Ge 6757-TQM

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GE 2022-TQM IV/VII MECHANICAL ENGINEERING
TABLE OF CONTENT
S.No Description Page No.

UNIT I INTRODUCTION
1.1 Introduction 1
1.1.1 Prerequisite Discussions of Quality 1
1.2 Concept 2
1.2.1. Need for Quality 2
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1.2.2. Evolution of quality 2
1.2.3. Defining quality 3
1.3 Dimensions of quality 3
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1.3.1 Dimensions of service quality 4
1.3.2 Definition of TQM 4
1.4 Characteristics Of TQM 4
1.4.1 Basic Concepts of TQM 4
1.5 TQM Frame work or (ELEMENTS OF TQM) 5
1.6
1.7
1.8
1.9
Principles of tqm
Benefits of tqm
Contributions of Deming
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Obstacles (barriers) in implementing tqm
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1.10 The juran trilogy 8
1.11 Contributions of Crosby 9
1.11.1 Crosby’s fourteen points 9
UNIT II TQM PRINCIPLES
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2.1 Leadership 10
2.2 Characteristics for leadership 10
2.3 Leadership roles 10
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2.4 Leaders 11
2.5 Characteristics of quality leaders 11
2.6 Leadership concepts 11
2.7 The 7 habits of highly effective people 11
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2.8 Role of senior management 12

2.9 Quality council 12
2.10 Strategic quality planning 13
2.11 Seven steps to strategic quality planning 13
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2.12 Quality statements 15

2.13 Customer satisfaction 18
2.14 Customer complaints 19
2.15 Tebouls Model of customer satisfication 21
2.16 Customer retention 23
2.17 Employee involvement 23
2.18 Motivation 23
2.19 Maslow’s hierarchy of needs 24
2.20 Herzberg’s two factor theory 25
iii E.R.SIVAKUMAR,ASSO.PROF 2015-16

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2.21 Empowerment 28
2.22 Job enrichment vs job empowerment 28
2.23 Teams 29
2.24 Types of teams 30
2.25 Characteristics of successful teams 30
2.26 Recognition and reward 34
2.27 Effects of recognition and reward system 37
2.28 Performance appraisal 37
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2.29 Benefits of employee involvement 37
2.30 Continuous process improvement 38
2.31 The pdca cycle 41
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2.32 5-s: housekeeping 45
2.33 Implementing 5-s 48
2.34 Kaizen 49
2.35 Kaizen cycle 49
2.36 Supplier partnership 50
2.37
2.38
2.39
2.40
Partnering
Sourcing
Supplier selection
Supplier rating
UNIT III
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TQM TOOLS & TECHNIQUES - I
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3.1 Seven tools of quality 55
3.1.1 Prerequisite discussion 55
3.1.2 Concept 55
Flow charts
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3.2 55
3.3 Applications 56
3.4 Histogram 56
3.5 Cause and Effect Diagram 57
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3.6 Check sheet 58

3.7 Scatter diagram 59
3.8 Control charts 60
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3.9 Pareto charts 60

Glossary 61
1. References 61
2. New Seven management Tools 61
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3. Concept 62
4. Affinity diagram 62
5. Procedure 62
6. Applications 65
7. Relations diagram 66
8. Tree diagram 66
9 Matrix diagram 68
10 Matrix data analysis diagram 69
11 Process decision programme chart 72
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12 Arrow diagram 73
13 Six sigma 75
14 Prerequisite discussion 75
15 Concept 76
16 Dmaic 76
17 Dmadv 77
18 Significance 77
19 Application 77
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20 Companies which have adopted six sigma 77
21 Glossary 78
22 References 78
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23 Benchmarking 78
24 Benchmarking concept 78
25 Reasons to benchmark 79
26 Process of benchmarking 79
26.1 Decide what to benchmark 79
26.2
26.3
26.4
26.5
26.6
Understand current performance
Plan
Types of benchmarking
Study others
Learn from the data
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26.7 Using the findings 80
27 Pitfalls and criticisms of benchmarking 80
27.1 Significance 80
27.2 Application 80
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28 Failure mode and effects analysis (fmea) 81

28.1 Types of FMEA 82
28.2 Benefits of fmea 82
28.3 Fmea documentation 84
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28.4 Risk priority number (rpn) 10 85

28.5 Significance 85
28.6 Application 85
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28.7 Glossary 88
28.8 References
Unit IV TQM Tools and Techniques - II
4.1 Prerequesite discussion 90
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4.2 Concept 90
4.3 Improve customer satisfaction 90
4.4 Applications 91
4.5 Quality function deployment 91
4.6 Qfd team 91
4.7 House of quality 94
4.8 The steps in building a house of quality are 94
4.9 The qfd process 95
4.10 Application 96
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4.11 Taguchi’s quality loss function 96

4.12 Nominal – the – best 97
4.13 Smaller – the – better 98
4.14 Larger – the – better 99
4.15 Total productive maintenance 99
4.16 What is Maintenance and what is Maintenance Management? 100
4.17 Maintenance development stages 100
4.17.1 Break-down (corrective) maintenance 100
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4.17.2 Preventive maintenance (1951) 100
4.17.3 Periodic (routine) maintenance (Time based maintenance - TBM) 101
4.17.4 Predictive maintenance 101
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4.18 What is Total Productive Maintenance (TPM)? 101
4.19 Why TPM / The objective of TPM 102
4.20 Six core principles of TPM 102
4.21 Direct Benefits of TPM 103
4.22 Indirect benefits of TPM 103
4.23
4.23.1
4.23.2
4.23.3
4.23.4
Preparatory stage
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Steps in introduction of TPM in a organization
TPM introduction in the organization

Initial education and propaganda for TPM
Setting up TPM and departmental committees
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4.23.5 Establishing the TPM working system and target 103
4.23.6 A master plan for institutionalizing 104
4.24 Introduction stage 104
4.25 Implementation 104
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4.26 Institutionalising stage 104

4.27 Tpm – pillars 105
4.28 Quality costs 110
4.29 Elements of qualitycost 110
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4.30 Analysis of quality costs 110

4.30.1 Prevention cost 110
4.30.2 Appraisal cost 111
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4.30.3 Internal failure cost 111

4.30.4 External failure cost 111
4.31 Analysis techniques of quality cost 111
4.32 Trend analysis 111
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4.33 Pareto analysis 112

4.34 Index numbers 113
4.35 Performance measures 113
4.36 What should be measured? 114
4.36.1 Human resources 114
4.36.2 Customers 114
4.36.3 Production 114
4.36.4 Research and Development 114
4.36.5 Suppliers 114
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4.36.6 Marketing / sales 114

4.36.7 Administration 114
4.37 Strategy 114
4.38 Performance measure presentation 115
Unit V Quality Systems

5.1 Iso 9000:2000 116
5.2 Benefits of iso 9000 standards 117
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5.3 CLAUSES (ELEMENTS) OF ISO 9000 (During the year 1987) 118
5.4 CLAUSES (ELEMENTS) OF ISO 9000 (During the year 2000) 119
5.5 Implementation of quality management system 120
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5.6 Pitfalls of successful implementation 120
5.7 Documentation 120
5.8 Quality auditing 121
5.9 Purpose of quality audit 121
5.10 Types of quality audit 121
5.11
5.12
5.13
5.13.1
5.13.2
General requirements
Environmental policy
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Iso 14000 – environmental management system
Environmental management system (ems)
Requirement of iso 14001
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5.13.3 Planning 123
5.13.4 Implementation & operation 123
5.13.5 Checking & corrective action 123
5.13.6 Managenment review 123
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5.14 Benefits of environmental management system 124

5.14.1 Global benefits 124
5.14.2 Organizational benefits 124
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GE 2022 TQM IV/VII MECHANICAL ENGINEERING
UNIT – I
1.1 INTRODUCTION
1.1.1 PREREQUISITE DISCUSSIONS
Quality is in its essence a way of management of the organization.

Quality is conformance to customer requirements. The requirements have many dimensions. The
number of quality experts also called quality gurus contributed to the evolution of quality.
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AN INTRODUCTION:
A name itself is sufficient to describe everything but a bit more clarification will add to a base for the
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description. Total quality management is a management’s approach towards the quality, it can be in
regard to products, customer satisfaction and employees satisfaction. The concept of TQM was
developed by an American W. Edwards Deming and i.e. why it is called as Deming’s concept of
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TQM .He introduced this concept for improving the quality of various products and services. Earlier
it was just related with the quality of products which a organization is producing but now other
concepts like marketing, finance design, customer service has also joined the area. Which means that
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now good numbers of things are there to manage. TQM works on one belief that mistakes can be
avoided and defects can be prevented. And management should believe in watching each and every
step.
TQM is now a day’s called as TPM (total productivity management) and an organization
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needs to consider ABCD for the effective application of TQM where A stands for accident cure , B
stands for breakdown , C stands for cost reduction and D stands for damage. This policy of ABCD is
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in relation to product and if TQM needs to be introduced a positive attitude from the side of
management and employees is required and then a collective effort will come up. TQM should give
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chance for unleashing employee’s creativity and potential. The aim of TQM is to reduce variations in
quality of the products as well as in the working of whole organization. For the successful
implementation of TQM, an organization must consider the commitment from all the level of
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organization. A concept of Six sigma is a part of TQM. It is a strategy developed by Motorola and it
helps to detect the defects and to remove them.
TQM talks about the satisfaction of customer, supplier, employees etc. and it requires
continuous improvement. If the workers of an organization are efficiently working then their morale
will go up. TQM works effectively if the organization works in a family manner. Here management is
like a father, employees are the children and manager is like mother and as father and mother takes
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care for their home collectively the same way , management and managers are supposed to take care
for their organization with the help of tool called TQM. Total quality management is called total
because entire organization is involved, Quality means degree of excellence. And management in
literal sense means getting things done by others. In a TQM effort, all members of an organization
participate in improving processes, products, services and the culture in which they work. The earlier
introduced quality management concept is now taken over by Total quality management. To have
effective TQM the first requirement is strong internal motivation and emotional involvement for
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implementation. So the concept of TQM talks about adopting the new policy, creating quality
products, eliminate defects, estimate for breakdown, accidents etc . Hence TQM should be purpose
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driven so first the whole organization should be willing to accept the change then only TQM can
actually affect the organization in a positive way.
1.2. CONCEPT
1.2.1. Need for quality:

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The need for quality was felt, during World War II due to the unprecedented need for manufacture
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goods. From them on methodologies for assuring quality in products and services evolved
continuously finally lead to TQM.
1.2.2. Evolution of quality (or) GURUS OF TQM:

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SHEWHART - Control chart theory

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PDCA Cycle
DEMING - Statistical Process Control
JURAN - Concepts of SHEWHART
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- Return on Investment (ROI)

FEIGANBAUM - Total Quality Control
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- Management involvement
- Employee involvement
- Company wide quality control
ISHIKAWA - Cause and Effect Diagram
- Quality Circle concept
CROSBY - “Quality is Free”

- Conformance to requirements
TAGUCHI - Loss Function concept
- Design of Experiments
1.2.3. DEFINING QUALITY:

Quality is fitness for use
Quality is conformance to requirements
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Quality is the totality of features and characteristics of a product or service that bear on its ability to
satisfy stated and implied needs of customer.
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Quality can be quantified as follows
Q=P/E
where,
Q
P
E
=
=
=
Quality
Performance
Expectation
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1.3. DIMENSIONS OF QUALITY:
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Dimension Meaning and Example
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Performance Primary product characteristics, such as the brightness of the picture
Features Secondary characteristics, added features, such as remote control

Conformance Meeting specifications or industry standards, workmanship
Reliability Consistency of performance over time, average time of the unit to fail
Durability Useful life, includes repair
Service Resolution of problems and complaints, ease of repair
Response Human – to – human interface, such as the courtesy of the dealer
Aesthetics Sensory characteristics, such as exterior finish
Reputation Past performance and other intangibles, such as being ranked first
1.3.1 Dimensions of service quality
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Reliability Refers to the dependability of the service providers and their ability to keep
their promises.
Responsiveness Refers to the reaction time of the service.
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Assurance Refers the level of certainty a customer has regarding the quality of the
service provided.
Empathy Being able to understand the needs of the customer as an individual.
Tangibles Similar to the physical characteristics of quality of products.
Other Dimensions Time, Courtesy, Timeliness, consistency, accuracy, credibility and security.
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Total Quality Management (TQM) is an enhancement to the traditional way of doing business.
1.3.2. Definition of TQM

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Art of managing the whole to achieve excellence.
Total - Made up of the whole

Quality - Degree of Excellence a Product or Service provides.
Management - Art of handling, controlling, directing etc.
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TQM is the application of quantitative methods and human resources to improve all the processes
within an organization and exceed CUSTOMER NEEDS now and in the future.
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1.4. CHARACTERISTICS OF TQM
The above definitions revealed the following characteristics of TQM :

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1. TQM is a customer oriented.

2. TQM required a long term commitment for continuous improvement of all processes.
3. TQM is teamwork.
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4. TQM requires the leadership of top management and continuous involvement.

5. TQM is a strategy for continuous improving performance at all levels and in all areas of
responsibility.
1.4.1. Basic Concepts of TQM:
1. A committed and involved management.

2. An unwavering focus on the customer both internally and externally.
3. Effective involvement and utilization of entire work force,

4. Continuous improvement of the business and production process.
5. Treating suppliers as partners.
6. Establish performance measures for the processes.
1.5. ELEMENTS OF TQM
A framework summarizing the important elements of TQM discussed in this text.

Three elements of TQM include
1. The philosophical elements of TQM stress the operation of the company using quality as the
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integrating element.
2. The generic tools consist of various statistical process control (SPC) methods that are used for
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problem solving and continuous improvement by quality teams. Quality function deployment is
typically used by managers to drive the voice of the customer into the organization.
3. Tools of the QC department consists of statistical quality control (SQC) methods such as
sampling
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plans, process capability and Taguchi methods.
TQM Frame work:

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TQM FRAME WORK
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QUALITY GURUS
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TOOLS AND TECHIQUES PRINCIPLES AND PRACTICES

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1. Benchmarking 1. Leadership
2. Six sigma 2. Quality statements
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3. Seven Traditional Tools 3. Customer focus

4. New seven management tools 4. Employee involvement
5. FMEA 5. Performance appraisal
6. Quality circle 6. PDSA cycle
7. Quality function deployment 7. 5S
8. Taguchi quality loss function 8. Kaizen
9. TPM 9. Supplier partnership.

Approach:
Continuous improvement process.
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Measures:
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Performance Measures
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A
S
P
D
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Problem Solving
Improvement
Team Work
Discipline
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Process
Quality
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Employee involvement, Structured, Stepwise,

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Discipline, Consistency.
1.6. PRINCIPLES OF TQM

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 Customer’s requirements must be met the first time, every time.

 There must be agreed requirements, for both internal and external customers.
 Everybody must be involved, from all levels and across all functions.
 Regular communication with staff at levels is must. Two way communication at all levels
must be promoted.
 Identifying training needs and relating them with individual capabilities and requirements
is must.

 Top management’s participation and commitment is must.
 A culture of continuous improvement must be established.
 Emphasis should be placed on purchasing and supplier management
 Every job must add value.
 Quality improvement must eliminate wastes and reduce total cost.
 There must be a focus on the prevention of problems.
 A culture of promoting creativity must be established.
 Performance measure is a must at organization, department and individual levels. It helps
to asses and meet objectives of quality.
 There should be focus on team work.
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1.7. OBSTACLES (BARRIERS) IN IMPLEMENTING TQM :





Lack of Management Commitment
Improper planning tas

Inability to change Organizational culture
Lack of continuous training and education

Incompatible organizational structure and isolated individuals and departments
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 Ineffective measurement techniques and lack of access to data and results
 Paying inadequate attention to internal and external customers
 Inadequate use of empowerment and teamwork
 Failure to continually improve
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1.8. BENEFITS OF TQM:
 Improved quality
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 Employee participation
 Team work
 Working relationships
 Customer satisfaction
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 Employee satisfaction
 Productivity
 Communication
 Profitability
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 Market share
1.9. CONTRIBUTIONS OF DEMING:
1. Create and publish the Aims and Purposes of the organization.

2. Learn the New Philosophy.
3. Understand the purpose of Inspection.

4. Stop awarding business based on price alone.
5. Improve constantly and forever the System.
6. Institute Training.
7. Teach and Institute Leadership.
8. Drive out Fear, Create Trust and Create a climate for innovation.
9. Optimize the efforts of Teams, Groups and Staff areas.
10. Eliminate exhortations for the Work force.
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11a. Eliminate numerical quotas for the work force.
11b. Eliminate Management by objectives.
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12. Remove Barriers that rob people of pride of workmanship.
13. Encourage Education and Self-improvement for everyone.
14. Take action to accomplish the transformation.
1.10. THE JURAN TRILOGY

Juran views quality as fitness for use. tas
Juran Trilogy is designed to reduce the cost of quality over time.
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1. QUALITY PLANNING
 Determine internal & external customers.

 Their needs are discovered.
 Develop product / service features.
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 Develop the processes able to produce the product / service features.

 Transfer plans to operations.
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2. QUALITY CONTROL
Control is used by operating forces to help meet the product, process and service requirements.
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It consists of the following steps
1. Determine items to be controlled.

2. Set goals for the controls.
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3. Measure actual performance.

4. Compare actual performance to goals.
5. Act on the difference.
3. QUALITY IMPROVEMENT
Aims to attain levels of performance that are higher than current levels.

It consists of the following steps
 Establishment of quality council.
 Identify the improvement projects.
 Establish the project teams with a project leader.
 Provide the team with the resources.
1.11. CONTRIBUTIONS OF CROSBY:
The Four absolutes of quality are
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1. Quality is defined as conformance to requirements.
2. The system for causing Quality is prevention.
3. The performance standard must be zero defects.
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4. The measurement of Quality is the Price of Nonconformance
1.11.1 Crosby’s Fourteen Points:
1. Management Commitment
2. Quality Improvement Team
3. Quality Measurement
4. Cost of Quality Evaluation
5. Quality Awareness
6. Corrective Action
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7. Establish an Ad Hoc Committee for the Zero Defects Program
8. Supervisor Training
9. Zero Defects Day
10. Goal Setting
11. Error Cause Removal
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12. Recognition
13. Quality Councils
14. Do It Over Again
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UNIT – II
2.1. LEADERSHIP
“Leadership is lifting of man’s visions to higher sights, the raising of man’s performance to a
higher standard, the building of man’s personality beyond its normal limitations”.
Introduction:
The success of quality management is to a greater extent is influenced by the quality of the
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leadership. Peter Drucker, the eminent management thinker and writer quotes: “Leadership is lifting
of man’s visions to higher sights, the raising of man’s performance to a higher standard, the building
of man’s personality beyond its normal limitations”.
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Leadership is the process of influencing others towards the accomplishment of goals. Leader
triggers the will to do, show the direction and guide the group members towards the accomplishment
of the company’s goal.
2.2 CHARACTERISTICS FOR LEADERSHIP
 The customers first.

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 Value people.
 Built supplier partnership.
 Empower people.
 Demonstrate involvement/commitment.
 Strive for excellence.
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 Explain and deploy policy.

 Improve communication.
 Promote teamwork.
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 Benchmark continuously.
 Establish system.
 Encourage collaboration.
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2.3 LEADERSHIP ROLES
1. Producer role.
2. Director role.
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3. Coordinator role roles.

4. Checker role.
5. Stimulator role.
6. Mentor role.
7. Innovator role.
8. Negotiator role.

2.4 LEADERS
 Shape the Organization’s value

 Promote the Organization’s value
 Protect the Organization’s value and
 Exemplifies the Organization values
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2.5 CHARACTERISTICS OF QUALITY LEADERS
1. They give priority attention to external and internal customers and their needs.
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2. They empower, rather than control, subordinates.
3. They emphasis improvement rather than maintenance.
4. They emphasis prevention.
5. They emphasis collaboration rather than competition.
6. They train and coach, rather than direct and supervise.
7. They learn from the problems.
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8. They continually try to improve communications.
9. They continually demonstrate their commitment to quality.
10. They choose suppliers on the basis of quality, not price.
11. They establish organizational systems to support the quality effort.
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12. They encourage and recognize team effort.
2.6 LEADERSHIP CONCEPTS
A leader should have the following concepts

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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.
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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.
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6. People distrust a leader’s rhetoric if the words are inconsistent with the leader’s actions.
2.7 THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE:

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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)

2.8 ROLE OF SENIOR MANAGEMENT
1. Management by Wandering Around (MBWA).

2. Strategy of problem solving and decision making.
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3. Strong information base.
4. Recognition and Reward system.
5. Spending most of the time on Quality.
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6. Communication.
7. Identify and encourage potential employee.
8. Accept the responsibility.
9. To play a role model.
10. Remove road blocks.
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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 programmes are conducted as planned.
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16. Become coaches and cheer leaders to implement TQM.
17. Generate enthusiasm for TQM activities.
18. Visit other companies to observe TQM functioning.
19. Attend TQM training programme.
20. Teach others for the betterment of society and the surroundings.
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2.9 QUALITY COUNCIL

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A quality council is established to provide overall direction.
The council is composed of

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 Chief Executive Officer

 Senior Managers
 Coordinator or Consultant
 A representative from the Union
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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
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 New project teams
 Benchmarking report
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Within three to five years, the quality council activities will become ingrained in the culture of the
organization.
2.10 STRATEGIC QUALITY PLANNING
Goals
Objectives
–
–
Long term planning
Short term planning tas
(Eg : Win the war)
(Eg : Capture the bridge)
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PRESENT STRATEGIC PLAN VISION OF
FUTURE
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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
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2.11 SEVEN STEPS TO STRATEGIC QUALITY PLANNING
In order to integrate quality with the strategic planning process, a systematic and sequential procedure
has to be adopted. There are seven basic steps to strategic process planning. They are
Step 1. Customer Needs

The basic step is the identification of customers and their wants and needs. An organization
must seek its customers’ requirements, expectations and assess future trends before developing a
strategic plan.
Step 2. Customer Position
The second step requires the planners to determine its positioning with regards to its
customers. Various alternatives such as whether the organization should give up, maintain or expand
market position should be considered. In order to become successful, the organization should
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concentrate and consolidate its position in its areas of excellence.
Customer needs
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Customer Positioning
Predict the future
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Gap Analysis (Comparison of
various alternatives)
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Closing the gap (selection of
best alternative)
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Alignment
Implementation
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Reevaluated and review

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Step 3. Predict the Future
Next, the planners must predict future conditions that will affect their product or service: To
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help predicting the future, the tools such as demographics, economic forecasts, and technical
assessments or projections may be used.
Step 4. Gap Analysis
In this step, the planners must identify the gaps between the current state and the future state
of the organization. This concept is also known as value stream mapping. For identifying the gaps,
an analysis of the core values and concepts and other techniques may be used.

Step 5. Closing the Gaps
Now the planners should develop a specific plan to close the gaps. This process is also termed
as Process improvement. By assessing the relative importance and relative difficulty of each gap,
planners can close the gaps.
Step 6. Alignment
Now the revised plan should be aligned with the mission, vision, and core values and concepts
of the organization. Organization should embrace quality as an essential ingredient in their vision,
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mission, and objectives.
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Step 7. Implementation
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In order to implement the action plan, resources must be allocated to collecting data,
designing changes, and overcoming resistance to change. Also the planners should monitor and assess
the result of the strategic plan.
Since quality is a continuous improvement process, one has to reassess and renew the
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strategic plans periodically. So it is a cyclic process. Figure summarizes the strategic planning cycle.
2.12 QUALITY STATEMENTS

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QUALITY STATEMENTS
Three elements of quality statements are :
a. Vision statement,
b. Mission statement, and

c. Quality policy statement
What is Vision Statement?
1. The vision statement is a short declaration of what on organization aspires to be tomorrow.

2. It is the ideal state that might never be reached; but on which one will work hard continuously
to achieve. Successful visions provide a brief guideline for decision making.
3. The vision statement should be coined in such a way that the leaders and the employees
working in the organization should work towards the achievements of the vision statement.
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4. An example of a simple vision statement is :
“To continuously enrich knowledge base of practitioners in mobility industry and institutions
in the service of humanity”. – Society of Automotive Engineers (SAE)
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What is Mission Statement?
1. The mission statement, describes the function of the organization. It provides a clear statement
of purpose for employees, customers, and suppliers.
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2. The mission statement answers the following questions : who we are?; who are our
customers? ; what we do?; and how we do it?
3. An example of a simple mission statement is :
“Concern for the ultimate customers – millions of customers
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Concern for the intermediate customers – the trade
Concern for the suppliers – the sources of raw materials and ancillaries
Concern for the employees – the most valued asset

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Concern for the competitors – wishing them well as healthy competition ultimately benefits
the customers.
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Concern for the shareholders – the investing public
Concern for the national aspiration – India’s future!”

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- ITC Limited
What is Quality Policy Statement?
 The quality policy is a guide for everyone in the organization as to how they provide products
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and service to the customers.

 It should be written by the CEO with feedback from the workforce and be approved by the
quality council.
 A quality policy is a important requirement of ISO 9000 quality systems.
 An example of a simple quality policy statement is:
“Xerox is a quality company. Quality is the basic business principle for Xerox. Quality means
providing our external and internal customers with innovative products and services that fully
satisfy their requirements. Quality is the job of every employee”.

VISION STATEMENT
 It is a short declaration of what an organization aspires to be tomorrow.
Example :
Disney Theme Park - Happiest place on earth
Polaroid - Instant photography
 Successful visions provide a guideline for decision making
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MISSION STATEMENT
It answers the following questions
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 Who we are?
 Who are the customers?
 What we do?
 How we do it?
customers & suppliers
A simpler mission statement is

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It describes the function of the organization. It provides a clear statement of purpose for employees,
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“To meet customers transportation and distribution needs by being the best at moving their
goods on time, safely and damage free”
- National Railways
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QUALITY POLICY STATEMENT
It is guide for everyone in the organization as to how they should provide products and services to the
customers.
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Common characteristics are
 Quality is first among equals

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 Meet the needs of the internal & external customers

 Equal or exceed competition
 Continuously improve the quality
 Utilize the entire workforce
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Ex: Xerox is a quality company. Quality is the basic business principle for Xerox. Quality means
providing our external and internal customers with innovative products and services that fully satisfy
their requirements.

2.13 CUSTOMER SATISFACTION
WHO ARE THE CUSTOMERS?
The customers are :
1. The most important people in the business.

2. Not dependent on the organization. The organization depends on them.
3. Not an interruption to work but are the purpose of it.
4. Doing a favour when they seek business and not vice-versa.
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5. A part of business, not outsiders.
6. Life blood of the business.
7. People who come with their needs and jobs.
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8. Deserve the most courteous and attentive treatment.
Types of Customers
Customers are two types. They are :
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1. Internal customers, and 2. External customers.
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1. Internal Customers
1. The customers inside the company are called internal customers.

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2. As there is a flow of work, product and service in the organization, each department is
dependent on the other. In this, each department or each quality management unit is
considered as a customer by the previous department and as a supplier for the next
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department. Similarly every person in a process is considered as a customer of the preceding

operation. This explains the concept of internal customer.
2. External Customers
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 The customers outside the company are called external customers.

 In other words, an external customer is the one:
 who uses the product or service ;
 who purchases the product or service; or
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 who influences the sale of the product or service.
Customer – Supplier Chain
In order to achieve the total customer orientation, TQM requires the better customer – supplier
relationship. Figure shows the model of customer – supplier chain.

All processes require inputs, which are provided by the internal or external suppliers.
Similarly all processes delivers outputs, which are used by internal or external customers. Each unit is
considered as a customer by the previous unit and as a supplier for the next unit.
Customer satisfaction, a business term, is a measure of how products and services supplied by a
company meet or surpass customer expectation. It is seen as a key performance indicator within
business and is part of the four of a Balanced Scorecard.
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 In a competitive marketplace where businesses compete for customers, customer satisfaction

is seen as a key differentiator and increasingly has become a key element of business strategy.
2.14 CUSTOMER COMPLAINTS

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 Satisfied
 Dissatisfied customer
 Totally satisfied customer contributes to monitored.

FEEDBACK (INFORMATION COLLECTING TOOLS)
Feedback enables organization to

 Discover customer satisfaction

 Discover relative priorities of quality
 Compare performance with the competition
 Identify customer needs
 Determine opportunities for improvement
Listening to the voice of the customer can be accomplished by numerous information collecting tools.
1. Comment Card
2. Customer Questionnaire
Highly Neutral Highly
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Satisfied Dissatisfied
1. Trash removal 5 4 3 2 1
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2. Personal hygiene 5 4 3 2 1
3. Romance 5 4 3 2 1
4. Thoughtfulness 5 4 3 2 1
5. Listening skills 5 4 3 2 1
6. Faithfulness 5 4 3 2 1
7.
8.
Respect for
Mother – in - law
Overall,how satisfied
are you with your
marriage?
5
5
4
4
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3
2
2
1
1
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To make surveys more useful, it is best to remember eight points
 Clients and Customers are not the same

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 Surveys raise customers expectations

 How you ask a question will determine how the question is answered
 The more specific the question, the better the answer
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 You have only one chance and only 15 minutes

 The more time you spend in survey development, the less time you will spend in data
analysis and interpretation
 Who you ask is as important as what you ask
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 Before the data are collected, you should know how you want to analyse and use the data
3. Focus Groups
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These groups are very effective for gathering information on customer expectations and
requirements.
4. Toll – Free Telephone Numbers
5. Customer Visits
6. Report Card

7. The Internet and Computers
8. Employee Feedback
9. Mass Customization
2.15 Tebouls Model of customer satisfication
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USING CUSTOMER COMPLAINTS
Actions an organization can take to handle complaints are as follows

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 Investigate customers experiences by actively getting feed back, both positive and negative,
and then acting on it promptly
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 Develop procedures for complaint resolution that include empowering front – line
personnel.
 Analyze complaints, but understand that complaints do not always fit into neat categories.
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 Work to identify process and material variations and then eliminate the root cause. “More
inspection” is not corrective action.
 When a survey response is received, a senior manager should contact the customer and
strive to resolve the concern.
 Establish customer satisfaction measures and constantly monitor them.

 Communicate complaint information, as well as the results of all investigations and
solutions, to all people in the organization.
 Provide a monthly complaint report to the quality council for their evaluation and, if needed,
the assignment of process improvement teams.
 Identify customers’ expectations beforehand rather than afterward through complaint

analysis.
SERVICE QUALITY
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Customer service is the set of activities an organization uses to win and retain customer’s
satisfaction. It can be provided before, during, or after the sale of the product or exist on its own.
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Elements of customer service are
Organization
1. Identify each market segment.
2.
3.
4.
5.
Write down the requirements.
Communicate the requirements.
Organize processes.
Organize physical spaces.
Customer Care
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6. Meet the customer’s expectations.
7. Get the customer’s point of view.
8. Deliver what is promised.
9. Make the customer feel valued.
10. Respond to all complaints.
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11. Over – respond to the customer.

12. Provide a clean and comfortable customer reception area.
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Communication
13. Optimize the trade – off between time and personal attention.
14. Minimize the number of contact points.
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15. Provide pleasant, knowledgeable and enthusiastic employees.

16. Write document in customer friendly language.
Front-Line people
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17. Hire people who like people.

18. Challenge them to develop better methods.
19. Give them the authority to solve problems.
20. Serve them as internal customers.
21. Be sure they are adequately trained.
22. Recognize and reward performance.
23. Lead by example.

24. Listen to the front-line people.
25. Strive for continuous process improvement.
2.16 CUSTOMER RETENTION
It means “retaining the customer” to support the business. It is more powerful and effective than
customer satisfaction.
For Customer Retention, we need to have both “Customer satisfaction & Customer loyalty”.
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The following steps are important for customer retention.
1. Top management commitment to the customer satisfaction.
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2. Identify and understand the customers what they like and dislike about the organization.
3. Develop standards of quality service and performance.
4. Recruit, train and reward good staff.

5. Always stay in touch with customer.
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6. Work towards continuous improvement of customer service and customer retention.
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7. Reward service accomplishments by the front-line staff.
8. Customer Retention moves customer satisfaction to the next level by determining what is truly
important to the customers.
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9. Customer satisfaction is the connection between customer satisfaction and bottom line.
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2.17 Employee Involvement

 Employee involvement is one approach to improve quality and productivity.
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 It is a means to better meet the organization’s goals for quality and productivity.
2.18 MOTIVATION
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CONCEPT OF MOTIVATION
a. Scott defines, “Motivation means a process of stimulating people to accomplish desired

goals.”
b. Edwin B. Flippo defines, “Motivation is the process of attempting to influence others to do
your will through the possibility of reward.”
c. In simple words, motivation is the process of inducing people inner drives and action towards
certain goals and committing his energies to achieve these goals.

IMPORTANCE OF MOTIVATION
a. Motivation improves employee involvement.

b. Motivation promotes job satisfaction and thus reduces absenteeism and turnover.
c. Motivation helps in securing a high level of performance and hence enhances efficiency and
productivity.
d. Motivation creates a congenial working atmosphere in the organization and thus promotes
interpersonal cooperation.
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THEORIES OF MOTIVATION
Though there are many theories of motivation, the Maslow’s hierarchy of needs theory and
Herzberg’s two factor theory are more important from our subject of view.
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2.19 MASLOW’S HIERARCHY OF NEEDS
Self - Actualization
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Esteem
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Social
Security
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Survival
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EMPLOYEE WANTS
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Factor Employee Rating Manager Rating
Interesting work 1 5
Appreciation 2 8
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Involvement 3 10
Job security 4 2
Good Pay 5 1
Promotion/ growth 6 3
Good working conditions 7 4
Loyalty to employees 8 7
Help with personal problems 9 9
Tactful discipline 10 6

(OR) Self
Actualization
Needs
Esteem Needs
Social Needs
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Safety Needs (or) Security Needs
Physiological (or) Basic Needs
2.20 Herzberg’s Two Factor Theory tas

This theory is also called motivation-hygiene theory. This theory is based on two factors: 1.
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Motivation factors or satisfiers, and 2. Hygiene factors or dissatisfiers. Various motivation and
hygiene factors are listed in Table.
Motivation and hygiene factors

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Motivation Factors Hygiene Factors
 Achievement  Supervisors
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 Recognition  Working conditions

 The work itself  Interpersonal relationships
 Responsibility  Pay and security
 Advancement and growth  Company policy and administration
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According to Herzberg, maintenance or hygiene factors are necessary to maintain a reasonable

level of satisfaction among employees. These factors do not provide satisfaction to the employees but
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their absence will dissatisfy them. Therefore these factors are called dissatisfiers.
On the other hand, motivational factors creates satisfaction to the workers at the time of
presence but their absence does not cause dissatisfaction. It can be noted that Herzberg’s dissatisfiers
are roughly equivalent to Maslow’s lower levels, and the motivators are similar to the Maslow’s
upper levels.

Thus the knowledge of motivation is required for any organization to understand the
utilization of employee involvement.
ACHIEVING A MOTIVATED WORK FORCE
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.
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2. Know your employees.
3. Establish a positive attitude.
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4. Share the goals.
5. Monitor progress.
6.



Develop interesting work.
Job rotation
Job enlargement
Job enrichment
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7. Communicate effectively
8. Celebrate success.
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EMPLOYEE SURVEYS
Employee surveys help managers assess the current state of employee relations, identify trends,
measure the effectiveness of program implementation, identify needed improvements, and increase
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communication effectiveness.
STEP 1 The Quality Council to create a multifunctional team
STEP 2 The Team will develop survey instrument

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STEP 3 Administer the survey
STEP 4 Results are compiled and analyzed

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STEP 5 Determine areas for improvement
 Employee involvement is creating an environment in which people have an impact on

decisions and actions that affect their jobs.

 Tell: the supervisor makes the decision and announces it to staff. The supervisor provides
complete direction.
 Sell: the supervisor makes the decision and then attempts to gain commitment from staff by
"selling" the positive aspects of the decision.
 Consult: the supervisor invites input into a decision while retaining authority to make the
final decision herself.
 Join: the supervisor invites employees to make the decision with the supervisor. The
supervisor considers her voice equal in the decision process.
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To round out the model, I add the following.
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 Delegate: the supervisor turns the decision over to another party.
Seven Rules of Motivation
#1 Set a major goal, but follow a path. The path has mini goals that go in many
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directions. When you learn to succeed at mini goals, you will be motivated to
challenge grand goals.
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#2 Finish what you start. A half finished project is of no use to anyone. Quitting is
a habit. Develop the habit of finishing self-motivated projects.
#3 Socialize with others of similar interest. Mutual support is motivating. We will

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develop the attitudes of our five best friends. If they are losers, we will be a loser. If
they are winners, we will be a winner. To be a cowboy we must associate with
cowboys.
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#4 Learn how to learn. Dependency on others for knowledge supports the habit of
procrastination. Man has the ability to learn without instructors. In fact, when we
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learn the art of self-education we will find, if not create, opportunity to find success
beyond our wildest dreams.
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#5 Harmonize natural talent with interest that motivates. Natural talent creates
motivation, motivation creates persistence and persistence gets the job done.

#6 Increase knowledge of subjects that inspires. The more we know about a

subject, the more we want to learn about it. A self-propelled upward spiral develops.
#7 Take risk. Failure and bouncing back are elements of motivation. Failure is
alearning tool. No one has ever succeeded at anything worthwhile without a string of
failures.
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2.21 EMPOWERMENT
CONCEPT OF EMPOWERMENT
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Empowerment is the opposite of helplessness or dependency. An empowered person does not
feel incapable of doing the things that he considers important for the well-being of his organization.
There are no constraints that he perceives to be externally imposed. In other words, being empowered
implies that the person acts from a state of autonomy, doing what he knows is the right thing to do
under a given set of circumstances.
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It is understood that empowerment is dependent upon two factors:
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(i) An individual’s personal choices; and
(ii) The organization climate, that can either encourage dependency or foster autonomy.
EMPOWERMENT DEFINED
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1. According to Webster’s Dictionary, the verb empower means ‘to give the means, ability or
authority’. Therefore empowerment in work setting involves giving people the means, ability
and authority to do something they have not done before.
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2. An operation definition of empowerment: “Empowerment is an environment in which people

have the ability, the confidence, and the commitment to take the 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.”
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2.22 Job Enrichment Vs Job Empowerment
Job enrichment is aimed at expanding the content of an individual’s job. But job
empowerment focuses on expanding on the context of the job such as its interactions and
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interdependencies to other functions of the organization.
Empowerment is investing people with authority. It’s purpose is to tap the enormous reservoir
of potential contribution that lies within every worker.
The two steps to empowerment are

1. To arm people to be successful through coaching, guidance and training.
2. Letting people do by themselves.
The principles of empowering people are given below.
1. Tell people what their responsibilities are.

2. Give authority.
3. Set standards for excellence.
4. Render training.
5. Provide knowledge and information.
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6. Trust them.
7. Allow them to commit mistakes.
8. Treat them with dignity and respect.
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Three dimensions of empowerment are
 Capability
 Alignment and
 Trust
CHARACTERISTICS OF EMPOWERED EMPLOYEES tas

Some important characteristics of empowered employees, identified by Hubert Rampersad, are that:
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 They feel responsible for their own task.
 They are given a free hand in their work.
 They balance their own goals with those of the organization.
 They are well trained, equipped, creative, and customer oriented.
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 They are critical, have self-esteem, and are motivated.

 They are challenged and encouraged.
 They monitor and improve their work continuously.
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 They find new goals and change challenges.
Therefore, it is important to empower individuals and teams at all levels of the organization to
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achieve the continuous improvement process.
2.23 TEAMS
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 Employee involvement is optimized by the use of teams.

 A team is defined as a group of people working together to achieve common objectives or

goals.
 Teamwork is the cumulative actions of the team during which each member of the team
subordinates his individual interests and opinions to fulfill the objectives or goals of the group.
WHY TEAMS WORK
1. Many heads are more knowledgeable than one.
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2. The whole is greater than the sum of its members.
3. Team members develop a rapport which each other.
4. Teams provide the vehicle for improved communication.
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2.24 TYPES OF TEAMS
1. Process improvement team.

2. Cross – functional team.
3.
4.
Natural work teams.
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Self – Directed / Self – Managed work teams.
2.25 CHARACTERISTICS OF SUCCESSFUL TEAMS :

1. Sponsor 2. Team Charter
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3. Team Composition 4. Training
5. Ground Rules 6. Clear Objectives
7. Accountability 8.Well-Defined decision procedure
9. Resources 10. Trust
11.Effective Problem Solving 12. Open Communication
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13. Appropriate Leadership 14. Balanced Participation

15. Cohesiveness
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The effective team should have certain characteristics. These are :
1. Sponsor : In order to have effective liason with the quality council, there should be a sponsor. The
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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
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members and their assigned roles – leader, recorder, time keeper and facilitator.
3. Team Composition : The size of the team should not exceed ten members except in the case of
natural work teams or self-directed teams. Teams should be diversed by having members with
different skills, perspective and potential. Wherever needed, the internal and external customers and
suppliers should be included as a team member.

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: The objective of the team should be stated clearly. Without the clear objective,
the team functions is not to be effective.
7. Accountability: The team performance is accountable. Periodic status report of the team should be
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given to the quality council. The team should review its performance to determine possible team
process weaknesses and make improvements.
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8. Well-defined Decision Procedures: The decision should be made clearly at the right time by the
team.
9. Resources: The adequate information should be given to the team wherever needed. The team
cannot be expected to perform successfully without the necessary tools.
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10. Trust : Management must trust the team to perform the task effectively. There must also be trust
among the members and a belief in each other.
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11. Effective Problem-Solving : Problem-solving methods are used to make the effective decision.
12. Open Communication : Open communication should be encouraged i.e., everyone feels free to
speak in the team whatever they are thinking, without any interruptions.
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13. Appropriate Leadership: Leadership is important in all the team. Leader is a person who leads
the team, motivates the team and guides the team in a proper direction.
14. Balanced Participation : Everyone in a team should be involved in the team’s activities by
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voicing their opinions, lending their knowledge and encouraging other members to take part.
15. Cohesiveness: Members should be comfortable working with each other and act as a single unit,
not as individuals or subgroups.
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ELEMENTS OF EFFECTIVE TEAM WORK
Main elements of effective teamwork are as follows:

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1. Purpose
2. Role and responsibilities
3. Activities
4. Effectiveness

5. Decisions
6. Results, and
7. Recognition.
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Figure depicts the seven main elements of effective teamwork.
(i) STAGES OF TEAM DEVELOPMENT
Each term takes sometime to start functioning effectively towards problem solving. Each team
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goes through six distinct stages in its development. These are farming, storming, norming,
performing maintenance and evaluating.
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1. Farming stage : When a team is created, it consist of group of individuals and team work does not
exist at this stage. Team’s purpose, members’ roles, acceptance of roles, authority and process of
functioning are learnt in the formation process.
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2. Storming stage : Initial agreements and role allocations are challenged and re-established at this
stage of team development. At this stage, hostilities and personal needs often emerge which may be
resolved.
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3. Norming stage : During norming stage of team development, formal and informal relationships get
established among team members. Openness and cooperation have been observed as signs of team’s
behaviour.
4. Performing stage : At this stage, the team starts operating in successful manner. Trust, openness,
healthy conflict and decisiveness of a group’s performance can be reached at this stage.

5. Maintenance stage : Functioning of team does not deteriorate overtime. At this stage, the
performance of teamwork at the earlier stage will be maintained for some period of time.
6.Evaluating stage : At this stage, team’s performance is to be evaluated in view of the set targets.
Both self-evaluation and management-based evaluation form this stage of team development.
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TEAM MEMBER ROLES
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TEAM LEADER
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 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.
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FACILITATOR
 Supports the leader.
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 Focuses on the team process.

 Acts as a resource to the team.
 Provides feedback to the team.
 RECORDER
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 Documents the main ideas of the team’s discussion, the issues raise, decisions made, action
items etc.
 Presents the documents and distributes the MOM.
 Participates as a team member.
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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.
DECISION MAKING METHODS

1. Non-decision.
2. Unilateral decision.
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3. Handclasp decision.
4. Minority-rule decision.
5. Majority-rule decision.
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6. Consensus.
COMMON 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.
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 Lack of Union support.
 Project scope too large.
 Project objectives are not significant.
 No clear measures of success.
 No time to do improvement work.
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2.26 RECOGNITION AND REWARD

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RECOGNITION AND REWARD.
MEANING:
Recognition is a process whereby management shows acknowledgement of an employee’s

outstanding performance. Recognition is a form of employee positive motivation. Recognition of

employees is highly essential as people find themselves in a accepted and winning role. To sustain
employee’s interest and to propel them towards continuous improvement, it is essential to recognize
the people. This acknowledgement may be of financial, psychological or both in nature.
Ways to recognize people
Send letters to improve team members when they establish a team thanking them for their
involvement.
1. Develop a behind the scenes awards specifically for those whose actions are not usually in
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the lime light, make sure such awards are in the lime light.
2. Create best ideas of the year booklet and include everyone’s picture name and description of
their best ideas.
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3. Feature the quality team of the month and put their picture in a prominent place.
4. Honor peers who have helped you by recognizing them at your staff meetings.
5. Let people attend meetings, committees etc; in your place when you are not available.
6. Involve teams with external customers and suppliers, sending them on appropriate visits to
solve problems and look for opportunities.
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7. Invite a team for coffee or lunch at any time, not necessarily when you need them for
something.
8. Create a visibility wall to display information, posters, and pictures, thanking individual
employees and their teams, and describing their contributions.
9. When you are discussing an individual or group ideas with other people, peers, or higher
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management make sure that you give them credit.
WHY SHOULD ONE RECOGNISE PEOPLE

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1. improve employees morale

2. show the company’s appreciation for better performance
3. create satisfied workplace
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4. Create highly motivated workplace.

5. Reinforce behavioral patterns.
6. Stimulate creative efforts.
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REWARD
MEANING:
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Reward is a tangible one, such as increased salaries, commissions, cash bonus, gain sharing,
etc; to promote desirable behavior.
TYPES OF REWARDS:
1. Intrinsic rewards
2. Extrinsic rewards
Intrinsic rewards are related to feelings of accomplishment of self-worth.

Extrinsic reward are related to pay or compensation issues.
INTRINSIC REWARDS
1. Non-monetary forms of recognition to acknowledge achievement of quality improvement goals.
2. Celebration to acknowledge achievement of quality improvement goals.
3. Regular expressions of appreciation by managers and leaders to employees to acknowledge

achievement of quality improvement goals.
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4. 360 degree performance appraisals feedback from co-workers subordinates to customers is
incorporated into performance appraisals.
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EXTRINSIC REWARDS:
1.
2.
Profit sharing
gain sharing
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3. employment security
4. compensation time
5. individual based performance systems
6. quality based performance appraisals
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Recognition is a process by which management shows acknowledgement of an employee’s

outstanding performance.
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Various ways for Recognition and Rewards are
1. Recognition can be expressed using verbal and written praise.

2. Rewards may be in the form of certificates and plaques.
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3. Reward is normally in the form of cinema tickets, dinner for family etc.
4. The financial compensation (for recognition) can be paid in terms of increased salaries,
commissions, gain sharing etc.
5. The efforts of employees can be recognized by promotions, special job assignments etc.
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6. A letter of appreciation from the CEO or the Top Management will increase the employee’s
involvement.
7. Reward may be delayed but recognition should be in a timely basis.
8. Rewards should be appropriate to the improvement level.
9. People like to be recognized than any reward.
10. Special forms of recognition include pictures on the bulletin board, articles in news letters, letter
to families etc.
11. Supervisors can give on-the-spot praise for a job which is done well.

2.27 EFFECTS OF RECOGNITION AND REWARD SYSTEM
1. Recognition and reward go together for letting people know that they are valuable members for
the organization.
2. Employee involvement can be achieved by recognition and reward system.
3. Recognition and reward system reveals that the organization considers quality and productivity
as important.
4. It provides the organization an opportunity to thank high achievers.
5. It provides employees a specific goal to achieve.
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6. It motivates employees to improve the process.
7. It increases the morale of the workers.
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2.28 PERFORMANCE APPRAISAL
The performance appraisal is used to let employees know how they are performing. The performance
appraisal becomes a basis for promotions, increase in salaries, counseling and other purposes related
to an employee’s future.
IMPORTANCE OF PERFORMANCE APPRAISALS

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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.
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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.
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6. Errors in performance evaluations should be avoided.

7. Unfair and biased evaluation will render poor rating and hence should be eliminated.
2.29 BENEFITS OF EMPLOYEE INVOLVEMENT

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Employee involvement improves quality and increases productivity because
 Employees make better decisions using their expert knowledge of the process
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 Employees are better able to spot and pin-point areas for improvement.
 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.

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2.30 CONTINUOUS PROCESS IMPROVEMENT
Continuous process improvement is designed to utilize the resources of the organization to
achieve a quality-driven culture.
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Improvement is made by
 Viewing all work as process.

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 Making all process effective, efficient and adaptable.

 Anticipating changing customer needs.
 Controlling in-process performance using measures such as scrap reduction, control charts
etc.
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 Eliminating waste and re-work.

 Eliminating non-value added activities.
 Eliminating non-conformities.
 Using Benchmarking.
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 Incorporating learned lessons into future activities.

 Using technical tools such as SPC, benchmarking, experimental design, QFD etc

PROCESS
Process refers to business and production activities of an organization.

FEEDBACK
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INPUT PROCESS OUTPUT
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People,
OUTCOMES
Materials, Equipment, Information,
Money, Method, Data,
Information,
Data, etc.
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Procedures,
Environment,
Product,
Service, etc.
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Materials
CONDITIONS
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Input / Output Process Model
There are five basic ways for improvement.

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 Reduce resources.
 Reduce errors.
 Meet or exceed expectations of downstream customers.
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 Make the process safer.

 Make the process more satisfying to the person doing it.
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2.31 THE PDCA CYCLE :
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PROBLEM SOLVING METHOD
1. IDENTIFY THE OPPORTUNITY
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

Identify the Problem
Pareto analysis of external alarm signals.
Pareto analysis of internal alarm signals.
Proposals from key insiders.
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 Proposals from suggestion schemes.
 Field study of user’s needs.
 Comments of key people outside the organization.
 Customer surveys.
 Employee surveys.
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 Brainstorming by work groups.

 Form the Team
 Team should be selected.
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 Goals and milestones are established.

 Define the Scope.
Criteria for a good problem statement is as follows

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 It clearly describes the problem.

 It states the effect.
 It focuses on what is known, unknown etc.
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 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
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best solution to improve the process.
 Creativity plays the major role, and brainstorming is the principal technique.
 There are three types of creativity:
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 Create new processes
 Combine different processes
 Modify the existing process
4. IMPLEMENT CHANGES
implementing the process improvements.
 Approval of the quality council.

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 Obtain the advice and consent of departments, functional areas, teams, individuals etc.
 Monitor the activity.
5. STUDY THE RESULTS

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This phase has the objective of monitoring and evaluating the change by tracking and studying the
effectiveness of the improvement efforts.
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6. STANDARDIZE THE SOLUTION
 Institutionalize by positive control of the process.

 The quality peripherals – the system, environment and supervision must be certified.
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 Operators must be certified.
7. PLAN FOR THE FUTURE

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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.

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PDSA CYCLE (OR DEMING WHEEL)
The basic Plan – Do – Study – Act cycle was originally developed by Walter A. Shewart. But
it was popularized by Edward Deming and that’s why it is often called the Deming Cycle or Deming
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Wheel. It is an effective continuous improvement technique.
The PDSA Cycle

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What is PDSA Cycle?
 PDSA stands for Plan, Do, Study, and Act. It is a model for testing ideas that you think may

create improvement.
 It is an extremely practical, common sense based approach that is easy to understand.
 It can be used to test ideas for improvement quickly and easily based on existing ideas,
research, feedback, theory, review, audit, etc.
 It encourages starting with small changes, which can build into large improvements in the
service through successive quick cycles of change.
 Illustrates the PDSA cycle.
Phases of PDSA Cycle
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The four phases of PDSA cycle and their descriptions are presented in Table.
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Phases of PDSA Cycle
Phases Description
1. Plan 
Define the problem


Define the performance indicators.

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Analyze the causes and draft an action plan for solving the problem.
Determine the quality objectives and the critical factors.

Collect and analyze the necessary process data.

Generate possible solutions
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
Select the most feasible solution; and work it out.
2. Do 
First, implement the plan on a limited scale or conduct an experiment to test the proposed
improvement. Collection data is hereby essential.
 Train all involved employees in the use of quality improvement methods and techniques.
 Describe the process which is considered for improvement and form project teams to lead
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the process.
3. Check  Evaluate the trial project with the performance indicators.
 Verify whether the improvement has been successful or not.
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4. Act  Act to implement proven improvements. The choices are: introduce the plan, adjust or
reject it.
 The improvements are documented in standard procedures so all employees are well-
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informed on how to handle in future.

 Usually, the cycle will be repeated under the different circumstances and conditions to test
how consistent the results are.
Continuous Process Improvement Cycle Using PDCA
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The relationship between the PDSA cycle and eleven steps to continuous process
improvement are illustrated in figure.
Each phase of the PDCA cycle must undergo its own PDCA cycle for further improvements,
as shown in figure.

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Applying PDCA to its phases
Benefits of the PDSA Cycle

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 Daily routine management – for the individual and / or the team.
 Problem-solving process.
 Project management
 Continuous development
 Vendor development
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 Human resources development

 New product development
 Process trials
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2.32 5-S: HOUSEKEEPING
5-S MEANS EVERYTHING IN ITS PLACE

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SEIRI CLEARING
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SEITON ARRANGING
SEISO SWEEPING
SEIKETSU CLEANLINESS
SHITSUKE DISCIPLINE

 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.
The First S : SEIRI : CLEARING
Factory Floor Office Home
 Machines to be  Used / Broken  Broken toys
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scrapped pens
 Rejected material  Useless paper  Old clothes
 Expired goods  Old diaries  Broken suitcases
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 Broken tools,  Broken furniture’s
pallets, bins,
trolleys.
 Old notices
Flow Chart :
Separating the wanted and unwanted tas

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Junk & waste Repairable Wanted items
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No use Repair
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Discard To next step

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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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The Second S : SEITON : ARRANGING
Arrange everything in proper order so that it can be

easily picked up for use.

 Unlabelled tool crib  Unlabelled file cabinet  Clutter

 Cluttered shelves  Cluttered drawer,  No orderly
lockers etc. shelves, book cases, arrangement in
tables the rooms
 Stores – no clear  Records & documents
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location system. Not arranged well
 Things on the floor  File heaps and papers
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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.
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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
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finance loss, prosecution or embarrassment.
The Third S : SEISO : SWEEPING
Sweep your workplace thoroughly so that there

is no dust anywhere.
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 Dirty machines  Dirty table & furniture  Dirty furniture, floor,

 Dust on product
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window, grills,
parts, R.Mtls. bookshelves.
 Dirty jigs, fixtures  Dirty office equipments
 Dirty walls, roofs  Littered floor
 Littered floor  Dirty windows
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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.

The Fourth S : SEIKETSU : CLEANLINESS
Washing with a strong overtone of keeping things

disinfected as well as free of hazardous chemicals.
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 Handling hazardous  Free of pests  Pest control
chemicals  Personal hygiene  Personal hygiene
 Control of fumes,
hazardous dust.
 Disinfecting, Personal hygiene
Consequences of not practicing SEIKETSU
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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.
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The Fifth S : SHITSUKI : DISCIPLINE
Discipline especially with regard to safety rules

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and punctuality.
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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
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quality will be affected.
2.33 IMPLEMENTING 5-S
1. Top Management resolve and training.

2. Formation of a top level team.
3. Understanding current circumstances.
4. Establishing priorities and targets.

5. Forming sub-teams and training.
6. Major cleaning.
7. Establishing improvement plans in each priority area.
8. Implementing the plan.
9. Verifying results.
10. Standardizing.
11. Establishing full control.
12. Looking for further improvements.
2.34 KAIZEN
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Kaizen is a Japanese word for the philosophy that defines management’s roles in continuously
encouraging and implementing small improvements involving everyone.
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It focuses on simplification by breaking down complex progress into their sub – processes and then
improving them.
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2.35 KAIZEN WHEEL

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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,
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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.
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 The five S’s for workplace organization.

 Visual management.
 Just – in – time principles.
 Poka – Yoke.
 Team dynamics.

2.36 SUPPLIER PARTNERSHIP
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What is Supplier Partnering?
Partnering is a 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 and rewards of the relationship. The relationship between customer and
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supplier should be based upon trust, dedication to common goals and objectives, and an
understanding of each party’s expectations and values.
Benefits of Partnering
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The benefits of partnering include:
(i) Improved quality;

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(ii) reduced cost;
(iii) Increased productivity;

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(iv) Increased efficiency;
(v) Increased market share;

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(vi) Increased opportunity for innovation; and
(vii) Continuous improvement of products / services.

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Key Elements to Partnering
The three important elements to achieve the customer / supplier partnering relationship are :
1. Long-term commitment: Long-term commitment provides both customer and supplier the much
needed environment to achieve the planned objectives. Because to set up and solve the problem of
continuous improvement, both parties may require the sufficient time.

2. Trust : Mutual trust between two parties forms the basis for a strong working relationship. Trust
enables the partners to effectively combine their resources and knowledge. It results in a ‘win-win’
situation for both partners.
3. Shared vision : Both the customers and suppliers have the common goal i.e., to satisfy the end
user. In order to ensure this goal, both particles should share and understand their goals and
objectives.
Three types of supplier sourcing are:
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o Sole sourcing;
o Multiple sourcing, and
o Single sourcing.
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1. Sole Sourcing
Sole sourcing is the use of only one supplier for the organization. The organization does not
have any choice. It is forced to use only one supplier.
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This forced situation is because of the following factors : patents, technical specifications, raw
material location, only one organization producing the item, etc.
2. Multiple Sourcing
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Multiple sourcing is the use of two or more suppliers for an item.
The basic concept of multiple sourcing is that competition will result in better quality,
lower costs, and better service. (The selection of suppliers from various alternatives is based on their
performance in terms of prices, quality and delivery.
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3. Single Sourcing
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Single sourcing is the use of one supplier for an item when several sources are available. It
leads to long-term partnering relationship.
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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
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share.
 Deming Philosophy (Deming’s 4th point)

 Just-in-time
 Continuous process improvement
 ISO 9000

CUSTOMER – SUPPLIER RELATIONS
Dr. Kaoru Ishikawa has given ten principles of customer-supplier relations. They are
1. Both the customer and supplier are fully responsible for the control of quality.
2. Both the customer and supplier should be independent of each other.
3. The customer is responsible for providing the supplier with clear and sufficient requirements so
that the customer can know precisely what to produce.
4. Both the customer and supplier should enter into a non-adversarial contract.
5. The supplier is responsible for providing the quality that will satisfy the customer.
6. Both the customer and supplier should decide the method to evaluate the quality of the product
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or services.
7. Both the customer and supplier should establish in the contract the method by which they can
reach an amicable settlement in case of any dispute.
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8. Both the customers and supplier should continually exchange information.
9. Both the customer and supplier should perform business activities.
10. Both the customer and supplier should have the best interest of the end user in mind.
2.37 PARTNERING
The benefits of partnering are

 Improved quality
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Partnering is a relationship between two or more parties based upon trust, dedication to common
goals.
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 Increased efficiency
 Lower cost
 Increased opportunity for innovation
 Continuous improvement
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The three key elements to a partnership relationship are

 Long term commitment
 Trust
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 Shared Vision
2.38 SOURCING
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The three types of sourcing are

 Sole sourcing
 Multiple sourcing
 Single sourcing
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2.39 SUPPLIER SELECTION
The suppliers should be selected with the following ten conditions
1. The supplier should understand clearly the management philosophy of the organization.
2. The supplier should have stable management system.
3. The supplier should maintain high technical standards.

4. The supplier should provide the raw materials and parts which meet quality specifications
required by the purchaser.
5. The supplier should have the required capability in terms of production.
6. The supplier should not leak out the corporate secrets.
7. The supplier should quote right price and should meet the delivery schedule. The supplier
should be accessible with respect to transportation and communication.
8. The supplier should be sincere in implementing the contract provisions.
9. The supplier should have an effective quality system such as ISO / QS 9000.
10. The supplier should be renowned for customer satisfaction.
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SUPPLIER CERTIFICATION
A certified supplier is one which, after extensive investigation, is found to supply material of such
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quality that is not necessary to perform routine testing.
The Eight criteria for supplier certification are
1. No product related lot rejections for at least 1 year.
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2. No non-product related rejections for atleast 6 months.
3. No production related negative incidents for atleast 6 months.
4. Should have passed a recent on-site quality system evaluation.
5. Having a fully agreed specifications.
6. Fully documented process and quality system.
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7. Timely copies of inspection and test data.
8. Process that is stable and in control
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2.40 SUPPLIER RATING
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Supplier Rating is done

 To obtain an overall rating of supplier performance.
 To communicate with suppliers regarding their performance.
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 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.
RELATIONSHIP DEVELOPMENT
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For establishment of supplier relationship, the following are necessary.
(a) Partnering
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(b) Supplier selection

(c) Principles of customer / supplier relations
(d) Certification
(e) Periodic rating
For relationship development, the following are necessary.
(a) Inspection
 100% inspection
 Sampling

 Audit
 Identity check
(b) Training
(c) Teams
(d) Recognition and Reward
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UNIT – III
TQM TOOLS & TECHNIQUES - I
3.1 SEVEN TOOLS OF QUALITY
3.1.1 Prerequisite Discussion
 The quality of a product or service depends on the quality of process employed.
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 Every organization needs to establish a set of well-defined process for manufacturing of
product (or) design or service.
 The objective of process control is to control the quality of the processes and ensure that the
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deliverables are produced as planned.
 Aim of the statistical based process control is to produce products and services with quality
consistently.
 Seven quality control tools are very important for continuous improvement in the TQM
journey.
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It is a prerequisite for ISO 9000 certification process flow charts are insisted and the
organizations are asked to document the processes.
3.1.2 Concept
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There are many proposed tools and techniques to achieve the TQM promises. Generally, a technique
can be considered as a number of activities performed in a certain order to reach the values .
On the other hand, tools sometimes have statistical basis to support decision making or facilitate
analysis of data.
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The best tools for this purpose is check sheet, Pareto chart, histogram, scatter diagram, run chart and
statistical process control (SPC).
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The data collected by these tools can be used to measure the process. The correct selection and use of
tools and techniques is a vital component of any successful TQM implementation plan.
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The TQM tools and techniques can be divided into simple tools for solving a special problem and
complex one that cover all functions within the company.
3.2. Flow Charts

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This is one of the basic quality tool that can be used for analyzing a sequence of events.
The tool maps out a sequence of events that take place sequentially or in parallel. The flow chart can
be used to understand a complex process in order to find the relationships and dependencies between
events.
You can also get a brief idea about the critical path of the process and the events involved in the
critical path.
Flow charts can be used for any field and to illustrate events involving processes of any complexity.
There are specific software tools developed for drawing flow charts, such as MS Vision.

You will be able to freely download some of the open source flow chart tools developed by the open
source community.
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3.3 Applications:
In a product assembly how sub assemblies made and then build into final product.
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The time taken for before improvement is greater than after improvement by using flow diagrams.
3.4. Histogram
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Histogram is used for illustrating the frequency and the extent in the context of two variables.
Histogram is a chart with columns. This represents the distribution by mean. If the histogram is
normal, the graph takes the shape of a bell curve.
If it is not normal, it may take different shapes based on the condition of the distribution. Histogram
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can be used to measure something against another thing. Always, it should be two variables.
Consider the following example: The following histogram shows morning attendance of a class. The
X-axis is the number of students and the Y-axis the time of the day.
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3. 5 Cause and Effect Diagram
problem causes. tas

Cause and effect diagrams (Ishikawa Diagram) are used for understanding organizational or business
Organizations face problems everyday and it is required to understand the causes of these problems in
order to solve them effectively. Cause and effect diagrams exercise is usually a teamwork.
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A brainstorming session is required in order to come up with an effective cause and effect diagram.
All the main components of a problem area are listed and possible causes from each area is listed.
Then, most likely causes of the problems are identified to carry out further analysis.
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CAUSE AND EFFECT DIAGRAM

DRAUGHT
IMPROPER FUEL
SYSTEM NON-UNIFORM
FUNCTION
IMPROPER OF SA FAN INCREASED FLOW OF FUEL
FUNCTION MOISTURE
OF FD FAN CONTENT NATURE OF
BAGASSE
FIBRE
IMPROPER INCREASED
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FUNCTION SUGAR
OF ID FAN CONTENT
VARIATION IN
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STEAM
GENERATION
VARIATION IN VARIATION
WATER LEVEL IN BOILER
IN DRUM WATER pH
VARIATION IN
WATER
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VARIATION
IN BOILER
WATER TDS
BOILER
WATER
FEED WATER
TEMPERATURE
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QUALITY
3.6. Check Sheet

A check sheet can be introduced as the most basic tool for quality.
A check sheet is basically used for gathering and organizing data.
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When this is done with the help of software packages such as Microsoft Excel, you can derive further
analysis graphs and automate through macros available.
Therefore, it is always a good idea to use a software check sheet for information gathering and
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organizing needs.
One can always use a paper-based check sheet when the information gathered is only used for backup
or storing purposes other than further processing.
Types of check sheet
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1. Process distribution check sheets.

2. Defective item check sheets.
3. Defect location check sheet.
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4. Defect factor check sheet.

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3.7. Scatter Diagram
When it comes to the values of two variables, scatter diagrams are the best way to present. Scatter
diagrams present the relationship between two variables and illustrate the results on a Cartesian plane.
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Then, further analysis, such as trend analysis can be performed on the values.
In these diagrams, one variable denotes one axis and another variable denotes the other axis.
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3.8. Control Charts
Control chart is the best tool for monitoring the performance of a process. These types of charts can
be used for monitoring any processes related to function of the organization.
These charts allow you to identify the following conditions related to the process that has been
monitored.
 Stability of the process
 Predictability of the process
 Identification of common cause of variation
 Special conditions where the monitoring party needs to react
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3.9. Pareto Charts
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Pareto charts are used for identifying a set of priorities. You can chart any number of issues/variables
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related to a specific concern and record the number of occurrences.
This way you can figure out the parameters that have the highest impact on the specific concern.
This helps you to work on the propriety issues in order to get the condition under control.
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SIGNIFICANCE:
Above seven basic quality tools help you to address different concerns in an organization.
Therefore, use of such tools should be a basic practice in the organization in order to enhance the
efficiency.
Trainings on these tools should be included in the organizational orientation program, so all the staff
members get to learn these basic tools.
Most of the organizations use quality tools for various purposes related to controlling and assuring
quality.
Although there are a good number of quality tools specific to certain domains, fields and practices,
some of the quality tools can be used across such domains. These quality tools are quite generic and
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can be applied to any condition.
There are seven basic quality tools used in organizations. These tools can provide much information
about problems in the organization assisting to derive solutions for the same.
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A number of these quality tools come with a price tag. A brief training, mostly a self-training, is
sufficient for someone to start using the tools.
Let's have a look at the seven basic quality tools in brief.
GLOSSARY:
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Variables – The measurement data will vary continuously Ex: Voltage, Current, Length, Efficiency.
Attributes – Any counting can occur in whole numbers Ex: No. of defects in a software, No. of
parts rejected.
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1.REFERENCES:
1. Dale H.Besterfiled, et at., “Total Quality Management”, Pearson Education Asia,Third

Edition, Indian Reprint (2006).
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2. V.JayakumarDr.R.Raju “Total Quality Management” – Lakshmi publication ,Chennai, 8th

Edition - 2011.
3. www.brighthubpm.com/methods-strategies/71071-great-tqm-tools-for-better-quality-
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management/#
2. New Seven management Tools

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Why?
It is a simple and effective tool. This approach focuses on the process (to reveal the causes),
rather than the people.
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Example: Why was there a delay in dispatch of good?
Cutting tool failed, resulting in delay in manufacture.
Why? The tools were reused?
Why? Ordered tool were not delivered?

Solution changes the dispatch schedule, if ever the tools were not delivered.
Forced Field Analysis
Readers’ attention is invited to the discussion in Chapter 2 on this topic.
Nominal Group Technique
This technique provides for ideas input from every one in the team and for effective decision
making.
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A team wants to decide upon a current complaint to attend. Every one in the team writes the
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problem on a paper, what they think is most important. They are listed in a chart and then the team
members are asked to rank, from most important to least important. The ranking are given a
numerical value starting from, say, on a 10 to 1 scale. Points for each problem is totaled and the ones
with highest number of points, is considered o be the most important.
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The seven advanced tools of quality management or the ‘New Seven’ is a collection of tools put
together by a set of Japanese quality professionals. , Arrow Diagram, was known to engineers and
project managers by names like PERT (Programme Evaluation and Review Technique) or CMP
(Critical Mean Path). Another tool in this set PDPC (Process Decision Programme Chart) has been
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used in operations research.
3. CONCEPT
These tools, unlike SPC tools are qualitative tools. Most of these tools do not involve the use of
numerical data.
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. Like all management tools these are judgmental tools.

Managers are often called upon to make decisions based on their judgement with help of incomplete
information or on subjective issues.
Team work and techniques like brainstorming are very essential for best results with such tools.
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The seven tools we will see are :

1. Affinity diagram
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2. Relations diagram
3. Tree diagram
4. Matrix diagram
5. Matrix data analysis diagram .
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6 .Process decision programme chart

7. Arrow diagram
3. Affinity Diagram
The purpose of an affinity diagram is to provide a visual representation of grouping of a large number
of ideas or factors or requirements into logical sets of related items to help one organise action plans
in a systematic manner.
Procedure

The steps in the procedure for preparing an affinity diagram are :
1. Decide the subject or the topic
2. Generate a large number of ideas through brainstorming
3. Decide the number of groups and their titles. Create a card for each group. Enter the title of the
group at the top of the card.
4. Distribute all the ideas among the cards. If necessary, create new cards for additional groups.
5. Arrange the cards according to the relationship between the groups.
6. Give a name to the affinity diagram.
Applications:
The structure and the procedure for affinity diagram would have shown how simple the tool is. Its
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simplicity makes it easy to combine it with other tools and put it to a wide variety of applications. For
instance, it can be combined with a cause-and-effect diagram or a relations diagram to identify and
regroup causes for a problem or it can be combined with a tree diagram to categorise
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possible solutions. Thus it can assist in problem solving. It can be used to group customer
requirements in a complex product and can help one to design a product with characteristics and
features that would satisfy and delight customers. It can be used to categorise actions in an
implementation plan leading to a rationalised distribution of responsibility. In fact the tool can
be used to break up any complex problem or task into smaller more easily manageable bits. Someone
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has asked a question - “How do you eat a whale ?” which has an obvious answer -”A mouthful at a
time”. Another similar set of a question and an answer is - “How to eat an elephant - slice by slice”.
Well affinity diagram is a tool that helps to break up a whale into convenient mouthfuls or an
elephant into manageable slices. Its simplicity makes it a very widely applicable tool.
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2.Relations Diagram
Purpose
The purpose of relations diagram is to generate a visual representation of the relations between an
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effect and its causes as well as the interrelationship between the causes in complex problems.
Structure
As mentioned in the opening paragraph of the chapter, the structure of relations diagram is not very
rigid; it is quite flexible. Only thing fixed about the diagram is a bold bordered rectangle in which the
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‘effect’ is written. The causes are entered in light rectangles and lines are drawn to show relation
between the rectangles. The lines have arrows at one end showing which is the cause and which is the
effect - the arrow always leading from the cause to the effect. The most common shape the diagram
takes has the ‘effect’ at the centre, with immediate causes surrounding it and secondary and tertiary
causes as outer layers.
5. Procedure
To prepare a relations diagram, there is a need for a large number of causes.
No single individual can generate an exhaustive list of causes.

Hence the tool gives best results when it is used in a group. The group must brainstorm the
subject to get the maximum number of causes.
The steps in the preparation of a relations diagram are:
1. Decide the ‘effect’ or the problem for which causes are to be found.
Write is in the centre of the flip chart or a board and enclose it in a dark bordered rectangle.
Discuss the subject and confirm the ‘effect’.
2. Brainstorm to identify the immediate causes for the effect first.

Enter these in rectangles around the central dark rectangle.
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Take care to place causes likely to be related to one another in adjacent positions.
It is quite possible that the locations of the causes may have to be changed as one progresses.
Hence a white board is preferable to a flip chart for this exercise. If a flip chart is used, the causes
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may be written on post-it pads and stuck on the chart so that their location can be changed easily.
3. Connect these immediate causes to the effect by connecting the rectangles of the causes to that of
the effect with a line with an arrow pointing towards the effect. Explore the cause and effect
relationship among the immediate causes and connect them, keeping in mind that
the arrow always points to an effect.
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4. Taking each of these immediate causes as an effect, brainstorm to find causes for them one by one.
The key question for identifying causes is “why ?”. Keep asking the question till the root causes are
identified for the immediate, secondary and tertiary causes.
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5. Explore the relationship between all the causes and connect the rectangles as in step-3. Show as
many relations among different causes as possible. A large number of routes leading to the same root
causes provides an indication that the root cause may be an important contributor to the problem.
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6. Brainstorm to find the more important root causes and more prominent links leading to the effect.
Mark these by making the rectangles and the connecting lines darker.
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7. If necessary, rearrange the rectangles in such a way that the connecting lines are short and the
diagram compact.
9. Provide a suitable title to the diagram.

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6. Applications
Relations diagram can be applied to explore cause and effect relationships, especially in complex
situations where the causes are likely to be mutually related. The most common use is in problem
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solving to identify multiple interrelated causes. The output of the tool is a list of root causes for the
problem with some indication of their relative importance. The output has to be considered as only an
indication of the relative importance of the causes. Data has to be collected to confirm or reject the
conclusions arrived at the end of the session. Priority of corrective actions to eliminate the causes
should be based on the data collected, not on output of relations diagram. The output of
relations diagram is based on the perception of the members of the group brainstorming the issue; it
needs to be supported by facts. While the output is important as it points a direction to data collection
efforts, it is no substitute for facts and data.

7. Relations diagram
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8. Tree Diagram
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Purpose
The purpose of the tree diagram is to explore ways and means to achieve an objective, develop a list
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of alternate means to reach the desired situation in a sequential order and to present them in a visual
form.
Procedure
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This tool like other tools in the ‘new seven’ is a group tool. A brainstorming session is necessary to
collect a large number of ideas for the means to achieve the objective. The rules of brainstorming
should be observed to get the best results from the tool.
The steps in the procedure to develop a tree diagram are :
1. Identify a high priority problem that needs to be solved at the earliest.

Prepare an objective statement describing the desired situation or the target solution.
2. Decide the appropriate form of the diagram - cascade or tree as well as direction of flow after a
brief discussion. Place the target solution in the dark rectangle.
3. Brainstorm to identify the primary means to achieve the objective. Arrange them in an appropriate
order keeping in mind the likely interrelations between them and place them in rectangles at the first
level.
4. For each of the primary means, identify secondary means which would be necessary to attain those
means. Arrange them in next level boxes.
5. Identify tertiary means required to attain each of the secondary means and place them in a proper
order in the next level boxes.
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6. Continue the process till the group feels that the end of the line has been reached.
7. If a lower level means is required to attain two higher level means, it may be connected to both.
Rearrange the boxes if necessary to make this possible. Use of POST-IT pads can make such a
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rearrangement simple.
8. Brainstorm to reach a consensus on the relative importance of the last level means to priorities
action.
9. Give a suitable title to the diagram. Application The most important application of the tree diagram
is for devising solutions for problems. It helps one to develop a systematic step by step strategy to
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achieve an objective. It is also useful in monitoring the implementation of solutions by taking care of
accomplishment of means at different levels.
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9. Matrix Diagram
Purpose
The purpose of a matrix diagram is to explore the existence and the extent of relations between
individual items in two sets of factors or features or characteristics and express them in a symbolic
form that is easy to understand. The purpose for which the tool is most frequently used is to
understand the relation between customer expectations as expressed by the customers and product
characteristics as designed, manufactured and tested by the manufacturer.
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Procedure
The steps in the procedure to prepare a matrix diagram are :
1. Decide the two sets of factors for which relations are required to be clarified. Call the set of the
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main factors ‘features’ and the set of factors dependent on it counterpart ‘characteristics’ or
characteristics.
2. Divide the features into primary, secondary and tertiary features.
3. Divide the characteristics into primary, secondary and tertiary characteristics.
4. Place the features vertically on the left hand side of the matrix and characteristics horizontally on
top of the matrix.
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5. Enter the importance of the features on the column after that for the tertiary features.
6. In the main body of the matrix, place symbols at the squares denoting the relationship between
thefeature and the characteristic meeting at the intersection. The symbols to be used are :
- Strong relationship
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- Medium relationship
- Weak relationship
In case there is no relation between the concerned feature and characteristic, leave the square blank to
indicate ‘no relation’. The relationship should be based on data available with the team or on the
results of a brainstorming session which must be confirmed by collecting necessary data.
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7. Title the diagram suitably. ApplicationsMatrix diagram, being a very simple table showing
relations between individual items in two sets of factors, can be put to a wide variety of uses.
The symbolic representation of the relationship makes the diagram so much easier to understand as
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compared to a table with a lot of figures. Let us see some of the possible applications of a matrix
diagram.
Matrix diagram can be used to solve problems by arranging data in such a way that the relations
between relevant factors are brought into sharp focus. It can be used to understand relations between
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customer satisfaction and product characteristics, between complaints and product groups, between
complaints and geographical regions, between a product’s performance in the market and
promotional inputs on it and so on. Once the relations between individual items in sets of factors are
clearly understood and agreed upon, it becomes easy to solve problems and to plan and implement
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solutions systematically.
There is no limit to the use of the tool. The unlimited possibility of the application of the tool is
proved by a couple of unusual examples. A book on
QC tools written by Japanese authors gives an example where the tool was used to describe the
relations between male and female members of the staff in an office. A recent article in a magazine
brought out by an NBFC (Non Banking Finance Company) for the benefit of investors used the
matrix diagram to depict the vulnerability of different industries. The diagram provides relation
between 24 industries from Aluminium and Automobiles to tyres and yarn with half a dozen

parameters such as over-capacity, demand recession, cheap imports etc. The matrix had symbols
indicating high, moderate, slight or no vulnerability of the industry on that parameter. The only
difference is that the symbols used were not the same as those conventionally used in a matrix
diagram. The most important application of matrix diagram is in clarifying relations
between individual features of customer requirements and individual product characteristics. Thus the
tool enables one to translate customer expectations into technical specifications accurately. In other
words it helps one develop a product specification that will satisfy customer expectations. Its use can
be extended to clarify the relationship between product characteristics on one side and product
formulation and process parameters on the other side. In other words it can be used to generate a
process specification that would ensure compliance to the requirements of a product specification. It
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can be used to develop specification requirements for inputs to a process by studying their relation to
the output requirements.
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10. Matrix Data Analysis Diagram

Purpose
The purpose of matrix data analysis diagram is to present numerical data about two sets of factors in a
matrix form and analyse it to get numerical output. The factors most often are products and product
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characteristics. The purpose then is to analyse the data on several characteristics for a number of
products and use the information to arrive at optimum values for the characteristics for a new product
or to decide the strong points of a product and use the information for designing a strategy for the
promotion of the product.
Procedure
The procedure for creating a matrix data analysis diagram consists of the following steps:
1. Decide the two factors whose relations are to be analyses.
2. Check the number of individual items in the two factors.

3. Prepare a matrix to accommodate all the items of the two factors.
4. Enter numerical data in the matrix.
5. Give the diagram a suitable title.
Applications
The most common application of matrix data analysis diagram is to decide the desired product
characteristics of a new product based on the analysis of product characteristics of similar products in
the market and the intended positioning of the new product. For instance the characteristics of a toilet
soap for customers with normal skin would be somewhere in between those for a soap for dry skin
and a soap for oily skin. A cosmetic product for growing children would have characteristics between
those of a baby cosmetic and an adult cosmetic. By collecting data on the product characteristics of
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related products and placing them in a matrix data analysis diagram, one can decide the desired
characteristics of the proposed product depending on target group of customers for the new product.
Analysis of the data can also be used to identify the strongest characteristics of an existing product to
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decide its promotional inputs. The tool can also be used to study the causes of customer complaints. It
can also be used to determine process parameters to achieve desired product characteristics.
The tool can be very useful in compiling data obtained on the analysis of competitive products with a
view to develop a product better than the competition or to devise a marketing strategy for the
product based on its strengths.
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Process Decision Programme Chart

Purpose
The purpose of process decision programme chart is to prepare for abnormal occurrences with low
probability which may otherwise be overlooked and to present the occurrences as well as the

necessary countermeasures to guard against such occurrences in the form of a visual chart. The tool
forces one to
think of the possible obstacles in the smooth progress of a process or a project and then find ways and
means to surmount those obstacles to ensure the successful and timely completion of the process or
the project. Thus the tool helps one to prepare a contingency plan to achieve the objective if
adverse events occur.
Procedure
The steps in the preparation of a process decision programme chart are :
1. Prepare a ‘normal’ flowchart of the process with all expected events as steps in the chart.
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2. Consider the possibility of the process not going as per the plan due to any abnormal, though less
probable, occurrences.
3. Show these occurrences on the flowchart through branching at appropriate locations.
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4. Consider how the abnormal occurrence will affect the process and search for ways and means to
counter the effect.
5. Show these countermeasures in rectangles connecting the corresponding abnormal occurrence on
one side and the process objective or the goal on the other.
6. Give a suitable title to the diagram.
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Steps 2 and 4 require totally different type of thinking and hence the team must be prepared to think
on appropriate lines. One needs to put on different ‘thinking hats’ while brainstorming steps 2 and 4
and the facilitator must inform all members about it. As suggested by Dr. Edward De Bono in his
book ‘Six Thinking Hats’ the correct thinking hats for steps 2 and 4 are black and yellow which
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respectively encourage ‘negative logical’ and ‘positive logical’ thinking.
Applications
The tool has the widest range of applications as it can be used for a range of activities from simple
ones like a game of bridge or reaching railway station or airport in time to catch a train or a plane to
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complex processes or projects. In fact if can be applied to all processes to ensure their success by
systematically minimising the untoward effect of unexpected adverse occurrences. Through the
process of brainstorming for possible adverse occurrences and for measures to counter them, one
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assures the success of the process even if such events do occur. The tool can be used to prevent
problems by identifying opportunities for error and devising measures to avoid failure. It can be used
during the implementation of solutions for predicting resistance and for planning measures to
overcome the resistance.
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11.Process decision programme chart
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12.Arrow Diagram
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Purpose
The purpose of an arrow diagram is to create a visual presentation of the steps of a process or tasks
necessary to complete a project with special emphasis on the time taken for these activities. The
diagram provides a clear understanding of the schedule of various steps in the process which helps
one to monitor the process for ensuring its completion on time.
Procedure
The steps for preparing an arrow diagram are :

1. List all tasks or activities that need to be accomplished before the completion of the process or the
project.
2. Decide which steps are undertaken in series and which steps can be run in parallel.
3. Arrange the activities in a proper sequence.
4. Prepare ‘Event Nodes’ at the completion of steps and number them. Where the process is
bifurcating into two or more parallel streams, more lines will flow from a node and where the parallel
streams are merging, two or more steps will lead to a node.
5. Write the description of the step on top of the line or to the left of the line. Decide the time required
for completing each step and write it under or to the right of the line.
6. Calculate the earliest time to reach an event node for the start of the process. Where more than one
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streams are combining, the maximum time taken by a stream is taken into consideration. This time is
entered on the top half of the rectangle. This time is related to the starting time of the process which is
taken as zero.
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7. After the time for all event nodes including the completion of the process or the project is
available, one calculates the latest time by which an event node must be reached. This is done by
starting at the time of completion and going back step by step. The time is entered on the bottom half
of the rectangle. The time indication at all event nodes will appear as :
X Y where X is the earliest time by which the event can be completed and
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Y is the latest time by which the event should be completed.
8. Give a title to the diagram. As the calculation of the time indications is extremely important in the
construction of an arrow diagram it is necessary that we understand the procedure well. Let us
understand the concept through diagram.
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Let us calculate the time the events can be reached earliest by adding time for the step to the time of
the earlier event starting with zero time at the start i.e. event-1. Where there are two streams one has
to take the time for the longer or the critical path. The time to be put on the top half of the rectangle
for the 15 event nodes are given in table 3.
For event node 7, we get two values. As the time for node 6 is 5 hours and step from 6 to 7 takes one
hour, the time for 7 would be 6 hours. But time for node 3 is 4 hours and the step from 3 to 7 takes 3

hours, the time for node 7 comes to 7 hours. The earliest both streams get ready is 7 hours and hence
one has to take 7 hours as the time for node 7. The same principle has been applied for calculating the
time for nodes 10 and 14.
Now let us see how to calculate the time to be put on the bottom half of the rectangle or the time by
which the event must be reached to ensure
1 2 3 7 10 11 14 15
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1 11completion of the project on time. In this case one has to start with event 15 as 20 hours and
calculate the time for the event by reducing the time taken for the step. Step from event 14 to 15 takes
2 hours. To complete the project at 20 hours, it is essential that one reaches event 14 by 18 hours. In
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this way
we get the time by which the events must be accomplished. These are given in table 4.
Applications
The most common application of an arrow diagram is in planning and scheduling projects which
involve a large number of activities. The diagram is also useful in planning and scheduling steps in
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complicated processes. Once an arrow diagram is ready with time indications for all stages of the
project or the process, referred as the event nodes in the procedure, one can look for
opportunities to reduce the time taken for the project by concentrating on the steps on the critical
path. It can then be used to monitor the progress of the project throughout its duration.
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13. SIX SIGMA
14.Prerequisite Discussion
Six Sigma is a set of techniques and tools for process improvement. It was developed by Motorola in
1986, coinciding with the Japanese asset price bubble which is reflected in its terminology.
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Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of
defects (errors) and minimizing variability in manufacturing and business processes. It uses a set
of quality management methods, including statistical methods, and creates a special infrastructure of
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people within the organization ("Champions", "Black Belts", "Green Belts", "Yellow Belts", etc.)
who are experts in these methods.
WHAT IS SIX SIGMA?
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 Six sigma stands for six standard deviation from mean (sigma is the Greek letter used to
represent standard deviation in statistics).
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 Six sigma, similar to Zero Defect (ZD), is a philosophical benchmark or standard of

excellence proposed by Philip Crosby.
 Six sigma methodology provides the techniques and tools to improve the capability and
reduce the defects in any process.
 It was started by Motorola in 1987, in its manufacturing division.
 Six sigma strives for perfection. It allows for only 3.4 defects per million opportunities (or
99.999666 percent accuracy). Here a defect can be anything from a faulty party to an
incorrect customer bill.

 Six sigma improves the process performance, decrease variation and maintains consistent
quality of the process output. This leads to defect reduction and improvements in profits,
product quality and customer satisfaction.
 Six sigma incorporates the basic principles and techniques used in business, statistics and
engineering.
The objective of six sigma principle is to achieve zero defects products/process. It allows 3.4
defects per million opportunities.
WHY DO WE NEED SIX SIGMA?
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(Three sigma quality is not enough. Why?)
We know that, the three sigma quality, i.e., the natural variability (x  3) is equal to tolerance
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(= upper specification limit – lower specification limit). It means, in normal distribution curve, only
0.27% of the output would be expected to fall outside the specifications limits.
The real meaning of 3 concept: A medium aircraft consists of 10,000 different parts. At
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3 quality, 27 of those parts in an assembled aircraft would be defective. So three sigma quality level
cannot be accepted as good enough quality level. So we have to increase the sigma level (i.e.,
reducing the number of defectives). In fact, even four sigma quality also not sufficient for the aircraft
case. That’s why six sigma quality level is preferred than 3 and 4 quality levels.
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15. CONCEPT
Six Sigma – A vision of quality which equates with only 3.4 defects per million opportunities for
each product or service transaction. Strives for perfection.
DMAIC methodology provides a structured framework for solving business problems by assuring
correct and effective process execution.
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This methodology has 6 phases in which, in the case of Six Sigma, teams take total employee
involvement approaches to complete the cycle of process management and use self-diagnosis skills to
fulfill the goals of each phase.
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16. DMAIC
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17.DMADV
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DMAIC – It is used for improving existing processes/products.
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DMADV – It is applied to a new processes/products.
Example: (Need for Six Sigma)
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Aircraft consist 10000 different parts.
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At 3 sigma level27 parts will be defective.
It cannot afford to fail 27 parts in million at 3 sigma level.
Similarly 1). Failure in surgery. 2). Testing of nuclear plant.
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Therefore increased to six sigma level. (reduce the number of defects)
Specification Limit Percent Defective ppm
+/- 4 sigma 99.3790 6210

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+/- 5 sigma 99.97670 233

+/- 6 sigma 99.99966600 3.4 (World Class)
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18.Significance:
Each Six Sigma project carried out within an organization follows a defined sequence of steps and
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has quantified value targets, for example: reduce process cycle time, reduce pollution, reduce costs,
increase customer satisfaction, and increase profits.
19.Application:
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Today six sigma can apply to many fields such as services, medical and insurance procedures,
call centers etc.,
20.Companies which have adopted six sigma:
 Motorola
 Sony
 IBM

 Honda
 Texas Instruments
 Hitachi
 Polaroid
 Canon
21.Glossary :
DMAIC – It is used for improving existing processes/products.
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DMADV – It is applied to a new processes/products.
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22.References:

2.
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V.JayakumarDr.R.Raju “Total Quality Management” – Lakshmi publication ,Chennai, 8th
Edition - 2011.
23.BENCHMARKING
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CONCEPT:
 Benchmarking is a systematic method by which organizations can measure themselves against
the best industry practices.
 Benchmarking is a systematic search for the best practices, innovative ideas, and highly
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effective operating procedures.
24.BENCHMARKING CONCEPT
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What is our performance What are others

level ? performance levels ?
How do we do it ?
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How did they get there ?

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Creative
Adaptation
Breakthrough
Performance

25.REASONS TO BENCHMARK :
 It is a tool to achieve business and competitive objectives.

 It can inspire managers (and Organizations) to compete.
 It is time and cost effective.
 It constantly scans the external environment to improve the process.
 Potential and useful technological breakthroughs can be located and adopted early.
26.PROCESS OF BENCHMARKING
The following six steps contain the core techniques of Benchmarking.
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26.1Decide what to benchmark
 Benchmarking can be applied to any business or production process.
 The strategy is usually expressed in terms of mission and vision statements.
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 Best to begin with the mission and critical factors.
 Choosing the scope of the Benchmarking study.
 Pareto analysis – what process to investigate.
 Cause and Effect diagram – for tracing outputs back.
26.2Understand current performance
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Understand and document the current process.
Those working in the process are the most capable of identifying and correcting problems.
While documenting, it is important to quantify.
Care should be taken during accounting information.
26.3Plan
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 A benchmarking team should be chosen.
 Organizations to serve as the benchmark need to be identified.
 Time frame should be agreed upon for each of the benchmarking tasks.
26.4Types of benchmarking
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 Internal
 Competitive
 Process
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26.5Study Others
Benchmarking studies look for two types of information
 How best the processes are practiced
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 Measurable results of these practices

Three techniques for conducting the research are
 Questionnaires
 Site visits
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 Focus groups
26.6Learn from the data
Answering a series of questions like
 Is there a gap between the organization’s performance and the performance of the best-in-
class organizations?
 What is the gap? How much is it?
 Why is there a gap? What does the best-in-class do differently that is better?
 If best-in-class practices were adopted, what would be the resulting improvement?

Benchmarking studies can reveal three different outcomes

 Negative gap
 Parity
 Positive gap
26.7Using the findings
The objective is to close the gap. For this
 Findings must be communicated to the people within the organization
 Action plans must be developed to implement new processes
Groups that must agree on the change
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 Process owners
 Upper management
Steps for the development and execution of action plans are
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1. Specify tasks
2. Sequence tasks
3. Determine resources needs
4. Establish task schedule
5. Assign responsibility for each task
6.
7.
Describe expected results
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Specify methods for monitoring results
27.PITFALLS AND CRITICISMS OF BENCHMARKING :

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 Idea of copying others
 It is not a cure or a business philosophy
 Some process have to be benchmarked repeatedly
 It is not a substitute for innovation.
27.1SIGNIFICANCE:
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 • Benchmarking is a systematic method by which organizations can measure themselves

 against the best Industry practices
 • It promotes superior performance by providing an organized framework through which
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 organization learn how the “ best in class” do things.

 • It helps for continuous improvement.
 • Benchmarking inspire managers (and organization) to compete.
 • Through Benchmark process organization can borrow ideas, adopt and refine them to
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 gain competitive advantages.

27.2 Application:
Now a days, more than 60% companies in the world uses this technique for fixing their target for
continuous improvement. For them it is an important tool. But to be effective it must be used
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properly. It breaks down (waste money, time and energy and some times morale too) if process
owners and managers feel threatened or do not accept and act on the findings. Finally, benchmarking
is not a substitute for innovation; however, it is a source of ideas from outsidethe organization.
These 4 questions formed the basis on which Boeing, Digital equipments company,
Motorola and Xerox jointly developed a benchmarking template.

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28.FAILURE MODE AND EFFECTS ANALYSIS
Prerequisite discussion:
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Failure Mode and Effects Analysis (FMEA) is a method designed to:

Identify and fully understand potential failure modes and their causes, and the effects of failure on
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the system or end users, for a given product or process.

Assess the risk associatedwith the identified failure modes, effects and causes, and prioritize issues
for corrective action.
Identify and carry out corrective actions to address the most serious concerns.
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An FMEA is an engineering analysis

done by a cross-functional team of subject matter experts
that thoroughly analyzes product designs or manufacturing processes
early in the product development process.
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Finds and corrects weaknesses before the product gets into the hands of the customer.
If effectively used throughout the product life cycle, it will result in significant improvements to
reliability, safety, quality, delivery, and cost
MEANING:
Failure mode and effect analysis also known as risk analysis is a preventive measure to
systematically display the causes, effects, and possible actions regarding observed failures.

Objectives of FEMA:
1. The objective of FEMA is to anticipate failures and prevent them from occurring. FEMA
prioritizes failures and attempts to eliminate their causes.
2. FEMA is an engineering technique is used to define, identify and eliminate known and or
potential failures, problems, errors which occur in the system, design, process and service before
they reach the customer.
3. FEMA is a before the event action and is done when existing systems products processes are
changed or redesigned.
4. FEMA is a never ending process improvement tool.
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28.1Types of FEMA:
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1. System FEMA
2. Design FEMA
3. Process FEMA
4. Service FEMA
5. Equipment FEMA
6. Maintenance FEMA
7. Concept FEMA
8. Environmental FEMA
28.2Benefits of FEMA:
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1. Improve product/process reliability and quality.
2. Increase customer satisfaction.
3. Early identification and elimination of potential product/process failure modes.
4. Prioritize product or process deficiencies
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5. Capture engineering/organization knowledge

6. Document and track the actions taken to reduce risk
7. Provide focus for improved testing and development.
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8. Minimize late changes and associated cost.

9. Act as catalyst for teamwork and idea exchange between functions.
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Meaning of reliability:
Reliability is one of the most important characteristics of any product, no matter what its
application. Reliability is also an important aspect when dealing with customer satisfaction. Whether
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the customer is internal or external. Customers want a product that will have a relatively long service
life, with long times between failures. However, as products become more complex in nature,
traditional design methods are not adequate for ensuring low rates of failure. This problem gave rise
to the concept of designing reliability into the product itself.
Reliability requirements:
The acceptance of a certain product or process is subject to meeting certain set of given
requirements for reliability of the product or process. It is however important to realize that although

the definition for reliability is relatively simple, the customer and the supplier may have different
definitions of what failure constitute. This common agreement on what constitutes reliability should
be defined in terms of influence on other related systems, the complexity of the failure, and finally
the relative criticality of the failure.
Failure rate:
A vast majority of products follow a very familiar pattern of failure. When no information is
known about the reliability or conversely, failure of a product, component, system or process, except
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the failure rate which is a constant, periods of failure can conveniently be modeled by an exponential
distribution. The failures of most products can be classified in to three main categories: debug,
chance, and wear out. The first of these includes a high failure rate at the initial stages because of
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inappropriate use or flaws in the design or manufacturing. The next category is the failure of the
product due to accidents, poor maintenance, or limitations on the design. The final category covers
failure after the product or process has performed as expected for at least the amount of time given
by the manufacturer as the product or process life. A successful design or process ideally fails only in
this method.
STAGES OF FEMA.
The FEMA methodology has four stages: they are:

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Stage1: specifying possibilities
1. Functions
2. Possible failure modes
3. Root causes
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4. Effects
5. Detection/prevention
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Stage 2: quantifying Risk
1. probability of cause
2. severity of effect
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3. effectiveness of control to prevent cause

4. Risk priority number
Stage3: correcting High risk causes

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1. prioritizing work
2. detailing action
3. assigning action responsibility
4. check points on completion
stage4: re-evaluation of risk
1. Recalculation of risk priority number

STAGES OF FEMA:
1. Specifying possibilities
a. functions
b. possible failure modes
c. root causes
d. effects
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e. detection/prevention
2. Quantifying risk
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a. probability of cause
b. severity of effect
d. risk priority number.
3. Correcting high risk causes

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c. effectiveness of control to prevent cause.
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A. prioritizing work
B. detailing action
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C. assigning action responsibility.
D. checks points on completion.

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4. Re-evaluation of risk
A. recalculation of risk priority number

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28.3The design of FEMA document:
1. FEMA number
2. item
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3. Design responsibility
4. prepared by
5. model number/year
6. key date
7. FEMA date
8. Core team
9. Item function
10. potential failure mode
11. potential effects of failure

12. severity
13. classification
14. potential causes mechanisms of failure
15. occurrence
16. current design controls
17. detection
18. risk priority number
19. Recommend actions Responsibility and target completion dates
20. actions taken
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The process of FEMA and documentation
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1. process function requirements
2. potential failure mode
3. potential effects of failure
4. severity
5. classification
6.
7.
8.
9.
potential causes mechanisms of failure
occurrence
current process controls
detection
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28.4 Risk Priority Number (RPN) 10
“RPN” is a numerical ranking of the risk of each potential failure mode/cause, made up of the
arithmetic product of the three elements:
severity of the effect
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likelihood of occurrence of the cause

likelihood of detection of the cause.
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Example: 240 (10 x 6 x 4)
28.5 SIGNIFICANCE:
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Understanding the fundamentals and procedure of FMEAs, including the concepts and definitions
preparation steps for each FMEA project
applying lessons learned and quality objectives
providing excellent facilitation
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and implementing an effective company-wide FMEA process.

Implementing FMEA success factors will uniformly ensure FMEAs achieve safe, reliable and
economical products and processes.
28.6 APPLICATION:
FMEA OF A CAR DOOR.
An automobile manufacturer had a peculiar problem of corrosion of interior door panel in a car.
This affected a appearance functioning and added cost of repaint,etc.
The failiure effect led to severity ranking of seven.

The probability of occurrence of corrosion rank 6
The probability of detection of corrosion rank 7
The rpn number is 294 which is high.
The thickness of the paint coating on the interior door panel was revised and raised by 150mm.
The probability of occurrence of corrosion reduced from 6 to 2.

The probability of detection of corrosion reduced from 7 to 2.
Therefore The RPN number is reduced from 294 to 28.
Therefore by conducting FMEA study and carrying out corrective and preventive. .actions one can
prevent failures from reaching the customers.
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INFORMATION TECHNOLOGY.
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Information technology is a tool like the other tools and it helps the TQM organization to
achieve its goals. Over the past few decades, computers and quality management practices have
evolved together and have supported each other. This interdependence will continue in the near
future.
DEFINITION:
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Information technology is defined as computer technology for processing and storing information,
as well as communications technology for transmitting information.
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Levels of information technology

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1. Data
2. Information
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3. knowledge
Computers and the quality function
Computers play an essential role in the quality function. They perform very simple operations
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at fast speeds with an exceptionally high degree of accuracy. A computer must be programmed to
execute these simple operations in the correct sequence in order to accomplish a given task.
Computers can be programmed to perform complex calculations, to control a process or test, to
analyze data, to write reports, and to recall information on command. The quality function needs
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served by the computer are:
1. data collection
2. data analysis and reporting
3. statistical analysis
4. process control
5. test and inspection
6. system design

Data collection:
The collection utilization, dissemination of quality control information is best accomplished

when the information is incorporated into an information technology system. IT maintains
relationships with other activities such as inventory control, purchasing, design, marketing,
accounting, and production control. It is essential for all the quality needs described in this chapter.
Linkages are developed between the stored data records of the various activities in order to obtain
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additional information with a minimum of programming and to improve the storage utilization
Data analysis, reduction, and reporting:
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While some of the quality information is merely stored in the computer for retrieval at a future
time, most of the information is analyzed, reduced to a meaningful amount, and disseminated in the
form of a report. These activities of analysis reduction and reporting are programmed to occur
automatically as the data are collected or to occur on command by the computer operator.
Statistical analysis:
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The first and still an important use of the computer in quality control is for statistical
analysis. Most of the statistical techniques can be easily programmed. Once programmed
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considerable calculation time is saved, and the calculations are error free.
Process control:
The first application of computers in process control was with numerically controlled
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machines. Numerically controlled machines used punched paper to transmit instructions to the
computer which then controlled the sequence of operations. Paper tape is no longer used to provide
instructions to a machine
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Automated test and inspection:
If test and inspection are considered a process in itself or part of a production process then
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automated test and inspection is similar to the previous section on automated process control,
computer controlled test and inspection systems offer the following advantages improved test
quality, operating cost, better report preparation, improved accuracy, automated calibration, and
malfunction diagnostics.
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System design
Software applications adapted to the quality function are becoming more sophisticated and
comprehensive. Execution of the menu is by function key, cursor and enters key, voice, mouse, or
linkage from another program.

THE INTERNET AND OTHER ELECTRONIC COMMUNICATION
The internet is a world wide network of computer networks. It began in 1969 as a

means of exchanging data between universities and the U.S military. In 1991 the national science
foundation which was responsible for the internet, released the ban on commercial use of it.
Other electronic communication
1. Intranet
2. Instant messaging
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3. Video conferencing
4. Virtual teaming
5. Document management
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6. E-learning
7. E-government
8. E-commerce
9. Business-to-business
10. Business-to-customers
11. Website design
INFORMATION QUALITY ISSUES

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Information quality issues encompass:
1. sufficiency
2. accuracy
3. timeliness
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4. intellectual property
5. security
6. privacy
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7. pollution
8. creativity control and prevention
28.7 Glossary
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RELIABILITY
Reliability of an entity is defined as the probability that will perform its intended function for
a specified period of time under stated operating conditions
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RPN - Risk Priority Number

SEV – Severity
OCC – Occurrence
DET – Deduction
28.8References:


2. V.JayakumarDr.R.Raju “Total Quality Management” – Lakshmi publication ,Chennai, 8th
Edition - 2011.
3. Material for this presentation is based on the book Effective FMEAs, by Carl S. Carlson,
published by John Wiley & Sons, © 2012
4. Subburaj Ramasamy, “Total Quality Management”, McGrawhill Education, New Delhi,
India.
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Unit 1V
TQM TOOLS AND TECHNIQUES-II
4.1 PREREQUESITE DISCUSSION:

First company in Japan to introduce Quality Circles was the Nippon Wireless and Telegraph
Company in 1962. By the end of that year there were 36 companies registered with JUSE by 1978 ,
but then spread to more than 35 other companies in the first year.
Quality circles are generally free to select any topic they wish (other than those related to salary and
terms and conditions of work, as there are other channels through which these issues are usually
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considered.
Quality circles have the advantage of continuity; the circle remains intact from project to project.
4.2 CONCEPT:
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A quality circle is a volunteer group composed of workers (or even students).
Supervisor Meet regularly in paid time who are trained to identify, analyze and solve work-related
problems and present their solutions to management.
When matured, true quality circles become self-managing, having gained the confidence of
management.
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Quality circles are an alternative to the rigid concept of division of labor, where workers operate in a
more narrow scope and compartmentalized functions.
Typical topics are improving occupational safety and health, improving product design, and
improvement in the workplace and manufacturing processes.
4.3 Improve Customer Satisfaction
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Stock is available at the right time and right location.
Simply stated, stock is available at the right time and right location. Inventory Optimization balances
the investment in an inventory with the fill-rate (service level) goals of a company. Financial
considerations and/or constraints can also be applied in the development of the algorithm. These
highly complex algorithms work behind the scene, allowing the user to feel confident in using
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optimization to help manage their inventory.

A better balanced inventory means more customer satisfaction. Customer service level management
is one of the intrinsic values to Valogix solutions. Repeat orders from current satisfied customers are
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now more profitable than acquiring new customers! If your money is tied up in a very slow moving,
excess and inactive stock you won’t have the cash you need to buy more of the items your customers
are looking for and they will go elsewhere.
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4.4APPLICATIONS:
Quality circles have been implemented even in educational sectors in India, and QCFI (Quality Circle
Forum of India) is promoting such activities. However this was not successful in the United States, as
it (was not properly understood and) turned out to be a fault-finding exercise although some circles
do still exist.
References:
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http://www.valogix.com/improve_customer_satisfaction.html
4.5 QUALITY FUNCTION DEPLOYMENT
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Prerequisite discussion:
Ultimately the goal of QFD is to translate often subjective quality criteria into objective ones.
That can be quantified and measured and which can then be used to design and manufacture the
product.
It is a complimentary method for determining how and where priorities are to be assigned in product
development.
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Quality Function Deployment was developed by Yoji Akao in Japan in 1966.
4.6 QFD TEAM :
There are two types of teams namely
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1. Team for designing a new product
1. Team for improving an existing product
4.7 BENEFITS OF QFD :

1. Improves Customer satisfaction
 Creates focus on customer requirements
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 Uses competitive information effectively

 Prioritizes resources
 Identifies items that can be acted upon
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2. Reduces Implementation Time

 Decreases midstream design changes
 Limits post introduction problems
 Avoids future development redundancies
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3. Promotes Team Work
 Based on consensus
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 Creates communication
 Identifies actions
4. Provides Documentation
 Documents rationale for design

 Adds structure to the information
 Adapts to changes (a living document)

4.8 HOUSE OF QUALITY:
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Interrelationship
Between
Technical
Technical
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Descriptors
Descriptors
(Voice of the organization)

Customer Requirements
Customer Requirements
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(Voice of the customer)
Relationship between
Prioritized
Requirements and
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Descriptor
Prioritized
Technical Descriptors
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4.9 THE STEPS IN BUILDING A HOUSE OF QUALITY ARE :
1. List Customer Requirements (WHAT’s)

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2. List Technical Descriptors (HOW’s)

3. Develop a Relationship Matrix Between WHAT’s and HOW’s
4. Develop an Inter-relationship Matrix between HOW’s
5. Competitive Assessments
a. Customer Competitive Assessments
b. Technical Competitive Assessments
6. Develop Prioritized Customer Requirements
7. Develop Prioritized Technical Descriptors

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Phase 1, Product Planning: Building the House of Quality. Led by the marketing department,
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Phase 1, or product planning, is also called The House of Quality.
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Phase 1 documents customer requirements, warranty data, competitive opportunities, product
measurements, competing product measures, and the technical ability of the organization to meet
each customer requirement.
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Getting good data from the customer in Phase 1 is critical to the success of the entire QFD process.
Phase 2, Product Design: This phase 2 is led by the engineering department. Product design requires
creativity and innovative team ideas. Product concepts are created during this phase and part
specifications are documented. Parts that are determined to be most important to meeting customer
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needs are then deployed into process planning, or Phase 3.

Phase 3, Process Planning: Process planning comes next and is led by manufacturing engineering.
During process planning, manufacturing processes are flowcharted and process parameters (or target
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values) are documented.

Phase 4, Process Control: And finally, in production planning, performance indicators are created to
monitor the production process, maintenance schedules, and skills training for operators. Also, in this
phase decisions are made as to which process poses the most risk and controls are put in place to
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prevent failures.
Significance: QFD "is a method for developing a design quality aimed at satisfying the consumer and
then translating the consumer's demand into design targets and major quality assurance points to be
used throughout the production phase. ...
QFD is a way to assure the design quality while the product is still in the design stage.
 Quality Function Deployment is a planning tool used to fulfill customer expectations.

 Quality Function Deployment focuses on customer expectations or requirements, often
referred to as voice of the customer.
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4.7 HOUSE OF QUALITY:

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The primary planning tool used in QFD is the house of quality. The house of quality converts
the voice of the customer into product design characteristics. QFD uses a series of matrix diagrams,
also called ‘quality tables’, resembles connected houses.
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Basic structure of house of quality:
1. Customer requirements
2. Prioritized customer requirements
3. Technical descriptors
4. Relationship matrix
5. prioritized technical descriptors
6. Competitive assessments

7. Develop a relationship matrix between WHATS AND HOWS
4.8 Constructing the house of quality:

Step1: List customer requirements
Step2: List technical descriptors
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Step3: Develop a relationship matrix between HOWS
Step4: competitive assessments
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Step5: Develop prioritized customer requirements
Step6: Develop prioritized technical descriptors
4.9 QUALITY FUNCTION DEVELOPMENT PROCESS:
Phase 1: product planning
Step1: list customer requirements

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Step2: List technical descriptors
Step3: Develop a relationship between WHATS AND HOWS
Step4: Develop a interrelationship matrix between HOWS

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Step5: Do competitive assessments
Step6: Develop prioritized customer requirements

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Step7: Develop prioritized technical descriptors.
Phase 2: part development

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Step8: Deploy QFD process down to sub-components level both in terms of requirements and
characteristics.
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Step9: Deploy the component deployment chart. Relate the critical sub-component control
characteristics.
Phase 3: process planning
Step10: Develop the relationship between the critical characteristics and process used to create the
characteristics
Step11: Develop the control plan relating critical control to critical processes.

Phase 4: production planning
Step 12: Tabulate operating instructions from process requirements
Step13: develop prototype and do testing
Step14: Launch the final product to the market.
4.10 APPLICATION:
QFD is applied in a wide variety of services, consumer products, military needs, [2] and
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emerging technology products. The technique is also included in the new ISO 9000:2000 standard
which focuses on customer satisfaction.[3]
While many books and articles on "how to do QFD" are available, there is a relative paucity of
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example matrices available. QFD matrices become highly proprietary due to the high density of
product or service information found therein.
GLOSSARY:
QFD: The voice of the customer translated into the voice of the engineer.
Reference:
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http://www.ciri.org.nz/downloads/Quality%20Function%20Deployment.pdf
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4.11TAGUCHI’S QUALITY LOSS FUNCTION
Taguchi’s Quality Loss Function concept combines cost, target and variation in one metric with
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specifications being of secondary importance.
Taguchi has defined quality as the loss imparted to society from the time a product is shipped.
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Societal losses include failure to meet customer requirements, failure to meet ideal performance and
harmful side effects.
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 CUSTOMERS PERCEIVE QUALITY AS MEETING THE TARGET RATHER

THAN JUST MEETING THE SPECIFICATIONS.
There are three common quality loss functions

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1. Nominal - the - best.
2. Smaller - the - better.
3. Larger - the - better

4.12NOMINAL – THE – BEST :

Although Taguchi developed so many loss functions, many situations are approximated by the
quadratic function which is called the Nominal – the – best type.
L
LSL USL
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Loss (Rs)
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Y
0
τ-∆ τ τ+∆
Performance Characteristic
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Quadratic Loss Function

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The quadratic function is shown in figure. In this situation, the loss occurs as soon as the performance
characteristic, y, departs from the target τ.
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At τ, the loss is Rs. 0.
At LSL (or) USL, the loss is Rs. A.

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The quadratic loss function is described by the equation L = k (y - τ) 2.

Where,
L = cost incurred as quality deviates from the target.
y = Performance characteristic
τ = target
k = Quality loss coefficient.

The loss coefficient is determined by setting ∆ = (y – τ), the deviation from the target. When ∆ is the
USL (or) LSL, the loss to the customer of repairing (or) discarding the product is Rs. A.
Thus,
K = A / (y – τ)2 = A / ∆ 2 .
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A
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Loss (Rs)
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y
0 y
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Smaller-the-better
4.13 SMALLER – THE – BETTER :
The following figure shows the smaller – the – better concepts.

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The target value for smaller – the – better is 0. There are no negative values for the performance
characteristic.
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The radiation leakage from a microwave appliance, the response time for a computer, pollution from
an automobile, out of round for a hole etc. are the performance characteristics for this concept.

4.14 LARGER – THE – BETTER :
The following figure shows the concept of the Larger – the – better.
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Loss (Rs)
0
A
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y
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Larger-the-better
In the Larger – the – better concept, the target value is ∞ (infinity), which gives a zero loss. There are
no negative values and the worst case is at y = 0. Actually, larger – the – better is the reciprocal of
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smaller – the – better. The performance characteristics in Larger – the – better are bond strength of
adhesives, welding strength etc.
4.15 Total Productive Maintenance

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Dr. Shyamal Gomes

Introduction: TPM - History:
TPM is an innovative Japanese concept. The origin of TPM can betraced back to 1951 when
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preventive maintenance was introduced in Japan. However the concept of preventive maintenance
was
taken from USA. Nippondenso was the first company to introduce plant wide preventive maintenance
in 1960. Preventive maintenance is the concept wherein, operators produced goods using machines
and the maintenance group was dedicated with work of maintaining those machines, however with
the automation of Nippondenso, maintenance became a problem as more maintenance personnel were
required. So the management decided that the routine maintenance of equipment would be carried out
by the operators. (This is Autonomous maintenance, one of the features of TPM). Maintenance group

took up only essential maintenance works .Thus Nippondenso which already followed preventive
maintenance also added Autonomous maintenance done by production operators.
The maintenance crew went in the equipment modification for improving reliability. The
modifications were made or incorporated in new equipment. This leads to maintenance prevention.
Thus
preventive maintenance along with Maintenance prevention and Maintainability Improvement gave
birth to Productive
maintenance. The aim of productive maintenance was to maximize plant and equipment
effectiveness to achieve optimum life cycle cost of production equipment. In Total Quality
Management, Total Productive Maintenance (TPM) is an important and effective tool for the
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excellence. Total productive maintenance (TPM) is keeping the current plant and equipment at its
highest productivity level through cooperation of all areas of the organization. Generally, the first
bridge to cross is to break down the traditional barriers between maintenance and
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production personnel so they are working together. Now, Maintenance management is planning,
organizing, controlling maintenance activities such that the over all maintenance cost is the minimum.
Maintenance is required not only by equipment but also by other facilities such as building, land,
garden, lawn etc. Maintenance lawns and garden of the premises of the factory may be important
aspects of environment protection especially in process industries. However, maintenance of
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equipment used directly in the production process is much more important for a business enterprise.
Maintenance of facilities and equipment is done to ensure that these are in good working condition at
any point of time and if breakdowns occur, necessary repairs should be done in order to bring these
back to running condition as early as possible.
4.16 What is Maintenance and what is Maintenance Management?
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� Maintenance is an initiatives that covers all those operations such as monitoring , inspecting,
adjusting, repairing and / or doing whatever is necessary to keep a machine, a facility, a
piece of equipment or transportation vehicle in the proper working conditions.
� Maintenance Management is reviewing, planning, organizing and controlling maintenance
activities such that the overall maintenance cost is the minimum.
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4.17 Maintenance development stages:
4.17.1. Break-down maintenance: is remedial or corrective maintenance that occurs when

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equipment fails and must be repaired on an emergency or priority basis. It means that people
waits until equipment fails and repair it. Such a thing could be used when the equipment failure does
not significantly affect the operation or production or generate any significant loss other than
repair cost.
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• Obviously this is not an ideal way of keeping equipment or machinery operating because of the
down time of the equipment or machinery when break down occurs.
• This results in loss of production due to idling of equipment and machinery and consequently idling
of labour also. Ultimately customers orders cannot be delivered as promised
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4.17.2 Preventive maintenance (1951):

It is a daily maintenance (cleaning, inspection, oiling and retightening),
design to retain the healthy condition of equipment and prevent failure through the prevention of
deterioration, periodic inspection or equipment condition diagnosis, to measure deterioration. It is
further divided into periodic maintenance and predictive maintenance. Just like human life is
extended by preventive medicine, the equipment service life can be prolonged by doing preventive
maintenance.

4.17.3. Periodic maintenance (Time based maintenance - TBM):
Time based maintenance consists of periodically inspecting, servicing and cleaning equipment and
replacing parts to prevent sudden failure and process problems.
4.17.4. Predictive maintenance:
This is a method in which the service life of important part is predicted based on inspection or
diagnosis, in order to use the parts to the limit of their service life. Compared to periodic
maintenance, predictive maintenance is condition based maintenance. It manages
trend values, by measuring and analyzing data about deterioration and employs a surveillance system,
designed to monitor conditions through an on-line system.
In this concept, OPERATORS operates the machines for production and the MAINTENANCE group
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is responsible with work of maintaining those machines, however, maintenance became a problem as
more maintenance personnel are required.
3. Autonomous Maintenance:
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When the maintenance part is not always controlled by outside forces like maintenance group and the
operator can able to handle it everyday, called autonomous maintenance.
4.Productive Maintenance:
Thus preventive maintenance along with Maintenance prevention and Maintainability Improvement
gave birth to
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(4) Productive maintenance. According to Nakajima, ‘Total productive Maintenance is productive
maintenance carried out by all employees through small group activities. In TPM, the machine
operator is responsible for the maintenance of the machine as well as its operation.
4.18 What is Total Productive Maintenance?
It can be considered as the medical science of machines. Total Productive Maintenance (TPM) is a
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maintenance program which involves a newly defined concept for maintaining plants and equipment.
TPM seeks to maximize equipments effectiveness throughout the life time of that equipment. It
strives to maintain optimum equipment conditions in order to prevent unexpected break downs, speed
loses, and quality defects arising from process activities.
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The goal of the TPM program is to markedly increase production while, at the same time, increasing
employee morale and job satisfaction.

TPM brings maintenance into focus as a necessary and vitally important part of the business. It is no
longer regarded as a nonprofit activity. Down time for maintenance is scheduled as a part of the
manufacturing day and, in some cases, as an integral part of the manufacturing process.
The goal is to hold emergency and unscheduled maintenance to a minimum.
4.19 Why TPM / The objective of TPM:
TPM was introduced to achieve the following objectives:
• Avoid wastage in a quickly changing economic environment.
• Producing goods without reducing product quality.
• Reduce cost.
• Produce target quantity at the earliest possible time.
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• Goods send to the customers must be non defective.
To fulfill those objectives and the goal TPM has dual targets: 1. Zero defects, zero accidents and zero
loss; 2. Zero breakdown (100%
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equipment availability). It is true that when defects and breakdown are reduced the operating costs
come down and hence productivity increases and the products are delivered to the customer at a
reasonable cost and at the right time.
4.20 Six core principles of TPM:
• Obtain Minimum 90% OEE (Overall Equipment Effectiveness) Run the machines even during
lunch.
(Lunch is for operators and not for machines!)
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2. Operate in a manner, so that there are no customer complaints.
3. Reduce the manufacturing cost by 30%.
4. Achieve 100% success in delivering the goods as required by the customer.
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5. Maintain a accident free environment.
6. Increase the suggestions by 3 times. Develop Multiskilled and flexible workers.
Now the question comes -why should we consider TPM is an
effective tech. for continuous Improvement? Because it
�Aims to maximize equipment effectiveness – overall effectiveness.
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�Various departments – engineering, operations, and Maintenance – collectively implement it.

�Involves every single employee from the top management to
workers in the shop floor.
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� In TPM the machine operator is responsible for the maintenance of the machine as well as its
operation
However, Smart TPM requires the following:
• Restoring equipment to a like – new condition.
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• Having operators involved in the maintenance of the equipment.

• Improving maintenance efficiency and effectiveness.
• Training the labour force to improve upon their job skills.
• Equipment management and maintenance prevention, which is considered inherent in the reliability
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strategy and
• The effective use of preventive and predictive maintenance technology.
Therefore, the aim of productive maintenance was to maximize plant and equipment effectiveness to
achieve optimum life cycle cost of production equipment. In 1971, the Japan Institute of
Plant Maintenance (JIPM) defined TPM as a system of maintenance. JIPM introduced TPM award to
respective organization as a standard of quality in 1972.
Motives of TPM
1. Adoption of life cycle approach for improving the overall performance of production equipment.

2. Improving productivity by highly motivated workers which is achieved by job enlargement.
3. The use of voluntary small group activities for identifying the cause of failure, possible plant and
equipment modifications.
Uniqueness of TPM
The major difference between TPM and other concepts is that the operators are also made to involve
in the maintenance process. The concept of "I ( Production operators ) Operate, You ( Maintenance
department ) fix" is not followed.
TPM Objectives
1. Achieve Zero Defects, Zero Breakdown and Zero accidents in all functional areas of the
organization.
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2. Involve people in all levels of organization.
3. Form different teams to reduce defects and Self Maintenance.
4.21Direct benefits o fTPM
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1. Increase productivity and OPE ( Overall Plant Efficiency ) by 1.5 or 2 times.
2. Rectify customer complaints.
3. Reducethe manufacturing cost by 30%.
4. Satisfy the customers needs by 100 % ( Delivering the right quantity at the right time, in the
required quality. )
5. Reduce accidents.
6. Follow pollution control measures.
4.22 Indirect benefits of TPM
1. Higher confidence level among the employees.
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2. Keep the work place clean, neat and attractive.
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3. Favorablechange in the attitude of the operators.
4. Achieve goals by working as team.
5. Horizontaldeployment of a new concept in all areas of the organization.
6. Share knowledge and experience.
7. The workers get a feeling of owning the machine.
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4.23 Steps in introduction of TPM in a organization :

4.23.1 - PREPARATORY STAGE:
STEP 1 - Announcement by Management to all about
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4.23.2 TPM introduction in the organization:

Proper understanding, commitment and active involvement of the top management in needed for this
step. Senior management should have awareness programmes, after which announcement is made to
all. Publish it in the house magazine and put it in the notice board. Send a letter to all concerned
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individuals if required.
4.23.3 - Initial education and propaganda for TPM :
Training is to be done based on the need. Some need intensive training and some just an awareness.
Take people who matters to places where TPM already successfully implemented.
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4.23.4 - Setting up TPM and departmental

committees :
TPM includes improvement, autonomous maintenance, quality maintenance etc., as part of it. When
committees are set up it should take care of all those needs.
4.23.5 - Establishing the TPM working system and
target :
Now each area is benchmarked and fix up a target for achievement.

4.23.6 - A master plan for institutionalizing :
Next step is implementation leading to institutionalizing wherein TPM becomes an organizational
culture. Achieving PM award is the
proof of reaching a satisfactory level.
4.24 STAGE - B - INTRODUCTION STAGE
This is a ceremony and we should invite all. Suppliers as they should know that we want quality
supply from them. Related companies and affiliated companies who can be our customers,
sisters concerns etc. Some may learn from us and some can help us and customers will get the
communication from us that we care for quality output.
4.25 STAGE C - IMPLEMENTATION
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In this stage eight activities are carried which are called eight pillars in the development of TPM
activity. Of these four activities are for establishing the system for production efficiency, one for
initial control system of new products and equipment, one for improving the efficiency of
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administration and are for control of safety, sanitation as working environment.
4.26 STAGE D - INSTITUTIONALISING STAGE
By all there activities one would has reached maturity stage. Now is the time for applying for PM
award. Also think of challenging level to which you can take this movement.
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4.27 TPM – PILLARS:
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PILLAR -1 - JISHU HOZEN ( Autonomous maintenance ) :
This pillar is geared towards developing operators to be able to take care of small maintenance tasks,
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thus freeing up the skilled maintenance people to spend time on more value added activity
and technical repairs. The operators are responsible for upkeep of their equipment to prevent it from
deteriorating.
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Policy:
1. Uninterrupted operation of equipments.
2. Flexible operators to operate and maintain other equipments.
3. Eliminating the defects at source through active employee participation.
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4. Stepwise implementation of JH activities.

JISHU HOZEN Targets:
1. Prevent the occurrence of 1A / 1B because of JH.
2. Reduce oil consumption by 50%
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3. Reduce process time by 50%

4. Increase use of JH by 50%
Steps in JISHU HOZEN :
1. Preparation of employees.
2. Initial cleanup of machines.
3. Take counter measures
4. Fix tentative JH standards
5. General inspection
6. Autonomous inspection

7. Standardization and
8. Autonomous management.
Each of the above mentioned steps is discussed in detail below.
1. Train the Employees : Educate the employees about TPM, Its advantages, JH advantages and Steps
in JH. Educate the employees about abnormalities in equipments.
2. Initial cleanup of machines :
o Supervisor and technician should discuss and set a date for implementing step1
o Arrange all items needed for cleaning
o On the arranged date, employees should clean the equipment completely with the help of
maintenance department.
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o Dust, stains, oils and grease has to be removed.
o Following are the things that has to be taken care while
cleaning. They are Oil leakage, loose wires, unfastened nits and bolts and worn out parts.
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o After clean up problems are categorized and suitably tagged. White tags are place where problems
can be solved by operators. Pink tag is placed where the aid of maintenance department is needed.
o Contents of tag is transferred to a register.
o Make note of area which were inaccessible.
o Finally close the open parts of the machine and run the machine.
3. Counter Measures :
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o Inaccessible regions had to be reached easily. E.g. If there are many screw to open a fly wheel door,
hinge door can be used. Instead of opening a door for inspecting the machine, acrylic sheets can be
used.
o To prevent work out of machine parts necessary action must be taken.
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o Machine parts should be modified to prevent accumulation of dirt and dust.
4. Tentative Standard :
o JH schedule has to be made and followed strictly.
o Schedule should be made regarding cleaning, inspection and lubrication and it also should include
details like when, what and how.
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5. General Inspection :
o The employees are trained in disciplines like Pneumatics, electrical, hydraulics, lubricant and
coolant, drives, bolts, nuts and Safety.
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o This is necessary to improve the technical skills of employees and to use inspection manuals
correctly.
o After acquiring this new knowledge the employees should share this with others.
o By acquiring this new technical knowledge, the operators are now well aware of machine parts.
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6. Autonomous Inspection :
o New methods of cleaning and lubricating are used.
o Each employee prepares his own autonomous chart / schedule in consultation with supervisor.
o Parts which have never given any problem or part which don't need any inspection are removed
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from list permanently based on experience.

o Including good quality machine parts. This avoid defects due to poor JH.
o Inspection that is made in preventive maintenance is included in JH.
o The frequency of cleanup and inspection is reduced based on experience.
7. Standardization :
o Upto the previous stem only the machinery / equipment was the concentration. However in this step
the surroundings of machinery are organized. Necessary items should be organized, such that there is
no searching and searching time is reduced.

o Work environment is modified such that there is no difficulty in getting any item.
o Everybody should follow the work instructions strictly.
o Necessary spares for equipments is planned and procured.
8. Autonomous Management :
o OEE and OPE and other TPM targets must be achieved by continuous improve through Kaizen.
o PDCA ( Plan, Do, Check and Act ) cycle must be implemented for Kaizen.
PILLAR -2 – KOBETSU KAIZEN :
"Kai" means change, and "Zen" means good ( for the better ). Basically kaizen is for small
improvements, but carried out on a continual basis and involve all people in the organization. Kaizen
is opposite to big spectacular innovations. Kaizen requires no or little investment. The principle
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behind is that "a very large number of small improvements are move effective in an organizational
environment than a few improvements of large value. This pillar is aimed at reducing losses in the
workplace that affect our efficiencies. By using a detailed and thorough procedure we eliminate
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losses in a systematic method using various Kaizen tools. These activities are not limited to
production areas and can be implemented in administrative areas as well.
Kaizen Target:
Achieve and sustain zero loses with respect to minor stops, measurement and adjustments, defects
and unavoidable downtimes. It also aims to achieve 30% manufacturing cost reduction.
Tools used in Kaizen:
1. Problem analysis
2. (Root cause ) Why - Why analysis
3. Summary of losses
4. Kaizen register
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5. Kaizen summary sheet.
PILLAR -3 - PLANNED MAINTENANCE :
It is aimed to have trouble free machines and equipments producing defect free products for total
customer satisfaction. This breaks maintenance down into 4 "families" or groups which was defined
earlier.
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1. Preventive Maintenance
2. Breakdown Maintenance
3. Corrective Maintenance
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4. Maintenance Prevention
With Planned Maintenance we evolve our efforts from a reactive to a proactive method and use
trained maintenance staff to help train the operators to better maintain their equipment.
Policy :
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1. Achieve and sustain availability of machines

2. Optimum maintenance cost.
3. Reduces spares inventory.
4. Improve reliability and maintainability of machines.
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Target :
1. Zero equipment failure and break down.
2. Improve reliability and maintainability by 50 %
3. Reduce maintenance cost by 20 %
4. Ensure availability of spares all the time.
Six steps in Planned maintenance :
1. Equipment evaluation and recoding present status.
2. Restore deterioration and improve weakness.

3. Building up information management system.
4. Prepare time based information system, select equipment,
parts and members and map out plan.
5. Prepare predictive maintenance system by introducing
equipment diagnostic techniques and
6. Evaluation of planned maintenance.
PILLAR -4 – Hinshitsu Hozen or QUALITY MAINTENANCE :
It is aimed towards customer delight through highest quality through defect free manufacturing.
Focus is on eliminating non conformances in a systematic manner, much like Focused
Improvement. We gain understanding of what parts of the equipment affect product quality and begin
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to eliminate current quality concerns, then move to potential quality concerns. Transition is from
reactive to proactive (Quality Control to Quality Assurance). QM activities is to set equipment
conditions that preclude quality defects, based on the basic concept of maintaining perfect equipment
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to maintain perfect quality of products. The condition are checked and measure in time series to very
that measure values are within standard values to prevent defects. The transition of measured values
is watched to predict possibilities of defects occurring and to take counter measures before hand.
Policy :
1. Defect free conditions and control of equipments.
2. QM activities to support quality assurance.
3. Focus of prevention of defects at source
4. Focus on poka-yoke. ( fool proof system ) tas
5. In-line detection and segregation of defects.
6. Effective implementation of operator quality assurance.
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Target :
1. Achieve and sustain customer complaints at zero
2. Reduce in-process defects by 50 %
3. Reduce cost of quality by 50 %.
Pilar – 5: Development Management / Early Management:
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Early management or development management helps in drastically reducing the time taken to
receive, install, and set – up newly purchased equipments (known as vertical start – up). Early
management can also be used for reducing the time to manufacture a new product in the factory.
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PILLAR 6 – TRAINING and EDUCATION:

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It is aimed to have multi-skilled revitalized employees whose morale is high and who has eager to
come to work and perform all required functions effectively and independently. Education is given
to operators to upgrade their skill. It is not sufficient know only "Know-How" by they should also
learn "Know-why". By experience they gain, "Know-How" to overcome a problem what to be done.
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This they do without knowing the root cause of the problem and
why they are doing so. Hence it become necessary to train them on
knowing "Know-why". The employees should be trained to achieve
the four phases of skill. The goal is to create a factory full of
experts. The different phase of skills are :
Phase – 1: Do not know
Phase – 2: Know the theory but cannot do.
Phase – 3: Can do but can not teach

Phase – 4: Can do and also teach
Policy:
1. Focus on improvement of knowledge, skills and techniques.
2. Creating a training environment for self learning based on felt needs.
3. Training curriculum / tools /assessment etc conductive to employee revitalization
4. Training to remove employee fatigue and make work enjoyable.
Target:
1. Achieve and sustain downtime due to want men at zero on critical machines.
2. Achieve and sustain zero losses due to lack of knowledge / skills / techniques
3. Aim for 100 % participation in suggestion scheme.
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PILLAR- 7: SAFETY, HEALTH AND ENVIRONMENT
Target :
1. Zero accident,
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2. Zero health damage
3. Zero fires.
In this area focus is on to create a safe workplace and a surrounding area that is not damaged by our
process or procedures. This pillar will play an active role in each of the other pillars on a regular
basis.
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A committee is constituted for this pillar which comprises representative of officers as well as
workers. The committee is headed by Senior vice President ( Technical ). Utmost importance to
Safety is given in the plant. Manager (Safety) is looking after functions related to safety. To create
awareness among employees various competitions like safety slogans, Quiz, Drama, Posters, etc.
related to safety can be organized at regular intervals.
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PILLAR -8 : OFFICE TPM
Office TPM should be started after activating four other pillars of TPM (JH, KK, QM, PM). Office
TPM must be followed to improve productivity, efficiency in the administrative functions and
identify and eliminate losses. This includes analyzing processes and
procedures towards increased office automation. Office TPM addresses twelve major losses. They are
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1. Processing loss
2. Cost loss including in areas such as procurement, accounts, marketing, sales leading to high
inventories
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3. Communication loss
4. Idle loss
5. Set-up loss
6. Accuracy loss
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7. Office equipment breakdown

8. Communication channel breakdown, telephone and fax lines
9. Time spent on retrieval of information
10. Non availability of correct on line stock status
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11. Customer complaints due to logistics

12. Expenses on emergency dispatches/purchases
Conclusion:
Today, with competition in industry at an all time high, TPM may be the only thing that stands
between success and total failure for some companies. It has been proven to be a program that works.
It can be adapted to work not only in industrial plants, but in construction, building maintenance,
transportation, and in a variety of other situations. Employees must be educated and convinced that

TPM is not just another "program of the month" and that management is totally committed to the
program and the extended time frame necessary for full implementation. If everyone involved
in a TPM program does his or her part, an unusually high rate of return compared to resources invested
may be expected
4.28 QUALITY COSTS
QUALITY COSTS:-
Quality costs are defined as those costs associated with the non-achievement of
prodect/service quality as defined by the requirements established by the organization and its
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contracts with customers and society.
 Quality cost is a cost for poor product of service.
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4.29 ELEMENTS OF QUALITYCOST:-
 Cost of prevention
 Cost of appraisal


Cost of internal failures
Cost of external failures.
4.30 ANALYSIS OF QUALITY COSTS:-


Trend analysis
Pareto analysis
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4.30.1 PREVENTION COST
 Marketing / Customer / User.

 Product / Service / Design Development.
 Purchasing
 Operations (Manufacturing or Service)
 Quality Administration.

4.30.2. APPRAISAL COST
 Purchasing Appraisal Costs.

 Operations Appraisal Costs
 External Appraisal Costs
 Review of Test and Inspection Data
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 Miscellaneous Quality Evaluations
4.30.3. INTERNAL FAILURE COST
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 Product or Service Design Failure Costs (Internal)
 Purchasing Failure Costs
 Operations (Product or Service) Failure Costs


4.30.4 EXTERNAL FAILURE COST
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Complaint Investigations of Customer or User Service
Returned Goods
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 Retrofit and Recall Costs
 Warranty Claims
 Liability Costs
 Penalties
 Customer or User Goodwill
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 Lost Sales
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4.31 ANALYSIS TECHNIQUES OF QUALITY COST

 The purpose of quality cost analysis is to determine the cost of maintaining a certain level of
quality.
 Such activity is necessary to provide feedback to management on the performance of quality
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assurance and to assist management in identifying opportunities.
4.32 TREND ANALYSIS :

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 Good visual aids are important communication tools.

 Graphs are particularly useful in presenting comparative results to management.
Trend Analysis is one where Time-to-Time comparisons can be made which illustrates the changes in
cost over time.

100
TR EN D A N A LY SIS - W A TCH ES 103.3
95
90
85 87.5
80
75
70
68.5
65
60 60.7 60 60
55 57
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50
50
45
40 42.5
35
33.3
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30 31.4
25
20
15
10 10.7 10
8.6
5 7.5
4.33 PARETO ANALYSIS :

2 3
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 Joseph Juran observed that most of the quality problems are generally created by only a few
causes.
 For example, 80% of all internal failures are due to one (or) two manufacturing problems.
 Identifying these “vital few” and ignoring the “trivial many” will make the corrective action give
a high return for a low money input.
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VITAL FEW
40
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36.4 %
35
30 27.3 %
25 22.7 %
20 TRIVIAL MANY
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15
10
4% 3%
5 2% 3% 1% 2%
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Rough Surface
Less polishing
Miss sharpen
Surface scars
Surface pits
Incomplete
Scratches
Cracks
Others
PARETO DIAGRAM

4.34 INDEX NUMBERS :
Index Numbers are often used in a variety of applications to measure prices, costs (or) other
numerical quantities and to aid managers in understanding how conditions in one period compare
with those in other periods.
 A simple type of index is called a RELATIVE INDEX.
QUARTER COST IN RS.
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1 2000
2 2200
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3 2100
4 1900
Cost Index in quarter t = (Cost in quarter t / Base period cost) x 100
QUARTER
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COST RELATIVE INDEX
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1 (2000/2000) x 100 = 100
2 (2200/2000) x 100 = 110

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3 (2100/2000) x 100 = 105
4 (1900/2000) x 100 = 95
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4.35 PERFORMANCE MEASURES

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Performance measures are required for the managers for managing an organization perfectly.
Performance measures are used to achieve the following objectives.

 To establish performance measures and reveal trend.
 To identify the processes to be improved.
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 To determine the process gains and losses.

 To compare the actual performance with standard performance.
 To provide information for individual and team evaluation.
 To determine overall performance of the organization.
 To provide information for making proper decisions.

4.36 WHAT SHOULD BE MEASURED?
4.36.1 Human resources

1. Lost time due to accidents, absenteeism.
2. Employee turnover.
3. Employee satisfaction index.
4. Training cost per employee.
5. Number of grievances.
4.36.2 Customers
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1. Number of complaints from customers.
2. Number of on-time deliveries.
3. Warranty data.
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4. Dealer satisfaction.
4.36.3 Production
2. Inventory.
3. SPC Charts.
4.
5.
2.
Amount of scrap / rework.
Machine down time.
4.36.4 Research and Development

New product time to market.
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3. Design change orders.
4. Cost estimating errors.
4.36.5 Suppliers
2. On-time delivery.
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3. Service rating.
4. Quality performance.
5. Average lead time.
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4.36.6 Marketing / Sales

1. Sales expense to revenue.
2. New product sales to total sales.
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3. New customers.
4.36.7 Administration
1. Revenue per employee.
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2. Purchase order error.

3. Billing accuracy.
4. Cost of poor quality.
4.37 STRATEGY :
The quality council has the overall responsibility for the performance measures.It ensures that all the
measures are integrated into a total system of measures.

A typical system contains the following function

 Quality
 Cost
 Flexibility
 Reliability
 Innovation
4.38 PERFORMANCE MEASURE PRESENTATION :
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There are six basic techniques for presenting performance measures. They are
1. Time series graph.
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2. Control charts.
3. Capability Index.
4. Taguchi’s loss function.
5. Cost of poor quality.
6. Malcolm Baldrige National Quality Award.
a) Manufacturing
b) Service
c) Small business
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In MBNQA, five categories are analyzed. They are
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d) Health care
e) Education
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UNIT V – QUALITY SYSTEMS
5.1 ISO 9000 STANDARDS
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ISO 9000
ISO 9001
ISO 9002
ISO 9003
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ISO 9001
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Design, Development, Production, Installation & Servicing
ISO 9002
Production, Installation & Servicing

ISO 9003
Inspection & Testing
ISO 9004
Provides guidelines on the technical, administrative and human factors affecting the product or
services.
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ISO 9000: 2000 Sector Standard
5.2 BENEFITS OF ISO 9000 STANDARDS :
 Achievement of international standard of quality.

 Value for money.

 Customer satisfaction.
 Higher productivity.
 Increased profitability
 Improved corporate image
 Access to global market
 Growth of the organization
 Higher morale of employees
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5.3 CLAUSES (ELEMENTS) OF ISO 9000 (During the year 1987)
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4.1 Management Responsibility

 Adequate resources for the verification activities
 Need for trained personnel
 Work and verification activities including audits
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 A Management Representative to be identified

 Review the Quality System performance and customer complaints periodically
4.2 Quality System

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4.3 Contract review

4.4 Design Control
4.5 Documents Control
4.6 Purchasing
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4.7 Purchaser – Supplied Product

4.8 Product Identification and Traceability
4.9 Process Control
4.10 Inspection and Testing
4.11 Inspection Measuring and Test Equipment
4.12 Inspection and Test Status
4.13 Control of Non – Conforming Product
4.14 Corrective Action

4.15 Handling, Storage, Packaging and Delivery
4.16 Quality Records
4.17 Internal Quality Audits
4.18 Training
4.19 Servicing
4.20 Statistical Techniques
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5.4 CLAUSES (ELEMENTS) OF ISO 9000 (During the year 2000)
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1. Scope
2. Normative Reference
3. Terms and Definitions
4. Quality Management System (QMS)
General Requirements
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Documentation
5. Management Responsibility
Management Commitment
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Customer Focus
Quality Policy
Planning
Responsibility, Authority and Communication
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Management Review
6. Resource Management
Provision of Resources
Human Resources
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Infrastructure
Work Environment
7. Product Realization
Planning of Product Realization
Customer related processes
Design and Development
Purchasing
Production and Service Provision
Control of Monitoring and Measuring devices

8. Monitoring and Measurement
General
Monitoring and Measurement
Control of Non-Conforming Product
Analysis of Data
Improvement
5.5 IMPLEMENTATION OF QUALITY MANAGEMENT SYSTEM :
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1. Top Management Commitment
2. Appoint the Management Representative
3. Awareness
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4. Appoint an Implementation Team
5. Training
6. Time Schedule
7. Select Element Owners
8. Review the Present System
9.
10.
11.
12.
13.
Write the Documents
Install the New System
Internal Audit
Management Review
Pre-assessment
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14. Registration
5.6 PITFALLS OF SUCCESSFUL IMPLEMENTATION :
1. Using a generic documentation program or another organization’s documentation program

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2. Over-documentation or documentation that is too complex

3. Using External Consultants without involvement
4. Neglecting to obtain top management’s involvement
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5. Developing a system that does not represent what actually occurs
5.7 DOCUMENTATION
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In every organization, the quality system must be documented properly. The documentation of the
system can be seen as a hierarchical format as shown.
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1
POLICY
2
PROCEDURE

3
PRACTICE
4
PROOF
5.8 QUALITY AUDITING
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The term Audit refers to a regular examination and checking of accounts or financial records,
settlement or adjustment of accounts.
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It also refers to checking, inspection and examination of Production Processes.
5.9 PURPOSE OF QUALITY AUDIT :
 To establish the adequacy of the system.





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To determine the effectiveness of the system.
To afford opportunities for system analysis.
To help in problem solving.
To make decision making easier etc.
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5.10 TYPES OF QUALITY AUDIT :
1. First – Party Audit.

2. Second – Party Audit.
3. Third – Party Audit.
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Quality audit can also be classified on the basis of the area taken into account for the audit such as
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 System Audit.
 Process Audit.
 Product Audit.
 Adequacy Audit.
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 Compliance Audit.
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5.11 ISO 14000 – ENVIRONMENTAL MANAGEMENT SYSTEM
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The overall aim of the Environmental Management systems is to provide protection to the
environment and to prevent pollution.
 The success of ISO 9000 along with increased emphasis on Environmental issues were
instrumental in ISO’s decision to develop Environmental Management Standards.
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 In 1991, ISO formed the Strategic Advisory Group on the Environment (SAGE) which led to
the formation of Technical Committee (TC) 207 in 1992.
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 Mission of TC207 is to develop standards for an Environmental Management System (EMS)

which was identified as ISO 14000.

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TC 207 has Established six sub-committees

1. Environmental Management System (EMS)
2. Environmental Auditing (EA)
3. Environmental labeling (EL)
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4. Environmental Performance Evaluation (EPE)

5. Life-Cycle Assessment (LCA)
6. Terms & Definitions
5.12 Environmental Management System (EMS) :
EMS has two Evaluation Standards. They are
1. Organization Evaluation Standards 2. Product Evaluation Standards

5.13 REQUIREMENT OF ISO 14001
There are six elements
5.13.1 GENERAL REQUIREMENTS
 EMS should include policy, planning implementation & operation, checking & corrective
action, management review.
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5.13.2 ENVIRONMENTAL POLICY (Should be based on mission)
5.14 The policy must be relevant to the organization’s nature.
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5.15 Management’s Commitment (for continual improvement & preventing pollution).
5.16 Should be a framework (for Environmental objectives & Targets).
5.17 Must be Documented, Implemented, & Maintained.
5.13.3 PLANNING
5.18
5.19
5.20
5.21
Environmental Aspects
Legal & other Requirements
Objectives & Targets
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Environmental Management Programs
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5.13.4 IMPLEMENTATION & OPERATION
5.14 Structure & Responsibility

5.15 Training, Awareness & Competency
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5.16 Communication
5.17 EMS Documentation
5.18 Document Control
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5.19 Operational Control

5.20 Emergency Preparedness & Response
5.13.5 CHECKING & CORRECTIVE ACTION

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5.21 Monitoring & Measuring

5.22 Nonconformance & Corrective & Preventive action
5.23 Records
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5.24 EMS Audit
5.13.6 MANAGENMENT REVIEW
5.14 Review of objectives & targets

5.15 Review of Environmental performance against legal & other requirement
5.16 Effectiveness of EMS elements
5.17 Evaluation of the continuation of the policy

5.14 BENEFITS OF ENVIRONMENTAL MANAGEMENT SYSTEM :
5.14.1 GLOBAL BENEFITS

5.18 Facilitate trade & remove trade barrier
5.19 Improve environmental performance of planet earth
5.20 Build consensus that there is a need for environmental management and a common
terminology for EMS
5.14.2 ORGANIZATIONAL BENEFITS

5.21 Assuring customers of a commitment to environmental management
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5.22 Meeting customer requirement
5.23 Improve public relation
5.24 Increase investor satisfaction
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5.25 Market share increase
5.26 Conserving input material & energy
5.27 Better industry/government relation
5.28 Low cost insurance, easy attainment of permits & authorization
INFORMATION TECHNOLOGY.
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Information technology is a tool like the other tools and it helps the TQM organization to
achieve its goals. Over the past few decades, computers and quality management practices have
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evolved together and have supported each other. This interdependence will continue in the near
future.
DEFINITION:
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Information technology is defined as computer technology for processing and storing information,
as well as communications technology for transmitting information.
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Levels of information technology
4. Data
5. Information
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6. knowledge
Computers and the quality function
Computers play an essential role in the quality function. They perform very simple operations
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at fast speeds with an exceptionally high degree of accuracy. A computer must be programmed to
execute these simple operations in the correct sequence in order to accomplish a given task.
Computers can be programmed to perform complex calculations, to control a process or test, to
analyze data, to write reports, and to recall information on command. The quality function needs
served by the computer are:
7. data collection
8. data analysis and reporting

9. statistical analysis
10. process control
11. test and inspection
12. system design
Data collection:
The collection utilization, dissemination of quality control information is best accomplished

when the information is incorporated into an information technology system. IT maintains
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relationships with other activities such as inventory control, purchasing, design, marketing,
accounting, and production control. It is essential for all the quality needs described in this chapter.
Linkages are developed between the stored data records of the various activities in order to obtain
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additional information with a minimum of programming and to improve the storage utilization
Data analysis, reduction, and reporting:
While some of the quality information is merely stored in the computer for retrieval at a future
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time, most of the information is analyzed, reduced to a meaningful amount, and disseminated in the
form of a report. These activities of analysis reduction and reporting are programmed to occur
automatically as the data are collected or to occur on command by the computer operator.
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Statistical analysis:
The first and still an important use of the computer in quality control is for statistical
analysis. Most of the statistical techniques can be easily programmed. Once programmed
considerable calculation time is saved, and the calculations are error free.
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Process control:
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The first application of computers in process control was with numerically controlled
machines. Numerically controlled machines used punched paper to transmit instructions to the
computer which then controlled the sequence of operations. Paper tape is no longer used to provide
instructions to a machine
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Automated test and inspection:
If test and inspection are considered a process in itself or part of a production process then
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automated test and inspection is similar to the previous section on automated process control,
computer controlled test and inspection systems offer the following advantages improved test
quality, operating cost, better report preparation, improved accuracy, automated calibration, and
malfunction diagnostics.

System design
Software applications adapted to the quality function are becoming more sophisticated and
comprehensive. Execution of the menu is by function key, cursor and enters key, voice, mouse, or
linkage from another program.
THE INTERNET AND OTHER ELECTRONIC COMMUNICATION
The internet is a world wide network of computer networks. It began in 1969 as a

means of exchanging data between universities and the U.S military. In 1991 the national science
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foundation which was responsible for the internet, released the ban on commercial use of it.
Other electronic communication
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12. Intranet
13. Instant messaging
14. Video conferencing
15. Virtual teaming
16.
17.
18.
19.
20.
Document management
E-learning
E-government
E-commerce
Business-to-business
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21. Business-to-customers
22. Website design
INFORMATION QUALITY ISSUES

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Information quality issues encompass:

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9. sufficiency
10. accuracy
11. timeliness
12. intellectual property
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13. security
14. privacy
15. pollution
16. creativity control and prevention
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S.No Description Page No.

2.8 Role of senior management 12

2.12 Quality statements 15

iii E.R.SIVAKUMAR,ASSO.PROF 2015-16

3.6 Check sheet 58

3.9 Pareto charts 60

28 Failure mode and effects analysis (fmea) 81

28.4 Risk priority number (rpn) 10 85

4.11 Taguchi’s quality loss function 96

TPM introduction in the organization

4.26 Institutionalising stage 104

4.30 Analysis of quality costs 110

4.30.3 Internal failure cost 111

4.33 Pareto analysis 112

4.36.6 Marketing / sales 114

Unit V Quality Systems

5.14 Benefits of environmental management system 124

vii E.R.SIVAKUMAR,ASSO.PROF 2015-16

1.1.1 PREREQUISITE DISCUSSIONS

Quality is in its essence a way of management of the organization.

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1.2.1. Need for quality:

1.2.2. Evolution of quality (or) GURUS OF TQM:

SHEWHART - Control chart theory

- Return on Investment (ROI)

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1.2.3. DEFINING QUALITY:

1.3. DIMENSIONS OF QUALITY:

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1.3.1 Dimensions of service quality

1.3.2. Definition of TQM

Total - Made up of the whole

1.4. CHARACTERISTICS OF TQM

The above definitions revealed the following characteristics of TQM :

1. TQM is a customer oriented.

4. TQM requires the leadership of top management and continuous involvement.

1.4.1. Basic Concepts of TQM:

1. A committed and involved management.

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1.5. ELEMENTS OF TQM

A framework summarizing the important elements of TQM discussed in this text.

TQM Frame work:

TOOLS AND TECHIQUES PRINCIPLES AND PRACTICES

3. Seven Traditional Tools 3. Customer focus

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Continuous improvement process.

Employee involvement, Structured, Stepwise,

1.6. PRINCIPLES OF TQM

 Customer’s requirements must be met the first time, every time.

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Improper planning tas

Lack of continuous training and education

1.8. BENEFITS OF TQM:

1.9. CONTRIBUTIONS OF DEMING:

1. Create and publish the Aims and Purposes of the organization.

7 E.R.SIVAKUMAR ,ASSO.PROF/MECH 2015-2016