1. WHAT IS QUALITY ?
LET US UNDERSTAND

2. 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

3. 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

4. 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

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

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

7. 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

8. 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

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

10. 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

11. 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

12. 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

13. DISTRIBUTION OF QUALITY COST

14. 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

15. 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

16. 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’.

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

18. Pareto Diagram
Alfredo Pareto( ) 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 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.

19. Production Loss occurring due to various Plant Problems
Problem % of Cumulative % Annual
Type Occurrence Occurrence Loss A B C D E F G

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

21. 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’

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

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

24. 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.

25. 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

26. 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
Frequencies
Thickness of Tube

27. 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.)

28. Control Chart
UCL CL
LCL

29. 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.

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

31. 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

32. 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 %.
Means chance for the process failure is only 3.4 part per million.

33. 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.

34. 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.

35. 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

36. 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

37. 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

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

39. 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

40. 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

41. QUALITY CIRCLES

42. 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

43. 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

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

45. 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.

46. 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

47. 5 “S” SORT SEIRI SEITONE ARRANGE SEISO CLEAN SEIKETSU MAINTAIN
SHITSUKE
TRAIN

48. 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

49. 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

50. 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

51. 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.

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

53. 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