PQM :

SIX SIGMA
3 MS
PROCESS CAPABILITY
PROCESS CAPABILITY
BRAINSTORMING
ERGONOMICS
BENCHMARKING
WORK STUDY
ISO 9000
KAIZEN
JIT TECHNIQUES

Six sigma : Defn :Process focussed methodology , designed to improve

business performance through improving specific
areas of a strategic business process
understand - product & consumers
Review -consumer surveys, concession reports
Screen & prioritize -issues based on severity, frequency
Determine the internal processes causing the most pain
Find the causes & location of defects
Devise ways to address these defects effectively
Set up good measurement system

SIX SIGMA :
Improves process performance
|
Decreases variation
|
Maintains consistent quality of process output
VOICE OF SIX SIGMA :
Six sigma includes powerful techniques
a. Voice of customer- customer requirement & needs
b. Voice of process process performance & capability
c. Voice of Business business priorities & trends

ENIGMA OF SIX
SIGMA

+3

+2

+1

Six Sigma

-1

-2

-3

Six Sigma Means 3.4

Defects in 1,000,000 MOTOROLA
Six Sigma is a business concept
that answers customers demand
for high quality and Defect-free
Business process.
Six Sigma was born in Motorola and
developed by Mikel J. Harry.
Motorola won Malcolm Baldridge
Quality Award.
Six Sigma is carried out as projects
and mostly uses DMAIC method
5

Eg: Godrej -G E Assembly

Plant
Defective Components were coming
at the rate of 3,00,000 for one
Million Parts.
Applying Six Sigma saved Rs 4
Crores
Mr. Vijay Krishna, C.E.O, Godrej-G E.
Were not talking about intangible
savings here. Six Sigma has given
us the power to measure and
control costs. And that goes
6
straight to our bottom line

PROCESS CAPABILITY
Process capability is simply a measure of how good a metric is
performing against established standard(s).

Upper
Upperand
andLower
LowerStandards
Standards
(Specifications)
(Specifications)

Out of
Spec

Single
SingleStandard
Standard
(Specification)
(Specification)

Spec
Spec
(Upp
(Upp
er)
er)

Spec
Spec
(Low
(Low
er)
er)
In Spec

Out of
Spec

Spe
Spe
cc
In
Spec

Out of
Spec

Probability
Probab
ility

Probabil
ity
7

CONCEPT OF SIX SIGMA

Process
Variability

USL

Total Amount
Cp Outside Limits

Typical
Action to be
taken

2 0.67

4.56 %
(45,500 ppm)

Heavy Process
Control, Sorting
rework, Etc.

3 1.0

2700 ppm

Heavy process
Control,
Inspection

4 1.33

64 ppm

Reduced
Inspection,
Selected use of
Control Charts

LSL

CONCEPT OF SIX SIGMA

Process
Total Amount
Variability Cp Outside Limits
5 1.67

1 ppm

6 2.00

0.01ppm

USL Process LSL

Mean
9

Typical
Action to be
taken
Spot Checking,
Selected use of
Control Charts
Reduced for
Control,
Uniformity in
process inputs

Cp = Design Width / Process Width

Cp = USL LSL / UCL - LCL

SIGMA SCALE OF DEFECTS(1.5

shift)
SIGMA

DEFECT
RATE
(PPM)

COST OF
POOR
QUALITY
(% Sales)

Competitive
Level

3.4

< 10%

World Class

233

10%-15%

World Class

6,210

15%-20%

High Quality

66,807

20%-30%

Industry Average

3,08,537

30%-40%

Industry Average

6,90,000

> 40%

Non-Competitive

10

Six Sigma
Implementation
Five-phases
process

1.Establishin
g
Managemen
t

2.Informatio
n

3.Training

Gathering

Commitment

4.Developing
Monitoring
Systems
11

5.Business
Process to
Be improved

6.Conductin
g
Six Sigma
are chosen
Projects
Continuous
Improvement

DMAIC PROCESS
Measure

Define

DMAIC
Control

Analyze

Improve

12

DEFINE
Determine Bench mark

Set Baseline

Determine Customer requirements

Get Customer Commitment

Map Flow process

13

MEASURE
Develop Defect Measurement

Develop Data Collection process

Collect Data

Create Forms

Compile and Display Data

14

ANALYSE
Verify Data

Draw Conclusions From Data

Test Conclusions

Determine Improvement Opportunities

Determine Root Causes

15

IMPROVE
Create Improvement Ideas
Create Models

Experiment
Set Goals
Create Problem Statement

Create Solution Statement

Implement Improvement Methods
16

CONTROL
Monitor Improvement Progress

Measure Improvement Statistically

Assess Effectiveness

Make Needed Adjustments

17

 DMADV is the structured data driven approach for new

product design
Define Measure Analyze Design Verify
||
Reliable cost effective production of high quality products
maximizing customer production.
Verify
Define
Design Verify
Define Measure
Measure Analyze
Analyze Design
|
|
|
|
|
Define
project
scope

Identify
customer
s

Establish
fomat
project

Research
VOC

Benchmar
k

Explore
data
Design
solution
Predict
Performanc
e

Develop
detailed
design

Evaluate
pilot

Refine
predicted
performa
nce
Develop
pilot

Scale-up
design
docume
nt

efects per million opportunities

SIX SIGMA
BENCHMARKS

Restaurant Bills
Prescription writing

100K

Payroll processing
Order write-up

10K

Journal Vouchers
Wire transfer
Air baggage handling

Average
company

1K

Material lot
Rejected

10

Air flight
Fatality Rate
Best in class

Sigma(with 1.5 shift)

(0.25ppm)
7
19

Table 1: Companies And The Year They Implemented Six Sigma

Company Name

Year Began Six Sigma

Motorola (NYSE:MOT)

1986

Allied Signal (Merged

With Honeywell in
1999)

1994

GE (NYSE:GE)

1995

Honeywell (NYSE:HON)

1998

Ford (NYSE:F)

2000
20

SIX SIGMA TEAM HIERARCHY

WHO DRIVES SIX SIGMA :

Sponsor : is business executive leading the
orgn
Champions : Biz leaders leading 6 by
sponsoring projects
responsible for 6 strategy &
deployment &
vision
Process owner : Owner of the process ,
product, or service
being improved, responsible for long
term
sustainable gains
Master Black Belts : they are coach Black
Belts, expert in all

The Quality Team

Master Black Belt

Black Belt

Green Belt

--Thought
Thought Leadership
Leadership

-- Expert
Expert on
on Six
Six Sigma
Sigma
-- Mentor
Mentor Green
Green and
and Black
Black
Belts
Belts

-- Backbone
Backbone of
of Six
Six Sigma
Sigma Org
Org
Black Belt -- Mentor
Mentor Green
Green Belts
Belts
-- Full
Full time
time resource
resource
-- Deployed
Deployed to
to complex
complex or
or
high
high risk
risk projects
projects
Green Belt

Green Belt

--Part
Part time
time or
or full
full time
time

resource
resource
--Deployed
Deployed to
to less
less complex
complex
projects
projects in
in areas
areas of
of
23
functional
functional expertise
expertise

Scope of Six Sigma

Manufacturing
Service
Industries
Hospitals
Insurance
Call Centre

24

3Ms
Mura, Muri, Muda are pain areas which bring
down the efficiency.
These are wasteful activities which generate no
profit and hence should be eliminated.
These 3Ms are related to 4Ms ( Men, Machines,
Material & Methods)
3Ms are to be identified in all the 4 Ms to
eliminate it.
Mura= inconsistency ( Happens sometimes to
some people at some places)
Inconsistency exists due to difference in size,
strength, ability, value, number and rank
Stress can be reduced by uniformity in irregular
actions

Muri=strain ( bending, pushing, lifting, repetitive

actions)
Excessive physical exertion causes strain
Physical strain can be removed by using low cost
automation
Muda = wasteful activities , obstruction to
smooth flow
Activity= work + Muda
Expenditure= Cost + Waste
For every activity, there is cost associated
with it, rest is waste & should be
eliminated
Choyuki also creates waste.
Implementation of 5-S reduces the
wastage.

PROCESS CAPABILITY :
Defn : the performance of the process
over a certain period of time while it is in
statistically controlled state.
Used objectively to measure the extent to
which the process can / cannot meet the
requirements
Process must be capable of producing
quality products & satisfy customers
needs
Else improvements should be made &
contd till desired quality levels are
reached.

 Process is capable when the variable

values fall within the specification limits
( controlled variations due to assignable
causes)
Sometimes the process is incapable as it
goes beyond the specification limits due
to lack of control over non-assignable
causes.
Process Capability can be expressed
interms of index as,
Process Capability index Cp= (USLLSL)/6
Capability indices are used to determine

WORK STUDY
Defn : a technique that embraces
method study & work measurement
employed to ensure the best possible
use of human & material resources in
carrying out the specified activity.
work study involves
a.
b.
c.
d.

Method study
Work measurement
Ergonomics
incentives

is a productivity improvement tool for

men, machines, & materials

Objectives of work study are :

1. To identify the pain areas in mgt
2. To identify the effectiveness of training
3. To establish industrial engg stds
4. Planning
5. Formulation of incentive schemes
6. Achieve QCD objectives
7. Improve the productivity

WORK STUDY

1. Method study :
Is systematic recording & critical examination
of existing & proposed ways of doing work so
as to develop easier & more effective methods
of doing work
It investigates how jobs are done & how it can
be further improved.
It reduces work content
Precedes work measurement
2. Work Measurement :
Application of techniques designed to establish
the time for a qualified worker to carry out a
specific job at a defined level of performance
It establishes time stds on the basis of work
content determined by method study.

 It can be applied in any situation where work is

performed by human beings.
Work study is carried out by the work study engineer
when the Quality, Control, Deployment parameters are
poor.
Work study consists of eight basic steps :1. SELECT the job to be studied
2. RECORD how it is performed right now
3. EXAMINE the existing method critically
4. DEVELOP a practical, economic, effective method
5. MEASURE the work involved
6. DEFINE the techniques
7. INSTALL that method as practice
8. MAINTAIN that std practice by regular routine
checks

TOTAL TIME OF OPERATIONS= Total work content+

total ineffective time
TOTAL WORK= Basic Work + Excess work
BASIC WORK= 20% of Total time
EXCESS WORK= W ork content added by ( defects in
design
+ inefficient methods of prodn)
EXCESS WORK DUE TO DEFECTS IN DESIGN

Bad design
Lack of standardization
Incorrect quality stds
Designs demanding excess material removal

EXCESS WORK DUE TO INEFFICIENT METHODS OF PRODN

Wrong m/cs used

Process not operated correctly
Wrong tools
Bad layout
Bad working methods

TOTAL INEFFECTIVE TIME= INEFFECTIVE TIME DUE TO

(Shortcomings of mgt + control of
worker)
INEFFECTIVE TIME DUE TO SHORTCOMINGS OF MGTa.
b.
c.
d.
e.
f.
g.
h.
i.

Excessive product variety

Lack of standardization
Design changes
Bad planning
Lack of raw materials
Plant Breakdowns
Plant in bad condition
Bad working conditions
Accidents

INEFFECTIVE TIME WITHIN THE CONTROL OF THE

WORKERj. Absence, lateness, idleness
k. Careless workmanship
l. Accidents

 The techniques used to record the M/S &

W/M activities are a.
b.
c.
d.
e.

Process mapping
String Diagram
Video Shooting / filming
Motion economy
Ergonomics

ISO STANDARDS :
Standards- Established criterion against
which actual performance is compared &
evaluated
founded on 23rd Feb, 1947 in Geneva, Switzerland.
Promotes industrial & commercial stds worldwide
Facilitates global consensus agreements on intl quality stds.
ISO 9000 is a series of quality management standards,
guidelines & technical reports which are reviewed every five
years.
Quality mgt systems should cover all facets likeIdentifying & meeting customers needs, design, planning,
purchasing, manufacturing, packaging, storage, delivery & service

DOCUMENTS USED IN QUALITY SYSTEM:

1. Company Quality Manual- fundamental
documental providing concise summary ofa.
b.
c.
d.

Quality mgt policy

Quality system
Co.objectives
Its orgn

2. Procedure Manual describes

a.
b.
c.

system functions,
structure &
responsibilities in each dept.

3. Work instructions, specifications, detailed

methods for performing work activities
4. Database containing reference documents(forms, stds, drawings, reference info etc.)

ISO 9000 stresses over four principles :1. Customer focus

2. Leadership
3. Involvement of people
4. Process approach
5. Systems approach
6. Continual improvement
7. Fact-based approach
8. Supplier relationships

ISO 9000 Series of standards :

ISO 9000 (2000) family of quality stds are
in fact 4 separate stds :
1. ISO 9000- QUALITY MANAGEMENT
SYSTEMS- Fundamental & Vocabulary
2. ISO 9001- QMS:Requirements (ability to
meet customer & regulatory requirements
to achieve customer satisfaction)
3. ISO 9004-QMS:Guidance for performance
improvement
4. ISO 19011- Guidelines for auditing Quality
& Environmental Management systems

ISO 9000 :
A family of internationally accepted quality mgt & assurance
systems
They are independent of products, services, countries
Are generic & can be applied in all types of industries
irrespective of size & type
Stds relate to quality systems & not to Product systems for
managing quality
Key stds ISO 9001,9002, 9003 are merged into a single ISO9001:2000 & is organised into five sections :1. Quality management system- General & documentation requirements
2. Management responsibility- Commitment, Customer focus, Quality
policy, Planning, Responsibility authority & Communication, Mgt review
3. Resource Management Resource provision, Infrastructure, Work
environment,
4. Product Realization- Planning, des & development, Purchasing,
Production & service provision, Control over monitoring & measuring
device
5. Measurement, Analysis & improvement- Control of non-conforming
product, Analysis of recorded data, Improvement etc.

ISO 9000 QUALITY STANDARDS

SUMMARY OF ISO9000 STADARDS

SUMMARY OF ISO9000 STANDARDS ..

METHODOLOGY :
1. Make application to certifying agencies ex. BVQI
affiliated to ISO for cerification
2. Prepare the quality manual of in-house procedures &
systems under their guidance.
3. Ratify for adequacy above procedures to meet the
requirements in line with ISO
4. Appoint Mgt Representative (MR), to look after ISO
requirements
5. Certifying agencies check whether concerned depts
confirm to procedures written in manual
6. Procedures must be strictly adhered to
7. Deficiencies in the process will be presentes in Nonconfirmity Report.
8. Deficiencies has to be resolved & replied efficiently

9. Agency will award certificate over satisfactory

Benefits of ISO :9000 Quality system :1. Facilitates access to National & International mkts
2. Increases customers confidence
3. Clarity in the distribution of responsibilities
4. Increased involvement of employees in quality goals
and a better co. image
5. Acts as a base for continuous improvement
LIMITATIONS :
6. Focusses only on conformance to specifications
7. Does not address questions whether product meets
mkt requirements or not.

 CERTIFYING AGENCIES :
BVQI- Bureau Veritas Quality Intl
BSI-British Standards Institution
ASA- Australian StandardsAssn
BIS- Bureau of Indian Stds
IRQS- Indian Register Quality Systems
NABL- Natl Accreditation
STQC- Standardisation, Testing & Quality
Control
IIQM-Indian Institute of Quality Mgt
APLAC
COFRAC

KAIZEN : Is a mgt supported, employee driven

approach
Employees make a large no. of
everlasting efforts by discovering small
problems & eliminating them
permanently
Help the orgn in setting & reaching higher
standards of performance
Kaizen can be of three types :
1. Management Kaizen
2. Group kaizen
3. Individual kaizen

Types of KAIZEN

Types of KAIZEN

IMPLEMENTATION OF KAIZEN :
1. Defining the problem
2. Understanding / assessing the current status
3. Finding the root cause
4. Planning countermeasures
5. Implementing them
6. Verifying results
7. Standardising & establishing control

METHODS OF PERFORMING KAIZEN1. 5 Ws and 1H

2. 5 Whys
3. CARES- Combine, Add, Re-arrange, Eliminate, Simplify
4. Sort value adding & Non-value adding activities
5. PDCA method
6. 5S approach
7. Muda elimination
8. JIT Waste control techniques
9. Work Standards
10.SPCT
11.PDCA/ SDCA
12.Suggestion systems

JIT:
its a waste reduction technique
Introduces timeliness, quality, productivity, flexibility,
work simplification, waste reduction into the
manufacturing cycle
material passes through different stages in the pipeline.
Waste- all non-value adding activities
JIT tries to expose problems in waste improper methods
Waiting/ delays
Machine/ system breakdowns
Rejections/ rework
Low demand for product in mkts
Poor supervision
Downtime
Inspection
Over production

 JIT ATMOSPHERE : ATTITUDE MAKES THE

DIFFERENCE
1. Keen to about skill development
2. Measure the quality & quantity of
production
3. Better idea about their job, suppliers &
customers needs, product, process
4. Assist co-workers
5. Suggestions for improvement & its
implementation
6. Solve problems at their level
7. predict the future problems
8. Aim- zero defects
9. Keen to co-operate & communicate the

VENDOR INVOLVEMENT :

Single source
Full confidence, must feel like extn of same co,
Free flow of communication
Longterm relations & transparency in price
fixing
Proper selection of vendors
Receiving inspection should be avoided
Material must be received as & when reqd ( no
inv)
Select eco transportation system & good, std, &
reusable packing to avoid damages

TECHNIQUES USED IN JIT :

1. KANBAN Highly efficient & effective prodn system
Developed at toyota in 1950s to manage
material flow on assembly line
Kan- card, Ban-signal
Supplier/wh should deliver components only
when needed (no storage in production
area)
Workstations produce reqd components on
receipt of the card

Key Activities Of SMED Stage1 And Stage 2

Key Activities Of SMED Stage3 And Stage 4

 Seiri- sorting the wanted from the

unwanted
Seiton storing ( a place for everything,
and everything in its place )
Seiso Shine ( clean & tidy)
Seiketsu- Standardize the 5-S approach
Shitsuke- systematization for
implementation with commitment