Factors for Strength in a Sustainable

Leading Manufacturing Enterprise

DMAIC for Operational Excellence
Prerequisites for Competitiveness (Built-in Capability)
1. Technology (Practical; critical to performance and
quality ) Conditions for Operational Excellence (On-going)
2. Knowledge (Fundamental; driver of successful • D Direction
innovation)
• M Management
3. Capital (Operational; needed for existence and
expansion) • A Analytics
4. Experience (Differentiating; essential for • I Innovation
superiority) • C Customers
5. Manpower (Performing; sustainer of excellence)
 “QUALITY GURUS”

Joseph M. Juran (1904-2008) W. Edwards Deming (1900-1993)

• Quality Control Handbook • 14 points for management:
• “Quality is fitness for use” Quality, Productivity and
• Quality is about management, Competitive Position
human beings, and human • The red bean experiment:
interaction (int and ext customers) only way to improve a
• All problems essentially had a root cause: mostly resistance to product or service is to
change or cultural resistance improve the system
• Introduced the Pareto principle (or 80-20 rule) to industry, • The funnel experiment: importance
suggesting that 80 percent of known problems come from 20
percent of causes; thus management should concentrate on of understanding variation
the 20 percent • The Deming cycle: Plan-Do-Study-Act (Shewhart cycle:
• Quality trilogy (1986): Planning, Improvement, and Control P-D-C-A) for continuous improvement
 Walter A. Shewhart (1891-1967)
• Recognized as the father of
statistical quality control; put
statistical theory to work:
P-D-C-A Shewhart Cycle
• Control charts – separating
systematic variation (calling
for action) from random
variation (or, special causes vs common causes)
• Successfully combined the disciplines of statistics,
engineering, and economics to address practical needs
Bill Crosby (1926-2001)
• “Zero defects”
• “Do it right the first time”
• “Quality is free”
• Long-term employee participation
• Not short-lived motivational tactics
• Relevance today: fast, brief communication – social
network “comments”; media “sound bites”;
changing life styles and patterns of product use as
well as social interactions tend to lead to transient
and shallow thoughts, processes and products
Armand V Feigenbaum (1922- )
• Total quality control –
Total quality management (TQM)
• “Control quality at its source”
• TQM approach: Long-term success
through customer satisfaction
• TQM effort: All members of an organization
participate in improving processes, products, services,
as well as the culture in which they work
Kaoru Ishikawa (1915-1989)
• Ishikawa (aka fishbone diagram):
brainstorming possible
cause-and-effect linkages for
problem solving
• Quality Circle (QC) movement –
spreading since 1962; taps on people who know
their process best
• “Failure is the seed of success”
• Instrumental in creating a post-WWII strategy for
Japanese quality
Genichi Taguchi (1920-2012) Kano’s Quality Model
• Quality is measured by
“Loss to society” which
increase with variation
• Performance of a product or
processes is improved when
variation is reduced
• Improvements are effective when they are made
upstream, i.e. at the design stage
• Instead of removing variance-causing noise, which
could be impossible or expensive, “Robust Design”
methodologies should be applied to reduce the
sensitivity to noise during the generation and use
of a product and process

THE KANO MODEL OF “SATISFACTION”

Juran’s 10 Points
for

Quality
Improvement
1. Build awareness of need and
opportunity for improvement:-
2. Set goals for improvement
 Realize that all processes are improvable
 Taking an example of mistakes published in a  Establish specific goals to be reached
newspaper they made the previous day… Juran said
that they should:  Establish plans for reaching the goals
• Survey the staff, asking them why the mistakes
were made  Assign clear responsibility for meeting
• After a week, select the top ten reasons
• Decide how to make sure those mistake-causing the goals
steps aren't repeated
• Keep track of the number of mistakes being made,  Base the rewards on results achieved
to make sure they are decreasing
 Now a quality improvement program has just been
created!

3. Organize to reach your goals 4. Provide training

 Any company should realize how important
 Establish quality council education and training are

 Identify problems  The concepts, methods and tools for modern

quality management could be new for many
 Select projects
members of the company -- managers,
 Appoint teams
professionals and workforce
 Designate facilitators
 The investment in education and training is high,
but the rewards are great
5. Carry out projects to solve problems 6. Report progress
 Large improvements are usually the result of
 Importance here is on the progress expected
interdepartmental or even cross-functional quality
and the actual progress achieved
improvement teams
 Necessary actions to improve the status can be
 These teams tackle the chronic problems that have
initiated to reduce the variance. Information
been in the way of company progress for a long time
on the progress also provides the management
 These are the vital few problems that create the
the confidence on the Improvement activity
breakthroughs in quality by reducing waste and
and further support if required
improving customer satisfaction dramatically

7. Give recognition 8. Communicate result

 Recognition is a means of providing morale to both those
involved in the improvement activity and all others in an
organization
 This is an important activity to be done by the management
as improvements provide a change for betterment resulting
in savings to the company and at times, the improvements
are made possible against lot of criticisms
 Recognition rejuvenates the spirits and makes it possible for
improvement areas in other spheres
 Lesson learnt during the improvement
process requires to be shared to create an
awareness of the approach taken and the
possibility to learn and improve further
 It also provides an outlook for people in
other areas to the basis for triggering
similar improvements in their areas

9. Keep score
 A Company’s goals are achieved step-by-step
 Each step taking it nearer to the targeted goals
 Further steps to be taken shall involve an
action based on the lesson in the previous
steps
 Tracking the progress and measuring it
provides the management the leverage to
control the process
10. Maintain momentum by making
annual improvement part of the regular
process of the company
 Actions taken in the above steps shall involve
the people and sustaining their involvement
in improvement activity is a must to achieve
the long-term organizational goals and to
remain competitive
 This approach is very many people oriented
and it places a strong emphasis upon
teamwork and a project - based approach

Summary Juran’s Quality Trilogy

1. Build awareness

2. Set goals for improvement

3. Organize to reach goals

Quality Quality
4. Provide training
Planning Control
5. Carry out projects to solve problems

6. Report progress

7. Give recognition
Quality
8. Communicate result
Improvement
9. Keep score

10. Maintain momentum

 DEMING’S 14 POINTS

W. Edwards
Deming

Point 1: Create a Vision and Demonstrate

Commitment
• An organization must define its values, mission, and
vision of the future to provide long-term direction
for its management and employees.
• Businesses should not exist simply for profit; they
are social entities whose basic purpose is to serve
their customers and employees.
Point 2: Learn the New Philosophy
• Companies must take a customer-driven approach
based on mutual cooperation between labor and
management and a never-ending cycle of
improvement.

Point 3: Understand Inspection
• Inspection - the principal means of quality control.
• Routine inspection acknowledges that defects are
present, but does not add value to the product.
• Inspection should be used as an information-gathering
tool for improvement, not as a means of “assuring”
quality or blaming workers.
Point 5: Improve Constantly and Forever
• Improved design of goods and services comes from understanding
customer needs and continual market surveys and other sources of
feedback, and from understanding the manufacturing and service
delivery process.
• Improvements in operations are achieved by reducing the causes
and impacts of variation, and engaging all employees to innovate
and seek ways of doing their jobs more efficiently and effectively.
• Deming chain reaction: When quality improves, productivity
improves and costs decrease.
• Continuous improvement
Point 4: Stop Making Decisions Purely on
the Basis of Cost
• The supplier and manufacturer must be considered as a
macro organization.
• Deming urged businesses to establish long-term
relationships with fewer suppliers, leading to loyalty
and opportunities for mutual improvement.
• Supply Chain Management (SCM) focuses heavily on a
system’s view of the supply chain with the objective of
minimizing total supply chain costs and developing
stronger partnerships with suppliers.
Point 6: Institute Training
• Training
- results in improvements in quality and
productivity
- adds to worker morale
- demonstrates to workers that the company is
dedicated to helping them and investing in the
future
Point 7: Institute Leadership
• The job of management is leadership, not
supervision.
Supervision – simply overseeing and directing work
Leadership – providing guidance to help employees
do their hobs with less effort.
Point 9: Optimize the Efforts of Teams
• Teamwork helps to break down barriers between
departments and individuals.
Barriers between functional areas occur occurs when
managers fear they might lose power.
• Lack of cooperation leads to poor quality.
Point 8: Drive Out Fear
• Fear is manifasted in many ways: fear of reprisal,
fear of failure, fear of the unknown, fear of
relinquishing control, and fear of change.
• Fear encourages short-term thinking
• Fear is a cultural issue for all organizations
Point 10: Eliminate Exhortations
• Motivational approaches overlook the major source
of many problems – the system
• Causes of variation stemming from the design of
the system are management’s problem, not the
workers’
Point 11: Enumerate Numerical Quotas and
Management by Objective (MBO)
• Many organizations manage by the numbers.
• Goals are useful, but numerical goals set for others
without incorporating a method to reach the goal
generate frustration and resentment.
• Management must understand the system and
continually try to improve it, rather than focus on
short-term goals.
Point 13: Encourage Education and Self-
Improvement
• Continuing, broad education for self-improvement
• Organizations must invest in their people at all
levels to ensure success in the long term
• Developing the worth of the individual is a
powerful motivation method
Point 12: Remove Barriers to Pride in
Workmanship
• Deming believed that one of the biggest barriers to
pride in workmanship is performance appraisal
Performance appraisal destroys teamwork by promoting competition for
limited resources, fosters mediocrity because objectives typically are
driven by numbers and what the boss wants rather than by quality,
focuses on the short term and discourages risk taking, and confounds
the “people resources” with other resources.
• Three categories of performance:
Majority of performances that are within the system
Performances outside the system on the superior side
Performances outside the system on the inferior side
Point 14: Take Action
• Any culture change begins with top management
and includes everyone
• Team-based approach
The Deming Circle
(control and continuous improvement of process and product)
Circle for Quality

Feigenbaum’s 3 – Step
Philosophy
STEP 1 Quality Leadership
Management should take the lead in enforcing quality efforts.
It should be based on sound planning.

Armand
Feigenbaum
 Feigenbaum’s 3 – Step
Philosophy
STEP 2 Management Quality Technology
The traditional quality programs should be replaced by the
latest quality technology for satisfying the customers in future.
Feigenbaum’s 3 – Step
Philosophy
STEP 3 Organizational Commitment
Motivation and continuous training of the total work force tells
about the organizational commitment towards the
improvement of the quality of the product and the services.

Believed that
…
 importance of adapting management processes to create
profitable situations for both businesses and consumers,
promoting the utilization of control charts
 lack of information greatly hampered the efforts of control
and management processes in a production environment

WALTER
SHEWHART
Eugene grant

STATISTICAL Benefits of Statistical

QUALITY CONTROL Quality Control
 used in training programs to improve quality and
production in World War II industrial plants
 It provides a means of detecting error at
inspection.
 used to analyze the quality problems and solve them
 It leads to more uniform quality of
 use of statistical methods in the monitoring and production.
maintaining of the quality of products and services
 It improves the relationship with the
customer.
 It reduces inspection costs.
 It reduces the number of rejects and saves
the cost of material.
 Benefits of Statistical
Quality Control
• Control

 It provides a basis for attainable specifications.

 It points out the bottlenecks and trouble spots. Philip Crosby
 It provides a means of determining the capability of the manufacturing
process.
 It promotes the understanding and appreciation of quality
• control.

Quality is …. Four Absolutes of Quality

1. The definition of quality is conformance to requirements
 Quality Is Free.
(not as goodness)
 Doing it right the first time (DIRFT)
2. The system of quality is prevention (not appraisal)
 Zero defect
3. The performance standard is zero defects (not “that’s
close enough”)
4. The measurement of quality is the price of
nonconformance (not indexes)
 Fishbone Diagram
(cause and effect)

Kaoru Ishikawa

Ishikawa Diagram Example 1 Ishikawa Diagram Example 2

 Circle for Quality

Genichi Taguchi

“Quality is Loss to Society”. The Quality Loss

Function (QLF)
1. We cannot reduce cost without affecting quality.
2. We can improve quality without increasing cost.
3. We can reduce cost by improving quality.
4. We can reduce cost by reducing variation. When we do
so, performance and quality will automatically improve.
Taguchi’s
Methods
1. System Design Stage – customer and marketing
knowledge
2. Parameter Stage - how the product should perform

3.
against defined parameters
Tolerance design stage - finding the balance between
Liu Yuan Zhang
manufacturing cost and loss

Kano’s Quality Model

Noriaki Kano
 Best known for
…

Bill smith

Six Sigma

 management driven, scientific methodology for product

and process improvement in financial performance and

END
Customer satisfaction
 increase in performance and decrease in process variation
lead to defect reduction and improvement in profits,
employee morale and quality of product

Quality Gurus