TQM PRESENTATION BY

GROUP 1
HRIDAY BORA
VISHNU TEJ
NEELANJAN GHOSH
MOHIT TARWAY

September
1
16, 2017
Value Chain Analysis

The value is the total amount that buyers are willing to

pay for a firms products.
The difference between the total value and the total
cost of performing all of the firms activities provides
the margin .
The value chain is a tool developed by Dr. Michael
porter
 Portersdefinition includes all activities to design, produce,
market, deliver, and support the product/service.
The value chain is concentrating on the activities starting with
raw materials till the conversion into final goods or services.
Two categories:
1. Primary Activities (operations, distribution, sales)
2. Support Activities (R&D, Human Resources)
TYPES OF VALUE CHAIN

Value Chain is categorized into types based on

the type of organizations.

1. Manufacturing based.
2. Service based.
3. Both manufacturing and service based.
What is value chain analysis?

Used to identify sources of competitive advantage

Specifically:
Opportunities to secure cost advantages
Opportunities to create product/service
differentiation
Includes the value-creating activities of all industry
participants
Value Chain Model
SUPPORT Firm Infrastructure
ACTIVITIES
Human Resource Management

Technology Development

Procurement

Inbound Operatio Outbound Sales & Service and

Logistics ns. Logistics Marketing Support

PRIMARY ACTIVITIES
PRIMARY ACTIVITIES
1.INBOUND LOGISTICS
- Concerned with receiving, storing, distributing inputs (E.G. Handling
of raw materials, warehousing, inventory control)

2. OPERATIONS
- Comprise the transformation of the inputs into the final product form
(E.G. Production, assembly, and packaging)

3. OUTBOUND LOGISTICS
-Involve the collecting, storing, and distributing the product to the buyers
(E.G. Processing of orders, warehousing of finished goods, and delivery)
4. MARKETING AND SALES
-Identification of customer needs and generation of sales.
(E.G. Advertising, promotion, distribution)

5. SERVICE
-Involves how to maintain the value of the product
After it is purchased.(E.G. Installation, repair,
Maintenance, and training)
SUPPORT ACTIVITIES
1.FIRM INFRASTRUCTURE
The activities such as Organization structure, control system, company culture are
categorized under firm infrastructure.
2.HUMAN RESOURCE MANAGEMENT
Involved in recruiting, hiring, training, development and compensation.
3.TECHNOLOGY DEVELOPMENT
These activities are intended to improve the product and the process, can occur in many
parts of the firm.
4.PROCUREMENT
Concerned with the tasks of purchasing inputs such as raw materials, equipment, and even
labor.
USES OF VALUE CHAIN ANALYSIS

The sources of the competitive advantage of a firm can be seen

from its discrete activities and how they interact with one one
another.
The value chain is a tool for systematically examining the
activities of a firm and how they interact with one another and
affect each others cost and performance.
A firm gains a competitive advantage by performing these
activities better or at lower cost than competitors.
Helps you to stay out of the No Profit Zone
Presents opportunities for integration
Aligns spending with value processes
VERTICAL LINKAGES
Linkages can also exist outside the firm; for instance there is a linkage between a firms chain and the value
chain of its suppliers and channels.

e.g. The activities of the raw materials suppliers affect the activities of the firm. Similarly, the activities of the
distributor also affect the firm.
MUDA

Muda is a Japanese word, which means waste,

where waste is any activity that does not add
value. Reducing or eliminating Muda is, of
course, one of the fundamental objectives of any
quality-oriented person.
7 MUDAS
Taichi ohno of Toyota identified what are called the seven
wastes or seven Mudas
1. Waste from overproduction
2. Waste of time in waiting
3. Transportation waste
4. Processing waste
5. Inventory waste
6. Waste of motion
7. Waste from product defects
1.Waste from overproduction

Which leads to excess inventory, paperwork, handling, storage, space, interest

charges, machinery, defects, people and overhead.
It is often difficult to see this waste as everyone seems busy.
Unnecessary production to show higher machine utilization

Strategies to eliminate :-
Strong production planning and control
Production according to customer schedule
Firm delivery requirement from marketing.
2.Waste of time in waiting
Its occurs when worker or machine is not performing its job.
People may be waiting for parts or instructions.
Mostly they are waiting for one another, which often happens because they have non-aligned objectives.
The talent of employees also wasted.
Tools to identify
Kaizen
Method study
3.Transportation waste
It is highly visible form of waste unnecessary transportation create the need for more storage space, more
equipment and workers.
Poor layouts lead to things being moved multiple times.
If things are not well place, they can be hard to find.
It can aggravate alignment of processes.
Strategies to eliminate
Store material as close to the point of use as possible
Avoid transportation over long distance.
Avoid over production.
4.Waste from product defects

Defects imply rework or reject. Research confirms that 20 to 30% of manufacturing

companys gross revenues are spent on correcting mistake.
Defects cause rework, confusion and upset a synchronized set of processes.
Loss of customer
Loss of future business
Causes of defects
Incorrect product design
Defective materials
Poorly trained employees
Strategies to eliminate :-
Design reviews
Training to employees
Maintenance of machines and equipment.
5.Waste of motion
A worker while performing a task makes use of a number of motions. Some of these motion-
Are unnecessary and can be eliminated
Can be combined by changing their sequence.
Can be performed efficiently by other members of the body.
Strategies to eliminate
Motion economy principal
Effective supervision
6.Inventory waste
Inventory comprises of finished goods semi-finished products or parts and supplies. Excess inventory is a real waste as it
does not add value but add to the cost by-
Occupying space
Requiring additional equipment and facilities such as storage racks, cupboards etc.
Strategies to eliminate
Dispose off obsolete material to save space and to avoid confusion.
Do not produce items ahead of customer's delivery requirements.
Do not manufacture products in excess of customer's requirements.
7.Processing waste
Processing cost of a product is mainly decided by conversion process, combination
of mechanical and chemical operations and supports activities required to
produce goods and services.
Additional effort may be required in an inefficient process
Causes of MUDA of processing
Poor allocation of work to men
Failure to identify and use of most effective method
Over production
Tools to eliminate
Method study
Simplification
Kaizen
Muda in office:-
Muda can also be found in support function such as engineering, planning,
marketing, purchase, stores, a/c and hrm etc.
Examples of Muda in office
Waiting the people at meeting
Making unproductive phone calls
Unnecessary copies of documents
Letterheads printed in excess of requirements.
Tools to eliminate
Work Simplification
5-s technique for office
 INTRODUCTION

What is a Poka- yoke?

Shigeo shingo defined poka-yoke as POKA- Inadvertent

mistake that anyone can make and YOKE- To prevent or
proof
Poka-yoke is a tool to have zero defects and even reduce
or eliminate quality control.
Poka-yoke is a Japanese name for fool-proofing.
Poke-yoke represents the intelligence of the operator by
excluding repetitive actions that require a thinking
process.
22
 MISTAKE PROOFING
Mistake-Proofing a product's design and its manufacturing
process is a key element of design for manufacturability /
assembly (DFM/A)
Mistake proofing is also a key element of improving
product quality and reliability

FACTORS CONTRIBUTING TO MISTAKE PROOFING:

Attention
Perception
Memory
Logical reasoning
September
23
16, 2017
 PRINCIPLES OF MISTAKE-PROOFING
There are six mistake-proofing principles or methods.
Elimination seeks to eliminate the possibility of error by
redesigning the product or process so that the task or part
is no longer necessary.
Replacement substitutes a more reliable process to
improve consistency.
Prevention engineers the product or process so that it is
impossible to make a mistake at all.
Facilitation employs techniques and combining steps to
make work easier to perform.
Detection involves identifying an error before further
processing occurs so that the user can quickly correct the
problem.
Mitigation seeks to minimize the effects of errors.
24
2-STATUS & 3-FUNCTIONS OF POKA-YOKE

POKA-YOKE HAS 2 STATUS AND 3 FUNCTIONS:

Status:
1.The fault will happen or
2.The fault has happened
Functions:
1.Stop
2.Check or
3.Alarm
25
 THREE STRATEGIES FOR ZERO DEFECT

Only make the product when required!

Make the product so it can not be used for anything else.

If the product is ready use it immediately.

26
 POKA-YOKE CLASSIFICATION

Poka-yoke is classified into the following types:

Server Poka-Yokes Customer Poka-Yokes

Task Preparation

Encounter

Treatment Tangibles Resolution

27
PROVIDER(SERVER) ERRORS
Task Errors
Doing the work incorrectly
Doing work not requested
Doing work in the wrong order
Doing work too slowly

Treatment Errors
Not acknowledging the customer
Not listening to the customer
Not reacting appropriately to the customer

Tangible Errors
Failure to clean facilities
Failure to control noise

28
 CUSTOMER ERRORS
Preparation Errors
Failure to bring necessary materials to the encounter
Failure to engage the correct service

Encounter Errors
Failure to remember steps in the service process
Failure to follow system flow
Failure to follow instructions

Resolution Errors
Failure to learn from experience
Failure to adjust expectations appropriately

29
 SEVEN STEPS TO POKA-YOKE ATTAINMENT

Quality Processes

Utilize a team environment

Elimination of Errors

Eliminate the Root Cause of The Errors

Do It Right The First Time

Eliminate Non-Value Added Decisions

Implement a Continual Improvement Approach

30
 POKA-YOKE APPROACH
Proactive Approach :
A fully implemented ZERO DEFECT QUALITY system requires Poka-
Yoke usage at or before the inspection points during the process.
Poka-yoke will catch the errors before a defective part is
manufactured 100% of the time.
Reactive Approach :
Check occurs immediately after the process.
Can be an operator check at the process or successive check at
the next process.
Not 100% effective, will not eliminate all defects.
Effective in preventing defects from being passed to next process.
31
Two Poka-Yoke System approaches are utilized in
manufacturing which lead to successful ZERO DEFECT
QUALITY:
1.Control Approach:
Shuts down the process when an error occurs.
Keeps the suspect part in place when an operation is
incomplete.
2.Warning Approach
Signals the operator to stop the process and correct the
problem.

September
32
16, 2017
 CONTROL SYSTEM
Takes human element out of the equation ; does not
depend on an operator or assembler.
Has a high capability of achieving zero defects.
Machine stops when an irregularity is detected.

September
33
16, 2017
 WARNING SYSTEMS

Sometimes an automatic shut off system is not an option.

A warning or alarm system can be used to get an operators
attention.
Color coding is also an effective non-automatic option

September
34
16, 2017
 TEN TYPES OF HUMAN MISTAKES

Forgetfulness
Mis-understanding
Wrong identification
Lack of experience
Willful (ignoring rules or procedure)
Inadvertent or sloppiness
Slowliness
Lack of standardization
Surprise (unexpected machine operation, etc.)
Intentional (sabotage)
September
35
16, 2017
 POKA-YOKE DEVICES
Poka yoke is implemented by using simple objects like
fixtures, jigs, warning devices and the like to prevent
people from committing mistakes, even if they try to!.
The main feature of poka-yoke devices is their exceptional
suitability for reducing or eliminating defects through
effective feedback and instantaneous corrective action.
These devices are capable of being used all the time by all
workers; simple and usually installed with low
implementation cost.
Poka-yoke devices help eliminate errors and defects by
giving machines the intelligence to stop and signal when
a error occurs.
Poka-yoke devices stop machines and alert workers when a
problem exists. September
36
16, 2017
 THE THREE LEVELS OF POKA-YOKE:

There are three levels at which your company can effect

poka-yoke:

Eliminating errors defects and losses at the source or

prevention of a mistake from being committed..

Detection of a loss or mistakes it occurs,allowing correction

before it becomes a problem.

Detection of a loss or mistakes after it has occurred,just in

time before it blows up into a major issue(least effective).
September
16, 2017
37
EXAMPLES OF POKA-YOKE PRODUCTS

September
38
16, 2017
 IMPLEMENTATION IN MANUFACTURING

Poka-yoke can be implemented at any step of a

manufacturing process where something can go wrong or an
error can be made.
Shigeo Shingo recognized three types of poka-yoke
for detecting and preventing errors in a mass production
system:
The contact method identifies product defects by testing
the product's shape, size, color, or other physical
attributes.
The fixed-value (or constant number) method alerts the
operator if a certain number of movements are not made.
The motion-step (or sequence) method determines whether
the prescribed steps of the process have been followed.
September
39
16, 2017
 ADVANTAGES
They are simple and cheap.

They are part of the process, implementing what Shingo

calls "100%" inspection.

They are placed close to where the mistakes occur,

providing quick feedback to the workers so that the
mistakes can be corrected.

Once put in place, they require minimal supervision.

September
40
16, 2017
 CONCLUSION
Poka-yokes deals with understanding why people make errors
and how to analyze the process to know where errors are likely to occur
and what root causes contribute to them.
Since the poka-yoke devices detect errors at their roots n prevent them
from blowing up to become bigger problems, there is consistency in the
quality of the products, saving the cost and time spent in subsequent
quality inspection processes.

September
41
16, 2017
INTRODUCTION

KAI = CHANGE

ZEN = GOOD

"CHANGE FOR THE BETTER"

Kaizen = Continuous Improvement
...by Everybody! Everyday! Everywhere!
WHAT IS KAIZEN?

A Japanese philosophy that focuses on continual improvement throughout all

aspects of life
When applied to the workplace, it can improve every function of a business,
from manufacturing to marketing and from the CEO to the assembly-line
workers
Aims to eliminate waste in all systems of an organization through improving
standardized activities and processes
THE CONTINUOUS CYCLE OF KAIZEN ACTIVITY HAS
SEVEN PHASES:
Identify an opportunity
Analyze the process
Develop an optimal solution
Implement the solution
Study the results
Standardize the solution
Plan for the future

September
44
16, 2017
HISTORY

Kaizen was originally introduced to the West by Masaaki Imai in his

book Kaizen: The Key to Japans Competitive Success in 1986
Today Kaizen is recognized worldwide as an important pillar of an
organizations long-term competitive strategy.
KAIZEN ACTIVITIES COVER IMPROVEMENTS IN A NUMBER OF
AREAS, INCLUDING:

Quality Bettering products, service, work environment, practice and processes.

Cost Reducing expenses and manpower, and use of material, energy and resources.
Delivery Cutting delivery time, movement and non-value-added activities
Management Improving procedures, training, morale, administration, planning, flow,
information systems, documentation and reporting.
Safety Decreasing hazardous situations, unsafe working conditions, chances of resource
depletion and damage to the environment.
THE FOLLOWING ARE SOME BASIC TIPS FOR DOING KAIZEN:

Replace conventional fixed ideas with fresh ones.

Start by questioning current practices and standards.
Seek the advice of many associates before starting a Kaizen activity.
Think of how to do something, not why it cannot be done.
Dont make excuses. Make execution happen.
Do not seek perfection. Implement a solution right away, even if it covers only 50 percent of the
target.
Correct something right away if a mistake is made.
KAIZEN IS CONTINUOUS IMPROVEMENT THAT IS BASED ON
CERTAIN GUIDING PRINCIPLES:
Good processes bring good results
Go see for yourself to grasp the current situation
Speak with data, manage by facts
Take action to contain and correct root causes of problems
Work as a team
Kaizen is everybodys business
 IMPLEMENTATION
The Toyota Production System is known for kaizen, where all line personnel are expected to stop
their moving production line in case of any abnormality and, along with their supervisor, suggest
an improvement to resolve the abnormality which may initiate a kaizen
The cycle of kaizen activity can be defined as:
THANK YOU

September
50
16, 2017