Introduction to Total Quality

Management (TQM)
Introduction to Total Quality
Management (TQM)
01 Definition of Quality

02 Principles of TQM (Quality as a

Management Framework)

03 Dimensions of Quality

04 TQM Philosophies and

Frameworks
Quality is never an
accident. It is always
the result of
intelligent effort.
John Ruskin
Quality
Quality according to 86 firms
1. Perfection
2. Consistency
What is quality? 3. Eliminating waste
There is no universal 4. Speed of delivery
5. Compliance with policies and
definition. procedures
6. Providing good and usable product
7. Doing it right the first time
8. Delighting or pleasing customer
9. Total customer service and
satisfaction
Quality
• Defining Quality
Transcendent (Judgmental) Perspective
• Quality is synonymous to superiority or excellence.
• Quality is the goodness of the product- Walter
Shewhart (one of the pioneers of quality control). This
view is referred to as transcendent.
• Quality is both absolute and universally recognizable,
a mark of uncompromising standards and high
achievements.
Quality
Defining Quality
Product Perspective
Quality is related to the quantity of some product
attribute such as:
-thread count of a shirt or bed sheet;
- the number of different feature in an automobile or cell
phone.
Companies try to incorporate several features to the product
through research and understanding what the customers wants
Quality
Defining Quality
 User Perspective
Quality is fitness for intended
use, or how well the product
performs its intended function.
Driven by individuals needs and
wants.
Quality
Both Cadillac CTS and a Honda Civic
are fit for use ; they simply need
different needs and different group of
customers.
If you want a high-way touring vehicle
with luxury amenities, then Cadillac may
better satisfy you.
Honda Civic- for commuting in a
congested urban environment.
Quality
Defining Quality
 Value perspective
Quality is based on value; that is, the relationship of product
benefit to price.

Customers compare the quality of the total package of

goods and services that of a business (sometimes called the
customer benefit package) with price and competitive
offerings.
Quality
Defining Quality
 Value perspective
Customer benefit package may include: physical
product and its quality dimensions, presale support
such as ease of ordering, rapid on time, and accurate
delivery, and post sale support , such as field service,
warranties, and technical support. (pre-sale – to –
post-sale)
Quality
Defining Quality
 Manufacturing Perspective
Quality – conformance to
specifications
Specifications are targets and
tolerances determined by
designers of the goods and
services
Integrating quality perspective in the value chain
Transcendent User
and Product Perspective
Perspective

Needs
Customer Marketing
Value
Perspective

Design
Customer
Products Perspective
and
Services
Manufacturing

Distribution

Manufacturing
Product Flow Perspective
Information Flow
Quality
• The definition of quality depends on the point of view
of the people defining it.

• The ability of a product or service to consistently meet

or exceed customer expectations. (Stevenson 2018)

• The totality of features and characteristics of a product

or service that bears on its ability to satisfy stated or
implied needs. (American Society for Quality)
The Dimensions of Quality

One way to think about quality is the

degree to which performance of a
product or service meets or exceeds
customer expectations.
The Dimensions of Quality - Product

PERFORMANCE AESTHETICS FEATURES

CONFORMANCE RELIABILITY DURABILITY

PERCEIVED
SERVICEABILITY CONSISTENCY
QUALITY
The Dimensions of Quality - Product

1. Performance—main characteristics of the

product
Example
Everything works: fit and finish, ride, handling,
acceleration
2. Aesthetics—appearance, feel, smell, taste
Example
Exterior and interior design
The Dimensions of Quality - Product

3. Special features—extra characteristics

Example
Convenience: placement of gauges High tech:
GPS system Safety: anti-skid, airbags
4. Conformance—how well a product corresponds
to design specifications
Example
Car matches manufacturer’s specifications
The Dimensions of Quality - Product

5. Reliability—dependable performance
Example
Infrequent need for repairs
6. Durability—ability to perform over time
Example
Useful life in miles, resistance to rust
7. Perceived quality—indirect evaluation of quality (e.g.,
reputation)
Example
Ease of repair
The Dimensions of Quality - Product

8. Serviceability—handling of complaints or
repairs
Example
Ease of repair
9. Consistency—quality doesn’t vary
Example
Quality doesn’t vary from car to car
The Dimensions of Quality - Service

QUALITY OF QUALITY OF
QUALITY OF
CUSTOMER SERVICE
DELIVERY
SERVICE DESIGN

REGULATORY
TIMELINESS
REQUIREMENTS
The Dimensions of Quality - Service

1. Quality of Customer Service- how well the

customer is received, how well the implied
requirements are elucidated and how well the
customer is treated or handled.
2. Quality of Service Design- service is designed as
per the requirements of the specific customer.
3. Quality of Delivery- defects should be ZERO to
satisfy the customer.
The Dimensions of Quality - Service

4. Timeliness- delivery on schedule as per

requirements of the customer.
5. Regulatory Requirements- legal requirements
stipulated by the local and national government.
The Dimensions of Quality - Service
Customers today pay more attention to service issues than
to the physical goods.
One study found that customers are 5 times more likely to
switch because of perceived service problems than for price
concerns or product quality issues.
It is estimated that the average company loses as many as
35% of its customers each year and about two-thirds of
these are lost because of poor customer service.
The Dimensions of Quality - Service

RELIABILITY ASSURANCE TANGIBLES

EMPATHY RESPONSIVENESS
5 Principal Dimensions to Customer Perception of Quality

1. Reliability- the ability to provide what was promised,

dependably and accurately.
2. Assurance- the knowledge and courtesy of employees
and their ability to convey trust and confidence.
3. Tangibles- the physical facilities and equipment and the
appearance of personnel.
4. Empathy- the degree of caring and individual attention
provided to customers convenience.
5. Responsiveness- the willingness to help customers and
provide prompt service
History of Quality Management – Early 20th Century

In the early 1900s, the work of Frederick

Taylor, the “Father of Scientific
Management”, led to a new philosophy of
production. His innovation was to
separate the planning function from the
execution function.
Eventually, manufacturing companies
created separate quality departments
and many upper managers turned their
attention to output quantity and efficiency.
History of Quality Management – Early 20th Century

Ford executives visited Japan in 1982 to

study Japanese management practices.
The book that Henry Ford and Samuel
Crowther wrote was the book they used in
Japanese translation entitled “My Life and
Work” in 1926.
The book had become Japan’s industrial
bible and helped Ford Motor Company
realize how it strayed from its principles
over the years.
History of Quality Management – Post World War II

Two US consultants, Dr. Joseph Juran

and Dr. Edwards Deming, introduced
statistical quality control techniques to
the Japanese to aid them in their rebuilding
efforts.
A significant part of their educational activity
was focused on upper management,
rather than quality specialists alone.
History of Quality Management – Post World War II

The support of top managers made

the Japanese integrate quality
throughout their organizations and
developed a culture of
CONTINUOUS IMPROVEMENT or
KAIZEN.
History of Quality Management – The US Quality Revolution

1950-1960, Japanese products were associated with

inferiority. US consumers purchased domestic goods without
doubts.
1970, increased global competition and the availability of
higher quality foreign products led US consumers armed with
increased access to information, to consider their purchasing
decisions more carefully and to demand high quality and
reliability in goods and services at a fair price.
From Product Quality to TOTAL QUALITY

1970’s, a General Electric task force studied consumer

perceptions of the quality of various GE product lines.
The task force concluded that quality must not viewed solely
as a technical discipline but rather as a MANAGEMENT
DISCIPLINE.
Quality issues permeate all aspects of business
enterprise: design, marketing, manufacturing,
human resource management, supplier relations
and financial management.
From Product Quality to TOTAL QUALITY

“Quality of Management” is as important as “Management

of Quality”
Quality Assurance gave way to Quality Management
Many used the term Big Q to contrast the difference between
managing for quality in all organizational processes as
opposed to focusing solely manufacturing quality Little q
As organizations came to recognize the broad scope of
quality, the concept of TQM emerged
From Product Quality to TOTAL QUALITY

Managers began to realize that the approaches they use to

listen to customers and develop long-term relationships,
develop strategy, measure performance and analyze data,
reward and train employees, design and deliver products and
services and act as leaders in the organizations are the true
enablers of quality, customer satisfaction and business
results.
Quality as a Management Framework

Customer Focus – Customer Satisfaction

Total Involvement – Employee Involvement & Supplier
Partnership
Process Improvement – Continuous Improvement
The key success of the strategy is based on the
implementation considering the profiles of:
Customers
Employees
Society
Culture
Employee involvement

Employee Involvement – is a process usually initiated by

management to increase the information given to the
employees in order to enhance their commitment to the
organization and its business objectives.

Employee Participation – refers to collective rather than

individual processes, which enable employees and or their
representatives to influence decision-making processes in the
organization.
Employee involvement

High Involvement- Employees

HIGH have complete decision making
power
Full Consultation- Employees
MEDIUM
offer recommendations
Selective Consultation-
LOW Employees give information,
but don’t know the problem
Employee involvement
• How can employee • Identify and
involvement Problems
define
improve decisions? problems
better

• Identify
Employee
Solution
more and
Involvement better
solution

• More likely
Options to select
best options
Employee involvement

Principles and strategies of TQM under Employee Involvement

includes:
• Motivation
• Training and Mentoring
• Teamwork
• Recognition and Rewards
• Feedback and Performance Appraisal
• Empowerment
TQM tools for Process Improvement

The 7 Quality Process Control Tools:

1. Check Sheet
2. Scatter Diagram
3. Cause and Effect Diagram
4. Pareto Chart
5. Flowchart (Process Diagram)
6. Histogram
7. Control Chart
TQM tools for Process Improvement

Tools for Generating Ideas

Check sheets, Scatter diagrams, Cause-and-effect
diagrams
Tools to Organize the Data
Pareto charts, Flowcharts
Tools for Identifying Problems
Histogram, Statistical process control chart
TQM tools for Process Improvement

Check Sheet
An organized method of recording data
Hour
Defect 1 2 3 4 5 6 7 8
A /// / / / / /// /
B // / / // ///
C / // // ////
TQM tools for Process Improvement

Scatter Diagram
A graph of the value
of one variable vs.
another variable

Productivity Absenteeism
TQM tools for Process Improvement
Cause
Cause-and-Effect
A tool that identifies Materials Methods
Effect
process elements
(causes) that might
effect an outcome

Manpower Machinery
TQM tools for Process Improvement
TQM tools for Process Improvement

Pareto Chart
A graph to
identify and plot
problems or

Frequency

Percent
defects in
descending order
of frequency
A B C D E
TQM tools for Process Improvement

Flow Chart
A chart that
describes the
steps in a process
TQM tools for Process Improvement

Control Chart
A chart with time Upper control limit
on the horizontal Target value
axis to plot values Lower control limit
of a statistic
Time
TQM tools for Process Improvement

Histogram
A graphical
display of data
using bars of
different heights.
Quality Gurus

Edwards Joseph M. Armand

Deming Juran Feigenbaum

Philip B. Kaoru Genichi

Crosby Ishikawa Taguchi
Quality Gurus

1. W. Edwards Deming –
• The “SENIOR GURU”. He went to Japan after World War II to assist
the Japanese in improving quality and productivity.
• The Union of Japanese Scientists, who had invited Deming, were so
impressed that in 1951, after a series of lectures presented by
Deming, they established the Deming Prize.
• The Deming Prize is awarded annually to firms that distinguish
themselves with quality management programs.
• Deming worked with the Japanese for almost 30 years before he
gained recognition in his own country.
Deming’s 14 Points

1. Create and publish a company mission statement

and commit to it.
2. Learn the new philosophy.
3. Understand the purpose of inspection.
4. End business practices driven by price alone.
5. Constantly improve system of production and service.
6. Institute training.
7. Teach and institute leadership.
8. Drive out fear and create trust.
Deming’s 14 Points

9. Optimize team and individual efforts.

10. Eliminate exhortations for work force.
11. Eliminate numerical quotas and M.B.O.
Focus on improvement.
12. Remove barriers that rob people of pride
of workmanship.
13. Encourage education and self-improvement.
14. Take action to accomplish the transformation.
Quality Gurus

2. Joseph M. Juran –
• He was also regarded as a major force in Japan’s success
in quality. He made his first trip to Japan a few years after his
the publication of his Quality Control Handbook.
• His approach is the closest to Deming of all gurus, although
his approach differs on the importance of statistical methods
and what an organization must do to achieve quality.
Quality Gurus

2. Joseph M. Juran –
• Deming’s work envisioned a “transformation” but Juran believes that
an organization can manage for quality. He is credited as one of the
first to measure the cost of quality.
• It is his view that “QUALITY BEGINS BY KNOWING WHAT
CUSTOMERS WANT”.
• Juran views quality as “Fitness-for-use”. He also believes that
roughly 80% of quality defects are management controllable.
Management has the responsibility to correct this deficiency.
Quality Gurus

2. Joseph M. Juran –
He describes Quality Management in terms of a trilogy consisting of :
Quality planning – is necessary to establish processes that are
capable of meeting quality standards.
Quality control – is necessary in order to know when corrective
action is needed.
Quality improvement – will help to find better ways of doing
things.
A key element of Juran’s philosophy is the COMMITMENT
OF MANAGEMENT TO CONTINUAL IMPROVEMENT
Quality Gurus

Jurans 10 steps for Quality Improvement

1. Build awareness for the need and opportunity for
improvement.
2. Set goals for improvement.
3. Organize people to reach goals.
4. Provide training throughout the organization.
5. Carry out projects to solve problems.
Quality Gurus

Jurans 10 steps for Quality Improvement

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 processes of the company.
Quality Gurus

3. Armand Feigenbaum –
• He was instrumental in advancing the “COST OF
NONCONFORMANCE” approach as a reason for management to
commit to quality.
• He recognized that quality was not simply a collection of tools and
techniques but a “total field”. He saw that when improvements were
made in process, other areas of the company also achieved
improvements.
• Feigenbaum’s understanding of systems theory led him to create an
environment in which people could learn from each others success and
his leadership and open work environment led to cross functional
teamwork.
Quality Gurus

4. Philip B. Crosby –
• He developed the concept of “ZERO DEFECTS” and
popularized the phrase “Do it right the first time”.
• He stressed prevention and he argued against the idea that
“there will always be some level of defectives”. He published
a book Quality is Free.
• In accordance with the concept of Zero Defects, Crosby
believes that any level of defects is too high, and that
management must install programs that help the
organization move toward that goal.
Quality Gurus

5. Kaoru Ishikawa –
• The late Japanese expert on quality was strongly
influenced by both Deming and Juran.

• Among his key contributions were the development

of the “CAUSE and EFFECT diagram or
FISHBONE diagram” for problem solving and the
implementation of “QUALITY CIRCLES” which
involves workers in quality improvement.
Quality Gurus

5. Kaoru Ishikawa –
He was the first quality expert to call the attention to
the “internal customer” which is the next person in the
process. He was as strong proponent of the need for
companies to have a shared vision in order to unite
everyone in the organization in a common goal.
He is widely recognized for his efforts to make quality
control “user friendly for workers.
Quality Gurus

6. Genichi Taguchi –
• He is best known for the “TAGUCHI LOSS FUNCTION” which
involves the formula for determining the cost of poor quality.
• The idea is that the deviation of a part from a standard causes a
loss, and the combined effect of deviations of all parts from their
standards can be large, even though each individual deviation is
small.
• Deming believed it is impossible and Crosby believes that it would
be difficult to apply in most U.S firms but his method is credited
with helping FORD MOTOR COMPANY to reduce its warranty
losses.
Quality Management Systems

Quality
Management ISO
System
Quality Management Systems
Quality Management System (QMS) can be considered a
mechanism for managing and continuously improving core
processes to “achieve maximum customer satisfaction at
the lowest overall cost to the organization”.
• It applies and synthesizes standards, methods and tools
to achieve quality-related goals. Quality management
system represents a specific implementation of quality
concepts, standards, methods and it is unique to an
organization.
Quality Management Systems
• A QMS provides a basis for documenting processes
used to control and improve operations, drive
innovation and achieve the following:
• Higher product conformity and less variation
• Fewer defects, waste, rework and human error
• Improved productivity, efficiency and
effectiveness
Quality Management Systems
Quality Management Systems
Quality Policy is a formal document that demonstrates
a commitment to achieving high quality and meeting
customer expectations.
• Management must establish an organizational
structure for QMS that includes responsibilities,
methods of communication, maintenance of essential
records and documentation and procedures for
reviewing performance.
Quality Management Systems

The core of a QMS is focused on creating the goods

and services that customers want. It should include
processes for identifying customer requirements,
product planning and design processes, purchasing
procedures, methods and technology for controlling the
production of goods and services.
Quality Management Systems
Quality Manual serves as a permanent reference for
implementing and maintaining the system. A quality
manual need not be complex; a small company might
need only a dozen pages while a large organization
might need manuals for all key functions.

The system needs to be maintained and kept up to date

and can be facilitated through internal audits.
Quality Management Systems
Internal audits can identify whether documented
procedures are being following and are effective, and
reporting the issues to management for corrective
action.

Internal audits generally include a review of process

records, training records, complaints, corrective actions
and previous audit reports.
International Standardization Organization
ISO (International Organization for
Standardization) is an independent, non-
governmental membership organization and
the world's largest developer of voluntary
International Standards.
There are made up of 162* member
countries that are the national standards
bodies around the world, with a Central
Secretariat that is based in Geneva,
Switzerland.
International Standard Organization
ISO 9000 Family of Standards are a set
of standards and guidelines for quality
management systems that represents an
international consensus on a good quality
management practices.
It provides a comprehensive framework for designing
and managing a quality management system and help
organizations establish a process orientation and the
discipline to document and control key processes.
International Standard Organization
• The ISO took a unique approach in adopting the
“ISO” prefix in naming the standards.
• ISO is a scientific term for equal, pertaining to
isotherm lines on a weather map, which show equal
temperatures.
• The intent was to ensure that organizations certified
under the ISO 9000 standards have quality equal to
their peers.
International Standard Organization
• The standards have been adopted in the United States
by the American National Standards Institute
(ANSI) with the endorsement and cooperation of the
American Society for Quality (ASQ). The standards
are recognized throughout the world.
• The standards required documentation for all
processes affecting quality and suggest that
compliance through auditing leads to continuous
improvement.
International Standard Organization
• ISO certification is necessary to obtain product
certification. Meeting these standards became a
requirement for international business.
• The standards became relevant when Treaty on
European Union was signed in 1992, establishing
free trade between member countries and making
quality a key strategic objective.
International Standard Organization
• The standards were revised in 1994.
• The ISO 9000:1994 series standards consisted of 20
fundamental elements of a basic quality system that
included such things as management responsibility,
design and control, purchasing, product identification
and traceability, process control, inspection and
testing, corrective and preventive action, internal
quality audits, training and statistical techniques.
International Standard Organization
The standards were intended to meet five objectives:
1. ACHIEVE, MAINTAIN and SEEK to CONTINUOUSLY IMPROVE
product quality (including services) in relationship to requirements.
2. IMPROVE THE QUALITY OF OPERATIONS to continually meet
customer’s and stakeholders stated and implied needs.
3. PROVIDE CONFIDENCE TO INTERNAL MANAGEMENT and other
employees that quality requirements are being fulfilled and that
improvement is taking place.
4. PROVIDE CONFIDENCE TO CUSTOMERS and other stake holders
that quality requirements are being achieved in the delivered product.
5. PROVIDE CONFIDENCE THAT QUALITY SYSTEM REQUIREMENTS
are fulfilled.
International Standard Organization
• The original standards and the 1994 revision met with
considerable controversy.
• The 1994 standards only required that the organization have
a documented, verifiable process in place to ensure that it
consistently produces what it says it will produce.
• The EU called for a de-emphasis on ISO 9000 registration
citing the fact that companies were more concerned on
passing a test than on focusing on quality processes and
improvement.
• In response, the ISO revised the standards in 2000
International Standard Organization
ISO 9000:2000 reflected a completely new structure, based on
eight quality management principles known as:
1. Customer focus
2. Leadership
3. Involvement of people
4. Process approach
5. System approach to management
6. Continual improvement
7. Factual approach to decision making
8. Mutually beneficial supplier relationships
International Standard Organization
The ISO 9000 family of standards focus on DEVELOPING,
DOCUMENTING and IMPLEMENTING procedures to ensure
consistency of operations and performance in production and
service delivery processes, with the aim of continual
improvement and supported by fundamental principles of total
quality.

The standards are GENERIC and intended to apply to any

organization, regardless of type, size, or products provided.
International Standard Organization
The standards of ISO 9000 consists of three documents:
ISO 9000:2005 – Fundamentals and vocabulary : this document
provides fundamental background information and establishes
definitions of key terms used in the standards
ISO 9001:2008 – Requirements : this is the core document that
provides the specific requirement for a quality management system to
help organizations consistently provide products that meet customer
and other regulatory requirements.
ISO 9004:2009 – Guidelines for Performance Improvements : this
document provides guidelines to assist organizations in improving and
sustaining their quality management systems.
International Standard Organization
The ISO 9000 standards were originally intended to be advisory in
nature and to used for two-party contractual situations (between a
customer and a supplier) and for internal auditing.

ISO 9000 has three principal benefits:

It provides discipline – ISO 9001 requirement for audits forces an
organization to review its quality system on a routine basis.
It contains the basics of a good quality system - ISO 9001
includes basic requirements for any sound quality system.
It offers a marketing program – ISO certified organizations can use
their status to differentiate themselves in the eyes of customers.
International Standard Organization
ISO 9000:2015 describes the fundamental concepts and principles of quality
management which are universally applicable to the following:
• organizations seeking sustained success through the implementation of a
quality management system;
• customers seeking confidence in an organization's ability to consistently
provide products and services conforming to their requirements;
• organizations seeking confidence in their supply chain that their product and
service requirements will be met;
• organizations and interested parties seeking to improve communication through a
common understanding of the vocabulary used in quality management;
• organizations performing conformity assessments against the requirements of
ISO 9001;
• providers of training, assessment or advice in quality management;
• developers of related standards.
Breakthrough Improvement

Benchmarking
Reengineering
Breakthrough Improvement
Breakthrough Improvement refers to
discontinuous change, as opposed to the
gradual, continuous improvement
philosophy of Kaizen. Breakthrough
Improvements results from innovative and
creative thinking; often these are
motivated by “stretch goals or
breakthrough objectives”.
Breakthrough Improvement
Stretch goals are goals that cannot be achieved by
incremental or small improvements but require extending
oneself to the limit to be actualized.
Breakthrough objectives are targets that can
only be achieved with significant changes to the way the
company operates. A company cannot achieve them by doing
business as usual.
Breakthrough Improvement
Organizations must not set goals that result
in unreasonable stress to employees or
punish failure. They must provide appropriate
help and tools to accomplish the task.
Breakthrough Improvement
Two approaches for breakthrough improvement
that help companies achieve stretch goals are
benchmarking and reengineering.

The development and realization of improvement

objectives (stretch goals) is often aided through the
process of benchmarking.
Benchmarking
- is defined as “measuring your performance
against that of best-in-class companies”,
determining how the best-in-class achieve those
performance levels, and using information as a
basis for your own company’s targets, strategies
and implementation.
Benchmarking
Benchmarking is the search of industry best practices
that lead to superior performance.

Best practices refers to approaches that

produce exceptional results, are usually innovative in
terms of the use of technology or human resources and
are recognized by customers of industry experts.
Reengineering
reengineering, also known as
business process redesign or
process innovation, refers to
prudent initiatives intended to
achieve radically redesigned
and improved work processes
in a specific time frame
Continuous Improvement
Continuous Improvement refers to incremental
changes, small and gradual. It is an important
business strategy in competitive markets because:
• Customer loyalty is driven by delivered value
• Delivered value is created by business processes
• Sustained success in competitive markets requires a
business to continuously improve delivered value
• To continuously improve value-creation ability, a
business must improve its value-creation process
Continuous Improvement
Improvement should be a proactive task of
management and be viewed as an opportunity, not
simply as a reaction to problems and competitive
threats.

Real improvements depends on LEARNING,

which means understanding why changes are
successful through feedback between practices
and results, leading to new goal and approaches.
Continuous Improvement
Kaizen is a Japanese word which means gradual and orderly
continuous improvement.

• Kaizen focuses on small, gradual, and frequent

improvements over the long term with minimum financial
investment and participation by everyone in the
organization.

• The Kaizen philosophy encompasses all business activities

and everyone in an organization. Improvement in all areas
of the business serves to enhance the quality of the firm.
Continuous Improvement
Kaizen requires a significant cultural change from
everyone in the organization, from top management to
front-line employees.

• An example of the Kaizen philosophy in action is

the Toyota production system, in which
suggestions for improvement are encouraged and
rewarded, and the production line is stopped when
a malfunction occurs.
Continuous Improvement
Three things are required for a successful kaizen
program:
Operating practices – expose new improvement
opportunities
Total involvement – every employee strives for
improvement
Training - workers can engage in improvement through
suggestion systems, small group activities, self –
development programs that teach practical problem-
solving techniques and enhanced job performance skills.
Continuous Improvement
Although Kaizen is meant to be part of daily work,
many organizations are faced with quality or
performance issues that require immediate attention.

As a result, Kaizen concepts have been incorporated

into a team and project-driven rapid improvement
called Kaizen blitz.
Continuous Improvement
Kaizen blitz is an intense and rapid improvement
process in which a team or a department throws all of
its resources into an improvement project over a short
time period.
Blitz teams are generally comprised of employees
from all areas involved in the process who understand
it and can implement changes on the spot.
Improvement is immediate, exciting and satisfying for
all those involved in the process.
5S
It has been recognized that Japanese firms
are clean and orderly. The same is true for
high-quality western firms. Over the last two
decades, the Japanese have formalized the
technique and named it 5S.
5S

• to improve efficiency and productivity

• to maintain safety and cleanliness
• to maintain good control over the
processes
• to maintain the good product quality
5S
The list describes how to organize a work space for
efficiency and effectiveness by identifying and storing
the items used, maintaining the area and items, and
sustaining the new order.

The decision-making process usually comes from a

dialogue about standardization, which builds
understanding among employees of how they should
do the work.
5S
• SEIRI Sorting/segregating

• SEITON Self Arrangement/arranging

• SEISO Shine

• SEIKETSU Standardization

• SHITSUKE Self Discipline

5S
SEIRI Sorting/Segregating

Separating the wanted and unwanted

Junk & Waste Repairable Wanted Items

No Use Repair

Discard To next step

5S - SEIRI
While doing Seiri keep in mind :

• How often things are used.

• What is the life if the material.
• Cost of the material
• Be sure to throw the things, otherwise you may
repent.
5S - SEIRI
Consequences of not following SEIRI:

• The wanted is hard to find,when required.

• More space is demanded.
• Unwanted items cause misidentification.
• Misidentification causes errors in operation.
• Maintenance cost of the equipments increases.
5S - SEITON
Self Arrangement/arranging
Identifying places to arrange the things and
placing them in proper order for prompt usage.
“A place for every thing and
everything in its place.”
5S - SEITON
While doing Seiton keep in mind :
• The right location where the things will be used.
• FIFO (First in First out) arrangement.
• Labeling of the area and the equipment is very
important.
• Keep proper gaps between two things to avoid
confusion.
5S - SEITON
Consequences of not following SEITON:
• Things are seldom available when needed
• Items get lost
• Items get mixed up
• Visual control not possible
• Failure to achieve targets
5S - SEITON
• Good SEITON includes use of labels signs,
indications, display, cautions
• Use of labels signs, indications, display, cautions
highlights difference between normality and
abnormality.
• Non - users of the equipments also become aware
of its use and precautions.
5S - SEISO
• Spic and Span (Neat and Clean)
• Sweep your workplace thoroughly so that
there is no dust/dirt/scrap anywhere.
• The area should say “ Who I’m” and its
neatness should give you a natural
welcome.
5S - SEISO
While doing Seiso keep in mind :
• Cleaning should be done regularly.
• Use the best cleaning agent .
• All the nooks and corners should be cleaned.
• Keep all the labels intact.
• All the labels should correct, visible and legible
to all.
5S - SEISO
Consequences of not practicing SEISO:
• Performance of machines deteriorates
• The quality / aesthetic quality deteriorates
• Dirty place is unpleasant and hazardous to health.
• Sends uncaring and irresponsible message to the
team members and society at large.
• People working at dirty areas are generally found to
have low desire to excel and their motivation level is
low.
5S - SEIKETSU
• Standardization
• Always aim at maintaining the standard level of
cleanliness, hygiene and visual control.
• Keep all the 4 M’s ( Man., Machine, Material and
Method) intact, a lapse in any one of them will
make you loose the rest of the three
5S - SEIKETSU
While doing Seiketsu keep in mind :
• The standards should be arrived at unanimously.
• Always keep the standards flexible to changes and
improvements.
• Standards should be known to all and displayed.
5S - SEIKETSU
The Essence of Seiketsu
• It is the proof that 3-S (SEIRI, SEITON, SEISO) are
being religiously carried out.
• It is the barometer which indicates the control level
based on the 5-S of all the workers.
5S - SHITSUKE
Self-discipline
If you are disciplined. :
• Rules will always be followed.
• Laid down targets will be achieved.
• Improvements will be promoted .
• The no. of defects will be reduced.
• The cost will not increase.
5S - SHITSUKE
How to practice SHITSUKE
• Train all team members on 4-S
• Correct wrong practices on the spot
• Punctuality is the backbone of 5S
• Follow work instructions.
5S
What is Six Sigma
• A goal of near perfection in meeting customer
requirements
• A sweeping culture change effort to position a
company for greater customer satisfaction,
profitability and competitiveness

(Source:The Six Sigma Way by Pande, Neuman and Cavanagh)

Six Sigma
Six Sigma can be described as a business improvement approach
that seeks to find and eliminate causes of defects and errors in
manufacturing and service processes by focusing on outputs that are
critical to customers and has a clear financial return for the
organization.

The term six sigma is based on a statistical measure that equates to

3.4 or fewer errors or defects per million opportunities.

An ultimate stretch goal of all organizations that adopt a Six Sigma

philosophy is to have all critical processes, regardless of functional
area.
 Six Sigma
The higher the sigma, the fewer the
σ
Defects Per
Million
defects. Opportunities
1 697,672.15
2 308,770.21
A increase from 3 to 6 Sigma 3 66,810.63
4 6,209.70
represents a 20,000 fold 5 232.67
6 3.40
improvement in quality.

99% “Good” (3.8 Sigma) 99.99966% “Good” (6 Sigma)

No electricity for 7 hours per month No electricity for 1 hour every 34 years
5,000 incorrect operations per week 1.7 incorrect operations per week
20,000 wrong prescriptions per year 68 wrong prescriptions per year
What is Six Sigma
The objective of Six Sigma quality is 3.4
defects per million opportunities!
Degree of Shift in Mean Quality Level (# Defects per Million Opportunities)
(Number of Standard Deviations) 3 Sigma 4 Sigma 5 Sigma 6 Sigma
0.0 2700 63 0.57 0.002
0.5 6440 236 3.4 0.019
1.0 22832 1350 32 0.019
1.5 66803 6200 233 3.4
2.0 158,700 22800 1300 32
Six Sigma
Evolution of Six Sigma
Motorola pioneered the concept of Six Sigma as an approach to
measuring product and service quality. The late Bill Smith, a mid
1980s and selling it to Motorola’s CEO, Robert Galvin.
Smith noted that system failure rates were substantially higher than
predicted by final product test, and suggest several causes, including
higher system complexity that resulted in more opportunities for
failure, and a fundamental flaw in traditional quality thinking.
He concluded that a much higher level of internal quality was
required.
Principles of Six Sigma
1. Think in terms of key business processes and customer
requirements with a clear focus on overall strategic objectives.
2. Focus on corporate sponsors responsible for championing
projects, support team activities, help to overcome resistance to
change and obtain resources.
3. Emphasize such quantifiable measures as DPMO (defects per
million) can be applied to all parts of an organization : manufacturing,
engineering, administrative and others.
4. Ensure that appropriate metrics are identified early in the
process and that they focus on business results providing incentives
and accountability.
Principles of Six Sigma
5. Provide extensive training followed by project team deployment
to improve profitability, reduce non-value-added activities and achieve
cycle time reduction.

6. Create highly qualified process improvement experts who can

apply improvement tools and lead teams.

7. Set stretch objectives for improvement.

TQM VS SIX SIGMA
1. TQM is based largely on worker environment and teams; Six Sigma
is owned by business leader champions.
2. TQM activities generally occur within a function, process or
individual workplace; Six Sigma projects are truly cross-functional.
3. TQM training is generally limited to simple improvement tools and
concepts; Six Sigma focuses on rigorous and advanced set of
statistical methods and DMAIC technology.
4. TQM is focused on improvement with little financial accountability;
Six Sigma requires a verifiable return on investment and focus on
the bottom line.
DMAIC
Define
Measure
Analyze
Improve
Control
DMAIC Process
Define: Define who your
Control customers are, and what their
requirements are for your
Improve products and services – Their
expectations. Define your team
Define
goals, project boundaries, what
Analyze you will focus on and what you
won’t. Define the process you are
Measure
striving to improve by mapping
the process.
DMAIC Process
Measure: Eliminate guesswork and
Control assumptions about what customers
need and expect and how well
Improve processes are working. Collect data
from many sources to determine speed
Define in responding to customer requests,
defect types and how frequently they
Analyze occur, client feedback on how processes
fit their needs, how clients rate us over
Measure
time, etc. The data collection may
suggest Charter revision.
DMAIC Process
Analyze: Grounded in the context of
Control the customer and competitive
environment, analyze is used to
Improve organize data and look for process
problems and opportunities. This step
Define helps to identify gaps between current
and goal performance, prioritize
Analyze opportunities to improve, identify
sources of variation and root causes of
Measure
problems in the process.
DMAIC Process
Control
Improve: Generate both
obvious and creative
Improve
solutions to fix and
Define prevent problems.
Analyze
Finding creative solutions
Measure
by correcting root causes
requires innovation,
technology and discipline.
DMAIC Process
Control: Insure that the process
Control
improvements, once
Improve
implemented, will “hold the gains”
rather than revert to the same
Define problems again. Various control
tools such as statistical process
Analyze control can be used. Other tools
Measure such as procedure documentation
helps institutionalize the
improvement.
DMAIC Process
Control Tools

Sustain

Return on Investment (ROI)

Performance improvement
Improvement
Devise solution(s) and
implement

Benchmarking …and validate root cause(s)

…the current process capability

(get the data!)

…the problem in a measurable way

Project Timeline