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Presentation slides by Dr Anjan Ghosh …..

……VP-TQM Exide

3rd Sem 305-2
July-Dec 2010
Syllabus For MHROM ( CU ) : Paper 305 Module 2
Total Quality Management

Fundamentals of TQM ; The Evolution of Quality ; Terms and

Definitions ; Concept of Internal and External Customer ; Changing
Market Environments ; Capturing Voice of Customer ; Parameters of
Product and Service Quality ; Concepts and Philosophies of TQM ;
Concept of Process and System ; Process structure and
requirements ; Quality Planning ; Quality Improvement -Incremental
and Breakthrough ; The Plan-Do-Check-Act Cycle ; Sources of
Variation ; Statistical Process Control ; Quality Management System
- ISO 9000 ; Quality Management Principles ; Basic Statistics ;
Problem Solving Tools and Techniques ; Process Capability ; 6
Sigma Methodology ; Failure Mode and Effect Analysis ; Mistake
Proofing – Poka Yoke ; 5-S and Housekeeping ; Lean Management
and Waste Reduction ; Total Productive Maintenance ;
Benchmarking ; People Involvement in TQM ; Economics of Quality ;
Business Balanced Score Card ; Business Excellence Models.
External Developments

• Customers take charge

• Competition intensifies

• Shifts in industrial zones

• Changes in customer & supplier relationships

• Environmental concerns

• Rapid changes in technology

• Globalisation , Liberilisation, Govt. policies

• Change coming with ever increasing requirements

• Change becoming more complex
• The degree of change is changing- becoming faster

Coping with :-
External • uncertainty
Developments • variations
Requirements • complexity
• shorter response times
• improved quality & reliability
Measured by performance criteria

o effectiveness
o efficiency
o flexibility
o innovation
o quality
o cost
o productivity
o delivery


Requirements Adaptability

Performance Organisational
Criteria Characteristics
Degree of success

o vision and strategy

o structure and functions
o people and culture
o systems and processes
Evolution of Quality ( the last 100 years ) :-

• ----> 1900 Person dependent . Carpenter , potter .

• 1900 - 1920 Inspection . Accept / Reject . Not doing much for prevention
• 1920 - 1940 Statistical Quality / Process Control . Study process variation
• 1940 - 1950 SQC + Process Improvements . Technology . Layout . Methods
• 1950 - 1960 Process Design & Planning . Prevention as a concept
• 1960 - 1970 People Involvement . Quality Circles . Suggestion Box
• 1970 - 1980 Customer Focus . Concept of Total Quality . ALL contribute
• 1980 - 1990 Quality System Model ISO-9000 . Policy Deployment
• 1990 - 2000 Business Process Re-engineering , TPM , Empowerment .
Supplier involvement . Business Balanced Scorecard
Environmental System Model ISO-14000 .
Models for Business Excellence
• 2000-2005 Consumerism . User-friendliness . Hi-Tech / Hi-Touch . Service .
Delivery . Cost . Safety . Performance to Price ratio . Ecology .
Recycling . Design for Disassembly . Customer loyalty . Global
Products & Services . Dynamic benchmarking . Focus on non-
financial indicators . TQM as a business strategy .
• 2005 -2010 CSR , Ethics , Corporate Governance , Big Q..
• 2010 - ????
Slides by : Anjan Ghosh
What is Quality ?

• long life , durability

• reliability
• fitness for use
• zero defects
• performance as per specs

Genichi Taguchi’s definition of Quality

• loss to society – more the loss , less the quality

The Japanese Bullet Train is considered to be an example of excellent

Quality . But according to the Taguchi Loss Function it may not be so as
there are many losses to society such as farmland depletion , high cost , high
energy need etc

Slides by : Anjan Ghosh

ISO-9000 definition of quality

“ degree to which a set of inherent characteristics fulfils requirements”

The requirements are of customers .There are millions of customers

with their individual needs and requirements . The more the
requirements fulfilled the higher is the perception of quality

Is Quality absolute ?

It is not absolute . It depends on each person .

It depends on country , culture , time etc . What
we may have called high quality 20 years back
may be low quality now . So it is relative . But there
are some common factors regarding quality that
are more or less constant

Slides by : Anjan Ghosh

What is a Product ?

Product - Services (eg. Transport, hospital)

Software (eg. Computer program,
Hardware (eg., chair, spark plug)
Processed material (eg. Lubricant, cement)
Who is a customer ?

Customer - Uses the product

Distributes the product
Influences others about the product

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Who are our external customers

USE for themselves ( consumers , end-users , Govt.

bodies etc )

DISTRIBUTE to others ( wholesalers , dealers ,

retailers etc. )

INFLUENCE others to buy ( advisors , consultants

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Who are our internal customers ?

The next person impacted by our product or service

is our internal customer

Satisfying internal customers leads to satisfying

external customers

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8 Dimensions Of Product Quality

• Performance – primary operating characteristics

• Features – secondary aspects of performance

• Reliability – probability of successful performance

• Conformance – degree to which operating characteristics meet

specified standards

• Durability – measure of product life

• Serviceability – ease and cost of repair

• Aesthetics – look , feel , smell …..

• Perceived Quality – reputation , image

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10 Dimensions of Service Quality

• Reliability – consistency of performance ( dependability )

• Responsiveness – willingness, timeliness, readiness….
• Competence - skills & knowledge for performing service
• Access – approachability & ease of contact
• Courtesy – politeness , friendliness …..
• Communication – information , relationship management
• Credibility – trustworthiness , honesty , belief …..
• Security – freedom from risk , confidentiality .
• Understanding customer needs – specific requirements
• Tangibles – physical evidence of service , facilities, tools ,appearence

Slides by : Anjan Ghosh

What is TQM ?


Involving all Fullfillment of Planning

Stakeholders Requirements Implementing
(People) Of Customers Controlling
Processes Reviewing
Systems Improving

At all time

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What are the goals of TQM ?
• process improvement
• waste reduction
• customer satisfaction
• people involvement
• organisational performance
• improvement of teamwork
• make jobs enjoyable & satisfying

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Concepts & Philosophy Systems & Standards :- Tools & techniques :-

examples :- examples :- examples :-

Customer orientation ISO 9000 5-S

Process improvement ISO 14001 7 QC Tools
People involvement TS 16949 SPC
Effective leadership MIL-105 D QFD
Empowerment BIS / DIN / JIS FMEA
Core Values IEC 65 TPM
Win-Win relationships HACCP Benchmarking
Waste Reduction Bus. Excellence Models BBSC
Prevention better than cure OHSAS 18000 6 Sigma
PDCA Cycle

Slides by : Anjan Ghosh

3 Most Important Philosophies/ Focus Areas

• Customer Orientation Internal , External

• Process Improvement Kaizen , Breakthrough

• People Involvement QC’s, SGA’s , Suggestions

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Customer Profiles
Old Concepts New Concepts

• Uneducated / less technical • Educated / technically well

knowledge informed
• Needs are not specific • Needs are specific
• Has no or limited choice • Many choices
• Non-existant redressal forums • Strong consumer forum / laws
• Easily satisfied • Not easily satisfied
• Tastes slow to change • Tastes constantly changing
• Not many types / segments • Several types / segments
• Mostly urban • Urban and rural / Global
• Product Out approach by • Market in approach by
organisations organisations
• Primarily concerned with the • Concerned with product and
product quality service quality
• Head of the family was the • Children , housewives & others
decision maker have a say

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Process is the way we do things

Inputs Process Outputs

feedback •Goods

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Elements of a Process


Input Output
Material, Process Material,
Information Services
Mechanisms Information
Noise variables causing
the process to vary or
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What is a process ?

A Process Is...

suppliers customers

...a chain of activities transforming input

into output by adding value

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Process Structure

Main Process


Work Process

Support Processes
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Functions ( in departments .) vs. Processes

Cross-functional processes across depts.

Dept. 1 Dept. 2 Dept. 3

Vertical hierarchy of authority in Departments ; Horizontal workflow of the process

that runs across departments

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From S 2


P1 P2 P5 P6


Set of interrelated and interacting processes is a system

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A Process Must Be:

Effective : Meeting Customer Needs

Efficient : Least Cost, Least Time

Robust : Mistake-Proof

Flexible : Easy to Change

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Every Process Can Be:

• owned
• documented
• measured
• designed
• controlled
• improved

Example : a production process

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Main Business Processes...
... run across large parts of the organization.

• Product creation process

• Manufacturing process

• Market creation process

• Logistics process

• Supplier Base Mgt. process

• Customer complaints resolution process

Produce value for stakeholders

Slides by : Anjan Ghosh
...are assemblies of work-processes.
Examples: for manufacturing process
• Procurement
• Planning & Scheduling
• Production
• Maintenance
• Inspection & Testing
• Despatch

Many run across functions

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Work Processes...
...transform material, energy and information.


• operating a machine

• testing a product

• typing letters

• contacting customers

• storing material

Most take place within functions

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The 3 Voices


Supplier Process Customer



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Desired level Desired level

gap improvement improvement
no improvement
deterioration deterioration

Time Time

Desired level Desired level

Previous best
incremental Not an improvement.
deterioration Trying to go to normal
state or previous best .

Time Time
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Small Steps & Big Strides

Performance of best competitor

Incremental improvement

• Incremental • Breakthrough
Triggered by work experience Triggered by business strategy
No new technology Innovation
Gradual - Several in short time
Few in long span of time
Anybody can contribute
Low resources Require technical expertise
Large resources
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P-D-C-A Cycle for Improvement ( Deming Wheel )

Replan new target • Objectives / targets
• Strategies
• Activities
• Standardize the • Responsibilities
new process after A ct P lan • Resources
taking corrective • Time frame

• Check / Measure C heck Do

The result
• Implement plan
• If results meet target
• Change process
go to Act phase
• If not , go back to

All processes need to go through the P-D-C-A cycle for improvements

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Standardize and Improve:
Cycles of improvement

Business Strategy

standardize plan P-D-C-A

cycle cycle
maintain improve
do act process/
ways of working ways of working do

check check

Rigid - Flexibility

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Two sources of variation

• Random causes • Special causes

( or chance causes) ( or assignable causes )

– Normal variation – Abnormal variation

– Within control limits – Outside control limits
– Non-assignable – Assignable

Examples:- Examples:-
Small ambient changes Temp set point changes
Material Tolerence Out-of-spec materials
Shift operators Untrained operator

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Process Control

Left to itself a process will drift from its set-point due to the chance
and assignable causes . If the drift is too much the process may
go outside the tolerance limits or target values . So there is a need
for controlling the process by means of continuous feedback and
corrections – either manual or automatic .

The ability of a process to stay within the tolerance limits ( and hence
In control ) is called its stability

The ability of a process to go near to the target value is called

Its capability

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Requirements of control

• knowledge of what is to be done

- procedures , instructions , standards

• knowledge of what is being done

- feedback , monitoring & measurement

• means of adjusting process

- correction and corrective action

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Standard Organisations

International Organisation for Standardisation – ISO

(Gives all standards except electronics and electricals)

International Electro-technical Commission – IEC

(Gives all standards relating to electricals and electronics )

American Society for Testing & Materials - ASTM

Deutsches Institut fur Normung - DIN

Japanese Industrial Standards - JIS

Bureau of Indian Standards - BIS

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International Organisation for Standardisation – ISO

• Apex body consisting of 161 member countries – HQ Geneva

• Set up in 1947 to bring commonality in standards between countries

• ISO works with Technical Sub-committees and working groups of experts

• Have till date published about 18,000 standards

ISO 9000 series of standards :-

• Consists of about 150 experts from 52 countries (member bodies)

• Consists of Standardisation Bodies, Consultants, Certification Bodies,

Quality Managers of Industries, Industry Representatives, Consumer
Bodies, Professors etc.

• TC-176 set up in 1975 . ISO 9001 - 1st edition 1987 , 1994 , 2000 , 2008

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ISO 9000 : 2005 - Quality Management System


ISO 9001 : 2008 - Quality Management System REQUIREMENTS

ISO 9004 : 2009 - Quality Management System GUIDELINES

ISO 19011 : 2002 - Guidelines on QMS / EMS AUDITING

ISO 10012 :2003 - Measurment Management System REQUIREMENTS

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Based on ISO 9000 series other industries have made their
Own standards

• TL-9000 for Telecom sector

• AS-9100 for Aerospace
• ISO/TS-16949 for Automotive
• ISO 22000 for Food Safety
• ISO 26000 for Socoal Accountability
• etc

ISO –9000 lays down Principles , concepts , vocabulary

It also lays down the 8 management Principles which

Every organisation must focus on .

Slides by : Anjan Ghosh

Quality Management Principle 1

“Customer Focussed Organization”

Organizations depend on their customers and

therefore should understand current and
future customer needs, meet customer
requirements and strive to exceed customer

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Quality Management Principle 2


Leaders establish unity of purpose and

direction of the organization. They create the
internal environment in which people can
become fully involved in achieving the
organization’s objectives.

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Quality Management Principle 3

“Involvement of People”

People at all levels are the essence of an

organization and their full involvement
enables their abilities to be used for the
organization’s benefit.

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Quality Management Principle 4

“Process Approach”

A desired result is achieved more

efficiently when related resources and
activities are managed as a process.

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Quality Management Principle 5

“System Approach to Management”

Identifying, understanding and managing a

system of interrelated processes for a
given objective contributes to the
effectiveness and efficiency of the

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Quality Management Principle 6

“Continual Improvement”

Continual improvement is a
permanent objective of the

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Quality Management Principle 7

“Factual approach to decision making”

Effective decisions are based on the

analysis of data and information.

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Quality Management Principle 8

“Mutually beneficial supplier relationships”

Mutually beneficial relationships between the

organisation and its suppliers enhance the ability
of both organisations to create value.

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The ISO-9000 : Quality System Model

Continual improvement of the

quality management system

vision & planning
Customers requirements


Customers satisfaction
Analysis &

Realisation Product
input output


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Process-based structure of ISO-9001:2008

• Scope ( clause 1)
• Normative References ( clause 2 )
• Terms & Definitions (clause 3 )
• Quality management System ( clause 4)
General requirements, documentation requirements , Q.Manual ,
Control of documents & records
• Management responsibility ( clause 5 )
Commitment, Customer focus, Policy, Planning, Responsibility,
Communication, Review
• Resource management ( clause 6 )
Human resources, Infrastructure, Work environment
• Product realization ( clause 7 )
Customer Processes , Design, Purchasing, Operations, Calibration
• Measurement, analysis and improvement ( clause 8 )
Customer satisfaction, Audit, Process / product control, Non-conforming
product, Data analysis, Improvement
Slides by : Anjan Ghosh
Scope ( clause 1) ( where ISO-9001 can be applied )

General ( clause 1.1 )

ISO-9001 International Standard specifies requirements for a quality management

system where an organization

a) needs to demonstrate its ability to consistently provide product that meets customer
and applicable statutory and regulatory requirements, and

b) aims to enhance customer satisfaction through the effective application of the system,
including processes for continual improvement of the system and the assurance of
conformity to customer and applicable statutory and regulatory requirements.

Application ( clause 1.2 )

All requirements of this International Standard are generic and are intended to be
applicable to all organizations, regardless of type, size and product provided. Where any
requirement(s) of this International Standard cannot be applied due to the nature of an
organization and its product, this can be considered for exclusion.

Exclusion only allowed under clause 7 .

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ISO-9001 Broad Requirements

• Quality Policy to show intent and purpose of top management

• Setting up of objectives and targets to support policy
• Planning and implementation of activities to reach the objectives
• Documentation of the processes – mapping of main , & support processes
• Documentation includes
- Quality manual where broad aspects of the QMS is defined
- Procedures that are reqd to run , control and improve the processes
- Work instructions and test methods used by operating persons
- relevant records that show QMS is being followed
- relevant standards , drawings , specifications etc ……

Slides by : Anjan Ghosh

ISO-9001 Broad Requirements ( contd..)

• People should be competent and trained

• Proper infrastructure and work environment for quality should be provided
• Products should be designed based on customer requirements and validated that
it meets the requirements before the product is delivered to customer
• Measuring instruments to be calibrated against a standard reference
• All processes , including customer satisfaction , to be measured and analysed
• Periodic Internals Audits to be carried out of the QMS and reported to management
• Management to periodically review the QMS and take appropriate corrective
and preventive actions
• Continual improvement shall be a permanent objective and evidence demonstrated

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2 Types of Problems

Improvement Problem
Defreeze Freeze

PDCA Control Problem

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3 Types of Solutions to Problems

• Correction - Action to eliminate a detected non-conformity.

• Corrective Action - Action to eliminate the cause of a detected


• Preventive Action - Action to eliminate the cause of a potential


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Types of Data


Qualitative (Tall, Fair…) Quantitative

Variable Attribute (ok, not ok ;


Discrete (2,3…..) Continuous (2.33,


• Primary Data - Collected for specific purpose directly from field of enquiries and
used by same person.

• Secondary Data - Compiled from some other source by persons who have not
collected the original data.

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Collecting Statistical

Whole Sample
• More time, costly. • Less time, less money.
• Large number of investigators.
• Trained investigators.
• Supervision difficult.
• Intensive data collection.
• Data in some cases doubtful.
• No sampling errors. • Better control, supervision.
• Not practically feasible always. • Practically feasible.
• More accurate if done properly. • Less accurate, more

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Measures of Central Tendency

Mean (Average): Sum divided by no. of observations.

Median : Value of middle-most item when

observations are arranged in order of


Mode : Value which occurs with maximum


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Measures Of Dispersion ( Spread )


Absolute Relative
Measures Measures

Range Quartile Mean Standard

Deviatio Deviatio Deviation
n n

Coefficient Coefficient Coefficient

of of Quartile of Mean
Variation Deviation Deviation

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Measures of Dispersion

• Range = Maximum - Minimum

• Quartile Deviation = Q3 – Q1

• Mean Deviation = 1/n xi – x

• Standard Deviation = 1/n (xi – x)

• Co-efficient = Standard Deviation X 100


The two most important with which we work are Range & Standard Deviation

Slides by : Anjan Ghosh

Tools / Techniques of Problem Solving
7 Quality Control (QC) Tools (OLD)

• Check sheet / Tally chart

• Pareto Chart
• Ishikawa Diagram / Fishbone diagram / Cause-Effect Diagram
• Histogram
• Scatter diagram
• Run chart
• Control chart

Slides by : Anjan Ghosh

Check Sheet (Tally Chart) example

For a factory making light bulbs – the breakup of type of defects for one week
Is there any pattern ?

Defect Type Mon Tue Wed Thu Fri Sat

Filament fused 8 9 8 7 6 5

Pole disconnection 6 16 28 5 17 22

Heat sealing of glass 5 3 6 2 3 4

Low wattage 28 27 25 28 33 28

Manual Soldering bad 48 37 11 10 10 11

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Pareto Chart

Vital few
approx 80%

Example :

% of Trivial many approx 20%


Type of Defect
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Cause And Effect Diagram Example

New joinees Material
Frequent change Too high
W.I. Not displayed dross Alloy not proper
of operator
Too thick
High Fe Content
absenteeism Cork spray
Does not follow P.I. Cooling fluid
Carelessness inconsistent

Recording of defects Dilute Shelf life over

not done High rejects at
Heater fused Grid casting
Thermo couples
Circulation of Fouling with
Pot temp. not working
cooling water pipe
low Maintenance not
done Ladle jerking
Set point Cutting blade
Cycle time
drifts blunt
lower Cam shaft worn out
Spraying not Running at
higher speed Life over Mould misaligned
Can too Low temp. Too much vibration
Heavy to hold No SPC Setting nuts loose
Heater fused

Method /

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Histogram Example
Histogram showing marks obtained by
Students in a class test





10-15 16-20 21-25 26-30 31-35 36-40 41-45

Class interval ( marks )

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Scatter Diagram

Interpreting the Data

Positive Correlation Possible Positive Correlation No Correlation

y y y

4.5 4.5 4.5

4.0 4.0 4.0

3.5 3.5 3.5

x x x
150 400 650 150 400 650 150 400 650

Possible Negative Correlation Negative Correlation

y y

4.5 4.5

4.0 4.0

3.5 3.5
x x
150 400 650 150 400 650

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Line Diagram (Run Chart)

Plotting Data

(y axis)


(x axis)
Time or sequence

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Ave. Weekly Participant Rating Wk
R X #


1.01 3.76 2
1.27 4.21 3
0.48 4.29 4
1.32 4.36 5
1.52 4.13 6
1.03 3.77 7
1.15 4.17 8
1.07 4.21 9
0.70 4.22 10
2.05 4.00 11
0.95 4.30 12
0.99 4.20 13
1.06 4.32 14
1.21 4.18 15
1.33 4.02 16
0.78 3.71 17
1.21 4.08 18
1.23 4.23 19
1.08 3.98 20
X & R Chart

1.64 4.46 21
1.20 3.96 22
0.98 3.63 23
0.91 4.48 24
1.19 4.30 25
1.03 4.29
Control Charts


Slides by : Anjan Ghosh

Tools / Techniques of Problem Solving
7 Quality Control (QC) Tools (NEW )

• Tree Diagram
• Relations Diagram
• Matrix Diagram
• Matrix Data Analysis Method
• Affinity Diagram
• Arrow Diagram
• Process Decision Program Chart

Slides by : Anjan Ghosh

Tree Diagram
( Used when numerical data is not structured or difficult to obtain . They are mostly subjective )

Technique used to achieve objective (target ) by systematically breaking down an effect into
its causes by asking "why" at each step ; so as to see a whole problem at a glance .

constraint Political
Less govt. instability
orders Economic
External slowdown Bad monsoon

Low sales Bad material

Bad product
quality Design flaw

factors High cost Low

Bad service High process

Slides by : Anjan Ghosh
Relations Diagram
Used when causes and effects are very much inter-related.

Spares not
Breakdown of available

mc/s Suppliers not
Material not paid

Unable to meet
target production
Planning faulty Funds crisis
Unable to clear

Despatches low Money not

Sales low

Slides by : Anjan Ghosh

Matrix Diagram
Used when relationships between elements are known and can be seen at one glance.

Characteristics Head Room Container & Alloy & Separator
Plate Design
Customer Lid Design Oxide Purity Quality

Long Life


Low Maintenance

Low Self Discharge

Legend: Vitally important Important Somewhat important

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Matrix Data Analysis Method
Used when subjective assessments are made as comparisons – eg interview

Positive Attitude

Mrs G Mr A
Mr B
Mr F +1 Mrs C


-5 -4 -3 -2 -1 +1 +2 +3 +4 +5
Mr H
-3 Mr D
Mr E

Slides by : Anjan Ghosh

Affinity Diagram
Used where no experience exists, causes are vague and unclear. Item of similar affinity
are grouped together.


Marketing Product Quality Product Cost Delivery/ Despatch

Requirements High failure High import Packing m/c

not clear rate content breakdowns

Positioning Design specs Productivity Mix not as

not proper below par low per demand

Inadequate Aesthetics High rejects Transporters

network poor & scrap not aligned

Ad-spend Dimensional Accessories

too small variation missing

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Arrow Diagram
Used when relations between the essential operations are shown as a network.
Useful for scheduling activities / planning.

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Process Decision Program Chart
Used when events are anticipated and planning is made towards a goal in different
directions to account for unexpected problems.


Slides by : Anjan Ghosh

Why-why Analysis :- ask repeated questions , at least 5

Conveyor belt stopped Driving Motor Replaced (Immediate Action)

Why did m/c stop motor stopped

Why did motor stop armature coil burnt

Why armature coil burnt high current in coil

Why high current in coil shaft bearing jammed

Why shaft bearing jammed no lubrication oil

Why no lubrication oil not part of preventive Maintenance

So Final action :-
Add lubricating point in Preventive Maintenance Schedule
Slides by : Anjan Ghosh
Control Charts

Recognising sources of variation.

Why use it?

To monitor , control and improve process performance over time by studying

variation and its source.

What does it do?

• Focuses attention on detecting and monitoring process variation overtime.

• Distinguishes special causes from common causes of variation.

• Serves as a tool for ongoing control of a process.

• Helps to improve a process by taking timely corrective/ preventive actions.

Slides by : Anjan Ghosh

Control Chart Steps

Step 1: Select the process to be monitored. ( take one parameter of the process
eg length , mass , temp …… )

Step 2: Determine the sampling method and plan. ( who , when , how …..)

Step 3: Collect data. ( eg. 5 consecutive samples at one time …..repeat…. repeat

Step 4: Determine the appropriate statistic (attribute or variable type data)

Step 5: Calculate the Mean and control limits. ( X(double bar) , UCL & LCL )

Step 6: Construct the control chart. ( Draw X(bar),UCL,LCL lines , plot points )

Step 7: Review the chart and take corrective/ preventive actions.

Slides by : Anjan Ghosh

Types of Control Chart

Variable Data: 1) X bar and R chart.

2) X bar and S chart.
where X bar is mean
R is range.
S is standard deviation.

Attribute Data: 1) c chart (number of defects, constant sample size).

2) u chart (number of defects, variable sample size).
3) p chart (fraction defective, variable sample size).
4) np chart (number defective, constant sample size)

where np is number of defectives.

n is sample size.

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Table of Constants

Sample size n X and R Chart

A2 D3 D4

2 1.880 0 3.267
3 1.023 0 2.574
4 0.729 0 2.282
5 0.577 0 2.114
6 0.483 0 2.004
7 0.419 0.076 1.924
8 0.373 0.136 1.864
9 0.337 0.184 1.816
10 0.308 0.223 1.777

Slides by : Anjan Ghosh

Frequency (nos.) Property of Normal Distribution

Normal Distribution Curve

Bell shaped Curve
Gaussian Curve

Parameter being
measured (length,
mass….) also
Mean Called the variable

µ or X(bar)

Mean+1σ (68.26%)
Mean+2σ (95.46%)

Mean+3σ (99.73%)

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Lower σ
A process can shift
No rejects
its mean or spread
Higher σ or both towards
, more LSL / USL
Rejects rejects
Higher the spread
Higher the rejects
Shift in mean
More the shift from Mean
Higher the rejects

Rejects Rejects So , Spread and

Shift has to be
LSL USL Controlled
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Process Capability

Target Value
Process Capability Ratio = Cp

= Specification width / Process Width

= ( USL – LSL ) / ( 6 x std deviation )

Cp does not take account of centering shift

USL To take care of centering shift Cpk is defined

LSL Process Mean

Process Capability Index = Cpk = (1- K) Cp

Where K = mod [ process mean – target value ] / half spec width

Cpk can never be higher than Cp . Only can be equal to Cp when K is zero , that is
When process is centered and process mean is on target value
Slides by : Anjan Ghosh
Alternate Formula

Cpk = minimum of [ X(bar) – LSL and USL –X(bar) ]

3 x std dev 3 x

This can be used for one-sided tolerences also , When either USL or LSL is given
Cp value for one –sided tolerences does not exist .

Numerical Example

USL = 12.8 LSL=8.4 , Target value = 10.6 , process mean 9.8 , S.D = 0.2. Find Cp & Cpk

Cp = (12.8 – 8.4) / 1.2 = 3.67 K = (10.6 –9.8) / 2.2 = 0.36

Cpk = ( 1 – K ) Cp = ( 1 – 0.36 ) x 3.67 = 2.35

Cpk is much lower than Cp because the process is shifted to the left of centre
Cpk can be negative if the process mean falls outside the tolerence limits
Slides by : Anjan Ghosh
6 Sigma : A Methodology to reduce rejection & variation

• The most important objective of any organisation would be to

maximise Customer Satisfaction thru
- high Quality of products and services
- least integral Cost
- on time Delivery

• In many cases these are not possible due to high rate of defects ,
scrap and waste in products and services due to deficiencies in
design , incapable or unstable processes , deviations in materials ,
weak measurement systems , etc .
• If the root causes can be detected and actions taken , the defects
can be brought down and ultimately eliminated .

• Instead of ad-hoc fire-fighting approaches , a structured methodology

would have much more probability of success .

Slides by : Anjan Ghosh

6 Sigma : A Methodology to reduce rejection & variation

• Variation is natural and random . But when variation becomes too

large and assignable causes creep in - defects occur . So defects
must be reduced by eliminating the assignable causes and limiting
the effects of the natural ( random ) causes .

• Over the past decades quality engineers have been trying different
tools and techniques to reduce variation .

• All these tools and techniques , fortified by more powerful ones ,

have been collected in a basket and given the name “ 6 Sigma “ .
It was invented by Motorola in the 1980’s .

• 3 Sigma process has 66807 PPM reject level in the long run ( Cpk = 1 )

6 Sigma process has 3.4 PPM reject level in the long run ( Cpk = 2 )

Slides by : Anjan Ghosh

The Six Sigma Project Methodology – DMAIC Cycle

Six Sigma Improvements are done through 5 – Stage Projects.

Define - Determine what needs to improve , select parameters ,
set targets, set up teams , plan actions
Measure - Current state against desired state. Gather data .
Analyse - From data find root causes of the gaps by using various
statistical techniques .
Improve - Select and implement best solutions by using various
tools / techniques
Control- - Long-term sustainability and monitoring mechanisms.

Slides by : Anjan Ghosh

Failure Mode and Effect Analysis (FMEA )

1. early identification & elimination of potential product / process failure modes
2. Improve product / process quality & reliability
3. Document risks and actions taken to reduce the risk before product fails
4. Minimise changes to products due to failures which will add costs

 WHEN – as early as possible during design phase

 WHO - Done by a Cross functional team of people from R&D , Materials Mgt.
Production , Quality Assurance and Maintenance

 HOW –
1. Brainstorming, assessment, testing, learning, analysis , by using standard tables etc.
2. Filing up standard format

Slides by : Anjan Ghosh

Failure Mode and Effect Analysis ( FMEA )
Studies the risk of potential failure considering 3 factors on a scale of 1-10

• chance of occurrence ( what is the possibility that the failure can occur )
- more the possibility of failure higher is the number scale

• severity of the failure ( what will be the effect if the failure happens )
- more the seriousness of the failure higher is the number scale

• detectability ( can the failure be detected early or before it occurs )

- higher the chance of detection lower is the number scale

Risk Priority Number = occurrence X severity X detectability ( 1-1000)

Standard international formats are available and used .

Cut off score ( say 125 ) is set by the organisation depending on product type
and Quality / Business strategy and any score above that requires redesign
Of product or process . Cut off score is gradually lowered .

Slides by : Anjan Ghosh

Poka-Yoke – Mistake Proofing

Prevention is better than cure

The earlier the better

85 % of failures arise due to wrong / insufficient design

of product or manufacturing process

Slides by : Anjan Ghosh

Ten Types of Human Mistakes

• Forgetfulness / Inattention
• Misunderstanding
• Wrong identification
• Lack of experience / training
• Willful (ignoring rules or procedure)
• Inadvertent or sloppiness
• Slow reaction time
• Lack of standardization
• Surprise (unexpected machine operation, etc.)
• Intentional (sabotage)

Slides by : Anjan Ghosh

Poka Yoke Concepts

Anybody can and should practice poka yoke in the workplace. Poke
yoke does not necessarily require any complicated science or
engineering - sometimes it just needs common sense and the
appropriate poka yoke device – and the will to do zero defects .

Poka yoke devices should have the following characteristics:

1) useable by all ;
2) simple to install;
3) does not require continuous attention from person (ideally, it
should work even if the person is not aware of it);
4) low-cost;
5) provides instantaneous feedback, prevention, or correction.

Slides by : Anjan Ghosh

Examples of Poka Yoke

1) A jig that prevents a part from being misoriented during assembly

2) Non-symmetrical screw hole locations that would prevent a plate

from being screwed down incorrectly

3) Electrical plugs that can only be inserted into the correct outlets

4) Notches and assymetric pin configuration in computer connectors

5) A flip-type cover over a button that will prevent the button from
being accidentally pressed

6) Sounds alarm and does not start car if doors are not locked properly

7) A punching tool works only when operator presses two different

switches with two hands and holds them down

8) A wrapping machine won’t work if serial number is missing

Slides by : Anjan Ghosh


Keeping your workplace clean & well organised

Organized and tidy workplace reduces errors / rejects , improves productivity

• A place for everything, and everything in its place

• To develop a sense of standardized operations

• 5-S is basic to all processes and is a pre-requisite for any

management system including , QMS , EMS , Health & safety

Slides by : Anjan Ghosh

Housekeeping & Workplace Organization

• Housekeeping
While many people may consider housekeeping an unappealing
topic, we should realize that housekeeping is closely tied to many
important aspects of running a world-class organisation. For
example, there is a strong linkage between the level of
housekeeping and the level of scrap, machine breakdowns,
accidents, absenteeism, inventory and improvement suggestions.

If we understand this linkage well, rather than taking a look at

each issue independently, each of us should better understand
what actions are required to increase improvement activities.

Housekeeping is everybody’s job.

Slides by : Anjan Ghosh

Housekeeping & Workplace Organization

• Workplace Organization
Housekeeping is tied closely to better workplace organization.
The value of clean floors and machines is not simply a pleasing
appearance. Clean surfaces expose problems such as oil leaks
and cracks so that corrective action can be taken as early as

Similarly, in organizing dies or tools, it does not make much

sense to nicely orient the dies or tools in the rack if the most
frequently used dies are far away from the machine.

Housekeeping and workplace organization have a definite

economic impact.

Slides by : Anjan Ghosh

5-S & Housekeeping

Some Examples of Bad Housekeeping

• Materials lying on floor. • Unclean toilets.

• Windows & emergency exits blocked . • Wrong tool in tool box.

• Unmarked shelves/ racks. • Dangling wires.

• Obsolete documents in current files. • Water stagnating in drains.

• Oil dripping from leaks. • Clock slow/ fast.

• Material without identification. • Rejected material in ok area.

• Notice board not updated. • No marked areas for office


Slides by : Anjan Ghosh

Consequences of poor Housekeeping

• Large amount of defective • Waste of untraceable (lost)

products material

• Large number of m/c • Lost time in looking for tools

• Concealed problem area’s
• Inefficient routing of material
flow • Unaccounted work in progress
and spare parts
• High inventory levels
• Safety & health problems
• Low morale & motivation
• Shabby & dirty looks
• High level of absenteeism
• Low confidence of customers &
• Low number of improvement
suggestions visitors

• High obsolescence •

Slides by : Anjan Ghosh









Slides by : Anjan Ghosh

The 5 Pillars of Housekeeping

Seiri (Structurise) - Take out unnecessary items and dispose them away. Keep only

Seiton (Systematise) - Arrange necessary items in a proper order so that they can be
easily located and picked up for use.

Seiso (Sanitise ) - Clean the workplace thoroughly using proper tools & equipment.

Seiketsu (Standardise) - Maintain a high standard of housekeeping at all times.

Check & audit periodically.

Shitsuke (Self-Discipline) - Train and motivate people to follow good housekeeping

practices & discipline.

Slides by : Anjan Ghosh

What can
What can IIgain

• 5-S makes one’s workplace more pleasant

• 5-S helps in work efficiency
• 5-S and safety go hand-in-hand
• 5-S leads to better quality & higher productivity
• 5-S leads to waste reduction & hence lower costs
• 5-S leads to lower inventories & on-time deliveries
• 5-S leads to lower machine downtimes

Slides by : Anjan Ghosh

Lean Manufacturing

Lean is about doing more with less: such as less time, inventory, space,
labor, and money. "Lean manufacturing", aims at eliminating waste,
simplifying procedures and speeding up production.

Also known as Toyota Production System (TPS) as its principles were first
proposed and put to use in Toyota by Taiichi Ohno during the 1970’s .
This system, more than any other aspect of the company, is responsible for
having made Toyota the respected company it is today. Toyota has long
been recognized as a leader in the automotive manufacturing and production

By eliminating waste you can do more with less:

Less capital equipment
Less floor space
Less operator effort
Less direct labor
Less indirect labor
Less inventory
Less lead time

Slides by : Anjan Ghosh

What is waste ? Some definitions

“ anything other than the minimum amount of equipment,

materials, parts, space and worker’s time, which are absolutely
essential to add value to the product ”
~ ~ ~ Fujo Cho (Toyota)
“ If it does not add value - it is a waste”
~ ~ ~ Henry Ford

“ Value added are the things or activities that a customer is willing

to pay for - rest is waste ”
~ ~ ~ Kiyoshi Suzaki
Product cost

Added value Added cost

activities activities

Customer not willing to pay

Slides by : Anjan Ghosh

Lean identifies seven types of waste ( Muda in Japanese ) :

1. Over-Production - A product that cannot be sold or has to be dumped at a reduced

price is wasteful. Also producing product before the customer needs it requires the part
to be stored and ties up money in inventory.

2. Inventory - Excess Inventory ties up a great deal of cash, which is wasteful.

Stockpiling inventory between processes is wasteful.

3. Transportation - Unnecessarily moving a part during the production process is

wasteful. It can also cause damage to the part, which creates wasteful rework.

4. Correction - Re-work/ repair of defects is a large source of waste. Additionally,

sorting and inspecting parts is wasteful ..

5. Motion - Unnecessary or awkward operator motions put undue stress on the body
and cause waste.

6. Processing - Unclear customer requirements cause the manufacturer to add

unnecessary processes, which add cost to the product.

7. Waiting time– People and machines remaining idle between operations is wasteful.

Slides by : Anjan Ghosh

Total Productive Maintenance ( TPM )
Breakdown of machines & equipment has to be avoided as it decreases productivity ,
Increases cost and may affect quality . Therefore maintenance is vital .
Breakdown Maintenance (BM) means rectifying after the breakdown has happened .
In order to keep machines healthy and fit for production Preventive Maintenance (PM) also
known as Time Based Maintenance (TBM) has to be done as per a planned schedule .
In some cases even Preventive Maintenance is not enough. We need to predict failures
by measuring the parameters of the machine like vibration , temperature , corrosion etc .
If the state of the health after the measurement is not found to be OK then maintenance
or change of parts is done . This is called Condition Based Maintenance ( CBM)

Small everyday maintenance can be done by the operator of the machine like lubricating ,
cleaning , tightening , inspecting etc . The change of parts or CBM or TBM or BM can be
done by specialist maintenance people.

By doing proper maintenance the productivity and life of machines can be increased with
Improvement in quality and decrease in cost .

A lot of training and involvement of people are reqd. to ensure that proper maintenance is
done . Proper records of the maintenance and history cards of the machines has to be
kept . For each breakdown and failure analysis needs to be done to find the root cause of
the failure . These learnings will help in designing of better machines .
This whole methodology is called as TPM because it involves many people & depts.

Slides by : Anjan Ghosh

Benchmarking – A Process of Improvement to Reach the Best

• Comparison with past results / targets in the same function/ department.

• Comparison with other functions/ depts within the organisation at same location.

• Inter location (sister plants/offices) of same organisation.

• Comparison with other organisations in same industry - local, global.

• Comparison with other industries – local, global.

Benchmarking is not only of results but on the processes. Often benchmarking

would require intensive studies and redesigning of products and processes.

Benchmarking is not spying or blindly coping others . Understanding & learning reqd.
In many cases there is collaboration between organisations for mutual benefit .

Benchmarking is a dynamic exercise and not one-time , because by the time the
Improvements are done the best being benchmarked would have improved further.

Slides by : Anjan Ghosh

Of Quality Quality Cost

Cost of control Cost of lack of control

Prevention Cost Appraisal cost Internal Failure Cost

External Failure
• Cost associated • Costs associated • Costs associated
with designing , with defective •Costs generated by
with measuring,
implementing, evaluating or products & defective products
maintaining and inspecting products components being sent to
improving the or components to that fail to meet customer s
products, services assure conformance quality requirements
and quality system. with quality standards and cause
It includes and performance manufacturing
auditing the losses.
quality system

Slides by : Anjan Ghosh

• cost of organization for R & D
• space occupied by R & D offices / labs
• cost of prototype testing equipment / maintenance
• IT Infrastructure
• Testing changes for accreditation / certifications
• Training & development
• Periodicals / Journals / Knowledge management
• Changes / Upgradation
• Market Research
• Standardization / Specification

• Cost of organization of inspectors

Appraisal • Cost of equipment & instruments for testing
Cost • Material Handling
• Documentation / records
• Disposal of rejects
• Rework / regrading of incoming materials
• Space for rejects / pending materials
• Testing charges from outside agencies

Slides by : Anjan Ghosh
• Cost of rework / rejects
Internal failure • Spillage/ evaporation / breakage
cost • Obsolescence / unusable materials
• Machine downtime
• Changeovers
• Overtime
• Absenteeism loss
• Materials handling
• Waste of space / energy
• Inventory / stocks / WIP

• warranty
External Failure • travel & other expenses of service personnel
cost • consumer forums / legal cases
• cost of service centres
• equipment & instruments for testing
• transportation of defective replacements
• Documentation / records
• Training of service people
• Cost of analysis of rejects

Slides by : Anjan Ghosh

Total Cost
Cost per good unit of product

Internal Prevention
+ +
External Least cost Appraisal

100 % 0%


Slides by : Anjan Ghosh

Monitoring Organisation Performance
The Business Balanced Score Card

Leading indicators (enablers, drivers) Lagging indicators (results, outcomes)

Creates and predicts future Postmortem of earlier

results - hence proactive actions - hence reactive

Learning Process Customer Financial

& Innovation Management satisfaction Results

Learning / Processes Customers Financials

Competencies example of P.I :- example of P.I :- example of P.I :-
example of P.I :- • Asset utilisation • Customer Satisfaction • Sales T.O.
• % training hours Index
• % Scrap • PBT / IFO
• No of SGA teams • Warranty returns
• CP, Cpk • Cash Flow
• Employee Motivation • Time to resolve
• Cycle Time • Stock Turns
Survey Score • Delivery reliability
• Time to market • ROCE
• No of new customers
• Competency level
• Benchmark projects Slides by : Anjan Ghosh
The Need for BBSC

• The BBSC enables companies to track financial results, while

simultaneously monitoring progress in building the capabilities
and acquiring the intangible assets they need for future growth.

• The name reflects the balance provided between short-and

long-term objectives between financial and non-financial
measures, between lagging and leading indicators, and between
external and internal performance perspectives.

Slides by : Anjan Ghosh

Involvement of People

The full potential of people needs to be harnessed and people motivated to contribute towards
improvements in a voluntary way . The aim would be to make jobs , enjoyable and satisfying .
Management needs to provide training and development and provide support for ongoing
improvements both for individuals and teams . Also give due rewards & recognition to keep
motivation high . In most cases the rewards are non-monetary .

Suggestion Box : Employees can give suggestions ( dropped in a box ) . Which are
evaluated by a committee and if found suitable are implemented .

Kaizens : Small improvements in machines , processes , materials etc by individuals or


Teams go by different names :

Quality Circles ( QC’s) – where 5-8 non-mgt employees work under guidance of a facilitator
(mgt ) and take up improvement projects in their dept or area of work . QC’s solve one
Problem after another with same members and may be working as a team for several years

Small Group Activities (SGA’s) : Work like QC’s but members can be from other depts also .
After problem is solved SGA is disbanded . May include mgt staff

Cross Functional Teams (CFT’s) , Self Directed Teams (SDT’s ) , Task Forces are other types
of improvement teams
Slides by : Anjan Ghosh

Culture & environment (factors enabling the achievement)

Strategic plan ( what to achieve ? when to achieve? )

Thru Training
Success Success
Process Result
Ability of personnel Standardi-
( how to
( how to
what has
Motivation of Opportunity to been
personnel personnel achieved? )

Thru involvement Thru empowerment

Resources ( who will achieve? what is reqd. for achievement?)

Culture & environment (factors enabling the achievement)

Slides by : Anjan Ghosh

The Juran Trilogy : (The 3 Stages of Managing Quality)

Quality Planning Quality Control Quality Improvement

• Identify needs of customers. • Measure actual performance • Identify need for

(KPI’s). improvement.
• Establish goals.
• Compare against targets. • Undertake important
• Develop products. projects (Kaizens ,Teams).
• Act on the difference.
• Develop processes to deliver • Provide resources &
product. support.

• Implement changes.

• Hold on to the gains


Slides by : Anjan Ghosh

Activity Allocation : Time & Effort Spent

iti es Top Mgt

Plan i t ies Middle Mgt
ct iv e
t a e nc
en t en
m ai
ove M Supervisors
m pr l &
I tro
Co Workforce

Workforce spend most time on control , then improvement , very low planning
Supervisors spend equals amounts on control and improvement , less planning
Middle mgt spend equal amounts of time on control , improvement and planning
Top mgt spend most time on planning , some improvement , but mostly planning

Slides by : Anjan Ghosh

International Business Excellence Models

• Deming Model - Japan

• Malcolm Baldridge Model – USA
• European Foundation for Quality Management ( EFQM ) Model

All other models are derivatives of these three . These models are
Much higher than ISO 9001 or ISO 14001 or OHSAS 18001
And looks at Ladership , Strategy , People Involvement , Products ,
Processes , Customer Satisfaction , Social Responsibility ,
Financial and non-Financial Results over a period of at least 3 years

The most popular Business Excellence Model in India is the

CII-EXIM Bank Award that is based exactly on the EFQM Model. This
Is run by the Confederation of Indian Industries (CII)
European Foundation for Quality Management (EFQM)
Business Excellence Model
( 9 Criteria )


how results are being achieved what the orgn. has achieved

People People Result

10 % 10%

Leadership Policy & Strategy Processes Customer Result Results
10% 10% 10% 15% 15%

Partnerships Society Result

10% 10%


Slides by : Anjan Ghosh