typically requires that all
people who are affected by a SOP be involved in a team-based SOP development and problem solving process.
To achieve that:
Include several experienced employees to be involved in drafting the initial SOP.
Have trained employees check the written procedures against actual practice before implementation.
Make revisions if necessary.
Take consensus of concerned employees to gain agreement that procedures and expectations are
appropriate and achievable.
Inform everyone about the written SOP.
Train them on the SOPs' contents and tell them where they can find it for future reference. Be aware
that all your employees may not be able to read the SOP.
Step 6: SOP Review and Approval

SOPs should be reviewed (that is, validated) by one or more individuals with appropriate training and
experience with the process. It is especially helpful if draft SOPs are actually tested by individuals other than the
original writer before the SOPs are finalized.
The finalized SOPs should be approved as described in the organization's Quality Management Plan or its own
SOP for preparation of SOPs. Generally the immediate supervisor, review and approve each SOP. Signature
approval indicates that an SOP has been both reviewed and approved by management.
Frequency of Revisions and Reviews
SOPs need to remain current to be useful. Therefore, whenever procedures are changed, SOPs should be
updated and re-approved. If desired, modify only the pertinent section of an SOP and indicate the change
date/revision number for that section in the Table of Contents and the document control notation.
SOPs should be also systematically reviewed on a periodic basis to ensure that the policies and procedures
remain current and appropriate, or to determine whether the SOPs are even needed. The review date should
be added to each SOP that has been reviewed. If an SOP describes a process that is no longer followed, it should
be withdrawn from the current file and archived. The review process should not be overly cumbersome to
encourage timely review.
54
Some guidelines while preparing/modifying SOPs :

1.
It is not compulsory to review / revise SOP every month. But SOP must be revised whenever there is a
Kaizen / QC story / process improvement.
2.
Original date of issue of SOP should always be maintained.
3.
Maintain history of all revisions.
4.
Specify frequency of checks clearly and consistently.
5.
Use simple and small sentences.
6.
Involve workers while preparing SOP.
7.
SOP is not for the engineer, it is for the operator.
8.
Workers should strongly feel that it is his SOP.
9.
Should have both 'what' and 'how' to do.
10. Quality should be built in by 'standard'. Skill of operator is fitted into the standards.
11. Quality of product should be improved by revising standards. If no revision is done in one year, it
indicates no improvement.
12. Emphasis on safety and quality can be built only with strict compliance to SOP.
13. As far as possible visual SOPs should be made and displayed at work place itself.
2.1.7.5 Types of SOP
Different SOP formats include:
Simple steps or a checklist. These are easy to write and follow work well for short, simple,
straightforward tasks.
Hierarchical steps. An extension of the simple steps format, this format works better for tasks that
require additional detail or sub-steps within each primary step.
Linear flow chart. Think of this as a graphic version of the two previous formats. It works well for tasks
where activities must be done in a specific order and where an easy to- follow reminder at the job site is
useful.
Visual /Audio Visual SOPs This format works well for people who cannot read or where a language
barrier exists. Since pictures can dramatically reduce the need for written explanations, this format
helps to shorten complex and detailed SOPs. For some employees, SOP pictures can make excellent
work site reminders. For example a photo illustrating of how a work site should be set up or arranged, or
the proper locations of shields, levers, switches and handles on a piece of equipment. Refer to Fig 2.12
for an example of visual SOP. Audio visual SOPs are motion picture depiction of a process that is carried
out by experts. These are mostly used for training purposes.
Branching flowchart (Decision tree). This format makes complex SOPs, especially those with a number
of decisions that affect subsequent steps, easier to follow. Boxes within the flow chart can also be
expanded to include checklists or sub steps Refer to Fig. 2.11 as an example of decision tree.
55
Many activities use checklists to ensure that steps are followed in order. Checklists are also used to document
completed actions. Any checklists or forms included as part of an activity should be referenced at the points in
the procedure where they are to be used and then attached to the SOP.
In some cases, detailed checklists are prepared specifically for a given activity. In those cases, the SOP should
describe, at least generally, how the checklist is to be prepared, or on what it is to be based. Copies of specific
checklists should be then maintained in the file with the activity results and/or with the SOP. Remember that
the checklist is not the SOP, but a part of the SOP. Standard Operating Procedures/decision trees thus made or
revised should be created under the prevailing quality management system of the department (ISO 9001/TS
16949) so as to avoid duplication of documents as well as to ensure a document control system in place.
Si<0.97
Yes
No Action
No
Is Hot Metal
temp>1500oC
for the current
Torpedo
Yes
Is Hot Metal
temp>1520oC
for the last 2
torpedo
Yes
Reduce coal by 2 Kg/thm
No
No
Is Hot Metal
temp<1480oC
for the current
Torpedo
No
No Action
Yes
Increase coal by 3 Kg/thm
Name
Prepared By
Shailendra Rai
Designation
Sr. Manager Process H BF Head Operation H BF
Signature
Fig.2.11 Example of Decision Tree
56
Approved By
Mantu Patra
58
Implementing Daily Management - Process control
2.2 Implementing Daily Management - Process control

Implementation of Daily Management mainly consists of
a. Monitoring the KPIs
b. Identifying Abnormalities
For the above, process control needs to be implemented thoroughly
2.2.1 Overview on Process Analysis & Process Control
In the past, manufacturing often depended on production to make the product and on quality control to inspect
the final product and screen out items not meeting customer specifications. In administrative situations, work
is often checked and rechecked in efforts to catch errors. Both these cases involve a strategy of detection, which
is wasteful, because it allows time and materials to be invested in products or services that are not always
usable. It is much more effective to avoid waste by producing, right output in the first place, a strategy of
prevention.
Information about the actual performance of the process can be learnt by studying the process output. The
most helpful information about the performance of a process comes from understanding the process itself and
its internal variability. Process characteristics (such as temperature, cycle times, feed rates, absenteeism,
turnover, tardiness or number of interruptions etc.) should be the ultimate focus of our efforts. We need to
determine the target values for those characteristics which result in the most productive operation of the
process, and then monitor how near to or far from the target values we are. If the information is gathered and
interpreted correctly, it can show whether the process is acting in a desired or undesired manner. Proper action
then can be taken, if needed, to correct the process or the just-produced output (as shown in the Fig.2.13)
Normal
Take Measures to prevent repetition
Check for Cause Abnormality
Fig 2.13 Inspection Vs. process control
59
Any process contains many sources of variability. In order to manage any process and reduce variation, the
variation must be tracked back to its sources. Such variation may be due to variety of causes and their
interaction known and unknown. can be broadly classified into two distinct categories namely (a) variation due
to assignable causes such as different setting of the machine, different batches of raw materials that are being
fed, changes in operators who have taken over in a new shift, etc. and (b) variation due to chance causes which
are unavoidable in the process due to such inherent differences that exists in raw materials, machines,
atmospheric conditions, etc. The first step is therefore to make the distinction between special (assignable) and
common (inherent or chance) causes of variation. The difference between chance cause and special causes are
explained in Table 2.16.
Common causes refer to the many sources of variation within a process that has a stable and repeatable
distribution over time. This is called "in a state of statistical control". If only common causes of variation are
present in a process, the output of the process forms a distribution that is stable over time and is predictable.
Special causes refer to factors causing variation that are not always acting on the process. That is, when they
occur, they make the overall process distribution change. Unless all the special causes of variation are identified
and acted upon, they will continue to make the process unstable leading to unpredictable output over the time.
The changes in the process distribution due to special causes can either be detrimental or beneficial. When
detrimental, they need to be identified and removed. When beneficial, they should be identified and made a
permanent part of the process.
When only chance causes are present in a process, the process is considered to be in a state of statistical
control. It is stable and predictable. However, when an assignable cause of variation is also present, the
variation will be excessive, and the process is classified as out of control or beyond the expected natural
variation.
The eventual goal of process control is reduction or elimination of variability in the process by identification of
assignable causes (abnormalities).
Table 2.16 Chance Vs. Assignable Causes
Chance (Common) Causes
Assignable (Special) Causes

Consists of just one or few individual causes
Any cause can result in large variation
Example:
l
Batch of defective material
l
Untrained operator
l
Fault set -up
l
Easy to detect and generally economical to
eliminate
l
No specific pattern
l
Consists of many individual causes

l
Any one cause results in only a minute
amount of variation Example :
l
Slight variation in raw material
l
Lack of human perfection in reading
instruments and setting controls
l
Cannot be economically eliminated
l
Process follow a predictable (statistical)
pattern
l
GOK
(GOD ONLY KNOWS)
l
HAK
(HUMAN ALSO KNOWS)
The goal of a process control system is to make economically sound decisions about actions affecting the
process. This means balancing the consequences of taking action when action in not necessary (over control or
tempering when the variation is due to common causes) versus failing to take action when action is necessary
(under control). Therefore, the process must be first brought into statistical control by detecting and acting
60
upon special causes of variation. The process is said to be in statistical control when the only sources of variation
are from common causes. Then its performance is predictable, and its capability to meet customer
requirement/ expectation can be assessed. This is the basis for continual improvement.
In applying the concept of continual improvement to processes, the following three stage cycle is useful:
(1)
Analyze the process: A basic understanding of the process is a must when considering process
improvement and many techniques can be applied to gain a better understanding of the process such as
group meeting, consultation with people who develop or operate the process (subject matter experts),
review of the process history etc. Control chart is a very powerful statistical method/quality control tool
to identify and differentiate between the common and the special causes of variation present in a
process. The special causes of variation then must be acted upon to eliminate them such that a state of
statistical control has been reached.
(2)
Maintain (Control) the process: Once a better understanding of the process has been achieved, the
process must be maintained at an appropriate level of stability. The performance of the process must be
monitored to prevent undesirable changes. Construction and use of control charts and other tools can be
used for efficient monitoring of the process.
(3)
Improve the process: Up to this point, the effort has been to stabilize the process and maintain them.
However, for some processes, the customer may not be satisfied even with the variation due to chance
causes and will demand further reduction in the common cause variability. At this point, additional
process analysis tools (such as design of experiment, regressions analysis, advance control chart etc.)
should be used to reduce the variation in the process. Process improvement through variation reduction
typically involves introducing changes into the process and measuring the effects for better
understanding of the process so that the common cause variation can be further reduced. Reducing this
variation will have the effect of "shrinking" the control limits on the control chart i.e. the limits upon their
recalculation will be closer together. The intent of this reduction is improved quality at lower cost. This
type of improvement is done following the QC Story approach of problem solving through the PSTA
Project system of our company.
The above also summarizes the objective of statistical process control. The details have been explained in the
subsequent sections.
2.2.2 Statistical approach in Process control
The statistical approach concentrates majorly on following things
a)
Most of the process has its internal variability and follows a certain distribution pattern which is due to
process affected by different factors, such as sampling, measurement, testing and surveying which are
subject to error.
b)
The data should be accurate and appropriate for the purpose of statistical analysis and actions taken on
them.
d)
Totals and averages generally contain hidden information about dispersion. Data collection and analysis
must be stratified and segregated which can actually reveal the dispersion and its causes.
a. Histogram
61
b. Cause ans Effect Diagram

c. Scatter Diagram
d. Check Sheet
e. Stratification
f. Pareto Diagram
g. Control Chart
e)
The seven basic QC tools are basically identifying, prioritizing and analyzing tools. These are discussed in
subsequent sections.
2.2.2.1 Data Collection & Sampling

It is important that the data accurately represent the situation, process, lots etc. being studied because data
provide the basis for all decisions and action .It would be ideal if every item in the population of items could be
measured or tested. However, because most lots, processes, customer interactions etc. that are typically
studied contain large numbers of items, sampling is required.
a)
Population A population is the totality of items being studied. This could be a single lot, output from one
machine or person, or even a process line. Due to time, human resources and money constraints,
collecting population data is often impossible or impractical.
b)
Sample A sample is one or more items taken from a population and used to reflect the distribution of
the population and to estimate the parameters of the distribution.
c)
Population distribution Because every item cannot be produced exactly the same each time, variability
about the expected mean occurs. This variability has a pattern associated with it, which is referred to as
the population distribution. In natural events, such as weight, height etc. the population distribution is
usually the normal distribution. However, in the workplace, the distribution could be normal,
exponential, Poisson etc.
Types of Sampling
The purpose of sampling is to acquire accurate knowledge about a given population and to take appropriate
action for improvement. Therefore, it is very important that the sample be truly representative of the
population. In order to be truly representative of the population, the sample must be random.
a)
Random sampling is taking a sample in such a way that every item in the population has an equal and
independent chance of being included in the sample. Simple random sampling is random sampling
without replacement. It is primarily used when the population being studied is felt to be homogeneous
(the variance is due to chance causes instead of assignable cause).
62
b)
Stratified random sampling is done by dividing the population into several mutually exclusive and
exhaustive strata or regions. The division of the population into the different strata is done in such a way
that the units are as similar as possible within each stratum. For example, the strata could be the top,
middle and bottom portions of a lot or they could be grouped by like items. Once stratified, simple
random samples are then taken from each stratum . This sampling is done independently within each
stratum.
c)
Clustered sampling is done by subdividing the population into groups or cluster and taking a sample of
this cluster. Clustered sampling is performed when it is not feasible (and perhaps not possible) to
exhaustively define a sampling region. For example, a survey of individual expenditures is to be done in
Dade Country, Florida. It is not possible to exhaustively define a sampling region due to daily births,
deaths etc. Therefore, the population is divided into several groups from which samples can be defined.
In this example, Dade County has 27 incorporated cities within it. Therefore, the cluster would be the 27
incorporated cities and the remaining unincorporated portion of the country. Individuals within each
cluster are chosen randomly and studied.
d)
Systematic sampling is done by sampling at fixed intervals (e.g. every 25th transaction or every 10th coil
produced). The specific interval is determined by dividing the population by the sample size. Items are
then selected at this interval throughout the population until the specified sample size has been
reached. For example, let the population be 150 items and the sample size be 10 :
Sample interval = 150/10 = 15
Therefore the fixed interval is every 15th item of items 15, 30, 45, 60, 75, 90, 105, 120, 135, and 150. A
degree of randomness is added to this method by selecting the starting point at random. This is done by
randomly selecting a number from the interval range. In this example, the interval range is 15. Therefore
a number from 1 to 15 is chosen at random. If 5 is the number chosen, the items included in the sample
become 5, 20, 35, 50, 65, 80, 95, 110, 125, and 140
The collection of data during selected sampling and systematic sampling is more precise than simple
random samples. It is also easier and more economical
63
2.2.2.2 Histogram
The histogram is a type of bar chart that visually displays the variability of a product or process. It shows the
various measure of central tendency (mean, mode, and average). It can be used to illustrate whether product
specification are being met by drawing the specification on the histogram. A histogram can also be used to
study and identify the underlying nature of distribution.
a) How to Make a Histogram?
Step1. Calculate the range, R.R is obtained from the largest and smallest of observed values.(see table
2.11)Largest value=2.545
Smallest value=2.502
So, R=2.545 2.502=0.043
Step2. Determine the class Interval The class interval is determined so that the range which includes the
maximum and minimum of value, is divided into intervals of equal breadth and there are 5 to 20 number of
classes. In this case class interval is 0.005
Step3. Prepare frequency table where the class, mid-point, frequency marks, frequency etc. can be recorded.
Step4.Determine class boundaries so that they can include smallest and largest values and write down on the
frequency table e.g. for the boundaries of the first class should be determined as 2.5005 and 2.5055 so that the
class should include smallest value 2.502, the boundaries of the second class should be determined as 2.50552.5105 and so on.
Step5. Calculate the mid point of class ,read the observed values one by one and record the frequencies falling
in each class using tally marks in groups of 5.
The samples once collected needs to be analyzed and further studied to understand the process characteristics
better. For this the 7 QC tools can be very useful.
Table 2.17
Sample
Number
1 10
11 20
21 30
31 40
41 50
51 60
61 70
71 80
81 90
Results of Measurement
2.510
2.527
2.529
2.520
2.353
2.533
2.525
2.531
2.518
2.517
2.536
2.523
2.514
2.523
2.510
2.515
2.545
2.527
2.522
2.506
2.523
2.512
2.526
2.542
2.520
2.524
2.511
2.522
2.541
2.523
2.534
2.525
2.524
2.519
2.522
2.519
2.510
2.512
2.519
2.526
2.532
2.530
2.526
2.520
2.531
2.511
2.515
2.528
2.530
2.522
2.521
2.527
2.519
2.527
64
2.519
2.521
2.543
2.532
2.502
2.522
2.522
2.519
2.529
2.532
2.536
2.538
2.526
2.530
2.535
2.542
2.529
2.528
2.543
2.529
2.518
2.532
2.522
2.540
2.540
2.522
2.519
2.525
2.524
2.543
2.520
2.514
2.528
2.528
2.513
2.521
Maximum
Value of
the Line
2.543
2.541
2.543
2.534
2.535
2.542
2.542
2.545
2.531
The
Largest
Value
2.545
Maximum
Value of
the Line
2.510
2.506
2.518
2.512
2.502
2.510
2.515
2.513
2.511
The
Largest
Value
2.502
Table 2.18
Class
2.5005-2.5055
2.5055-2.5105
2.5105-2.5155
2.5155-2.5205
2.5205-2.5255
2.5255-2.5305
2.5305-2.5355
2.5355-2.5405
2.5405-2.5455
Total
Mid-point of class x
2.503
2.508
2.513
2.518
2.523
2.528
2.533
2.538
2.543
Frequency Marks(Tally)
I
IIII
IIII IIII
IIII IIII IIII
IIII IIII IIII IIII II
IIII IIII IIII IIII
IIII IIII
IIII
IIII I
-
0.25
n = 90
x = 2.5247
s = 0.00906
20
0.20
15
0.15
Frequency
Sl. No.
1
2
3
4
5
6
7
8
9
10
0.10
0.05
2.50
2.51
2.52
2.53
2.54
Diameter of shaft (mm)
Fig. 2.14 Histogram
65
2.55
Frequency f
1
4
9
14
22
19
10
5
6
90
b) Types of Histograms
It is possible to obtain useful information about the state of a population by looking at the shape of the
histogram.
The following are typical shapes and we can use them as clues for analyzing a process.
Type
General type(symmetrical
or bell shaped)
Table 2.19
Shape
The mean value is in the middle of
the range of the data. The frequency
is the highest in the middle and
becomes gradually lower towards
the ends. The shape is symmetrical
Note
This is the shape which should
occur ideally, but unlikely to occur
in reality.
Comb type(multi modal

type)
Every other class has a lower

frequency
This occurs when there is a

particular tendency in the way data
is rounded off.
Positively/Negatively skew
type
The mean value of the histogram is

located to the left or right of the
center. the frequency decreases
somewhat abruptly towards the
left/right but gently towards
right/left. asymmetrical
The mean value is located far to the
left (decreases abruptly on the left
and gently right) center of the
range. The frequency and gently
towards the right.
This shape occurs when the

specification is one sided or the
process is controlled only on one
side.
Most likely to occur.
Left hand precipice type

(Skewed distribution with
no tail on one side.)
Plateau type
Twin peak type
Isolated peak type
The frequency in each class forms a

Plateau because the classes have
more or less the same frequency
except for those at the end.
This is a shape which frequently

occurs when a 100% screening has
been done because of low process
capability and also when positive
skewness becomes even more
extreme.
This shape occurs with a mixture of
several distribution having different
mean value.
The frequency is low towards middle This shape occurs when two
of the range of data and there is a
distributions with widely different
peak on either side
mean values are mixed.
e.g. Two process operators,
machines etc
There is a small isolated peak in
This is a shape which appears when
addition to a general type histogram there is a small inclusion of data
from a different distribution, such
as in the case of process
abnormality, measurement error,
or inclusion of data from a different
process.
66
2.2.2.3 Cause & Effect Diagram

The Cause-and-effect (C&E) diagram was developed by Dr. Kaoru Ishikawa of the University of Tokyo in the
summer of 1943, for this reason, this diagram is also known as the Ishikawa diagram. Its third name, the
fishbone diagram, stems from the fact that a completed diagram resembles the skeleton of a fish.
The primary purpose of the C&E diagram is to show the relationship between a given effect and all identified
cause of that effect. There are typically several major causes for any given effect. Therefore, developing a C& E
diagram assists the team in (1) gathering and organizing the possible causes (2) a common understanding of the
problem (3) exposing gaps in existing knowledge.
How to make Cause and effect diagrams for identifying causes
Step1. Determine Quality characteristic (Effect).
Step2. Choose one characteristic and write it on the right hand side of a sheet of paper. Draw in the back bone
from left to right and enclose the characteristic in the square .Write primary causes which affect it as big bones
and also enclose them in squares .
Step3 . Write the secondary causes which affect the big bones(primary causes) as medium sized bones and
write the causes(tertiary causes) which affect the medium sized bones as small bones.
Step4. Assign an importance to each factor and mark particularly important factors that seem to have
significant effect on the characteristic.
For different characteristics different C&E diagram should be prepared.
After completing a cause & effect diagram, it is necessary to grasp the strength of the cause & effect
relationship objectively using data
Write only the characteristic and the causal factors which are measurable
Health
Rest
Spirit
Nutrition
Meal
Pride
Fighting spirit
Amusement
Quantity
Time
Devotion
Composure
Confidence
Sleep
Depth
Defeat in a
sports match
Situation judgement
Planning
schedule
exercise
Quantity
Experience
Strategy
Technique
Fig. 2.15
67
2.2.2.4 Scatter Diagrams

A scatter diagram is a co-relation representation of relationship between two variables. The distribution of the
points indicates the cause-and-effect relationship (or lack thereof) between two variables. In order to use a
scatter diagram, paired data must be available for the two variables being studied.
Scatter diagrams are very useful because they
1.
Can clearly show a cause-and-effect relationship already existing.
2.
Give an idea of the strength of that relationship.
Six different scatter diagrams are displayed in Fig. 2.16 .In this figure (a) shows that there is a strong positive
relationship between x1 and y1 and indicate that an increase in y1 depends on increase in x1. In (c) it shows that
there is a positive relationship between x2 and y2. However, other factors seem to be influencing y2. In (b)
shown that there is no relationship between x3 and y3. In (d) it shows a negative relationship between x4 and
y4, but that other factors are affecting y4. Figure (e) shows a strong negative relationship between x5 and y5.
A scatter diagram by itself does not imply statistical significance of the observed relationship. Additional
analysis in the form of probability plotting or calculation of the correlation coefficient is required for statistical
correlation. It should also be noted that the conclusion drawn from a given scatter diagram is only valid over the
range of values that were actually observed.
a) How to Make a Scatter Diagram
Step1. Determine which 2 variables are to be checked for having cause-and-effect relationship.
Step2. Collect 50 to 100 (minimum 30) paired samples and enter them on the data sheet.
Step3. Draw x and y axes of the diagram. Typically the x axis is used for controlled or cause, variable and the y
axis is used for the predicted or effect variable.
Step4. Plot the data. If data are repeated and fall on the same point, circle that point every time it is repeated.
Notes:
1.
Used, when both dependent & independent variables, are continuous
2.
Correlation Coefficient (denoted as 'r') is calculated in order to measure the strength of the linear
relationship between two variables
3.
Scatter diagram should be jointly used with correlation coefficient, the value of correlation coefficient
(depicted by r) varies from -1 to +1
68
Fig 2.16
69
2.2.2.5 Check Sheet

A Check Sheet is a form (document) used to collect data in real time at the source of data generation. It provides
an easy, structured and standardized way of recording data. The data captured may be quantitative or
qualitative. Check Sheets are designed by first considering the aim of collecting the data and then making
various creative modifications so that the data can be gathered and recorded easily in ways most suited to the
objective.
The main purpose of Check Sheet is
a.
Controlling and monitoring the production process
b.
Gathering data for further analysis
c.
Reducing recording errors
d.
Inspection for non-conformance
Check Sheets may be made for gathering data on production process distribution, defective item (type,
frequency), defect location, defect cause, etc.
a)
Check Sheet for production process distribution : For simplification, sort the data as they are collected
for frequency distribution forms can be made where data has to be marked only. Frequency distribution
can be ascertained once data has been collected and analyzed for shape of the distribution or with
specification limits.
Deviation
Specification
8.300
Specification
Checks
5
20 Frequency
15
- 10
-9
-8
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
7
8
9
10
1
2
4
6
9
11
8
7
3
2
1
1
Total
55
Fig 2.17 Check sheet for production distribution

b)
Check Sheet for defective item: In order to reduce number of defects, it is necessary to know the kind of
defects and their percentages. Since every defect has different causes, we may find number of defects
caused by each reason and appropriate action must be taken.
70
Product :
Manufacturing stage : final insp.
Type of defect : scar, incomplete
crack, misshapen
Total no. inspected : 1525
Remarks : all items inspected
Type
Date:
Section:
Inspectors name
Lot no.:
Order no.:
Check
Subtotal
Surface scars
17
Cracks
Incomplete
11
Misshapen
Others
26
Total :
62
42
Total rejects
Fig 2.18 Check sheet for defective item
c)
Defect Location check Sheet: External defect such as scratches and dirt spots can be collected by defect
location check sheet where sketches or expanded views on which markings are made so that distribution
of defect occurrence can be observed.
Fig 2.19 Defect Location check sheet
d)
Defect cause check Sheet: Check sheets which are used for further stratification in order to find the
causes of defects are known as defect cause check sheet.
Equipment
Worker
Mon.
AM
PM
Tue.
AM
PM
Wed.
AM
PM
Thu.
AM
PM
Fri.
AM
PM
AM
Sat.
PM
Surface Scratch
A
Improper Shape
Blowhole
Machine 1
Others
Defective Finishing
C
Machine 2
D
Fig 2.20 Defect Cause check sheet

71
It is the division of data into two or more sub-populations or strata based on the conditions which existed at the
time of data collection. When the same products are made on several machines or by several Operators or by
several processes it is better to classify the data according to machine or operator or process so that the
difference between machines or operators or processes can be analyzed. It has been explained in details in the
subsequent section 2.2.4.2.
2.2.2.7 Pareto Diagram
A Bar Graph used for prioritization by 80-20 rule which differentiates 'Vital Few' from 'Useful Many'. Left vertical
axis depicts the actual frequency of items while the right vertical axis denotes cumulative percentage.
It is used for prioritizing problems, Analyzing symptoms and checking effectiveness of countermeasures.
How to make Pareto Diagram?
Step1. Decide what kind of problems need to be investigated. Decide what data will be necessary and how to
classify them. Determine method of collecting the data and the period during which it is to be collected.
Step2. Design a form to record the totals, start to fill it up and make totals.
Step3. Make a Pareto diagram sheet listing the items, their individual totals, cumulative totals, percentages
of overall total and cumulative percentage
Table 2.20 Pareto Table
Type of Defect
No. of Defect
Cumulative Total
Percentage of Overall Total
Cumulative Percentage
Strain
104
104
52
52
Scratch
42
146
21
73
Pinhole
20
166
10
83
Crack
10
176
88
Stain
182
91
Gap
186
93
Others
14
200
100
Total
200
------
100
------
72
Step 4. Arrange items in the order of Quantity and fill out the data sheet
Step 5. Draw two vertical and one horizontal axis Left hand vertical axis for actual number (scale staring from
0 to Overall total), Right hand vertical axis for Cumulative Percentage (scale staring from 0% to 100%),
Horizontal axis. Divide this axis into the number of intervals to the number of items classified.
Step 6. Construct a Bar diagram
Step 7. Draw the cumulative curve.
Step 8. Write any necessary item on the diagram such as - title, units, period, place of investigation, total
number of data.
100
Number of units investigated : 5,000
180
90
160
80
140
70
120
60
100
50
80
40
60
30
40
20
20
10
A : Crack
B : Scratch
C : Stain
Cumulative Percentage
Number of defective units
200
Others
D : Strain
E : Gap
F : Pinhole
Fig 2.21 Pareto Diagram

2.2.2.8 Control Chart
In 1924, Dr. W A Shewart of the Bell Telephone Laboratories USA developed the control chart method of
controlling the quality during production. Essentially, it is a graphical method representing a sequence (in time)
of sample statistics and consists of a central line denoting the average value of the statistics being plotted and
two control limits on either side of the central line (which are called upper control limit (UCL) and lower control
limit (LCL)). The control limits are determined statistically from the probability distribution of the sample
statistic. If all the values are plotted within the control limits without any particular tendency, the process is
regarded as being in controlled state. However, if they fall outside the control limits or show a peculiar form, the
process is judged to be out of control as shown in the Fig. 2.22
73
Fig 2.22 Concept of control Chart
The control chart is a simple but powerful tool to understand process variation and to help to achieve statistical
control by locating and eliminating the special causes and then to maintain the process in this state so as to
ensure the manufacturing of uniform products of acceptable quality. It gives a good indication of whether any
problem is likely to be rectified locally (for eliminating special causes) or will require management action (for
reducing chance cause variation).
74
2.2.3 Types of Control Charts

There are two main types of Control Charts, those that display measured data, and those that display Counted
data as shown in Fig.2.23.
Measured Data (Variables Data): This category of Control Chart displays values resulting from the
measurement of a continuous variable. Examples of Measured data are temperature, length, weight ,strength
,production, time.
Counted Data (Attribute Data): This category of Control Chart displays data that result from counting the
number of occurrences or items in a single category of similar items or occurrences. These count data may be
expressed as pass/fail, yes/no, or presence/absence of a defect.
1994, J. A. Swift
Fig 2.23 Selection of appropriate Control chart
While these two categories encompass a number of different types of Control Charts there are four types that
will work for the majority of the data analysis cases you will encounter.
X-bar-R Chart: This is used for controlling and analyzing a process using continuous values of product quality
such as length, weight or concentration and this provides larger amount of information on the process. X-bar
represents an average value of a sub-group and R represents the range of the sub-group. An R chart is usually
used in combination with an X-bar chart to control the variation within a sub-group. Together they show change
in mean and variation, i.e change in distribution.
X-MR Chart: When the data on a process is obtained at a long interval or sub-grouping of data is not effective,
the data is plotted as such and this can be used as a control chart. This would typically occur when the
measurements are expensive or when the output at any point of time is relatively homogeneous. Since there is
no sub-group and the R value cannot be calculated, the moving range (MR) of successive data is used for the
calculation of control limits of X.
pn chart, p chart: These charts are used when the quality characteristic is represented by the number of
defective units or fraction defective. For a sample of constant size, a pn chart of the number of defective units is
used, whereas a p chart of the fraction defective is used for a sample of varying size.
75
c chart, u chart : These are used for controlling and analyzing a process by defects of a product, such as scratches
on plated metal, number of defective soldering inside a TV set or unevenly woven texture of fabrics. A c chart of
the number of defects is used for a product of constant size, while a u chart is used for a product of varying size.
2.2.3.1 Individual - Moving Range (X - MR) Chart:
The procedure of drawing the X - MR chart has been explained below in detail:
Collect data:
(1)
Individual readings (X) are recorded from left to right on the data chart
(2)
Calculate the moving range (MR) between individuals i.e. the difference between each successive pair of
readings (difference between first and second reading, the second and third reading etc.). There will be
one less such moving range value than there are individual readings.
(3)
X and MR charts are drawn with X chart above the MR chart, and a data block. The values of X & MR will be
the vertical scales, while the sequence of data through time will be the horizontal scale. The data values
and the plot points for the X and MR should be aligned vertically.
(4)
Select scales for the chart for individual (X) equal to the larger of (a) the product specification tolerance
plus an allowance for out-of-specification readings, or (b) 1.5 to 2 times the difference between the
highest and lowest individual readings. The scale spacing for the chart for moving range (MR) should be
the same as that of the X Chart.
(5)
Plot the X & MR on their respective charts. Connect the points with lines to help visualize patterns and
trends.
(6)
Calculate and plot the process average, X-bar, (the sum of individual readings, divided by the number of
readings and calculate the average range (R-bar); note that for a moving range of sample size 2, there is
one less moving range value (MR) than the number of individual readings (X).
(7)
Calculate the control limits as per the following formulae:

UCL (MR)
D4 * R-bar
LCL (MR)
D3 * R-bar
UCL (X)
X-bar + E2 * R-bar
LCL (X)
X-bar - E2 * R-bar
Where R-bar is the average moving range, X-bar is the process average, and D4, D3 & E2 are constants that vary
according to the sample size (n), used in grouping the moving ranges, as shown in the following Table 2.21:
Table 2.21 Values of constants for X-MR chart
n
D4
D3
E2
2
3.27
NA*
2.66
3
2.57
NA*
1.77
4
2.28
NA*
1.46
5
2.11
NA*
1.29
6
2.00
NA*
1.18
7
1.92
0.08
1.11
8
1.86
0.14
1.05
9
1.82
0.18
1.01
10
1.78
0.22
0.98
*There is no lower control limit for ranges for sample sizes below 7 for moving range.
For making the X-MR chart, the value of n is normally 2 (two) and therefore, as per the above table, the values of
D4 = 3.27, D3 = 0 & E2 = 2.66 are used to calculate the upper and lower limits for the X and MR charts.
76
(8)
Draw the average range (R-bar) and process average (X-bar) as solid horizontal lines, the control limits
(UCLs & LCLs) as dashed horizontal lines: label the lines. During the initial study phase, these are
considered trial control limits.
(9)
Analyze the data plots on the Moving Range chart: The data points are compared with the control limits,
for points out of control or for unusual patterns or trends. The presence of one or more points beyond
either control limits is primary evidence of non-control at that point. Mark any data points that are
beyond the control limits for further investigation and corrective action based on when that special
cause actually started. The presence of unusual patterns or trends, even when all ranges are within the
control limits, can also be evidence of non-control or change in process spread during the period of
pattern or trend. This could give the first warnings of unfavorable conditions which should be corrected.
(10) For each indication of a special cause in the moving range data, conduct an analysis of the operation of
the process to determine the cause and improve process understanding, correct that condition, and
prevent it from recurring.
(11) Recalculate the control limits for the moving range chart to exclude the effects of out-of-control periods
for which process causes have been clearly identified and removed. Exclude all data affected by the
special causes and recalculate and plot the new average moving range (R-bar) and control limits.
(12) Confirm that all moving range points show control when compared to the new control limits, repeating
the identification/correction/recalculation sequence, if necessary.
(13) Analyze the data plots on the process average chart: When the moving ranges are in the statistical
control, the Xs can then be analyzed to see if the process location is changing over time. Mark such data
points on the chart which shows an evidence of presence of special causes (points beyond control limits,
presence of patterns or trends or runs).
(14) Find and address special causes (for X chart) : For each indication of an out-of-control condition in the X
data plot, conduct an analysis of the operation of the process to determine the reason for the special
cause, correct that condition, and prevent it from recurring.
(15) Excluding the out-of-control data points, recalculate the process average and the control limits and plot
the same on the control chart as the new limits. Confirm that all data points show control when
compared to the new limits, repeating the identification/correction/recalculation sequence if necessary.
(16) Extend control limits for ongoing control: When the initial (or historical) data are consistently contained
within the trial control limits, extend the limits to cover future period. These limits would be used for
ongoing monitoring of the process, with the operator or local supervision responding to signs of out-ofcontrol conditions on either the X or moving range chart for prompt action.
(17) Interpret for process capability: In order to calculate the process capability of the process, the process
standard deviation can be estimated by the following formulae:
Standard Deviation = R-bar/d2
here R-bar is the average of the moving ranges and d2 is the constant varying by the sample size n, used in
the grouping the moving ranges as shown in the partial Table 2.22 below:
77
Table 2.22 Value of d2 for X-MR Chart
N
D2
2
1.128
3
1.693
4
2.059
5
2.326
6
2.534
7
2.704
8
2.847
9
2.970
10
3.078
If the process has a normal distribution, this estimate of process standard deviation can be used in assessing
process capability, as long as the process is in the statistical control. A typical
X-MR chart and the basic idea of using control charts to identify abnormalities and recurrence prevention
actions have been shown in Fig. 2.24 & 2.25 respectively.
78
Fig. 2.24 Interpretation of Individuals and Moving Range Chart
Fig. 2.25 Basic Idea of Daily Management by Control Chart

79
2.2.3.2 x -R control chart

x
An -R control chart is one that shows both the mean value, ?, and the range, R. This is the most common type
of control chart using indiscrete or continuous values. The x portion of the chart mainly shows any changes in
the mean value of the process, while the R portion shows any changes in the dispersion of the process. The
chart is particularly useful because it shows changes in mean value and dispersion of the process at the same
time, making it a very method for checking abnormalities in the process (see Table 2.23).
x
Here are the steps for making the x-R control chart.
x
Step 1.
Collect the data. You usually need more than 100 samples. They should be taken from recent data
from a process similar to the one that will be used thereafter.
Step 2.
Divide the data into sub groups. These sub groups can be arranged according to measurement or
lot order and should include from two to five samples each. The data should be divided into subgroups in keeping with the following conditions:
1) the data obtained under the same technical conditions should form a sub group;
2) a sub group should not include data from a different lot or of a different nature.
For this reason, data are usually divided into sub groups according to date, time, lot, etc. The number of
samples in a sub group determines the size of the sub group and is represented by n; the number of sub-groups
is represented by k.
Step 3. Record the data on a data sheet. The data sheet should be so designed that it is easy to compute the
values of x and R for each sub group. Table 2.23 gives data on the moisture content of a textile product, taken
five times a day. Here n= 5 and k = 25.
x
Table 2.23 X bar R Control Chart

6:00
14.0
13.2
13.5
13.9
13.0
13.7
13.9
13.4
14. 4
13.3
13.3
13.6
13.4
13.9
14.2
13.6
14.0
13.1
14.6
13.9
13.3
13.9
13.2
13.2
13.3
10:00
12.6
13.3
12.8
12.4
13.0
12.0
12.1
13.6
12.4
12.4
12.8
12.5
13.3
13.1
12.7
12.6
13.2
12.9
13.7
13.0
12.7
12.4
12.3
12.8
12.8
14:00
13.2
12.7
13.0
13.3
12.1
12.5
12.7
13.0
12.2
12.6
13.0
13.3
12.0
13.5
12.9
12.4
12.4
13.5
13.4
13.0
12.6
12.7
12.6
12.8
12.0
18:00
13.1
13.4
12.8
13.1
12.2
12.4
13.4
12.4
12.4
12.9
13.0
13.5
13.0
12.6
12. 9
12.5
13.0
12.3
12.2
13.2
12.8
12.4
13.1
12.3
12.3
22:00
12.1
12.1
12.4
13.2
13.3
12.4
13.0
13.5
12.5
12.8
13.1
12.8
13.1
12.8
12.5
12.2
13.0
12.8
12.5
12.6
12.7
12.8
12.7
12.6
12.2
80
R
13.00
12.94
12.90
13.18
12.72
12.60
13.02
13.18
12.78
12.80
13.04
13.14
12.96
13.18
13.04
12.66
13.12
12.92
13.28
13.14
12.82
12.84
12.78
12.74
12.72
1.9
1.3
1.1
1.5
1.2
1.7
1.8
1.2
2.2
0.9
0.5
1.1
1.4
1.3
1.7
1.4
1.6
1.2
2.4
1.3
0.7
1.5
0.9
0.9
1.1
= 323.50
S
R = 33.8
S
= 12.940
R = 1.35
Sub group
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Step 4. Find the mean value, x, Use the following formula for each sub-group. Compute the mean value x to
one decimal beyond that of the original measurement value.
x =
x1 + x2 + x3... + xn
n
For the data in sub group No. 1, it is works out like this:
x =
14.0 + 12.6 + 13.2 + 13.1 + 12.1

5
65.0
5
64.7
5
And for No. 2

x =
13.2 + 13.3 + 12.7 + 13.4 + 12.1

5
= 12.94
Step 5. Find the range, R. Use the following formula to compute the range R for each sub group:
R = x(largest value) - x(smallest value)
For sub group No. 1 and No. 2 in Table 2.23, R works out to :
R = 14.0 - 12.1 = 1.9
R = 13.4 - 12.1 = 1.3
Step 6. Find the overall mean, x. total the mean values x, for each sub-group and divide by the number of sub
groups k.
Thus, x =
X1 + X2 + X3...+ Xn
K
Compute the overall mean value X to two decimals beyond that of the original measurement value.
For the data on Table 2.23 it works out like this:
x=
13.0 + 12.94 + 12.90... + 12.72

25
323.50
25
= 12.940
Step 7. Compute the average value of the range R. Total R for all groups and divide by the number of sub
groups, K. Thus,
R=
R1 + R2 + R3...+ RK
K
Compute the average value R to one decimal beyond that of R. R for the data in Table 7.2.3 works out to :
R=
1.9 + 1.3 + 1.1 ... + 1.1

25
33.8
25
1.35
Step 8. Compute the control limit lines. Use the following formulas for X and R control charts. The coefficients
the control lines A2, D4, D3 etc. are shown in Table 2.24
81
Table 2.24
A2
D4
2
3
4
5
6
7
1.880
1.023
0.729
0.577
0.483
0.419
3.267
2.575
2.282
2.115
2.004
1.924
X control charts:
Central line CL = X
Upper control limit UCL = X + A2R;
Lower control limit UCL = X - A2R;
R control charts:
Central line CL = R
Upper control limit UCL = D4R;
Lower control limit UCL = D3R;
For the data on Table 2.24, this works out as :
X control chart CL = X = 12.940
UCL = X + A2R
= 12.940 + 0.577 x 1.35
= 12.940 + 0.779
= 13.719
LCL = X + A2R
= 12.940 + 0.577 x 1.35
= 12.161
R control chart CL = R = 1.35
UCL = D4R
= 2.115 x 1.35
= 2.86
LCL = D3R (none)
82
D3
Do not apply
0.076
Step 9.
Construct the control chart. Using graph paper or control chart paper, set the index so that the
upper and lower control limits will be separated by 20 to 30 min. Draw in the control lines and label
them with their appropriate numerical values. The central line is a solid line and limit lines for
process analysis are broken lines while limit lines for process control are dotted lines.
Step 10.
Plot the x and R values as computed for each sub group. For the x values use a dot (.) and for the R
values use an (x). Circle all points which lie beyond the control limit lines to distinguish them from
the others. The plotted points should be about 2 to 5 mm apart. Fig 2.26 shows a control chart
based on the data in Table 2.23
x
Fig 2.26
Step 11.Write in the necessary information. On the left edge of the control chart write x and R, and on the
upper left of the x control chart write the n value. Also indicate the nature of the data, the period when
it was taken, the instruments used, the person responsible, etc.
x
2.2.3.3 p Control Chart

A p chart is one that shows the fraction defective (p), whereas a pn chart shows the number of defectives (pn).
Basically, they are the same except that a pn chart is used when the size of the sub group (n) is constant and a p
chart is used when it is not constant. Obviously, when the size of the sub group (n) varies, the defective
measurement can only be meaningful in fractional or proportional terms. The p and pn charts are not used
together as are the control charts. This is because p and pn charts show the characteristic of both the mean and
the dispersion of the production process.
First, the methods for constructing a p chart are presented. Then, for the pn chart, the formulas for calculating
the control lines will be explained.
(1)
p chart
Step 1. Collect the data which tell the number inspected (n) and the number of defective products (pn). Divide
the data into sub groups. Usually, the data are grouped by date or lots. The sub groups size (n) should be
over 50. Table 2.24 shows the number and the fraction defective for electric machines grouped by lots.
83
Step 2.Compute the fraction defective for each sub group and enter it on a data sheet. Use a data sheet which
resembles table 2.25. To find the fraction defective, use the following formula:
(number inspected in sub group)
To indicate as a percentage, multiply by 100.
Table 2.25 Fraction defective for electric machine parts
Sub group
No.
Sub-group
size
n
Number of
defectives
pn
Per cent
defective
p (%)
UCL (%)
LCL (%)
115
15
13.0
18.8
1.8
220
18
8.2
16.5
4.1
210
23
10.9
16.6
4.0
220
22
10.0
16.5
4.1
220
18
8.2
16.5
4.1
255
15
5.8
16.0
4.6
440
44
10.0
14.6
6.0
365
47
12.9
15.1
5.5
255
13
5.1
16.0
4.6
10
300
33
11.0
15.6
5.0
11
280
42
14.6
15.8
4.8
12
330
46
13.9
15.3
5.3
13
320
38
11.9
16.5
4.1
14
225
29
12.9
16.4
4.2
15
290*
26
8.9
15.7
4.9
16
170
17
10.0
17.3
3.3
17
65
7.7
21.6
18
100
7.0
19.4
1.2
19
135
14
10.4
18.2
2.4
20
280
36
12.8
15.8
4.8
21
250
25
10.0
16.1
4.5
22
220
24
10.9
16.5
4.1
23
220
20
9.1
16.5
4.1
24
220
15
6.8
16.5
4.1
25
220
18
8.2
16.5
4.1
Total
5925
610
84
Step 3. Find the average fraction defective
p =
Total defectives
Total Inspected
pn
= S
n
S
for Table 2.19 this works out to :

p =
pn
610
S
=
n
5925
S = 0.103 (= 10.3%)
Step 4. Compute the control limits.

Central line : CL = p = 1.03 (%)
Upper control limit :
UCL = p + 3
p(1 - p)
=p+
n
= 0.103 +
3
n
3
n
p (1 - p)
x 0.304
Lower control limit :

LCL = p + 3
p(1 - p)
n
= 0.103 +
3
n
x 0.304
Since the value of n varies, the sub groups will have different sets of upper and lower control limits.
Therefore, on the control chart, the control limit lines will show some variations. The central line, p, is the
average and will remain constant. To make it easier to compute the control limits, there are tables which
3
give the n value for a given n and the p (1 - p) value for a given p. (In Japan, such tables are available
from the Japan Industrial Standards Association, JIS Z-9021, Control Chart Methods, and from the JUSE,
the Nikkagiren Numerical Values Table A.
Step 5. Draw in the control lines and plot p. The control chart based on the data in Table 2.25 will look like
Fig. 2.27
Fig. 2.27 P Control chart

85
2.2.3.4 Drawing of pn control chart

Table 2.26 provides data on electroplating part defectives on the basis of lots. The lot size is constant at 100 so
the pn chart can be made. The tables mentioned above can be used to find the control limit values (3 pn from
a given pn and 1 - p from a given p).
Table 2.26 Plating defects of assembled parts
Sub group
No.
Sub-group
size
Number of
defectives
pn
Sub group
No.
Sub group
size
n
Number of
defectives
pn
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
1
6
5
5
4
3
2
2
4
6
2
1
3
1
4
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
5
4
6
15
12
6
3
4
3
3
2
5
7
5
Total
Average
3000
100
129
4.3
(p = 129/3000 = 0.043)
Central line : CL pn = 129/30 = 4.30

Upper control limit :
UCL = pn + 3 pn (1 - p)
= pn + 3 pn 1 - p)
= 4.30 + (6.22) (0.98) = 4.30 + 6.09 = 10.39
Lower control limit :

LCL = pn - 3
pn (1 - p)
= pn - 3 pn 1 - p)
= 4.30 - 6.09 (no consideration due to negative value)
86
Fig. 2.28 pn control chart
Fig. 2.28 is the pn chart made on the basis of the data shown in Table 2.26.
87
2.2.3.5 C Charts
The c chart plots the number of non-conformities that occur in a constant area of opportunity or inspection
unit. The constant means that the area of opportunity and the inspection unit are equal. Examples of a constant
inspection unit are fixed length, area, and quality. Fixed length could be a section of road, a roll of paper, etc.
Fixed area could be the hood of a car, a defined portion a circuit board, etc. Fixed area could be the hood of a car,
a defined portion of a circuit board, etc. Fixed quality could be a work week, three computers, etc.
In most applications, the center line, or mean, of the c chart is based on the average number of nonconformities per inspection unit. This can be determined by :
Where ci is the observed number of non-conformities found in inspection unit i. The control limits are
determined by
Control limits = 3s
Therefore, the control limits for the c chart are determined from
Recall that the mean and the variance of a Poisson random variable are equal. As with the P and np charts, If the
charts, if the calculation of the lower control limit is less than zero, then the lower control limit is set to zero.
Example
A production line supervisor decides to count the number of non-conformities that exist on the 3.5-inch floppy
disks being produced by process line 2. The production rate is approximately 500 per hour. For reasons of
convenience, the supervisor takes a sample of 75 per hour. In other words, the inspection unit is 75 floppy disks.
The supervisor collects data for three days. The number of non-conformities observed over the three days is
displayed in Table2.27.
Table 2.27 shows that there were a total of 472 non-conformities in the 24 samples. From equation the mean
can be determined by
The control limits can be determined using equations
88
The c chart is shown in Fig 2.29. As can be seen, all points fall within the control limits and the pattern appears to
be random. Therefore, no lack of control is indicated.
Table 2.27 Number of Non-conformities for 3.5-Inch Floppy Disks
Sample number
1
2
3
4
5
6
7
8
9
10
12
Total
Number
non-conformities
14
18
21
32
30
18
21
11
18
12
17
Sample number
13
14
15
16
17
18
19
20
21
22
23
Number
Non-conformities
24
22
23
32
20
28
8
15
12
16
24
472
Fig. 2.29 c chart for 3.5-Inch Floppy Discs
2.2.3.6 u Chart
In many applications, the area of opportunity varies. This violates the constant opportunity space assumption
upon which the c chart is based. Therefore, it becomes necessary to create a standardized statistic. This
standardized statistic is defined as u and is the average number of non-conformities per inspection unit. It is
determined by
c
u=
n
Where c is the number of non-conformities per area of opportunity and n is the number of inspection units in
the area of opportunity inspected. In this case, the inspection unit is not equal to the area of opportunity. This
means that there will typically be multiple inspection units for a given area of opportunity. It also means that n
will not always be an integer. For example, let's say that the inspection unit is 10 feet of paper. The process that
89
makes the paper is produced in rolls, it is inspected for non-conformities by rolls. Thus, the area of opportunity
is one roll. The number of inspection units in a given area of opportunity (a roll of paper) would vary from 10 to
12.5 units.
The characteristic that is plotted for this type of inspection is u determined from the equation. This gives the u
chart. As with all control charts, a center line and control limits must be established. The mean or cent er line is
found by
Where ci is the observed number of non-conformities in opportunity area i,ni is the number of inspection units
in opportunity area i. and k is the number of opportunity area inspected.
The control limits are obtained from u. Note that each ci = uini follows a Poisson distribution whose parameter
uni . Therefore, the control limits for the u chart are
where n is the number of inspection units in the given area of opportunity.

If the number of inspection units varies from opportunity area to opportunity area, the control limits will also
vary because the control limits are a function of the number of inspection units.
Example
A copy shop manager notices that the number of complaints on completed jobs has increased. The manager
realizes that the total number of completed jobs per day has also increased. The manager wants to determine if
the increase in complaints should be expected due to the increase in total number of jobs or if the quality of
work has really decreased. The manager decides to inspect all completed jobs for defects on a daily basis and
does so for three weeks. The results of the manager's inspections are shown in Table 2.28.
Since the size of each completed job varies only slightly, the manager lets one completed job be the inspection
unit. Since the area of opportunity (or completed jobs) varies, the manager develops a u chart. This means that
the control limits vary from day to day. Table 2.28 also shows the development of the u chart. Equation was
used to calculate average number of defects per unit. Equations were used to calculate the individual control
limits. The plotted u chart is illustrated in Fig 2.30.
The average number of defects per completed job is 16.88. All points fall within control limits and the pattern
appears random. Therefore, the manager concludes that the process is operating in-control. However, the
manager feels that an average of 16.88 defects per completed job is too high. Therefore, the manager decides
to form a task team to lower the average number of defects per completed job.
90
Table 2.28 Development of u chart for complaint received
Date
1
2
u
u-3 n
1
UCL
u
u +3 n
1
19.57
19.87
14.19
13.89
15.04
19.12
19.21
19.34
14.55
14.41
19.40
17.62
15.68
19.08
18.26
14.79
15.83
16.44
16.73
18.38
18.83
16.57
15.48
14.92
18.32
16.68
14.79
19.68
19.17
19.50
19.34
19.09
19.21
19.45
19.25
19.29
19.17
19.45
19.13
19.45
19.29
19.50
19.21
19.39
14.12
14.59
14.25
14.41
14.66
14.55
14.31
14.50
14.46
14.59
14.31
14.63
14.31
14.46
14.25
14.55
14.36
Number of
completed
jobs n1
21
17
Number of
complaints
jobs c1
375
244
Nonconformities per
unit u1 = c1/ n1
17.86
14.35
28
25
421
478
20
29
22
25
32
28
23
27
26
29
23
30
23
26
22
28
24
388
511
345
477
566
414
364
444
435
533
433
497
356
388
403
467
355
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
LCL
20.0
UCL
NON CONFORMITIES PER UNIT
19.0
18.0
17.0
16.0
15.0
LCL
14.0
13.0
1
10
11
12
13
14
15
16
DAYS
Fig. 2.30 u chart for complaint received

91
17
18 19
20
21
2.2.4 Application of Control Chart

From various viewpoints, the control chart can be said to be the central statistical tool for control. Put plainly, it
is no exaggeration to say that "quality control begins and ends with the control chart."
The main areas of application of control charts are:
1)
For control
2)
For analysis
3)
As graphs
4)
For adjustment
5)
For inspection.
While control charts may be used for all of the above purposes, their essential role is still process control,
followed by process analysis. Control charts as viewed as graph, means plotting data in the form of a control
chart but not using them as such. Although control limits are drawn in, such charts are only gazed at, even when
some points fall outside the limits; the causes of abnormalities are not sought and no action is taken. They are
control charts in form but not in substance, and should really be called graphs. However, plotting the data in the
form of a control chart does show the ways in which a process changes with time and can also have quite a good
motivational effect. For this reason, efforts should be made as soon as possible to start analyzing and
standardizing processes, reviewing the characteristics to be plotted on control charts, standardizing authority,
responsibility, and methods related to searching out assignable causes, and taking action for control purposes,
and actually using the charts for control.
The fourth application, using control charts for adjustment, means, e.g. changing the temperature or the bite of
a cutting tool or the raw material composition etc. when control chart shows that a process is out of control,
without necessarily looking for the cause of the abnormality taking action to eliminate it. This is not the proper
use of the control chart, and a totally different approach must be adopted in considering whether or not 3sigma limits are suitable as adjustment limits (not control limits). In fact, more often than not 3-sigma limits are
inappropriate as adjustment limits. To distinguish this type of chart from the control chart, it should be called an
"adjustment chart." Adjustment limits should be investigated and set in the same way as automatic control is
implemented, by considering factors such as the random variation in the process, movement of process
average, sampling interval, range of possible adjustments and their effects, feedback time, etc. An example of
this is given in Annexure II.
The fifth application, using control charts for inspection, means using them in various ways from the inspection
standpoint: for example, when a chart shows an abnormality in a lot, and the lot is treated differently or
subjected to 100% screening, or the downstream inspection methods are changed.
Control charts are powerful tools for detecting assignable causes of variation. The control charts will always use
control limits which are set at a distance of three sigma units and is based upon the data. The control limits
cannot be determined by any computation based upon specifications. Specifications limits can never work as
effectively as control limits. They will either have more false alarms or more missed signals than the control
charts.
Much of the robustness of the control charts come from three sigma limits which are the action limits-they
define the point at which one is justified in taking action on the process. They strike an economical balance
between the two types of errors Type I & Type II ,one can make in interpreting data from a continuous process.
They neither result in too many false alarms, nor do they miss too many signals.
92
2.2.5 Using Control Charts for Analysis

Control charts for analysis can be considered under the following two headings:
1.
Those used for discovering and eliminating the causes of variation.
2.
Those used for estimating the process capability in preparation for process control.
The first type of use is discussed in subsections 2.2.5.1, 2.2.5.2, 2.2.5.3 below; the second is covered in
subsection 2.2.5.4.
The first consists mainly of charts prepared with the aim of discovering and eliminating the causes of variation
by devising various ways of subgrouping, stratifying, and modifying data and testing whether a process is out of
control.
2.2.5.1 Subgrouping
Subgrouping is the most important part in preparation of control chart and it determines its performance. After
KPI of a process to be analyzed or controlled is decided data will be collected. Variation of a KPI in a process
arises from various causes. It is important before subgrouping to eliminate large variations within subgroup.
Trying out various ways of subgrouping is an extremely important method of discovering the causes of
variation. Subgrouping is closely related to sampling. Some points to be considered when subgrouping are as
follows:
a)
When considering control charts, cause-and-effect diagrams or other methods should be used to draw
clear technical distinctions between the types of factor that affect the within-subgroup variation and
those that affect the between-subgroup variation. For example, when x goes out of control, it is usually
due to a cause of between-subgroup variation, but when R goes out of control, it is usually due to a cause
of within-subgroup variation.
b)
Data on products made under similar conditions should be collected in the same subgroup, so that the
data within each subgroup are as uniform as possible and have as small a variation as possible such as 5
sample tested for a heat to judge its quality all the 5 data points will be considered as one data group as
shown in Table.
(c)
Various sampling methods should also be tried in order to satisfy the above requirement.
(d)
Clarify the purpose of the control charti.e., the kind of variation that needs to be discovered or
controlledand group the data in such a way as to exclude that particular kind of variation, as far as
possible, from within the subgroups.
(e)
The possible causes of variation should be considered from the technical viewpoint, various methods of
subgrouping should be tried, and the state of control and the value of R and other statistics should be
compared.
The best methods of sampling and subgrouping for process control are worked out from the above
considerations.
93
Subgroup no.
Table 2.29 Example of subgrouping

X2
X3
X4
2.1
1.9
1.9
2.2
2.3
1.7
1.8
1.9
2.1
2.1
2.2
2.1
2.0
1.9
1.9
2.3
2.1
2.2
2.0
2.0
2.1
1.7
1.8
1.7
1.8
1.8
2.0
1.9
2.2
2.2
1.9
2.0
2.0
1.8
2.0
1.9
1.8
1.7
2.0
2.0
1.8
1.9
1.9
2.4
1.9
2.2
2.0
2.0
2.2
1.9
1.6
1.9
2.0
2.0
2.1
2.1
1.9
1.8
2.1
2.1
1.6
1.8
1.9
2.0
2.1
2.2
2.1
2.0
1.8
1.8
1.6
2.1
2.4
2.1
2.1
2.1
2.1
1.9
1.9
1.9
2.0
1.9
1.9
2.0
2.0
2.0
2.2
2.2
2.2
2.2
2.0
1.8
1.9
1.9
2.0
2.4
1.7
2.1
2.1
1.8
Day time
X5
X BAR
2.0
2.02
0.3
2.1
1.96
0.6
2.2
2.14
0.1
2.0
2.02
0.4
2.1
2.08
0.2
2.2
1.90
0.5
2.0
1.90
0.2
1.9
2.04
0.3
2.0
1.94
0.2
1.7
1.84
0.3
2.1
2.02
0.6
2.0
2.02
0.3
1.8
1.88
0.6
1.8
2.00
0.3
1.8
1.98
0.3
2.0
1.86
0.4
1.8
2.04
0.4
2.2
1.90
0.6
2.0
2.14
0.4
1.9
1.94
0.2
2.2
2.00
0.3
1.8
2.06
0.5
2.2
2.08
0.4
2.0
2.04
0.5
1.9
1.92
0.5
Total
49.72
Average
X = 1.988
9.3
R = 0.372
1-9
10
11
12
14
15
16
2-9
10
10
11
11
12
12
14
13
15
14
16
15
3-9
16
10
17
11
18
12
19
14
20
15
21
16
22
4-9
23
10
24
11
25
12
X1
X-bar and R Chart; variable: Var1

Histogram of Means
X-bar: 1.9790 (1.9790); Sigma: .15478 (.15478); n: 5.
2.3
2.2
2.1867
2.1
2.0
1.9790
1.9
1.8
1.7713
1.7
0
1 2
4 5
7 8
Histogram of Ranges
10
12
14
16
18
20
Range: .36000 (.36000); Sigma: .13374 (.13374); n: 5.
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
-0.1
.76122
.36000
0.0000
0
10
Fig. 2.31 Control Chart

94
12
14
16
18
20
it is best to segregate the data and prepare separate control charts for inputs of different types or origins,
different auxiliary materials, seasons, months, weather, working conditions, personnel, shifts, work volumes,
and other factors that are thought to influence the process in individual ways and to cause variation. Separate
control charts should also be drawn up for different types and conditions of detectives, defects, breakdowns,
etc. Dividing the data into different strata is called "stratification."
In this way, stratified control charts are drawn up, and comparisons are made of the state of control shown by
the charts and of the process averages (x, R, p, c, etc.) before and after stratification and between different
strata. When doing this, the following points should be noted:
(a)
When stratifying, it is .best to keep the size of the subgroups as equal as possible.
(b)
In general, if stratification improves the state of control on the control charts, that method of
stratification is usually significant and there is a difference between the different strata.
(c)
If there is a difference between the averages of different strata, there will be differences between the x
values after stratification.
(d)
If there is judged to be a definite difference between R or x for different strata, the cause must be traced,
action must be taken to eliminate the difference, and standards must be revised. After action has been
taken, new stratified control charts must always be drawn and examined in order to check the effects.
(f)
When there is no way of eliminating the causes of differences between different strata, or if the causes lie
outside the range of responsibility for control of the process, the data should be modified to eliminate
these differences only. Fresh control charts should then be prepared using the modified data, and the
investigation can be continued.
2.2.5.3 Some general points concerning analysis using control charts

The following are some general points to note when performing analysis using control charts:
(a)
In process analysis, particularly with the x-R chart, one must pay close attention to the subgrouping and
to the state of control on the control charts and the behavior of R after stratification. It is advisable to
start by trying to make R as small as possible and to get R into the controlled state.
(b)
Analysis employing stratified control charts is used mainly for investigating the presence or absence of
attribute-type causes, checking their seriousness, and deciding on the action needed to deal with them.
(c)
In process analysis, the most effective procedure is often to devise various methods of rational
subgrouping and stratification and actually try them out. The causes thought for technical reasons to
exert significant effects should therefore be analyzed one at a time, starting with the one considered to
exert the biggest effect. Then, if there is a difference between different strata, action is taken to eliminate
it or the data are corrected to eliminate this difference only, and the next cause is analyzed.
(d)
In the world of variation, R (the range) is the basis of process variation. In many cases, if it is possible to
adjust the value of R freely, it naturally becomes possible to set x to the desired value.
95
The following will help in controlling R:

1.
Change the method of subgrouping.
2.
Stratify.
3.
Reduce the variation in sampling and measurement.
4.
When R is not reduced in spite of the above actions, on-site experiments should be carried out using
design of experiment methods, and standards should be revised, equipment rebuilt, and other basic
technical improvements performed.
2.2.5.4 Procedure for analysis in preparation for process control

This section explains the procedure for analyzing a process and preparing to move on to process control. The
discussion focuses on the important x-R chart, but substantially the same considerations apply to other types of
control charts.
(a)
Decide KPI to be plotted on the control charts.

We must decide which KPI should be monitored for checking the process. In controlling the quality of a
product that has a large number of quality characteristics. We must decide which of the characteristics is
important and should be checked. When there are many important quality characteristics, all of them
may be chosen. We must consider the important quality characteristics required by the customer (i.e., by
the next process).
When doing this, many people take the conventional engineering approach and draw control charts for
causes.
(b)
Decide on the type of control chart to be used.

Once the KPI has been decided, we should consider its nature and decide which type of control charts (x R, pn, c, u, etc.) to use.
(c)
Collect data.
If the history of past data is completely unknown, a stratified sampling scheme such as sampling by lot
must be chosen and fresh data must be collected .If possible, at least 100 values should be collected.
(d)
Analyze past data using control charts.
(e)
Draw up control charts in preparation for controlling the process.

If the chart shows an approximate state of control it can be used for calculating the control limits for
controlling the process in future. If it does not show a state of control, various methods may be tried to
obtain a chart that is as close to the controlled state as possible and is also easy to use. SOPs designed to
get the process into this state should be prepared and clearly communicated to subordinates. However,
even control charts that do not show the controlled state can be used by extending the control limits into
the future, plotting data, finding and eliminating the causes when any of the points fall outside the
control limits.
When standards are newly prepared or revised, data resulting from those standards should be taken and
plotted on a control chart. The chart should then be examined and control limits should be re-calculated
.
96
When this is done, we should have at least 100 values or 20 groups of data. The more data we have, the
more precise our estimate of the process (i.e., of the control lines). However, we should calculate trial
limits even if we have only a small amount of data, and then recalculate them once data have been
accumulated.
(f)
Compare with specifications and targets

If the product specifications and targets have been set on a rational basis we should use histograms or
control charts to check whether the state of control (i.e., the process capability) obtained satisfies these
standards and targets. When the standards and targets have not been set on a rational basis, they must
be decided after discussion with customers, the next process and top management.
2.2.6. Using Control Charts for Control

After analysis, we move on to control. The procedure is as follows:
(a)
Prepare control charts for control

When we have finished analyzing the data, the control limits calculated from the analysis are plotted on
control charts in preparation for controlling the process in the future.
(b)
Collect data daily and plot on control charts

To ensure that the work is carried out by the methods decided, one must take samples and
measurements, calculate x, R, or other statistics for each subgroup, and plot them on the control charts.
The control lines should be drawn in before the data are plotted.
(c)
Decide whether the process is in control

If the points plotted lie between the control limits, the process is in control. If any lie outside the limits,
some assignable cause has occurred in the process, and the characteristic that is a result of the process is
therefore showing a large variation. If points on an R control chart fall outside the limits, a type of change
increasing the spread of the product distribution has occurred in the process. If points on an x control
chart fall outside the limits, this shows mainly that a type of change altering the process average has
occurred in the process. However, points on the x chart will also sometimes fall outside the limits when
the variation increases.
If points on a p chart fall outside the upper control limit, an assignable cause giving rise to large numbers
of defective has occurred in the process. If points fall below the lower control limit, either an assignable
cause reducing the number of defective has occurred or inspection has become lax. It should be
remembered that, in general, when points fall outside the control limits, something is usually wrong
with the sampling, measurement, or inspection. Depending on the situation, the interpretation of rules
of abnormality may also be used.
(d)
Trace causes
When a process is judged to be out of control, the person responsible for controlling the process must
immediately track down the causes by using technical and statistical methods. Analysis should be carried
out, and the procedure for tracking down the causes of abnormalities should be laid down in the form of
standards.
97
(e)
Take action
Simply tracing a cause and bringing it out into the open is not control. If the cause of an abnormality is
clear, the following action must be taken:
(f)
(i)
Immediately eliminate the cause and bring the process back into a stable state.
(ii)
Take corrective action to avoid recurrence.
(iii)
For each control chart, decide procedure for taking action (i.e, for eliminating the causes of
abnormalities), what action should be taken under whose judgment (i.e., authority), how far such
action should proceed, the method of reporting to superiors e.g. CAPA form. The action to be
taken by group leaders, foremen, supervisors, section managers, etc., is decided on the basis of
these reports.
Check the results of action

Even when action to eliminate what is thought to be an assignable cause has been taken and recurrenceprevention measures such as revising standards have been put into effect, one should check again to see
whether or not the action was correct and to examine its effects. One of the principles of control is
always to check the results of action taken.
(g)
Recalculate the control limits
98
2.2.7 Interpreting the Charts

What is most important in process control is to grasp the state of process accurately by reading a control chart
and take appropriate actions promptly when anything unusual in the process is found. The most common
means of determining if the process is out of control is to check for instability. One of the first and most widely
used methods for determining if instability exists is the use of AT&T run rules.
Fig. 2.32 Control Chart representing zones
When applying the AT&T run rules, only one half of the control band (area between the centerline and one of
the control limits) is considered at a time. This band is divided in to three equal segments labeled zone A, Zone B
and Zone C as shown in Fig. 2.32. Each zone is 1 wide because the control limit being used are +/- 3.
Rule - 1: A single point falls outside of the 3 limit.
Rule - 2: A lack of control is indicated whenever at least two out of three successive values fall on the same side
of, and more than two sigma units away from the center line as shown in Fig. 2.33.
Fig 2.33
Rule - 3: A lack of control is indicated whenever four out of five successive values fall in zone B or beyond as
shown in Fig. 2.34.
Fig 2.34
99
Rule - 4: A lack of control is indicated whenever seven or more successive points fall in the zone C or beyond. All
seven must be on the same side of the center line as shown in the Fig. 2.35.
Fig 2.35
The above four rules are applied to both sides of the center line.
Rule - 5 (Trends): Trend is defined as continuous movement up or down, a long series of points without change
of direction as shown in the Fig. 2.36.
Some of the more common causes of trends
1.
Tool wear
2.
Seasonal effects, including temperature and humidity
3.
Operator fatigue
4.
Increase or decrease in production schedules
5.
Gradual change in standards
6.
Gradual change in the proportion of defective in each lot.
7.
Poor maintenance or house keeping procedures.
Fig 2.36
100
Rule 6 (Cycles): Cycles are short trends in the data which occur in repeated patterns. This tendency is illustrated
by a series of high portions or peaks interspersed with low portions or troughs as shown in the Fig. 2.37. This is
an indication of assignable cause since the major characteristic of a random pattern is that it does not repeat.
Some of the more common causes of cycles are:
1. Seasonal effects such as temperature and humidity.
2. Worm positions or threads on locking devices.
3. Operator fatigue.
4. Rotation of people on the job.
5. Difference between gauges used by inspectors
6. Difference between day and night shift.
Fig 2.37
Rule 7 (Shifts):
A sudden shift in level is shown by a positive change in one direction which causes a number of x's to appear on
one side of the chart only as shown in the Fig. 2.38.
Fig 2.38
101
Rule 8 (Stratification):
Stratification is a form of stable mixture which has unnatural consistency. A stratification pattern tends to hug
the center line with very few deviations as shown in the Fig. 2.39. In other words, it does not fluctuate as one
would naturally expect (with random sampling), with occasional points approaching the upper and lower
control limits. Most frequently, however, stratification on the X chart may be due to an incorrect calculation of
the control limits.
Fig 2.39
Abnormality Identification in trend chart

Often in service areas line graphs or trend charts are used for monitoring KPIs, this section suggest how to
identify abnormality using trend chart
B
C
Better
Target
C
B
A
Fig 2.40 Categorization of abnormality level
In trend charts data moves around the target line. There may be few data points which are unusually high or low
which may be the abnormal cases. In absences of control limits it becomes difficult to understand if these points
should be treated as normal or abnormal. In these cases abnormality should be defined by a consensus
between operators and process experts. The peaks and troughs should be named as A, B and C. A and B are the
cases where everyone agrees that they are abnormal. Cases of C are ambiguous. The points above (or below)
should be treated as abnormal. At this level limits may be provided called Barbarian limits. In trend charts
abnormality identification can be done using Barbarian Limits.
This limit should be reviewed at regular frequency.
The level of peaks needs to be reviewed and categorized as A, B & C by mutual agreement of process experts
and people working on the process, decide on the chosen limit. Review after certain frequency to again
redefine the limits. These determine the limit of defining as abnormalities based on perception of the person in
charge.
102
In the next stage, after few iterations as limits are reduced to C level a suitable band of control limits named
as 'Barbarian cut' can be incorporated for identification of abnormality in trend chart. These are known as
Barbarian upper limit and barbarian low limit.
Barbarian Upper Limit
Target
Barbarian Lower Limit

Fig 2.41 Identification of abnormality through Barbarian cut
2.2.8 Updating Control Chart Limits

While the revision of control chart limits applies to the initial computation of limits for a given set of data, the
updating of control chart limits pertains to the modification of existing limits on an ongoing chart as mention
below.
a)
Change in Process
An obvious time for updating the control limits is following a change in the process. It is a poor use of a
control chart to make it prove what is already known. Instead, one should use the chart to discover that
which is not known. So when a deliberate change is made, it is logical to collect data following the change
and these new data may be used to compute new control limits. While the new data are being collected
following the change, and prior to the computation of the new control limits, the new data may be
plotted against the old limits as a means of verifying the change in the process. If a change is indicated,
then the new limits are needed. If the new data fit in with the old limits, there is little need to update
them.
b)
When it is judged from the control chart that the process has obviously changed.
c)
Trial Control Limits

Another time to consider updating the control limits is when the limits are trial control limits. Trial
control limits are control limits computed from a limited amount of data. Of course, when there is only a
finite amount of data available this issue is moot. One may always compute control limits using the data
available, and any signals found using trial control limits are likely to be real signals. Thus, one does not
have to wait until a large amount of data have been obtained before computing control limits. But when
the limits for an ongoing control chart are computed from the first few subgroups, and then additional
data are collected, it is generally recommended that the limits be updated when 20 to 30 subgroups are
available. This recommendation of 20 to 30 subgroups is essentially a piece of insurance. By using 20 to 30
subgroup Ranges in the computation of the Average Range the effect of any extreme value will be diluted
and minimized. Of course, a single Subgroup Range that is, say, 10 times bigger than the Average Range
will still dominate the computation and inflate the Average Range, but Subgroup Ranges that are just
outside the control limits will have a fairly small impact when averaged in with 20 to 30 other values.
103
d)
Finally, once the control limits are computed using about 100 observations there will generally be little
change in the limits with further updates. Unless the process is changed, or changes in some
fundamental way, the limits should not need further updated. The practice of automatically computing
control limits every time a control chart form is filled up, and then using these latest limits on the next
sheet, may result in the failure to detect slow trends in the process. Likewise, the automatic updating of
control chart limits in some computer programs will, by default, use all of the data available, even though
some of those data may no longer be appropriate for the current process.
When control limits are recalculated, points lying outside the limits should be dealt as follows:
(1)
Individual data or subgroups that produce points lying outside the limits but for which the causes are
known and against which action can be taken should be omitted when recalculating the control lines.
(2)
Points representing data for which the causes are unknown or against which action cannot be taken
should be included in the recalculation.
The control chart is a versatile tool for use in real-time situations. Therefore, one should always actively control
the manner in which the control chart limits are computed in order to be sure that the limits are appropriate for
the current process. The computation of the limits cannot be divorced from the context for the chart.
2.2.9 Process Capability
Even when all the assignable causes of variation are removed from a process and it operates only under the
chance (common) causes, certain amount of variation is inevitable. This inherent variability of the process is
generally referred to as process capability. It is defined as the least variability of a quality characteristic that a
process is capable of maintaining when in a state of statistical control under a given state of conditions. Process
capability can be described in terms of the distance of the process average from the specification limits in
standard deviation units. It is determined by the variation that comes from common causes. It generally
represents the best performance (i.e. minimum spread) of the process itself, as demonstrated when the
process is being operated in a state of statistical control while the data are being collected, irrespective of
where the specifications may be with respect to the process location and/or spread. The customers, however,
external or internal, are more typically concerned with the overall output of the process and how it relates to
their requirements (defined as specifications), irrespective of the process variation. Since a process in statistical
control can be described by a predictable distribution, as long as the process remains in statistical control and
does not undergo a change in location, spread or shape, it will continue to produce the same distribution of inspecification parts.
Since process capability is used as a basis for prediction of how the process will perform using statistical data
gathered from a process, it is calculated only after a process has been demonstrated to be in a state of statistical
control. There is little point in making prediction based on data collected from a process that is not stable and
repeatable over time. Special causes are responsible for changes in the shape, spread or location of a process
distribution, and thus can rapidly invalidate capability prediction. Assessment of process capability begins after
the control issues have been resolved (special causes identified, analyzed, corrected and prevented from
recurring) and the on-going control charts reflect a process that is in statistical control. The difference between
Control Limits and Specification Limits is given in Table 2.30.
104
Table 2.30 Control Limits Vs. Specification Limits
Control Limits
Inherent to the process
Calculated from data gathered during the
process
Used for judging whether a process is in
a state of Statistical Control
Specification Limits
External to the process
Given by customer (may be internal
customer)
To judge acceptability of individual
product
Assessment of process capability is therefore done under the following assumptions:

l
The process is statistically stable
l
The individual measurements from the process conform to the natural distribution
l
The engineering specifications accurately represent customer needs
l
The design target is in the center of the specification width
l
Measurement variation is relatively small
Note: Any process capability analysis techniques, no matter how precise it appears, can give only approximate
results. This happens because (a) there is always some sampling variation, (b) no process is ever "fully" in
statistical control, and (c) no actual output "exactly" follows the normal distribution (or any other simple
distribution).
2.2.9.1 Process Capability Index (Cp) - It is defined as the least variability of a quality characteristic that a
process is capable of maintaining when in a state of statistical control under a given set of conditions. It is the
spread within which almost all values within a distribution will fall and generally described as within + 3 times
standard deviation or 6 times of standard deviation.
Cp measures the inherent ability of the process to manufacture items conforming to specifications
Cp =
USL - LSL
6
Where,
USL
Upper Specification Limit
LSL
Lower Specification Limit
Cp
Ratio of specification width to process width (in sigma units)
Standard deviation
If Cp > 1 Process is said to be capable as shown in the Fig. 2.42

Cp = 1 Process is just capable as shown in Fig. 2.43
Cp < 1 Process is not capable as shown in Fig. 2.44
105
LSL
USL
Process variation is
less than allowable
variation.
Cp > 1
Ideal situation
6
Fig 2.42
LSL
same as allowable
variation.
USL
Cp = 1
Requires strict control
6
Fig 2.43
LSL
more than allowable
variation.
USL
Cp < 1
Some products always
out of specification
Fig 2.44
106
2.2.9.2 Process Performance Index (Cpk) :

Capability Index (Cp) reflects capability of a process and not its performance. The performance of a process is
determined by both the capability as well as its process setting. The process performance index (Cpk) is
calculated as the minimum of the two capability indices - CPU (capability index for upper specification limit) and
CPL (capability index for the lower specification limit). Please refer Fig. 2.45.
If,
Cpk < 1
=>
There will be some products which do not meet the requirements no matter how
carefully the process is controlled.
Cpk = 1 to 1.33
=>
The process may be controlled very carefully in order to minimize production of out
of specification products
Cpk > 1.33
=>
Process control is not critical and lesser degree of monitoring is adequate.
The steps involved in assessment of the process capability are as follows:

(a) Calculate the process standard deviation
(b) Calculate the process capability using the following formulae
Upper Specification Limit Lower Specification Limit
Cp = --------------------------------------------------------------------------6 * Standard Deviation
Upper Specification Limit - Measured Process Average
CPU = -------------------------------------------------------------------------3 * Standard Deviation
Measured Process Average - Lower Specification Limit
CPL = --------------------------------------------------------------------------3 * Standard Deviation
Cpk= Minimum of CPU & CPL
Where
CPU = Upper Capability Index
CPL = Lower Capability Index
Cp
Cpk = Process Performance Index
= Capability Index
(c)
Evaluate the process capability in terms of meeting customer requirements
(d)
Improve the process capability - To improve process capability, and thus the performance, we should
concentrate on reducing the common causes, which will usually require management action on the
system to correct. As a general rule, these system-related causes for unacceptable process capability
(such as machine performance, consistency of input material, the basic methods by which the process
operates, training methods etc.) may be beyond the abilities of the operators or their local supervision to
correct. Instead, they may require management intervention to make basic changes, allocate resources,
and provide the co-ordination needed to improve the overall process performance.
107
USL
LSL
Cp = 1
Cpk = 1
Cp = 1
Cpk = 0.5
Cp = 1
Cpk = 0
Fig 2.45 Relationships between Cp & Cpk
108
Abnormality Analysis
2.3 Abnormality Analysis

As per Collins dictionary, abnormal means not normal or deviating from usual or typical. So the outcome of
a process which deviates from the plan or expected value is called an abnormality. An abnormality occurs in a
process due to the presence of a Special cause. This is quite easy to identify when the KPI is being monitored
using Control Charts. As explain in the previous chapter, abnormality can be identified for the KPIs being
monitored through control/trend chart.
Usually abnormality is considered undesirable or bad but it is not so. While an outcome which is worse than the
expected value is an abnormality, results better that the expected value are also abnormal. We need to analyse
both types of abnormalities. BAD abnormalities should be analyzed to avoid recurrence whereas GOOD
abnormalities should be analyzed to identify the good practice(s).The good practice(s) should be then
incorporated in relevant SOP(s).
2.3.1 Abnormality Analysis Framework
To help the KPI owners in identifying causes of abnormalities, a framework has been proposed by Apex DM
subcommittee called Abnormality Analysis Framework. The framework lays utmost importance on
existence and adherence to SOPs. It is assumed that if SOP exits and people follow SOP then abnormality
shouldnt occur. When an abnormality occurs it should be captured and documented as soon as possible. The
KPI owners should identify the cause(s) through phenomenon observation and take action on the identified
cause(s). This framework should also be used for summarizing the causes of abnormalities. It is important to
use separate framework sheets for different KPIs.
1.0. Abnormality Occurs
1.1 PhenomenonObservation
No
2.SOP
Available
2.3 Make SOP
YES
2.2 SOP Not Followed
2.1 SOP Followed
3.1 SOP Adequate
4.1 Look for special causes

for abnormality
No
6.1 Do correction as
required
4.2 Lack of process

Knowledge/ Skill in
preparing SOP or root
3.3 People are Trained on SOP
4.4 SOP Deliberately not

followed
4.3 Changed
conditions / New
5.3a Conflict with pursuit &

other objectives (eg Efficiency
vs effectiveness)
5.2 Train the person for

preparing SOP
5.1 Does it
require SOP
revision ?
3.2 SOP Not Adequate
3.4 People are not
4.5 Forgot / Missed to

follow SOP
5.4 Difficulty in
following SOP
5.5 Use Fool

Proofing
6.6 Revise SOP
6.7 Revise
SOP
*
5.3b Coaching people to
YES
6.2 Revise
SOP
6.3 Revise
SOP
6.5 Revise SOP

after removing
ambiguity
6.4 Revise SOP
No
8.MSC
requires
revision?
7.0 Impart
Training on SOP
Continue with the

process
YES
8.1 Revise MSC
Decision of SOPRevision to be taken based on NewRPN
Fig. 2.46 Abnormality Analysis Framework

109
When an abnormality has been identified the KPI owners should first do a phenomenon observation i.e. find
out the reason behind the occurence of the abnormality. In order to facilitate the process of observation and
finding out the reason behind the abnormality, an abnormality analysis framework has been developed. The
framework basically lays down the investigation/anaysis steps as below:
1)
He/ she should check if SOP or standard exists for that activity or not. If not then an SOP should be
prepared and people need to be trained on the same
2)
If SOP exists and yet not followed, reasons for not following the SOP should be found out. The reasons
could be the following:
1)
SOP not followed as people not well aware- in this case training needs to be provided
2)
If someone deliberately didn't follow the SOP, attempt should be made to understand the reason.
Blaming people will not help. There may be certain difficulties which may force people to skip few
steps or take a short-cut. These difficulties should be removed by the managers. If there is a case of
too many steps are there and chances of error are high then Mistake Proofing can be applied
3)
In case an abnormality occurs despite adherence to SOP we need to understand if the SOP is
inadequate or there is a change in 4M (Man, Machine, Material and Method) condition.
a) SOP is adequate but due to some sporadic incidence abnormality occurred- in this case
decide whether the SOP needs to be modified immediately or you would like to observe and
understand whether the incidences are likely to happen more often and then take a decision.
b) SOP inadequate- This can happen due to two reasons:
i.
There is a change in environment and the current SOP is unable to address the same- in
this case the procedure to handle such situations need to be defined and accordingly
SOP to be modified.
ii. The steps are not well defined which makes it difficult for the operator to understand
what to do- in this case understand the need of the operators and rewrite the SOPs.
Based on the above explanation, abnormalities related to the process should be observed and categorised.
These observations needs to be summarised and reviewed at defined frequency to decide on the action and
take corrective and preventive
actions accordingly.
Example of Use of Abnormality
Analysis Framework:
Abnormality Analysis in
controlling Billet Temperature at
New Bar Mill
Step 1. Identification of
Abnormality: Abnormalities are
identified through control charts
Fig. 2.47 Abnormality Analysis Framework
110
Step 2.Analysis of Abnormality through SOP based analysis framework: Each abnormality should be analysed
by talking to the operators and doing phenomenon observation. The findings should be put on the Abnormality
Analysis Framework
Fig. 2.48
Step 3.Summarise the abnormalities at certain period: The abnormalities should be summarized at a fixed
period and the KPI owner should summarise as to what is wrong in the system that is causing abnormalities.
Fig. 2.49 Abnormality Analysis Framework Example

111
Step 4. Taking action for Recurrence Prevention: Based on the analysis recurrence prevention actions should be
initiated. In NBM, the predominant cause for abnormalities were found to be Difficulty in following SOP. The
SOPs were simplified and IT intervention was made to make it easy to follow.
Fig. 2.50
112
2.3.2 Watanabe Analysis

The Watanabe model is a precursor to failure analysis and usually the most useful tool for trending of failure
data and classify for fixing maintenance and equipment strategy Watanabe analysis should be done for each
failure. The distribution of failures in the Watanabe model acts as good indicator of maintenance practices. If
the majority of failures are of countermeasure not maintained (CMNM), it helps to understand the broadly
the focus areas for the shop. Watanabe model is given in Fig. 3.22. A sample of Watanabe Analysis is given in
Fig. 2.51.
TOTAL NO. OF FAILURE (Major+Minor)
95
New or Sporadic
15
Repetitive or Chronic
80
Poor JUSHU HOZEN
Poor Time Based

maintenance
Design Weakness
Poor Skill
TBM Schedule not ok
TBM Skill not ok
TBM not followed
Counter Measure
Not taken (CMNT)
30
Solution known
12
18
Weighting for spares
Weighting for shutdown
Weighting for investment

approval
10
Design change required
Design change not required
Counter measure not

Maintenance (CMNM)
20
Not Included TBM
Solution not known
Counter measure not

effective (CMNE)
Analysis not correct
Analysis correct but

implementation not correct
Poor Skill
Poor Spare Quality
Poor Design change or

wrong specification
Counter measure not

standardized
Counter measure
standardized
10
20
Standard not followed
Standard not followed

but not adequate
15
Carelessness
Missed to follow
Not Trained
Difficult to follow
Fig 2.51 Watanabe analysis sample
113
20
2.3.3 Root Cause Failure Analysis

Root Cause Failure Analysis (RCFA) is a methodology mainly applicable in maintenance area. This is a framework
which helps in identifying the exact causes resulting in a particular equipment failure/issue. It is a widely
accepted fact that majority of equipment failures are chronic in nature, which in turn means that these occur
due to same reasons, thereby highlighting the need for RCFA. Hence, a properly done RCFA would lead to
identification of causes with perfect correlation to the failure which would mean eliminating that particular
failure. A typical RCFA process is given in Fig. 2.52. The broad steps are detailed below:
When a failure occurs, the following steps should be followed.
a.
Take immediate action to minimize the consequences.
b.
Go for Phenomenon Observation to get details of the failure regarding the 5W1H (When, What, Where,
Who, Why, How) investigation.
c.
Check SOP of that process and Preventive Maintenance report of the equipment whether they are
available. Check whether any Preventive Maintenance schedules has been skipped or not.
d.
Carry out Watanabe Analysis and record the findings in standard format of Watanabe Analysis sheet
(Form No. - TQM/DM/WTN/014)
e.
In case, failure is of minor impact, record the data and segregate top failure modes for that failure that
may be leveraged in future for RCFA.
f.
In case, failure is of major impact, form an RCFA team involving central expert group, if required.
g.
Arrive at corrective and preventive action and record it in the Standard Format of CAPA (Form No. TQM/DM/CAPA/007)
h.
Follow the CAPA in a planned manner, to address the root cause.
i.
Standardize the action and horizontally deploy in other similar areas.
j.
The recommendations of RCFA need to be implemented for recurrence prevention of the abnormality.
The corrective and preventive actions are planned in proper CAPA format available online at the 'My
TQM' site (Intranet) and needs review on a regular basis. Yes
Standardize & do horizontal
deployment
FAILURE OCCURS
Desired effects
achieved?
Inform symptoms to relevant
people
No
Implementation plan
Immediate fix/actions to
minimize consequence
Yes
Involve experts
Check SOP and last PM
report
No
Solution
arrived?
RCFA team to be
formed
Investigate incident & record

(Watanabe sheet)
Yes
Significant Delay?
No
Key Stages
Top failure mode segregated

for RCFA
Data captured
Fig 2.52 RCFA Process Flow

114
Pareto on 3 -monthly basis

(both frequency and impact)
2.3.4 Implementing corrective & Preventive Action (CAPA on Identified Abnormality)

Corrective & Preventive Action: Identification of the abnormalities/ non conformities/deviations against the
target/limits and taking corrective and preventive actions for recurrence prevention.
Corrective action: Action to eliminate the cause of a detected abnormality /non conformity or other
undesirable situation.
Preventive action: Action to eliminate the cause for potential non conformity or other undesirable potential
situation.
Preventive action is taken to prevent occurrence whereas corrective action is taken to prevent recurrence.
A correction is made to eliminate the detected abnormality/non conformity (e.g. reworks, regrade, and repair)
Table 2.31 Guideline to fill the CAPA format
Requirements in the form
What to fill
i.
Corrective/Preventive action
Tick whichever is relevant
ii.
Details of the initiator & Number
Fill name, section, designation, date of filing

the CAPA, date of occurrence/place of
occurrence for corrective action.
iii.
Mention of the Non conformity/potential

non conformity on basis of core goals
Tick against P,Q,C,D,S,M
iv.
Brief description of Non

conformity/abnormality/deviation/
Potential non conformity
Description of the problem
v.
Person(s) assigned
Name of team members
vi.
Section head, name designation, date
Information
vii.
Related Key performance Indicator
KPI needs control/monitor
viii.
Source of identification of abnormality

/KPI needs control/monitor potential non
conformity
From where abnormality was noticed
ix.
Analysis of the problem
Put brief description of analysis or attach sheets
x.
Conclusion
Put conclusion of analysis
xi.
Tools used
Phenomenon observation/why - why analysis
xii.
Approved by
Name of who approves head
xiii.
Corrective action to be taken
What corrective action to be taken
xiv.
Action By
Name of person(s) who will take the action
xv.
Target date
Date of completion
xvi.
Compliance date
Actual date of completion
xvii.
Performance indicator
Performance Indicator which is being

monitored/controlled
xviii.
Results (before taking

corrective/preventive actions)
Data before result
115
Reviewing Daily Management Implementation
2.4 Reviewing Daily Management Implementation

2.4.1 Review of Daily Management Implementation
In order to understand and visualize the process performance with respect to the process inherent strength as
well as against the customer's specifications, a 2 x 2 matrix on Stability & Conformity can be drawn and
appropriate action/direction can be decided to improve the process. The purpose of visualizing the
performance on Stability & Conformity matrix is to understand the status of Daily Management
implementation and decide on action required.
The performance can be reviewed at three levels viz.
(a)
Overall divisional level (b) Department level (c) Sectional level

However these items to be discussed at each level may be different as explain below
(1)
Overall Divisional level- DM parameters supporting divisional Business Objective & Strategies should be
included in review.
(2)
Department level R&O, MoU, DM parameters supporting departmental BO& S should be included in
review.
(3)
Sectional level-items in control plan

It is imperative to check comprehensiveness of the KPI being monitored in P,Q,C,D,S,M,E category.
2.4.1.1 Visualizing the KPIs monitored through Control chart on 2 x 2 matrix

At any point of time in a department, the various KPIs being monitored through control charts should be
classified in the following 4 quadrants of 2x2 matrix as shown in the Fig. 2.53.
(1)
Uncontrolled (unstable) state and not meeting specification (non-conforming)
(2)
Controlled (stable) state but not meeting specification (non-conforming)
(3)
Uncontrolled (unstable) state but meeting specification (conforming)
(4)
Controlled (stable) state & meeting specification (conforming)
CONFORMITY
STABILITY
Fig 2.53 2X2 Matrix on stability & Conformity
116
It should be the ultimate objective of the department to achieve the quadrant 4 above, which shows that the
process is both stable & conforming. In order to achieve this situation for other quadrants, the
actions/countermeasures required will be as under:
Quadrant 1: Process should be made stable (controlled state) first through DM by taking corrective and
preventive actions on all special causes. Problem solving through a QC story approach should also be initiated
to reduce the chance-cause variation and make the process capable to produce conforming products as per
customer's specifications. Since the process is unstable ,applying DM itself will give significant benefit.
Quadrant 2: While the process is in controlled state, the present DM system should continue to keep the
process stable in future too. At the same time, problem solving through a QC story approach should be
initiated to reduce the chance-cause variation and make the process capable to produce conforming products
as per customer's specifications. Rejects can be generated in a well-managed stable process. While the daily
management should continue for sustenance, problem solving activity should be taken up for producing
conforming products.
Quadrant 3: While the process is producing ok (conforming) products as per customer's specifications
presently, in order to ensure that this continues to be the case, the process should be made stable (controlled
state) through daily management by taking corrective and preventive actions on all special causes. Though the
products conform to the specification, the process is unstable. In order to continue producing conforming
products, DM has to be applied.
2.4.1.2 Process of reporting KPIs in 2 x 2 Matrix on Stability & Conformity
Visualization of the performance of key performance indicators (KPIs) of a department through the 2x2 matrix
on stability-conformity can be done only for those KPIs, which are being monitored through control charts as
shown in the Fig. 2.54. Following steps should be taken for doing the same:
a)
For assessing Stability

1.
Choose KPIs which are monitored through control chart.
2.
Study the plotted control charts of these KPIs for the desired period (monthly/quarterly)
3.
Put remarks/summary on special causes for each KPI.
4.
A KPI (process) is unstable if the control chart of that KPI fails on any of the control chart
interpretation rules explained above.
5.
Minimum 30 data points should be considered while judging the stability.
6.
The data should be checked with respect to four sources of instability: points lying outside the
control limits and rules mentioned in the section 2.2.7
7.
If 3% or more data points lie outside the control limits (including the above type of abnormalities)
then the KPIs will be considered unstable.
8.
Conclude for stable/unstable status on each KPI (as per example shown in the Fig. 2.54, special
causes are evident so it can be concluded that the processes is unstable ).
117
Fig. 2.54 Control chart on billet temperature at NBM
b)
For Assessing Conformity:

a.
Mention Specification Limits of the KPIs as per customer/internal requirements
b.
Prepare Histogram showing the KPI's past performance for the desired period
(monthly/quarterly). In the example Fig. 2.55, the KPI is within the specification limit and
therefore conforming.
c.
Calculate percentage non-conformance with respect to specification limit.
d.
The KPI (process) is said to be capable, if there is no non-conformance during this period.
Fig. 2.55 Histogram on billet temperature on NBM

118
c)
Review through 2X2 Matrix: Based on the above assessment of stability and conformity the quadrant is
decided. In this example case the KPI (NBM billet temperature) falls in quadrant 3, as shown in the
Fig.2.56. In this case process should be made stable by taking corrective and preventive actions on all
special causes.
Fig 2.56 Final status of KPI on the 2X2 Matrix on stability conformity (example)
2.4.1.3 Visualizing the KPI monitoring through Trend Chart on 2x2 Matrix
Visualization of the performance of key performance indicators (KPIs) of a department through the 2x2 matrix
on stability-conformity can be done only for those KPIs, which are being monitored through trend charts as
shown in the Fig. 2.57. Following steps should be taken for doing the same:
Target
Target
Better
Better
Yes (Stable)
Better
Stability
Better
No (Non-conforming)
Yes (Conforming)
Conformity
No (Un-stable)
Target
Target
Fig 2.57 2x2 Matrix for the KPIs tracked through trend chart (extreme cases)
a)
The judgment criterion for stability

Define & standardize the judgment criterion for abnormality for the section/department as per section
2.2.7
b)
1.
Minimum 30 data points should be considered while judging the stability.
2.
If 3% or more data points are judge to be abnormal peaks identified as per criteria then the KPIs
will be consider and stable (as per example Fig. 2.58 the KPI is unstable).
The judgment criterion for conformity

1.
Mention target Limits of the KPIs as per customer/internal requirements
2.
Prepare Histogram showing the KPI's past performance for the desired period.
3.
Calculate % Non-conformance with respect to target limit(s). As per the in Fig. 2.59 the KPI is non
conforming with respect to specification limit.
119
Fig. 2.58 Abnormality identification of charge weight at LD vessel
Fig. 2.59 Histogram
c) Review through 2X2 Matrix: Based on the above assessment of stability and conformity the quadrant is
decided. In this example case the KPI (charged weight) falls in quadrant 1, as shown in the Fig.2.60. In this
case process should be made stable by taking corrective and preventive actions on all special causes.
Problem solving activity should be taken up for producing conforming products. Applying DM itself will give
significant benefit.
Charge Weight
Fig. 2.60 Final Status of the KPI on 2 x 2 Matrix for trend chart
120
2.4.2 Evaluating Maturity of Implementation of Daily Management

Lose Interest &
Discontinue
Better
Stage 4
Break through
+ CAPD
Stage 1
Stage 2
Stage 3
Visualization +
JID, KKD
Standardization
Stage 4
Stabilized +
CAPD
Time
Fig. 2.61 Stages of Daily Management
2.4.2.1 Stages of Daily Management

Stage 1 (Standardization)
Once the organization introduces a systematic deployment of Daily Management at its departments, the roles
and objectives of the departments/sections as well as the jobs they need to do to achieve their objectives
becomes clearer to all concerned persons. For doing these jobs in a standardized manner, Standard Operating
Procedures (SOPs) are created/revised and basic education and training is imparted to all employees.
Managers start paying attention to the jobs being done by the front-line employees by periodic review/audit to
ensure that front-line employees are following the SOPs.
i) Major effects at this stage
This situation also helps in effective communication between managers and front-line employees. As a result,
the organization gets big impact/effect on making their processes stable.
ii) Some key success factors in this stage- Promotion strategy
Total participation of all employees, provision of sufficient education and training to all members, visualizing
the effects of DM deployment (both tangible and intangible), creating a pool of members who have benefitted
from this deployment and they should propagate/publicize the achievement to all other employees.
Stage 2 (Visualization & Improvements through JDI/KKD approach)
In this stage of Daily Management deployment, due to the plotting of KPI (Key Performance Indicators) data by
the front-line employees, self-control by them starts working through identification of abnormalities and
making corrections. These corrections are initially based on JDI (Just Do It) and/or KKD (Knowledge, Experience
& Intuition) approach and just by taking these actions,
Number of abnormalities will reduce to a great extent resulting into remarkable improvement in the KPI
performance in terms of its stability. This is the beginning of empowerment to the front-line employees as
they take the ownership of the KPI and ultimately make them stable.
ii) Some key success factors in this stage- a promotion strategy
At this stage, participation of all employees in Daily Management deployment should be focused and
121
abnormality identification and resolution following JDI/KKD approach should be good enough. There may
not be a mandatory requirement of following the scientific (data & logic based) QC story approach of
problem solving to take corrective and preventive action on the identified abnormalities at this stage. Site
audits and assessments are very effective.
Stage 3 (Stabilization with CAPD)
Once Stage 2 has been achieved, continuous application of the same results into the processes becoming
stabilized for a long term and the front-line employees/managers start following the basic CAPD (CheckAnalyze-Plan-Do) steps. As a result, abnormalities are prevented from recurrence and the process improves
progressively and gets stabilized. This stage is the Standard stage of Daily Management.
I) Major effects at this stage
The processes become stable. Managers can spend longer time for strategic issues. Front line employees are
motivated as owner ship is created at their level.
ii) Some key success factors in this stage
Continuous attention and involvement from managers will be required to sustain the improvement achieved in
this stage. Managers and front-line employees should understand that continuing these activities to sustain the
performance is basically a No Hero Job and the organization should institute adequate reward/recognition
programs so that this job continues and people do not get bored and lose interest in continuing these basic
SDCA-PDCA activities. Managers should also analyze chronic/repetitive abnormalities using the scientific QC
story approach to resolve them. The overall effect of pursuing these activities should also be visualized and
demonstrated to all areas and at all levels to sustain these activities.
Stage 4 (Breakthrough improvement with CAPD)
At this stage of Daily Management deployment, once all the process abnormalities (including specific trends,
inherent nature of instability etc.) have been studied in-depth and appropriate countermeasures have been
taken, big improvements in the process happens and process becomes very stable for any types of cases.
Change management becomes easier and easier with the active involvement of the front-line employees and
managers.
The processes become stable. Big improvements can be experienced and the employees are able to handle all
types of disturbances in the system very smoothly.
ii) Some key success factors in this stage
For a useful and realistic KPI-based management system, deep analysis of abnormalities using scientific
methods/models for each of the processes will be required to further improve the processes. This will also
need strong & continuous support of senior leadership team.
Stage 5 (Unfavorable stage Lose interest and discontinue)
If the senior leadership team and managers do not pay enough attention to Daily Management activities after
Stage 3, it could prove to be unfavorable. Once the process has become stable (in Stage 3), the front-line
employees and managers may lose interest and get bored of doing continuous activities (No Hero Jobs) of
plotting data, identifying abnormalities and doing PDCA. While data may still be getting plotted, these are done
122
without paying much attention and abnormalities, even if they are present, are either not identified or not
followed up with actions. As a result, both front-line employees and managers feel free from this boring job and
get freedom from following standards. While there may not be any immediate negative effect in the short
periods, in the long period, the organization will come back to Stage 1 or even worse than this stage. Even the
organization wants to restart the Daily Management activities through Stage 1 again, it will take much longer
time (may be 3-5 years) as the people will resist to implement the system again based on their previous
experience and it will be difficult to break this resistance.
2.4.2.1 Daily Management Evaluation Criteria:
Based on the above, the stage of DM implementation can be evaluated using the following criteria.
Table 2.32 DM Evaluation Criteria
SN
Steps
DM Stage # 1 :
Standardisation : Setting up a
structured Daily Mangement
process in place
DM Stage # 2 : Visualisation and

improvement through JDI/KKD:
Monitoring of Key Performance
Indicators & Identification of
abnormalities/ deviations
DM Stage # 3 : Stabilization :
Taking Corrective & Preventive
actions (Rotation of PDCA) and
revision of standard operating
procedures
10
11
The KPIs are being monitored as planned in the Control Plan/KPI Tracker.
Abnormalities/deviations are being identified with reasons and
documented, as relevant, while monitoring these KPIs.
The department follows a structured review process for DM

implementation . Visualization of KPIs in the form of Summary of the status
of all the KPIs ( 2 x 2, Traffic Signal System), trend of
abnormalities/deviations, etc. is done and appropriate actions are being
initiated as a result of these reviews.
As a result of the above activities, has the department achieved sustained and
gradual improvement in KPIs in terms of reduction in no. of abnormalities/
deviations, Risk Priority Number (RPN) values in Process FMEA etc.
The relevant Standard Operating Procedures (SOPs)/Decision Trees have

been prepared as indicated in the Control Plan/KPI Tracker and are
readily available at the point of use.
Corrective and preventive actions being taken on all the abnormalities

based on systematic root - cause analysis. The standard operating
procedures (SOPs)/decision trees etc. being revised/newly created, as
appropriate, after the above corrective & preventive actions
The Daily Management documents e.g., Roles & Objectives, Process Flow
Management System Chart, Key Performance Indicator (KPI) Tracker, KPI with
customers has been signed and the related KPI has been selected the sections of
the department. Memorandum of Understanding (MOU) Chart, Process Failure
Mode & Effect Analysis (P-FMEA), Control Plan, Drill down etc. (as required) of the
department have been prepared, for all for monitoring in Control Plan/KPI Tracker.
All the concerned employees of the department have been formally trained
on daily management concepts and are aware/ knowledgeable on the
above process (including control charts/trend chart interpretation/SOP/
Decision Trees etc., as applicable).
Evaluation Criteria
Stage # 4 : Breakthrough
improvement - Horizontal
Deployment and Customisation
of approach
The above DM activities been horizontally deployed at all the

sections/units of the department. The frontline managers and
employees are actively involved in monitoring and adressing abnormalities.
Over a period of time, the department customised its approach to address
the inherent nature of instabilities (variation in raw material, degradation
due to thermal stress or high speed etc).
As a result of above activities, has the department achieved sustained and
dramtic improvement in KPIs over a period of time.
123
Chapter 3
Daily Management Deployment

in various Functions & Process Flow
Daily Management in Operation Function
3.1 Daily Management in Operation Function

At the operation function of a department, the prime objective of DM is to ascertain whether our processes are
stable or not and whether they are capable of catering to the customer's requirements (process capability) or
not. The activities of DM, therefore, is to stabilize the processes, reduce their variability and develop
appropriate control plans in order to keep the process within the control limits. In order to do this, the
followings are the various steps of implementing DM activities at any operation function (also depicted in the
Daily Management Process Flow for Operations in the Fig.3.1):
1.
Identify Role & objectives by answering Dr. Kano's questions
2.
Develop Process Flow Chart.
3.
Priortize and Identify Key performance indicators by carrying out PFMEA (Process Failure Mode and
Effect Analysis) and assigning Risk Priority Number (RPN)
4.
Drill down the KPIs to the frontline employee level
5.
Develop & document Control Plan for routine control of processes along with the standard operating
procedures/instructions/decision trees to control the processes including visual management for the
front-line supervisors/operators.
6.
Monitoring the performance measures as per the control plan using control charts/trend
charts/Checklists etc. as appropriate.
7.
Observe as per abnormality analysis framework and take corrective and preventive actions for
eliminating special causes/abnormalities (through rotation of PDCA).
8.
Develop/modify the standard operating procedures and train concerned persons, as applicable, for
standardized approach on the revised procedures in order to ensure recurrence prevention
While doing the above, it is advisable that all the documents on Roles & Objectives, Process Flow Chart, Process
FMEA, Control Plan, Standard Operating Procedures/Decision Trees etc. as well as all the records of monitoring
and corrective and preventive actions should be part of the prevailing quality management system (ISO 9001 or
TS 16949) of the department. This will help in having a daily management system, which is integrated with the
existing quality management system of the department and will avoid duplication of documents as well as keep
all these documents and records under control, following the document control and record management
procedures of the quality management system. These documents/records should also be made auditable by
the internal as well as external audits done under the ISO 9001/TS 16949 quality system certifications. This will
be particularly important for the daily management activities done for monitoring the key performance
indicators, identifying the abnormalities/ deviations against the target/limits and taking corrective and
preventive actions for recurrence prevention as these documents/records will be fall under the clause nos.
8.2.3 (Monitoring and measurement of processes), 8.5.2 (Corrective action) and 8.5.3 (preventive action) of the
ISO 9001:2000 quality management system.
124
Setting The Objective

Identify Critical KPI
Design the control
system for KPI
Revise standard
procedures & target/
limits
Implement as per
designed control system
Analyze & take

recurrence preventive
action
Observe & note the
reasons for abnormality
Yes
Check for
abnormality
No
Immediate remedy
Review
Review/Update FMEA/ Control Plan/SOP based on customer feedback/Internal Problems etc.

Assess KPI against 2X2 matrix on process stability-Product conformity & Initiate ASPIRE
Projects on Non conformance
Chief
Head
Sr. Manager/Manager
Asst. Mgr./Sup/Sr. Associate
Fig. 3.1 Daily Management system for Operation functions

Table 3.1 Tools & Objective used at various steps
Objective
Setting
Objectives &
Identify KPIs
for Daily
Management
Step
P1
D1
D2
Description
P1.1 Identification of roles &
objective
P1.2 Identification of customer
Requirement
P1.3 Identification of Process KPIs
P1.4 Prioritization of KPIs
P1.5 Decide KPIs on basis of step P1
along with their limits/targets
P2.1 Formation/revision of SOP for
identified KPIs
P2.2 Develop a system for checking
KPIs
D3.1 Implement as per SOP
D3.2 Monitor as per control plan
C1
C4.1 Identify abnormalities
C2
C4.2 Observe and note the reasons

for abnormalities.
A4.3 Take Immediate correction
A4.4 Analyze and take corrective or
preventive actions
P2
Design the
control
systems for
KPIs
Implement as
per designed
Control
system
Check for
Abnormality
& make
correction
and recurrence
prevention
Revise
standards,
targets/ limits
as applicable
P3
P4
A1
A2
A3
A5.1 Modify SOPs

A5.2 Revise targets/ limits
A5.3 Provide Training to concerned
persons
125
Tools
1.1 R & O
1.2 MOU
1.3 Process Flow chart,
KPI drill Down
1.4 Process FMEA
Format No.
TQM/DM/R&O/001
TQM/DM/MOU/009
TQM/DM/MOU/010
TQM/DM/PFC/002
TQM/DM/FMEA/003
2.1 SOP
Decision Tree
2.2 Control Plan
2.3 KPI tracker
3.2 Control chart, trend
chart, check sheet
etc. KPI tracker
4.1 & 4.2 Control chart,
trend chart, check
sheet etc.
4.4 CAPA and

Abnormality analysis
Framework
TQM/DM/CP/004
TQM/DM/KPI/005
TQM/DM/KPI/005
TQM/DM/CAPA/007
TQM/DM/AAF/010
The DM system for operation has been explained in Fig 3.1.The various steps of DM implementation are
visualised using a simplified flowchart .It also shows the roles and responsibility depicted in color for each
activity. Each step of Daily Management implementation for the operations function has been explained in
detail including the activities and tools to be used in Table 3.1 .The various steps have been divided in PDCA and
has been allocated step number as well for easy reference. These step numbers are used as cross references in
the case study to describe each step against objectives of DM implementation.
3.1.1 Case Study: Controlling Nitrogen (N2) Pick up at LD2 & SC by DM implementation
The process flow of steel making and casting of slabs is shown in Fig. 3.2. The case described is at slab casting
stage. Nitrogen pick up is an important parameter to control casting related downgrading.
Fig 3.2 LD2 & SC Process Flow
When there is contact of steel with air, it deteriorates cleanliness of steel.N2 Pick up in Tundish is indicator of
amount of re-oxidation (air contact) in Tundish, hence it increases flushing and level fluctuation. Slab casting
related Quality downgrading increase if steel comes in contact with air. Nitrogen pick up can be described as
N2 in Tundish steel sample N2 in last station (e.g. LF, RH)
Steel
Ladle
3
Stopper
2
1 Shroud
Tundish
Measurement
Point
4 Submerged Entry Nozzle (SEN)

5
Fig 3.3
Mould
Indicates various potential points for air ingress and hence increase in Nitrogen pick-up
The DM approach and steps followed to control Nitrogen pick-up, has been explained below using cross
reference of the Table 3.1
126
3.1.1.1 Setting Objectives & Identify KPIs for Daily Management

Step P1:
P1.1 Identification of jobs for Daily Management: Source Roles & Objectives
To achieve objective of producing defect free slabs for despatch, DM implementation for controlling nitrogen
pick up to avoid reoxidation of steel was selected.
Table 3.2 Roles & Objective
Production
/ Service
What is the
role of
Department /
Section
What Is the Objective

of the Job of the
Department / Section?
Productivity
Department
/ Section
By what indicators,
do you evaluate
whether the job of
the Department /
Section is
successful or not?
Casting Speed
Yes
Production as
per ABP plan
Metal in Mould
Yes
Yes
To convert
liquid steel
into slabs as
per order
Yes
Quality
Production
LD#2 & Slab Caster
Is data
What are the
available
Critical
for the
Concerns ?
KPMs?
Produce defect
free slabs for
despatch
Cost
Safety
Morale
Ensure safe
working
environment to
Employee
involvement in
improvement
activity
Delay Heat
Arrival & High
Superheat
Action to taken based on the Speed

Delay Management system & reason for
any deviation to be analyzed & corrective
action to be taken.
Action to taken based on the BDS alarm
Management system, & reason for any
Sticker alarms deviation to be analyzed & corrective
action to be taken.
Unplanned Cap- Reduction in Tube Failure cases by
off due to
analyzing failure reason and taking
caster
corrective action
Breakouts
Machine health Monitoring
Sticker alarms
Same as BDS above
Actions to be taken based on Daily
Mangement of Nitrogen Pick up to avoid
reoxidation of steel
Flushing
Improved Refractories to control clogging
Caster Related
Downgrading
Yes
Unplanned Capoff
First Aid casees,

LTIFR, safety visits &
observations as per
Yes
Not following
safety
standards, High
Reduction in Flushing related MLF(action

as above)
Reduction in Interroll buldging by
improving secondary spray water
Improvement in Mould level control
system
Reduction in tube breakage cases
Reduction in SEN chockage cases
(CASTTEMP)
Improve process safety,personnel safety
and training of employees and
contractors on SWP's.
% employee
involvement in
SIP/SGA/DMAIC
Yes
Low employee
involvement in
SIP/SGA
Implement action plan for 90% Employee

involvement in improvement projects and
quick reward/recognition system
Yes
Conversion cost
as per plan
Action Points for critical concerns

with responsibility & timelines:
TCD Tundish Life
Mould Level
Fluctuation
Responsib
ility
Timelines
RR
Every
month
RS
Every
month
RKS
Every
Month
MP
Daily
Controller
Each Heat
RR
Mar'13
RKS
Mar'13
RR
Mar'13
RR/RKS
Mar'13
RR
Mar'13
SH &
supervisors
Every
month
All officers
Every
month
P1.2 Identification of Customer requirement through MoU

Refer to section 2.1.2
P1.3 Identification of Process KPIs
The purpose of developing process flow chart is basically to identify the input sources of variation and the
process characteristics critical for delivering the output requirements specified by the customer (next process).
In this case process flowchart was prepared and the input/output characteristic, sources of variation were
determined. Refer to section 2.1.3 for details of process flowchart.
P1.4 Prioritization of KPI
Process Failure Mode and Effect Analysis (PFMEA) is a systematic tool for identifying effects or consequences of
a potential product or process failure and methods to eliminate or reduce the chances of occurring of these
failures. The highest concern item emerging out if high RPN was identified through Process Flow chart and
PFMEA. In this case Nitrogen pick-up at tundish had the highest RPN. The current process controls, potential
causes of failure and their effect were also described.
127
One of the element is not conforming 2 Following process chart

and guideline
to the TCD
Unshrouded Casting
Nitrogen pickup in tundish
5 Argon Shrouding
Proper Tindish covering
Current Process Controls

Detection
RPN
Current Process Controls

Prevention
Detection
Defective
slabs
10.O03 Slab of Chemistry not
produced
correct
matching as per
chemistry
process chart Nitrogen
beyond
TDC
Potential Cause (s) of Failure
Occurrence
Product Output
Potential
Potential Failure
Characteristics
Effect (s)
Mode
Requirement
of Failure
Severity
32
160
Erac Sample analysis - Each Heat

Manual Inspection
Continous Trading and Alam
Manual Inspection-Ladle changeover
Fig 3.4 PFMEA of Slab Caster
Step P2
P1.5 Decide KPIs on basis of step 1 KPIs are measures to evaluate whether the stated objectives have been
achieved or not. KPIs which measure results or are lag indicators are called output KPIs or monitor able KPIs
and the ones those are in process KPI or lead indicators are called controllable KPIs. In the subsequent steps
they are documented under control plan.
3.1.1.2 Design the control system for KPIs
Step P3
P2.1 Formation or revision of SOP for identified KPIs. Documents such as Standard operating procedures are
tools to communicate the standard or agreed method of operation. Decision flow chart was prepared
operator for N2 Pick Up (SOP No. LD2/PCL-SC/021/002)
Start
No
Nitrogen pick up
more than UCL
Continue the casting
Yes
Check Process Parameters

(Shroud Argon Flow & Back Pressure)
Check Equipment
(Shroud Condition)
Yes
Check the Tundish wt. and

covering
Yes
Yes
Is there some
abnormalities (Rat
Hole, crack etc).
No
No
Change the shroud and argon

pipe
O.K.
No
Check the Flow control valve and

call IEM maintenance if reqd.
Not O.K.
Check the
analysis of next
heat
If shroud is fully
submerged
If Shroud Argon
is > 80 litres/min
Operate the tundish at optimum

level with shroud fully submerged
Not O.K.
Not O.K.
No turbulence
observed at
shroud area
Correct the Argon

flow
O.K.
O.K.
Contact Shift Manager
Fig 3.5 Decision Tree for N2 Pick up
128
Step P4
P2.2 Develop a system for checking KPIs
The control plan is a tool where the method of controlling the KPI is defined which includes information such as
measurement technique, sample size and frequency, tools to be used for control, responsibility and the SOP
reference. The Fig 3.6 below is an extract of the control plan of LD#2.
Product/Process
Specification
Technique
Process
Nitrogen pickup in
tundish
Evaluation /
Measurement
Technique
< 5 ppm in 95% of the heats Analysis by RAC

(As per the acceptance
lab
norms)
Sample
Control Method
Size
Freq
Once a heat
Every heat
Responsibility
Check for N2 pick Casting and

up and record
steelmaking group
Doc. Reference
LD-2/PCL-SC/021/022
Fig 3.6 Control Plan for Slab Caster
3.1.1.3 Implement as per design control system

Step D1
D3.1 Implement as per SOP- The job needs to be performed as per the SOP
Step D2
D3.2 Monitor as per control plan - Monitor the key performance indicators as per the control plan using
Control/trend charts/check sheets as appropriate
3.1.1.4 Check for abnormality and make correction and recurrence prevention
Step C1
An abnormality in a process occurs when there is a special cause of variation and is mostly identified through
control chart. Purpose of Daily Management is to eliminate it. The Fig 3.7 shows the trending of N2 pick up and
the identification of abnormality and non-conformity.
Non
Conformity
Abnormality
8
7
6
UCL
USL
Mean
N2 Pickup
5
4
3
2
1
0
1
3 4
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Fig 3.7 Identification of Abnormalities
129
Step C2
C4.2 Observe and note reasons for abnormalities
Document the abnormality and take corrective actions if necessary. In LD#2, a system was developed to capture
the reason of each abnormality. It started with a manual process and later IT enabled as shown in the Fig 3.8
Fig 3.8 Abnormality Observation and capturing
An online system to capture abnormality was developed. The features were

a.
Heat beyond control limit highlighted.
b.
Operator enters reason for every heat outside control limit
Monitoring method adopted was control chart on a frequency of each heat. The reasons for abnormality were
noted down and corrections done.
Step A1
A4.3 Take Immediate correction
Immediate action should be taken to prevent non conformity as mentioned in the SOP (Fig. 3.9).
Counting the
casting
Nitrogen
pick up more
than UCL
No
Yes
Check Equipment
(Shroud Condition)
Check Process Parameters

(Shroud Argon Flow & Back Pressure)
Is there some
abnormalities (Rate Hole,
Damage sitting crack etc.)
Check the tundish wt.

and covering
No
If shroud is
fully submerged
If Shroud Argon
is >80liter/min
Yes
Yes
Yes
No
No
Change the Shroud and
argon pipe
Check the analysis

of next heat
O.K.
Correct the flow control

valve and call IEM
maintenance if required
Not O.K.
Not O.K.
Correct the
Argon flow
O.K.
Operate the tundish

at optimum level with
shroud fully submerged
Not O.K.
No
trubulence observed
at shroud area
O.K.
Contact Shift
Manager
Fig 3.9 Route for correction is shown by highlighted color in Flow Chart
130
Step A2
A4.4 Analyze and take corrective or preventive actions
Refer to Chapter 2.3 for details on abnormality analysis and implementing corrective and preventive action.
Case example of abnormality analysis framework for Nitrogen pick-up in shown in Fig. 3.10
Abnormality Occurs
90
33
57
SOP Followed
SOP Not Followed
27
0
People are not
trained on SOP
SOP Not
Adequate
SOP
Adequate
57
People are Trained on
SOP
3
Look for special

causes for
abnormality
Lack of process
Knowledge/ Skill in
preparing SOP or
root cause analysis
SOP Deliberately
not followed
Difficulty in
following
SOP
Conflict with pursuit & / other

objectives ( eg Efficiency vs
effectiveness )
27
Take one time

corrective action
Impart Training
Changed
conditions
12
Improve Process
knowledge/ Skill
enhancement on
preparation of
SOP
42
Forgot /
Missed to
follow
SOP
Use Fool
Proofing
Coaching people to
pursue the right objective
Revise SOP
Fig 3.10 Abnormality Analysis framework
Recurrence Prevention
(i) Difficult to follow SOP
Challenge: Person had to move out of control room to see Argon Flow & Back pressure. History (trend) of data
was also not available. (Required for SOP)
Counter measure taken : Display on operator screen, History (trend) was made available.
Before : Display was in field
After: Display on operator screen

Fig 3.11
131
(ii) SOP not adequate

Two major reasons for Nitrogen pick-up, from past data analysis are as follows
1.
Shroud Failure is the biggest controllable reason
2.
Thermal Shock and High life observed to be the biggest reasons of failure.
Pareto : Reason for N-pickup >5 ppm - SOP not adequate
30
100%
20
80%
13
20
10
60%
13
40%
10
0
0
Unshrouded casting
Shroud failure
Others
Shroud argon setting
Gasket issues
Controllable
Monitorable
20%
Petro Chart Var2

Coder (Ids) in variable: Var1
10
9
100%
8
80%
7
6
60%
5
4
3
40%
20%
1
1
0
Thermal Shock
High life
Collector Nozzle Failure
Metal Jam
Shroud Erosion
Fig 3.12
Measures identified to reduce Shroud Breakage are following

Measures to reduce shroud life related failure
Root cause identified was failure Increases significantly after life greater than 08 Hours.
Action taken was to limit Life of shroud to 8 hours only.
Failure Probability with Life
Probability = Nos of Failure/
Total Nos of Shroud
1.
0.05
0.05
0.04
0.04
0.03
0.03
0.02
0.02
0.01
0.01
0.00
1-2
3-4
4-6
6-8
9-10
Hours
Fig 3.13
132
>10
2.
Measures to reduce thermal shock related failure

Root cause identified through phenomena observation was that thermal shock occurs due to delay heat
arrival DHA Communication with Upstream Process
Action taken was utilization of automated Communication System with green and Red Indication to
indicate DHA
Fig 3.14
3.1.1.5 Revise standard, Targets/limits as applicable

Step A3
A5.1 Modify SOPs
Revise the standard operating procedures after countermeasures are taken for recurrence prevention or
preventive action.
Fig 3.15 Example of SOP modification
A5.2 Revise targets/Limits: Revise targets or limits as per rules of revision of limits/targets as described
insection 2.2.8
133
A5.3 Provide training to required personnel's: Provide training to concerned persons, as applicable, for
standardized approach on the revised procedures.
Modify SOPs and train concerned persons based on corrective and preventive action if required.
3.1.1.6 Review of the Daily Management system
The DM KPIs should be assessed on 2X2 matrix on process stability-Product conformity at a predefined
frequency to evaluate the effectiveness of implementation. Initiate Aspire Projects on non-conformances.
Review or Update FMEA/Control Plan/SOP based on customer feedback or Internal Problems etc.
In this case the KPI Movement in 2x2 Matrix has been from quadrant two (stable but non conforming to
quadrant four (stable and conforming) as a result of effective DM implementation.
Fig 3.16
The effectiveness of the Daily Management Implementation is visible from the analysis below. The variability
of N2 pick up has reduced and being maintained within specification limits.
Jan'12
Mar'12
Data Characteristic = Normal & Stable

Mean = 2.88 ppm
Stdev = 2.01
% of data outside spec limit = 4.47%
Data Characteristic = Normal & Stable

Mean = 2.69 ppm
Stdev = 1.665
% of data outside spec limit = 1.44%
Fig 3.17
134
Roles and Objectives

Department /Section : Wire Rod Mill
Men - On - Roll : 301
Rev No.: 08.00
(As on Date)
Approved by: T K Chakraborty
Date : 20.09.2013
Production /
Service
By what indicators,
do you evaluate
Is data
What Is the Objective of
What is the role of
whether the job of available for What are the Critical
the Job of the Department
Department / Section
the Department /
the
Concerns ?
/ Section?
Section is
Indicators?
successful or not?
Productivity
Departme
nt /
Section
Mill Availability
Production as per (Head Oprn)
Plan (Chief)
Yes
TPOH in 5.5mm WR
Yes
Reduction in
Customer
Customer
Complaints (Chief Complaints( ppm of
Wrm),
LP sales)
Yes
Complaints due to
wire breakages
Complaints due to
rusting
Quality
Cost
Improve Product
Quality from
WRM (Chief)
Conversion cost
as per Plan
(Chief)
No of succesful
drives
Yes
Conversion
cost(Rs/Ton)
Yes
Delivery
Compliance to
Despatch Plan
Safety
Production
Morale
Wire Rod
Mill
Compliance to
despatch plan (as
given by LP
Compliance to
planning)
rolling plan
LTIFR (Chief WRM)

Ensure safe
Safety visits & JCC ,
working
Contractors safety
environment to
audit
all employees and
No of FRCP logged
contractors.
and closed
Enthused and
motivated
workforce.
Yes
% Active SGA Team
135
Sr. Manager (FS)
Improvement project to reduce

wire breakages at customer
Sr. Mgr TS
end
HDPE Packaging for all surface
Sr. Manager (FS)
critical grades
Revist the current system of
online and offline inspection
and take countermeasures
Yes
Deviations from
rolling sequence
Delay in closure of
observations and
FRCPs
Poor voluntary
partipation
Castwise storage
Yard Mapping
Daily management of Mill
Order
Monitoring of gradewise
inventory.
Improve availability of critical
process equipment
Daily monitoring of safety
concerns
Periodic review of closure of
observations and FRCPs
Safety communications
through AIC , safety mass
meetings and shopfloor
displays
One to One Interaction with
SGA Teams/ Team restructuring
in logical groups
Timeliness
Mar'14
Mar'14
Mar'14
Mar'14
Mar'14
Mar'14
Sr. Mgr TS
Mar'14
Sr. Mgr Opn
Mar'14
Non-prime
Reduction in RE Guide Failures
Sr. Mgr Opn
generation for
surface defects
Surface
Project to Reduce surface
decarburization in decarburization in HCWR (with Head (Operation)
HCWR (with
C>0.70%)
Variability in
Project to Reduce variability in
mechanical
mechanical properties of HCWR
Sr. Mgr TS
properties of HCWR
(C > 0.65%)
(C > 0.65%)
Extension of DM activity to Roll
Ovality in 5.5mm WR
Sr. Mgr Opn
shop
Weigh Tolerance in
DOE for standardizing
Sr. Mgr Opn
8mm Rebar
Adjustment process
Cobble
Sr. Mgr Opn
Process losses
Scrap , crop losses and
Sr. Mgr Opn
Trimming Losses
Stores cost
High cost of Packaging
Head( Oprn)
Identification of the facilities
High Power Cost
causing high power and taking
Head( Oprn)
countermeasures
Traceability of
finished good
Yes
HDPE Packaging with rubber

separators to avoid rubbing of
coils during transportation
Non-prime
generation for Bad Improvement project to reduce
coiling, multiple ends
BC/DC/ME
and double coiling
Yes
Yes
Responsibility
Reduce time for change of rolls

and reduce the frequency of
changing
Sr. Manager
Improvement projects to
Operations
reduce mechanical and
electrical delays
Use of CCPM methodologies to Sr. Manager IEM/
MSD Duration
complete all the MSD jobs in Head Mechanical/
time.
Head Operation
Low TPOH of 5.5mm Improve mill speed in 5.5mm
Head Operation
HCWR
HCWR
Scatter incidences of
Non conforming coil
reaching customers
Non prime
Reduction in
generations (ppm
Internal
of WRM
Rejections (Chief)
production)
What are the actions points

for these concerns ?
Operational Delays
Mechanical Delays
Electrical Delays
Complaints due to
transit damage
To meet and exceed

our customers'
expectations in retail
and choosen special
Wire Rod segments by
1) Producing as per
rolling plan
2) Maintaining desired
quality levels
3) Producing at
optimum cost
4) Inculcating safe
working habits and
ethical conduct in all
employees and
Contractors.
Form No.: TQM/DM/R&O/001

Rev.: 02
Eff. Dt.: 01/01/2011
Prepared by : VS, SP, RH, RS
Sr. Manager F&S
Mar'14
Mar'14
Mar'14
Mar'14
Mar'13
Mar'14
Mar'14
Mar'14
Mar'14
Mar'14
Head Operations
Head - Mechanical
Maintenance
Mar'14
WSEI
Mar'14
Chief WRM
Mar'14
Reheating Operation
Rolling Operation
30
Rolling
Heat Treatment/
Technical Services
Rolling(Rolling of heated billet in roll

passes to produce wire rods and rebars as
per the specified dimensions)
10
20
Furnace /
Rolling
Reciept of billets from LD #1 and Storage as

per cast number and grade.
Billet inspection as per process charts and
inspection plan.
Charging of Billets instide furnace
Recieving/
Storage/
Inspection/
Charging
Billet reheating (Heating of billets to the

desired rolling temperature as per the
process Chart)
Customer
Brief Description of Process
Process Function
10.P1 Unloading time

10.P2 Grade wise stacking in different racks
10.P3 Compliance to Inspection Plan
10.P4 Disposition of non conforming billets
10.P5 Compliance to charging Plan
10.P6 Billet Notching for Cast and Grade Partition
20.P1 Fuel to air ratio

20.P2 Furnace Presure
20.P3 Zonal Temperature (SZ/HZ/PHZ)
20.P4 CO ppm Level around Furnace/Roof
20.P4 Gas flow rate in soaking zone after mill delays
20.P5 Thermocouple accuracy
20.P5 Unburnt gases in Flue Gas
20.P6 Excess Oxygen in flue gas/ different zones
20.P7 Zonal Temperature during mill delays
20.P8 Residence time inside furnace
30.P1 Roll pass wear all 25 stands
30.P2 Stock Height/Weight at Std#7
30.P3 NTM Looper speed correction.
30.P4 NTM Looper - Loop Height
30.P5 PFM Looper speed correction.
30.P6 PFM Looper - Loop Height
30.P7 Degree of Alignment of finishing stand guides with
respect to pass
30.P8 Tonnage rolled per pass / pass condition
30.P9 Roll Profile
30.P10 C&C Crop Length
30.P11 C&D Crop Length
30.P12 Interstand tension in Intermediate Mill
30.P13 Guide lubrication
30.P14 Roll Cooling water pressure (Rouging
Intermediate,PFM,NTM)
30.P16 Billet to Billet Gap
30.P17 Speed Correction in vertical looper
30.P18 Finishing roll notch depth
30.P19 Finishing stand roll gap setting
30.P20 Stock Guiding by RE to Round passes
30.P21 Degree of Roll Cross
30.P22 Vertical Looper - Loop Height
30.P23 Stock Height/Weight at Std#15
30.P24 Interstand tension in Roughing Mill
30.P25 Mutual alignment between stands
30.P26 Centerline distance of Finishing Pass
20.I1 CO gas pressure

20.I2 Calorific value of gas
20.13 Nitrogen Pressure
20.14 Billet Length
20.15 Bend Billets
20.16 Furnace Cooling Water Pressure
20.17 Billet Defects
30.I1 Temperature at Stand # 3 out of

Specifications
30.I2 Variation of temperature along the length
of billet
30.I3 Power Fluctuation/Failure
30.I4 Rhombodity in billets
30.I5 Burr characterstic in ends of Billet
30.I6 Surface defects in Billets
30.I7 Sub surface defects in billets
30.I8 Billet Cross section dimension
30 I9 Compressed air pressure
30.I10 Guide Setting at Guide shop
30.I11 Roll cooling water flow
Process Characteristics

Approved by : T K Chakraborty
10.I1 Billet in mixed condition from LD#1

10.I2 Wrong billet identification
10.I3 Bend billets
10.I4 Late delivery of billets
10.I5 Mismatch between Actual reciept with
respect to documents
10.I6 Billets with visual surface defects.
10.I7. Off Section Billets
10.I8 Billets with Sub Surface Defects
10.I9 Billet supply mismatch with the rolling
plan
10.I10 Billet with high rhombodity
10.I11 Billet with improper length
10.I12 Billet Chemistry
Input Sources of Variation
Rev. No. : 15
Date : 21/09/2013
Process
No.
Department /Section: Wire Rod Mill

Document Ref No : WRM/OPN-PFLW/001
Process Flow Chart
136
30.O1 Ovality of wire rod

30.O2 Tolerance in wire Rod diameter
30.O3 Ar.Value in TMT rebar (Mean rib area)
30.O4 Weight tolerance in TMT Rebars
30.O5 Rejections/Diversions due to Dimensional
defects, fin,lap roll mark etc
30.O6 Rejections/Diversions due to Surface defects
30.O7 LRH in TMT Rebars
30.O8 Gross Yield
30.O9 Cobble due to dimensional defect
30.O10 Cobble due to Surface/Sub surface Defects
30.O11 One Sided Fin
20.O1 Billet Temperature at Stand#3

20.O2 Temperature Variation along Length
20.O3 Fuel rate
20.O4 Primary scale loss
20.O5 Decarburisation of billets
20.06 Degree of soaking of billet along cross section
10.O1 Compliance to Rolling plan.

10.02 Quality Mixup complaints
10.O3 Non moving billet inventory
10.O4 Charging Delays due to bend Billets
10.O5 Charging Delays due to improper length of
billets
Product (Output) Characteristics
Form No.: TQM/DM/PFC/002

Rev.: 02
Effective Date : 01/01/2011
137
Billet reheating
(Heating of billets to
the desired rolling
temperature as per
the process Chart)
20
20
Reciept ,storage,
inspection and
charging of billets
Process Function
Billet reheating
(Heating of billets to
the desired rolling
temperature as per
the process Chart)
10
Operatio
n No
20.06 Degree of
soaking of billet
along cross section
20.O5
Decarburisation of
billets
Poor soaking
of bilets
Roll Breakages/ equipment

damage
Cobble in Mill
Dimensional and surface
defects
Deviation in mechanical
properties of finished product
High depth of
Decarburizatio Customer Complaint
n
Delay due to scale build up on

hearth
Yield Loss
High Fuel Rate High Conversion Cost
Failure to adhere to dispatch

commitment
Roll Breakages/ equipment

damage
Billet
Cobble in Mill
Temperature at
Dimensional and surface
Stand#3 less
defects
than specified
Deviation in mechanical
properties of finished product
Mechanical property variation
High
along length
Temperature
variation along High load on roll at cooler
length
portions
20.O4 Primary scale High Scale

loss
Loss
20.O3 Fuel rate
20.O2 Temperature
Variation along
Length
20.O1 Billet
Temperature at
Stand#3
10.O3 Non moving

billet inventory
Production Loss
Charging
Delays
A
Severity
(out of 10)
20.P1 Low Fuel to air ratio
20.P4 High gas flow rate in soaking zone after

mill delays
20.P3 Zonal Temperature higher than

specified (SZ/HZ)
20.P6 Excess Oxygen in flue gas / different
zones
20.P8 High Residence time inside furnace
20.P5 Thermocouple accuracy
Flow Indicator on instrument panel
Charging to discharging time of bilets
Flue gas analysis / Zonal gas analyser
Calibration of Thermocouples as per specified

frequency
Online Temperature display in instrument panel
5
7
Observation of flame condition
Control Knob on instrument Panel
5
3
Automatic Controller for opening and closing of

damper
Zonal temperature display Automatic Controller
for Temperature
Calibration of Thermocouples as per specified
frequency
Observation of flame condition
Control Knob on instrument Panel
Pressure Indicator / Automatic on instrument
panel
Online Calorific value indicator
Regular calibration of Thermocouples
Inventory Display Bord.

Daily communication with LP Planning about
billet yard inventory
Zonal temperature display Automatic Controller
for Temperature
Gas for indicator
Wait for soaking zone gasflow rate to come
down to ensure proper soaking
Inventory display board

Regular follow up with LP planning
20.P3 Non compliance of SOP for maintaining

Zonal Temperature during mill delays
20.P7 Zonal Temperature higher than

specified (SZ/HZ)
20.P6 Excess Oxygen in flue gas / different
zones
3
3
20.P5 Unburnt gases in Flue Gas

20.I2 Low Calorific value of gas
20.P2 Low Furnace Presure
20.P5 Thermocouple inaccuracy

20.P1 High Fuel to air ratio
20.P3 Differect in Zonal Temperature between

(SZN and SZS)
20.P2 Low Furnace Presure
Visually noticing the position of back end of the

billets while the front end touches stopper after
group-2 charging rolls.
Discarding oversize or undersize billets from
charging rolls
3
6
SOPs for Charging /Eddy Current Test
C
Detectibility
(out of 10)
84
96
108
90
72
90
75
100
56
60
36
36
60
60
30
40
84
84
112
42
27
32
72
105
112
112
105
84
Risk Priority
Number
AXBXC
Form No.: TQM/DM/FMEA/003

Rev:02
Eff. Dt. : 01/01/2011
Segregation of bend billets from Inspection bed/

Charging Bed
Physical counting of billets
Inventory display board
Identification of cast nos with the cast no.

painted on the billets and the Gandola nos on
which it came to billet yard
Eddy Current testing of samples
Visually matching of cast no. and gandola no.
with the details given in the loading list.
Current process Controls - Detection/

Prevention
B
Occurrence
(out of 10)

Approved by - T K Chakraborty
20.P5 Thermocouple inaccuracy
20.P4 High Gas flow rate in soaking zone
20.P3 Zonal Temperature (SZ/HZ/PHZ) below

specified
10.I4 Late delivery of billets
10.I9 Billet supply mismatch with the rolling

plan
10.I11 Billet with improper length
10.I3 Bend billets
10.P2 Stacking of different grades of billets in

same rack
10.I5 Mismatch between Actual reciept with
respect to documents
10.P5 Non compliance to charging Plan
10.I2 Wrong Billet Identification
10.I1 Billet in mixed condition from LD#1
Potential Cause (s) / Mechanism (s) of

Failure
Rev. No.: 15
Date : 26/09/2013
Inventory Cost/ Space

constraints
Production Loss
Charging
Delays
High Inventory
of non moving
stocks
Non
10.O1 Compliance to
Compliance of
Rolling plan.
rolling Plan
10.O4 Charging
Delays due to bend
Billets
10.O5 Charging
Delays due to
improper length of
billets
Customer Complaint
Potential
Potential Effect(s) of Failure
Failure Mode
Mixup of
10.02 Quality Mixup
different quality
complaints
of billets
Product (output)
Characterstics/
Requirements
Department : Wire Rod Mill

Document No :WRM/OPN - FMEA/001
Process Failure Mode and Effect Analysis
Rolling
Rolling
30
30
Process
Function
Process
Number
PFMEA
PFMEA
Rolling
Stands/Pinch
rolls/Laying
head/Water
Boxes/
Stelmor/
Guides/
Shears/
loopers
Rolling
Stands/Pinch
rolls/Laying
head/Water
Boxes/
Stelmor/
Guides/
Shears/
loopers
Source(PFM
E/R&O,MOU)
Machine/
Device
Document Name : WRM/OPN/CPLN/001
Department/Section : WRM
138
30.O11
30.P26 Variation in Centerline

Max 0.02mm varialtion
distance of Finishing Pass
<0.01%
No surface defect
Billets with visual surface

defects.
10.I6
No Misalingment
<0.05%
0 to -2%
1-1.3mm
Reliable guide lubrication
Alignment of RE guides with

respect to passes
Finishing roll notch depth
1.55 to 1.85
Tension as low as possible
Guide lubrication
Rejection/Hold
One Sided Fin
Weight tolerance
in TMT Rebars
Rejections/Diversi
ons due to
Surface defects ,
fin,lap roll mark
etc
Ar.Value in TMT
rebar (Mean rib
area)
Interstand tension in
Intermediate Mill beyond limit
Height - 16-20mm
Height/Weight per unit length of
Weight/Length - 2.19 to 2.29
Std 15 Stock
kg/m
Alignment of finishing stand
No Misalingment
guides with respect to pass
As specified in SOP WRM/PCLOPN/01.12
30.P13
30.P7
30.O6
30.O4
30.P18
30.O3
30.P12
30.P7
30.P23
Stock height of Roughing &

Intermediate mill stands
<0.02%
Rejections
/Diversions due
to Dimensional
defects
30.O5
30.P1
<0.3
Product / Process
Specification
Ovality of wire rod
Process
30.O1
Characteristics
Product (Output)
No
Rev. No.: 15
Date: 01.10.2013
Measurement using micrometer
Surface inspection of critical grades
Checking of guide lub pressure and

air flow
1 coil
(sample
s from
front
and
back)
Manual calculation - percentage of

total production
Visual
Measuring tape and weigh scale
Vernier
Calculation from standard formula
Visual judgement
Optics
Viernier and weigh scale
Size
1 coil
(sample
s from
front
and
back)
Corrective action
for each incident
X-MR Chart
Control Method
Each and every

finishing roll
Every 10 coils Front &

Back alternately
Every incident
Every Shift
Every set up change
Every incident
Every 30 coil
All rolls before putting it in

operation
Every 30 Coils
Every bar
Every set up change
Every two hour
Sr. manager
Operation
Sr. Sc. Asst. /

Sc. Asst.
Foreman Roll shop
Sr. Sc. Asst. /

Sc. Asst.
WRM/PCL-PRC/01.03
WRM/PCL-PRC/01.03
WRM/PCT-RTS/01.00
WRM/PCL-PRC/01.03
WRM/PCL-OPN/04.03
WRM/PCL-OPN/04.04
WRM/PCL-OPN/01.18
WRM/PCL-OPN/01.20
WRM/PCL-OPN/01.21
WRM/PCL-OPN/01.13
WRM/PCL-OPN/01.12
WRM/PCL-PRC/01.03
WRM/PCL-PRC/01.03
Document
Reference
Checksheet
Checksheet
Foreman Roll
shop
Sr. Sc. Asst. / Sc.

Asst. (On-line
inspection)
WRM/PCT-RTS/01.00
WRM/PCL-PRC/01.03
SOP for Mill

WRM/PCL-OPN/04.02
Roller/rod Finisher
Setup
WRM/PCL-OPN/04.03
Identifying
abnormality and
getting it
Roller
WRM/PCL-OPN/01.18
corrected with the
help of
mechanical staffs
Corrective action
Sr. Scientific asst. WRM/PCL-PRC/01.01
for each incident
Corrective action
for each incident
Logsheet
X-MR Chart
SOP
Logsheet
CP#3 Operator
Rod finisher
SOP for Mill

Setup
Adjustment of
stand speeds
Rougher/
Inter rougher
Rougher/
Inter rougher
Roller
Sr. Sc. Asst. / Sc.

Asst. (On-line
inspection)
Responsibility
Rev:03
Eff. Dt. : 01/01/2011
Form No.: TQM/DM/FMEA/004
Logsheet
X-MR Chart
Stands 1-3: Once ina shift Adjustment as

Stands 4-7: Every 4 hours per standard roll
#15 stand: Every 2 hours
wear
Regular
Every 10 coils Front &

Back alternately
Sample
Freq

T.K. Chakraborty (Chief - WRM)
Methods
Measurement of running stock using

calliperin roughing mill Rolling of
small piece and measuring height in
all intermediate stands
Daily rejection /diversion records
Evaluation Method
Prepared by:
Approved By :
Control Plan
139
Customers Signature
Suppliers Signature
Customer's
Remarks :
Production
compliance.
No. of 5.5 &

8.0mm
campaigns
Information
on downgrading
post rolling
(Steel / Mill)
for revision
of plans.
May
Apr
MOU
Parameter
Sl. No
Requirement related to Products/Services
Customer Department :- LP-Planning
Production /Quality Delivery

parameters
Service
parameters
Jun
2 each
Unit of
Measurement
Jul
New
Measure
1.50
97.00
Aug
100
98
Base Level Target Level

(2012-13) (2013-14)
Sep
April
May
Oct
June
Supplier Department :-
Aug.
Nov
July
Dec
Sept.
Oct.
Nov.
WRM
Jan
Actual Performance
Memorandum of Understanding with Customer

(Financial Year : 2013-2014)
Dec.
Feb
Jan.
Mar
Feb.
Mar.
Rev 01
Form # TQM/DM/MOU/009
LD#2 & Slab Caster
Depart
ment /
Section
Productio
n / Service
What is the
role of
Department /
Section
Receive hot metal from BF & Supply of Desulphurized Hot Metal to Vessel
6. Employee
involvement in
improvement
activity
4. Meet
Customer
requirement of
Desulphurized
hot metal
5. Ensure safe
working
environment to
Caster
employees and
contractors
employee.
3. Cost of
Desulphurization
2. Input S to
Converter
1.Provide
Desulphurised
heat to Vessel

of the Job of the
Production
Quality
Cost
Delivery
Safety
29
140
Morale
Production
Department /Section : Torpedo

Men - On - Roll : 34
(As on Date)
Yes
Yes
First Aid casees, LTIFR, safety

visits & observations as per plan
% employee involvement in
SIP/SGA/DMAIC
Yes
Yes
Consumable Cost(Rs/tcs)
Cycle time(min)
Yes
Yes
Yes
Yes
Yes
Is data
available
for the
KPMs?
Yes
Specific Compound
Consumption(Kg/tcs)
Metal Loss in DS(Kg/tcs)
Sulphur Reversal
(more than 5pt)
2. % heats with
(Actual Aim) S within +/0.004
By what indicators, do you

evaluate whether the job of
the Department / Section is
successful or not?
No of DS heats
(% DS heats)
Doc No. LD-2/DM/GEN/25/001

Rev No.: 0.01
Date : 01.03.2013
Hot Metal S
Product Mix Variation
BF carry over slag
Input variation in S
Injection lance & raking plate life
6.1 Low employee involvement in

SIP/SGA
5.1 Not following safety standards,

High severity rate of observation
and audits
4.1 Delay at Primary Steelmaking

due to DS
3.1
3.2
3.3
3.4
3.5
2.7 Partial Raking cases
2.4 Amount of carbide after Mg

completion
2.5 Kind of Scrap Charging
2.6 Hot Metal level measurement
2.2 Low Hot metal temp

(<1250 degC)
2.3 Lance life
6.1 Implement action plan for 90% Employee

involvement in improvement projects and quick
reward/recognition system
5.1 Improve process safety,personnel safety

and training of employees and contractors on
SWP's.
4.1 Delay analysis
Foreman
1.3 Daily Monitoring of transfer ladles inside &

outside shop
2.1 Communication with RAC lab & hot metal
sample carrier performance monitoring.Mistake
proofing project.
2.2 Ensure sample & temp of hot metal from
Torpedo station.Mistake proofing project.
2.3 Mono Injection to be done or heat to be
taken as non-DS(as per SOP)
2.4 Daily Management.Analysis of each
deviations
2.5 Flow rate to be observed & adjusted
accordingly
2.5 Check out the scrap proportion
2.6 Installation of laser based hot metal level
measurement system(KVHS)
2.7 Soda ash addition to improve slag
formation,
2.8 Ensure slag pot availability
3.1 MOU with supplier
3.2 Monitoring of product mix as per ABP
3.5 Failure Analysis(RCFA)
Sr Manager
Sr Manager
Regulator/ Ast
Regulator
Sr Manager
Sr Manager
Sr Manager
Sr Manager
Foreman
Regulator/ Ast
Regulator
Sr Manager
Regulator/ Ast
Regulator
Regulator/ Ast
Regulator
Regulator/ Ast
Regulator
Sr Manager
Regulator/ Ast
Regulator
Sr Manager
1.2 Monitoring through MOU
1.2 Availability & Quality of Hot

Metal
1.3 Availability of Hot metal transfer
ladle
2.1 Initial sulphur not available
(5min after inj start)
Sr Manager
Responsibility
1.1 Daily Monitoring of outages & abnormality

framework analysis by maintenance agency
Action Points for critical concerns with

responsibility & timelines:
Dec'13
Mar'14
Timelines
Form No.: TQM/DM/R&O/001

Rev.: 02
1.1 Availability of equipment
What are the Critical Concerns ?
Prepared by: Swarup Sinha

Approved by: A.K.Trivedi
141
50
40
30
20
10
Process No.
By operating the joysticks of raking machine injection

boom using Forward, back ward motion and
up / down and left / right motion of the
boom.
After raking initial slag inform the DS
Final raking
control room to start injection after ladle is
made vertical.Update the set points of
initial sulphur, aim sulphur, hot metal
weight and temperature of hot metal from
level II screen in HMI.
Initial raking
Take the sample and temperature

measurement with the help of probe.
Final sample &

Temperature
Vessel
By operating the joysticks of raking machine Vessel

boom using Forward, back ward motion and
up / down and left / right motion of the
boom.
Final Raking
Injection
Brief Description of Process

Customer
Pouring of hot-metal from torpedo's into
Desulphurisatio
Hotmetal Ladle which is kept on HM
n Station
Transfer car.
After pouring of Hotmetal, HM ladle is
taken by the transfer car to the sample and
temperature measurement point where
sample and temperature measurements are
being taken.After that hot-metal ladle is
sent to DS through EOT cranes
10.P2 Hot Metal level measurement
10.P3 Mixing of Hot-Metal
10.P4 Operator skill
10.P5 Data transfer to level2
10.P6 Hot metal sample & temperature
measurement
10.P7 Equipment availability
10.I2 Hot Metal Silicon

10.I3 Hot Metal Sulphur
10.I4 Hot metal temperature
10.I5 Delivery of Hot metal
10.I6 BF Slag Carry-over
30.P2 %S removed,
30.P3 Reagent quantity as per model
30.P4 Flow rate control of reagents
30.I2 HM quality (HM S )

30.I3 HM temperature
30.I4 Reagent quality( Mesh size and
chemical analysis of reagent)
40.P3 Combined car and raking m/c

equipment efficiency
50.I2 Quality of probe
50.I1 Availability of probes
40.O3 No "S" Reversal

40.O4 No delays
40.P2 Skimming skill of the operator
40.P4 Shape of raking plate

50.P1 Proper Positioning of temperaure 50.O1 Final Sulphur
and sample lance.
50.P2 Skill of operator
50.O2 Final Temperature
50.P3 Data of final temperature and
Sulphur transfer of level2
40.O2 No metal loss
40.P1 Cycle time
40.I2 Proper slag formation

40.I3 HM temperature
40.O1 No slag
30.O3 Final 'S' level
30.O2 Proper slag
30.O1 No delay
20.O2 No slag
20.O1 No delay
10.O3 Timely delivery of Hotmetal to

DS
10.O2 Right chemistry to DS
Product (Output) Characteristics

10.O1Right Quantity of Hot metal &
sufficient free board in HM transfer
Ladle
Form No. : TQM/DM/PFC/002

Rev : 02
40.I1 HM ladle mouth jam
30.I5 Availability of chemical Analysis within 30.P5 Flow rate control of conveying
stipulated time period
nitrogen
30.P6 Data of reagent quantity transfer
of level2
30.P7 Amount of carbide after Mg end
30.P1 Cycle time
30.I1 Improper initial raking
20.I2 Hot Metal level in ladle

20.I3 High BF carry over slag
20.P1 Cycle time of raking
20.I1 Late arrival of ladle
10.I7 Condition of torpedo (i.e. - crust

formation, lip-jam, mouth jam etc)
10.I8 Incorrect reporting of chemical analysis
10.P1 Pouring of hot-metal with help of
load cell as per the requirements of
downstream process.
Prepared by: Sr Manager (HMTSM & DSU)

Approved by: (Head,Steel Making)
Input Sources of Variation

10.I1 Hot metal Quantity (Torpedo size)
Doc. No. LD-2/DM/GEN/25/008

Rev No.: 01
Date : 18..03.13
Process Funtion
HM Unloading
Department :LD#2 & SC

Section :DESULPHURISATION
Process Flow Chart
142
Initial raking
Injection
30
HM Unloading
Process
Function
20
10
Process No.
20.O1 Opportunity
loss
20.O1 No delay
30.O3 Final 'S' level
30.O2 Proper slag
30.O4 Sulphur
achieved but
improper slag
30.O2 Improper
Slag
30.O1 Opportunity
& Quality Loss
Opportunity loss
due to WOI
10.O3 Timely delivery of

Hotmetal to DS
30.O1 No delay
10.O2 Incorrect
chemistry for next
Process
10.O2 Right chemistry to

DS
20.O2 No slag
10.O1 Excess Hot

Metal in the ladle
10.O1 Right Quantity of

Hot metal & sufficient
free board in HM transfer
Ladle
20.O2 Left over

slag
variation in DS out
"S"
Potential Failure
Mode
Vessel:Aim "S" not

achieved
Heat diversion
LF :Heat Diversion
Caster:Heat Diversion
Application:Product may
fail
Productivity Loss
Next Process N0.30

Aim "S" not achieved
Heat Diversion
Productivity Loss
Heat Diversion
Aim "S" not achieved
Non DS heat Impact on

Quality
Safety Hazard
Potential Effect(s) of
Failure
Doc No.- LD-2/DM/GEN/25/013

Rev No.: 01
Date :18/03/13
Product (Output)
Characteristics
Requirements
Department:LD#2 & SC
Process Name:
DESULPHURISATION
A Severity
(out of 10)
10.I2 Hot Metal Silicon
1
8
1
1
30.I2 HM quality (HM Sulphur )

30.P2 %S removed,
30.P6 Data of reagent quantity
transfer of level2
30.I3 Low HM Temperature
30.I4 Reagent quality( Mesh size

and chemical analysis of reagent)
30.P4 Inaccurate Flow rate control

of reagents
30.P5 InaccurateFlow rate control
of conveying nitrogen
30.P7 Amount of carbide after Mg
end
30.P3 Incorrect Reagent quantity

as per model due to wrong formula
1
30.I1 Improper initial raking
4
30.P1 Cycle time
30.I6 Poor Lance Quality
30.P8 Equipment availabity

(Lance failure,Injection system
failure)
30.I5 Availability of chemical
Analysis within stipulated time
period

causing improper raking.
20.I3 High BF carry over slag

(No slag pot,combined car
tilting,raking m/c functionality)
20.P1 Cycle time of raking
10.I7 Condition of torpedo (i.e. crust formation, lip-jam, mouth jam

etc)
20.I2 Hot Metal level in ladle
10.I5 Late Delivery of Hot metal
10.I9 Incorrect reporting of

chemical analysis
10.P5 Data not transferred to level2
20.I1 Late arrival of ladle
10.P6 Hot metal sample &

temperature measurement
10.P7 Equipment Availability
10.I6 BF Slag Carry-over
10.P4 Operator skill to achieve

correct mix
10.I3 High Hot Metal Sulphur
B
Occurrence
(Out of 10)
10.P3 Mixing of Hot-Metal
10.P2 Hot Metal level measurement
10.P1 Inaccuracy of Load cell
Potential Cause (s) / Mechanism

(s) of Failure

Approved by: (Head,Steel making)
Monitored through level-2 screen
Level 2 monitoring-Detection
Monoinjection-Prevention
Sampling done/strainer in Silo line
Visual inspection in HMI
Observation from HMI & Process

control
Observation from HMI & Process
control
Mistake proofing
Visual inspection & Adherance to

SOP
3
Monitoring through log book
3
Monitoring of unplanned failure of
lance
C
Detectability
(Out of 10
Monitored in level-2 screen
Monitoring of delay & Preventive

maintenance
Detection-Visual inspection
Monitor through I-monitor & web

based level 2

maintenance
Detection-Visual Inspection,
Verbal communication

maintenance
Visual detection
Detection-Verbal communication

based level 2
Observation & verbal communication
Detection-Monitored in level-2 screen

based level 0
based level 1
Training on SOP
Detection-Chemical analysis by RAC

lab
Detection-Display of loadcell
Prevention-TBM
Current process Controls Detection/Prevention
15
15
120
10
30
60
60
60
10
240
15
60
30
45
192
96
12
24
48
16
16
16
16
16
16
32
32
32
12
60
24
Risk Priority
Number
(RPN)
Form No. : TQM/DM/FMEA/003

Rev. : 02
143
30.P5
Inaccurate Flow rate control of

reagents
Inaccurate Flow rate control of
conveying nitrogen
30.P4
Pro per slag
Equipment availabity
(Lance failure,Injection system
failure)
Availability of chemical
Analysis within stipulated time
period
Poor Lance Quality
No of DS heats (% DS heats)
Improper initial raking
30.O2
PFMEA
No delay
30.I1
30.I6
a
30.I5
30.P8
30.O1
Skimming skill of the operator

causing improper raking.
20.P2
Equipment availability
(No slag pot,combined car
tilting,raking m/c functionality)
Hot Metal level in ladle
Hot Metal Silicon

High Hot Metal Sulphur
BF Slag Carry -over
Variation measurement of Load

cell
Hot Meta l level measurement
Process
High BF carry over slag
No slag
No delay
Right chemistry to DS
Right Quantity of Hot metal

(Gros s:Tons/Ladle)
Characteristics
Product (Output)
20.I3
20.O2
20.P3
20.I2
20.O1
10.I2
10.I3
10.I6
10.O2
10.P2
10.P1
10.O1
No
R&O
PFMEA
PFMEA
Source
(PFMEA/
R&O/ MoU)
PFMEA
Doc. No.- LD-2/DM/GEN/25/018
As per set point
Time of raking 2 -3
mins
No blackish slag on top
of metal level
As per set point
Life in mins >= 1500

99%
No availability
calculation
No availability
calculation
Time of raking 2 -3
mins
No blackish slag on top
of metal level
No rating mechanism
No black slag
No availability
calculation
Less than tap to tap

time of vessel (~45
mins)
300 -400mm free -board
Si 1.2% Max, S 0.1%

Max
1.2% Max
0.1% Max
279 nos/month
300 -400mm free -board
10 T
245 - 255 T (Gross)
Product / Process
Specification
Rev. No.01
Date :26/06/13
Visual on HMI
Visual on HMI
Visual on HMI
Visual
Daily
Management
Visual
cycle time
monitoring
De lay
monitoring
system
LECO/XRF
Visual
MOU
Delay
monitoring
system
Visual
Visual
cycle time
monitoring
instrument
Visual
Load Cell
measurement
instrument
Evaluation
Method
1
1
Size
1
Methods
Every heat
Every heat
Every heat
Every heat
Every lot
Every heat
Every heat
Every Shift
Every heat
Every heat
Monthly
Every heat
Every Shift
Every heat
Every heat
Monthly
Monthly
Monthly
Every heat
Every heat
Every heat
Freq
Every heat
Sample
Operator Control
Operator Control
Operator Control
Manual
PM Checklist
Manual
RAC lab operator
PM Checklist
Level -2
Operator Control
Operator Cont rol
Manual
PM Checklist
Operator Control
Manual rejection
Manua l rejection
Manual observation
and feedback(only
recording, no control)
Level -2
Manual
Mistake proofing
checklist
Log Book/Level2
System
Periodic Calibration
Control Method

Approved by: (Head,Steel making)
Control Plan
Regulator/Ast
Regulator
Regulator/Ast
Regulator
Foreman
Regulator/Ast
Regulator
Sr Operator/
Operator
Sr Operator/
Operator
RAC Lab
Regulator/Ast
Regulator
Regulator/Ast
Regulator
Regulator/Ast
Regulator
Sr Operator/
Operator
Sr Operator/
Operator
Regulator/Ast
Regulator
Sr Operator/
Operator
Regulator/Ast
Regulator
Sr Operator/
Operator
Sr operator
Sr operator
Sr operator
Sr Operator/
Operator
Sr Operator/
Operator
IEM
Responsibility
LD -2/PCL -LD/04/004
LD -2/PCL -LD/04/001
Project: -Installation of IR
camera with recording facility
to improve the skill
LD -2/PCL -LD/04/004
LD -2/PCL -LD/04/001
LD -2/PCL -LD/04/004
LD -2/PCL -LD/04/004
LD -2/PCL -LD/04 /004
LD -2/PCL -LD/04/004
LD -2/PCL -LD/04/001
Project: -Installation of IR
camera with rec ording facility
to improve the skill
LD -2/PCL -LD/04/004
LD -2/PCL -LD/04/001
LD -2/PCL -LD/04/001
LD -2/PCL -LD/02/001
Mistake Proofing project
through installation of laser
based hot metal level
measurement system
LD -2/PCL -LD/04/001
LD -2/PCL -LD/04/004
LD -2/PCL -LD/02/001
LD -2/PCL -LD/02/001
LD -2/PCL -LD/02/001
LD -2/PCL -LD/02/001
Mistake Proofing project
through installation of laser
based hot metal level
measurement system
LD -2/PCL -LD/02/001
LD -2/PCL -LD/02/001
Document Reference
Form No. : TQM/DM/CP/004

Rev. : 03
144
145
NEW (1.48%)
3.00
3.89
96.74
NEW(111)
69.48
158.45
1.07
18.82
16.77
NEW (582)
79.02
3.14
5.93
98.36
73
8.52
NEW (1270)
NEW (92.6)
Avg. of FY'12
3.05
3.5
96.0
120
70.00
158.5
1.2
18.5
30
301
80
3.1
6.0
98.5
75
7.5
655.0
98
Standard
FY'13
0.71
3.08
4.80
96.97
116
73.70
158.65
0.77
19.31
16.33
454
78.75
3.80
6.00
99.04
66.50
6.10
1116
98.27
Apr-12
0.34
3.09
5.30
96.25
127.5
63.4
158.4
0.85
18.4
22.8
711
80.1
3.4
6.1
98.73
73.1
6.00
1129
97.62
Jun-12
Comment
0.69
3.11
4.1
96.34
117
65.6
158.5
0.42
18.7
17.8
939
78.1
4.3
6.1
98.6
73
5.2
1032
98
May-12
2.96
5.50
97.22
115
66.10
158.20
1.09
19.20
22.1
1475
75.90
1.70
5.70
99.14
68.22
5.50
1759
96.70
Jul-12
0.77
2.84
4.60
97.27
124
69.5
158.7
1.13
19.2
23.7
1291
77.2
1.4
5.70
98.44
68.20
5.50
1753
98.13
Aug-12
3
4.3
97
124
69
158.3
0.81
18.7
23.5
745
78.6
2.5
5.8
98.2
70
7.5
980
97.78
Sep-12
0.336
3.09
1.5
96.04
121.1
69.25
160.22
0.68
19.42
28.78
575
83.7
2.2
6.1
98.69
74.3
6.2
821
98.1
Oct-12
0.69
2,81
2.4
92.30
121
69.4
158.4
0.84
18.48
28.9
569
77
3
5.60
99.03
75.35
5.9
824
93.78
Nov-12
1.20
3.04
4
97.32
117
75
157.95
0.93
18.80
31
784
71.5
2.9
5.5
98.5
63
7.2
946
97.30
Dec-12
2.90
4.60
96.74
122
72.86
159.12
0.38
18.08
25.90
483
81.70
2
6.20
98.44
81.30
3.80
614
98.70
Jan-13
1.96
3.05
3.8
95.80
118
68
158.34
1.29
18.2
22.1
736
84.24
1.75
6.20
98.96
79.06
2.38
621
87.8
Feb-13
0.94
3.02
3.10
97.28
115
69
159.3
1.96
18.1
24.2
1087
83.1
1
6.10
98.73
77.25
5.30
1209
98.85
Mar-13
6. New regulators training of tapping. 8. 2/2 vessel operation, difficulty in vessel bottom maintenance 9. 2/2 vessel operation, difficulty in vessel beottom maintenance and enriched product mix ( high vol of peritectic,
MC, HC) 10,17-2/2 vessel operation led to delays 11,15- high superheat was intentional to prevent recharges and to keep up with 2 vessel feeding.
Jul-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
8- Vessel2 high life and TBM not functional, 9- Vessel-3 upgradation, system not stabilised, wrong capturing of data, 11, 15 - Intentional high superheat in WOI cases, 10,17- Delay due to WOI, 13- High number of
capoffs and WOI
1. - Problem in Mg flow, mono injection in many heats
DS 3- Increased number of lance chokages and flow problem
10,11,15- WOI, 13- High no of Cap-offs, MSD/ WOI
2- HM S is 0.056 against 0.050, 5- HM Si Avg. 0.82 against 0.7, Increase in lime consumption by 7 kg/tcs, 9- change in measurement system, target to be revised to 30% as per the measurement system
18,19- poor RH performance due to lance jam and premature vessel failure, 10- WOI and aim speed inc for low carbon grades, 7- High downgrading in S, Si.
High delay due to WOI. Downgrading increased in C,P due to high bottom of V3
8.- Vessel 3 up gradation and non-availability of bottom stirring in vessel 2, 9. -difficulty in vessel bottom maintenance and enriched product mix is the reason behind the adverse value, 11, 15 - Intentional high
superheat in WOI cases, 10,17- Delay due to WOI, 13- High number of capoffs and WOI
9. Heavy bottom in vessel 2 and 3 19. 4 IF heats downgraded-1C++ (RH Offtake jam/CMNE/ SOP modified),1N++, 1Ti++,1B++ (FeB addition malfunction) 12. new trainees are taking training. To be recitified in a
month 19. IF heats were downgraded due to 1) High carbon due to off take jam, 2) Nil B due to Feb Addition system malfunction 3) Nitrogen pick up in one heat 4) Operator missed to add Ti. MR asked to prepare an
analysis of all RH related downgrading in IF heats for FY-13.
Jun-12
Aug-12
6-High hot metal Sulphur,2-heavy BF carryover slag,if situation does not improve initiate a CAN ,7-8 new recruits, 10,17. DMAIC projects have been initiated for delay heat arrival to bring improvement, if situation not
improves,initiate a CAN.11. DMAIC projects have been initiated for high superheat,if situation does not improve, initiate a CAN.12. 8 new recruits were employed in May12, if situation not improves,initiate a CAN.Rh
related chemistry dg- 2 heats C++- offtake jam , 1 heat- FeB dispensing problem
Apr-12
Month
kg/tcs
Kg/tcs
%
heats
kg/tcs
Tons/heat
%
%
%
mins
%
Kg/tcs
Nos
%
%
Kg/tcs
mins
%
UoM
1. HM Si has increased from 0.75%(Mar'12) to 0.799%(Apr'12) which is having an adverse impact of 3kg/tcs on lime, Avg HM S was 0.061% against FY'12 avg of 0.059% & HM S with>0.09% was 3.1% of total heats &
in the month of Apr'12 it was 4.55% causing high consumption of DS compound, 2. Increase in heavy BF carry over slag(384no of torpedos in Apr'12 & also huge increase from FY'12 avg which was 279no of
torpedos) lead to increase in DS metal loss(Impact~1.5 Kg/tcs) 3. HM Si has increased from 0.75%(Mar'12) to 0.799%(Apr'12) which is having an adverse impact of 3kg/tcs on lime. 4. high metal loss due to high
lime comsumption- thick slag 8. PSM attributed the reason to bottom buildup in vessel. 10,11. DMAIC projects have been initiated for delay heat arrival and high superheat to bring improvement.
Compound Consumption
Metal Loss in DS
(Aim-Actual) DS S within 0.004 %
Sleeve life
Lime Consumption
Heat Wt
Downgrading in Chemistry due to Vessel
Slag Fe
Reblown Heats
Delay Heat Arrival due to vessel
Super Heat 15-35 C (in direct heats)
Metal Loss in Vessel Pit
Heats per ladle per day
Free Opening of Ladles
Super Heat 10-30 C (LF heats)
Metal Loss in LF Pit
Delay Heat Arrival due to LF
RH out Carbon <25 ppm
RH related Chemistry downgrading in IF
heats
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Key Performance Indicator
Sl. No.
Daily Management KPI Tracker for Steelmaking (FY'13)
May-12
SMLP
Vsl
DS
LD-2/DM/03.00, 05.04.12.
Daily Management in Maintenance
3.2 Daily Management in Maintenance

For the maintenance function of any department/company, the prime objective is: "To improve
plant/equipment availability and performance at optimum maintenance cost". Deterioration begins to take
place as soon as equipment is commissioned. In addition to normal wear and deterioration, other failures may
also occur. This happens when equipment is pushed beyond its limitations design or due to operational errors.
Degradation in equipment condition results in reduced equipment. Equipment downtime, quality problems or
the potential for accidents and/or environmental excursions are the visible outcomes. All of these can adversely
impact operating cost.
Maintenance and Production are the integrated processes in any manufacturing unit.
Fig 3.18
Maintenance and Production units work together as a team and strive to fulfill the need of Next Process
Customer in the Value Chain
Maintenance unit captures inputs from the production plan, shutdown plan, production requirement, failure
analysis etc. and develops it into a maintenance plan. Plan is executed. Results are analyzed and reviewed.
Deviations/ abnormalities at every step is identified and addressed through corrective and preventive
measures.
The most important key performance indicators (KPIs) for evaluating the performance of this function are as
below:
l
Number of breakdowns/failures
l
Delays (in hours/minutes per month) due to these breakdowns/failures
l
Shutdown duration (for major shutdown, monthly shutdowns etc.)
l
Availability of the plant/equipment
l
Overall Equipment/Plant Effectiveness (OEE/OPE)
l
Maintenance Cost
146
The elaborate steps of Daily Management in Maintenance function with tools & formats is given in Table 3.3.
Table 3.3 Detailed steps of Daily Mangement in Maintenance
Broad Objective
Step
Setting the
Objective
P1
Designing the
detailed
maintenance
plan
P2
P3
Identification of
In-process KPIs
and develop
a system for
their monitoring
and controlling
P4
Carry out the

maintenance as
per the designed
plan
Check for
Abnormality &
make correction
and
recurrence
prevention
D1
Revise
standards,
trackers as
applicable
A2
P5
C1
A1
Description
Tools
Format/Output
document
P1.1 Identification of roles &

objective
P1.2 Identification of
customer requirement
P1.3 Refer Management
System Chart (MSC) for
Maintenance
P1.4 Identification of DM
items from ABP Cascade
P2.1 Equipment
Segmentation & Criticality
assessment
P2.2 Prioritizing actions by
FMEA
P3.1 Develop Maintenance
Plan (CBM/TBM), SOPs,
Inspection checklists,
calibration plan
P4.1 Identify
- In process KPIs
based on Step P1 & P4 and
segregate them as ESCP and
MP KPI
P4.2 Identify KPIs at each level
P5.1 Develop a system for
monitoring and checking the
KPIs
D1.1 Do/Perform Activities as per
(a) CBM/TBM (b) Inspection
(c) Restoration (d) Calibration
as planned
C1.1 Check for abnormalities
1.1
1.2
1.3
1.4
1.1 TQM/DM/R&O/001
1.2 DM/Maint/COA/001
R&O
COA
MSC
BOS
1.1 Criticality Ranking

sheet
1.2 EFMEA
2.1 Criticality Sheet

2.2
TQM/DM/EFMEA/015
3.1 SMP book
SOPs/ SMPs
a) SMP, SOP , EFMEA

for ESCP KPI
b) BOS, MSC, R&O,
COA for MP KPIs
KPI Drill Down
6.1 KPI tracker
TQM/DM/KPI/005
As per monitoring plan

developed in P5
A1.1 Take Immediate corrective a) SOP
action
A1.2 Analyze and take
a) Watanabe Analysis
correction and recurrence
b) RCFA
prevention actions
c) CAPA
A2.1 a) Modify SOPs
A2.2 Capture learning
b) Revise targets/limits
a) SOPs/Standards
A2.2 Capture learning
b) RCFA Sheets
A2.3 Provide Training
c) Watanabe Sheets
d) MPI Sheets
Inspection checklists
TQM/DM/KPI/005
a) TQM/DM/WTN/014
b) TQM/DM/RCFA/013
c) TQM/DM/CAPA/007
a) TQM/DM/RCFA/013
b) TQM/DM/WTN/014
d) As per KM guidelines.
P-Plan D-Do C- Check A- Act
Note: The various steps have been divided in PDCA and has been allocated step number as well for easy
reference. These step numbers are used as cross references in the chapter to describe each step against
objectives of DM implementation. The above DM process is for Maintenance Function only. Shared Services
Division in Tata Steel has three types of functional units 1) Operations (e.g. Power Houses), 2) Field
148
Maintenance and 3) Services. The below mentioned process is for Maintenance/Field Maintenance only. Other
departments/units should follow either Operations or Services process flow of Daily Management as
applicable.
3.2.1.1 Setting The Objective
P1.1-1.4: Focused Maintenance Activities to be carried out in department section is identified based on inputs
from the following documents:
P1.1 Roles and Objectives (R&O)
P1.2 Charter of Agreement (COA)
P1.3 Management System Chart (MSC)
P1.4 ABP Cascade
P1.1 Roles and Objectives (R&O)
Refer Chapter 2.1.1 for details on Roles and Objectives.
P1.2 Charter of Agreement
Refer Chapter 2.1.2.2 for details about Charter of Agreement
P1.3 Formation of Management System Chart (MSC) for Maintenance Process
Refer MSC of Shared Services Division at the end of chapter.
P1.4 ABP Cascade
The DM items identified through R&O, COA and MSC need to be checked with BO&S to see the coverage of BOS
items. The purpose is to include all DM items identified in BOS in the KPI Tracker.
A sample copy of ABP cascade of Chief Mills and Utilities Mechanical Maintenance (MUMM) is given at the end
of chapter.
3.2.1.2 Designing the Detailed Maintenance Plan
P2.1 Equipment Segmentation and Criticality Assessment
All equipment in a plant is not of the same importance. They need to be categorized in a logical way based on
their criticality so that proper maintenance strategy and resources could be assigned to these equipment. This
is also necessary from the view point of resource constrain.
There are many ways of equipment classification in today's industrial world. Some of them are data based and
some are proactive assessment (of equipment category). To make the critical ranking of equipment process,
applicable to all types of operating units whether new or old and to have a logical proactive approach, the
following model of JIPM (Japanese Institute of Planning and Management) is being adopted.
149
All the machines shall be scored on PQCDSEM parameters as illustrated below:

Table 3.4 Critical ranking as per JIPM Model
Machines
M/C # 1
3
2
3
3
2
3
1
17
Parameter
P
Q
C
D
S
E
M
Total
M/C # 2
2
2
4
3
2
2
1
13
M/C # 3
2
3
2
2
4
1
1
15
M/C # .
1
1
0
2
3
1
1
9
M/C # n
0
1
0
1
2
1
1
6
Soring criteria for individual equipment is as given in following table:

Table 3.5 Individual Ranking criteria of JIPM Model
Scoring for P/Q/C/D/S/E/M

Score
Criteria
100% loss in case there is a break down
No loss in case there is a break down
After the scoring for each equipment is done, the total score is noted down based on which the equipment are
categorized as A, B, C, D, E as per the following rule:
Table 3.6 Segregation of equipment in various categories as per JIPM Model
Rank
Criteria
M/C having highest Total score or at least one 4 in any of the parameters.
Preventive Maintenance is already being done by Maintenance team but it is not

included in JH (Those equipment which have P and Q scores as 3 can be considered)
Machines having a standby or an alternative
C&D
Remaining equipment based on Managers judgement
The equipments in C & D are based on their total score as above. It can be decided by the maintenance team.
This segregated list with equipment categories as A, B, C, D, E can be utilized in further exercises related to TPM,
FMEA, Maintenance and Reliability.
150
P2.2 Prioritizing actions by EFMEA

Refer Section 2.1.5.3 for details on EFMEA
P3 Develop Standard Maintenance Practices
P3.1 Develop Maintenance Plan (CBM/TBM), SOPs, Inspection checklists, calibration plan
The maintenance plan is developed using Step P1, P2 and the following activities:
i.
Condition Based Maintenance (CBM) and Inspection for health assessment of equipment.
ii.
Time Based Maintenance (TBM) activities to avoid deterioration of equipment.
iii.
Zero Failure Activities -Restoration for preserving the normal status of the equipment after
breakdown/interruption. It includes capturing of all breakdowns, identifying their root cause (s) and
taking preventive countermeasures to eliminate their recurrence
iv.
Corrective Maintenance Activities: These are the improvement activities carried out for reduction in
the Mean Time to Repair (MTTR) Life enhancement of components, improvement in the maintainability
of equipment etc. and result into reduction in the maintenance cost.
v.
Planning and execution of shutdown activities to reduce their duration: These activities include
mapping of all the activities in the form of a PERT chart, breaking down bigger activities into smaller
activities and identifying some of these activities whose duration can be reduced either by eliminating
these altogether or reducing its time, making it parallel or completing it modular so as to reduce the
overall shutdown duration. The Critical Chain Project Management (CCPM) model can also be suitably
used to achieve the above objective. The ECRS (Eliminate, Combine, Re-arrange and Simplify)
methodology also can be used effectively to reduce the shutdown duration.
vi.
Lubrication Management Activities: These activities include proper storage and handling of lubricants
(so as to reduce/eliminate their spillages), timely checking and maintaining the oil level in all equipment
as well as standardizing the types of lubricants (reducing types of lubricants - greases, lubricating oil,
hydraulic oil etc.). These activities will also result into reduction in the maintenance cost of the plant.
vii.
Spare Parts Management Activities: These activities include deciding and implementing a proper spare
management policy as well as also standardizing the types of spare parts so as to reduce the spare parts
inventory & stock-outs of the spare parts. These activities will also result into reduction in the
maintenance cost of the plant.
viii.
Product / Process measuring instrument maintenance: These activities include regular calibration and
checking of product and process measuring instruments like Thickness gauge, shape meter, weighing
machines, Thermocouples etc. It helps in achieving zero product rejection.
ix.
Maintenance Cost Monitoring & Management: The overall maintenance cost of the plant, which will
include lubrication cost, spare parts cost, own manpower wages as well as outsourced manpower
wages, is monitored against the planned target so as to confirm whether this is within control or not. If
not, necessary actions are initiated to control the expenditure and plan is revised accordingly, wherever
required.
In order to reduce maintenance cost, the emphasis of these activities should be to transfer more and
more of the time-based maintenance activities to condition-based maintenance activities.
151
SOPs need to be developed before the execution of the job. These documents provide a standardized approach
for performing maintenance activities and provide guidance for execution of activities and action to be taken in
case of deviation. The book Maintenance Standards & Practices developed by MEG, Shared Services Division,
Tata Steel can be referred to for various standards related to Electrical and Mechanical maintenance. Standard
Operating Procedures (SOPs) are made or revised, before undertaking a maintenance job to systematically
address Safety, Environment and Quality aspects of a job along with the procedure.
Inspection sheets and checklist should be simple and relevant to record. The data is recorded at a specified
frequency by frontline employees that may be Shift wise, day wise etc. These checklist, log book should be
reviewed and analyzed by supervisor or manager on a regular basis. A sample inspection sheet is given at the
end of chapter.
3.2.1.3 Identification of in-process KPIs
P4.1 Identification of KPIs
KPIs are identified based on the planning steps P1 P2 as described above. Measurable parameters based on
ABP, COA and R&O after prioritization and segregation gives a list of Key Performance Indicators that are to be
monitored and controlled.
The KPIs in Maintenance can be divided into two categories:
1)
Equipment Specific Critical Parameters (ESCP)
2)
Maintenance Performance KPIs
1) Equipment Specific Critical Parameters (ESCP)

ESCPs are equipment related parameters that are monitored by Maintenance team to assess the health of
equipment (component or sub-component). They are identified through SOP and SMP booklet. The CBM and
TBM process also provides such parameters to monitor. ESCPs are lead parameters of maintenance and gives
warning before a failure occurs. Change in such parameters gives the indication of severity of a problem. Some
of the parameters are:
a.
Vibration (Rotating/Vibrating equipment)
b.
Temperature (Refractory lined equipment and some other equipment)
c.
Particle Count
d.
Thickness of shell plates, steel cord belts etc.
e.
Irregularity/Cracks in axles, shafts
f.
Hardness of surfaces
g.
Bearing clearances
KPIs under this category (ESCP) can be prioritized for monitoring based on criticality. These parameters can be
monitored online (real time) or offline based on the criticality and resource availability.
152
2) Maintenance Performance (MP) KPIs

Maintenance Performance KPIs are indicators of effectiveness and efficiency of Maintenance Activity. They
may not be indicating the status of equipment directly; rather they provide an aggregate picture of
maintenance activities being performed in a section/department. They are generally identified from ABP, R&O
and CoA items. Examples of such KPIs are as follows:
Effectiveness MP KPIs:
1) Mean Time Between Failure (MTBF)
2) Overall Equipment/Plant Effectiveness (OEE/OPE) (Refer Annexure II)
3) Number of Interruptions
Efficiency MP KPIs:
1) Mean Time To Repair (MTTR)
2) Compliance to CBM/TBM activities
These KPIs are to be monitored and reviewed at regular frequency to get current status of Maintenance
activities and plan further action for improvement. Calculations of some of these KPIs are given in Annexure V.
P4.2 Identify KPIs at each level

Process of KPI drill down
Once the KPI identified at higher level based on section/departmental roles & objective and customer point of
view, the sub KPIs at lower level should be identified based on data/past experience or assumption.
Business results (KPI stability) cannot be achieved until and unless we start controlling and reviewing these KPIs
at every level. So efforts should be made to monitor the lower level parameters and put efforts to stabilize
them. This will lead to a gradual improvement in the long term trends, reduction in variations. The cause and
effect relationship will become stronger as we start understanding the system better through data and
phenomenon observation.
It is important to keep in mind that the objective of identifying and monitoring DM parameters at each level is to
identify abnormality and taking corrective and preventive action at each level to stabilize the entire system.
The KPI drill down has following advantages as detailed below:
1.
Clarity in Roles and responsibility: By drilling down the KPIs, Roles and responsibility identified for each
employee which brings clarity in individual.
2.
Empowering Employees: As each employee's becomes the process owner, they feel empowered.
3.
Faster Improvement: As everyone starts rotating PDCA, the improvement is faster and manifold.
4.
It also helps operators to understand the linkage between his DM parameter and the output KPI.
5.
Develops the culture of SOP, as for each activity developing SOP becomes the necessity of the process.
An example of KPI Tracker is given at the end of chapter.
153
Fig. 3.21 KPI Drill Down at CGL limit
P5.1 Develop a System for Monitoring KPIs

For the two types of key performance indicators (KPIs) identified in Step P4, a plan of monitoring the KPI need to
be established so that complete information can be obtained for the maintenance function.
a.
Monitoring Plan for ESCP: ESCPs are recorded by frontline employees in the form of Check Sheets,
Inspection Checklists. The limiting values of ESCP for identifying abnormality should be provided by
officers and communicated to frontline employees so that they can identify and report the
abnormalities. These limiting values are determined by OEM recommendations / past trend analysis /
expert analysis. These documents are to be reviewed by Officers on a regular basis. Monitoring of ESCP
KPIs can be taken to higher level by integration of IT platform. The values of parameters (or ESCP KPIs) are
fed into Easy PM (provided on TSL intranet ) or SAP system. The system then compares it with the limiting
values already provided in SAP. In case of abnormality, a notification gets automatically generated that
goes to the concerned authorities informing the problem. The authorities then analyze and take action
for its restoration.
b.
KPI Tracker for MP KPIs: MP KPIs are compiled in the proper format of KPI Tracker. They are monitored
against a target that is set at the beginning of each financial year for each monitoring period (monthly,
quarterly, half yearly etc.). The performance to be monitored using Traffic Signal (Refer Section on
Visualizing the Performance through Traffic Signal) and reviewed at proper forum. Hence, the process of
target setting evidently becomes important. The target should not be too high or too low. If the KPI
always appears in green or red then it clearly states that time has come to revise the target. For quick
review and quick retrieval of details, the Group KPI portal (GKPI) provided by company's ITS dept. may be
used. A sample of KPI Tracker is given at the end of chapter & its format is given in Annexure V.
154
3.2.1.4 Carry Out Maintenance as per Designed Plan

D1.1 Do/Perform Activities as per Plan
The activities are performed as established in Step P3 and monitored as per monitoring plan developed in Step
P6.
3.2.1.5 Check for Abnormality and Take Action
C1.1 Check for Abnormality
Abnormality is identified with the help of the monitoring plan developed in P6 while doing the activities of Step
D1.
Expert help should be taken if countermeasure/corrective action could not be found. In case shutdown is
required for the corrective action then equipment should be monitored regularly till shutdown to assess its
health at each moment. Breakdown should be avoided as far as possible. In worst case unplanned shutdown
can be taken.
Abnormality in ESCP KPIs or Equipment Specific Critical Parameters is identified by inspection checksheets or
Easy PM system. The notification regarding abnormality goes to the concerned authorities who take action
based on their analysis of the parameter.
Abnormality in Maintenance Performance KPI is generally non-compliance to plan/nonconformance to
specification. Generally they are monitored in the format of KPI Tracker by Traffic Signal way. If the status of a KPI
becomes red then it need to be analysed and CAPA is generated to take corrective and preventive action.
A1.1 Take Immediate Corrective Action
When there is Failure, then first step is to take corrective action to restore it with the help of SOP. In case
corrective action is not known, expert RCFA should be conducted immediately. With the recommendations of
RCFA the corrective and preventive action should be taken. The availability of spare parts and resources should
be ensured before going for corrective and preventive action. Watanabe Analysis and RCFA is required even if
the team is able to take immediate corrective action. Also, CAPA should be generated to take action. The
process flow is shown in Fig. 3.20.
A1.2 Analyze and make Correction and Recurrence Prevention action
Important Definitions:
(a)
Correction: Immediate action to restore the fault and bring equipment in normal operating condition is
called Correction.
(b)
Corrective Action or Recurrence Prevention Action: The action taken to prevent recurrence of faults in
future where fault has happened in the equipment is called Recurrence Prevention Action or Corrective
Action.
(c)
Preventive Action: The action taken to prevent occurrence of faults in future where fault has not
happened yet in the equipment is called Preventive Action.
155
Watanabe Analysis
The Watanabe model is a precursor to failure analysis and usually the most useful tool for trending of failure
data and classify for fixing maintenance and equipment strategy.
Watanabe analysis should be done for each failure. The distribution of failures in the Watanabe model acts as
good indicator of maintenance practices (finally majority should shift to CMNM) and also helps understand the
broad focus areas for the shop. Watanabe model is illustrated in Fig. 3.22. The compiled Watanabe analysis of
all failures acts as good indicator of maintenance practices (finally majority should shift to CMNM) and also
helps understand the broad focus areas for the unit. The Watanabe Model of failure analysis is given below:
Failure
New
OR
sporadic
Poor
JH
Design
weaken
ss
Poor
TBM
TBM
Schedule
not OK
Repetitive
chronic
TBM
Kill
not OK
Poor
Skill
TBM
not
followed
CMNT1
solution
not
known
not
Knownproper
ledge
for
gap
analys
Carelesness
Missed
to
follow
Waiting
for
shutdown
Spare
not
available
CMNT2
solution
known
Waiting
for
spares
Design
change
required
Waiting
for
Shut
down
Analysis
not
correct
Waiting for
investment
approval
Design
change
not
required
Poor
Skill
Poor
skill
CMNT3
Implementation
not correct
Poor
spare
quality
Not
proper
for
analys
CM Not
stsndardised
Poor design
change or
wrong spares
Carelesness
CM
stsndardised
Standard
not
followed
Missed
to
follow
Not
trained
Standard
followed
but not
adequate
Difficult
to
follow
Fig. 3.22 Watanabe Model of Failure Analysis
1CMNT Counter Measure Not Taken

2CMNE Counter Measure Not Effective
3CMNM Counter Measure Not Maintained
Watanabe Analysis sample from H BF for a single failure is as under:
A sample of Watanabe Analysis is given at the end of chapter. Format for Watanabe Analysis is given in
Annexure V.
Root Cause Failure Analysis
Root Cause Failure Analysis (RCFA) is a methodology to find out the exact causes resulting in a particular
equipment failure/issue and ability to permanently eliminate/control those causes. It is a widely accepted fact
that majority of equipment failures are chronic in nature, which in turn means that these occur due to same
reasons, thereby highlighting the need for RCFA. Hence, a properly done RCFA would lead to identification of
causes with perfect correlation to the failure eliminating which would mean eliminating that particular failure.
A typical RCFA process is given in Fig. 3.23. Guidelines to fill RCFA sheet is shown in Fig. 3.24. A sample RCFA
sheet is given at the end of chapter.
The recommendations of RCFA need to be implemented for recurrence prevention of the abnormality. The
corrective and preventive actions are planned in proper CAPA format shown in Annexure III and needs review
on a regular basis. The format for RCFA is given in Annexure V.
156
Yes
Standardize & do horizontal

deployment
FAILURE OCCURS
Desired effects
achieved?
No
Inform symptoms to relevant

people
Implementation plan
Immediate fix/actions to
minimize consequence
Yes
Involve experts
Check SOP and last PM
report
No
Solution
arrived?
RCFA team to be
formed
Investigate incident & record

(Watanabe sheet)
Yes
Significant Delay?
Top failure mode segregated
for RCFA
No
Data captured
Key Stages
Pareto on 3 -monthly basis

(both frequency and impact)
Fig. 3.23 RCFA Process Flow
Root cause failure analysis (RCFA) sheet

Where (Eqpt)
Downtime
Problem description (FM reference): -
Ensures linkage to
failure modes
envisioned during
Explore Root cause (Why
Why):
ICC creation
Name:
Sign: _ _ _ _ _ _ _ _ _
Shift
CM* reference Failure Date: _ _ _ _

Failure Time: _ _ _ _ Last Inspection
Watanabe analysis
CM
standardised
CMNM3
Data Analysis:
Form No.:
TQM/DM/RCFA/013
Rev: 01
Eff. Date: 01.01.2014
Date:16-02-2012
CM Not
standardised
Lookbackon the
countermeasure
planned and inspection
mechanism prevalent
Analysis
not
correct
CMNE2
Difficult
to follow
Standard
not
followed
Not
trained
Data not
proper for
analysis
Missed
to follow
Poor skill
Careless ness
Poor design
change or
wrong specs
Implementation
not correct
Repetitive
OR
chronic
Standard
followed but
not adequate
Poor
spare
quality
Poor skill
Waiting for
investment
approval
Countermeasures finalised:
What will change?
Plan to avoid
to future incident
Solution
known
F
a
il
u
r
e
Knowledge
gap
Poor
skill
Design
weakness
New
OR
sporadic
Poor
TBM
CAPA Ref. No.:

Poor JH
Fig. 3.24 Guidelines to fill RCFA Sheet

157
Waiting
for
spares
CMNT1
Why-Why analysis
as basic tool
for RCFA
Responsibility:
Target date:
Waiting
for Shutdown
Leveraging
Watanabe
Solution
not directional
to get
known
Data not
proper for
inputs
analysis
TBM
not
followed
Spare not
available
TBM
skill
not OK
Waiting for
shutdown
TBM
schedule
not OK
Missed to
follow
Not
included
in TBM
Careles-ness
Design
change
not required
Design
change
required
3.2.1.6 Revise Standards, Trackers

A2.1 - A2.3 Modify SOPs, Capture learning, Provide Training
Once any corrective and preventive actions have been taken after an abnormality/deviation, they may call for a
change in the monitoring standards and Inspection / Repair standard / Standard Operating Procedures (SOP) /
trackers. In that case, these documents should be modified accordingly with approval of proper authority.
Inspection/ Repair standard/ SOPs, thus made or revised, should be created under the prevailing quality
management system of the department (ISO 9001/TS 13001) so as to avoid duplication of documents as well as
to ensure a document control system in place. The target/limits for ESCP KPI or MP KPI might also be needed to
revise which will change the control system/tracker of that KPI.
The learnings should be captured in the form of RCFA sheet, Watanabe analysis sheets, MPI Sheets and SOPs
(modification) for future reference. The learnings can also be logged in the form of KPs or BPs in KM Portal as
available on Tata Steel Intranet. The key learnings are taken as inputs in the ABP planning process for next year.
The learning are also utilized for same type of activity/process in future to make the process efficient and
effective.
The training needs arising in due course of maintenance activities should be imparted to concerned employees
for skill enhancement. The training on modified Standards, SOPs and targets/limits must be imparted soon the
document is modified.
158
Production /
Service
25
Men on roll
(as on date)
To improve
plant/equipment
availability/
performance at
optimum
maintenance
cost for NBM
What is the role

of the
department /
section ?
NBM
Department/Section
Service
As per target
Complaince to R&M
budget
To reduce man machine

interface by implementing
technical solutions
Reduction in Slip, Trip &
Fall Hazards
Develop three model sites
in the year
LTIFR
Percentage involvement in
SGA circles and
Improvement projects
Number of persons trained
by inhouse
Develop 2 nos. of
contractor with good
capacity at NBM
Develop control stop

documents.
Y
Y
Numbers of Contractors
Developed
Nos. of Training / Person/

Year
% of people involved
Y
Y
Nos of Model Work Place

developed
Zero LTIFR
As per plan
Number of kaizens
Nos of Sections having

control stop document
Compliance to NSC s/d

All area implementing the
plan format for every
common format.
shutdown.
Improve compliance to PreShutdown Meeting with all Pre- shutdown meeting
working agencies including compliance
contrators.
As per target
Nos of equipment failures

leading to quality rejections
To reduce quality defects

due to equipment failure
HFI, LFI
Nos. of Training / Person/

Year
Number of failures of
Hydraulic cylinders
No.of hours
A K JHA
M N Shukla
Discussion with
concerned agencies
Consolidation of
contracts
Participate in workshops
to address the issues
Development of kaizens Organize regular SGA

on the monthly basis
meetings
Availability of resources
development of foolproof
organize workshops
hands free solutions
development of foolproof
organize workshops
control stop procedures
HOMM
HOMM
HOMM
HOMM
HOMM
Associates
Information to all
Less time given for preagencies on backlog on
shutdown activities
realtime basis
Managers
HOMM
HOMM
HOMM
HOMM
Responsibility
Associates
To covert all the carbon

steel pipes into stainless
steel pipes
To develop data
To discuss with suplliers
To develop alternate
supplier
Provide training on RCFA
What are the actions

points for these
concerns ?
1/9/2012
Immediate
1/9/2012
1/10/2012
1/9/2012
1/9/2012
1/8/2012
Dec'12
1/9/2012
1/9/2012
1/11/2012
1/8/2012
Timelines
Form No. : TQM/DM/R&O/001

Rev. : 02
Less time given for pre- Backlog information to

shutdown activities
be properly captured
Most of the hydraulic

and lubrication pipes
are carbon steel
No past data available
Availability of suitable
modules
Availability of OEM
Understanding on
CMNM, CMNT, CMNE
among all levels poor
Is data
What are the Critical
available for
Concerns ?
the indicators?
Date : 30/05/12
By what indicators, do
you evaluate whether
the job of the
Department / Section is
Prepared by:
Approved by:
Revision No. : 0
Reduce failures of
hyadraulic / pnematic
cylinders
Number of persons trained
by OEM
Reduce delays at NBM
What Is the Objective of the Job

of the Department / Section?
Production
Quality
Cost
Delivery
Safety
159
Morale
160
Means/action
to reduce
operational
delays
To ensure
delays are
within monthly
To ensure
proper length of
rebar
To improve
surface quality
To maintain Ys
and UTS of
rebars
Kg/cm2
gap as per
section
Pump outlet pressure

proper opening of
pinch roll
compliance to
timelines
compliance to
timelines
Timely compliance to
time lines for pinch roll
modification
compliance to
timelines for Bundling
station
Rebound in DS
To ensure proper
flushing in a bundle
unplanned Delays /
month
Rebound in gauge
head
To improve cut length
Mechanical delays
First cut head

photograph to be
monitored in cold
hours
gap
between
slider and
gap
between
slider and
Closed gap of pinch

closed gap
roll
LPM
mm
UOM
Flow from pump
Axial and radial lift
KPI
To improve Quality of
head and tail cut
To maintain pinch roll

gap
To maintain LPM of
Water box pump
To improve
To maintain axial and
Weight
radial lift in NTM
tolerance and Ar
modules
Objective
Signature
Name: Mr A K Jha
Designation: HOMM
Approved By
Maintenance Department: Mills and Utilities Mechnical Maintenance
To improve mill
availability ( NBM
operation)
New Bar Mill

(operation) to
maintain Quality of
product
Linkage
(with ABP)
101
100
15
ok/nok
ok/nok
ok/nok
1 mm
ok / nok
26
12000
axial --0.045
Radial-O.18-0.34
Target
Level
(Period)
monthly
monthly
monthly
Fortnightly
weekly
weekly
Every
shutdown
Daily
daily
daily
quarterly
Review
frequency
A K Jha
A K Jha
A K Jha
M N Shukla
M N Shukla
M N Shukla
B N Choudhary
B N Choudhary
D K Singh
D K Singh
B N Choudhary
Responsibilty
PM
PM
DM &PM
DM
DM
DM
DM
DM
DM
DM
DM
TQM Vehicle
/Methodology
Effective Date -01/01/2011
Form No DM/Maint/COA001
Rev 01
Operation department: New Bar Mill

Signature
Name: Mr Nilanjan Biswas
Designation: Head, operations
new
new
15.67
new
new
new
new
new
new
new
new
Base level
(Period)
Charter of Agreement ( Maintenance and Operation Department)

(Financial Year :2013-14 )
162
Area Chief Objective
KPM
6.4Develop model
work place in Mills
Mechanical Maint.
Develop model work

place in M&U MM
Number of model
work place
developed
Nos
Nos
One Safety initiative in

Mills Mechanical
Safety initiative
Maintenance
Nos
Departments to have Nos. of Sections

Well Defined control
having well defined
stop jobs
control stop jobs.
6.1Departments to
have Well Defined
control stop jobs
Nos.
No of
Subject
Matter
Expert
Hrs.
Eliminate incident (
Develop Kaizen on "
LTI) related with Hand Hands Free" activity .
Develop capability of
two contractor in Mills Compliance to plan
Mechanical Area
3.1Develop
capability of two
contractor in
Mechanical Area
Design, develop &

deploy a framework
for creation of subject No.of experts
expert group in the
developed .
selected pilot area hydraulic cylinders
Minimize mechanical Unplanned

delays in critical units Mechanical Delays at
of Long Products Area NBM
3. Capabilty
building for
stabilization of
10mtpa
6.2Eliminate incident
( LTI) related with
6. Become the
Hand
Global Steel
Industry Benchmark
6.3One Safety
in Safety & Health
initiative in each
performance.
area of Mechanical
Maintenance
Hrs.
Hrs.
UOM
Unplanned
Mechanical Delays at Hrs./Month
TSCR
Minimize mechanical
delays in critical units
of Flat Products Area Unplanned
Mechanical Delays at
PLTCM
2.1 Design,
develop & deploy a
framework for
creation of subject
expert group in the
selected pilot area .
1.1 Achieve
benchmark
equipment
availability in next
3~5 years.
Unplanned
Mechanical Delays at
HSM
No. of plants
1.1Implementing
Implementing NSC s/d implementing the
NSC s/d plan format plan format
common procedures
COMM
Strategies
2. Build talent
pipeline for critical
roles/ functions
across levels to
meet talent demand
for growth projects/
current operations
1.Maximise WSS
Production from
JSR with Optimum
Cost and Mix
Corporate
Strategies
New
New
New
New
New
192
New
130
244
New
Base Level FY'12
18
24
100
15
10
13.3
18
80
Target - FY'13
Upwards
Upwards
Upwards
Upwards
Upwards
Upwards
Downwards
Downwards
Downwards
Downwards
Upwards
Trend
Owner
Bring improvements in
problem area's through
KVHS initiative.
Corporate
guidelines.
LTP
Develop Model work

place in each section of
mills.
Slip, Trip & Fall Hazard

identification & its
mitigation.
Reduce man-machine
interface.
Develop control stop

documents.
Develop 2 nos. of
contractor with good
capacity at TSCR.
In House Training.
Campaign for zero

cylinder failure.
Internal
Challenges &
OEM Training.
Remaining
Problem
VOC,Internal
Challenges .
119324-Rajeev Malhotra
118464-V B Singh
112960-V K Sinha
109966-Binod Kumar
148658-Sunder Priyadarshi
128280-Rajat Madhur
149525-Rakesh Kumar
107636-T Srinivas
128280-Rajat Madhur
149525-Rakesh Kumar
119324-Rajeev Malhotra
118464-V B Singh
112960-V K Sinha
109966-Binod Kumar
148658-Sunder Priyadarshi
128280-Rajat Madhur
149525-Rakesh Kumar
107636-T Srinivas
119720-Arun Kumar Jha
VOC,Internal
Achieve Smooth ramp
128280-Rajat Madhur
Challenges &
up of TSCR to surpass 149525-Rakesh Kumar
remaining
production target.
problems.
152804-Binod Kumar
152333-D K Dhiraj
Comply PLTCM upgrade
VOC & Internal
503174-C S Pandey
activities with normal
Challenges
502951-Sanjay Sen
plant operation.
109968-P K Mahto
149728-Rajesh Kumar
151255-Prakhar Jha
109033-B K Pandey
118464-V B Singh
112960-V K Sinha
502858-Perwaiz Kaiser
500198-G K Barman
Compliance to NSC s/d 149744-Malay Choudhary
152667-Prashant
plan format for every
109968-P K Mahto
shutdown.
149728-Rajesh Kumar
151255-Prakhar Jha
109033-B K Pandey
123823-B N Choudhary
150337-Indranil Sengupta
Pre- Shutdown Meeting 147904-Vimal Mishra
with all working
127304-D Barman
agencies including
150990-N Naga Prashanth
contrators.
152115-Nirmal Kumar
500189-S K Lal
Strategy
Reducing the hydraulic

& lubrication related
VOC,Internal problems.
Challenges &
Improving the reliability
remaining
of furnace#3 by
problems.
reducing its mechanical
related problems.
Internal
Challenges
Input Source
Business Objective of Area Chief (Mills Mechanical)
Nos of Model Work

Place developed
As per plan
Number of kaizens
Nos of Sections
having control stop
document
Nos/ Section
Nos./Section/
Quarter
Nos.
Nos
Nos. of Training /
Person/ Year
Numbers of
Contractors
Developed
Nos
Hrs./Month
Hrs.
Hrs.
Hrs.
UOM
Nos. of Training /
Person/ Year
Percentage
Reduction in failure
Implementation of
Initiative
Compliance to delay
target
Compliance to delay
target
Compliance to delay
target
Compliance to delay
target
Pre- shutdown
meeting compliance
All area
implementing the
common format.
KPM
New
New
New
New
New
New
New
New
New
130
19.5
40
New
New
Base
Level
FY'12
Upward
Upward
Upward
Upward
Upward
Upward
Upward
Upward
Upward
Upward
Trend
18
80
Upward
Upward
Upward
Upward
100 %
compliance to Upward
plan
25
80
100
160
10.5
21
80
80
Target - FY'13
Business Objective & Strategies (BOS) of Chief Mills &Utilities Mechanical Maintenance
AIC
AIC
AIC
AIC
AIC
HOMM
Review
meeting
HOMM
Review
meeting
HOMM
Review
meeting
HOMM
Review
meeting
HOMM
Review
meeting
HOMM
Review
meeting
HOMM
Review
meeting
HOMM
Review
meeting
HOMM
Review
meeting
HOMM
Review
meeting
Review
Forum
Quarterly
Monthly
Quarterly
Quarterly
Quarterly
Quarterly
Quarterly
Quarterly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
HOMM
Task Force
HOMM
HOMM
HOMM
Task Force
Task Force
Task Force
Sr.
Mgr/Mgr/As
st.Mgr
HOMM
Sr.
Mgr/Mgr/As
st.Mgr
Sr.
Mgr/Mgr/As
st.Mgr
Sr.
Mgr/Mgr/As
st.Mgr
Sr.
Mgr/Mgr/As
st.Mgr
Review
Data owner
Frequency
163
28
S3 TANK
TOP.
Visual
Visual
Visual
Touch
Touch &
hearing
Oil temp
water temp
cooling water
pressure
outlet pressure
Temp
Sound /
vibration
Oil cooler
Pressure gauge
Am-Rcl-23 & 24
Visual
NA
room
temp
Visual
Visual
Oil leakage
Pressure gauge
Oil Filter
G/NG
(<60 deg
C)
G/NG
1900L
<2500L
Visual
Oil Tank
room
temp
NA
NA
Touch
01 or 02
NA
AM-BLU-01
/ (AM-BLU-02)
NA
NA
60
3500L
4200L
100
NA
NA
NA
NA
NA
60
100
NA
NA
NA
60
NA
NA
NA
NA
NA
100
NA
room
temp
NA
NA
NA
NA
NA
NA
Touch &
hearing
NA
NA
Touch &
hearing
Visual
Visual
Mill motor
bearing lub
system
Sound /
vibration /
vibration
Temp
01 or 02
G/NG
(<60 deg
C)
G/NG
Normal
no leakage
Visual
hearing
Running Motor no Visual

Touch
Temp
NA
Visual
NA
Deg
C
Deg
C
Deg
C
Lit
NA
NA
NA
deg
C
NA
NA
deg
C
NA
NA
NA
DAILY INSPECTION CHECK LIST OF OIL CLEAR + ROLL COOLANT ROOM

Checking
DATE
method
Criteria
MIN MAX STANDARD UNIT
Sound /
vibration
Running Motor no
Leakage from oil
pump
Oil level
Motor (AM-BLU-01)
/ (AM-BLU-02)
Bearing
lubrication
system
Check for any

alarm
Illumination
leakage
Control Item
FORM NO : CRMC/FORM-633 REV NO : 01

EFFECTIVE NO: 15.03.04
G/NG
(<60 deg
C)
G/NG
Lighting
pnumatic system
oil cellar
general
DAIL Name of Equip.

Check Unit
Y
INS
TCM P/P
CMS check
1
OIL CLEAR + ROLL COOLANT ROOM
Sample Inspection Checklist
DATE
DATE
DATE
DATE
DATE
REMARKS
ID: 109_EEI_C_235P_OILCLEAR+COOLANT
TCM Mill
Motor
TCM ECR
32
34
TCM ECR
31
TCM ECR
TCM ECP
30
33
TCM P/P
29
DAIL Name of Equip.

Y
INS
164
Main Motors
POC
Shapemeter PC
POC
POC
CMS check
Check Unit
OIL CLEAR + ROLL COOLANT ROOM
Human
senses
Visual
NA
NA
NA
Visual
NA
NA
NA
NA
NA
NA
Visual
Visual
NA
NA
Visual
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
DAILY INSPECTION CHECK LIST OF OIL CLEAR + ROLL COOLANT ROOM

Check Condition
DATE DATE
Checking
method
Criteria MIN MAX STANDARD UNIT
INSPESTED BY
REVIEWED BY
Check for
normal
operation
Check MOTOR
monitoring
menu for any
abnormal
condition
Check normal
functioning of
ASCDATA
receive task
Check of any
process alarm
Check for any

alarm
Check normal
functioning of
MICA trace by
checking each
PLC individual
Control Item
FORM NO : CRMC/FORM-633 REV NO : 01

EFFECTIVE NO: 15.03.04
DATE
DATE
DATE
DATE
REMARKS
ID: 109_EEI_C_235P_OILCLEAR+COOLANT
Line MTBF
165
R&O
R&O
R&O
BO&S
BO&S ref.
no. ....
BO&S
Category of
KPI
Hrs.
Nos./Month
Hrs. / Month
Hrs. / Month
UOM
4.2
35
25
22
42
Base
Level
4.2
35
19
15
39
Target
Monthly
Monthly
Monthly
Monthly
Monthly
Fortnight
Monitoring
Frequency
NBM/MECH/DM/18
NBM/MECH/DM/17
NBM/MECH/DM/11
NBM/MECH/DM/03
NBM/MECH/DM/02
NBM/MECH/DM/01
Monitoring
Graph/Chart No.
(E) Document Ref. Can be SOP number of corresponding SOP
(D) Overall value of the KPI must be mentioned in this sheet. Overall value can be sum, average or last value of individual monthly status.
MNS+SKV
MNS+SKV
MNS+SKV
MNS+SKV
MNS+SKV
MNS+SKV
Responsibility
Approved by:
Prepared by:
(C) The Reference No. of Objectives/Strategies providing KPIs should also be mentioned in third column as "BO&S ref. no."
(B) Category of KPI are: Production(P), Quality(Q), Cost( C), Delivery (D), Safety(S), Morale(M)
Note: (A) Source of KPI are: R&O, COA, BO&S, MSC
LFI
Interruptions
Mechanical Delay
HFI
Shutdown Duration
Key Performance
Indicators
Sl. No.
Source of
KPI
Date: 1st Aug 2012
Section:
24
Revision No. 02
Department: New Bar Mill
SOP No.
Document
Reference
HOMM, NBM
3.8
(ACTUAL)
4.2
3.8
(ACTUAL)
(PLAN)
35
45.6
(ACTUAL)
(PLAN)
19.3
(PLAN)
15
15.6
(PLAN)
(PLAN)
35
35
35
18
40
40
20
15
15
19
12
15
4.3
4.2
2.8
35
3.8
4.2
2.8
35
3.8
4.2
2.8
35
28.9 47.45 55
22
23
15
19.96 21.4 14.22 16
39
30
40
40
40
39.85
SEP
40
28
2.5
4.2
2.8
35
38
19
18
15
19
16
15
19
14
15
19
19
15
19
19
15
17.40
40
24
DEC
19
14
15
64.77
40
24
JAN
19
10
15
8.50
40
24
FEB
19
12
15
16.50
40
24
MAR
Form No.:
TQM/DM/KPI/005
Rev.: 03
Eff. Dt.: 01/12/13
5.3
4.2
4.2
35
3.5
4.2
5.6
35
4.0
4.2
7.0
35
3.5
4.2
4.1
35
4.0
4.2
2.8
35
3.2
4.2
2.8
35
3.8
4.2
7.0
35
3.5
4.2
1.4
35
45.89 41.32 50.1 35.67 36.98 45.088 63.95 58.63
19
15
15
18.32
40
24
OCT NOV
14 15.67 19.09 14.2
40
40
Overall APR MAY JUN JUL AUG
(ACTUAL)
(ACTUAL)
(PLAN)
(ACTUAL)
Manager Mech, NBM
Key Performance Indicator (KPI) Tracker
Watanabe Analysis of PCI Gate Valve Changing Failure in H Blast Furnace

Standard followed but
not adequate
Difficult to follow
Standard not
followed
Not trained
Data not proper for

analysis
Missed to follow
Poor skill
Careless-ness
CM standardised
CMNM3
CM Not standardised
CMNE2
Poor design change or

wrong specs
Implementation
not correct
Repetitive OR
chronic
Poor spare
quality
Poor skill
Waiting for
investment approval
Failure
Solution
known
Waiting
for Shut-down
Design change
not required
Waiting for
spares
CMNT1
Design change
required
Knowledge gap
Solution not known
Poor
skill
Data not proper for

analysis
Design
weakness
New
OR
sporadic
TBM Not followed
Spare not available
TBM skill not OK
Waiting for shutdown
TBM schedule not OK
Missed to follow
Not included in TBM
Careles-ness
Poor
TBM
Failure
Poor JH
The cumulative picture of all failures in H BF during Apr'13 to Oct'13 using Watanabe model is as under which
clearly shows the area to focus on.
not adequate
Difficult to follow
Standard not
followed
Not trained
CM standardised
CMNM3
CM Not standardised
Data not proper for
analysis
Missed to follow
Poor skill
Careless-ness
CMNE2
Implementation
not correct
Repetitive OR
chronic

wrong specs
10
Poor spare
quality
Poor skill
1
1
Waiting for
investment approval
12
Failure
Solution
known
CMNT1
Waiting
for Shut-down
Waiting for
spares
Knowledge gap
Solution not known
Poor
skill
New
OR
sporadic
Design
weakness
Data not proper for

analysis
TBM Not followed
Spare not available
TBM skill not OK
TBM schedule not OK
Missed to follow
Not included in TBM
Careles-ness
Poor
TBM
Poor JH
166
Design change
not required
Design change
required
Where (Eqpt) CC#1 Mould cool

Emg mot. valve
Downtime 2 heats
Shift C
Name: Mukesh Kumar

Sign: _ _ _ _ _ _ _ _ _
Date:16-02-2012
Root cause failure analysis (RCFA) sheet

Form No.: TQM/DM/RCFA/013
Rev: 01
Eff. Date: 01.01.2014
167
Daily Management in Services
3.3 Daily Management in Services

The departments performing service functions should also identify appropriate key performance indicators
(KPIs) from the Roles and ObjectivesandProcess Flow Chart/Management System Chart of the activities
being performed by them. The key performance indicators desired by their customers, must form part of the
identified KPIs for monitoring under daily management. These KPIs should be monitored at appropriate
frequencies and suitable corrective and preventive actions should be taken for any deviation/variance against
plan so that the abnormalities do not recur.
The service functions should follow the flow chart shown in the Fig3. 25 for implementing Daily Management:
Setting The Objective
Identify Critical KPI
Design the control
system for KPI
Revise standard
procedures & target/
limits
Implement as per
designed control system
Analyze & take

recurrence preventive
action
Observe & note the
reasons for abnormality
Yes
Check for
abnormality
No
Immediate remedy
Review
Review/Update FMEA/ Control Plan/SOP based on customer feedback/Internal Problems etc.

Assess KPI against 2X2 matris on process stability-Product conformity & Initiate ASPIRE
Projects on Non conformance
Chief
Head
Sr. Manager/Manager
Asst. Mgr./Sup/Sr. Associate
Fig 3.25 Daily Management System for service function
These steps have been explained in details below:

Table 3.7 Tools & Objectives used at various steps
Objective
Setting
Objectives &
Identify KPIs for
Daily
Management
Design the
control systems
for KPIs
Step
Description
Tools
Format No.
P1
P1.1 Identification of roles & objective

P1.2 Identification of customer
requirement
P1.3 Identification ofIn-Process KPIs
1.1 R & O
1.2 MOU
1.3 MSC, KPI drill
Down
TQM/DM/R&O/001
TQM/DM/MOU/009
TQM/DM/MOU/010
TQM/DM/MSC/006
P2
P3
P1.4 Decide KPIs on basis of stepP1

P2.1 Formation/revision of SOP for
identified KPIs
P4
P2.2 Develop a system for checking

KPIs
2.1 SOP/
Decision Tree
2.2 KPI tracker
TQM/DM/KPI/005
169
168
Objective
Step
Description
Tools
Implement as
per designed
Control system
D1
D2

D3.2 Monitor as per KPI Tracker
Check for
Abnormality &
make correction
and
recurrence
prevention
C1
C2

C4.2 Observe and note the reasons
for abnormalities.
A1
A2
A4.3 Do Immediate correction

A4.4 Analyze and take corrective
&preventive actions
Revise
standards,
targets/ limits
as applicable
A2
Review Daily
Management
System
A3
A5.1 Modify SOPs

A5.2 Revise targets/ limits
A5.3 Provide Training to concerned
persons
Review DM system to understand
systemic problems and take action to
correct them
Format No.
3.2Control chart,
Trendchart,
Traffic light
system etc.
Control chart,
Trend chart,
Traffic light
system etc.
4.3 CAPA
4.4 Abnormality
analysis
Framework
TQM/DM/CAPA/007
TQM/DM/AAF/010
2X2 matrix
The DM system for services function has been explained in Fig 3.25.The various steps of DM implementation
are visualised using a simplified flowchart .It also shows the roles and responsibility depicted in color for each
activity. Each step of Daily Management implementation for the services function has been explained in detail
including the activities and tools to be used in Table 3.7 .The various steps have been divided in PDCA and has
been allocated step number as well, for easy reference.
3.3.1 Setting Objective and identify KPIs for DM
P1.1 Identifying roles and objectives of the department/section
The aim of this exercise is to examine the precise objective of the department/section i.e. what is the
deliverable our customer expects from us and whether we are capable of delivering the required output to
them or not and if not, what are our action plans to improve our capabilities. A format has been developed to
facilitate the identification of roles and objectives as explained in Chapter 2.1.1.
P1.2. Identification of customer requirement through MoU
It is important to identify what are the customers expectations and the department/ section should
continuously evaluate its performance against these expectations. Details of the same has been explained in
Chapter 2.
P1.3. Develop Flow Chart/Management System Charts to identify additional/new key performance
indicators (as relevant)
Preparing a flow chart or a Management System Chart of the department showing the detailed job flow
involving various agencies also helps in identifying the in-process performance indicators of an
activity/process. Identification of these indicators and monitoring them for compliance helps in achieving the
169
desired final outcome of the process. These should be prepared, as relevant, to identify some additional
performance indicators in addition to the KPIs identified from R&O (as explain in step 1.1 above) as per
prescribed format No. TQM/DM/MSC/006. An illustrative example of Management System Chart for
"Information Management System" has been shown in the next page.
The Management System Chart should follow standard diagrams as followed in flow chart preparation (details
explained in 2.1.3.2) and should also include the relevant performance indicators for each step of the activity.
Relevant document (standard procedures, guidelines, plan etc.) relevant to perform the activity should also be
identified and documented in the last column of the chart.
The above example of Management System Chart illustrates the following points:
a.
All activities have been categorized under Plan,Do, Check & Act in the column stage
b.
The names of interfacing departments & involved agencies as relevant to the process in actual process
sequence are written in the horizontal row e.g. Chief's IT, Head IT , customer(internal, external)etc.
c.
Effectiveness, Efficiency and Speed Measure have been identified for the system such as Service Level
Effectiveness, IT Project & Run Cost as a % of total revenue & Time to implement Growth Projects
respectively
d.
The measures / KPI(s) should come from the list of all KPIs mentioned in "Performance Indicator"
column.
e.
Finally, Document Reference (reference of relevant documents corresponding to various steps like
forms/SOP No./Format No. etc) are mentioned in the last column e.g. ITSM Manual etc.
Note: Filled in format of Information Management Services has been attached for ready reference.
KPI Drill Down
Since corporate functions have KPIs where multiple agencies are involved in controlling it therefore KPI
network should be made. Here the KPI tree visualizes the KPIs in a tree or network while the overall KPI
(example DDP will be monitored by a single agency, multiple agency are involved in controlling the same. When
an abnormality occurs the KPI or network tree will help in visualizing where the actual problem is and if needed
cross functional teams will have to work on addressing these abnormalities.
3.3.2 Design the control systems for KPIs
P2.1. Formation /revision of SOP for identified KPIs
Organize Standard for Job
Documents such as Standard Operating Procedures are tools to give the standardized operation
procedure.Details of SOP preparation are explained in chapter 4 .There after necessary training and education
has to be provided to concerned employees.
170
MSC Family: Information Management

Management System Chart for : Information Technology Services
Department : ITS
MSC No.: ITS/GEN-ITM/001
Rev No : 3.0
Prepared by: Sr. Manager IT CQA
Section : Gen
MSC Owner:Chief GIS
Date : 14.08.2012
Approved by : Chief IT-SD
MSC KPIs:
Effectiveness Measure: Service Level Effectiveness
Efficiency Measure: IT Project & Run Cost as a % of total revenue
Form No. TQM/DM/MSC/006

Rev.: 02
Eff Date 01/08/2011
Speed: Time to implement Growth Projects

Stage
Activities
Input
Customers
( Ext / Int **)
Chiefs IT
Project Office /
CIA
Heads IT / IT Mgmnt Team
External
Environment/
Plan
Policy Management
& Strategic Planning
BAC
Performance
Indicator
Frequency
Ref.
Document
Modify ABP
ITS/GEN-ABP/001
Create ITS Business
Objectives &
Long term
4 - Student
Analysis Score
(Effectiveness)
Company
Directional inputs,
/Apex IT Comm.
Monthly
Generate Annual Business

Plan
Voice of
Customer
Quarterly / Monthly Plan
Project Review
N
Requirement >
Y
If Project >
Approval
Study
% Projects with
WARS Score > 84
(Efficiency)
Raise Capital
Scheme
Do
Funds Reqd ?
Y
N
N
CEP Approval
Project Schedule
Compliance
(Speed)
Obtain ITMC, Study

Grp, IMC Approval
Design
Develop
Sign Off
Learnings &
% Customer
Requests
Delivering Value
(Effectiveness)
Internal
Feedback
Business
Relationship
Management
Service Report
Application
Maintenance &
Support
Projects KPI
Compliance
(Effectiveness)
Monthly
Test & Implement
Adhoc
Statutory
Chnages / Audit
Monthly
Requirement Gathering
Do
Monthly
Drop / Hold
Project
Provision
for Fund
ITS/PMS-PRJ/001
ITS/GEN-SCH/001
ITS/MET-PRJ/001
Requests in
Pipeline
N
Y
Project Planning &

Exceution
Monthly
N
Customer
intimation
% Projects with
IRR > 15%
(Efficiency)
A
Submit ABP Items
to CEP for Fund
Service
Monthly
Change
Management
Configuration
Management
Manage Customer
Satisfaction, Service Level
Customer
intimation
% Planned /
Unplanned Jobs
Completed
(Efficiency)
ITS/CMP-PRJ/001
ITS/CMP-PRJ/002
ITS/GEN-DM/001
ITSM/PRC-IM/001
ITSM/PRC-RM/001
ITSM/PRC-SLM/001
ITSM/PRC-BRM/001
ITS/CAN-GEN/001
Monthly
Release Management
Service Delivery
/ Daily Mgmt
Review
Corrective & Preventive

Actions
Abnormalality Analysis
Avg Time Taken

for Minor / Major
Enhancements
(Speed)
Monthly
Need based SOP

Midification
Resolution Process
Incidents
ITS/GEN-TEC/001
ITS/PRC-SCAM/001
ITSM/PRC-CAP/001
ITSM/PRC-BA/001
ISMS/POL-RM/001
Long term
Technological
Direction
% S/w at Current
Levels
(Efficiency)
Technology
Adoption process
Quarterly
Supplier
Management
Addition in
Technology Brick
Technology
Architecture &
Infrastructure
Support
Quarterly
Infrastructure
Challenges &
opportunities
Market
Do
Overall SLA
Compliance
(Efficiency)
System
Capacity
Quarterly
BUdgeting &
Accounting for iT
MR Review
% Infrastructure
at Current Levels
(Efficiency)
Monthly
Manage Service
Continuity & Availability
Seecurity
Information Security
Incident & Problem
Management
Incidents
Overall SLA
Compliance
(Effectiveness )
Quarterly
B
Mid Course Correction
External
Consultants /
IT Mgmt Review
Check
& Act
Review &
Improvement
IT Governance
Achieve ITS
Business
Objectives
Compliance to
Growth and
Globalisation
requirements
(Effectiveness )
Learnings & Sharing
ITS/QM
ITSM/Manual
ISMS/Manual
Quarterly
Quality Complaince
Gap Analysis
Continual
Improvement
IT Project & Run

Cost as a % of
total revenue
(Efficiency)
Quarterly
SOP Modification
Owner :
Chief GIS, Primary Responsibility : Chief IT -SD
Secondary Responsibility: Head IT CQA & BPM
**Customer: Internal - All Departments and Divisions of Tata Steel
External -Tata Steels customers, distributors, retailers, suppliers, and External processing agents
171
LEGEND
Information Flow
Material Flow
P2.2 Develop a system for checking KPIs

Compilation of KPIs in KPI Tracker
The key performance indicators (KPI) as identified from Roles and Objectives and Flow Chart/Management
System Chartsshould be compiled in the standard format of KPI Tracker (TQM/DM/KPI/005). A filled- in format
for a department is attached for ready reference. In order to perform all the jobs of a department in a
standardized way, relevant standard operating procedures/check-sheets etc. should be prepared. These
documents must become a part of the Quality Management System of the department and the KPI Tracker
should also include reference to all standard operating procedures and plans for performing the planned
activities related with any process/performance indicators.
3.3.3 Implement as per designed Control system
D3.2 Monitoring of KPIs as per KPI Tracker
As explained in the KPI tracker, all the KPIs should be monitored as per the specified frequency to confirm
whether they are performing as per the planned / target level. Normally, a time-series trend chart showing the
target and actual levels should be sufficient for this monitoring. However, at some places, drawing control chart
may also be required to monitor the process so as to confirm whether the variations occurring in the process is
due to assignable causes or due to common causes inherent to the process.
As and when any abnormality or deviation happens, this should be captured and documented along with the
reasons for the same. This will help in taking the immediate actions (corrective actions) as well as initiating
preventive actions.
3.3.4 Check for abnormality and make correction or recurrence prevention
An abnormality in a process occurs when there is a special cause of variation and KPI exceeds the control limit
(control chart) or shows trends or mixtures or oscillations or extreme (trend chart).Purpose of daily
management is to eliminate it.
C4.2 Observe and note the reasons for abnormalities. Documenting the abnormalities is very important.
A4.3 Do immediate correction
Immediate action should be taken to prevent non conformity.
A4.4 Analyze and take corrective & preventive actions
As explained earlier, the basic objective of Daily Management is to identify abnormalities / deviations in any
system / process and taking appropriate countermeasures to prevent their recurrence.
Based on analysis Corrective and Preventive Actions (CAPA) sheet should be filled as per the attached format
TQM/DM/CAPA/007. A filled-in copy is also attached for ready reference. This CAPA form should also be
adopted in the prevailing Quality Management System of the department.
172
3.3.5 Revise standards, targets/limits as applicable

A5.1 Modify /update the Standard Operating Procedures for standardized approach
Once corrective and preventive actions have been taken against an abnormality/deviation, these may call for a
change in the Standard Operating Procedures. These should then be done and the changed procedure should
be communicated to all concerned for standardization as per the Quality Management System of the
department. Standard Operating Procedures, thus made or revised, should be created under the prevailing
Quality Management System of the department.
A5.2 Revise targets/Limits:Revise targets or limits as per rules of revision of limits/targets as described in
section 2.2.8.
A5.3 Provide training to required personnel: Provide training to concerned persons, as applicable, for
standardized approach on the revised procedures.
After modification of SOP, concerned persons should be trained on the revised SOP.
3.3.6 Review Daily Management system
A6. Review of the Daily Management system
The DM KPIs should be assessed at a predefined frequency on 2X2 matrix on stability- conformity to evaluate
the effectiveness of implementation &initiate projects for chronic issues.
For the convenience of readers in understanding Daily Management in Service Functions a case study from
Procurement department has been included at the end of this chapter.
Service
Identifying & creating

business value through
information technology
by simplifying business
processes and
studying IT needs,
designing & delivering
cost effective solutions
174
Yes
6. Provide effective IT
Services
a. Avg Customer satisfaction Yes

b. CAPA Taken
c. CAPA Closed
d. A3 Sheets Submitted
5. Deliver new projects within a. New Projects Identified

Yes
budgets(B), on time(T) , and b. New projects Completed
value objectives(O)
Yes
IT Manpower Ratio
4. Optimise Total cost of

manpower
a. Help desk Complaints

Yes
b. Job/Workplan
Compliance
c.Overall SLA Compliance
a. Application Turmoil
Yes
b. Configuration
Management Compliance
d. No of Security Incidents
e. Business Hours Lost
due to Security Incidents
Partnership ratio
1. Logic finalisation for automation Head IT

of KPI
What are the action points for

Responsibility
these concerns?
1. Target setting for IT Manpower

1. Form Taskforce and assign KPI Head IT
2. Visibility of breakup in terms of InhouseOwnership for Target Setting
Vs Outsourced
2. Accuracy and updation of data in
system & system enhancement
1. Manual Reporting
1. Form Taskforce and assign KPI Head IT
2. Breakup of Project Types (New
Ownership for Target Setting (Dec
Projects, SIP, GB, Enhancements < 3
'10)
Months)
2. System enahancement for
1. Variation in performance for CAPA and 1. Form Taskforce and assign KPI Head IT
A3 KPIs across teams
Ownership for Target Setting
2. Analysis and Action for improving
2. Customer survey as per IQMS
Customer satisfaction to be strengthened guideline
3. RCA and completing actions on
customer dissatisfaction
4. Formal feedback to customer
4. June '12
3. June '12
2.June '12
1. May '12
2. July '12
1. July '12
2. May '12
1. May '12
1. Dec'12
1. Aug '12
1. Apr '12
Timeline
Form No : TQM/DM/R&O/001
Rev : 02
1. 25% of teams(EUC,EC, MM-PM,CQA, 1. Deployment of Analysis methods Head IT

OG&F, etc) in ITS contribute to approx. using QC story/Problem solving
80% of helpdesk problems
approach to reduce abnormalities
2. Variability in total number of complaints
1. Target setting for application Turmoil is 1. Form Taskforce and assign KPI Head IT
difficult
Ownership for Target Setting and
2. Uniform Deployment of Configuration deployment
Management in all development platforms
is difficult
1. The indicator is reported manually &

could be error prone
What are the critical concerns ?
Prepared By : Head CQA

Approved by : Chief IT (Service Delivery)
By what indicators do
Is data
you evaluate that the job
available for
of the
the
department/section is
indicators ?
successful or not
Revision No : 4.00
Date : 16.07.2012
2. To provide users with IT

suppport with respect to
problem resolution, changes
and new requirements
Q/S 3. To provide infrastructure
support for meeting
Application and System
performance
P/D 1. IT Function's involvement

with strategic business
initiatives
Production/ What is the role of What is the objective of the job

of Department / Section
Service
Department/Section
Department/Section : Information Technology Services

Men on Roll : 243 (as on 01.07.2012)
175
Revision No : 4.00
Date : 16.06.12
New Projects Identified
Manpower Ratio (Ext:Emp)
Partnership ratio
Business Hours Lost due to

Security Incidents
No of Security Incidents
Application Turmoil
Application Uptime
Overall SLA Compliance
Configuration Management
Compliance
80(+/- 5%)
Job/Workplan Compliance
<1
0.01 % / month
(Hrs)
100,80
99.8(+/- 0.1%)
95(+/- 2%)
Problem solved within SLA
95(+/- 2%)
ITS/DM/020
ITS/DM/021
Monthly
ITS/DM/019
ITS/DM/018
ITS/DM/017
ITS/DM/016
ITS/DM/015
ITS/DM/014
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
ITS/DM/013
ITS/DM/012
Weekly - Teams
Monthly - Dept
Daily
ITS/DM/011
ITS/DM/010
ITS/DM/006
ITS/DM/005
ITS/DM/004
ITS/DM/003
ITS/DM/001
Graph No
Monthly
Quarterly
Daily
10% lower than last

years avg
Help desk Complaints
Monthly
1/Head/Month
A3 Sheets Submitted
Monthly
Monthly
Quarterly
Monitoring
Frequency
1/Team/Month
1/Team/Month
80(+/- 2%)
Plan
(Acceptable
Range)
Prepared By : Smita
Approved by : Vinit Mathur
CAPA Closed
CAPA Taken
Avg Customer satisfaction
From Dr Kanos Questions From Flow Chart/ MSC
Key Performance Indicators
Deliver new projects within

budgets(B), on time(T) , and value
New projects Completed
objectives(O)
Optimise Total cost of manpower
IT Function's involvement with

strategic business initiatives
Infrastructure support for meeting

Application and System
performance
IT suppport with respect to

problem resolution, changes and
new requirements
Provide Effective IT Services
Objectives / Process
S No
Department : Information Technology Services

Section :
Key Performance Trackers
Head IT
Head IT
Head IT
Head IT
Head IT
Head IT
Head IT (EC,EUC)
Head IT
(EC,EUC,Team)
Head IT
Head IT
Head IT
Head IT
Head IT
Head IT
Head IT
Head IT
Resp
ITS/GEN-DM/001
ITS/GEN-DM/001
ITS/GEN-DM/001
ITS/GEN-DM/001
ITS/GEN-DM/001
Document Ref
Rev : 02
Form No : TQM/DM/R&O/005
3.3.7 Case Study: Buffer stock management of Ferro Alloys, Metals and Additives in Procurement department
Step 1:Setting Objectives & Identifying customer facing KPIs
Procurement department has articulated their objectives and identified relevant KPIs through the R&O
document. For Buffer Management Compliance to buffer stock requirement of tested alloys has been
identified as customer facing KPI.
Production / Delivery

of the Job of the
Department /
Section?
To ensure
timely delivery
of
consumables
to customer
By what
indicators, do you
evaluate whether
the job of the
Department /
Section is
successful or not?
Is data
available
for the
indicator
s?
1. Compliance to
buffer stock
requirement of
tested ferro alloys
2. Delivery
compliance of
Consumables
What are the Critical

Concerns ?
* Frequent variation in
consumption against plan
given by user department
* Delay in delivery by
vendors against scheduled
requirement
* Quality rejections due to
which stock level is affected
* Inadequate storage space to
maintain enough stock of
tested & ok material
What are the action points for

these concerns ?
*Plan from dept. for annual

consumption & tentative
consumption plan for next 3
to 6 months.
*Robust requirement & order
planning
*Effective management of
inventory
*Review & follow up with
suppliers for delivery
Responsibility
Head/CMs
Timelines
Monthly
Step 2: Identification of In-Process KPIs

The customer facing KPIs can only be controlled or the targets for them can be achieved if the in-process KPIs
for that activity has also been identified and controlled. The in-process KPIs are identified through Process Flow
Chart or Management System Chart (MSC) of that process. Procurement department has identified its inprocess KPIs through MSC.
E
L
P
M
SA
Step 3: Preparation of SOP to control the KPI

All the activities involved in Buffer Management are done in a standardized manner which is ensured through
a SOP. This SOP contains specific steps as well as the responsibilities.
176
Step 4: Monitoring of KPIs and Identification of abnormalities

To check that KPIs are under control and there isnt any abnormal thing happening in the process it is important
to have a rationale KPI monitoring system in place. Procurement has established a system which clarifies
responsibility and frequency of monitoring. It has also standardized levels for putting RED, YELLOW, GREEN
and BLUE signals. Based on the signal, system suggests action to the respective KPI owner.
Buffer Management of stock is done as per TOC theory

Stock > 100% Abnormal
Stock > 66.66% < 100% Normal
Stock > 33.33% and < 66.67% Moderate
Stock > 0% and < 33.33% - Low
Stock = 0 - Stock out
177
Step 4: Monitoring KPIs and Identification of abnormalities

Buffer tracker sheet Daily updating system Action proposal
Division: Procurement
MIS for Buffer Managemant of Ferro Alloys , Metals & Other Steel additives (PC/DM/01)
Department/Group: Process Consumables (PC)
Apr-12
Item
Source
Actual
%Variance against
Monthly Plan
Consump till Monthly Plan till
till Date
Date
date
Monthly Consumption Plan
Ferro Silicon - Lumps

Calcined Petroleum Coke
Flourspar
Ferro Aluminium (Lumps)
Ferro Manganese - Medium Carbon
Graphite Coke
Ferro Niobium
Ferro Titanium (Low Aluminium)
Ferro Titanium (65%)
Ferro Vanadium
Ferro Aluminium (Chips)
Silico Manganese - Low Carbon
INDG
IMP+INDG
IMP+INDG
INDG
INDG
IMP
IMP
IMP
IMP
INDG
INDG
INDG
Ferro Phosphorus
Ferro Boron
NITROVAN 12/16
IMP+INDG
INDG
IMP
L C Fe Cr
Calcium Silicide Cored Wire(CASI)
Pure Calcium Wire
Manganese Metal Flakes
Aluminium Cubes
Aluminium Notch Bar
Alumunium Wire,Vertical
Horizontal Aluminium Wire
Copper
Nickel
Des. Compd, Mag97
Graphite Electrode
IMP
INDG
INDG
IMP
INDG
INDG
INDG
INDG
INDG
IMP
IMP
INDG
CGG Zinc
SHG Zinc
HG Zinc
Zinc Alumunium
Zinc Antimony (10 kg Ingot) CGL1
Zinc Antimony (100 kg Ingot) CGL2
IMP
INDG
INDG
INDG
INDG
INDG
LD1
500
475
150
5
30
125
5
0
0
5
5
135
15
LD2
90
100
50
0
250
0
30
45
6
0
20
0
15
LD3
2
2
8
0
5
0
0
0
0
3
0
0
0
0
0
0
50
15
0
0
100
0
0
25
0
20
0
12
12
0
0
2
190
225
275
225
50
15
0
140
40
0
0
0
0
2
7
21
1
0
5
0
0
0
0
CRM
440
400
440
120
4
5
28-Apr-12
Safety Stock
Current Stock
Stock
Position
Current stock Stock At

will last
Tmill
Total
592
577
208
5
285
125
35
45
6
8
25
135
30
Qty (t)
553
539
194
5
266
117
33
42
6
7
23
126
28
Qty (t)
472
468
173
4
333
60
30
23
5
1
16
88
8
28-Apr-12
-15
-13
-11
-14
25
-49
-9
-46
-11
-87
-31
-30
-71
CM
ST
ST
ST
ST
ST
ST
ST
ST
ST
ST
ST
ST
ST
Qty (t)
204
47
243
9
126
53
38
27
8
14
32
215
59
Qty (t)
487
325
320
9
150
276
79
114
12
11
31
91
56
Alarm
Low
Normal
Normal
Normal
Low
Alarm
Low
Moderate
High
High
High
High
Days
10
2
35
54
13
13
32
18
40
53
38
48
59
12
12
0
50
19
197
246
376
225
55
40
0
160
40
11
11
0
47
18
184
230
351
210
51
37
0
149
37
4
5
3
0
7
220
181
245
145
26
6
0
0
0
-64
-55
32043
-100
-63
20
-21
-30
-31
-49
-84
-100
-100
-100
ST
ST
ST
MK
MK
MK
MK
MK
MK
MK
MK
MK
MK
MK
10
12
37
33
7
177
65
91
136
104
81
11
361
147
14
29
0
35
28
339
117
277
189
50
50
10
367
29
Normal
Alarm
High
Normal
Low
Moderate
Moderate
Low
Normal
High
High
High
Normal
High
25
29
111000
20
10
27
8
7
18
57
61
31500
68
111
411
373
411
112
4
5
0
0
0
0
0
0
-100
-100
-100
-100
-100
-100
MK
MK
MK
MK
MK
MK
444
382
441
118
2
9
968
312
343
68
4
5
Alarm
High
High
High
Moderate
High
30
29
30
30
17
54
Associates working sheet

Update sheet fetching data
From all sources
Qty (t)
438
61
40
Qty (t)
1839
914
1043
50
1125
1129
80
160
131
22
82
111
181
585
250
49
612
System generated
action items
Order
Details Action to be taken
Link
Order
Balance
24
40
9
8
0
653
363
643
496
90
0
0
864
234
Link
Order None
Order Followup Delivery & Issue RFQ /New Order
Order None
Order None
Order None
Order Followup Delivery
Order None
Order Followup Delivery & Issue RFQ /New Order
Order None
Order Defer Delivery & Issue RFQ /New Order
Order Defer Delivery
Order Defer Delivery & Issue RFQ /New Order
Details'!A1
Order Float RFQ & Place New Order
Order None
Details'!A1
Order Float RFQ & Place New Order
1919
1
50
150
48
60
Order
Order
Order
Order
Order
Order
Order
Order
Order
Order
Followup Delivery & Issue RFQ /New Order

None
None
Followup Delivery
None
Defer Delivery & Issue RFQ /New Order
Float RFQ & Place New Order
Defer Delivery
Order
Order
Order
Order
Order
Order
None
Defer Delivery
None
Defer Delivery
Step 5: Analysis of abnormalities

After identification of abnormalities they are analysed to identify the root cause and summarized using SOP
based Abnormality Analysis Framework. Based on this summary management level actions are initiated
which addresses issues related to SOP such as SOP adherence or SOP inadequacy.
Abnormality Occurs
11
SOP Followed
SOP Not Followed
People are Trained on

SOP
People are not

trained on SOP
SOP Not
Adequate
SOP
Adequate
1
Lack of process
Knowledge/ Skill in
preparing SOP or
root cause analysis
Look for special

causes for
abnormality
Changed
conditions /
New Reality
SOP Deliberately
not followed
0
Conflict with pursuit & / other
objectives ( eg Efficiency vs
effectiveness )
Take one time

corrective action
Impart Training
0
Difficulty in
following SOP
Improve Process
knowledge/ Skill
enhancement on
preparation of
SOP
Coaching people to
pursue the right objective
Revise SOP
178
Forgot /
Missed to
follow SOP
Use Fool
Proofing
Step 6: Taking corrective and preventive action to prevent recurrence

After analyzing the abnormalities corrective and preventive actions are taken to prevent recurrence. The
analysis and recommended actions are documented in CAPA sheets.
Step 7: Revisions of SOPs and limits

SOPs are revised and all concerned are trained on the revised SOPs.
179
Annexure I
Visual Management
Annexure I : Visual Management
A Visually Managed Workplace is

l
A
work environment that is self-ordering, self-explaining, self-regulating, and self-improving
l
Where
l
Visual
what is supposed to happen does happen, on time, every time, day or night
Management is managing a visual workplace.
The visual workplace or Visual Management should make certain things obvious to anyone:
l
How
work flows through the process
l
What
is required and how to operate the process
l
What
was planned versus what was achieved
l
Any
constraints or process anomalies

The famous industrialist Robert Owen introduced the idea of a "silent
monitor. This was to encourage people working in the mills.
The monitor was a small, wooden block which hung next to each person's
machine. The colour facing out showed how well things were going.
As Robert Owen walked through the mills he could immediately see the
issue areas on the shop floor, without talking to anyone
Introduction
The concept of visual communication dates back to the dawn of history. Roman legions used color-coded
banners to communicate orders across a vast and noisy battlefield. For centuries, ships at sea have employed
signal flags to communicate under similarly challenging conditions. Much more recently, the idea of visual
management became a core tool of the Toyota Production System, in the form of andon boards and visual
kanbans. Toyota and other Japanese firms subsequently adapted visual tools to the office workspace through
the use of obeya rooms and boards (which are closely analogous to the war rooms used by major project
teams for many decades. In each instance, the use of colors, graphics, and symbology provides clear and
unambiguous information that can be understood in a heartbeat.
In the organisational world, Visual Management is a management system that attempts to improve
organisational performance through connecting and aligning organisational vision, core values, goals and
culture with other management systems, work processes, workplace elements, and stakeholders, by means of
stimuli, which directly address one or more of the five human senses (sight, hearing, feeling, smell and taste.
These stimuli communicate quality information (necessary, relevant, correct, immediate, easy-to-understand
and stimulating), which helps people make sense of the organisational context at a glance by merely looking
around. It is a management approach that utilises either one or more of information giving, signalling, limiting
or guaranteeing (mistake-proofing/ poka-yoke) visual devices to communicate with doers, so that places
become self-explanatory, self-ordering, self-regulating and self-improving.
A motorway analogy can be used to understand the concept a little better. On a motorway, traffic lanes are
designated and separated from each other by painted lines and these lines even manage drivers passing each
other. Rumble strips alert drivers against possible dangers by causing tactile vibrations and audible rumblings.
180
Speed bumps are carefully integrated on and are successful in limiting speed. Traffic policemen can be easily
recognised at a glance by their distinctive uniforms, badges, the livery used to signal the presence of their cars
and drivers are directed to their destinations by some information giving traffic signals and signs. A motorway is
visually structured, so that as a place, it highly manages itself. This is specifically what Visual Management tries
to do in a construction context.
Why Visual Management?
To get the answer, this is what needs to be done:
a. Have a walk through your workplace.
b. Stand for a moment and look over your area.
c. Is it obvious what is going on?
d. If you were a stranger, could you work out what is happening, and how well things are going?
e. If there a lot of clutter?
f.
Is there little useful up to date information displayed in an eye catching interesting ,memorable way.
g. Is there good signage. Is it obvious where things should go?

If you cannot answer "yes" to all of these questions then it is time to get started in creating a visual
workplace
How does visual management improve efficiency?
In any process, information is critical it allows people to know where they are, where they are going and if
problems are occurring that could be prevented. No one would consider driving a car without a dashboard, and
few would operate a machine that wasn't equipped with the appropriate indicator lights, panel meters and LCD
touchscreens.
However, like a car's dashboard, panel meters and touchscreens are only for a single operator. While both are
forms of visual management, they lack some of the phenomenon that occurs by having the information publicly
available. By having key performance indicators on display, the operators know what their performance is, but
more importantly, they know that everyone else knows what their performance is. This allows the operator(s)
to take pride of ownership in their contribution to the company. It also provides actionable information to
supervisors, allowing them to determine, in real time, areas that are in need of improvement. Andon
messages communicate process problems across a facility ensure that everyone is aware of a given issue,
drastically reducing downtime.
Seeing as a Group
Production status
Inventory levels
Knowing as a Group
Acting as a Group
Consensus on
rules and objective
Involvement in
improvement
activities
Delivery
commitments
Goals and schedules
Management rules
Fig.I.1 The Visual Management Triangle

181
Functions of Visual Management

The functions identified from different resources and various research work are illustrated in Table I.1
Table I.1: The Functions of Visual Management
Function
Transparency
Discipline
Continuous
Improvement
Job Facilitation
On-the-Job Training
Creating Shared
Ownership
Management by
Facts
Simplification
Unification
Definition
The ability of a production process (or its parts) to
communicate with people
Making a habit of properly maintaining correct procedures
An organisation-wide process of focused and sustained
incremental innovation.
Conscious attempt to physically and/or mentally ease
people?s efforts on routine, already known tasks by
offering various visual aids.
Learning from experience or integrating working with
learning.
A feeling of possessiveness and being psychologically tied to
an object
Use of facts and data based on statistics
Constant efforts on monitoring, processing, visualizing and
distributing system wide information for individuals and
teams
Partly removing the four main boundaries (vertical,
horizontal, external and geographic) and creating empathy
within an organisation through effective information
sharing
Alternative Practice
Information held in peoples minds and on
the shelves.
Warning, scolding, inflicting punishments,
dismissing etc.
Static organisations or big improvement
leaps through considerable investment.
Expecting people to perform well at their
jobs without providing them any aids.
Conventional training practices or offering
no training.
Management dictation for change efforts,
vision and culture creation.
Management by subjective judgement or
vague terms.
Expecting people to monitor, process and
understand the complex system wide
information on their own.
Fragmentation or this is not my job
behaviour
Transparency
Transparency can be defined as the ability of a production process (or its parts) to communicate with people
This is achieved by making the main process flows visible and comprehensible from start to finish, through
organisational and physical means, measurements, and public display of information Transparency facilitates
management-by-sight, which requires understanding of the workplace at a glance by the superior. Therefore,
transparency serves information for both the manager and the worker.
Discipline
Visual Management reflects people's adherence to the expectations of processes by transforming the abstract
concept of discipline into directly observable concrete practices. Discipline can be defined as making a habit of
properly maintaining correct procedures. Anyone, even a newly hired, inexperienced employee, should be
able to distinguish between normal and abnormal conditions at a glance and start taking the correct steps,
developing a intuitive, habitual correctness, without being dependent on another entity. By visually opening
and regularly updating the individual/team performance results of a work station through making them
available to everyone, management not only reflects an organisational reality, but also conveys some deeper
messages to people: we watch your efforts on the issues that we value regularly and we are aware of your
actual performances. These two messages put a subtle pressure, which, in most cases, leads to improving poor
performances, trying harder than usual or sustaining the desired behaviour.
Continuous Improvement
Visual Management serves as a base for continuous improvement and perhaps more importantly stimulates
employee involvement to manage and improve quality. High bureaucracy in organisations brings (especially in
182
repetitive tasks- e.g. mass production assembly) detailed rules, manuals and standards, distinct hierarchical
levels, substantial staff, and positively discipline, efficiency and timeliness. Yet it may cause (If coercive),
rigidity/ less innovation, alienation/ low employee involvement, and low commitment. Visual Management
makes organisational listening visual with high ability to respond to people's ideas. Thus, Visual Management
influences not only adherence to the organisational standards through discipline, it also helps people observe
the deviations from the standards easily (visibility transparency). The standards are improved with
modifications and some altered standards are created as an outcome.
In summary, visual tools are employed to see the problem (through transparency and discipline), to
communicate suggestions (e.g. the idea board) , to understand and apply basic problem solving techniques
(e.g. the seven basic tools for problem solving), to communicate the problem solving process and results to
other people and to praise the involvement effort (e.g. the superstar boards).
Job Facilitation
Job facilitation can be defined as a conscious attempt to physically and/or mentally ease peoples efforts on
routine, already known tasks by offering various visual aids. Visual Management facilitates routine job tasks for
people by offering a quick, correct and holistic understanding of their job requirements. When the amount of
information required to complete a task pushes the capacity of working memory, it must be made available in
the physical world through visual displays. If done correctly, visual communication through visual aids can
eliminate many of the structural drawbacks that linguistic communication may possess. Answering, reminding,
warning, summarising, or in other words, job facilitating visual aids are one of the essential parts of Visual
Management.
Techniques used in visual management
The techniques used to create a visually managed workplace fall into a number of categories:
The workplace itself:
l
Signs
l
Marked floor areas/hatching
l
Direction of process flow shown on floor or wall
l
Shadow boards to visibly store items frequently needed
l
Identified equipment & locations including files, processing status, etc
Visual information
l
Process documentation
l
Procedures
- can be in the form of a one-point-lesson (all you need to know on one page) or exemplars
e.g. a form filled in showing the likely problem areas
l
Skill & training boards to indicate competence development needs across the team
Visual production control

l
Visual process indicators (Jobs in progress, productivity, output, lead time, etc)
l
Maximum work-in-progress levels show to prevent over-production
183
l
Production status boards
l
Kanban visual signals
Automation
l
The machinery automatically stops when there is a problem and attracts attention
Visual performance measurement

l
Quality charts
l
Performance charts (dashboard metrics based on KPI's)
l
Status of the organisation
Visual safety management

l
Safety warnings
l
Precaution information
Practicing Visual Management

a)
Visualising KPI Performance: Embedding KPIs in organizations through visualization and communication
of KPIs results is the key to maximizing their value added. The most important aspect of communicating
KPI results is their visual representation. This is important both in terms of optimizing the layout of the
data representation and the presence of visual displays in the working environment. The range of media
is diverse today like posters, whiteboards, banners, LED and LCD monitors which can be combined to
bring results to life across the organization. KPI results should not be restricted to paper reports and
computer screens anymore.
One of the main goals of KPI visualization is to support decision making. When information is presented
in a visual format, it allows users to more quickly perceive patterns or allowing users to draw valuable
conclusions more intuitively, holistically and rapidly. Customized information relating to the KPIs can be
integrated from various sections into a unified display for faster response.
Colour signals, are used to visualize the plan versus actuals during review. Red signals visualize that
immediate action is necessary, while yellow is used to express that close attention is needed. Green is
used when the relationship between current and target measures are satisfying. This allows the decisionmaker to focus on the red areas. A general convention being used is if KPIs are meeting the target level
than a green colour is used. If the KPI lies between 90% -100% of the target, than a yellow colour is used.
Below than 90%, a red colour is generally used. If the department is using any other convention, then it
should be mentioned. Responsibility should be assigned for regular updating of data along with source.
This responsibility may be rotated week wise or month wise, so that everyone can be involved.
b)
Designing Visual Board (knowing and seeing as a group)

The primary goal of a visual board is to provide a snapshot of the status of the important KPIs that is
intuitively understandable to both the team members and upper management. For this tool to be useful
as more than a wall-mounted status report, however, interactivity is essential. This tool should be used
for engagement, commitment, and real-time issue resolution.
184
The first step in designing a dashboard is to understand

what key performance indicators (KPI) users are
responsible for and which KPIs they wish to manage.
Defining the correct KPIs specific to the intended user is
one of the most important design steps, as it sets the
foundation and context for the information that will be
subsequently visualized within the dashboard.
Location is arbitrary, but sufficient space must be
available for the team to hold their stand-up meetings.
Fig. I.2 Example Visual Display
Don't let the lack of physical space hold you back from
implementing this tool. Visual Workflow Management is a human engineering tool: It depends on the
physical interaction of the team with the board to achieve its maximum benefit. Use physical project
boards whenever possible, and only resort to virtual solutions when logistics or other issues cannot be
resolved in any other way.
l
Objective of visual display board should be very clear and well defined:
l
To keep the boards live, it is important that it is used for reviews, communication etc.
l
The
boards should be kept at strategic location where employees are comfortable and can relax.
This place can also be used for SGA team meeting.
l
The
basic idea is to display selected and relevant information on the boards and avoid information
overload. For deciding what to put on the board the following matrix can be used.
Item for Display
For Section
For Department
General Trend of Important

KPIs
Existing Employee/New Joiners/

Operators
Operators
Operators
Operators
Operators
SGA/TPM KPI
Change
Message
Personal
Frequency of updation
Target Audience
For Section
For Department
Monthly
Weakly
Daily
Shift
Fig. I.3 Guideline fro Visual Display
185
c) Stand-up meetings (Acting as a group)

The most important attribute of a successful stand-up coordination
meeting is brevity. The purpose of this meeting is not to deep-dive into
technical details. It is intended to answer three specific questions:
a) what has the team accomplished since the last meeting,
b) what actions must be completed by the next meeting, and
c) What issues or obstacles might prevent the team from achieving
those goals? It is found that fifteen to twenty minutes is an
Fig. I.4 Stand-up meetings
optimal duration. Keeping your stand-up meetings brief is vital to
imparting a sense of urgency to your team, and given the fact that participants are actually standing,
fifteen to twenty minutes is about the limit of people's comfort. Maintaining this discipline can be a
challenge, given the tendency of engineers to go off on tangents. You must stand your ground: If you
allow these meetings to be open-ended, you risk alienating the attendees and wrongly using this highly
beneficial tool.
Barriers to good Visual Management
Visual Management is often an area that people shy away from- Why?
a) It is very simple in concept but often difficult to execute well
b) It takes effort and discipline
c) It takes consistency
d) It takes pride and passion
e) It takes professionalism
f)
It takes everyone to get involved in maintaining the momentum
Conclusion
Visual management is the process of displaying critical information so that anyone entering a work place, even
those who are unfamiliar with the detail of the processes, can very rapidly see what is going on, understand it
and see what is under control and what isn't. Essentially, the current status of the operation can be assessed, at
a glance. On the factory floor, visual management can take shape in the form of key performance indicators
that relate to production quantity, speed and quality, as well as machine uptime and downtime. Values such as
Count, Good Count and Bad Count, Shift Totals, Reject Ratio and Rate communicate a process' or an operator's
performance. In keeping with visual management's requirement that the information can be seen at a glance,
the information is shown on large displays that can be seen from a distance and by more personnel than just the
machine operator.
186
Annexure II
Adjusted Process
Annexure II :Adjusted Process
Introduction
There is a big difference in these two types of manufacturing processes. Machining process has fixed target
value and the objective of process control is to carry out machining highly accurately with very little variation.
On the other hand, objective of process control in processing is enhancement in yield and purity. Further, in
machining it is comparatively easy to control material characteristics. On the other hand, in processing
environmental factors where control of temperature etc. is difficult cannot be ignored and process average
drifts. For instance, gap from the target value must be adjusted based on feedback control. Cost of process
adjustment is high in machining and low in processing.
In case of steel industry, material is very heterogeneous and process is high temperature. There are a lot of
adjustments required at various stages of the process. For any process, there are two categories of process
variable:
a) monitor able variables (KPIs which are monitored but no direct control on it)
b) controllable variables (KPIs which are monitored and can be controlled)
To carry out effective adjustments, relationship between controllable and monitorable KPIs should be
understood. Mangers should look at the controllable & monitorable variable together to understand whether
adjustments are being done well or not. CQA should identify the areas where adjustment process is required
and how many types of adjustments are done to get desired output.
What is Adjusted Process?
In order to obtain a consistent output from a process which is subjected to dynamic behavior (Non-normal
input sources of variations or inherent trending due to material consumption rolls, tool wear), process
parameters are adjusted according to certain standards to achieve the desired output. The development of
these standards of adjustments to achieve the desired effect is called Adjusted process.
Trended and regularly adjusted processes are common in manufacturing industries. Adjustments are done in
two cases
a)
Need to counter the erratic behaviour of input parameters by use of adjustment in the process
parameters.
b)
Due to high temperature processes tool wear, degradation of rolls/ equipment takes place to counter
which adjustment is done.
The development of these standards of adjustments to achieve the desired effect is called Adjusted process.
Caution:
l
Be careful of not mixing adjustment with maladjustment
l
First
follow the normal SOP & if the results not achieved then use adjustment standard (feed
forward and feedback system).
187
The objective of the adjusted process is to understand the mechanism of the adjustment being done,
standardize it and monitor the performance of the adjustment process. The steps of the adjustment process
can be summarized as below:
Step 1: Understand the process mechanism, what happens why and when (study the output parameter).
Step 2: Identify the Monitorable & controllable parameters where frequent adjustments are done.
Suggest how to measure the adjustment being done
For any process, there are two categories of process variable:
Monitorable variables (Observe)
Controllable variables (take action based on monitorable variable)
To carry out effective adjustments, relationship between controllable and monitorable KPIs should be
understood.
First of all, determine all the existing process variables (with the existing process knowledge) which would
impact the process output.
Inputs
Process
Output
X1
P1
Y1
X2
P2
Y2
..
..
..
Xn
Po
Ym
Y = fn (X, P) to find the co-relation DOE/ regression could be used

Step 3: Understand the current situation: Understand the C&E relationship between controllable &
monitorable KPIs.
Step 4: Revisit the SOP: How to adjust precisely, when to adjust and when not to. Develop new/ Improve existing
standard based on the above correlation of controllable and Monitorable factors.
Step 5: Monitoring the process to identify abnormality - how to know whether the adjustment process is
working well or not?
The above steps have been illustrated with an example of ballpoint manufacturing unit:
Step 1- Understand the process mechanism, what happens why and when-(study the output parameter) The
production process of ballpoint pen tips involves a process
of making a hole in a minute metallic rod, and the process is
controlled by checking the ink dispense quantity.
Previously, the data of the first few samples of the day were
compared against given standard values, and ink dispense
quantity was controlled by necessary adjustments. While
the process capability was sufficient to meet the external
specifications, the process required numerous adjustment
works and was unstable.
Process control parameter: Checking the ink dispense quantity.
188
Fig II.1 Performance of the Adjusted Process
Monitoring & Plotting of Data: The data of the first few samples of the day were compared against given
standard values. Ink dispense quantity was accordingly controlled by necessary adjustments.
Over the whole period, several adjustments were done on site, which, however, were found not to function
effectively. While the process capability was sufficient to meet the external specifications, the process required
numerous adjustment works and was unstable as depicted in Fig II.1.
Step 2: Identify the Monitorable & controllable parameters where frequent adjustments are done.
Monitorable: Ink release
Controllable: ink viscosity, temperature
Step 3: Understand the C&E relationship between controllable
& monitorable KPIs
To assess the situation following study was done:
a) Tips produced during the period with little ink release,
b) Tips produced during the period with much ink
release and
c)
Tips produced during the period with medium ink
release.
Fig II.2 Results of investigation of influence of

environmental factors
The poor repeatability was considered to be attributable to the difference in test environment due to seasonal
factors: the second test was performed in March while the samples had been produced in June.
A two way factorial experiment was performed to investigate the relation. between test environment and the
conversion of ink dispense quantity
Table II.1Factors and levels chosen
for investigation of influence of
environmental factors
Fig II.3 Results of investigation of

influence of environmental factors
The conversion of ink dispense quantity decreased at an ambient temperature of 20C.Conversion of ink
dispense quantity did not simply rise with the increasing temperature, hence other related factors were
examined further.
Finding Other related factor: The quality of paper used for the writing test(moisture percentage of the quality
paper).
As shown in Figure, the multiple correlation coefficient between water vapor pressure and moisture
percentage of quality paper was 0.902 and suggested a correlation between the two factors.
The regression equation for moisture percentage
Y=- 12.2+3.60X- 0.020 X2
189
Relationship between moisture percentage and conversion of ink dispense quantity were collected .
The regression equation obtained from these data was:
Fig II.4 (a) Relationship between environmental

water vapour pressure and moisture percentage of
quality paper
Fig II.4 (b): Relationship between moisture

percentage of quality paper and conversion of ink
dispense quantity
Step 4: Revisit the SOP: How to adjust precisely, when to adjust and when not to.
The procedure for the carrying the regular test and reporting of the data was revisited
As per the ISO Standards, the moisture percentage at 23 C and at a humidity of 50% (water vapour pressure
9.90 mmHg) was taken as the standard moisture percentage.
The conversion of ink dispenses quantity and moisture percentages of the paper at a regular test were
determined. The conversion of ink dispense quantity under the condition of standard moisture percentage
Fig II.5 Conversion of ink dispense quantity
Step 5: Monitoring the process to identify abnormality -how to know whether the adjustment process is
working well or not.
The control chart of converted data shows that the process is
almost always under control, except in cases where out-ofcontrol states are clearly recognized.
As a result, adjustment works of machines that had been
performed formerly were observed no more. In other words,
the true state of the processing machines became visible and
it became possible to conduct a process control in the true
meaning of the word.
190
Fig II.6 Conversion of ink dispense quantity
Case Study on Weight tolerance in 8.0mm TMT Rebars Adjustment for Inherent trending process
Department
: Wire Rod Mill
Product
: TMT Re-bars of size 8 to 12 mm diameter
Product output Characteristic : % Wt. Tolerance

Process type
: Dynamic
Type of Dynamicity
: Inherent Trending Process
Why is adjustment done?

During rolling, there is a continuous wear of grooves in the roll as the hot bar is always in contact with the groove
profile. This will result in gradual increase in the groove size which in turn results in excess flow of material. If
this is not controlled by periodic adjustments, it will result in product not meeting the desired results. Fig II.7
describes the trends of process with and without adjustment.
Adjustments
done
Trending due to deterioration
Adjustment process to control

Fig II.7
Step 1: Understand the process mechanism, what happens why and when-(study the output
parameter).
% Wt. Tolerance
Weight tolerance of past data (Sep'09) as measured in the samples cut from the coils and plotted in the control
charts ( UCL- -0.6% LCL - -1.8%) shows many data points outside control limits (Refer Fig II.8).
Fig II.8 Run chart of % Weight Tolerance

191
Conformity: Process is not capable as 5.7% of data points were found outside specification limits. The Cpk value
was 0.885
Variable%Wt.Tolerance
Mean: -1.3806
LSL
Normal: Cp=1.428 Cpk=.8843 Cpl=.8843 Cpu=1.971
55
USL
50
45
40
35
30
ycneuqerF
25
20
15
10
5
0
-2.6
-2.4
-2.2
-2.0
-1.8
-1.6
-1.4
-1.2
-1.0
-0.8
-0.6
-0.4
-0.2
0.0
0.2
Fig. II.9 shows base line Cpk value
To achieve a consistent negative weight tolerance along the length and thereby aiming stable (0% outliers) and
confirmed output (Cpk value >=1.33 from 0.93) through standardization of adjustment process.
As rolling process exhibits inherent trending due to deterioration of rolls over a period of time, operator
need to consider the rate of deterioration before carrying out adjustments.
In order to determine the rate of deterioration effect on % Wt. tolerance, a trial was carried out for a period of
10 hours where in no adjustments were done in the Pre
Finishing mill (stand 14 & 15) and Finishing Mill (16 &
23). Which showed that weight tolerance has a strong
positive correlation (0.97) with rolling tonnage . 1)
Under trial conditions, the mill was operated without
any adjustments for 8 hours and samples for weight
tolerance were collected every 20 coils.
The result showed trending of weight tolerance (0.15%
per hour), with a tendency to move towards heavier side
It was inferred from the trial that quantified periodic
adjustments are required to maintain the weight tolerance within limits.
Fig. II.10
The rate of deterioration of %weight tolerance against tonnage rolled was found out to be 0.1% for every 45
coils or 69 Mt on an average.
Step 2: Identify the Monitorable & controllable parameters where frequent adjustments are done
The prevailing adjustment process was based on the feedback of the output (%weight tolerance) as measured
in the lab. Actions were taken as per existing SOP depending on the %Weight tolerance value.
In order to identify the gaps in the current system, data was collected for one campaign to establish the
relationship between the adjustment done for and its effect. Table No 2 shows to similar adjustments in Pre
finishing mill (#14 & 15) and in NTM (#16, #22, #23) to their effect on output (% Wt. tolerance).
It was found that in the process of adjustments, for same actions taken the effect achieved in terms of weight
tolerance % was different. As observed the other factors (LRH & TRH), impacting the weight tolerance was not
considered while adjusting the process parameters.
192
In order to bring clarity of adjustment process, brain storming with all operators was done and all factors which
could effect the output were listed (Refer Annexure). They were further categorized into controllable,
monitorable and know factors. Based on the understanding of the factors, a management system chart for
adjustment process was developed (Refer Annexure).
Step 3: Understand the current situation: Understand the C&E relationship between controllable &
monitorable KPIs.
A statistical study of relationship of controllable factors such as billet temperature, Stand7 stock weight, Stand
14,15,16,23 stock weight (output of pre finishing mill) and Prefinishing mill looper correction with the effect i.e.
% weight tolerance was carried out through correlation analysis depicted in table 3.
Table II.2
Variable
Std#7 weight (Kg/mtr)

Billet temp (oC)
%Looper correction
%Wt. Tolerance
Correlations (TMT data-17.04.2010) Marked correlations

Std#7
weight
(Kg/mtr)
1
-0.18
-0.2
0.22
-0.3
-0.3
-0.17
-0.19
Std#14 Std#15
Std#16
Std#23
weight weight #Billet % Looper weight
weight
% Wt.
g/mtr) (Kg/mtr) temp correction (Kg/mtr) (Kg/mtr) Tolerance
-0.18
-0.2
0.22
-0.3
-0.3
-0.17
-0.19
1
-0.24 -0.16
0.08
0.03
-0.21
0.65
-0.24
1
0.05
-0.16
-0.23
0.34
0.71
-0.16
0.05
1
-0.12
0.08
-0.18
-0.03
0.08
-0.16 -0.12
1
-0.12
-0.21
0.06
0.03
-0.23
0.08
-0.12
1
-0.08
0.67
-0.21
0.34 -0.18
-0.21
-0.08
1
0.64
0.65
0.71 -0.03
-0.06
0.67
0.64
1
Determining the level of adjustments (Where & How Much to adjust):

a) A DOE was planned with Adjustment levels at stands 15, 16 and 23 as input variables and Weight tolerance
& Longitudinal rib height (LRH) as output variables.
b) Controlled experiments with involvement of managers, supervisors and front-line operators were
conducted to establish the relation between input and output variables.
The following Regression equations were derived from the experiments:
Y1 = 0.007+0.872 X1+0.054 X2+0.012 X3; Y1 = Change in Wt. tolerance;
2
Adj. R = 0.94
Z1 = - 0.005+0.058 X1 + 0.004 X2-0.010 X3; Z1 = Change in LRH;
Adj. R2 = 0.68
X1, X2 & X3 are adjustments at stands 15, 16 and 23
From the analysis it was found out that, controllable factors like 14,15,16 & 23 stock weight have a significant
correlation with output (%Wt. tolerance).
a)
Controlled experiments with involvement of managers, supervisors and front-line operators were
conducted with adjustments at stand 15, 16 and 23 as input variables and LRH and Weight tolerance as
output variables.
193
b)
Regression analysis of the output of the experiments gave adjusted R-square value of 0.94 for Wt tolerance
and 0.68 for LRH, with following regression equation
Y1 = 0.007+0.872 X1+0.054 X2+0.012 X3
Z1 = - 0.005+0.058 X1 + 0.004 X2-0.010 X3
Where, Y1 =Change in weight tolerance, Z1 = Change in LRH, X1, X2, X3 =Changes in the roll gap of stands 15, 16
and 23 respectively
Fig. 10 gives the plot of the predicted versus actual values obtained from the experiments.
Fig. II.11
In view of the high R-square values and good fit between the predicted and actual values of weight tolerance
and LRH, it was decided to use the regression equations for defining the adjustment actions.
Step 4: Revisit the SOP: How to adjust precisely, when to adjust and when not to.
a)
A new SOP was developed, incorporating these significant controllable factors and their corresponding
adjustments (through process knowledge). The regression equations were used to develop a lookup
table, which was incorporated in a new SOP to give the operator a set of adjustment actions. A part of the
lookup table is shown in the table given below:
Table II.3 Look up Table for Adjustment of Weight Tolerance
Required Variation
Action Variation in Height

(-Close,+Open)
Required Variation
Action Variation in Height

(-Close,+Open)
Variatio
Variation
n in LRH
in wt tol
15 Stand 16 Stand 23 Stand

(No of (No of (No of
Rnd)
Div)
Div)
Variatio
Variation
n in LRH
in wt tol
15 Stand 16 Stand 23 Stand

(No of
(No of
(No of
Rnd)
Div)
Div)
-1.48
-1.46
-1.43
-1.41
-1.38
-1.36
-1.34
-1.26
-0.04
-0.06
-0.08
-0.10
-0.12
-0.14
-0.16
-0.03
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-1.00
-0.75
-10.00
-10.00
-10.00
-10.00
-10.00
-10.00
-10.00
-10.00
-6.00
-4.00
-2.00
0.00
2.00
4.00
6.00
-6.00
-0.50
-0.49
-0.48
-0.48
-0.46
-0.46
-0.45
-0.45
194
0.02
-0.08
-0.04
0.01
-0.10
-0.06
-0.01
0.03
-0.50
0.00
-0.25
-0.50
0.00
-0.25
-0.50
-0.75
0.00
-10.00
-5.00
0.00
-10.00
-5.00
0.00
5.00
-6.00
4.00
0.00
-4.00
6.00
2.00
-2.00
-6.00
b)
As the interpretation of look up table was found difficult by the operator, an Excel based program utilizing
last feedback of weight tolerance and LRH as user inputs was developed. It helped the operator to quickly
arrive at the level of adjustments. Trigger points for adjustments were incorporated in the Excel program.
If the measured weight tolerance falls within the trigger limits, the program would advise the operator
not to carry out any adjustments
c)
Finishing Mill (NTM) Entry stock monitoring was started through control charts. It was incorporated in
the SOP and the above adjustments through Excel program are done only after ensuring that it is within
control limits
Step 5: Monitoring the process to identify abnormalities -how to know whether the adjustment process is
working well or not?
Status of Residual Control Chart for Weight tolerance
Need for fine tuning of the SOP for adjustment is determined by monitoring the difference between the
predicted and actual results through residual control chart. In order to reduce the variability caused by use of
different roll materials (having differing wear characteristics) in the intermediate mill), actions are ongoing to
determine tonnage based roll gap adjustment (to culminate in sloping control charts) to maintain the output
bar dimension at each stand.
195
Annexure III
Change Management
Annexure III : Change Management
What is Change Management?

Change Management is strategic approach to restore process stability or avoid process fluctuations when
sudden disturbance occurs or is detected in input, output or process.
Change Management also supports improvement oriented changes in the processes in order to meet present
and / or future targets. It provides faster solution a necessity in process industry
Why Change Management is required?
While Daily management is being practiced, there may be sudden disturbances which are unpredicted due to
unforeseen input or process variations. The actions required to bring back the operations to normal may be
beyond the current SOP. The Change Management procedure helps to restore the process when such
disturbances occur. The events that result in a sudden change may be categorized as below
Mode
Intentional
Production
rate
Reduction
in Si & S
defects
Coal &
Coke rate.
Introduce
pellets.
Unintentional
Order in process
flow
Frequency
New situation
Old (occurred
in past)
Input
Raw material
quality
fluctuation.
Delay /
interruption
in raw
material
supply
Change
management
to be done
Change in
process
parameters
SOP to be
made/modified
SOP available
Raw
material
quality
fluctuation.
Confidence
level High
Delay /
interruption
in raw
material
supply.
No
Process
parameter
Output
K -value
fluctuation.
Production
rate
Poor wind
acceptance
Reduction
of Si & S
defects
Yes
Proceed with
daily
management
Fig. III.1 Categorisation of Changes/Likely Changes
Under the category 'mode' the changes could be either intentional or unintentional. Examples of Intentional
changes are in 'Production rate', Reduction in 'Si & S defects', 'Coal & Coke rate', 'Introduction of pellets' etc.
The examples of unintentional changes are 'Raw Material, quality fluctuation', 'Delay / interruption in raw
material supply', 'Change in process parameters' etc.
Under 'frequency', the changes can be categorized either as 'new situation' which has not taken place before or
as 'old' which has occurred earlier also. Under the new situation the 'Change Management' needs to be
initiated and subsequently either a new SOP should be developed or the existing SOP needs to be modified.
When the changes occurred are old, (occurred earlier also) the SOP developed should be followed and actions
should be implemented to address the 'change' and verify the actions written in SOP. Subsequently this activity
of change management should be transformed into 'Daily Management' as the steps in SOP is verified.
196
The changes (disturbances) may occur in 'input sources' or in 'process parameters' or in 'output characteristics'.
Fluctuation in raw material is an example of changes in inputs. In operation of Blast Furnace, the 'permeability
(k-value)' in the furnace is an example of 'process parameters' which indicates the degree of wind acceptance.
The 'Production rate', '%Si', '%S' etc are the examples of output parameters.
Change Management Process
The Change Mangement model developed at Tata Steel is shown below.:
Fig. III.2 Change Management Modal
Effects
With the implementation Change Management at Blast Furnaces following effects were achieved
1.
A standardized process has been developed to act under sudden disturbances to be known as 'Change
Management
2.
Minimizes loss in terms of production, quality and damage of equipment.
3.
Decision for actions are taken by a group of experts which increase the probability of success.
4.
Creates Empowerment of the front line employee The SOP's developed helps decision making at their
level.
Results
Some of the results achieved in different blast furnaces by implementing change management are shown in
Table III.1 . 'Cycle Numbers' indicate the sequence of implementation of Change Management.
197
Table III.1
Department
Example of Change
Management Implementation
Main Effects of CM implementation

(Reduced Quality Defects)
C Blast
Furnace
Reduced Sinter% in the burden
Cycle 1: 3 torpedo dumped, Si Defects 54.5%,

Cycle 2: No torpedo dumped, Silicon defects29%
H Blast
Furnace
Power Failure at HBF
Cycle1: 72 Hrs Shut down,34 tuyres filled with slag

Cycle 2: 8 hrs Shutdown, 6 Blowpipes partially filled with
slag
G Blast
Furnace
PCI Stoppage at G Blast Furnace
Cycle 1: Sulphur defects 28.8%,Silicon defects 2.43%

Cycle 2: Sulphur Defects 9.37%, Silicon defects 0%
Case Study on 'PCI Stoppage at G - Blast furnace

Step 1: Identification of Change
th
On 15 May 2010, due to unavailability of nitrogen, PCI supply to G Blast Furnace was stopped forcing the
furnace to go for al 'all-coke' operation as shown below in Fig III.3
Fig. III.3
As mentioned earlier, any Change Management situation can be categorized in the following matrix as shown in
Fig III.4.
Step 2: Formation of expert team
Fig. III.4
An expert team was formed which include following members

1. Head operations
198
2. Senior Manger Operations

3. Senior Manager Technology
Step-3 : Analysis of situation
The situation was analyzed by the expert team and following impact were found in 'No coal situation' as shown
figure 3.
Impact of No Coal Situation:
Coal will have to be replaced by coke. Due to higher ash content, fuel rate would increase.
Increase in ash input will lead to decrease in slag basicity. To maintain the Slag basicity sinter rate must be
increased.
Increased coke rate will require lesser center coke addition.
To maintain Top Gas Temperature oxygen enrichment will have to be reduced and wind volume will have to
be increased.
Production rate will reduce - casting rate should be low.
Step 4: Action Plan

After analyzing the situation following actions were initiated by Process Expert Team
Table III.2
Type of charge
Action Taken
Reason
Burden Distribution
Center coke changed

from 26% to 19%
Compensate for decrease in

one/coke ratio at the center
(Theoretical analysis
Burden Distribution
4% increase in sinter
Increased fuel rate by
20 Kg8thm
Control Slag chemistry.

Compensate for higher
ash content in coke
Blowing Parameters
Oxygen enrichment reduced

to 3%
Wind volume increased
Maintain TGT>90degC
(Statistical analysis)
Casting Practices
Drill diameter reduced from

57 to 54 mm
Reduce casting rate (JDI)
Step 5: Implementation cycle #1

As can be seen from figure 4, an effort to increase the oxygen enrichment in order to increase production rate
led to increase in 'K'- value. Production rate then had to be further reduced. So it was necessary to determine
optimum oxygen enrichment % during such situation.
199
Fig. III.5
To decide optimum oxygen enrichment level in no coal situation, data analysis was done. It was then decided to
go for O2 enrichment of 3% and aim production 4800-5000 t/d in 'no coal situation'.
Step 6: Implementation Cycle # 2
th
PCI stoppage was occurred once again on 5 June'10. This time as decided, oxygen enrichment % was slowly
decreased to 3 - 3.5 %, aiming production rate of 5000 tons.
200
Fig. III.6
No Coal
3-3.5%
6500 Tons/day
5000 Tons/day
6-6.5%
Results:
Sulphur defect % = 9.37%
Silicon defect % = 0%
Step 7: Standarisation: Preparation of SOP
Based on learning from the above a Standard Operating Procedure was made which will be used for such
situations to restore the furnace operation. This SOP also to be used to train the new operators who we will be
working in similar situations.
201

Table III.3
Section /
Steps
1
2
Burden
changes
1
Blowing
parameter
2
1
3
4
Action
Change to NO COAL BURDEN with
20kg/thm increase in fuel rate from
the present value. Surface coke: 19T
and Center coke: 3T
Modify singer % in the burden to
adjust the slag chemistry, with an
aim of no flux addition.
Modify the burden distribution by
taking out one outermost ring and
place/add it in any vacant or inner
rings.
Modify Nut coke to 2/3 of the
running quantity
Increase the wind volume to
maximum in steps of 2K/hr i.e. 240
KNm3/hr and decrease in steps of
1% / hr oxygen to 3-3.5%
Adjust humidity to maintain a top
gas H2 @-4%
Continue the present operation
philosophy till the NO COAL
BURDEN reaches belly
Maintain the FCS level ~240T
As the NO COAL BURDEN reaches

belly stop injection
Put the Mixing tee flow SP = 0
Why?
No nitrogen supply to
support PCL
Precaution
1. Aim HM Si 1%
Reduction in slag load
1. Maintain
Al2O3>22% & MgO6.5, 95< Slag B2<1.05
1. Maintain Ckt#3
temperature >60OC
All coke operation will

reduce wall activity.
Coke residence time

high in furnace, so
need more bigger coke
Reduced/No PCI will
require less O2 and
also to promote TGT
>90OC
To accommodate the
vessel Coal after
recirculation
To maintain the
thermal balance
To minimize N2
consumption
Coal
injection
5
Close the inlet valve of grinding /

utility (PRS beside DCC#2)
Empty out the two injection vessels
into the FCS
To minimize N2
consumption
To minimize N2
consumption through
fludising
Close the fludising system of the

injection vessels
Casting should be opened with one

step lower drill bit dia
To minimize N2
consumption through
fludising
Production rate low
Cast house
Practice
202
1. Sandwich charging
of nut coke
Maintain stock line, if
need be decrease
O2%
1. Monitor HMT
1. Ensure that all
lances are in purge
mode before this
operation
Stop all mill operation
Ensure the
recirculation is
complete and
recirculation line is
empty
1. HM Si need to be
assessed
Annexure IV
Frequently Asked Questions (FAQ)
Annexure IV : Frequency Asked Question (FAQ)
1. How do improvements brought in under Policy Management differ from those under Daily management?
What is the relationship between Daily Management and Policy Management activities?
While both Policy Management and Daily Management are TQM vehicles to achieve the organization's
business objectives and strategies through PDCA rotations, their mode of achievement of this improvement is
different. Daily management brings in improvement in the organization's process by following
standardization activities and pursuing continuous improvement activities by identifying
deviations/abnormalities, and taking appropriate measures for prevention of recurrence. Policy Management,
at the same time, brings in breakthrough improvements in realizing the company's objectives and strategies
through planned activities to achieve the target set by the management, and these improvements are normally
done beyond the existing framework.
As shown in Fig. 1.10 (in chapter 1. 4) Policy Management activities include the rotation of Plan-DO-Check-Act
(PDCA) to achieve improvement on priority items. Once these activities have been taken and the performance
improved to the desired level, these activities need to be standardized to ensure that they are followed
consistently in future to sustain performance. These activities then become a part of Daily Management
activities in terms of Standardize-Do Check-Act (SDCA). Similarly, if some chronic problems are identified in
Daily Management that need improvement on a priority basis (may need a QC story approach of problem
solving), they become part of Policy management activities. This cycle of Policy Management and Daily
Management continues until the company achieves its long-term and short-term objectives.
Based on the above idea, you can differentiate between Daily Management and Policy Management. However,
the boundary can never be clear as the activities often overlap. The distinction should be made by the person in
charge. How to differentiate between the two after the distinction is more important than just categorizing the
activities.
2. Is it appropriate if a boss and his subordinates have exactly the same control points?
No. In a hierarchical organization structure, a boss and his subordinates should not have exactly the same
control point for Daily Management activities. Every control point should have one owner who is responsible
for Monitoring and controlling the same. While a boss can have a control point for the overall effectiveness of a
department, his subordinates (who can be the sectional heads)should have the control points which are
cascaded from the overall departmental level to level of their respective sections. The basic objective of
identifying a control point under Daily Management is to monitor them to ensure that it remains stable over a
period of time as per its goals. In case an abnormality or deviation occurs, the person in charge should be able to
take a countermeasure to prevent its recurrence (a PDCA rotation). Accordingly, employees at different levels in
an organization should have control points for which they are responsible, where they can initiate
countermeasures in cases of deviations/abnormalities. If in a department, both the boss and his subordinate
have exactly the same control point, the responsibility of its monitoring and taking corrective and preventive
actions for cases of abnormality cannot be clearly defined.
3. How do we differentiate between correction, corrective action and preventive action?
Correction: action to eliminate a detected abnormality.
Corrective action: action to eliminate the cause of a detected abnormality.
Preventive action: action to eliminate the cause of a potential abnormality or other undesirable situation.
203
Note: Corrective action is taken to prevent recurrence whereas preventive action is taken to prevent
occurrence.
The basic idea has been described above. However, this differentiation depends on your position and view
position, which are relative.
Let us take the instance of oil leaking from a joint part. For a frontline operator, just wipe can be correction;
tighten up the leaked part can be corrective action; and tighten up the other parts can be preventive action.
However, engineers and managers need to understand much wider viewpoints. For them, Wiping out and
tightening up of the leaked part can both be corrections. Finding out the reason for loosening of the leaked
part and taking the necessary actions so that the part does not get loosened again can be the corrective action.
Horizontal deployment of this learning to all other applicable places can be preventive action.
4. How to identify an abnormality in a Trend Chart?
The objective of Daily management is identification of abnormalities. For monitoring a control point against a
set target/plan, we can use a Trend chart or a Run chart monitoring the actual performance against the target to
identify abnormalities as and when they occur, so that we can take countermeasures. For details see chapter 2, .
5. How are the control methods identified for monitoring an indicator? When and under what condition,
should we use control chart?
Once we decide on a control point or KPI for Daily Management activities, there may be various methods for
monitoring such as control chart, Run/Trend chart, check sheets etc., depending on our objective and type of
data. Check sheets are used to ensure that all the activities/jobs are performed as per standard operating
procedures to achieve desired outcomes. For monitoring a control point against a set target/plan, we can use a
trend chart or a Run chart monitoring the actual performance against the target to identify abnormalities as
and when they occur, so that we can take countermeasures. In manufacturing areas where both common and
special causes of variation are present in a process and differentiating between them is necessary to take
countermeasures to prevent recurrence, control charts are used to achieve a state of stable process.
6. What is the difference between Control Chart for analysis and Control Chart for control? How and
when are these used?
For the data of any parameter collected for a given period, the control chart for analysis is drawn with the
control limits calculated based on the same data period. This chart is used to analyze and understand the
pattern and performance of the parameter during this period and to identify improvement opportunities for
the process. This type of Control Chart is used in problem solving activities.
When data for the past period is collected and used to decide the control limits, and these limits are extended
for future management and control of the process, the control chart becomes the Control Chart for control.
This chart is used in Daily Management by the operators to identify abnormalities (special causes of variation as
compared to the control limits) so that appropriate countermeasures can be taken to prevent recurrence. The
details are given in Chapter 2.
7. What is the difference between Stability and Capability of a process? How are these used to effect
improvement?
Stability (also known as 'within control') of a process means the process is performing well. It means the process
is under the influence of common causes of variation only, and no special (assignable) causes of variations are
present. The primary objective of Daily management is to make all our processes stable. As and when we come
204

present. The primary objective of Daily management is to make all our processes stable. As and when we come
across occurrences of any special cause while monitoring the process, it should be captured, analyzed and the
necessary corrections and corrective actions should be taken to prevent recurrence of the same. This results in
improvements in the process, and they remain stable.
Capability of a process indicates how the process outputs are able to meet the customer's
requirements(specifications). In case a few parts do not meet customer specifications, these defectives can
then be systematically reduced by initiating improvement actions so that the process only produces products
acceptable to the customer's requirements and become capable.
8. What should be the parameter to monitor under Daily Management for an automated process which has
in-built abnormality identification and correction system?
In automated processes which have an in-built abnormality identification and correction system, a
conventional control chart to monitor process performance may not be useful. In these cases, the aim of Daily
Management activities should be to ensure that when an abnormality happens, the process has behaved in an
expected manner in correcting these abnormalities. Therefore, when the automated process did not respond
in making self-correction in an abnormality occurrence, the abnormality should be captured right away and
investigated to find the causes and take the necessary countermeasures for recurrence prevention.
9. How do Daily Management activities help a process which is inherently unstable?
Some processes are always under the influence of causes which make them inherently unstable( rolling
processes where natural wear and tear happens in rolls etc.) and a conventional control chart (with fixed
control limits) may not be useful for these processes to manage the product performance. For these cases,
inherent changes should be studied in depth to understand the pattern it follows and the special Control Charts
should be arrived at (with variable control limits in line with the expected process pattern) to manage them.
10. What is the role of Daily Management activities in a process which needs frequent adjustments due to
frequent and large variation in the raw materials/inputs?
A number of processes (mainly in process industries) very frequently use raw materials which come with large
and unpredictable variations. These raw materials cannot be controlled or segregated, and must be used by the
process to produce the product. Control of these processes using conventional DM control chart may not be
useful in these cases. The aim of Daily Management activities in such cases should be efficient and timely
change control. Standard operating procedures (SOP) should be prepared on specific actions that should be
taken in the process(adjustment of process parameters) depending on the variations in the raw material
inputs, so that the final output (product)coming out of the process is as per the expected/planned
requirements. Preparation of adequate SOPs, training of people managing these processes and systems to
ensure that actions are being taken by them as per the SOPs should be the objective of Daily Management
activities in such processes.
11. How can Daily management help in smooth change management?
Some of the processes need change management. According to the changing environment, change in
requirements from the next processes, change in raw materials(inputs), or change in the resources of your own
process, you need to change the process itself. In such a case, you should manage the process to change itself
similar to the process management type. Then you should aim to reduce, for example, set up time, increase
first time right ratio, increase start stable ratio and so on.
205
12. There are lots of external factors which impact the KPIs? There are lots of interdependencies and hence
many abnormalities occur due to external reasons/reasons beyond our control.
In the processes which have dependency on other processes, communication system is very important. The
communication should flow to the next processes immediately so that adjustment can happen. Also each
member of the chain has to identify their own responsibility, instead of finding faults in the previous process.
Identify the KPI which are control by the section (action can be taken by the section if an abnormality happens)
KPI Monitoring at B
Stack in C
Shortage
by A
Stack in C
Shortage
by A
Yes, every abnormality in caused from the others!

We are perfect
Graph of Excuse
14. What are controllable & monitorable factors?

The factors impacting a process can be classified into four types:
l
Controllable factors (orange) (Were action can be taken by the section it self)
l
Monitorable Factors (light yellow) (Which is monitored by the section but action can not be taken)
l
Known
factors (Light blue) (All factor that are that a known can not be taken but not necessarily can be
measured or monitored)
l
Total factors (Known + Unknown)
Maintaining and sustaining controllable and monitorable parameters is primary objective of Daily
Management. Controllable factors should have SOPs which the operators should adhere to. Expanding the
monitorable and controllable parameters to explore known factors will be a case of improvement.
206
15. What is difference between abnormality & Non-conformity?

Abnormality means a condition which is not normal, deviation from the usual condition. Abnormality in a
process occurs due to special causes of variation: Purpose of Daily Management is to eliminate it. Control
chart is the tool used to identify abnormality.
Non-conformity is non-fulfillment of a specified requirement (customer requirement or next process
requirement).
While the abnormality is judged against the control limits of the process, non-confomity is judged by the
specification limit given by the customer or the next process.
16. If the KPI is lower the better then what should be LCL and if KPI is higher the better then what should be
UCL?
Control limits depict the normal operating band for the process. You may desire to operate in a higher band, for
that improvement in the process will be required. Control limits are always two sided and calculated from the
past data of the process.
17. If we can assign cause to a particular point which is out of control limit then shall we consider the KPI as
unstable?
The stability of the KPI cannot be judged by just one particular point. However in a case there is only one
abnormality for which the reason is known and action taken to eliminate the cause so that we are sure that the
abnormality will not reoccur in future because of the same reason, we may consider the KPI to be stable.
18. If Cpk is >1.33 can we say we have stable DM system?
CPk of the process to understand the process capability with respect to customer specification i.e the capability
of the process to meet customer requirement whereas stability is against the control limits. Hence we cannot
deduce form the CPk whether the process is stable or not.
19. Do we need to take cognizance of customer requirement while deciding control limit?
Control limits is Voice of the process. It is calculated from the actual process data. It is in no way connected to
customer requirement.
20. For small improvements, Daily management can be applied as a tool?
In Daily Management, we aim for sustenance and not for improvement. However in the process of identifying
abnormalities and taking action, some incremental improvements can be achieved as a by-product.
21. Why there is so much stress on SOPs?
Standardization is the base of Daily Management. Following the SOPs should be made mandatory for the
operators. If any problem occurs due to strictly following SOP, then revise the SOPs. SOPs should include
operator's experience. In case he wants to digress from SOPs, the decision should be process experts and not
operators. If not following SOP is accepted way of operating, it will be difficult to identify the causes of problem.
Action & theory (SOP and practice) should be completely aligned. Then only you can improve is to
standardizeSDCA cycle will be applicable. Purpose of standardisation is improvement.
207
As said by Mr. Hitoshi Kume, When the same activities are repeated, it is a nuisance, as well as inefficient, to
plan them afresh each time. Daily Management activities typically follow an S-D-C-A (Standardize
DoCheck Act) cycle of improvement, in which the first step is Standardization. It startswith identifying the
job, deciding the best way of doing the job and then standardizing it so that all the persons responsible for the
job do it in the same way. Standardization is necessary to train workers and make it easier for them to do their
jobs without reinventing the wheel every time. It also helps in locking in knowledge, preventing back slide,
ensuring interchangeability, delegating authority, reducing variability, and solving problems (please refer
Annexure for details).
22. Who should drive Daily management?
Daily Management has to be driven by Chiefs. Mentoring and coaching, reviewing are his/her main
responsibility.
23. If USL is lower than UCL then how to identify the abnormality?
The purpose of UCL is to judge abnormality and the purpose of USL is to judge non-conformity. Hence only
control limits is considered while judging abnormality.
24. Who should do abnormality analysis? (Operator or manager)
The operators and front-line employees will monitor the control points and KPIs as per the established system
and identify abnormalities as and when they occur, as well as find out and document the reasons for the same. It
should again be the responsibility of the managers and senior managers to ensure that appropriate corrections
and corrective actions are taken to prevent recurrence of these abnormalities.
25. Do the operators need to make graphs of his respective KPIs?
Making graphs is not mandatory. The objective is to record the data in a document with respect to a plan, which
will be helpful in identifying abnormality.
26. How often should the control limits of a Control Chart be revised?
Refer to Chapter 2
27. Should action be taken for control point near control limits?
Action taken because a control point/KPI is near to control line shall lead to instability and increase variability.
Action should be taken only in case of abnormality.
28. If a parameter is continuously stable should be drop from review list?
In such a case either of the following can be done
a)
Look for the next level of enablers which could be stable performance of KPI.
b)
Increase the frequency of review of the of KPIs in Green Status.
208
Annexure V
Daily Management Formats
Production /
Service
What is the
role of the
department /
section ?
Department/Section
Men on roll
(as on date)
What Is the Objective of

the Job of the
Production (P)
Quality (Q)
Cost (C)
Delivery (D)
Safety (S)
Morale (M)
209
Environment (E)
Timeline
Form No. : TQM/DM/R&O/001

Rev. : 03
Is data
available
What are the
What are the actions points
Responsibility
for the
Critical Concerns ?
for these concerns ?
indicators?
Approved by:
Date :
By what indicators, do you

evaluate whether the job of
the Department / Section is
successful or not?
Prepared by:
Revision No. :
Annexure V : Daily Management Formats
Process No.
Department :
Section :
Process Funtion
Brief Description of
Process
Customer
Rev No.:
Date :
Input Sources of
Variation
Process Flow Chart
Prepared by:
Approved by:
Product (Output)
Characteristics
Form No. : TQM/DM/PFC/002

Rev : 02
210
Process Function
Product (Output)
Characteristics
Requirements
Potential Failure
Mode
Potential Effect(s)
of Failure
Date :
Process Name:
Process No.
Rev No.:
Potential Cause (s) /

Mechanism (s) of Failure
Approved by:
Prepared by:
Current process Controls Detection/Prevention
Form No. : TQM/DM/FMEA/003

Rev. : 02
C
Detectability
(Out of 10)
Department:
Risk Priority
Number (RPN)
AXBXC
B
Occurrence
(Out of 10)
A
Severity
(out of 10)
211
Process
Number
Department:
Process Name:
Process
Description
Machine/
Device
Source
(PFMEA/ R&O/
MoU)
No
Product
(Output)
Characteristics
Rev. No.
Date :
Process
Product / Process
Specification
Prepared by:
Approved by:
Evaluation
Method
Control Plan
Sample
Size
Methods
Freq
Control Method
Responsibility
Document
Reference
Form No. : TQM/DM/CP/004

Rev. : 03
212
Sl. No.
Department :
Section :
Objectives /
Process
from Dr. Kano's Questions
from Flow
Chart/Management System
Chart
Rev No.:
Date .:
Plan (Acceptable range)
Monitoring Frequency
Prepared by:
Approved by:
Key Performance Indicator Tracker
Monitoring Graph/Chart
No.
Responsibility
Document
Reference
Form No.: TQM/DM/KPI/005

Rev.: 02
Eff. Dt.: 01/012/11
213
214
Check
& Act
Do
Plan
Input Data/Document
Stage
Customers
Approved by :
Date
MSC Owner:
Section
Activities
Prepared by :
Rev No:
:
MSC No.:
Department
:
Performance
Indicator
MSC KPIs:
Effectiveness Measure:
Efficiency Measure:
Speed:
Management System Chart
Frequency
Ref. Document
Form No. TQM/DM/MSC/006

Rev.: 02
Eff Date 01/08/2011
NUMBER :
Date of Occurrence
Preventive Action
Eff Date 01/01/2011
215
Corrective/Preventive Action To Be Taken

(PLAN)
Action By
Date :
Compliance Date (Do)
Approved By MR/HOD
Target Date
Tools used (QC Tools, Why- Why Analysis,

Phenomenon Observation, etc.)
Signature:
Name:
Designation :
Date:
Source of identification of potential non conformity/potential non conformity:
Sectional Head
Name & Design:
Sign & Date:
Confirmation of Effects (CHECK) with date:

Performance Indicator Results (Before taking Corrective/preventive actions)
Results (After taking corrective/preventive actions)
Standardization (ACT):
Reference of Procedure/Work Instruction/Decision Tree/Action Standards etc. (New/With Revision No.):
Report of review of the effectiveness with date
Approved by MR/HOD for closing CAPA: Yes/No.
SL. NO.
Conclusion:
Analysis of the problem (Root Cause (s))
Related Key Performance Indicator :
Person(s
)
Assigned
Rev.: 01
Form No. TQM/DM/CAPA/007
Name
Non Conformity/Potential Non Conformity (related to P/Q/C/D/S/M)
Section
Production
Delivery
Design.
Safety
Place of Occurrence Quality
Date
Cost
Morale
Brief Description of Non Conformity:/Abnormality/Deviation/Potential Non Conformity* (use addl. Sheet, if required)
TO BE FILLED BY THE INITIATOR
Corrective Action:
Corrective & Preventive Action
216
Suppliers
Signature
Customers
Signature
Customer's
Remarks :
Service
parameters
Production /Quality Delivery

parameters
Apr
Sl. No
May
MOU
Parameter
Requirement related to Products/Services
Jun
Unit of
Measurement
Jul
Base Level
(Period)
Aug
Sep
April
May
Oct
June
Aug.
Nov
July
Dec
Sept.
Oct.
Nov.
Jan
Actual Performance
Dec.
Feb
Jan.
Mar
Feb.
Mar.
Rev 01
Form # TQM/DM/MOU/009
Supplier Department :- _____________________________________________
Target Level
(Period)
Customer Department :- ____________________________________________
Memorandum of Understanding with Customer

(Financial Year :
)
217
Indicator
Supplier Department:
1. Attitude / Behaviour of Supplier
3. Attitudes to assist in times of urgent requirements
2. Time taken to implement the changes
( A high scale indicates that the level of dis-satisfaction is low)
3. Not trying hard enough
Rating*
3
Form No. TQM / DM / MOU / 010

Rev 00
Signature of the customer:............

Designation:..........
Department:............
Date:................
1. Time taken to accept changes proposed by customers
3. Receptivity to changes proposed by the customer
2. Number of meetings held to listen to customers' views
1. Dis-satisfaction with Products / Services
Customer Relationship 2. Deliberate Avoidance
* Rating Scale
1 Totally dis-satisfied
2 Dis-satisfied
3 No comments
4 No Dis-satisfaction
III.
Service Efficiency
Service Quality
I.
II.
Area of Transaction
Sl.No.
Customer Department:
Qualitative Feedback from Customers

Financial Year
Annexure V : Daily Management Formats :
KPI
218
No
6.2 Revise
SOP
revision ?
5.1 Does it
require SOP
YES
4.1 Look for special causes

for abnormality
3.1 SOP Adequate
6.3 Revise
SOP
5.2 Train the person for

preparing SOP
2.SOP
Available
No
8.1 Revise MSC
YES
No
6.5 Revise SOP

after removing
ambiguity
Continue with the

process
6.6 Revise SOP
5.4 Difficulty in
following SOP
4.4 SOP Deliberately not

followed
5.3b Coaching people to
2.2 SOP Not Followed
6.7 Revise
SOP
5.5 Use Fool

Proofing
4.5 Forgot / Missed to

follow SOP
3.3 People are Trained on SOP
5.3a Conflict with pursuit &

other objectives (eg Efficiency
YES
8.MSC
requires
revision?
6.4 Revise SOP
4.3 Changed
conditions / New
3.2 SOP Not Adequate
4.2 Lack of process

Knowledge/ Skill in
preparing SOP or root
2.1 SOP Followed
Approved by : Chairman,DM apex subcommittee
Date :
1.0. Abnormality Occurs
1.1 PhenomenonObservation
Prepared by : HEAD,DM
Rev no:
Decision of SOPRevision to be taken based on New RPN
6.1 Do correction as
required
Section
Department:
Abnormality Analysis Framework
7.0 Impart
Training on SOP
3.4 People are not
2.3 Make SOP
Form no: TQM/DM/AAF/10

Rev no: 01
Effective date :1/9/2013
219
Designation :
Base level
(Period)
Designation :
Approved by
UOM
Name :
KPI
Name :
Maintenance Department
Means/action
Signature :
Objective
Signature :
Linkage
(with ABP)
Target Level
(Period)
TQM
Vehicle/Methodology
Form No. DM/Maint/COA/001

Rev:00
Effective Date: 01/01/2011
Responsibilty
Operation Department
Review
frequency
Charter of Agreement ( Maintenance and Operation Department)

(Financial Year :
)
220
*CM - Countermeasure1) CMNT - Counter measure not taken
2) CMNE - Counter measure not effective
CAPA Ref. No.:
Responsibility:
Target date:
F
a
il
u
r
e
New
OR
sporadic
Repetitive
OR
chronic
Poor JH
Poor
TBM
Design
weakness
Poor
skill
CMNT1
CMNE2
3) CMNM - Counter measure not maintained
Countermeasures finalised:
What will change?
Data Analysis:
CMNM3
Not
included
in TBM
TBM
schedule
not OK
TBM
skill
not OK
TBM
not
followed
Solution
not
known
Solution
known
Implementation
not correct
Analysis
not
correct
CM Not
standardised
CM
standardised
Date:16-02-2012
Watanabe analysis
Sign: _ _ _ _ _ _ _ _ _
Explore Root cause (Why Why):
Shift
CM* reference Failure Date: _ _ _ _

Failure Time: _ _ _ _ Last Inspection
-14-02-2012
Downtime
Problem description (FM reference): -
Where (Eqpt)
Name:
Root cause failure analysis sheet
Careles-ness
Missed to
follow
Waiting for
shutdown
Spare not
available
Data not
proper for
analysis
Knowledge
gap
Waiting
for
spares
Waiting
for Shutdown
Waiting for
investment
approval
Poor skill
Poor
spare
quality
Design
change
required
Design
change
not required
Carelessness
Poor skill
Poor design
change or
wrong specs
Missed
to follow
Not
trained
Standard
not
followed
Data not
proper for
analysis
Difficult
to follow
Standard
followed but
not adequate
Form No.:
TQM/DM/RCFA/013
Rev: 01
Eff. Date: 01.01.2014
1)
3)
Fail
ure
221
Poor JH
Poor
TBM
Design
weakness
Poor
skill
CMNT1
Not included in TBM
TBM schedule not OK
TBM skill not OK
TBM Not followed
Solution not known
Solution
known
Implementation
not correct
CM Not standardised
CM standardised
Careles-ness
Missed to follow
Spare not available
Data not proper for

analysis
Knowledge gap
Waiting for
spares
Waiting
for Shut-down
Waiting for
investment approval
Poor skill
Poor spare
quality

wrong specs
Poor skill
Data not proper for

analysis
Standard not
followed

not adequate
Design change
required
Design change
not required
Careless-ness
Missed to follow
Not trained
Difficult to follow
Time:_ _ _ _ _ _
Sign: _ _ _ _ _ _ _ _ _
CMNT - Counter measure not taken

2) CMNE - Counter measure not effective
CMNM - Counter measure not maintained
New
OR
sporadic
chronic
Repetitive OR
CMNE2
CMNM3
Department/Section:
Date: _ _ _ _ _ _
Name: _ _ _ _ _ _ _ _ _
Watanabe Analysis Sheet

Form No.:
TQM/DM/WTN/014
Rev: 01
Eff. Date : 01.01.2014
Area
(System)
Equipment
Department:
Area Under Analysis:
Sub Assembly
Component
Issue /
Failure Mode
Effect
Rev No.:
Date :
Cause
Sub Cause 1
Sub Cause 2
Sub Cause 3
Prepared by:
Approved by:
Sub Cause 4
Sub Cause 5
Preventive
action at
present
Equipment Failure Mode and Effect Analysis
Severity
(S)
Occurence Detection
(O)
(D)
Initial RPN
RPN1
(Initial) =
S*O*D
Countermeasure
Form No. : TQM/DM/EFMEA/015

Rev. : 0
Effective Date :01/12/2013
222
Source of
KPI
Category of
KPI
223
UOM
Base Level
Revision No.
Date:
Target
Monitoring
Frequency
Monitoring
Graph/Chart No.
Responsibility
Prepared by:
Approved by:
(E) Document Ref. Can be SOP number of corresponding SOP
(D) Overall value of the KPI must be mentioned in this sheet. Overall value can be sum, average or last value of individual monthly status.
(C) The Reference No. of Objectives/Strategies providing KPIs should also be mentioned in third column as "BO&S ref. no."
(B) Category of KPI are: Production(P), Quality(Q), Cost( C), Delivery (D), Safety(S), Morale(M)
Note: (A) Source of KPI are: R&O, COA, BO&S, MSC
Sl. No.
Section:
Department:
Document
Reference
(PLAN)
(ACTUAL)
(PLAN)
(ACTUAL)
(PLAN)
(ACTUAL)
(PLAN)
(ACTUAL)
(PLAN)
(ACTUAL)
(PLAN)
(ACTUAL)
(PLAN)
(ACTUAL)
Form No.: TQM/DM/KPI/016

Rev.: 03
Effective Date : 01.12.2013
Overall
APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
Value
Key Performance Indicator Tracker (Maintenance)
Calculation of Maintenance Performance KPIs

Calculation Of Maintenance Performance KPIs
1.
Overall Equipment/Plant Effectiveness

The concept of OEE can be understood in simple way with the help of following depiction:
In a systematic way, Overall Equipment/Plant Effectiveness is calculated for an equipment/plant as per the
formulae given below:
OEE/OPE = Availability(A) * Performance Rate(P) * Quality Rate(Q)
While there can be multiple ways to calculate the availability, performance rate and quality rate for a plant,
following process has been standardized in Tata Steel to calculate OEE/OPE (shown with an example).
A:
Calendar (God) Hours
B:
Planned Losses
- 24 * 30
- Shutdown Hours
- 24 Hours (say)
- Set Up Changes
- Roll/Section Change
C:
Unplanned Losses
= 720 Hours
- 106 Hours (say)
- Mechanical Delays
- Electrical Delays
- Operation Delays
- Finishing Delays
- Roll Shop Delays
- Other unplanned etc.
224
D:
Losses beyond Plant's Control
- 20 Hours (say)
- Input Material Delays

(Steel, Hot Metal etc.)
- Power Restrictions
- Gas/Fuel shortage
- No Demand (CSD) etc.
E:
Available Hours
F : Availability =
=
=
A - (B + C)
720 (24+106) = 590 Hours
Calendar Hours Planned Losses Unplanned Losses

-------------------------------------------------------------------------Calendar Hours
720 - 24 - 106
---------------------- =
720
590
----720
81.94 %
G : Operating Efficiency =
Available Hours Losses beyond Plant's control

---------------------------------------------------------------Available Hours
590 - 20
---------------590
=
=
H:
P:
Q:
Rate Efficiency =
Performance Rate
Quality Rate
570
----590
96.61%
Actual Output/Designed Output
=
90 % (say)
Operating Efficiency(G) * Rate Efficiency (H)
96.61 % * 90 %
86.95 %
OK Product Tonnage/Total Input Material
96 % (say)
(Assuming 4 % losses against crop ends/scale/rejections etc.)

Overall Plant/Eqpmt Efficiency = Availability * Performance Rate * Quality Rate
OPE/OEE
F*P*Q
81.94 % * 86.95 % * 96 %
68.40%
225

2. MTTR, MTBF & Availability
Number of Failure
Total Operating Time
MTBF = ------------------------------Number of Repairs
MTBF
Availability = -----------------MTBF + MTTR
Note:
1) The concept of availability in this example is same as the concept used in OEE/OPE example. The way of
writing formula may be different. For reference purpose Availability as defined in this example should be
taken as standard.
2) Availability as defined in this section is actually 'Intrinsic Availability
Example:
500 hours
MTBF = Uptime/Failures = ---------------- = 125 hrs. btw. failures
4 failures
36 hours
MTTR = Repair time/Repairs = ---------------- = 9 hrs. per repair
4 failures
MTBF
125
Availability = ---------------------- = ---------------- X 100 = 93.3 %
MTBF + MTTR
125 + 9
226
BIBLIOGRAPHY
1.
Ando, Yukhiro, Kumar Pankaj (2011), Daily Management the TQM Way: The key to success in Tata Steel,
Productivity &Quality Publishing Private limited, Chennai
2.
Ishikawa, Dr. Kaoru, (2006), Introduction to Quality Control, Productivity Press (India) Pvt. Ltd., Chennai
3.
Ishikawa, Dr. Kaoru, (1982), Guide to Quality Control, Asian Productivity Organization, Tokyo
4.
Kume, Hitoshi, (2006), Statistical Methods for Quality Improvement, Productivity Press (India) Pvt. Ltd.,
Chennai
5.
Swift, J.A, (), Introduction to modern statistical Quality control and Management, St. Lucie Press Delray
Beach, Florida
227
CONFORMITY
STABILITY
2X2 Matrix on stability and conformity
Integrated Improvement framework of Tata Steel
If you want excellence, you must aim at perfection. I know that aiming at perfection has
its drawbacks. It makes you go into detail that you can avoid. It takes a lot of energy out of
you but that's the only way you finally actually achieve excellence. So in that sense, being
finicky is essential. A company, which uses the name Tata, shares a tradition. The symbol
'T' has to be a symbol of quality - J R D Tata
2014 TQM Department, Tata Steel. All rights reserved.

(for internal circulation only)

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Daily

Roles & Objectives

TOTAL QUALITY MANAGEMENT

President TQM & Steel Business

Objective of the Book

1.0 Overview of Total Quality Management

2.0 Important elements of Daily Management Implementation

2.2 Implementating Process Control

2.2.5.4 Procedure for analysis in preparation for Process Control

2.4 Reviewing Daily Management implementation

III Change Management

IV Frequently Asked Questions

V Daily Management Formats

Objective of the book

Objective of the book

Total Quality Management

Overview of Total Quality Management

History of Total Quality Management

1.1 History of Total Quality Management

1.1.1 Quality in Japan

History of Total Quality Management

Quality Inspection Stage

Quality Control Stage

Quality Assurance Stage

Total Quality Management Stage

a) Quality Inspection stage

History of Total Quality Management

d)Total Quality Management Stage

1.1.3 Evolution of TQM at Tata Steel

History of Total Quality Management

Fig 1.1 Aspire Philosophy

Fig 1.2 Integrated Improvement framework of Tata Steel

Total Quality Management at Tata Steel

1.2 Total Quality Management at Tata Steel

Small Group Activities (Quality Control (QC) Circles +TQM Circles)

Total Quality Management at Tata Steel

Fig.1.3 TQM Vehicles: Dr.Kano's Boat Model

(Copyright: Dr. N. Kano)

1.2.1 Policy Management and Daily Management

Fig.1.4 Policy Management & Daily Management

Total Quality Management at Tata Steel

1.2.2 Daily Management- An Introduction

Fig.1.5 (a) Improvement Tools/Initiatives for effective DM

Total Quality Management at Tata Steel

1.2.3 Importance of Daily Management

Consistent and high quality of products with reduction in defects

Better understanding of process capability and process variability

Develop a culture of fact-based continuous improvement

Attitudinal change (Next process is my customer)

Better understanding of cause-effect correlating process with product/service

If Daily Management is poor???

All the efforts, investments should be gone

Total Quality Management at Tata Steel

1.2.4 History of Daily Management Implementation at Tata Steel

Process Standardization (SOPs)

Designing of Control Plan to keep the process stable

Monitoring of KPI as per control plan/ KPI tracker

Taking corrective and preventive action

Total Quality Management at Tata Steel

Focus was on coverage

Focus was on setting

Stability of the Key