Relation

© Md. Shahiduzzaman
© Md. Shahiduzzaman
Basic Methodologies on TQM

• DMAIC • DMADV
– Define – Define
– Measure – Measure
– Analyze – Analyze
– Improve – Design
– Control – Control
 Five Steps of the DMAIC Method

1. Define the Project

• Define the purpose and scope
• Collect background info
1 Define
5 Control
2. Measure the Current Situation
• Gather information on the
2 Measure current situation
4 Improve
3. Analyze to Identify Root
Causes
3 Analyze • Identify root causes
• Confirm with data
Five Steps of the DMAIC Method

4. Improve
• Develop, try out and
implement solutions
1 Define • Use data to evaluate results
5 Control
5. Control
2 Measure
• Maintain gains
4 Improve
• Standardize work methods
• Anticipate future
improvements
3 Analyze
 Hoshin Planning:

1. Make the Current State of the

Department Visible
• S. W. O. T.
• Baldrige Self-assessment
• Customer Satisfaction
Surveys
 Hoshin Planning:

2. Define the Vision of What the

Organization or Department Will Be

We want
to be ...
 Hoshin Planning:
3. Identify what the
department needs to focus on to
achieve its vision
 Hoshin Planning:

4. Develop Annual Targets

Hoshin Planning:

5. Develop Means
 Hoshin Planning:

6. “Catchball”

Putting the Targets and

Means Together
 Hoshin Planning:

7. Finalize the Plan

 Hoshin Planning:

8. Implement the Plan

 Hoshin Planning:

9. Monitor Progress
 Hoshin Planning:

Review the plan and

10.
make improvements
 Root Cause Analysis (RCA)
• Determining...
– What happened
– How it happened
– Why it happened

Failure Modes and Effects Analysis (FMEA): RXPXN

© Md. Shahiduzzaman
 Essential Elements of
Successful Quality Management

Successful Quality Management

Focus on Supportive Appropriate

Customers Organizational Tools and
Culture Techniques
 Benchmarking and TQM
• Benchmarking
– The process of studying the products, services, and practices
of other firms and using the insights gained to improve
quality internally.
• Benchmarking
– The practice of establishing internal standards of
performance by looking to how world-class companies run
their businesses

Comparing an organization’s performance to

performance of other organizations.
 Purposes for Benchmarking

• Comparing an organization’s performance to

the best organization’s performance
• Comparing an organization’s business
processes with similar processes
• Comparing products and services
• Identifying best practices to implement
• Projecting trends
 Steps in Benchmarking

• Preparing for the study

– obtaining top management support
• Collecting data
– published data
– original research
• Using what was learned to improve
organizational performance
 Benchmarking Goals

• Learning from experiences of others

• Determining how organization is performing
relative to the best
• Helping to prioritize improvement efforts
– developing stretch goals
– overcoming complacency within organization
 Tools and Techniques of TQM

• Employee Participation
–Employee performance is a critical quality variable.
–Quality circle
• A group of employees who meet regularly to discuss
quality-related problems.
 Quality Circles

• Focus on all problems facing workers

• Composed of natural work groups
• Not limited to shop employees
• Usually spend couple hours per week on
company time analyzing problems
 Tools and Techniques of TQM

• The Inspection Process

– The examination of a product to determine whether it meets
quality standards.
– Inspection standard
• A specification of a desired quality level and allowable tolerances.
– Attribute inspection
• The determination of product acceptability based on whether it
will or will not work.
– Variable inspection
• The determination of product acceptability based on a variable
such as weight or length.
 Statistical Methods of Quality Control

• Acceptance Sampling
– The use of a random, representative portion to determine the
acceptability of an entire lot.
• Statistical Process Control
– The use of statistical methods
to assess quality during the
operations process.
• Control Chart
– A graphic illustration
of the limits used in
statistical process control.
 International Certification for
Quality Management
• ISO 9000
– The standards governing international certification of a
firm’s quality management procedures.
• Six factors positively influence customers’
perception of service quality
1. Being on target
2. Care and Concern
3. Spontaneity
4. Problem Solving
5. Follow up
6. Recovery
 Quality Gurus

• W. Edwards Deming
– Assisted Japan in improving productivity and
quality after World War II
– In 1951 Japan established Deming Prize
– US was slow in recognizing his contributions
– Introduced Japanese companies to the Plan-Do-
Check-Act (PDCA) cycle (developed by Shewart)
– Developed 14 Points for managers
 PDCA Cycle

4. ACT 1. PLAN
Permanently Identify im-
implement provements and
improvements develop plan

3. CHECK 2. DO
Evaluate plan Try plan on
to see if it a test basis
works
 Quality Gurus

• Philip B. Crosby
– Wrote Quality Is Free in 1979
– Company should have the goal of zero defects
– Cost of poor quality is greatly underestimated
– Traditional trade-off between costs of improving
quality and costs of poor quality is erroneous
 Philip B. Crosby

• Quality is conformance to requirements, not

elegance
• Quality problems do not exist, rather
organizations have functional problems
• Best to perform an activity right the first time
• Zero defects only meaningful performance
measure
 Quality Gurus

• Armand V. Feigenbaum
– Developed concept of total quality control (TQC)
– Responsibility for quality must rest with the persons
who do the work (quality at the source)
• Kaoru Ishikawa
– Wrote Guide to Quality Control in 1972
– Credited with the concept of quality circles
– Suggested the use of fishbone diagrams
 Joseph Juran
• Quality Control Handbook (1951)
• Conformance to requirements.
• Quality Trilogy
– Quality Planning (preparing to meet Q goals)
– Quality Control (process during operations)
– Quality Improvement (achieving higher level
performance)
• Need to place more emphasis on planning and
improvement
 Joseph Juran continued

• Organizations progress through four phases

– Minimize prevention and appraisal costs
– Appraisal costs increased
– Process control introduced increasing appraisal
costs but lowering internal and external failure
costs
– Prevention costs increased in effort to lower total
quality costs
 Quality Gurus

• Joseph M. Juran
– Like Deming, discovered late by US companies
– Played early role in teaching Japan about quality
– Wrote Quality Control Handbook
• Genichi Taguchi
– Contends that constant adjustment of processes to
achieve product quality is not effective
– Instead, products should be designed to be robust
enough to handle process and field variation
 Deming’s 14 Points
• 1."Create constancy of purpose towards
improvement". Replace short-term reaction with
long-term planning.
2."Adopt the new philosophy". The implication is
that management should actually adopt his
philosophy, rather than merely expect the workforce
to do so.
3."Cease dependence on inspection". If variation is
reduced, there is no need to inspect manufactured
items for defects, because there won't be any.
4."Move towards a single supplier for any one item."
Multiple suppliers mean variation between feed
stocks.
5."Improve constantly and forever". Constantly strive to reduce
variation.

6."Institute training on the job". If people are inadequately

trained, they will not all work the same way, and this will
introduce variation.

7."Institute leadership". Deming makes a distinction between

leadership and mere supervision. The latter is quota- and
target-based.

8."Drive out fear". Deming sees management by fear as

counter- productive in the long term, because it prevents
workers from acting in the organisation's best interests.
• 9."Break down barriers between departments".
Another idea central to TQM is the concept of the
'internal customer', that each department serves not
the management, but the other departments that use
its outputs.
10."Eliminate slogans". Another central TQM idea is
that it's not people who make most mistakes - it's the
process they are working within. Harassing the
workforce without improving the processes they use
is counter-productive.
11."Eliminate management by objectives". Deming
saw production targets as encouraging the delivery of
poor-quality goods.
• 12."Remove barriers to pride of
workmanship". Many of the other
problems outlined reduce worker
satisfaction.

13."Institute education and self-

improvement".

14."The transformation is everyone's

job".
 What is the Malcolm Baldrige National Quality
Award?
• Malcolm Baldrige was Secretary of Commerce from 1981 until his death
in July 1987. Baldrige was a proponent of quality management as a key
to this country’s prosperity and long-term strength. He took a personal
interest in the quality improvement act that was eventually named after
him and helped draft one of the early versions. In recognition of his
contributions, Congress named the award in his honor.

• Congress established the award program in 1987 to recognize U.S.

organizations for their achievements in quality and performance and to
raise awareness about the importance of quality and performance
excellence as a competitive edge. The Baldrige Award is given by the
President of the United States to businesses—manufacturing and
service, small and large—and to education and health care organizations
that apply and are judged to be outstanding in seven areas: leadership,
strategic planning, customer and market focus, information and analysis,
human resource focus, process management, and business results.
 Continue……..

The criteria for the Baldrige Award have played a major

role in achieving the goals established by Congress.
They now are accepted widely, not only in the United
States but also around the world, as the standard for
performance excellence. The criteria are designed to
help organizations enhance their competitiveness by
focusing on two goals:
delivering ever improving value to customers and
improving overall organizational performance.
 What are the Baldrige criteria?
The Baldrige performance excellence criteria are a framework that any
organization can use to improve overall performance.
• Leadership—Examines how senior executives guide the organization and how the organization
addresses its responsibilities to the public and practices good citizenship.

• Strategic planning—Examines how the organization sets strategic directions and how it determines key
action plans.

• Student, stakeholder, and market focus—Examines how the organization determines requirements
and expectations of customers and markets; builds relationships with customers; and acquires, satisfies,
and retains customers.

• Measurement, analysis, and knowledge management—Examines the management, effective use,

analysis, and improvement of data and information to support key organization processes and the
organization’s performance management system.

• Faculty and staff focus—Examines how the organization enables its workforce to develop its full
potential and how the workforce is aligned with the organization’s objectives.

• Process management—Examines aspects of how key production/delivery and support processes are
designed, managed, and improved.

• Organizational performance results—Examines the organization’s performance and improvement in

its key business areas: customer satisfaction, financial and marketplace performance, human resources,
supplier and partner performance, operational performance, and governance and social responsibility.
The category also examines how the organization performs relative to competitors.
Malcolm Baldrige National Quality Award

• Awards given annually to US firms

• Nearly all states have quality award programs
styled after the Baldrige Award
• Criteria include
– Leadership
– Strategic planning
– Customer and market focus
– Information and analysis
– Human resource focus
– Process management
– Business results
 The Deming Prize
• Awarded by the Union of Japanese Scientists and
Engineers
• Recognizes companies that have demonstrated
successful quality improvement programs
• All (not just Japanese) firms are eligible
• Four top-management activities recognized
– Senior management activities
– Customer satisfaction activity
– Employee involvement activities
– Training activity
 Quality Function Deployment
(QFD)
• Determines what will satisfy the customer
• Translates those customer desires into the
target design
 Taguchi Techniques

• Experimental design methods to improve

product & process design
– Identify key component & process variables
affecting product variation
• Taguchi Concepts
– Quality robustness
– Quality loss function
– Target specifications
 Quality Robustness

• Ability to produce © 1995 Corel Corp.

products uniformly
regardless of
manufacturing
conditions
• Put robustness in
House of Quality
matrices besides
functionality © 1984-1994 T/Maker Co.
 Quality Loss Function

• Shows social cost ($) of deviation from target

value
• Assumptions
– Most measurable quality characteristics (e.g., length,
weight) have a target value
– Deviations from target value are undesirable
• Equation: L = D2C
– L = Loss ($); D = Deviation; C = Cost
 Quality Loss Function
High Loss
Unacceptable

Poor
Loss

Fair

Good

Best
Low Loss
Target-oriented quality
yields more product in
the "best" category
Frequency

Conformance-oriented
quality keeps products
within 3 standard
deviations

Lower Target Upper

Distribution of Specifications for Products Produced
 Quality Loss Function Example

The specifications for the

diameter of a gear are
25.00 ± 0.25 mm.
If the diameter is out of
specification, the gear
must be scrapped at a
cost of $4.00. What is the
loss function?
© 1984-1994 T/Maker Co.
 Quality Loss Function Solution

• L = D2C = (X - Target)2C
– L = Loss ($); D = Deviation; C = Cost
• 4.00 = (25.25 - 25.00)2C
– Item scrapped if greater than 25.25
(USL = 25.00 + 0.25) with a cost of $4.00
• C = 4.00 / (25.25 - 25.00)2 = 64
• L = D2 • 64 = (X - 25.00)264
– Enter various X values to obtain L & plot
 Target Specification Example
A study found U.S. consumers preferred Sony TV’s made in
Japan to those made in the U.S. Both factories used the same
designs & specifications. The difference in quality goals made
the difference in consumer preferences.

F re q . Japanese factory
(Target-oriented)
U.S. factory
(Conformance-
X oriented)
LSL T a rg e t U SL
Quality Loss Function; Distribution of Products
Produced
High loss Quality Loss Function (a)
Unacceptable
Loss (to Target-oriented
producing Poor quality yields more
organization, Fair product in the “best”
customer, and category
Good
society)
Best Target-oriented quality
Low loss
brings products toward
the target value
Conformance-oriented
Frequency quality keeps product
within three standard
deviations
Distribution of specifications
Lower Target Upper for product produced (b)
Specification
• Principles of QA include :

• Planning
• Motivating
• Organizing
• Communicating
• Controlling and Maintaining Quality
Assurance
 Standards and certification

• ISO make standards of internationally agreed good practice

and companies can use them to save save them making up
their own individual company standards which do not have
the same international acceptance as ISO standards.
• Companies can apply for third party certification to prove to
their customers they are using the ISO standards correctly
• 3rd party certification is a seven stage process starting with
application and finishing with surveillance visits
Thank
You

© Md. Shahiduzzaman