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MG 1401 TOTAL QUALITY MANAGEMENT

          4. T.Q.M Tools
             2010-2011



                           C. Coomarasamy
                           Professor, TEC
TQM Tools

1.BENCH MARKING (BM)
  - Reasons
  - Process
2.QUALITY FUNCTION DEPLOYMENT (QFD)
  - House of quality
  - Process
  - Benefits
  - Taguchi Quality Loss Function
3.TOTAL PRODUCTIVE MAINTENANCE (TPM)
  - Concept
  - Improvement needs
4. FAILURE MODE AND EFFECT ANALYSIS (FMEA)
  - Stages
BENCH MARKING (BM)
• In civil    - the process of gathering
                information about the level
• In military- the process of gathering
                information about the enemy- spying
• In cricket - the process of gathering
                information about the Performance-
                South Africa, ( next- India, Australia)
• In police - the process of gathering
               information about the people and their activities-

                   - intelligence or vigilance
• In industries- the process of gathering
              information about the industrial activities
                   - industrial intelligence
BENCH MARKING (BM)
• In the Quality world the process of gathering
   information about the
  “best quality product manufacturing company”
    in order to copy or follow or excel- is known as
    Bench marking.

Foundation – is to gather data- from either
  I or E sources –
  friendly or unfriendly- for
  future action to improve
Hence BM is the systematic method / approach or

popular TQM tool for

      best practices,

          innovative ideas and

               highly effective operating procedures
BENCH MARKING (BM)
It considers the experience of others, and uses it
It is a continuous process of
    identifying,
       understanding, and
           adopting the
                best practices and
                process that will
           lead to
        superior performance
Concept : BM measures
    performance against that of

       best-in-class organizations,- determines

           how the best in class
           achieve those
       performance levels, and uses the
   information as the basis for
       adaptive creativity and
           breakthrough performance
Key elements: TWO
                                      bm
   1.  Units of measure- called metrics- expressed numerically
   2. Managers understand why their performance differs ?
       Bench Markers must develop a
          thorough, in-depth knowledge of both their

                 own processes & the

                      processes of
What is our performance level ?      What are other’s performance levels ?
How we do it ?                       How did they get there ?
                             best in class organizations

An understanding of the                               BM is about
differences                                           setting goals and
allows                          Creative               objectives and
managers to organize                                  about meeting them by
                                adaption
their                                                  improving processes.
 improvement efforts to
meet the goal.
                          Breakthrough performance
BENCH MARKING (BM)
Reasons :
1. Helps to
     develop their Strengths and

          reduce Weaknesses
2. Makes in total to be
     competitive by understanding the

           competitive ideas from proven practices
3. Time and cost efficient as
              process involves imitation and adaptation rather
      than
         pure invention. BM partners provide – working model of an
             improved process- which reduces some of planning,
                 testing & proto typing effort
4. Inspires managers and organizations to
                      compete
5. Allows goals to be set based on
       external information
BENCH MARKING (BM)

6.Guides in adopting the best practices in the industry
           as a total solution to achieve

          superior performance
7. Gives a better perception in defining and understanding the
      customer requirements to be
           competent in the market consistently
8. Establishes effective goals and objectives for
      credible performance
9. Establishes the consistent monitoring to ensure
      continuous improvement
10. Enhances innovation

The primary weakness
- best-in-class performance is a moving target
BENCH MARKING (BM)
Typical steps in a benchmarking process
1. Decide what to BM,
       Scope definition-

        Choose benchmark partner         - Decide objectives
2. Understand current performance - Assess the current level
3. Plan-                          - Plan the strategy
                                    Determine measurement
     methods,
       units,

           indicators
4. Study others-                   - Study - competing Os
                                                Data
     collection
5. Learn from the data-            - Analyze the gap
                                   Analysis of the

         discrepancies
6. Use the findings-               - Prepare & Execute
                                      Present the results and
                   action plan
BENCH MARKING (BM)

Types - classification
Based on the object to be benchmarked
                      1. Product, 2.Performance, 3.Process,
  4.Strategic- BM
Based on the Organizations, against whom one is BM:
   1. Internal BM

(benchmark within a corporation, for example between business units)
   2. Functional BM

(benchmark similar processes within an industry)
   3.Competitive BM
(performance or processes with competitors)
   4. Generic -Best-in-class BM

(comparing operations between unrelated industries)
   5. Relationship-Collaborative BM

(carried out collaboratively by groups of companies)
BENCH MARKING (BM)
Benefits
• strength and weakness are well understood
• best practices adopted- than invention-
       (saving money & time)
• performance measures are compared-
  (return on assets, cycle time, proportion of defects, time spent on
  administrative functions)
• focus on process and performance measures-
  (professionalizing the processes not on products or for improving
  communication-
  So it identifies the superior for the chosen measures)
• helps in setting realistic new performance targets and
   make the people to do things
     than others do
• enables to rebuild or redesign their products/services
      (to meet the customer expectations)
• helps in training and human resources
  (Employees come forward to fill the gap to achieve the
  organizational goals)
• improves synergic effect between the activities of the
  organization through BM
BENCH MARKING (BM)
Limitations
• comparing performances and processes with
    'best in class' is important – it is not a static one - a moving
  target- should ideally be done on a continuous basis is a
           tough process that needs a lot of commitment to
  succeed and time-consuming and
               expensive.
• more than once BM projects end with the
    'they are different from us' syndrome or
             competitive sensitivity prevents the
               free flow of information that is necessary.
• it can not replace all
  quality improvement and
  management development programs
• it will not ensure any instant return
  - requires necessary infrastructure,
       training and TQM practices
• requires a basic corporate culture,
    information system process control and
     HRD programs in practice
The Essence of Benchmarking
             .
Benchmarking
                            process
 Benchmarking
   Standards                             Benchmark practices

Benchmark Gap
►How much                               How to close the Gap
► Where                                 ►Improved Knowledge
►When                                   ►Improved Practices
                                        ►Improved Process


                      Management
                      Commitment

                      Organization
                     Communication

                Employee
                     Participation
.
The power of benchmarking:
How looking around at others can help you raise more money for your cause
   .




                  Stage 5
                Disseminate
              improvements                      Stage 1
               and/or review                   Agree best
                action plan                     practice




         Stage 4
          Review                                      Stage 2
       achievement                                 Assess against
         towards                                     best price
       best practice
                                  Stage 3
                               Produce and
                                implement
                                action plan
                                 aimed at
                                 achieving
                               best practice
QUALITY FUNCTION DEPLOYMENT (QFD)

 Introduction
• QFD is a technique for
      requirements engineering borne out of the

             quality movement.
•   it did not originate as a
        requirements engineering technique, but rather as a
             systematic method for translating

                customer requirements into

                       specific product design targets.
  hence - sometimes called as “customer driven engineering”
• the first application of QFD was at
    Mitsubishi, Heavy Industries Ltd., Kobe shipyard, Japan in
            1972 and then

              Toyota Auto body uses QFD in 1978.
• including the customer is one of the
QUALITY FUNCTION DEPLOYMENT (QFD)
Definition :1
• First, from the American Supplier Institute (ASI)
  A system for translating customer requirements into
  appropriate company requirements at each stage from
  research and development to engineering and
  manufacturing to marketing/sales and distribution.
  [ASI, 2001].
• This definition emphasizes that QFD is
  more than the House of Quality.
   (the House of Quality, or quality chart, is the primary tool for QFD
  practitioners to use for recording and analyzing requirements and
  design targets.)
• The ASI definition mentions
    "each stage from research ... to marketing/sales and
  distribution."
• The breadth of the
            QFD process, therefore,
                   is larger than
                 recording and analyzing requirements.
QUALITY FUNCTION DEPLOYMENT (QFD)
Definition: 2
• The second definition is from Akao, generally recognized as the
  founder of QFD:
  A method for developing a design quality aimed at
       satisfying the consumer and then translating the
  consumer's demand into design targets and major quality
  assurance points to be used throughout the production
  phase. [Akao, 1990].
• This definition also emphasizes the broad use of QFD in phases
  beyond requirements elicitation, specifically mentioning
  "to be used throughout the production phase."
• Both of these definitions include the term
  "consumer" or "customer."
• This emphasizes how important the customer is to the QFD
  process.
• The customer plays a central role in QFD.
• For us in the early 2000's, this is hardly a revolutionary idea,
  but back in the 1960's, this was a novel and intriguing concept.
• Much of today's customer awareness comes from the
  quality movement, and QFD was one of the techniques that lead
  this movement into North America.
QUALITY FUNCTION DEPLOYMENT (QFD)
Objectives/ advantages:
• improve engineering knowledge, productivity, and
     quality and reduced costs,
         product development time, and

               engineering changes
• focuses on
  customer expectations or requirements, often referred to as
  the voice of the customer
     ( dissatisfiers, satisfiers, exciters/ delighters )
• employed to translate
   customer expectations, in terms of
     specific requirements, into
        directions and actions, in terms of

            engineering or

                technical characteristics that can be
QUALITY FUNCTION DEPLOYMENT (QFD)

*Product Planning,
  *Part development,
     *Process Planning,
        *Production Planning,
           *Service industries

•   helps identify new quality technology and

     job functions to carry out
         operations
• provides a historic reference to
     enhance future technology and

         prevent design errors
• enables the design phase to concentrate on the
      customer requirements, thereby
           spending less time on
                design and modifications
QUALITY FUNCTION DEPLOYMENT (QFD)
• the saved time has been estimated at

       1/3 to ½ of the time taken for

          redesign or modifications using traditional means
• this saving means (time) reduced development cost and also
     additional income because the
                        Quality assurance
         product enters the
             market sooner


                  QFD           Quality control


 QFD can be viewed as a part of QA
 QFD was evolved from QA
From Concept to Customer [ASI, 2001]




Traditional product engineering processes




QFD product engineering process.
"Before QFD" versus "After QFD" [ASI, 2001]


  Before QFD                  After QFD
Individual work               Cross- functional teams

Some customer focus           Intense customer focus

"Over the wall" development   Supports simultaneous
                               engineering
Poor documentation            Supports integrated product
                              development
Poor communication            Better communication
                              /documentation

The bottom line is this:
   QFD includes methods,
  tools, and
 techniques to support
 satisfying your customer.
Primary Benefits of Using QFD [ASI, 2001]

Benefit                Rationale

Improved Customer      This is a result of using QFD since the first input, and the
Satisfaction           driving force behind the rest of the process, is the voice
                       of the customer. The QFD process actually refers to the
                       "verbatim" comments from the customer as the starting
                       point, and then provides a mechanism for translating
                       these into design targets.

Reduced Development    This is mostly the result of concurrent engineering, that
Time                   is, using cross-functional teams.

Improved Internal      Using cross-functional teams also means that there is
Communications         less communications overhead, and less likely that one
                       conversation in a serial chain of several conversations
                       inadvertently misinterprets one of the inputs.
Better Documentation   The quality charts (House of Quality) provides an
of Key Issues          excellent documentation mechanism for key issues. In
                       addition, the quality chart links these key issues to voice-
                       of-the-customer concerns. This gives us a better idea of
                       what a "key issue" is to the customer, knowledge that is
                       powerful in terms of maintaining an excellent working
                       relationship with the customer.

Save Money             The reduced development time leads to time savings,
                       and money savings.
Additional benefits
• include improved morale and organizational harmony,
• improved efficiency,
• reduction in design changes,
•  increased competitiveness,
• high market acceptance, and
• making it easier to identify problems with the
  development process.
• many of these benefits come from the simple inclusion of the
  customer, and the feedback that the customer provides during
  the initial stages of a QFD effort.
• this feedback provides the focus for the team and they have a
  sense that they are all working toward a common goal.
• this is a powerful mindset for people to have on a project.
History
• There are several ideas that
     Akao merged and evolved together to form QFD.
Akao describes at least three core techniques that he combined
  into QFD:
• statistical process control,
• design quality, and
• value engineering.
History

  The approximate time-line for QFD’s development and integration
   into manufacturing is in Table 3.
  Year                         Activity
• 1966        Bridgestone Tire Corporation uses a

                 "process assurance items" table
•   1967      Akoa writes about QFD
•   1972      Mitsubishi's heavy Industries Kobe Shipyard uses a
              "quality chart" (House of Quality)
•   1978      Toyota Auto body uses QFD
•   1983      First QFD Seminar in Japan
•   1990's    American automotive industry adopts QFD
•   1996      Survey indicates that QFD is used

               more in the US than
               in Japan, based on a survey of companies that
               participated in QFD seminars and conferences
              QFD Time-line [Akao, 1997]
The Traditional QFD Process
"Quality Function Deployment is a process of listening to the
       'voice of the customer',
            identifying the customer's needs,
                and incorporating those needs in the design and
                    production of goods and services" [Madu, 1999].
This quote emphasizes the role of QFD in the entire production
    scheme, not just at the beginning.
QFD is NOT equal to the House of Quality!
As part of investigating QFD as a requirements engineering tool,
    however,
          we have to focus on the
          quality charts (House of Quality) since it is more relevant
    to requirements engineering than the other
               QFD concepts.
The House of Quality is a blueprint for product development
    [Madu, 1999].
It's called a "house" because of its physical appearance.
Customer requirements, technical requirements,
    requirements prioritization, and design targets all merge
    onto the quality chart through a multi-step process.
QFD and software development life cycle
            [Betts, 1989];
Traditional QFD Phase - The Four-Phase Model
     A common model describing how the quality chart helps a team
     produce a product is the four-phase model presented in Figure




                                                                                                                   Control documents
                                                                                                                   Machine settings
                                                                                                                   Control methods



                                                                                                                   maintenance
                                                                                                                   Operation
                                                                                                                   Sampling
               Engineering                             Parts                           Key process
               characteristics                     characteristics                     operators
                                 characteristics




                                                                     characteristics




                                                                                                     Key process
                                                                                                      operators
                                  Engineering
  Customer
  attributes




                                                                        Parts
QFD
t


                                                         TQM



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                                                         rim
                       De                                   en
                         sig                                   ts
                               nF                                   DOE
                                 or
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    The voice of the           QFD                    DFM             FTA                   SPC                  Survey
       customer
                                                                            Fa
                                                                               u   lt T
                                                                                          ra
                                                                                             c   eA
                                                                                                   na
                                                                                                        lys
                                                                                                            is




         QFD and other technical tools in a TQM program
House Of Quality
QFD Matrices
General organization of a QFD matrix
House Of Quality
QFD Methodology

1. Identify customers (both internal and external).
2. Create a list of customer requirements (WHATS).
     * Record customer responses to the question:
         "What are the important (qualities, characteristics, elements,
      features) of _____________?"
      * Record in customer's own words -
       "Voice of the Customer."
      * Categorize hierarchically (primary, secondary, tertiary,...).
3. Prioritize the customer requirements on a scale of 1-5.
4. Compile list of design requirements (HOWS) necessary to
      achieve the market-driven whats.
      * Each requirement should be quantified.
      * Arrows show direction for improvement
         ( up for increasing, down for decreasing, etc.)
Start with WHATs and HOWs
Determine relationship


5. Determine relationship of
   design requirements to customer requirements.
   * Cell strengths quantify the importance of

        each HOW to achieving each WHAT.

  Strong relationship
  Some relationship
  Weak relationship
  No mark for no relationship
Adding correlations between WHATs and HOWs
6.Determine how the
.    customer perceives competitors' abilities to meet
      requirements.
    * Competition benchmarking.
   * Rate competitors on a scale of 1-5 with respect to each
        customer requirement.
7. Rank the technical importance of each design requirement.
   * Absolute rank is total of relationship value
   (quantify step 5 relationships) times customer importance ranking.

    * Relative importance is based
          on assigning ordinal ranking to each
                design requirement based on absolute rank (from
    previous step).
8. Rate the technical difficulty of each design requirement
.


          so design team can focus on the important/difficult
   HOWS.
9. Establish correlation matrix (roof of House of Quality) to
   determine interrelationships of design requirements.
• Strong positive interaction
   Positive interaction
   Strong negative interaction
   Negative interaction
10. Determine target values for the
   design requirements (HOW MUCH).
11. Areas that require concentrated effort are identified.
          Key elements are identified for follow-up matrix
   development. Assessment of
     technical difficulty and
     importance are
     useful in identifying these elements.
QFD matrix with objective measures added
Completed QFD matrix
House of quality
                                                                      Roof
                                  Hows?                               Trade off matrix
                                                                      (similar and/or conflicts)
                                                                      Inter relationship between
                                                                      Technical descriptors
                                                                              Ceiling / II floor
                                                                              Technical descriptors
                          Hows?                                               (voice of the organization)
                                                                              Product design characteristics
          Whats?                                                              Expressed in engineering terms




                                          Whats and Hows


                                     (between customer requirements
                                                   and
                                          technical descriptors)
                                          Interior walls

LHS                                                                                      RHS
                                                                                         Prioritized customer
Customer requirements
(voice of the customer)                                                                  requirements

                                                                             Foundation
                                                                             Prioritized technical
                 How much?                                                   Descriptors
                                                                             Technical BM
                                                                             Degree of technical difficulty
                                                                             Target value
House of Quality
LHS - Customer requirements:
        it is on the left side of the HOQ.
             This section documents the “voice of customer”
                             It represents the "what's" of the
  system.                                         Affinity
  diagrams and Tree diagrams are used to structure the
  requirements.
RHS - Planning Matrix:
         It is on the right side of the HOQ matrix.
                      It represents the Customer Competitive
  Assessment.                          It Provides customers’
  views on existing products.                             This matrix
  uses questionnaires to elicit information.
Technical requirements:
  This section lists how the company will meet the customer
  requirements.
     This is the "HOWS" of the system.
                     It represents the engineering characteristics or
  voice of the company.
                 This information is collected by QFD design team
  and structured using Affinity diagrams and Tree diagrams.
House of Quality
   This information includes:
   Top-level solution-independent metrics
   Product/service requirements
   Product/service features or capabilities
Relationship Matrix:
            It occupies the middle portion of the HOQ diagram
  which is the largest portion.
                    It uses the prioritization matrix.
                              It shows how well customer
  requirements are addressed by product features.
 Roof: This is the Correlation matrix.
    It shows how the HOWs conflict with one another
                   This section focuses on design improvement.
                         It focuses on negative relationships in the
  design.
Targets: This the final section of House of Quality matrix.
              It summarizes the conclusions of the planning matrix.
                             It includes three parts:
• Technical priorities (relative importance of each technical
  requirement)
• Competitive benchmarks (relative position of the existing product)
• Targets (engineering target values to be met by the new product
  design)
House of Quality
• In this process, a single quality chart represents each phase.
• The left-hand side of the chart contains a list of "what"
  characteristics the product must exhibit.
• They are matched up with several "hows," technical requirements
  that enable the product to satisfy the "whats" within the same chart.
  In the first phase, for example, the first list of "whats" contains the
  "voice of the customer" list of requirements.
• Then several engineering characteristics enable the product to
  satisfy those initial customer requirements.
• The list of "hows" from a previous phase take on the role of the
  "whats" for the next phase.
• So the second phase, for example, matches parts characteristics that
  will enable the product to satisfy the engineering characteristics
  listed previously.
• Note the immediate traceability from one quality chart to the next.
• This is the linking mechanism that causes us to describe the
  customer requirements as "driving" the entire product design
  process.
House of Quality
House of Quality
Cascaded matrices are used to propagate the customer voice
through more detailed parts of the design and solution stages.
QFD: Summary


• * The importance of QFD:
• - Provides a framework for upfront planning and product
  development.
  - Uses multi-functional teams to enhance design and decision-
  making.
  - Promotes teamwork (necessary for Concurrent Engineering).
  - Maintains customer ideas and requirements, in the customer's
  words, throughout the process.
• * Engineered products adhering to customer wants result in
  customer satisfaction.
Benefits of QFD
Customer driven: The focus is on customers wants, not what the
company thinks the customer wants.
 The "Voice of the Customer" drives the development process.
Competitive analysis:
    Other products in the marketplace are examined, and the
            company product is rated against the competition.
Reduced development time: The likelihood of design changes is
reduced as the QFD process focuses on improvements to be made to
satisfy key customer requirements.
Careful attention to customer requirements reduces the risk that
changes will be required late in the project life cycle.
  Time is not spent developing insignificant functions and features.
Reduced development costs: The identification of required
changes occurs early in the project life cycle.
    Minimizing changes following production reduces warranty costs
and product support costs.
Documentation: A knowledge base is built as the QFD process is
implemented. A historical record of the decision-making process is
developed.
Taguchi’s Quality Loss Function (QLF)
• The quality loss function is based on the work of
     Electrical engineer, Dr.GENICHI TAGUCHI
• (born January 1, 1924, in Tokamachi, Japan)
• worked during 1950’s to improve Japan’s post-WWII telephone
  communication system

• Served as Director- Japanese Academy of Quality
          from 1978 to 1982

• Awarded the Deming prize in 1960-
  development of various techniques for industrial optimization

• Father of the
       “Taguchi Method” and
          “Robust Engineering”
• QLF view disagrees with the traditional (goalpost) view.
• The quality loss function recognizes that products
                       falling between specific limits are not all
  equal.
                                                     DR. GENICHI TAGUCHI
                                                     (B. 1924)
                                                     -Loss Function.
Taguchi’s Quality Loss Function
Don’t run away!
• Not a mathematician?
• You can still successfully apply Taguchi Method concepts to
  your service business.
• Basic concepts are simple.
• He combined the
  engineering,
  statistical methods, and
  experimental design principles with the
  economy of manufacturing
• The objectives of his
   philosophy is to design quality into
     every product and corresponding processes
• Taguchi’s technique is
  the off-line quality control method,
            where efforts are taken to build
                 quality in upstream                    DR. GENICHI TAGUCHI
                      ie., from manufacturing to design 1924)
                                                        (B.
                                                        -Loss Function.
The Quality Loss Function (QLF)
• The four following statements summarize Taguchi’s philosophy.
1. We cannot reduce cost without affecting quality.
2. We can improve quality without increasing cost.
3. We can reduce cost by improving quality.
4. We can reduce cost by reducing variation.
        When we do so,
   performance and quality will automatically improve.
                                                        DR. GENICHI TAGUCHI
• In Taguchi’s view,                                    (B. 1924)
   quality is not defined by specific limits,           -Loss Function.
                but rather on whether or not it creates a financial
   loss to society. An example given is a defective automobile
   exhaust system creating air pollution.
• There are many types of quality loss functions.
          However, in all types, the loss is determined by
        evaluating variation from a specific target.
                                     Taguchi’s philosophy includes
   three general ways to evaluate the relationship between quality and
   variability.
Taguchi’s Quality Loss Function
Quality Defined
• “Any engineered system reaches its
   ‘ideal function’ when all of its
        applied energy (input) is transformed
      efficiently into
    creating desired output energy.” (Robust p. 6)

• Employee energy = input
• Customer satisfied = output
CUSTOMER SATISFACTION

• Design to the highest standards early in the process to
  eliminate all non-random errors

• Quality Loss = Loss to Society quantified through
  “Quality Loss Function”

• Variation (+/-) from optimal measure results in a loss.
                                                      DR. GENICHI TAGUCHI
                                                      (B. 1924)
                                                      -Loss Function.
Taguchi’s Quality Loss Function
Resources Expended on Quality




                Design



          Service Delivered



         Post Service Delivery




                                 DR. GENICHI TAGUCHI
                                 (B. 1924)
                                 -Loss Function.
Taguchi’s Quality Loss Function
Customer Satisfaction
Ways to measure service:
  1. Returning customers

   2. Number of complaints (1:10)

   3. Number of compliments

   4. Employee attitude

Design:
• Equipment – No breakdowns

• Specific jobs defined – Need to know responsibilities

• Policies and Procedures – What do you want, anyway?

• Taguchi Method experiment                          DR. GENICHI TAGUCHI
                                                     (B. 1924)
                                                     -Loss Function.
Quality Loss Concept

• Deviation from target
  results in loss.
   – Lower than target

   – Greater than target

   – Both lose
• Quantify the Loss
Quality Loss Function



                        DR. GENICHI TAGUCHI
                        (B. 1924)
                        -Loss Function.
DR. GENICHI TAGUCHI
• v   (B. 1924)
      -Loss Function.
Quality Loss Function

                                 L(y) = k(y-m)2

  L(y) = Loss in rupees


   k = constant = cost to correct
                         tolerance2

  y = reported value
  m = mean value (average)
(Taguchi On Robust Technology p. 22)


                                                  DR. GENICHI TAGUCHI
                                                  (B. 1924)
                                                  -Loss Function.
Example:
•                 Company C received
                  an average of 10 complaints per month last year.
                  In November they received 15 complaints (y).

                  Management sets an acceptable level at 2 (tolerance).

• It costs the company Rs.50 directly per complaint to correct the
  problems.
  They determined the cost in lost sales to be Rs.100.
• Total cost per complaint: Rs.150
                 cost to correct
k = constant =     tolerance2

k    = Rs.150/22 = Rs.37.50
                                                      DR. GENICHI TAGUCHI
L(y) = k(y-m)2                                        (B. 1924)
L(y) = 37.50 (15-10)2                                 -Loss Function.

     = 37.50 (5)2
     = 37.50 (25)
     = Rs.937.50 is loss for the
       month of November
1. Nominal is better approach
In this approach, the closer to the target value,
the better.
     .

 It does not matter whether the deviation is above
or below the target value.
 Under .this approach the deviation is quadratic.
     •




                                    2.Smaller is better approach
                                    The smaller is better approach is when a company
                                    desires smaller values.
                                    As the value gets larger, the loss incurred grows.



3.Larger is better approach
Larger is better occurs when a company desires
 higher values of a characteristic.
 Two examples given are employee participation
and the customer acceptance rate.
 Under this approach, the larger the characteristic,
the smaller the quality loss function.
• What are the losses to society from poor quality?
                                  .



• the cost of poor quality goes beyond
  direct costs to the manufacturer such as
     reworking or waste costs.
  Traditionally manufacturers have considered only the costs of
  quality up to the point of shipping out the product.

  Taguchi aims to
  quantify costs over the lifetime of the product.
  Long term costs to the manufacturer would include
    brand reputation and
      loss of customer satisfaction leading to
   declining market share.
                   Other costs to the consumer would include costs
   from                  low durability,
                                difficulty interfacing with other
   parts, or                                             the need
   to build in safety margins.
Great, so what is the actual loss function?


• Think for a moment about how the costs of quality would vary with
  the products deviation on either side of the mean.
  Now if you were to plot the costs versus the diameter of a nut,
  for example, you would have a quadratic function,
               with a minimum of zero at the target diameter.
  We expect therefore that the loss (L) will be a
     quadratic function of the variance (σ, or standard deviation) from
  the target (m).
        The squared-error loss function has been in use since the
  1930's, but
  Taguchi modified the function to represent total losses.
              Next we will walk though the derivation of the Taguchi
  Loss Function.
.




Loss function: This is the case for nominal is best
L= K(y-m) ^2
K=constant of proportionality
L=Loss
M= Average


Loss function:
1. Effectively a one-sided tolerance
      => L=KY^2 (small is better)
2.       L=K(l/y^2) (bigger is better)
Uses of Quality Loss Function (QLF) Data



• 1. Reduces Costs
• There are three ways that managers can use QLF to reduce costs.
• 1. Move the average of the actual distribution closer to the target
  value.
  2. Reduce variability.
  3. Do a combination of both.
• 2. Setting Specific Limits
• The data from the quality loss function can be used to determine
  where limits should be set to help minimize losses.
Total Productive Maintenance ( TPM )
• What is Total Productive Maintenance ( TPM ) ?
  It can be considered as the medical science of machines.

•   Total Productive Maintenance (TPM) is
    a maintenance program which involves
    a newly defined concept for
    maintaining plants and equipment.

• The goal of the TPM program is to
  markedly increase production while, at the same time,
  increasing employee morale and job satisfaction.
Total Productive Maintenance ( TPM )
• TPM brings maintenance into focus as a necessary and vitally
  important part of the business. It is
   no longer regarded as a non-profit activity.
• Down time for maintenance is scheduled as a part of the
  manufacturing day and, in some cases, as
  an integral part of the manufacturing process.
• The goal is to hold
   emergency and unscheduled maintenance to a minimum.


• TOTAL -All encompassing by
  maintenance and production personnel working together


• PRODUCTIVE-Production of goods and services that meet the
  customer requirements

• MAINTENACE-Keeping the plant and equipment in good
  condition at all times
Total Productive Maintenance ( TPM )

• Why TPM ?

TPM was introduced to achieve the following objectives.

The important ones are listed below.
• Avoid wastage in a quickly changing economic
  environment.
• Producing goods without reducing product quality.
• Reduce cost.
• Produce a low batch quantity at the earliest possible time.
• Goods send to the customers must be non defective.
Similarities and differences between TQM and TPM :

•  The TPM program closely resembles the popular Total Quality
   Management (TQM) program or its extended form TQP (process)
• Many of the tools such as employee empowerment, benchmarking,
   documentation, etc. used in TQM are used to implement and optimize
   TPM.
Similarities:
• Total commitment to the program by upper level management is
   required in both programs
• Employees must be empowered to initiate corrective action, and a long
   range outlook must be accepted as TPM may take a year or more to
   implement and is an on-going process.
  Changes in employee mind-set toward their job responsibilities must
   take place as well.
Differences:

Category           TQM                        TPM
Object   Quality ( Output and effects )    Equipment ( Input and
                                                         cause )
Mains of attaining goal
          Systematize the management. It is software oriented
                       Employees participation and it is hardware
                                                         oriented
Target    Quality for PPM               Elimination of losses and
                                                           wastes.
Steps in introduction of TPM in a organization
A - PREPARATORY STAGE :

• STEP 1 - Announcement by Management
            to all about TPM introduction in the organization :
  Proper understanding,
  commitment and
  active involvement of the
  top management is needed for this step.
  Senior management should have
  awareness programs, after which announcement is made to all.
  Publish it in the house magazine and
  put it in the notice board.
  Send a letter to all concerned individuals if required.
• STEP 2 - Initial education and propaganda for TPM :

  Training is to be done based on the need.
  Some need intensive training and some just an awareness.
  Take people who matters to places where
  TPM already successfully implemented.
Steps in introduction of TPM in a organization

• STEP 3 - Setting up TPM and departmental committees :
  TPM includes
   improvement,
   autonomous maintenance,
   quality maintenance etc., as part of it.
   When committees are set up it should take care of all those needs.

• STEP 4 - Establishing the TPM working system and target :
   Now each area is benchmarked and
   fix up a target for achievement.
• STEP 5 - A master plan for institutionalizing :
   Next step is implementation leading to
    institutionalizing wherein
   TPM becomes an organizational culture.
    Achieving PM award is the proof of reaching a satisfactory level.
Steps in introduction of TPM in a organization
 B - INTRODUCTION STAGE
• This is a ceremony and we should invite all.
   Suppliers as they should know that we want quality supply from
   them.
   Related companies and affiliated companies who can be our
   customers, sister concerns etc.
   Some may learn from us and some can help us and customers will
   get the communication from us that we care for quality output.

C – IMPLEMENTATION STAGE
• In this stage eight activities are carried which are called eight
   pillars in the development of TPM activity.
   Of these four activities are for establishing the system for
   production efficiency, one for initial control system of new products
   and equipment, two for improving the efficiency of administration
   and one for control of safety, sanitation and working environment.

 D - INSTITUTIONALISING STAGE
• By all there activities one would has reached maturity stage.
   Now is the time for applying for Planned Maintenance award.
   Also think of challenging level to which you can take this movement.
Operational Performance Effectiveness
                                        Overall Equipment Effectiveness
Pillars of TPM
1.    5S
2. Jishu Hozen (Autonomous group or maintenance)
3. Kaizen
4. Planned Maintenance
5. Quality Maintenance
6. Training
7.    Office TPM
8. Safety, Health and Environment
PILLAR 1 - 5S :
TPM starts with 5S.
  Problems cannot be clearly seen when the work place is unorganized.
  Cleaning and organizing the workplace helps the team to uncover
      problems.
  Making problems visible is the first step of improvement.
Japanese Term        English Translation              Equivalent 'S'
      term
•     Seiri            Organization                 Sort
•     Seiton            Tidiness                    Systematize
•     Seiso            Cleaning                     Sweep
•     Seiketsu          Standardization             Standardize
•     Shitsuke          Discipline                  Self - Discipline
Pillars of TPM–Pillar 2
PILLAR 2 - JISHU HOZEN ( Autonomous maintenance )
• This pillar is geared towards developing
   operators to be able to take care of small maintenance
  tasks, thus freeing up the skilled maintenance people to spend time
  on more value added activity and technical repairs. The
  operators are responsible for upkeep of their equipment to
  prevent it from deteriorating.

• Policy :
• Uninterrupted operation of equipments.
• Flexible operators to operate and maintain other
  equipments.
• Eliminating the defects at source through active employee
  participation.
• Stepwise implementation of JH activities.

•   Targets:
•   Prevent the occurrence of 1A / 1B because of JH.
•   Reduce oil consumption by 50%
•   Reduce process time by 50%
•   Increase use of JH by 50%
JISHU HOZEN
• Steps in JISHU HOZEN :
  1.Preparation of employees.
  2.Initial cleanup of machines.
  3.Take counter measures .
  4.Fix tentative JH standards.
  5.General inspection .
  6.Autonomous inspection
  7.Standardization and
  8.Autonomous management.
1.Train the Employees :
   - Educate the employees about TPM, Its advantages,
   - JH advantages and Steps in JH.
   - Educate the employees about abnormalities in equipments.
2.Initial cleanup of machines :
   - Supervisor and technician should
    discuss and set a date for implementing step1
   - Arrange all items needed for cleaning
JISHU HOZEN
- On the arranged date, employees should
   clean the equipment completely with the help of maintenance
   department.
- Dust, stains, oils and grease have to be removed.
- The things that has to be taken care while cleaning are:
   Oil leakage,
   loose wires,
   unfastened nuts and bolts and
   worn out parts.
- Clean up problems are categorized and suitably tagged.
    White tag   is placed where problems can be solved by operators.
   Pink tag is placed where the aid of maintenance department
   is needed.
- Contents of tag is transferred to a register.
- Make note of area which were inaccessible.
- Finally
    close the open parts of the machine and
    run the machine.
JISHU HOZEN
3.Counter Measures :
  - Inaccessible regions had to be reached easily.
   e.g. If there are many screw to open a fly wheel door,
          hinge door can be used.
          Instead of opening a door for inspecting the machine,
          acrylic sheets can be used.
   - To prevent work out of machine parts necessary action must be
      taken.
   - Machine parts should be modified to prevent accumulation of
      dirt and dust.
4.Tentative Standard :
   - JH schedule has to be made and followed strictly.
   - Schedule should be made regarding cleaning,
      inspection and
      lubrication and
      it also should include details like
      when,
      what and
      how.
JISHU HOZEN
5.General Inspection :
 - The employees are trained in disciplines like Pneumatics, electrical,
   hydraulics, lubricant and coolant, drives, bolts, nuts and Safety.
 - This is necessary to improve the technical skills of employees and to
   use inspection manuals correctly.
 - After acquiring this new knowledge the employees should share this
   with others.
 - By acquiring this new technical knowledge, the operators are now
   well aware of machine parts.
6.Autonomous Inspection :
 - New methods of cleaning and lubricating are used.
 - Each employee prepares his own autonomous chart /
   schedule in consultation with supervisor.
 - Parts which have never given any problem or
    part which don't need any inspection are removed from list
   permanently based on experience including
   good quality machine parts.
 - This avoid defects due to poor JH.
 - Inspection that is made in PM is included in JH.
 - The frequency of cleanup and inspection
   is reduced based on experience.
JISHU HOZEN
7.Standardization :
  - Up to the previous step only the
    machinery / equipment was the concentration.
    However in this step the
    surroundings of machinery are organized.
    Necessary items should be organized, such that
    there is no searching and
    searching time is reduced.
  - Work environment
    is modified such that there is no difficulty in getting any item.
  - Everybody should
    follow the work
    instructions strictly.
  - Necessary spares for equipments is
     planned and procured.
8.Autonomous Management :
  - OEE and OPE and other TPM targets must be achieved by
    continuous improve through Kaizen.
  - PDCA ( Plan, Do, Check and Act ) cycle must be implemented
    for Kaizen.
  - PI
Pillars of TPM–Pillar 3
KAIZEN :
• "Kai" means change, and
  "Zen" means good ( for the better ).
  Basically Kaizen is for small improvements, but carried out on a
  continual basis and
  involve all people in the organization.
• Kaizen is opposite to big spectacular innovations.
• Kaizen requires no or little investment.
• The principle behind is that
  “a very large number of small improvements are
  more effective in an organizational environment than
  a few improvements of large value.”
• This pillar is aimed at reducing losses in the workplace that
  affect our efficiencies.
• By using a detailed and thorough procedure we eliminate losses
  in a systematic method using various Kaizen tools.
• These activities are not limited to production areas and can be
  implemented in administrative areas as well.
KAIZEN

Kaizen Policy :
• Practice concepts of
      zero losses in every sphere of activity.
• relentless pursuit to achieve
              cost reduction targets in all resources
• Relentless pursuit to
  improve over all plant equipment effectiveness.
• Extensive use of PM analysis as
              a tool for eliminating losses.
• Focus of
     easy handling of operators.
KAIZEN
Kaizen Target :
• Achieve and sustain zero losses with respect to minor stops,
  measurement and adjustments, defects and unavoidable downtimes.
• It also aims to achieve 30% manufacturing cost reduction.
Tools used in Kaizen :
• PM analysis
• Why - Why analysis
• Summary of losses
• Kaizen register
• Kaizen summary sheet.
• The objective of TPM is maximization of equipment
                                                effectiveness.
• TPM aims at maximization of machine utilization and not
  merely machine availability maximization.
• As one of the pillars of TPM activities,
  Kaizen pursues efficient equipment,
  operator and material and energy utilization, that is
  extremes of productivity and aims at achieving substantial
  effects.
• Kaizen activities try to thoroughly eliminate 16 major losses.
KAIZEN
16 Major losses in an organization:
Loss                                Category
1. Failure losses – Breakdown loss
2. Setup / adjustment losses
3. Cutting blade loss
4. Start up loss
5. Minor stoppage / Idling loss.
6. Speed loss - operating at low speeds.
7. Defect / rework loss
8. Scheduled downtime loss
                      Losses that impede equipment efficiency
1. Management loss
2. Operating motion loss
3. Line organization loss
4. Logistic loss
5. Measurement and adjustment loss
                     Losses that impede man work loss
1. Energy loss
2. Die, jig and tool breakage loss
3. Yield loss.
     Losses that impede effective use of production resources
Pillars of TPM–Pillar 4
 PLANNED MAINTENANCE :
It is aimed to have
    trouble free machines and equipments producing
    defect free products for total customer satisfaction.
          This breaks maintenance down into
    4 "families" or groups which was defined earlier.
• Preventive Maintenance
• Breakdown Maintenance
• Corrective Maintenance
• Maintenance Prevention
With Planned Maintenance we evolve our efforts from a
     reactive to a proactive method and
     use trained maintenance staff to help train the operators to better
    maintain their equipment.
Policy :
• Achieve and sustain availability of machines
• Optimum maintenance cost.
• Reduces spares inventory.
• Improve reliability and maintainability of machines.
PLANNED MAINTENANCE

Target :
• Zero equipment failure and break down.
• Improve reliability and maintainability by 50 %
• Reduce maintenance cost by 20 %
• Ensure availability of spares all the time.

Six steps in Planned maintenance :

1. Equipment evaluation and recoding present status.
2. Restore deterioration and improve weakness.
3. Building up information management system.
4. Prepare time based information system,
    select equipment, parts and
     members and
              map out plan.
5. Prepare predictive maintenance system by introducing
   equipment diagnostic techniques and
6. Evaluation of planned maintenance.
Pillars of TPM–Pillar 5
 QUALITY MAINTENANCE :
• It is
   aimed towards
    customer delight through
    highest quality through
   defect free manufacturing.
• Focus is on
    eliminating non-conformances in a systematic manner, much

   like Focused Improvement.
• We
   gain understanding of what parts of the equipment
    affect
   product quality and
    begin to eliminate current quality concerns, then
   move to potential quality concerns.
• Transition is from reactive to proactive
   (Quality Control to Quality Assurance).
QUALITY MAINTENANCE
• QM activities are to
  set equipment conditions that preclude
  quality defects, based on the
  basic concept of
  maintaining perfect equipment to
  maintain perfect quality of
  products.
• The condition are
  checked and measured in time series to vary that measure
   values are
   within standard values to
   prevent defects.
• The transition of measured values is watched to predict
   possibilities of
  defects occurring and to
   take counter measures before hand.
QUALITY MAINTENANCE
Policy :

• Defect free conditions and
   control of equipments.
• QM activities to support quality assurance.
• Focus of prevention of defects at source
• Focus on poka-yoke. ( fool proof system )
• In-line detection and
   segregation of defects.
• Effective implementation of operator quality assurance.

Target:

• Achieve and sustain customer complaints at zero
• Reduce in-process defects by 50 %
• Reduce cost of quality by 50 %.
QUALITY MAINTENANCE
Data requirements :

• Quality defects are classified as
      customer end defects and
       in house defects.
• For customer-end data, we have to get data on
      customer end line rejection field complaints.
• In-house, data include data related to
      products and data related to
       process

Data related to product :

• Product wise defects
• Severity of the defect and its contribution - major/minor
• Location of the defect with reference to the layout
QUALITY MAINTENANCE
• Magnitude and frequency of its
   occurrence at each stage of measurement
• Occurrence trend in
   beginning and the end of
   each production/process /changes.
   (Like pattern change, ladle/furnace lining etc.)
• Occurrence trend with respect to
   restoration of
   breakdown/modifications /periodical replacement of
   quality components.

Data related to processes:

• The operating condition for individual sub-process related to
  men, method, material and machine.
• The standard settings/conditions of the sub-process
• The actual record of the settings/conditions during the
  defect occurrence.
TRAINING :
                Pillars of TPM–Pillar 6
• aimed to have
     multi-skilled revitalized employees whose
      morale is high and who has
     eager to come to work and
      perform all required functions effectively and
      independently.
• Education is given to
     operators to upgrade their skill.
   It is not sufficient know only
    "Know-How" by they should also learn "Know-why".
• By experience they gain,
    "Know-How" to overcome a problem what to be done.
     This they do
      without knowing the root cause of the problem and
      why they are doing so.
   Hence it become
      necessary to train them on knowing "Know-why".
   The employees should be trained
      to achieve the four phases of skill.
   The goal is to create a factory full of experts.
TRAINING
The different phases of skills are

   Phase 1 : Do not know.
   Phase 2 : Know the theory but cannot do.
   Phase 3 : Can do but cannot teach.
   Phase 4 : Can do and also teach.

Policy :Focus on
      improvement of knowledge,
      skills and
      techniques.
• Creating a
      training environment for self learning based on felt
  needs.
• Training
      curriculum / tools /assessment etc conductive to
      employee revitalization
• Training to remove
      employee fatigue and make work enjoyable.
TRAINING
Target :
• Achieve and sustain
    downtime due to want men
    at zero on critical machines.
• Achieve and sustain
    zero losses due to lack of knowledge / skills / techniques
• Aim for 100 % participation in suggestion scheme.

Steps in Educating and training activities :

• Setting policies and priorities and
           checking present status of education and training.
• Establish of training system for
           operation and maintenance skill up gradation.
• Training the employees for
           upgrading the operation and maintenance skills.
• Preparation of training calendar.
• Kick-off of the system for training.
• Evaluation of activities and
            study of future approach.
Pillars of TPM–Pillar 7
OFFICE TPM :
• Office TPM should be started after activating four other pillars of
  TPM (JH, K, QM, PM). Office TPM must be followed to improve
  productivity, efficiency in the administrative functions and identify
  and eliminate losses. This includes analyzing processes and
  procedures towards increased office automation. Office TPM
  addresses twelve major losses. They are:
• Processing loss
• Cost loss including in areas such as procurement, accounts,
  marketing, sales leading to high inventories
• Communication loss
• Idle loss
• Set-up loss
• Accuracy loss
• Office equipment breakdown
• Communication channel breakdown, telephone and fax lines
• Time spent on retrieval of information
• Non availability of correct on line stock status
• Customer complaints due to logistics
• Expenses on emergency dispatches/purchases
OFFICE TPM

How to start office TPM ?
• A senior person from one of the support functions e.g.
    Head of Finance,
    MIS,
    Purchase etc should be heading the sub-committee.
  Members representing all support functions and people from
    Production & Quality should be included in sub committee.
  TPM co-ordinate plans and guides the sub committee.
• Providing awareness about office TPM to all support depts.
• Helping them to identify P, Q, C, D, S, M in each function in
  relation to plant performance
• Identify the scope for improvement in each function
• Collect relevant data
• Help them to solve problems in their circles
• Make up an activity board where progress is monitored on both
  sides - results and actions along with Kaizens.
• Fan out to cover all employees and circles in all functions.
Office TPM

Kobetsu Kaizen topics for Office TPM :
• Inventory reduction
• Lead time reduction of critical processes
• Motion & space losses
• Retrieval time reduction.
• Equalizing the work load
• Improving the office efficiency by
   eliminating the time loss on retrieval of information,
   by achieving zero breakdown of
   office equipment like
    telephone and
   fax lines.
Office TPM and its Benefits
• Involvement of all people in support functions for focusing on
  better plant performance
• Better utilized work area
• Reduce repetitive work
• Reduced inventory levels in all parts of the supply chain
• Reduced administrative costs
• Reduced inventory carrying cost
• Reduction in number of files
• Reduction of overhead costs
      (to include cost of non-production/non capital equipment)
• Productivity of people in support functions
• Reduction in breakdown of office equipment
• Reduction of customer complaints due to logistics
• Reduction in expenses due to emergency dispatches/purchases
• Reduced manpower
• Clean and pleasant work environment.
P Q C D S M in Office TPM
• P - Production output lost due to
      want of material,
      Manpower productivity,
      Production output lost due to want of tools.
• Q - Mistakes in preparation of
      cheques, bills, invoices, payroll, Customer returns/warranty
      attributable to BOPs, Rejection/rework in BOP's/job work,
      Office area rework.
• C - Buying cost/unit produced,
      Cost of logistics - inbound/ outbound,
      Cost of carrying inventory,
      Cost of communication,
      Cost- Demurrage
• D - Logistics losses (Delay in loading/unloading)
      Delay in delivery due to any of the support functions
      Delay in payments to suppliers
      Delay in information
• S - Safety in material handling/stores/logistics, Safety of
      soft and hard data.
• M - Number of Kaizens in office areas.
How office TPM supports plant TPM
• Office TPM supports the plant, initially in doing
    Jishu Hozen of the machines
   (after getting training of Jishu Hozen), as in Jishu Hozen at the
    initial stages machines are more and manpower is less, so
    the help of commercial departments can be taken, for this
• Office TPM can
    eliminate the loads on line for no material and logistics.
Extension of office TPM to suppliers and distributors :
• This is essential, but only after we have done as much as possible
     internally.
• With suppliers it will lead to on-time delivery,
      improved 'in-coming' quality and cost reduction.
• With distributors it will lead to accurate demand generation,
       improved secondary distribution and reduction in
       damages during storage and handling.
• In any case we will have to
   teach them based on our experience and practice and
   highlight gaps in the system which affect both sides.
• In case of some of the
  larger companies, they have started to support
  clusters of suppliers.
Pillars of TPM–Pillar 8
SAFETY, HEALTH AND ENVIRONMENT :
Target :
• Zero accident
• Zero health damage
• Zero fires
• In this area focus is on to create
  a safe workplace and a surrounding area that is
  not damaged by our process or procedures.
  This pillar will play an
  active role in each of the other pillars on a regular basis.
• A committee is constituted for this pillar which comprises
  representative of
  officers as well as workers.
• The committee is headed by
  Senior vice President ( Technical )
• Utmost importance to Safety is given in the plant.
  Manager (Safety) is looking after functions related to safety.
  To create awareness among employees various competitions like
  safety slogans, Quiz, Drama, Posters, etc. related to
  safety can be organized at
  regular intervals.
Overall Equipment Effectiveness




(Total Effective Equipment Performance)
•   Calculation: OEE = Availability x Performance x Quality
•
.   Example:
•   A given Work Center experiences...
•   Availability of 86.7%
•   The Work Center Performance is 93.0%.
•   Work Center Quality is 95.0%.
•   OEE = 86.7% Availability x 93.0% Performance x 95.0% Quality = 76.6%
•   Total effective equipment performance
•   Where OEE measures effectiveness based on scheduled hours, TEEP
    measures effectiveness against calendar hours, i.e.: 24 hours per day, 365
    days per year.
•   TEEP, therefore, reports the 'bottom line' utilization of assets.
•   Calculation: TEEP = Loading x OEE
•   Example:
•   A given Work Center experiences...
•   OEE of 34.0%
•   Work Center Loading is 71.4%
•   TEEP = 71.4% Loading x 34.0% OEE = 24.3%
•   Stated another way, TEEP adds a fourth metric 'Loading', Therefore TEEP
    = Loading x Availability x Performance x Quality
•   Loading
•   The Loading portion of the TEEP Metric represents the percentage of time that an
    operation is scheduled to operate compared to the total Calendar Time that is
.
    available. The Loading Metric is a pure measurement of Schedule Effectiveness and is
    designed to exclude the effects how well that operation may perform.
•   Calculation: Loading = Scheduled Time / Calendar Time
•   Example:
•   A given Work Center is scheduled to run 5 Days per Week, 24 Hours per Day.
•   For a given week, the Total Calendar Time is 7 Days at 24 Hours.
•   Loading = (5 days x 24 hours) / (7 days x 24 hours) = 71.4%
•    Availability
•   The Availability portion of the OEE Metric represents the percentage of scheduled
    time that the operation is available to operate. The Availability Metric is a pure
    measurement of Uptime that is designed to exclude the effects of Quality,
    Performance, and Scheduled Downtime Events.
•   Calculation: Availability = Available Time / Scheduled Time
•   Example:
•   A given Work Center is scheduled to run for an 8 hour (480 minute) shift.
•   The normal shift includes a scheduled 30 minute break when the Work Center is
    expected to be down.
•   The Work Center experiences 60 minutes of unscheduled downtime.
•   Scheduled Time = 480 min - 30 min break = 450 Min
•   Available Time = 450 min Scheduled - 60 min Unscheduled Downtime = 390 Min
•   Availability = 390 Avail Min / 450 Scheduled Min = 90%
•   Performance
.
•   The Performance portion of the OEE Metric represents the speed at which the Work
    Center runs as a percentage of its designed speed. The Performance Metric is a pure
    measurement of speed that is designed to exclude the effects of Quality and
    Availability.
•   Calculation: Performance = (Parts Produced * Ideal Cycle Time) /
    Available Time
•   Example:
•   A given Work Center is scheduled to run for an 8 hour (480 minute) shift with a 30
    minute scheduled break.
•   Available Time = 450 Min Sched - 60 Min Unsched Downtime = 390 Minutes
•   The Standard Rate for the part being produced is 40 Units/Hour or 1.5 Minutes/Unit
•   The Work Center produces 242 Total Units during the shift. Note: The basis is Total
    Units, not Good Units. The Performance metric does not penalize for Quality.
•   Time to Produce Parts = 242 Units * 1.5 Minutes/Unit = 363 Minutes
•   Performance = 363 Minutes / 390 Minutes = 93.0%
.




• Quality
• The Quality portion of the OEE Metric represents the Good Units
  produced as a percentage of the Total Units Started. The Quality
  Metric is a pure measurement of Process Yield that is designed to
  exclude the effects of Availability and Performance.
• Calculation: Quality = Good Units / Units Started
• Example:
• A given Work Center produces 230 Good Units during a shift.
• 242 Units were started in order to produce the 230 Good Units.
• Quality = 230 Good Units / 242 Units Started = 95.0%
FMEA
Introduction
 FMEA -Failure Mode Effect Analysis is an
   analytical technique that goes in for
   combining Technology and
   Experience of people to
   identify foreseen failures in a
   product or process and
   planning to eliminate the Failure.
Definition
 FMEA is a
        group of activities to
   understand and evaluate potential failure of
    product or process and its effects, and
    identify actions that
   eliminate or reduce the
       potential failures.
What is an FMEA?
•   FMEA stands for
    Failure Mode Effect Analysis.
•   Learning from each failure can be
    costly & time consuming.
•   FMEA is a systematic method of studying failure.
•   This ensures that time is
     not wasted & the root of the problem is quickly determined.
•   It is used to Identify methods to eliminate or
    reduce the chance of that failure occuring in the future.
•   It should be noted that an FMEA is a
    Living Document that is used to
       anticipate & prevent failures from occuring.
•   As such it must be
    continuously updated as changes in the system occur.
•   Failure Mode is defined
    as the manner by which a failure is observed.
•   It describes the way the failure occurs.
What exactly is an FMEA & how was it developed?
Failure mode:       FMEA -Basic terms
 "The manner by which a failure is observed; it generally
  describes the way the failure occurs."
Failure effect:

  The immediate consequences a failure has on the operation,
   function or functionality, or status of some item
Indenture levels:

  An identifier for item complexity. Complexity increases as
  the levels get closer to one.
Local effect:

 The Failure effect as it applies to the item under analysis.
Next higher level effect:

 The Failure effect as it applies at the next higher indenture level.
End effect:

  The failure effect at the highest indenture level or total system.
Failure cause:

  Defects in design, process, quality, or part application, which are
  the underlying cause of the failure or which initiate a process
Types of FMEA
Design FMEA use in the design process
by identifying
known and foreseeable failures modes and
ranking failures
according to their impact on the
product.                                                Sub Classification
                                                        Equipment FMEA
                                                        Maintenance FMEA
                                                        Service FMEA
                                                        System FMEA




Process FMEA is used to
identify
potential process failure modes
by ranking failures and establishing priorities, and
its impact on the
Internal or external customers.
FMEA

                                                    Using FMEA in problem solving



Root Cause Analysis / FMEA




                                             Failure mode and effect



                  Effect        Severity
      Corruption of hard disk     20
      Loss of whole documents     10
      Character loss               7
      Printout scrambled           4




                                                  FMEA table
Failure criticality
FMEA Working Model
How to do a FMEA Analysis?- an example



What are the
effects of box
failures on the          This example is a
system?                  bottoms-up approach
                         to a Design FMEA, but a
                         tops-down approach
                         could also be used.
What are the
effects of
board failures
on the box?



 What are the
 effects of part
 failures on the
 board?
Role of FMEA in a design
.
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 competitiviness
• 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 eliminitation 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.[citation needed]
• 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.

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Tqm4ppt Total QualityManagement

  • 1. MG 1401 TOTAL QUALITY MANAGEMENT 4. T.Q.M Tools 2010-2011 C. Coomarasamy Professor, TEC
  • 2. TQM Tools 1.BENCH MARKING (BM) - Reasons - Process 2.QUALITY FUNCTION DEPLOYMENT (QFD) - House of quality - Process - Benefits - Taguchi Quality Loss Function 3.TOTAL PRODUCTIVE MAINTENANCE (TPM) - Concept - Improvement needs 4. FAILURE MODE AND EFFECT ANALYSIS (FMEA) - Stages
  • 3. BENCH MARKING (BM) • In civil - the process of gathering information about the level • In military- the process of gathering information about the enemy- spying • In cricket - the process of gathering information about the Performance- South Africa, ( next- India, Australia) • In police - the process of gathering information about the people and their activities- - intelligence or vigilance • In industries- the process of gathering information about the industrial activities - industrial intelligence
  • 4. BENCH MARKING (BM) • In the Quality world the process of gathering information about the “best quality product manufacturing company” in order to copy or follow or excel- is known as Bench marking. Foundation – is to gather data- from either I or E sources – friendly or unfriendly- for future action to improve Hence BM is the systematic method / approach or popular TQM tool for best practices, innovative ideas and highly effective operating procedures
  • 5. BENCH MARKING (BM) It considers the experience of others, and uses it It is a continuous process of identifying, understanding, and adopting the best practices and process that will lead to superior performance Concept : BM measures performance against that of best-in-class organizations,- determines how the best in class achieve those performance levels, and uses the information as the basis for adaptive creativity and breakthrough performance
  • 6. Key elements: TWO bm 1. Units of measure- called metrics- expressed numerically 2. Managers understand why their performance differs ? Bench Markers must develop a thorough, in-depth knowledge of both their own processes & the processes of What is our performance level ? What are other’s performance levels ? How we do it ? How did they get there ? best in class organizations An understanding of the BM is about differences setting goals and allows Creative objectives and managers to organize about meeting them by adaption their improving processes. improvement efforts to meet the goal. Breakthrough performance
  • 7. BENCH MARKING (BM) Reasons : 1. Helps to develop their Strengths and reduce Weaknesses 2. Makes in total to be competitive by understanding the competitive ideas from proven practices 3. Time and cost efficient as process involves imitation and adaptation rather than pure invention. BM partners provide – working model of an improved process- which reduces some of planning, testing & proto typing effort 4. Inspires managers and organizations to compete 5. Allows goals to be set based on external information
  • 8. BENCH MARKING (BM) 6.Guides in adopting the best practices in the industry as a total solution to achieve superior performance 7. Gives a better perception in defining and understanding the customer requirements to be competent in the market consistently 8. Establishes effective goals and objectives for credible performance 9. Establishes the consistent monitoring to ensure continuous improvement 10. Enhances innovation The primary weakness - best-in-class performance is a moving target
  • 9. BENCH MARKING (BM) Typical steps in a benchmarking process 1. Decide what to BM, Scope definition- Choose benchmark partner - Decide objectives 2. Understand current performance - Assess the current level 3. Plan- - Plan the strategy Determine measurement methods, units, indicators 4. Study others- - Study - competing Os Data collection 5. Learn from the data- - Analyze the gap Analysis of the discrepancies 6. Use the findings- - Prepare & Execute Present the results and action plan
  • 10. BENCH MARKING (BM) Types - classification Based on the object to be benchmarked 1. Product, 2.Performance, 3.Process, 4.Strategic- BM Based on the Organizations, against whom one is BM: 1. Internal BM (benchmark within a corporation, for example between business units) 2. Functional BM (benchmark similar processes within an industry) 3.Competitive BM (performance or processes with competitors) 4. Generic -Best-in-class BM (comparing operations between unrelated industries) 5. Relationship-Collaborative BM (carried out collaboratively by groups of companies)
  • 11. BENCH MARKING (BM) Benefits • strength and weakness are well understood • best practices adopted- than invention- (saving money & time) • performance measures are compared- (return on assets, cycle time, proportion of defects, time spent on administrative functions) • focus on process and performance measures- (professionalizing the processes not on products or for improving communication- So it identifies the superior for the chosen measures) • helps in setting realistic new performance targets and make the people to do things than others do • enables to rebuild or redesign their products/services (to meet the customer expectations) • helps in training and human resources (Employees come forward to fill the gap to achieve the organizational goals) • improves synergic effect between the activities of the organization through BM
  • 12. BENCH MARKING (BM) Limitations • comparing performances and processes with 'best in class' is important – it is not a static one - a moving target- should ideally be done on a continuous basis is a tough process that needs a lot of commitment to succeed and time-consuming and expensive. • more than once BM projects end with the 'they are different from us' syndrome or competitive sensitivity prevents the free flow of information that is necessary. • it can not replace all quality improvement and management development programs • it will not ensure any instant return - requires necessary infrastructure, training and TQM practices • requires a basic corporate culture, information system process control and HRD programs in practice
  • 13. The Essence of Benchmarking .
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  • 15. Benchmarking process Benchmarking Standards Benchmark practices Benchmark Gap ►How much How to close the Gap ► Where ►Improved Knowledge ►When ►Improved Practices ►Improved Process Management Commitment Organization Communication Employee Participation
  • 16. .
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  • 18. The power of benchmarking: How looking around at others can help you raise more money for your cause . Stage 5 Disseminate improvements Stage 1 and/or review Agree best action plan practice Stage 4 Review Stage 2 achievement Assess against towards best price best practice Stage 3 Produce and implement action plan aimed at achieving best practice
  • 19. QUALITY FUNCTION DEPLOYMENT (QFD) Introduction • QFD is a technique for requirements engineering borne out of the quality movement. • it did not originate as a requirements engineering technique, but rather as a systematic method for translating customer requirements into specific product design targets. hence - sometimes called as “customer driven engineering” • the first application of QFD was at Mitsubishi, Heavy Industries Ltd., Kobe shipyard, Japan in 1972 and then Toyota Auto body uses QFD in 1978. • including the customer is one of the
  • 20. QUALITY FUNCTION DEPLOYMENT (QFD) Definition :1 • First, from the American Supplier Institute (ASI) A system for translating customer requirements into appropriate company requirements at each stage from research and development to engineering and manufacturing to marketing/sales and distribution. [ASI, 2001]. • This definition emphasizes that QFD is more than the House of Quality. (the House of Quality, or quality chart, is the primary tool for QFD practitioners to use for recording and analyzing requirements and design targets.) • The ASI definition mentions "each stage from research ... to marketing/sales and distribution." • The breadth of the QFD process, therefore, is larger than recording and analyzing requirements.
  • 21. QUALITY FUNCTION DEPLOYMENT (QFD) Definition: 2 • The second definition is from Akao, generally recognized as the founder of QFD: A method for developing a design quality aimed at satisfying the consumer and then translating the consumer's demand into design targets and major quality assurance points to be used throughout the production phase. [Akao, 1990]. • This definition also emphasizes the broad use of QFD in phases beyond requirements elicitation, specifically mentioning "to be used throughout the production phase." • Both of these definitions include the term "consumer" or "customer." • This emphasizes how important the customer is to the QFD process. • The customer plays a central role in QFD. • For us in the early 2000's, this is hardly a revolutionary idea, but back in the 1960's, this was a novel and intriguing concept. • Much of today's customer awareness comes from the quality movement, and QFD was one of the techniques that lead this movement into North America.
  • 22. QUALITY FUNCTION DEPLOYMENT (QFD) Objectives/ advantages: • improve engineering knowledge, productivity, and quality and reduced costs, product development time, and engineering changes • focuses on customer expectations or requirements, often referred to as the voice of the customer ( dissatisfiers, satisfiers, exciters/ delighters ) • employed to translate customer expectations, in terms of specific requirements, into directions and actions, in terms of engineering or technical characteristics that can be
  • 23. QUALITY FUNCTION DEPLOYMENT (QFD) *Product Planning, *Part development, *Process Planning, *Production Planning, *Service industries • helps identify new quality technology and job functions to carry out operations • provides a historic reference to enhance future technology and prevent design errors • enables the design phase to concentrate on the customer requirements, thereby spending less time on design and modifications
  • 24. QUALITY FUNCTION DEPLOYMENT (QFD) • the saved time has been estimated at 1/3 to ½ of the time taken for redesign or modifications using traditional means • this saving means (time) reduced development cost and also additional income because the Quality assurance product enters the market sooner QFD Quality control QFD can be viewed as a part of QA QFD was evolved from QA
  • 25. From Concept to Customer [ASI, 2001] Traditional product engineering processes QFD product engineering process.
  • 26. "Before QFD" versus "After QFD" [ASI, 2001] Before QFD After QFD Individual work Cross- functional teams Some customer focus Intense customer focus "Over the wall" development Supports simultaneous engineering Poor documentation Supports integrated product development Poor communication Better communication /documentation The bottom line is this: QFD includes methods, tools, and techniques to support satisfying your customer.
  • 27. Primary Benefits of Using QFD [ASI, 2001] Benefit Rationale Improved Customer This is a result of using QFD since the first input, and the Satisfaction driving force behind the rest of the process, is the voice of the customer. The QFD process actually refers to the "verbatim" comments from the customer as the starting point, and then provides a mechanism for translating these into design targets. Reduced Development This is mostly the result of concurrent engineering, that Time is, using cross-functional teams. Improved Internal Using cross-functional teams also means that there is Communications less communications overhead, and less likely that one conversation in a serial chain of several conversations inadvertently misinterprets one of the inputs. Better Documentation The quality charts (House of Quality) provides an of Key Issues excellent documentation mechanism for key issues. In addition, the quality chart links these key issues to voice- of-the-customer concerns. This gives us a better idea of what a "key issue" is to the customer, knowledge that is powerful in terms of maintaining an excellent working relationship with the customer. Save Money The reduced development time leads to time savings, and money savings.
  • 28. Additional benefits • include improved morale and organizational harmony, • improved efficiency, • reduction in design changes, • increased competitiveness, • high market acceptance, and • making it easier to identify problems with the development process. • many of these benefits come from the simple inclusion of the customer, and the feedback that the customer provides during the initial stages of a QFD effort. • this feedback provides the focus for the team and they have a sense that they are all working toward a common goal. • this is a powerful mindset for people to have on a project. History • There are several ideas that Akao merged and evolved together to form QFD. Akao describes at least three core techniques that he combined into QFD: • statistical process control, • design quality, and • value engineering.
  • 29. History The approximate time-line for QFD’s development and integration into manufacturing is in Table 3. Year Activity • 1966 Bridgestone Tire Corporation uses a "process assurance items" table • 1967 Akoa writes about QFD • 1972 Mitsubishi's heavy Industries Kobe Shipyard uses a "quality chart" (House of Quality) • 1978 Toyota Auto body uses QFD • 1983 First QFD Seminar in Japan • 1990's American automotive industry adopts QFD • 1996 Survey indicates that QFD is used more in the US than in Japan, based on a survey of companies that participated in QFD seminars and conferences QFD Time-line [Akao, 1997]
  • 30. The Traditional QFD Process "Quality Function Deployment is a process of listening to the 'voice of the customer', identifying the customer's needs, and incorporating those needs in the design and production of goods and services" [Madu, 1999]. This quote emphasizes the role of QFD in the entire production scheme, not just at the beginning. QFD is NOT equal to the House of Quality! As part of investigating QFD as a requirements engineering tool, however, we have to focus on the quality charts (House of Quality) since it is more relevant to requirements engineering than the other QFD concepts. The House of Quality is a blueprint for product development [Madu, 1999]. It's called a "house" because of its physical appearance. Customer requirements, technical requirements, requirements prioritization, and design targets all merge onto the quality chart through a multi-step process.
  • 31. QFD and software development life cycle [Betts, 1989];
  • 32. Traditional QFD Phase - The Four-Phase Model A common model describing how the quality chart helps a team produce a product is the four-phase model presented in Figure Control documents Machine settings Control methods maintenance Operation Sampling Engineering Parts Key process characteristics characteristics operators characteristics characteristics Key process operators Engineering Customer attributes Parts
  • 33. QFD t TQM De sig n Of Ex pe rim De en sig ts nF DOE or M an ufa c tur ing The voice of the QFD DFM FTA SPC Survey customer Fa u lt T ra c eA na lys is QFD and other technical tools in a TQM program
  • 37. QFD Methodology 1. Identify customers (both internal and external). 2. Create a list of customer requirements (WHATS). * Record customer responses to the question: "What are the important (qualities, characteristics, elements, features) of _____________?" * Record in customer's own words - "Voice of the Customer." * Categorize hierarchically (primary, secondary, tertiary,...). 3. Prioritize the customer requirements on a scale of 1-5. 4. Compile list of design requirements (HOWS) necessary to achieve the market-driven whats. * Each requirement should be quantified. * Arrows show direction for improvement ( up for increasing, down for decreasing, etc.)
  • 38. Start with WHATs and HOWs
  • 39. Determine relationship 5. Determine relationship of design requirements to customer requirements. * Cell strengths quantify the importance of each HOW to achieving each WHAT. Strong relationship Some relationship Weak relationship No mark for no relationship
  • 40. Adding correlations between WHATs and HOWs
  • 41. 6.Determine how the . customer perceives competitors' abilities to meet requirements. * Competition benchmarking. * Rate competitors on a scale of 1-5 with respect to each customer requirement. 7. Rank the technical importance of each design requirement. * Absolute rank is total of relationship value (quantify step 5 relationships) times customer importance ranking. * Relative importance is based on assigning ordinal ranking to each design requirement based on absolute rank (from previous step).
  • 42. 8. Rate the technical difficulty of each design requirement . so design team can focus on the important/difficult HOWS. 9. Establish correlation matrix (roof of House of Quality) to determine interrelationships of design requirements. • Strong positive interaction Positive interaction Strong negative interaction Negative interaction 10. Determine target values for the design requirements (HOW MUCH). 11. Areas that require concentrated effort are identified. Key elements are identified for follow-up matrix development. Assessment of technical difficulty and importance are useful in identifying these elements.
  • 43. QFD matrix with objective measures added
  • 45. House of quality Roof Hows? Trade off matrix (similar and/or conflicts) Inter relationship between Technical descriptors Ceiling / II floor Technical descriptors Hows? (voice of the organization) Product design characteristics Whats? Expressed in engineering terms Whats and Hows (between customer requirements and technical descriptors) Interior walls LHS RHS Prioritized customer Customer requirements (voice of the customer) requirements Foundation Prioritized technical How much? Descriptors Technical BM Degree of technical difficulty Target value
  • 46. House of Quality LHS - Customer requirements: it is on the left side of the HOQ. This section documents the “voice of customer” It represents the "what's" of the system. Affinity diagrams and Tree diagrams are used to structure the requirements. RHS - Planning Matrix: It is on the right side of the HOQ matrix. It represents the Customer Competitive Assessment. It Provides customers’ views on existing products. This matrix uses questionnaires to elicit information. Technical requirements: This section lists how the company will meet the customer requirements. This is the "HOWS" of the system. It represents the engineering characteristics or voice of the company. This information is collected by QFD design team and structured using Affinity diagrams and Tree diagrams.
  • 47. House of Quality This information includes: Top-level solution-independent metrics Product/service requirements Product/service features or capabilities Relationship Matrix: It occupies the middle portion of the HOQ diagram which is the largest portion. It uses the prioritization matrix. It shows how well customer requirements are addressed by product features. Roof: This is the Correlation matrix. It shows how the HOWs conflict with one another This section focuses on design improvement. It focuses on negative relationships in the design. Targets: This the final section of House of Quality matrix. It summarizes the conclusions of the planning matrix. It includes three parts: • Technical priorities (relative importance of each technical requirement) • Competitive benchmarks (relative position of the existing product) • Targets (engineering target values to be met by the new product design)
  • 48. House of Quality • In this process, a single quality chart represents each phase. • The left-hand side of the chart contains a list of "what" characteristics the product must exhibit. • They are matched up with several "hows," technical requirements that enable the product to satisfy the "whats" within the same chart. In the first phase, for example, the first list of "whats" contains the "voice of the customer" list of requirements. • Then several engineering characteristics enable the product to satisfy those initial customer requirements. • The list of "hows" from a previous phase take on the role of the "whats" for the next phase. • So the second phase, for example, matches parts characteristics that will enable the product to satisfy the engineering characteristics listed previously. • Note the immediate traceability from one quality chart to the next. • This is the linking mechanism that causes us to describe the customer requirements as "driving" the entire product design process.
  • 50. House of Quality Cascaded matrices are used to propagate the customer voice through more detailed parts of the design and solution stages.
  • 51. QFD: Summary • * The importance of QFD: • - Provides a framework for upfront planning and product development. - Uses multi-functional teams to enhance design and decision- making. - Promotes teamwork (necessary for Concurrent Engineering). - Maintains customer ideas and requirements, in the customer's words, throughout the process. • * Engineered products adhering to customer wants result in customer satisfaction.
  • 52. Benefits of QFD Customer driven: The focus is on customers wants, not what the company thinks the customer wants. The "Voice of the Customer" drives the development process. Competitive analysis: Other products in the marketplace are examined, and the company product is rated against the competition. Reduced development time: The likelihood of design changes is reduced as the QFD process focuses on improvements to be made to satisfy key customer requirements. Careful attention to customer requirements reduces the risk that changes will be required late in the project life cycle. Time is not spent developing insignificant functions and features. Reduced development costs: The identification of required changes occurs early in the project life cycle. Minimizing changes following production reduces warranty costs and product support costs. Documentation: A knowledge base is built as the QFD process is implemented. A historical record of the decision-making process is developed.
  • 53. Taguchi’s Quality Loss Function (QLF) • The quality loss function is based on the work of Electrical engineer, Dr.GENICHI TAGUCHI • (born January 1, 1924, in Tokamachi, Japan) • worked during 1950’s to improve Japan’s post-WWII telephone communication system • Served as Director- Japanese Academy of Quality from 1978 to 1982 • Awarded the Deming prize in 1960- development of various techniques for industrial optimization • Father of the “Taguchi Method” and “Robust Engineering” • QLF view disagrees with the traditional (goalpost) view. • The quality loss function recognizes that products falling between specific limits are not all equal. DR. GENICHI TAGUCHI (B. 1924) -Loss Function.
  • 54. Taguchi’s Quality Loss Function Don’t run away! • Not a mathematician? • You can still successfully apply Taguchi Method concepts to your service business. • Basic concepts are simple. • He combined the engineering, statistical methods, and experimental design principles with the economy of manufacturing • The objectives of his philosophy is to design quality into every product and corresponding processes • Taguchi’s technique is the off-line quality control method, where efforts are taken to build quality in upstream DR. GENICHI TAGUCHI ie., from manufacturing to design 1924) (B. -Loss Function.
  • 55. The Quality Loss Function (QLF) • The four following statements summarize Taguchi’s philosophy. 1. We cannot reduce cost without affecting quality. 2. We can improve quality without increasing cost. 3. We can reduce cost by improving quality. 4. We can reduce cost by reducing variation. When we do so, performance and quality will automatically improve. DR. GENICHI TAGUCHI • In Taguchi’s view, (B. 1924) quality is not defined by specific limits, -Loss Function. but rather on whether or not it creates a financial loss to society. An example given is a defective automobile exhaust system creating air pollution. • There are many types of quality loss functions. However, in all types, the loss is determined by evaluating variation from a specific target. Taguchi’s philosophy includes three general ways to evaluate the relationship between quality and variability.
  • 56. Taguchi’s Quality Loss Function Quality Defined • “Any engineered system reaches its ‘ideal function’ when all of its applied energy (input) is transformed efficiently into creating desired output energy.” (Robust p. 6) • Employee energy = input • Customer satisfied = output CUSTOMER SATISFACTION • Design to the highest standards early in the process to eliminate all non-random errors • Quality Loss = Loss to Society quantified through “Quality Loss Function” • Variation (+/-) from optimal measure results in a loss. DR. GENICHI TAGUCHI (B. 1924) -Loss Function.
  • 57. Taguchi’s Quality Loss Function Resources Expended on Quality Design Service Delivered Post Service Delivery DR. GENICHI TAGUCHI (B. 1924) -Loss Function.
  • 58. Taguchi’s Quality Loss Function Customer Satisfaction Ways to measure service: 1. Returning customers 2. Number of complaints (1:10) 3. Number of compliments 4. Employee attitude Design: • Equipment – No breakdowns • Specific jobs defined – Need to know responsibilities • Policies and Procedures – What do you want, anyway? • Taguchi Method experiment DR. GENICHI TAGUCHI (B. 1924) -Loss Function.
  • 59. Quality Loss Concept • Deviation from target results in loss. – Lower than target – Greater than target – Both lose • Quantify the Loss
  • 60. Quality Loss Function DR. GENICHI TAGUCHI (B. 1924) -Loss Function.
  • 61. DR. GENICHI TAGUCHI • v (B. 1924) -Loss Function.
  • 62. Quality Loss Function L(y) = k(y-m)2 L(y) = Loss in rupees k = constant = cost to correct tolerance2 y = reported value m = mean value (average) (Taguchi On Robust Technology p. 22) DR. GENICHI TAGUCHI (B. 1924) -Loss Function.
  • 63. Example: • Company C received an average of 10 complaints per month last year. In November they received 15 complaints (y). Management sets an acceptable level at 2 (tolerance). • It costs the company Rs.50 directly per complaint to correct the problems. They determined the cost in lost sales to be Rs.100. • Total cost per complaint: Rs.150 cost to correct k = constant = tolerance2 k = Rs.150/22 = Rs.37.50 DR. GENICHI TAGUCHI L(y) = k(y-m)2 (B. 1924) L(y) = 37.50 (15-10)2 -Loss Function. = 37.50 (5)2 = 37.50 (25) = Rs.937.50 is loss for the month of November
  • 64.
  • 65. 1. Nominal is better approach In this approach, the closer to the target value, the better. . It does not matter whether the deviation is above or below the target value. Under .this approach the deviation is quadratic. • 2.Smaller is better approach The smaller is better approach is when a company desires smaller values. As the value gets larger, the loss incurred grows. 3.Larger is better approach Larger is better occurs when a company desires higher values of a characteristic. Two examples given are employee participation and the customer acceptance rate. Under this approach, the larger the characteristic, the smaller the quality loss function.
  • 66. • What are the losses to society from poor quality? . • the cost of poor quality goes beyond direct costs to the manufacturer such as reworking or waste costs. Traditionally manufacturers have considered only the costs of quality up to the point of shipping out the product. Taguchi aims to quantify costs over the lifetime of the product. Long term costs to the manufacturer would include brand reputation and loss of customer satisfaction leading to declining market share. Other costs to the consumer would include costs from low durability, difficulty interfacing with other parts, or the need to build in safety margins.
  • 67. Great, so what is the actual loss function? • Think for a moment about how the costs of quality would vary with the products deviation on either side of the mean. Now if you were to plot the costs versus the diameter of a nut, for example, you would have a quadratic function, with a minimum of zero at the target diameter. We expect therefore that the loss (L) will be a quadratic function of the variance (σ, or standard deviation) from the target (m). The squared-error loss function has been in use since the 1930's, but Taguchi modified the function to represent total losses. Next we will walk though the derivation of the Taguchi Loss Function.
  • 68. . Loss function: This is the case for nominal is best L= K(y-m) ^2 K=constant of proportionality L=Loss M= Average Loss function: 1. Effectively a one-sided tolerance => L=KY^2 (small is better) 2. L=K(l/y^2) (bigger is better)
  • 69.
  • 70. Uses of Quality Loss Function (QLF) Data • 1. Reduces Costs • There are three ways that managers can use QLF to reduce costs. • 1. Move the average of the actual distribution closer to the target value. 2. Reduce variability. 3. Do a combination of both. • 2. Setting Specific Limits • The data from the quality loss function can be used to determine where limits should be set to help minimize losses.
  • 71. Total Productive Maintenance ( TPM ) • What is Total Productive Maintenance ( TPM ) ? It can be considered as the medical science of machines. • Total Productive Maintenance (TPM) is a maintenance program which involves a newly defined concept for maintaining plants and equipment. • The goal of the TPM program is to markedly increase production while, at the same time, increasing employee morale and job satisfaction.
  • 72. Total Productive Maintenance ( TPM ) • TPM brings maintenance into focus as a necessary and vitally important part of the business. It is no longer regarded as a non-profit activity. • Down time for maintenance is scheduled as a part of the manufacturing day and, in some cases, as an integral part of the manufacturing process. • The goal is to hold emergency and unscheduled maintenance to a minimum. • TOTAL -All encompassing by maintenance and production personnel working together • PRODUCTIVE-Production of goods and services that meet the customer requirements • MAINTENACE-Keeping the plant and equipment in good condition at all times
  • 73. Total Productive Maintenance ( TPM ) • Why TPM ? TPM was introduced to achieve the following objectives. The important ones are listed below. • Avoid wastage in a quickly changing economic environment. • Producing goods without reducing product quality. • Reduce cost. • Produce a low batch quantity at the earliest possible time. • Goods send to the customers must be non defective.
  • 74. Similarities and differences between TQM and TPM : • The TPM program closely resembles the popular Total Quality Management (TQM) program or its extended form TQP (process) • Many of the tools such as employee empowerment, benchmarking, documentation, etc. used in TQM are used to implement and optimize TPM. Similarities: • Total commitment to the program by upper level management is required in both programs • Employees must be empowered to initiate corrective action, and a long range outlook must be accepted as TPM may take a year or more to implement and is an on-going process. Changes in employee mind-set toward their job responsibilities must take place as well. Differences: Category TQM TPM Object Quality ( Output and effects ) Equipment ( Input and cause ) Mains of attaining goal Systematize the management. It is software oriented Employees participation and it is hardware oriented Target Quality for PPM Elimination of losses and wastes.
  • 75. Steps in introduction of TPM in a organization A - PREPARATORY STAGE : • STEP 1 - Announcement by Management to all about TPM introduction in the organization : Proper understanding, commitment and active involvement of the top management is needed for this step. Senior management should have awareness programs, after which announcement is made to all. Publish it in the house magazine and put it in the notice board. Send a letter to all concerned individuals if required. • STEP 2 - Initial education and propaganda for TPM : Training is to be done based on the need. Some need intensive training and some just an awareness. Take people who matters to places where TPM already successfully implemented.
  • 76. Steps in introduction of TPM in a organization • STEP 3 - Setting up TPM and departmental committees : TPM includes improvement, autonomous maintenance, quality maintenance etc., as part of it. When committees are set up it should take care of all those needs. • STEP 4 - Establishing the TPM working system and target : Now each area is benchmarked and fix up a target for achievement. • STEP 5 - A master plan for institutionalizing : Next step is implementation leading to institutionalizing wherein TPM becomes an organizational culture. Achieving PM award is the proof of reaching a satisfactory level.
  • 77. Steps in introduction of TPM in a organization B - INTRODUCTION STAGE • This is a ceremony and we should invite all. Suppliers as they should know that we want quality supply from them. Related companies and affiliated companies who can be our customers, sister concerns etc. Some may learn from us and some can help us and customers will get the communication from us that we care for quality output. C – IMPLEMENTATION STAGE • In this stage eight activities are carried which are called eight pillars in the development of TPM activity. Of these four activities are for establishing the system for production efficiency, one for initial control system of new products and equipment, two for improving the efficiency of administration and one for control of safety, sanitation and working environment. D - INSTITUTIONALISING STAGE • By all there activities one would has reached maturity stage. Now is the time for applying for Planned Maintenance award. Also think of challenging level to which you can take this movement.
  • 78. Operational Performance Effectiveness Overall Equipment Effectiveness
  • 79.
  • 80. Pillars of TPM 1. 5S 2. Jishu Hozen (Autonomous group or maintenance) 3. Kaizen 4. Planned Maintenance 5. Quality Maintenance 6. Training 7. Office TPM 8. Safety, Health and Environment PILLAR 1 - 5S : TPM starts with 5S. Problems cannot be clearly seen when the work place is unorganized. Cleaning and organizing the workplace helps the team to uncover problems. Making problems visible is the first step of improvement. Japanese Term English Translation Equivalent 'S' term • Seiri Organization Sort • Seiton Tidiness Systematize • Seiso Cleaning Sweep • Seiketsu Standardization Standardize • Shitsuke Discipline Self - Discipline
  • 81. Pillars of TPM–Pillar 2 PILLAR 2 - JISHU HOZEN ( Autonomous maintenance ) • This pillar is geared towards developing operators to be able to take care of small maintenance tasks, thus freeing up the skilled maintenance people to spend time on more value added activity and technical repairs. The operators are responsible for upkeep of their equipment to prevent it from deteriorating. • Policy : • Uninterrupted operation of equipments. • Flexible operators to operate and maintain other equipments. • Eliminating the defects at source through active employee participation. • Stepwise implementation of JH activities. • Targets: • Prevent the occurrence of 1A / 1B because of JH. • Reduce oil consumption by 50% • Reduce process time by 50% • Increase use of JH by 50%
  • 82. JISHU HOZEN • Steps in JISHU HOZEN : 1.Preparation of employees. 2.Initial cleanup of machines. 3.Take counter measures . 4.Fix tentative JH standards. 5.General inspection . 6.Autonomous inspection 7.Standardization and 8.Autonomous management. 1.Train the Employees : - Educate the employees about TPM, Its advantages, - JH advantages and Steps in JH. - Educate the employees about abnormalities in equipments. 2.Initial cleanup of machines : - Supervisor and technician should discuss and set a date for implementing step1 - Arrange all items needed for cleaning
  • 83. JISHU HOZEN - On the arranged date, employees should clean the equipment completely with the help of maintenance department. - Dust, stains, oils and grease have to be removed. - The things that has to be taken care while cleaning are: Oil leakage, loose wires, unfastened nuts and bolts and worn out parts. - Clean up problems are categorized and suitably tagged. White tag is placed where problems can be solved by operators. Pink tag is placed where the aid of maintenance department is needed. - Contents of tag is transferred to a register. - Make note of area which were inaccessible. - Finally close the open parts of the machine and run the machine.
  • 84. JISHU HOZEN 3.Counter Measures : - Inaccessible regions had to be reached easily. e.g. If there are many screw to open a fly wheel door, hinge door can be used. Instead of opening a door for inspecting the machine, acrylic sheets can be used. - To prevent work out of machine parts necessary action must be taken. - Machine parts should be modified to prevent accumulation of dirt and dust. 4.Tentative Standard : - JH schedule has to be made and followed strictly. - Schedule should be made regarding cleaning, inspection and lubrication and it also should include details like when, what and how.
  • 85. JISHU HOZEN 5.General Inspection : - The employees are trained in disciplines like Pneumatics, electrical, hydraulics, lubricant and coolant, drives, bolts, nuts and Safety. - This is necessary to improve the technical skills of employees and to use inspection manuals correctly. - After acquiring this new knowledge the employees should share this with others. - By acquiring this new technical knowledge, the operators are now well aware of machine parts. 6.Autonomous Inspection : - New methods of cleaning and lubricating are used. - Each employee prepares his own autonomous chart / schedule in consultation with supervisor. - Parts which have never given any problem or part which don't need any inspection are removed from list permanently based on experience including good quality machine parts. - This avoid defects due to poor JH. - Inspection that is made in PM is included in JH. - The frequency of cleanup and inspection is reduced based on experience.
  • 86. JISHU HOZEN 7.Standardization : - Up to the previous step only the machinery / equipment was the concentration. However in this step the surroundings of machinery are organized. Necessary items should be organized, such that there is no searching and searching time is reduced. - Work environment is modified such that there is no difficulty in getting any item. - Everybody should follow the work instructions strictly. - Necessary spares for equipments is planned and procured. 8.Autonomous Management : - OEE and OPE and other TPM targets must be achieved by continuous improve through Kaizen. - PDCA ( Plan, Do, Check and Act ) cycle must be implemented for Kaizen. - PI
  • 87. Pillars of TPM–Pillar 3 KAIZEN : • "Kai" means change, and "Zen" means good ( for the better ). Basically Kaizen is for small improvements, but carried out on a continual basis and involve all people in the organization. • Kaizen is opposite to big spectacular innovations. • Kaizen requires no or little investment. • The principle behind is that “a very large number of small improvements are more effective in an organizational environment than a few improvements of large value.” • This pillar is aimed at reducing losses in the workplace that affect our efficiencies. • By using a detailed and thorough procedure we eliminate losses in a systematic method using various Kaizen tools. • These activities are not limited to production areas and can be implemented in administrative areas as well.
  • 88. KAIZEN Kaizen Policy : • Practice concepts of zero losses in every sphere of activity. • relentless pursuit to achieve cost reduction targets in all resources • Relentless pursuit to improve over all plant equipment effectiveness. • Extensive use of PM analysis as a tool for eliminating losses. • Focus of easy handling of operators.
  • 89. KAIZEN Kaizen Target : • Achieve and sustain zero losses with respect to minor stops, measurement and adjustments, defects and unavoidable downtimes. • It also aims to achieve 30% manufacturing cost reduction. Tools used in Kaizen : • PM analysis • Why - Why analysis • Summary of losses • Kaizen register • Kaizen summary sheet. • The objective of TPM is maximization of equipment effectiveness. • TPM aims at maximization of machine utilization and not merely machine availability maximization. • As one of the pillars of TPM activities, Kaizen pursues efficient equipment, operator and material and energy utilization, that is extremes of productivity and aims at achieving substantial effects. • Kaizen activities try to thoroughly eliminate 16 major losses.
  • 90. KAIZEN 16 Major losses in an organization: Loss Category 1. Failure losses – Breakdown loss 2. Setup / adjustment losses 3. Cutting blade loss 4. Start up loss 5. Minor stoppage / Idling loss. 6. Speed loss - operating at low speeds. 7. Defect / rework loss 8. Scheduled downtime loss Losses that impede equipment efficiency 1. Management loss 2. Operating motion loss 3. Line organization loss 4. Logistic loss 5. Measurement and adjustment loss Losses that impede man work loss 1. Energy loss 2. Die, jig and tool breakage loss 3. Yield loss. Losses that impede effective use of production resources
  • 91. Pillars of TPM–Pillar 4 PLANNED MAINTENANCE : It is aimed to have trouble free machines and equipments producing defect free products for total customer satisfaction. This breaks maintenance down into 4 "families" or groups which was defined earlier. • Preventive Maintenance • Breakdown Maintenance • Corrective Maintenance • Maintenance Prevention With Planned Maintenance we evolve our efforts from a reactive to a proactive method and use trained maintenance staff to help train the operators to better maintain their equipment. Policy : • Achieve and sustain availability of machines • Optimum maintenance cost. • Reduces spares inventory. • Improve reliability and maintainability of machines.
  • 92. PLANNED MAINTENANCE Target : • Zero equipment failure and break down. • Improve reliability and maintainability by 50 % • Reduce maintenance cost by 20 % • Ensure availability of spares all the time. Six steps in Planned maintenance : 1. Equipment evaluation and recoding present status. 2. Restore deterioration and improve weakness. 3. Building up information management system. 4. Prepare time based information system, select equipment, parts and members and map out plan. 5. Prepare predictive maintenance system by introducing equipment diagnostic techniques and 6. Evaluation of planned maintenance.
  • 93. Pillars of TPM–Pillar 5 QUALITY MAINTENANCE : • It is aimed towards customer delight through highest quality through defect free manufacturing. • Focus is on eliminating non-conformances in a systematic manner, much like Focused Improvement. • We gain understanding of what parts of the equipment affect product quality and begin to eliminate current quality concerns, then move to potential quality concerns. • Transition is from reactive to proactive (Quality Control to Quality Assurance).
  • 94. QUALITY MAINTENANCE • QM activities are to set equipment conditions that preclude quality defects, based on the basic concept of maintaining perfect equipment to maintain perfect quality of products. • The condition are checked and measured in time series to vary that measure values are within standard values to prevent defects. • The transition of measured values is watched to predict possibilities of defects occurring and to take counter measures before hand.
  • 95. QUALITY MAINTENANCE Policy : • Defect free conditions and control of equipments. • QM activities to support quality assurance. • Focus of prevention of defects at source • Focus on poka-yoke. ( fool proof system ) • In-line detection and segregation of defects. • Effective implementation of operator quality assurance. Target: • Achieve and sustain customer complaints at zero • Reduce in-process defects by 50 % • Reduce cost of quality by 50 %.
  • 96. QUALITY MAINTENANCE Data requirements : • Quality defects are classified as customer end defects and in house defects. • For customer-end data, we have to get data on customer end line rejection field complaints. • In-house, data include data related to products and data related to process Data related to product : • Product wise defects • Severity of the defect and its contribution - major/minor • Location of the defect with reference to the layout
  • 97. QUALITY MAINTENANCE • Magnitude and frequency of its occurrence at each stage of measurement • Occurrence trend in beginning and the end of each production/process /changes. (Like pattern change, ladle/furnace lining etc.) • Occurrence trend with respect to restoration of breakdown/modifications /periodical replacement of quality components. Data related to processes: • The operating condition for individual sub-process related to men, method, material and machine. • The standard settings/conditions of the sub-process • The actual record of the settings/conditions during the defect occurrence.
  • 98. TRAINING : Pillars of TPM–Pillar 6 • aimed to have multi-skilled revitalized employees whose morale is high and who has eager to come to work and perform all required functions effectively and independently. • Education is given to operators to upgrade their skill. It is not sufficient know only "Know-How" by they should also learn "Know-why". • By experience they gain, "Know-How" to overcome a problem what to be done. This they do without knowing the root cause of the problem and why they are doing so. Hence it become necessary to train them on knowing "Know-why". The employees should be trained to achieve the four phases of skill. The goal is to create a factory full of experts.
  • 99. TRAINING The different phases of skills are Phase 1 : Do not know. Phase 2 : Know the theory but cannot do. Phase 3 : Can do but cannot teach. Phase 4 : Can do and also teach. Policy :Focus on improvement of knowledge, skills and techniques. • Creating a training environment for self learning based on felt needs. • Training curriculum / tools /assessment etc conductive to employee revitalization • Training to remove employee fatigue and make work enjoyable.
  • 100. TRAINING Target : • Achieve and sustain downtime due to want men at zero on critical machines. • Achieve and sustain zero losses due to lack of knowledge / skills / techniques • Aim for 100 % participation in suggestion scheme. Steps in Educating and training activities : • Setting policies and priorities and checking present status of education and training. • Establish of training system for operation and maintenance skill up gradation. • Training the employees for upgrading the operation and maintenance skills. • Preparation of training calendar. • Kick-off of the system for training. • Evaluation of activities and study of future approach.
  • 101. Pillars of TPM–Pillar 7 OFFICE TPM : • Office TPM should be started after activating four other pillars of TPM (JH, K, QM, PM). Office TPM must be followed to improve productivity, efficiency in the administrative functions and identify and eliminate losses. This includes analyzing processes and procedures towards increased office automation. Office TPM addresses twelve major losses. They are: • Processing loss • Cost loss including in areas such as procurement, accounts, marketing, sales leading to high inventories • Communication loss • Idle loss • Set-up loss • Accuracy loss • Office equipment breakdown • Communication channel breakdown, telephone and fax lines • Time spent on retrieval of information • Non availability of correct on line stock status • Customer complaints due to logistics • Expenses on emergency dispatches/purchases
  • 102. OFFICE TPM How to start office TPM ? • A senior person from one of the support functions e.g. Head of Finance, MIS, Purchase etc should be heading the sub-committee. Members representing all support functions and people from Production & Quality should be included in sub committee. TPM co-ordinate plans and guides the sub committee. • Providing awareness about office TPM to all support depts. • Helping them to identify P, Q, C, D, S, M in each function in relation to plant performance • Identify the scope for improvement in each function • Collect relevant data • Help them to solve problems in their circles • Make up an activity board where progress is monitored on both sides - results and actions along with Kaizens. • Fan out to cover all employees and circles in all functions.
  • 103. Office TPM Kobetsu Kaizen topics for Office TPM : • Inventory reduction • Lead time reduction of critical processes • Motion & space losses • Retrieval time reduction. • Equalizing the work load • Improving the office efficiency by eliminating the time loss on retrieval of information, by achieving zero breakdown of office equipment like telephone and fax lines.
  • 104. Office TPM and its Benefits • Involvement of all people in support functions for focusing on better plant performance • Better utilized work area • Reduce repetitive work • Reduced inventory levels in all parts of the supply chain • Reduced administrative costs • Reduced inventory carrying cost • Reduction in number of files • Reduction of overhead costs (to include cost of non-production/non capital equipment) • Productivity of people in support functions • Reduction in breakdown of office equipment • Reduction of customer complaints due to logistics • Reduction in expenses due to emergency dispatches/purchases • Reduced manpower • Clean and pleasant work environment.
  • 105. P Q C D S M in Office TPM • P - Production output lost due to want of material, Manpower productivity, Production output lost due to want of tools. • Q - Mistakes in preparation of cheques, bills, invoices, payroll, Customer returns/warranty attributable to BOPs, Rejection/rework in BOP's/job work, Office area rework. • C - Buying cost/unit produced, Cost of logistics - inbound/ outbound, Cost of carrying inventory, Cost of communication, Cost- Demurrage • D - Logistics losses (Delay in loading/unloading) Delay in delivery due to any of the support functions Delay in payments to suppliers Delay in information • S - Safety in material handling/stores/logistics, Safety of soft and hard data. • M - Number of Kaizens in office areas.
  • 106. How office TPM supports plant TPM • Office TPM supports the plant, initially in doing Jishu Hozen of the machines (after getting training of Jishu Hozen), as in Jishu Hozen at the initial stages machines are more and manpower is less, so the help of commercial departments can be taken, for this • Office TPM can eliminate the loads on line for no material and logistics. Extension of office TPM to suppliers and distributors : • This is essential, but only after we have done as much as possible internally. • With suppliers it will lead to on-time delivery, improved 'in-coming' quality and cost reduction. • With distributors it will lead to accurate demand generation, improved secondary distribution and reduction in damages during storage and handling. • In any case we will have to teach them based on our experience and practice and highlight gaps in the system which affect both sides. • In case of some of the larger companies, they have started to support clusters of suppliers.
  • 107. Pillars of TPM–Pillar 8 SAFETY, HEALTH AND ENVIRONMENT : Target : • Zero accident • Zero health damage • Zero fires • In this area focus is on to create a safe workplace and a surrounding area that is not damaged by our process or procedures. This pillar will play an active role in each of the other pillars on a regular basis. • A committee is constituted for this pillar which comprises representative of officers as well as workers. • The committee is headed by Senior vice President ( Technical ) • Utmost importance to Safety is given in the plant. Manager (Safety) is looking after functions related to safety. To create awareness among employees various competitions like safety slogans, Quiz, Drama, Posters, etc. related to safety can be organized at regular intervals.
  • 108. Overall Equipment Effectiveness (Total Effective Equipment Performance)
  • 109.
  • 110. Calculation: OEE = Availability x Performance x Quality • . Example: • A given Work Center experiences... • Availability of 86.7% • The Work Center Performance is 93.0%. • Work Center Quality is 95.0%. • OEE = 86.7% Availability x 93.0% Performance x 95.0% Quality = 76.6% • Total effective equipment performance • Where OEE measures effectiveness based on scheduled hours, TEEP measures effectiveness against calendar hours, i.e.: 24 hours per day, 365 days per year. • TEEP, therefore, reports the 'bottom line' utilization of assets. • Calculation: TEEP = Loading x OEE • Example: • A given Work Center experiences... • OEE of 34.0% • Work Center Loading is 71.4% • TEEP = 71.4% Loading x 34.0% OEE = 24.3% • Stated another way, TEEP adds a fourth metric 'Loading', Therefore TEEP = Loading x Availability x Performance x Quality
  • 111. Loading • The Loading portion of the TEEP Metric represents the percentage of time that an operation is scheduled to operate compared to the total Calendar Time that is . available. The Loading Metric is a pure measurement of Schedule Effectiveness and is designed to exclude the effects how well that operation may perform. • Calculation: Loading = Scheduled Time / Calendar Time • Example: • A given Work Center is scheduled to run 5 Days per Week, 24 Hours per Day. • For a given week, the Total Calendar Time is 7 Days at 24 Hours. • Loading = (5 days x 24 hours) / (7 days x 24 hours) = 71.4% • Availability • The Availability portion of the OEE Metric represents the percentage of scheduled time that the operation is available to operate. The Availability Metric is a pure measurement of Uptime that is designed to exclude the effects of Quality, Performance, and Scheduled Downtime Events. • Calculation: Availability = Available Time / Scheduled Time • Example: • A given Work Center is scheduled to run for an 8 hour (480 minute) shift. • The normal shift includes a scheduled 30 minute break when the Work Center is expected to be down. • The Work Center experiences 60 minutes of unscheduled downtime. • Scheduled Time = 480 min - 30 min break = 450 Min • Available Time = 450 min Scheduled - 60 min Unscheduled Downtime = 390 Min • Availability = 390 Avail Min / 450 Scheduled Min = 90%
  • 112. Performance . • The Performance portion of the OEE Metric represents the speed at which the Work Center runs as a percentage of its designed speed. The Performance Metric is a pure measurement of speed that is designed to exclude the effects of Quality and Availability. • Calculation: Performance = (Parts Produced * Ideal Cycle Time) / Available Time • Example: • A given Work Center is scheduled to run for an 8 hour (480 minute) shift with a 30 minute scheduled break. • Available Time = 450 Min Sched - 60 Min Unsched Downtime = 390 Minutes • The Standard Rate for the part being produced is 40 Units/Hour or 1.5 Minutes/Unit • The Work Center produces 242 Total Units during the shift. Note: The basis is Total Units, not Good Units. The Performance metric does not penalize for Quality. • Time to Produce Parts = 242 Units * 1.5 Minutes/Unit = 363 Minutes • Performance = 363 Minutes / 390 Minutes = 93.0%
  • 113. . • Quality • The Quality portion of the OEE Metric represents the Good Units produced as a percentage of the Total Units Started. The Quality Metric is a pure measurement of Process Yield that is designed to exclude the effects of Availability and Performance. • Calculation: Quality = Good Units / Units Started • Example: • A given Work Center produces 230 Good Units during a shift. • 242 Units were started in order to produce the 230 Good Units. • Quality = 230 Good Units / 242 Units Started = 95.0%
  • 114. FMEA Introduction FMEA -Failure Mode Effect Analysis is an analytical technique that goes in for combining Technology and Experience of people to identify foreseen failures in a product or process and planning to eliminate the Failure. Definition FMEA is a group of activities to understand and evaluate potential failure of product or process and its effects, and identify actions that eliminate or reduce the potential failures.
  • 115. What is an FMEA? • FMEA stands for Failure Mode Effect Analysis. • Learning from each failure can be costly & time consuming. • FMEA is a systematic method of studying failure. • This ensures that time is not wasted & the root of the problem is quickly determined. • It is used to Identify methods to eliminate or reduce the chance of that failure occuring in the future. • It should be noted that an FMEA is a Living Document that is used to anticipate & prevent failures from occuring. • As such it must be continuously updated as changes in the system occur. • Failure Mode is defined as the manner by which a failure is observed. • It describes the way the failure occurs.
  • 116. What exactly is an FMEA & how was it developed?
  • 117. Failure mode: FMEA -Basic terms "The manner by which a failure is observed; it generally describes the way the failure occurs." Failure effect: The immediate consequences a failure has on the operation, function or functionality, or status of some item Indenture levels: An identifier for item complexity. Complexity increases as the levels get closer to one. Local effect: The Failure effect as it applies to the item under analysis. Next higher level effect: The Failure effect as it applies at the next higher indenture level. End effect: The failure effect at the highest indenture level or total system. Failure cause: Defects in design, process, quality, or part application, which are the underlying cause of the failure or which initiate a process
  • 118. Types of FMEA Design FMEA use in the design process by identifying known and foreseeable failures modes and ranking failures according to their impact on the product. Sub Classification Equipment FMEA Maintenance FMEA Service FMEA System FMEA Process FMEA is used to identify potential process failure modes by ranking failures and establishing priorities, and its impact on the Internal or external customers.
  • 119. FMEA Using FMEA in problem solving Root Cause Analysis / FMEA Failure mode and effect Effect Severity Corruption of hard disk 20 Loss of whole documents 10 Character loss 7 Printout scrambled 4 FMEA table
  • 121.
  • 123. How to do a FMEA Analysis?- an example What are the effects of box failures on the This example is a system? bottoms-up approach to a Design FMEA, but a tops-down approach could also be used. What are the effects of board failures on the box? What are the effects of part failures on the board?
  • 124. Role of FMEA in a design
  • 125. .
  • 126.
  • 127. 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.
  • 128. Advantages • Improve the quality, reliability and safety of a product/process • Improve company image and competitiviness • 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 eliminitation of potential failure modes • Emphasis problem prevention • Minimize late changes and associated cost • Catalyst for teamwork and idea exchange between functions
  • 129. 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.[citation needed] • 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.

Notes de l'éditeur

  1. Robust Engineering is an excellent way to build high quality into the design of your product. Increasingly being applied successfully to the service. Engineers and mathematicians can study and understand the methodology. But what if you are a manager in a service company, trying to improve services? DON’T GET SCARED OFF BY THE FORMULAS! If you understand the basics, you can apply Robust Engineering to your service and measure its success.
  2. Problem Solving at different stages of service delivery. If the problem is corrected in the design phase, less resources are expended than if the problem is corrected post-delivery.
  3. How do you know if you are meeting the needs of your customers? Take a good look at you customer base. How many are return customers? Find out why they come back, or don’t come back. How many complaints do you receive? Remember for every complaint you hear, there are TEN you don’t hear. How many customers take the time to compliment your service? You employees must be happy with what they do.
  4. Whenever a product or service misses its intended quality mark, a loss to society occurs. Whether it is too little service or too much service, resources are lost.