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141107PRODUCTIVITY AND QUALITY MANAGEMENT

Productivity

Measurement of output related to inputs Yield Ratio

Project Exercise given on 1st lecture ( 30 ) to be done individually.

Quality Different definitions

o Conventional one that wears well, well constructed and will

last for a long time.Therefore, will meet cost requirement

We will deal with various other definitions later Before that let us try & trace the History of Quality Management

History of Quality Management

- The issue of Quality of Goods and services is not new. Throughout

history say 1700 BC King Hummurabi of Babylon introduced theconcept of product quality and liability into the building industrydeclaring

o .. if the building falls into pieces and the owner is killed, then

the builder shall also be put to death. If the owners childrendie, then the builders children also die.

- Industrial revolution:o Early-mid 19th century

o Many technological advances (Do you remember our

discussion on The Race)o Invention of steam engine

o Standardization of engineering components as screw threads

o Advent of mass production early 20th century

o Increased demand / control of product quality

o 1920-30 Walter Steward at AT&T Bell Laboratories

- Used statistics for Industrial process

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- His book The economic control of Quality ofmanufactured products was considered as landmarkcontribution to the efforts to improve the quality of mfd.Goods. He reported

Variations could be understood through

application of simple statistical tools, such assampling and probability analysis. His basis wasUse of Statistics to processes to provide anearly warning and allow products to be adjustedprior to producing defective products.

- He developed control Charts to track performanceover time.

o 1920

o The concept of quality emerged in 1920s in the USA.

o W. Edwards Deming: (disciple of Schewart)

- Went one step ahead.

By shifting the theory of checking Q bystatisticians from Inspection stage to Inceptionstage.

- Deming was regarded as father of TQM.- He believed Q concerns everybody

o Before WW II, US / Europe felt Demings theory as a useless

pursuit. They were more concerned with cutting costs andselling. All their management attention was pointed towardsreduction in human labor.

o Now, Japan (post WWII) was a shattered economy. Gen.

McArthur (Governor of Japan) brought Deming to Japan,o The Japanese listened felt it was a natural way to prevent

wasteo Their willingness to heed boosted Demings exhortation.

o 1954

o Again in 1954 JURAN visited Japan, helped Japanese

manufacturers restructure gave way to tremendous exportspotential thrust upon them Q concepts and tools earlierthese concepts were designed primarily for factory laterbecame the basis for an overall Management process

o 1979

- Philip Crosby (started a Quality Consultancy firm)

He said Quality is Free Zero defects

Product should be in complete conformance to

defined Q parameters and not AQL

Quality is achieved by prevention, not appraisal

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o 1970-80 - Japan hit the globe (with Deming & Jurans) ideas

o Japanese created the leading edge in manufacturing

- First with basic technology (steel, aluminum, shipbuilding

- Then, with increasingly sophisticated products likemotorcycles, cameras, TVs, semi conductors,appliances

- They invaded the world market- They told the world Throw traditional thinking face

bitter moments of truth

For example, JIT (Taichi oheno / Shgeo Shingo) is

a revolutionary shift in paradigm

Reverses workflow from Supplier Manufacturer

customer to Customer Manufacturer Supplier.

This shall strip away all Inventorieso Genuchi Taguchi

- Cut the noise level at design stage to get uniformityfrom product to product

o Kauro Ishikawa

- Fish Bone diagram (identifying possible causes ofproblems)

- And, Quality Circles.- Important:

Inverts traditional management thinking through

bottom up problem solving.o 1980 - NBC, USA

If Japanese can do it why cant we?

Struck a public chord

And unlike 1970s US companies took Quality

serious

By 1990 virtually all US companies were on a

quality revolutiono E.g. Motorola six sigma concept

o Statistical improvement in output

o Everything that is done has to be

99.99997% correcto Later six sigma 0.334% - defect not >

1ppm.o India

- Not lagging behind due competitive pressures, --M&M, C&G, Amtrex, Stanchart, HLL, Philips (I), Godrej,many others.

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(Q is no more a tool for competitive advantage A thresholdlimit and a Qualifier)

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Definitions: Webster dictionary

o Quality is physical or non-physical. Characteristics that

constitutes the basic nature of a thing or one of itsdistinguishing attributes / features

Radford:

o Characteristics or grade or combination of characteristics

which distinguishes one article from another, or goods of onemanufacturer from competition, or one grade for product froma certain factory from another grade out by the same factory.

Juran

o

Quality is fitness for use

Grant & Leavenworth:

o It is convenient to think of all matters related to Q of

manufactured product in terms of these functions of ---specification, production and inspection

Philips Crosby

o Quality is conformance to requirement

o Quality is respect to Humanity

Demingo Quality should be aimed at the needs of the consumer present

and future

Feigenbaum

o Quality is the total product and service characteristics of

marketing, engineering, manufacturing and maintenancethrough which the product and service in use will meet theexpectation of the customer.

Mizunoo Product quality encompasses those charactierstics which the

product must p0ssess, if it is to be used in the intendedmanner

Teguchi

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o Quality is the loss (from function variation and harmful effects)

a product causes to society after being shipped, other thanany losses caused by its intrinsic functions.

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Definitions of Quality Gurus (some more insights)Give here to the students the Comparison table (handwritten)

W. Edward Deming

- Developed Jurans road map to quality- 85% of quality problems are due to poor system- 15% only employees Systems provides a common language- Heart of Q strategy is SQC to identify special causes and common

causes of variation- Categorized Personnel performance evaluation as management

by fear- His 14 points and 7 deadly sins are widely applauded

o 7 deadly sins:

Lack of constancy of purpose

Emphasis on short-term profits

Evaluating performance, merit rating or annual review

Mobility of management (commitment to theorganization impacted?)

Management by visible figures

Excessive medical costs

Excessive costs of liability

o 14 points

Create and publish to all employees a statement of aimsand purpose of the Company. Mgmt. must demonstrateconstantly their commitment to this statement.

Learn the new philosophy by top M and everybody U/stand the purpose of inspection for improvement of

processes and reduction of cost.

End the practice of awarding business on the basis ofprice tag alone

Improve constantly and forever the system ofproduction and service

Institute training (for skills).

Teach and institute leadership

Drive out fear, create trust and a climate for innovation

Optimize toward the aims/purposes of Co. Eliminate exhortations for workforce - Eliminate quotas /

MBO instead learn capabilities of process and how toimprove them.

Remove barriers that rob people of pride / ownership

Encourage education and self improvement

Take action to accomplish the transformation.

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Joseph P. Juran

- Quality is fitness for use of customer

- Full management commitment to Q effort not just a leadership role,

but hands on involvement

- His universal process of Q improvement requires studying

symptoms, diagnosing causes, and applying remedies

- Jurans Trilogy

o Quality Planning:

Process, identify customers requirement from the

product, service features the customer expect, theprocess that will delivery those products with correctattributes, and then facilitates the transfer of this knowhow to the producing arm of the organization

o Quality Control:

Process where product is actually examined andevaluated against original requirement expectations ofcustomer, problem detected corrected.

o Quality improvement:

Process sustaining mechanisms are put in place, sothat quality can be achieved on a continuous basis.Includes, allocating resources, assigning people topursue quality projects, and in general establishing apermanent structure to pursue Q and maintain the gainssecured.

Juran recommended project-by-project improvements in which projects

are selected on the basis of their projected return on investment.

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Armand V. Feigenbaum

- TQC everyones responsibility

- Said: Responsibility should be beyond design and mfg.

- He abhorred poorly designed inefficiently distributed,

incorrectly marketed, etc.

- His 9 Ms of Quality

o Market

o Money

o Management

o Men

o Motivation

o Materials

o Machines and mechanism

o Modern Info. Methods

o Meeting product requirements

- His 10 principles

o General Management involvement

o Serious consideration of employee ideas

o Long term continuity

o Involvement Office factory

o Clear, simple programs

o Careful initial preparation

o Purposeful involvement

o Fresh, relevant

o Line operation leadership

o Company wide QC

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Kaoru Ishikawa

- Customers view of product performance and producers view

- His 6 principles are:

o Quality first

o Consumer orientation

o Breaking down the barrier of sectionalism

o Utilization of statistical method

o Participatory management

o X functional management

- He suggested the following tools

o Cause Effect

o Stratification

o Check Sheet

o Histogram

o Scatter diagram

o Pareto charts

o Graphs / SQC

Shigeo Shingo

- Poka Yoke devices

Genichi Taguchi

- System Design (primary)

- Secondary design (secondary)

- Tolerances design (tertiary)

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Gravins 8 dimensions of quality:

(shift the approach as product moves from design manufacturing

market place.o 1. Performance: Industry reactions to objective characteristics

(User)

o 2. Features: bells and whistles or product /secondary to

basic function and less central to user

o 3. Reliability: Problem of product failing within a given period

of time period, more relevant to durable goods

o 4. Conformance: degree design / operational characteristics

match specification; related to reliability; factory (defects);

field (recalls repairs)o 5. Durability: Meausre of product life; technology, amount of

use before it deteriorates; repair costs, trade off between

repairs and replacement personal and economic cost)

o 6. Serviceability: speed, courtesy, competency. Rapid repair

with quality

o 7. Aesthetics: subjective assessment of look, feel, or sound,

individual preferences

o 8. Perceived quality: individual measures, brand image, names

often used when other info. Is not available.

To avoid confusion, Garvin suggested 3 step process to address

quality from its own perspective

o Use market resources to identify quality which connote quality

to customers.

o Translate these user-based characteristics into identifiable

product attributes

o Organize the manufacturing process to ensure products are

o made to specs.

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Determinants of Service Quality

1.Reliability:

Performing the right service, at the right time, consistency,

dependability

2.

Responsiveness:

Willingness / readiness to provide help

3.

Competence: Possessing skills / knowledge to perform

4.

Access, approachability, ease, waiting time, hours of operations

5.

Courtesy: politeness, respect, consideration, friendliness6.

Communication: language one can understand, listening, adjusting,

explaining the subject, cost, and how problems will be handled.

7.

Credibility: trustworthy, believable, honesty; company reputation, 8.

8.

Security: freedom from danger, risk, or doubt, physical safety, financial

security, confidentiality

9.

Understanding the customer: efforts, his needs, his requirements,

individual attention, recognizing the regular user

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QUALITY FROM BUSINESS IMPERATIVES POINT OF VIEW

Historically, hitting specs.. fitness for use, conformance torequirements. Also Crosby says this.

The question is:

Let us talk about specifications:

There are numerical target of components / measures to run the business,

and which a firm must make:

e.g. part shall be X cm by Y cm, and order shall be processed within X

days, hours, minutes etc.

Does the customer really wants to know this?

e.g. You go to a store to buy a set of tyres. The salesman tells you this is

the price, and the tires will last for 50000 miles

But it wears out after just 35000 miles how do you as a customer feel?

An emotion south of delight LET DOWN.

Let us see another case of similar nature:You are shown to the same set of tires. The salesman tells you the price,

and says the tires will last 25000 miles. But in goods shape, they last even

up to 35000 miles.

What would be your feeling here. CUSTOMER DELIGHT

These are the same set of tires same specifications.

As a customer u r not worried about details (specs)..

You just say, hee is the money, tell me how long the function will last?

In the example above, your feel for the quality of tyres has changeddramatically.

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OWING TO THE TIRES PERFORMANCE RELATIVE TO YOUREXPLECATIONS.

This leads us to a refinement of standard definition of quality:

Quality is that which meets the customers expectations.

Does this mean the definitions are wrong? NO.

They are not. In final analysis:

Question is what the customer says it is.

Company makes quality judgment not on a detailed reading of suppliers

operations specs, but on Impressionist scale e.g.

Did you or did you not given me what I thought I was paying you for? Did

you or did you not meet my expectations?

IF YOU DOUBT THIS, Consider how u make decisions.Now CONSIDER THE ROLE, expectations play in determining your level ofsatisfaction, from your own several experiences.

Why meet expectations only? Why not > expectations?

One can certainly go beyond expectations and this way you have delivered

more of something.

But this is not more of quality but more of something else.That something else is Value again customer perspective

The ratio of what I got to What it cost me.

Value = Got/Cost (denominator)

R we saying a firm has to provide or focus on added value

And forget quality.

The concept of addl. Value makes sense once we have got our quality

house in order.

This way Q becomes the foundation on which to build and deliver

additional value.

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FIVE PARADIGMS OF QUALITY

Evolved with time emanating due to changes in technology, society, etc.

1. Custom Craft Paradigm:- Clear communication between the customer craftsman- Focus on product and product performance relative to demands- Made exactly the way customer wants (tailor, bank loans, furniture)

2. Mass Production P:- Post mechanization focus on production rates.- No direct involvement of customer, although the product and

production is defined with customer in mind- Product performance low (e.g. rework, repair/scrap)

- Delivery time low- Sales from stock (labor intensive in some cases) e.g. readymadegarments, auto parts.

3. Statistical QC paradigm:

- Mass production may be, but focus is on process together withmechanized production

- SPC applied to obtain less generation of scrap / rework andproduction cost per unit lo

- E.g. auto parts, electronic components, pharma)

4. TQM paradigm

- Mass production + SQC focus on customer + supplier- Production lines may be same, but customer plays a part in product

definition, creation and performance evaluation.- Key tenets:

o Employee involvement, empowerment, customer focus,

continuous improvement, top management commitment,training, team work, -- result high quality product, low cost,faster delivery

o

Rework, scrap lowo Customer tells, firm produces reactive strategies

5. Techno craft paradigm- Frontier of quality? requires high level of product and process

flexibility, requires integration of man-machine (autocad etc).- Each unit is designed and say customer built (software, apparel, auto

etc.)

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Types of QualityQuality of design, Quality of conformance, quality of performance

1. Quality of design:

- Focus on development of products that are suited to customer needsat a given cost

- QoD begins with consumer response, sales call analysis and leads

to determination of product that meets customer requirement

- This is followed by development of adequate specs.

- This process demands effective cross-pollination of ideas among

marketing, sales, services, manufacturing, R&D, Customer sales.

Service call analysis is really the heart of the process.

- Customer prognosis of needs present and future.

- sales calls Idea of how people purchase.

- Service calls deals with problems users have with the product

performance.

2. Quality of conformance- Refers to the extent to which a firm and its suppliers can produce

products with a predictable degree of uniformity and dependability,

at a given cost in keeping with quality requirement determined in theQoD study.

- Once the specs are decided at QoD stage, it is followed by

organization installing a Kaizen (continuous improvement) process.

3. Quality of Performance:- Studies focus on determining how the Quality characteristics

determined in QoD (improved and innovated) and Quality of

performance are performing in the market place.

- The major tools used are study of after sales service, sales call

analysis

- These tools evaluate why consumers LIKE or DISLIKE a product.

Bring here the chart of Quality Evolution (p9 of written draft)

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Business Process Reengineering:

Why?Today, ever increasing competition makes it imperative forcompanies to respond, and react to customers, suppliersspeedily.

BPR and IT together can exploit each others capabilities leadingto a general improvement.BPR advocates keeping the design of process flexible, for easymodification (CPI.)

Philosophy of BPR eliminated wasteful activities.

o In manufacturing and non-mfg. environments

(Offices)

BPR focus helps with focus on customer

o Prevent errors rework less

o Cost decreased with higher productivity thru,

decreased cycle time

o Adaptability / flexibility

Business Process Pre-industrialization:

o One man shops small customer base concept developed to

accomplish a task only processes neglected, ignored.

o Demand / population then grew as a result organization

grew, and responsibilities and processes were divided (Labor

etc.), giving rise to specialized functions.

o Factories began appearing - 80-20 Men-Machine ratio

o Taylorism appeared when business grew further

o Era of Post industrialization

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o He brought in Systems Approach Scientific Management

o Systems approach FW Taylor stressed on

Division of Labor / Specialization / Functional

Responsibilities / with some checks and balances

With functional responsibilities little pools of

bureaucracy grew, which were self or inward focused.

Functional silos e.g. Marketing / production /

engineering / materials / quality / finance

Along the way FOCUS ON External CUSTOMER WAS

LOST, and its impact unseen not measured.

This gave rise to Conflicts as to which is important

Production process or Business Process.

The thinking was BP no direct contribution to output

Mass production was important.

The business was on a PUSH mode Anyway goods

were sold!! (Sellers market)

Belief that BP do not cost organization as much asproduction process.

No gains achieved thru BP

It was like an Albatross on the neck (Deck)

Processes were antiquated, ineffective, burdened,time-consuming.

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WHAT ARE BUSINESS PROCESSES?

A Business Process can be defined as a set of logically

related tasks performed to achieve a defined businessoutcome.o E.g. recruiting, or 5 year strategic plan.

o A Set of processes forms a Business System, i.e. the

way in which a BU or a collection of units carries outits business.

It can be represented as a Customer-Supplier Chain with

internal departments, external customers and suppliers aslinks

o Importance of accountability

BP can be of various types like inter-organization, inter-

personal and inter-functional.o Defining tasks (responsibilities) accountability, each

link a supplier for the next customer.

Inter-organizational BP takes place between 2 or more

business organizations or business units of the same

organization.

Inter-functional BP takes place within the organization but

across several functions or divisions in the organizationo E.g. new product planning, production planning,

recruiting, after-sales service, manpower planning,HR training, customer need analysis etc.

Inter-personal BP are those which involve tasks within and

across the small work groups within the organization

3 characteristics:

o Receives inputs

o It yields a definite result Product or service

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o A process is independent of functional areas. Can

span multiple functions. (both external and internal) BPR Levels of Maturity stages from Chaos to optimized

(TQM) Draw a Pyramid

o Chaotic (initial period)

Things in total disarray.

No formal procedures or management mechanisms toensure procedures are followed.

Designed to increase speed only (Info. Tech)

Obviously, only hackneyed processes speeded up! Thislogic was used to avoid IT

Focus on external factors not considered

They were supposed to be not dynamic

o Repeatable Processes (Elementary) Process no documented

Individuals dependent

Brief successors the modalities (what happens when heresigns without telling colleagues the modalities)

o Defined Processes

Here processes are not dependant on individuals, somemodalities established, input-output of proceduresdocumented,

So, when someone leaves, the procedures can beexecuted.

o Managed Processes

Processes / procedures not only defined / documented,but measured and quantified.

Processes have customer related measurement, targets,known cycle times, formalized change procedures etc.

o Optimized

What BPR aims for can reach this stage only if they are

understood and redesigned for optimization i.e.Quest: A stage where continuous processimprovement (CPI) is possible (TQM) neverending.

TODAY 50% of organizations are in Stage 1. !!!FIVE STAGES OF MATURITY MODEL

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CHECKLIST ON WHY FOCUS ON BPR

Antiquated and ineffective BP have made organizations were

bureaucratic Inefficient BP hamper an organizations ability to compete

BPR aims at re-engineering these processes to make them time-

effective, cost-efficient and customer oriented

BPR thus improves the Quality and productivity of an organization to

enhance its ability to compete

BPR pass through 5 stages of increasing maturity. Higher levels of

maturity signify greater stability and efficiency of the process. The 5 levels of the stages of Maturity Model are Chaotic,

Repeatable, Defined, Managed and Optimized

TQM enables an organization to have the appropriate culture for

continuous process improvement, which is a prerequisite for a

process to be in level 5.

o

Corresponding to the above

o Early stages, progressive BPR stages

There were functions / departments workingindependently, no clear modalities

Then came about importance on consistency ofwhatever you are doing, followed by

Accountability of process consistency (deviationsexplained) beginning of change control

Documentation then took shape (earlier process was bypractice and not on procedural documentation)

Documentation led to defined process with controlmechanisms established, KRAs established.

Followed by a CPI initiatives

Measurement was practicable on

Quality, Productivity time, Cost effectiveness)

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dh

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How do we go about redesigning a BPR? Corporate Strategy

Develop a business vision and the objectives of processes

Earlier, jut used to remove bottlenecks / inefficiencies

Now, cost reduction time compression, enhance quality ofoutput.

E.g. customizable products rather than stand

alone products, requires cross functionalintegration (Design-engineering production marketing customer)

Improve communication between the above

departments.

Select processes to be redefined

Priority established or critical success factor

Time availability, criticality, significant cost reduction,sales increase.

Understand and Measure existing process

Fix parameters

Baseline for future and current success

Process map flow chart

ERD (Entity relationship Diagram)

Dependency analysis Product to customer

Lay down process modalities and evaluate the means formeasuring efficiency

Redesign the process & build prototype of the new process

Use tools and techniques

Design case products primarily to draw process models

Use computer codes

Look into earlier designed stores in PC. Just modify

Do what if analysis (alternates AMAP)

Design metrics for measurement

Establish SPC benchmark productivity

Stabilize / optimize

Involves a constant redesign of process till they

stabilize. After stabilization, constant monitoring andscanning to be done to find use of new technology canthey be fitted in existing product IT or manual methods.

CPI (Kaizen)

Happens when above cycle is institutionalized

BPR Info. Engineering TQM :

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Inter-connected, inter-related, overlaps one another

QUALITY MEASUREMENT IN MANUFACTURING

What is Quality?

Quality is the performance of the product as per the commitment

made by the producer to the consumer .The performance of the

product relates to ultimate functions and services which the

final product must give to the consumer . A product is a quality

product only when it satisfies the various criteria for its

functioning. In addition to physical criteria, there is also a

service and time dimension to quality. The same quality of

physical should be available over a reasonable length of time.

Thus, time is also an important aspect of quality.

Quality is either a written or non written commitment to a known

or unknown consumer in the market. Since the market or the

market target itself, is decided by the company that is to whichtype of consumer to cater to quality is a strategic marketing

decision taken by the company at the outset .It can be said that

the quality of products to be decided is a corporate level

decision of a corporation. It is based on various marketing

considerations, production constraints, manpower or personnel

constraints, and equipment or technology constraints. The

decisions regarding quality are not really in the realm of one

functional manager as this involves overall strategic decisions

for the running of the business of a corporation

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Once such a strategic decision regarding quality is taken, it is

the job of all functional managers, including the production and

operations manager, to see that such strategic objectives and

goals are implemented.

In this, the purchasing department has as much contribution to

make to the quality as the production department that produces

the goods, and the warehousing department that stores the

goods, and the transport department that ensures the proper

shipment of goods to the customer.

Consumers judge quality every time they make a purchase.

Quality does not necessarily mean the best that can possibly

produced because high cost would then make product

unsaleable. Organizations of all types and sizes have come to

realize that their main focus must be to satisfy their customers.

For this they have to implement certain quality measurement

techniques. The minimum standard demanded by consumers is

that the product should work - that it is fit for the purpose

intended.

A washing machine that does not operate, or a clothes line that

breaks will be of no value to consumers whatever the price,

Beyond this minimum quality level, consumers will expect more

if they pay a higher price. Quality can also be assessed in terms

of the original specifications for the product. When designing a

product or introducing a new service a firm will specify certain

quality standards, such as exact size, weight, performance

standards, reliability, customer service times and so on.

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Advantages:

Easier to create customer loyalty.

Saves on costs associated with customer complaints, for

example, compensation, replacing defective products and loss

of consumer goodwill

Longer life cycles

Less advertising necessary

Higher price- a price premium- could be charged for such goods

and services.

Techniques.

Effective quality control involves three stages.

1. Prevention: This is the most effective way of improving

quality. Quality should be designed into the product.

2. Inspection: Traditionally the most important stage, however, it

is very expensive. It can be reduced by zero defect

manufacturing.

3. Correction & Improvement: This involves not only correction

of the faulty product but also the correction of the process due

to which the product has rendered faulty.

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Cost of quality

Quality management is not only concerned with maintaining the

quality characteristics of a product but also with doing the same

at least cost. There are basically three categories of cost of

quality.

Cost of appraisal

These are cost of inspection, testing and such checking

operations are necessary to maintain the product quality. Thisincludes the cost of quality, and also the cost of monitoring and

control.

Costs of prevention

These are the costs to prevent the production of bad quality

output. These include the cost of activity such as quality

planning which tries to ensure that proper precautions have

been taken to avoid wrong sampling plans being made or bad

quality of raw materials entering into plant or improper methods

and processes being followed in the plant.

Costs of failure

In spite of prevention and appraisal, there will still be losses due

to rejects, reworks, spoilage, etc. to some extent. These, as well

as the costs of attending to customer complaints and providing

product service, are included under category of costs of failures.

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The costs of quality can be analyzed in two different ways:

1.

Category to category comparison:

Comparing the relative amounts spent on each of the above

mentioned cost categories, i.e. how much is spent on planning?

How much on appraisal? And, how much on failure?

2.

Time to time comparison: for instance ,

comparing one quarters operation with the previous quarters

operation

Quality as a corporate strategy

Quality is an important dimension of production and operations

management of an organization. In todays world, it is not

enough to produce goods or services in the right quantity and at

at the right time, but, it is also important to ensure that the

goods and services produced are of the right quality. The

consumer of the final product of a company needs a certain

quantity of products of a quality appropriate to his needs.

Without quality, the other dimensions of quantity and time have

little relevance.

Quality management ,which includes ensuring proper quality for

a companys output is important not only for its survival but also

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to expand its market or when it wants to enter into a new

product line and various other marketing ventures . If a

countrys products are to make an impact in the international

market, it is vital that the quality of its exports should be at par

with, if not better than, similar products for the other nations.

Quality management is thus an important long term decision

and a marketing strategy as well .for developing countries ,such

as India ,this aspect assumes greater importance since in the

international market they have to compete with products of

advanced countries with established brands and brand loyalties.

To make a dent on such a market, it might sometimes be

necessary for our products to be one step better than the

already established products of other advanced countries.

Looking at it from another angle, it is necessary that we try to

improve the quality of our products and services for even

domestic consumption, so that Indian consumers get better

service in terms of improved products. This is the social aspect

of quality.

The advantages of producing good quality products and

services are -:

Easier to create customer loyalty.

Saves on the costs associated with customer complaints.

For e.g:- compensation, replacing defective products and loss of

consumer goodwill.

Longer life cycles.

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Less advertising may be necessary as the brand will establish a

quality image through the performance of the products.

A higher price- a price premium could be charged for such

quality goods and services.

Quality can therefore be profitable.

Modern approaches to achieving quality

Total quality management (TQM)

This is not a technique; it is a philosophy of quality being

everyones responsibility. The aim is to make all workers at all

levels accept that the quality of the work they perform is

important. In addition, they should be empowered with the

responsibility of checking this quality level before passing their

work on to the next production stage. This approach fits in well

with the Herzberg principles of job enrichment.

TQM should almost eliminate the need for a separate quality

control department with inspectors divorced from the

production line itself.

TQM uses the concept of the internal customer. The internal

customer is the next department in the production process. If

the work from the previous processes below standard, then it

will be rejected - just as a customer would reject it. Each

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department is therefore aiming to satisfy the next department

(the internal customer) by passing on the best quality products.

Every department is obliged to meet the standards expected by

its customer(s). These departmental relationships are

sometimes known as quality chains. All businesses can

therefore be described as a series of supplier and customer

relationships. TQM aims to cut the costs of faulty or defective

products by encouraging all staff to get it right first time. This

is in contrast to traditional inspected quality methods that

considered quality control as being a cost centre of the

business. Under TQM, if quality is improved and guaranteed

then reject costs should fall and the demand for the products

rises over time. However, TQM will only work effectively if

everyone in the firm is committed to the idea. It cannot just be

introduced into one section of a business of defective products

coming from other sections will not be reduced. The philosophy

requires a commitment from senior management to allow the

workforce authority and empowerment, as TQM will not operate

well in a rigid and authoritarian structure.

Benchmarking

The full title for benchmarking is best practice benchmarking. It

involves management identifying the best firms in the industry

and then comparing the performance standards - including

quality - of these businesses with those of their own business.

This comparison will identify areas of the business that need to

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improve to meet the standards of quality and productivity of the

best firms.

Stages in the benchmarking process:

1. Identify the aspects of the business to be benchmarked. This

could be decided by interviewing customers and finding out

what they consider to be most important. For example, research

may reveal that the most important factors are reliability of the

product, speed of delivery and after sales service. These are the

areas that the firm would first benchmark

2 Measure performances in these areas, for example reliability

records, delivery records and the number of customer

complaints

3 Identify the firms in the industry that are considered to be the

best. This process might be assessed by management

consultants or by benchmarking schemes operated by

government or industry organizations

4 Use comparative data from the best firms to establish the main

weaknesses in the business. These data might be obtained from

firms by mutual agreement, from published accounts, specialist

industry publications and contact with customers/ suppliers.

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5. Set standards for improvement. These might be the standards

set by the best firms or they could be set even higher to create a

competitive advantage.

6. Change process to achieve the standards. This may require

nothing more than a different way of performing one task, but

more substantial change may be necessary.

7. Re-measurement. The change to the process need to be

checked to see if the new, higher standards are being reached.

Inspection For Quality - Pros & Cons

Quality inspection is very important, even though it is very

expensive.

Qualified engineers have to be used to inspect the quality of the

product.

Such checks can also result in damaging the product. For

example, dropping computers to see if they still work!

Weaknesses of Inspecting for quality

1. It is looking for problems and therefore is negative in its

culture. It can cause resentment amongst workers as the

inspector believes that he has been successful when he finds

faults. In addition, the workers are likely to look upon inspectors

as management employees who are there just to check on

output and to find problems with the work. Workers may

consider it satisfying to get a faulty product passed by this team

of inspectors. This may create a high level of mistrust which is

unhealthy for the organization

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2. The job of inspection can be tedious, so inspectors become

demotivated and may not carry out the tasks given to them

effectively

3. If checking only takes place at specific points in the

production process then faulty products may pass through

several production stages before being picked up. This could

lead to a lot of time being wasted finding the sources of the fault

between quality check points.

4. The main drawback is that it takes away from the workers the

responsibility for quality. As the inspectors have full authority

for checking products, the workers will not see quality as their

responsibility and will not feel that it is part of their task to

ensure that it is maintained.

Quality Assurance

Quality Control is about checking to ensure that the products

and services come up to an agreed standard.

Quality assurance is setting and agreeing those standards

throughout the organization and making sure that they are

compiled with so that customers satisfaction is achieved.

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All the areas of the firm have to be taken into consideration,

such as

Product Design:

Will the product meet the needs of the customer?

Quality of Inputs:

Quality must not be let down by bought in components.

Production Quality:

This can be assured by TQM i.e. Total Quality Management.

Delivery Systems:

Customers need goods and services delivered at times

convenient to them

Customer Service including after sales service

Continued customer satisfaction will depend on the quality of

contact with customers with purchase.

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WORK STUDY & METHOD STUDYWork study is a technique used in systematic examination of humanwork in all its context leading to investigation of all the factors which affectthe efficiency / effectiveness, in order to effect improvement.

Method Study is defined as systematic recording and criticalexamination of existing and proposed ways of doing work, as a means ofdeveloping easier and more effective methods at reduced costs. (Soundsfamiliar?)Everyone needs to improve his / her SOL (standard of living) i.e. if quality,quantity and distribution of G/S (goods and services) produced in a societyis continuously increased.There are two ways of increasing the amount of G/S produced. One is toincrease employment, and the other to increase productivity. (Which onewill you prefer?) Both!Higher productivity helps in raising General SOL due:

larger supplies of consumer / capital goods at lower costs / higher REALearnings (i.e. inflationary impact discounted), improvements in workingand living conditions, including shorter hours of work, and generalstrengthening of economic foundations.WS generally deals with improvement in working conditions: (to improveproductivity - of course) - certainly a cost is involved, but it will be worth it,if it is compensated by more than adequate OUTPUT (making RoI feasible) -so it has to have a measurement against convenience and inconvenience)For example,Housekeeping / Good design and layout of plant and office / decentfacilities (basically to reduce the effort and fatigue of workers and providebetter working conditions)

Adequate space (not crowded)Comfortable seating / standing arrangements / good ambience, congenialatmosphere / good lightingQuicker reach to accessories / tools, free movement, spacing of workhours (breaks in between) - reducing monotony of repeated workRecreational facilities (of course after office hours), utilities (lunch room /tea / snakes

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Both W/M Study is involved in increasing the amount of G/S produced byincreasing productivity.

Thus an increasing in productivity could be due to higher output using the

same amount of input, OR EVEN LESSER INPUT than previously used.So, an increase in production does not necessarily increase in productivity.

MS / WS objectives:

improve process - procedures, improve factory, shop and work place

layout along with design of plant and equipment

Economic human effort by reducing unnecessary movement and

fatigue - general improvement

Overall improvement in Environment.

Sequence of Method Study

MS being a systematic and logical investigation has certain definedsequence:

SELECT / RECORD / EXAMINE / DEVELOP / DEFINE / INSTALL /

MAINTAIN

(some explanation for each given below --)

1. Select:

o The work to be studied it has 3 considerations:

o Economic / Technical / Human

Economic

Problems like bottlenecks in production, bulk

material movement, repetitive type of work

Technical

Do you have adequate technical knowledge first,

to carry out the study. The study should also betechnically and economically feasible.

Human:

Human reactions are most difficult to foretell. So

early MS should be on topics which bringconfidence and gain cooperation for subsequentstudies.

Are we doing something which provokes negative

reaction - especially you tell someone that "Whathe has been doing so far needs to be changed".

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2. Record:

o Success of MS depends on carefully and accurately recorded

facts of an existing process. Don't omit even minor details.o May be here instead of cumbersome recording by writing

sequence, one can use Symbols and Charts. Process Chart /Symbols classify all activities taking place in any industry.Given below are symbols to depict each activity.

o Operation

Indicates the main steps in process, method orprocedure. It takes the material, component or service astep further towards completion.

o Inspection

Indicates an examination for quality and check forquantity.

Can be eliminated, if systems and operations are

established quality-proof. Saves inspection costs.

o Transport

Indicates the movement of workers, materialsequipment from one place to another place.()normallyconsidered a Non-Value adding activity, unlessotherwise proved, it is essential.

o Delay

Indicates a break in the sequence of performance of aprocess. Delay means WAITING -- while you wait

(Inventory or any asset including human asset) incurscosts, and to that extent meeting Customer ResponseTime is less possible.

o Stores

Indicates a controlled storage area in which material isreceived into ir issued from a particular location underrequisition (you have been told enough about all typesof requisitions - Indents for procurement -- Requisitionsfor sampling, requisitions for issue for production -- Allrequisitions should have adequate approval andauthority as stipulated in Company Manuals /

Procedures). Store indicates a combined activity ofoperation and inspection.

3.Critical Examination

o Subject each activity to a systematic and progressive series of

questions.o Those in which something is actually happening to the work

piece or those in which material is either in storage orsuffering a delay.

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o Those in which something is actually happening could be

Make Ready Activity (which involves preparing the material orwork piece for further processing - Transportation orInspection Symbols.)

o Do Activity (essentially an operation taking a work piece for

completion -- e.g. conversion, change in shape, chemicalcomposition or physical properties), and

o Put Away Activity ( moving the workplace away from a

machine to another workplace - represented by Transportationand Inspection symbols).

o OBVIOUSLY, one should increase Do activities, and reduce Put

away and Make Ready activity. Because, only do activities areproductive.

o For Critical Examination, take the help of 5 W and 1 H ( I must

have bored you all enough on this).o Use these friends to find answers for

Purpose (What is done etc), Place,(Where),

Sequence, (When and Why)

Person, (Who& Why)

Means (How)

Why ( basic questioning, Ask Why 5 times.

Some primary & some secondary questions.

4. Develop

o Asking the Right question you can find half the answer.

o Ask the secondary questions like after What?

o Why -- correct answers to the last question is the basicprerequisite for development. e.g. Purpose:

o What is done (Primary),

o Why is it done,

o what else should or might be done,

o PLACE:: where is it done, why is it done here, were also might

it be done> where should it be done, etc.)

5. Define

o Written Standard Practice (Standard Operating Procedures)

in simple terms and definition is the next step.o A WSP , or SOP contains details of tools and equipments,

general operating conditions, method description and adiagram of workplace layout, or

o Merely Sequence (Steps) of activities in a procedural form.

6. Install

o The improved new method by gaining acceptance of all

concerned, approval for change. Gain acceptance of changeby involved workers and their representatives, maintain close

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contact with the progress of job until targeted performance isobtained. And lastly,

7. Maintain

o The new process, and do not allow it to slip back into old

methods or introduce external elements.

o Movements of elements layout and tools required must beclearly specified beyond risk of misinterpretation.

o (Specifying Requirements into the new method -- and its

importance)o The work study department must act as an external control for

attaining the improved method although it is a primaryresponsibility of the connected Department to do so.

Finally,

Could this new method be applicable to some other operations? So let

others know about it, and if they can find a way to use this new method intheir own respective work areas or workplace, do so.THIS IS FOLLOWED BY WORK MEASUREMENT to compare the efficiency of alternative methods. (AGAIN, Cost, Delivery,Quality & Service, of course TIME COMPRESSION).Bring here metrics of SC.Or, see the other PPP

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JA 4-2-06 - Stores

Quality Circles X Functional Pilot Projects

QCComposition: - Voluntary Group 3-4 idealProblem Solving Group Group selects a problem and analyse

Group usually from within one Section / DepartmentSuccessful if well planned and supported by Management andcorresponding training where necessary can be provided. (especiallyin TQM techniques/tools)

(IIMM can organize one for Stores as required.)

Benefits : Process refined, measurable savings, improvement in theattitudes and behavior of members.Improves members personal capabilities, enhances his skills, betterrelationship and interaction with others.Even shy persons becomes outgoing

Member becomes aware of supervisors problems, burdens anddemands. Negative attitudes disappear.Increases mutual respect of Managers & workmenReduces conflicts stemming from work environment. Removesfrustrations.Involvement in the process encourages innovative approach.Better appreciation of Total Quality concepts, with focus on ultimatecustomer.Normally, there are no rewards for this voluntary group. But ifassociated with specific Co. announced Cost ImprovementPrograms measurable improvements and a % of potential savingsIdentified and implement able can be considered.Over a period of time, when fatigued different X functional projectscan be identified and assigned to selected group.-

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contd page 2

Page 2

X Functional Pilot Projects

Team How many ? depends on problem analyzed but not morethan 5 or 6

Focus : Issues relatively important, and relevant to eitherInternal/External Customers process relatedMembership: Take employees who are influencers among peergroup as ambassadors for total quality.Voluntary requests are okay, with obvious advantages, but essentialand practical if right people rather than wrong people, no matter howenthusiastic.Resources: Admin. And other necessary resources shd be madeavailable to complete the task. Time, experimental resources, trialcosts. Etc.Guidance : Mentoring from Sr. manager, to break any logjams,provide political air cover, ensure access to senior people.Freedom: freedom/ licence to experiment should be provided,challenge the sacred cow as it were; otherwise it may end infrustration.Task: Realism vs challenge task shd be realistic- e.g. even if onethat had been attacked for several years w/o success, vs. somechallenge thrown, and some degree of difficulty. Task too easywithout motivation of learning and solving shd be avoided. Should be

able to complete the task say within 6 months, and project timeshould not be too lengthy.Significant payoff: Result should be significant otherwise challengewill be lacking.Celebrate real success only. A token appreciation.

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Make sure the learnings is shared with others , and process arerevised, and new standards put in place. Sharing helps other groups,functional to sort their problems in a similar manner.

Contd.

Page 3 QC

Feedback : Pilot team to keep management abreast of status andmanagement in turn where they stand, provide guidance and help what the leaders think about their work, keep motivating. Leadersshould be visible to the team, capturing commitment, encouragingthem.

Root Cause Analysis : Members should be encouraged to go to theroot cause of the problem, keep asking Why, Why, Why several timesSolutions to be propagandized so that similar problems could use themethods used. New process to be standardized for consistency,until further improvement (continuous improvement) is popularized.

Membership: 3-4 if within a functional area. If involves crossfunctional group, max. 6, one or two from each function with max. 2from the problem related function.

Rewards: Can be offered, if associated with company announcedCost Improvement or Suggestion Scheme programs.

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