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Faculty: J.M.Pant
Management Consultant, Trainer and Visiting Professor For any query, contact Mob: 9811030273; e-mail: jm.pant@gmail.com; jiten1@bol.net.in
J.M.Pant, Faculty
J.M.Pant, Faculty
Management responsibility Support all TQM activities Appointment of management representative Customer feedback and complaints Quality reviews Shareholder delight
Total Employee Involvement Employee delight Team work People make quality Education and Training Effective communication Internal audits Review of non conformities
J.M.Pant, Faculty
PDCA Cycle
4. Act
Institutionalize improvement; continue cycle.
1. Plan
Identify problem and develop plan for improvement.
3. Study/Check
Assess plan; is it working?
Do as planned
J.M.Pant, Faculty
How
Do Check Action
J.M.Pant, Faculty
Confirmation Of result
Standardization
7.7 Statistical process control 7.8 Problem solving tools/techniques including Seven QC tools 7.9 Benchmarking
J.M.Pant, Faculty
7. Elements of TQM 7.10 Quality Function deployment Identify customer expectations Derive measurable parameters Set standards for these
7.11
7. Elements of TQM 7.13 Institute all pervasive system ISO 9001:2000 TS 16949 ISO 14000 series, ISO 14001
7. Elements of TQM 7.15 Reduce cost of quality Internal failure External failure Appraisal Prevention 7.16 Developing a quality culture Change in mind set Being proactive
J.M.Pant, Faculty
Cost of
Financial Data
Sales Operation Costs Material Costs Overhead Costs Gen. & Admin. Costs
uality
%
50 40 30 20 10
Factory Data
Defect Reports Labor Hours Recode/Redesign Customer Complaints
J.M.Pant, Faculty
Cost of
Iceberg
uality
Bugs Returned Goods Recode Defects Warranty Costs Product Liability Missed Deadlines Complaint Handling Bad Market Reviews Poor Documentation Software Patches
J.M.Pant, Faculty
Interface Errors
Process Slowdown
Cost of
Is Cost related to Prevention of NonConformance ?
uality
PREVENTION
NO
Is Cost related to Evaluating the Conformance ?
YES
APPRAISAL
NO
Is Cost related to Non-conformance ?
YES
NO
Not a Quality Cost
Cost of
uality
APPRAISAL Unit Testing Regression Testing Automated Test Tools User Interface Reviews EXTERNAL FAILURE Returned Goods Liability Costs Help Desk Lost Sales/Market Share
Examples of Elements
PREVENTION Design Quality Progress Reviews Requirements Documentation QA Training Process Engineering
INTERNAL FAILURE Recode/Repair Labor Defect Tracking & Reports Requirement Changes Down Equipments
J.M.Pant, Faculty
Cost of
uality
Strategy Premise
The Strategy is based on the premise that:
J.M.Pant, Faculty
Cost of
uality
Appraisal Prevention
Total Sales
Cost of Quality%
TOTAL SALES
C O Q (Rs.Rs.Rs.)
J.M.Pant, Faculty
COST OF QUALITY
OPTIMUM QUALITY COST MODEL
COST/ GOOD UNIT
OPTIMAL POINT
TOTAL COST
FAILURE COSTS
100
LSL
Target
USL
J.M.Pant, Faculty
Benchmarking
How do today's business leaders sustain their competitive edge? By staying abreast of the latest, best practices and learning to apply them to every aspect of their organization. Whether you work in accounts payable, travel & entertainment, planning & budgeting, inventory management or payroll, learning about, customizing and implementing the best practices is the surest way to enhance the efficiency and effectiveness of your work.
J.M.Pant, Faculty
Benchmarking
Benchmarking concept
What are others Performance levels? How did they get there? Creative Adaptation
Breakthrough Performance
J.M.Pant, Faculty
Benchmarking
Implicit in benchmarking are two key elements: Measuring performance in numerical terms (metrics). Requires some sort of units of measure. The numbers achieved by the best in class benchmark are the target. Organization seeking improvement plots its own performance against the target. Think of measures of performance in your manufacturing unit? service unit? For HR processes?
J.M.Pant, Faculty
Benchmarking
Benchmarking requires that managers understand why their performance differs. Bench markers must develop a thorough and indepth knowledge of both their own processes and the processes of the best-in-class organization. An understanding of the differences allows the managers to organize their improvement efforts to meet the goal. Benchmarking is about setting goals and about meeting them by improving processes.
J.M.Pant, Faculty
Benchmarking Process
Decide
what to benchmark Understand current performance Plan Study others Learn from the data Use the findings
J.M.Pant, Faculty
Benchmarking Process
Decide what to benchmark Think about the critical success factors and the mission.
Which processes are causing the most trouble? Which processes contribute most to customer
satisfaction and which are not performing up to expectations? What are the competitive pressures impacting the organization the most? What processes have the most potential for differentiating our organization from the competition?
J.M.Pant, Faculty
<Example>Rating for each attribute and weighted rating to be entered in the cells for company X and the competitors
Attribute Safety
Performance
Weight
Company X
Competitor A
Competitor B
Quality
Service
Ease of Use
Reliability
J.M.Pant, Faculty
Company X
Competitor A
Competitor B
Competitive
Inferior
Types Of Benchmarking
1.
Internal
Comparison within the organization of similar activities. Data easy to obtain
2.
Competitive
Organizations survival depends on its performance relative to competition Through surveys, reports, customers, suppliers, buying customers product to take apart and test.
J.M.Pant, Faculty
Types Of Benchmarking
3.
Process.
Many processes are common across industry boundaries, and innovations from other types of organizations can be applied across industries. It is relatively easy to find organizations with world class operations through published information, suppliers and consultants. For example, processes of payroll and accounts receivable, order processing, design, logistics etc..
J.M.Pant, Faculty
Types Of Benchmarking
3.
Process.
<Examples> Southwest Airlines benchmarked turnaround
time with auto racing pit crews. Motorola looked to Dominos Pizza and Federal Express for the best ways to speed up delivery systems.
J.M.Pant, Faculty
Benchmarking Process
Competitor
Internally
J.M.Pant, Faculty
Benchmarking Process
Studying Others
Information available internally Public information Questionnaires Site visits Focus groups Panels of benchmarking partners brought together to discuss areas of mutual interest.(customers, suppliers, members of professional organizations, people with previous benchmarking activity experience, consultants).
J.M.Pant, Faculty
Benchmarking Process
Is there a gap between the organizations performance and the performance of the best-inclass organizations? What is the gap? How much is it? Why is there a gap? What does the best-in-class do differently that is better? If best-in-class practices were adopted, what would be the resulting improvement?
J.M.Pant, Faculty
Benchmarking Process
If best-in-class practices were adopted, what would be the resulting improvement? Current practices cant change the best-in-class results but changing the process can.
J.M.Pant, Faculty
Benchmarking Process
Specify tasks Sequence tasks Determine resource needs Establish task schedule Assign responsibility for each task Describe expected results Specify methods for monitoring results
J.M.Pant, Faculty
Dr Mizuno of Tokyo Institute of Technology is credited with initiating the QFD system. First application of QFD was at Mitsubishi Heavy Industries in Kobe shipyard in 1972. After 4 years implemented by Toyota in production of mini-vans. QFD introduced in U.S in 1984 by Dr Clausing of Xerox.
J.M.Pant, Faculty
compares it to all competitive information. Management can then place resources where they will be the most beneficial in improving quality.
Provides documentation
Database for future design or process improvements is
created.
Serves as a training tool for new engineers.
J.M.Pant, Faculty
QFD is a planning tool used to fulfill customer expectations. Focuses on Voice of the customer. Market research attempts to capture the voice of customer but they sometimes conflict, and lack clarity. This is where voice of the customer gets lost and voice of the organization enters.
J.M.Pant, Faculty
Voice of Customer
Solicited Quantitative Structured Unsolicited Qualitative Random Trade visits Customer visits Consultants
Focus groups Customer Complaint reports; lawsuits Customer surveys; market surveys; trade trials; customer audits; product purchase (buy back) survey
Sales force; training programs; conventions; trade journals; suppliers; academic; employees
J.M.Pant, Faculty
Voice of customer: What does the customer really want? What are the customers expectations? Are the customers expectations used to drive the design process? What can the design team do to achieve customer satisfaction?
J.M.Pant, Faculty
Voice of customer: Once the customer expectations and needs have been identified and researched, QFD team processes the information. The Affinity diagram is ideally suited for most QFD applications. QFD team:
Designing a new product Improving an existing product
J.M.Pant, Faculty
QFD team
Team members from Marketing, Design, Quality, Finance and Production. For existing product, team may have fewer members. Time commitment and inter team communication is a must. Regular team meetings. Team focus on quality management goal.
J.M.Pant, Faculty
Affinity Diagram Gathers large amount of data and organizes data into groupings based on their natural interrelationships. Used when thoughts are too widely dispersed or numerous to organize New solutions are needed Steps
Phrase the objective
Engineering changes Insufficient training Overcrowded dock Error on bill of lading Computer crashes Teams not used
Facilities
Overcrowded dock
No place for returns
People
Insufficient training
System
Computer crashes Engineering
J.M.Pant, Faculty
Prepare an affinity diagram for: Improvement of the cafetaria Reducing equipment downtime Reducing congestion on roads Making Delhi more safe Increasing literacy in India Improving quality of PG management /engineering/ medical education
J.M.Pant, Faculty
House of Quality
The primary planning tool used in QFD is the house of quality. The house of quality translates the voice of the customer into design requirements that meet specific target values and matches those against how an organization will meet those requirements.
J.M.Pant, Faculty
Technical descriptors (voice of the organization) (Voice of the customer) Customer requirements Prioritized customer requirements
Relationship between
requirements and descriptors
QFD (Fig A)
Process features Customers needs Customers Product features Customers needs Product features
Process Control features
Process features
J.M.Pant, Faculty
J.M.Pant, Faculty
Correlations entered In squares like: Strong positive, positive, Negative, Strong negative Technical requirements Paper width Paper thickness Coating thickness Tensile strength Paper color
Competitive evaluation
Importance to customer
Customer requirements
X = Us
A = Competitor A B = Competitor B ( 5 is best) 1 2 3 4 5
3 1 2 3
A B A X B B A X
J.M.Pant, Faculty
X AB
Correlations entered In squares like: Strong positive, positive, Negative, Strong negative Technical requirements Importance to customer Customer requirements Peper width Paper thickness Coating thickness Tensile strength Paper color
Competitive evaluation X = Us
A = Competitor A B = Competitor B ( 5 is best) 1 2 3 4 5
Importance weighting
3
W:mm
27
T: mm
36
microns
27
Kg per sq cm
9
Approved panel
A B A X B
Target Values
Technical evaluation
5 4 3 2 1
B X A
B A
A X B B A X A X B X B A
X AB
J.M.Pant, Faculty
Conventional
Meet specifications
High tech machines needed Even with old machines through better setting, maintenance and employee training Managers think and plan Managers guide and lead Workers think, plan and do MBO Kaizen (continuous improvement) Profit by driving task Quality is the path of profit J.M.Pant, Faculty completion