WHAT IS QUALITY ? LET US UNDERSTAND

UNDERSTANDING QUALITY Dr.Juran defined Quality as FITNESS FOR USE Another dimension to Quality states FITNESS FOR PURPOSE Philip Crosby defined Quality as CONFORMANCE TO REQUIREMENT Quality as ability TO MEET STATED & IMPLIED NEEDS OF THE CUSTOMER Quality as ability to provide TOTAL SATISFACTION TO THE CUSTOMER

Deming’s 14 Point Approach Ensure Top Mgmt. Commitment to Quality improvement Cease dependence on mass inspection. Improve supervision Use statistical techniques to identify the source of fault Eliminate unnecessary requirements in work standards Drive out fear

Deming’s 14 Point Approach Create constancy of purpose for quality improvement Break communication barriers at all levels. Remove obstacles between people & their pride of work Eliminate posters & slogans, instead show ‘How to do’ End the practice of awarding business only on lowest price Improve on the job training. Establish regular re-training to update knowledge/skills Adopt the new philosophy: Unlearn, Learn and Re-learn

Deming’s wheel (P.D.C.A.) PLAN DO ACT CHECK Continual Improvement

Cost Of Quality Four major components of the Cost of Quality are:- Preventive Cost Appraisal Cost Internal Failure Cost External Failure Cost

Total Cost of Quality is the sigma of the four costs: (Prevention Cost + Appraisal Cost) Plus (Internal Failure Cost + External Failure Cost) Total Cost of Quality = Cost of Good Quality + Cost of Poor Quality  

Cost of Conformance: Prevention Costs: Costs of activities that are specifically designed to prevent poor quality such as: Cost of developing Quality Manuals & Operating Instructions Cost of imparting on- the- job Instructions & Training Cost of supervision Cost of QFD & Design Improvements

Appraisal Costs: Costs of activities designed to diagnose quality problems, such as: Inspections and testing. Failure Analysis Trouble Shooting Design reviews

Costs of Internal Failure *Rework & Bug fixing Scrap & Waste generation Interruptions & Production Losses Unproductive materials handling Sub standard components Loss of market commitments * Increase in shipment cost * Opportunity cost due to late shipment

External Failure Costs: Failure costs that arise post delivery of the Products & Services such as: Customers’ Claims for Damage & Loss Cost of servicing Customer Complaints Cost of Replacement or Repairs Loss of Brand Image & Business Increased Cost of CRM

Extended List of costs arising due to External Failures * Technical support calls * Investigation of customer complaints * Refunds and recalls* * Shipping of updated product * PR work to soften drafts of harsh reviews *Lost sales * Lost customer goodwill Discounts to resellers Warranty costs * Liability costs * Government investigations * Penalties * All other costs imposed by law

DISTRIBUTION OF QUALITY COST

Different Quality Costs TIME SAVED TOTAL COST USING QUALITY SYSTEM TOTAL COST WITH-OUT USING QUALITY SYSTEM Internal failure cost External failure cost Appraisal Cost Prevention Cost Total Cost C2 C1

Seven Quality Tools Check sheets Pareto diagram Cause and effects diagram/ Ishikawa diagram/ Fish-bone diagram Histogram Flow charts Control charts Scatter plot Let us discuss them one-by-one

Check Sheet It facilitates systematic record keeping & data collection which may be used for identification of the problem. Record of Break Downs occurring in four machines of a workshop was maintained during four shifts ( A: General, B: Morning, C: Evening & D: Night ) Check Sheet shows that the majority of break downs are occurring in Night Shift ‘D’.

EXAMPLE: Shifts Occurrence of Breakdown on Machines Total 1 2 3 4 A 8 1 2 3 4 A 8 B 13 C 9 D 17

Pareto Diagram Alfredo Pareto(1848-1923) Italian Economist found that wealth is concentrated to a few people. This led him to formulate the Pareto Principle: “That the majority of wealth is held by disproportionately small segment of the population, the principle also favors the 80-20 rule that the 80% of problems are caused by 20% of causes”. This helps the company in prioritizing and identifying causes responsible for most of the outcome in a given situation.

Production Loss occurring due to various Plant Problems Problem % of Cumulative % Annual Type Occurrence Occurrence Loss A 44 44 20 B 33 77 10 C 10 87 3 D 6 93 2.5 E 4 97 2 F 2 99 1.5 G 1 100 1

Pareto Diagram 45 75 95 35 A B C D E F G 100 Problem Type Total % Of Occurrence Problem Type

Cause & effect Diagram Kaoru Ishikawa borrowed the concept of Total Quality Control and adapted it for the Japanese. He propounded the idea of Cause & Effect Analysis to explore possible causes of an Effect (Problem) and discover the root cause. This is also known as ‘Root Cause Analysis’ ‘Ishikawa Diagram’ or ‘Fishbone Diagram’

Fish Bone or ISHIKAWA Diagram Cause & Effect Diagram Fish Bone or ISHIKAWA Diagram Causes Causes Causes Effect Method Material Men Problem Machine Money Management

Cause & Effect Diagram CAUSES EFFECT Men Material Machine Miscellaneous Measurement Method Quality Non- Conformance CAUSES EFFECT

Histogram It displays large amount of data that are difficult to interpret in their raw form. Histogram provides visual summary of data, indicating degree of variation of data with respect to the central target value. Histogram helps to identify the range of variation for initiating corrective action.

Histogram Thickness of tube Frequency 9.0 9.2 9.4 9.6 5 9.8 15 10.0 60 9.2 9.4 9.6 5 9.8 15 10.0 60 10.2 10.4

Histogram 60 15 5 9.0 9.2 9.4 9.6 9.8 10.0 10.2 10.4 Thickness of Tube Thickness of Tube Specification 10.0 + - 0.2 Frequencies 9.0 9.2 9.4 9.6 9.8 10.0 10.2 10.4 Thickness of Tube

Control Charts It is a tool used to distinguish a special cause of variation from common causes of variation. A typical control chart plots a selected quality characteristics, found from a sub group of observations, as a function of sample number (E.g. Sample Avg., Sample Range, etc.)

Control Chart UCL CL LCL

Scatter Plot It shows the relationship between two variables. They are often used as follow-ups to Cause-and-Effect analysis to determine whether a stated cause truly does impact the quality characteristic. The plot shows that sale increases as the Advertising Expenditure Increases.

Scatter Plot ….…. …… ……. Sales Advertising Expenditure

Flow Chart It shows the sequence of events in a process. START They are used for manufacturing and service operations. They can identify bottlenecks, redundant steps & non-value added activities. Flow Chart helps in BPR START PROCESS STAGE DECISION END

What is Six Sigma? Six Sigma is a statistical control limit giving to the process of execution of a job or assignment, in part or in whole, a confidence level of 99.9997%. Means chance for the process failure is only 3.4 part per million.

Incidents where you cannot afford to fail even 3.4 parts in a million. like:- Landing system of aircraft. Your own heart beat. Failure in a surgery. Testing of nuclear plant.

Defects per Million opportunities Six Sigma as a Goal Defects per Million opportunities s 308,537 2 3 4 5 6 66,807 6,210 233 3.4 . Process Capability Sigma is a statistical unit of measure which Reflects process capability.

6 DMAIC Process DMAIC = Define, Measure, Analyze, Improve and Control Institutionalize Improvement Control Deployment Quantify Financial Results Present Final Project Results and Lessons Learned Close Project Develop Charter and Business Case Map Existing Process Collect Voice of the Customer Specify CTQs / Requirements Define Measure Analyze Improve Control Select Solution (Including Trade Studies, Cost/Benefit Analysis) Design Solution Pilot Solution Implement Solution Measure CTQs / Requirements Determine Process Stability Determine Process Capability Calculate Baseline Sigma Refine Problem Statement Identify Root Causes Quantify Root Causes Verify Root Causes DMAIC = Define, Measure, Analyze, Improve and Control

SMALL GROUP ACTIVITIES FOR PRODUCTIVITY AND QUALITY IIMPROVEMENTS KAIZEN GROUPS FOR CONTINUOUS IMPROVEMENTS IN QUALITY & PRODUCTIVITY QUALITY CIRCLES FOR WORK PLACE IMPROVEMENTS 5-S TEAMS FOR GOOD HOUSE KEEPING TPM FACILITATORS FOR TOTAL PRODUCTIVE MAINTENANCE

KAIZEN GROUPS SMALL CROSS FUNCTIONAL GROUP WHICH IDENTIFIES AREAS FOR IMPROVEMENT AT THE WORKPLACE AND UNDERTAKES ACTION FOR SMALL BUT CONTINUOUS IMPROVEMENTS KAIZEN GROUP DEPLOYS 3-M APPROACH FOR IDENTIFYING AREAS FOR IMPROVEMENTS THE 3-M APPROACH COMPRISES; - MURI - MURA - MUDA

MURI Unnecessary ( Anavashyak ) : Eliminate unnecessary process or a thing which is beyond normal requirement or expectation They could be: Extra Unreasonable Irrational Undue

MURA Inconsistent ( Aniymit ) : Any thing that is Irregular or Inconsistent. It may be due to some Bottleneck or constraints in the system. Identify the Bottleneck or Constraints in respect of any of the following: MEN, MACHINE, MATERIALS & METHOD

MUDA WASTEFUL ( Upvyaykari ) : Any thing that does not add Value Overdoing Undesirable Features & Specifications Waiting Time Unnecessary Movement Excess Inventory Re-work on Rejects Defects Loss of Opportunity

QUALITY CIRCLES

What is a quality circle? Voluntary groups of employees who work on similar tasks or share an area of responsibility They agree to meet on a regular basis to discuss & solve problems related to work. They operate on the principle that employee participation in decision-making and problem-solving improves the quality of work

How do quality circles work 7- BROAD STEPS: IDENTIFY PROJECTS FOR QUALITY IMPROVEMENT IN THEIR OWN AREA OF WORK ANALYSE THE QUALITY PROBLEM USING ROOT CAUSE ANALYSIS TECHNIQUE UNDERTAKE PARETO ANALYSIS FOR IDENTIFYING MOST EFFECTIVE SOLUTION SEEK MANAGEMENT APPROVAL FOR IMPLEMENTATION OF IDENTIFIED SOLUTION ORGANISE RESOURCES FOR IMPLEMENTATION IMPLEMENT SOLUTION & MEASURE IMPROVEMENTS MOVE ON TO NEXT PROJECT FOR QUALITY IMPROVEMENT

Benefits of quality circle Team spirit development Change in the attitude Self development Improves organizational culture Other benefits

Problems with quality circles Inadequate Training Unsure of Purpose Not truly Voluntary Lack of Management Interest Quality Circles are not really empowered to make decisions.

5- S Seiso Seiketsu Shitsuke Seiri Seiton 5-S is a technique used to establish and maintain good housekeeping in an organization. 5-S is derived from the first letters of 5 Japanese words. The 5-S stands for Seiri Seiton Seiso Seiketsu Shitsuke

5 “S” SORT SEIRI SEITONE ARRANGE SEISO CLEAN SEIKETSU MAINTAIN SHITSUKE TRAIN

Seiri (Sorting-Out) Discard unwanted & Retain only wanted Implementation:-- Eliminate unwanted things like empty boxes, cans, unserviceable tools & equipments etc. Generate space for wanted & Usable items

Seiton (Arranging) IMPLEMENTATION:-- A Place for Everything & Everything in its Place IMPLEMENTATION:-- Organize space (based on function and frequency of usage) & Re-arrange things in such a manner that they can be identified easily without confusion. Display signage with names ,tags , labels etc for easy identification

Seiso (Cleaning) Clean workplace thoroughly & introduce system for periodical cleaning. IMPLEMENTATION:-- Involve team members in cleaning their respective work places. Develop a system for routine cleaning as well as thorough cleaning at regular interval Ensure dust free & spill proof environment

Seiketsu (Standardizing) Set standards for good Housekeeping & ensure their maintenance by all. IMPLEMENTATION:-- Issue specific policy guidelines for Housekeeping. Develop standard work procedures Develop checklists. Standardize the storage places.

Shitsuke (Training) Train & Discipline people to maintain Housekeeping standards IMPLEMENTATION:-- Organize refresher training periodically Conduct Surprise-Checks & 5-S Audits

CONCEPT OF TOTAL QUALITY MANAGEMENT Total Quality Management is the integration of all functions and processes within an organization for achieving continuous improvement in quality of products and services to meet customer satisfaction