anandhavalli.files.wordpress.com · Web viewthe first have been satisfied, nor the third until the second has been satisfied, and so on. Maslow's basic needs are as follows: Self

Subject Code & Name: GE6757 -TOTAL QUALITY MANAGEMENT

Unit II - TQM PRINCIPLES

Leadership - Strategic quality planning, Quality Councils - Employee involvement - Motivation,

Empowerment, Team and Teamwork, Quality circles Recognition and Reward, Performance

appraisal - Continuous process improvement - PDCA cycle, 5S, Kaizen - Supplier partnership -

Partnering, Supplier selection, Supplier Rating.

LEADERSHIP

It is the process of influencing others towards the accomplishment of goals. He triggers tile will to

do, shows the direction and guide the group members towards the accomplishment of goals.

A leader is one who instills purposes, not one who controls by brute force. He strengthens and

inspires the followers to accomplish shared goals.

Leaders

Shape the Organization’s value

Promote the Organization’s value

Protect the Organization’s value and

Exemplifies the Organization values

C H ARA C T E R IS T I C S O F Q UAL I T Y LEA D ER S

1. Give attention to external and internal customers

2. Empower, not control subordinates. Provide resources, training, and work environment to help

them do their jobs

3. Emphasize improvement rather than maintenance

4. Emphasize prevention

5. Encourage collaboration rather than competition

6. Train and coach, not direct and supervise

7. Learn from problems – opportunity for improvement

8. Continually try to improve communications

9. Continually demonstrate commitment to quality

10. Choose suppliers on the basis of quality, not price

11. Establish organisational systems that supports quality efforts

12. They encourage and recognize team effort.

LEADERSHIP CONCEPTS

A leader should have the following concepts1


1. People, Paradoxically, need security and independence at the same time.

2. People are sensitive to external and punishments and yet are also strongly self - motivated.

3. People like to hear a kind word of praise. Catch people doing something right, so you can

pat them on the back.

4. People can process only a few facts at a time; thus, a leader needs to keep things simple.

5. People trust their gut reaction more than statistical data.

6. People distrust a leader’s rhetoric if the words are inconsistent with the leader’s actions.

THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE

1. Be Proactive

2. Begin with the End in mind

3. Put First Things First

4. Think Win – Win

5. Seek First to Understand, then to Be Understood

6. Synergy

7. Sharpen the Saw (Renewal)

LE A D E R S H I P ROL E S

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R O LE O F S E NI O R M A N A G EME N T

1. Management by Wandering Around (MBWA).

2. Strategy of problem solving and decision making.

3. Strong information base.

4. Recognition and Reward system.

5. Spending most of the time on Quality.

6. Communication.

7. Identify and encourage potential employee.

8. Accept the responsibility.

9. To play a role model.

10. Remove road blocks.

11. Study TQM and investigate how TQM is implemented elsewhere.

12. Establish policies related to TQM.

13. Establish ‘priority of quality’ and ‘customer satisfaction’ as the basic policy.

14. Assume leadership in bringing about a cultural change.

15. Check whether the quality improvement programs are conducted as planned.

16. Become coaches and cheer leaders to implement TQM.

17. Generate enthusiasm for TQM activities.

18. Visit other companies to observe TQM functioning.

19. To create a basic of trust, respect and open communication which ensures individual

participation and continuous improvement.

STRATEGIC QUALITY PLANNING

It sets the long term direction of the organization in which it wants to proceed in future. Can be

defined "As the process of deciding on objectives of the organization, on changes on this objective,

on the resource used to obtain these objectives and on the policies that are to govern the acquisition

use and disposition of these resources"

Goals – Long term planning (Eg : Win the war)

Objectives – Short term planning (Eg : Capture the bridge)

Goals should

Improve customer satisfaction, employee satisfaction and process

Be based on statistical evidence

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Be measurable

Have a plan or method for its achievement

Have a time frame for achieving the goal

Finally, it should be challenging yet achievable

SEVEN STEPS TO STRATEGIC QUALITY PLANNING :

1. Customer needs - Discover the future needs of the customer.

2. Customer positioning - Planners determine where the organization wants to be in relation

to the customers.

3. Predict the future – Demographics, economic forecasts, and technical assessments or

projection are tools for predicting the future.

4. Gap Analysis – Identify the gaps between current state and the future state of the

organization. An analysis of core values and concepts are excellent techniques for

pinpointing the gaps.

5. Closing the Gap – A plan has to be developed to close the gap by establishing goals and

responsibilities.

6. Alignment – Once a plan is developed it must be aligned with the vision, mission, and core

valuesand concepts of the organization.

7. Implementation – Resources must be allocated to collecting data, designing changes, and

overcoming resistance to change.

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QUALITY COUNCIL

A quality council is established to provide overall direction.

The council is composed of

Chief Executive Officer

Senior Managers

Coordinator or Consultant

A representative from the Union

Duties of the council are

Develop the core values, vision statement, mission statement and quality policy statement

Develop the strategic long term plan with goals and Annual Quality Improvement Program

with objectives

Create the total education and training plan

Determine and monitor the cost of poor quality

Determine the performance measures

Determine projects those improve the process

Establish multifunctional project and work group teams

Revise the recognition and rewards system

A typical meeting agenda will have the following items

Progress report on teams

Customer satisfaction report

Progress on meeting goals

New project teams

Benchmarking report

Within three to five years, the quality council activities will become ingrained in the culture of the

organization.

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EMPLOYEE INVOLVEMENT

Employee involvement is one approach to improve quality and productivity.

It is a means to better meet the organization’s goals for quality and productivity.

It is the total involvement from every person at all levels in the organization

A S P E C T S O F EM P L O Y EE I NV O L V EME N T

1. Employee motivation

2. Employee Empowerment

3. Teams and Team work

4. Recognition and Reward Schemes

5. Performance Appraisal

1. EMPLOYEE MOTIVATION

It is the process of stimulating people or attempting to influence other to do your will or

accomplish desire goals through the possibility of reward

Improves employee involvement

Reduces absenteeism and increases turn over

Promotes job satisfaction

Theories of Motivation

MASLOW’S HIERARCHY OF NEEDS

Maslow has set up a hierarchy of five levels of basic needs. Beyond these needs, higher levels of

needs exist. These include needs for understanding, esthetic appreciation and purely spiritual needs.

In the levels of the five basic needs, the person does not feel the second need until the demands of

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the first have been satisfied, nor the third until the second has been satisfied, and so on. Maslow's

basic needs are as follows:

Physiological Needs

These are biological needs. They consist of needs for oxygen, food, water, and a relatively

constant body temperature. They are the strongest needs because if a person were deprived

of all needs, the physiological ones would come first in the person's search for satisfaction.

Safety Needs

When all physiological needs are satisfied and are no longer controlling thoughts and

behaviors, the needs for security can become active. Adults have little awareness of their

security needs except in times of emergency or periods of disorganization in the social

structure (such as widespread rioting). Children often display the signs of insecurity and the

need to be safe.

Needs of Love, Affection and Belongingness

When the needs for safety and for physiological well-being are satisfied, the next class of

needs for love, affection and belongingness can emerge. Maslow states that people seek to

overcome feelings of loneliness and alienation. This involves both giving and receiving

love, affection and the sense of belonging.

Needs for Esteem

When the first three classes of needs are satisfied, the needs for esteem can become

dominant. These involve needs for both self-esteem and for the esteem a person gets from

others. Humans have a need for a stable, firmly based, high level of self-respect, and respect

from others. When these needs are satisfied, the person feels self-confident and valuable as a

person in the world. When these needs are frustrated, the person feels inferior, weak,

helpless and worthless.

Needs for Self-Actualization

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Social

Security

Self - Actualization

Esteem

Survival


When all of the foregoing needs are satisfied, then and only then are the needs for self-

actualization activated. Maslow describes self-actualization as a person's need to be and do

that which the person was "born to do." "A musician must make music, an artist must paint,

and a poet must write." These needs make themselves felt in signs of restlessness. The

person feels on edge, tense, lacking something, in short, restless. If a person is hungry,

unsafe, not loved or accepted, or lacking self-esteem, it is very easy to know what the person

is restless about. It is not always clear what a person wants when there is a need for self-

actualization.

The hierarchic theory is often represented as a pyramid, with the larger, lower levels representing

the lower needs, and the upper point representing the need for self-actualization. Maslow believes

that the only reason that people would not move well in direction of self-actualization is because of

hindrances placed in their way by society. He states that education is one of these hindrances.

H E R ZBE R G ’S TWO F AC T O R T H E O R Y

1. Motivation Factor: People are motivated by recognition, responsibility, achievement,

advancement and the work itself. These are called as motivators

2. Dissatisfies or Hygiene Factor: Low salary, minimal fringe benefits, poor working

conditions, ill defined organizational policy, mediocre technical supervision are

dissatisfies which implies they are preventable.

How to devlop a motivated Work Force?

Managers must create an environment for individuals to motivate themselves.

Some lof the concepts to achieve a motivated work force are:

(1) Know themself - Managers must understand their own motivations, strengths and

weaknesses. This can be achieved by appraisal by peers and subordinates.

(2) Know your employee – The Manager must direct his efforts toward satisfying the

employees’ goals and well-being.

(3) Establish positive attitude – Feedbacks must be positive and constructive.

(4) Share the goals – A motivated work force needs well defined goals which address

indivial and organizational needs.

(5) Monitor progress – goal setting includes a road map detailing a journey with periodic

mile stones and individual assignments.

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(6) Develop interesting work – Managers should make the work interesting by making job

rotations, job enlargements, and job enrichment.

(7) Communicate effectively –Employees should be clearly communicated about

knowledge about their work unit rather than “grapevine” information.

Celebrate success – recognizing employee achievements is the most powerful tool in the manger’s

tool box.

EM P L O Y EE W A N TS

1. Good pay factor is normally in the middle of ranking.

2. Normal Wants are interesting work, appreciation, involvement job security, Good pay,

Promotion/growth, Good working conditions, Loyalty to employees, Help with personal

problems arid Tactful Discipline.

AC H I E VIN G A M O T I V A TED W O R K FO RC E BY T H E M A N A G E R S

The building of a motivated work force if for the most part an indirect process. Concepts to achieve a motivated work force are as follows:

1. Know thyself.2. Know your employees.3. Establish a positive attitude.4. Share the goals.5. Monitor progress.6. Develop interesting work.

Job rotation Job enlargement Job enrichment

7. Communicate effectively8. Celebrate success.

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EMPLOYEE SURVEYSEmployee surveys help managers assess the current state of employee relations, identify trends, measure the effectiveness of program implementation, identify needed improvements, and increase communication effectiveness.STEP 1 : The Quality Council to create a multifunctional team

STEP 2 : The Team will develop survey instrument

STEP 3 : Administer the survey

STEP 4 : Results are compiled and analyzed

STEP 5 : Determine areas for improvement

2. EMPLOYEE EMPOWERMENT

It is an environment in which people have the ability, the confidence and the commitment to

take his responsibility and ownership to improve the process and initiate the necessary steps to

satisfy customer requirements within well-defined boundaries in order to achieve

organizational values and goals.

Job Enrichment: Is expanding content of the Job.

Job Empowerment: Is expanding the context of the job.

G ENER A L P R I NC IP LE S O R C H ARAC T ER IS T I C S F O R ' E MP O W ER I N G

E MP L O YEE S

1. Tell people what their responsibilities are.

2. Given the authority equal to the responsibility assigned to them.

3. Set standards of excellence.

4. Give them knowledge information and feed back.

5. Trust them and treat them with dignity and respect.

C O ND I T I O N S T O CRE A T E T H E E MP O W ERE D ENV I R O N M EN T

1. Every one should under stand the need to change

2. The system need to change to new paradigm.

3. The organization must provide information, education, and skill to its employees.

3. TEAMS AND TEAM WORKS

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A team can be defined as a group of people working together to achieve common objectives or

goals. Team work is the cumulative actions of the team during which each member of the team

subordinates his individual interest and opinions for the fulfilling of objectives of the group.

BE N E F I TS O F TE A M W O R K

Improved solutions to quality problems, ownership of solutions, communication and

integration

Objectives – Short Term Planning

Goal – Long Term Planning

T Y P ES O F T E A MS

Process improvement team: Involved in improvement of sub processes or processes. Usually

has 6-10 members. Disbanded when the objective is reached. May include the local supplied

and customer depending on the location

Cross functional teams: 6-10 members temporary team. Members are Top management level

from various functional areas of management. Discuss complex problems and break down into

smaller parts to refer it to various departmental teams for further solution.

Natural work teams: Not voluntary and the total work unit is part of the team. Manager also a

part of the team and the management selects the projects to be improved. Managers must also

ensure that the entire team is comfortable with each other.

Self directed / self managed work team: Extension of natural work teams but here the group

of individuals is empowered not only to do work but manage it. No manger will present but a

coordinator (Which will be normally rotated among members) will be appointed. Additional

responsibilities of the team hiring/ dismissal, performance evaluation, customer relations,

supplier relations, recognition/rewards and training.

C H A R AC TE R I ST I C S O F S UCC E SS F U L TE A MS

1. Sponsor: In order to have effective liaison with quality council, there should be

sponsor. The sponsor is a person from the quality council, he is to provide support to

the organization.

2. Team Charter: A team charter is a document that defines the team’s mission

boundaries, the background of the problem, the team’s authority and duties and

resources. It also identifies the members and their assigned roles – leader, recorder,

time keeper and facilitator.

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3. Team Composition: Not exceeding 10 members except natural work team and self

managed teams.

4. Training: The team members should be trained in the problem solving techniques team

dynamics and communication skills.

5. Ground Rules: The team should have separate rules of operation and conduct. Ground

rules should be discussed with the members, whenever needed it should be reviewed

and revised.

6. Clear objectives, Accountability : Periodic status report should be submitted to

quality council for review

7. Well defined decision procedure, Resources: Adequate information should be

provided

8. Trust by the management, Effective problems solving: Not by hunches or quick fires

9. Open communication, Appropriate Leadership, Balanced participation and

Cohesiveness

TE A M MEMBER R O LE

Leader, Facilitator (One who helps the team gets started in the stages), Recorder, Time keeper

and Team member.

TEAM LEADER

Ensures the smooth and effective operation of the team.

Facilitates the team process.

Serves as a Contact Point.

Organizes the implementation of changes.

Prepares the meeting agenda.

FACILITATOR

Supports the leader.

Focuses on the team process.

Acts as a resource to the team.

Provides feedback to the team.

RECORDER

Documents the main ideas of the team’s discussion, the issues raise, decisions made,

action items etc.

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Presents the documents and distributes the MOM.

Participates as a team member.

TIMEKEEPER

Ensures that the team maintains the schedule.

Participates as a team member.

TEAM MEMBER

Contributes best, without reservation.

Respects other people’s contributions.

Listens carefully and asks questions.

Works for consensus on decisions.

Supports the decision of the team.

Understands and is committed to the team objectives.

Respects and is tolerant of individual differences.

Acknowledges and works through conflict openly.

Carries out assignments.

D E C I S I O N M A KI N G MET HO D S

Non decision, Unilateral decision, Handclasp decision (Two members with a good idea of the

subject decide), Minority-rule decision, Majority rule decision, Consensus (Not everyone

need to accept, But everyone should be willing to implement)

ELEME N TS O F E FF E C T I V E TE A M W O R K

Regular scheduling with a fixed time limit, purpose, role and responsibilities, activities,

decision, results and recognition.

TE A M M A N A G EME N T W H EEL

To make a lean more effective a team management wheel has been evolved. The activities are

advising, innovating, promoting, developing, organization, producing, inspecting, maintaining

and linking. The roles of wheel are advisor, explore, organizer and controller.

ST A G ES O F TE A M D E V EL OP ME N T

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Forming stage- Initial stage with only group of individuals and no team work. Team

purpose, roles are created.

Storming Stage -Initial agreement roles are challenged. Hostilities, emerge which may be

resolved

Norming Stage-Formal informal relations get established.

Performing Stage -Team operates in a successful manner with trust, openness, healthy

conflict and decisiveness among the members.

Maintenance stage – Functioning should not deteriorate with time Q

Evaluating Stage – Evaluating team performance

TEN COMMON PEOPLE PROBLEMS

Floundering, overbearing participants, Dominating participants, reluctant participants,

unquestioned acceptance of opinions as facts, rush to accomplish, Attribution, Discounts and

plops, Wanderlust, Feuding team members

BARRIERS TO TEAM PROGRESS

Insufficient training. Incompatible rewards and compensation. First-line supervisor resistance. Lack of planning. Lack of management support. Access to information systems. Lack of Union support. Project scope too large. Project objectives are not significant. No clear measures of success. No time to do improvement work.

4. RECOGNITION AND REWARD

Recognition is a process whereby management shows acknowledgement (Verbal or written) of

an employee outstanding performance. Recognition is a form of employee +ve motivation.

Reward is a tangible one such as increased salaries, commission, cash bonus, gain sharing etc.,

to promote desirable behavior. It can be even theatre tickets, dinner for two, a small cash

awards, etc.,

The employees are recognized to improve their morale, show the company's appreciation for

Better Performance, create satisfied and motivated workplace and stimulate creative efforts.

INTRINSIC VS EXTRINSIC REWARDS14


INTRINSIC REWARDS

Related to feeling of accomplishment or

self worth

EXTRINSIC REWARDS

Related to pay or compensation issues

1. Non monetary forms of recognition to acknowledge

achievement of quality improvement goals

2. Celebrations to acknowledge achievement of quality

improvement goals

3. Regular expression of appreciation by managers and

leaders to employees to acknowledge achievement of

quality

improvement goals

4. 360o performance appraisals feedback from co-

workers, subordinates or customers is incorporated into

performance appraisal

5. Formal suggestion system available for individuals to

make quality improvement suggestion

6. Developmental based performance appraisals

7. Quality based promotion

1. Profit sharing

2. Gain sharing

3. Employment security

4. Compensation time

5. Individual based performance systems

6. Quality based performance Appraisals

STEVE SMITH’S TWENTY DIFFERENT WAYS TO RECOGNIZE THE

EMPLOYEES

Send thank letter whenever possible

Develop behind the scenes award

Create the best ideas of the year booklet

Feature the quality team of the month and put their picture in prominent place

Honor peers by recognizing them

Allow people to attend meetings in your name when you are not available

Involve teams with external customers and suppliers by visiting them

Invite a team for coffee or lunch whenever possible

Create a visibility will displaying posters, pictures, to thank the contributions of

employee

Credit the team to higher authorities when their ideas are accepted

Take interest in employee’s development

Get the team picture in company newspaper

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Mention the ideas of others during your meetings, so that they are recognized

Write a letter of praise to contributed team member and copy to boss

Ask people to help you with the project which is difficult but challenging

Send a team to special seminars, workshops to cover topics they are really interested in

Ask your boss to send a letter of acknowledgement and thanks

Honour outstanding contribution with awards

Have a stock of small gifts to give to people on the spot whom you catch doing things

right

Promote or nominate for promotion, those people who contribute most

5. PERFORMANCE APPRAISAL

It is a systematic and objective assessment or evaluation of performance and contribution of

individual.

Needs

Identifying employees for salary revision, promotion, transfer, demotion, lay off

To determine training needs of employee

To take organizational inventory of people

To know personal strength and weakness of individuals

To validate the selection procedure

IMPORTANCE OF PERFORMANCE APPRAISALS :

1. It is necessary to prevail a good relationship between the employee and the appraiser.

2. Employee should be informed about how they are performing on a continuous basis, not just at

appraisal time.

3. The appraisal should highlight strength and weakness and how to improve the performance.

4. Employee should be allowed to comment on the evaluation and protest if necessary.

5. Everyone should understand that the purpose of performance appraisal is to have employee

involvement.

6. Errors in performance evaluations should be avoided.

7. Unfair and biased evaluation will render poor rating and hence should be eliminated.

BENEFITS OF EMPLOYEE INVOLVEMENT :

Employee involvement improves quality and increases productivity because

Employees make better decisions using their expert knowledge of the process

Employees are better able to spot and pin-point areas for improvement.

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Employees are better able to take immediate corrective action.

Employee involvement reduces labour / management friction.

Employee involvement increases morale.

Employees have an increased commitment to goals because they are involved.

APPRAISAL FORMATS

Ranking (From highest to lowest), Narrative (Telling strength and weakness), Graphics

(Graphical display of duties by rating), Forced choice (Placing each employee with a

predetermined % like Good 25%, Poor 10% etc)

APPRAISAL PROCES

BENEFITS OF PERFORMANCE APPRAISAL

1. Provides a feedback to identify employees for salary revision, transfer, lay-off

2. Helps in determining training needs of employee

3. Provides organization inventory of people

4. Helps to evaluate personal strength and weakness of individuals

5. To validate the selection procedure.

6. Provide the basis for promotion, demotion etc

7. May provide some information on external factors like family circumstances, health,

financial or personal matters that may be affecting the performance

CONTINUOUS PROCESS IMPROVEMENT (CPI)17


TQM has been defined as a philosophy based on quest for progress and continual

improvement in the areas of cost, reliability, quality, innovation, efficiency and business

effectiveness

It is a continuous learning process which never stops and is cyclic and iterative.

To do CPI, we have different approaches such as Juran Trilogy, PDSA cycle, Kaizen and 5S

concept.

IN P U T / O U T P U T P R O C E S S M O D EL

The process refers to business and production activities of an organization. Example Purchasing,

Engineering, Marketing and Accounting

B A S I C W A Y S TO I M P R O V E P R O C ESS To reduce resources To reduce errors To meet exceed customer needs To make process safer To make process more satisfying to the person doing it.

JURAN TRILOGY

Dr. Joseph M. Juran, who wrote a 1900 page text book on QUALITY CONTROL HANDBOOK

and other contributions to the total quality. Juran divides Quality Management into,

Quality Planning

Quality control

Quality improvement.

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Q UA L I T Y P L AN N IN G

Planning process is crucial for improvement to become continuous activity with a long term view:

The Juran Quality Planning road Map as given below.

Existing & Established Product, Process & Goals → Identify Customers → List of customers→

Discover customers needs → Customer’s needs (in their language) → Translate →

Customer's needs (in our language) → Establish Unit of measure →Units of measure →

Establish measurement → Customer needs (in units of measure →Existing Product and

process → Develop Product → Product features → Optimize product design → Product goals →

Develop process →Process features → Optimize: Prove process capability →Process ready

to transfer → Transfer to operation →Process ready to produce

Q UA L I T Y C O N T R O L

At this stage, control processes are designed to meet and ensure the goals set in the planning

stage. Juran's Quality control Process as shown.

Choose control subjects, decide items to control → Choose units of measurement → Establish

standards of performance → Measure actual performance → Note difference

between performance and standard → Take action to close the performance gap

.

Q UA L I T Y I M P R O V EME N T

To find and remedy the basic causes of poor quality - Aims to higher levels of performance that are

significant to current level- Juran's ten steps to improvement are

Build awareness of the need and opportunity for improvement

Set for improvement

Organize to reach the goals

Provide training

Carry out project to solve problems

Report progress

Give recognition

Communicate results

Keep score

Maintain momentum by making annual improvement part of the regular system processes

of company

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J U R A N T R I L OG Y D IA GR A M

It describes the way in which Juran's trilogy is designed to the cost of quality over time which

is a cyclic and ever-ending continuous improvement approach. - The sporadic waste should be

identified and corrected through whereas the chronic waste requires an improvement process

S U MM A R Y O F J U RAN ’ S Q UA L I T Y T RI L OG Y

Quality Planning Quality Control Quality Improvement Identify the customers Determine the

customer’s needs Develop product features Establish quality goals Develop a process Prove process capability

Choose control subjects Choose unit of

measurement Establish measurement

and standard of performance

Measure actual performance

Interpret the difference Take action on the

difference

Prove need for improvement

Identify specific projects for improvement

Organize to guide the projects

Organize for diagnosis for discovery of cause

Diagonise to find the causes

Provide remedies Prove that remedies are

effective under operating conditions

Provide for control to hold gains

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PDSA CYCLE

It is also called as Deming Cycle or Deming Wheel. Developed by Walter A. Shewart and popularized by Edward Deming

PLAN

Identify the problem, plan and opportunities

Observe and analyze

Isolate the real causes

Determine corrective actions

DO

Prepare

Apply

Check application

STUDY / CHECK

Check results

Compare with goals

ACT

Standardize and consolidate

Prepare next stage of planning

BE N E F I TS O F P D SA C YC LE

Daily routine management for the individual and or the team

Problem solving process

Project management

Continuous development

Vendor development

Human resource management

New product development

Process trials21


THE PDCA CYCLE

PROBLEM SOLVING METHOD

1. IDENTIFY THE OPPORTUNITY

Identify the Problem

Pareto analysis of external alarm signals.

Pareto analysis of internal alarm signals.

Proposals from key insiders.

Proposals from suggestion schemes.

Field study of user’s needs.

Comments of key people outside the organization.

Customer surveys.

Employee surveys.

Brainstorming by work groups.

Form the Team

Team should be selected.

Goals and milestones are established.

Define the Scope.

Criteria for a good problem statement is as follows

It clearly describes the problem.

It states the effect.

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It focuses on what is known, unknown etc.

It emphasizes the impact on the customer.

2. ANALYZE THE CURRENT PROCESS

The objective is to understand the process and how it is currently performed.

Step 1 : The team to develop a process flow diagram.

Step 2 : The target performance measures are defined.

Step 3 : Collection of all available data and information.

Common items of data and information are

1. Customer information 2. Design information

3. Process information 4. Statistical information

5. Quality information 6. Supplier information

3. DEVELOP THE OPTIMAL SOLUTION(S)

This phase has the objective of establishing potential and feasible solutions and recommending the

best solution to improve the process.

Creativity plays the major role, and brainstorming is the principal technique.

There are three types of creativity:

Create new processes

Combine different processes

Modify the existing process

4. IMPLEMENT CHANGES

This phase has the objective of preparing the implementation plan, obtaining approval and

implementing the process improvements.

Approval of the quality council.

Obtain the advice and consent of departments, functional areas, teams, individuals etc.

Monitor the activity.

5. STUDY THE RESULTS

This phase has the objective of monitoring and evaluating the change by tracking and studying the

effectiveness of the improvement efforts.

6. STANDARDIZE THE SOLUTION

Institutionalize by positive control of the process.

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The quality peripherals – the system, environment and supervision must be certified.

Operators must be certified.

7. PLAN FOR THE FUTURE

The objective is to achieve improved level of process performance.

Regularly conduct reviews of progress by the quality council.

Establish the systems to identify area for future improvements.

Track performance with respective internal & external customers.

TQM tools and techniques are used to improve quality, delivery and cost.

5S HOUSE KEEPING

This is a house keeping technique used to establish and maintain a productive and quality

environment in an organization. This method is invented in Japan which will give safer, more

efficient and more productive operation results in boosting of morale of workers, job involvement

and satisfaction and ownership of their responsibilities.

There can be no TQM without 5-S.

A dirty factory cannot produce quality products.

Clutter hides problems. A neat workplace promotes easy discovery of abnormalities.

JAPANESE TERM ENGLISH EQUIVALENT MEANING

SEIRI TidinessCleaning – Throw away all rubbish unrelated materials in the work place

SEITON OrderlinessArranging – Set everything in proper place for quick retrieval and storage

SEISO CleanlinessSweeping – Clean the work place, every thing with out fail

SEIKETSU StandardizationMaintaining Cleanliness – Standardizing the way of maintaining cleanliness

SHISUKE Discipline

Self Discipline – Practice‘5S’ daily. Make it a way or life. This also means commitment

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R EL A T I O N S H I P BETWEEN V A RI OU S 5S

O BJE C T IV E S O F 5S

To create a neat and clean work place

To create systemize day to day working

To improve work efficiency

To standardize work practice

To improve work discipline

To improve the quality of work and products

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Consequences of not practicing SEIRI : The unwanted clutters up the place and the wanted are hard to find. Every place can only hold so much. Clutter sometimes causes misidentification.

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Consequences of not practicing SEITON :

Things are seldom available when needed. Items are “lost’ in stores. Items – defectives and good ones get mixed up. Accidents or near-accidents occur due to clutter. Visual control of the shop floor is not possible. Sometimes, production is lost because an item required is available but cannot be found.In some offices, Critical Excise records or tax records may not be traceable. This can lead to finance loss, prosecution or embarrassment.

Consequences of not practicing SEISO : Most machines are affected by dust & dirt and hence their performance may go down. Dust and dirt on products, materials, packing boxes etc. will affect either their performance

quality or their aesthetic look. Unpleasant to work in.

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Consequences of not practicing SEIKETSU : Good health and safety require the practice of Seiketsu. Hazardous chemicals, dusty chemicals, fumes etc. can make it a dangerous place to work in. Washing thoroughly and cleaning a place makes the workplace pleasant. Personal hygiene is essential for healthy workforce.

The Fifth S : SHITSUKI : DISCIPLINE

Discipline especially with regard to safety rules and punctuality

Consequences of not practicing SEIKETSU : If discipline is not practiced, then the first 4-S would backslide. Lack of Shitsuki means not following the standards. Then, all activities related to safety and

quality will be affected.

F AC T O R S I N I M P LEME N T IN G 5S

Participation by all - Should be understood and practiced by all employees

Top management commitment – CEO and Senior management team need personally

commitment practice and supervise the program

Should be self sustaining – Banners, slogan posters and new tutors should be fully utilized to

draw attention of every one

Review the program – Every month group of people from different areas of responsibilities

plan and evaluate each zone

BE N E F I TS I N I M P LEME N T IN G 5S

Work place becomes proud place to work

Results in good image and- generates business

Operations become easier and safer in work place

Disciplined people

Improve productivity' and morality

Better quality awareness

More usable space

Less Material handling time

Less production cost

Preventive maintenance

High employee involvement

Less accidents

More time to improvement.

KAIZEN28


Japanese - word -means continuous improvement or improvement over improvement - continuous

improvement in small increments that make the process more efficient, effective, controllable and

adequate.

KAIRYO

Western philosophy - improvement through innovation, i.e., improvement in one or two great jumps

The Kaizen improvement focuses on the use of : Value – added and non – value work activities. Muda, which refers to the seven classes of waste – over-production, delay, transportation,

processing, inventory, wasted motion, and defective parts. Principles of motion study and the use of cell technology. Principles of materials handling and use of one – piece flow. Documentation of standard operating procedures. The five S’s for workplace organization. Visual management. Just – in – time principles. Poka – Yoke. Team dynamics.

KAIZEN VS KAIRYO

KAIZEN KAIRYO

It is achieved through conventional know

how and PDCA

It is obtained by technological or

organizational break through

It is employee oriented It is technology oriented

It requires little investment but great effort to

maintain

It requires large investment but little effort

to maintain

It involves everybody in the company It involves a selected few experts and

researchers

It requires recognition of effort before results It is motivated by expected results

FEATURES OF KAIZEN

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1. Value added and non value added work activities

2. Muda, which refers to the seven classes of wastes. Wastes are over production, delay,

transportation, processing, inventory, wasted motion, and defective parts

3. Principles of motion study and the use of cell technology

4. Principles of materials handling and use of one piece flow

5. Documentation of standard operating procedures

6. The 5S for workplace organization, which are five Japanese words that mean proper

arrangement (SEIRI), Orderliness (SEITON), Personal cleanliness (SEISO), Standardization

(SEIKETSU) and Discipline (SHITSUKE)

7. Visual management by means of visual display that everyone in the plant can use for better

communication

8. Just in time principle to produce only the units in the right quantities at the right time and

with the right resources

9. Poka-Yoke to prevent or detect errors

10. Team dynamics, which include problem solving, communication skills and conflit resolution

ROLE OF PEOPLE IN IMPLEMENTING KAIZEN

1. Top management must be committed to introducing Kaizen as a company strategy

2. The executives just below top management must formulate and carry out Kaizen goals

according to guidelines from top management

3. Supervisors like everyone else must use Kaizen in their activities

4. Workers must be involved in Kaizen through the suggestions systems and small group

activities

SUPPLIER PARTNERSHIP

A commitment to continuous quality improvement cannot be translated into reality without treating

supplier as partner.

The suppliers should be treated as partners to achieve the same quality level as attained within the

organization.

The following forces need Supplier Partnership to improve quality, reduce costs and increase

market share.

Deming Philosophy (Deming’s 4th point)

Just-in-time

Continuous process improvement

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ISO 9000

P RI N CI P LES O F C U ST O MER / S U PP L I ER R EL A T I O N

Dr. Kaoru Ishikawa has given ten principles of customer-supplier relations. They are

1. Both the customer and the supplier are fully responsible for the control quality Both the

customer and the supplier should be independent of each other and respect each other’s

independence

2. The customer is responsible for providing the supplier with clear and sufficient requirements

so that the supplier can know precisely what to produce

3. Both the customer and the supplier should enter into an non adversarial contract with respect

to quality, quality, price, delivery method and terms of payments

4. The supplier is responsible for providing the quality that will satisfy the customer and

submitting necessary data upon the customer’s request

5. Both the customer and the supplier should decide the methods to evaluate the quality of the

product or service to the satisfaction of both parties

6. Both the customer and the supplier should establish in the contract the method by which they

can reach an amicable settlement of any disputes that may arise

7. Both the customer and the supplier should continually exchange information, sometimes using

multifunctional teams, in order to improve the product or service quality

8. Both the customer and the supplier should perform business activities such as procurement,

production and inventory planning, clerical work and system so that an amicable and satisfactory

relationship is maintained

9. When dealing with business transactions both the customer and the supplier should

always have the best interest of the end user in mind

SUPPLIER PARTNERING

It is defined as a continuing relationship, between a buying firm and supplying firm, involving a

commitment over an extended time period, an exchange of information, and acknowledgement of

the risks end rewards of the relationship.

BE N E F I TS O F S U PP L I ER PA R T N E R IN G

Improved Quality

Reduced cost

Increased Productivity

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Increased efficiency

Increased market share

Increased opportunity for innovation

Continuous improvement of products/services.

The three key elements to a partnership relationship are

Long term commitment

Trust

Shared Vision

S U PP L I ER S O UR C IN G

Sole sourcing - only one supplier for the entire organization. This may be forced. to happen

because of patent, technical specification, raw material location, monopolistic supplier

Multiple sourcing - For a single item having two or more supplier, resulting in better quality,

better service at lower cost

Single sourcing- use of one supplier to one item when several sources are available leading

to long-term partnering relationship.

BASIS OF SUPPLIER SELECTION

Cost, Quality, Delivery, Reliability, Management compatibility, Goal congruence and Strategic

direction of supplier firm.

ST A G E I N S U PP L I ER SEL E C T I O N & E V A L UA T I O N

Survey stage, enquiry stage, negotiation and selection stage, experience stage.

The supplier should understand and appreciate the management philosophy of the

organization.

The supplier should have a stable management system.

The supplier should maintain high technical standards and have the capability of dealing

with future technological innovation.

The supplier should provide those raw materials and parts required by the

purchaser and those supplied meet the quality specifications

The supplier should have the capability to produce the amount of production needed

The supplier should not breach the corporate secrets

The supplier should be easily accessible in terms of transportation and communication

The supplier should be sincere in implementing the contract provisions.

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The supplier should have an effective quality system and improvement program such as

ISO / QS 9000.

The supplier should be renowned for customer satisfaction.

SUPPLIER RATING

Also referred as score card system, is used to obtain and overall rating of supplier performance

based on quality, price, performance and production capability

Supplier Rating is done

To obtain an overall rating of supplier performance.

To communicate with suppliers regarding their performance.

To provide each supplier with a detailed and true record of problems for corrective action.

To enhance the relationship between the buyer and the supplier.

OBJECTIVES OF SUPPLIER RATING

Obtain an overall rating of supplier performance – ensure completer communication with suppliers

- provide each supplier about the details of problems for corrective action and - maintain and

improve the partnering relationship between the customer and the supplier.

EXAMPLE SUPPLIER SCORECARD

THREE BASIC FACTORS FOR SUCCESSFUL SUPPLIER RATING SYSTEM

An internal structure to implement and sustain the rating program

A regular and formal review process

A standard measurement for all the suppliers

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RELATIONSHIP DEVELOPMENT

Refers to maintaining the relationship development through the various techniques discussed

previously. For maintainability and growth of relationship the following key factors are considered

Inspection – 100% inspection, Sampling, Audit and identify check

Training

Team approach – Formation of customer supplier team in all the functional areas

Recognition – Customers can recognize suppliers by non monetary / monetary rewards

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