1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better quality and lower price Stay in business Provide jobs and more jobs Cost decrease because of less rework, fewer mistakes, fewer delays and snags, and better use of time and materials

2 Prof. Indrajit Mukherjee, School of Management, IIT Bombay Plan: Study current situation Do: Implement plan on trial basis Study: Determines if trial is working correctly Act: Standardize improvements

3 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Shewhart cycle DoCheck PlanAct Carry out the change (often a plot study) Plan a change or an experiment aimed at system improvement Study and analyze the results obtained. What was learned? Adobe the change or abandon it. If adopted, make sure that is leads t o permanent improvement

4 Prof. Indrajit Mukherjee, School of Management, IIT Bombay jumping from “problem” to “solution” without clear understanding and analysis Problem Solution

5 Prof. Indrajit Mukherjee, School of Management, IIT Bombay Evolution of quality standards BS ISO ISO ISO

6 Prof. Indrajit Mukherjee, School of Management, IIT Bombay Background MIL Std BS ISO 9000: 2000 CANADA FRANCE GERMANY SPAIN JAPAN USA UK + others US Military & NATO Standards International Standards Organization (ISO) Committee International Standard National Standards

7 Prof. Indrajit Mukherjee, School of Management, IIT Bombay What Is ISO 9000? ISO 9000 Series ISO 9000 : 2000 QUALITY MANAGEMENT SYSTEMS - Fundamentals and vocabulary - supersedes ISO 8402 and ISO :1994 ISO 9001: 2000 QUALITY MANAGEMENT SYSTEMS - Requirements - supersedes ISO 9001/2/3:1994 ISO 9004 : 2000 QUALITY MANAGEMENT SYSTEMS - Guidelines for improvement - supersedes ISO

8 Prof. Indrajit Mukherjee, School of Management, IIT Bombay Process Activities + Resources InputOutput Controls (e.g. procedure)

9 Prof. Indrajit Mukherjee, School of Management, IIT Bombay Process A Process D Process C Process B Input Output Controls

10 Prof. Indrajit Mukherjee, School of Management, IIT Bombay Management responsibility Measurement, analysis, improvement Resource management Product (and/or service) realization Plan Act Check Do CUSTOMERCUSTOMER REQUIREMENTSREQUIREMENTS SATISFACTIONSSATISFACTIONS CUSTOMERCUSTOMER Output Product/ Service Systemic Approach: Quality Management System for Continual Improvement

11 Prof. Indrajit Mukherjee, School of Management, IIT Bombay 3 Terms and definitions Supply chain terminology Supplier Organization Customer

12 Prof. Indrajit Mukherjee, School of Management, IIT Bombay 5.2 Customer focus Determine customer requirements Meet requirements Customer satisfaction

13 Prof. Indrajit Mukherjee, School of Management, IIT Bombay LRQADNV SFK Certif.. BMG Trada …BVQI Semko Certif. SP SWEDAC Accreditation body Certified organizations

14 Prof. Indrajit Mukherjee, School of Management, IIT Bombay 1. Brief management team 2. Prepare quality manual, policy, processes, planning 3. Prepare procedures, work instructions & records 4. Implement procedures 5. Train internal auditors 6. Conduct internal audits 7. Conduct management review 8. Preliminary assessment 9. External assessment 10. Certification Quality Policy Quality Manual QMS processes Quality Policy Procedures Work Instructs Quality Records Certification Milestones

15 Prof. Indrajit Mukherjee, School of Management, IIT Bombay ActionsMonths Prepare & approve Quality Manual Prepare &approve Procedures Prepare Documentation Implement procedures Conduct internal audit training Conduct internal audits Conduct Management Review Apply for Certification Conduct staff awareness training Receive external assessment Receive Certification How long will it take? It has been done in less than 6 months… It has taken longer than 18 months… It can normally be done COMFORTABLY within 12 months SET YOUR OWN SCHEDULE - AND HOLD IT!

16 Prof. Indrajit Mukherjee, School of Management, IIT Bombay A Typical Audit Schedule for a Plant PLANT TOUR7 1 REALISATION7.4 PURCHASING8.3 CONTROL OF NONCONFORMITY PRESENTATIONS, QUESTIONS & ASSIGNMENTS7.2 CUSTOMER RELATED PROCESSES 7.5 PRODUCTION & SERVICE OPERATIONS 8.4 ANALYSIS OF DATA 4. QUALITY MANAGEMENT SYSTEMS 8.5 IMPROVEMENT LUNCH 5. MANAGEMENT RESPONSIBILITY 7.3 DESIGN AND OR DEVELOPMENT 7.6 CONTROL OF MEASURING & MONITORING DEVICES DOCUMENT PREPARATION 8.2 MEASURING & MONITORING REVIEW & ACTION PLANNING CONSULTING DAY1 DAY2 DAY3 DAY

17 Prof. Indrajit Mukherjee, School of Management, IIT Bombay Specific to: 3 Companies Automotive Focus ISO A tool for any type of business QS A tool for doing business with: Ford GM Chrysler QS 9000 Non-Specific: Any Industry Any Product

18 Prof. Indrajit Mukherjee, School of Management, IIT Bombay List of Main QS 9000 Elements 4.1Management Responsibility 4.2Quality System 4.3Contract Review 4.4Design Control 4.5Document and Data Control 4.6Purchasing 4.7Control of Customer-Supplied Product 4.8Product Identification and Traceability 4.9Process Control 4.10Inspection and Testing 4.11Control of Inspection, Measuring and Test Equipment 4.12Inspection and Test Status 4.13Control of Non-Conforming Product 4.14Corrective and Preventive Action 4.15Handling Storage Packaging Preservation and Delivery 4.16Control of Quality Records 4.17Internal Quality Audits 4.18Training 4.19Servicing 4.20Statistical Techniques

19 Prof. Indrajit Mukherjee, School of Management, IIT Bombay PDCA Cycle Do Test working the plan Check Is the plan Test working 1.Plan Identify the improvement and make a plan Act Implement the plan

20 Prof. Indrajit Mukherjee, School of Management, IIT Bombay Do Check Plan Act Continual improvement Deming’s wheel (P.D.C.A.) ISO 9000 Continual Improvement

21 Prof. Indrajit Mukherjee, School of Management, IIT Bombay Customer driven master plan D C PA P=Plan D=Do C=Check A=Act Time Continuous improvement Standardize (ISO 9000) The potential role and real position of ISO in TQM continual improvement processes

22 Prof. Indrajit Mukherjee, School of Management, IIT Bombay Management responsibility Measurement, analysis, improvement Resource management Product (and/or service) realization Plan Act Check Do CLIENTCLIENT REQUIREMENTSREQUIREMENTS SATISFACTIONSSATISFACTIONS CLIENTCLIENT Output Product/ Service Systemic approach The 8 principles of TQM … Continual improvement of the Quality Management System