Contents. Foreword (v) Preface (vii) About the Author (ix) Acknowledgement (xi) Abbreviations (xxix) (xiii)

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1 Foreword (v) Preface (vii) About the Author (ix) Acknowledgement (xi) Abbreviations (xxix) CHAPTER 1 TQM An Overview 1.1 What is Quality? Quality Definitions Quotes on Quality The Scale of Quality The Paradigm of Total Quality Management How can Effective TQM change the Situation? Quality of Design vs. Quality of Conformance Changing Criteria of Quality The 5 Approaches to Quality PDCA Cycle When to Use the PDCA Cycle Variations of PDCA Terminology Deming s Fourteen Points to Improve Quality Deming System of Profound Knowledge Juran Quality Trilogy Some other Related Abbreviations that can be cited here Conclusion Further Reading 17 CHAPTER 2 Evolution of TQM 2.1 Introduction The Historical Development of TQM Operative Quality Control Foreman Quality Control Inspection Quality Control Statistical Quality Control Total Quality Control Quality Management in Japanese Scenario Post-Deming/Juran Quality Scenario Conclusion Further Reading 24 CHAPTER 3 Quality Gurus 3.1 Wilfred Pareto Walter A. Shewhart Edwards Deming Joseph Juran Armand Feigenbaum Prasanta Chandra Mahalanobis Shigeo Shingo Taichi Ohno Kaoru Ishikawa Genichi Taguchi Phillip Crosby Yoshio Kondo Shigeru Mizuno Yoji Akao Noriaki Kano Masaaki Imai Claus Moller Blanton Godfrey 37 (xiii)

2 (xiv) Contents 3.19 Clarence Irwing Lewis David Garvin Dorian Shainin Edward de Bono Eliyahu M Goldratt Eugene L Grant Bill Conway Yasutoshi Washio Further Reading 41 CHAPTER 4 Leadership and TQM 4.1 What is Leadership? Definitions for Leadership Theories of Leadership Leadership Categories Leadership and Goal Setting Characteristics of Quality Leaders Warren Bennis Principles of Great Teams The Seven Habits of Highly Effective Leaders The Ten Commandments of cgmps (Current Good Manufacturing Practices) Fifty Insights for CEO s Fifteen Thoughts of Chanakya Wilkie s Leadership Qualities Leadership Responsibilities Moral Leadership Contributors for Moral Leadership Role of Top Management in Quality Management Leadership and Knowledge of Psychology Case Studies on Leadership Qualities Some Quotations on Leadership Conclusion Further Reading 61 CHAPTER 5 Scientific Management 5.1 TQM and Scientific Management The Industrial Revolution Evolution of Management Thinking Phases of Growth of Management Thinking Early Pioneers in Management Thinking Pre-nineteenth Century Concepts of Scientific Management Specific Aims of Scientific Management Advantages of Scientific Management Misconceptions of Scientific Management Resistance to Scientific Management Conclusion Further Reading 68 CHAPTER 6 System Approach to Management Theory 6.1 Development of System Approach What is a System? Definition of a System Types of Systems Components of a System Input Conversion Process Output Elements of Control in System Approach 74

3 (xv) 6.7 Environment Open and Closed Systems Systems and Subsystems Relationship between the Systems and Subsystems Combination of Subsystems The Management Cube Planning Pyramid Decision Theory Problem Analysis vs. Decision Making Characteristics of Decision Making Situations under whichh Decisions are taken Classification of Decisions Different Approaches to Decision Making Bias in Decision Making Decision Tree Systematic Decision Making Information Flow Summary of the Features of Management as a System Conclusion Further Reading 90 CHAPTER 7 Strategic Planning 7.1 Introduction Businesss Plans Strategic Planning Methodologies for Strategic Planning Situational Analysis Hoshin Kanri( ) Nichijo Kanri Definitions of Strategic Planning Strategic Planning Elements Besterfield s Seven Steps of Strategic Planning Strategy Development and Strategy Deployment Effectiveness of the Strategic Planning The Four Perspectives for Translating Strategy into Operating Process Quality Planning Contingency Theory Organizingg for Strategic Planning Leavitt's Diamond Mission and Vision Statements Caution in Application of Strategic Planning Conclusionn Further Reading 105 CHAPTER 8 Cost of Quality 8.1 Introduction Forces Leading to the Concept The Categories of Quality Costs Hidden Quality Costs Cost of Lost Opportunities Service Costs Tangible and Intangible Costs Visible Costs and Invisible Costs Quality Cost Data Case Studies on Research done in the Area of Quality Costing Suggested Model for Quality Costing Sources for Collecting Quality Cost Data 115

4 (xvi) 8.13 Uses of Quality Cost Analysis Pareto Principle Quality Conformance Level Top Management Role in containing Quality Costs Quality and Safety Responsibility of Top Management for Product Safety Case Study on Quality Cost Conclusion Further Reading 120 CHAPTER 9 Organisation for TQM 9.1 Why Organization? What are to be Organized in the Quality Function? Principles of Organization Classes of Organizational Structures Organization for the Quality Function Centralised Organization Decentralized Organization Matrix Type of Organization Factors shall be Considered for Deciding the Manpower Requirement Size and Type of an Organization Conclusion Further Reading 133 CHAPTER 10 Customer Satisfaction 10.1 Sellers Market vs. Buyers Market Customer is the King Position of the Customer in an Organization Customer s Perception of Quality Types of Customers Internal Customers Customer Satisfaction Customer Delight Kano Model of Customer Satisfaction American Customer Satisfaction Index Customer Retention Tips for Customer Retention Profitability Associated with Customer Retention Customer Loyalty Factors for Establishing Loyal Customers Customer Attrition How Companies Lose their Customers Customer Surveys Customer and Quality Service The Key Elements of Service Quality Customer Retention vs. Employee Morale Action to be taken to Handle Customer Complaints Healthy Practices by Customer Focused Organizations Customer Code of Ethics to be Followed Recently held International Quality Symposia Conclusion Further Reading 152 Contents

5 (xvii) CHAPTER 11 Total Employee Involvement 11.1 What is Total Employee Involvement? Motivation Theory X and Theory Y Maslow s Theory of Hierarchy of Basic Needs Herzberg s Two Factor Theory Achieving a Motivated Workforce Employee Involvement Strategies Teamwork The Three Elements of Teamwork Categories of Teams based on Natural Work Units The Basic Functions of the Team Characteristics of Successful Teams Some Nicknames for the Non Conducive Team Members Empowerment Types of Supervisors as per Harvard Business School Study Participative Management Resistance to Change Types of Changes that usually meet Resistance Reasons for Resistance Some Criticisms Encountered by Industrial Engineers from Higher-Ups Effect of Worker Representation on Productivity How to Successfully Implement a Change Theodore Kinni s 8 Tips for Achieving Motivated Workforce Benefits of Employee Involvement Role of Senior Management in Employee Involvement Recognition and Rewards Forms of Recognition and Rewards Criteria for Effective Recognition of Employees Advantages of Effective Rewarding Systems Conclusion Further Reading 172 CHAPTER 12 Supplier Partnership 12.1 Introduction Traditional vs. TQM Oriented Vendor Relations Partnership Definition Strategic Partnership Principles of Customer/Supplier Relations The Three Primary and Necessary Requirements for Partnering Multiple Supplier Partnership Advantages of Supplier Partnership Supplier Selection Vendor Rating Criteria for Evaluation The Partnership Indices Supplier Certification 185

6 (xviii) Contents Benefits of Supplier Rating Lean Inspection through Supplier Partnership Vendor Managed Inventory Retailer Supplier Partnership Impact of Supplier Partnership on Inventory Norms Conclusion Further Reading 188 CHAPTER 13 Total Productive Maintenance 13.1 Introduction The Meaning of TPM Evolution of TPM Definitions of TPM TPM is an Extension of TQM TPM Starts with Cleaning The Seven Types of Abnormalities The Eight Pillars of TPM The Five Zeros of TPM Why Operatives Fail to Adapt TPM as a Way of Life? What can TPM Achieve? Overall Equipment Effectiveness (OEE) The Six Losses from Poor OEE The Three Levels of Autonomous Maintenance in TPM The Five Goals of TPM Procedure for the Implementation of TPM Maintenance Work Sampling Conclusion Further Reading 204 CHAPTER 14 Quality Awards 14.1 Why Quality Awards? International Quality Awards International Quality Award Trio Deming Application Prize Qualifications and Criteria Specified by JUSE for the Deming Prize Check List for Deming Application Prize Malcolm Baldrige National Quality Award Criteria for the Performance Excellence Framework Organizations/Individuals Involved in the Awarding Process European Quality Prizes Categories of the Award Australian Business Excellence Award Canadian Award for Business Excellence (CABE) Rajiv Gandhi National Quality Award Assessment Criteria Eligibility of Organizations for this Award Golden Peacock National Quality Award IMC-Ramakrishna Bajaj National Quality Award (IMCRBNQA) China Quality Award 224

7 (xix) National Quality/Business Excellence Awards in different Countries Basic Differences among the Award Trio Conclusion Further Reading 225 CHAPTER 15 Quality Circles 15.1 What is a Quality Circle? Origin of Quality Circles The American Scenario The Indian Scenario Significance of Quality Circles Objectives of Quality Circles Nature of problems that can be Solved by Quality Circles Ten Conditions for Successful Quality Circles Road Map to be followed in a Quality Circle Meeting Characteristics of an Effective Quality Circle Meeting Structure of a Quality Circle Conclusion 239 CHAPTER 16 Fundamentals of Statistics Part I 16.1 Definition of Statistics Role of Statistics in Analysis Limitation of Statistics Elements of Statistical Techniques Methods of Collecting Data Data Classification Data Presentation Population vs. Sample Population Sample Attributes and Variables Graphs Principles of Graph Construction Class Interval Class Limits Class Mark Single Dimensional Diagrams Bar Charts Simple Bar Charts Component Bar Charts Percentage Component Bar Chart Multiple Bar Charts Dimensional Diagrams Pie Diagrams Doughnut Diagrams Pictograms Innovative Graphs Frequency Graphs Histograms Frequency Polygon Frequency Curve Ogive Z Chart Lorenz Curves Application of Lorenz Curves Frequency Distribution Central Tendency Measures of Central Tendency Mean or an Average Arithmetic Mean Characteristics of Arithmetic Mean 258

8 (xx) Contents Advantages of Arithmetic Mean Disadvantages of Arithmetic Mean Geometric Mean, Quadratic Mean and Harmonic Mean Median Definition Calculation from Ungrouped Data Calculation from Grouped Data Characteristics of Median Advantages of Median Disadvantages of Median Mode Definition Characteristics of Mode Advantages of Mode Disadvantages of Mode Dispersion Range Characteristics of Range Mean Deviation Characteristics of Mean Deviation Computation of Mean Deviation Standard Deviation Computation of from Ungrouped Data Computation of from Grouped Data Characteristics of Standard Deviation Skewness Kurtosis Conclusion Further Reading 266 CHAPTER 17 Fundamentals of Statistics Part II 17.1 Correlation Scatter Diagram Coefficient of Correlation Types of Correlation Regression Relation between Correlation and Regression Sampling Theory Introduction Random Number Tables The Sampling Process Sampling Methods Factors for Selection Frequency of Sampling Estimating the Sample Size Factors that Influence the Sample Size Include Probability Laws of Probability The Law of Addition Mutually Exclusive vs. Mutually Non-Exclusive Law of Multiplication Law of Conditional Probability Conclusion Further Reading 278 Chapter 18 Process Capability 18.1 Statistical Process Control 280

9 (xxi) 18.2 Why Control Charts? Reasons for Variations Process Capability Process Capability Index One Sided and Two Sided Specifications Taguchi Capability Index Recommended Minimum Values of C pk Conclusion Further Reading 284 Chapter 19 Inward Inspection 19.1 Definitions of Inspection Objectives of Inspection Steps Involved in Inspection Classifications of Inspection Methods Source Inspection Inward Inspection Single and Double Sampling Inspection In Process Inspection and Final Inspection Tools of Inspection Normal Jobs of a Quality Control Inspector Requirements of an Inspector Conclusion Further Reading 295 Chapter 20 Seven Traditional Tools of TQM 20.1 Introduction Check Sheets and Checklists Histogram or Bar Graph Scatter Diagram Control Chart Pareto Principle Cause and Effect Diagram Categories of Cause and Effect Diagrams Basic Illustrations of Cause and Effect Diagrams Flow Charts Symbols used in Flow Charts The Benefits for Process Flowchart Operation Process Chart Flow Diagram Conclusion Further Reading 313 Chapter 21 The Seven Modern Tools of TQM 21.1 The Seven Traditional Tools of TQM The Seven Modern TQM Tools Affinity Diagram (KJ Method) Guidelines How to Conduct an Affinity Sort Checklist Interrelationship Digraph (ID) Objectives of the Interrelationship Digraph Procedure for Constructing an Interrelationship Digraph Tree Diagram Event Tree Analysis Fault Tree Analysis Prioritization Matrix Simple Prioritization Matrix vs.weighted Prioritization Matrix 328

10 (xxii) Contents When to use a Prioritization Matrix The 4 Basic Steps Involved in Creating a Prioritization Matrix Symbols used in the Prioritization Matrix WSA s 6 Step Detailed Procedure to Create a Prioritization Matrix Process Decision Program Chart (PDPC) Steps in Drawing a PDPC Activity Network Diagram Single Minute Exchange of Dies The Factors to be Borne in Mind before Working for SMED Internal and External Activities Factors Stressed upon by Shigeo Shingo, the Originator of SMED Benefits of SMED per Shigeo Shingo Force Field Analysis Criteria Rating Form Models that can be used to Represent a Problem Other Analytical Testing Methods for Safety Conclusion Further Reading 343 Chapter 22 Kaizen and Continuous Improvement 22.1 What is Kaizen? Significance of Kaizen in Continuous Improvement Why Continuous Improvement? Some Illustrations of the Continuous Process Improvements Kaizen is the Umbrella Requirement s for Continuous Improvement Industrial Engineering Principles vs. Kaizen Principles Importance of Creativity Creative Methodology The Principles of Creativity Divide and Conquer Set Quotas and Deadlines for Yourself Let Loose Your Mind Blue Sky Thinking Two Heads are Better than One Question Each and Every Detail Brain Storming When to use Brainstorming Freewheeling vs. Round Robin Techniques of Brainstorming Six Thinking Hats Primary and Secondary Questions Develop Define Install Maintain 360

11 (xxiii) Checklist for Operation Examination Other Continuous Improvement Techniques Case Studies on Kaizen Applications Some Quotations on Change Conclusion Further Reading 365 CHAPTER 23 5 S 23.1 Introduction Explanation of the 5S s Seiri (Structurise - Distinguish between the necessary and the unnecessary - Adopt Red tagging) Seiton - Systemize (or PEEP, A Place for Everything and Everything in its Place) Seiso (Shine, Sweep or Sanitize Look for Ways to Keep the Workplace Neat) Seiketsu (Standardize Keep the Workplace as per the Established Standards) Shitsuke (Sustain the 5S Practices by Work Discipline Follow the Rules) Significance of Shitsuke in 5S Step Procedure for Implementing 5S S Audit Sheet An Easy Way of Remembering the 5S Terms Conclusion Further Reading 380 CHAPTER 24 Six Sigma 24.1 Introduction Definitions of Six Sigma History of Six Sigma Required Skills for Black Belted Experts in Six Sigma The Concept of Six Sigma in the Context of TQM Origin of this Confusion between Statistical 6 and TQM Six Sigma Six Sigma According to General Electric The Values of the Defect Percentages Methodologies for Six Sigma DMAIC Methodology for Six Sigma DMADV Detailed Methodology of DMAIC Define Measure Analyze Improve Control Organizing for Six Sigma Software used for Six Sigma The Case Study of Mumbai Dabbawalas Conclusion Further Reading 396 CHAPTER 25 Terminology used in Japanese Management Practices 25.1 Introduction Some of the Terminologies Cited in this Chapter 398

12 (xxiv) Contents 25.3 History of Development of Japanese Management Practices Quality Circles Kaizen Genchi Genbutsu Monozukuri and Hitozukuri Nemawashi Heijunka Mu Checklists Four Wives and One Husband CREW Management Objectives of Factory Management Zu s Poka Yoke Andon and Hanedashi Jidhoka Chaku Chaku S Six Sigma Gemba Walk Warusa Kagen Single Minute Exchange of Dies Just in Time Kanban Hoshin Kanri Nichijo Kanri Kata Total Productive Maintenance Pecha-kucha Dakara Nani Kanso, Shizen and Shibumi Okya Kusoma Conclusion Further Reading 410 CHAPTER 26 Failure Modes and Effects Analysis 26.1 Uncertainties during Development Failure Modes and Effects Analysis History of Development of FMEA Multiple Causes and Effects involved in FMEA Types of FMEA s When to use FMEA Basic Terms of Reference in FMEA Failure Mode Failure Cause Failure Effect Severity Factor Probability of Occurrence Ease of Detection Risk Priority Number Procedure for FMEA Responsibility for Action Benefits of FMEA FMEA Software Conclusion Further Reading 429 CHAPTER 27 Reliability Engineering 27.1 Functional Reliability General causes for Poor Reliability Distinguishing between Quality and Reliability What is RBM? Bath Tub Characteristics Basics of RBM Principles of Reliability Engineering 436

13 (xxv) 27.8 House of Reliability Types of Failures Severity of Failures Statistical Distribution Curves of Failures Probability Density Function Procedure of Establishing Reliability based Product Quality Reliability Prediction Ingredients for Reliability Prediction Purposes of Reliability Prediction Monte Carlo Simulation Markov Analysis Conclusion Further Reading 445 Chapter 28 Business Process Reengineering 28.1 History of Business Process Reengineering Definitions of Business Process Reengineering (BPR) Business Process Reengineering as a TQM Technique The Role of Information Technology Methodology for BPR Process Reengineering Life Cycle Approach for BPR Criticism against BPR Satisfactory Underperformance The Sweet and Sour Cycle Business Process Management (BPM) Conclusion Further Reading 456 CHAPTER 29 Benchmarking 29.1 What is Benchmarking? Definitions for Benchmarking Types of Benchmarking Some of the Parameters that can be Benchmarked General Concept of Benchmarking Phases of Benchmarking Stage of Benchmarking Different approaches to Benchmarking Tips for the Consultants Costs of Benchmarking Advantages of Benchmarking Limitations of Benchmarking Professional Associations and Institutions Exclusively for Benchmarking Conclusion Further Reading 467 Chapter 30 Quality Function Deployment 30.1 Why Quality Function Deployment? Definitions of QFD History of QFD Issues that would be addressed by QFD The 4 Phases of QFD Building a House of Quality Voice of the Customer (VOC) How to get Information from the Customers? Voice of the Organization (VOO) Framework for House of Quality 479

14 (xxvi) Contents Building up of House of Quality Procedure for QFD Benefits of QFD Conclusion Further Reading 483 Chapter 31 Quality Loss Function 31.1 What is Quality Loss? Precision vs. Accuracy History of the Development of the Concept of the Loss Function Taguchi Philosophy Quality Loss Function Off-line Quality Control Rule for Manufacturing Design of Experiments Outer Arrays Management of Interactions Robustification Noise Variables Case Study Conclusion Further Reading 490 Chapter 32 Design for Quality 32.1 Design for Quality Design for Six Sigma Acronyms for Methodologies Akin to DMAIC DMADV Define Phase Measure Phase Analyze Phase Design Phase Verify Phase Scope of DFSS Six Sigma vs Design for Six Sigma Benefits of DFSS Conclusion Further Reading 499 Chapter 33 Value Engineering 33.1 What is Value Engineering? Definitions of Value Engineering History of Value Engineering What is Value? Value Analysis Objectives of Value Engineering Typical Benefits of Value Engineering Projects Functions of a Product as the Customer wants it Functional Value of a Product vs Other Values Methodology of Value Engineering General Phase Information Phase Function Phase Investigation and Creative Phases Evaluation Phase Recommendation and Follow-up Phases DARSIRI Methodology for Value Analysis Function Analysis System Technique (FAST) Case Study Conclusion Further Reading 515 Chapter 34 ISO 9000 Quality Systems 34.1 Need for Quality Management Systems 517

15 (xxvii) 34.2 International Organization for Standardization ISO 9000 Series of Quality Standards Evolution of ISO 9000 Family of Standards ISO/TS QS-9000 Series Requirements as Specified by ISO Bureau of Indian Standards SOP - Standard Operating Procedures Specific Features of ISO Steps to be followed for getting ISO Certification Benefits of ISO & TS Quality Systems ISO 9000: Revision of ISO 9000 Series The Six Stages of the Release of the 2015 Revision Revision of ISO 9000 in Conclusion Further Reading 529 Chapter 35 ISO Quality Systems 35.1 Introduction Evolution of the ISO Standards on Environmental Issues Global Environmental Issues Magna Carta on Environment International Initiatives on Environmental Issues Evolution of ISO Series Formation of TC What is ISO 14001? Water Footprint The Benefits of ISO Engineer s Role in Environment Protection Principles of Green Design Basic Approaches for Resolving Environmental Problems Guidelines for Social Responsibility R s of Wastage Utilization Conclusion Further Reading 542 Annexure I 543 Bibliography 563 Index 569