Unit 2 Principles and Philosophies of Quality Management 1

Guru’s of TQM NAME: Walter A Shewhart, Nick Name: Grand Father of TQM Qualification: PhD Holder western electric & Bell telephone Labs Contributions to TQM: Developed control charts theories with control limits, assignable & chances of variation, and rational subgroups and lastly PDSA cycle for learning and improvement. 2

Guru’s of TQM NAME: W. Edwards Deming, Nick Name: Deming Qualifications: PhD holder, Scholar and Philosopher Contributions to TQM: 14 points provides theory for management to improve quality, productivity and competitive positions. He has authored many books including out of the crisis and Quality, Productivity, and competitive positions 3

Guru’s of TQM NAME: Joseph M Juran, Nick Name: Juran Qualifications: PhD holder, Western Electric Contributions to TQM: Efforts on Quality involvement in all levels & sectors of Management, The Juran’s Trilogy & published the book titled Juran’s Quality control Hand book 4

Guru’s of TQM NAME: Armand V Feigenbaum, Nick Name: Feigenbaum Qualifications: PhD holder, & Philosopher Contributions to TQM: Total Quality Control is necessary for productivity, market penetration and competitive advantage. Employee involvement, supervision leadership & company wide quality control. He published book titled Total Quality Control. 5

Guru’s of TQM NAME: Kaoru Ishikawa Nick Name: Ishikawa Qualifications: PhD holder, Applied scholar Contributions to TQM: Authored SPC texts in Japanese and English. Developed Cause & Effect diagram, which is called Ishikawa diagram. Also developed quality circle concept. 6

Guru’s of the TQM NAME: Philip B Crosby Nick Name: Crosby Qualifications: No Idea Contributions to TQM: Authored the book titled “ Quality is free” & translated to 15 languages. He argued that “ do it right the first time”. He again authored titled known as Quality without tears which has 4 absolutes. And they are Quality is conformance to requirements Prevention of nonconformance is objective not appraisal The performance standard is zero defects not “ that’s close enough” &Measurement of quality is the cost of nonconformance 7

Deming’s Philosophy According to Deming's definition Quality is the predictable degree of uniformity and dependability, at low cost and suited to the market. As per his teaching 96% of the variations have common causes and 4% has special variations. 8

Deming’s Philosophy He viewed that statistic has management tool and relied on SPC as mean of variations in a process. Deming’s chain reaction: As quality improves, cost decreases and productivity increase resulting in more jobs, greater market share and long term survival. 9

Deming’s Philosophy 14 principles are listed below: 1.Create consistency of purpose with the plan 2.Adopt the new philosophy of quality 3.Stop dependence on mass production 4.End the practice of choosing the suppliers based solely on price 10

Deming’s Philosophy 5.Identify the problems and work continuously to improve the system 6.Adopt modern methods of training on the job 7.Changes the focus from production number (Quantity to Quality) 8.Drive out fear, create trust and create a environment for individuals 9.Break down the barriers between the department & Individual 11

Deming’s Philosophy 10.Stop requesting improved productivity without providing methods to achieve the same 11.Eliminate work standards that prescribe numerical quotas 12.Remove barrier to pride of workmanship 13.Institute vigorous education and retraining 14.Create a structure in top management that will emphasize on the proceeding above thirteen points every day. 12

To memorize these principles CASE Internal Assessment CD Bus Stop ERICson 13

PDSA/PDCA Cycle The basic Plan-Do-Study-Act was first developed by Shewhart and modified by Deming. It is an effective improvement technique. Later it was known Problem -Solving Technique. The PDSA Cycle 14

Problem- Solving Method It is the extension of PDSA/PDCA Cycle with scientific adaption/ approach which yield great results, but in this method there are 7 phases and all are integrated upon the previous phase. These phase are the framework of the objectives. 15

Problem-Solving Method Plan DoStudy Act 1) Identify the opportunity 2) Analyze the process 3) Develop the optimal Opportunity 4) Implement5) Study the Results 6) Standardization the solution Plan for the future 16

JURAN TRILOGY One of the best approaches developed by Dr. Joseph Juran. It has 3 components: 1.Quality Planning 2.Quality Control & 3.Quality Improvement 17

Trilogy Quality Planning: It begins with external customers, 1.Once the customers are identified 2.Their needs are discovered. 3.Develop product or service features that respond to customer needs. 4.Stabilize and optimize the product features to meet the organizational & Customer needs 18

Trilogy Quality Control: it is used by operating forces to help and meet the product, process and service requirements. It uses the feedback loop and consist of the following steps: Determine items to be controlled and their unit of measure. Set goals for the controls & determine what sensors need to be put in place to measure the product. Measure the actual performance, Compare actual performance to goals. Act on the difference. 19

Juran’s Categories of Quality costs Juran’s analytical methods could identify areas needing improvement & could help make & track changes. They were mostly Shop floor problems, he advocated a cost of quality accounting system to make understand Top level management and they were four distinct types. Internal Failure Cost External Failure Cost Appraisal Cost Prevention Cost 20

Internal Failure Cost: Scrap, Rework, Retest, Downtime, Yield losses and Disposition. External Failure Cost: Complaint adjustment, Returned Material, Warranty Charges and Allowance. Appraisal Cost: Incoming material inspection, Inspection & Test, Maintaining accuracy of test equipment, Material & Service consumed and Evaluation of Stocks Prevention Cost: Quality Planning, New product review, training, process cost, data acquisition & analysis, reporting and Improvement projects. 21

Minimizing the Cost of quality 22 COQ not only provided Management with a rupee cost for defective product, it also established the goal of quality programmes to keep improving quality. 2 assumptions were made and they are – Failure cost approached zero as defect became fewer and fewer. – Prevention and Appraisal together approach infinity as defects to lower to lower levels

Internal + External Failure Costs Total Quality Cost To.... To…. Cost Per Good unit of Product 100% Defective100% Good Defect Rate Cost of Prevention or Appraisal Minimal Cost of quality IIIIIIIIIIII Optimal Confor mance Level

Juran’s Breakthrough Sequence: 24 Breakthrough in attitudes Identify the vital few projects/task Organize breakthrough in Knowledge Conduct the Analysis Determine how to overcome resistance to change Institute the change Institute controls

Crosby’s 14 point programme 25 Management Commitment Q Improvement Team Q Measurement Cost of Quality Evaluation Q Awareness Corrective action Zero defect Planning Supervisor Training Zero defects day Goal Setting Error cause removal Recognition Q Councils Do it all over again

Taguchi’s Loss Function 26 It is a statistical method to improve the Quality of Manufacturing goods. He has contributed to statistics are – Taguchi’s loss function – Philosophy of Off-Line Quality Control – Innovation in the Design of Experiments (DOE)

Taguchi’s Loss Function 27 It was shown that if the design intent of the target value was the value at which the design, whether product or process, functioned best, then any deviation from that value meant an incremental deterioration of performance and incurred a loss. This loss was passes to next customer (Internal or External). Ultimately both company and society face the loss in some way.

28 LL UL Parameter Customer Tolerance Limit Cost A B Customer Tolerance Limit LL UL Parameter Cost The “Good Enough” ApproachTaguchi Loss Function

Quality Circles 29 Objectives To give an opportunity to employees to use their wisdom & creativity. To reduce errors & enhance quality productivity. To encourage team spirit and cohesive culture. To promote job involvement & participation. Increase employee motivation Harness problem solving capability. To build an attitude of problem prevention. To improve communication.

Quality circles 30 To improve internal house keeping. To improve customer service. To facilitate achievement of business goals To improve & develop of the organization. To respect humanity & build happy bright work place which are meaningful to work in.

Structure 31 Top Management Steering Committee Facilitator Leader/ Deputy Leader Members Non-Members Coordinating Agency

Steps in formation Quality Circles 32 1.Head may call a staff meeting and explain the following: 1.Quality circle concept 2.Objectives of Quality circle 3.Advantages of Quality circle 2.Call for members would like to be members of quality circle. 3.May group depending upon the functions performed.

33 4.The section head may initiate the employees regarding their grouping 5.Call a meeting & declare formation quality circle. 6.Give a name of quality circle. 7.Elect leader & deputy leader. 8.Q circle is over & now consists 1.Facilitator 2.Leader 3.Members 9.The details quality circle to be reported to HR department

Structure of Quality Circle Non Qc - Members Members Leader Facilitator Co-ordinator Steering committee Top Management 34

Top Management Steering committee Co-ordinatorFacilitatorLeaderMembers Non- members Roles & Responsibilities The success of the quality circles depends solely on the attitude of the Top management and plays an important role to ensure the success of implementation of quality circles in the organization. 35

Top Manage ment Steering committ ee Co- ordinato r FacilitatorLeader Member s Non- member s Roles & Responsibilities Steering committee called middle management consists of chief executive heads of different divisions or a co-ordinator plays a positive role in quality circles activities for the success of the efforts. The meetings are conveyed at least once in one to two months interaval. 36

Top Manage ment Steering committ ee Co- ordinato r FacilitatorLeader Member s Non- member s Roles & Responsibilities Co-ordinator also acts as facilitators is an individual responsible for coordinating and directing the quality circles activities within an organization and carries out such functions as would make the operations of quality circles smooth, effective and self-sustainable. 37

Roles & Responsibilities Facilitator also acts as a catalyst, innovator, promoter and teacher and is nominated by the management. (i) Communicating with all levels of management and obtaining their support and assistance; (ii) Providing training to QCC leaders and assisting in training of QCC members where required; (iii) Maintaining an open and supportive environment; (iv) Ensuring QCC members direct their activities to work-related problems; (v) As a mediator in problem-solving; (vi) As a resource person to the Circle; and (vii) Evaluating the costs and benefits of the QCC programme and reporting to the Management. 38

Roles & Responsibilities Leader of the quality circles is chosen by the members among themselves and they may decide to have a leader by rotation since the members are the basic elements of the structure of quality circle. (i) Training members on problems-solving techniques with the assistance of the facilitator where required; (ii) Responsible for the smooth operation of QCC activities and fostering the spirit of cooperation and harmony among members; (iii) Assisting the Circle members in record keeping and in the preparation of management presentations; (iv) Conducting meetings in an orderly and effective manner; (v) Showing interest and support to the Circle; (vi) Encouraging other workers to become members; (vii) Assisting members in problem-solving; and (viii) Enforcing team discipline. 39

Roles & Responsibilities Members of the quality circles are the small group of people from the same work area or doing similar type of work whereas non-members are those who are not members of the quality circle but may be involved in the circle recommendation. (i) Attending meetings regularly; (ii) Directing their efforts towards solving work-related problems; (iii) Identifying problems, contributing ideas, undertaking research and investigation (where necessary) and assisting the QCC in problem-solving. (iv) Participating in management presentations. 40

Ford Motor Company started a problem solving process known as 8D which takes 8 Disciplines and uses them to tackle engineering problems What is 8D? 41

8 Disciplines A typical form is used for the 8D approach to problem solving 42

8D Problem Solving By taking this approach we can continuously improve quality by eliminating the causes of problems and prevent their reoccurrence. 43

What are the 8 Disciplines? 1. Define the problem. 2. Build a team. 3. Containment action. 4. Determine the root cause. 5. Verify the root cause. 6. Corrective Action. 7. Prevention. 8. Congratulate the team. 44

Do we know EXACTLY what the problem is? Have we seen the problem before? What evidence of the problem is available? D1. Define the Problem 45

D2. Build a Team Once a problem has been bought to our attention, a team must be formed to tackle the problem. Ideally, this will be a team of people with a variety of skills and knowledge related to the problem. 46

D3. Containment Action What action can be taken immediately? Do we have stocks that need sorting? Are we still manufacturing parts with the problem? Will the actions that we take cause other problems? 47

D4. Determine the Root Cause Has the cause of the problem been identified? Is there more than one cause? Did we refer to the F.M.E.A.? 48

D5. Verify the Root Cause Are we sure that the root cause has been properly identified? 49

D6. Corrective Action Has everyone been notified of the actions taken? Have we reviewed and updated the relevant F.M.E.A.? Have any temporary short term fixes been removed? 50

D7. Prevention Have we taken all actions to prevent reoccurrences? Have we considered other similar products or processes? 51

D8. Congratulate the Team Have we identified each individual team members contribution to solving the problem? Have we acknowledged and appreciated the efforts involved? 52

8D We have now seen the 8D problem solving method. You may be called upon to help solve a problem. Understanding the 8D approach will help in tackling future problems. 53