UNIT IV: CONTINUOUS

IMPROVEMENT
By
N.GUNASEKARAN
 Topics
• Introduction
• Process
• Juran Trilogy
• PDSA cycle
• 5S/Kaizen
• Supplier partnership
• Performance measures
 Feedback

PROCESS
INPUT OUTPUT
People
Materials Product
Equipment
Money Service OUTCOME
Method
Information Information
Procedures
Data, etc Environme etc
nt

Conditions
 Ways To Improve
• Reduce Resources
• Reduce Errors
• Meet or Exceed Expectations of
downstream customers
• Make the Process Safer
• Make the Process More Satisfying to the
Person Doing It
 Joseph M. Juran’s Quality Trilogy

Quality Planning Quality Control Quality

Establish quality goals Prove the process can Improvement
produce under Seek to optimise the
Identify customer needs
operating conditions process via tools of
Translate needs into our diagnosis
Transfer process to
language
operation
Develop a product for
these needs
Optimise product
features for these needs
 Juran’s Trilogy Diagram

Quality Planning Quality control (during operations)

40 Quality
improve
Cost of New zone
-ment
Poor of quality
Original zone of control
Quality
20 quality control

0
0 TIME

Lessons learned
 Juran’s Quality Planning Road Map

1) Identify who are the customers

2) Determine the customer’s needs
3) Translate the needs into our language
4) Develop a product to meet those needs
5) Optimise a product so as to meets our needs
as well as the customer’s.
6) Develop a process which is able to produce the
product
7) Optimise the process
8) Prove the process can make the product
under operating conditions
 Joseph M.Juran and the Cost Of Quality

2 types of costs:
Unavoidable Costs: preventing defects (inspection,
sampling, sorting, QC)
Avoidable Costs: defects and product failures
(scrapped materials, labour for re-work, complaint
processing, losses from unhappy customers

“Gold in the Mine”

 Joseph M.Juran and the Cost Of Quality

Costs
Total Unavoidable
Costs costs

Avoidable
costs

100% defective Point of “Enough

quality”
 Joseph M. Juran’s 10 Points

1) Build awareness of the need and opportunity for

improvement.
2) Set goals for improvement.
3) Organise to reach the goals (establish a quality
council, identify problems, select projects, appoint
teams, designate facilitators)
4) Provide training.
5) Carry out projects to solve problems
 Joseph M. Juran’s 10 Points
6) Report progress.
7) Give recognition.
8) Communicate results.
9) Keep score.
10) Maintain momentum by making annual
improvement part of the regular systems and process
of the company.
 Improvement Strategies
Repair
Refinement
Renovation
Reinvention
 Types of Problems
Compliance
Unstructured
Efficiency
Process Design
Product Design
 Supplier Partnership
• Introduction
• Principles of customer/supplier
relationships
• Partnering
• Sourcing
• Supplier selection
• Supplier certification
• Supplier Rating
• Relationship Development
 Introduction
• Supplier quality affects the overall cost
of the product or service
• Customer satisfaction will improve if
the quality of the part/component
supplied meets the quality
requirements
• Market changed from lowest bidder to
the bidder who offered quality
• Introduction of concept of Just In Time
• Introduction of ISO 9000 requirements
 Principles of Customer/Supplier
Relations by Dr. Kaoru Ishikawa
• Both the customer and supplier are fully
responsible for the control of quality
• Both the customer and the supplier should be
independent of each other and respect each
other’s independence
• The customer is responsible for providing the
supplier with clear and sufficient
requirements so that the supplier can know
precisely what to produce
• Both the customer and the supplier should
enter into a non-adversarial contract with
respect to quality, quantity, price, delivery
method and terms of payments
 Principles of Customer/Supplier
Relations by Dr. Kaoru Ishikawa
• The supplier is responsible for providing the
quality that will satisfy the customer and
submitting necessary data upon the
customer’s request
• Both the customer and the supplier should
decide the method to evaluate the quality of
the product or service to the satisfaction of
both parties
• Both the customer and the supplier should
establish in the contract the method by which
they can reach an amicable settlement of any
disputes that may arise
 Principles of Customer/Supplier
Relations by Dr. Kaoru Ishikawa
• Both the customer and the supplier should
continually exchange information, sometimes
using multifunctional teams, in order to
improve the product or service quality
• Both the customer and the supplier should
perform business activities such as
procurement, production and inventory
planning, clerical work, and systems so that
an amicable and satisfactory relationship is
maintained
• When dealing with business transactions,
both the customer and the supplier should
always have the best interest of the end user
in mind
 Partnering
• Long-term Commitment
• Trust
• Shared Vision
 Sourcing
• Sole: It implies that the organization is forced
to use only one supplier due to patent,
technical specification, raw material location
and only one organization produces the item
• Multiple: It implies the use of two or more
suppliers for an item. Usually three suppliers
are chosen and their portion of the business
is a function of their performance in terms of
price, quality and delivery
• Single: Selecting one supplier from among
many available in the list of supplier. It
results in large, long term contracts and a
partnering relationship
 Supplier Selection
• Supplier selection starts after the decision on
whether to produce or outsource
• The supplier understands and appreciates the
management philosophy of the organization
• The supplier has stable management system
• The supplier maintains higher technical
standards and has the capability of dealing
with future technological innovations
• The supplier can provide those raw materials
and parts
• The supplier has the capability to produce the
quantity required
 Supplier Selection
• There is no danger of supplier breaching
corporate secrets
• The price is right and the supplier will meet
the delivery dates
• The supplier is sincere in implementing the
contract provisions
• The supplier has an effective quality system
and improvement program
• The supplier has a track record of customer
satisfaction and organization credibility
 Other Issues
• Supplier Certification
• Supplier Rating
• Relationship Development
Inspection
Training
Team Approach
Recognition
• Summary