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1 UNIT I Fundamentals Definition of quality, dimensions of quality, quality planning, quality costs Analysis Technique for quality costs, Basic concept of TQM, Historical review, Principles of TQM, Leadership Concept, role of senior management, quality council, quality statements, strategic planning, Deming Philosophy, Barriers of TQM implementation. Unit Overview This unit is introduction to the concept of TQM and how the top management has to approach and understand the concept. TQM must come from the top management and also deals the basic philosophy and difficulties of TQM Total Whole, entire, complete Quality Excellence, class, meeting expectation Management organising, administering, art of getting things done TQM is defined as both philosophy and a set of guiding principles that represent the foundation of continuously improving organisation. It is the application of quantitative methods and human resources to improve all the process within the organisation and exceed customer needs now and in the future. TQM Basic Concepts 1. Management Involvement Participate in quality program, develop quality council, direct participation 2. Focus on customer who is the customer internal and external, voice of the customer, do it right first time and every time. 3. Involvement and utilisation of entire work force All levels of management 4. Continuous improvement Quality never stops, placing orders, bill errors, delivery, minimise wastage and scrap etc. 5. Treating suppliers as partners no business exists without suppliers. 6. Performance measures creating accountability in all levels Barriers in TQM Implementation 1. Lack of commitment from top management avoiding training for self and employees, meetings 2. Lack of employee involvement particularly at managerial level, supportive attitude, trust 3. Lack of team work Co-operation and co-ordination within workers. 4. Lack of customer oriented approach Know the customer need, demand, taste, shortcomings 5. Lack of attention to feedback and complaints 6. Supplier control in terms of materials, cost, quality, delivery etc 7. Review quality procedures up gradation, correct past errors. Learn from experience Historical Review of TQM Industrialisation led to mass production in which it led to the concept of one product at a time to the assembly line of production. Though workmanship was affected but mass production led to more job and reduction in cost of the product and increase in quality, reduction of defects etc After WWI, W.A. Sherwat of Bell Telephone statistical chart for the control of various. Concept of sample tests were followed. It was a failure in the initial stages ASQC American Society for Quality Control, now ASQ. Frequent meetings, conferences and publications were made to public W.Edwards Demings his guidance and lecture to Japan engineers transformed quality concepts in the organisation. His

2 cycle ACT-PLAN-DO-CHECK 1954 Joseph M.Juran Concept of efficient and productive. Juran Trilogy Quality planning Quality Control Quality Improvement 1960 Quality control circles was formed. Zero defects concepts 1970 Reactive approach to proactive approach. Shift from Japan to USA 1980 SPC Statistical Process Control. Concepts of parameter and tolerance. Experiments 1990 Concepts of certification of ISO, CMM etc 2000 six sigma concept - Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to represent standard deviation in statistics) from mean. Six Sigma methodology provides the techniques and tools to improve the capability and reduce the defects in any process. Demings 14 Points Summarised 1. Create constancy of purpose and continual improvement 2. Adopt the new (Japanese) philosophy by management and workers alike. 3. Do not depend on (quality) inspection build quality into the product and process 4. Choose quality suppliers 5. Improve constantly to reduce variation in all aspects 6. Training on the job for workers and management. 7. Leadership not supervision to get people to do a better job, not just meet targets. 8. Eliminate fear encourage two-way communication, encourage employees 9. Break down internal barriers department s are internal customers 10. Eliminate slogans (exhortations) processes make mistakes not people. 11. Eliminate numerical targets management by objectives not numbers 12. Remover barriers to worker satisfaction including annual appraisals 13. Encourage self improvement and education for all 14. Everyone is responsible for continual improvement in quality and productivity particularly top management Quality When a product or service meets or exceeds expectation considering the intended use and the selling price. Quality = performance / expectation Definition by ISO 9000:2000 It if defined as the degree to which a set of inherent characteristics fulfils requirement. Degree good, excellent, bad Inherent existing, within, natural Requirement need or expectation Dimensions of quality 1. Performance - Fulfilment of primary requirement 2. Features - Additional things that enhance performance 3. Conformance - Meeting specific standards set by the industry 4. Reliability - Consistence performance over a period of time 5. Durability - Long life and less maintenance 6. Service - Ease of repair, guarantee, and warranty 7. Response - Dealer customer relationship, human interface 8. Aesthetics - exteriors, packages 9. Reputation - Past performance, ranking, branding

3 Quality Planning Identifying customers both internal and external and determining the need and developing product features. Setting goals and objective Goals are long term objectives are short term Steps to Quality planning 1. Customer Needs Who, will they change, their wants 2. Customer positioning Retain, reduce or expand customer base 3. Predict the future update product or service to the latest trends and needs 4. Gap Analysis identify gap between current state and future actions 5. Closing the gap establish goals and responsibilities 6. Alignment align to the vision and mission of the orgn. Plan without align will fail. 7. Implementation resource allocation, design changes, overcome resistance, monitoring etc Quality Costs Quality leads to profit, more quality more profit. It is defined as those costs associated with non achievement of product or service quality as stated in the requirements established by the organisation and with its association to the customers and society. Analysis technique for Quality Cost The term "trend analysis" refers to the concept of collecting information and attempting to spot a pattern, or trend, in the information. In some fields of study, the term "trend analysis" has more formally-defined meanings. Although trend analysis is often used to predict future events, it could be used to estimate uncertain events in the past, such as how many ancient kings probably ruled between two dates, based on data such as the average years which other known kings reigned. Pareto Analysis This fact gave rise to the Pareto effect or Pareto s law: the vital few and the trivial many. The Pareto effect is named after Vilfredo Pareto, an economist and sociologist who lived from 1848 to Originally trained as an engineer he was a one time managing director of a group of coalmines. Pareto analysis is a statistical technique in decision making that is used for selection of a limited number of tasks that produce significant overall effect. It uses the Pareto principle - the idea that by doing 20% of work you can generate 80% of the advantage of doing the entire job. Or in terms of quality improvement, a large majority of problems (80%) are produced by a few key causes (20%). Pareto analysis is a formal technique useful where many possible courses of action are competing for your attention. In essence, the problem-solver estimates the benefit delivered by each action, then selects a number of the most effective actions that deliver a total benefit reasonably close to the maximal possible one. Use of Pareto principle in prioritizing or ranking a range of items which have different levels of significance. Its objective is to separate the 'vital few' from the 'useful many.' Steps to identify the important causes using Pareto analysis Step 1: Form a table listing the causes and their frequency as a percentage. Step 2: Arrange the rows in the decreasing order of importance of the causes (i.e, the most important cause first) Step 3: Add a cumulative percentage column to the table Step 4: Plot with causes on x- and cumulative percentage on y-axis Step 5: Join the above points to form a curve Step 6: Plot (on the same graph) a bar graph with causes on x- and percent frequency on y-axis

4 Step 7: Draw line at 80% on y-axis parallel to x-axis. Then drop the line at the point of intersection with the curve on x-axis. This point on the x-axis separates the important causes (on the left) and trivial causes (on the right) TQM UNIT II Customer satisfaction Customer perception of quality, customer complaints, service quality, customer retention, employee involvement Motivation, Empowerment, Teams, recognition and rewards, Performance appraisal, benefits, continuous process improvement Juran trilogy, PDSA Cycle, 5S, Kaizen, supplier partnership Partnering, sourcing, supplier selection, supplier rating, relationship development, Performance measures - Basic concepts, strategy, Performance measure Unit Overview This unit deals with the customer in focus what they expect in terms of quality and their attitude towards a product or service. Then how a organization must focus and appraise the employees in satisfying customers. Few commonly adopted process improvement like Juran, PDSA, 5S and Kaizen. Last how the external suppliers contribute towards quality and an organization is mutually dependent on suppliers. Customer Satisfaction Customer A person who buys the product or service or even a consumer who may become future customer Customer Satisfaction 1. Understanding customer needs 2. Defining quality 3. Teboul Model Penetration 4. Customer satisfaction is a process never ending Who is the customer 1. External customer user of product or service, buyer and influencer 2. Internal customer for his personal use only Basic Requirement of Internal and External Customers 1. High level of quality meeting all his needs 2. High degree of flexibility product flexibility 3. High levels of service maximum service 4. Low costs value for money, customers pride is that he has bought for the lowest cost 5. Quick response Less waiting period, demo, billing, packing, delivery 6. Little of no variability minimum deviation from the target and expectation Customer perception of quality Before 1988 Performance, Prize and service After 1989 Performance, service and prize ASQ American Society for Quality 1. Performance availability (ready for use), reliability (free from failure), maintainability 2. Features psychological and technical. Added feature along with main usage 3. Service intangible, made up of many small things 4. Warranty Vs guarantee. Customer feels comfortable with this

5 5. Price value for money, ready to pay at the same time comparative study to be done 6. Reputation Branding merges with quality. Good exp reaches 6 bad reaches 15 Features of Feedback Finds dissatisfaction dissatisfied customer normally tend to report and register complaint Priority for quality Match between organization perceptions of quality to that of customer Comparison with competitors Evaluation by customers who would have known the competitors Customer needs The real needs of customers is known directly from the customer Scope for improvement Future enhancement in terms of quality Sources of Feedback 1. Comment Card card attached with the warranty to get the basic information. Asking reasons for the purchase of product or service. 2. Questionnaire Most popular. Mostly close ended and few open questions. Time consuming. Analyze and interpret data. 3. Focus Group Select few customer, call for a meeting and discuss and collect data from them. Also ask them what their expectation is. Incentive for participation is assured in advance so that the customer is comfortable and not forced to participate. 4. Toll Free Numbers Free telephone customer can call for assistance, register complaints 5. Customer Visit It is very effective as customer is put on top priority but at the same time consuming, costly and customer interest. 6. Report Card giving a grading sheet to the customer regarding the organization. Very effective, customer is at pride that he could evaluate the product or service. 7. Internet Online and feedback. Though easy but not 100% reliable source and lot of misrepresentation and lags seriousness on the part of the consumer. 8. Employee feedback Untapped source of effective information. Customer says what is happening employees say why it is happening. Reactive to proactive approach 9. Mass Customization make instant changes to the requirement of the customer. Dress materials, computer, furniture etc. Complaints Feedbacks are proactive complaints are reactive. 1. Organization must take complaints as a proactive device for the future. 2. All complaints must be acknowledge as early as possible 3. The complainant must get the information about the progress of the complaint 4. Dissatisfied customers complaints not adhered tend to move to the competitors 5. Small organization has the advantage of being in direct contact with the customer 6. Frontline staffs get the direct complaint they must be trained to handle and take decisions Handling complaints 1. Investigate the complaint promptly both positive and negative 2. Develop procedure for complaints, recording, actions to be taken, inform the staffs 3. Categories the complaints product, service, cost, ambience etc 4. Senior managers must have direct involvement 5. Communicate the process of handling the complaints to all staffs 6. Provide regular complaints reports complaints received, decisions taken etc

6 7. Identify customer expectations before hand Service Quality Shift in focus from manufacturing industry to service industry and the services involved in manufacturing organization. Customer service is the set of activities an organization uses to win, attract and retain customers. It can be provided before, during and after the sale of the product. Elements of customer service Organization 1. Identify each segment where the organization needs to concentrate on quality 2. Write down requirement Proper documentation of quality policy in the form of a handbook 3. Communicate requirements Inform its importance to all levels in the organisation 4. Organize process create a systematic process as it is ongoing and never ending process 5. Organize physical spaces aesthetics, atmosphere, room space, recreation, wifi etc Customer Care Henry Ford The boss just handles the cash it is the customer who pays your salary 1. Meet the customers expectation treat all customers alike, respond quickly 2. Get the customer s point of view think in the point of view of a customer 3. Deliver what is promised keep up promise at any cost 4. Make the customer feel valued customer must feel that due respect and importance is given to him 5. Respond to all complaints minimize complaints and eradicate similar and repeated complaints 6. Over-respond to customer make him feel he is cloud nine 7. Provide clean and comfortable reception area cleanliness, spacious, dress code, weather etc Communication All forms of communication written, verbal, advt, web site must prove quality 1. Optimize trade off between time and personal attention 2. Minimize the number of contact points channels and levels 3. Provide pleasant and knowledgeable enthusiastic employees 4. Write document in customer friendly language simple and point blank Front-line people The people who have first and direct contact or interaction with the customer 1. Hire people who like people train groom them 2. Challenge them to develop better methods small changes in packing, billing etc 3. Give them authority to solve problems give discounts, free gifts etc 4. Serve them as internal customers 5. Make sure they are adequately trained written and oral communication, body language etc 6. Recognize and reward performance - Nordstorm example obsess with the customer Leadership 1. Lead by example spend time with all level, dealers and suppliers. Like having food, using co product 2. Listen to front line people 3. Strive for continuous process improvement Customer Retention - It is the final result of customer satisfaction and customer loyalty - Most cases what customer says or feels may vary from actual consumption or purchase - Customer must

7 refer more customers and increase the revenue - External research must be done to feel the pulse of the customer - Employee retention is proportional customer retention Five S Seiri Sorting, Seiton Straighten, in Order, Seiso Sweep, Seiketsu -Standardizing Shitsuke Sustaining Kaizen is defined as making continuous improvement - slow, incremental but constant. Western way of pragmatic approach why-fix-it-if-it-ain t-broke Kaizen extends a more optimistic philosophical view: Everything even if it ain t broke can be made better! "kai > Means "change" or "the action to correct" "zen > means "good Importance is given to the process not the results, as Japanese believe that good process will deliver good results. Juran Trilogy The Trilogy consists of three sequential and logical groups of activities: Quality Planning Quality Control Quality Improvement All three processes are universal Applied to a particular process Performed by top management or by middle management Juran Trilogy: A systematic and comprehensive system for break-through quality improvements Quality Defined: meet customer needs and freedom from deficiencies Trilogy Components Quality Planning discover customer needs and deficiencies and design adequate processes Quality Control -- compare actual performance to goals and take action on the differences Quality Improvement -- the attainment of unprecedented levels of performance PDCA Cycle PLAN > DO > CHECK > ACT The PDCA (or PDSA) Cycle was originally conceived by Walter Shewhart in 1930's, and later adopted by W. Edwards Deming. The model provides a framework for the improvement of a process or system. It can be used to guide the entire improvement project It can be used to develop specific projects once target improvement areas have been identified. Plan - a change or a test, aimed at improvement. In this phase, analyze what you intend to improve, looking for areas that hold opportunities for change. The first step is to choose areas that offer the most return for the effort you put in-the biggest bang for your buck. To identify these areas for change consider using a Flow chart or Pareto chart Do - Carry out the change or test (preferably on a small scale). Implement the change you decided on in the plan phase.

8 Document the procedure and observation Use tools to collect information Check or Study - the results. What was learned? What went wrong? This is a crucial step in the PDCA cycle. After you have implemented the change for a short time, you must determine how well it is working. Is it really leading to improvement in the way you had hoped? You must decide on several measures with which you can monitor the level of improvement. Run Charts can be helpful with this measurement. Act - Adopt the change, abandon it, or run the cycle again. After planning a change, implementing and then monitoring it, you must decide whether it is worth continuing that particular change. If it consumed too much of your time, was difficult to adhere to, or even led to no improvement, you may consider aborting the change and planning a new one. However, if the change led to a desirable improvement or outcome, you may consider expanding the trial to a different area, or slightly increasing your complexity. This sends you back into the Plan phase and can be the beginning of the Ramp of Improvement. Supplier Partnership Ten Principles of Customer/Supplier Relationship 1. Customer and supplier fully responsible for quality control 2. Customer and supplier must be independent and interdependent 3. The customer must provide clear information to the supplier 4. Proper understanding in quality, quantity, price, delivery and payments 5. Supplier must satisfy the customer need 6. Both must accept the evaluation in terms of quality and service 7. Contracts must be signed so the disputes can be settled amicably 8. Both must have exchange of information to improve quality and service 9. Both should strive for mutual satisfaction and good relationship 10. Both should think in the shoes of the end user. Partnering Benefits 1. Improved Quality 2. Increase efficiency 3. Lower cost 4. Increase the opportunity for innovation 5. Continuous improvement of product and service Key Elements in Partnering 1. Long-term commitment 2. Trust 3. Shared vision Performance Measures It is systematic examination of quality performance. Performance measure helps to check the course of action and enhance the performance to the required standard. Objectives

9 1. Reveal trends 2. Identifies which process to be improved 3. Indicates process gains and losses 4. Helps to compare performance with plan 5. Source of information to the individual and team 6. Helps to decide the overall performance Typical Measurements What should be measured 1. Human resource loss of time by accident, late, absent. Training and its cost and effect etc 2. Customer complaints, delivery, warranty, replacement 3. Production inventory, scraps, output etc 4. R & D new product, redesign, 5. Suppliers delivery, service, billing, accuracy etc 6. Marketing and sales ad and its return, promotions, sales target 7. Administration revenue, cost of quality, receipts and payments Criteria How to set measurements 1. Simple easily understandable to all 2. Few in Number 3. Developed by users user input in measuring 4. Relevance to customers measure must seek to benefit of the customer 5. Importance focus on improvement, prevention, safety 6. Cost measure must help in cost reduction and increase in profit 7. Visible The measuring procedure must be known to all 8. Timely Processing of data, creation of report etc

10 UNIT III STATISTICAL PROCESS CONTROL TQM TO O L S ( S E V E N TOOLS O F Q U A L I T Y ) 1. PARETO DIAGRAM 2. FLOW DIAGRAM CAUSE AND EFFECT DIAGRAM STEPS IN CONSTRUCTING A CAUSE & EFFECT DIAGRAM : a. Define the problem or effect to be analyzed. b. Form the team to perform the analysis. Often the team will uncover potential causes through brainstorming. c. Draw the effect box and the centerline. d. Specify the major potential cause categories and join them as boxes connected to the centerline.

11 e. Identify the possible causes and classify them into the categories in step d. Create new categories, if necessary. f. Rank order the causes to identify those that seem most likely to impact the problem. g. Take corrective action 4. CHECK SHEETS

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13 7. SCATTER DIAGRAM In scatter diagram, three types of co-relations exist. 1. Positive correlation. 2. Negative correlation. 3. No correlation. NEW MANAGEMENT TOOLS 1. WHY, WHY 2. FORCED FIELD ANALYSIS Objective : Stop Smoking PROMOTING FORCES INHIBITING FORCES 3. NOMINAL GROUP TECHNIQUE 4. AFFINITY DIAGRAM 5. INTER-RELATIONSHIP DIGRAPH 6. TREE DIAGRAM 7. MATRIX DIAGRAM 8. PRIORITIZATION MATRICES 9. PROCESS DECISION PROGRAM CHART 10. ACTIVITY NETWORK DIAGRAM

14 STATISTICAL FUNDAMENTALS Statistics is defined as the science that deals with the collection, tabulation, analysis, interpretation and presentation of quantitative data. Data collected for quality control purposes are obtained by direct observation and are classified as 1. Variables (Measurable quality characteristics like length measured in metres) 2. Attributes (Quality characteristic which are classified as either conforming (or) non-conforming to specifications, such as go & no-go gauge. MEASURES OF CENTRAL TENDENCY AND DISPERSION There are two important analytical methods of describing a collection of data as 1. Measures of central tendency. 2. Measures of dispersion. A measure of central tendency of a distribution is a numerical value that describes how the data tend to build up in the centre. There are three measures in quality as 1. Average 2. Median 3. Mode Average is the sum of observations divided by the number of observations. Median is the value which divides a series of ordered observations so that the number of items above it is equal to the number of items below it. Mode is the value which occurs with the greatest frequency in a set of numbers. Mode can again classified as

15 No mode Uni mode Bi mode Multi Mode Measure of dispersion describes how the data are spread out on each side of the central value. The two measures of dispersion are 1. Range 2. Standard Deviation Range is the difference between the largest and smallest values of observations in a series of numbers. Range = R = X h X l Where, R = Range X h = highest observation in a series X l = lowest observation in a series Standard Deviation measures the spreading tendency of the data. Larger the standard deviation, greater the variability of data. where S = sample standard deviation X i = observed value n = number of observations POPULATION AND SAMPLE In order to construct a frequency distribution of the outer diameter of shafts, a small portion (or) sample is selected to represent all the shafts. The population is the whole collection of shafts. The population may be an hour s production, a week s production, pieces and so on. It is not possible to measure all of the population. Hence, we go for sampling. Sampling becomes necessary

16 1. When it is impossible to measure the entire population. 2. When it is more expensive to observe all the data. 3. When the required inspection destroys the product. 4. When a test of the entire population may be too dangerous as in the case of new medical drug. X is for sample average or sample mean. μ is for population mean. S is for sample standard deviation. σ is for population standard deviation NORMAL CURVE Normal curve is common type of population. The normal curve is symmetrical, unimodal, bell shaped distribution with the mean, median and mode all having the same value. CONTROL CHARTS FOR VARIABLES AND ATTRIBUTES Variation is a law of nature because no two natural items in any category are the same. Variations are due to the following reasons. 1. Chance causes or Natural causes. 2. Assignable causes. Chance causes of variation are inevitable. Chance causes affect almost every production process and are inherent in the process. They are purely random, unidentifiable sources of variations.

17 Hence, when only chance causes are present in a process, the process is said to be in Statistical Control. Assignable causes result in unnatural variations The sources of variations may be due to Equipment Material Environment Operator The Control chart is used to look at variations, seek assignable causes and chance causes. The control chart is a line chart with control limits. All control charts have three basic components. 1. A centre line, usually the mathematical average of all the samples plotted. 2. Upper and Lower Control Limits that define the constraints of common cause variations. 3. Performance data plotted over time. A typical control chart is a graphic display of a quality characteristic that has been measured or computed from a sample versus sample number or time. If the process is in control, nearly all of the sample points will fall between Upper Control Limit (UCL) and Lower Control Limit (LCL). CONTROL CHART FOR VARIABLES 1. Mean chart X chart & Range Chart R Chart

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20 CONTROL CHART FOR ATTRIBUTES 1. p chart 2. np chart 3. c chart 4. u chart PROCESS CAPABILITY INDEX (CP, CPK) These calculators compute the process capability index which shows the process potential of meeting the specifications. Enter the process parameters and specifications in one of the following tables, depending on whether you have a double-sided or single-sided specification POPULATION AND SAMPLE A Population is a collection of data whose properties are analyzed. The population is the complete collection to be studied, it contains all subjects of interest. sample is a part of the population of interest, a sub-collection selected from a population Population: the universal set of all objects under study. Sample: Any subset of the population. NORMAL CURVE As discussed in the previous chapter, the normal curve is one of a number of possible models of probability distributions. Because it is widely used and an important theoretical tool, it is given special status as a separate chapter. The normal curve is not a single curve, rather it is an infinite number of possible curves, all described by the same algebraic expression:

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23 THE SIX STEPS TO SIX SIGMA. STEP #1 - IDENTIFY THE PRODUCT YOU CREATE OR THE SERVICE YOU PROVIDE In other words... WHAT DO YOU DO? STEP #2 - IDENTIFY THE CUSTOMER(S) FOR YOUR PRODUCT OR SERVICE, AND DETERMINE WHAT THEY CONSIDER IMPORTANT I.E. CUSTOMER REQUIREMENTS In other words... WHO USES YOUR PRODUCT AND SERVICES? STEP #3 - IDENTIFY YOUR NEEDS (TO PROVIDE PRODUCT/SERVICE SO THAT IT SATISFIES THE CUSTOMER) In other words... WHAT DO YOU NEED TO DO YOUR WORK? STEP #4 - DEFINE THE PROCESS FOR DOING YOUR WORK In other words... HOW DO YOU DO YOUR WORK? STEP #5 - MISTAKE-PROOF THE PROCESS AND ELIMINATE WASTED EFFORTS USING... In other words... HOW CAN YOU DO YOUR WORK BETTER? Step #6 - Ensure continuous improvement by measuring, analyzing and controlling the improved process using control charts

24 UNIT-4 (TOOLS AND TECHNIQUES ) Quality Function Deployment (QFD) is a way of making the 'voice of the customer' heard throughout an organization. It is a systematic process for capturing customer requirements and translating these into requirements that must be met throughout the 'supply chain'. The result is a new set of target values for designers, production people, and even suppliers to aim at in order to produce the output desired by customers. QFD is particularly valuable when design trade-offs are necessary to achieve the best overall solution, e.g. because some requirements conflict with others. QFD also enables a great deal of information to be summarized in the form of one or more charts. These charts capture customer and product data gleaned from many sources, as well as the design parameters chosen for the new product. In this way they provide a solid foundation for further improvement in subsequent design cycles. QFD is sometimes referred to by other 'nicknames' - the voice of the customer (from its use as a way of communicating customer needs), or the House of Quality (from the characteristic house shape of a QFD chart). The main 'process' benefits of using QFD are: improved communication and sharing of information within a cross-functional team charged with developing a new product. This team will typically include people from a variety of functional groups, such as marketing, sales, service, distribution, product engineering, process engineering, procurement, and production the identification of 'holes' in the current knowledge of the design team the capture and display of a wide variety of important design information in one place in a compact form support for understanding, consensus, and decision making, especially when complex relationships and trade-offs are involved the creation of an informational base which is valuable for repeated cycles of product improvement The main 'bottom line' benefits of using QFD are: greater likelihood of product success in the marketplace, due to the precise targeting of key customer requirements reduced overall design cycle time, mainly due to a reduction in time-consuming design changes. This is a powerful benefit: customer requirements are less likely to have changed since the beginning of the design project; and more frequent design cycles mean that products can be improved more rapidly than the competition reduced overall cost due to reducing design changes, which are not only time consuming but very costly, especially those which occur at a late stage. reduced product cost by eliminating redundant features and over-design. When to

25 use QFD QFD is a powerful tool that leads to significant improvements in product/process performances. However, it is not a short-term answer to product development problems. The method on which QFD is implemented may have a large impact on benefits derived and companies should take up QFD only after getting the consent and commitment of the team members. QFD provides a systematic approach to build a team perspective on what needs to be done, the best ways to do it, the best order to accomplish the tasks proposed and the staffing and resources required to enhance customer satisfaction. It is also a good format for capturing and recording/documenting decision making. Applied through the Kaizen philosophy under Total Quality Control, QFD is the most highly developed form of integrated product and process development in existence. Strengths and weaknesses of QFD Strengths include: 1. Enhanced customer satisfaction Listening to the voice of the customer Robust design 2. Shorter time to market Reduced rework during development Creates team consensus and commitment 3. Reduced costs Competitive benchmarking Concurrent Engineering Weaknesses Targets set based only on the House of Quality, may be unrealistic Customer requirements are a mix of functional requirements and customer attributes Sometimes customer influences may backfire Success with QFD Companies using QFD for product development have on the average, experienced: 50% reduction in costs 33% reduction in product development time 200% increase in productivity Companies that have successfully applied QFD include Toyota, Honda, ICI, Black & Decker, Integrated Design Control Systems and Rover. QFD House of Quality MEANING: The voice of the customer from the market research and various benchmarking is linked to the technicalities of the design and process of the product both new and existing. DEFINITION: It is kind of conceptual map that provides a means of interfunctional planning and communication. FEATURES:

26 - Concept of matrix and its correlation - Plan as per the voice of the customer - Focus on Customers need and technicalities - WHAT the Customer wants and HOW to do it - It is base tool for quality planning managers WHAT- Customer requirement and priority HOW Technical description and priority Relationship with WHAT and HOW the main area Interrelationships Roof the cause of concern and importance Step I List customer requirement WHAT Decide Primary and secondary needs of the customer Step II List technical descriptions HOW Again primary and secondary is decided Primary Material and Process Subdividing materials and process required Here current materials and process must be considered Step III Relation ship matrix between WHAT & HOW The crucial stage Relating WHAT & HOW Interlinking both primary and secondary No scope for variation Points and grading is done here Gives results of WHAT and HOW Key elements are discussed The Management decides the combination Costing and current process must be considered Step IV Interrelation matrix between HOW s The materials and manufacturing is analyzed Ratings are done Enables the decisions in the process Current process to be considered Technical knowledge is a must for the analyst Step V Our product with others Analyzing competitors products customer expectation Difficult to get data Mismatch in requirements is possible Helps in identifying customer trend Step VI Technical Competitive assessment Analyzing how the similar companies are handling To what they give importance. Impact on technical process to meet the customers request. Step VII Prioritize Technical Descriptors Degree of technical difficulty Most needed change is decided Target value Physical attributes to be considered House of Quality Benefits

27 Orderly way of obtaining information Shorter product development cycle Considerably reduced start up cost House of Quality Benefits

28 Orderly way of obtaining information Shorter product development cycle Considerably reduced start up cost Fewer engineering changes Reduces design process Leads to teamwork Consensus decision Everything is preserved in writing Failure modes and effects analysis (FMEA) is a procedure for analysis of potential failure modes within a system for the classification by severity or determination of the failures' effect upon the system. It is widely used in the manufacturing industries in various phases of the product life cycle and is now increasingly finding use in the service industry as well. Failure causes are any errors or defects in process, design, or item especially ones that affect the customer, and can be potential or actual. Effects analysis refers to studying the consequences of those failures. Step 1: Severity Determine all failure modes based on the functional requirements and their effects. Examples of failure modes are: Electrical short-circuiting, corrosion or deformation. It is important to note that a failure mode in one component can lead to a failure mode in another component. Therefore each failure mode should be listed in technical terms and for function. Hereafter the ultimate effect of each failure mode needs to be considered. A failure effect is defined as the result of a failure mode on the function of the system as perceived by the user. In this way it is convenient to write these effects down in terms of what the user might see or experience. Examples of failure effects are: degraded performance, noise or even injury to a user. Each effect is given a severity number(s) from 1(no danger) to 10(important). These numbers help an engineer to prioritize. If the severity of an effect has a number 9 or 10, actions are considered to change the design by eliminating the failure mode, if possible, or protecting the user from the effect. A severity rating of 9 or 10 is generally reserved for those effects which would cause injury to a user or otherwise result in litigation. Step 2: Occurrence In this step it is necessary to look at the cause of a failure and how many times it occurs. This can be done by looking at similar products or processes and the failures that have been documented for them. A failure cause is looked upon as a design weakness. All the potential

29 causes for a failure mode should be identified and documented. Again this should be in technical terms. Examples of causes are: erroneous algorithms, excessive voltage or improper operating conditions. A failure mode is given a probability number(o),again Actions need to be determined if the occurrence is high (meaning >4 for non safety failure modes and >1 when the severity-number from step 1 is 9 or 10). This step is called the detailed development section of the FMEA process. Step 3: Detection When appropriate actions are determined, it is necessary to test their efficiency. Also a design verification is needed. The proper inspection methods need to be chosen. First, an engineer should look at the current controls of the system, that prevent failure modes from occurring or which detect the failure before it reaches the customer. Hereafter one should identify testing, analysis, monitoring and other techniques that can be or have been used on similar systems to detect failures. From these controls an engineer can learn how likely it is for a failure to be identified or detected. Each combination from the previous 2 steps, receives a detection number(d). This number represents the ability of planned tests and inspections at removing defects or detecting failure modes. After these 3 basic steps, Risk Priority Numbers (RPN) are calculated. Risk Priority Numbers RPN do not play an important part in the choice of an action against failure modes. They are more threshold values in the evaluation of these actions. After ranking the severity, occurrence and detectability the RPN can be easily calculated by multiplying these 3 numbers: RPN = S x O x D This has to be done for the entire process and/or design. Once this is done it is easy to determine the areas of greatest concern. The failure modes that have the highest RPN should be given the highest priority for corrective action. This means it is not always the failure modes with the highest severity numbers that should be treated first. There could be less severe failures, but which occur more often and are less detectable.

30 The FMEA should be updated whenever: At the beginning of a cycle (new product/process) Changes are made to the operating conditions A change is made in the design New regulations are instituted Customer feedback indicates a problem Uses of FMEA Development of system requirements that minimize the likelihood of failures. Development of methods to design and test systems to ensure that the failures have been eliminated. Evaluation of the requirements of the customer to ensure that those do not give rise to potential failures. Identification of certain design characteristics that contribute to failures, and minimize or eliminate those effects. Tracking and managing potential risks in the design. This helps avoid the same failures in future projects. Ensuring that any failure that could occur will not injure the customer or seriously impact a system. Advantages Improve the quality, reliability and safety of a product/process Improve company image and competitiveness Increase user satisfaction Reduce system development timing and cost Collect information to reduce future failures, capture engineering knowledge Reduce the potential for warranty concerns Early identification and elimination of potential failure modes Emphasis problem prevention Minimize late changes and associated cost Catalyst for teamwork and idea exchange between functions Disadvantages If used as a top-down tool, FMEA may only identify major failure modes in a system. Fault tree analysis (FTA) is better suited for "top-down" analysis. When used as a "bottom-up" tool FMEA can augment or complement FTA and identify many more causes and failure modes resulting in top-level symptoms. It is not able to discover complex failure modes involving multiple failures within a subsystem, or to report expected failure intervals of particular failure modes up to the upper level subsystem or system. Additionally, the multiplication of the severity, occurrence and detection rankings may result in rank reversals, where a less serious failure mode receives a higher RPN than a more serious failure mode. The reason for this is that the rankings are ordinal scale numbers, and multiplication is not a valid operation on them. The ordinal rankings only say that one ranking is better or worse than another, but not by how much. For instance, a ranking of "2" may not be twice as bad as a ranking of "1," or an "8" may not be twice as bad as a "4," but multiplication treats them as though they are.

31 Seven tools of Quality I - Pareto chart: Italian economist Vilfredo Pareto Shows on a bar graph which factors are more significant. This method helps to find the vital few contributing maximum impact. Purpose: The purpose of the Pareto chart is to prioritize problems No company has enough resources to tackle every problem, so they must prioritize. Pareto Principle: The Pareto concept was developed by the describing the frequency distribution of any given characteristic of a population. Also called the rule, he determined that a small percentage of any given group (20%) account for a high amount of a certain characteristic (80%). Conclusion: The most important thing in improving quality is to start somewhere, doing something. As you begin using the Pareto chart to decide where your problems are, you will discover many things about your processes and will come because you will know where to improve. II - Flowchart: A technique that separates data gathered from a variety of sources so that patterns can be seen (some lists replace "stratification" with or "run chart"). Purpose: Flow Charts provide a visual illustration of the sequence of operations required to complete a task. A picture of the steps the process undergoes to complete it's task. Every process will require input(s) to complete it's task, and will provide output(s) when the task is completed. Flow charts can be drawn in many styles. Flow charts can be used to describe a single process, parts of a process, or a set of processes. There is no right or wrong way to draw a flow chart. The true test of a flow chart is how well those who create and use it can understand it. Input Process Output I II - Cause-and-Effect Diagrams by Mr. Kaoru Ishikawa at the University of Tokyo Purpose: One important part of process improvement is continuously striving to obtain more information about the process and it's output. Cause-and-effect diagrams allow us to do not just that, but also can lead us to the root cause, or causes, of problems.

32 Constructing the Cause-and-Effect Diagram: Step 1: Select the team members and a leader. Team members knowledgeable about the quality. Team members focus on the problem under investigation. Step 2: Write the problem statement on the right hand side of the page, and draw a box around it with an arrow running to it. This quality concern is now the effect. Step 3: Brain-storming. The team members generate ideas as to what is causing the effect. Step 4: This step could be combined with step 3. Identify, for each main cause, its related sub-causes that might affect our quality concern or problem (our Effect). Always check to see if all the factors contributing to the problem have been identified. Start by asking why the problem exists.

33 Step 5: Focus on one or two causes for which an improvement action(s) can be developed using other quality tools such as Pareto charts, check sheets, and other gathering and analysis tools. Conclusion: Improvement requires knowledge. The more information we have about our processes the better we are at improving them. Cause-and-effect diagrams are one quality tool that is simple yet very powerful in helping us better understand our processes. IV - Check Sheets Purpose: Check sheets allow the user to collect data from a process in an easy, systematic, and organized manner. Data Collection: Before we can talk about check sheets we need to understand what we mean by data collection. This collected data needs to be accurate and relevant to the quality problem. The first is to establish a purpose for collecting this data. Second, we need to define the type of data that is going to be collected. Measurable data such as length, size, weight, time,...etc., and countable data such as the number of defects. The third step is to determine who is going to collect that data and when it should be collected. V- Histograms Purpose: To determine the spread or variation of a set of data points in a graphical form. It is always a desire to produce things that are equal to their design values. Histograms: A histogram is a tool for summarizing, analyzing, and displaying data. It provides the user with a graphical representation of the amount of variation found in a set of data. Seven New Management and Planning Tools In 1976, the Union of Japanese Scientists and Engineers (JUSE) saw the need for tools to promote innovation, communicate information and successfully plan major projects. A team researched and developed the seven new quality control tools, often called the seven management and planning (MP) tools, or simply the seven management tools. Not all the tools were new, but their collection and promotion were. The seven MP tools, listed in an order that moves from abstract analysis to detailed planning, are: 1. Affinity diagram: organizes a large number of ideas into their natural relationships. 2. Relations diagram: shows cause-and-effect relationships and helps you analyze the natural links between different aspects of a complex situation.

34 3. Tree diagram: breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics. 4. Matrix diagram: shows the relationship between two, three or four groups of information and can give information about the relationship, such as its strength, the roles played by various individuals, or measurements. 5. Matrix data analysis: a complex mathematical technique for analyzing matrices, often replaced in this list by the similar prioritization matrix. One of the most rigorous, careful and time-consuming of decision-making tools, a prioritization matrix is an L- shaped matrix that uses pairwise comparisons of a list of options to a set of criteria in order to choose the best option(s). 6. Arrow diagram: shows the required order of tasks in a project or process, the best schedule for the entire project, and potential scheduling and resource problems and their solutions. 7. Process decision program chart (PDPC): systematically identifies what might go wrong in a plan under development. Affinity Diagram This tool takes large amounts of disorganized data and information and enables one to organize it into groupings based on natural relationships. It was created in the 1960s by Japanese anthropologist Jiro Kawakita. Interrelationship Diagraph This tool displays all the interrelated cause-and-effect relationships and factors involved in a complex problem and describes desired outcomes. The process of creating an interrelationship diagraph helps a group analyze the natural links between different aspects of a complex situation. Tree Diagram This tool is used to break down broad categories into finer and finer levels of detail. It can map levels of details of tasks that are required to accomplish a goal or task. It can be used to