ANSWER QUESTION 5 (6marks)

5 universal principle of lean management is :

1. Specify value from the standpoint of the end customer by product family.

2. Identify all the steps in the value stream for each product family, eliminating
whenever possible those steps that do not create value.

3. Make the value-creating steps occur in tight sequence so the product will flow
smoothly toward the customer.

4. As flow is introduced, let customers pull value from the next upstream activity.

5. As value is specified, value streams are identified, wasted steps are removed,
and flow and pull are introduced, begin the process again and continue it until
a state of perfection is reached in which perfect value is created with no
waste.
ANSWER QUESTION 6 (21marks)

Seven wastages of TPS :

1. Overproduction
Overproduction happens each time you engage more resources than needed to
deliver to your customer. For instance, large batch production, because of long
change over time, exceeds the strict quantity ordered by the customer. For
productivity improvement, operators are required to produce more than the customer
needs. Extra parts will be stored and not sold. Overproduction is the worst muda
because it hides or generates all others, especially inventory. Overproduction
increases the amount of space needed for storing raw material as well as finished
goods. It also requires a preservation system.

2. Unnecessary transportation
Each time a product is moved it stands the risk of being damaged, lost, delayed, etc.
as well as being a cost for no added value. Transportation does not make any
transformation to the product that the consumer is supposed to pay for.

3. Inventory
Inventory, be it in the form of raw materials, work-in-progress (WIP), or finished
goods, represents a capital outlay that has not yet produced an income either by the
producer or for the consumer. Any of these three items not being actively processed
to add value is waste.

4. Motion
As compared to Transportation, Motion refers to the producer, worker or equipment.
This has significance to damage, wear and safety. It also includes the fixed assets
and expenses incurred in the production process.
 5. Defects
Whenever defects occur, extra costs are incurred reworking the part, rescheduling
production, etc.

6. Over-processing
Over-processing occurs any time more work is done on a piece than what is required
by the customer. This also includes using tools that are more precise, complex, or
expensive than absolutely required.

7. Waiting
Whenever goods are not in transport or being processed, they are waiting. In
traditional processes, a large part of an individual product's life is spent waiting to be
worked on.

An easy way to remember the 7 wastes is TIMWOOD.

T: Transportation

I: Inventory

M: Motion

W: Wait

O: Over-processing

O: Over-production

D: Defect
ANSWER QUESTION 3 (6marks)
Three of the eight principle management is ;

Principle 1: Customer focus

Organizations depend on their customers and therefore should
understand current and future customer needs, should meet customer
requirements and strive to exceed customer expectations.

Key benefits:

 Increased revenue and market share obtained through flexible and fast
responses to market opportunities.
 Increased effectiveness in the use of the organization's resources to
enhance customer satisfaction.
 Improved customer loyalty leading to repeat business.

Applying the principle of customer focus typically leads to:

 Researching and understanding customer needs and expectations.

 Ensuring that the objectives of the organization are linked to customer
needs and expectations.
 Communicating customer needs and expectations throughout the
organization.
 Measuring customer satisfaction and acting on the results.
 Systematically managing customer relationships.
 Ensuring a balanced approach between satisfying customers and other
interested parties (such as owners, employees, suppliers, financiers, local
communities and society as a whole).
Principle 2: System approach to management
Identifying, understanding and managing interrelated processes as a
system contributes to the organization's effectiveness and efficiency in
achieving its objectives.

Key benefits:

 Integration and alignment of the processes that will best achieve the
desired results.
 Ability to focus effort on the key processes.
 Providing confidence to interested parties as to the consistency,
effectiveness and efficiency of the organization.

Applying the principle of system approach to management typically leads to:

 Structuring a system to achieve the organization's objectives in the most

effective and efficient way.
 Understanding the interdependencies between the processes of the
system.
 Structured approaches that harmonize and integrate processes.
 Providing a better understanding of the roles and responsibilities necessary
for achieving common objectives and thereby reducing cross-functional
barriers.
 Understanding organizational capabilities and establishing resource
constraints prior to action.
 Targeting and defining how specific activities within a system should
operate.
 Continually improving the system through measurement and evaluation.
Principle 3: Involvement of people
People at all levels are the essence of an organization and their full
involvement enables their abilities to be used for the organization's
benefit.

Key benefits:

 Motivated, committed and involved people within the organization.

 Innovation and creativity in furthering the organization's objectives.
 People being accountable for their own performance.
 People eager to participate in and contribute to continual improvement.

Applying the principle of involvement of people typically leads to:

 People understanding the importance of their contribution and role in the

organization.
 People identifying constraints to their performance.
 People accepting ownership of problems and their responsibility for solving
them.
 People evaluating their performance against their personal goals and
objectives.
 People actively seeking opportunities to enhance their competence,
knowledge and experience.
 People freely sharing knowledge and experience.
 People openly discussing problems and issues.
ANSWER QUESTION 2 (6marks)

6core values of quality management :

1. Visionary Leadership
This value is related to how senior leaders guide the company in establishing and
disseminating corporate values, determine the direction of the company,
performance expectations, focus on customers and other stakeholders, creating a
climate of innovation, empowerment and learning. This value also related to how
companies implement Good Corporate Governance (GCG) and social responsibility,
with indicators such as fiscal accountability (internal and external), ethical behavior,
level of stakeholder confidence in corporate management, and support for key
communities.

2. Customer-Driven Excellence.
Value and customer satisfaction is influenced by many factors ranging from the
purchase experience, ownership, and services received. Quality and therefore the
company’s performance will be judged by the customer. Therefore, we must be
responsible for features and characteristics of products and services can contribute
to customer value. Therefore we focus on how markets and customers, and
knowledge of markets and customer need to be improved. This will show how we
understand the market and the customer’s voice, how we build relationships to
acquire, satisfy and retain customers, handling complaints, and develop new
opportunities. This all needs of our continually improve.

3. Focus on the Future.

This means requires an understanding of the factors of short-term and long-term

business and market influence. Clear corporate vision requires a very strong
orientation to the future and the desire to give long-term commitment to the key
parties concerned (stakeholders).
4. Valuing Employees and Partners.
The success of the company will also greatly depend on increased knowledge, skills,
creativity, and motivation of employees and their partners.

5. Agility
Success in achieving victory in this hypercompetitive market does need agility, i.e. a
capacity to be able to change quickly and flexibility. This clearly requires an
organizational structure that is simpler and more efficient in the decision making
process, in addition to also be in desperate need of competent employees who have
acquired skills through the multifunctional cross-functional training and empowered.

6. Managing for Innovation.

Companies must be managed and directed so that innovation becomes part of the
work culture and integrated into daily work. Innovation can be defined here as
significant changes to improve products, services, and processes of the organization
and create new value for stakeholders. These innovations will lead the organization
into a new dimension to our performance, and related to all significant aspects of the
organization as a whole.

7. Organizational and Personal Learning.

Organizational learning involves continuous improvement of the approaches
available and adaptation to change, leading towards new goals or new
approaches.
Learning is the only way for us to continue to improve competence. This will be
very useful to increase the value to customers, reducing errors, defects, and waste
and can raises opportunities of new business. Learning resources can be creative
ideas from employees, research and development, customer input and
dissemination practices work best, and benchmarking
ANSWER QUESTION 11(10 marks)

These steps are a good guide for establishing a timeline, schedule, and potential
costs for the process of becoming ISO 9000 certified.

1. Get top management commitment

1. Top management considers ISO 9000 registration

2. Quality steering committee meets to evaluate process
3. Committee informs top management of ISO 9000 costs, schedule, etc.
4. Top management commits to pursue ISO 9000 registration

2. Train personnel

1. Hold basic quality and ISO 9000training for all employees

2. Select and train personnel to be internal auditors

3. Prepare Quality Policy Manual

1. Study and understand ISO 9000 requirements as they apply to your company
2. Write (or re-write) company Vision and Mission statements
3. Write basic Quality Policy Manual outline
4. Complete first draft of Quality Policy Manual
5. Send copy of  manual to customer desiring ISO 9000 compliance (if
necessary)

4. Prepare Operating Procedures

1. Define responsibilities, using Quality Manual as a guide

2. Have those responsible for functions outline their procedures
3. Interview managers and fine-tune procedures
4. Compare Operating Procedures with Quality Manual for consistency

5. Hold internal audit

1. Hold internal audit of ISO 9000 manual vs. ISO 9000 compliance
2. Implement corrective action items from audit
6. Select registrar

1. Research registrars and their cost

2. Qualify possible registrars
3. Select third party registrar

7. Go through registration process

1. Apply for registration and audits

2. Agree to audit process etc. with registrar
3. Hold pre-assessment audit
4. Take any needed corrective action
5. Have ISO 9000 registration audit
6. Take any needed corrective action
7. Re-audit as needed
8. Take any needed corrective action

8. Obtain ISO 9000 registration

This verifies that you operate your business in compliance to the ISO 9000
requirements.
ANSWER QUESTION 10 (14MARKS)

 The Six Sigma methodology follows the Define, Measure, Analyze, Improve,
Control (DMAIC) roadmap for process improvement.

DMAIC in six sigma like the fiuger below:

DMAIC Phase Steps Tools Used

D - Define Phase: Define the project goals and customer (internal and external)
deliverables.

 Define Customers and

Requirements (CTQs)  Project Charter
 Develop Problem Statement,  Process Flowchart
Goals and Benefits
 SIPOC Diagram
 Identify Champion, Process Owner
 Stakeholder Analysis
and Team
 Define Resources  DMAIC Work Breakdown
 Evaluate Key Organizational Structure
Support  CTQ Definitions
 Develop Project Plan and  Voice of the Customer
Milestones Gathering
 Develop High Level Process Map
M - Measure Phase: Measure the process to determine current performance;
quantify the problem.

 Define Defect, Opportunity, Unit

and Metrics
 Detailed Process Map of
Appropriate Areas
 Develop Data Collection Plan
 Validate the Measurement System
 Collect the Data
 Begin Developing Y=f(x)
Relationship
 Determine Process Capability and
Sigma Baseline
 Process Flowchart
 Data Collection Plan/Example
 Benchmarking
 Measurement System
Analysis/Gage R&R
 Voice of the Customer
Gathering
 Process Sigma Calculation
A - Analyze Phase: Analyze and determine the root cause(s) of the defects.

 Histogram
 Pareto Chart
 Time Series/Run Chart
 Scatter Plot
 Define Performance Objectives
 Regression Analysis
 Identify Value/Non-Value Added
 Cause and Effect/Fishbone
Process Steps
Diagram
 Identify Sources of Variation
 Determine Root Cause(s)  5 Whys
 Determine Vital Few x's, Y=f(x)  Process Map Review and
Relationship Analysis
 Statistical Analysis
 Hypothesis Testing (Continuous
and Discrete)
 Non-Normal Data Analysis

I - Improve Phase: Improve the process by eliminating defects.

 Perform Design of Experiments

 Develop Potential Solutions  Brainstorming
 Define Operating Tolerances of  Mistake Proofing
Potential System  Design of Experiments
 Assess Failure Modes of Potential  Pugh Matrix
Solutions  House of Quality
 Validate Potential Improvement  Failure Modes and Effects
by Pilot Studies Analysis (FMEA)
 Correct/Re-Evaluate Potential  Simulation Software
Solution
C - Control Phase: Control future process performance.

 Define and Validate Monitoring and

Control System
 Develop Standards and Procedures
 Implement Statistical Process Control  Process Sigma Calculation
 Determine Process Capability  Control Charts (Variable
 Develop Transfer Plan, Handoff to and Attribute)
Process Owner  Cost Savings Calculations
 Verify Benefits, Cost  Control Plan
Savings/Avoidance, Profit Growth
 Close Project, Finalize Documentation
 Communicate to Business, Celebrate