Course Title : Total Quality Management (TQM)

Course Code : 19JBSO404

Course Facilitator: Dr. KS SRINIVASA RAO

Module 4: Tools of Total Quality
Management
• Companies Using Six Sigma: (Review)

• TASK: Each Student will identify one Company in Service Sector and
one Company in manufacturing Sector that Implements Six
Sigma(without duplication)
• Give: Name of the Company in Service Sector, Justification of Six Sigma,
Name of the Company in Manufacturing Sector, Justification of Six
Sigma
• Update Google sheet
• Google Sheet Link:
• https://docs.google.com/spreadsheets/d/
1x0BUPyjztgenXhzCQz6sHrbQJEtPmIVLe133KyBWt2Y/edit?usp=sharing
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• Benchmarking is defined as the process of measuring products,
services, and processes against those of organizations known
to be leaders in one or more aspects of their operations.
• The definition of a benchmark is to measure something against
a standard.
• An example of benchmark is to compare a recipe to the original
chef's way of doing it.
• A benchmark is defined as a standard by which all others are
measured.
• An example of a benchmark is a novel that is the first of its
genre.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• What is the purpose of benchmarking?
• Benchmarking is a tool for assessing and comparing
performance in order to achieve continuous
improvement.
• It is part of a Total Quality Management process,
and includes the following key elements:
Focuses on processes rather than outcomes;
Encourages information sharing; and
Implies a willingness to change and a desire to
implement best practices.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• Benchmarking Process:
• Process benchmarking constitutes comparing and analyzing your
business processes with those the processes that are considered
the best practices in the industry.

1) Select a subject to benchmark.

2) Decide which organizations or companies you want to benchmark.
3) Document your current processes.
4) Collect and analyze data.
5) Measure your performance against the data you've collected.
6) Create a plan.
7) Implement the changes.
8) Repeat the process.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• Benchmarking Process:
• Six benchmarking best practices :
1. Start early. If you want to be the best, it's
never too early to start benchmarking.
2. Have a timeline.
3. Choose an appropriate peer group.
4. Look outside your industry.
5. Stick to meaningful metrics.
6. Focus on improving operations.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• Benchmarking Process:
• What are the techniques used in benchmarking?
• In regards to methods used for analyzing
benchmarking data, there are several approaches, like:
 Matrix Technology,
 Comparison Tables,
 Graphs (Pie Chart, Bar Chart / Histogram),
 SWOT Analysis,
 Life Cycle Analysis,
 Market Growth and Attractiveness
 Spider Web Diagram.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• Benchmarking Types:
• There are two primary types of
benchmarking:

• Internal benchmarking: comparison of

practices and performance between teams,
individuals or groups within an organization
• External benchmarking: comparison of
organizational performance to industry
peers or across industries
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• Benchmarking Types:
• Process Benchmarking: Demonstrate how top performing companies accomplish
the specific process in question. Such benchmarking is collected via research,
surveys/interviews, and site visits. By identifying how others perform the same
functional task or objective, people gain insight and ideas they may not
otherwise achieve. Such information affirms and supports decision-making by
executives.
• Performance Metrics: “Performance metrics” give numerical standard against
which a client’s own processes can be compared. These metrics are usually
determined via a detailed and carefully analyzed survey or interviews. Clients can
then identify performance gaps, prioritize action items, and then conduct follow-
on studies to determine methods of improvement.
• Strategic Benchmarking: Identify the fundamental lessons and winning strategies
that have enabled high performing companies to be successful in their
marketplaces. Strategic benchmarking examines how companies compete and is
ideal for corporations with a long-term perspective.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• Benchmarking Types:
• Importance of Benchmarking:
• Benchmarking is #1 most used
global management tool, yet most
companies fail to use benchmarking
to their full advantage.
• More than 20 types of benchmarks
were developed to help companies
look forward and build winning
strategies, tactics and plans.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• Benchmarking Types:
• Video Link: https://
www.youtube.com/watch?v=r
7qSCNV-8mM
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• QFD:
• QFD is a focused methodology for
carefully listening to the Voice Of the
Customer and then effectively
responding to those needs and
expectations.
• First developed in Japan in the late
1960s as a form of cause-and-effect
analysis, QFD was brought to the
United States in the early 1980s.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• QFD:
• QFD is a tool to help structure product
planning and design and aims to
ensure that customer needs are
focused on throughout a project from
concept design through to
manufacture.
• At the heart of QFD is the House of
Quality which links predetermined
customer attributes to specific
technical characteristics.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• QFD:
• What is a QFD in Six Sigma?
• Quality Function Deployment (QFD) is a
process for planning products and
services.
• It starts with the Voice of the Customer
(VOC) which becomes the basis for
setting requirements.
• Use: A popular tool of Six Sigma used in
quality function deployment is The
House of Quality.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• QFD:
• The House of Quality (HOQ) is defined as
a product planning matrix that is built to
show how customer requirements relate
directly to the ways and methods
companies can use to achieve those
requirements.
• HOQ is considered the primary tool used
during quality function deployment to
help facilitate group decision making.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• QFD:
• What are the 4 phases of QFD?
1. Product Planning,
2. Product Development,
3. Process Planning and
4. Production Planning.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• QFD:
• What is the QFD process?
• Quality Function Deployment (QFD) is a
structured process that uses a visual
language and a set of inter-linked
engineering and management charts to
transform customer requirements into
design, production and manufacturing
process characteristics.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• Taguchi’s Loss Function

• Taguchi Loss Function (TLF) is the

graphical depiction of loss to describe
a phenomenon affecting the value of
products produced by a company.
• It emphasizes the need for
incorporating quality and reliability at
the design stage, prior to production.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• Taguchi’s Loss Function

• What is advantages of Taguchi's Quality

Loss Function?
• Thus Taguchi Loss Function is very
valuable that transform the variation from
nominal value with financial depiction.
• In other words it gives the relation
between lowering the variation from
target to the financial benefit.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• Taguchi’s Loss Function

• What is Taguchi statement?

• The Taguchi method of quality control
is an approach to engineering that
emphasizes the roles of research and
development (R&D), and product
design and development in reducing
the occurrence of defects and failures
in manufactured goods.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• Taguchi’s Loss Function

• L(x)= Quality loss function.

• x = Value of the quality characteristic (observed).
• N = Nominal value of the quality characteristic
(Target value – target).
• k = Proportionality constant.
• C = Cost of the deviation in the limit of the
specification (Loss for a unit produced in the
specification limit).
• LES = Upper specification limit.
 Module 5: Trends in Total Quality Management

1. Benchmarking Type, Process, QFD, Taguchi’s Loss Function,

2. Total Productive Maintenance, ISO 9000, QMS, Environmental management systems 14001
3. *Quality awards, Deming price European and Indian quality awards.
• Taguchi’s Loss Function

• Video Link: https://

www.youtube.com/watch?v=uYNYepfR4
oo
Student Learning and Submission:
   
   
1.
https://www.tqm.com.hk/qu    
ality-awards
*Quality awards – Deming 2. Post Class Readings / activities /  
29 prize European and Indian https://irp-cdn.multiscreensit LMS discussions -6 CO5
quality awards e.com/ef57d37c/files/upload  
ed/%D7%90%D7%99%D7%9
A%20%D7%94%D7%9B%D7%  
9C%20%D7%94%D7%AA%D7
%97%D7%99%D7%9C.pdf  
3.
https://www.juse.or.jp/demin *Asynchronous
g_en/
4.
http://www.dcmsme.gov.in/g
andhi%20national%20awards
2014.pdf

Assessment 2:
SIX SIGMA IN CO1,
SELECT SECTOR: Tools of Total Quality WRITTEN REPORT CO2,
24 *Asynchronous
REVIEW OF RESEARCH Management (Thursday) CO3,
ARTICLE CO4
(GROUP)
Student Learning and Submission:
Self –Paced Learning *Asynchronous
on Six Sigma CO1,
Foundations CO2,
https://www.linkedin.co
44 LinkedIn Learning-5 m/learning/six-sigma-fou CO3,
ndations/engage-in-six-si CO4, &
gma-projects?autoAdvan CO5
ce=true&autoSkip=false&
autoplay=true&resume=t
Self –Paced Learning rue&u=92695330 *Asynchronous
on Six Sigma: Black
Belt CO1,
CO2,
45 LinkedIn Learning-6 https://www.linkedin.co CO3,
m/learning/six-sigma-blac CO4, &
k-belt/what-you-should-k
now-road-map?autoAdva CO5
nce=true&autoSkip=false
&autoplay=true&context
Urn=urn%3Ali%3AlyndaL
earningPath%3A5937130
4498e9e9be7fb8505&res
ume=true&u=92695330