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UNIT 1
UNIT I
6
Total Quality Service Management
7
LESSON Aspects of Quality
1
ASPECTS OF QUALITY
CONTENTS
1.0 Aims and Objectives
1.1 Introduction
1.2 Different Perspectives of Quality
1.3 Definition given by the Quality Gurus
1.4 Dimensions of Quality
1.5 Dimensions of Quality for Goods
1.6 Dimensions of Service Quality
1.7 Quality Mission
1.8 Quality Policy
1.8.1 Quality of Services
1.8.2 Customers’ Satisfaction
1.8.3 Preparedness and Satisfaction of Employees
1.8.4 Competence of the Organisation’s Management and Administration
1.9 Objectives of Quality
1.10 Concepts of Quality
1.11 The Need and Importance of Quality
1.12 Evolution of Quality
1.12.1 From Inspection to Total Quality
1.13 Determinants of Quality
1.14 Interpretation and Process of Quality Audit
1.15 Let us Sum up
1.16 Lesson End Activity
1.17 Keywords
1.18 Questions for Discussion
1.19 Suggested Readings
1.17 KEYWORDS
Quality: Defined as “that aspect of things under which they are considered in thinking
or speaking of their nature, condition, or properties”.
Aesthetics: How a product looks, feels, tastes or smells.
Durability: Useful life or life span of the product.
Persuasiveness: Good leaders are able to use their power and communication skills to
good use. They convert their power into influence.
2
BASIC CONCEPTS OF TOTAL QUALITY MANAGEMENT
CONTENTS
2.0 Aims and Objectives
2.1 Introduction
2.2 Characteristics of Good Leaders
2.2.1 Leadership for Quality
2.2.2 Styles of Leadership
2.3 Quality Control
2.4 Costs of Quality
2.5 The Process Model
2.5.1 The PAF Model
2.6 Life Cycle Model
2.7 Economics of Quality
2.7.1 Economic Cost of Quality
2.7.2 Organisations and the Economic Cost of Quality
2.8 Contribution of Quality Gurus
2.8.1 Walter A. Shewhart (1891-1967)
2.8.2 Joseph M. Juran (born in 1904)
2.8.3 Armand V. Feigenbaum
2.8.4 Kaoru Ishikawa (1915-1989)
2.8.5 W. Edwards Deming (1900-1993)
2.8.6 Dr. Genichi Taguchi (born in 1924)
2.9 Statistical Process Control (SPC)
2.9.1 Benefits
2.10 Statistical Quality Control (SQC)
2.10.1 Advantage of Statistical Quality Control
2.11 Company Wide Quality Control (CWQC)
2.12 Total Productive Maintenance (TPM)
2.13 Total Quality Control (TQC)
2.14 Let us Sum up
2.15 Lesson End Activity
2.16 Keywords
2.17 Questions for Discussion
2.18 Suggested Readings
25
2.0 AIMS AND OBJECTIVES Basic Concepts of
Total Quality Management
After studying this lesson, you should be able to:
z Know the basic concepts of TQM
z Understand the quality objectives
z Study the quality process mode
2.1 INTRODUCTION
Leadership is the ability to motivate people to make a total and voluntary commitment
to attain or exceed organizational goals. Leadership is the ability to inspire confidence
and support, with an aim to achieve organizational goals. The concept of leadership
can be defined as the ability of top management to lead the firm in continuously
pursuing long-term overall business success.
Leadership plays a crucial role in creating the goals, values and systems that guide the
pursuit of continuous performance improvement. The European Quality Award and
the Malcolm Baldrige Quality Award recognize this.
Leaders have to address the values, direction, and expectations of all stakeholders.
The leaders need to ensure the creation of strategies, systems, and methods for
achieving excellence.
Prevention cost
The experience gained from the identification and elimination of specific cause of
failure and their costs is utilized to prevent the recurrence of the same or similar
failures in other products or services. The prevention costs of poor quality have been
defined to include the cost of all activities specifically designed for this purpose.
Corrective action that is directed toward elimination of the problem in the future may
be classified as prevention. They are investments made to keep nonconforming
products from occurring and reaching the customer. These could be:
z Quality planning costs – such as salaries of individuals associated with quality
planning and problem-solving teams, the development of new procedures, new
equipment design, and reliability studies.
z Process control costs – which include costs spent on analyzing production
processes and implementing process control plans.
z Information system costs – expended to develop data requirements and
measurements.
z Training and general management costs–including internal and external training
programs, clerical staff expenses, and miscellaneous supplies
z Costs associated with trying to prevent defects and errors in
Training for quality
Educating suppliers
Designing product for quality
Designing production system for quality
Preventive maintenance
Appraisal Costs
Appraisal costs of poor quality have been defined to include all costs incurred in the
planned conduct of product or service appraisals to determine compliance to
requirements. They are associated with efforts to ensure conformance to requirements,
generally through measurement and analysis of data to detect nonconformance. These
are
z Test and inspection costs – associated with incoming materials, WIP, and
finished goods, including equipment costs and salaries.
z Instruments maintenance costs – arising from calibration and repair of measuring
instruments.
z Process measurement and control costs – which involve the time spent by
workers to gather and analyze quality measurements.
z The first responsibility of a quality management system is assurance of the
acceptability of product or service as delivered to customers.
z Repairs and installation of equipment and facilities are done more rationally.
z Human relations are improved.
One major characteristic of Japanese Company-Wide Quality Control is the Quality
Control Circle Movement started in 1962, with the first circle being registered with
the Nippon Telegraph and Telephone Public Corporation. Starting in industry in
Japan, these have now spread to banks and retailing, and been exported world-wide.
Success in the West has not been so extensive as in Japan, however, although even
there have been limitations too. The nature and role of quality circles varies between
companies. In Japan a quality circle is a typically voluntary group of some 5-10
workers from the same workshop, who meet regularly and are led by a foreman,
assistant foreman, work leader or one of the workers. The aims of the quality circle
activities are:
z To contribute to the improvement and development of the enterprise,
z To respect human relations and build a happy workshop offering job satisfaction,
z To deploy human capabilities fully and draw out infinite potential.
These aims are broader than is consistent with a narrow definition of quality as often
used in the West, and Circle activities reflect this. The members of the circle have
mastered statistical quality control and related methods and all utilize them to achieve
significant results in quality improvement, cost reduction, productivity and safety. The
seven tools of quality control are taught to all employees:
z Pareto charts
z Cause and effects diagrams
z Stratification
z Check sheets
z Histograms
z Scatter diagrams
z Shewharts control charts and graphs.
All members of the circle are continuously engaged in self-and-mutual development,
control and improvement whenever possible, the circles implement solutions
themselves, otherwise they put strong pressure on management to introduce them.
Since management is already committed to the circles, it is ready to listen or act.
Circle members receive no direct financial reward for their improvements.
The Japanese experience of quality circles itself provides an insight into the problems
of implementation in the West. Strangely enough, however, many companies in the
West have attempted to minimize or even cover up the Japanese origins, apparently to
avoid cultural rejection on antagonism to "Japanese workaholics" grounds. Even in
Japan many quality circles have collapsed, usually because of managements lack of
interest or excessive intervention. However, many have worked. There are now more
than 10 million circle members there. The benefits are typically seen as being minor
from any one improvement introduced by a quality circle, but that added together they
represent substantial improvements to the company.
Perhaps more importantly, greater worker involvement and motivation is created
through:
z An atmosphere where employees are continuously looking to resolve problems,
42 z Greater commercial awareness
Total Quality Service Management
z A change of shopfloor attitude in aiming forever increasing goals.
Quality circles have been vigorously marketed in the West as a means of improving
quality. There seems to be agreement, however, that they cannot be used naively, and
take careful adoption for use in Western companies. Adoptions have been various and
of varying effectiveness; in some companies circles have been successful, or regarded
as such, in others they have failed. Many commentators, such as Philip Crosby, have
warned against the fashion for quality circles as a cure-all for poor employee
motivation or inadequate quality and productivity in either white-collar areas or on the
shopfloor. The senior American Quality Guru Joseph Juran, in particular, has gone
further, in throwing doubts on their likely effectiveness in the West at all where few
company hierarchies are permitted with executives trained in quality management.
2.9.1 Benefits
z Provides surveillance and feedback for keeping processes in control
z Signals when a problem with the process has occurred
z Detects assignable causes of variation
z Accomplishes process characterization
z Reduces need for inspection
z Monitors process quality
z Provides mechanism to make process changes and track effects of those changes
z Once a process is stable (assignable causes of variation have been eliminated),
provides process capability analysis with comparison to the product tolerance.
Implementation
TPM has five goals:
1. Maximize equipment effectiveness.
2. Develop a system of productive maintenance for the life of the equipment.
3. Involve all departments that plan, design, use, or maintain equipment in
implementing TPM.
4. Actively involve all employees.
5. Promote TPM through motivational management.
TPM identifies the 16 types of waste (Muda) and then works systematically to
eliminate them by making improvements (Kaizen). TPM has 8 pillars of activity, each
being set to achieve a “zero” target. These pillars are:
1. Focused improvement (Kobetsu-Kaizen): for eliminating waste.
2. Autonomous maintenance (Jishu-Hozen): in autonomous maintenance, the
operator is the key player. It involves daily maintenance activities carried out by
the operators themselves that prevent the deterioration of the equipment.
3. Planned maintenance: for achieving zero breakdowns.
4. Education and training: for increasing productivity.
5. Early equipment/product management: to reduce waste occurring during the im-
plementation of a new machine or the production of a new product.
6. Quality maintenance (Hinshitsu-Hozen): This is actually “maintenance for
quality”. It includes the most effective quality tool of TPM: “poka-yoke”, which
aims to achieve zero loss by taking necessary measures to prevent loss.
7. Safety, hygiene, and environment: for achieving zero work-related accidents and
for protecting the environment.
8. Office TPM: for involvement of all parties to TPM since office processes can be
improved in a similar manner as well.
TPM Success Measurement - A set of performance metrics, which is considered to fit
well in a Lean/TPM environment, is Overall Equipment Effectiveness, or OEE.
Check Your Progress 3
Fill in the blanks:
1. ______________________ cost is expended to develop data requirements
and measurements.
2. The Quality Council (QC) is the focal point of the __________________.
3. Leadership in quality can only be accomplished by ongoing improvements
and through the active participation of all ___________________.
4. Quality is in its essence a way of managing the ____________________.
48
Total Quality Service Management 2.13 TOTAL QUALITY CONTROL (TQC)
A system that integrates quality development, maintenance and improvement of the
parts of an organization. It helps a company economically manufacture its product and
deliver its services.
Total Quality Control (TQC) is not a new concept, nor was it invented by the
Japanese. The orginal book entitled 'Total Quality Control' was written by Armand
Feigenbaum, in 1951, where he noted the universal importance of quality to
customers:
"Quality is the basic customer decision factor for an explosively growing number of
products and services today--whether the buyer is a housewife, an industrial
corporation, a government agency, a department store chain or a military defense
program."
As a result, he proposed that quality be move out of the factory floor, where it mostly
lived then, and into the rest of the company. In his words:
"Quality is in its essence a way of managing the organization."
It was thus an extension of Quality Control (QC) to the totality of the whole company.
The term TQC was not, however, a term that sat well with American management, so
some kind soul converted it into TQM, or Total Quality Management. The American
Management described it as:
'A management philosophy embracing all activities through which the needs and
expectations of the customer and the community and the objectives of the
organization are satisfied in the most efficient and cost effective way by maximizing
the potential of all employees in a continuing drive for improvement.'
2.16 KEYWORDS
Total Quality Costs: Total quality costs are the sum of Prevention costs, Appraisal
costs, Failure costs, and Intangible costs.
The Life Cycle Model: In the life cycle model, the costs are grouped under different
phases of the life cycle of the product. Quality costs increase over time.
Quality: Defined as “that aspect of things under which they are considered in thinking 49
Basic Concepts of
or speaking of their nature, condition, or properties”. Total Quality Management
Aesthetics: How a product looks, feels, tastes or smells.
Durability: Useful life or life span of the product.
Persuasiveness: Good leaders are able to use their power and communication skills to
good use. They convert their power into influence.
Statistical Process Control (SPC): The application of Statistical Process Control
(SPC) involves using statistical techniques to measure and analyze the variation in
processes.
Total Quality Control (TQC): A system that integrates quality development,
maintenance and improvement of the parts of an organization. It helps a company
economically manufacture its product and deliver its services.
Statistical Quality Control (SQC): The application of statistical techniques to control
quality. Often used interchangeably with the term “statistical process control,”
although statistical quality control includes acceptance sampling, which statistical
process control does not.
UNIT 1
UNIT II
52
Total Quality Service Management
53
LESSON Total Quality Management
3
TOTAL QUALITY MANAGEMENT
CONTENTS
3.0 Aims and Objectives
3.1 Introduction
3.2 Definition
3.2.1 TQM is composed of three Paradigms
3.2.2 As Defined by the International Organization for Standardization (ISO)
3.2.3 A Comprehensive Definition
3.3 Process Steps in TQM
3.3.1 TQM as a Foundation
3.4 TQM in Manufacturing
3.5 The Principles of TQM
3.6 TQM Framework to Quality Improvement
3.6.1 Leadership
3.6.2 Customer Focus
3.6.3 Teamwork
3.6.4 Measurement
3.6.5 Benchmarking
3.6.6 Continuous Improvement
3.6.7 A Triple Level Hierarchical Organization
3.6.8 Operations on IQ Customer Needs and Metrics
3.7 The Infoqual Methodology
3.7.1 Objective of the Methodology
3.7.2 Methodology's Users and Use Scenarios
3.7.3 Tools
3.8 Let us Sum up
3.9 Lesson End Activity
3.10 Keywords
3.11 Questions for Discussion
3.12 Suggested Readings
3.2 DEFINITION
3.2.1 TQM is composed of Three Paradigms
z Total: Involving the entire organization, supply chain, and/or product life cycle
z Quality: With its usual Definitions, with all its complexities (External Definition)
z Management: The system of managing with steps like Plan, Organize, Control,
Lead, Staff, provisioning and the likes.
Deploy IQ
culture
Figure 3.1: TQM Framework to IQ
3.6.1 Leadership
Concept: management should demonstrate leadership by:
a) recognizing IQ as a strategic issue,
b) Allocating the appropriate resources to IQ improvement- capital, management
attention, vision and priorities.
c) Setting an example as the first to require, use or provide better quality
information. This role is the responsibility of all management levels, from the
company president down to team leaders.
3.6.4 Measurement
IQ metrics are used to translate the information user needs into measurable
specifications. These specifications should be designed into the information solution.
Once the solution is provided, IQ metrics are used to asses the solution's actual
performance against the requirements, and effectively against user needs. Due to the
special importance of this concept to the InfoQual methodology.
3.6.5 Benchmarking
In order to achieve "world class" IQ, it is necessary to explore what IQ levels are
achieved in the "external world". We refer here to other functions in your
organization, other organizations in your industry or even other industries and
professional domains. Benchmarking supports the IQ improvement team in setting
high but realistic targets that energize the process. Benchmarking is also a useful tool
to discover new and practicable metrics and methods to measure IQ.
Need= Accuracy
Translate abstract needs into
TRANSLATE needs
concrete metrics.
Metrics= error rate, precision
SET TARGETS
Determine target values Response Time= 3 hours
values
3.7.3 Tools
The process used in InfoQual is based on the TQM framework to IQ improvement. IQ
needs and metrics are at the centre of the framework. Three tools to manipulate these
objects are integrated into the TQM framework in order to form the methodology.
These tools are QFD, Metrics database and IQ graphical presentation. Table 3.2 maps
these tools onto InfoQual operations. Then, the following sections briefly describe
these tools.
Table 3.2: InfoQual tools and operations
COMMUNICATE
IQ GRAPHICAL
performance and Used throughout the improvement project cycle life
PRESENTATION
targets
3.10 KEYWORDS
Total Quality Management (TQM): is a management approach aimed at satisfying all
customer requirements, needs and expectations using a Continuous Improvement
approach.
Metrics: translate the customer needs into technical characteristics of the desired
information solution.
4
CUSTOMER - SUPPLIER RELATIONSHIP
CONTENTS
4.0 Aims and Objectives
4.1 Introduction
4.2 Important Factors Affecting the Decision to Make or Buy
4.3 Ten Principles to Ensure Quality Products and Services
4.4 Relationship Development
4.4.1 Inspection
4.4.2 Training
4.4.3 Team Approach
4.4.4 Recognition and Reward
4.5 Future Trends in Purchasing and Supply Management
4.6 Quality Function Deployment [QFD]
4.6.1 Metrics Database
4.6.2 IQ Graphical Presentation
4.6.3 Processes must be Managed and Improved
4.6.4 Planning a Change
4.7 Quality Function Development (QFD)
4.7.1 Factors for Successful Implementation of QFD
4.7.2 Steps for Successful Implementation of QFD
4.8 Quality Circles
4.8.1 Key Elements of Quality Circles
4.8.2 Benefits of Quality Circles
4.8.3 Impediments to the Effective Working of Quality Circles
4.8.4 Quality Circles and the Trade Unions
4.8.5 Quality Circles in India
4.8.6 Areas of Success Due to Quality Circle activities in BHEL
4.9 Voice of the Customer
4.10 Team and Motivation in TQM
4.10.1 Groups
4.11 Implementation of TQM
4.11.1 Commitment throughout the Organization
4.12 Barriers to TQM Implementation
4.12.1 Organizational Barriers
4.12.2 Behavioral Barriers
4.13 Let us Sum up
4.14 Lesson End Activity
4.15 Keywords
4.16 Questions for Discussion
4.17 Suggested Readings
66
Total Quality Service Management 4.0 AIMS AND OBJECTIVES
After studying this lesson, you should be able to:
z Explain the Suppliers relationship concept
z Understand need for relationship
z Learn about the concept of quality circles
z Know the implementation and barriers to TQM process.
4.1 INTRODUCTION
Suppliers have strong and important impacts on the products, services work processes
and distribution. Suppliers are at the beginning of the chain of process steps for
product or service. The quality of the raw material will have an impact on the quality
of the end product.
Purchases account for more than 60% costs to most companies and they are the source
of more than 50% of the quality problems. Therefore, it is essential that the delivery
and quality of suppliers be actively managed.
The make or buy decision is one of the fundamental and strategic decisions that the
top management has to take. Theoretically every item currently purchased can be
considered for making and every item that is being made currently can be considered
for purchase from outside.
Make or buy decisions are complex, time consuming and affect many parts of the
organizations. Majority of them are made on the basis of cost, but there are many
non-cost factors that are important.
Make or buy decisions are made by the organizations when
z The organization introduces new products
z There is fluctuation in the demand of its products
z The organization carries out value analysis or cost reduction programme
z There is a deterioration in the quality of the product/material supplied
z The supplier is not keeping his delivery commitments
z There is scarcity of funds for investments in additional plant or equipment.
4.4.2 Training
Training is also imparted to the supplier. This will help him to understand the
requirement of the customer. The training may be provided at the supplier’s place or
at the customer’s place. Such training can improve the quality of the product. Further
it will strengthen relationships between the supplier and customer.
Note that the first requirement has nothing to do with any external consumer groups,
but is rather a purely internal initiative. In fact, this initiative might cause the company
to do things that would conflict with the wants and desires of consumer groups. For
example, in an effort to increase accessory sales, the company might make
modifications on their rifles that require the use of their own proprietary scopes (even
though certain customers may prefer Bushnell or other scope manufacturers’
equipment).
The company’s second business requirement (“Comply with U.S. Federal & State
regulations”) does not reference a consumer of Glasgow’s goods either. However, it
does refer to a customer of sorts who has the ability to impose requirements that can
stop Glasgow from being able to sell their product to other consumer groups. The
following table lists some of the government requirements that Glasgow has to keep in
mind when producing rifles and ammunition for “general civilian” ownership. Since
none of these regulations are any more important (or any less-enforceable) than
another, each of them is granted the same relative weighting.
73
Customer - Supplier Relationship
The third through fifth Business Requirements in the first table are essentially rating
the relative priority of different consumer groups for Glasgow. Imagine that Glasgow
surveys each of the different customer groups and comes back with the following lists
of requirements:
* Correlation to IQ need X
* Benchmarks (values +
(Phase:
context) metric
specificat
ion)
5. Identify the
"Big" problem
Brainstorming
o Checklists
o Pareto
analysis
4.10.1 Groups
In most organizations there are groups. Groups can be divided as under:
1. Strategic focus group/standing committees,
2. Project groups, and
3. Natural work groups.
1. Strategic focus groups and standing committees: These groups represent the
most sensitive and critical situation for facilitation. Strategic focus groups live a
short life, and work on a particular project that has a defined beginning and end.
These groups deal with the implementation of major organizational change, such
as Total Quality, Just in Time, World-class Manufacturing and the like.
2. Project groups: Project groups like strategic focus groups have a short life. They
have a single purpose, such as reduction of set-up time, or process improvements
of certain work operations. They can be called Quality Improvement Teams,
Process Improvement Teams, or Problem Action Teams.
Group members usually come from many functions. Supervisors and line workers
usually make up the group, and higher management often delegates the task o
them. Because the problems they deal with are technical rather than
organizational, this type of group may need subject-matter knowledge in the
processes they are improving
3. Natural work groups: Natural work groups report to the same on a “permanent”
basis. These groups live a long time and have supervisors who are appraisal.
Because of these factors, facilitation provides special opportunities.
Unfortunately, the usual “meeting management” skills of charting, creating an
agenda and keeping the meeting focused on the task are not enough to take
advantage of this situation.
Team building involves assessing of a group’s functioning, feedback of this
assessment to the group and its head, and problem solving by the group on the
issue raised. Team Building is a facilitated process consisting of the following set
of behaviors that helps a group:
Define its goals, roles and relationships;
Provide on-going feedback on its own functioning;
Improve how it works together;
Increase its capability.
Facilitation must define who their customers are, find out their needs, and delight
them. Facilitation is needed because the group needs a neutral third party to assure,
members follow group norms, and to provide impartial feedback on group processes
and management style. Behaviors such as charting, active listening, flowcharting,
problem solving they cannot do themselves. Knowledge of group dynamics,
organizational development and implementation of change.
A team involves the coordinated activities of two or more persons who are organized
cooperatively for the attainment of a recognizable organizational goal(s). TQM
implementation is accomplished through team building and problem solving. The
formation and effective functioning of teams is crucial to successful implementation. 83
Customer - Supplier Relationship
Teams flourish when top management learns to “walk what they talk”.
Team building aims in combining and integrating the talents, skills and energy of
individual employees to solve problems and accomplish goals and objectives that may
be difficult or impossible to achieve by management or other individual efforts alone.
Some of the common characteristics in the definition of a team include:
z More than one person,
z An achievement of common goal, and
z Coordination.
Teams are made up of individuals with diverse skills and talents. Each team member
has a clearly defined skill set that needs to be identified and measured against the skill
sets of other team members.
Some of the characteristics of a team are that a team is composed of a highly
communicative group of people. Poor communication means no team. A team must
have members with different backgrounds, skills and abilities, so that the team can
pool these things to be effective. A team with no diversity in it will be unlikely to
work in an innovative fashion. A team must have a shared sense of mission. Whether
it is a temporary work improvement team, or a branch, all members must share the
sense of mission. A team must have clearly identified goals. A team must be able to
gauge its success, and know what it is trying to accomplish.
In terms of direction, teams generally come in two categories, leader-directed and
self-directed.
The leader directed team has the following characteristics:
z The agenda is set by the leader,
z The meeting is led by the leader,
z Tasks are delegated to team members,
z Members are usually hand-picked based on expertise by the leader from the
various departments, and
z The leader normally is an executive who heads a department or a senior manager
from within a specific department.
A self-directed team has following characteristics:
z Members come from multiple areas of a system such as finance, development,
operations, marketing, sales, administration and others
z Members are of varies skill levels and talents
z The driving force is the internal leadership
z Commitment of senior management is required but involvement on a regular basis
may not be required.
It is of crucial importance that the members within a team as well as the teams within
a system collaborate with each other. To create teams that value high collaboration is
a must.
Teams have proven to be more responsive to demands of a competitive market place
than traditional hierarchies. Teamwork involves the entire organization. The team
concept gives employees an opportunity to be involved in meaningful decision-
making.
84 The best results are obtained when people work together with a sense of commitment
Total Quality Service Management
to one another as well as to the organization. Teamwork is the essence of teams
where collaboration, cooperation and coordination among and within team members
are effective.
Building an effective team brings about tremendous improvements in employee
performance, satisfaction and retention. When employees begin working together as a
team, the company benefits from a corresponding increase in productivity, sales,
responsiveness, and overall customer satisfaction.
Teams that are empowered become the building blocks of truly empowered system.
Empowerment is based upon a trusting relationship.
Disagreements happen in even the best of teams, and sometimes they’re quite sharp.
Managing disagreements requires the active commitment of ll sides, especially the
“winners”. Team unity must be placed above short-term victory. Creatively managed,
they can become occasions for growth and learning.
Conflicts are not a disaster but an Opportunity. Effective teams seize on conflicts to
reinforce their on-going win-win ethic. They try to generate as many alternatives by
brainstorming. The more creative options available, the more likely the group is to
reach a mutual solution.
4.15 KEYWORDS
Suppliers: are at the beginning of the chain of process steps for product or service.
Quality Circles: are a participative philosophy woven around Quality Control and
Problem solving at the grass root level.
Team Building: means to develop the team and the individuals in it to be stronger and
work more closely as a unit.
Sundara Raju, S.M., Total Quality Management: A Primer, Tata McGraw-Hill, 1995.
Sreenivasan, N.S and V. Narayana, Managing Quality – Concepts and Tasks, New Age
International, 1996.
Kume, H., Management of Quality, Productivity Press, 1996.
Dennis, Lock, Handbook of Quality Management, 1992.
Hammer, M. and Spect, Business Process Reengineering, 1995.
91
Management Process - 1
UNIT 1
UNIT III
92
Total Quality Service Management
93
LESSON Management Process - 1
5
MANAGEMENT PROCESS - 1
CONTENTS
5.0 Aims and Objectives
5.1 Introduction
5.2 Technical Systems Analysis in Service
5.3 Social Systems Analysis in Service
5.4 Controls in Service Organisation
5.5 Let us Sum up
5.6 Lesson End Activity
5.7 Keywords
5.8 Questions for Discussion
5.9 Suggested Readings
5.1 INTRODUCTION
Similarly to manufacturing organizations, service organizations are challenged to
continuous productivity improvement. Both in the case of globally operating and
competing companies as well as in locally operating public welfare organizations,
there is a need to make sure that service production is effective and efficient and that
resources are optimized, properly allocated and exploited. This means that a key target
for service organizations is the improvement of service operations productivity. This
poses different issues, such as in particular:
z How to link the management of knowledge resources to the improvement of the
services quality and to the outcomes of service delivery?
z How to measure service productivity when the output is intangible and cannot be
counted similarly to goods (physical products)?
Indeed, by definition, service is something intangible and its production is
fundamentally based on knowledge processes and resources. Managing service
production may require different approaches, models and tools than those designed for
manufacturing organizations. In order to explore how service operations productivity
can be improved, a particularly useful approach appears to be intellectual capital
management.
94 Intellectual capital has been an active research theme during the past decade.
Total Quality Service Management
Significant research efforts have been used to develop frameworks and tools for
understanding, analyzing, measuring and managing the intangible and knowledge
assets of organizations. There are many different services and service organizations,
and probably as many different ways to improve productivity. This issue aims to
investigate the contribution of the intellectual capital research stream to service
productivity improvement.
The unique qualities of service–Many of the core processes of a service organization
are not linear and even processes which are repeated from one customer to the next
are typically tailored to specific customers and their unique expectations and
requirements. Service employees are often less interdependent with one another than
employees in manufacturing. And their activities do not always lend themselves to
collaborative or team approaches.
Service–related jobs can be more meaningful and whole in nature, inherently
providing service employees with greater skill variety, task identity, task significance,
autonomy and feedback than is characteristically found in manufacturing settings.
Even more routine service jobs, such as grocery or department store clerks or bank
tellers, are more meaningful and satisfying because they require a variety of
interpersonal skills to effectively interact with a diverse set of customers, involve
some level of decision-making and receive direct feedback from customers.
Work redesign in the service world is different–These unique qualities mean that work
redesign efforts in service organizations must be approached from a different
perspective.
The true service organization cannot be effectively redesigned using either traditional
linear or non-linear socio-technical systems approaches. It requires an integration of
fundamental service quality principles and frameworks with traditional work redesign
structures and processes.
Work redesign in service, requires the application of some design principles unique to
service. In addition, there are some specific ways of approaching work redesign in
service organizations that differ from those used in other settings. The examples in
this lesson will help you to illustrate the usefulness of the approaches and improve the
redesign of work in service organizations.
5.7 KEYWORDS
User organization: The entity that has engaged a service organization and whose
financial statements are being audited.
User auditor: The auditor who reports on the user organization's financial statements.
Service organization: The entity (or segment of an entity) that provides services to a
user organization, which are part of the user's information system.
Service auditor: The auditor who reports on controls of a service organization that
may be relevant to a user organization's internal control as it relates to a financial
statement audit.
Service organization controls: Controls at a service organization that may be a part of
a user organization's information system in the context of an audit of the user's
financial statements.
CYP 1
1. Service is something intangible and its production is fundamentally based
on knowledge processes and resources.
2. These are situations where core processes are performing below required
standards.
CYP 2
1. Intangible
2. Auditor
3. Type I report
6
THE SEVEN TOOLS OF QUALITY
CONTENTS
6.0 Aims and Objectives
6.1 Introduction
6.2 Check Sheet
6.2.1 Steps to Create a Check Sheet
6.3 Histograms
6.3.1 Steps in Constructing a Histogram
6.3.2 Uses of Histogram Chart
6.3.3 Examples of Typical Distributions
6.3.4 Limitations of Technique
6.4 Scatter Diagrams
6.4.1 Steps in Constructing a Scatter Diagram
6.4.2 Interpret the Data
6.4.3 Use of Scatter Diagram
6.5 Flow Charts
6.5.1 Steps for Creating a Flow Chart
6.6 Process Mapping
6.7 Cause and Effect Diagrams
6.7.1 Steps in Constructing a Cause and Effect Diagram
6.7.2 Uses of Cause and Effect Diagram
6.7.3 Advantages of Cause and Effect Diagram
6.8 Pareto Diagrams
6.8.1 Steps in Constructing a Pareto Chart
6.9 Control Charts
6.9.1 Steps for Developing Control Charts
6.9.2 Control Chart Properties
6.9.3 Patterns in Control Charts
6.10 Advanced Tools of Quality (Six Sigma)
6.10.1 Historical Overview
6.10.2 Origin and Meaning of the Term "Six Sigma Process"
6.10.3 Methodology
6.10.4 Implementation Roles
6.10.5 Quality Management Methods Used in Six Sigma
6.11 Let us Sum up
6.12 Lesson End Activity
6.13 Keywords
6.14 Questions for Discussion
6.15 Suggested Readings
101
6.0 AIMS AND OBJECTIVES The Seven Tools of Quality
6.1 INTRODUCTION
One of the basic principles of TQM is management by facts. Management by facts
call for decisions based on relevant data and appropriate analysis and not by
institution, gut feeling and experience.
Management cannot expect employees to effectively participate in problem solving
and continuous improvement programs (i.e. to be empowered) unless they are
provided training in how to address problems.
The seven tools of quality make it easy for the collection and analysis of the data for
management by facts. They can assist the quality professional in root cause analysis.
They help organizations understand their processes in order to improve them.
A picture can convey ideas better than many words. The seven tools of quality are the
cause-and-effect diagram, check sheet, control chart, flowchart, histogram, Pareto
chart, and scatter diagram. They are simple but powerful tools that can be of
significant value throughout the problem solving and continuous improvements
processes.
The seven classical tools for Quality and process improvements and their use are
given below:
Tool Use
Check sheet Tabulates frequency of occurrence
Histogram Portrays the frequency of occurrence
Scatter Diagram Helps determine if two variables are related
Flow chart Flow charts are pictorial representations of a process. By flowcharts the
process down into its constituent steps, flowcharts can be useful in
identifying where errors are likely to be found in the system
Pareto Diagram Visually portrays problems and cause in order of severity or frequency.
Helps determine which problem or cause to tackle first.
Cause and Effect Diagram Portrays possible causes of a process problem. Helps determine root
cause.
These tools, like physical tools exist to help to do a job. Each of them is some form of
chart for the collection and display of specific kind of data. They make the data
collected usefully by making them as information that can be used for problem
solving and enhance decision-making. They keep track of the work done and can even
anticipate future performance and problems.
102 These tools can be used at various stages of problem solving as under:
Total Quality Service Management
Stage Tools used
I Process identification and objectives Flow chart
II Measurements Checks, histograms, Control Charts
III Identifying problem area Flow charts, Pareto Analysis and Scatter diagram
IV Finding root causes Cause and effect diagram, Scatter diagram
With the exception of process control charts, they do not require any knowledge of
statistics to be used effectively. And these tools are equally effective in both service
and manufacturing environments. Training in the use of these tools is often
incorporated into the early phases of employee empowerment training programs.
Each of these quality tools is simple and do not require any special theoretical
education to implement them. They organize data so nicely that the message can be
comprehended easily. These tools are usually used to complement each other, rather
than employed as stand-alone techniques.
Creatively plays a major role in the design of a check sheet. It should be user-friendly
and, whenever possible, include information on time and allocation. Whenever
possible, check sheets are also designed to show location.
6.3 HISTOGRAMS
Histogram is a fundamental statistical tool of SPC. It is a very effective graphical and
easily interpreted method for summarizing data.
104 A histogram is a graphic summary of variation in a set of data. The pictorial nature of
Total Quality Service Management
the histogram lets people see patterns that are difficult to see in a simple table of
numbers.
A histogram is a graphical representation of individual measured values according of
frequency or relative frequency of occurrence. Hence, they are also known as
frequency distribution diagrams. It is a type of Bar Chart – a graph where a discrete
variable (categories, items, ranges of data, etc.), on one axis (usually horizontal
X-axis) is compared to one or more values on the other axis.
Depending upon the particular variable, all of the data values may be represented.
Otherwise the values may be grouped into classes. The width of the bars are
proportional to the classes and the heights are proportional to the class frequencies.
The pictorial nature of histogram lets people see patterns that are difficult to see in a
simple table of numbers. It enables to find out useful information about the data, such
as:
z The average (mean) of the data
z The variation present in the data
z The pattern of variation
z Whether the process is within specifications
Histogram is useful tool for estimating the density (for random variables) or
probability mass function (for discrete random variables) of the population.
Histogram provides clues about the characteristics of the population from which the
samples are taken.
Before constructing frequency distribution one must determine the number of classes
to be used. Though this is purely arbitrary, too few or two many classes will not
provide a clear a picture as can be obtained with some nearly optimum number of
classes.
Sturge’s rule may be used as a useful guide to determine the optimal numbers of
classes (K) given by
K = the smallest integer greater than or equal to 1 + 3.332 Log(n)
Where K is the number of classes, Log is in base 10, and n is the total number of the
numerical values which comprise the data set.
Therefore, class width is : [highest value – lowest value) / (1 + 3.332 Log (n)] where n
is the total number of item in the data set.
2. Bi-Modal
z Distribution appears to have two peaks
z Many indicate that data from more than process are mixed together
Materials may come from two separate vendors
Sample may have come from two separate machines.
3. Cliff-lake
z Appears to end sharply or abruptly at one end.
z Indicates possible sorting or inspection of non-conforming parts.
4. Saw-Toothed
z Also commonly referred to as a comb distribution, appears as an alternating
jagged pattern
z Often indicates a measuring problem
z Improper gauge readings
z Gauge not sensitive enough for readings.
5. Skewed
Appears as an uneven with values tapering to one side. The two types are skewed left
and skewed right.
Within each symbol, write down what the symbol represents. This could be the start
or finish of the process, the action to be taken, or the decision to be made.
Symbols are connected one to the other by arrows, showing the flow of the process.
Example:
The example below shows part of a simple flow chart which helps receptionist’s route
incoming phone calls to the correct department in a company:
Effect
6.10.3 Methodology
Six Sigma has two key methodologies: DMAIC and DMADV, both inspired by
Deming's Plan-Do-Check-Act Cycle. DMAIC is used to improve an existing business
process; DMADV is used to create new product or process designs.
1. DMAIC
The basic methodology consists of the following five steps:
z Define process improvement goals that are consistent with customer demands and
the enterprise strategy.
z Measure key aspects of the current process and collect relevant data.
z Analyze the data to verify cause-and-effect relationships. Determine what the
relationships are, and attempt to ensure that all factors have been considered.
z Improve or optimize the process based upon data analysis using techniques like
Design of Experiments.
z Control to ensure that any deviations from target are corrected before they result
in defects. Set up pilot runs to establish process capability, move on to production,
set up control mechanisms and continuously monitor the process.
2. DMADV 123
The Seven Tools of Quality
The basic methodology consists of the following five steps:
z Define design goals that are consistent with customer demands and the enterprise
strategy.
z Measure and identify CTQs (characteristics that are Critical To Quality), product
capabilities, production process capability, and risks.
z Analyze to develop and design alternatives, create a high-level design and
evaluate design capability to select the best design.
z Design details, optimize the design, and plan for design verification. This phase
may require simulations.
z Verify the design, set up pilot runs, implement the production process and hand it
over to the process owners.
DMADV is also known as DFSS, an abbreviation of "Design For Six Sigma".
6.13 KEYWORDS
Restricted-use Report: is a "restricted-use" report intended for use by the service
organization, user organizations and user auditors.
Service Auditor: The auditor who reports on controls of a service organization that
may be relevant to a user organization's internal control as it relates to a financial
statement audit.
Service: is something intangible and its production is fundamentally based on 125
The Seven Tools of Quality
knowledge processes and resources.
7
MANAGEMENT PROCESS - 2
CONTENTS
7.0 Aims and Objectives
7.1 Introduction
7.2 Control Chart
7.3 Performance of Control Charts
7.4 Types of Charts
7.5 X-Bar/R Chart
7.6 X-Bar-S Charts
7.7 P-Chart
7.8 NP-Chart
7.9 CUSUM
7.9.1 Method
7.10 Acceptance Sampling
7.11 Acceptance Sampling Plan
7.11.1 Sampling Plans
7.11.2 Characteristics of a Good Sampling Plan
7.11.3 Points to Remember while Using Acceptance Sampling
7.12 Vendor Selection
7.13 Vendor Rating
7.13.1 Pricing
7.13.2 Sales/Distribution
7.14 Let us Sum up
7.15 Lesson End Activity
7.16 Keywords
7.17 Questions for Discussion
7.18 Suggested Readings
The control chart was invented by Walter A. Shewhart while working for Bell Labs in
the 1920s. The company's engineers had been seeking to improve the reliability of
their telephony transmission systems. Because amplifiers and other equipment had to
be buried underground, there was a business need to reduce the frequency of failures
and repairs. By 1920 they had already realized the importance of reducing variation in
a manufacturing process. Moreover, they had realized that continual process-
adjustment in reaction to non-conformance actually increased variation and degraded
quality. Shewhart framed the problem in terms of Common- and special-causes of
variation and, on May 16, 1924, wrote an internal memo introducing the control chart
as a tool for distinguishing between the two. Dr. Shewhart's boss, George Edwards,
recalled: "Dr. Shewhart prepared a little memorandum only about a page in length.
About a third of that page was given over to a simple diagram which we would all
recognize today as a schematic control chart. That diagram, and the short text which
preceded and followed it, set forth all of the essential principles and considerations
which are involved in what we know today as process quality control." Shewhart
stressed that bringing a production process into a state of statistical control, where
there is only common-cause variation, and keeping it in control, is necessary to predict
future output and to manage a process economically.
Dr. Shewhart created the basis for the control chart and the concept of a state of
statistical control by carefully designed experiments. While Dr. Shewhart drew from
pure mathematical statistical theories, he understood data from physical processes
never produce a "normal distribution curve" (a Gaussian distribution, also commonly
referred to as a "bell curve"). He discovered that observed variation in manufacturing
data did not always behave the same way as data in nature (Brownian motion of
particles). Dr. Shewhart concluded that while every process displays variation, some
processes display controlled variation that is natural to the process, while others
display uncontrolled variation that is not present in the process causal system at all
times.
In 1924 or 1925, Shewhart's innovation came to the attention of W. Edwards Deming,
then working at the Hawthorne facility. Deming later worked at the United States
Department of Agriculture and then became the mathematical advisor to the United
States Census Bureau. Over the next half a century, Deming became the foremost
champion and exponent of Shewhart's work. After the defeat of Japan at the close of
World War II, Deming served as statistical consultant to the Supreme Commander of
the Allied Powers. His ensuing involvement in Japanese life, and long career as an
industrial consultant there, spread Shewhart's thinking, and the use of the control
chart, widely in Japanese manufacturing industry throughout the 1950s and 1960s.
When a point falls outside of the limits established for a given control chart, those
responsible for the underlying process are expected to determine whether a special
cause has occurred. If one has, then that cause should be eliminated if possible. It is
known that even when a process is in control (that is, no special causes are present in
the system), there is approximately a 0.27% probability of a point exceeding 3-sigma
control limits. Since the control limits are evaluated each time a point is added to the
chart, it readily follows that every control chart will eventually signal the possible
presence of a special cause, even though one may not have actually occurred. For a
Shewhart control chart using 3-sigma limits, this false alarm occurs on average once
every 1/0.0027 or 370.4 observations. Therefore, the in-control average run length (or
in-control ARL) of a Shewhart chart is 370.4.
Meanwhile, if a special cause does occur, it may not be of sufficient magnitude for the
chart to produce an immediate alarm condition. If a special cause occurs, one can
describe that cause by measuring the change in the mean and/or variance of the
process in question. When those changes are quantified, it is possible to determine the
out-of-control ARL for the chart.
It turns out that Shewhart charts are quite good at detecting large changes in the
process mean or variance, as their out-of-control ARLs are fairly short in these cases.
However, for smaller changes (such as a 1- or 2-sigma change in the mean), the
Shewhart chart does not detect these changes efficiently. Other types of control charts
have been developed, such as the EWMA chart and the CUSUM chart, which detect
smaller changes more efficiently by making use of information from observations
collected prior to the most recent data point.
Quality characteristic
Large (≥
XbarR chart measurement within one Independent Variables
1.5σ)
subgroup
Quality characteristic
Large (≥
XbarS chart measurement within one Independent Variables
1.5σ)
subgroup
Shewhart
Quality characteristic
individuals control Large (≥
measurement for one Independent Variables
chart (ImR chart 1.5σ)
observation
or XmR chart)
Quality characteristic
Large (≥
Three-way chart measurement within one Independent Variables
1.5σ)
subgroup
Contd…
130
Total Quality Service Management u-chart Nonconformances per unit Large (≥
Independent Attributes
within one subgroup 1.5σ)
Exponentially weighted
moving average of quality Attributes or Small (<
EWMA chart Independent
characteristic measurement variables 1.5σ)
within one subgroup
Quality characteristic
Attributes or
Time series model measurement within one Autocorrelated N/A
variables
subgroup
7.7 P-CHART
In industrial statistics, the p-chart is a type of control chart that is very similar to the
X-bar chart except that the statistic being plotted is the sample proportion rather than
the sample mean. Since the proportion deals with the percentage of successes, clearly
the appropriate data for p-charts needs to be attribute data where the outcomes for
each trial can be classified as either a success or a failure (conform or non-conform,
yes or no, etc.). The subgroup size should ideally be equal, although unequal sample
sizes can be accommodated. The features of the p-chart can be enumerated as under:
1. The "p" in the p-chart comes from use of the proportion of nonconforming items
2. P-chart needs a good definition of nonconforming items – usually a categorical
definition
3. P-chart can be of equal or unequal subgroups
4. Normally p-charts need large subgroups – can even be up to total for the period
Control limits for the p-chart are calculated on the basis of the binomial distribution
and an approximation based on the central limit theorem.
7.8 NP-CHART
In industrial statistics, the NP-chart is a type of control chart that is very similar to the
p-chart except that the statistic being plotted is a number count rather than a sample
proportion of items. For example, an np-chart often shows the number of
nonconforming items in each sample. Since we are counting failures or successes,
clearly the appropriate data for np-charts need to be attribute data. The subgroup size
must be constant, as comparisons of counts would otherwise be meaningless.
NP-chart
1. The "np" stands for the number of nonforming items, which can be expressed as n
(sample size) times p (proportion of nonconforming items)
2. Need a good definition of nonconforming items – usually a categorical definition
3. Subgroup size must be constant
132 4. Normally need large subgroups – can even be up to total for the period
Total Quality Service Management
Control limits for the NP-chart are calculated on the basis of the binomial distribution
and an approximation based on the central limit theorem.
7.9 CUSUM
CUSUM is a sequential analysis technique due to E. S. Page of the University of
Cambridge. It is typically used for monitoring change detection. CUSUM was
announced in Biometrika a few years after the publication of Wald's SPRT algorithm.
Page referred to a "quality number" θ, by which he meant a parameter of the
probability distribution; for example, the mean. He devised CUSUM as a method to
determine changes in it, and proposed a criterion for deciding when to take corrective
action.
A few years later, Barnard developed a visualization method, the V-mask chart, to
detect both increases and decreases in θ
7.9.1 Method
As its name implies, CUSUM involves the calculation of a cumulative sum (which is
what makes it "sequential"). Samples from a process xn are assigned weights Wn, and
summed as follows:
Sn = max(0,Sn − 1 + Wn)
Page did not explicitly say that W represents the likelihood function, but this is
common usage. Monitoring stops and action is taken when the sum exceeds a certain
threshold, h. Note that this differs from SPRT by always using zero function as the
lower "holding barrier" rather than a lower "holding barrier". Also, CUSUM does not
require the use of the likelihood function.
As a means of assess CUSUM's performance, Page defined the average run length
(A.R.L.) metric; "the expected number of articles sampled before action is taken." He
further wrote:
When the quality of the output is satisfactory the A.R.L. is a measure of the expense
incurred by the scheme when it gives false alarms, i.e. Type I errors (Neyman &
Pearson, 1936). On the other hand, for constant poor quality the A.R.L. measures the
delay and thus the amount of scrap produced before the rectifying action is taken, i.e.
Type II errors.
z Higher productivity
z Avoiding production losses
z Reducing inspection cost
z Maintaining smooth business relations and
z Healthy growth of business
The behavior of a sampling of a sampling plan is described by the sampling plan’s
Operating Characteristic (OC) curve. Acceptance sampling makes use of standard
table such as the Dodge-Rowing Sampling Tables of Military Standards 105D (MIL
STD-105D).
Check Your Progress 2
1. Define P-chart.
…………………………………………………………………………….
…………………………………………………………………………….
2. What is NP-chart?
…………………………………………………………………………….
…………………………………………………………………………….
7.13.1 Pricing
Pricing considerations include basic components of competitiveness and fairness.
Prices should be fair, and pricing policies should be made public, with clear terms and
conditions. An evaluator will note a vendor's established pricing practices and
discounting policies. He will also consider whether a vendor is trying to buy its
business (for example, engaging in pricing practices that it cannot sustain in the
future). Low prices do a customer little good if the vendor's pricing strategies are
endangering the vendor's long-term financial health. Without sufficient profit margins
on products and services, customers may go to a vendor for support to find out that the
vendor is no longer there or that its ability to support its products has deteriorated to
the point of uselessness.
7.13.2 Sales/Distribution
Successful vendors will have sales channels that are specifically focused on a vendor's
target, with partnerships that are strong enough to sustain profitable relationships. The
sales strategy will minimize channel conflict while providing enough diversity
through original equipment manufacturer agreements, value-added resellers, and
direct and online sales. Evaluator evaluates the impact of partnerships on sales
138 strategies. We also consider whether a vendor's offerings are tailored specifically
Total Quality Service Management
toward enterprises of a specific size or vertical market, or whether the vendor is taking
a "one-size-fits-all" approach.
To get a good rating, vendors must have the ability to support their legacy products
and new products. Vendors must also be sufficiently familiar with their partners'
products to have them step in when necessary. Enterprises should pay particular
attention to links between product support and development, and whether a vendor has
the depth of skills to support a new product line. We report on issues that Evaluator
clients have had with vendors concerning support of specific products or services.
Another important consideration with regard to support is whether a vendor uses
services to grow its business as opposed to using services to support its business. For
example, does the vendor have service customers who are not customers of its product
divisions?
7.16 KEYWORDS
Acceptance Sampling:Acceptance sampling is a quality assurance technique used for
inspecting incoming material and outgoing (finished) products.
Control Chart: In statistical process control, the control chart, also known as the
'Shewhart chart' or 'process-behaviour chart' is a tool used to determine whether a
manufacturing or business process is in a state of statistical control or not.
Check Sheet: It is one of the seven tools of quality and is customized form, or tally
sheet, designed by the user.
Vendor Rating: Vendor rating is a process having strategic implications for managing
a supply chain.
CYP 1
1. It is a tool used to determine whether a manufacturing or business process is
in a state of statistical control or not.
2. The control chart was invented by Walter A. Shewhart while working for
Bell Labs in the 1920s.
CYP 2
1. In industrial statistics, the p-chart is a type of control chart that is very
similar to the X-bar chart except that the statistic being plotted is the sample
proportion rather than the sample mean.
2. In industrial statistics, the NP-chart is a type of control chart that is very
similar to the p-chart except that the statistic being plotted is a number count
rather than a sample proportion of items.
CYP 3
1. Control
2. Quality control
3. Xbar-S
4. Xbar-R chart
UNIT 1
UNIT IV
142
Total Quality Service Management
143
LESSON Management of Quality
8
MANAGEMENT OF QUALITY
CONTENTS
8.0 Aims and Objectives
8.1 Introduction
8.2 Quality Improvement Methods
8.3 Quality Improvement Tools
8.3.1 Control Charts
8.3.2 Deming PDCA
8.3.3 Juran
8.3.4 Value Analysis Teams
8.3.5 Teams
8.3.6 TQM
8.3.7 ISO/QS9000
8.3.8 Design of Experiments (DOE)
8.3.9 Brecker Process Improvement
8.4 Quality Improvement Steps
8.4.1 Understand Processes and Pinpoint Critical Problems
8.4.2 Establish Control and Reduce Variation
8.4.3 Determine Process Capability
8.4.4 Design Experiments to Improve Products or Processes
8.4.5 Assess Product Reliability
8.5 Let us Sum up
8.6 Lesson End Activity
8.7 Keywords
8.8 Questions for Discussion
8.9 Suggested Readings
The causes of variations that exceed the upper and lower control limits (UCL and
LCL respectively), such as at "A", must be eliminated in order to bring the process
back into statistical control.
8.3.3 Juran
Juran focused on quality control with the "trilogy" planning
8.3.5 Teams
Japanese Quality Circles demonstrated the effectiveness of worker teams in
identifying and solving process problems in their work area. However, most serious
quality problems in non-manufacturing (as well as manufacturing) organizations arise
in activities that involve more than one department/function.
Quality Circles has evolved into Kaizen, which utilizes multi-functional worker and
production engineering teams to improve quality and productivity in a given process.
The teams use TQM techniques in implementing "Lean" manufacturing methods.
8.3.6 TQM
Total Quality Management (TQM) emphasized using multi-functional teams
(professional staff and workers from all departments involved) to solve problems. The
teams were trained to use basic statistical tools to collect and analyze data.
z Check sheets
z Pareto diagrams
z Histograms
z Run charts
z Flow charts
z Cause and effect diagrams
z Force field analysis
z Scatter diagrams
Flow charts or process maps were used to visualize the flow of product or documents
through a series of process steps. The predominant goal of Process Improvement
Teams was to eliminate the non-value adding steps and to resolve quality problems in
order to reduce the (cycle) time needed to complete the process.
150
Total Quality Service Management
8.7 KEYWORDS
Quality Management: It is a method for ensuring that all the activities necessary to
design, develop and implement a product or service are effective and efficient with
respect to the system and its performance.
TQM: Total Quality Management (TQM) emphasized using multi-functional teams
(professional staff and workers from all departments involved) to solve problems.
Kaizen: Japanese for change for the better; the common English usage is continual
improvement.
QFD: Quality Function Deployment, also known as the House of Quality approach.
9
QUALITY IMPROVEMENT METHODS
CONTENTS
9.0 Aims and Objectives
9.1 Introduction
9.2 Kaizen Policy
9.2.1 Tools used In Kaizen
9.3 Quality Audits
9.3.1 Types of Quality Audit
9.4 Medical Audit
9.5 Accredition
9.6 Nursing Care Standards
9.7 Six Sigma
9.7.1 Significant Elements of Six Sigma Methodology
9.7.2 Six Sigma Methodology
9.7.3 DMAIC
9.8 Just-in-Time
9.8.1 Philosophy
9.8.2 Stocks
9.8.3 Transaction Cost Approach
9.8.4 Environmental Concerns
9.8.5 Price Volatility
9.8.6 Quality Volatility
9.8.7 Demand Stability
9.9 NABL
9.10 Let us Sum up
9.11 Lesson End Activity
9.12 Keywords
9.13 Questions for Discussion
9.14 Suggested Readings
156
Total Quality Service Management
9.0 AIMS AND OBJECTIVES
After studying this lesson, you should be able to:
z Know the various methods of quality
z Study the concept of Just in time
z Understand the use and importance of the NABL concept
9.1 INTRODUCTION
Kaizen is management concept originated by the Japanese in order to continuously
effect incremental changes for the better, involving everybody within the
organization. In Japanese “Kai” means change, and “Zen” means good or for the
better. Kaizen requires no or little investment. The term Kaizen was made famous by
Masaaki Imai in his book, “Kaizeno - The Key to Japan’s Competitive Success”.
Kaizen means continuing improvement involving everyone – managers and workers
alike. Kaizen improvements are small and incremental. But the Kaizen process brings
about dramatic results over time. The Kaizen concept explains why companies cannot
remain static for long in Japan.
The philosophy of Kaizen is perhaps the most representative contribution of Japanese
management thinking in the eighties and nineties. It assumes that our way life – be it
our working life, our social life, or our home life—should be the focus of constant
improvement efforts.
Kaizen is aimed at producing more and more value with less and less wastage (higher
efficiency), attaining better working environment, and developing stable processes by
standardization. Three things required for Kaizen are:
z Operating Practices: Expose new improvement opportunities. Practice such as
JIT reveal waste and inefficiency as well as poor quality.
z Total Involvement: Every employee strives for improvement. Greater coordi-
nation and communication between departments.
z Training: Develop problem-solving skills through training.
Everyone in the organization must genuinely believe in the idea of Kaizen and must
be given education and training for contributing to continuously improve. Everyone
must be willing to:
z Learn
z Communication
z Be disciplined
z Get involved and
z Change in order to maximize gains from Kaizen.
Kaizen focuses on small, gradual, and frequent improvements over the long term.
Kaizen has shown that business can and should have a human face.
Kaizen Events when repeated have three effects equally beneficial. They generate
z Profit
z Savings and
z A habit of Success
Habits create a culture: Lean manufacturing and other best practices are the results of
this. Kaizen is the emphasis on satisfying the consumer and society in general.
Kaizen concentrates at improving the process rather than at achieving certain results. 157
Quality Improvement Methods
Such managerial attitudes make a major difference in how an organization masters
change and achieves improvements.
Kaizen implementation operates on the following principles:
z That human resources are the company’s most important asset;
z That success can not be achieved by some occasional radical changes alone, but
by incremental yet consistently arriving improvements; and
z That improvement must be based on a statistical or quantitative study of the
performance of the process.
Category Losses
Losses that impede Failure losses – Breakdowns
Equipment efficiency Setup/adjustment losses
Cutting blade loss
Start up loss
Minor stoppage/Idling loss
Speed loss – operating at low speeds.
Defect /rework loss
Scheduled downtime loss
Losses that impede human work efficiency Management loss
Operating motion loss
Line organization loss
Logistic loss
Measurement and adjustment loss
9.5 ACCREDITION
Accreditation is a process in which, certification of competency, authority, or
credibility is presented.
Organizations that issue credentials or certify third parties against official standards
are themselves formally accredited by accreditation bodies; hence they are sometimes
known as "accredited certification bodies". The accreditation process ensures that
their certification practices are acceptable, typically meaning that they are competent
to test and certify third parties, behave ethically, and employ suitable quality
assurance.
One example of accreditation is the accreditation of testing laboratories and
certification specialists that are permitted to issue official certificates of compliance
with established standards, such as physical, chemical, forensic, quality, and security
standards.
9.7.3 DMAIC
z Define opportunities: This first phase involves the definition of the
project/assignment goals in relation to customer requirements. It uses process
map, application area, desired improvement, likely benefits, etc.
At the top level the goals will be the strategic objectives of the organization, such
as a higher ROI or market share. At the operations level, a goal might be to
increase the throughout of a production department.
At the project level goals might be to reduce the defect level and increase
throughout. Apply data mining methods to identify potential improvement
opportunities. Defining the problem would involve
Define customers and requirements
Develop problem statement, goals and benefits
Identify champion, process owner and team
Define resources
Evaluate key organizational support
Develop resources
Evaluate key organizational support
Develop project plan and milestones
Develop high-level process map
166 z Measure performance: Measure the existing system. Establish valid and reliable
Total Quality Service Management
metrics to help monitor progress towards the goal(s) defined at the previous step.
Begin by determining the current baseline. Use exploratory and descriptive data
analysis to help you understand the data. This phase involves collection of data to
measure the current performance of the process.
z Improve performance: Improve the system. Be creative in finding new ways to
do things better, cheaper, or faster. Use project management and other planning
and management tools to implement the new approach. Use statistical methods to
validate the improvement. This phase looks at the ways of improving the
performance on the weak areas identified. This may involve better forecasting,
better scheduling, better procedures or equipment etc.
z Control performance: Control the new system. Institutionalize the improved
system by modifying compensation and incentive systems, policies, procedures,
MRP, budgets, operating instructions and other management systems. You may
wish to utilize systems such as ISO 9000 to assure that documentation is correct.
This phase involves the control of the improved process to sustain its gains.
The DMAIC process is a variation of PDCA that many people find helpful. The
leaders chosen by the company go through rigorous training to be able to implement
these tools to seek out defects and eliminate them.
The DMAIC approach allows the company to address the variability of the testing
process with a prescription for success. The phase allow for
z Resource identification, knowledge and availability,
z Processes to test to assure that the customer request is fulfilled, and
z Channel implications: Something well known (low risk) or something new (higher
risk).
Six Sigma DMADV defines measures, analyzes, designs, and verifies new processes
or products that are trying to achieve Six Sigma quality. The DMADV method is
employed in situations wherein there is no existing process or product yet catering to a
certain customer requirement, and the company wants to develop one for that purpose.
DMADV stands for:
1. Define opportunities (project goals in relation to customer requirements);
2. Design the process to met these customer needs; and
3. Verify the performance of the process, particularly in terms of its ability to meet
customer requirements
Key product-process performance variables are measured, analyzed, improved, and
controlled using statistical methods. When improvements is necessary, Design of
Experiments (DOE) is used. This is to determine which product or process parameters
are most important. It would also find the specific parameter values that will give the
best performance. SPC is used to continually monitor product and process
performance.
Six Sigma initiatives aim at reduction of process variation and defects. SPC and EPC
are two important techniques for achieving these goals. SPC charts provide a good
check against assignable causes of variation while EPC charts can be used for
prediction and run-on-run adjustment of process average.
Statistical Process control (SPC) is a scientific and inexpensive way to prevent defects
and is an effective check against assignable causes of process variation. SPC is a time-
tested and effective control scheme used for process capability analysis and process
monitoring. SPC technique consists mainly of
z Pareto Analysis,
z Scatter Diagram and Regression Analysis, and 167
Quality Improvement Methods
z Statistical Control Charts
Engineering Process Control (EPC) helps in run process adjustments and reducing
process variability and adds extra power to Statistical Process Control schemes. Both
SPC and EPC are very essential for achieving Six Sigma target of PPM (parts per
million) defect levels.
There are six steps to Six Sigma Quality:
z Determine what your product is
z Determine who the customer for the product is
z Identify suppliers
z Map out the process required
z Eliminate errors and waste in the process
z Establish measurement to feed continuous improvement
9.8 JUST-IN-TIME
Just-in-time (JIT) is an inventory strategy implemented to improve the return on
investment of a business by reducing in-process inventory and its associated carrying
costs. In order to achieve JIT the process must have signals of what is going on
elsewhere within the process. This means that the process is often driven by a series of
signals, which can be Kanban ,that tell production processes when to make the next
part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence
or absence of a part on a shelf. When implemented correctly, JIT can lead to dramatic
improvements in a manufacturing organization's return on investment, quality, and
efficiency. Some have suggested that "Just on Time" would be a more appropriate
name since it emphasizes that production should create items that arrive when needed
and neither earlier nor later.
Quick communication of the consumption of old stock which triggers new stock to be
ordered is key to JIT and inventory reduction. This saves warehouse space and costs.
However since stock levels are determined by historical demand any sudden demand
rises above the historical average demand, the firm will deplete inventory faster than
usual and cause customer service issues. Some. Have suggested that recycling Kanban
faster can also help flex the system by as much as 10-30%. In recent years
manufacturers have touted a trailing 13 week average as a better predictor for JIT
planning than most forecasters could provide.
9.8.1 Philosophy
The philosophy of JIT is simple - inventory is defined to be waste. JIT inventory
systems expose the hidden causes of inventory keeping and are therefore not a simple
solution a company can adopt; there is a whole new way of working the company
must follow in order to manage its consequences. The ideas in this way of working
come from many different disciplines including statistics, industrial engineering,
production management and behavioral science. In the JIT inventory philosophy there
are views with respect to how inventory is looked upon, what it says about the
management within the company, and the main principle behind JIT.
Inventory is seen as incurring costs, or waste, instead of adding value, contrary to
traditional accounting. This does not mean to say JIT is implemented without an
awareness that removing inventory exposes pre-existing manufacturing issues. Under
this way of working, businesses are encouraged to eliminate inventory that does not
compensate for manufacturing issues, and then to constantly improve processes so
168 that less inventory can be kept. Secondly, allowing any stock habituates the
Total Quality Service Management
management to stock keeping and it can then be a bit like a narcotic. Management are
then tempted to keep stock there to hide problems within the production system.
These problems include backups at work centres, machine reliability, process
variability, lack of flexibility of employees and equipment, and inadequate capacity
among other things.
In short, the just-in-time inventory system is all about having “the right material, at
the right time, at the right place, and in the exact amount”, without the safety net of
inventory. The JIT system has implications of which are broad for the implementors.
9.8.2 Stocks
JIT emphasises inventory as one of the seven wastes (overproduction, waiting time,
transportation, inventory, processing, motion and product defect), and as such its
practice involves the philosophical aim of reducing input buffer inventory to zero.
Zero buffer inventory means that production is not protected from exogenous
(external) shocks. As a result, exogenous shocks reducing the supply of input can
easily slow or stop production with significant negative consequences. For example,
Toyota suffered a major supplier failure as a result of the 1997 Aisin fire which
rendered one of its suppliers incapable of fulfilling Toyota's orders. In the U.S., the
1992 railway strikes resulted in General Motors having to idle a 75,000-worker plant
because they had no supplies coming in.
9.9 NABL
National Accreditation Board for Testing and Calibration Laboratories (NABL) is an
autonomous body under the aegis of Department of Science & Technology,
Government of India, and is registered under the Societies Act. NABL has been
established with the objective to provide Government, Industry Associations and
Industry in general with a scheme for third-party assessment of the quality and
technical competence of testing and calibration laboratories. Government of India has
authorized NABL as the sole accreditation body for Testing and Calibration
laboratories.
In order to achieve this objective, NABL provides laboratory accreditation services to
laboratories that are performing tests / calibrations in accordance with ISO/IEC 17025
and ISO 15189:2003 for medical laboratories. These services are offered in a non-
discriminatory manner and are accessible to all testing and calibration laboratories in
India and abroad, regardless of their ownership, legal status, size and degree of
independence.
NABL has established its Accreditation System in accordance with ISO/IEC
17011:2004, which is followed internationally. In addition NABL has to also comply
with the requirements of APLAC MR001, which requires the applicant and the
accredited laboratories to take part in recognized Proficiency Testing Programmes in
accordance with ISO/IEC Guide 43. An applicant laboratory has to satisfactorily
participate in at least one Proficiency Testing programme, while the accredited
laboratories are expected to cover the major scopes of accreditation in a cycle time of
four years. Towards this objective, NABL has been conducting Proficiency Testing
with the help of selected accredited laboratories as nodal laboratories in different
fields. The performance remains confidential between NABL and each participating
laboratory by using laboratory code numbers. In case of unsatisfactory performance,
laboratory is expected to investigate and take the necessary corrective actions. In case
of repeated failure or gross failure indicated by Z factor, En ratio etc. scope of
accreditation is reduced by NABL
NABL also satisfies the requirements of APLAC MR001. NABL had undergone the
first peer evaluation by a 4 member team of APLAC in July 2000, based on which
NABL qualified as an APLAC MRA (Mutual Recognition Arrangement) Partner as
well as a Signatory to ILAC Arrangements. NABL was reassessed in July 2004 and as
stated earlier the signatory status of NABL within APLAC MRA has been confirmed
for further four years i.e. October 2008. This distinction has brought additional
responsibility on NABL and its accredited laboratories. Annual Surveillance is carried
out to ensure that the accredited laboratories are continuing to comply the
accreditation criteria. NABL and its accredited laboratories are also required to meet
the new challenges arising out of requirements such as satisfactory participation in a
recognized Proficiency Testing Programme and the requirement of estimating the
Uncertainty in Measurements even by the testing laboratories. NABL has already
170 published the revised guideline on Estimation of Uncertainty in Measurement for
Total Quality Service Management
Calibration Laboratories. NABL also conducts One-Day Awareness Programmes on
key issues such as Uncertainty in Measurement, Proficiency Testing, Validation etc. at
different parts of India so that applicant and accredited laboratories can take the
appropriate action.
9.12 KEYWORDS
Six Sigma Methodology: The Six Sigma is a disciplined method of using extremely
rigorous data-gathering and statistical analysis to pinpoint sources of errors and ways
of eliminating them.
Defect: Failing to deliver what the customer wants.
Process Capability: What your process can deliver.
Variation: What the customer sees and feels.
Stable Operation: Ensuring consistent, predictable processes to improve what the
customer sees and feels.
Design for Six Sigma: Designing processes to meet customer needs and process
capability.
NABL: National Accreditation Board for Testing and Calibration Laboratories
(NABL) is an autonomous body under the aegis of Department of Science &
Technology, Government of India, and is registered under the Societies Act.
UNIT 1
UNIT V
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Total Quality Service Management
175
LESSON Systems Approach to Quality
10
SYSTEMS APPROACH TO QUALITY
CONTENTS
10.0 Aims and Objectives
10.1 Introduction
10.2 ISO 9000 Family
10.3 ISO 14000
10.3.1 Standards
10.4 OHSAS (ISO 18000)
10.4.1 Advantages
10.5 Reengineering
10.5.1 Characteristics of Reengineering
10.5.2 Methodology of Reengineering
10.5.3 Advantages of Reengineering
10.5.4 Criticism of Reengineering
10.6 Documentation of Quality System
10.6.1 Quality Manual
10.6.2 Quality Procedures
10.6.3 Quality Records
10.6.4 Controlled Documents
10.7 Implementing ISO 9001: 2000
10.8 Let us Sum up
10.9 Lesson End Activity
10.10 Keywords
10.11 Questions for Discussion
10.12 Suggested Readings
10.3.1 Standards
The material included in this family of specifications is very broad. The major parts of
ISO 14000 are:
z ISO 14001 is the standard against which organizations are assessed. ISO 14001 is
generic and flexible enough to apply to any organization producing and/or
manufacturing any product, or even providing a service anywhere in the world.
z ISO 14004 is a guidance document that explains the 14001 requirements in more
detail. These present a structured approach to setting environmental objectives
and targets and to establishing and monitoring operational controls.
These are further expanded upon by the following:
178 z ISO 14020 series (14020 to 14025), Environmental Labeling, covers labels and
Total Quality Service Management
declarations.
z ISO 14030 discusses post-production environmental assessment.
z ISO 14031 Evaluation of Environmental Performance.
z ISO 14040 series (14040 to 14044), Life Cycle Assessment, LCA, discusses pre-
production planning and environment goal setting.
z ISO 14050 terms and definitions.
z ISO 14062 discusses making improvements to environmental impact goals.
z ISO 14063 is an addendum to 14020, discussing further communications on
environmental impact.
z ISO 14064-1:2006 is Greenhouse gases – Part 1: Specification with guidance at
the organization level for the description, quantification and reporting of
greenhouse gas emissions and removals.
z ISO 14064-2:2006 is Greenhouse gases – Part 2: Specification with guidance at
the project level for the description, quantification, monitoring and reporting of
greenhouse gas emission reductions and removal enhancements.
z ISO 14064-3:2006 is Greenhouse gases – Part 3: Specification with guidance for
the validation and verification of greenhouse gas assertion.
z ISO 19011 which specifies one audit protocol for both 14000 and 9000 series
standards together. This replaces ISO 14011 meta-evaluation—how to tell if your
intended regulatory tools worked. 19011 is now the only recommended way to
determine this.
Check Your Progress 1
1. Which company can state that it is “ISO 9001 certified”?
…………………………………………………………………………….
…………………………………………………………………………….
2. What does ISO certification does not guarantee?
…………………………………………………………………………….
…………………………………………………………………………….
10.4.1 Advantages
z Higher productivity and working quality.
z Minimizing of fees and penalties in occupational health and safety performance
z Improvement of working conditions for workers.
z Increasing of satisfaction and loyalty of workers.
z A tool for information obtaining important for planning and objectives 179
Systems Approach to Quality
establishment.
z Risk minimizing of accidents and occupational diseases.
z Increasing of organization ethics.
The co-operation result of several accreditation and certification organizations all over
the world there is creation of International Standard OHSAS 18001-Occupational
health and safety management systems. This set guideline of occupational health and
safety management assessment (OHSAS) specifies requirements for occupational
healthy and safety management system to enable to manage risks of OH&S
management system and to improve its efficiency.
The guideline OHSAS is effective/ applicable for an organization, which calculates to
certify its OH&S management system.
10.5 REENGINEERING
Reengineering is about achieving dramatic, breakthrough improvements often by the
application of new technologies. It is the opposite of Kaizen. This revolutionary
approach was developed by Hammer and Champy.
Reengineering is the fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements in critical contemporary measures of
performance, such as cost, quality, services, and speed. It involves identifying and
abandoning outdated rules and fundamental assumptions.
Reengineering capitalizes on the characteristics of Individualism, Self-reliance,
Willingness to accept risk and a propensity for change. The three emerging forces
that will hasten change are Customers, Competition, and Change:
z Customers are now in charge, determining what to buy and when.
z Competition now involves global companies, competing in both home markets
and foreign. Currency and rate of pay differences intensity the competition. Best
price, highest quality, and best service providers set the standard for all other.
New companies enter markets with compelled to play by the rules.
z Change is the only constant. Not only do more things change, but also they
change faster than at any time in the past. Careers and rules change quickly.
Inflexibility, unresponsiveness, the absence of customer focus, and obsession with
activity rather than result, bureaucratic paralysis, lack of innovation, and high
overhead are the legacies of industrial leadership. These things must be changed.
Reengineering focuses on changing existing business practices. It involves asking
basic questions about business process like why is this done this way or why do we do
it. It means reinvesting the process and not just incrementally improving it.
10.10 KEYWORDS
ISO 9000: It is a family of standards for quality management systems.
ISO 14000: The environmental management standards exist to help organizations
minimize how their operations negatively affect the environment (cause adverse
changes to air, water, or land), comply with applicable laws and regulations).
OHSAS 18001: It is occupational health and safety management systems.
11
BENCHMARKING
CONTENTS
11.0 Aims and Objectives
11.1 Introduction
11.2 Definition of Benchmarking
11.3 Typical Steps for Benchmarking
11.3.1 Identify a Critical Process that Needs Improvement
11.3.2 Identify an Organization that Excels in the Process, Preferably the Best
11.3.3 Contact the Benchmark Organization, Visit it, and Study
the Benchmark Activity
11.3.4 Analyze the Data
11.3.5 Improve the Critical Process at your Own Organization
11.3.6 Continue to Monitor the Results and Complete On-going Benchmarking
Studies
11.4 Types of Benchmarking
11.4.1 Levels of Benchmarking
11.4.2 Strategic Benchmarking
11.4.3 Operational Benchmarking
11.4.4 Product Benchmarking
11.4.5 Performance Benchmarking
11.4.6 Process Benchmarking
11.4.7 Functional Benchmarking
11.4.8 Best Practices Benchmarking
11.4.9 Cooperative Benchmarking
11.4.10 Collaborative Benchmarking
11.4.11 Competitive Benchmarking
11.5 Benchmarking Process
11.5.1 Xerox Twelve-Step Process
11.5.2 AT&T and Other Processes
11.5.3 Motorola’s Five-step Process
11.6 Benefits and Shortcomings of Benchmarking
11.6.1 Benefits of Benchmarking
11.7 Let us Sum up
11.8 Lesson End Activity
11.9 Keywords
11.10 Questions for Discussion
11.11 Suggested Readings
193
11.0 AIMS AND OBJECTIVES Benchmarking
11.1 INTRODUCTION
Bench marking is the process of identifying, understandings and adopting outstanding
practices and process from organization anywhere in the world, in order to help an
Organization to improve its performance.
The term benchmark refers to the reference point by which performance is measured
against. It is the indicator of what can and is being achieved. The term benchmarking
refers to the actual activity of establishing benchmarks and ‘best’ practices.
Taiichi Ohro, who developed the just-in-time (JIT) inventory system in Totota,
invented this process. The term benchmarking refers to the actual activity of
establishing benchmarks and ‘vest’ practices.
11.3.3 Contact the Benchmark Organization, Visit it, and Study the
Benchmark Activity
In this step plan for productive Benchmark Sessions. Develop plans; train the
benchmark teams on their responsibilities, complete travel plans and logistics. This
should take 20% of the time.
Define benchmarking.
………………………………………………………………………………….
………………………………………………………………………………….
197
11.4 TYPES OF BENCHMARKING Benchmarking
MBA
Second Year
Sub: Total Quality Service Management
Time: 3 hours Total Marks: 100
Direction: There are total eight questions, each carrying 20 marks. You have to
attempt any five questions.
209