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Production and Operations Management MGT613

Lesson 26

TQM QUALITY

In this lecture we will look into detail TQM. We will initially focus on Six Sigma concept. We will try

to understand six sigma concept in terms of managerial and technical perspective. We will also try to

understand the Deming Wheel of Quality and seven common tools of quality. And last but not the least

we will also try to understand the concepts of statistical process control and benchmarking with respect

to quality.

ISO CERTIFICATIONS

Quality Certification ensures that the organization has been able to achieve TQM philosophy. The two

popular certifications which are pursued by the organizations include ISO 14000 and ISO 9000.

1. ISO 14000: Is a set of international standards for assessing a company's environmental

performance.

2. ISO 9000: Is a set of international standards on quality management and quality assurance,

critical to international business.

SIX SIGMA

Statistically speaking a process is said to be in Six Sigma stage if it does not have more than 3 or 4

defects per million. Most of the organizations, measure their quality program in terms of Six Sigma.

Conceptually the Six Sigma Program is designed to reduce defects and requires the use of certain tools

and techniques.

Six Sigma Programs are always directed towards quality improvement, cost cutting and time saving. Six

Sigma Programs are employed in:

Design

Production

Service

Operation management

Inventory management

Delivery

Six Sigma Management concepts find greater appreciation and application in recent times. The Six

Sigma Management characteristics include:

1. Providing strong leadership.

2. Defining performance merits.

3. Selecting projects likely to succeed.

4. Selecting and training appropriate people.

Six Sigma Technical aspects form a part and parcel of managerial strategy and aids in cost cutting and

defect minimization. The Technical aspects of Six Sigma include

Improving process performance

Reducing variation

Utilizing statistical models

Designing a structured improvement strategy

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Six Sigma Team

Six Sigma Teams are formed for implement of Six Sigma in true spirit keeping in mind both managerial

as well as technical aspects.

Top management

Program champions

Master "black belts"

"Black belts"

"Green belts"

Six Sigma Process

Six Sigma Process has various stages often organizations combine one or two stages for better

monitoring and control purposes. Quality Experts normally identify the following 5 stages.

1. Define

2. Measure

3. Analyze

4. Improve

5. Control

Obstacles to Implementing Six Sigma ( TQM) includes the lack of:

1. Company-wide definition of quality.

2. Strategic plan for change.

3. Customer focus.

4. Real employee empowerment.

5. Strong motivation.

6. Time to devote to quality initiatives.

7. Leadership.

8. Poor inter-organizational communication.

9. View of quality as a "quick fix".

10. Emphasis on short-term financial results.

11. Internal political and "turf" wars.

Criticisms of TQM

Blind pursuit of TQM programs.

Programs may not be linked to strategies.

Quality-related decisions may not be tied to market performance.

Failure to carefully plan a program.

BASIC STEPS IN PROBLEM SOLVING

The problem solving method is more or less the same what we covered in the initial part of our

semester, we always try to follow the same procedure or method which is to analyze the problem and

then generate pragmatic solutions and implement the best solution.

1. Define the problem and establish an improvement goal.

2. Collect data

3. Analyze the problem

4. Generate potential solutions

5. Choose a solution

6. Implement the solution

7. Monitor the solution to see if it accomplishes the goal.

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PROCESS IMPROVEMENT

A systematic approach to improving a process would always result in process improvement. Following

are the common approaches for improving the process.

1. Process mapping

2. Analyze the process

3. Redesign the process

Process mapping consists mainly of collecting information about the process, identifying

the process for each step and determining the inputs and outputs.

Analyze the process: Ask questions about the process including process flow being logical,

any activities or steps being missing or identification of duplication activities.

Questions about each step which includes is a particular step necessary, does the step adds

value, does it generates waste, could the time to perform the step be reduced, could two or

more steps be combined.

Redesign the process: takes a fresh approach to solve an issue on hand.

THE PDSA CYCLE (SHEWHART CYCLE/DEMING WHEEL)

The concept of the PDCA Cycle was first introduced by Walter Shewhart, the leading statistician, who

also developed statistical process control in the Bell Laboratories in the US during the 1930's. It is often

referred to as `the Shewhart Cycle'. It was taken up and promoted very effectively from the 1950s on by

the famous Quality Management authority, W. Edwards Deming, and is consequently known by many

as `the Deming Wheel'. It is a continuous process and enables the operations manager to check the work

at various stages.

The PDCA Cycle is a checklist of the four stages which you must go through to get from `problem-

faced' to `problem solved'.

The four stages of PDCA/Shewhart Cycle or Deming Wheel are:

1. PLAN

Study & Document the existing process.

Collect data to identify problems.

Survey data and develop a plan for improvement.

Specify measures for evaluating the plan.

2. DO

Implement the plan on a small scale.

Document any changes made during this phase.

Collect data systematically for evaluation.

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3. CHECK

Evaluate the data collection during this phase.

Check how closely the results match the original goals of the plan phase.

4. ACT

If the results are successful, standardize the new method and communicate the new

method to all people associate with the process.

Implement training for the new method.

If results are unsuccessful, revise the plan and repeat the process or cease this project.

SEVEN BASIC TOOLS

1. Check Sheet

2. Flow Chart

3. Histogram

4. Pareto Chart

5. Scatter Diagram

6. Cause & Effect Diagram

7. Statistical Process Control

Quality Circles

Team approach

List reduction

Balance sheet

Paired comparisons

Benchmarking Process

Identify a critical process that needs improving.

Identify an organization that excels in this process.

Contact that organization.

Analyze the data.

Improve the critical process.

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