1. © The McGraw-Hill Companies, Inc., 2004 1 7. TQM & MM

2. © The McGraw-Hill Companies, Inc., 2004 2 The frog in the pot ?

3. © The McGraw-Hill Companies, Inc., 2004 3 WHY TQM IS ESSENTIAL ? ORGANISATION GROWS, EMPLOYEE TOO GROWS. BRINGS ABOUT A CHANGE IN WORK – CULTURE RESULTS IN OPENNESS IN THE COMPANY INCREASES JOB SATISFACTION

4. © The McGraw-Hill Companies, Inc., 2004 4 BUSINESS IS LIKE RIDING A BICYCLE! EITHER YOU KEEP MOVING OR YOU FALL DOWN!!!!

5. © The McGraw-Hill Companies, Inc., 2004 5 LET US FACE TODAYS’ REALITY THE WORLD IS CHANGING FAST Concern for Human Rights Growing literate and knowledge oriented society Political Realignments Emergence of new Economic Powers Concern for Ecology Global Markets Govt.. Policy (Liberalisation) C H AO S Human Spirit of Innovators Information Age & Impact of Telecom

6. © The McGraw-Hill Companies, Inc., 2004 6 HOW CHAOS IMPACTS SOCIETY Changes in the Environment Manifested in New Behaviour of Innovators WHERE DO WE WANT TO BE ? Observation / Experiencing by Masses / Society No Impact/Wait attitude Anxiety + Reactive State Positive Restlessness + Proactive State The Common Man Implementers The Blockers - High Resistance to Change The Leaders Innovators

7. © The McGraw-Hill Companies, Inc., 2004 7 CEO MODEL FOR MANAGEMENT E MPLOYEES CEO MODEL O WNERS PROFITABLE GROWTH RETURN ON INVESTMENT C USTOMERS RELIABLE PRODUCTS & SERVICES VALUE FOR MONEY JOB SATISFACTION & GROWTH QUALITY OF LIFE ALL THE THREE ARE IMPORTANT TO ANY BUSINESS.

8. © The McGraw-Hill Companies, Inc., 2004 8 ELEMENTS OF TQM PEOPLE INVOLVEMENT APPROPRIATE PROCESS / TECHNOLOGY (COST - EFFECTIVE) PROBLEM SOLVING TOOLS / PROCEDURES (FOR ACHIEVEMENT OF QUALITY CUSTOMER SATISFACTION) CONTINUOUS IMPROVEMENT

9. © The McGraw-Hill Companies, Inc., 2004 9 TOTAL MEANS …. QUALITY OF ALL PRODUCTS & SERVICES QUALITY IN ALL FUNCTIONS & ALL INDIVIDUALS QUALITY ALL THE TIME QUALITY IN ALL ASPECTS OF DOING THE BUSINESS BODY, MIND & INTELLECT TOGETHER

10. © The McGraw-Hill Companies, Inc., 2004 10 TQM - A DEFINITION TQM is an integrated organizational approach in delighting customers (external & internal) by meeting their expectations on a continuous basis through everyone involved with the organization working on continuous improvement in all products, services and processes along with proper problem solving methodology.

11. © The McGraw-Hill Companies, Inc., 2004 11 TEI LEADERSHIP TEAM WORK CONSENSUS EMPOWERMENT TQC SERVICE CONTROL SERVICE QUALITY TOOL & TECHNIQUES KAIZEN TWE IDENTIFICATION ELINIMATION VALUE CHAIN METHODS CUSTOMER SATISFACTION CONTINUOUS IMPROVEMENT TOTAL QUALITY MANAGEMENT WORLD CLASS STRATEGY

12. © The McGraw-Hill Companies, Inc., 2004 12 Total Waste Elimination [TWE]

13. © The McGraw-Hill Companies, Inc., 2004 13 COST SUBTRACTION PRINCIPLE 1. COST + PROFIT = PRICE (STATUS QUO) 2. PRICE - COST = PROFIT (SUBSTRACTION PRINCIPLE 1) 3. PRICE - PROFIT = COST (SUBSTRACTION PRINCIPLE 2)

14. © The McGraw-Hill Companies, Inc., 2004 14 TARGET IS LOWEST COST & THE CONSTRAINTS ARE PRICE / QUALITY / PROFIT / DELIVERY WASTE - ELIMINATION IS TODAY’S SOLUTION TO FAST CHANGING ENVIRONMENT

15. © The McGraw-Hill Companies, Inc., 2004 15 DEFINITION OF WASTE Toyota defines waste as “anything other than the minimum amount of equipment, material, parts and working time absolutely essential to production”. The Americans define it as “anything other than the absolute minimum resource of industrial machines, manpower required to add value to the product”. Absolute minimum resources mean, for example One supplier No people, equipment, or space dedicated to rework No safety stock No excess lead times No people doing jobs that do not add value

16. © The McGraw-Hill Companies, Inc., 2004 16 SEVEN DEADLY SINS, ACCORDING TO TOYOTA 1.Waste is processing that does not add value to the product. (Ex.: Inspection,testing, clearing, sorting, counting, packaging) 2.All inventory is waste. {Ex. : Stock, work-in-progress inventory) 3.All over-production is waste. (Ex. : Production exceeding demand.) 4.Transportation is waste.(Ex.:logistics, product movement, shipping etc.) 5.Unneeded motion is waste. (Ex. :unnecessary steps, walking) 6.Waiting and delays are waste. {Ex. :machine downtime, too much test time, unavailability of parts.) 7.Defective product is a waste. It costs 5 times more to get a new customer than it does to keep a current customer.

17. © The McGraw-Hill Companies, Inc., 2004 17 9 WASTES IN OPERATIONAL ENVIRONMENT EXCESS OF HUMAN RESOURCES OVER PRODUCTION WAITING MATERIAL MOVEMENT AND HANDLING INSPECTION & TESTING STARTUP & SET UP DOWN TIME LOW QUALITY INVENTOR Y

18. © The McGraw-Hill Companies, Inc., 2004 18 HOUSE KEEPING VISUAL CONTROL JIDOKA / ANDON / POKAYOKE TOTAL PRODUCTIVE MAINTENANCE [TPM] SET-UP TIME REDUCTION [SMED- Single minute exchange of die] DEMAND PULL + KANBAN HANDLING / TRANSPORTATION / LOGISTICS SCHEDULING BUSINESS PROCESS REENGINEERING CYCLE TIME REDUCTION AND TOTAL SUPPLIER PARTNERSHIP TWE METHODS

19. © The McGraw-Hill Companies, Inc., 2004 19 HOUSE KEEPING House Keeping is a process where in everyone in the company is committed and involved in upkeep of the work place and cleanliness of M/c, Material & Information etc., that only needed material and information is kept and fastest accessibility is ensured. WHAT IS HOUSE KEEPING ? Systematic approach to a better workplace. Involves arrangement, cleanliness, discipline& maintenance of standards. Assigns a place for everything and ensures everything is in its place. Is everybody’s responsibility. Is the starting point of any improvement activity. Means easy retrieval of information.

20. © The McGraw-Hill Companies, Inc., 2004 20 PRINCIPLES OF HOUSE KEEPING “5S” SEGREGATION (SEIR) ARRANGEMENT (SEITON) CLEANLINESS (SEISO) MAINTENANCE OF STANDARDS (SEIKETSU) DISCIPLINE (SHITSUKE)

21. © The McGraw-Hill Companies, Inc., 2004 21 HOUSE KEEPING - 6 ‘S’s. (Indianised!) 1. SORT IN / SORT OUT - Segregate 2. SET LIMITS - Arrange properly 3. SHARE - The Information 4. SHINE - Cleanliness 5. STANDARDISE 6. SELF-DISCIPLINE

22. © The McGraw-Hill Companies, Inc., 2004 22 WHAT IS VISUAL CONTROL ? VISUAL CONTROL COMMUNICATES REQUIRED IMPORTANT INFORMATION TO PEOPLE WHO NEED IT IT GRABS ONE OR MORE OF OUR SENSES IN ORDER TO: ALERT US TO AN ABNORMALITY HELP US RECOVER QUICKLY PROMOTE ADHERENCE AND PREVENTION ENABLE SUCCESSFUL SELF MANAGEMENT A VISUAL CONTROL REDUCES ERRORS AND WASTE BY MAKING PROBLEMS VISIBLE. IT IDENTIFIES THE GAP BETWEEN THE STANDARD AND ACTUAL PERFORMANCE AND TELLS US HOW TO RESPOND.

23. © The McGraw-Hill Companies, Inc., 2004 23 JIDOKA Reducing dependence of Human presence/supervision Evolution toward jidoka [automation] Old Days : Operator handles a large part of the work Operator watches machine most of the time Pre-Jidoka

24. © The McGraw-Hill Companies, Inc., 2004 24 ANDON [TROUBLE LIGHT] JIDOKA : OBSOLETE OPERATOR IS ASSIGNED TO A GREATER CHALLENGE AUTOMATIC FEED AUTOMATIC EJECTION

25. © The McGraw-Hill Companies, Inc., 2004 25 ANDON INDICATION TO STOP WORK / LINE OPERATION IN CASE OF ANY PROBLEM

26. © The McGraw-Hill Companies, Inc., 2004 26 EXAMPLES OF ANDON 1. FIRE ALARM IN AN OFFICE 2. THEFT ALARM IN A BANK 3. MACHINE BREAK DOWN SIGNAL SYSTEM 4. MATERIAL SHORTAGE SIGNAL FROM THE ASSEMBLY LINE

27. © The McGraw-Hill Companies, Inc., 2004 27 WHAT IS MISTAKE PROOFING (POKA-YOKE)? HUMAN ERRORS ARE USUALLY INADVERTENT POKA-YOKE DEVICES HELP TO AVOID ERRORS AND REDUCE DEFECTS POKA-YOKE HELPS BUILD QUALITY INTO THE PROCESSES POKA-YOKE Zero Defects YOUKEERU : TO AVOID POKA : INADVERTENT ERRORS POKA-YOKE IS A TECHNIQUE FOR AVOIDING SIMPLE HUMAN ERRORS AT WORK. BY TAKING OVER REPETITIVE TASKS OR ACTIONS THAT DEPEND ON VIGILANCE OR MEMORY, POKA-YOKE CAN FREE A WORKER’S TIME AND MIND TO PURSUE MORE CREATIVE AND VALUE ADDING ACTIVITIES.

28. © The McGraw-Hill Companies, Inc., 2004 28 POKA - YOKE 1 2 3 4 5 6 7 FILES IN PROPER ORDER 1 2 3 4 5 6 7 FILES NOT IN PROPER ORDER

29. © The McGraw-Hill Companies, Inc., 2004 29 TOTAL PRODUCTIVE MAINTENANCE

30. © The McGraw-Hill Companies, Inc., 2004 30 SIX BIG LOSSES IN EQUIPMENT 1. BREAKDOWN DUE TO EQUIPMENT FAILURE 2. SETUP AND ADJUSTMENT 3. IDLING AND MINOR STOPPAGES 4. REDUCED SPEED 5. DEFECTS IN PROCESS AND REWORK 6. STARTUP LOSS YIELD OVERALL EQUIPMENT EFFECTIVENESS = AVAILBILITY X PERFORMANCE RATE X QUALITY RATE

31. © The McGraw-Hill Companies, Inc., 2004 31 TYPES OF MAINTENANCE 1. PREVENTIVE MAINTENANCE 2. PREDICTIVE MAINTENANCE

32. © The McGraw-Hill Companies, Inc., 2004 32 The End