OPERATIONS MANAGEMENT: TQM

INTRODUCTION
The word KAIZEN means continuous
improvement and was created in Japan
following the Second World War. It
is a Japanese concept for gradual
and continuous improvement.

In organizations, the system

involves all employees – from the
top management to cleaning crew.
Everyone is encouraged to come up
with suggestions for small
improvements on regular basis.
Toyota Production System
Kaizen was developed as a core element
to the revolutionary Toyota Production
System alongside Jidoka and just-in-
time. The automobile manufacturer
believed developing quality systems and
continuously improving those systems
would in turn improve the quality of
their products.
TWO TYPES OF KAIZEN
GEMBA
Gemba is a Japanese term referring to the actual
place where the value is created or where work is
performed. Gemba walks are a powerful tool to help
managers meet the Kaizen objective of humanizing
the workplace and respecting the people.
TEIAN
Describes a form of improvement where people
participate to improve their own processes. This
bottom-up type of Kaizen drives a cultural
transformation because it requires everyone to
think about improvement every day, everywhere.
KAIZEN AND MANAGEMENT
Management has two major components:

01 MAINTENANCE
FUNCTION

02
Is to maintain
current IMPROVEMENT
technological,
managerial and FUNCTION Is aimed at
operating standards. improving
standards.
A manager has to act as a bridge between the senior management
and the entire workforce.

1. The role of a manager is to act as a facilitator at the workplace.

It is the duty of a manager to assist employees in implementing
TQM.

2. A manager must communicate the benefits of total quality management

to all other members of the organizations. Call employees on a
common platform and address the benefits and importance of TQM.
KAIZEN 5S FRAMEWORK
Presented by:
DELA CRUZ, LEONA MAE D.
BSBA-FM 3
PROCESS-ORIENTED
thinking mostly centers on how processes
are carried out through the assessment of
performance indicators generated by
measuring or observing the process flow

RESULT-ORIENTED
thinking basically disregards how
processes flow and work. Instead process
results/outcomes are obtained,
monitored and evaluated systematically.
PDCA CYCLE
When improving processes following are the phases:

DOING PHASE
PLANNING PHASE in the doing phase,
employee develop a solution
In this phase employees for the problems defined in
have to come up with their planning phase. Strategies
problems and queries which are devised and implemented
need to be addressed. to overcome the challenges
faced by the employees.

CHECKING PHASE
ACTING PHASE is the stage where people
actually do a comparison
in this phase employees analysis of before and after
document their results and data to confirm the
prepare themselves to address effectiveness of the processes
other problems. and measure the results.
SDCA CYCLE

The SDCA cycle ensures that the

improvements that has been done using
KAIZEN works well and improvements do not
slide back. SDCA prevents the
deterioration and therefore it is
extremely important that both the SDCA &
PDCA cycles are well established.
STANDARD IS THE BEST, SAFEST AND EASIEST WAY TO ACHIEVE AND MAINTAIN A
DEFINED QUALITY LEVEL:
Standards should be:
1. Be simple, clear and conspicuous
2. Be the best, easiest, safest way- - - - - - - > should only have one at a time
3. Preserve know – how
4. Be guide-lines that enable performance
5. measurement of tasks delegated
6. Assure quality, cost, delivery and safety
7. Show relationship between cause and effect

With Standards;
1. Management becomes possible
2. There is a basis for training
3. There is a basis for audit or diagnosis
4. Problems are prevented from recurring and control variability
Presented by:
SANTULLO, REYNALYN P.
BSBA-MM 3
PUTTING QUALITY FIRST
QUALITY COST DELIVERY
is generally looked at coming refers to bringing the
is usually customer defined
from the manufacturer's necessary quantity of products
and referred to as the
viewpoint, as a overall cost in the right place at the
perceived characteristics and
of making and selling a right time.
features of a product.
product.
 SPEAK WITH DATA
Kaizen is a problem solving process.
Since Kaizen deals with addressing problems
or limitations, every situation must be
correctly understood. Kaizen has no room for
“seat of the pants” operations. In order to
correct problems in a process, detecting the
problems is the first thing to do. Sound data
must be gathered and evaluated for Kaizen to
work for improvement. Without this data the
company will bring like a flying blind. It
will never be able to tell what is working
and what needs to be improved. Data is the
lifeblood of Kaizen.
THE NEXT PROCESS The last concept of Kaizen is that
the next process is the customer. This means

IS THE
that all workers think that next process is
the customers. So, all workers in any process
on no account pass on flawed parts or
imprecise pieces of information to those in
next process particularly when the
organization has a strong commitment to
consumer satisfaction.

Kaizen promotes the concept of

internal and external customers. Through
regarding every process in a series as a
customer of the preceding process, every stage
of production can be concentrated for a
quality results. If each internal customer is
delivered high quality goods the external
customer will have a high quality product to
purchase.
Presented by:
ROSETE, MARIA LIZEL
BSBA-FM 3
SYSTEMS
 JIT
TQM PRODUCTION
CONTROL SYSTEM

TOTAL PRODUCTIVE POLICY

MAINTENANCE DEVELOPMENT

SMALL-GROUP
SUGGESTIONS KAIZEN ACTIVITIES
SYSTEM
SYSTEM
 TQM CONTROL
TQC is a management tool for improving total
performance. TQC means organized Kaizen activities involving
everyone in a company. Managers and workers alike should be
part of a totally systemic and integrated effort towards
improving performance at every level. It is geared towards
increased customer satisfaction through satisfying such
corporate cross functional goals as a quality, cost,
scheduling, manpower development, and new product
development.
 JIT PRODUCTION
SYSTEM
Just in Time is often referred to
as Just in Time Manufacturing, Just in Time
Production, Just in Time Inventory
Management, Lean Manufacturing, Stockless
Production, or the Toyota Production System. It is
an inventory system that does away with large
stocks. Businesses can switch to an alternative
method of stock control which minimizes spending
and boosts competitiveness.

With ‘just in time,’ a company holds

virtually no stocks. Instead, it relies on the
prompt deliveries of components and raw materials.
They must arrive the moment the company requests
them.
 Elements of JIT
• Make stable and level the Master Production Schedule (MPS) with
uniform plant loading create a uniform load on all work centers
through regular daily production and mixed model assembly.

• Decrease or eliminate set up times.

• Trim down lot sizes.

• Shrink lead times.

• Preventive maintenance.

• Flexible workforce

• Oblige supplier quality assurance and execute a zero defect quality

program.
Reasons for a move from batch mode to Just-in-time (JIT)
The batch system derives
from the agricultural End up with large inventory
Batch production mentality. The batch system of unsold products and
system is the most purchase material and overload capacity, and then
inefficient way to produce in huge batches and borrow money to carry that
make products. there are many processes. inventory.
1 3 5

2 4
Difficult to meet customer
requirements, which come in This kind of production
varying orders, like varying system is based on market
volumes in varying time projection, is good when
frames and soon. there is demand.
Presented by:
ESTABILLO, DONNABEL H.
BSBA-FM 3
TOTAL PRODUCTIVE MAINTENANCE
Total productive maintenance (TPM) is the
process of using machines, equipment,
employees and supporting processes to maintain
and improve the integrity of production and
the quality of systems.

The term productive maintenance is

attributed to Nippondenso, a company
that created parts for Toyota.
However, Seiichi Nakajima is regarded
as the father of TPM because of his
numerous contributions to TPM.
Each factor has two associated losses making 6 in total,
these 6 losses are as follows:

01 Performance - running at reduced speed and minor tops

02 Availability - breakdowns and product changeover

03 Quality - start-up rejects and running rejects

THE 8 PILLARS OF TPM
The eight pillars of TPM are mostly
focused on proactive and
preventative techniques for
improving equipment reliability:

1. Focused Improvement
2. Autonomous maintenance
3. Planned Maintenance
4. Quality Maintenance
5. Cost Deployment
6. Early Equipment Management
7. Training and Education
8. Safety Health Environment
 Types of Maintenance
BREAKDOWN
MAINTENANCE
it means that people waits
until equipment fails and
repair it.
PREDICTIVE
MAINTENANCE
method in which a service life of
important part is predicted based on
inspection or diagnosis, in order to
use the parts to the limit of their
service life.
PREVENTIVE PERIODIC
MAINTENANCE MAINTENANCE
it is a daily maintenance
(cleaning, inspection, Time base maintenance (TBM)
oiling and re-tightening)
CORRECTIVE MAINTENANCE
MAINTENANCE PREVENTION
it improves equipment, and
its components so that it indicates the design of
preventive maintenance can new equipment.
be carried out reliably.
POLICY DEVELOPMENT
People follow policies, good or
bad. Therefore, the need is for
organizations in developing countries to
realize the importance of clear, well-
defined policy statements on quality,
reflecting management’s commitment and
orientation and to propagate them through
various modes, such as circulation of
documents, newsletters, training,
meetings, pledge cards and personal
contacts.
Presented by:
BASILIO, JUVY ANNE T.
BSBA-FM 3
SUGGESTION SYSTEMS
The suggestion system is an integral part of an
established management system that aims
at empowering employees and involving employees
in continuous improvement practices and nourishing
the Kaizen Mindset − a continuous improvement
attitude.
THREE STAGES OF THE SUGGESTION SYSTEM

ENCOURAGEMENT EDUCATION EFFICIENCY

management should make every
effort to help the workers
provide suggestions, no matter
how primitive, for the
betterment of the workers job
and the workshop.
management should stress
employee education so that
employees can provide better
suggestions.
after the workers are both
interested and educated,
should management be
concerned with the economic
impact of the suggestions.
BENEFITS OF A
SUGGESTION SYSTEM
1. Improve one’s own work and
the working environment
2. Engages and empowers
employees
3. Creates ownership and trust
4. Improves motivation and
morale
5. Improves customer
satisfaction
6. Improves profitability
For a suggestions system to be successful and effective,
the following factors have to be considered:

1. Formation of a suggestions committee to plan and

manage the suggestions system
2. Defining the suggestions process, including a
feedback system
3. Promoting the suggestions system
4. Evaluation system
5. Award system
6. Sustaining the suggestions system
Why suggestions system stumbles and how to avoid them:

1. Delay in approving idea

2. Complex approval process (committee).
3. Backlog o suggestions needing approval or implementation
4. Less than 99% of ideas implemented
5. Inappropriately kaizen suggestions
6. Allowing anonymous suggestions
7. Unfair rewards
8. Motivating by cash only
9. Lack of promotion and support of the Kaizen suggestion
10. Lack of timely implementation
SMALL GROUP ACTIVITIES
A kaizen includes small-group
activities-informal and voluntary groups
organized to carry out specific tasks in
a workshop environment.

Small group activity (SGA) is

also known as focused or continuous
improvement in English. SGA finds its
origin in the Japanese industry where it
is called Quality Circles. SGA is a
method for problem solving in teams by in
structurally searching for the root
causes and eliminating them.
The introduction of SGA leads to the following results:

Team building High involvement

Improved Learn how analyze

communication and solve problems
Presented by:
VALDEZ, MELODY B.
BSBA-MM 3
 Examples of KAIZEN
FORD MOTOR
COMPANY
Ford decided to focus on
implementing practices that allow
them to make their processes more
efficient and finding ways to
reduce times by slowly but
surely, correcting procedures in
ways that ensure that every
single time a process is
repeated, it is done in a more
efficient manner than before.
NESTLÉ
Lean production is focused on
finding ways to not only reduce
waste, but also in finding methods
to best use the space available, the
resources on hand and the best
utilization of talent and technology
the company has in their arsenal.
PIXAR ANIMATION
STUDIOS
Pixar applied the continuous
improvement model to reduce
the risks of expensive movie
failure by using quality
control checks and iterative
processes.
CONCLUSION
KAIZEN MINDSET
▪ Everything can and should be improved

▪ Not a single day should go by without some kind of

improvement

▪ Imagine the ideal customer experience and strive to

provide it

▪ Don’t criticize, suggest an improvement

▪ Think of how to improve it instead of why it can’t

▪ Set target and motivate yourself

▪ Don’t look for rewards

▪ Say it to yourself, I CAN DO IT!

REFERENCES:
• https://www.kaizen-news.com/introduction-to-kaizen/
• https://searcherp.techtarget.com/definition/kaizen-or-continuous-improvement
• https://www.creativesafetypublishing.com/the-concepts-of-kaizen/
• http://www.1000ventures.com/business_guide/mgmt_kaizen_relationship.html
• https://davidkigerinfo.wordpress.com/2017/06/20/the-best-examples-of-companies-using-
kaizen-in-the-real-world/