MBA -V Trimester

501: TQM

Unit IV
Other tools of Quality Management – 1

Mr. Nitesh Dubey

Assistant Professor, SOM
▣ Benchmarking is comparing one's business processes and performance
metrics to industry bests and best practices from other companies.
▣ Evaluate (something) by comparison with a standard.
▣ A measurement of the quality of an organization's policies, products,
programs, strategies, etc., and their comparison with standard
measurements, or similar measurements of its peers.
▣ Robert C. Camp 1989
▣ Bachelors degree in civil engineering from
Cornell University
▣ MBA from Cornell University's Johnson
School of Management
▣ Ph.D. in logistics and operations research
from The Pennsylvania State University
▣ Supplier management system
▣ Inventory management
▣ Manufacturing system
▣ Marketing
▣ Quality
▣ Fewer customer complaints
▣ Reduction of defects
▣ Reduction in service response time
▣ Reduction in defective incoming parts
▣ Reduction in inventory costs
▣ Reduction in labor costs
▣ Reduction in billing errors
▣ Increase in customer satisfaction
▣ Increase in marketing productivity
▣ Increase in distribution productivity
▣ Increase in product reliability
1. Identify what to benchmark
2. Determine what to measure
3. Identify who to benchmark
4. Collect the data
5. Analyze the data and determine the gap
6. Set goals and develop an action plan
7. Monitor the process
▣ Select subject
▣ Define the process
▣ Identify potential partners
▣ Identify data sources
▣ Collect data and select partners
▣ Determine the gap
▣ Establish process differences
▣ Target future performance
▣ Communicate
▣ Adjust goal
▣ Implement
▣ Review and recalibrate
▣ Visit Costs - This includes hotel rooms, travel costs, meals, a token gift,
and lost labor time.
▣ Time Costs - Members of the benchmarking team will be investing time
in researching problems, finding exceptional companies to study, visits,
and implementation. This will take them away from their regular tasks
for part of each day so additional staff might be required.
▣ Benchmarking Database Costs - Organizations that institutionalize
benchmarking into their daily procedures find it is useful to create and
maintain a database of best practices and the companies associated with
each best practice now.
▣ Process benchmarking,

▣ Performance benchmarking

▣ Strategic benchmarking.
▣ Process benchmarking
▣ Financial benchmarking
▣ Benchmarking from an investor perspective
▣ Benchmarking in the public sector
▣ Performance benchmarking
▣ Product benchmarking
▣ Strategic benchmarking
▣ Functional benchmarking
▣ Best-in-class benchmarking
▣ Operational benchmarking
▣ Energy benchmarking
▣ Quality Function Deployment (QFD) is a structured approach to defining
customer needs or requirements and translating them into specific plans to
produce products to meet those needs. The “voice of the customer” is the
term to describe these stated and unstated customer needs or requirements.
Techniques and tools
based on QFD:

▣ House of Quality
▣ Mitsubishi Heavy Industries
Kobe Shipyards, 1972
▣ Toyota Minivans (1977 Base)
1979 - 20% Reduction In Start-Up Costs
1982 - 38%
1984 - 61%
▣ Dr. Clausing, Xerox, 1984
▣ Any Manufacturing Or Service Industry
▣ Two Types Of QFD Teams are formed for
New Product
Improve Existing Product
▣ Marketing, Design, Quality, Finance, Production have to work
together (i.e. for the success of QFD these departments are not
supposed to work in isolation).
▣ Customer Driven
▣ Reduces Implementation Time
▣ Promotes Teamwork
▣ Provides Documentation
▣ Creates Focus On Customer Requirements
▣ Uses Competitive Information Effectively
▣ Prioritizes Resources
▣ Identifies Items That Can Be Acted On
▣ Structures Resident Experience/Information
▣ Decreases Midstream Design Change
▣ Limits Post Introduction Problems
▣ Avoids Future Development Redundancies
▣ Identifies Future Application Opportunities
▣ Surfaces Missing Assumptions
▣ Based On Consensus
▣ Creates Communication At Interfaces
▣ Identifies Actions At Interfaces
▣ Creates Global View-Out Of Details
▣ Documents Rationale For Design
▣ Is Easy To Assimilate
▣ Adds Structure To The Information
▣ Adapts To Changes (Living Document)
▣ Provides Framework For Sensitivity Analysis
▣ Driving Force Behind QFD
Customer Dictates Attributes Of Product
▣ Customer Satisfaction
Meeting Or Exceeding Customer Expectations
Customer Expectations Can Be Vague & General In Nature
Customer Expectations Must Be Taken Literally, Not Translated Into
What The Organization Desires
▣ What Does Customer Really Want ?
▣ What Are Customer’s Expectations ?
▣ Are Customer’s Expectations Used To Drive Design Process ?
▣ What Can Design Team Do ToAchieve Customer Satisfaction?
▣ Solicited, Measurable, Routine
Customer & Market Surveys, Trade Trials
▣ Unsolicited, Measurable, Routine
Customer Complaints, Lawsuits
▣ Solicited, Subjective, Routine
Focus Groups
▣ Solicited, Subjective, Haphazard
Trade & Cus. Visits, Indep. Consultants
▣ Unsolicited, Subjective, Haphazard
Conventions, Vendors, Suppliers
 Interrelationship
between
Technical Descriptors

Technical Descriptors
(Voice of the organization)

Requirements
Requirement

Prioritized
Customer
s (Voice of
Customer)
Customer

Relationship between
the

Requirements and
Descriptors

Prioritized Technical
Descriptors
▣ List Customer Requirements (What’s)
▣ List Technical Descriptors (How’s)
▣ Develop Relationship (What’s & How’s)
▣ Develop Interrelationship (How’s)
▣ Competitive Assessments
▣ Prioritize Customer Requirements
▣ Prioritize Technical Descriptors
▣ Orderly Way Of Obtaining Information & Presenting It
▣ Shorter Product Development Cycle
▣ Considerably Reduced Start-Up Costs
▣ Fewer Engineering Changes
▣ Reduced Chance Of Oversights During Design Process
▣ Environment Of Teamwork
▣ Consensus Decisions
▣ Preserves Everything In Writing
▣ Quality by Design (QbD) is a concept first outlined by quality
expert Joseph M. Juran in publications, most notably Juran on Quality by
Design.
▣ Designing for quality and innovation is one of the three universal
processes of the Juran Trilogy, in which Juran describes what is required
to achieve breakthroughs in new products, services, and processes.
▣ Juran believed that quality could be planned, and that most quality crises
and problems relate to the way in which quality was planned.
▣ The pharmaceutical Quality by Design(QbD) is a systematic approach to
development that begins with predefined objectives and emphasizes
product and process understanding and process control, based on sound
science and quality risk management.
The Quality by Design model consists of the following steps:
▣ Establish the project design targets and goals.
▣ Define the market and customers that will be targeted.
▣ Discover the market, customers, and societal needs.
▣ Develop the features of the new design that will meet the needs.
▣ Develop or redevelop the processes to produce the features.
▣ Develop process controls to be able to transfer the new designs to
operations
▣ Integrated planning
▣ Customer-focused optimization
▣ Control over variation and transfer to operations
Evaluate the actual performance of the process
Compare actual performance with goals
Take action on the difference
▣ “group of activities intended to recognize and evaluate the potential
failures of the products and its effects. Identify actions that could
eliminate or reduce the chance of potential failures. Document the
process”
▣ Failure mode and effects analysis (FMEA)
▣ It was developed by reliability engineers in the late 1950s to study
problems that might arise from malfunctions of military systems.
▣ An FMEA is often the first step of a system reliability study.
▣ The analysis is sometimes characterized as consisting of two sub-
analyses, the first being the failure modes and effects analysis (FMEA),
and the second, the criticality analysis (CA)
▣ Functional
▣ Design
▣ Process FMEA.
▣ Control plan
▣ It provides a documented method for selecting a design with a high
probability of successful operation and safety.

▣ A documented uniform method of assessing potential failure

mechanisms, failure modes and their impact on system operation,
resulting in a list of failure modes ranked according to the seriousness
of their system impact and likelihood of occurrence.

▣ An effective method for evaluating the effect of proposed changes to

the design and/or operational procedures on mission success and safety.

▣ A basis for in-flight troubleshooting procedures and for locating

performance monitoring and fault-detection devices.
▣ Failure
▣ Failure mode
▣ Failure cause and/or mechanism
▣ Failure effect
▣ Next higher level effect
▣ End effect
▣ Detection
▣ Probability
▣ Risk Priority Number (RPN)
▣ Severity
▣ Remarks / mitigation / actions
▣ Development of system requirements that minimize the
likelihood of failures.
▣ Development of designs and test systems to ensure that
the failures have been eliminated or the risk is reduced to
acceptable level.
▣ Development and evaluation of diagnostic systems
▣ Improve the quality, reliability and safety of a product/process
▣ Improve company image and competitiveness
▣ Increase user satisfaction
▣ Reduce system development time and cost
▣ Collect information to reduce future failures, capture engineering
knowledge
▣ Reduce the potential for warranty concerns
▣ Early identification and elimination of potential failure modes
▣ Emphasize problem prevention
▣ Minimize late changes and associated cost
▣ Catalyst for teamwork and idea exchange between functions
▣ Reduce the possibility of same kind of failure in future
▣ Reduce impact on company profit margin
▣ Improve production yield
▣ Maximizes profit
▣ total productive maintenance (TPM) is a system of maintaining and
improving the integrity of production and quality systems through the
machines, equipment, processes, and employees that add business
value to an organization.
▣ TPM focuses on keeping all equipment in top working condition to
avoid breakdowns and delays in manufacturing processes.
5S Foundation

5S is a Japanese tool that become evolved by Toyota as part of their lean

production system. Additionally, It is an improvement tool for organizing &
maintaining a disciplined, clean and productive workplace. It helps to create a
better working VUCA environment, reduces waste while improving efficiency &
quality. So, 5S represents five simple practices that begin with the letter ‘S’
which are: Sort, Setting in order, Shine, Standardize, Sustain. In Japanese, these
are seiri, seiton, seiso, seiketsu, and shitsuke.
1. Autonomous Maintenance (Jishu Hozen)
Autonomous Maintenance puts the responsibility of basic maintenance
activities on the hands of the operators for cleaning, lubricating, inspecting,
and maintaining the machines and equipment they work with every day.

2. Planned Maintenance
Planned or preventive maintenance is performed on schedules that are based
on the observed behavior of machines like predicted measured equipment
failure rates. It takes into consideration the age of the machine and how much
it is utilizes which is important for quality transformation. So, The breakdown
cycle and failure is breaks by scheduling these activities around such metrics,

3. Quality Maintenance
This pillar involves monitoring machine performance to detect and prevent
equipment errors during operation. Using lean tools such autonomation
(jidoka) and andon, machines come across and record any abnormal
conditions, so releasing up the operators from the dull monitoring. When
errors happen, do a root cause analysis to identify and eliminate the problem.
4. Focused Improvement (Kobetsu Kaizen)
In this pillar, Small teams of stakeholders are made to analyze production
activities so they can identify and eliminate anything that does not add value
to the process or the final product. So, This method is to continuously improve
equipment operation to boost the process of lean transformation.

5. Early Equipment Maintenance

Design improvements are made to equipment using the experience and
knowledge gained from previous production and maintenance activities.
Working with a multitude of stakeholders such as suppliers, the corporation is
capable of hitting the floor running with highly secure and effective
equipment. So, Such an approach has a good effect on the profitability of the
company as maintenance costs are fiercely decreased in organization
transformation.
6. Education and Training
This pillar is concerned about filling the knowledge gap that exists in an
organization when it comes to total productive maintenance strategy. All
employees from senior management to operators require to trained in TPM
approaches. Lack of knowledge in the tools can result in improper
implementation leading to average results at best and failure at worst.
Without proper training, tools such as Total Productive Maintenance can be
misunderstood by the staff which can result in hilarious outcomes for the
company. Making sure that employees are trained gives the organization a
secure pool of knowledgeable staff that can drive the initiative competently.
7. Health, Safety & Environment
A safe and healthy work environment in VUCA for all employees is a
condemning aspect of TPM. This pillar of Total Productive Maintenance
ensures that all worker provides with an environment that is safe and that all
conditions that are harmful. Safe and healthy workers have better attitudes
and are more productive. Providing a safe VUCA work environment helps to
keep the workplace accident-free. The cross-functional groups will work closer
to making machines secure to apply by the operators by putting in place such
features as guards, works standards, use of personal protective equipment,
and first-aid kits in the work area.

8. TPM in Administration
TPM principles should extend beyond the production floor. Office workers,
administrators, and managers can apply TPM techniques in the office to
increase productivity and reduce waste. As these are supportive functions,
making them apprehend and observe the principles of lean in their operations
makes it easy for them to provide efficient service to the main value-creating
processes.
▣ Taguchi methods are statistical methods, or sometimes called robust
design methods, developed by Genichi Taguchi to improve
the quality of manufactured goods, and more recently also applied
to engineering, biotechnology, marketing and advertising.
▣ The Taguchi method is a standardized approach for determining the best
combination of inputs to produce a product or service.
▣ This is accomplished through design of experiments (DOE). DOE is an
important tool in the arsenal of tools available to the design and process
engineer.
▣ Taguchi Methods is a statistical methods developed largely by
GENICHI TAGUCHI to improve quality of manufactured goods.
▣ Taguchi defines Quality as “the loss imparted by the product to society
from the time the product is shipped.”

▣ LOSS = Cost to operate, Failure to function, maintenance and repair

cost, customer satisfaction, poor design.

▣ Product to be produced “being within specification”

▣ Taguchi approaches design from four perspectives: robust design,
concept design, parameter design, and tolerance design.
 Taguch’s Traditional

When a product moves There is Good or Bad

from its Target will Products only as per
cause the loss even if Limits
the product lies or not
within Limits
▣ Quality Loss Occurs when a product’s deviates from target or nominal
value.

▣ Deviation Grows, then Loss increases.

▣ Taguchi’s U-shaped loss Function Curve.

 Taguchi loss Fn

Scrap or Rework Cost.

Loss

Measured
characteristic

LTL Nominal UTL

References
uDale H. Besterfield, Carol Besterfiled-Michna, Glen H. Besterfield
and Mary Besterfield-Sacre, Total Quality Mangement, Pearson
Education.
uJoseph M. Juran and A. Blanton Grodfrey, Juran’s Quality
Handbook, McGraw Hill.
uD.D. Sharma, Total Quality Management: Principles, Practice and
Cases, Sultan.
uPeter S. Pande, Robert P. Neuman, Roland R. Cavanagh, The Six
Sigma Way, McGraw Hill.