QCDM CULTURE DESIGN: A NEW PARADIGM IN MANUFACTURING SECTOR TO MEET THE CUSTOMER SATISFACTION

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1 International Journal of Mechanical Engineering and Technology (IJMET) Volume 9, Issue 12, December 2018, pp , Article ID: IJMET_09_12_013 Available online at ISSN Print: and ISSN Online: IAEME Publication Scopus Indexed QCDM CULTURE DESIGN: A NEW PARADIGM IN MANUFACTURING SECTOR TO MEET THE CUSTOMER SATISFACTION Dr. T.Varun Kumar Department of Mechanical Engineering, P.A. College of Engg and Tech, Pollachi I.Sayed Mohammed Department of Electronics and Communication Engineering, PSNA College of Engineering and Technology, Dindigul K.Palanivel Rajan Department of Electronics and Communication Engineering, PSNA College of Engineering and Technology, Dindigul D.Arun Prasad Department of Electrical and Electronics Engineering, PSNA College of Engineering and Technology, Dindigul K.Kaleeswaran Department of Electrical and Electronics Engineering, PSNA College of Engineering and Technology, Dindigul ABSTRACT Quality is the key concern in all the manufacturing firms. Every organization is thriving to attain their best quality level in terms of process and product. Manufacturing firms focus on precision and zero error module for developing the principles of standards. The large scale industries are highly interested and equipped to spend more resources and cost to attain quality.in most of the Small and Medium sized Enterprises (SMEs), the quality cost is almost nearing equivalence to working capital in their daily agenda. Many owners-managers of SMEs are not interested to invest more costs and resources in quality practices. In order to that, the insufficiency of time may not permit to concentrate on the regular quality programs. To serve for this need, a new cost effective tool is designed to account Quality, Cost, Delivery and Morale QCDM methodology. QCDM methodology is four arbitrate approaches on structuring quality standards for satisfying internal and external customers in relation with lesser cost with good quality, proper time of delivery by suiting the morale of the employees. In this paper presents a QCDM approach, in order to improve the operations management from the strategic level to the tactical level in SMEs editor@iaeme.com

2 Dr. T.Varun Kumar, I.Sayed Mohammed, K.Palanivel Rajan, D.Arun Prasad and K.Kaleeswaran Key words: Small and Medium size Enterprises (SMEs), Quality Cost Delivery Morale (QCDM), Customer Satisfaction, Detect Communicate Analyze Validate (DCAV), Agility. Cite this Article: Dr. T.Varun Kumar, I.Sayed Mohammed, K.Palanivel Rajan, D.Arun Prasad and K.Kaleeswaran, Qcdm Culture Design: a New Paradigm in Manufacturing Sector to Meet the Customer Satisfaction, International Journal of Mechanical Engineering and Technology, 9(12), 2018, pp INTRODUCTION The quality of driver in industry market is one of the constant competitions [6]. To sustain in such an environment, manufacturing firms need to adopt an efficient technique that can assess and take a diagnostic approach to satisfy the customer needs and expectations [5]. Most firms are nowadays, look on precision and zero error from industrial quality, and developed into the principles of Six Sigma. Compilations of these principles and achieve these standards, the organistion should manage their complex relationship between Quality, Cost, Delivery and Morale (QCDM) tools. The primary focus is quality and the focus of customer satisfaction, which delivers the value of an approach useful to define that quality, is the extended value stream in manufacturing industries [20]. In the current manufacturing, environmental scenario, many organizations are proposed to implement the agile manufacturing concepts [8]. Goldman et al., [1993] suggests that in order to implement this agile manufacturing (AM), numerous conceptual models are proposed to assist managers in enhancing agility of an organization [9]. Gunasekaran [1998], proposed the first integrated framework to achieve agility and it illustrates the major capabilities of AM, such as organizational change, employee involvement and time management [11]. It should be supported and integrated with the agile enablers to develop and spontaneously acquiring a new type of manufacturing paradigm. Goldman et al. [1995], defined that AM organizations are capable of operating profitability in a competitive environment with unpredictably changing customer demands [10]. Yusuf et al., [2001] suggests that the agility index is a term used to measure the strategic level of an organization [24]. While the other methods, Yang and Li [2002], devised the agility evaluation index system for a mass customization of product manufacturing and these methods are easy to adopt, if kind attention are focussed on the key issues [23]. Zhang et al., [2006], defines that AM system differ from flexible manufacturing system (FMS), that AM system has the capability to adopt new technologies and cost effective methodology, within a predicted scope of unplanned product varieties in future manufacturing [25]. Halabi et. al., [2010], argues that agility had been yet ill- defined and more concentrated work needed to refine the implementation concept in an organization [12]. After an exhaustive literature survey made from the database includes, Springer, Taylor & Francis, emerald and science direct about the agile manufacturing framework and the implementation of agile in SMEs with designing cost effective tool. Literature results, shows most of survive in the today s competitive environment, most organizations looks for their substantial cost reductions [2]. Therefore, management puts intense effort to deciding what their businesses are by identifying non-value added activities, excessive wastes and costs. To eliminating these barriers, automatically there is continuous improvement in Firm (CIF) sould obtain and achieve an agile environment. Because of lack of financial resource [1], most of the SMEs are still lagging in their quality problems and the major outcome of this research was the development of new designed tool named Quality Cost Delivery Morale (QCDM) that is cost effective and could be easily practiced by everyone. Continous, an implementation of the study was carried out to investigate editor@iaeme.com

3 Qcdm Culture Design: a New Paradigm in Manufacturing Sector to Meet the Customer Satisfaction the practical feasibility of the new designed tool [3]. To practicing this implementation, the study revealed that QCDM could be smoothly implemented in SMEs and also in traditional manufacturing factories [7]. Whatever, this successful implementation will result in achieving higher quality of improvement in agility characteristics [4]. This research study, reports the organizational excellence of the industries with the implementation study of QCDM was conducted by using a parameter known as Agility index. This agility index is used to determine the level of agility in manufacturing firms [22]. First, the literature survey is conducted to measure the status of current agility position before QCDM implementation and subsequently, the efforts are made to utilize the new paradigm for measuring the industrial excellence before and after the implementation of QCDM and results are validated to predict the best quality performance. Here the organizational agility index is measured before and after the implementation of QCDM by using twenty criteria agility measurement model. Studies were a review paper or conceptual article and yet no researchers have experimentally proven the implementation and practicing of agility in SMEs with a cost effective tool [14]. This research work mainly focuses on implementing the agile manufacturing system in the SMEs. Iyer et al., [2004], describes closely to this research work by modelling a framework and simulation that explores the financial value of agility in a manufacturing organization [14]. Due to the majority of unskilled workers/practitioner and lack of financial resources in SMEs [16], this research work mainly focuses on contributing a new designed conceptual cost effective tool and dynamic methodologies to reduce the rework and improving the quality of their products [15]. 2. QCDM CULTURE DESIGN In today s currently changing environment, every manufacturing sector is focused to improve their standards and to attain a world class quality for their organizational survival, they should different from others and the capabilities are used to achieve and maintain the agility [17]. The agility capabilities are quality, cost, delivery and morale is framed as QCDM. The agile capabilities are proposed in the below figure 1, due to the needs, objection and mission of the statement. There, the agility capability of quality is considered as ability to prevent defects in products/services and respond quickly to them, to attain their product standards by providing services Cost is defined as to produce the product at the correct time and price with cost effective and to achieve a profit margin of the company. Despatch is an ability to deliver the right product/services with the right time and at the right quantity. The morale is the ability carried out by the empowered team to complete the task within the stipulated time, where job commitment and involvement by the individual employees must be changed, by rewards/ recognition system is followed to motivate their new innovative ideas and it leads to the agile approach in the manufacturing sector to attain the customer satisfaction [18]. The below figure 1 shows the world class effectual framework for attain the customer satisfaction editor@iaeme.com

4 Dr. T.Varun Kumar, I.Sayed Mohammed, K.Palanivel Rajan, D.Arun Prasad and K.Kaleeswaran 3. INTERPRETATION OF QCDM METHODOLOGY The Quality is the attribute desired by the user or buyer that renders the product by its primary value and usefulness to him. To provide proper tolerances, specifications, features, and varieties are examples of quality measures. The Cost and the second dimensions are refers to the cost of producing and delivering the products to the buyer; it has an impact for another cost: the cost to the buyer or the "price" he pays for the good. The Cost affects the marketability of the product and the profitability of the manufacturer. Delivery involves bringing the finished products or services to the customer at the correct time, at the right quantity or amount, at the proper place. The morale is the job commitment and involvement of the individual employees in the working place, which could meet the required target. To run a production firm or an organization in today s competitive business environment is like an Art of sailing a ship. Were, entire crew of a ship would involve in turning the ship quickly to make to changing conditions and environment. Likewise, most section in the manufacturing sector plays a major vital role; if any one goes wrong then it would lead to operational failures. Similarly, were four dimensions are framed for the service of QCDM is major tools, and they are like the four legs of a stool or pillars of the organization on which the customer would meet for their response. From the figure 2, shows a problem occurs in at least one of them, then where will be no product improvement and automatically there will be no consumer. One cannot be sacrificed for the sake of the other three dimensions. The consumer wants this four dimensional product - not three, surely not two or one. Figure 2 Pillars of an organization to meet customer satisfaction The customer wants a good quality product at the good cost, at the proper time and maintains the moral. All the area are equally plays a significant role in the manufacturing firm. The quality, reasonably-priced product which is delivered delay is for practical purposes useless to the editor@iaeme.com

5 Qcdm Culture Design: a New Paradigm in Manufacturing Sector to Meet the Customer Satisfaction customer and unsalable. The quality product which is promptly despatched, but is outrageously priced due to its manufacturing cost is similarly outrageous cannot be sold. The less competitive cost and on time delivery of any merchandise cannot offset its lack of good quality and change the decision of the customer to reject that. To stay in their business, it is mandatory for any manufacturing organization to sustain the QCDM balance and harmony of its final result, be it a manufactured product or service. The table 1 below give the example of an integrated QCDM business plan. Table: 1An Integrated QCDM Business Plan S.No Categories Performance Measures 1 Quality Customer Satisfaction index, Number of defects, Failures, customer complaints etc., 2 Cost 3 Delivery 4 Morale Labor cost, Market Shares, Production Cost, sales and margin. Number of on-time deliveries and development cycle. Employee satisfaction, number of appropriately educated employees, stakeholder satisfaction, and amount of training 4. DESIGNING A COST EFFECTIVE TOOL FOR PROBLEM IDENTIFICATION Small scale industry has a basic culture that the labors and all the workers are uneducated and therefore, the system which they should follow must be of low level, but it should be of more effect [21]. Such a new and effective system which is followed in SME is cost of quality delivery and morale (QCDM) technique which is given in the figure 3. The system is the basic way of following the standard rules in SME. It is the way of represent the faults that happened during the day to day life of SME. This shows the person who causes the fault and the reason for the fault is analyzed and solved. By practicing this system regularly, it will be reduce the number accidents in the industry and it will never repeat the same error to happen again. It provides drastic improvements in the production sectors. These factor plays a vital role and the number of accidents occurred is separated in each criteria and the issues are entered in the fields such as QCDM and plot the problems. The QCDM factor is one of the basic schematic representation of the number of accidents occurs at the production sector and this issue are plotted at the single line problems of the categories which it comes. By calculating the number of accidents for the week, the value of average will be marked in the speedometer chart. The average value is taken for the whole week and then, it is plotted on the respected month of the column separately. Alternately, the assignment for the next week process is carried out and the issues are not. This is the continuous monitoring process and chart clearly proves the effective improvement in the quality and production and the cause of the number of accidents is reduced. At the conclusion of this research work, the QCDM tool shows an overview of the number of accidents or causes occurred in the firms and easily identified the root cause of the problem. It is the simplest method of understanding the causes of errors or accidents made in the production editor@iaeme.com

6 Dr. T.Varun Kumar, I.Sayed Mohammed, K.Palanivel Rajan, D.Arun Prasad and K.Kaleeswaran sector and could be effectively handled by the unskilled labors. Also, this QCDM tool is the cost effective and user friendly tool, where if the system is continuously practiced at the firms it automatically shows the drastic improvement in the quality and customer satisfaction [19]. Figure.3 Designing a cost effective tool for problem Identification (QCDM) 5. QCDM VACCINE AND FORECASTING After all the issues were identified in the production stage, by giving training to the employees and practicing this tool automatically the reduction of rework is obtained. These all could be possible, if the management is willing to implement the newly designed cost effective concepts and moreover the main factors is employees must come forward to practice. During this research, the particular chosen SMEs, workers/ Practitioners have given much cooperation and by giving them training how to use this tool. Subsequently, from that period they started to practice this tool by their routine activities which is shown in the figure 4 and by giving training to the employees. Figure. 4 Employees practicing the tool during the research and training given to the employees 6. DESIGNING A COST EFFECTIVE TOOL FOR PROBLEM SOLVING Dcav is the problem rectification tool, used to solve the problems that are identified in the qcdm single line issues. Dcav means (detect, communicate, analysis, validate), where this tool is simply designed instead of dmaic approach. Compared to dmaic process methodology, this newly designed dcav method is highly recommended to the smes sector, due to that majority of the working employees are laymen and unskilled. In order, to train and practice them an effective editor@iaeme.com

7 Qcdm Culture Design: a New Paradigm in Manufacturing Sector to Meet the Customer Satisfaction method of the newly designed dcav tool is initiated. This approach is very effective and the problems are rectified easily. In this sheet, the name of the company, date and the problems identified are all were tabulated in the table as shown in figure 5. Figure.5 Designing a cost effective tool for problem solving (DCAV) After the problem are detected, this would be communicated to the supervisor or quality engineer about the issues and the DCAV sheet with detailed report is sent to the communication section with what is the problem, whom who have communicated and when. This is essential, because the issues are to be rectified within the short period of time. With the detailed problem statement, the DCAV sheet is processed to analysis section and this part which comprises of 5 why? Analysis denotes the different detailed analysis is made on a single product to find out the exact cause of the problem and therefore after finding the causes, ICA (Immediate Corrective Action) is made. Finally, this is validated and PCA (Permanent Corrective Action) is done with the problem and who has validated the issues are all enrolled, and any repetitive issues are occurring in the production, these sheet would be used for the future references. This DCAV approach is effectively playing a vital role in the reduction of quality and other related issues. 7. IMPLICATIONS RESULTS OF QCDM It is a specially designed system approach for SMEs, which is a cost effective intervention and certainly assists to higher productivity and better quality. By systematic and routine practices, this requires continuous efforts of monitoring and data management [24]. To modify this methodology into a manufacturing culture, for systematic training to employees is required during the initial period. It is keenly followed and proved that the remarkable betterment is drawn out in the respective pump industry in the areas of quality planning, quality improvement, the quality control and productivity acceleration by means of an enhanced tool called QCDM. 8. CONCLUSIONS The results clearly provided that the impact on QCDM practice in the SMEs is influenced by the size of the firm [22]. This firmly reduces the documentation work and complex administrative practices, it is a modern approach for the real time industry nature [23]. Significantly, this plays a step ahead in the manufacturing arena on effective execution of quality. The training on QCDM methodology and its routine practice would not be a tedious process, for the organization structure of SMEs is flat, simple and centralized [25]. The small revisions of QCDM methodology can be carried out for small and medium scale enterprises by decentralizing QCDM frame to all the departments, plants, subsidiaries and Small Business Units (SBUs). The Quality level programs such as Total productive maintenance (TPM) [26], Total Quality Management (Tqm)[27], Six Sigma, ISO, lean and agile implementation has been still adhered as the subsequent policies of operations, it requires additional efforts and control plans. But, in case of QCDM methodology, editor@iaeme.com

8 Dr. T.Varun Kumar, I.Sayed Mohammed, K.Palanivel Rajan, D.Arun Prasad and K.Kaleeswaran using the individual commitment of employees and less strain of control, quality can be emerged as a culture. At the end, it is affirmed that the formal adoption of QCDM methodology increases the enhanced rate of quality in the shortest time, increased performance in all the stages of manufacturing. It is more essential for the small scale industries it is more cost effective. In spite of being in this state, the SMEs lack interest, awareness and training to adapt certain quality development practices in their working environment [28]. This research serves as a tool to recover the employee s awareness lagging of SMEs towards quality. If more training and awareness are made between the employees towards QCDM methodology, they would come forward to carry this proven practice intending to friendly agile environment. 9. FUTURE IMPLICATIONS This study has been carried out in a selected Indian SMEs, and the conceptual structure is relied to the pump industry, which is an initial constraint of this QCDM Methodology. The multiple factor assessments on all relevant fields in association with the totality of standardizing on a product, the incurred cost of manufacturing, timely delivery of sub-assemblies and finished products in the respective sectors would lead to analyze in detail with the QCDM methodology. As many of the organizations, have focused on the documentation work for the issues occurred and the report of validation for those issues, similar to ISO documentation system, these tedious manual documentations works is reduced by this methodology, and full annual report could be viewed in the single sheet. In future, this can be further optimized using manufacturing planning software as a parallel activity during production, which may increase the quality of precision, more productivity, higher revenue and agile environment in the production sectors effectively. REFERENCES [1] Abdel K. Halabi, Rowena Barrett, Robyn Dyt, (2010) "Understanding financial information used to assess small firm performance: An Australian qualitative study", Qualitative Research in Accounting & Management, Vol. 7 Iss: 2, pp [2] Anoop Kumar G, Devadasan SR, Shalij PR, Vinodh S, Rajanayagam D, Edinbarough I (2010) Implementation of agile supply chain model in an electronic switches manufacturing company. Int J Serv Oper Manag 6(4): [3] Aravind Raj S, Sudheer A, Vinodh S, Anand G (2013) A mathematical model to evaluate the role of agility enablers and criteria in a manufacturing environment. Int J Prod Res 51 (19): [4] Bernice Kotey, Alison Sheridan, (2004) "Changing HRM practices with firm growth", Journal of Small Business and Enterprise Development, Vol. 11 Iss: 4, pp [5] Bottani E (2010) Profile and enablers of agile companies: an empirical investigation. Int J Prod Econ 125 (2): [6] Burgess T.F (1994) "Making the Leap to Agility: Defining and Achieving Agile Manufacturing through Business Process Redesign and Business Network Redesign", International Journal of Operations & Production Management, Vol. 14 Iss: 11, pp [7] Dubey R, Guneskaran A (2015) Agile Manufacturing: framework and its empirical validation. Int J Adv Manuf Technol 76(9 12): [8] Eyaa, S. and Ntayi, J. (2010), Procurement practices and supply chain performance of SMEs in Kampala, Asian Journal of Business Management, Vol. 2 No. 4, pp [9] Goldman SL, Nagel RN (1993) Management, technology and agility: the emergence of a new era in manufacturing. Int J Technol Manag 8: [10] [10]Goldman, S., Nagel, R. and Preiss, K. (1995), Agile Competitors and Virtual [11] Organizations, van Nostrand Reinhold, New York, NY., Gunasekaran A (1998) Agile manufacturing: enablers and an implementation framework. Int J Prod Res 36(5): editor@iaeme.com

9 Qcdm Culture Design: a New Paradigm in Manufacturing Sector to Meet the Customer Satisfaction [12] Halabi, A. K., Barrett, R., & Dyt, R. (2010). Understanding financial information used to assess small firm performance: An Australian qualitative study, Qualitative Research in Accounting & Management, 7(2), [13] Hallgren M, Olhager J (2009) Lean and agile manufacturing: external and internal drivers and performance outcomes. Int J Oper Prod Manag 29 (10): [14] Iyer, K.C. and Jha, K.N.N. (2004), Factors affecting cost performance evidence from Indian construction projects, International Journal of Project Management, Vol. 23, pp [15] Jadhav, J. R., Mantha, S. S., & Rane, S. B. (2014). Development of framework for sustainable Lean implementation: an ISM approach. Journal of Industrial Engineering International, 10(3), editor@iaeme.com