TQM and Reliability Engineering

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1 Total Quality Management & Reliability Engineering Dr V. Muralidharan Dept. of Mechatronics SRM University

2 Introduction Total Quality Management TQM is an enhancement to the traditional way of doing business. It is proven technique to guarantee survival in the world class competition. By changing the actions of management, the culture and actions of entire organization can be transformed.

3 Total Quality Management Word by Word Analysis Total Made up of whole Quality Degree of excellence a product or service provides Management Art of handling or Manner of handling So, TQM is the art of managing the whole business to achieve the excellence.

4 TQM - Definition TQM is defined as both philosophy and set of rules that represent the foundation of a continuously improving organization. It is the application of quantitative methods and the human resources to improve all the processes with in an organization and exceed the customer needs now and in the future.

5 Basic Approach TQM requires six basic concepts: A committed and involved management to provide long term top-to-bottom organizational support. An unwavering focus on the customer. Effective involvement and use of entire work force. Continuous improvement of business and production process. Treating the suppliers as partners. Establish performance measures for the process.

6 1. A committed and Management must participate in the quality program. A team to set clear vision, goal and to direct. Quality goal inclusion in the business plan. Conduct of QIP annually and take the input of entire work force. Managers as coach to improve quality. Quality Improvement is a continual activity. Communication to everyone.

7 2. An unwavering focus Focus on the customer is a key to a powerful TQM. Satisfying the customer needs. Listen to Voice of the customer. Emphasize on design quality and defect free services. Concentrate on defect prevention. Insist every one to attain 100 % customer satisfaction.

8 3. Effective involvement TQM is organization wide challenge everyones responsibility. Training on TQM, SPC and other QIPs and involve them in project teams. Inclusion of internal customers in project teams Changing behavior is the goal. Don t come to do your job, but to improve. People to be trained at lowest possible level for optimum performance.

9 4. Continuous improvement Continuous striving to improve all business and production process. Areas such as on-time delivery (OTD), order entry efficiency, billing error rate, customer satisfaction, cycle time and scrap reduction are best suitable to begin with. Some problem solving techniques are SPC, bench marking, quality function deployment, ISO 9000.

10 5. Treating suppliers as More than 40% of the sales are purchased goods. Supply quality should be outstanding. A partnering relationship with the suppliers. Profit or loss based on success of the goods sold. Focus on quality rather than the cost. Minimum suppliers maximum quality.

11 6. Establish performace Performance measures such as uptime, % nonconforming, absenteeism and customer satisfaction. Communication to everybody. Quantify the data for analysis. Analyzing the data periodically and find out the lacking area.

12 Comparison Comparison b/w traditional Vs TQM

13 TQM Framework

14 Quality - Definition Quality An excellent product or service It is based on intended use and selling price. For eg. difference between plain steel and chrome plated steel. However, quality can be quantified as Q = P / E Where, Q Quality P - Performance E - Expectation

15 Quality - Definition Definition ISO 9000:2000 It is defined as the degree to which a set of inherent characteristics fulfils the requirements. Degree Quality can be used with adjectives like poor, good, excellent Inherent Something existing Characteristics qualitative or quantitative Requirements the need or expectation stated. Generally stated by organisation

16 Dimensions of quality

17 Deming Philosophy Intro Totally 14 points available Developed in 1950 and given in many seminars. Adopted by leading CEOs in Japan

18 14 Points 1.Create and Publish aims and purposes of the organization. Management must demonstrate their commitment to this statement constantly. It includes investors, customers, suppliers, employees. This statement is the forever changing document that requires input from everyone.

19 14 points Organization should develop a long term view for at least 10 yrs and plan to stay in business by setting long range goals. Resources must be allocated for research training and continuing education to achieve the goals. Innovations must be promoted. An organizational philosophy is developed to send message that everyone is part of the organization.

20 14 points 2. Learn the new Philosophy Top management and everyone should learn the new philosophy. Organization must seek never ending Improvements and refuse to accept nonconformance. Customer satisfaction is no.1 priority. The organization must concentrate on defect prevention rather than defect detection.

21 14 points Process has to be improved to enhance the quality and increase the productivity. Everyone in the organization including the union must be involved in the quality journey. The supplier must be helped to improve the quality by giving statistical evidence of conformance.

22 14 points 3. Understand the purpose of inspection Management must understand that the purpose of inspection to improve the process to reduce the cost. Mass inspection is costly and unreliable. Statistical evidence is required of self and supplier. Mass inspection is managing for failure and defect prevention is managing for success.

23 14 points 4. Stop awarding business based on price alone Organization must stop awarding business based on the low bid. The goal is to have single supplier for each item to develop a long term relationship of royalty and trust, thereby improved products and services. Purchasing agents must be trained in SPC. They must follow the materials through out the entire life cycle to examine the customer expectations.

24 14 points 5. Improve constantly and forever the system. Management must take more responsibility for problems actively finding and correcting. If problems are founded out the quality and productivity are continually and permanently improved and cost are reduced. Variation is expected, there must be continuous striving for its reduction using control charts. Responsibilities are assigned to teams to remove the causes of problem and continually improve the process.

25 14 points 6. Institute Training Each employee is oriented to organization philosophy of commitment to never ending improvements. Management must allocate resources to train employees to perform their jobs in the best manner. Everyone must be trained statistical methods and these methods should be used to monitor the need for further training.

26 14 points 7. Teach and Institute leadership Improving supervision is managements responsibility. Instead of focusing on a negative, fault finding atmosphere, supervisor should create a positive and supportive one where pride in workmanship can flourish. All communication must be cleat from top management to supervisors.

27 14 points 8. Drive out fear, create trust and create climate for Innovation Management must encourage open effective communication and team work. Fear is caused by general feeling of being powerless. Lack of job security, possible, performance appraisals, ignorance of organizational goals. Driving the fear out of workplace involves managing for success.

28 14 points Management begin with adequate training, proper tools to accomplish the task good supervision for the workers. Good treatment of the people eliminate the fear and people will work for the organization.

29 14 points 9. Optimize the efforts of Teams, Groups and Staff areas Internal barriers everywhere (among all levels of Mgmt). External barriers exist (Customer and supplier) Reasons: Poor communication, ignorance of organization s mission, competition fear, personal grudges. Need long-term perspective to breakdown. Different areas work together

30 14 points 10. Eliminate exhortations for the work force Expecting increased productivity with no specific improvement methods Goals should be set that are achievable and support for long term success. Improvements in the process cannot be made unless the tools and methods are available.

31 14 points 11a. Eliminate numerical quotas for the work force Management should learn the methods for improvement. Quotas and work standards focus on quantity rather than quality. Encouraging poor workmanship to meet the quotas. Quotas should be replaced with statistical methods of process control.

32 14 points Management must provide and implement the strategy for never ending improvements to reflect the new policies. b. Eliminate management by objective Management must learn the capabilities of the processes and how to improve them. Internal goals set by management without a method are useless.

33 14 points 12. Remove barriers that rob people of pride of workmanship Workers do not know how to relate to the organizations mission. They are being blamed for system problems. Poor design lead to the production of junk Inadequate training. Ineffective equipment for carrying out the required work.

34 14 points 13. Encourage education and self improvement for everyone A long term commitment to educate and train the people. 14 points and organization s mission should be the foundation for the education program. Everyone to be retrained if the organization requirement change to meet the chasing environment.

35 14 points 14. Take action to accomplish the transformation Take the inputs from everyone for never ending improvement of an organization. Organization to get the corporate structure to implement the philosophy. The organization should be committed, involved and accessible to succeed in implementation of the philosophy.

36 Strategic Planning It is a deliberate process Used to develop a mission, vision, guiding values, strategic objectives and specific strategies for achieving the objectives. Before going to strategic planning SWOT analysis has to be done.

37 SWOT What? SWOT stands for S W O T Strength Weakness Opportunities Threats SWOT is an analysis of Strength, Weakness, Opportunities and Threats of an organization.

38 SWOT Why? What are organization s strengths? What are organization s weakness? What opportunities exist to improve an organization? What factors (External and Internal) constitute a threat to the organization.

39 What Next? After SWOT, strategic plan search for answers to the following Who we are? What are we known for? What do we do better than 90% of our competitors? What do our competitors beat us on? What do we wish to be known for? Where are we heading as an organization? Where do we wish to be headed?

40 Components of strategy Mission, Vision and guiding values Product / Market scope Competitive edge (Differentiation) Supporting policies Objectives Organizational culture

41 Vision Statement The vision statement is a short declaration of what an organization aspires to be tomorrow. Successful visions are timeless inspirational and become deeply shared within organization. We will be preferred provider of safe, reliable and cost effective products and services that satisfy the electric related needs of all customer segments - Florida power & light company

42 Mission Statement Mission statement answers the following : Who we are? Who are the customers? What we do? How we do it? Should be one paragraph or less in length and is easy to understand and describe the function of organization. Clear statement of purpose of employees, customers and suppliers.

43 Mission Statement Example To meet customers transportation and distribution needs by being the best at moving their goods on time safely and damage free

44 Quality Policy Statement It is a guide for everyone in the organization as to how they should provide products and service to the customers. It should be written by the CEO with feedback from the work force and be approved by the quality council.

45 Common Characteristics Quality is first among equals. Meet the needs of the internal and external customers. Equal and exceed the competition Continually improve the quality Include business and production practices Utilize the entire work force. Quality policy is a requirement of ISO 9000:2000.

46 Goals & Objectives Goals Long term Planning Objective Short term planning

47 Goal Setting Needed to provide the focus such as improve customers satisfaction and employee satisfaction. Can change the leadership style from reward and punishment to identify and improving the system. It must be on statistical evidence. Goals must be definitive, specific and understandable using concrete results rather than behaviors and attitudes. Must have resources and methods Must be challenging and achievable.

48 Strategic planning 7 steps Discover the future need of customer Customer positioning Predict the future Gap Analysis Closing the gap Alignment Implementation

49 7 steps Customer Needs Discover the needs of future customer Who will they be? Will your customer base change? What will they want? How will our organization meet and exceed expectations?

50 7 Steps Customer Positioning Planners determine where the organization wants to be in relation to the customer. They want to retain, reduce or expand the customer base. Products or services with poor quality performance should be targeted for break through or elimination.

51 7 Steps Predict the future Planner should look whether their product or service will affect their product or services Tools such as demography, economic forecast and technical assessment that help to predict the future. Rate of change should be continually increasing.

52 7 Steps Gap Analysis Analyze the gap between current state and future state of organization. Analysis of core values is the technique for analyzing the gap.

53 7 Steps Closing the Gap Establishment of goals and increasing responsibilities to close the gap.

54 7 Steps Alignment Once the plan is developed it must be aligned with mission, vision and core values and concepts of the organizaiton. It is mandatory.

55 7 Steps Implementation Resource to collect data, designing changes and overcoming the obstacles. Monitor the progress being made. The planning group should meet at least once a year to assess progress and take any corrective action.

56 TQM Implementation Implementation begins with senior management and CEO s commitment. Leadership is essential during every phase of implementation phase. Senior management needs to be educated in the TQM concepts. Managers should visit successful TQM organizations, read selected articles and books. Also attend seminars and conferences.

57 TQM Implementation Continues Develop implementation plan. Timing for implementation process has to be studied. Form the quality council. Involvement of middle managers and first line supervision. Senior management should pave way for all level managers and an opportunity. Focusing on retreat.

58 TQM Implementation Continues Discussion should be made with union. Communication to entire organization. Training in quality awareness and problem solving. Customer, employee and supplier surveys must be conducted to attitudes of stakeholders.

59 Crossby s Philosophy Management commitment The quality improvement team Quality measurement The cost of quality Quality awareness Corrective action Zero defects planning Supervision training Zero defects day

60 Continues Goal setting Error cause removal Recognition Quality council Do it over again

61 PDSA Cycle Word by Word Analysis P Plan D Do S Study A Act ACT PLAN STUDY DO

62 Continuous Process Improvement Cycle 1. Identify the opportunity 7. Plan for the future ACT PLAN 2. Analyze the Process 6. Standardize the solution STUDY DO 3. Develop the optimal solutions 5. Study the results 4. Implement

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