Total Quality

Management
Total Quality Management
 Is a customer oriented management
philosophy and strategy. The word TOTAL
implies that all member of the organization
make consistent effort to achieve the
objective of customer delight through
systematic effort for improvement of the
organization.
Continuous Preventive Action
 Corrective action is a post-mortem. What is a
corrective action? When the product or services
is delivered, if the customer finds defect or
faces problems. Then the deficiency are
registered and corrected by the organization.
 Corrective action is better than no action at all.
 Prevention is better than cure – there are two
ways of handling problem, one is to cure and
the other is to prevent it.
 One shot prevention is not good enough – no
organization can afford to stop after taking
one or two preventive action. If they do so,
the quality of product would decline and no
amount of corrective action will help. The
organization will earn a bad reputation.
Care for little things and accumulate
gains
 Every employees should take care to maintain
every tool whatever maybe its cost or
importance.
 Every tool used should be maintained

properly, calibrated at periodic interval and

handled properly.
 Communicates with junior employees
 Keep on accumulating
Ensure economic Performance
 All TQM activities should lead to better
economic performance in the long run.
 Improve Quality

Cost decrease due to fewer defects,

lesser rework, fewer delays and better
use of Men, Machine and Materials

Improved Productivity

Capture market with better quality and

lower prices

Stay in business

Provide more jobs

Dimensions of Quality
Product Quality
1. Functionality

refers to the core features and characteristic

of a product.

A set of attributes that bear on the existence of

a set of functions and their specified
properties. The function are those that satisfy
stated or implied needs.
2. Reliability
Measured by mean (average) time between
failure (MTBF). It is an indicator of durability of
product.
3. Usability
 The customer should be able to use the
product without the use of the expert. It can
be measured by the time taken for training an
operator for error free operation of the
system.
4. Maintainability
 Refers to the ease with which a product can
be maintained in the original condition. It can
be measured as Mean Time to Repair (MTTR).
5. efficiency
 It is the ratio of output to input.
6. Portability
 A set of attributes that bear on the ability of a
software to be transferred from one
environment to another.
Service Quality
 1. QUALITY OF CUSTOMER SERVICE

- How well the customer is received?

- How well the implied requirements are
elucidated?
- How well the customer is treated/
handled/ satisfied?
 2. QUALITY OF SERVICE DESIGN

It is important that the service is designed as

per the requirement of the specific customer.
3. QUALITY OF DELIVERY
1. Timeliness – no customer like waiting time.
2. Aesthetics – a product or service does not
only perform but appear attractive.
3. Regulatory requirements
4. Requirements of society
5. Conformance to standard
Quality Pays
 Ford, GM, Chrysler were considered to be the
“Big Three” in the automobile sector for
decades. Toyota has unseated Ford motors as
the world second biggest automaker. It is
reported that Toyota is steadily marching
toward its goal of grabbing 15% of the global
car market. This achievement will make
Toyota as the no.1 automaker in the world.
The market capitalization of Toyota is $120
billion; a measure of how much investor a
company is worth.
Toyota Motors for years has been
practicing;
 TQM
 JIT
 ZERO DEFECT
 KAIZEN
Evolution of Quality
Dr. Walter A. Shewhart (1891-1967)
 Worked in Western Electric Company and AT
& T USA.
 He advocated Statistical Quality Control (SQC)

and Acceptable Quality Level (AQL)

 AQL is the foundation of todays SIX SIGMA.
 He is considered to be the father of SQC, who

developed control chart for quality

improvement and assessment.
 He develop the Plan, Do, Check, Act (PDCA)

cycle for a continuous improvement.

Deming W. Edward (1900-1993)
 An associate of Shewhart.
 Worked in Western Electric Company as a
statistician.
 He was invited to Japan to lead the Quality
movement.
 He modified PDCA cycle of Shewhart to the
Plan, Do, Study and Act (PDSA) cycle.
 He also advocated the use of extensive
statistic, control chart and focused on product
improvement and service conformance.
Nov. 23, 1980 in Paris, an extract
from Deming Speech
 “ I don’t know if I mentioned what happened in
Japan in 1950 and in 18 visits that I made since.
They listened to my talks, about how management
can make use of statistical methods in industry all
the way from incoming materials to consumer
research.
I emphasized incoming materials ad consumer.
Without the consumer we do not have any
production. The whole world knows how they have
done it. Innovation, new product and improvement of
all the product, It’s fantastic!
 Japanese management uses difficult method,
everywhere. On reception of incoming materials,
they do not accept defective materials. They
teach vendors quality control, they share
manufacturing concern with all the others; so the
entire industry improves. “
HE BELIEVED THAT PEOPLE DO THEIR BEST AND
IT IS THE SYSTEM THAT MUST CHANGE TO
IMPROVE QUALITY. DEMING STRESSED THE
IMPORTANCE OF SUPPLIER AND CUSTOMER FOR
THE BUSINESS TO DEVELOP AND IMPROVE.
Joseph M. Juran (1904)
 Juran also joined Western Electric Company.
 Japanese Union of Scientist and Engineers

(JUSE) invited him to Japan in 1954.

 He identifies Fitness of Quality.
Juran fitness of Quality
 Quality of design – through market research,
product and concept.
 Quality of Conformance – through

management, manpower and technology.

 Availability – through reliability,

maintainability and logistic support.

 Full service – through promptness,

competence and integrity.

Juran’s Quality Planning Roadmap
 Identify your customer.
 Determine their needs.
 Translate them into your language.

 Develop a product that can respond to the

needs.
 Develop processes, which are able to produce

those product features.

 Prove that the process can produce the product.
 Transfer the resulting plan to the operating

forces.
Phillip B. Crosby (1926)
 Crosby was Vice President of International
Telephone and Telegraph (ITT)
 His 4 absolutes Quality are very relevant to

TQM.
Crosby four absolute of Quality
 Quality is conformance to requirements,
nothing more or nothing less certainly not
goodness or elegance.
 Quality has to be achieved by prevention and

not by appraisal.
 The performance standard must be zero

defect and not something close to it.

 The measurement of Quality is the price of

non- conformance.
Armand V. Feigenbaum
 He was the President of American Society of
Quality Control ( 1961-1963)
Feigenbaum cycle time reduction
methodology
 Define process.
 List all activities.
 Flowchart the process.
 List the elapsed time for each activity.
 Identify non- value adding task.
 Eliminate all possible non-value adding tasks.
Kaoru Ishikawa (1915-1989)
 A Quality guru from Japan.
 he strongly advocated the use of cause and

effect diagram.
 He developed the Fishbone or Ishikawa

diagram for cause and effect analysis.

Quality Control
 The operational technique and activities that
are used to fulfill the requirements for
quality.
 Juran gives 3step of QC:

1. evaluate actual operating performance.

2. compare actual performance to goal.
3. act on the difference
QUALITY ASSURANCE (QA)
 All the planned and systematic activities
implemented within the quality system and
demonstrated as needed, to provide adequate
confidence that an entity will fulfill the
requirements for quality.
 The purpose of QA is to fulfill the quality into

the product.
Quality of Conformance
 This indicates the consistency in delivering
the designed product. Product quality in turn
depends on the quality of all processes in the
organization.
Quality of Performance
 It is an indicator of the performance of the
end product. This in turn depends on the
quality of design and quality of conformance.
Quality of Service
 Selling a product is not the end of the
business. It is the quality of associated
services rendered that value to the product.
Quality of service involves all activities that
will enable the customer to procure and use
the product without any hassles.
Building quality into the product
requires the following:
 Quality of Design
 Quality of Conformance
 Quality of Performance
 Quality of Service
Quality of Design
 It refers how well the product or service has
been designed to meet the requirements of
customer and add value to all the
stakeholder. The stakeholder for any
organization are:
1. customer
2. employees
3. supplier
4. owner
5. society
Cost of Quality
 The sum of costs incurred by an organization in
preventing poor quality. These are essentially
three types of quality cost:

1. PREVENTIVE COST
- are the planned cost incurred by an
organization to ensure that no defect occur in any
of the stages such as design, development,
production and delivery of the product and
services. They are incurred to reduce the
inspection as well as the failure cost.
 2. Appraisal Cost

- are incurred in verifying, checking or

evaluating a product or service at various
stages during manufacturing or delivering.
- they are incurred due to the lack of the
confidence in the quality of product and
services either due to the incoming materials
or due to the process.
Appraisal cost includes:
 Inspection
 Internal product audit
 Supplier evaluation and audit
 Inspection during process and final

inspection.
 3. Failure Cost
- are incurred by organization because the
product or services did not meet the expected
requirements and the product had to be fixed
or replaced or the service had to be repeated.
- the failure cost are due to the incurred
failure of the organization to control defects in
the product.
Classification of failure cost:
Internal Failure Cost
- include cost of every failure that takes place
before the product is delivered to the customer.

1. Rejected materials
2. Rejected piece of sub- assemblies
3. Rejected product at final inspection.
4. Scrap on account of poor workmanship.
5. Overtime due to non-conforming product.
 External Failure Cost
-these are on cost of the failure of the product
after its delivery to the customer.
1. Warranty cost
2. Free replacement given due to failure of items
supplied.
3. Cost incurred to travel to customer site for
repair.
4. Cost of product returned.
5. Cost of customer complaints administration.
6. Cost of customer follow-up and field service
department.
To accomplish
“

great things, we
must not only act,
but also dream;
not only plan, but
also believe.”
Leadership
 Total Quality Management is a way of managing
an organization with the objective of carrying
out right the job right – the first time and every
time.
 In the Quality, there is a thumb rule called

85/15 Rule. It means that the root causes of 85

percent of the problem in the organization are
due to faulty systems and 15 percent are a
result of the behaviour of people.
 Top management is responsible for the faulty

system.
Top management should also have faith in the
following to build quality values in the
organization.
 Customer are the only reason for being in
business and hence they should be delighted.
 Zero defect is possible to achieve
 Teamwork results in a win-win situation.
 CEO has to lead the quality movement.
 Proper communication is essential.
 Continuous improvement is needed in

processes.
Deming 14 points for top
management
 1. create constancy of purpose for
improvement of product and services.

- The Top management must believe that

their business will continue for 100 years.
 2. Adapt the New Philosophy

- The new Philosophy means elimination of

waste, delays and radically changing the work
culture.
 3. Cease dependence on Mass Inspection

- Doing things right and doing it right the first

time would reduce the dependence on
inspection.
 4. End the practice of awarding business on
the basis of price tag alone.

- Quality
- Price
- Delivery
- Services
 5. Constantly Improve the system of
production and services.

- The very purpose of TQM is the constant

improvement of the system for production and
services.
 6. Institute training.

- “ Management needs training to learn about

organization. All the way from incoming
materials to the customer.”
 7. Adopt and Institute Leadership

- Deming urge that the senior employees

must conduct themselves as a leader rather
than manager.
 8. Drive out fear

- Employees should be encourage to suggest

improvement and new ideas, ask questions
about the existing process.
 9. Breakdown barrier between staff areas.

- TQM dictates removal of barrier between the

department.
 10. Eliminate slogans, Exhortations and
Target for the workforce.

The best strategy for improvement is correct

defect in the system, not slogan or poster.
 11. A. Eliminate numerical quota for the work
force. – this force will eliminate the quality
and concentrate on quantity.
B. Eliminate numerical goal fro people in
management. - improvement should arise out
of improving processes and not by passage of
time.
 12. Remove People that rob people of pride
and workmanship.

- if the work is carried out correctly, it gives

the pride to those who did it.
 13. Encourage education and self
improvement for every one.

- Employees should be encourage to pursue

higher education and training while in service,
for improving the skills and updating
knowledge.
 14. Take action to accomplish the
transformation.
- The top management should understand
the above 13 points and then enable their
employees to understand them.
Ten strategies for Top
Management
Proactive Management

The leader have to foresee what will happen

in the future and take advance action to
prevent occurrence of the problem as
prevention is always better than cure.

-Proactive management needs proper system.

-TQM calls for Proactive management
Adventurous and Bold Change
management
 Nobody likes changes – Human being by
nature resist change. They resist change as
they feel they have to work more or learn new
technique.

 Change is essential – Organization has to

continuously change for better. Changes are
required in a number of activities such as the
process, materials, machinery, control,
method, inspection and others.
Be adventurous – successful people are those
who have taken challenges and grown beyond
expectation. Those who have aim high
reached high. He should be ambitious as far
as the organization improvement is
concerned. Only ambition can lead to
success.
 Be Bold – the other pre –requisite for change

management are boldness, self-confidence or

self-esteem.
DIRFT-Do it Right First Time
 Take Right Decision.

-Plan the decision – weigh the pros and cons

- Foresee the impact of the decision on the
organization.
- take opinion of the right people.
- Involve the concerned.
- Implement the decision.
- Persist.
Why people don’t do it Right the First
Time?
 The employees does not know what to do clearly,
leave alone how to do it!
 If he knows how to do, he is not motivated enough

to do it right the first time.

 he may not have the right tools to do a good job.
 He does not have the necessary education or

training to know how to DIRFT.

 Probably his senior have trained him to do the

wrong way.
 He is not proud of the job he is doing.
 He does not get appreciated when he does it right.
Problems of not Doing it Right
 Not doing it right ever.
 Leads to unnecessary expenditure.
 Increases the Failure cost.
 Demotivates employees.
 Causes hassles to employees and customers.
 Brings down the reputation of the

organization.
 Leads to schedule slippages.
 Increases scrap leading to more cost.
Basic Requirements for DIRFT
 Right the First Time and Every Time.
 Set Right Goals.
 Select Right Personnel.
 Establish Right Decision.
 Choose Durable Raw Materials.
 Choose Right Machinery
CARE FOR LITTLE THINGS AND
ACCUMULATE GAINS
 Caring with small things – every employees
should take care to maintain every tool
whatever maybe its cost or importance.
 Communicate with junior employees.
 Keep on accumulating – the management

should consider little things and improve

everything in the organization.
MANAGEMENT BY WALKING AROUND
(WBWA)
 The concept of wandering around was
postulated by Tom Peters.
 It can be defined as the unannounced visit of

the CEO to the various work spot for getting

direct and first hand information from the
customer, employees and supplier.
 The CEO has to make the employees

comfortable to make them speak freely and

frankly.
MEASURE FOR SUCCESS
 Measuring success primarily involves looking
for and measuring or analysing the feedback
from customer either internal or external.

 Measure 3 P’s
Process
Personnel
Product
Ensure Economic Performance
All activities should lead to better economic
performance in the long run. The goal of an
organization should be higher return of investment
(ROI)

 QUALITY SHOULD INCREASE PRODUCTIVITY

ALSO.
 TALK ABOUT SUCCESS and ECONOMIC

PERFORMANCE.
- STAKEHOLDER WILL UNDERSTAND ECONOMIC
BETTER.
 Process
Product

Personnel

MEASURE FOR SUCCESS

PDSA for measurement
 PDSA cycle popularized by Deming.
 It is an important tool for any activity.
A. Plan for measuring success
 The organization should identify the various
measure for success.
 It is very difficult to measure a service

organization.
 Formulation of measure for service quality is

quite a difficult task at the same time an

interesting job.
 It calls for innovation by organization

employees for identifying the right measures.

Common measures for service
industries:
 Planned delivery time and actual delivery time.
 Repeat customer
 Perception of the customer about quality
 Perception among customer about competitor
 Productivity
 Revenue generated per employee
 Revenue vs. expenditure ratio
 Return on investment
 Customer complaints
 Reject in process
 Reject at customer site
 Rework
 Reminder given by customer
 Error in invoices
 Under payment / over payment
 Result of field survey
B. The Do Phase of Measuring
 The identified measurement should be
carried out on trial basis with direction from
the quality council.
 The senior executive should educate the

junior employees about the intent of the

measure.
 The involvement of employees in the

identification and describing the measure is

thus helpful to overcome resistance from
employees.
C. The study Phase of Measurement
 The organization should experiment with the
proposed measures for about two to three
months.
 The quality council could check the

effectiveness of the measure, the method of

measurement, and the relationship of the
measures with actual customer satisfaction
achieved.
 The correctness of measure identified and the

measurement process should be analysed

independently and objectively.
 Quality council in the study phase needs to
find out if some more measure are required
or some are to be dropped or modified and
so on.
D. The Act Phase of Measurement
 In this phase the measures and method of
measurement are confirmed.
 Measuring for success is a continuing activity.
 It is essential that the result of measurements be

communicated to the employees at regular

interval, as it will motivate employees to do
better than before.
 Displaying result will not demoralize the

employees when the doing is not good and will

not make the employees complacent when the
doing is good, if the management is active.
Never rest on Past Laurel, Continue to
improve
 The tale of tortoise and Rabbit

The tale of tortoise and rabbit teaches us the

lesson one should never rest on past laurel, but
continue to improve. Slow and steady wins the
race and over confidence can lead to failure. It is
important to learn from the story that since
rabbit is resting on its laurel and past glory, it
relaxed and lost the race. No organization can
afford to lose by resting on its past laurel.
Build a Virtual Organization
 A smarter way of doing business is to create
a near virtual corporation. Here, the core part
is manufactured and the rest bought from
qualified vendors. This has been found highly
effective and profitable.
Requirement for virtual enterprise
 Identify the most critical part
 Identify the other parts
 Develop / identify vendors for the other

parts.
 Continuously increase sub-contracting
Customer Satisfaction
Semi-finals
“One customer, well
taken care of, could
be more valuable
than $ 10,000
worth of
advertising.”

-Jim
Service Quality
 SERVICE – the result generated, by activities
at the interface between the organization and
the customer and by the organization’s
internal activities, to meet customer needs.
Feature of service
 SPEED

- offer the service as fast as possible without

compromising on quality. Furthermore the
demand will be fluctuating and there will be
peak periods.
 DELIVERY SCHEDULE

- Every delivery is associated with a delivery

schedule. The customer may not accept a
service if the delivery is delayed.
 CARE IN HANDLING

- The deliverables have to be handled

carefully. The mishandling of customer will
also cause hardship in the form of the loss of
goodwill and repetition of orders.
 EACH SERVICE OFFERING IS DIFFERENT

- Each service requirement is different as it is

depends upon the personal preferences of
individual. Each service is designed to fulfil the
individual needs of customers.
 CUSTOMER REQUIREMENTS ARE DIFFICULT TO
COMPREHEND

- Service provider has to make effort to

understand the requirement of each customer
correctly. One has to communicate effectively
with the customer to know his true
requirements.
 DIFFICULTY IN ESTIMATING COST

- service charges essentially comprise of the

cost of materials, the man hours, machine
hours that will be utilized and the cost of
overhead. Every organization should have a
system for arriving at the charges for each
offering, system should be simple and
unambiguous.
 DIFFICULTY IN MEASURING PERFORMANCES
OF SERVICES.

- The quality of service delivered can only be

judged by the actual user. It becomes
important to carry out measurement of quality
of the service delivered through customer
feedback.
 DIFFICULTY IN MARKETING SERVICES

- personal contact with potential buyer.

- building credibility of the organization by
good services consistently.
 DIFFICULTY IN MEASURING CUSTOMER
SATISFACTION

- it is very difficulty to read the minds of

people. The service organization cannot rely on
normal method of assessment of the customer
satisfaction. Measuring customer satisfaction is
quite important to every business.
 PSYCHOLOGY OF CUSTOMER

- Customer have to be handled tactfully. It is

better to lose a customer by telling the truth
rather than getting a customer by giving false
promise.
CUSTOMER DELIGHT
 Business Thrives on customer – customer are
the very reason for being in business,
customer orientation means running a
business with the sole motive of serving more
and more customer and satisfying them.
 Customer Attrition
- Some organization may be able to attract
new customer, but existing customer may
leave.

“ if product is good then

customer will comeback
( again ); if not the product
will come back (returned).”
According to Tom Peters, the customer
leave because of the following reasons
 15 per cent because of quality problem.
 15 per cent because of higher prices.
 70 per cent did not enjoy doing business with

the organization.
Employee Involvement
50 per cent of problems are due to
misunderstood requirements
 50 per cent of the defect are caused due to
misunderstanding of the requirements. This
statistics may also apply equally to any other
service industry.
The contractual requirements could
include the following parameters
 Quality
 Time schedule for
 delivery
 Price
 Services
 Documentation support
 Training support
Non- contractual expectation
 Quality
 Implied requirements
 Value for the money spent
 Environment of conducting business
Customer service
attributes
C for CARING
 The customer service employees should not
only be , but perceived to be very interested
in finding out the real needs of the customer
and help them to buy what they really intend
to buy, product or service.
O for OBSERVANT
 Each Customer service personnel should be a
good observer. The customer contact person
should pay attention to the body language of
the customer and should be able to read their
requirements.
M for MINDFUL
 The customer contact employees should be
sensitive to the urgency and expectation of
the customer. Treat the customer with due
respect and give them the feeling that they
are always right.
F for FRIENDLY
 They should give as much information as
possible to the customer and greet them with
a smile. All these small things will improve
the relationship with the customer and
retaining the customer for their lifetime.
O for Obliging
 The customer contact employees should
answer the customer queries even in such
cases , as it may add to the marketing effort
of the organization.
R for Responsible
 It is very important that the organization feels
the responsibility of fulfilling the quality
requirements, time schedule requirements,
delivery requirements and service
requirements as well as price requirements.
T for Tactful
 The customer is supreme but it does now
mean that they cannot be wrong. The
organization should tactfully handle such
situations. Tactful handling of customer will
make the customer understand and
cooperate in completing the jobs
successfully.
Employee Involvement
 To make them work, the management do the
following:
 Reward
 Coerce
 Intimidate
 Punish

 This theory assumes that employees cannot

be trusted and the employees have to be
supervises all the time.
Employee Motivation
 MOTIVATION THEORY OF INDIVIDUAL
EMPLOYEES
THEORY X:
Sigmund Freud is the author of theory X. theory
X categorizes employees as given below:
 Avoid work
 NO ambition

 No initiative
 Do not take responsibility
 Need security
Theory Y
 Douglas McGregor is the author of Theory Y.
- want to learn
 Work is a natural activity

-have self –discipline

 Develop themselves

These employees do not get motivated as much by

any reward, but they seek freedom to do difficult
and challenging jobs. If the managers can guide the
employees in identifying challenging jobs, the
potential of employees will be realized.
Theory Z
 Abraham Maslow believes that good qualities
are inherent in people. He believes that five
basic human needs.
SELF – ACTUALIZATION NEEDS

ESTEEM NEEDS

LOVE NEEDS

SAFETY NEEDS

PHYSIOLOGICAL NEEDS
 SELF ACTUALIZING NEEDS

THEY ARE THE GREATEST MOTIVATOR FOR

HUMAN BEINGS. HE BELIEVES THAT HUMAN
BEING ARE ALWAYS DISSATISFIED AND THEY
WOULD LIKE TO ACHIEVE MORE AND MORE.
 PHYSIOLOGICAL NEEDS

THIS IS THE BASIC NEEDS FOR HUMAN BEING.

HE BELIEVES THAT EVERY HUMAN BEING WANTS
TO EARN A LIVING FOR HIMSELF AND HIS
FAMILY.
HERZBERG’Z THEORY
 Hygiene factors – the minimum that every
employee requires for not being dissatisfied
1. The company
2. Its policies and administration

3. Kind of supervision
4. Working condition
5. Interpersonal relations
6. Salary

7. Status
8. security
 Motivation

1. Achievement
2. Recognition
3. interest in the task
4. responsibility for enlarge task
5. growth and advancement
Motivational Technique
 It must be realized that all the employees do
not fall into one category. It is important to
realize that each person develop certain
attitude depending on his/her current
background. It is a challenging task of the
leader to bring in harmony in the
organization. Each human resource has to be
looked at, coached, motivated and enabled to
be a performer.
TEAMWORKS
 Every organization may start initially with one
person or a few people. Each person has to
contribute to the business output of the
organization. Therefore, it is amply clear that
teams are made to do work, which individuals
can’t. It is very logical therefore that team
members have to work together, in the
interest of the organization in fulfilling the
basic expectation of the employees.
Why teams?
 Personnel are added in the organization to do
more work. Each person has to contribute to
the business output of the organization. Each
person is recruited for a specific job. Teams
are formed to fulfil the objective.
Teams can have the following
benefits
 Achieve dramatic result, which individual
can’t
 Make best use of skills of each member of the

team
 Make right decisions
 Get more employment and job satisfaction
 Teamwork is not a natural human
function
 One may find that the team member are
incompatible and it is very difficult for them
to work together. Therefore, every effort
should be made to put together compatible
person as a team. Some employees may try to
disrupt teamwork, some employees may like
to work alone.
Can the Japanese success be
repeated?
 Why only the Japanese can practice teamwork and
not the other management of the world. Expert
believe that teamwork is possible in Japan , as
there is no diversity among employees. This maybe
one of the reason for the success of the Japanese
team, but the major factor for the Teamwork
elsewhere is the Organizational Culture. The Top
management should always encourage teamwork
and discourage individualism in organization. By
working as a team the bright individual will be able
to contribute for the organization.
PDCA for Training
 PLAN FOR TRAINING

Every employees need training. The training

needs of every employees should be planned
and documented. What is important that the
training plan for each employees is available at
the beginning of the year.
 PROVIDE FOR TRAINING

Employees should be deputed for training as

planned, alternate plan should be made at the
earliest.
 MEASURE TRAINING EFFECTIVENESS

After the employees undergoes training, the

effectiveness of training should be assessed
formally.
 IMPROVING TRAINING EFFECTIVENESS

Based on the above, both preventive and

corrective measures should be taken for
improving the effectiveness of the training
program.
 EMPOWERMENT
 WHAT IS EMPOWERMENT?

- Empowerment and ownership are synonymous.

“ it is an organizational state, where people are aligned with
business direction and understand their performance
boundaries, thus enabling them to take responsibility and
ownership while seeking improvement, identifying the best
course of action and initiating steps to satisfy customer
requirements.”
 Empowerment means transfer of
responsibility of satisfying customer to
employees.
 EMPOWERMENT is not without bounds.
 EMPOWER TEAMS, NOT INDIVIDUALS.
Steps involved in Empowering
 Agree on what they will produce to carry out.
 Decide how to organize the team.
 Decide on the responsibility within the team.
 Decide on flow of work.
 Audit the process.
 Decide on improvement and restart.
Top management should take the following
action to practice empowerment:
 Accept that teamwork is more beneficial than
hierarchical management
 Invest time and money on the teambuilding

and training before empowerment.

 Formulate a clear-cut, unambiguous vision

and mission statement and the system for

quality
 Be prepared to spend more time at the initial

stage and listen to the problem of team.

 Prepare to wait patiently for the success of
the empowered teams.
 Prepare to equip the teams with facts and

trust them
 Provide support and tools wherever required

for problem solving.

 Reward worthy teams
 Provide communications infrastructure and

Information Tech for the team to carry on the

task
Barriers to Success
 Difficulty of Supervisor and Team members in
New roles
 Supervisor Resistance
 Misalignment
 Process Approach
There will be no output without
input
 PROBLEMS OCCUR IN THE ORGANIZATION, NOT
BECAUSE OF THE EMPLOYEES, BUT BECAUSE OF
THE FAILURE OF MANAGEMENT TO FORESEE THE
IMPORTANCE OF SYSTEM IN THE
ORGANIZATION.
 A system can be established correctly only if the

organization realizes the activities from

receiving materials till delivery to customer as a
set of process.
 The Japanese perfected a number of process

model and approaches.

Model for Process Definition
 The process model is quite simple.
1. Input to the process
2. Output of the process
3. The process or task
Input of the Process
 Bill of materials
 Specification for each materials
 Requirements for inspection for the incoming

materials
 Procedure for the receipt of materials
Output of the Process
 The product or services to be delivered
 Documents to be delivered
 The specification for all the above
 Method for measurement for verifying

conformance to the specification

 Criteria for acceptance / rejection
 STUDY

STREAMLINE
STRENGTHEN

SYNERGIZE SIMPLIFY

STANDARDIZE

SUBBURAJ’S 6 S FOR PROCESS IMPROVEMENT

Study
 The current performance level of the
processes triggers improvement.
 It could be the defect found, cycle time

achieve, customer complaint/ feedback,

customer waiting time, hassle of the
customer.
 It is important to study the process and

document the details as necessary.

streamline
 Streamlining means that the process should offer
the least resistance to motion in the organization.
 Example: CEO of the organization was formally
issuing the test and calibration report under his
signature. Due to his busy schedule reports was
getting delayed. Therefore, by including
appropriate quality check, this non-value adding
activity was dispensed with by delegating the
responsibility to middle manager, however the
CEO looks at the sample of the report issued to
make sure the system works.
Simplify
 One has to formulate a simplified procedure
for carrying out the task without increasing
the cost and compromising on quality.
 EXAMPLE : organization make 3 copies of test
reports. One for customer, one for duplicate,
one for record. By analysis it was reduced to
preparing one copy for issue the customer and
the same was restored in electronic media for
record purposes. It reduced the work, saved
paper and above all simplified the work.
Standardize
 Standardization essentially permits
performing the process in the same way by
every employee at all times.
Synergize
 During this phase a perfect synergy is worked
out between this process and other process
interacting with it. A process may interact
with at least two other processes – customer
and supplier processes.
 Strengthen
Educating and convincing the process owner, their customer and supplier.
Periodic counselling and assuring that the new process will perform better
than the old one.
Monitoring the result.
Six sigma
Six sigma
 A business process that allow an organization
to drastically improve their bottom line by
designing and monitoring everyday business
activities in ways that minimizes waste and
resources while increasing customer
satisfaction.
 Although a six sigma is statistical technique,

it was combined with a new methodology to

control the process at Motorola to result in
dramatic improvement in the process.
Six sigma is defined by G.E
 A vision of Quality which equates with only
3.4 defects per million opportunities for each
product or services transaction and strives for
perfection.
 Six sigma refer to a measure of process

consistency and aims at achieving the same.

 Six sigma is the most widely used

methodology to become more customer

focused and more quality oriented
organization.
The origins of Six Sigma
 Six Sigma was born in the 1980’s at Motorola. Bill
Smith, an engineer at Motorola Communications
sector was quietly working behind the scene
studying the correlation between a product field life
or reliability or how often have been the product
repaired during the manufacturing process.
 He presented that if a product was found defective
and corrected during the production process,
others defects were bound to be missed and found
later by the customer during early used of the
product.
 Motorola began to improve the quality and
simultaneously reduce the cost by focusing
on product design and manufacturing.
 The six sigma Architect of Motorola focused

in making improvement in all operation

within the process .
 The company saved 2.2 billion dollars in

4years.
 In 1988, Motorola received the first Malcolm

Baldrige National Quality Award

 In 1990, Motorola joined with IBM, Texas
Instruments and Kodak to establish SIX
SIGMA RESEARCH INSTITUTE (SSRI). SSRI
conceptualized the concept of the Black Belt.
 Motorola University began to offer a course to

train and certify Black Belts.

Six Sigma process model
 DMAIC Measu
re
Define

DMAIC Analyz
Methodol
ogy e

Contro
l
Improv
e

DMAIC MODEL
Step 1: Define
 This is the first phase of the process
improvement. It is similar to the plan phase
of PDCA cycle. During this phase, the six
sigma process is defined.
 Critical to Quality ( CTQ ) – refer to the

product or service characteristics, which are

defined by the customer. They are the key
measurable characteristics whose
performance standard should be met to
satisfy the customer.
Step 2: Measure
 The team identifies the key internal processes
that influence CTQ and measure the defects
currently generated relative to those
processes.
Step 3 : Analyze
 The team discover the causes for defect. They
identify the key variables which cause the
defect or which are most likely to cause or
create a process variation, a cause and effect
diagram can be use.
step 4: Improve
 The team identifies maximum permissible
ranges of the key variables and proposes a
system for measuring deviation of the
variables. The process performance has to be
monitored and measured.
step 5: Control
 In this phase, tools are put in a place to
ensure that the key variables remain within
the maximum permissible ranges
continuously.
Six Sigma implementation
CHAMPIONS

Senior management person assume the role of

a champion. They are to be familiar with basic
and advanced statistical tools. They usually
received one week training. 6 sigma
implementation requires one champion per
business group or manufacturing site.
 MASTER BLACK BELT

They need to be a technical degree holder. They

should be thorough with the basic and advanced
statistical tools.
They typically attend two, one week training
program.
They received black belt training.
An Organization needs to have one Master Black
Belt for every 30 black belt per 100 employees.
 Master black belt are senior level person. The
Champion select the Master black belt. They
are full time employees on six sigma project.
 They assist the champions in identifying

improvement projects.
 They train black belts and green belts and

additionally carry out coordination of six

sigma project. They transfer six sigma
knowledge to black belts.
 BLACK BELT

A black belt is a technical degree holder. The

black belt maybe at the junior level with a five
years or more experience. They should be
thorough with the basic and advanced
statistical tools. They typically four, one week
training programs with three weeks between
session to apply strategies learned to assigned
project.
 There should be one black belt per 100
employees. The black belt working under a
Master Black Belt need not necessarily be in
the same location.
 They are responsible for specific project.
 GREEN BELT

Green Belt should have technical and support

background. They should be familiar with all
the basic statistical tools.
They also attend training session. The green
belt are the process owner.
They execute 6 project as part of their normal
job. They focus on day to day work and assist
black belts in data collection.
Companies adopted six sigma
 Motorola allied signal General Electric
 Sony Honda Maytag
 IBM Raytheon Texas Instrument
 Bombardier Canon Hitachi
 Lockheed martin Polaroid
Just-In-Time
JIT
 A philosophy that focuses attention on
eliminating waste by purchasing or
manufacturing just enough of the right item
Just-In-Time. Zero Inventories are synonym
to Just In Time.
Two principles:
 JI DOKA ( self – actualization) which means
utilizing full capacity of the workforce. This
means no surplus inventories of materials,
sub assemblies or product exist in any
organization. This requires a perfect work
culture with zero defect and excellent
supplier, machinery and infrastructure.
 Production and supply of required number of

parts when needed.

Objectives of Just-In-Time
 Development of optimal process and be
competitive.
 Streamlining of operation and eliminating

unwanted processes.
 Continuous improvement.
 Reducing the level of wasted materials, time

and effort.
 Increasing efficiency of production process.
 Just-in-Time can be practiced by defining and
implementing several concept

 Kaizen
 Team work
 Multi function work force
 Optimizing plant layout
 Eliminating waste
 Reduces set up time
 Kanban
 Material requirement planning
 Involvement of people
 Plant optimization
Benefits of Just-In-Time
 Reduction of waste
 Reduction of Work-in-progress
 Establishing proper customer supplier relationship
 Reduction in lead time
 Less inventory of raw materials
 Improvement in flexibility
 Lower cost and high productivity
 Enhance customer satisfaction
 Improved employee morale
 Reduced space requirements
 Improved productivity and improved quality
Lean Manufacturing
 The International Motor Vehicle Program was
created at MIT USA to study the technique
used in automobile production around the
world. IMVP researcher JOHN KRAFCIK
commented that the Toyota System was lean
because of the following reason:
“ Half the human effort in the factory, half the
manufacturing space, half the investment in
tools, half the engineering hours to develop a
new product in half the time. also, it requires
keeping far less than half the needed inventory
on site, result in fewer defects and produces a
greater and ever growing variety of products.”
 Lean Manufacturing addresses efficient
management of factories.
 It is an application of more efficient method

that greatly minimize delays, reduce cost and

improve quality.
KANBAN SYSTEM
The kanban system was developed by Mr.
Taiichi Ohno, Vice President of Toyota.
OBJECTIVES:

-Reducing cost by eliminating waste/ scrap

 Try to create work site that can respond yo

changes quickly
 Facilitate the methods of achieving and

assuring quality control

 Design work sites according to human dignity
 Kanban stands for Kan-card, Ban –signal.
 The Japanese refer to kanban as parts-

movement system that depends on card and

boxes container to take parts from one work
station to another on production line and
when they are needed so that there are no
storage in the production area.
 A kanban is a card containing all the
information required for the job to be carried
out on a product at each stage along its path
completion and which parts are needed at
subsequent processes.
 A kanban allows a company to use Just-In-

Time production and ordering sytem.

Common types of kanban:
 Withdrawal Kanban

The main function of a withdrawal kanban is to

pass the authorization for the movement of
parts from one stage to another. It gets the
preceding process ad moves them to the enxt
process.
 Production kanban

The main function of the production kanban is

to release an order to the preceding stage to
build the lot size indicated on the card.
Advantages of Kanban
 A simple and understandable process
 Provides quick and precise information
 Low cost associated with the transfer of

information
 Provide quick response to change
 Avoid overproduction
 Minimizes waste
 Control can be maintained
 Delegates responsibility to line worker