Total Quality Management 2015-16(ODD) Sem 7/GE2022... · Total Quality Management 2015-16(ODD) By...
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GE2022 VII/IV TOTAL QUALITY MANAGEMENT
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A Course Material on
Total Quality Management
2015-16(ODD)
By
Mrs. M.Latha
Assistant Professor
DEPARTMENT OF ELECTRICAL AND ELECTRONICS ENGINEERING
SASURIE COLLEGE OF ENGINEERING
VIJAYAMANGALAM – 638 056
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QUALITY CERTIFICATE
This is to certify that the e-course material
Subject Code : GE-2022
Subject : TOTAL QUALITY MANAGEMENT Class : IV Year EEE
Being prepared by me and it meets the knowledge requirement of the university curriculum.
Signature of the Author Name: Mrs.M.Latha
Designation:
This is to certify that the course material being prepared by Mrs.M.Latha is of adequate quality.
She has referred more than five books among them minimum one is from aboard author.
Signature of HD
Name: Mr.S.Sriram
SEAL
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GE2022 TOTAL QUALITY MANAGEMENT
UNIT I INTRODUCTION
Introduction - Need for quality - Evolution of quality - Definition of quality - Dimensions of manufacturing and service quality - Basic concepts of TQM - Definition of TQM – TQM Framework -Contributions of Deming, Juran and Crosby – Barriers to TQM. UNIT II TQM PRINCIPLES
Leadership – Strategic quality planning, Quality statements - Customer focus – Customer orientation, Customer satisfaction, Customer complaints, Customer retention - Employee involvement – Motivation, Empowerment, Team and Teamwork, Recognition and Reward, Performance appraisal - Continuous process improvement – PDSA cycle, 5s, Kaizen - Supplierpartnership – Partnering, Supplier selection, Supplier Rating. UNIT III TQM TOOLS & TECHNIQUES I
The seven traditional tools of quality – New management tools – Six-sigma: Concepts, methodology,
applications to manufacturing, service sector including IT – Bench marking – Reason to bench mark,
Bench marking process – FMEA – Stages, Types.
UNIT IV TQM TOOLS & TECHNIQUES II
Quality circles – Quality Function Deployment (QFD) – Taguchi quality loss function – TPM –
Concepts, improvement needs – Cost of Quality – Performance measures.
UNIT V QUALITY SYSTEMS
Need for ISO 9000- ISO 9000-2000 Quality System – Elements, Documentation, Quality auditing-QS
9000 – ISO 14000 – Concepts, Requirements and Benefits – Case studies of TQM implementation in
manufacturing and service sectors including IT.
TOTAL : 45 PERIODS
TEXT BOOK
1. Dale H.Besterfiled, et at., “Total Quality Management”, Pearson Education Asia, Third Edition, Indian Reprint (2006). REFERENCES 1. James R. Evans and William M. Lindsay, “The Management and Control of Quality”, (6th Edition),South-Western (Thomson Learning), 2005. 2. Oakland, J.S. “TQM – Text with Cases”, Butterworth – Heinemann Ltd., Oxford, Third Edition (2003). 3. Suganthi,L and Anand Samuel, “Total Quality Management”, Prentice Hall (India) Pvt. Ltd. (2006)
4. Janakiraman,B and Gopal, R.K, “Total Quality Management – Text and Cases”, Prentic(India) Pvt. Ltd. (2006)
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S.No. CONTENT P.NO
UNIT-I INTRODUCTION
1 Introduction 4
2 Need for quality 4
3 Evolution of quality 7
4 Definition of quality 7
5 Dimensions of manufacturing and service quality 7
6 Basic concepts of TQM 8
7 Definition of TQM 10
8 TQM Framework 11
9 Contributions of Deming 11
10 Barriers to TQM 14
11 Juran and Crosby contributions to TQM 16
UNIT II TQM PRINCIPLES
12 Leadership 17
13 Strategic quality planning
20
14 Quality statements
19
15 Customer focus – Customer orientation, 22
16 Customer satisfaction, Customer complaints,
23
17 Customer retention - 23
18 Employee involvement
28
19 Motivation
28
20 Empowerment 31
21 Team and Teamwork 32
22 Performance appraisal 34
23 Continuous process improvement
36
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24 PDSA cycle, 5s, Kaizen
38
25 Supplier partnership,Partnering
42
26 Supplier selection, Supplier Rating
44
27 Recognition and Reward 46
UNIT-III TQM TOOLS AND TECHNIQUES I
28 The seven traditional tools of quality 47
29 New management tools 60
30 Six-sigma: Concepts 60
31 methodology 61
32 Applications to manufacturing
63
33 Applications to service sector including IT 64
34 Bench marking 65
35 Reason to bench mark 66
36 Bench marking process 70
37 FMEA – Stages 74
38 FMEA – Types 75
UNIT-IV TQM TOOLS AND TECHNIQUES II
39 Quality circles 78
40 Quality Function Deployment (QFD) 78
41 Taguchi quality loss function 86
42 TPM –Concepts
90
43 TPM –Development
91
44 improvement needs
92
45 Cost of Quality
92
46 Performance measures
95
UNIT-V QUALITY SYSTEMS
47 Need for ISO 9000 95
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48 ISO 9000-2000 Quality System 95
49 Elements, Documentation 97
50 Quality auditing-QS 9000,ISO 14000 99
51 Concepts, Requirements and Benefits 101
52 Concepts, Requirements and Benefits 102
Glossary 105
Review Questions 107
UNIT – I INTRODUCTION
TOTAL = Made up of the whole
QUALITY = Degree of excellence a product or service provides
MANAGEMENT = Act, art or science /manner of handling, controlling,
directing etc
Meaning
TQM is a structured system for satisfying internal and external customers and
suppliers by integrating the business environment, continuous improvement and
breakthrough with development, improvement and maintenance cycles while
changing organizational culture.
What Is Quality
Quality basically defines what is required, and how it can be
achieved. It also implies complying with the necessities, and suitability of being used. The
realm of quality has been changing rapidly from just manufacture, to numerous other
disciplines like finance, information technology, and human resources. The benefits of
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implementing a quality management system are numerous, including creation of quality
products, and quality systems. Quality management system software is extremely useful for
implementing a quality management system, and excellent quality control, resulting into total
quality management. Software testing procedures are used extensively, to ensure that only the
quality products are produced, while those not meeting the quality standards are rejected.
What Is A Quality Management System
A quality management system can be defined as the implementation of dedicated activities in
a project to obtain continuous improvement, and enhance the organization efficiency. The
foremost effort of this system is to correctly and precisely define the procedure that will
cause creation of quality products and quality services. The aim is to prevent the errors while
within the project, and not after a product has been delivered to the user. There are many
benefits to a quality management system, due to which the organizations are devoting more
efforts to improve quality management.
Benefits of Quality Management Systems
The trend of implementing a quality management procedure is gaining popularity in all
organizations, since there are tremendous benefits in using a quality management system.
Some of the benefits are explained below:
Achievement Of Project Scope
This system facilitates a business, to attain the objectives that have been defined in the
organization strategy. It ensures the achievement of stability and reliability regarding the
techniques, equipment, and resources being used in a project. All project activities are
integrated and aligned towards the achievement of quality products. These efforts commence
by identifying the customer needs and expectations, and culminate in their contentment.
Customer Satisfaction
A fully recognized and implemented quality management system, will ensure that the
customer is satisfied by meeting their requirements, and will thus enhance the confidence of
the customer. Attaining customer satisfaction is a great achievement for the organization, that
will assist in capturing the market, or increase the market share.
Consistent Products
Implementing a quality management system can assist to attain more consistency in the
project activities, and enhance the effectiveness by improvement in the resources and time
usage.
Implementation Of Best Practices & Process Improvement
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The discipline of quality includes the efforts directed towards the improvement of processes,
being used to maintain consistency, reduce expenditures, and ensure production within the
schedule baseline. The systems, products, and processes are continually improved by the
implementation of best practices, like modern manufacture techniques, use of primavera
project management software including Primavera P6, and the use of proper quality control
techniques.
Increase In Production
Improved production is achieved due to proper evaluation techniques being applied, and
better training of the employees. A strict process control is directed towards performance
consistency, and less scrap. Supervisors experience less late night problematic phone calls,
since the employees are trained on troubleshooting.
Less Rework
Quality is measured continuously due to the appropriate procedures that ensure immediate
corrective actions on occurrence of defects. Since efforts are directed towards quality
products, rework due to warranty claims is minimized. This reduction increases customer
confidence, and increase in business.
Increased Financial Performance
Investment in quality management systems are rewarded by improved financial performance.
UCLA conducted a research on the companies being traded on the New York Stock
Exchange, and observed that the financial performance of the companies that obtained ISO
9000 Quality Standard certification was improved significantly, compared to the other
companies.
Increase In Market Share
Other quality management system benefits include proper management of project risks and
costs, and identification of development prospects. This results in an increase in market share
and reputation, and capability to react to industry opportunities.
Improvement In Internal Communications
The quality management system emphasizes the issues related to operations management.
This encourages frequent interaction between project departments or groups, and promotes
harmony. All these factors contribute to improved quality, and customer satisfaction.
Implementation Of Quality Management System
An efficient quality management system should initially accurately determine the
expectations and needs of the customers, and subsequently transform this into quality
products. For the successful implementation of a TQM system, it is essential that the
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executive management should provide full support and leadership, provision of a suitable
quality policy, and establishment of measurable goals. The project management team should
be involved in the quality system, and suitable training be arranged to enhance the skills. A
useful system should be a tactical tool that is intended to facilitate the achievement of project
goals. Evaluation of the usefulness, efficiency, and ability of a quality management system is
crucial. Review and examination should be performed regularly to audit the quality
requirements, achievement of the project objectives, and ensuring customer satisfaction. This
review will ensure that the quality management system benefits are being fully obtained, and
amendments in the system are implemented wherever necessary.
Evolution of Quality Control
DEFINING QUALITY:
Quality can be quantified as follows
Q = P / E
where,
Q = Quality
P = Performance
E = Expectation
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THE DIMENSION OF QUALITY
Dimension Meaning and Example
Performance Primary product characteristics
such as the brightness of the picture
Features Secondary characteristics, added
features, such as camera cell phone
Conformance Meeting specifications or industry
Standards, workmanship
Reliability Consistency of performance over
time, average time for the unit to fail
Durability Useful life, includes repair
Service Resolution of problems and
complaints, ease of repair
Response Human - to – Human interface,
such as the courtesy of the dealer.
Aesthetics Sensory characteristics, such as
Exterior finish
Reputation Past performance and other intangibles, such as being ranked first
IMPORTANT POINTS TO BE NOTED WHILE QUALITY PLANNING :
1. Business, having larger market share and better quality, earn returns much higher
than their competitors.
2. Quality and Market share each has a strong separate relationship to profitably.
3. Planning for product quality must be based on meeting customer needs, not just meeting
product specifications.
4. For same products. We need to plan for perfection. For other products, we need to plan
for value.
BASIC CONCEPT OF TQM
1. A committed and involved management to provide ling term, top to
bottom organizational support.
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It is useless to embark on a quality journey without the top management‘s
commitment to quality. Top management must participate in the quality
programme. They must also participate on quality improvement teams and also
act as coaches to other teams
2. An un – wavering focus on the customer both internally and externally.
The employees of the organization in the first place. Mangers must listen to the
suggestions and recommendations made by the employees to improve quality.
This aspect of listening to the voice of customers leads to the emphasis of design
quality and defect the prevention.
3. Effective involvement and utilization of entire workforce.
TQM is everyone‘s responsibility in an organization. All workers in and organization
must be oriented towards TQM and all personnel must be trained in TQM,
statistical process control and other appropriate quality improvement skills.
4. Continuous improvement of the business and production process.
Continuous improvement refers to constant refinement and improvement of
products, services and organizational systems to yield improved value to
consumers.
Areas such as on-time delivery, scrap reduction, supplier management, customer
satisfaction, etc. are good quality projects to begin continuous improvement.
5. Treating suppliers as partner
The traditional relationship between the buyer and the supplier has been
adversarial in nature. Each tried to extract the maximum out of each other. There
was lack of trust on each other.
To ensure good relationship with suppliers, frequent change of suppliers should be
avoided and suppliers should be few in number so that true partnering can occur.
6. Establishing performance measures for the process.
Performance measure is an integral part of the quality process. If an organization
cannot measure its progress, it is useless for it to go on a quality journey.
Performance measures such as percentage of non conformance, absenteeism,
customer satisfaction, etc., should be determined for each functional area.
Definition for TQM
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Total Quality Management (TQM) is a comprehensive and structured approach to organizational
management that seeks to improve the quality of products and services through ongoing refinements
in response to continuous feedback.
HISTORICAL REVIEW
The concept of specification of labour was introduced during the industrial
revolution
As a result a worker no longer made the entire product, only a portion. This
change brought about a decline in workmanship
Because productivity increased there was a decrease in cost, which result in
lower customer expectations
As products become more complicated and jobs more specialized, it became
necessary to inspect product after manufacturing
In 1942 W.A. Shewhart of Bell Telephone Laboratories developed a statistical
chart for the control of product variables. This is beginning of SQC
In some decade H.F. Dodge and H.G. Romig both of Bell telephone
laboratories developed the area of acceptance sampling as a substitute for
100% inspection. It is recognized by 1942
In 1946 the American society for Quality Control was formed. Now it is
American Society for Quality
In 1950 W. Edwards Deming who learned SQC from shewhart, gave a series
of lectures on statistical methods to Japanese Engineers
Un 1954 Joseph M. Juran made his first trip to Japan and further he
emphasized management‘s responsibility to achieve quality
By this concept the Japanese set the quality standard for the rest of the world
In 1960 the first quality circles were formed for quality improvement by Japanese
workers
By 19770‘s and 80‘s U.S. managers were making frequent trips to Japan to
learn about the Japanese miracle
In 1980‘s the automotive industry began to emphasizes statistical process
control (SQC)
Emphasis on quality continued in the auto industry in the year 1990‘s.
when the Saturn automobile ranked first in customer satisfaction in 1996
ISO 9000 became the world wide model for quality system
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TQM FRAMEWORK
PRINCIPLES OF TQM
1. Customer focus
2. Leadership
3. Involvement of people
4. Continuous improvement/ long-term
5. Systematic improvement/ approach
6. Problem prevention
7. Quality as everyone‘s job
8. Mutually beneficial
.
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THE DEMING PHILOSOPHY
In 1950 he taught SPC concepts and the importance of quality to the leading CEO‘s
of Japanese industry. He developed the following fourteen points as a theory for
management for improvement of quality productivity and competitive position.
1.Create and publish the aims and purposes of the organization
Organization must develop a long term view at least 10 yrs
Plan to stay in business by setting long range goals
Resources must be allocated for research, training and continuing education to
achieve the goals
Innovation in promoted to ensure that the product or services does not become
absolute
Organizational philosophy is developed to send the message that everyone is part
of the organization
2.Learn the new philosophy
Organization must seek never-ending improvement and refuse to accept non-
conformance.
Customer satisfaction is the number one priority
The organization must concentrate on defect prevention rather that defect
detection.
Everyone should involved in the quality journey and change his or her attitude
about quality
Supplier must help to improve quality
Share the information relative to customer expectations
3.Understand the purpose of inspection
Mass inspection is costly and un reliable it is replace by statistical techniques
It is required for self and supplier
Mass inspection is managing for failure and defect prevention is managing for
success.
4.Stop awarding business based on price alone
Awarding business based on the low bid, because price has no meaning without
quality
To examine how customer expectations are affected and provide feedback to the
supplier regarding the quality
5.Improve constantly and forever the system
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Management must have take more responsibility for problems by actively finding
and correcting problemsSo that quality and productivity are continually and
permanently improved and costs are reduced.
The focus is preventing problems before they happen.
Responsibility is assigned to teams to remove the causes of problems and
continually improve the process.
6.Institute training
Employee must be oriented Management must allocate resources to train employee
to perform their jobs Everyone should be trained in statistical methods and monitor
the need for further training.
7.Teach and institute leadership
Improving supervision is management‘s responsibility Training in statistical
methods Supervisors not focusing on negative fault findings,
He create positive supportive Communication must be clear from the top
management to supervisor and to operators
8.Drive out fear, create trust and create a climate for innovation.
By providing workers with adequate training, good supervision and proper tools to
do the job as well as removing physical dangerous.
When people are treated with dignity fear can be eliminated and people will work
for the general good of the organization.
This climate will provide ideas for innovations and improvement.
9.Optimize the efforts of teams, groups, and staff areas.
Barriers internally like levels of management among department within department
etc. Barriers externally like with customers and suppliers The barriers exist
because of poor communication, ignorance of the organization mission, completion,
fear and personal grudges. To overcome these attitudes need to be changed
communication channel opened, project teams organized, training for teamwork.
10.Eliminate exhortations for the work force
Exhortations that ask for increased productivity without providing specific
improvements methods They do not produce a better product or service, because
the workers limited by the system Improvements in the process cannot be made
unless the tools and methods are available.
11.a) Eliminate numerical quotas for the work force
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Instead of quotas, management must learn and institute methods for
improvements. Quotas and work standards focus on quality rather that quality.
Quotas should be replaced with statistical method of process control.
b.) Eliminate management by objectives
Management must learn the capabilities of the processes and how to improve them
Management by numerical is an attempt to manage without knowledge of what to
do
12. Remove barriers that rob people of pride of workmanship
Loss of pride in workmanship exists throughout organization because
Workers do not know how to relate the organization mission
They are being blamed for system problems
Poor designs lead to the production of ―Junk‖
In adequate training is provided
In adequate or in-efficient equipment is provided for
Performing the required work.
13. Encourage Education and self-improvement for everyone
What an organization need is people who are improving with education
A long term commitment to continuously train and educate people must be made
by management
Everyone should be retained as the organization requirements change to meet the
changing environment
14. Take action to accomplish the transformation
Management has to accept the primary responsibility for the never ending
improvement of the process.
Management must be committed, involved and accessible if the organization is to
succeed in implementing the new philosophy.
BARRIERS / OBSTACLES IN IMPLEMENTATION OF TQM
Lack of management commitment
The management commitment should be clearly communicated both verbally and
in action to the organization.
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If the workers feel that the management is doing only the talking about no action is
initiated on TQM then they too will lack necessary commitment and motivation to
implement TQM principles.
Inability to change organizational culture
The past culture should be unlearned and the new culture should be learnt. This
gives rise to enormous resistance to change from the employees.
It is very difficult for an organization to make a culture change.
Improper planning
When planning for TQM all the constitutes should be involved in the development
of the implementation plan and any modification that occur as the plan evolves.
Rapid planning will ensure that the TQM fails.
Planning should be done on the customer front, employee‘s front and the supplier
front.
Lack of continuous training and education
Training and education is an ongoing process for everyone in the organization. The
training needs of the employees must be determined and a plan should be
developed to satisfy those needs.
Training and education are most effective when senior management conducts the
training programme based on the principles of TQM
Incompatible organizational structures and isolated individuals and
department
Lack of co ordination and difference of opinion among departments and individuals
in an organization will create implementation problems.
The use of multifunctional teams can help to break this barrier.
Restructuring of the organization may be needed to make the organization more
responsive to the needs of the customers.
Ineffective measurement techniques and lack of access to data and results
In order to improve the process, one has to measure the present position.
Mechanisms to measure the present position should be available in the
organization.
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Once the measurement is done the data should be made available to the necessary
mangers to make decisions.
Any clogging of data to the managers will become a barrier to TQM implementation.
Playing inadequate attention to internal and external customers
Organizations have to understand the changing needs and expectations of the
customers both internal and external.
Effective feedback mechanisms that provide data for decision making are necessary
for this understanding.
One way to overcome this is to give the right people in the organization, a direct
access to the customers.
Inadequate use of empowerment and teamwork
Individuals should be empowered to make decisions and take responsibility to
make decisions that affect the efficiency of the process of production.
Teams should be formed and need to have proper training. The team‘s
recommendations should be adopted whenever possible.
CONTRIBUTIONS OF JURAN‟S :
1. Identify customers
2. Determine customer needs
3. Translate
4. Establishment units of measurement
5. Establish measurements
6. Develop product
7. Optimize product design
8. Develop process
9. Optimize process capability
10. Transfer
CONTRIBUTIONS OF CROSBY‟S :
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1. Management commitment
2. Quality improvement team
3. Quality measurement
4. Cost of quality evaluation
5. Quality awareness
6. Corrective action
7. Zero defect program
8. Supervisor training
9. Zero defects day
10. Goal setting
11. Error cause removal
12. Recognition
13. Quality councils
14. Do it over again
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UNIT II TQM PRINCIPLES
LEADERSHIP DEFINED
Leadership is interpersonal influence exercised in a situation and directed
through communication process, towards the attainment of a specialized goal or
goals. Thus leadership is a process of influencing the activities of an individual or a
group for goal achievement in a given situation.
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LEADERSHIP CONCEPT
Leadership requires in order to become successful as a leader , he needs an
intimate and insightful understanding of human nature – the basic needs, wants
and abilities people, a leader needs to know and understand the following;
1. People need both security and independence at the same time.
2. People are sensitive and do respond to external rewards or
punishments. They are also strongly self-motivated.
3. Peoples sometime value a kind word of praise more than any monetary
reward.
4. They trust their gut reaction more than statistical data.
5. A leader should simplify the task
ROLE OF SENIOR MANGEMENT
Senior management must practice the philosophy of Management By
Wandering Around (MBWA). They should get out of the office and visit
customers, departments, and plants within the organization and suppliers
Encourage subordinates to write only important messages that need to be
part of the permanent record.
Senior management role is no longer to make the final decision, but to make
sure the teams decision is aligned with the quality statement of the
organization
Problem solving and decision making to the lowest appropriate level by
delegating authority and responsibility.
Senior managers must stay informed on the topic of quality improvement by
reading books and articles attending seminars and talking to other TQM
leaders.
The needed resources must be provided to train employees in the TQM tools
and techniques, the technical requirements of the job and safety.
Must be visibly and actively engaged in the quality effort by serving on
teams, coaching teams and teaching seminars.
They should lead by demonstrating, communicating, and re-in forcing the
quality statements.
They should spend about one third of their time on quality
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Senior managers are listening to internal and external customers and
supplies through visits, focus groups and surveys.
To create awareness of the importance of TQM and provide TQM results in
an ongoing manner.
Senior managers should be able to drive fear out of the organization, break
down barriers, remove system roadblocks, anticipating and minimize
resistance to change and in general change the culture.
QUALITY CIRCLE
Meaning
Quality council is composed of the chief executive officer, the senior
managers of the functional areas, such as design, marketing, finance, production
and quality and a coordinator or consultant. Individual selected for the coordinated
position should be bright young person with execution potential.
Objectives of quality council:
To raise the quality consciousness in the organization through seminars,
study tours and using forms of promotion.
To ensure effective functioning of the organization on the quality statement
and plan.
To encourage basic and applied research and development in the field of
quality and dissemination of its results to the organization.
To raise the level of training of personnel engaged in quality activities
including the assessors and trainees.
To facilitate upgradation of testing and calibration facilities and laboratories
as well as to encourage the overall quality of the organization.
DUTIES OF QUALITY COUNCIL
Develop with input from all personnel; the core values Vision statement,
Mission statement, and Quality policy statement.
Develop the strategic long term with goals and the annual quality
improvement program with objectives
Determine and continually monitor the cost of poor quality.
Create the total education and training plan.
Determine the programme measures for the organization.
Continually determine those projects that improve the process.
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( internal and external customers)
Establish or revise the recognition and reward system to account for the new
way of doing business.
QUALITY STATEMENT
In addition to the core values and concepts, the quality statement includes the
Vision statement, Mission statement and Quality policy statement. Once developed
they are occasionally revised and updated. They are part of the strategic planning
process, which included goals and objectives.
VISION STATEMENT
The vision statement is a clear declaration of what an organization
aspires to be in the future (in long term). Its purpose is to provide a platform
for the managers for thinking strategically. A vision statement is usually an
ideal condition, that might never be reached but that will inspire the people
to achieve.
Example: “THE HAPPIEST PLACE ON EARTH” - Disney Theme park.
MISSION STATEMENT
The mission statement answers the following questions. Who we are, who
are the customers, what we do and how we do it. This statement is usually one
paragraph or less. It is easy to understand and describe the functions of the
organization. It provides a clear statement of purpose for employees, customers and
supplies.
EXAMPLE: BEN & JERRY‟S ICE CREAM – MISSION STATEMENT
PRODUCT MISSION: TO make, distribute and sell the finest quality
natural ice cream and related products in a wide variety of innovative
flavors made from Vermont dairy products.
QUALITY POLICY STATEMENT
QPS serve as a guide for everyone in the organization. This statement
clarifies the employees about how the products and services must be
provided to the customers. The CEO of the company writes quality policy
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statement after a careful study and analysis of the feedback from the
workforce. Finally the quality council must approve the statement.
EXAMPLE:
Meet the requirements of the customers (both internal and external)
Go ahead competition
Complete utilization of the entire workforce.
STRATEGIC PLANNING
Organizations are finding that strategic quality plans and business plans are
inseparable. The strategic planning is three to ten years and short term planning is
one year or less. It consists of goals and planning.
SEVEN STEPS TO STRATEGIC PLANNING.
1. Identification of customer needs.
2. Determination of customer positioning
3. Predict the future.
4. Gap analysis.
5. Closing the gap.
6. Aligning the plan to the mission and vision.
7. Implementation of the plan.
1. Identification of customer needs.
This steps provides a focus on customer satisfaction.
There needs and wants have to be identified and satisfied.
The profile of the customers are identified. Questions like who are our
customers? Will they change in future? What will they want in
future?.
2. Determination of customer positioning
The planners determine where the organization wants to be in
relation to the customers.
Expand the customer base products or services.
Products with poor quality performance should be removed or eliminated
and replaced by better ones.
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The organization needs to concentrate its efforts on areas of excellence
3. Predict the future
Predict the future conditions that will affect their product or service
Using effective tools for analyzing and predicting future
Some products or services have become absolute because it failed to
foresee the changing technologies.
The mangers in the organization anticipate a change in the first place, and
then they can make necessary arrangements by making investments on
resources and be prepared to take on the future.
The rate of change is continuously increasing.
4. Gap Analysis
The planners to identify the gaps between the current state and future state.
The present position of the organization in the market in relation to
competition, profits, customer satisfaction employee satisfaction, etc. to the
intended position.
If any there is gap identified future strategies must be formulated taking this
gap in to consideration.
5. Closing the Gap
After gap analysis plans must be formulated to reduce or close the
strategic gap.
To close the gap by establishing goals and responsibilities.
All stakeholders should be included in the development of the plan.
6. Alignment
It must be aligned with the mission, vision, and core values and concepts of
the organization.
7. Implementation
a. Resources must be allocated to collecting data, designing changes and
overcoming resistance to change.
b. To monitoring activities to ensure that progress is being made.
Monitoring by the steering committee and periodical assessments are required for
an effective and speedy implementation
CUSTOMER SATISFACTION
CUSTOMER SATISFACTION MODEL:
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CUSTOMER:
A customer can be defined as one who purchases a product or service.
There are two distinct type of customer.
Customer satisfaction is achieved when their expectations are matched by
what is offered to them by the organization. It is important for the organization to
listen to the voice of the customers to ensure that is marketing, production, R&D ,
distribution and service truly meet the expectations of the customers.
There are two distinct types of customers; they are external and internal
customers.
A)External Customers:
External customers can be defined as the one who purchases the product of
the organization for end usage or for reselling or to use the product in his
production process as raw material.
B) Internal customers:
Internal customers are the employees of the organization. As far as the top
management in concerned they have an obligation to keep internal customers
satisfied.
CUSTOMER PERCEPTION OF OUALITY:
An American society for quality (ASO) survey on end user perception of
important factors that influenced purchases showed the following ranking.
1. Performance
2. Features
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3. Service
4. Warranty
5. Price
6. Reputation
1. PERFORMANCE
Performance of the product is the ―fitness‖ the product or service by the
customer at the time of sale.
It indicates that the product can be used as such without any further
modification.
Availability, which is the probability that a product will operate when
needed.
Reliability is the consistent performance of the product every time is used
Maintainability which is the ease of keeping the product operational is also
important.
2. FEATURE
Features are the secondary characteristics or added facilities available with the
core product.
FOR EXAMPLE:
Primary function of an automobile is transportation where as stereo
system is a feature.
3. SERVICE:
Service is emerging as a method for organizations to give the customer
added value.
The product may work fine but if the service which is attached to the
product is not managed properly then it will lead to customer dissatisfaction.
FOR EXAMPLE:
Purchase of Air conditioner, the seller has to come to your home to install
and run the A/C machine. After that he must come and service the A/C with
regular internal and incase of any problem immediately come and repair the
problem.
4. WARRANTY:
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The warranty encourages customer to buy a product a service by reducing
the risk of the purchase division.
5. PRICE:
Customer is willing to pay a higher price to obtain value. he evaluating
product and services against those of its competitors who provides the greatest
value.
6. REPUTATION:
Find organizations by our overall experience with them.
Customer satisfaction is based on the entire experience with the organization
not just the product.
FEEDBACK:
Customer feedback must be continually solicited and monitored. Customer
continually changes. They change their minds, their expectations and their
supplies. Customer feedback is not a one-time effort it is a ongoing and active
probing of the customer‘s mind.
IT ENABLES THE ORGANIZATION:
Discover customer dissatisfaction.
Discover relative priorities of quality.
Compare performance with the competition.
Identify customer‘s needs.
Determine opportunities for improvement.
TOOLS USED:
1. COMMENT CARD –attach with warranty card.
Comment cards are simple cards usually in the form of prepaid postage card
which can be attached with the product manual or the warranty card. or just
included with the product the time of purchase.
2. Survey.
It is more effective and also popular tool for obtaining opinions and perceptions
about an organization and its products and services.
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Customers are asked to furnish the answers related to the quality of the product
and service.
3. Focus group.
The focus group is like an in depth interview, except that it involves a group rather
than an individual. It is a group interview that tries to stimulate people to talk
freely about the products.in a typical focus group, a few customers are invited to
attend a group discussion at a central interviewing location.
4. Toll-free telephone numbers.
Toll free phone numbers (1600 – inIndia, /800/888 in US) are an effective
technique for receiving customer feedback. Organizations can respond faster and
more cheaply to a complaint on receiving a complaint call.
5. Customer visits.
Company personnel visiting customers at their place will provide valuable
information and feedback on the product.
6. The Internet
Web home pages and e-mails have become very popular these days that they are
fast replacing the conventional methods of feedback mechanism.Customers also
find it very easy and cheaper to provide feedback to the supplier.
Using customer complaints:
Every single complaint should be accepted, analyzed and acted upon for
its represents.
Information on customer dissatisfaction is received into
the organization at the highest level, there by providing a fast response.
Complaints can be seen as opportunity to obtain information and
provide a positive service to the customers.
Activities of the customer complaints:
Investigate customer‘s experiences by actively soliciting feedback both
positive and negative and then acting it promptly.
Develop procedures for complaint resolution.
Analyze complaints but under stand that complaints do not always fit in to
neat categories.
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Survey response is received a senior manager should contact the customer
and strive to resolve them.
Establish customer satisfaction measures and constantly monitor them.
Provide a monthly complaint report to the quality council for their evaluation
and improvements.
SERVICE QUALITY
CUSTOMER SERVICE is the set of activities an organization used to win and retain
customer‘s satisfaction. It can be provided before during or after the sale of the
product or exits on it‘s own.
ELEMENTS OF CUSTOMER SERVICE:
ORGANIZATION:
Identify each market segment.
Write down the requirements.
Communicate the requirements.
CUSTOMER CARE:
Meet the customer expectations.
Get the customer point of view.
Deliver what is promised.
Make the customer feel valued.
Respond to all the complaints.
Over respond to the customer.
Provide a clean and comfortable customer reception area.
COMMUNICATION:
Optimize the trade-off between time and personal attention.
Minimize the number of contact points.
Provide pleasant knowledgeable and enthusiastic employees.
Write documents in customer friendly language.
FRONT-LINE PEOPLE:
Serve them as internal customer.
Hire people who like people.
Give them the authority to solve the problem.
Challenge them to develop better methods.
Be sure they are adequately trained.
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Recognize and award performance.
LEADERSHIP:
Lead by example.
Listen to the front-line people.
Strive for continuous process involvement.
CUSTOMER RETENTION
Wheather retail or industrial customer, are constantly watching out for better
cheaper products and when a competitor is able to offer the product better, that the
customers usually switch.
Any organization should develop a very personal relationship with individual
customers, so that they do not switch over to the competitors.
CUSTOMER RETENTION represents the activities the produce the necessary
customer satisfaction that creates customers loyalty, which actually improves the
bottom line.
EMPLOYEE INVOLVEMENT
TQM requires everybody‘s involvement in the process and everyone should
feel that the company belongs to them. Employee involvement results in improved
quality and productivity.
MOTIVATION:
MEANING/DEFINITION:
1. Motivation is a process that starts with a physiological or psychological
deficiency or need that activates behavior or a derive that is aimed at a goal
or an incentive.
2. Motivation is the result of processes internal and external to the individual
that arouse enthusiasm and persistence to pursue a certain course of actor.
THEORIES OF MOTIVATION:
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MASLOW THEORY
According to this theory every individual is depicted as a wanting organism
with a desire to rise from one level to another level in the society. Maslow suggests
five levels for every individual with differing needs at every level.
1. Basic or physiological needs
The first need of a person is physiological in nature. physiological
needs are the necessities for survival. Once this need is satisfied, they
no longer act as motivators for the employee. These factors when
available are taken for granted and employees look for the next level
as motivators.
2. Security or safety needs.
Employees now strive to achieve the next level which is safety needs.
These needs include safe place of work and job security, which are
very important for employees.
3. Social needs.
Since a man is social being, he has a need to belong and to be
accepted by the various groups. When social needs are dominant, a
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person will strive for meaningful relationship with others. He gets a
fear of being rejected.
Conversely when an individual has an opportunity to be a part of a
group by feeling important and needed will motivate that person.
4. Esteem needs.
Self esteem needs are concerned with self respect, recognition, self
worth and feeling of being unique.
5. Self-
actualization.
Individuals in an organization must be given the opportunity to go as
far as their abilities will take them. Many organizations have a policy
of promoting employees from within. This motivates employees to
contribute their maximum to the organization.
HERZBERG‟S TWO-FACTOR THEORY:
He identified that people were motivated by recognition, responsibility,
achievement and job advancement. He labels these factors as motivation.
He also identified that bad feelings were associated with low salary, minimal
fringe benefits. Power working environment and ineffective supervision.
These factors were labeled as dissatisfaction or hygiene factor
It should note that the presence of extrinsic (hygiene factors) results in
dissatisfaction, but the absence of motivating factor does not make employee
dissatisfied.
MOTIVATION
DISSATIFACTION
(HYGINE FACTOR)
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EMPLOYEE EMPOWERMENT
MEANING:
Employee empowerment is making a person completely responsible for a particular
task; the individual who is empowered becomes the process owner.
In the empowerment the individual in given complete authority required to
execute the process and ownership is created.
Condition:
Every one should understand the need for change in culture and
attitude.
The system must change to the new paradigm.
People should be provided with necessary resources.
Recognition Poor salary
Responsibility Ineffective leadership
Achievement Poor working environment
Job advancement Poor policies
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Empowerment is an environment in which people have the ability the
confidence and the commitment to take the responsibility and ownership
to improve the process and initiate the necessary steps to satisfy
customer requirements within well-defined boundaries in order to
achieve organizational values and goals
TEAMS
T-together E-everyone A-achieve M-more
A team is defined as a group of people working together to achieve common
objectives or goals.
Teamwork is the cumulative actions of the team during which each member
of the team subordinates his individual interests and opinions to fulfill the
objectives or goals of the group.
TYPES OF TEAM
1. Process improvement team.
Here, five to six members from various disciplines of the organization
are brought together to solve a problem. Usually the scope of the team
is limited to the work unit.
The life cycle of the team is usually temporary. The team is disbanded
after the problem (process improved) is solved.
2. Cross-functional team.
Here the team is constituted by the number of different functional
areas such as production, engineering, marketing, finance, e etc. it
may also include customers and suppliers.
3. Natural team.
This type of team is not voluntary in nature as it was with other
teams. Here all members of the work unit are in the team and the
manger is also part of the team.
4. Self-management work groups.
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They are an extension of natural work team without the supervisor.
These teams are the essence of the empowered organization. These
teams not only do the work but also manage it.
STAGES OF TEAM DEVELOPMENT:
1. Forming.
Forming is the fist and beginning stage of the life cycle of
a team.
A facilitator is appointed by the quality council and he
meets with the senior management to charter the path
the solution of the problem should take.
Once team is assembled, a meeting is called and the
facilitator briefs the problem to the team, and then
determine the type of training the team members may
need and identify an appropriate team leader.
2. Storming.
In this stage all members of the team are fully aware of
the quality problem they are faced with.
They will be interested in proving themselves by
exhibiting their individual skills.
3. Norming.
In this stage members have understood each other well.
Everyone knows each others strengths and weakness
and capabilities and limitations.
The roles of the members are clearly defined, mission
and objectives are clear and the course to be taken to
solve the problem is also clear.
4. Performing.
In this stage, the team members have understood the
project better and begin performing by diagnosing and
solving problems and choosing and implementing
changes.
BARRIES OF TEAM PERFORMING:
1. Poor training for the group members.
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2. Improper reward schemes.
3. Lack of planning.
4. Lack of management commitment in monitoring the team program.
5. Poor communication.
6. Too many members in team.
Role of team leader:
1. Ensure the smooth and effective operation of the team.
2. Handling and assigning the responsibilities.
3. Good record keeping.
4. Preparing and presenting the report.
5. Prevents other members from dominating.
6. Use positive interpersonal dominating.
7. Serve as a contact point between the team and qty council.
8. Monitors the status and accomplishments of member assuming
firmly completion of assignments.
9. Prepares the meeting agenda i.e. time, date, location.
Role of team member:
1. Contributes best.
2. Sharing knowledge.
3. Listen carefully and ask question.
4. Negotiate important points.
5. Supports the decisions of the team.
6. Trust support concern for other team members.
7. Understands and is committed to team objectives.
8. Respects and is tolerant of individual differences.
9. Acknowledges and worker through conflict openly.
10.Carries out assignments between meetings such as connecting
data observing charting data and returning report.
11.Gives honest sincere appreciation.
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Recognition and reward:
Recognition and reward are basic motivational tools used to motivate
employees to encourage them to maintain and improve their present level.
Publicly acknowledging the contributions of an individual is called
recognition.
This acknowledgement may be in the form of a certificate or a verbal
praise.
On the other hand the rewards are tangible such as cash reward, gold
coins etc
Reward can be delayed but the recognition of the contributions must
be done immediately.
Purposes:
1. Reward system reminds the continual improvement required for the TQM
journey.
2. Serves as a platform for encouraging the super performances.
3. Serve as a goal for the employee.
4. Serve as a morale booster.
Performance appraisal
Performance appraisal is the judgement of employee‘s performance in the
organization.
Performance appraisal is defined to show the employees how they are doing.
This serves as a basis for promotion, salary increases etc those who are rated
poorly should be allowed to undergo special counseling and skill up-grading
programmer.
It should help people to assess themselves and improve.
Appraisal format:
1. Ranking- compares employees by ranking from highest to lowest.
2. Narrative- gives a written description of employee‘s strength and weakness.
3. Graphic-indicate the major duties performed by the employees and rate each
duty with a sale, which is usually from 1(poor) to 5(excellent).
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4. Forced choice-places each employee‘s in a category with a predetermined
percentage for example excellent 10%, very poor 25%, grave 30%, fair 25%,
poor10%.
BENEFITS
1. PROMOTION
2. SALARY INCREASE
3. BONUS
4. INCENTIVES
5. INDENTIFYING TRAINING NEEDS
6. IMPRORING SKILLS OF THE EMPLOYEE‘S
7. TO IMPROVE EMPLOYEE PERFORMANCE
8. TO RATING THE CUSTOMERS.
CONTINUOUS PROCESS IMPROVEMENT
CPI is the care of TQM. CI in the business process as war as
production process is desired for the growth of the organization.
CPI is possible by
1. Making all process effective and adaptative.
2. Accepting the change in the customer requirements and tuning ourselves to
meet demand.
3. Improving the productivity by eliminating waste.
4. Permanently eliminating the ‗non-value adding activities‘.
5. Our self with the best player in the field.
6. Using advanced tool like DOE(design of experiments), SPC, quality function
development etc .
JURAN‟S TRILOGY
Juran‘s trilogy consists of three managing process quality planning, quality
control and quality improvement.
Quality planning:
The quality planning starts with identifying external customers of a business.
Identify who are the customers.
Determine the needs of those customers
Translate those needs into the business possibility
Develop a product that can respond to those needs
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Optimize the product features so as to meet the organizations
needs and customer‘s needs.
Quality Improvement
Develop a process which is able to produce the
Product.
Optimize the process.
Quality control:
Prove that the process can be producing the producet under
operating conditions with minimal inspection.
Transfer the process to operations.
The quality control involves checking the products produced
with specification.
QUALITY IMPROVEMENT STRAREGIES
1. REPAIR:
There are two levels of repair.
a) In the first level the team or an individual working in the process
identifies the problem and eliminates the root cause of the problem. This
brings in permanent solution for the problem.
b) In the next level the faulty product reaches the customer. The customer
then indicates that he has received a bad product and the product is
either replaced or repaired. This is temporary solution to the problem.
c) It is important to note that the repair strategy will not make the process
better than the original design.
2. CONTINUOUS IMPROVEMENT/ REFINEMENT:
Refinement is doing things a little bit, faster, better, easier, or with
less waste.
It is the process products and services are required to keep the
quality improvement process alive. But management may fail to notice the
small improvement and influence fail to reward the improvement efforts.
This will result in dissatisfaction and loss of involvement.
3. INNOVATION:
The processes and products by innovative methods.
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For example: automation of process.
4. PARADIGM SHIFT (RE-INVENTION):
When a company understand that the existing processes cannot
ensure the customer satisfaction it is better to reinvent the process.
PDSA CYCLE
STEWART developed the plan-do-check-act (PDCA) cycle and late Deming
modified it to plan-do-study-act (PDSA) cycle.
Plan: By management. Do: By the operator. Study: quality manager Act:
management
Plan
It is important to establish the stage of the change to be introduced.
Plan on how you are going to collect the information about the
differences that occur after the implementation of the plan.
What is to be done and how to achieve.
Do:
Put the plan into practice.
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There may be changes that should only be measured over long
periods.
Record any unexpected event, problems and other observations. Star
analyzing the data.
Study
Review and reflect on the data collected in the previous step
Find out whether there has been any improvement in the process.
Did your expectations match the reality of what happened?
Find out what could have been done differently.
Act
Carry out an amended version of what happened during the ―Do"
stage and measure any differences
PROBLEM SOVING METHOD FOR PROCESS IMPROVEMENT.
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5s-concept
1. Seiko (Proper arrangements)
This is the proper identification of materials, equipments and tools,
data and information which are necessary or not necessary,.
Provide the necessary space for the required or necessary items which
you require to perform the necessary task.
2. Seiton (orderliness)
Every equipment or data or anything should be placed in its
appropriate and unique place.
So that a simple eraser or pencil can be found at the same place every
time by everybody in the organization.
This reduces confusion and avoids wastages of time.
The place in which it is stored should be easily accessible and
appropriate.
3. Seiso (Cleanliness)
The shop floor should be free of wastage, oil spills, cotton wastes etc.,
The tools also should be clean, the machines should be clean and the
entire organization should be free from dirt and any unexpected
objects lying around.
Keep the work place clean and make data and information easily
available and constantly updated in order to support decision making.
4. Seiketsu (personal cleanliness).
A person should be clean and his cloths should be clean. Only a clean
person can be conscious about keeping his workplace clean and neat.
Moreover unclean person present a work situation were co-workers
become uncomfortable to work in.
Personal cleanliness automatically creates a favourable condition at
work place for physical and mental health, free from dirt, pollutants
etc.
5. Shitsuke (Discipline).
This may not only be the jobs related to the organization but also
personal work.
Job discipline is the habit and skill development to perform the job
according to standards, to observe company rules and policies at all
times.
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This habit of discipline is developed as a result of excursing mental,
moral and physical strength.
KAIZEN
The philosophy that defines management role in continuously
encouraging and implementing small improvements involving everyone.
It is the process of continuous improvement in small increments that
make the process more efficient, effective, under control and adaptable.
Improvements are usually that make the accomplished at little or no
expenses without sophisticated techniques or expensive equipment. It focuses on
simplification.
Kaizen is possible only when the management is able to hear the
workers. It requires an effective communication in both the directions.
KAIZEN REQUIRES THE USE OF THE FOLLOWING:
1. The data about value adding and non-value adding activities.
2. The knowledge about various types of waster (Muda). Over production, delay,
transportation, processing, inventory, wasted motion and defective parts.
3. Documentation of the operating procedure.
4. Principles of time study.
5. Following the 5s concept.
6. Fewer inventories – use JIT.
7. Mistake proofing- to prevent or detect errors.
8. Effective use of teams to solve problems and to improve the performance.
SUPPLIER PARTNERSHIP
The relationship between customer (company) and the supplier. Customer
and supplier have the same goal to satisfy the end user. Both the customer and
the supplier have limited resources they must have work together as partners to
maximize their return on investment.
Principles of customer-supplier relations:
1. Both the customer and supplier are responsible for the quality control.
2. Supplier and customer should be independent of each other.
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3. The customer must communicate to the supplier about his requirements.
4. There should be agreement with respect to quality, price, mode of delivery
and payment mode.
5. The supplier should supply quality materials that will result in customer
satisfaction.
6. Provisions for the easy settlement of the disputes.
7. Mutual exchange of information.
PARTNERING
Meaning:
Partnering is a long-term commitment between two or more organization for the
purpose of achieving specific business goals and objectives by maximizing the
effective of each participants resources.
Benefits:
1. Improve quality.
2. Increased efficiency.
3. Lower cost.
4. Opportunity for innovation.
5. Continuous improvements of product and services.
KEY ELEMENTS OF PARTNERING:
1. LONG-TERM COMMITMENT:
Long-term commitment provides the needed environment for both
partners to work toward continuous improvement.
Problems require time to solve or process need constant improvement.
Each partner contributes its unique strengthen to the processes.
Investment in new equipment or systems may be required.
These must be a to far organization involvement from the CEO to the
workers.
2. TRUST:
Mutual trust forms the basis for a strong working relationship.
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Open and frequent communication avoids misdirection and disputes
while strengthening the relationship.
The parties should have access to each other business plans and
technical information.
They may share or integrate resources such as training activities,
administration systems and equipment.
Both parties become mutually motivated when win-win solution not
rather than win-lose solution.
3. SHARED VISION:
Shared goal and objectives ensure a common direction and must be
aligned with each parties.
Employees of both parties should think and act for their common
good.
Understand each other‘s business so that equitable decision are made
Sharing of business plan.
SOURCING
SOURCING is the process of identifying the suppliers for the items required by an
organization for produce or manufacturing the product. There are three types of
sourcing
1. Sole sourcing:
The organization is forced to use only one supplier.
Only one organization producing the item.
2. Multiple sourcing:
Two or more suppliers are available for the required item.
It eliminates dependency.
Usually these suppliers are chose in term of price, quality and
delivery.
It will result in better quality low cost and better service.
If there is a strike going on in one of the supplier‘s company the
manufacturer need not wait for him.
3. Single sourcing:
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Though there are number of suppliers available for a particular
commodity selecting a single vendor for the organization to supply the item
is called single sourcing.
It results in long-term product.
Supplier Selection
The company before going for selecting a supplier should finalize on ―Make
or Buy‖ decision. The following questions must be answered before
proceeding with the suppliers.
1. How critical is the item to the final product/ service
2. Is it possible to produce the item internally? Do we have technology to
produce it? If not, can we develop it?
3. Are there any specialized suppliers for the item? Or can we develop such
a supplier?
Finally the decision is made to outsource, the following points must be considered
for evaluating the suppliers.
a. The supplier‘s ability to understand the management philosophy of the
organization.
b. The technical expertise available now and the ability to cope up with the
future technical requirements.
c. The supplier‘s ability to consistently supply the raw materials that meet the
specifications of the purchaser.
d. The supplier‘s ability to meet the demand and ability to increase the volume
of production when demanded.
e. The credibility of the supplier in maintaining the corporate secrets.
f. System of delivery and communication systems available with the supplier.
g. The track record of the supplier with the company.
Supplier Rating.
To assess the performance of the suppliers with respect to quality, speed if
delivery, and service, the supplier rating is done. Supplier rating is the process of
categorizing the suppliers on the basis of quality, prompt delivery, and services.
1. Supplier rating enables the company to obtain an overall rating of the
supplier performance.
2. It ensures complete communication with customers on all the key areas.
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3. It enhances the customer- supplier relationship by providing an objective
feedback of the supplier‘s performance.
4. It provides the supplier‘s with a factual record of mistakes, so that the
suppliers can eliminate them in future.
For example
Supplier Rating System. - Scorecard.
Performance Characteristics
Supplier
Quality
(40-
Marks)
Prompt
Delivery
(20-
Marks)
Communication
system (20-
Marks)
Product
Technology
(20-Marks)
Total
Marks
(for 100 –
Marks)
Supplier –
A 35 15 12 20 82
Suppler -
B 30 20 19 10 79
Supplier -
C 25 13 17 10 65
The above the clearly show - the supplier –A having more score comparing with the
B and C. so it is conclude that the supplier –A is good performance.
RELATIONSHIP DEVELOPMENT
Sustaining the relationship with the suppliers is important after initiating
the customer supplier partnering process. To keep the relationship alive and
growing the following activities are carried out.
1. Inspection
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The purpose of this inspection process is to gain confidence in each other‘s
performance and finally automating the inspection activity. There are four
phase in the inspection process.
a. 100% inspection
b. Sampling inspection
c. Audit
d. Identity Checks.
2. Training
It is always better to educate the suppliers on what we expect from them and
what quality means to us in the business process. This is possible by allowing the
suppliers to undergo training programmes conducted by the senior officials at
customer‘s sites.
3. Team Effort
In all the possible areas the teams must involve officials from the suppliers
side also. This will enhance the understanding of the suppliers and their role in the
business process will be clear to them.
The team meeting must be arranged at both the customer and the supplier
premises.
4. Recognition
The customer should recognize the supplier‘s performance by awarding
them with a place in the preferred suppliers list. A certificate of contribution
to the business must be given to them. This recognition will surely develop
the relationship between the customer and the supplier
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UNIT III TQM TOOLS & TECHNIQUES I
SEVEN TOOLS OF QUALITY
FLOW CHARTS It shows the process of work i.e. the flow of material or
information through a sequence of operations. These diagrams
show the flow of the product or services as it moves through
the various processing operations.
The diagram makes it easy to visualize the entire system,
identify potential trouble spots and locate control activities.
Improvements can be accomplished by changing, reducing
combining or eliminating steps.
For Example
Flow diagram for an order entry activity
OK
RUN CHARTS Run charts are simply plots of process characteristics against
time or in chronological sequence. They do not have statistical
basis, but are useful in revealing.‘
Trends Relationship between variables.
Telephone
Log in Fax
Letter
Schedule
production Inventory
Check
Contract
review
Hold
Notify customer as to
delivery date
Production
etc.,
Credit
check
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12
10
08
06
04
02
0
0 20 40 60 80 100 120 140
PARETO CHARTS AND ANALYSIS The 20% rule
Vilfredo Pareto (1848-1923)
80% of the wealth in Italy was held by 20% of the production
20% of customers accounted for 80% of sales 20% of parts accounted for 80% of cost.. Etc.
Pareto principles states that
PARETO charts show the most frequently occurring factors Analysis of pareto charts help to make best use of limited
resources by targeting the most important problems to tackle.
60
50
40
30
20
10
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0
A B C D E F G H
CAUSE AND EFFECT DIAGRAMS It was developed by Dr. Kaoru Ishikawa in 1943mand is
sometimes referred to as an Ishikawa diagram or a fishbone
diagram because of its shape.
A cause and effect diagram is a picture composed of lines and
symbols designed to represent a meaningful relationship
between an effect and its causes.
This tool helps to organize problem-solving efforts by
identifying all the factors that might have caused the problem.
During brain storming sessions, this diagram is used to
organize the ideas generated.
A typical cause-and-effect diagram is shown. The diagram
shows the various elements (cause) that would have caused
cracks on the surface, after the finishing process.
People Materials Arrangement
Hiring Responsibility Commitment
Qty Policy
Specification Vendors
Orientation Costs
Training
Inspection Customer needs
Controlled
Design Devices
Quality
Improvem
ent
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Maintenance calibration Un controlled
Standards Quality Impact
Equipment Measurement Environment
HISTOGRAM DIAGRAMS A histogram is a graph that displays the distribution of data. A
histogram is also known as ‗frequency distribution diagram‘. It is
constructed from the data collected in a frequency table. A frequency
table is a chart that divides the range of data into several equal
sections to compare the frequency of occurrence in each section.
Uses of histogram
A histogram is used to show clearly where the most frequently
occurring values are located and the data is distributed. It is also a
tool for determining the maximum results. It enables the analyst to
quickly visualize the features of a complete set of data.
Construction of histogram A histogram may be constructed using the following steps:
1. After the data collection, count the number of data values collected. 2. Determine the range of the data. Range=Highest value-lowest value.
3. Divide the data values in groups or classes and count the number of values in each class. The following table shows the guidelines to
divide the data values. GUIDELINES TO FORM CLASSES
Number of values Number of classes Number of values Number of classes
Less than 50 5-7 100-250 7-12
50-100 6-10 More than 250 10-20
4. Now deter mine the width of the classes
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Width of the classes=range/Number of classes selected from the above
table
5. Draw a frequency table for all values. 6. Construct a histogram based on the frequency table. For that, mark
the class limits on the horizontal axis and the frequency on the vertical axis.
7. Finally write the title and number of values on the diagram.
Types of histograms and their interpretations The following patterns are very useful in the analysis of data.
(a) Bell-shaped histogram
Bell-shaped Symmetrical shape with a peak in middle representing a normal
distribution.
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(b) Double-peaked histogram
Double-peaked Two normal distribution with two peaks in middle indicating more than
one distribution at work.
© Plateau
Plateau Flat top, no distinct peak and tails indicating more than one distribution
at work
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(d) Comb
Comb Alternative peaks showing possible errors in data collection and analysis
(e) Isolated peak
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Isolated peak Two normal distributions suggesting two processes taking place at the
same time.
(f) Edged peak
Edged peak A normal distribution curve with a large peak at one end indicating
errors in data recording.
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(g) Skewed
(h) Truncated
Skewed An asymmetrical shape positively or negatively skewed-usually reflecting
limits in the specification on one side.
Truncated An asymmetrical shape with a peak at the end. Usually being a part of a
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CHECK SHEET
A check sheet is a form in table format prepared for recording
data. Thus the necessary information can be recorded by
making a check mark on the page. Check sheets are used in
following ways:
1. Check sheets for recording data and making surveys
Defective item check sheet
Defect factor check sheet
Defect position check sheet
Process distribution check sheet 2. Inspection and validation check sheet
Product name…
Product no…
Process: publishing
DEFECTIVE ITEM CHECK SHEET
DAY
normal distribution with part of it having been removed.
Defect 1 2 3 4 Total
A IIII II IIII I II I 16
B III IIII I I II 12
C IIII IIII IIII I III III 21
D II IIII I II IIII 13
Total 16 29 8 9 62
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A-spelling mistakes
B-grammar mistakes
C-mistakes in the page numbers
D-punctuation marks
CONTROL CHARTS A control charts is used to monitor a process to see if the
process output is random. It helps to detect the presence of
controllable causes of variation. It can also indicate when a
problem occurred and give insight into what might have caused
the problem. Control charts are discussed in detail in the topic
‗statistical process control‘.
A control chart invented by WALTER A.SHEWRAT is the most widely used tool
in statistical process control (SPC).
A control chart is a graph that displays data taken over time and variations of
this data.
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The control chart is based on a series of random samples taken at regular
intervals.
The chart consists of three horizontal lines that remain constant over time: a
centerline, a lower control limit (LCL), and on upper control limit (UCL).
The center is usually set at normal design value. The UCL and LCL are generally
set at +_3 standard deviations of the sample means.
If a sample drawn from the process lies inside these (UCL and LCL) limits, it
means the process is in control. On the other hand, if the sample lies outside
these limits, then the process is said to be out of control. So appropriate
corrective action is necessary to eliminate the condition.
Types of control charts:
The two basic control charts are:
(a) Control charts for variable-for measurable data such as time, length, temperature, weight, pressure etc.
(b) Control charts for characteristics-for quantifiable data such as number of defects in a glass bottle (air bubbles), typing error in report, etc.
Uses of control charts The purpose of a control chart is to identify when the processes has gone out
of statistical control, thus signaling the need for some corrective action to be
taken.
SCATTER DIAGRAMS
Scatter diagram is a graph that shows the degree and direction of relationship
between two variables. It can be useful in deciding whether there is a correlation
between any two variables.
Relationship between the temperature and the number of errors committed per
hour. High values of temperature correspond to high number of errors and vice
versa. Higher values of speed correspond to low noise and vice versa.
The higher the correlation between the two variables, the lesser will be the scatter
the points will tend to line up. On the other hand, if there were little or no
relationship between two variables, the points would be completely scattered.
Uses of scatter diagram
The purpose of scatter diagram is, therefore to display what happened to one variable to another variable is changed.
This diagram is used to understand, why particular variations occur and how they can be controlled.
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Types of scatter diagram
a) Positive correlation b) Negative correlation
c) No correlation d) Negative correlation may exist
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x
x
x
x
x x
x x
e) Correlation by stratification f)curvilinear relationship
PROCESS CAPABILITY
Process capability compares the output of an in-control process to the
specification limits by using capability indices. The comparison is made by forming
the ratio of the spread between the process specifications (the specification ―width‖)
to the spread of the process values, as measured by process standard deviation
units (the process ―width‖)
SIX SIGMA Six-sigma strategy can be used in an organization to achieve incredible levels of
efficiency. The defects can be brought down to a level pf 3.4 parts per million. This level is
with a shift of 1.5 . If the process can be cantered properly the value can be still smaller (i.e.
two defects per billion).
The objective of the six-sigma quality is to reduce process output variation so that six
standard deviations lie between the mean and the nearest specification limit.
THE NEW SEVEN MANAGEMENT AND PLANNING TOOLS The advanced tools that are used to manage cross functionality include the
seven new QC tools also known as the ― Seven Management and Planning Tools‖ or
7 MP Tools in the US.
1. Identify a system owner and team members for each critical system.
2. Describe the system under study
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3. Identify all subsystems that contribute to the critical system
4. Define the interdependencies of the subsystems
5. Prioritize the subsystems as to their contribution to the critical system
6. Develop a detailed ―as is‖ description of the critical system. This includes identifying the interfaces between all system components as well as expanding the level of detail for major contributing subsystems. 7. Identify obvious system deficiencies 8. Identify possible causes of system deficiencies 9. Establish ― basic line‖ measures for the system and major subsystems 10. Assess the performance of the system and major subsystems 11. Develop a ― should be‖ description of the system and subsystems 12. Recommended changes to improve system and subsystem performance.
THE NEW SEVEN MANAGEMENT AND PLANNING TOOLS ARE:
AFFINITY DIAGRAMS In affinity diagrams large volumes of data is gathered and
organized. Ideas, opinions, and facts relating to a problem are grouped. A
sequence or pattern formation is the main aim. This is mainly used in
addressing issues such as customer dissatisfaction etc. affinity diagram
are tools for verbal data. Its applications are to organize into groups a large
number of ideas, opinions about a particular topic.
English language speaking skills of students
Teachers
MANA
GERI
AL
FUNC
TION
S AT
DIFF
EREN
T
ORGA
NISA
TION
AL
LEVE
Flu
ency
Qu
alif
icat
ion
Pat
ien
ce
Mother
tongue
Lite
racy
Leis
ure
Neighbor
hood
Interest
Fellow
Students
Parents
MANA
GERI
AL
FUNC
TION
S AT
DIFF
EREN
T
ORGA
NISA
TION
AL
LEVE
Students
MANA
GERI
AL
FUNC
TION
S AT
DIFF
EREN
T
ORGA
NISA
TION
AL
LEVE
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Example of an affinity diagram drawn to improve the English language
speaking skills of students.
INTER RELATIONSHIP DIAGRAM The relationship between causative factors and then main issue is
established. This tool helps us in identifying the relationship between different factors,
which cause a problem or issue.
It also helps in determining the interrelationship between these
factors. This tool is used to identify the major causes, which help in solving
a problem on the basis of logical analysis and linkage of causes associated
with the problem.
Customer
Satisfaction
Example of a relationship diagram drawn to improve customer satisfaction.
TREE DIAGRAM Tree diagram is listed as a tool for non- numerical data. It is
used to show the relationship between an issue and its component elements.
Therefore a tree diagram breaks down the issue into its component elements. This
is a tool for operational planning after initial diagnosis of issues.
Good
Performance
Good aesthetic
product
Long Lasting
Product
Low
Cost
Low cost raw
material
Low cost
technology
Labour Welfare
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Example of a tree diagram constructed to analyze the monthly outgoings in a
company
MATRIX DIAGRAM A matrix diagram consists of a set of columns an rows. The intersections of
these rows and columns are checked for determining the nature and
strength of the problem. These help us to arrive at the key ideas and
determining the relationship and an effective way of perusing the problem,
MATRIX DATA ANALYSIS
***** *****
Maximum Profit
Expenses towards
material purchase
Expenses towards
labour wages
Labour Wages
Facilities for work
force
Materials for
Maintenance
Consumables
Materials for
infrastructure
development
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***** ***** ***** ***** *****
***** ***** ***** ***** ***** *****
***** ***** ***** ***** ***** *****
***** ***** ***** ***** ***** ***** *****
Matrix data analysis
PROCESS DECISION PROGRAMME CHART It is method, which maps out conceivable events and contingencies
that can occur in any implementation plan along with appropriate counter
measures. This tool is used to plan each possible chain of events that need
to occur when the problem or goal is unfamiliar one. This is a qualitative
tool.
Thus PDPC is useful whenever uncertainty exists in a proposed
implementation plan.
Poonamalle koyambedu
Madras
Kanchipuram
Walajapet Padapai
Example of process decision programme chart for commuting
between Kanchipuram and Madras
ARROW DIAGRAM Arrow diagram is tool to plan the most appropriate schedule for
the completion of a complete task and its related sub-task. It projects likely
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completion time and monitors all sub tasks adherence to necessary
schedule.
The total work or task is sub- broken down to sub tasks or activities.
The sub tasks and the total work is linked by arrows and a diagram is
constructed to depict the activities.
Soil test
Acquire site obtain bids
Feasibility study Prepare plan evidence Release contract
approval
Loan application
Market study secure finance
Arrow diagram of list of activities in a construction firm
A
B
C
D
E
F
G
H
-Measures of Central Tendency and dispersion,
-Population and sample,
-Normal curve,
-Control charts for variables and attributes
-Population and sample
-Process capability
Problems and solutions
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BENCH MARKING
Introduction
Benchmarking involves management identifying the best firms in their
industry, or any other industry where similar processes exist, and comparing the
results and processes of those studied (the "targets") to one's own results and
processes to learn how well the targets perform and, more importantly, how they do
it
Bench marking is the comparison of the processes and systems of a given
business function across companies. It is a way for managers and employees to
compare their functional performance to that of other companies. It can be defined
as
Measuring your performance against that of best in-class companies
Analyzing how (methods) the best achieve their performance level.
Using the information as the basis for evaluating your own targets,
strategy and applications.
Involvement and improvements are not limited to employees. In some
cases, customers and suppliers are involving group problem solving.
DEFINITION
“Bench marking is the process of identifying, understanding, and
adapting outstanding practices from organizations anywhere in the world to
help your organization improve its performance”.
The following is an example of a typical benchmarking methodology:
1. Identify your problem areas –
Because benchmarking can be applied to any business process or
function, a range of research techniques may be required. They include:
informal conversations with customers, employees, or suppliers; exploratory
research techniques such as focus groups; or in-depth marketing research,
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quantitative research, surveys, questionnaires, re-engineering analysis,
process mapping, quality control variance reports, or financial ratio analysis.
Before embarking on comparison with other organizations it is essential that
you know your own organization's function, processes; base lining
performance provides a point against which improvement effort can be
measured.
2. Identify other industries that have similar processes –
For instance if one were interested in improving hand offs in addiction
treatment he/she would try to identify other fields that also have hand off
challenges. These could include air traffic control, cell phone switching
between towers, transfer of patients from surgery to recovery rooms.
3. Identify organizations that are leaders in these areas –
Look for the very best in any industry and in any country. Consult
customers, suppliers, financial analysts, trade associations, and magazines
to determine which companies are worthy of study.
4. Survey companies for measures and practices –
Companies target specific business processes using detailed surveys
of measures and practices used to identify business process alternatives and
leading companies. Surveys are typically masked to protect confidential data
by neutral associations and consultants.
5. Visit the "best practice" companies to identify leading edge practices –
Companies typically agree to mutually exchange information
beneficial to all parties in a benchmarking group and share the results
within the group.
6. Implement new and improved business practices –
Take the leading edge practices and develop implementation plans
which include identification of specific opportunities, funding the project and
selling the ideas to the organization for the purpose of gaining demonstrated
value from the process.
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Types of benchmarking
Process benchmarking –
The initiating firm focuses its observation and investigation of
business processes with a goal of identifying and observing the best
practices from one or more benchmark firms. Activity analysis will be
required where the objective is to benchmark cost and efficiency;
increasingly applied to back-office processes where outsourcing may be a
consideration.
Financial benchmarking –
Performing a financial analysis and comparing the results in an effort
to assess your overall competitiveness and productivity.
Benchmarking from an investor perspective-
Extending the benchmarking universe to also compare to peer
companies that can be considered alternative investment opportunities from
the perspective of an investor.
Performance benchmarking –
Allows the initiator firm to assess their competitive position by
comparing products and services with those of target firms.
Product benchmarking –
The process of designing new products or upgrades to current ones.
This process can sometimes involve reverse engineering which is taking
apart competitors products to find strengths and weaknesses.
Strategic benchmarking –
Involves observing how others compete. This type is usually not
industry specific, meaning it is best to look at other industries.
Functional benchmarking –
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A company will focus its benchmarking on a single function to
improve the operation of that particular function. Complex functions such as
Human Resources, Finance and Accounting and Information and
Communication Technology are unlikely to be directly comparable in cost
and efficiency terms and may need to be disaggregated into processes to
make valid comparison.
Best-in-class benchmarking –
Involves studying the leading competitor or the company that best
carries out a specific function.
Operational benchmarking –
Embraces everything from staffing and productivity to office flow and
analysis of procedures performed
Reasons to Bench Marking
Its aims at a goal setting process to facilitate comparison with the best
To measure the relative performance of the organization.
To analyze and determine how the best company has achieved its
performance level so that the same strategy can be followed.
The information can be used to relatively evaluate or rank our targets
and strategies presently followed.
It aims at searching for industry best practices
Bench Marking Concept
What is our present
performance level?
How do we do it?
Break through
performance
What are others
performance levels?
How did they get there?
Creative
Adaptation
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Bench Marking Process
The benchmarking process consists of five phases:
Gap analysis between our own company practices and other superior
practicesAssimilating and understanding the prevalent best practices in industries
to find out ―What must be changed‖Recognizing and identifying the ― bench
marking partner‖ and studying there best practices.Executing and implementing
bench marked practices at our own unit to achieve the target.Evaluating the
results and outcomes to determine where we stand after
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implementing the changes.
I. Planning.
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The essential steps are those of any plan development:
what, who and how.
Earmark what is to be benchmarked?
Identifying the best competitor
Determine the data collection method and the start collecting data
What is to be benchmarked? Every function of an organization has or
delivers a ―product‖ or output. Benchmarking is appropriate for any output
of a process or function, whether it‘s a physical good, an order, a shipment,
an invoice, a service or a report.
To whom or what will we compare? Business-to-business, direct
competitors are certainly prime candidates to benchmark. But they are not
the only targets. Benchmarking must be conducted against the best
companies and business functions regardless of where they exist.
How will the data be collected? There‘s no one way to conduct
benchmarking investigations. There‘s an infinite variety of ways to obtain
required data – and most of the data you‘ll need are readily and publicly
available. Recognize that benchmarking is a process not only of deriving
quantifiable goals and targets, but more importantly, it‘s the process of
investigating and documenting the best industry practices, which can help you
achieve goals and targets.
II. Analysis.
The analysis phase must involve a careful understanding of your
current process and practices, as well as those of the organizations
being benchmarked. What is desired is an understanding of internal
performance on which to assess strengths and weaknesses.
Ask:
Is this other organization better than we are?
Why are they better?
By how much?
What best practices are being used now or can be anticipated?
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How can their practices be incorporated or adapted for use in our
organization?
Answers to these questions will define the dimensions of any performance
gap: negative, positive or parity. The gap provides an objective basis on
which to act—to close the gap or capitalize on any advantage your
organization has.
III. Integration.
Integration is the process of using benchmark findings to set
operational targets for change. It involves careful planning to
incorporate new practices in the operation and to ensure benchmark
findings are incorporated in all formal planning processes.
Steps include:
Gain operational and management acceptance of benchmark findings.
Clearly and convincingly demonstrate findings as correct and based on
substantive data.
Develop action plans.
Communicate findings to all organizational levels to obtain support,
commitment and ownership.
1. Communicate benchmark findings and gain acceptance.
2. Establish functional goals
Communication data for analysis Give acceptance for
analysis
IV. Action.
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Convert benchmark findings, and operational principles based on
them, to specific actions to be taken. Put in place a periodic measurement
and assessment of achievement. Use the creative talents of the people who
actually perform work tasks to determine how the findings can be
incorporated into the work processes.
Any plan for change also should contain milestones for updating the benchmark
findings, and an ongoing reporting mechanism. Progress toward benchmark
findings must be reported to all employees.
V. Maturity.
Maturity will be reached when best industry practices are incorporated in all
business processes, thus ensuring superiority.
Tests for superiority:
If the now-changed process were to be made available to others, would a
knowledgeable businessperson prefer it?
Do other organizations benchmark your internal operations?
FAILURE MODE AND EFFECT ANALYSIS
Introduction
Failure Mode Effect Analysis is an analytical technique that goes in for
combining Technology and Experience of people to identify foreseen
failures in a product or process and planning to eliminate the Failure.
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MEANING
Failure mode and effect analysis (FMEA) also known a risk analysis is a
preventive measure to systematically display the causes, effects and possible
actions regarding observed failure.
The objective of FMEA is to anticipate failures and prevent them from occurring.
FMEA priorities failures and attempts to eliminate their causes.
FMEA is an engineering technique used to define, identify and eliminate known
and/ or potential failures, problems, errors which occur in the system, design
process and service ‗ before they reach the customers‘
TYPES OF FMEA
Major Classification
Design FMEA
Process FMEA
Sub Classification
Equipment FMEA
Maintenance FMEA
Service FMEA
System FMEA
1. Design FMEA
Design FMEA involves the analysis of the potential failures of product
or service due to component or subsystem unreliability
Design FMEA is to establish priorities based on expected failures and
severity of those failures.
2. Process FMEA
Process FMEA involves a failure analysis of a manufacturing process.
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The process FMEA is used primarily to identify areas of critically of
control and to emphasize the design and more reliable.
FAILURE RATE
Products follow a pattern of failure.
There is no information about the reliability (i.e. Failure) of the product.
Failure Rate is a constant is known period of failure can be found out using
Exponential Distribution
Rt = e – λt Rt = Reliability of survival
Rt = e - t / θ t = Time for operation without failure
λ = Failure rate θ = Mean time to Failure
BENEFITS OF FMEA
Improve product/process reliability and quality
Increase customer satisfaction
Early identification and elimination of potential product / process failure
modes.
Prioritize product /process deficiencies
Capture engineering/ organizational knowledge
Document and track the actions taken to reduce risk
Provide focus for improved testing and development.
Minimize late changes and associated cost.
FMEA PROCEDURE
1. Describe the product/process and its function
2. Create a block diagram of the product/ process:
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It shows the relationship of components and establishes a
structure, which the FMEA can be developed.
3. Complete the header of the FMEA form worksheet.
Changing team leader, team members if it‘s needed
4. List product/process function
5. Identify failure modes
A failure mode is defined as the manner in which a component,
subsystem, system, process, etc., could potentially fail to meet the design
purpose.
Examples of potential failure modes include- corrosion, torque,
fatigue, deformation, cracking, electrical short or open and hydrogen
embitterment.‘
6. Describe the potential failure effects:
A failure effect is defined as the result of a failure mode on the
function of the product/process as perceived by the customer
Examples of failure effects include: injury to the user, impaired
operation, poor appearance, odors, noise and degraded performance.
7. Establish the numerical ranking for the severity of the effect.
8. The ClASS column is used to classify any special product characteristics
for components, sub-systems, or systems that may require additional
process controls.
9. Identify the potential causes/ mechanisms of failure.
Example:- improper torque applied, improper operating
conditions, improper alignment, excessive loading etc.,
10. Enter the probability factor.
A numerical weight should be assigned to each cause that
indicates how likely that cause. (i.e., probability of the cause causing)
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11. Identify current control
12. Determine the likelihood of deduction
The likelihood of detection is also based on a 1 to 10 scale, with 1
being the certain of detection and 1- being the absolute uncertainty of
detection.
13. Review Risk Priority Number (RPN)
The risk priority number is defined as the product of Severity(S),
Occurrence (O), and detection (D) rankings
i.e., RPN = Severity x Occurrence x Detection
14. Determine the recommended actions
15. Assign responsibility and a target completion date for these actions. This
makes responsibility clear cut and facilities tracking
16. Indicate actions taken..
17. Update the FMEA as the design or process changes, the assessment
changes or new information becomes known.
UNIT IV TQM TOOLS & TECHNIQUES II
QUALITY FUNCTION DEPLOYMENT
It is a structured method that is intended to transmit and translate
customer requirements, that is, the
Voice of the Customer
Through each stage of the product development and production process,
that is, through the product realization cycle.
These requirements are the collection of customer needs, including all
satisfiers, exciters/delighters, and dissatisfies.
QFD is systematic and organized approach of taking customer needs and demands
into consideration while designing new products and services (or while improving
existing products and services)
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QFD focuses on the „ voice of the customer ‟ i.e. customer expectation or
requirements. That‘s why QFD is sometimes as “Customer Driven Engineering‖
Definition
Quality Function Deployment may be defined as a system for
translating consumer requirements into appropriate requirements at every
stage, from research through product design and development, to
manufacture, distribution, installation and marketing sales and services.
Objectives
To identify the true voice of the customer and to use this
knowledge to develop products which satisfy customers
To help in the organization and analysis of all the relevant
information associated with the project.
In short the QFD aims at translating the customer voice (or)
requirements into products specifications
QFD PROCESS
QFD is a team based management tool. Here customer expectations are
used to drive the product development process. In a typical QFD
application, a cross functional team creates and analysis a matrix
linking customer wants and needs to a set of product and service
designs metrics that the company can then measure and control.
Customer Requirements
Design requirements
Part / Item Characteristics
Process Operations
Operations Requirements
Product
Planning
Product
Design
Process Planning
Process Control
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Product planning (Begins with customer requirements)
Part Development
Process planning
Production planning (End with
Prototype and production launch)
Phase-I
Product planning
Part
Characteristics
Des
ign
Req
uir
emen
ts
Design
requirements
Cu
sto
mer
Req
uir
emen
ts
Manufacturing
operations
Par
t
Ch
arac
teri
stic
s
Production
Requirements
Man
ufa
ctu
rin
g
op
erat
ion
s
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List of customer requirements (What‘s)
List technical descriptors (How‘s)
Develop a relationship matrix between What and How
Develop an interrelationship matrix between How‘s
Do competitive assessments
Develop prioritized customer requirements‘
Develop prioritized technical descriptors
Phase- II
Part Development
Deploy QFD process down to sub- components level both in terms of
requirements and characteristics
Deploy the component deployment chart. Relate the critical sub-
component control characteristics
Phase – III
Process Planning
Develop the relationship between the critical characteristics and
process used to create the characteristics
Develop the control plan relating critical control to critical processes
Phase-IV
Production planning
Tabulate operating instructions from process requirement
Develop prototype and do testing
Launch the final product to the market.
There are many benefits to be realized by using Quality Function
Deployment (QFD), including the following:
Customer driven:
The focus is on customers wants, not what the company thinks
the customer wants. The "Voice of the Customer" drives the
development process.
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Competitive analysis:
Other products in the marketplace are examined, and the
company product is rated against the competition.
Reduced development time:
The likelihood of design changes is reduced as the QFD process
focuses on improvements to be made to satisfy key customer
requirements. Careful attention to customer requirements reduces
the risk that changes will be required late in the project life cycle.
Time is not spent developing insignificant functions and features.
Reduced development costs:
The identification of required changes occurs early in the project
life cycle. Minimizing changes following production reduces warranty
costs and product support costs.
Documentation:
A knowledge base is built as the QFD process is implemented.
A historical record of the decision-making process is developed
BENEFITS OF QFD
Promotes better understanding of customer demands
Improve customer satisfaction
Promotes team work
Facilitates better understanding of design interactions
Concentrates on design efforts
Introduce new design to the market faster.
Breaks down barriers between functions and departments
HOUSE OF QUALITY ( Tools of QFD)
House of Quality is a graphic tool for defining the relationship between
customer desires and the firm/product capabilities. It is a part of the
Quality Function Deployment (QFD) and it utilizes a planning matrix to
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relate what the customer wants to how a firm (that produce the products) is
going to meet those wants. It looks like a House with a "correlation matrix"
as its roof, customer wants versus product features as the main part,
competitor evaluation as the porch etc. It is based on "the belief that
products should be designed to reflect customers' desires and tastes"[1]. It
also is reported to increase cross functional integration within organizations
using it, especially between marketing, engineering and manufacturing.
The primary planning tool used in the QFD is the ―HOUSE OF
QUALITY”
The House OF Quality converts the voice of the customer into product
design characteristics
QFD uses a series of matrix diagrams also called ‗ QUALITY TABLES‟
that resemble connected houses.
Basic structure of House of Quality
V Interrelationship
between technical
descriptors
III
Technical descriptions
(Voice of the organization)
IV
Relationship between requirements and
descriptions
II
Pri
ori
tize
d
cust
om
er
requir
emen
ts
I
Cust
om
er
req
uir
emen
ts
(voic
e of
the
cust
om
er)
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The house of quality has six sections
Section –I
Customer Requirements
The exterior walls of the house are the customer requirements
On the left hand side, the voice of the customer i.e, what the customer
expect from the product is listed.
Section – II
Prioritized Customer Requirements
On the right hand side, the prioritized customer requirements or
planning matrix are listed
Some of the listed items include customer bench marking, customer
importance rating, target value, scale up factor and sales point.
Section –III
Technical Descriptors
The second floor, or ceiling of the house contains the technical
descriptors
Product design characteristics, expressed in engineering terms, are
located in this ceiling
Section – IV
Relationship Matrix
The interior walls of the house are the relationship between customer
requirements and technical descriptors.
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The relationship matrix correlates customer requirements with
product characteristics
Section – V
Trade –Off Matrix
The root of the house is the interrelationship between technical
descriptors.
Trade –off between similar and /or conflicting technical descriptors
are identified.
Section – VI
Prioritized Technical Descriptors
The foundation of the house is the prioritized technical descriptors
Some of the items included are the technical benchmarking, degree of
technical difficulty, and target value.
TAGUCHI‟S QUALITY LOSS FUNCTION
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Taguchi‘s methods are statistical methods developed largely by Genichi
Taguchi to improve the quality of manufactured goods
Definition
Simply put, the Taguchi loss function is a way to show how each non-perfect part
produced, results in a loss for the company. Deming states that it shows
"a minimal loss at the nominal value, and an ever-increasing loss with departure
either way from the nominal value." - W. Edwards Deming
The quality loss function is based on the work of electrical engineer, Genichi
Taguchi. This view disagrees with the traditional (goalpost) view. The quality
loss function recognizes that products falling between specific limits are not
all equal. The four following statements summarize Taguchi‘s philosophy.
1. We cannot reduce cost without affecting quality.
2. We can improve quality without increasing cost.
3. We can reduce cost by improving quality.
4. We can reduce cost by reducing variation. When we do so,
performance and quality will automatically improve.
Taguchi defines Quality as “the loss imparted by the product to
society from the time the product is shipped.”
LOSS = Cost to operate, Failure to function, maintenance and
repair cost, customer satisfaction, poor design.
Product to be produced “being within specification”
Taguchi‟s Vs Traditional Approach
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Taguchi‟s Loss Function
Taguchi‘s defines quality as ―the loss imparted by the product to
society from the time the product is shipped‖
This loss includes costs to operate, failure to function, maintenance
and repair costs, customer dissatisfaction, injuries caused by poor
design and similar costs.
Defective products/ parts that are detected, repaired reworked, or
scrapped before shipment are not considered part of this loss
The essence of the loss function is that whenever a product deviates
from its target performance, it generates a loss to society. This loss is
minimum when performance is right on target, but it grows gradually
as one deviates from the target.
Therefore the loss function philosophy says that for a manufacturer,
the best strategy is to produce as close to the target as possible,
rather than aiming at ― being with in specifications‖
Taguchi‟s Quadratic Quality Loss Function
Quality Loss Occurs when a product‟s deviates from target or
nominal value.
Deviation Grows, then Loss increases.
Taguchi‟s U-shaped loss Function Curve
Taguchi‟s Traditional
When a product moves
from its Target will cause
the loss even if the
product lies or not within
Limits
There is Good or Bad Products only as
per Limits
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Taguchi‟s U-shaped loss Function Curve
Formula to find Taguchi‟s Loss Fn
Taguchi uses Quadratic Equation to determine loss Curve
L (x) = k (x-N)²
Where L (x) = Loss Function,
k = C/d² = Constant of proportionality,
where C – Loss associated with sp limit
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d - Deviation of specification from target value
x = Quality Features of selected product,
N = Nominal Value of the product and
(x-N) = Tolerance
Problem
A part dimension on a power tool is specified as 32.25±0.25.Company records
show±0.25 exceeded & 75% of the returned fo replacement. Cost of replacement is
Rs.12,500.Determine k & QLF
A part dimension on a power tool is specified as 32.25±0.25.Company records
show±0.25 exceeded & 75% of the returned fo replacement. Cost of replacement is
Rs.12,500.Determine k & QLF
MAINTENANCE
Maintenance is defined as the management, control, and
execution and quality assurance of activities, which ensure the achievement
of optimum availability and performance of a plant in order to meet business
objectives.
Types of Maintenance
Corrective or breakdown maintenance
It implies that repairs are made after failure of machine or
equipment.
Scheduled or routine breakdown
It is a stitch-in-time procedure aimed to avoiding breakdowns
Preventive maintenance
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It is carried out before the failure arises (or) prior to the
equipment actually breakdowns. E.g. Overhauling & Periodic
upkeep.
Predictive maintenance
Equipment Condition evaluated periodically and maintenance
carried out.
TOTAL PRODUCTIVE MAINTENANCE
TPM is a partnership between the maintenance and
production organization to improve product quality, reduce waste,
reduce cost, increase equipment availability and improve maintenance
state.
Total productive maintenance (TPM) is the systematic execution of
maintenance by all employees through small group activities
The dual goals of TPM are zero breakdowns and zero defects.
TPM improves equipment efficiency rates and reduces cost. It also
minimizes inventory costs associated with spare parts.
TPM is concerned with the fundamental rethink of business processes to
achieve improvements in cost, quality, speed etc.
OBJECTIVES OF TPM
1. To improve equipment effectiveness.
2. To achieve autonomous maintenance
3. To plan maintenance
4. To train all staff in relevant maintenance skills
5. To Zero Breakdowns
WHAT ARE THE 6 BIG LOSSES?
1. Breakdown - Long interruptions, expensive repairs
2. Setup and changeover - Taking much longer that needed
3. Idling and minor stoppages - Hard to quantify, add up to big losses
4. Reduced speed -Equipment cycle times have gradually
deteriorated
5. Defects and rework - Quality losses and unhappy customers
6. Start up losses - Too long to get to steady state after a
Change.
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CONCEPT OF TPM
TPM is that everyone from the operator to top management is responsible for
maintenance activities
Under TPM operators no longer limit themselves to simply using the
machine and calling the technician when a breakdown occurs. Operators
can inspect , clean, lubricate, adjust and even perform simple calibrations
on their respective equipment.
In TPM s management should also show interest in data concerning
equipment uptime, utilization and efficiency.
Everyone understands that zero breakdowns, zero defects and maximum
productivity are goals to be shared by everyone under TPM
TPM cannot implement overnight. Normally it takes an organization at least
two years to set and effective TPM system in place.
Activities carried out in small teams with specific tasks. Every level in the
overall organizations must be represented by a team or more
TWELVE STEPS FOR TPM DEVELOPMENT
1. Announce top management about the decision to introduce TPM
2. Launch education and campaign to introduce TPM
3. Create organization to promote teams
4. Establish basic TPM policies and goals
5. Formulate basic TPM policies and goals
6. Hold TPM kick off
7. Improve effectiveness of each piece of equipment
8. Develop an autonomous maintenance programme
9. Develop a scheduled maintenance program for the maintenance
department.
10. Conduct training to improve operation and maintenance skills
11. Develop early equipment management program
12. Perfect TPM implementation
BENEFITS OF TPM
Increased equipment productivity
Improved equipment reliability
Reduced equipment downtime
Increased plant capacity
Extended machine line.
Lower maintenance and production costs
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Approaching zero equipment – caused defects
Improved teamwork between operators and maintenance people.
Enhanced job satisfaction
Improved return on investment
Improved safety
QUALITY COSTS
1. PREVENTION COST
Marketing / Customer / User.
Product / Service / Design Development.
Purchasing
Operations (Manufacturing or Service)
Quality Administration.
2. APPRAISAL COST
Purchasing Appraisal Costs.
Operations Appraisal Costs
External Appraisal Costs
Review of Test and Inspection Data
Miscellaneous Quality Evaluations
3. INTERNAL FAILURE COST
Product or Service Design Failure Costs (Internal)
Purchasing Failure Costs
Operations (Product or Service) Failure Costs
4. EXTERNAL FAILURE COST
Complaint Investigations of Customer or User Service
Returned Goods
Retrofit and Recall Costs
Warranty Claims
Liability Costs
Penalties
Customer or User Goodwill
Lost Sales
QUALITY PLANNING
Planning in the field of quality control must be geared fundamentally for
delivering satisfactory product quality to the customer at minimum cost. These
objectives are realized only by carefully planning the necessary quality procedures
which establish the required operational detail.
Establishing quality goals
Identify the customers
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Determine the customer‘s needs Develop product features which response to the customers needs Develop processes that are able to produce the product features Establish quality controls Transfer the plans to the operating forces
QUALITY COSTS
The cost of poor quality can add to the other costs used in decision making,
such as maintenance, production, design, inspection, sales and other activities.
This costs is no different than other costs. It can be programmed, budgeted,
measured and analyzed to help in attaining the objectives for better quality and
customer satisfaction at less cost. A reduction in these costs (quality costs) will
lead to increased profit.
Prevention Cost
Cost incurred to avoid or minimize the failures
The various elements of prevention cost are given below.
1. Marketing / Customer / User cost.
2. Product/ service / Design Development cost.
3. Purchasing cost
4. Operations costs ( manufacturing or service)
5. Quality administration costs.
Appraisal costs
Costs involved in determining the degree of conformance
to the quality requirements
These are the costs incurred by the organization for inspection and testing of
the product in production process itself. In its widest sense, this cost includes all
the checks done by people who are not titled inspectors. For example machinists,
tools setters, supervisors etc routinely inspect the production process to ensure
quality and this is the appraisal cost.
1. Purchasing appraisal cost
2. Operations (manufacturing or service) appraisal costs.
3. External appraisal costs.
4. Review of test and inspection data cost.
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5. Checking labour cost.
6. Setup for test or inspection.
7. Laboratory acceptance testing cost.
8. Test and inspection of purchased material cost.
9. Quality audit cost.
10. Outside endorsement.
11. Fields testing costs.
Internal failure costs
These are the costs incurred within the manufacturing
organization. Costs associated with defects found before the customer
receives the product or service. Typically these costs include scrap, rework
or corrective operations etc.
1. Product or service design failure cost – internal
2. Purchasing failure costs.
3. Operation (product or service) failure costs.
4. Scrap costs
5. Rework cost.
6. Factory contact engineering cost.
External failure costs
These are the costs incurred by the manufacturer after the
product has been delivered to the customer. For example, cost of products
or services rejected by the customer or recalled because of some defects
will fall under this category.
1. Returned goods costs.
2. Product recall costs.
3. Complaints in warranty costs.
4. Complaints out of warranty costs.
5. Product liability costs.
6. Product service cost.
7. Penalties.
8. Customer goodwill
9. Lost sales cost.
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PERFORMANCE MEASURES
Performance measures are used to assess the performance of all those involved in
the process. Measures play an important role in the success or failure of an
organization. An organization without performance measures is like a pilot of plane
trying to locate the position and moving forward without proper instruments.
Basic Concepts
Performance measures are used to carry out one or more of the following objectives. 1. Identifying the business trends
2. To identify the processes that requires improvement 3. Determine the profit and loss due to a process 4. To calculate the gap between the actual and desired performance. 5. To gather information for assessing the individuals and teams. 6. To aid the decision making process with correct data and information. 7. To assess the performance of the company. TYPICAL MEASUREMENTS
S: No Element Performance Measures
01 Human
Resources
Absenteeism, employee satisfaction, training cost and
time per employee, number of accidents due to an
employee, number of complaints about an employee,
number of suggestions received from each employee,
etc.
02 End User
Satisfaction
Number of complaints received and rectified,
time taken to solve the problems,
customer satisfaction index, etc.
03 Manufacturing
Process
Process capability of each machine, over the time ,
usage of SPC charts, machine downtime etc,
04 R&D Development time for a product development Process, number of constructive improvements made in an year by the department, expenditure, etc
05 Suppliers
Performance
Quality of delivered goods, promptness, service etc.,
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06 Marketing
Expenditure on training the sales force, new customers list, lost customers list, number of product enquiry calls per week and successful sales per week, etc,
07 Administration Profit per employee, number of errors made in the
business transactions per day etc.,
UNIT V QUALITY SYSTEMS
International Organization for Standardization (ISO) was established in 1946 in
Geneva, Switzerland.
International Organization for Standardization (ISO) define the term quality
systems as follows:
―The quality systems are the organizational structures, responsibilities, procedures,
processes and resources for implementing quality management.‖
ISO -9000 and ISO- 14000 The ISO 9000 family primarily concerned with ―quality Management‖. This means
what the organization does to fulfill.
- The customers quality requirements - Applicable regulatory requirements, while aiming to - Enhance customer satisfaction and - Achieve continual improvements of its performance in pursuit of these
objectives. The ISO 14000 family primarily concerned with ―environmental management‖. This
means what organization does to?
- Minimize harmful effects on the effect on the environment caused by it activities, and to
- Achieve continual improvement of its environmental performance.
Reasons for implementing a Quality System that conforms to an ISO standard
Improved employee involvement (average gain is 100%)
Improved housekeeping (average gain is 140%)
Improved decision making based on facts and data (average gain is (5%)
Improved customer satisfaction (average gain is 55%)
Improved safe working (gain is 45%)
Reduced customer complaints (about40%)
Reduced inspection efforts (about 45%)
Reduced quality cost (about 50%)
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SELECTION OF ISO STANDARDS:
An organization can use the decision tree for selection of ISO standards
ELEMENTS OF CLAUSES OF ISO 9000:
(QUALITY SYSTEM REQUIREMENTS):
The elements of ISO 9000 must be understood for their successful
implementation in an organization. The following are the twenty elements of quality
managements.
1. MANAGEMENT RESPONSIBILITY:
The management should define and documents its quality policy and objectives.
The responsibility, authority and interrelations of all employees should be clearly defined.
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The management should provide adequate resources for internal verification activities.
The management should nominate management representative such as quality director or quality manager to coordinate the quality activity.
The management must periodically review the effectiveness of the quality system and keep record of the same.
2. QUALITY SYSTEM:
The organization should document, establish and maintain a quality system.
The documentation of quality system includes preparation of quality manual, procedures, process work instructions, workmanship standards, drawing specifications and relevant quality records.
3. CONTRACT REVIEW:
This element states that the customer‘s requirements (the contract) should be formally reviewed to ensure that the supplier is capable in terms of both technical and organizational requirements.
The records of those reviews should be properly maintained.
4. DESIGN CONTROL:
This element requires that the design process should be documented and planned correctly.
Both the design inputs(like specifications) and the design outputs(like drawings) should be identified and documented.
The supplier shall review the designs to ensure that the outputs meet the input requirements and that any changes to the designs are properly controlled.
5. DOCUMENT CONTROL:
The ISO 9000 quality management system is totally documented system.
This element explains the method of documentation, approval and issue of all quality documents.
The various documents include quality manual, quality system procedures, work instructions quality plans and quality records.
6. PURCHASING:
This clause addresses relating to assessment of subcontractor, purchasing data, verification of purchased components, materials and procedures there of are specified.
The suppliers must have4 procedures for maintaining list of approved sub contractors, deleting sub contracting etc.
This clause on purchasing/sub-contracting is applicable to raw materials, purchased components, sub-contracted components which are likely to affect the product.
7. PURCHASER SUPPLIED PRODUCT:
(Control of customer supplied product)
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In many situations the customer supplies various products. For example, in construction work, the customer may supply cement and steel. This clause explains how a system has to be laid down for inspection, storage and usage of customer-supplied products.
This also lays down the responsibility for preventing damage or loss and the same to be recorded and reported to the customer.
8. PRODUCT IDENTIFICATION AND TRACEABILTY:
This clause lays down the requirement for the product or services to be correctly identified throughout the production process.
Trace ability means the method by which the item can be identified. 9. PROCESS CONTROL:
This clause specifies that the supplier shall identify and plan the production and installation processes, which directly affect the quality.
According to this clause, each process has to be performed under controlled conditions. Controlled conditions mean the following:
i. Quality system procedure (QSP) to describe how each process is carried out.
ii. Compliance with relevant codes/ standards and quality plans iii. Monitoring and control of specified process parameters and
product characteristics. iv. Approval of process a specified in quality system. v. Maintaining workmanship standards in terms of representative
samples, sketches, photographs, details write ups etc., vi. Continuous monitoring to ensure continuing process
capability. 10. INSPECTIONS AND TESTING
Receiving inspection and testing – to ensure the quality while at the time of receiving the products from purchaser.
In-process inspection and testing – to ensure the quality at the time of processing of the product/ services
Final inspection and testing – to ensure the quality at final stage (Finished product) of the product/ services.
11. INSPECTION, MEASURING AND TESTING EQUIPMENT (IMTE)
Identify the measurements to be made and the accuracy required.
Selecting appropriate inspection, measuring and test equipments
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Calibrating the measuring equipments and test devices.
Maintaining calibration records for inspection , measuring and test equipments.
12. INSPECTION AND TEST STATUS
This clause explains how the systems should be laid down to indicate that the product has been inspected and tested and conforms or does not conform to specifications at various stages or production.
13. CONTROL OF NON CONFORMING PRODUCTS
This clause lays down how action should be taken that does not conform to specifications.
This control includes identification, documentation, evaluation, segregation and disposal of non-conforming product.
This part of the standard is sometimes referred to as the calibration section.
14. CORRECTIVE AND PREVENTIVE ACTION
This clause explains the systems for removing actual and potential non-conformities.
Corrective action includes effective handling of customer complaints investigation of the cause of non-conformity and its removal.
Prevention action is taken to ensure that non-conformity does not occur. This is done by continuous study and analysis of various sources of information.
15. HANDLING, STORAGE, PACKING PRESERVATION AND DELIVERY
This clause explains how the supplier ensures that there is no degradation of quality of product due to handling, storage, preservation, and delivery at different stages of production.
16. CONTROL OF QUALTIY RECORDS.
The records of the performance of the quality system (contract review, sub contractor assessment, test records, calibration data etc.,) should be established and maintained.
These records are essential for assessment of the effectiveness of the quality system by the internal/ external certificiaiton audits and management reviews.
17. INTERNAL QUALITY AUDIT
This clause describes the self-evaluation mechanism. These are carried out by the suppliers own people trained for the purpose.
These audits are used to verify the effectiveness of the quality system.
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The audit result should be documented and reported to the concerned mangers to take any identified corrective action.
18. TRAINING
This clause describes how training needs of personnel are identified, organized, implemented and monitored.
Appropriate records of all training should be maintained.
Training pertains to professional training as well as training for maintenance and implementation of quality system.
19. SERVICING
This clause explains how servicing will be planned and executed wherever it is a specified requirement.
Record of service provided should.
20. STATISTICAL TECHNIQUES
This clause describes that the organization has to identify the most useful statistical techniques (such as pareto analysis, histograms, PERT, etc.,) for its operations.
IMPLEMENT OF QUALITY SYSTEMS (STEPS TO REGISTRATION)
1. Top management commitment. 2. Appoint the management representative 3. Awareness 4. Appoint an implementation team. 5. Training 6. Time schedule 7. Select element owners. 8. Review the present system 9. Write the documents 10. Install the new systems 11. Internal Audit
12. Management Review 13. Pre assessment 14. Registration 15. Award of ISO 9000 certificate.
DOCUMENTS TO BE PREPARED
1. Quality Policy Manual. 2. Quality System procedures (QSPs) 3. Work Instructions (Wis) 4. Records/ Formats/ Forms
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the above system documentation can be viewed as a hierarchy containing four
levels as shown in the below diagram.
WHY Define WHAT will be done
Stated once
Policy
WHO
Procedures WHEN
WHERE
HOW Work instructions
Or practices
Records or proof Evidence
1. QUALITY POLICY MANUAL
Quality policy manual is the first level of documentation.
This is the documentation that defines ―what will be done ― and ―Why‖.
The policy manual communicates the quality policy and objectives of an organization.
This manual is a living document. Because it reflects the current system being followed in the organization.
2. QUALITY SYSTEM PROCEDURES
These procedures describe the methods that will be used to implement and perform the stated polices.
These procedures define who should perform specific tasks, when the task should be done, and where documentation will be made.
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These procedures are confidential documents of the organization and therefore need not be revealed to outsiders.
3. WORK INSTRUCTONS
It gives details of flow individual work processes (for example, machining welding, casting etc.,) are carried out within a company.
It also specify how the work should be done; who should undertake the work and what records are to be maintained.
The work instructions should be written by the employee who performs the task.
Glossary of Total Quality Management Terms
BPM Stands for Business Process Management. BPM is a business improvement strategy based on
documenting, analyzing, and redesigning processes for greater performance.
DMAIC A Six Sigma quality improvement strategy described by five phases: Define, Measure, Analyze,
Improve, and Control. See also DMADV.
DMADV A Six Sigma strategy divided into five phases: Define, Measure, Analyze, Design, and Verify. See also
DMAIC.
ERP Stands for Enterprise Resource Planning. ERP refers to software packages that attempt to
consolidate all the information flowing through the company from finance to human resources. ERP
allows companies to standardize their data, streamline their analysis process, and manage long-term
business planning with greater ease.
IDEF
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Stands for ICAM Definition Method or Integration Definition Method. IDEF is a modeling
methodology developed by the U.S. Air Force to help programmers design complicated software
systems. IDEF can be divided into five separate modeling methods: 1.IDEF0 (Function Modeling)
2.IDEF1X (Data Modeling)
3. IDEF2 (Simulation Model Design)
4. IDEF3 (Process Description Capture)
5. IDEF4 (Object-Oriented Design).
ISO Series of standards and documented technical specifications used as guidelines to ensure that
products, processes, and services are manufactured consistently. European countries established the
ISO organization as a way to certify the quality control systems of companies across international
boundaries.
JIT Stands for Just in Time. Just in time is the cornerstone philosophy of Lean Manufacturing and MRP.
Using the just-in-time philosophy, raw materials arrive no earlier than they are required to reduce
costs and inefficiencies associated with large inventory.
Kaizen A Japanese quality improvement philosophy named after the phrase "continuous improvement."
Kaizen aims to create a quality-oriented culture that permeates all levels of the business from
manufacturing to management and aims to improve the organization in small increments from the
ground up.
Kaizen is the father of many quality improvement procedures including: suggestion systems,
automation, small group activities, Kanban, just-in-time, Zero defects, total productive maintenance,
total quality control, and more.
Lean Manufacturing
A quality methodology focused on eliminating all waste from the manufacturing process. Lean
manufacturing aims to cut down on processing times and inventory by reducing human involvement
and by streamlining the supply chain. See also Supply Chain Management.
MRP Stands for Material Requirements Planning. MRP aims to increase manufacturing efficiency by
managing the production schedule, reducing inventory, increasing cash flow, and delivering products
in a timely manner. ERP is a technical subset of MRP.
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QFD Stands for Quality Function Deployment. The goal of QFD is to prioritize and translate customer
needs into technical requirements for engineers, and deliver a quality product or service that aims to
satisfy the customer.
Six Sigma A statistically driven quality management methodology that aims to reduce defects and variation in
a business process. In fact, the goal of any Six Sigma initiative is to reduce to the number of defects
to 3.4 per one million opportunities thereby increasing customer satisfaction and business profits.
Six Sigma was first developed and implemented by Motorola in the 1980s. In 1996 GE announced it
saved $1 Billion by using the Six Sigma methodology. Now a lot of industry leaders have adopted the
Six Sigma methodology as their quality improvement method of choice.
Supply Chain Management
Managing the movement of goods from raw materials to the finished product delivered to
customers. Supply Chain Management aims to reduce operating costs, lead times, and inventory and
increase the speed of delivery, product availability, and customer satisfaction.
TQM Stands for Total Quality Management. It is a philosophy that embodies all processes and systems
that aim to improve efficiency and quality throughout the entire organization.
Zero Defects A practice that aims to reduce defects as a way to directly increase profits. The concept of zero
defects lead to the development of Six Sigma in the 1980s.
PART-A QUESTIONS WITH
ANSWERS
Unit I
1. Define Total Quality? TQM is an enhancement to the traditional way of doing business. It is the art of
managing the whole to achieve excellence. It is defined both a philosophy and a set
of guiding principles that represent the foundation of a continuously improving
organization
2. Define Quality? Quality = Performance x Expectations
3. What are the Dimensions of Quality? Performance
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Features
Conformance
Reliability
Durability
Service
Response
Aesthetics
Reputation.
4. Give the Basic Concepts of TQM? A committed and involved management to provide long- term top- to-
bottom organizational support. An unwavering focuses on the customer, both
internally and externally. Effective involvement and utilization of the entire work
force. Continuous improvement of the business and production process. Treating
suppliers as partners. Establish performance measures for the processes.
5. State Deming Philosophy? Create and publish the aims and purposes of the organization.
Learn the new philosophy.Understand the purpose of inspection.
Stop awarding business based on price alone. Improve constantly and forever the
system. Institute training. Teach and institute leadership. Drive out fear, Create trust
and Create a climate for innovation. Optimize the efforts of teams, groups and staff
areas. Eliminate exhortations for the work force. Eliminate numerical quotes for the work force.Eliminate management by objective. Remove barriers that rob people of
pride of workmanship. Encourage education and self- improvement for everyone.
Take action for accomplish the transformation.
6. Give the Principles of TQM? 1. Constancy of purpose: short range and long range objectives aligned
2. Identify the customer(s); Customer orientation 3. Identification of internal and external customers
4. Continuous improvement
5. Workflow as customer transactions
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6. Empower front- line worker as leader
7. Quality is everybody’s business
8. Customer orientation to child care services, a marketing perspective 9. Barriers that exist to a customer orientation
7. Give the Obstacles associated with TQM Implementation? I. Lack of management commitment Inability to change organizational culture
II. Improper planning Lack of continuous training and education III. Incompatible organizational structure and isolated individuals and
IV. departments Ineffective measurement techniques and lack of access to data
and
V. results. Paying inadequate attention to internal and external customers.
VI. Inadequate use of empowerment and teamwork.
8. Give the Analysis Techniques for Quality Costs? I. Trend Analysis
II. Pareto Analysis
9. Define Quality Costs? Quality Costs are defined as those costs associated with the nonachievement of
product or service quality as defined by the requirements established by the
organization and its contracts with customers and society.
10. Give the primary categories of Quality cost? I. Preventive cost category
II. Appraisal cost category
III. Internal failure cost category
IV. External failure cost category
11. Give the sub-elements of Preventive cost category? I. Marketing/Customer/User
II. Product/Service/Design development
III. Purchasing IV. Operations/
V. Quality Administration VI. Other Prevention Costs
12. Give the sub-elements of Appraisal cost category? I. Purchasing appraisal cost
II. Operations appraisal cost
III. External appraisal cost IV. Review of test and application data
V. Miscellaneous quality evaluations
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13. Give the sub-elements of Internal failure cost category? i. Product or Service Design costs (Internal)
ii. Purchasing failure costs
iii. Operations failure costs
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14. Give the sub-elements of External failure cost category? I. Complaint investigations of customer or user service
II. Returned goods
III. Retrofit and recall costs
IV. Warranty claims V. Liability costs
VI. Penalties VII. Customer or user goodwill
VIII. Lost sales
IX. Other external failure costs
15. Give the typical cost bases? I. Labor
II. Production
III. Unit IV. Sales
16. How will you determine the optimum cost? a. Make comparison with other organizations
b. Optimize the individual categories
c. Analyze the relationships among the cost categories
17. State the Quality Improvement Strategy? Reduce failure costs by problem solving Invest in the “right” prevention
activities
Reduce appraisal costs where appropriate and in a statistically sound manner
Continuously evaluate and redirect the prevention effort to gain further quality
improvement.
18. Define Quality Planning? A quality plan sets out the desired product qualities and how these are
assessed and define the most significant quality attributes. It should define the quality
assessment process. It should set out which organizational standards should be
applied and, if necessary, define new standards.
19. Give the Objectives of TQM? a. To develop a conceptual understanding of the basic principles and methods
associated with TQM;
b. To develop an understanding of how these principles and methods have
been put into effect in a variety of organizations;
c.To develop an understanding of the relationship between TQM principles and the
theories and models studied in traditional management;
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d. To do the right things, right the first time, every time.
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20. Give the Quality Hierarchy? 1. Inspection
2. Quality Control (QC) 3. Quality Assurance (QA)
4. Total Quality Management
Inspect products.
Detection
Finding &
Fixing Mistakes. 21. What is needed for a leader to be effective?
To be effective, a leader needs to know and understand the following: People, paradoxically, need security and independence at the same time. People are
sensitive to external rewards and punishments and yet are also strongly self-
motivated. People like to hear a kind word of praise People can process only a few
facts at a time; thus, a leader needs to keep things simple. People trust their gut
reaction more than statistical data People distrust a leader’s rhetoric if the words are
inconsistent with the leader’s actions.
22. What is the important role of senior management? Listening to internal and external customers and suppliers through visits,
focus groups and surveys. Communication. To drive fear out of the organization,
break down barriers, remove system roadblocks, anticipate and minimize resistance
to change and in general, change the culture.
23. What are the general duties of a quality council? i. Develop, with input from all personnel, the core values, vision statement,
mission statement, and quality policy statement. ii. Develop the strategic long-
term
plan with goals and the annual quality improvement program with objectives.
iii. Create the total education and training plan.
iv. Determine and continually monitor the cost of poor quality.
v. Determine the performance measures for the organization, approve those for
the functional areas, and monitor them.
vi. Continually, determine those projects that improve the processes, particularly
those that affect external and internal customer satisfaction.
vii. Establish multifunctional project and departmental or work group teams and
monitor their progress.
viii. Establish or revise the recognition and reward system to account for the new
way of doing business.
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24. What does a typical meeting agenda contain after establishing the TQM? Progress report on teams
Customer satisfaction report
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Progress on meeting goals
New project teams
Recognition dinner
Benchmarking report
Unit II
25. What are the various quality statements? Vision Statement
Mission Statement
Quality Policy Statement
26. Give the basic steps to strategic quality planning? I. Customer needs
II. Customer positioning
III. Predict the future IV. Gap analysis
V. Closing the gap VI. Alignment
VII. Implementation
27. What is a quality policy? The Quality Policy is a guide for everyone in the organization as to how they
should provide products and service to the customers. The common characteristics
are Quality is first among equals. Meet the needs of the internal and external
customers. Equal or exceed the competition. Continually improve the quality. Include business and production practices. Utilize the entire work force.
28. What is a mission statement? The mission statement answers the following questions: who we are, who are the
customers, what we do, and how we do it.
29. What is a vision statement? The vision statement is a declaration of what an organization should look like five to
ten years in a future.
30. What are the important factors that influenced purchases? I. Performance
II. Features
III. Service
IV. Warranty
V. Price
VI. Reputation
31. Give the need for a feedback in an organization? Discover customer dissatisfaction. Discover relative priorities of quality.
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Compare performance with the competition. Identify customer’s needs. Determine
opportunities for improvement.
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32. List the tools used for feedback? Comment cards
Surveys Focus groups
Toll- free telephone lines Customer visits
Report cards
The internet
Employee feedback
American Customer Satisfaction Index
33. What are the activities to be done using customer complaints? a. Investigate customer’s experience by actively soliciting feedback, both
positive and negative, and then acting on it promptly.
b. Develop procedures for complaint resolution that include empowering front-
line personnel.
c. Analyze complaints, but understand that complaints that do not always fit into
neat categories.
d. Work to identify process and material variations and then eliminate the root
cause. “More inspection” is not corrective action.
e. When a survey response is received, a senior manager should contact the
customer and strive to resolve the concern.
f. Establish customer satisfaction measures and constantly monitor them.
g. Communicate complaint information, as well as the results of all
investigations and solutions, to all people in the organization.
h. Provide a monthly complain report to the quality council for their evaluation
and, if needed, the assignment of process improvement teams.
i. Identify customer’s expectations beforehand rather than afterward through
complaint analysis.
34. What are the elements of customer service? a. Organization b. Customer care
c. Communication d. Front- line people
e. Leadership
35. Define customer retention? Customer retention represents the activities that produce the necessary
customer satisfaction that creates customer loyalty, which actually improves the
bottom line. It is the nexus between the customer satisfaction and the bottom line.
36. Define Employee Involvement? Employee involvement is a means to better meet the organization’s goals
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for quality and productivity at all levels of an organization.
37. State Maslow’s Hierarchy of Needs? Level 1 : Survival
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Level 2 : Security
Level 3 : Social
Level 4 : Esteem
Level 5 : Self-actualization
38. State Frederick Herzberg’s Two- factor theory? Herzberg found that people were motivated by recognition, responsibility,
achievement and the work itself.
39. What does an employee want? I. Interesting work
II. Appreciation
III. Involvement
IV. Job security
V. Good pay
VI. Promotion/growth
VII. Good working conditions
VIII. Loyalty to employees IX. Help with personal problems
X. Tactful discipline
41. Define Empowerment? Empowerment means invest people with authority. Its purpose is to tap the
Enormous reservoir of creativity and potential contribution that lies within every
worker at all levels. Empowerment is an environment in which people have the
ability, the confidence, and the commitment to take the responsibility and ownership to improve the process and to initiate the necessary steps to satisfy customer
requirements within well-defined boundaries in order to achieve organizational
values and goals.
42. What are the three conditions necessary to create the empowered
environment? i. Everyone must understand the need for change.
ii. The system needs to change for the new paradigm
iii.The organization must enable its employees.
43. What are the types of teams? i. Process improvement team
ii.Cross- functional team
iii. Natural work teams
iv.Self- directed/self- managed work teams
44. What are the characteristics of successful teams? a. Sponsor
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b. Team charter
c. Team composition
d. Training
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e. Ground rules
f. Clear objectives
g. Accountability
h. Well-defined decision procedures
i. Resources
j. Trust
k. Effective problem solving
l. Open communications
m. Appropriate leadership
n. Balanced participation
o. Cohesiveness
45. What are the decision- making methods? a) Nondecision
b) Unilateral decision
c) Handclasp decision
d) Minority- rule decision
e) Majority- rule decision
f) Consensus
46. What are the stages of team development? i. Forming
ii. Storming
iii. Norming
iv. Performing
v. Adjourning
47. Give some common team problems? d. Floundering e. Overbearing participants
f. Dominating participants
a. Reluctant participants
b. Unquestioned acceptance of opinions as facts c. Rush to accomplish
d. Attribution
e. Discounts and “plops” f. Wanderlust : digression and tangents
g. Feuding team members
48. What are the common barriers to team progress?
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i. Insufficient training ii. Incompatible rewards and compensation iii. First- line supervisor resistance
iv. Lack of planning
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v. Lack of management support
vi. Access to information systems
vii. Lack of union support
49. Give the steps involved in training process? 1st. Make everyone aware of what the training is all about.
2nd. Get acceptance.
3rd. Adapt the program. 4th. Adapt to what has been agreed upon.
50. Define Recognition and Reward? Recognition is a form of employee motivation in which the organization
publicly acknowledges the positive contributions an individual or team has made to
the success of the organization. Reward is something tangible to promote desirable
behavior. Recognition and reward go together to form a system for letting people
know they are valuable members of the organization.
51. What are the types of appraisal formats? i. Ranking
ii. Narrative
iii. Graphic
iv. Forced choice 52. What are the benefits of employee involvement?
Employee Involvement improves quality and increases productivity because
Employees make better decisions using their expert knowledge of the
process.
Employees are more likely to implement and support decisions they had a part
in making.
Employees are better able to spot and pinpoint areas for improvement.
Employees are better able to take immediate corrective action. Employee involvement reduces labor/management hassle by more effective
Communications and cooperation.
Employee involvement increases morale by creating a feeling of belonging to
the organization.
Employees are better able to accept change because they control the work
Environment.
Employees have an increased commitment to unit goals because they are
involved.
53. What are the basic ways for a continuous process improvement? Reduce resources
Reduce errors Meet or exceed expectations of downstream customers
Make the process safer
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Make the process more satisfying to the person doing it.
54. What are the three components of the Juran Trilogy? Planning
Control Improvement
55. What are the steps in the PDSA cycle? The basic Plan-Do-Study-Act is an effective improvement technique.
I. Plan carefully what is to be done
II. Carry out the plan
III. Study the results IV. Act on the results by identifying what worked as planned and what
didn’t.
56. What are the phases of a Continuous Process Improvement Cycle? a) Identify the opportunity
b) Analyze the process c) Develop the optimal solutions
d) Implement
e) Study the results
f) Standardize the solution
g) Plan for the future
57. Define 5S? 5S Philosophy focuses on effective work place organization and standardized work
procedures. 5S simplifies your work environment, reduceswaste and non- value
activity while improving quality efficiency and safety. Sort – (Seiri) the first S
focuses on eliminating unnecessary items from the workplace.
Set In Order (Seiton) is the second of the 5Ss and focuses on efficient and effective
storage methods. Shine: (Seiso) Once you have eliminated the clutter and junk that
has been clogging your work areas and identified and located the necessary items, the
next step is to thoroughly clean the work area. Standardize: (Seiketsu) Once the
first three 5S’s have been implemented, you should concentrate on standardizing best
practice in your work area. Sustain: (Shitsuke) This is by far the most difficult S to
implement and achieve. Once fully implemented, the 5S process can increase
morale, create positive impressions on customers, and increase efficiency and
organization.
58. What is a Kaizen? Kaizen is a Japanese word for the philosophy that defines management’s
role in continuously encouraging and implementing small improvements involving
everyone. It is the process of continuous improvement in small increments that make
the process more efficient, effective, under control and adaptable.
64. What are the characteristics used to measure the performance of a
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i. Long-term commitment
ii. Trust
iii. Shared vision
60. What are the three types of sourcing? a) Sole sourcing
b) Multiple sourcing
c) Single sourcing
61. What are the ten conditions for the selection and evaluation of suppliers? I. The supplier understands and appreciates the management philosophy of the
organization.
II. The supplier has a stable management system.
III. The supplier maintains high technical standards and has the capability of
dealing with future technological innovations.
IV. The supplier can supply precisely those raw materials and parts required by
the purchaser, and those supplied meet the quality specifications.
V. The supplier has the capability to produce the amount of production needed or
can attain that capability.
VI. There is no danger of the supplier breaching corporate secrets.
VII. The price is right and the delivery dates can be met. In addition, the supplier is
easily accessible in terms of transportation and communication.
VIII. The supplier is sincere in implementing the contract provisions.
IX. The supplier has an effective quality system and improvement program such
as ISO/QS 9000.
X. The supplier has a track record of customer satisfaction and organization Credibility.
62. What are the four phases of inspection?
i. 100% inspection
ii. Sampling
iii. Audit iv. Identity check
63. What are the objectives of Performance measures?
i. Establish baseline measures and reveal trends.
ii. Determine which processes need to be improved. iii.
Indicate process gains and losses.
iv. Compare goals with actual performance.
v. Provide information for individual and team evaluation. vi.
Provide information to make informed decisions.
vii. Determine the overall performance of the organization.
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particular process?
i. Quantity
ii. Cost iii.
Time
iv. Accuracy v.
Function vi.
Service
vii. Aesthetics 65. Give the six basic techniques for presenting performance measures?
a) Time series graph
b) Control chart
c) Capability index
d) Taguchi’s Loss Function
e) Cost of poor quality
f) Malcolm Baldrige National Quality Award
Unit III 66. Give the seven tools of quality?
i. Pareto Diagram
ii. Process Flow Diagram
iii. Cause-and- Effect Diagram iv.
Check Sheets
v. Histogram
vi. Control Charts
vii. Scatter Diagrams 67. Define Statistics?
Statistics is defined as the science that deals with the collection,
tabulation,analysis, interpretation, and presentation of quantitative data. 68. What is a measure of central tendency?
A measure of central tendency of a distribution is a numerical value that
describes the central position of the data or how the data tend to build up in the center. 69. What is Measures of dispersion?
Measures of dispersion describe how the data are spread out or scattered on
each side of the central value. The measures of dispersion used are range and standard
deviation.
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70. What is a normal curve?
The normal curve is a symmetrical, unimodal, bell-shaped distribution withthe
mean, median and mode having the same value. 71. What is the use of the control chart?
The control chart is used to keep a continuing record of a particular quality
characteristic. It is a picture of process over time. 72. Give the objectives of the attribute charts?
i. Determine the average quality level.
ii. Bring to the attention of management any changes in the average. iii.
Improve the product quality.
iv. Evaluate the quality performance of operating and management personnel. v. Determine
acceptance criteria of a product before shipment to the customer. 73. Define Six Sigma Problem Solving Method?
Define - improvement opportunity with an emphasis on increasing customer
satisfaction.
Measure - determine process capability (Cp/ Cpk) & dpmo
Analyze - identify the vital few process input variables that affect key product
output variables (“Finding the knobs”).
Improve - Make changes to process settings, redesign processes, etc. to reduce the
number of defects of key output variables.
Control - Implement process control plans, install real- time process
monitoring tools,standardize processes to maintain levels. 74. What are the new seven management tools?
i. Affinity Diagram
ii. Interrelationship Digraph iii.
Tree Diagram
iv. Matrix Diagram
v. Prioritization Matrices
vi. Process Decision Program Chart vii.
Activity Network diagram
Unit IV 75. Define Benchmarking?
Benchmarking is a systematic method by which organizations can measure
themselves against the best industry practices. The essence of benchmarking is the process
of borrowing ideas and adapting them to gain competitive advantage. It is a tool for
continuous improvement.
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76. Enumerate the steps to benchmark?
a) Decide what to benchmark
b) Understand current performance c)
Plan
d) Study others
e) Learn from the data f)
Use the findings
77. What are the types of benchmarking?
i. Internal
ii. Competitive
iii. Process
78. What is a QFD?
Quality Function Deployment is a planning tool used to fulfill
customer expectations. It is a disciplined approach to product design, engineering,
and production and provides in- depth evaluation of a product.
79. What are the benefits of QFD?
i. Customer driven
ii. Reduces implementation time iii.
Promotes teamwork
iv. Provides documentation
80. What are the steps required to construct an affinity diagram?
i. Phrase the objective
ii. Record all responses iii.
Group the responses
iv. Organize groups in an affinity diagram
81. What are the parts of house of quality?
i. Customer requirements
ii. Prioritized customer requirements iii.
Technical descriptors
iv. Prioritized technical descriptors
v. Relationship between requirements and descriptors vi.
Interrelationship between technical descriptors
82. How will you build a house of quality?
a) List customer requirements
b) List technical descriptors
c) Develop a relationship matrix between WHATs and HOWs\
d) Develop an interrelationship matrix between HOWs e)
Competitive assessments
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f) Develop prioritized customer requirements g)
Develop prioritized technical descriptors
83. Define FMEA?
Failure Mode Effect Analysis is an analytical technique that combines the
technology and experience of people in identifying foreseeable failure modes of a product
or process and planning for its elimination.
84. What are the stages of FMEA?
1. Specifying possibilities
a. Functions
b. Possible failure modes
c. Root causes
d. Effects e Detection/Prevention
2. Quantifying risk
a. Probability of cause
b. Severity of effect
. Effectiveness of control to prevent cause
d. Risk priority number
3. Correcting high risk causes
a. Prioritizing work
b. Detailed action c. Assigning action responsibility
d. Check points on completion
4. Revaluation of risk
85. What are the goals of TPM?
The overall goals of Total Productive Maintenance, which is an
extension of TQM are
i. Maintaining and improving equipment capacity
ii. Maintaining equipment for life
iii. Using support from all areas of the operation
iv. Encouraging input from all employees
v. Using teams for continuous improvement
86. Give the seven basic steps to get an organization started toward TPM? a) Management learns the new philosophy b) Management promotes the new philosophy c) Training is funded and developed for everyone in the organization
d) Areas of needed improvement are identified
e) Performance goals are formulated
f) An implementation plan is developed
g) Autonomous work groups are established
87. What are the major loss areas? i. Planned downtime ii. Unplanned downtime iii. Idling and minor stoppages
iv. Slow-downs
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v. Process nonconformities
vi. Scrap
Unit V
88. Give the ISO 9000 Series of Standards? i. ISO 9000, “Quality Management and Quality Assurance Standards Guidelines for Selection and Use”.
ii. ISO 9001, “Quality Systems – Model for Quality Assurance in Design,
Development, Production, Installation & Servicing”.
iii. ISO 9002, “Quality Systems – “Model for Quality Assurance in Production,
Installation & Servicing”.
iv. ISO 9003, “Quality Systems – “Model for Quality Assurance in Final Inspection and Test”.
v. ISO 9004-1, “Quality Management and Quality System Elements –
Guidelines”.
89. What is the need for ISO 9000?
ISO 9000 is needed to unify the quality terms and definitions used by
industrialized nations and use terms to demonstrate a supplier’s capability of controlling its processes.
90. Give some other quality systems?
i. QS-9000
ii. TE-9000
iii. AS9000
91. Enumerate the steps necessary to implement the Quality Management System? i. Senior management commitment ii. Appoint the management representative iii. Awareness
iv. Appoint an implementation team
v. Training
vi. Time schedule
vii. Select element owners
viii. Review the present system
ix. Write the documents
x. Install the new system
xi. Internal audit
xii. Management review
xiii. Preassessment
xiv. Registration
92. What are the three sections of QS-9000?
i. Common requirements, which include the exact text of ISO 9001 and the addition of automotive/heavy trucking requirements.
ii. Additional requirements covering production part approval process, continuous
improvement and manufacturing capabilities.
iii. Customer-specific requirements.
93. What are the ISO/QS 9000 elements? i. Management responsibility
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ii.The Quality system
iii. Contract review
iv. Design control
v.Document and data control
vi. Purchasing
vii.Control of customer-supplied product
viii. Product identification and traceability
ix. Process control
x.Inspection and testing
xi. Control of inspection, measuring and test equipment
xii.Inspection and test status
iii. Control of nonconforming product
xiv. Corrective and preventive action
xv.Handling, storage, packaging, preservation and delivery
xvi. Control of quality records
xvii.Internal quality audits
xviii. Training
xix. Servicing
xx.Statistical techniques
94. Give the objectives of the internal audit?
a) Determine the actual performance conforms to the documented quality systems.
b) Initiate corrective action activities in response to deficiencies.
c) Follow up on noncompliance items of previous audits.
d) Provide continued improvement in the system through feedback to
management.
e) Cause the auditee to think about the process, thereby creating possible
improvements.
95. What are the requirements of ISO 14001?
i. General requirements ii. Environmental policy
iii. Planning iv. Implementation and operation
v. Checking and corrective action
vi. Management review
96. What are the benefits of ISO 14000? a. Global i. Facilitate trade and remove trade barriers ii. Improve environmental performance of planet earth
iii. Build consensus that there is a need for environment management and a
common terminology for EMS.
b. Organizational
i. Assuring customers of a commitment to environmental
management
ii. Meeting customer requirements
iii. Maintaining a good public / community relations image
iv. Satisfying investor criteria and improving access to capital
v. Obtaining insurance at reasonable cost
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vi. Increasing market share that results from a competitive advantage
vii. Reducing incidents that result in liability
viii. Improving defense posture in litigation
ix. Conserving input materials and energy
x. Facilitating the attainment of permits and authorization
xi. Improving industry/government relations
97. What are the four elements for the checking &
corrective action of ISO 14001? a) Monitoring and measuring b) Nonconformance and corrective and preventative action c) Records
d) EMS audit
98. What are the seven elements for the implementation & operations of ISO 14001? a) Structure and responsibility b) Training, awareness and competency c) Communication
d) EMS documentation
e) Documentation control
f) Operational control
g) Emergency preparedness and response
99. What are the four elements for the planning of ISO 14001? a) Environmental aspects b) Legal and other requirements c) Objectives and targets
d) Environmental Management Programs
100. Give the types of Organizational Evaluation Standards?
i. Environmental Management System
ii. Environmental Auditing
iii. Environmental Performance Evaluation
101. Give the types of Product Evaluation Standards?
i. Environmental Aspects in Product Standards
ii. Environmental Labeling
iii. Life-Cycle Assessment
104. Define Quality Audits? Quality Audits examine the elements of a quality management system in order to
evaluate how well these elements comply with quality system requirements.
105. Analyze TQM? Total Made up of the whole. Quality Degree of excellence a product or service provides.
Management Act, art or manner of handling, controlling,
directing etc.
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106. Give the usage of an effective recognition and reward system? -Serves as a continual reminder that the organization regards quality and
productivity as important.
-Offers the organization a visible technique to thank high achievers for outstanding
performance.
-Provides employees a specific goal to work toward. It motivates them to improve
the process.
-Boosts morale in the work environment by creating a healthy sense of competition
among individuals and teams seeking recognition.
107. How will you improve the performance appraisal system? Use rating scales that have few rating categories. Require work team or group evaluations that are at least equal in emphasis to individual-focused evaluations.
Require more frequent performance reviews where such reviews will have a
dominant emphasis on future planning.
Promotion decisions should be made by an independent administrative
process that draws on current-job information and potential for the new
job.
Include indexes of external customer satisfaction in the appraisal process. o
Use peer and subordinate feedback as an index of internal customer
satisfaction.
Include evaluation for process improvement in addition to results.
108. What are the typical measurements frequently asked by managers and teams? Human Resource Customers Production
Research & Development
Suppliers
Marketing/Sales
Administration
109. What are the criteria to evaluate the performance measures? -Simple - Few in number - Developed by users
- Relevance to customer
-Improvement
- Cost
- Visible
- Timely
- Aligned
-Results
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110. Give the usage of C&E diagrams? -Analyze actual conditions for the purpose of product or service quality
improvement, more efficient use of resources, and reduced costs.
-Eliminate conditions causing nonconformities and customer complaints. -Standardize existing and proposed operations.
-Educate and train personnel in decision-making and corrective-action
activities.
111. Define Six Sigma?
Six-Sigma is a business process that allows organizations to drastically improve
their bottom line by designing and monitoring every day business activities in ways that
minimize waste and resources while increasing customer satisfaction. It is achieved
through continuous process measurement, analysis & improvement.
112. What are the various histogram shapes? -Symmetrical -Skewed right -Skewed left
-Peaked
-Flat
-Bimodal
-Plateau distribution
-Comb distribution
-Double peaked distribution
113. Differentiate Population & Sample?
Population represents the mathematical world and Sample represents the real
world. A population frequency distribution is represented by a smooth curve whereas a
sample frequency distribution is represented by a histogram.
114. Give the sources of variation?
ï Equipment ï Material
ï Environment
ï Operator
115. Define Run chart?
A run chart is a very simple technique for analyzing the process in the development stage or, for that matter, when other charting techniques are not applicable.
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16 Mark Questions
Unit-I 1. Explain the Dimensions of Quality?
- Performance - Features - Conformance
- Reliability
- Durability
- Service
- Response
- Aesthetics
- Reputation
2. Explain Deming Philosophy?
-Create and publish the aims and purposes of the organization. -Learn the new philosophy. -Understand the purpose of inspection.
-Stop awarding business based on price alone.
-Improve constantly and forever the system.
-Institute training.
-Teach and institute leadership. -Drive out fear, Create trust and Create a climate for innovation.
-Optimize the efforts of teams, groups and staff areas.
-Eliminate exhortations for the work force.
-Eliminate numerical quotes for the work force.
-Eliminate management by objective.
-Remove barriers that rob people of pride of workmanship.
3. Explain the Analysis Techniques for Quality Costs?
i. Trend Analysis
ii. Pareto Analysis
4. Describe the primary categories of Quality cost?
i. Preventive cost category
ii. Appraisal cost category
iii. Internal failure cost category
iv. External failure cost category
5. Explain the important role of senior management?
-Listening to internal and external customers and suppliers through visits,
focus groups and surveys.
-Communication. -To drive fear out of the organization, break down barriers, remove system
roadblocks, anticipate and minimize resistance to change and in general,
change the culture.
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6. Explain the various quality statements? Vision Statement Mission Statement Quality Policy Statement
7. Discuss the basic steps to strategic quality planning? i. Customer needs ii. Customer positioning iii. Predict the future
iv. Gap analysis
v. Closing the gap
vi. Alignment
vii. Implementation
8. Explain the elements of customer service?
" Organization " Customer care " Communication
" Front-line people
Unit II
9.Explain Maslow’s Hierarchy of Needs?
Level 1 : Survival Level 2 : Security Level 3 : Social
Level 4 : Esteem
Level 5 : Self-actualization
10. Explain the types of teams?
i. Process improvement team
ii. Cross-functional team
iii. Natural work teams iv. Self-directed/self-managed work teams
11. Explain the characteristics of successful teams?
a. Sponsor b. Team charter c. Team composition
d. Training
e. Ground rules
f. Clear objectives
g. Accountability
h. Well-defined decision procedures
i. Resources
j. Trust
k. Effective problem solving
l. Open communications
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m. Appropriate leadership
n. Balanced participation o.
Cohesiveness
12. Explain the stages of team development?
i. Forming ii.
Storming
iii. Norming iv.
Performing v.
Adjourning
13. Explain the three components of the Juran Trilogy?
i. Planning
ii. Control
iii. Improvement
14 .Explain the steps in the PDSA cycle?
The basic Plan-Do-Study-Act is an effective improvement technique.
1st. Plan carefully what is to be done
2nd. Carry out the plan
3rd. Study the results
4th. Act on the results by identifying what worked as planned and what
didn’t.
15. Explain the phases of a Continuous Process Improvement Cycle?
a) Identify the opportunity
b) Analyze the process
c) Develop the optimal solutions
d) Implement
e) Study the results f) Standardize the solution
16. Explain 5S?
Sort – (Seiri)
Set In Order (Seiton)
Shine: (Seiso)
Standardize: (Seiketsu)
Sustain: (Shitsuke)
17. Explain the three types of sourcing? a) Sole sourcing b) Multiple sourcing
c) Single sourcing
UNIT III
18. Discuss the seven tools of quality?
i. Pareto Diagram
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ii. Process Flow Diagram iii. Cause-and-Effect Diagram
iv. Check Sheets
v. Histogram
vi. Control Charts
vii. Scatter Diagrams
19. Explain the Six Sigma Problem Solving Method?
a. Define b.Measure
c.Analyze
d.Improve
e.Control
20. What are the new seven management tools? i. Affinity Diagram ii. Interrelationship Digraph
iii. Tree Diagram
iv. Matrix Diagram
v. Prioritization Matrices vi. Process Decision Program Chart
vii. Activity Network diagram
21. What are the characteristics of successful teams? a. Sponsor
b. Team charter
c. Team composition
d. Training
e. Ground rules f. Clear objectives
g. Accountability
h. Well-defined decision procedures
i. Resources
j. Trust
k. Effective problem solving
l. Open communications
m. Appropriate leadership
n. Balanced participation
o. Cohesiveness
UNIT IV
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22. Explain the steps to benchmark? a) Decide what to benchmark b) Understand current performance c) Plan
d) Study others
e) Learn from the data
f) Use the findings
23. Explain the types of benchmarking? i. Internal ii. Competitive iii. Process
24. Explain the parts of house of quality? i. Customer requirements ii. Prioritized customer requirements iii. Technical descriptors
iv. Prioritized technical descriptors
v. Relationship between requirements and descriptors
vi. Interrelationship between technical descriptors
25. Explain the stages of FMEA?
1. Specifying possibilities
a. Functions
b. Possible failure modes
c. Root causes
d. Effects e. Detection/Prevention
2. Quantifying risk
a. Probability of cause
b. Severity of effect
26. How will you build a house of quality? a) List customer requirements
b) List technical descriptors
c) Develop a relationship matrix between WHATs and HOWs\
d) Develop an interrelationship matrix between HOWs
e) Competitive assessments
f) Develop prioritized customer requirements
g) Develop prioritized technical descriptors
UNIT V
27. Explain the steps necessary to implement the Quality Management System? i. Senior management commitment
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ii. Appoint the management representative
iii. Awareness
iv. Appoint an implementation team
v. Training
vi. Time schedule
vii. Select element owners
viii. Review the present system
ix. Write the documents
x. Install the new
system
xi. Internal audit
xii. Management review
xiii. Reassessment
xiv. Registration
28. Explain the ISO/QS 9000 elements?
i. Management responsibility
ii.The Quality system
iii. Contract review iv.
Design control v.Document
and data control vi.
Purchasing
vii.Control of customer-supplied product
viii. Product identification and traceability
ix. Process control
x.Inspection and testing xi. Control of inspection, measuring and test equipment
xii.Inspection and test status.
29. Explain the benefits of ISO 14000? a. Global i. Facilitate trade and remove trade barriers ii. Improve environmental performance of planet earth
iii. Build consensus that there is a need for environment management and a
common terminology for EMS.
b. Organizational
i. Assuring customers of a commitment to environmental
management
ii. Meeting customer requirements
iii. Maintaining a good public / community relations image
iv. Satisfying investor criteria and improving access to capital
v. Obtaining insurance at reasonable cost
vi. Increasing market share that results from a competitive advantage
vii. Reducing incidents that result in liability
viii. Improving defense posture in litigation
ix. Conserving input materials and energy
x. Facilitating the attainment of permits and authorization
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xi. Improving industry/government relations.
30. Explain the seven elements for the implementation & operations of ISO 14001? a) Structure and responsibility b) Training, awareness and competency c) Communication
d) EMS documentation
e) Documentation control
f) Operational control
g) Emergency preparedness and response
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MANAGEMENT