(B) METHODS OF TQM (1) BENCHMARKING Meaning: A business organization that aims at achieving great success in a competitive world can learn a lot from the management practices of successful corporations. Such practices act as the benchmarks. Benchmarking is a continuous search for and application of significantly better practices that lead to superior competitive rerformance. It is not copying but adaptability. Benchmarking lates to measuring and comparing key aspects of an organisation with those of other organisations to discover areas of improvement. Benchmarking is a process of identifying superior Products, services, processes and practices that can be adopted to educe costs, decrease operations cycle time and provide greater “ustomer satisfaction. The concept of benchmarking is derived m land surveying in which it indicates a reference point called Nchmark which is accepted as 4 base for surveys.s oT Definition of Benchmarking: Benchmarking is “@ preess of adapting oxtstarmty s from from other businesses to help improve performance. - — Sarah Cook Benchmarking is defined as the “search of industry best practices that lead to superior performance.~ Characteristics of Benchmarking: @ Continuous process: Benchmarking cannot be used as 2 stop- gap arrangement because it is 2 continuous process. Environmental changes keep influencing the business. Best of the practices adopted by excellent corporations can be takes advantage of by any organisation. (@) Measurement and comparison: Benchmarking involves measurement and comparison of practices of successfl corporations not only within the county but also globally. It's not restricted to the study of competition but determines bass of success of industry leaders by measuring their results. (3) Comprehensive: Benchmarking covers huge canvass. k includes all aspects of business such as products, services process and practices. It goes beyond the traditional analyss in the form of identifying strengths and weaknesses and provides clear picture of how the best practices are used. @ Search for the best: In the fast changing world of business, no management practices can give results always. There has to be constant search for successful practices which calls for introspection. (5) Leading organisations: Shining examples of success not only of competitors but any organization should be the basis of benchmarking. Leading organizations have many successful experiments to offer to the benefit of other organisations i does not only aim at direct product competitors but also those organizations that are recognised as industry leaders.‘al Quality Management 99 »)_Goal-oriented: Goal-setting, employee motivation for improved performance and external orientation are the main objectives of benchmarking. Striving to be the best of the best forms the essence of | benchmarking. Good results: Feedback is always important for any organisation. By using various benchmarking methods, an organisation gains good customer feedback. It helps to meet customer needs, come up to their quality expectations and ensure better delivery speed. Improves standards: Benchmarking contributes to raising the standards of the organisation by comparing it with competitors in the market eg. with benchmarking organisation might be able to raise the overall standard of the equipment used in production system. Further, its also possible to improve customer service at all fronts. Removing weakness: When the quality of work is not up to the mark, benchmarking helps the organisation to recover from the mistakes committed in the past. It may become necessary to incorporate changes and introduce new ideas to remove organisational weaknesses. 0) Openness to new technology: Benchmarking gathers information about new learning techniques followed by other firms. There are regular changes taking place in the field of technology. Benchmarking advocates to adopt new technology successfully used by other firms. It helps to cut down production costs, capture market and eam higher | Profits. Types of Benchmarking: > +” ET 1) Performance Benchmarking: Under this type of benchmarking pricing, features, technical quality, durability, Strength etc. are included. There is a direct comparison against the products of the competitors to study the products and processes adopted by the competitors in the same industry. Often performance benchmarking is also called operational benchmarking.10 2 ° «@ 6 wy wr Vipal’s™ industrial Manageme. a " benchmarking 4, ee masking: THe OP billing and ee with work processes like order entry Yee training. It pinpoints the most effective practices In Compania, that perform similar functions, No matter in what industry benchmarking is adopted from outside the industry, it help the company to achieve superiority because it can lear, new application from better managed firms. Strategic Benchmarking: This type of benchmarking assesse: how companies compete and look for winning strategies that have led to competitive advantage and market success. One way to determine how well a company is prepared tp compete is by constructing a key success factor (KSF) Matrix Strategic benchmarking for a marketing firm will include the following as its key success factor — service, cost, R&D, sales force, distribution, suppliers etc. Functional Benchmarking: Similar functions performed in different types of organizations are evaluated to benchmark the best practices in each functional area e.g. customer grievances handling, order processing, marketing logistics, and delivery systems may be benchmarked against leading organisations. Intemal Benchmarking: In order to maintain a spirit of healthy competition, comparison between different departments and units of the same company are organized. There is a visible effort to maintain uniformity in management practices throughout the organisation. Generic Benchmarking: Under this, core business practices are compared. Cross-functional comparison may be used benchmark quality of raw materials, quality of finished goods, availability of finance, advertising campaign etc. Competitive Benchmarking: Firms within an industry at compared as regards their business practices. This exercise i$ directed towards identifying and adopting the best practices . in the industry. Competitive benchmarking is typically suited for products and services.| Total Quality Management ooo 101 jer Product benchmarking: Product benchmarking is based on | the “reverse engineering concept”. In this case, an organisation would purchase the competitors’ product and break-down } into pieces to know its various features and performance ability. By doing this, it improves its product performance by analysing the basic working of the other products in the market. 9) Corporate benchmarking: Corporate benchmarking makes comparison of various divisions of the organisation to improve its working model eg., it compares other organisation’s marketing division, finance, research team and testing staff to improve the overall efficiency of the organisation. (10) Global benchmarking: This is a costly type of benchmarking and mostly used by multinational firms. Various parameters of an organisation are compared with other competitive firms operating at global level e.g., Microsoft operating in USA compares its accounts division with Mazda of Japan. Steps in Benchmarking Process: (1) Planning phase: Every business is expected to consider the four major areas of functional management viz., production, finance, marketing and human resource to benchmark their progress of work. Benchmarking can be separated for product and process. It is advisable to build up a team with a leader. Identify measures important to the customers and to the business to be benchmarked. Along with this clearly define processes and current measures to be benchmarked. Benchmarking must be conducted against leadership companies and business functions regardless of where they operate. This style of benchmarking will establish superiority. The importance of benchmarking lies in making comparison possible. There is no one single method of conducting benchmarking investigation. In fact, several methods are combined to arrive at reliable data. Both primary and secondary sources of data collection are used. However, the best method of collecting data is establishing personal relations with respondents.102 (2) (3) 1g™ i Vipul’s™ Industrial Manageme, we Analysis phase: Under analysis phase, it is important to understand current process practices aS well as those o; benchmarking units. Analysis phase consists of two steps: (a) Determine current performance gaP* As stated earlier, benchmarking helps to make comparison. The concemeq department is required to compare actual performance against the standard. In case any deviation exists, i, indicates gap. This situation calls for thorough investigation to identify the causes of shortfall jn performance and suggest corrective measures. (b) Project future performance levels: Mostly it is possible to project future performance based on current performance. This will reveal where the business is today and where it is likely to go in next one to five years. Benchmarking should be a continuous process to monitor progress and potentiality of success. Integration phase: In order to get operational targets for change benchmarking findings are heavily relied upon. Benchmarking findings need ‘to be incorporated in all formal planning process. Integration phase is composed of two steps: (a) Communicate benchmark findings: As the competitors keep on updating their strategies, no firm can remain jdle. To start with management must accept benchmark finding. Findings must be based on factual data. Action can be initiated based on these findings. In order to get support and cooperation from all employees benchmark findings must be communicated to all organizational levels. Benchmark findings must be converted into @ statement of operational principles by which action for change will be decided. (b) Establish functional goals: Once data is communicated and accepted, it is necessary to develop functional goals and achieve them through the benchmarking process €.8" when a firm undertakes adverting campaign its goal should be to dominate the leader in the line of busines If the firm succeeds in dominating the leader, superiority 40Total Quality Management roo 103 of advertising campaign is established. This analysis will apply to all the functional areas of management. (#) Action phase: Action phase deals with implementation of change which consists of two steps: (a) Implement specific action and monitor progress: When implementation of the plan is made, the progress of work is required to be assessed periodically. This will reveal how far the implementation is rightly done or there is scope for improvement. (b) Take re-engineering process: Benchmarking must indicate what one firm is doing along with what other competitors are doing. Re-engineering process will highlight if the work has proceeded on the right'track or there are areas needing ‘improvements. (5) Maturity phase: Maturity is attained when best business practices are introduced in every process thus establishing, superiority. Maturity indicates that the firm has proved to be better than others. When the focus on external practices becomes the responsibility of the entire organization, with best business practices, benchmarking has achieved its objective of superiority. (2) DEMING WHEEL In the field of quality management the name of Dr. W. Edwards Deming stands out who is widely acknowledged as quality guru. Deming exposed Japanese managers to quality management which he stressed as “organization-wide activity rather than a technical task for inspectors.” He pointed out that managers must create the systems and processes to generate quality. The major contributions of Deming include the following: (1) The contribution of Dr. Deming although originated in America but it was developed in Japan and now practiced all over the world. The highest award in Japanese industry carries his name. (2) According to Dr. Deming the responsibility to improve quality largely falls on management because workers are at the receiving end.104 cow Vipul’s™ Industria} Managen, ‘Shy, (3) Management has to reactivate the entire system so aS to causes responsible for poor quality. Workers are Willing : extend their cooperation. B ty (4) Deming observed that variation is a major Produc, problem. It can be corrected by the use of contro] charts," | (5) Deming advocated a never-ending cycle of product deg) manufacture, test and sales, followed by market Surveys a, n, then redesign. He stressed that higher quality Tesults a higher productivity which in turn leads to long tem } competitive strength. According to Deming top managers must accept and commit themselves to the guidelines and Points that form the basis o TQM. Deming Wheel which is also called Deming Cycle is problem-solving process which ensures continuous improvement in the firm in all departments: fo" Deming Wheel \/STEPS IN DEMING WHEEL: (1) Plan: To begin with the team selects a process that needs improvement. The selected process is documented and identifies qualitative goals for improvement. Various alternatives are discussed to achieve the goals. After determining the benefits and costs of the alternatives, the> ogo OB Margen ooo = team prepares a plan with quimtifuble mec SF improvement. @ Do: The team puts the plan into practcr amd monsnors progress. In order to determine improvements i tie PROSE data are collected continuously The optor is kept ope © incorporate changes if required after review G) Check: The team analyses the data collected denne Se €° step and compares it with plan step. E mae dewsson © seen, the team may either reevaluate the plan or Geode © discontinue the project. 4 ro ‘Act: If the results are successful, the team documents the revised process. This becomes the standard procedure whe others can use. _—_____—+ (G) JUST IN TIME Just-in-Time GIT) is often called zero inventory and stockless system. It relates to producing and delivering finished products just-in-time, sub-assemblies just-in-ti to be assembled into finished products, fabricated parts justin-time to go into sa into fabricated parts. JIT is an operational control technique rk aims at improving retum on investment through cost reduction, quality improvement, waste reduction and inventory control. JIT adopts preventive maintenance of the plant to avoid machine breakdowns. Preventive maintenance goes 2 long way to ensure continuous production. Due attention should be given to train and develop employees who are largely responsible to provide quality goods and services. Workers are responsible to produce quality parts just-in-time to support the next production process. JIT is successfully used by Indian companies like Maruti Suzuki, Tata Steel, Tata Motors, Escorts etc. One of the reasons of Japan becoming industrial leaders in the world during 1970s and 1980s was development of just-in-time (IT) production systems. JIT goes far beyond inventory production systems. It is based on planned elimination of all waste and continuous improvement of productivity. It applies to all forms of manufacturing, job-shop, process as well as repeuave- ial Managerne 106 row Vipul's™ du jobs. JIT results in much less inventory, lower costs and. betie, quality. JIT means: (a) Producing the quantity of units that is needed; no mor, no less. (b) Producing them on the date and at the time required; ny | before and not after. (©) Delivering the exact quantity demanded at the scheduleg | time and date. Objectives of JIT: (a) To produce products wanted by the customers i, (b) To produce products at the time of use by customers. toe (co) To produce products with optimum quality. (d) To produce in the minimum possible lead times. (e) To produce products with consumer-friendly features. ( To produce with no waste of labour and with zero idle inventory. (g) To produce by stressing occupational development of workers. / Aéatures/Characteristics of IT: > (1) Consistent high quality: In order to achieve a uniform flow of materials, JIT system tries to remove scrap and network. A sound JIT operations must maintain conformity with product or service specifications. JIT systems control quality at the source. Workers share major responsibility to make JIT | successful and management must prepare them for the same. (2) Pull method of material flow: In this method, the customer — demand activates production of the item. This method pulls 4 unit to where it is needed just as it is needed. A pull system uses signals to request production and delivery from points of origin to distribution. Pull method is used both within the production process and with suppliers. By pulling materials in small lots just as it is needed, the cushion of inventory that hides the problem is removed. This reduces both investments in inventory and manufacturing cycle time. }otal Quality Management ae 3) (4) (5) (6) 107 Preventive maintenance: Preventive maintenance can reduce the frequency and duration of machine down time. Maintenance is done on a frequency that balances the cost of preventive maintenance programme against machine failure. Further, the plant is kept in optimum condition thereby cutting the overhead costs. Workforce responsibility: Workforce can be trained to do more than one job. Where workers need higher skills, shifting them to other jobs may require extensive training thus adding to the cost. Multi-skilled workers can perform the job of sick employees or those on vacation. Small lot sizes: JIT advocates use of small lot sizes because it is economical and efficient. When lot size is reduced, it cuts the cycle of inventory which in turn reduces the time and space involved in manufacturing and holding inventory. Small lot sizes reduce lead time. Lead time refers to the time between the start and completion of an activity. In inventory management, it is the time between ordering and receiving goods. Small lots can be processed more efficiently ensuring use of capacities more efficiently. Automatic machines: Automation reduces the cost of operations and production. Money saved under JIT can be diverted to the introduction of automation. It is important to plan automation to achieve higher benefits and market share. Automated equipment is more compact than regular equipment for any given volume of production. Some automatic transfer machines are also less expensive than the equivalent special-purpose machines. Quality of product is made superior and standardised. Uniform workstation loads: The plants that achieve uniformity in daily load on individual workstations are found to be more efficient. Uniform load is achieved by assembling, the same type and number of products each day. This results in creating uniform daily demand at all work stations. Uniform loads facilitate preparation of master production schedule.Vipul’s™ Industrial Managemen, 7 — th ve (8) Sound relations with suppliers: 7 yu works wit very low ‘ Bae 5 7 ain levels of inventory it is extremely imp sound relations with suppliers. The stock pely mast be frequent, having short lead times, arrival on scl “ we nt be of specified quality. When the plant is working, ‘ul capacity the supplier may have to deliver goods several times ina ay. Many purchase managers favour local suppliers who are manageable. (9) Line flow strategy: Line flow strategy helps to cut down the cost of operations. In case of mass production machines and - workers can be organised into a product layout. Where the volume is inadequate group technology can be used to design small production lines that can use components with common attributes. Change over from one component to another is minimum. (10) Standardisation: Standardisation of components and work are highly suitable where the: nature of work is repetitive, With increased repetition workers learn to do the job more efficiently. The main objective of JIT is to: achieve high productivity with low inventory which is made possible by standardization. (4) QUALITY CIRCLES incept/Meaning of Quality Circles: Quality circle (QC) is one revolutionary management technique developed to a considerable extent in Japan to upgrade quality, productivity and morale in an organisation or an enterprise. It is a technique useful for raising the productivity with people’s power ie. with the co-operation and Participation of employees at various levels. Japan achieved excellent results in the field of quality and Productivity through this technique. Today, productivity rate is the highest in Japan and Japanese goods are sold all over the world as best quality goods. This marketing miracle is the net result of quality circle movement in Japan. Quality circles (QCs) understanding, collective efforts are purely voluntary and are useful for studying and solving the problems through of all members of the circles who are necessarily pe freTotal Quality Management cow 108 tments. It is an joint efforts and Jy a mechanical the concept of company’s employees working in various depar' attempt to raise quality and productivity through meaningful participation. Quality circle is not mere! tool of business management but it recognises participative management in practice. A circle here, means a small group and quality means improvement. In this sense, quality circle means a small group constantly interested in bringing improvement in quality through voluntary but joint efforts. A quality circle is defined as 2 small group (three to ten or twelve) of people doing similar work, meeting to identify, analyse and solve quality problems of products. They usually meet for one-half hour to one hour each week in or near their area. Membership is strictly voluntary and anyone who wishes to join is welcomed as a member. According to another definition, quality circle is a group of factory workers from the same area who usually meet for an hour each week to discuss their quality problems, investigate causes, recommend solutions and take corrective actions when authority is in their purview. Thus, quality circle is not a system or fad or programme but a way of life. It is a change in the way one’s mind | is set. It is not going to change the organisational structure but it '} will change the way you relate to people within the work environment. The objectives of establishing quality circles are ) many and varied in character. They include: Improvement in _) quality, self-development, improvement in communication and attitude in the work life, cordial industrial relations, full ¥ utilisation of capacity of employees, job satisfaction, waste " reduction, cost reduction, team building, raising productivity and improvement in the participation of employees in solving problems of an enterprise. features of Quality Circles: orp eae (1) Voluntary character: Quality circle is purely voluntary in character. Membership is free and voluntary. Here workers come together for collective study of common problems relating to their department or work place and their solutions. Quality circles are not imposed by the management nor they give any direct and immediate benefits to members ic.110 Q) GB (4) (5) Vipul’s™ industrial Manogeme., ver i anagement which s is the participative m™ ‘ erate for emerging the concept of quality circles. May ; respons perate in a manufacturing unit at One ity may 0 quality circles may jent but can consult other circle, “ time. Each circle is independ need arises f lity circle is te Rooster basic objective of quali > CFeate iy eat consciousness core ees at alj levels. It is a people building philosophy. eee is expected to help its employees to grow and develop through, quality circles. Quality circles are not for maximising profits but for quality improvement, market reputation and consumer satisfaction. Quality circle is a People building technique. Team work is the essence of quality circles. Effective participation: Members of the circle are expected to participate actively in the projects of the circle. The circle leader has to motivate members and encourage them to associate with this participative programme. This concept firmly believes that brains of workers are most precious and need to be used for the benefit of the company. It suggests the importance of participation of employees for progress and stability of their company. Members help others to develop: Quality circles are for the introduction of new methods, techniques and systems for quality improvement and cost reduction. For this, circle members will have to help others (their colleagues) to understand and use new techniques. Every member has to bring the development and growth of others working in the organisation. The philosophy of quality circles suggests “Growing Big through Small Groups”. Stress on group efforts: A quality circle is a group or a team which thinks and suggests collectively. The circle as a whole is important and not the individual member. The recognition of any significant achievement 80es to the circle and not to individual. Thus, quality circle achieves the best performance through everyone's participation and many brain storming Sessions arranged regularly by the members,er vue mw jotal Quality Management (o) Participation of management) Quality circle ts an attempt bY Workers to find owt new techniques for improving, quailty and aloo for eliminating wastages of all kinds, They alone may not find out beat techniques, Here, management has fo play ite jole and offer helping hand to the ity circles Management must support workers In th Jor this, proper training, needs to be give alco, Management's attitude should be support circles, It should help quality circles as such mo! necessary for the growth of quality circles. members of qual in creative activity: n to management ive to quality ral support circles are for (7) Encouragement to creativity: Quality are encouraging creativity of members. Members encouraged to suggest new ideas and schemes which may not be perfect in the initial stage Such wild ideas offer prac tical solutions in the long run. For this, creativity should: be encouraged in the quality circles. They involve people in sms and tap their brain power effectively, Such encouragement through QC Members of the quality circle usually belong to one department, Their study relates to their work area, Naturally, their projects must be related to their work and not the work of others. Members know their work ‘ecurately and not the work of others. Naturally, every quality cirele is clear and specific as regards its activitie (9) Collective approach: Quality circles are for promoting quality at all levels and in all activities. It is accepted as joint responsibility of all workers and management. Quality | Nireles help the company in all possible ways, They avoid | thinking in terms of “They he. management “and “we i.e. | quality circle members”. Collective approach on the part of both the parties is encoura d by quality circles This technique raises the moral of employees and_ introduces solving, proble creativity of employees is given (8) Direct relationship with we consciousness participative manage ment in practice. (10) Role of group leader: Every quality circle has its group leader saath weressary qualities of leadership. He will give proper eas and thoughts of members. He presides direction to the id However, he has °° over the meetings of qualit y circles.2 Fe Vagal’s™ ustrs! Managemen, authority. He acts as a co-ordinator of his cirde. He wy encourage the process of collective thinking and create interest and involvement among the members of the quality Gxdes. The group leader has to create unity ang understanding among the members so that the circle wi operate as one integrated unit. The group leader has to guide the members and has to act as a link between his circle ang the management. In brief, the group leader has to play a dynamic and creative role in the functioning of QCs. In 2 nutshell, quality Gre is 2 team work for quality improvement It is a voluntary and self-service activity useful to company, employees and the national economy at large. This concept has its own philosophy with wide meaning and Significance. Quality circles need suitable organisational structure for effective intemal communication and efficient functioning. Quality circles are not merely for studying, analysing and suggesting solutions but for implementation for concrete results in relation to quality, cost and productivity. The concept of quality Circles is different from Taylor's concept of scientific management which lacks workers initiative. Similarly, it is also different from labour participation schemes and such other schemes. It is, in fact, a participative programme on purely voluntary basis. The figure given below suggests quality circle operation cycle:v Ww wet Ae av SIV Management. ¢ Ww uo Wa Quality circles were first formed in Japan in 1962 when the spantry Suffered trom low quality goods and there was a need to rove the situation, It is claimed in Japan that success of quality axes has contributed to increase profits by 16% in all industries ani in certain large companies it has contributed to increase profits by 25%. Formation of Quality Circles: @ Quality circles means formation of small groups of employees working usually in one department of an industrial unit, @ Such circle includes 3 to 10 workers as members. @ This voluntary group of workers meets regularly to study and find out ways and means for improving the quality of production, reduction in the cost of production by eliminating wastages and rejections. (4%) There may be large number of such circles in one industrial unit. Each one will carry on its activities independently. Quality circles is a small group of workers who usually meet for an hour or so each week in order to study their quality problems, investigate them, recommend solutions and take initiatives in taking corrective actions. (5) SIX SIGMA Meaning of Six Sigma: Jn 1986, Bill Smith, a Motorola engineer, developed the six Sigma programme. Six sigma is a set of tools and strategies for process improvement. Six sigma attempts to improve the quality af process output by identifying and removing the cause of Setects or errors. It minimizes variability in manufacturing and business processes. Under six sigma Motorola defined six sangard deviations of variation which could be squeezed within Se Limits defined by their customer's specification. This meant Sgrificant and valuable degree of improvement in providing, products, services and processes. Six sigma uses a set of quality management methods such as statistical methods. It also creates a Spesal hierarchy of people within the organization. Six sigma Potect follows a specified sequence of steps having quantified : iWve 6! Indus Me wey Viputts HUH Aya , value targets eg., cutting down pollution, cost reduction, Were : 7 , iy M Profits, process cycle time reduction, customer bAtlsfactig,, et, Six sigma has two major objectives: (a) To improve the customer satis in products/services. (b) To reduce sources of variations and improving, quality ang Productivity through continuously improving, processes Six sigma is a set of tools that a company adopts or adapts achieve dramatic improvement in its profits. The use of these tools cut down costs and removes inefficiencies in produc thon ¢ in use of resources, Six sigma helps a company to re-tool ang ,, Create itself with a view to prevent problems and defeats, With the use of six sigma a company can apply statistical tools, measure ity, Processes and analyse them to reduce variation in Output, Whey Processes are measured, they need to be documented, ‘1, company can recreate the same process to meet Six sig) specifications leading to improvement in customer satisfactj The key concepts of Six sigma are as follows: @ | tion by removing, dey, | dete, Ma on, Critical to Quality: Attributes most important to customer, (2) Defect: Failure to deliver what the customer wants, (3) Process Capability: What you process can deliver, (4) Variation: What the customer sees and feels, (5) Stable Operations: Ensuring consistent, predictable processes to improve what the customer sees and feels, (6) Design for Six Sigma: Designing to meet customer needs and | process capability. Features of Six Sigma: } f (1) Defect free operation: Six sigma describes improvement initiatives which express process capability in parts pe million. A process with a sigma level of six generates # maximum defect probability of 3.4 parts per million. sigma is a powerful tool. It can convert defect prone busine | into an organization of perfection. When a business adopts 5* | sigma levels, it indicates fewer and fewer mistakes "| everything we do. |y garaualty Management (2) 3) (5) (rr 115 Sigma | Defects per million lo 6,97,000 20 3,08,537 30 66,807 4a 6,210 5o 233 60 3.4 Source: Production Management by L. C. Jhamb p. 463. As shown in the table when sigma level goes up defect rate reduces indicating product improvement. Six sigma reduces defects by: reducing the variability through re-engineering, the process and allowing higher variations in the specifications. Improved market image: As quality products are rolled out consumers get money’s worth and they continue their patronage for the same product. Moreover the name of the company gets established in the market as the maker of quality products. Improved market image continues to rope in new customers. Reduced process variation: Process variation takes up when the production activities are uneven, In order to maintain uniformity in production, firms use six sigma. It brings about stable and predictable process results. As a consequence, process variation gets reduced. Better approach: Six sigma enables to measure, analyse, control and improve the manufacturing process. Even total business operations are kept under control. Six sigma is a better approach because it is result-oriented. Organisational commitment: Six sigma should not be used as a decorative piece. It must be based on active support, involvement and commitment of management and employees. Top management is committed to improve quality. The managers must display their capabilities from planning for work to planning for accomplishment of specific goals.ns oT Vipul’s™ Industrial Managemen, (©) Eaming profits: In order to determine whether six sigma j, working well, management is advised to check its profit earning. Measurable and quantifiable financial returns indicates that six sigma is progressing well. Six sigma cay, generate higher profits provided all functional areas o¢ management are also in their place such as human resource, finance, marketing, R & D, etc. (7) Use of verifiable data: There is no plate for assumptions ang guesswork in six sigma. The entire operation of six sigma jg based on verifiable data and statistical methods. All decisions are taken only when reliable data is collected, analysed anq interpreted. Such finding must reflect ground reality. Only then it can be put into practice. Priority to improvement: Six sigma is directed towards improving all processes but not necessarily to the 3.4 level, Individual organizations determine an appropriate sigma level for each of their processes and work hard to achieve these. Because of this reason, management must decide priority areas of improvement e.g,, if fault is detected at any stage of production it is necessary to identify the reasons responsible for fall of quality; try and remove that cause and bring up better quality product. Mumbai's Dabbawalas: They make one error on every 16 million transactions. The world renowned Forbes magazine has selected them as an outstanding | example of six sigma’s success. Now these Dabbawalas are international figures. The Forbes story details the efficiency with | which they deliver the tiffins of their customers. Around 5,000 | Dabbowalas deliver 1,75,000 lunches everyday and take the empty | tiffins back. They make one mistake in 2 months. This means there is | one error on every 16 million transactions. This is thus a six sigma | performance — the performance which has made companies like Motorola world famous for their quality. (8) Steps in Six Sigma: (1) Define the product or service: In order to ensure that sit sigma works with positive result it is necessary to first defineoak eaiy Management wr 7 oe service. While defining the product; it is Paes fo Note its nature e.g., whether it-is durable or non- ee Product; consumer or industrial product; indoor or OF Service etc. When the nature of product/service is established it indicates the direction through which six sigma has to proceed. @) Identify customers and their needs: The prosperity of business depends on consumer patronage. The business must identify and locate its customers. Also establish the customer's needs. Needs arise because of absence of a Product/service wherein a customer feels deprived. Needs go on increasing along with improvement in economic status. Six sigma is for providing satisfaction to consumers through quality product/service. Management must find out what is ritical to quality for the customers. (3) Identify suppliers: It is always desirable to have more than one supplier. Take note of the inputs that the business requires from each supplier. Always negotiate with suppliers who agree to provide regular supply of specified quality. Management has to establish internal processes to add value to the product/service. Under six sigma it becomes easier to trace defects that take place in these processes. (4) Map the processes: It is advisable to put the process of work on paper and computer for easy reference. As the work progresses, concerned persons know how it is supposed to proceed. Any deviation will call for correction which is not difficult to take. When the process is mapped it gives bird’s eye view about the entire operation. (5) Identify defects: Some defects are controllable and avoidable. Few defects are unavoidable. Six sigma experts note when and where defects are taking place and what is the frequency of these defects. In the light of this finding the process of work is improved upon. (6) Ensure continuous improvement: Regular and continuous improvement is achieved through measurement, analysis and control. At times it becomes necessary to redesign product and process to obtain better quality results. Spina experts Cnenlkiely ow charactors bics male o rapa es : G a oe ian! = /(2) FORCE FIELD ANALYSIS Kurt Lewin provided the concept of force field analysis in 194) It is a powerful strategic tool used to understand what's need, : for change in both corporate and personal environments, i stated the change was the result of the competition between driving and restraining forces. “The process of determining which forces drive and which resist a proposed change is called force fieli analysis.” In order to implement a change, management should analyse the change forces. By selectively removing forces that restrain change, the driving forces will be strong enough to facilitate implementation. When restraining forces are reduced or removed, employees will welcome the desired changes. Driving and restraining forces work in opposite direction. Change is a dynamic balance among these forces working in opposite direction. Change will remain without variation when these forces are equal in strength. In such a situation a quasi-static equilibrium is reached. This equilibrium may continue for some time an¢ when there is any change a new equilibrium is reached. It §wl quality Management gu" 15 ortant to note that change occurs only when the two forces are jot equal in strength. R R R, Restraining Forces Current TELE Quasr-static Situation” a RCE qilibrium Driving Forces D, D, D, D Force Field Analysis The driving forces may dominate the restraining forces and vice versa. In a change situation, management can take one of the following decisions: (a) When the driving forces dominate the restraining forces, management can implement change by pushing aside | restraining forces. (b) It is desirable that management either postpones or gives up the change programme, when the restraining forces dominate the driving forces. ‘ (c) When the driving and restraining forces are equal in strength, management can either push the driving forces or immobilise the restraining forces to implement the change. ornVipul's™ industrial M, rv TER " RESTRAINING Fo) ING FORCES RCE f one Foneenange) (Obstacion to Change) Statt feartul of new technology PRESENT STATE Impact on environment OR DESIRED STATE Potential disruption In work (3) FAILURE MODE AND EFFECT ANALYSIS (FMEA) Meaning of FMEA: Failure Mode and Effect Analysis (FMEA) is one of the first systematic techniques for failure analysis. It was developed in late 1940s to study problems that might arise from malfunctions of military systems. FMEA is often the first step of a system reliability study. It involves reviewing as many components, assemblies and subsystems as possible to identify failure modes and their causes and effects. For each component, the failure modes and their resulting effects on the rest of the system are recorded in a specific FMEA worksheet. A successful FMEA helps to identify potential failure modes in various phases of the product life cycle. Effect analysis refers to studying the consequences of those failures on different system levels. FMEA also documents current knowledge and action about the risks of failures. It is used during design to prevent failures. Latet it is used for control before and during ongoing operation of the process. Ideally, FMEA begins during the earliest conceptual stages of design and continues throughout the life of the product or service. FMEA includes review of the following: (i) Steps in the process (ii) Failure modes (what could go wrong?)il quality Management bai 127 happen?) (what would be the conse (ii) Failure causes (why would the failure (iv) Failure effects ni quences of each FMEA is used to a evaluate Processes for possible failures and to peeve’ Y correcting the processes proactively rather th yeacting to adverse events after fai ibaa tress ON preventi its after failures have occurred. There is 3 fe ml ion which may reduce the risk of harm to both as sis and employees. FMEA is particularly useful in mee on _Rew process prior to implementation and in assessing the impact of a proposed change to an existing process. Hence FMEA should be the guide to the development of a complete set of actions that will reduce risk associated with the system, subsystem and component or manufacturing/assembly process to an acceptable level. Definition of FMEA: Failure mode and effect analysis (FMEA) is defined as “a procedure in which the cause of potential failures are identified, their effects assessed and corrective measures are recommended.” Objectives of FMEA: (1) To improve the design of the system. (2) To improve the design of the subsystem or component. (3) To improve the design of the manufacturing process. (4) To identify and prevent safety hazards. (5) To minimize loss of product performance. (6) To improve test and verification plans. (1) To consider changes to product design or manufacturing process. To develop preventive maintenance plans for in-service machinery and equipment. (9) To identify significant product or process characteristics. (10) To develop online diagnostic techniques. . (fSteps Involved in FMEA: (272 E«he EN ' (1) Review the process: It is necessary [Link] a detailed flow chart of the process of work. The review helps to assure that (8)i, Vipul’s"™ Industrial Managemen, 1 na ww all team members are familiar with the process. Having the process flowchart in hand, the team members familiarize themselves with the process by physically walking throug, the process. This is the time to assure everyone on the team to understand the basic process flow and the workings o¢ process components. (2) Assemble team: Assemble a team of people with diverse ( knowledge about the process, product or service anq customer needs. (3) Identify functions: FMEA has to be specific and pinpointing in its exercise. For this purpose common functions included are: quality, design, manufacturing, testing, reliability, maintenance, supplies, customer service etc. (4) Failure modes: Team members have to identify each mode of failure that will impact product, process or service. It is important to take a note of all possible causes of each failure mode. Failure mode is the manner in which an equipment or machine failure can occur. The typical failure modes are: (i) premature operation (ii) failure to operate at the prescribed time ( (iv) failure during operation i) failure to cease operation at the prescribed time (v) degraded or excessive operational capacity. (5) Effects: For each failure mode identify all the consequences | ( on the system, related systems, process, related process, product, service, customer or regulations. These are the potential effects of failure. It is necessary to determine how serious each effect is. This is called severity rating o S. Severity is usually rated on a scale from 1 to 10 where 1 is insignificant and 10 is catastrophic. If a failure mode has more than one effect, write on the FMEA table only the highest severity rating for the failure mode. (6) Causes: For each failure mode, determine all the potential root causes. Use tools classified as cause analysis tool as well as the best knowledge and experience of the team. List all fhvue ue possible causes for each faihire mode on the /MEA form bor each cause, determine the occurrence rating oF OF Thie rating estimates the probability of failure occurring, during the work process, Occurrence is usually rated on a seale from | to 10 where | is extremely unlikely and 10 is inevitable, On the FMEA table, list the occurrence rating for each cause 0 Detection Rating: FMEA is extremely effective in identifying the risks of greatest concern and thus focusing, design and teet activities to eliminate that risk or reduce it to tolerable levels Detection is an assessment of the likelihood that the current controls (design and process) will detect the cause of the failure mode thus preventing it from reaching, the customer Detection can take place: (a) during the design and development process (b) during the manufacturing process (0) during operation For each control, determine the detection rating or D. This rating estimates how well the controls can detect either the cause or its failure mode after they have happened but before the customer is affected. Detection is usually related on a scale of 1 to 10 where 1 means the control is absolutely certain to detect the problem and 10 means the control is certain not to detect the problem. On the FMEA table, list the detection rating for each cause. 8) Recommended actions: Now it is necessary to identify recommended actions. These actions may be design process changes to lower severity or occurrence. There may be additional controls to improve detection. Persons. responsible for the actions and target completion dates h. to follow recommended actions. When the actions are completed, note results and the date on the FMEA form. Also note new S, O and D ratings. With help from recommended fetions, it is possible to reduce the risk of failure to acceptable levels, or ave: { (D) 1SO-9000 | What is ISO-9000? Quality standard recognised at the global level is calleg 1SO-9000. It provides common standards of products and services worldwide. ISO-9000 is essentially a mark of quality assurance It is adopted by more than 100 countries. The developed nations prefer to import from the exporters who have obtained ISO-90y certification for their products. Such exporters adhere to six quality control norms. They have better opportunities to export Indian companies with ISO-9000 certification do maintain good quality standards and in their case quality inspection from EICs not required. 1SO-9000 is a series of five international standards on quality management. The series consists of ISO-9000, ISO-9001, ISO-9002 150-9003 and ISO-9004. These five series are applicable to a grour of products or services and are not specific to a product or serve Out of these five standards two are only guidelines.yore! Quallly Management www iM standards _ §ys0200) wy OMT | Consists of 20 elements covering design, development, Production, installation and servicing, It is the most Somprehensive standard, TSH0? [Same as 9001 without design and service _ __{ Same as 9001 without design and service. [909003 [Consists : ; : jIsc 900) Consists of 12 elements covering, final inspection and | {esting for laboratories, warehouses etc. | Guidelines <<< | ee 1SO-9000 IUis used to find out which of the three standards is i applicab 80-9004 [It interprets the standards and provides suggestions | which are not mandatory. Standards of ISO 9000: There are three standards of ISO 9000 which are: ISO 9001, ISO 9002 and ISO 9003. (1) ISO 9001: 2008 - ISO 9001 is one of the standards within the range of ISO 9000 standards. This standard is based on a number of quality management principles including a strong customer focus, the motivation and implication of top management, the process approach and__ continual improvement. ISO 9001 indicates requirements for a quality management system where an organisation: {a)_ needs to show its ability to consistently provide product that meets customer and relevant statutory and regulatory requirements; and (b) aims to increase customer satisfaction through the effective application of the system All requirements of ISO 9001 are generic. They are applicable to all organisations regardless of type, size and product involved. ISO 9001 is an internationally recognized Quality Management System. ISO 9001 does not define the actual quality of the product or service. The standard helps to achieve consistent results and continually improve the process. ISO 9001 evaluates whether Quality Management System is appropriate and effective while forcing you toon ~ Vipul’s™ industrial Managemene identify and implement improvements. Continuo. improvement assures that customers benefit by receiving products or services that meet their requirements. Interna’’,, the organisation will benefit from increased job satisfaction, " improved morale and better operational results. The 2) (3) community gets benefitted through fulfilment of legal and regulatory requirements. ISO 9002: ISO 9002 was last revised in 1994. It was titled: Model for quality assurance in production, installation ani servicing. It is basically the same as ISO 9001 but without covering the creation of new products. It was applicable for contract manufacturing. Organisations now use ISO 9001. Strictly, there is no longer need for ISO 9002. It has been replaced by ISO 9001: 2008 which replaced and amalgamated ISO 9001, ISO 9002 and ISO 9003. ISO 9003: ISO 9003 is an umbrella term that refers to 2 standard developed and published by the International Organisation for Standardisation (ISO). The latest version of this standard is ISO 9003-1994 and is titled “Quality Systems - Model for quality assurance in final inspection and test”. ISO 9003 has now been revised as ISO 9001. ISO 9003 is a non-indust? specific certification but is intended for business not needit design control, process control, purchasing or servicing but uses inspection and testing as a means to determine if fin products or services meet requirements. Certifications 2* issued by the third party. ISO 9003-1994 is now obsolete. GUIDELINES OF ISO: