©The McGraw-Hill Companies, Inc., 2004

1

7. TQM & MM

©The McGraw-Hill Companies, Inc., 2004

2

The frog in the potThe frog in the potThe frog in the potThe frog in the pot

??

©The McGraw-Hill Companies, Inc., 2004

3

WHY TQM IS ESSENTIAL ?

• ORGANISATION GROWS, EMPLOYEE TOO

GROWS.

•BRINGS ABOUT A CHANGE IN WORK – CULTURE

• RESULTS IN OPENNESS IN THE COMPANY

• INCREASES JOB SATISFACTION

©The McGraw-Hill Companies, Inc., 2004

4

BUSINESS IS LIKE RIDING A BICYCLE!

EITHER YOU KEEP MOVING OR

YOU FALL DOWN!!!!

©The McGraw-Hill Companies, Inc., 2004

5

LET US FACE TODAYS’ REALITY

THE WORLD IS CHANGING FAST

Concern for Human Rights

Growing literate and knowledge oriented

society

Political Realignments

Emergence of new Economic Powers

Concern for Ecology

Global Markets

Govt..

Policy (Liberalisation)

C

H

AO

SHuman

Spirit of Innovators

Information Age & Impact of

Telecom

©The McGraw-Hill Companies, Inc., 2004

6

HOW CHAOS IMPACTS SOCIETY

Changes in the Environment Manifested in New Behaviour of Innovators

WHERE DO WE WANT TO BE ?

Observation / Experiencing by Masses / Society

No Impact/Wait attitudeAnxiety

+ Reactive State

Positive Restlessness + Proactive State

The Common Man Implementers

The Blockers - High Resistance to Change

The Leaders Innovators

©The McGraw-Hill Companies, Inc., 2004

7

CEO MODEL FOR MANAGEMENTEMPLOYEES

CEO

MODEL

OWNERS

• PROFITABLE

GROWTH

• RETURN ON INVESTMENT

CUSTOMERS

• RELIABLE PRODUCTS & SERVICES

•VALUE FOR MONEY

• JOB

SATISFACTION

& GROWTH

• QUALITY OF

LIFE

•ALL THE THREE ARE IMPORTANT TO ANY BUSINESS.

©The McGraw-Hill Companies, Inc., 2004

8

ELEMENTS OF TQM

• PEOPLE INVOLVEMENT

• APPROPRIATE PROCESS / TECHNOLOGY

(COST - EFFECTIVE)

• PROBLEM SOLVING TOOLS / PROCEDURES

(FOR ACHIEVEMENT OF QUALITY CUSTOMER

SATISFACTION)

• CONTINUOUS IMPROVEMENT

©The McGraw-Hill Companies, Inc., 2004

9

TOTAL MEANS ….

• QUALITY OF ALL PRODUCTS & SERVICES

• QUALITY IN ALL FUNCTIONS & ALL INDIVIDUALS

• QUALITY ALL THE TIME

• QUALITY IN ALL ASPECTS OF DOING THE BUSINESS

BODY, MIND & INTELLECT TOGETHER

©The McGraw-Hill Companies, Inc., 2004

10

TQM - A DEFINITION

TQM is an integrated organizational approach

in delighting customers (external & internal)

by meeting their expectations on a

continuous basis through everyone involved

with the organization working on continuous

improvement in all products, services and

processes along with proper problem solving

methodology.

©The McGraw-Hill Companies, Inc., 2004

11

TEI

• LEADERSHIP

• TEAM WORK

• CONSENSUS

• EMPOWERMENT

TQC

• SERVICE CONTROL

• SERVICE QUALITY

• TOOL & TECHNIQUES

• KAIZEN

TWE

• IDENTIFICATION

• ELINIMATION

• VALUE CHAIN

• METHODS

CUSTOMER SATISFACTION

CONTINUOUS IMPROVEMENT

TOTAL QUALITY MANAGEMENT

WORLD CLASS STRATEGY

©The McGraw-Hill Companies, Inc., 2004

12

Total Waste Elimination

[TWE]

©The McGraw-Hill Companies, Inc., 2004

13

COST SUBTRACTION PRINCIPLE

1. COST + PROFIT = PRICE (STATUS QUO)

2. PRICE - COST = PROFIT (SUBSTRACTION PRINCIPLE 1)

3. PRICE - PROFIT = COST (SUBSTRACTION PRINCIPLE 2)

©The McGraw-Hill Companies, Inc., 2004

14

TARGET IS LOWEST COST

&

THE CONSTRAINTS AREPRICE / QUALITY / PROFIT / DELIVERY

WASTE - ELIMINATION

IS TODAY’S SOLUTION TOFAST CHANGING ENVIRONMENT

©The McGraw-Hill Companies, Inc., 2004

15

DEFINITION OF WASTEToyota defines waste as “anything other than the minimum amount of equipment, material, parts and working time absolutely essential to production”.

The Americans define it as “anything other than the absolute minimum resource of industrial machines, manpower required to add value to the product”.

Absolute minimum resources mean, for example

• One supplier

• No people, equipment, or space dedicated to rework

• No safety stock

• No excess lead times

• No people doing jobs that do not add value

©The McGraw-Hill Companies, Inc., 2004

16

SEVEN DEADLY SINS, ACCORDING TO TOYOTA

1.Waste is processing that does not add value to the product. (Ex.: Inspection,testing, clearing, sorting, counting, packaging) 2.All inventory is waste. {Ex. : Stock, work-in-progress inventory) 3.All over-production is waste. (Ex. : Production exceeding demand.)4.Transportation is waste.(Ex.:logistics, product movement, shipping etc.)5.Unneeded motion is waste. (Ex. :unnecessary steps, walking) 6.Waiting and delays are waste. {Ex. :machine downtime, too much test time, unavailability of parts.)7.Defective product is a waste.

It costs 5 times more to get a new customer than it does to keep a current customer.

©The McGraw-Hill Companies, Inc., 2004

17

9 WASTES IN OPERATIONAL ENVIRONMENT

EXCESS OF HUMAN RESOURCES

OVER PRODUCTION

WAITING

MATERIAL MOVEMENT AND HANDLING

INS

PE

CT

ION

&

TE

ST

ING

STARTUP & SET UP

DOWN TIME

LOW QUALITY

INV

EN

TO

RY

©The McGraw-Hill Companies, Inc., 2004

18

• HOUSE KEEPING

• VISUAL CONTROL

• JIDOKA / ANDON / POKAYOKE

• TOTAL PRODUCTIVE MAINTENANCE [TPM]

• SET-UP TIME REDUCTION [SMED- Single minute exchange of die]

• DEMAND PULL + KANBAN

• HANDLING / TRANSPORTATION / LOGISTICS

• SCHEDULING

• BUSINESS PROCESS REENGINEERING

• CYCLE TIME REDUCTION AND TOTAL SUPPLIER PARTNERSHIP

TWE METHODS

©The McGraw-Hill Companies, Inc., 2004

19

HOUSE KEEPING

House Keeping is a process where in everyone in the company is committed and involved in upkeep of the work place and cleanliness of M/c, Material & Information etc., that only needed material and information is kept and fastest accessibility is ensured.

WHAT IS HOUSE KEEPING ?

• Systematic approach to a better workplace.• Involves arrangement, cleanliness, discipline& maintenance of standards.• Assigns a place for everything and ensures everything is in its place. • Is everybody’s responsibility.• Is the starting point of any improvement activity.• Means easy retrieval of information.

©The McGraw-Hill Companies, Inc., 2004

20

PRINCIPLES OF HOUSE KEEPING “5S”

SEGREGATION (SEIR)

ARRANGEMENT (SEITON)

CLEANLINESS (SEISO)

MAINTENANCE OF STANDARDS (SEIKETSU)

DISCIPLINE (SHITSUKE)

©The McGraw-Hill Companies, Inc., 2004

21

HOUSE KEEPING - 6 ‘S’s.

(Indianised!)

1. SORT IN / SORT OUT - Segregate

2. SET LIMITS - Arrange properly

3. SHARE - The Information

4. SHINE - Cleanliness

5. STANDARDISE

6. SELF-DISCIPLINE

©The McGraw-Hill Companies, Inc., 2004

22

WHAT IS VISUAL CONTROL ?

VISUAL CONTROL COMMUNICATES REQUIRED IMPORTANT INFORMATION TO PEOPLE WHO NEED IT

IT GRABS ONE OR MORE OF OUR SENSES IN ORDER TO:• ALERT US TO AN ABNORMALITY• HELP US RECOVER QUICKLY• PROMOTE ADHERENCE AND PREVENTION• ENABLE SUCCESSFUL SELF MANAGEMENT

A VISUAL CONTROL REDUCES ERRORS AND WASTE BY MAKING PROBLEMS VISIBLE. IT IDENTIFIES THE GAP BETWEEN THE STANDARD AND ACTUAL PERFORMANCE AND TELLS US HOW TO RESPOND.

©The McGraw-Hill Companies, Inc., 2004

23

JIDOKA

Reducing dependence of Human presence/supervision

Evolution toward jidoka [automation]

Old Days : Operator handles a large part of the work

Operator watches machine most of the time Pre-Jidoka

©The McGraw-Hill Companies, Inc., 2004

24

ANDON [TROUBLE LIGHT]

JIDOKA : OBSOLETE OPERATOR IS ASSIGNED TO A GREATER CHALLENGE

AUTOMATIC FEED

AUTOMATIC EJECTION

©The McGraw-Hill Companies, Inc., 2004

25

ANDON

INDICATION TO

STOP WORK / LINE OPERATION IN CASE OF ANY PROBLEM

©The McGraw-Hill Companies, Inc., 2004

26

EXAMPLES OF ANDON

1. FIRE ALARM IN AN OFFICE

2. THEFT ALARM IN A BANK

3. MACHINE BREAK DOWN SIGNAL SYSTEM

4. MATERIAL SHORTAGE SIGNAL FROM THE

ASSEMBLY LINE

©The McGraw-Hill Companies, Inc., 2004

27

WHAT IS MISTAKE PROOFING (POKA-YOKE)?

HUMAN ERRORS ARE USUALLY INADVERTENT POKA-YOKE DEVICES HELP TO AVOID ERRORS AND REDUCE

DEFECTS POKA-YOKE HELPS BUILD QUALITY INTO THE PROCESSES

POKA-YOKE

Zero Defects

YOUKEERU : TO AVOID POKA : INADVERTENT ERRORS

POKA-YOKE IS A TECHNIQUE FOR AVOIDING SIMPLE HUMAN ERRORS AT WORK. BY TAKING OVER REPETITIVE TASKS OR ACTIONS THAT DEPEND ON VIGILANCE OR MEMORY, POKA-YOKE CAN FREE A WORKER’S TIME AND MIND TO PURSUE MORE CREATIVE AND VALUE ADDING ACTIVITIES.

©The McGraw-Hill Companies, Inc., 2004

28

POKA - YOKE

1 2 3 4 5 6 7

FILES IN PROPER ORDER

1 2 3 4 5 6 7

FILES NOT IN PROPER ORDER

©The McGraw-Hill Companies, Inc., 2004

29

TOTAL PRODUCTIVE MAINTENANCE

©The McGraw-Hill Companies, Inc., 2004

30

SIX BIG LOSSES IN EQUIPMENT

1. BREAKDOWN DUE TO EQUIPMENT FAILURE2. SETUP AND ADJUSTMENT3. IDLING AND MINOR STOPPAGES4. REDUCED SPEED5. DEFECTS IN PROCESS AND REWORK6. STARTUP LOSS YIELD

OVERALL EQUIPMENT EFFECTIVENESS=

AVAILBILITY X PERFORMANCE RATE X QUALITY RATE

©The McGraw-Hill Companies, Inc., 2004

31

TYPES OF MAINTENANCE

1. PREVENTIVE MAINTENANCE

2. PREDICTIVE MAINTENANCE

©The McGraw-Hill Companies, Inc., 2004

32

The End