PRODUCTION MANAGEMENT - V

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QMS De finitions
A Quality Ma gem nt S m is : Qua Mana me Syste is: lity na e yste Sy mfor ma ging the quality of a stem n Syste m na anaging qua lity an orga tion niza organiza Includes everything in the orga nization tha t eve rything organiza tion that relate to qua lity: rela s quality: tes
Products a nd services se rvice s Proce s sse Ope tions ra Custome Sa r tisfa ction

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What are ISO 9000 Standards?

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ISO 9000 Standards Define the required elements of an effective quality management system Can be applied to any company Revised 2000 wider applicability

ISO 9000

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How did ISO get started?

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1906 - International Electro-technical Commission 1926 - International Federation of the National Standardizing Associations (ISA) 1946 London - delegates from 25 countries decided to create a new international organization "the objective of which would be to facilitate the international coordination and unification of industrial standards 1947 - ISO began to officially function 1951 - The first ISO standard was published

"Standard reference temperature for industrial length measurement".

ISO 9000

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HISTORY OF ISO 9000

1987 Version 1994 Version 2000 Version 9000:2008: Published November 14, 2008 The Headquarter of ISO Organisation is located in Geneva (Switzerland) ISO 9001:2008 contains no new requirements compared to the 2000 edition. It provides clarifications based on eight years experience of implementing the previous standard worldwide and introduces changes intended to improve consistency with the environmental management system standard, ISO 14001:2004.

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Who created the standards?

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International Organization for Standardization - Geneva ISO tech committee - TC 176 started in 1979 Standards created in 1987 To eliminate country to country differences To eliminate terminology confusion To increase quality awareness

ISO 9000

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2. Definition of Quality (ISO 9000:2000)

The degree to which a set of inherent characterstics fulfils requirements.

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BENEFITS OF QUALITY MANAGEMENT

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International practices for quality management. Common language for dealing with customers and suppliers worldwide in B2B (Business to Business). Increase efficiency and effectiveness by early recognising problems. Model for continual improvement. Model for satisfying customers and other stakeholders. Build quality into products and services from design onwards. Address environmental concerns of customers and public, and comply with government regulations. Integrate with global economy. Optimizing processes for production and information

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4. Four Core Standards

1. ISO 9000:2000: Definitions, vocabulary, fundamentals 2. ISO 9001:2000: Requirements of the quality management system 3. ISO 9004: 2000: Guidelines for performance improvements 4. ISO 19011: guidelines for quality and/or environmental management systems audit

Of these, only ISO 9001 is a certifiable standard (i.e. ISO 9001 is the only standard that you can be assessed against), with the others being for guidance and information purposes only.

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EIGHT QUALITY MANAGEMENT PRINCIPLES

1: Customer focus 2. Leadership 3. Involvement of people 4. 5. 6. 7. 8. Process approach System approach to management Continual improvement Factual approach to decision making Mutually beneficial supplier relationships

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RELATED MANAGEMENT SYSTEMS

ISO 13485 : 2003-2007 For medical devices: ISO 9001:2000 certification is mandatory ISO TS 16949:2001 Quality management systems Particular requirements for the application of ISO 9001:2000 for automotive production and relevant service part organizations EN ISO 14001:2005 - 2004 Environmental management systems There exist about 17,400 ISO standards.

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CONTENTS ISO 9001:2000

Section 1: Scope v Section 2: Fundamentals of quality management systems v Section 3: Terms and definitions v Section 4: General requirements v Section 5: Management responsibility v Section 6: Resource management v Section 7: Product realization v Section 8: Measurement, analysis and improvement In effect, users need to address all sections 1 to 8, but only 4 to 8 needs implementing within a QMS. The system requirements are shown in the clauses 4 to 8.
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ISO ORGANIZATION

General Assembly
Policy Development Committees Council Technical Management Board Technical Advisory Groups Technical Committees Technical Committees Technical Committees Technical Committees

ISO 9000

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What has ISO Accomplished?

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ISO film speed code Standard format for telephone and banking cards ISO 9000 which provides a framework for quality management and quality assurance ISO 14000 series provides a similar framework for environmental management Internationally standardized freight containers Standardized paper sizes. Automobile control symbols ISO international codes for country names, currencies and languages
ISO 9000

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Why adopt ISO 9000?

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To comply with customers who require ISO 9000 To sell in the European Union market To compete in domestic markets To improve the quality system To minimize repetitive auditing by similar and different customers To improve subcontractors performance

ISO 9000

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Ten Steps to ISO Registration

10. Registration! 9. Final assessment by registrar 8. Take corrective actions 7. Pre-assessment by registrar 6. Submit quality manual for approval 5. Perform self-analysis audit 4. Select a third-party registrar and apply 3. Develop and implement the quality system 2. Select the appropriate standard 1. Set the registration objective
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Six Essential Elements of a Successful Registration Effort

Appropriate ISO 9000 Training An Effective Management Review Process Documentation of the Quality System An Effective Internal Auditing System An Effective Corrective Action Process

Senior Management Commitment to the Effort

ISO 9000

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What is Lean?
Lean production focuses on eliminating waste in processes (i.e. the waste of work in progress and finished good inventories) Lean production is not about eliminating people Lean production is about expanding capacity by reducing costs and shortening cycle times between order and ship date Lean is about understanding what is important to the customer

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HISTORY & EVOLUTION

1850 American Civil War

Before 1850

Craft manufacturing
Eli Whitney (Interchangeable parts) Drawing conventions, Tolerances Modern machine tool development

1900

Fredrick Taylor (Standardized work, time study & work standards) Frank Gilbreth (Process charts, motion study)

World War I

Henry Ford (Assembly lines, flow lines, manufacturing strategy)

World War II 1950

Deming & Juran (SPC, TQM) Eiji Toyoda, Taiichi Ohno, Shigeo Shingo Toyota production system, JIT Stockless production, World class manufacture

1990

Lean Manufacture

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Introduction To Lean
What is Lean Manufacturing?
Lean manufacturing is the process of analyzing the flow of information and materials in an environment and continuously improving the process to achieve enhanced value for the enterprise. It uses the building blocks of: standardized work, workplace organization, effective plant layout, quality at the source, batch reduction, teams, customer demand-based manufacturing, quick changeover, cellular manufacturing and inventory management.

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Introduction To Lean

CUSTOMER FOCUS A lean manufacturing enterprise thinks more about its customers (internal & external) than it does about running machines fast to absorb labor and overhead. Ensuring Internal and External customer input and feedback assures quality and customer satisfaction,

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Introduction To Lean
FOCUS ON WASTE The aim of Lean Manufacturing is the elimination of waste in every area of the organization including Customer relations (Sales) Accounting Product design Supplier Networks Quality HR Safety Manufacturing Engineering
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Introduction To Lean
LEAN GOALS Goal is to IMPROVE EVERY PROCESS WITHIN AN ORGANIZATION REQUIRING: Less human effort Less materials Less inventory Less time Less space To become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible

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Introduction To Lean
In 1945, Toyota challenged Taiichi Ohno to learn how to compete with US Automakers not on building large volumes of similar models, but many models in low volume. Ohno was given 3 years to develop a system to achieve this goal.

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Introduction To Lean
Ohno went to the US and studied Ford mass assembly processes at the Rouge River Plant. Ohno learned a lot from this experience, but felt Ford stopped short of a better system. Ohno also studied the supermarket concept of ordering and replenishing stock.

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Introduction To Lean
It took Ohno over 20 years to develop the system that became known as The Toyota Production System (TPS) It took until the 1974 Oil Crisis before outsiders and others in Japan really took notice of the TPS system that Ohno built and the way it was allowing Toyota to compete when others were faltering.

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Introduction To Lean
Lean Manufacturing came to the US with James Womacks Book, The Machine That Changed The World in 1990. Focused on Toyota Production System Concepts and Why Toyota was able to so successful over US Auto Manufacturers.

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Introduction To Lean

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7 WASTES
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Over production Waiting Transporting Inappropriate processing Inventory Unnecessary operator motions Defects

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Waste of Over-Production?

Click to edit Master text styles Second level Third level Fourth level Fifth level

Kanban/ Contingency plans

Waste of Waiting?

Click to edit Master text styles Second level Third level Fourth level Fifth level

Waiting x

Smooth flow

WASTE OF TRANSPORTING?

Small wheeled containers/ Manual

Waste of Inappropriate processing?

Using a hammer to crack a nut One big machine instead of several smaller ones discourages ownership (distributed to the points of use) Smallest machine capable of producing the required quantity

Waste of Unnecessary Motion

Quality of work Life Bending Reaching Number of turns to loose a nut > 2 Walking wider

Waste of Defects?
Defect = Challenge = Opportunity to improve Longer duration of undetected defects

= Defect cost

Waste In Organizations

is Usually Disguised as:

Lost Time/Injury Accidents Scrap/Rework Machine Setups Machine Downtime 3rd Party Inspection

Calibrations Inventory Storage Counting Inventory Supplier Lead-times Product Test Profit Reductions Falling Market Share

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WASTE IN THE OFFICE IS DISGUISED AS

Administrative Waste

Conflicting Department Goals not everyone on the same page Traditional Accounting Methods rewarding people for creating waste, for example; inventory Poor Product Design designs which do not include the needs of the internal and external customers Long Order Processing Time Searching, Hunting, Looking for files, orders, invoices, reports, memos etc. Waiting Time waiting for batched paperwork, instructions, supervision etc. Purchasing Reorders, Transactions Authorizations
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Eliminating Waste

Improves our ability to provide customer satisfaction, while reducing our overall costs!
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5S
A method for organizing a workplace, and keeping it organized. Benefits 1.Improve safety 2.Decrease down time 3.Raise employee morale 4.Identify problems more quickly 5.Develop control through visibility 6.Establish convenient work practices

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LOGO

7QC TOOLS
1. 2. 3. 4. 5. 6. 7.

Histograms, Seven Pareto Charts,

Quality Tools

Cause and Effect Diagrams, Run Charts, Scatter Diagrams, Flow Charts, Control Charts

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Kaoru Ishikawa developed sevenTools of Ishikawas Basic basic visual tools of quality so that the average person Quality could analyze and interpret data. These tools have been used worldwide by companies, managers of all levels and employees.

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Histogram

Histograms
Slide 1 of 3

A histogram is a bar graph that shows frequency data. Histograms provide the easiest way to evaluate the distribution of data.

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Creating a Histogram

Histograms

Slide 2 of 3 Collect data and sort it into categories.

Then label the data as the independent set or the dependent set.. Each mark on either axis should be in equal increments. For each category, find the related frequency and make the horizontal marks to show that frequency.

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Histograms Examples of How Histograms Can Be Used

Slide 3 of 3

Histograms can be used to determine distribution of sales. Say for instance a company wanted to measure the revenues of other companies and wanted to compare numbers.

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Pareto Chart

Pareto Charts

Slide 1 of 4 Pareto charts are used to identify and prioritize problems to be solved. They are actually histograms aided by the 80/20 rule adapted by Joseph Juran.

Remember the 80/20 rule states that approximately 80% of the problems are created by approximately 20% of the causes.

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Constructing aPareto Charts Pareto Chart First, information must be selected based on types or classifications of defects that occur as a result of a process. The data must be collected and classified into categories. Then a histogram or frequency chart is constructed showing the number of occurrences.
Slide 2 of 4

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Pareto Charts
Slide 4 of 4

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CAUSE AND EFFECT DIAGRAMS

Cause and Effect Diagram Defined
The cause and effect diagram is also called the Ishikawa diagram or the fishbone diagram. It is a tool for discovering all the possible causes for a particular effect. The major purpose of this diagram is to act as a first step in problem solving by creating a list of possible causes.

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CAUSE AND EFFECT DIAGRAMS

Constructing a Cause and Effect Diagram
First, clearly identify and define the problem or effect for which the causes must be identified. Place the problem or effect at the right or the head of the diagram. Identify all the broad areas of the problem. Write in all the detailed possible causes in each of the broad areas. Each cause identified should be looked upon for further more specific causes. View the diagram and evaluate the main causes. Set goals and take action on the main causes.

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CAUSE AND EFFECT DIAGRAMS

Diagram of the Incorrect Deliveries Example:

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Scatter Scatter Diagrams

Diagrams

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

Slide 1 of 4

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Constructing a Scatter Diagram Slide 2 of 4 First, collect two pieces of data and create a summary table of the data.

Scatter Diagrams

Draw a diagram labeling the horizontal and vertical axes.

It is common that the cause variable be labeled on the X axis and the effect variable be labeled on the Y axis.

Plot the data pairs on the diagram. Interpret the scatter diagram for direction and strength.

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Flow Charts

Flow Charts
Slide 1 of 3

A flow chart is a pictorial representation showing all of the steps of a process.

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Flow Creating a Flow Chart

Charts

Slide 2 of 3 First, familiarize the participants with the flow chart symbols. Draw the process flow chart and fill it out in detail about each element. Analyze the flow chart. Determine which steps add value and which dont in the process of simplifying the work.

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Run Charts

Charts
Slide 1 of 3

Run charts are used to analyze processes according to time or order.

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Creating a Run Chart

Gathering Data

Run Charts
Slide 2 of 3

Some type of process or operation must be available to take measurements for analysis.

Organizing Data

Data must be divided into two sets of values X and Y. X values represent time and values of Y represent the measurements taken from the manufacturing process or operation.

Charting Data

Plot the Y values versus the X values.

Interpreting Data

Interpret the data and draw any conclusions that will be beneficial to the process or operation.

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Run Charts An Example of Using a Run Chart

Slide 3 of 3 An organizations desire is to have their product arrive to their customers on time, but they have noticed that it doesnt take the same amount of time each day of the week. They decided to monitor the amount of time it takes to deliver their product over the next few weeks.

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Control Control Charts

Charts

Control charts are used to determine whether a process will produce a product or service with consistent measurable properties.

Slide 1 of 3

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Steps Used inControl Process Control Developing Charts Slide 2 of 3 Charts

Identify critical operations in the process where inspection might be needed. Identify critical product characteristics. Determine whether the critical product characteristic is a variable or an attribute. Select the appropriate process control chart. Establish the control limits and use the chart to monitor and improve. Update the limits.
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Process Flow Chart Activity

Construct a process flow chart by making the best decisions in finding the best route home. Refer to the prior notes on flowcharts.

Remember: Define and analyze the process, build a step-by step picture of the process, and define areas of improvement in the process.

Answer is on the next slide Example obtained from: <http://deming.eng.clemson.edu/pub/tutorials/qctools/flowm.ht m#Example>

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TQM
Total - made up of the whole Quality - degree of excellence a product or service provides Management - act, art or manner of planning, controlling, directing,. Therefore, TQM is the art of managing the whole to achieve excellence.

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Whats the goal of TQM?

Do the right things right the first time, every time.

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Another way to put it

At its simplest, TQM is all managers leading and facilitating all contributors in everyones two main objectives:

4 (1) total client satisfaction through quality products and services; and 4 (2) continuous improvements to processes, systems, people, suppliers, partners, products, and services.

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Productivity and TQM

Traditional view: Quality cannot be improved without significant losses in productivity. TQM view: Improved quality leads to improved productivity.

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BASIC TENETS OF TQM

The customer makes the ultimate determination of quality. Top management must provide leadership and support for all quality initiatives. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions.

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TQM & CONTINUOUS IMPROVEMENT

TQM is the management process used to make continuous improvements to all functions. TQM represents an ongoing, continuous commitment to improvement. The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement.

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Continuous Improvement versus Traditional Approach Traditional Approach Market-share focus Individuals Focus on who and why Short-term focus Status quo focus Product focus Innovation Fire fighting Continuous Improvement Customer focus Cross-functional teams Focus on what and how Long-term focus Continuous improvement Process improvement focus Incremental improvements Problem solving

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Value-based Approach
Manufacturing Dimensions
Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality
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Service Dimensions
Reliability Responsiveness Assurance Empathy Tangibles

WHAT IS JIT (Just-in-Time)?

a corporate system designed to produce output within the minimum lead time and at the lowest total cost by continuously identifying and eliminating all forms of corporate waste and variance. a corporate strategy a philosophy Focus of JIT: variance & waste

OBJECTIVE OF JIT
Produce only the products the customer wants. Produce products only at the rate that the customer wants them. Produce with perfect quality Produce with minimum lead time. Produce products with only those features the customer wants.

PUSH VS. PULL SCHEDULING

Push Scheduling traditional approach move the job on when finished problems - creates excessive inventory Pull scheduling coordinated production driven by demand (pulled through system)

KIRUBA DANIEL. J
Lecturer, MBA dept., Sri Venkateswara Institute of Information Technology & Management, Ettimadai, Coimbatore jkirubadaniel@gmail.com

Thank You !

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