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Table of content pages

Chapter one

1. Total Quality Management

1.1 Introduction
1.2 Total quality management (TQM)
1.3 EVOLUTION OF TQM
1.4 TQM BASIC PRINCIPLES
1.5 TQM TOOLS
1.6 STEPS IN IMPLEMENTING TQM
1.7 THE RESULTS OF TQM
1.8 CHALLENGES IN IMPLEMENTING TQM

Chapter two
2. Statistical quality control
2.1 SOURCES OF VARIATION
2.2 DESCRIPTIVE STATISTICS
2.3 STATISTICAL PROCESS CONTROL METHODS
2.4 CONTROL CHARTS FOR VARIABLES
2.5 CONTROL CHARTS FOR ATTRIBUTES
2.6 ACCEPTANCE SAMPLING
Chapter three
3. Japanese Contribution to Quality
3.1 Deming, Juran, and Japan
3.2 The American Response
3.3 Beyond Total Quality
3.4 Kanban
3.5 Kaizen
3.6 Toyota Production System
3.7 Quality circles

Chapter four
4. Tools in quality tool
5. Reference

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 List of Tables
Table 1.1 : TQM Tools and Techniques Categories Source
Table1.2 . Cultural Elements Required for TQM
Table1.3. Areas of training and topics to be covered Source

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 List of figure
Fig 1 Timeline showing the differences between old and new
concepts of quality Source
Figure .2: Continuous improvement cycle. Source
Figure3: Continuous improvements and their consequences.
Source
Fig4. Example of flow diagram Source
Fig 5 An OC curve showing producer’s risk (α) and consumer’s
risk
Figure 6 The Kaizen Umbrella
Fig 7 quality circle

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 Chapter one

Total Quality Management

1. Introduction
In the past two decades many organizations throughout the world have been under
tremendous pressure. Some have been battered by international competition, others by new
entrepreneurial companies that redefined businesses, and yet others were seriously challenged by
new technologies which created formidable alternatives to their products and services. Some
leading companies have changed rapidly. While some of the new companies have now become
major players, other companies are still engaged in daily battles for survival, and many other
companies have disappeared.
Over the past two decades, companies have been experiencing dramatic changes in the
business environment characterized by such phenomena as increasing consumer awareness of
quality, the rapid transfer of technology, globalization and competition to reduce costs. In
response to these challenges, many companies have joined the quality faction and implemented
various quality improvement initiatives as a means to enhance competitiveness and ultimately
business performance.
While the business world also shifts its focus from product to customer, managers are
discovering that profitable and sustainable revenue growth results from enhanced customer
relations, because consumers nowadays are more informed, more demanding, and prone to
change brands and companies if their requirements are not met on time and at a price they are
willing to pay.
However, quality is considered the ability to meet the stated and implied requirements of
customers and not an inherent feature. The effectiveness of quality initiatives resulting in
sustainable competitive advantage and enhanced business performance has been a major subject
of interest for business. Understanding customers’ expectations is a prerequisite for delivering
superior products, because they represent the implicit performance standards which customers
use in assessing product quality Total Quality Management (TQM), as a set of management
practices, focusing on customer satisfaction and constant organizational development, has been
widely adopted.

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 2. Total quality management (TQM)
Total Quality Management (TQM) is the optimisation and integration of all the functions
and processes of a business in order to provide for excited customers through a process of
continuous improvement.
Total Quality Management has been defined in different way and some of the definitions
are:
TQM is a total approach to put quality in every aspect of management.
Bill Creech
TQM is the system of activities directed at achieving delighted customers, empowered
employees, higher revenues, and lower costs
Juran and Gryna
TQM is an evolving system of practices, tools and training methods for managing
companies to provide customer satisfaction in a rapidly changing world.
Alan Graham, David Walden
The foundation on which a successful TQM effort rests includes customer focus, total
participation and continual improvement.
Ashok Rao
TQM means satisfying customers first time every time. It means enabling your employees to
solve problems and eliminate waste.
Kit Sadgrove
As TQM has been defined in different ways of expression but the overall concept relies on
 New philosophy
 Customer satisfaction
 Management
3. EVOLUTION OF TQM
The concept of quality has existed for many years, though it’s meaning has changed and
evolved over time. In the early twentieth century, quality management meant inspecting products
to ensure that they met specifications. In the 1940s, during World War II, quality became more
statistical in nature. Statistical sampling techniques were used to evaluate quality, and quality
control charts were used to monitor the production process. In the 1960s, with the help of so-

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called “quality gurus,” the concept took on a broader meaning. Quality began to be viewed as
something that encompassed the entire organization, not only the production process. Since all
functions were responsible for product quality and all shared the costs of poor quality, quality
was seen as a concept that affected the entire organization. [6]
The meaning of quality for businesses changed dramatically in the late 1970s. Before then
quality was still viewed as something that needed to be inspected and corrected. However, in the
1970s and 1980s many U.S. industries lost market share to foreign competition. In the auto
industry, manufacturers such as Toyota and Honda became major players. In the consumer goods
market, companies such as Toshiba and Sony led the way. These foreign competitors were
producing lower-priced products with considerably higher quality.
Since the 1970s, competition based on quality has grown in importance and has generated
tremendous interest, concern, and enthusiasm. Companies in every line of business are focusing
on improving quality in order to be more competitive. In many industries quality excellence has
become a standard for doing business. Companies that do not meet this standard simply will not
survive. [8]
The term used for today’s new concept of quality is total quality management or TQM.

Figure1 Timeline showing the differences between old and new concepts of quality Source [8]
Figure1 presents a timeline of the old and new concepts of quality. You can see that the old
concept is reactive, designed to correct quality problems after they occur. The new concept is
proactive, designed to build quality into the product and process design.
The 1990's is the decade of Globalisation. In order for companies to be competitive in this
environment they have seen the imperative need for Quality. It is possible that Total Quality
Management (TQM), is once again a buzz word and a marketing tool, but nevertheless it is a tool

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that is being extensively used in the 90's to help companies gain and maintain a competitive edge
over their rivals. [10]
The historical evolution of Total Quality Management has taken place in four stages. The
can be categorized as follows:
1) Quality inspection
2) Quality control
3) Quality assurance
4) Total Quality Management
1. Quality Inspection
Quality has been evident in human activities for as long as we can remember. However the
first stage on this development can be seen in the 1910s when the Ford Motor Company’s ‘T’
Model car rolled off the production line. The company started to employ teams of inspectors to
compare or test the product with the project standard. This was applied at all stages covering the
production process and delivery, etc. The purpose of the inspection was that the poor quality
product found by the inspectors would be separated from the acceptable quality product and then
would be scrapped, reworked or sold as lower quality. [10]
Quality inspection focuses on:
 Salvaging
 Sorting
 Corrective action confirmation
2. Quality control
As the process of inspection, had lacunae, quality control (QC) methodology was used with
further industrial advancement came the second stage of TQM development and quality was
controlled through supervised skills, written specification, measurement and standardization.
In this, the performance data were collected and statistical techniques were used to keep the
process under control.
Quality control focuses on:
 Quality manual
 Process Performance data
 Self inspection
 Product testing

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  Quality planning
 Use of statistical tools
 Control instrumentation
Instrumentation was also used to maintain the quality of the process. This gave confidence
to people in the organization about the quality of the work they did. [10]
3. Quality assurance
The third stage of this development, i.e. quality assurance contains all the previous stages in
order to provide sufficient confidence that a product or service will satisfy customers’ needs.
Other activities such as comprehensive quality manuals, use of cost of quality, development of
process control and auditing of quality systems are also developed in order to progress from
quality control to the quality assurance era of Total Quality Management. At this stage there was
also an emphasis of change from detection activities towards prevention of bad quality.
Quality assurance focuses on:
 Third party audit
 System audit
 Quality panning
 Quality manuals
 System certification
 Quality cost
 Documentation

The shareholders, the customers and the general public should be made aware of the type of
quality work that is going on in an organization. This is essential to win their confidence. This
promoted the preparation of quality manuals, in which every single process carried out in an
industry is registered along with few additional details. Details such as who should do it, how it
should be done, what are the probable errors that may come in, how it should be handled, if the
responsibility is not carried out properly what has to be done, who will be monitoring and what
are all the resources requirements for the completion of the process are included in the quality
manual.
Documentation was given utmost importance. The philosophy of “say what you do and do
what you say” was adopted in every industry. Certification procedures were formulated and

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international bodies as ISO came out with ISO 9000 serious certification.
Third party audit was made mandatory which prevented many loopholes. Such certifications
assured the stake holder of the quality of the company.
Quality cost is another factor which has been overlooked for years. The conventional costing
doesn’t include many hidden costs such as appraisal costs and prevention costs. When quality
initiatives are undertaken, it is sure to reduce the costs involved. Hence a detailed calculation of
quality costs has to be mandatory. Thus , quality assurance system incorporating calculation of
quality costs assuring higher dividend, preparation of quality manual assuring a perfect system a
certification assuring the involvement of a third party audit has been introduced. [10]

4. Total Quality Management

An analysis of the three developments in quality area, thus far explained, will reveal that
there has been concentration on system perfection. All of the three, namely inspection, quality
control and quality assurance focused on improving the system so as to make it error proof. A
system with 100% efficiency is beloved to be producing quality goods. Later it was realized that
even a perfect system, if not manned by quality conscious individuals may result in producing
goods of low quality.
Total Quality Management is the last in the hierarchy of quality systems which incorporated
both human and system component. It involves the understanding and implementation of quality
management principles and concepts in every aspect of business activities. Total Quality
Management demands that the principles of quality management must be applied at every level,
every stage and in every department of the organization. The idea of Total Quality Management
philosophy must also be enriched by the application of sophisticated quality management
techniques.
TQM focuses mainly on:
 Customer focus
 Employer involvement
 Continuous improvement
 Performance measurement
 Internal customer
 Prevention

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  Team work
 Interdepartmental barriers
 Management leadership
TQM focused on customers and considered customers as a king. And is essentially a
management philosophy where very individual in an organization is motivated to work towards a
common vision, in an ideal environment, continuously improving their performance, resulting in
better business opportunities.
The system is perfected, by going in for ISO certifications, the quality culture is inculcated in the
organization and team effort is encouraged among the workers.
TQM has been accepted world wide as the best methodology for ensuring “quality”.[10]

4. TQM BASIC PRINCIPLES

TQM calls for a cultural transformation that requires employee involvement at all levels and
a spirit of teamwork among customers, suppliers, employees, and managers. Employee
involvement, participation and empowerment form the cornerstones of TQM (Saylor, 1992).
There are certain essential principles, which can be implemented to secure greater market share,
increase profits and reduce cost.[5]
These six principles to guarantee success are:
 Management leadership and commitment
 Continues improvement
 Total customer satisfaction (customer focus)
 Employee involvement
 Training and education
 Reward and recognition

1. Management leadership and commitment

Leadership involves defining the need for change, creating new frameworks to mobilize
commitment to those vision frame works for thinking about strategy, structure and people. This
requires management to actively participate in quality transformation. Management must answer
the following questions:
 Where are we now? (the present situation)

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  Where do we want to be? (vision)
 How do we get there? (action plans)

2. Continuous Improvement
Continuous improvement of all systems and processes in an organization is essential for
TQM success. A continuous improvement system gears the organization toward attainment of
the vision (Richardson, 1997). The improvement system must not only be continuously applied,
but also consistently, throughout the organization. This requires a disciplined continuous
improvement system based on trust, with everyone in the organization striving to improve the
system.
Saylor (1992) suggested a continuous system cycle that involves 5 stages as showed in
figure2.The cycle starts by defining the vision or mission of the organization. Top leadership
determines the vision, with input from everyone. Then everyone in the organization ascertains
his specific mission to accomplish the overall vision. In doing so this, the focus and priorities of
the vision are determined, established, understood and supported by all.
The next phase after defining their vision includes listing all improvement opportunities. It
is important to obtain an understanding of the process of determining improvement opportunity
at this stage. Customers, both internal and external, are identified and their needs and
expectations understood. Suppliers also are matched with requirements. Any potential problems
are identified during this process.

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 Figure .2: Continuous improvement cycle. Source [5]
For the third stage of selecting improvement opportunity, specific improvement
opportunities are selected based on the critical processes that have the greatest impact on
customer satisfaction. These problems are solved using a disciplined methodology such as
statistical process control, quality function deployment and process analysis and should be used
consistently to complete a mission, improve a process and solve problems throughout the
organization.
Finally, similar to Shewchart PDCA cycle, the results for the impact of improvements are
evaluated against the overall mission. In this case, a sixth stage can be added as a reminder: Do it
again and again and again. The cycle is never ending in a continues improvement system.
Higher quality both should and can be achieved through:
1. Internal quality improvements
2. External quality improvements

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 Figure3: Continuous improvements and their consequences. Source [5]

3. Total Customer Satisfaction (Customer Focus)

Increasingly, manufacturing and service organizations are using customer satisfaction as the
measure of quality. This fact is reflected in the Malcolm Baldridge National Quality Award,
wherein customer satisfaction accounts for 300 out of the 1000 total points. An organization
must give its customers a quality product or service that meets their needs, at reasonable price,
on-time delivery, and outstanding service.
Listening to the ‘customers’ and responding quickly to their changing needs, expectations
and perceptions is one of the TQM basic approaches. By keeping close to their customer,
companies can establish customer needs; gather information on customer trend and
benchmarking them with their competitors. This can be a winning strategy towards winning new
customers and retaining customer loyalty. [5]

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 As far as customer satisfaction is concerned an organization has to raise the following basic
questions for identifying and understanding customer needs.
1) Who are my customers?
2) What are their needs?
3) What is my product or service?
4) What are my customers' measures or expectations?
5) What is my process for meeting their needs?
6) Does my product or service meet these needs?
7) What actions are needed to improve my process? [8]

4. Employee Involvement
Employee involvement is a long-term commitment for a new way of doing business and
needs a fundamental change in culture (George, 1994). Binney (1992) described unlocking
people potential as one of the total quality principles whereby it creates an environment in which
people can readily learn, where teamwork can flourish and individuals grow in self-confidence
and self-esteem.
Employee involvement is a process for empowering members of an organization to make
decisions and to solve problems appropriate to their levels in the organization (Richardson,
1997). Empowerment is equally effective in service industries, where most frequently customer
perception of quality stands or falls based on the action of the employee in a – one-on one
relationship with the customer. This can be achieved by making the employee part of the
organization, which is essential to the success of the organization. Employees who believe they
are important will be motivated to ensure that their efforts are consistent and dependable upon
the contributions made. [5]

5. Training and Education

World-class companies realize that all firms have access to the same equipment, technology,
financing, and people. The “half-life” of any academic degree is extremely short; therefore, the
real difference among companies is the degree to which employees are developed.
Ernest &Young
Training and education provide the necessary skills and knowledge- the ability to make it
happen (Saylor, 1992). This process is an investment that must be made.According to

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Dahlagaard et.al (1994) Japan, Estonia and India are reported to allocate between 65 and 80
hours per year for each educational and training activities per employee. They believe that
satisfaction of the workforce and hence motivation and ability to act as a constructive part in the
process of continuous improvement depend on education and training.
In the TQM environment, everyone is required to gain additional capabilities to improve the
process and perform work. Hence, a comprehensive training program is necessary and must be
institutionalized within the entire organization. Training in TQM philosophy, guiding principles
and tools and techniques is never ending.
Management must promote the need for continuous training, as it will facilitate the
following:

 Employees will be more confident and motivated in their work

 Reduce staff turnover
 Reduce errors
 Improve productivity
 Improve the organisation competitiveness.

Training must help each individual in the organisation to maintain a growing knowledge of
their business environment. It must be implemented to each individual, from the directors to the
cleaners. [5]

6. Rewards and Recognition

Rewards are generally considered to be something given for quality work such as money or
other tangible things of financial value. Recognition is an act of acknowledgement that is
directed at an individual’s self-esteem and social needs. Crosby’s 12th step and Juran’s 7th step
indicate that reward and recognition should be instituted to support TQM movement. They feel
that recognition, praise, coaching and show of concern are all vital forms of reward that must
never be neglected. [6]
Reward and recognition should be appropriate to the situation by being rank ordered- the
higher the achievement, the higher the reward. It could be such things as a bonus, salary increase,
and change in the title, promotion, theatre tickets, or perhaps a pat on the back. In a TQM
environment, there must be a change in the usual recognition system. One must give recognition

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for efforts, not just for goal attainment. This recognition of effort provides a powerful incentive
for everyone to become involved in quality improvement. It helps illustrate the commitment
from management. It is also essential that employee involvement be used in planning and
executing any recognition or reward system. Programs that are developed with employee
involvement will most likely succeed. [5]

5. TQM TOOLS
Fazel & Salegna (1996) tried to group major TQM tools and techniques into six major
categories as determined by their primary area of implementation focus:
Table 1.1 : TQM Tools and Techniques Categories Source [1]

S Implementation
Tools and Techniques
N Strategy
 Customer survey
 Customer need analysis
1 Customer-based
 Quality function
deployment
Management-based  Communication
2
reward structure  Leadership
 Empowerment
 Cross-training
Employee-based  Quality circles
3
teamwork  Quality teams
 Brainstorming
 Nominal group technique
 Supplier training
Supplier-based supplier
4  Supplier documentation
research
 Supplier certification
 Quality improvement
Process-based statistical
5 process
process control
 Just-in-time

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  Lead time reduction
 Benchmarking
 Quality cost analysis
 Quality audits
 Quality assessment
 Process documentation
 ISO 9000
 Work flow analysis
 Benchmarking
Product-based  Design of experiments
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standardization  Concurrent engineering
 Product flow analysis

The above mentioned categories are described below:

1 Customer-based
Customer-based strategies should be the focal point of every TQM programme, around
which all other strategies are formulated. Customer satisfaction is only likely to be achieved and
maintained when the customer plays an active role in the organization’s process of quality
improvement. Major techniques used to accomplish this are customer needs analysis, customer
surveys and quality function deployment (QFD). [1]
2 Management-based
Management-based strategies are also extremely important for the successful
implementation of TQM. TQM initiatives are not likely to succeed without strong leadership and
support from top management. The goals and the benefits of implementing TQM must clearly be
communicated by top management to the workforce. The alignment of the reward structure with
the goals of the organization is also vital to the organization’s success in achieving these goals.
[1]
3 Employee-based
Employee-based strategies provide a means of increasing the participatory role of workers.
Strategies such as empowerment, teamwork and cross-training may result in employees having
increased decision making authority, greater job responsibilities, and increased motivation and

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sense of pride in their work. Quality programmes may also benefit from employee suggestions
resulting from other group activities including quality teams, quality circles, the nominal group
technique and brainstorming. [1]
1.5.4 Supplier-based
Supplier-based strategies provide a means of increasing an organization’s likelihood of
having suppliers who are reliable and willing to work towards the organization’s goals of
providing a quality product. Given the trend towards companies reducing the number of
suppliers and cultivating long-term relationships with the remaining ones, these strategies are
particularly important today. [1]
1.5.5 Process-based
Process-based strategies focus on improving processes by reducing waste, defect rates, cycle
time, and providing feedback on the performance of the process.
Benchmarking, SPC and JIT are some of the most popular techniques employed by
companies to achieve these goals.[1]
1.5.6 Product-based
Product-based strategies are directly focused on the quality of the product, its physical
characteristics and its manufacturability.
In the case of TQM, the factors that affecting TQM tools selection are many and it should be
considered before any implementation plan. These factors are:
 the availability of resources within the company to facilitate tools successful
introduction;
 the objective of using quality management tools such as solving a simple problem
or reaching to a high level in quality;
 the product characteristics; and
 Current product and process improvement or new product introduction.

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 6. STEPS IN IMPLEMENTING TQM
In implementing total quality management in companies there are certain steps to follow.
And the key steps that an organization to follow.

1 Obtain CEO Commitment

2 Educate Upper-Level Management

3 Create Steering Committee

4 Outline the Vision Statement, Mission Statement, & Guiding Principles

5 Prepare a Flow Diagram of Company Processes

6 Focus on the Customer (External) & Surveys

7 Consider the Employee as an Internal Owner/customer

8 Provide a Quality Training Program

9 Establish Quality Improvement Teams

10 Implement Process Improvements

11 Use the Tools of TQM

12 Know the Benefits of TQM

Continuous Improvement

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The steps that we follow in implementing TQM are discussed below.

Step1.Obtain CEO Commitment

The first step in implementing TQM is to obtain the total commitment,

involvement, and leadership of the CEO and upper-level management. [8]

Step2. Educate Upper-Level Management

The second step is to teach the CEO and upper-level management how to conduct
the following:

 Undergo quality training  Actively lead the way by

 Commit to TQM and participating in the activities of

provide the necessary resources of the quality steering committee and

time and money to permit company training

improvement  Drive fear out of the

 Assist in the development organization

of the corporate vision statement,  Provide suitable

mission statement, guiding recognition for those who
principles, and objectives contribute to the quality mission

 Serve as a model of  Drive decision making

expected behavior and problem resolution to the
lowest practicable level

CEO and senior management roles are . . .

The roles of the CEO and Senior Management Team are to create an organizational
culture in which TQM can exist and flourish. An excellent culture that management
can create for TQM to exist and flourish contains the eight cultural elements indicated
in the figure below.

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 Table1.2 . Cultural Elements Required for TQM. Source [5]

Ele Cultural Elements Required for TQM

ment
Number

1 Quality information must be used for improvement, not to judge or

control people
2 Authority must be equal to responsibility
3 There must be rewards for results
4 Cooperation, not competition, must be the basis for working
together
5 Employees must have secure jobs
6 There must be a climate of fairness
7 Compensation should be equitable
8 Employees should have an ownership stake

Step3 Create a Steering Committee

Upon completion of upper management’s commitment and training, a steering

committee must be created to guide the company through the process of implementing
TQM. The role of the steering committee and the processes the committee follows are
listed here.

Steering committee roles are . . .

 Review and evaluate customer surveys.

 Determine processes to be improved, based on customer and employee

recommendations, surveys, and knowledge of existing problems.

 Appoint task process improvement teams and ensure they receive proper
training.

 Monitor process improvement.

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  Oversee employee recognition for quality improvement.

 Communicate successes and progress.

The steering committee handles a problem by . . .

1. Problem is brought to the attention of the steering committee
2. Steering committee forms a team to examine the process and make
necessary recommendations for improvement

Team meets, reviews its mission, and determines how often it will meet.

Step4 -Outline the Vision Statement, Mission Statement, & Guiding Principles

Establishing guiding principles

In developing the fourth step, important principles to consider including in the

company’s vision statement, mission statement, and guiding principles are as follows:

 Owner/customer  Doing things right, the

Satisfaction first time
 Improved Safety  Reputation as the best in
 Elimination of errors and the field
defects  Continuous Improvement

Defining the meaning of quality

What does one mean when one uses the word quality? If you can ask 12 people in
an organization what the word quality means, and you receive 12 different answers,
then quality management, TQM, right the first time, zero defects, and defect free are
only serving as buzzwords within the organization. Quality is only useful and of value
when it means the same thing to all the people in an organization. Belief in too many
ways to achieve quality can cause serious problems. Quality must consist of well-
defined objectives, so that quality means the same to all in the organization. [5]

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 5 Prepare a Flow Diagram of Company Processes

Flow diagram is a diagram that shows the process flow of any organization.

Fig4. Example of flow diagram Source [5]

Step6 - Focus on the Customer (External) & Surveys

Focusing on a customer’s concerns

Still one of the best ways of accomplishing quality improvement is obtained by

focusing on customers’ concerns, and by learning what those concerns are through
owner/customer surveys. Much can be provided by studying how your owner/customer
feels about your service, your attitude, and whether you would be recommended to another
owner/customer. Several areas to survey, and to take care to provide or honor, are listed
here.

 Safe operating procedures  Degree of communications

 Accident experience  Planning

 Attitude  Administrative procedures

 Professional competence of  Appearance and conduct of the

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 the project manager, superintendent, work force
and project engineers  Condition of equipment
 Technical competence of the  Coordination and supervision of
work force subcontractors
 Overall responsiveness

The six principal elements of owner/customer satisfaction are:

 Your product/service  The perceived price-value

delivery system relationship of your product/service

 Your product/service  Your competitors’

performance strengths and weaknesses

 The general image of your

company

 Your people’s level of

performance

Step7 Consider the Employee as an Internal Owner/Customer

In order to conduct an analysis of the internal processes within the company, the
following steps should be applied to the internal processes within a company.

 List several of your internal owners/customers within your company

 Choose one of these owners/customers to focus on for the application of

this technique

 Determine the Outputs (products, services, information) that must be

provided to this internal owner/customer

 Determine the work Processes your company uses to produce these Outputs

 Learn how your customer’s expectations are met and how satisfaction is
measured

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Step8 Provide a Quality Training Program

Which employees are trained first?

The successful TQM Company provides training to employees in the order

illustrated in the figure below. The training program must begin with upper
management, and then training must be provided for the remaining management, and
the in-house trainers and facilitators. It cannot be emphasized enough that if upper
management is not trained and is not a viable, visible participant from the beginning,
then the program will not survive. [5]

A Upper Management

B Remaining Management

C In-House Trainers & Facilitators

D Front-Line Supervisors

E Non-Supervisory Employees

F Team Training

G Training of Subcontractors &

Suppliers

Continuous Training

To train employees in the order presented above, the following is recommended.

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 Table1.3. Areas of training and topics to be covered Source [5]

Areas of Training Topics to cover

 Cover basic awareness topics such as understanding

quality, the importance of owner/customer satisfaction,
definitions, historical background, principles of the gurus
(Deming, Crosby, Juran, Ishikawa), overview of TQM, benefits
of TQM

 Cost of quality: Identifying It and Tracking It

 The role of management
 Changing leadership styles in a TQM environment;
internal owner/customer concept
A, B, C
 Steps in implementing TQM
Management  Structure needed, i.e., steering committee, process
Training improvement teams, facilitator(s), trainer(s), possibly a corporate
coordinator
 Principles of team building
 Formalized process improvement understanding variation
measurement what, why, how he seven tools of quality
 quality improvement teams
 Owner/customer and employee surveys
 Employee empowerment

 Malcolm Baldrige Award criteria

 Need for quality, some definitions, overview of TQM,

D
i.e., the ten elements or their equivalent, benefits of TQM
Front-Line  Company vision, mission, guiding principles
Supervision Training  Company-planned steps for implementing TQM
 Cost of quality: Identifying It and Tracking It
 Overview of formalized process improvement, role of the
steering committee, process improvement teams, facilitators

27
  Need for quality, some definitions, overview of TQM,
E
i.e., the ten elements or their equivalent, benefits of TQM
Training of Non-  Company vision, mission, guiding principles
Supervisory  Company-planned steps for implementing TQM
Employees  Treating others as owners/customers
 Employee involvement

 How to operate as a team

F
 Team-building exercises
Team Training  Brainstorming
 Understanding variation
 Process improvement procedure
 Seven tools of quality
 Reaching consensus
 Improvement exercise using actual company process
 Subcontractors and suppliers conduct in-house training.
G
Training of
Subcontractors and Suppliers

Step9 Establish quality improvement teams

Quality improvement teams focus on . . .

In establishing quality improvement teams, a smaller company might assign one

quality improvement team. Larger firms might assign several, possibly with one quality
lead team as a guide for the other teams. Areas where quality improvement teams could
begin investigating for possible improvement are:

 Increased Employee Value

 Informed Employees

 Technical Training

 Quality Training

28
  Employee Suggestions

 Employee Participation

 Higher Quality of Artistry

 Personal Development

Step10 Implement Process Improvements

The structure approach to process improvement

 Problem is brought to the attention of the steering committee
 Steering committee forms a team to examine the process and make
necessary recommendations for improvement
 Team meets, reviews its mission, and determines how often it will
meet
 Training is initiated for team members
 Team meets weekly for an hour or two to analyze the problem and
develop a solution
 Solution is initiated on a pilot basis
 Results of pilot study are examined
 Solution is implemented company-wide

Step11 Use the Tools of TQM

Seven classical tools of quality and process improvement are presented below.

Table1.4: Seven classical tools of quality source. [11]

Tool Use

Flowchart Portrays all the steps in a process. Helps understand the

process.
Cause and Portrays possible causes of a process problem. Helps
Effect Diagram determine root cause.
Control Chart Shows if a process has too much variation.

29
 Histogram Portrays the frequency of occurrence.
Check Sheet Tabulates frequency of occurrence.
Pareto Diagram Visually portrays problems and causes in order of severity or
frequency. Helps determine which problem or cause to tackle first.
Scatter Diagram Helps determine if two variables are related.

Step12- What are the benefits of TQM?

The final step of implementing TQM is evaluating the result and analyzing the result thereby
knowing the benefits gained after implementing TQM.
7. THE RESULTS OF TQM
The almost universally accepted goals of total quality are
 lower costs,
 defect reduction
 higher revenues,
 delighted customers, and
 Empowered employees.
In the past few years we have moved quickly from believing that managing quality just
means conformance to specifications and requirements. Quality also means meeting and even
exceeding the needs and expectations of customers. Quality includes having the right features,
correct documentation, and error-free invoices. It also includes the proper functioning of critical
business processes—on-time delivery, friendly and accurate technical support, and no failures.
Quality involves reducing all the costs of poor quality. [2]
8. CHALLENGES IN IMPLEMENTING TQM
In implementing total quality management there are some challenges are:
 resistance to change;
 lack of experience in quality management;
 lack of resources;
 the prevalent quality system based on detection (i.e. difficulty in moving to a
prevention-based system);
 an emphasis on short-term objectives; and

30
  The lack of strategies and overall objectives. [2]
Chapter two
2. Statistical quality control
In the previous chapter we have seen that TQM focuses on customer-driven quality
standards, managerial leadership, continuous improvement, quality built into product and
process design, quality identified problems at the source, and quality made everyone’s
responsibility. However, talking about solving quality problems is not enough. We need
specific tools that can help us make the right quality decisions. These tools come from the
area of statistics and are used to help identify quality problems in the production process as
well as in the product itself. Statistical quality control is the subject of this chapter.

Statistica1 quality control (SQC) is the term used to describe the set of statistical tools
used by quality professionals. Statistical quality control can be divided into three broad
categories:

1) Descriptive statistics: - are used to describe quality characteristics and

relationships. Included are statistics such as the mean, standard deviation, the range,
and a measure of the distribution of data.

2) Statistical process control (SPC) involves inspecting a random sample of the

output from a process and deciding whether the process is producing products with
characteristics that fall within a predetermined range. SPC answers the question of
whether the process is functioning properly or not.

3) Acceptance sampling is the process of randomly inspecting a sample of goods

and deciding whether to accept the entire lot based on the results. Acceptance
sampling determines whether a batch of goods should be accepted or rejected.

The tools in each of these categories provide different types of information for use in
analyzing quality. Descriptive statistics are used to describe certain quality characteristics,
such as the central tendency and variability of observed data. Although descriptions of
certain characteristics are helpful, they are not enough to help us evaluate whether there is a
problem with quality. Acceptance sampling can help us do this. Acceptance sampling helps
us decide whether desirable quality has been achieved for a batch of products, and whether

31
to accept or reject the items produced. Although this information is helpful in making the
quality acceptance decision after the product has been produced, it does not help us identify
and catch a quality problem during the production process.

All three of these statistical quality control categories are helpful in measuring and
evaluating the quality of products or services. However, statistical process control (SPC)
tools are used most frequently because they identify quality problems during the production
process. The quality control tools do not only measure the value of a quality characteristic.
They also help us identify a change or variation in some quality characteristic of the product
or process.

Variation in the production process leads to quality defects and lack of product consistency.

2.1SOURCES OF VARIATION:
1.1 Common cause of variation
No two products are exactly alike because of slight differences in materials, workers,
machines, tools, and other factors. These are called common, or random, causes of variation.
Common causes of variation are based on random causes that we cannot identify. These
types of variation are unavoidable and are due to slight differences in processing.

An important task in quality control is to find out the range of natural random variation
in a process. For example, if the average bottle of a soft drink called Cocoa Fizz contains 16
ounces of liquid, we may determine that the amount of natural variation is between 15.8 and
16.2 ounces. If this were the case, we would monitor the production process to make sure
that the amount stays within this range. If production goes out of this range—bottles are
found to contain on average 15.6 ounces— this would lead us to believe that there is a
problem with the process because the variation is greater than the natural random variation.

1.2 Assignable causes of variation

The second type of variation that can be observed involves variations where the causes
can be precisely identified and eliminated. These are called assignable causes of variation.
Examples of this type of variation are poor quality in raw materials, an employee who needs
more training, or a machine in need of repair. In each of these examples the problem can be
identified and corrected. Also, if the problem is allowed to persist, it will continue to create a
problem in the quality of the product.

32
 2.2DESCRIPTIVE STATISTICS
Descriptive statistics can be helpful in describing certain characteristics of a product and
a process. The most important descriptive statistics are measures of central tendency such as
the mean, measures of variability such as the standard deviation and range, and measures of
the distribution of data. We first review these descriptive statistics and then see how we can
measure their changes.

The Mean
In the soft drink bottling example, we stated that the average bottle is filled with 16
ounces of liquid. The arithmetic average, or the mean, is a statistic that measures the central
tendency of a set of data. Knowing the central point of a set of data is highly important. Just
think how important that number is when you receive test scores!

The Range and Standard Deviation

There are two measures that can be used to determine the amount of variation in the
data. The first measure is the range, which is the difference between the largest and smallest
observations. Another measure of variation is the standard deviation. The equation for
computing the standard deviation is

33
 Small values of the range and standard deviation mean that the observations are closely
clustered around the mean. Large values of the range and standard deviation mean that the
observations are spread out around the mean.

Distribution of Data

A third descriptive statistic used to measure quality characteristics is the shape of the
distribution of the observed data. When a distribution is symmetric, there are the same
numbers of observations below and above the mean. This is what we commonly find when
only normal variation is present in the data. When a disproportionate number of
observations are either above or below the mean, we say that the data has a skewed
distribution.

2.3STATISTICAL PROCESS CONTROL METHODS

Statistical process control methods extend the use of descriptive statistics to monitor the
quality of the product and process. As I tried to show so far, there are common and
assignable causes of variation in the production of every product. Using statistical process
control we want to determine the amount of variation that is common or normal. Then we
monitor the production process to make sure production stays within this normal range. That
is, we want to make sure the process is in a state of control. The most commonly used tool
for monitoring the production process is a control chart. Different types of control charts are
used to monitor different aspects of the production process.

Developing Control Charts

A control chart (also called process chart or quality control chart) is a graph that shows
whether a sample of data falls within the common or normal range of variation. A control
chart has upper and lower control limits that separate common from assignable causes of
variation. The common range of variation is defined by the use of control chart limits. We

34
say that a process is out of control when a plot of data reveals that one or more samples fall
outside the control limits.

Types of Control Charts

Control charts are one of the most commonly used tools in statistical process control.
They can be used to measure any characteristic of a product, such as the weight of a cereal
box, the number of chocolates in a box, or the volume of bottled water. The different
characteristics that can be measured by control charts can be divided into two groups:
variables and attributes. A control chart for variables is used to monitor characteristics that
can be measured and have a continuum of values, such as height, weight, or volume. A soft
drink bottling operation is an example of a variable measure, since the amount of liquid in
the bottles is measured and can take on a number of different values.

A control chart for attributes, on the other hand, is used to monitor characteristics that
have discrete values and can be counted. Often they can be evaluated with a simple yes or
no decision. Examples include color, taste, or smell.

Statistical process control is used to monitor many different types of variables and
attributes. In the next two sections we look at how to develop control charts for variables
and control charts for attributes.

2.4CONTROL CHARTS FOR VARIABLES

Control charts for variables monitor characteristics that can be measured and have a
continuous scale, such as height, weight, volume, or width. When an item is inspected, the
variable being monitored is measured and recorded.

Range (R) Charts

Range (R) charts are another type of control chart for variables. Whereas x-bar charts
measure shift in the central tendency of the process, range charts monitor the dispersion or
variability of the process. The method for developing and using R-charts is the same as that
for x-bar charts.

Using Mean and Range Charts Together

We see that mean and range charts are used to monitor different variables. The mean or
x-bar chart measures the central tendency of the process, whereas the range chart measures
35
the dispersion or variance of the process. Since both variables are important, it makes sense
to monitor a process using both mean and range charts. It is possible to have a shift in the
mean of the product but not a change in the dispersion. a shift in either the mean or the range
means that the process is out of control, it is important to use both charts to monitor the
process.

2.5CONTROL CHARTS FOR ATTRIBUTES

Control charts for attributes are used to measure quality characteristics that are counted
rather than measured. Attributes are discrete in nature and entail simple yes-or-no decisions.
Two of the most common types of control charts for attributes are p-charts and c-charts.

I. P-charts are used to measure the proportion of items in a sample that are
defective. Examples are the proportion of broken cookies in a batch and the
proportion of cars produced with a misaligned fender. P-charts are appropriate
when both the number of defectives measured and the size of the total sample
can be counted. A proportion can then be computed and used as the statistic of
measurement.

II. C-charts count the actual number of defects. For example, we can count the
number of complaints from customers in a month, the number of bacteria on a
petri dish, or the number of barnacles on the bottom of a boat. However, we
cannot compute the proportion of complaints from customers, the proportion of
bacteria on a petri dish, or the proportion of barnacles on the bottom of a boat.

2.6ACCEPTANCE SAMPLING
Acceptance sampling refers to the process of randomly inspecting a certain number of
items from a lot or batch in order to decide whether to accept or reject the entire batch. What
makes acceptance sampling different from statistical process control is that acceptance
sampling is performed either before or after the process, rather than during the process.
Acceptance sampling before the process involves sampling materials received from a
supplier, such as randomly inspecting crates of fruit that will be used in a restaurant, boxes
of glass dishes that will be sold in a department store, or metal castings that will be used in a
machine shop. Sampling after the process involves sampling finished items that are to be
shipped either to a customer or to a distribution center. Examples include randomly testing a

36
certain number of computers from a batch to make sure they meet operational requirements,
and randomly inspecting snowboards to make sure that they are not defective.

Acceptance sampling is used when inspecting every item is not physically possible or
would be overly expensive, or when inspecting a large number of items would lead to errors
due to worker fatigue. This last concern is especially important when a large number of
items are processed in a short period of time. Another example of when acceptance sampling
would be used is in destructive testing, such as testing eggs for salmonella or vehicles for
crash testing. Obviously, in these cases it would not be helpful to test every item! However,
100 percent inspection does make sense if the cost of inspecting an item is less than the cost
of passing on a defective item.

The goal of acceptance sampling is to determine the criteria for acceptance or rejection
based on the size of the lot, the size of the sample, and the level of confidence we wish to
attain. Acceptance sampling can be used for both attribute and variable measures, though it
is most commonly used for attributes. In this section we will look at the different types of
sampling plans and at ways to evaluate how well sampling plans discriminate between good
and bad lots.

Sampling Plans

A sampling plan is a plan for acceptance sampling that precisely specifies the
parameters of the sampling process and the acceptance/rejection criteria. The variables to be
specified include the size of the lot (N), the size of the sample inspected from the lot (n), the
number of defects above which a lot is rejected (c), and the number of samples that will be
taken.

There are different types of sampling plans. Some call for single sampling, in which a
random sample is drawn from every lot. Each item in the sample is examined and is labeled
as either “good” or “bad.” Depending on the number of defects or “bad” items found, the
entire lot is either accepted or rejected. For example, a lot size of 50 cookies is evaluated for
acceptance by randomly inspecting 10 cookies from the lot. The cookies may be inspected to
make sure they are not broken or burned. If 4 or more of the 10 cookies inspected are bad,
the entire lot is rejected. In this example, the lot size N = 50, the sample size n = 10, and the

37
maximum number of defects at which a lot is accepted is c = 4. These parameters define the
acceptance sampling plan.

Another type of acceptance sampling is called double sampling. This provides an

opportunity to sample the lot a second time if the results of the first sample are inconclusive.
In double sampling we first sample a lot of goods according to preset criteria for definite
acceptance or rejection. However, if the results fall in the middle range, they are considered
inconclusive and a second sample is taken. For example, a water treatment plant may sample
the quality of the water ten times in random intervals throughout the day. Criteria may be set
for acceptable or unacceptable water quality, such as .05 percent chlorine and .1 percent
chlorine. However, a sample of water containing between .05 percent and .1 percent chlorine
is inconclusive and calls for a second sample of water.

In addition to single and double-sampling plans, there are multiple sampling plans.
Multiple sampling plans are similar to double sampling plans except that criteria are set for
more than two samples. The decision as to which sampling plan to select has a great deal to
do with the cost involved in sampling, the time consumed by sampling, and the cost of
passing on a defective item. In general, if the cost of collecting a sample is relatively high,
single sampling is preferred. An extreme example is collecting a biopsy from a hospital
patient. Because the actual cost of getting the sample is high, we want to get a large sample
and sample only once. The opposite is true when the cost of collecting the sample is low but
the actual cost of testing is high. This may be the case with a water treatment plant, where
collecting the water is inexpensive but the chemical analysis is costly. In this section we
focus primarily on single sampling plans.

Operating Characteristic (OC) Curves

As we have seen, different sampling plans have different capabilities for discriminating
between good and bad lots. At one extreme is 100 percent inspection, which has perfect
discriminating power. However, as the size of the sample inspected decreases, so does the
chance of accepting a defective lot. We can show the discriminating power of a sampling
plan on a graph by means of an operating characteristic (OC) curve. This curve shows the
probability or chance of accepting a lot given various proportions of defects in the lot.

38
 There is a small percentage of defects that consumers are willing to accept. This is
called the acceptable quality level (AQL) and is generally in the order of 1–2 percent.
However, sometimes the percentage of defects that passes through is higher than the AQL.
Consumers will usually tolerate a few more defects, but at some point the number of defects
reaches a threshold level beyond which consumers will not tolerate them. This threshold
level is called the lot tolerance percent defective (LTPD). The LTPD is the upper limit of the
percentage of defective items consumers are willing to tolerate.

Consumer’s risk is the chance or probability that a lot will be accepted that contains a
greater number of defects than the LTPD limit. This is the probability of making a Type II
error—that is, accepting a lot that is truly “bad.” Consumer’s risk or Type II error is
generally denoted by beta (β). The relationships among AQL, LTPD, and are shown in
Figure 6-13. Producer’s risk is the chance or probability that a lot containing an acceptable
quality level will be rejected. This is the probability of making a Type I error—that is,
rejecting a lot that is “good.” It is generally denoted by alpha (α).

39
Fig 5 An OC curve showing producer’s risk (α) and consumer’s risk (β)

40
Average Outgoing Quality
As we observed with the OC curves, the higher the quality of the lot, the higher is the
chance that it will be accepted. Conversely, the lower the quality of the lot, the greater is the
chance that it will be rejected. Given that some lots are accepted and some rejected, it is
useful to compute the average outgoing quality (AOQ) of lots to get a sense of the overall
outgoing quality of the product.

How Much and How Often to Inspect

Consider Process Stability: - Stable processes that do not change frequently do not need
to be inspected often. On the other hand, processes that are unstable and change often should
be inspected frequently.

Consider Lot Size The size of the lot or batch being produced is another factor to consider
in determining the amount of inspection. A company that produces a small number of large
lots will have a smaller number of inspections than a company that produces a large number
of small lots. The reason is that every lot should have some inspection, and when lots are
large, there are fewer lots to inspect.

Where to Inspect

Since we cannot inspect every aspect of a process all the time, another important
decision is to decide where to inspect. Some areas are less critical than others. Following are
some points that are typically considered most important for inspection.

Inbound Materials: - Materials that are coming into a facility from a supplier or distribution
center should be inspected before they enter the production process. It is important to check
the quality of materials before labor is added to it. Another reason for checking inbound
materials is to check the quality of sources of supply. Consistently poor quality in materials
from a particular supplier indicates a problem that needs to be addressed.

Finished Products: - Products that have been completed and are ready for shipment to
customers should also be inspected. This is the last point at which the product is in the
production facility. The quality of the product represents the company’s overall quality. The
final quality level is what will be experienced by the customer, and an inspection at this

41
point is necessary to ensure high quality in such aspects as fitness for use, packaging, and
presentation.

Prior to Costly Processing: - During the production process it makes sense to check
quality before performing a costly process on the product. If quality is poor at that point and
the product will ultimately be discarded, adding a costly process will simply lead to waste.
For example, in the production of leather armchairs in a furniture factory, chair frames
should be inspected for cracks before the leather covering is added. Otherwise, if the frame
is defective the cost of the leather upholstery and workmanship may be wasted.

Which Tools to Use

In addition to where and how much to inspect, managers must decide which tools to use
in the process of inspection. As we have seen, tools such as control charts are best used at
various points in the production process. Acceptance sampling is best used for inbound and
outbound materials. It is also the easiest method to use for attribute measures, whereas
control charts are easier to use for variable measures. Surveys of industry practices show
that most companies use control charts, especially x-bar and R-charts, because they require
less data collection than p-charts.

42
 Chapter three

3. Japanese Contribution to Quality

The birth of total quality in the United States was in direct response to a quality
revolution in Japan following World War II, as major Japanese manufacturers converted
from producing military goods for internal use to producing civilian goods for trade.

At first, Japan had a widely held reputation for shoddy exports, and their goods were
shunned by international markets. This led Japanese organizations to explore new ways of
thinking about quality.

3.1 Deming, Juran, and Japan

The Japanese welcomed input from foreign companies and lecturers, including two
American quality experts:

 W. Edwards Deming, who had become frustrated with American managers

when most programs for statistical quality control were terminated once the war
and government contracts came to an end.

 Joseph M. Juran who predicted the quality of Japanese goods would overtake
the quality of goods produced in the United States by the mid-1970s because of
Japan’s revolutionary rate of quality improvement.

Japan’s strategies represented the new “total quality” approach. Rather than relying
purely on product inspection, Japanese manufacturers focused on improving all
organizational processes through the people who used them. As a result, Japan was able to
produce higher-quality exports at lower prices, benefiting consumers throughout the world.

American managers were generally unaware of this trend, assuming any competition
from the Japanese would ultimately come in the form of price, not quality. In the meantime,
Japanese manufacturers began increasing their share in American markets, causing
widespread economic effects in the United States: Manufacturers began losing market share,
organizations began shipping jobs overseas, and the economy suffered unfavorable trade
balances. Overall, the impact on American business jolted the United States into action.

43
3.2 The American Response
At first, U.S. manufacturers held onto to their assumption that Japanese success was
price-related and thus responded to Japanese competition with strategies aimed at reducing
domestic production costs and restricting imports. This, of course, did nothing to improve
American competitiveness in quality.

As years passed, price competition declined while quality competition continued to

increase. By the end of the 1970s, the American quality crisis reached major proportions,
attracting attention from national legislators, administrators and the media. A 1980 NBC-TV
News special report, “If Japan Can… Why Can’t We?” highlighted how Japan had captured
the world auto and electronics markets. Finally, U.S. organizations began to listen.

The chief executive officers of major U.S. corporations stepped forward to provide
personal leadership in the quality movement. The U.S. response, emphasizing not only
statistics but approaches that embraced the entire organization, became known as Total
Quality Management (TQM).

Several other quality initiatives followed. The ISO 9000 series of quality-management
standards, for example, were published in 1987. The Baldrige National Quality Program and
Malcolm Baldrige National Quality Award were established by the U.S. Congress the same
year. American companies were at first slow to adopt the standards but eventually came on
board.

3.3 Beyond Total Quality

By the end of the 1990s Total Quality Management (TQM) was considered little more
than a fad by many American business leaders (although it still retained its prominence in
Europe).

While use of the term TQM has faded somewhat, particularly in the United States,
quality expert Nancy Tague says: “Enough organizations have used it with success that, to
paraphrase Mark Twain, the reports of its death have been greatly exaggerated

As the 21st century begins, the quality movement has matured. Tague says new quality
systems have evolved beyond the foundations laid by Deming, Juran and the early Japanese
practitioners of quality.

44
 Some examples of this maturation:

 In 2000 the ISO 9000 series of quality management standards was revised to
increase emphasis on customer satisfaction.

 Beginning in 1995, the Malcolm Baldrige National Quality Award added a

business results criterion to its measures of applicant success.

 Six Sigma, a methodology developed by Motorola to improve its business

processes by minimizing defects, evolved into an organizational approach that
achieved breakthroughs – and significant bottom-line results. When Motorola
received a Baldrige Award in 1988, it shared its quality practices with others.

 Quality function deployment was developed by Yoji Akao as a process for

focusing on customer wants or needs in the design or redesign of a product or
service.

 Sector-specific versions of the ISO 9000 series of quality management standards

were developed for such industries as automotive (QS-9000 and ISO/TS 16949),
aerospace (AS9000) and telecommunications (TL 9000) and for environmental
management (ISO 14000).

 Quality has moved beyond the manufacturing sector into such areas as service,
healthcare, education and government.

 The Malcolm Baldrige National Quality Award has added education and
healthcare to its original categories: manufacturing, small business and service.
Many advocates are pressing for the adoption of a “nonprofit organization”
category as well.

Japan is world renowned for its incredible record for total quality control, quality
improvement process and lean management.

Lean Manufacturing, simply, is a method of doing more with less. Specifically, Lean
Manufacturing is producing high quality products with minimal floor space, work-in-process
(WIP) inventory, finished goods inventory, material movement, non-value-added activities, and
human effort. Lean Manufacturing encompasses elements of total quality management (TQM),

45
just-in-time (JIT), etc. within a system designed for flexibility and maximum customer
satisfaction.

Lean Manufacturing is a business initiative to reduce waste in manufactured products.

The basic idea is to reduce the cost systematically, throughout the product and production
process.[8]

3.4 Kanban
When most people think of lean manufacturing or TPS, they think of a kanban system.
While it is a key component to a well established lean manufacturing environment, it is only
part of the system.

The basic concept of a kanban is a hand sized card that moves with the product or
material. It signals when product is to be built or when material can be moved. A company
disciplined in lean manufacturing methods will not build product or move material without
the proper kanbans. In order to implement a system using kanbans, you must first
understand the types of kanbans, their functions and most importantly, the rules.[16]

Types of Kanbans
There are two basic classifications of kanbans; generic and brand. Generic kanbans
are not tied to a specific product, but will tell you when to move material or build product
and the quantity required. Brand kanbans will tell you specifically what to build or move
when to build it and how many are required. Both types of kanbans may have more
information than stated above, such as where the parts are to be delivered, but the main point
is to understand the differences between the two types of kanbans.

Within the two classifications there are two main types of kanbans; production
kanbans and move kanbans. Production kanbans give the signal to build. Move kanbans
(or withdrawal kanbans) give the signal to move product or material.

Examples of production kanbans could be hand sized cards that signal when to build
product. A taped off location within a production cell that signals that a part can be built and
placed in that location.

46
 Examples of move (withdrawal) kanbans could be a hand sized card that informs when
to move material. A full skid may be an indication that the product needs to be moved in
favour of an empty skid. A part placed within a taped off location could be the signal that
the part is OK to move to the next operation.[16]

Kanban Functions
The most important function of a kanban is that it instructs when to produce or convey
parts. In a lean manufacturing environment, no production or parts movement should take
place without a kanban. In essence, it is your work order or pick list.

Another key function is visual control; to identify what is in each box. Each box of
product (finished goods, raw components or sub-assemblies) should have a kanban attached
to it. Seeing a box of parts without a kanban is a clear signal that something is out of place.

The third major function is inventory control. When using a kanban system, it is very
easy to control the amount of finished product on hand. The number of kanbans in the
system will be determined through levelized production and only that quantity of kanbans
will be issued, thus keeping your inventory at the pre-determined level. Regular
audits of the system will keep this quantity in check.[16]

Kanban Rules
Last, but certainly not least, you must define, apply and follow a set of kanban rules
(policies, procedures) for your company. Some of the major rules that should be included at
your company; however you may find it necessary to include some of your own.

1. Never move or produce parts without a kanban. As stated earlier, a

box without a kanban will signify a problem.

2. Never produce more parts than you have kanbans for. Kanbans are
used to control inventory for many reasons. Producing parts without
a kanban will create waste of inventory and will leave boxes
unidentified (see rule #1).

3. Never move more parts than you have kanbans for. Storage
locations are usually established with a set level of inventory in

47
 mind. Moving extra boxes could result in unnecessary overflow at
the storage location.

4. No one is permitted to send information other than that on a kanban.

A brand kanban (which most production kanbans would be) will tell
you what to build, when to build it and how much to build.
Communicating information other than this will violate one of the
other rules.

5. Do not send defective product to the next operation. This is a basic

lean manufacturing concept but it must also apply to kanban
systems. As the amount of inventory will be low, passing on bad
parts could lead to many types of waste with emphasis on waste of
defects. Remember, in order to ensure success when implementing a
kanban system, you must train everyone on the proper use and
communicate the importance of discipline. Establish your rules and
ensure everyone in your company understands them. [16]

Advantages and Disadvantages of Kanban

Advantages of Kanban

1. Optimize inventory and reduce product obsolescence. Since

component parts are not delivered until just before they are needed,
there is a reduced need for storage space. Should a product or
component design be upgraded, that upgrade can be included in the
final product ASAP (As Soon As Possible). There is no inventory of
products or components that become obsolete. This fits well with
the Kaizen system on continual improvement. Product designs can
be upgraded in small increments on a continual basis, and those
upgrades are immediately incorporated into the product with no
waste from obsolete components or parts.

2. Reduces waste and scrap: - With Kanban, products and

components are only manufactured when they are needed. This

48
 eliminates overproduction. Raw materials are not delivered until
they are needed, reducing waste and cutting storage costs.

3. Provides flexibility in production: - If there is a sudden drop in

demand for a product, Kanban ensures we are not stuck with excess
inventory. This gives us the flexibility to rapidly respond to a
changing demand. Kanban also provides flexibility in how our
production lines are used. Production areas are not locked in by
their supply chain. They can quickly be switched to different
products as demand for various products changes. Yes, there are
still limits imposed by the types of machines and equipment, and
employee skills, however the supply of raw materials and
components is eliminated as a bottleneck.

4. Increases Output: - The flow of Kanban (cards, bins, pallets, etc.)

will stop if there is a production problem. This makes problems
visible quickly, allowing them to be corrected ASAP.
Kanban reduces wait times by making supplies more accessible and
breaking down administrative barriers. This results in an increase in
production using the same resources.

5. Reduce total cost: - the kanban system reduces our total costs by:
preventing over production, developing flexible work stations,
reducing waste and scrap, minimizing wait times and logistics costs,
reducing stock levels and overhead costs, saving resources by
streamlining production, reducing inventory costs

6. Improves flow

7. Prevents overproduction

8. Places control at the operations level

9. Improves responsiveness to changes in demand

10. Lead time is kept to a minimum

11. Totally customer driven demand

49
 12. Better machine utilization

Disadvantage of Kanban:

1. It is less effective in shared-resource situations. Suppose the

upstream station made several parts. Then a request to make
more of the part needed by the downstream station will have
to wait if other parts have to be made. A buffer is needed to
ensure the downstream station doesn't run out meanwhile.
And, because each part needs a separate signaling card, the
system becomes more complex than if the resources were
dedicated.

2. Surges in mix or demand cause problems because kanban

assumes stable repetitive production plans. It is less suited to
industries where mix and volumes fluctuate.

3. Kanban in itself doesn't eliminate variability, so unpredictable

and lengthy down times could disrupt the system; poor quality
in terms of scrap and rework also affect its good functioning.

4. Kanban systems are not suited for manufacturing

environments with short production runs, highly variable
product demand, poor quality products, and a multitude of
product types.

5. A breakdown in the kanban system can result in the entire line

shutting down.

6. The throughput of a kanban system is not managed but is

instead a result of controlled WIP and known cycle times

3.5 Kaizen: Definitions

50
 In term of a common person we could always define kaizen as a concept which seeks of
continuous improvement. It is a very simple and elegant definition which gives idea about
what you are striving for.

It is really amazing that a concept which changes an organization is so easy to describe

in one sentence, In fact we could understand from this that kaizen itself speaks of
simplifying things and works toward removal of complexity, thereby increasing
productivity, performance and profit.

Historical Background of Kaizen

Kaizen activities have developed and spread in Japan and later to the rest of the world in
four phases.

The first phase was the absorption of foreign technique by Japan in the early postwar
period. In the 1950s, the world market perceived Made-in-Japan products to be as “low
price, low quality.”

Driven by a sense of urgency for industrial catch-up, Japan learned American style
quality management from Drs. W. E. Deming and J. M. Juran, and adapted this to the
Japanese context. A national movement for quality and productivity improvement emerged,
supported by the Union of Japanese Scientists and Engineers (JUSE), established in 1946,
and the Japan Productivity Center (JPC), established in 1955. Many companies developed
their own systems of kaizen, including the globally known TPS developed by the Toyota
Motor Corporation. These efforts laid a solid foundation for establishing the so-called
Japanese production management system. Thus, kaizen was originally a foreign technique
which was adopted and adjusted to become a Japanese technique.

The second phase was diffusion throughout Japanese companies, including small and
medium sized ones. This led to a rapid increase in the number of QCCs in the 1970s and
80s.

The two oil crises in the 1970s drove Japanese companies to integrate energy saving
into their quality and productivity improvement efforts. The third phase was the regional
spreading of kaizen beginning in the mid 1980s, which coincided with the globalization of
Japanese business activities. The sharp appreciation of the Japanese yen after the Plaza

51
Agreement in 1985 prompted Japanese manufacturing companies to shift their production
bases to East Asia where production costs were lower. Japanese firms tried to duplicate the
quality management system in their factories abroad. Moreover, as they endeavored to
increase local procurement of intermediate inputs, local suppliers were requested to conform
to Japan’s quality standards. Japanese companies often assisted their local partners to learn
kaizen philosophy and practices. Also, various public organizations—the Association for
Overseas Technical Scholarship (AOTS), established in 1959, the Asian Productivity
Organization (APO), established in 1961 as a regional inter-governmental organization, the
Japan Overseas Development Corporation (JODC), established in 1970, the Japan
International Cooperation Agency (JICA), JUSE, and JPC—began their active engagement
in kaizen assistance in developing countries. The first JICA project for productivity
management was extended to Singapore from 1983 to 1990 (see Chapter 5). Building on the
success of this cooperation, the Singapore Productivity and Standard Board has
subsequently grown to become a major organization to extend training programs to other
countries and regions, including the Southern African Development Community (SADC)
under partnership arrangements with JICA.

The fourth phase, which is now beginning, has witnessed growing interest in East
Asia’s industrial experience in other developing regions (including Africa). However,
outside, interest in and knowledge of the East Asian approach often remains general and
insufficient, and has not been operational zed with practical details. This situation, together
with the Japanese government’s TICAD IV initiative for promoting trade and investment in
Africa, provides an opportunity for Japan to more actively publicize and introduce kaizen in
developing regions including Africa.

The widespread acceptance of kaizen into management thinking, including the

successes of Kaizen Institute produced clients in more than 50 countries. [5]

Kaizen: Principles and Tools

The two key features of kaizen are incremental and continuous improvement and
involvement of the entire workforce in that process. The workforce, even workers, need

52
to participate in producing small but frequent changes by making suggestions for
improvement in both process and product. [13]

Key Principles of Kaizen

Workers also have strong personal discipline, and morale in factories must
improve under kaizen.[5]

 Workers should also be confident about offering suggestions for improvement,

even when a system appears to be functioning adequately.[5]

 Kaizen recognizes that there is always room for improvement. [5]

 Finally, the system uses quality circles, worker groups who meet and work
together to solve problems and come up with innovative changes. [5]

Major Tools of Kaizen

Most “uniquely Japanese” management practices, such as total quality control (TQC) or
companywide quality control and quality circles, and our style of labor relations can be
reduced to one word: kaizen. Using the term kaizen in place of such buzzwords as
productivity, total quality control (TQC), zero defects (ZDs), just- in- time (JIT), and the
suggestion system paints a clearer picture of what has been going on in Japanese industry.
Kaizen is an umbrella concept for all these practices

Beyond that, the logical structure of the concept of kaizen, the precise relationship
among its tools, and concrete measures and sequences adopted on the factory floor, are
difficult to pin down since there are many different schools of teaching that emphasize
different aspects and tools of kaizen relative to others. Even among excellent companies,
Toyota’s way is different from Honda’s way, and the Panasonic philosophy is quite distinct
from Canon’s.

According to Masaaki Imai, who introduced kaizen to the international audience with
his seminal book, Kaizen: the Key to Japan’s Competitive Success, kaizen is an umbrella
concept for a large number of Japanese business practices (See figure 1 below). It could
even be argued that, like Zen Buddhism, it is not just a management technique but a

53
philosophy which instructs how a human should conduct his or her life. Kaizen focuses on
the way people approach work. It shows how management and workers can change their
mindset together to improve their productivity.

As Edwards C. Johnson III, CEO of Fidelity Investment, puts it, while there are many
strategies for management success, kaizen is different since it helps focus in a very basic
way on how people conduct their work (Imai, 1997). [5]

Figure 6 The Kaizen Umbrella

Pillars of Kaizen

According to M. Imai, a guru in these management philosophies and practices, the three
pillars of kaizen are summarized as follows:

 Housekeeping

 Elimination

 Standardization

54
 And as he states, the management and employees must work together to fulfill the
requirements for each category. To be ensured success on activities on those three pillars
three factors have also to be taken account.

1) Visual management,

2) The role of the supervisor,

3) The importance of training and creating a learning organization.

KAIZEN and Innovation

A Kaizen practice improves the status quo by bringing added value to it. Kaizen does
not replace or preclude innovation. Rather, the two are complementary. After Kaizen has
been exhausted, ideally, innovation should take off, and Kaizen should follow as soon as
innovation is initiated. Kaizen will support the improvement of existing activities, but it will
not provide the giant step forward. It is important for the firm to maintain a balance between
innovation and a Kaizen strategy that focuses on improvement. It is top management's job to
maintain this balance between Kaizen and innovation, and it should never forget to look for
innovative opportunities.

If efforts are continued toward a clearly defined goal, it is bound for Kaizen to yield
positive results. However, Kaizen is limited in that it does not replace or fundamentally
change the status quo. As soon as Kaizen’s marginal value starts declining, one should turn
to the challenge of innovation. Kaizen signifies small improvements made in the status quo
as a result of ongoing efforts. Innovation involves a drastic improvement in the status quo as
a result of a large investment in new technology and/or equipment or a totally re-engineered
product/process. On the following table are classified according to some important factors
the differences between kaizen and innovation.

Applying Kaizen to routine work is the key to success. Working on special projects is
important, but in the long run, it is the day-to-day application of Kaizen practices to routine
work that gets results.

Major Kaizen Systems

55
 The following are major systems that should be in place in order to successfully achieve
a kaizen strategy:

 Total quality control (TQC)/total quality management (TQM)

 A just -in- time (JIT) production system (Toyota Production System)

 Total productive maintenance (TPM)

 Policy deployment

 A suggestion system

 Small -group activities

3.6 Toyota Production System

Lean implementations are likely to start with overall process flow charts called Value
Stream Maps. These help leaders visualize how to proceed with implementation. First they
construct an "as is" flow chart, sometimes opening their eyes to how much waste lards their
operations. Then they construct a "to be" chart representing a slimmer, trimmer future.
Comparing the "as is" with the "to be" chart generates a vision for implementation,
including a few driving performance indicators. But Toyota doesn't start with Value Stream
Maps. Initially they marshal the changes in sub-processes by heading them all True North.
"Material and information flow" charts appear much later to link processes and march them
along together. True North is what we should do, not what we can do, the ultimate ideal for
the overall process, and for every sub-process within it. There is no other vision.

Toyota production system concentrate on the seven sources of waste originally outlined,
and were called "muda." but Lean Manufacturing often adds the eighth waste sources
"workforces under utilization" category

Differences between the Toyota Production System, as practiced by Toyota and lean
manufacturing are significant. Two of those are that TPS emphasizes worker development
for problem solving and spends much more time creating standardized work, which lean
seldom incorporates.

56
 The production system developed by Toyota Motor Corporation to provide best quality,
lowest cost, and shortest lead time through the elimination of waste. TPS is comprised of
two pillars, just-in-time and jidoka, and often is illustrated with the “house” shown at right.
TPS is maintained and improved through iterations of standardized work and kaizen,
following PDCA, or the scientific method.

Development of TPS is credited to Taiichi Ohno, Toyota’s chief of production in the

post-WW II period. Beginning in machining operations and spreading from there, Ohno led
the development of TPS at Toyota throughout the 1950s and 1960s, and the dissemination to
the supply base through the 1960s and 1970s. Outside Japan, dissemination began in earnest
with the creation of the Toyota- General Motors joint venture—NUMMI—in California in
1984.

The concepts of just-in-time (JIT) and jidoka both have their roots in the prewar period.
Sakichi Toyoda, founder of the Toyota group of companies, invented the concept of jidoka
in the early 20th Century by incorporating a device on his automatic looms that would stop
the loom from operating whenever a thread broke. This enabled great improvements in
quality and freed people to do more value creating work than simply monitoring machines
for quality. Eventually, this simple concept found its way into every machine, every
production line, and every Toyota operation.

Kiichiro Toyoda, son of Sakichi and founder of the Toyota automobile business,
developed the concept of JIT in the 1930s. He decreed that Toyota operations would contain
no excess inventory and that Toyota would strive to work in partnership with suppliers to
level production. Under Ohno’s leadership, JIT developed into a unique system of material
and information flows to control overproduction.

Widespread recognition of TPS as the model production system grew rapidly with the
publication in 1990 of The Machine That Changed the World, the result of five years of
research led by the Massachusetts Institute of Technology. The MIT researchers found that
TPS was so much more effective and efficient than traditionalmass production that it
represented a completely new paradigm and coined the term lean production to indicate this
radically different approach to production.

57
Identification and Elimination of Waste

Philosophy

 Identification and elimination of waste is the central theme of a lean

manufacturing production system

 Lean manufacturing is a dynamic and constantly improving process dependent

upon understanding and involvement by all employees

 Successful implementation requires that all employees must be trained to

identify and eliminate waste from their work

 Waste exists in all work and at all levels in the organization

Philosophy

Effectiveness is the result of the integration of:

 Man

58
  Method

 Material

 Machine at the worksite

Seven Types of Waste

1) Over-production: -

 Incapable Processes

 Just in Case Reward System

 Lack of Communication

 Local Optimization

 Automation in the Wrong Places

 Cost Accounting Practices

 Low Uptimes

2) Waiting time waste: - Idle Time that is Produced When Two Dependant
Variables are Man Wait Time and Machine Wait Time.

Characteristics:
 Man Waiting for Machine

 Machine/Materials Waiting for Man

 Unbalanced Operations (Work)

 Lack of Operator Concern for Equipment Breakdowns

 Unplanned Equipment Downtime

 Causes

 Inconsistent Work Methods

 Long Machine Change Over Time

 Low Man/Machine Effectiveness

 Lack of Proper Equipment/Materials not Fully Synchronized.

59
3) Transportation: - Any Material Movement That Does Not Directly Support a
Lean

Characteristics:

 Extra carts, fork lifts, dollies

 Multiple Storage Locations

 Extra Material Racks

 Complex Inventory Management

 Extra Facility Space

 Incorrect Inventory Counts

 Causes:
 Large Lot Processing

 Unleveled Schedules

 Lack of 5 S’s

 Lack of Visual Controls

 Improper Facility Layout

 Large Buffers and In Process Kanbans

4) Processing waste: - Effort Which Adds No Value To a Product or Service.

Enhancements which are Transparent to The Customers or Work Which Could
Be Combined with Another Process.

Characteristics:

 Process Bottlenecks

 Lack of Clear Customer Specifications

 Endless Refinement

 Redundant Approvals

 Extra Copies/Excessive Information

60
  Causes:
 Engineering Changes Without Processing Changes

 Decision Making at Inappropriate Levels

 Inefficient Policies and Procedures

 Lack of Customer Input Concerning Requirements

5) Inventory waste: - Any Supply in Excess of Process Requirements Necessary

to Produce Goods or Services Just in Time.

Characteristics:
 Extra Space on Receiving Docks

 Material Between Processes

 Stagnated Material Flow

 LIFO instead of FIFO

 Extensive Rework When Problems Surface

 Long Lead Time for Engineering Changes

 Additional Material Handling Resources (Men, Equipment,

 Causes:
 Incapable Processes

 Uncontrolled Bottleneck Processes

 Incapable Suppliers

 Long Change Over Times

 Management Decisions

 Local Optimization

6) Motion waste: - Any Movement of People Which Does Not Contribute Added
Value to the Product or Service.

Characteristics:

61
  Looking for Tools

 Excessive Reaching or Bending

 Material Too Far Apart (Walk Time)

 Equipment for Moving Parts

 Extra “Busy” Movements While Waiting

 Causes:
 Equipment, Office & Plant Layout

 Lack of 5 S’s

 Lack of Visual Controls

 Inconsistent Work Methods (Standardized Work)

 Large Batch Sizes

7) Rework or Correction Waste: - Repair of a Product or Service To Fulfill

Customer requirements.

Characteristics:
 Extra Floor Space/Tools/Equipment

 Extra Manpower To Inspect/Rework/Repair

 Stockpiling Inventory

 Complex Material Flow

 Questionable Quality

 Missed Shipments/Deliveries

 Lower Profits Due To Scrap

 Reactive Organization

 Causes:
 Incapable Processes

 Excessive Variation

62
  Incapable Suppliers

 Management Decisions

 Insufficient Training

 Inadequate Tools/Equipment

 Poor Layouts/Unnecessary Handling

 High Inventory Levels

3.7 Quality circles

Quality Circles are usually characterized as small, voluntary groups of employees set up
to meet periodically for such practical purposes as:

 Pinpointing, examining, analyzing and solving problems in areas

including knowledge management, innovation, work relations,
quality, productivity, safety, cost, etc.

 Enhancing communication between employees and management on

the above areas Quality Circles can only thrive if management will
take action on the recommendations of the Circle. When the
management has no interest in participation as is often the case, the
Circles simply disintegrate.

Quality Circles are successful when they:

 are part of an entire system focusing on organisational improvement

which includes strong management commitment

 are supported by other Quality Circles in other organisational

departments

 have employee input

 are part of a long-term plan for continuous improvement,

 are supported through education for employees and subcontractors

 Have a strong customer orientation.

63
 The small business owner must be willing and able to commit the time and resources
needed to train the employees who will participate in the programme, particularly the quality
circle leaders and facilitators. It may even be necessary to hire outside facilitators if the time
and expertise does not exist in-house.

Small business owner must also allow time for the quality circles to begin achieving
desired results; in some cases, it can take more than a year for expectations to be met.

Successful quality circles offer a wide variety of benefits for small businesses. E.g. they
serve to increase management's awareness of employee knowledge and ideas, as well as
employee awareness of the need for knowledge sharing and innovation within the company.
Quality circles also serve to facilitate communication and increase commitment among both
labour and management.

In enhancing employee satisfaction through participation in decision-making, such

initiatives may also improve a small business's ability to recruit and retain qualified
employees.

In addition, many companies find that quality circles further teamwork and reduce
employee resistance to change.

Finally, quality circles can improve a small business's overall competitiveness by

making best use on explicit and tacit knowledge, reducing costs, improving quality, and
promoting innovation.

In most quality circle programmes there are no direct financial rewards for coming up
with good ideas or cost savings.

Quality circles normally meet on a regular basis, often at two-week intervals, for
perhaps one or two hours.

Objectives of Quality Circle:

1. Change in Attitude. From "I don’t care" to "I do care" Continuous improvement in
quality of work life through humanization of work.

2. Self Development Bring out ‘Hidden Potential’ of people, People get to learn
additional skills.

64
3. Development of Team Spirit Individual vs. Team – "I could not do but we did it
"Eliminate inter departmental conflicts.

4. Improved Organizational Culture Positive working environment. Total involvement

of people at all levels. Higher motivational level. Participate Management process.

Fig 7 quality circle

65
 Chapter four

4. Tools in quality tool

The Seven Basic Tools of Quality is a designation given to a fixed set of graphical
techniques identified as being most helpful in troubleshooting issues related to quality. They
are called basic because they are suitable for people with little formal training in statistics
and because they can be used to solve the vast majority of quality-related issues.

The seven tools are:

 Cause-and-effect diagram (also known as the "fishbone" or Ishikawa diagram)

 Check sheet

 Control chart

 Histogram

 Pareto chart

 Scatter diagram

 Stratification (alternately, flow chart or run chart)

The designation arose in postwar Japan, inspired by the seven famous weapons of
Benkei. It was possibly introduced by Kaoru Ishikawa who in turn was influenced by a
series of lectures W. Edwards Deming had given to Japanese engineers and scientists in
1950. At that time, companies that had set about training their workforces in statistical
quality control found that the complexity of the subject intimidated the vast majority of their
workers and scaled back training to focus primarily on simpler methods which suffice for
most quality-related issues.

The Seven Basic Tools stand in contrast to more advanced statistical methods such as
survey sampling, acceptance sampling, statistical hypothesis testing, design of experiments,
multivariate analysis, and various methods developed in the field of operations research.

66
 The Project Management Institute references the Seven Basic Tools in A Guide to the
Project Management Body of Knowledge as an example of a set of general tools useful for
planning or controlling project quality.

Where did the Basic Seven come from?

Kaoru Ishikawa

 Known for “Democratizing Statistics”

 The Basic Seven Tools made statistical analysis less complicated for the average
person

 Good Visual Aids make statistical and quality control more comprehendible.

What Is a Flowchart?

 A diagram that uses graphic symbols to depict the nature and flow of the steps in a
process.

Benefits of Using Flowcharts

Promote process understanding Provide tool for training Identify problem areas and
improvement opportunities

" Draw a flowchart for whatever you do. Until you do, you do not know what you are
doing, you just have a job.”

-- Dr. W. Edwards Deming.

67
 Fig levels of flow chart

What Is a Cause and Effect Diagram?

A graphic tool that helps identify, sort, and display possible causes of a problem or
quality characteristic.

68
 Benefits of Using a Cause-and-Effect Diagram
 Helps determine root causes

 Encourages group participation

 Uses an orderly, easy-to-read format

 Indicates possible causes of variation

 Increases process knowledge

 Identifies areas for collecting data

Fig basic layout of cause and effect diagram

69
70
71
72
73
Fig pareto chart

74
 Scatter Diagrams

Scatter Diagrams are used to study and identify the possible relationship between the
changes observed in two different sets of variables.

75
76
77
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