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Over-manned Flight
Source : BW, December 9, 2002
Employees/Aircraft Passenger/Emplo -India 664 153 ngapore airlines 341 441 France 277 426 mirates 267 703 tish Airway 227 573 fthansa 185 714 ited Air lines 174 953 panese Airlines 146 1589 dustry Average 162 986
Survival
You may thinking that you are on a right track, but if you keep on sitting there some one will over run you.
A Japanese saying
ACHIEVING EXCELLENCE
History of quality
1450 BC Egypt: 1750 France: Upto 1950: 1950 65 : 1965-80: Beyond 1980s: Pyramids Interchangeability Concept Quality by Inspection Quality assurance Total Quality Control Total Quality Management
What is quality ?
Quality should be aimed at the needs of the
consumer, present and future-Deming
management; if people feel important to a job, they will come to work Deming
What is quality ?
Fitness for purpose or use Juran Quality doesnt happen by accident; it
has to be planned Juran
What is quality ?
What is quality ?
The total composite product and service characteristics of marketing, engineering, manufacture and maintenance through which the product and service in use will meet the expectation by the customer Feigenbaum The Hidden factory-loss to the tune of 40 % by not getting it right the first time. Feigenbaum
What is quality ?
The totality of features and characteristics of a product or service the bear on its ability to satisfy stated or implied needs
BS 4778, (ISO 8402, 1986) Quality Vocabulary: Part 1 International Terms
Quality is
Fully meeting agreed requirement of internal and external customers at a specific cost, every time, all the time.
Basics of TQM
Customer First Thinking for customer before any action in the organization
Customers delight
TQM
Participation by all
Materials
Machine
TQM is a set of systematic activities carried out by the entire organization to effectively and efficiently achieve company objectives so as to provide products and services with a level of quality that satisfies customers at the appropriate time and price
QUALITY
Using the process of build-maintainimprove Quality, thinking in & practicing the Quality Way
MANAGEMENT
Achieving: P: PRODUCTIVITY Q: QUALITY C: COST D: DELIVERY S: SAFETY M: MORALE
Six Sigma,
OPERATIONAL
PEOPLE INVOLVEMENT
IMPROVEMENT
KAIRO Lean Enterprise Business process re-engineering {BPR} Six sigma
gh ou nts hr e kt em ea v Br pro im
n io nt ve re P
on cti rre Co
ISO system
TIME
Continuous improvement
ve ro p Im
Concern
Worst Companies
Top Middle Supervisor Worker
Concern
Maintain
Improve
Kaizen
Maintenance Concern
Customers Expectatio n
Customers Satisfaction
Customers Expectatio n
GEMBA
Management Support
Customers Satisfactio n
Quality Circles
Production Capability
Production
GEMBA
Lower Mgmt Middle Mgmt
Top Mgmt
Quality Circles
Originated in April 1962, by Dr K. Ishikawa Adopted in India by BHEL-Ramachandrapuram in 1970s. Made famous in 1982 by Sh ND Tiwari In 1983, Seminar and training programme was carried out in Vigyan Bhawan for CMDs and Sr. officials..
Quality Circles
GEMBA
Lower Mgmt Middle Mgmt
Top Mgmt
QC Circle is a small group, consisting of Gemba people-First line work place people, work towards improving and maintaining the work place.
They display creativity, make self development and promote self-actualization. Enhance Customer Satisfaction, Safety, reduce fatigue, promote productivity.
Quality Circles
GEMBA
Lower Mgmt Middle Mgmt
Top Mgmt
Higher officials, must necessarily, engage themselves in a noticeable TQM activity, relevant to other employees like Kaizen, 5S.
Give Guidance and Support.. Enhance participation of everybody. Make it evident that QC is not an addendum, but primary responsibility like other jobs. We make People before we make it products. M. Matsushita, National Panasonic
GEMBA
Lower Mgmt Middle Mgmt
Top Mgmt
Quality Circles
GEMBA
Lower Mgmt Middle Mgmt
Top Mgmt
Quality Circles
GEMBA
Lower Mgmt Middle Mgmt
Top Mgmt
Orientation of all Executives, regardless of hierarchical position (in batches, if not possible at one go) Orientation of all potential QCC members and soliciting volunteers. Each QCC must not have more than 6-8 members. There is to be facilitator for each QCC and one overall coordinator (who has a penchant for Quality, enthusiastic). Training of QCCs along with the Facilitators, spread over 4-5 months.
GEMBA
Lower Mgmt Middle Mgmt
Top Mgmt
Steering Committee (DGM etc) for review once a month, to remove any road blocks and encourage. Legitimate the effort of everybody in KRA, Organisatin Chart etc. 1/2 day in a month, may be in Professional Circles about the progress of QCCs. Presentation in different fora (Intra company, National, International).
Improvement Ideas
Japan: 24 improvement ideas in writing per employee each year U.S. : Average less than one
United Kingdom: one idea every six years India: Average 2-3 ideas per employee per annum (Nestle)
Improvement Ideas
24/72 Rule in Florida Power & Light, In 24 hours, suggestion is acknowledged by supervisor In 72 hours, employees gets a feedback on status Lunch with Head-Power Station who gives more than 10 suggestions that are considered for implementation Employees can track their suggestions and gets to know POINTS accumulated
Cost of Quality
Cost Of Quality
Cost of Conformance
Goo d Bad Ugly
Cost Of Quality
Cost of Lost Opportun ity
Lo st Exc op po eed rtu ing nit req y uir em Internal + ent External Failure
Cost of
uality
Appraisal Prevention Internal Failures External Failures
Cost of Quality%
TOTAL SALES
COQ
Cost of Quality
Profit Cost of Quality, 2030 %
Operating Cost
http://www.statgraphics.com/quality_assessment.htm
Cost of Quality
cost
defects
Time
cost
defects Time
1-10-100 Rule
Prevention:Correction:Failure
= 1:10:100
TQM Ways
Quality paradigms
Low Low Cost Quality High
Junk
Desired Quality
High
Bad Business
Quality paradigms
Low quality at low cost amounts to producing junk for which there is no place in a competitive world. Low quality at High cost amounts to the exploitation of the market and will flourish only in a protected market a phenomenon that was common before the liberalisation of the economy in many countries. It also indicates inefficiency in production.
Quality paradigms
High quality at High cost has a very small and select market catering only to the small and affluent section of society.
High quality at low cost is the most desirable combination of attributes and the best manufacturers aspire to occupy space in the fourth quadrant.
Why Quality ?
Global competition Demanding customers If you do not provide, some one else will It is an imperative for survival.
Some Facts
1. Its estimated that 80% of lost customer stop doing business with a company because of Quality problems.
2. It costs five times as much to attract a new customer as it does to keep a current one. 3. A Harvard Business School study found that a 5% decrease in customer defections resulted in profit increases ranging from 25-85% of operating earnings.
A Story
Captain Eddie Rickenbacker was president of Eastern Airlines, he demonstrated to top management the impact of poor service. Baggage handling had deteriorated badly at Eastern, and nothing he had done had improved it. So Rickenbacker called a meeting of his top managers in a hot Miami hotel with no air conditioning. When the managers checked in, Rickenbacker had the desk clerks tell them their bags would be brought to their rooms. But the bags were locked in a storage area instead. The managers arrived for the next mornings meeting mostly unshaved and in dirty clothes.
Story contd.
The baggage remained lost all that day. Finally it was delivered at 3 A.M., with hotel clerks pounding on the executives doors. On the second morning, Rickenbacker said, Now you know how the customer feels when you mishandle his luggage! (Todays Leader/Manager)
Inputs
Suppliers
Requirements
Outputs
Customers
Requirements
Rework: Rs 73.3 lakh In process inspection: 32.5 lakh Process Engg: 30.0 lakh Final Inspection:65.9 lakh Warranty returns:408.2 lakh Audit insp: 25.2 lakh Sold as seconds: 22.8 lakh
What is your comment about the various costs ? What would you recommend ?
Making a Swing
Making a Swing
Making a Swing
Making a Swing
aking a Swing
5S
Having Visual order, Organization, Cleanliness and Standardization
5 S IN EFFECT
Five 'S'
SEIRI SEITON SEISO : Sorting : Arrangement : Cleanup with inspection
Seiketsu
[Standardization] Integrating 3S into routine job
Seiri
[Sorting/organising] Distinguish needed items from unneeded items and eliminate the latter
Shitshuke
[Sustain / discipline]
Seiso
Seiton
[Set in order/ systematizing/ orderliness]
Keeping needed items in the correct place to allow for easy and immediate retrieval
Problems in Workplace
Unnecessary stock is occupying the space of workplace and use of the space becomes inconvenient. Making a detour because of unnecessary things are kept on the workshop. It takes some time to find necessary thing since many unnecessary things are kept together with necessary things.
Before
After
Problems in Workplace
Controlling necessary items are poor. Ordering those necessary items often delay and causes some problem. Too much unnecessary stock affect the cash flow of the company. Too many stocks are scrapped because of design change. The cost of controlling excess unnecessary stock is high. Because of so many unnecessary items, stock taking takes too long time.
Problems in Workplace
The location of material is only known by in charge person. Paper/documents location is only known by in charge person. The key of a tool box cannot be found.
5S Level 2
Are the raw materials & completed products stock low enough? Are the raw material kept under the condition of First In First Out is 100% sure to be followed? Are the raw materials kept under the condition of easy to take out? Are the tools and jigs kept under the condition of easy to take? Are the materials, products, tools and jigs kept under the condition of preventing from deterioration and damage? Is the space effectively used? Are the people working smoothly? Are the people following safety rules? Are documents easily to find
I S : SEIRI - SORT
"Sorting" is going through everything in work area. Keeping only what is necessary. Moving less frequently used items to a separate, common storage area. Items not in use to be discarded.
Don't keep things around just because they might be used, someday, by some body.
How to SEIRI
With all the office paperwork now easy to find, in labelled areas, and on the wall for ease of Team access, the results were dramatic! Within 4 weeks SOLAS recorded NO misplaced pieces of paperwork.
After / Before
After / Before
After / Before
2S - Seiton (Arranging)
Concept - To Arrange Parts for Ease of Use - To Arrange According to a Rational and Methodical Way
Easy to Store
Easy to Identify
Easy to Pick up
FIFO
Easy to Replenish
MDs Cabin
Secretarys Desk 7 2 9 15 12 10 8 6 13 4 5 14 3 1
In such scenario, the harder employees work, the least productive they become,. If such indications are at our office, this is the right time to go for 5s and best opportunity to improve productivity of employees.
DESIRED LAYOUT
MDs Cabin
1 2 3 4 5 6 7 8
Secretarys Desk
13 12 11 10 9
Filing Cabinets in U-Shape to have faster and easy accessibility
Desired layout to be made using all visuals, alternatives can be brainstormed with colleagues
3M
Waste Elimination
Value Added time: What the customer is willing to pay for
on Value dded time: Unnecessary motion Material handling Waiting time Rework/ scrape Unnecessary part processing Excess inventory Over Production
50%
37% 13%
89%
7 Seven wastes
1. Unnecessary Motions
2. Transportations
Other Tools
Suggestion schemes Quality circles Just in time Total Productive Maintenance Team Effort
Sources: Eero E. Karjalainen: Laatuviesti 4/99, s.26-29 Thomas Pyzdek: The Six Sigma Handbook http://www.qualitas-fennica.fi/artikkelit/sixsigma.html
Define Opportunities
1.0
Performance
Measure
2.0
3.0
Analyze Opportunity
Improve Performance
4.0
Control Performance
5.0
What is important?
What is wrong?
Champion
Q
All products, goods and services, whether for sale or not All processes; manufacturing support, business etc. All who are affected, external and internal All industries, manufacturing service, government, etc., whether for profit or not All costs that would disappear if everything were perfect.
Manufactured goods
PROCESSES
Processes directly related to manufacture of goods Clients who buy the product Manufacturing
CUSTOMER INDUSTRIES
goods
Assessment Process
(600) + & Role Modal (600) + & Best in the category 501 to 600
401 to 500
CII EXIM
600 +
AWARD
PRIZES
DEMING Winners Mahindra & Mahindra Sona Koyo Sundaram Brake linings Birla Cellulosic Hi tech Carbon
SIGNIFICANT
400-500
ACHIEVMENT
DADRI
STRONG COMMITTMENT
BUSINESS EXCELLENCE
Broad Improvement Framework 3-4 years journey for WORLD CLASS performance Dual Strategy of Internal & External Assessment Assessors Comprehensive Feedback- basis for Improvement Framework besides organizational Inputs Time bound improvement plans & implementation Developing pool of Internal Assessors Continuous Education & Training on Business Excellence Sharing & Exchange of experience with external Organizations
T Q M phase T im e p e r io d
1
F o u n d a tio n fo r Im p ro v e m e n t
2 3 4
E ffic ie n c y c u ltu re
E x c e lle n c e c u ltu re
A R EA S IM P A C 35
Ye a r 1 Ye a r 2 Ye a r 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
I n t e g r a t e d r o a d m a p
f o r T Q M i n N T P C
O & M (P ro c e s s R e s o u rc e s )
F e e d b a c k fro m C F T 's fo r S k i l l s fo r l i ste n i n g to th e 'V o i c e o f c u stoR e e rs'nagn p ro c e sse s fo r c u sto m e r re l a ti oCnusht iopm e r m fi n i d s i n te rn a l & e x te rn ael l i m i n a ti n g r o o t p ro c e ssi n g la n g u a g e d a ta m anagem ent s a t is fa c tio n c u sto m e rs c a u se s A w a re n e ss o n B E m o d e l & i n tro d u c tio n to S e l f A sse ssm e n t
U n d e r ta k e s e lf-a s s e s s m e n t a n d a c tio n p la n n in g
L e a d e rsh i p d e v e l o p m e n t p ro g ra m m e s
A ll a re a s L e a d e rs h ip S u p p o rt fu n c t io re s o u rc e s
T Q M p ro m o ti o n a n d e x p a n si o n
Mission-Vision-Values-Strategy-Outcomes/Results
MISSION Why we exist VALUES Whats important to us VISION What we want to be STRATEGY Our game plan BALANCED SCORECARD Translate, Focus and Align STRATEGIC INITIATIVES Set priorities for actions necessary to succeed TOTAL QUALITY MANAGEMENT Improve local processes EMPOWERMENT / PERSONAL OBJECTIVES Motivate employees
Satisfied SHAREHOLDERS
Delighted CUSTOMERS
Who are our targeted customers & what is our value proposition in serving them?
To satisfy our customers & share holders, at what processes must we excel ?
What capabilities, support, direction & tools do our employees require, to help them execute our strategy
Thank You
Thank you