Quality Management

1. TOTAL QUALITY
MANAGEMENT
Done by
Anitha V

2. TOTAL QUALITY MANAGEMENT
• TQM is a philosophy involves 3 principles
Customer satisfaction
Employee involvement
Continuous improvement in performance

3. Problem-solving process
• Plan-do-check-act cycle
A cycle also called the Deming Wheel, used by firms actively
engaged in continuous improvement to train their work teams in
problem solving.

4. Six Sigma
A comprehensive and flexible system for achieving, sustaining and
maximizing business success.
It is driven by close understanding of customer needs; disciplined use of
facts, data and statistical analysis and diligent attention to managing,
improving and reinventing business processes.
It is a strategy since it focuses at total customer satisfaction.
It is a discipline because it has a formal sequence of steps called the Six
Sigma Improvement Model.
It is a set of tools because that make use of powerful tools.

5. Development of
Six Sigma • Motorola is credited with developing six
sigma more than 20 years ago to improve its
manufacturing capability in a world market.
• They noticed that their competitors product
are outperforming than them, they planned to
reduce their defect to 1/10th the previous level
of performance for that they worked smarter
not just harder.
• After 10 months, the defect rate improved
70% and the yield improved 55%.
• The procedure for achieving that were
documented and refined and that became Six
Sigma.

6. • It relates the goal of achieving low degree of variation in a process
output i.e SD=1.5, there will be only 3.4 defects per million
opportunity.
• Without shift in process avg, process generating Six sigma quality
would have only 0.002 defects per million opportunity.
• Though it is developed to improve manufacturing processes, it also
applicable in service related jobs.
• Applying six sigma to service process is more challenging that for
manufacturing process.

8. Reasons for challenge
• The work product is much more difficult to see, they are in the form of
proposals, presentations, meeting, invoices, design, etc.,
• Service processes can be changed quickly.
• Hard facts on service process performance are often hard to come by.
For example: Loan closure process.

9. SIX SIGMA IMPROVEMENT MODEL
• Applied to project involving incremental improvement to processes or
to projects requiring major changes.
• 5 step procedure:
Define
Measure
Analyze
Improve
Control

10. IMPLEMENTATION
• Top-Down Commitment
• Measurement Systems to Track Progress
• Tough Goal Setting
• Education
• Communication
• Customer Priorities

11. OBJECTIVES:
At Strategic level- to align organization to its market place
At Operational level-to move the business product or service within the
zone of customer specification.
ELEMENTS:
Customer
Processes
Employees

12. SIX SIGMA TOOLS
Idea generation
tools
Brainstorming
Fishbone
diagrams
SIPOC
Structure tool
Multivoting
Affinity
diagrams
Data Gathering
Tools
Statistical
sampling
Operational
definitions
VOC
MSA
Spreadsheets
Checklist

13. Mathematics of SIX SIGMA
• Six sigma quality approach relies upon the normal distribution.Most of
the output process will meet the specification.Some will deviate to
varying extent measured by standard deviation.
• Such problem can be tackled in 2 ways.
• It widens the design width by stretching upper and lower specification
limits.
• Analyzing and reengineering the process so that the value of sigma
drops.

14. Software used for SIX SIGMA
• Arena
• ARIS Six Sigma
• JMP
• MATLAB or GNU Octave
• Microsoft Visio
• STATA
• STATISTICA

15. Seven statistical tools of quality
• Flow chart
• Check sheet(Data collection
sheet)
• Histogram
• Pareto Diagram
• Cause and effect
Diagram(Fishbone diagram)
• Scatter Diagram
• Control chart

17. Improving Quality by TQM
• KAIZEN
Continuous improvement
• 5’S
The practice of good house keeping

18. KAIZEN Implementation at National
Bank
DAY 1- Full of problems
KAIZEN IMPLEMENTATION
DAY 5-Solutions for problems

19. DAY 1-Discssion on goals to be achieved
• Training participants on topics that cover basic concepts related to the
GOAL.
• Teaching relevant lean or six sigma concepts and reviewing relevant
data.

20. DAY-2 -Unit walk
• Discussions on the problems and situations being studied.
• Group visits each portions of process-cross functional representation
may find insights of the area.

21. DAY-3-Identifying solutions
• Designed for clarifying problems and brain storming solutions.
• Developing action plans for implementing solution.

22. DAY-4&5
• Applying the solutions.
• Used to test the solutions.
• Prepare findings in formal report.
• Making it work.

23. RESULTS
• Cycle time-30% faster to 95% faster.
• One administrative process- 20 minutes to 12 minutes
• Complaint resolution-30 days to 8 days.
• Fiscal indicators +ve.
• New revenue- $6 million to $9million.
• Other projects led to cost reduction saving hundreds of thousands of
dollars.

24. 5’S
• SEIRI
• SEITON
• SEISO
• SEIKETSU
• SHITSUKE

25. Control charts in TQM
Control charts have long been used in
manufacturing, stock trading algorithms,
and process improvement methodologies
like Six Sigma and Total Quality
Management (TQM).
The purpose of a control chart is to set
upper and lower bounds of acceptable
performance given normal variation.

26. • The control chart serves to
“sound the alarm” when a
process shifts (for instance,
a machine suddenly
breaking on a factory floor)
or if someone has a
breakthrough that needs to
be documented and
standardized across the
larger organization. Simply
put (without taking
anomalies into
consideration), you'll know
something needs to be fixed
if you're below your lower
control limit or above your
upper control limit.

27. • X bar control chart
• This type of chart graphs the
means (or averages) of a set
of samples, plotted in order
to monitor the mean of a
variable, for example the
length of steel rods, the
weight of bags of
compound, the intensity of
laser beams, etc.. In
constructing this chart,
samples of process outputs
are taken at regular
intervals, the means of each
set of samples are calculated
and graphed onto the X bar
control chart.

28. • Range “R” control chart
• This type of chart demonstrates
the variability within a process. It
is suited to processes where the
sample sizes are relatively small,
for example <10. Sets of sample
data are recorded from a process
for the particular quality
characteristic being monitored.
For each set of date the difference
between the smallest and largest
readings are recorded. This is the
range “R” of the set of data. The
ranges are now recorded onto a
control chart. The center line is
the averages of all the ranges.

29. • Standard Deviation “S” control
chart.
• The “S” chart can be applied
when monitoring variable data. It
is suited to situations where there
are large numbers of samples
being recorded. The “S” relates to
the standard deviation within the
sample sets and is a better
indication of variation within a
large set versus the range
calculation. An advantage of
using the standard deviation is
that all data within a set are
utilized to determine the variation,
rather than just the minimum and
maximum values.

30. Quality circle
A quality circle or quality control circle is a group of
workers who do the same or similar work, who meet
regularly to identify, analyze and solve work-related
problems. It consists of minimum three and maximum twelve
members in number.
Normally small in size, the group is usually led by a
supervisor or manager and presents its solutions to
management; where possible, workers implement the
solutions themselves in order to improve the performance of
the organization and motivate employees

33. Characteristics of Effective Quality Circles:
1. The atmosphere should be informal, comfortable
and relaxed. The members should feel involved and
interested.
2. Everyone should participate.
3. The objectives should be clear to the members.

34. 4. The members should listen to each other.
5. The group should feel comfortable even when there
are disagreements.
6. The decisions should generally be taken by a kind of
consensus and voting should be minimum.
7. When an action is required to be taken, clear
assignments should be made and accepted by all the
members.
Characteristics of Effective contd..

35. 8. The leader should not dominate the group. The
main idea should not be as to who controls but how
to get the job done.
9. Until a final solution is found and results are
attained feedback is necessary.
Characteristics of Effective contd..

36. Objectives of Quality Circles:
(i) To improve quality, productivity, safety and cost
reduction.
(ii) To give chance to the employees to use their
wisdom and creativity.
(iii) To encourage team spirit, cohesive culture among
different levels and sections of the employees.
(iv) To promote self and mutual development including
leadership quality,
(v) To fulfill the self-esteem and motivational needs of
employees.

37. Implementation of Quality Circles in an
Organisation:
(a) Few managers representing production, quality
control, design, process planning form the Quality
Circle (Q.C.) steering committee. This acts as a
policy making body and will monitor the Q.C. in
the Organisation.
(b) Top management must attend the orientation
courses designed for them.
(c) A committed top and middle management
is necessary.

38. Rules for Quality Circles:
(a) Each member can contribute an idea on his turn
in rotation.
(b) Each member offers only one idea per turn
regardless of how many he or she has in mind.
(c) Not everyone has an idea during each rotation,
when this occurs just say “Pass”.
(d) No criticism or comments should be passed on
the ideas being contributed by the member whatever
old it may look to be, welcome their ideas.

39. Duties of Circle Leader:
(i) He must assume the responsibility of guiding the
members.
(ii) He must make his members sure about what is
going on.
(iii) He must channelise the discussions.
(iv) Every member is allowed equal opportunity.
(v) Specific task be assigned to each member.
(vi) He must work in coordination with facilitator.

40. THANK YOU!!