Quality

National Workshop on “Enabling MSME
to be Competitive through Quality Tools”
1
MSIL approach for supplier upgradation
through cluster activity
- By Dr. K. Kumar
Training Support Consultancy Copyright ©. All rights reserved.
What is Quality ?
Kano Model
WHAT IS QUALITY …...
PAST EXPERIENCE
WORD OF MOUTH
COMMUNICATIONS
PERSONAL NEEDS
EXPECTED
QUALITY
PERCEIVED
QUALITY
DELIVERED
QUALITY
EXTERNAL
COMMUNICATION
TO CUSTOMER
CUSTOMER
PROVIDER
GAP *
Quality is meeting or exceeding customer’s perceived
needs.
To some people Quality means that they have met
whole range of internal specifications, rules and
standards.
Any definition of Quality must include the customer,
the voice of authority. The voice above all other voices
must be the voice of customer.
WHAT IS QUALITY …...
6
TOTAL QUALITY MANAGEMENT
TQM IS BOTH A PHILOSOPHY AND A SET
OF GUIDING PRINCIPLES THAT FORM THE
FOUNDATION FOR A
CHANGING &
CONTINUOUSLY IMPROVING
ORGANISATION

2
ELEMENTS OF CUSTOMER SATISFACTION
PRODUCT DESIGN
CONFORMANCE
SERVICE
COST EFFECTIVE
PRICE EFFECTIVE
RIGHT PLACE
RIGHT TIME
RIGHT AMOUNT
IN USE
IN PRODUCTION
EVERYONE CARES
QUALITY
COST
DELIVERY
SAFETY
MORALE
WORLD CLASS
QUALITY FOR
CORPORATE
SURVIVAL
FULL
CUSTOMER
SATISFACTION
/ DELIGHT
ASSURANCEOFQUALITY
As a
Good Customer
I will
As a
Good Process
Owner or User
I Will:
As a
Good Supplier
I Will:
1) Agree on and
document my
requirements with
my supplier
2) Return defective
inputs to my supplier
promptly and
tactfully
3) Feed back input
quality data to my
supplier
1) Learn and apply
the tools of
quality and
teach others.
2) Continuously
improve my
process-reduce
defects, cycle
time and know
benchmarks
3) Document and
display my
process, defect
levels, and CI
projects
1) Understand my
customer
requirements and
agree on and
document my
deliverables
2) Reduce defects
and variations in
my output
3) Measure my
output quality
from my
customer’s
perspective
My
Customer
My
Supplier
My input My output
Requirement
And
feedback
Requirement
And
feedback
I Am
Responsible
for
Quality
Living Our CI Values
9
Principles of Quality
10
Principle of total quality
Principle 1
• Proactively and systematically understand current and
future customer needs (External and Internal)
• Customer complaints analysis is critical, it can only be
done after the complaint is resolved.
Proactively Companies must anticipate
customer’s needs.
• Systematically it must be ensured that the process
used to resolve the complaints is valid, objective
and statistically reliable.
11
 Proactively and systematically measure the customer’s
perception of how well your organization and your direct
competitors satisfy these needs.
 Robert Galvin, former chairman and CEO of Motorola
cited,
“Only by measuring something it can be truly known.”
In order to be useful, customer satisfaction measurements
must be both objective and reliable.
To ensure objectivity, a number of companies use a third
party to assess customer satisfaction.
Reliability means that for any situation the measurement
process will yield the same, or nearly the same result.
Principle 2
12
 Focus efforts on improving the processes or methods that
satisfy customer needs. Better financial results such as cost
reduction and higher profits are the outcome of process
improvements.
 Total Quality approach would be to improve the process by
streamlining it, reducing errors, shortening process, cycle time
and eliminating activities that don’t affect Customer
Satisfaction.
 To improve quality, reduce process variation.
 Variation is present in all activities and processes. Although
they might be made or delivered according to the same design,
there will be differences in parts, products and services. In
many instances, variation is within an acceptable tolerance
band.
Principle 3

3
Variation
13
14
•Common causes of process variation are
ever present and vary randomly within some
statistical distribution. Process is stable when
common causes are present.
•Special causes of variation are those outside
the common causes that are ever present. The
variation is due to specific assignable causes
that are non random occurrences. Special
causes are sporadic and not predictable.
Principle 4
Variation
A stable process in control (Natural or common cause)
Upper
process
limit
Mean
Lower
process
limit
Time
Customer
Satisfaction
Upper
process
limit
Mean
Lower
process
limit
Time
Customer
Satisfaction
An unstable process out of control(Special Cause)
16
•Develop robust design for products and processes.
•Robust design are not sensitive to variations of
production processes, components, raw materials,
and customer usage.
•The traditional engineering approach is to design a
target (target value, target function, target region)
then reduce variation around the target.
•The new approach developed by Genichi Taguchi,
is to design for robust function, then adjust the
target.
Principle 5
17
L
L
Taguchi Loss Function
L = k (y – T)2
L = Cost Incurred as quality
Deviates from the target
y = Performance Characteristic
T = Target
k = Quality Loss Function
y
y
Step function
LSL USL
A
0
T - T T+
Loss($)
LSL USL
A
0
T - T T+
Loss($)
Quadratic function
18
Principle 6
•Use the scientific method for solving problems
and improving processes.
•This means that organizations must manage by
fact and not by assertion. Dr. W. Edwards Deming
has said
“In God we trust, but from all others we demand
data.”
•Managing by fact really means applying the
scientific process, which is described very clearly
by the Plan-Do-Check-Act (PDCA) Cycle

4
19
PDCA Cycle
Objective
Method
Education
Implementation
Checking
Corrective
action
Product
Consumer
Data
Inside & Outside
Company
Abroad
20
 When there are problems, and expectations haven’t been
met, look to the system. Don’t blame people.
 Instead of finger pointing, management should focus on
the system. Instead of asking “Who did it?” or “Who didn’t do
it.?” Management should ask “What is wrong with the
system?”
Paradoxically the whole system is controlled by
management and not by people who work inside the system.
Emphasize prevention instead of detection. Inspection does
not add value and it doesn’t improve quality. It only helps to
ensure that what goes to the customers is okay.
Principle 7
21
 The ultimate way to ensure quality, however, is to
design processes so that regardless of variation of
process control parameters the output is optimal or nearly
optimal. Such processes are said to be robust designs. A
related concept is the principle of Fool Proofing, or
poka - yoke in Japanese.
 Put Quality ahead of quantity.
It means:- Consistent Quality standards
Principle 8
22
 Never pass on known or suspected bad quality to
the next person in the process.
 Follow 3-NAI activity
 Do not receive
 Do not make
 Do not send defects to the next process
Cont.
Biggest Challenge
•How to Maintain the Market Share & How many varieties of products are
introduced in the Market every Year?
•To improve the Quality of the Products in terms of Quality, Cost &
Delivery.
For improving Quality what should we do?
QC 7 Step Solving approach
 QC 7 steps Procedure is the basic procedure for solving
problems scientifically, rationally & effectively.
 It is the fundamental Problem solving strategy which
allows to solve the problems rationally & scientifically.
 If we want to achieve EFFECTIVE improvement we have
to know the rules of the game i.e. QC 7 Steps
Procedure.
 The secret of our problem solving is to know the
Procedure & act in accordance with it.

5
QC 7 Step Formulae
 The conventional method is based on trial & error.
•Grasp Problem
•Set Target
•Identify gap
between existing
situation & Target
•Investigate Causes
•Plan
Countermeasures
•Implement
Countermeasure
•Institutionalize
Expose Problem
Experience, Intuition,
nerve, Inspiration
Implement Counter-
Measure
Expose Problem
Analyze Causes
Implement Counter-
Measure
Figure‐1a. b.
Conventional Problem
Solving approach
QC Problem Solving
approach
Problem
arises
Identify its
Causes
Act against
the Causes
Symptom
Disappears
Problem
Solved
In case of QC Problem Solving approach, the problem really has been Solved; this
is true Problem Solving
Figure‐2 QC Problem Solving approach
QC 7 Step Problem Solving Formula
Table‐1
Step
No.
Basic Steps Action Item
1 Select Topic •Identify Problem
•Decide Topic
2 Understand the
situation & Select
Target.
Understanding Situation
•Collect Data
•Decide characteristic to attack
•Decide Target
3 Plan Activities. •Decide what to do
•Decide Schedule, division of responsibility etc.
4 Analyze Causes •Check present values of Characteristic
•List Possible Causes
•Analyze Causes
•Decide items to tackle.
Cont…
Table‐1 Cont.
Step
No.
Basic Steps Action Item
5 Consider & Implement
Countermeasures
Consider Countermeasures
•Propose the ideas for Countermeasures
•Discuss how put Countermeasures into effect.
•Check details of the Countermeasures
Implement Countermeasures
•Plan how to implement Counter Measures
•Implement Countermeasures
6 Check Results •Check results of Countermeasures
•Compare results with Target
•Identify Tangible & Intangible benefits
7 Standardize & Establish
Control
Standardize
•Establish new standards & revise old ones.
•Decide methods of control
Establish Control
•Familiarize relevant people with the methods.
•Educate those responsible.
•Verify that benefits are being maintained.
QC 7 Step Problem Solving Formula
Procedure for Problem Solving
 In the QC Seven Step Procedure the following points are
important:
1. Understand the situation & set targets: This
would mean analyzing data on the existing & past
situation & then decide the target. Fig. 3 shows the
procedure to calculate the targets
Baseline 117642
Entitlement 86013
Difference 31629
70% of Diff. 22140
Target @70% of
Entitlement
95502
Figure‐3
2. Analysis of the causes : Late Dr. Kaoru Ishikawa,
the father of Japanese Quality Control, wanted it to
be renamed as “analyze the process”. But ultimately
in JUSE 7 step procedure analyze the causes was
retained & is widely used.
3. Countermeasures: After the analysis of the Causes,
the team proceeds to take the countermeasures to
prevent the occurrence of the defects.

6
4. Standardize & Establish the Control : In the Past
this step was known as “Apply the Brakes” i.e.
prevent any back sliding & establish the permanent
Countermeasure. Failing to check the effect of
Countermeasure is like omitting the touch up after
Painting. This would need establishing the new
standards or revising the old standards. Familiarize
people with the new standards & verify that the
benefits are being maintained.
5. Target Control: While fixing the targets & the time
limits for the achievements following key points are
important.
 What control Characteristic are to be taken up for
study.
 By When the study will be completed.
 By How much such as reduce the defect at the
Quality gate by 30%.
Figure‐4
TOOLS & TECHNIQUES
USED FOR PROBLEM
SOLVING
AT
MACE
Basic 7 QC Tools
Checksheet Run Chart Pareto Chart
Control Chart
Fishbone Diagram Scatter Plot
Histogram
 Originally developed by Sakichi Toyoda.
 Later used within Toyota Motor
Corporation during the evolution of their
manufacturing methodologies.
 The architect of the Toyota Production
System, Taiichi Ohno, described the 5
whys method as "the basis of Toyota's
scientific approach by repeating why five
times, the nature of the problem as well as
its solution becomes clear
Taiichi Ohno
Why-Why Analysis
36
This method of
problem solving
simply involves
asking “Why” a
number of times
(typically five times
is enough) until the
root cause of a
problem is
determined .
Problem Solving: 5 Whys

7
Why -Why Analysis at Toyota
Why there is a puddle of oil on the Shop Floor?
• Because Machine is Leaking Oil
Why the Machine is Leaking oil?
• Because Gasket has deteriorated
Why Gasket has deteriorated?
• Because we bought the Gasket made of inferior
Material.
Why did we buy a Gasket of Inferior Material?
Because we got a Fair deal on those Gaskets
Why we purchased the Material at Fair Price when the
Quality of the Gasket was not Good ?
a) Because the Purchasing agent gets evaluated on
short term Cost Savings
Why 1?
Why 2?
Why 3?
Why 4?
Why 5?
Shainin Techniques for Problem
Solving
 Dorian Shainin (September 26, 1914 –
January 7, 2000) was an influential
American quality consultant, aeronautics
engineer, author
 Known for his contributions in the fields
of industrial problem solving, product
reliability, and quality engineering,
particularly the creation and
development of the “Red X” concept
Dorian Shainin
Solving
Disassembly/Asse
mbly
X-BOB X-WOW
Initial 113 86
Ist 115 84
IInd 111 85
Median 113 85
Range 4 2
D( Diff of Medians = ( 113 -85 ) = 28
d ( Avg. of
Ranges )
= ( 4+2 )/2 = 3
Component Search
S.No. Surface Finish Status Of the
Pump
1 65 Bad
2 64 Bad
3 61 Bad
4 58 Bad
5 51 Bad
6 48 Bad
7 47 Bad
8 45 Bad
9 32 Good
10 32 Good
11 28 Good
12 24 Good
13 22 Good
14 22 Good
15 21 Good
16 19 Good
Paired Comparison
-50
-40
-30
-20
-10
0
10
20
Temp
Sequence
Component Search
Solving
Process Parameter Snorkel Position
Parameter Range 0to 1/2"
Bag no.
1 1/2 B
2 1/2 B
3 1/2 B
4 1/2 B
5 1/2 B
6 1/4 B
7 1/4 B
8 1/4 B
9 0 G
10 0 G
11 0 G
12 0 G
13 0 G
14 0 G
15 0 G
16 0 G
End Counts 8+ 8 = 16
Product Process Search B Vs C
B
225
223
219
C
217
212
210
Modified Component Search
Disassembly/Asse
mbly
X-BOB X-WOW
Initial 113 86
Ist 115 84
IInd 111 85
Median 113 85
Range 4 2
D( Diff of Medians = ( 113 -85 ) = 28
d ( Avg. of
Ranges )
= ( 4+2 )/2 = 3
-50
-40
-30
-20
-10
0
10
20
Temp
Sequence
Component Search
S.NO. ITEM TARGET
1 Safety : Zero Accidents
2 5 S – Score 90% min.
3 Quality : 3.4 ppm
4 Supply to Customer 2 hourly basis
5 Customer Line Stops Zero
6 Inventory Turns: Min 50
7 Change over time < 10 min.
8 OEE (Overall Equipment Efficiency) 85 - 90 %
9 VA to Employee cost 5
10 VSM : Value stream mapping 25%
11 Cost 50% less
12 Absenteeism (Unauthorized) 0%
13 Direct to Indirect manpower 60 : 40
14 Kaizens / employee 24/emp/year
15
New Product Development
At 50% less time and
Cost
16 Training Hours / Emp / Year > 5 % of working hrs
Attributes for World Class
CLUSTER APPROACH
AT
MACE

8
MODEL
F R
WORLD CLASS
•TEI through SSQC activities.
•Single Piece Flow using Model Line; identifying
Lean Manufacturing Projects (MPS) based on
Customer Requirements.
•Inventory Turns Ratio Management
•Energy Consumption Management
•Cost of Poor Quality
•Initial Supply Control
•Value added per employee cost (VAPCO)
•Training on SSQC, MPS, EMS, QMS, NPD.
PHASE 2
•Complete 5-S
•Up-gradation through advance Quality Tools
•Hoshin-Kanri (MFO).
•Autonomous Maintenance; OEE
•Yield Improvement
•Implementation of 8 Pillars Check sheet
•Training on advance tools like DOE, DMAIC &
OEE
Phase 3
•Capturing Customer Voice
•1-S,2-S and Visualization
•Customer Concern (QCD) through why-why
Analysis.
•Red Bin Analysis using basic QC Tools
•Daily Work Management for Target Monitoring.
•Monthly Performance Review at Gemba &
Collaborative Learning
•5 New Kaizen/month/vendor.
•Training on 5S, VUD, 7 QC tools, CAPA
PHASE 1
•TPM Cluster
•Certified Quality Engineer
•Six Sigma Black Belts.
•Benchmarking Visits.
•Horizontal Deployment of Cluster Activity
through Tier-2.
Phase 4
Concept of Cluster
 A group of 5 to 10 vendors ( non-competing) get together to
undergo a common training session and get hand held
experience.
 Individual attention is given to all cluster members & all
queries during the session are answered.
Advantages of Cluster
 Lower Cost.
 Group discussions & sharing of ideas.
 Competitiveness.
 Learning from one another.
 Exposure to best practices.
 Learning in a team.
 Exposure to benchmarking.
 Improved motivation.
CLUSTER MEETING IN PROGRESS
EXACTNESS
The first step in the improvement journey is Exactness. This
involves three parameters:
 Exactness of Process: The vendor must ensure that the
process is being followed exactly as per the standards, as
per written down instructions. To achieve this the vendor
must employ check points in Daily Work management.
 Exactness of Measurement:
Any process is as good as its measurement. The vendor
must ensure that there is a control plan for all the
instruments & measuring gauges; periodic calibrations
are carried out as per the plan & all instruments /gauges
are kept in good working condition.
This image cannot currently be displayed.
EXACTNESS

9
Direct Cause
Cause
Cause
Cause
Cause
Root Cause
1. Initial Problem Perception
(Large , Vague, Complicated Problem)
2. Clarify the Problem
3. The “ Real “ Problem
4. POC
5. Countermeasure
6. Evaluate
7. Standardize
5 Why ?-
Investigation
Of Root Cause
Why ?
Grasp the
Situation
Why ?
Why ?
Why ?
Why ?
Basic Cause and Effect
Investigation
Funnel
Approach
Practical Problem Solving Process
TEAM ORIENTED PROBLEM SOLVING
[ TOPS ]
 We encourage Tier – 2 vendors in Quality Circle & Lean
Manufacturing activities .
 Every Year a competition amongst the Tier – 2 vendors is
held at MSIL where each vendors make a presentation
about the QC & Lean Manufacturing activities [ MPS ].
 In order to motivate the vendors, awards are given through
MSIL, the parent organization .
 We also encourage our Tier – 2 vendors to participate in
National Competitions to understand the best practices.
TEAM ORIENTED PROBLEM SOLVING [ TOPS ]
Quality Circle Competition in progress
TEAM ORIENTED PROBLEM SOLVING [ TOPS ]
Kaizen Competition at CII – Confederation of Indian
Industries
Result of Cluster approach
initiated by MACE
Measure 2004 - 05 2010 - 11 2011 – 12 Improvement
Rejection
ppm
10933 2695 1617
No. of defects
per month
432 263 159
85 %
63 %
Total no. of Tier 2 clusters : 19
Total no. of Tier 2 vendors covered : 150
MPS for Tier-2 vendors
Implementation status

10
QC Activity for Tier-2 vendors
QC Projects completed in 2011-12 till Oct’11
MACE conducted Kaizen Meet for MSIL Vendors. Total of 200 Tier-1 & 400 Tier-2
vendors participated in this competition.
The results were as follow:
Tier-1
AWARD VENDOR NAME CLUSTER COUNSELLOR
Winner M/s Premier Pin Minda Cluster Mr. Amit
Chauhan
1st Runner Up M/s Bhamra Fabricators Subros
Cluster
Mr. O.P.Uttareja
2nd Runner Up M/s Lakhani Sona Cluster Mr. R.P.Bhatti
AWARD VENDOR NAME COUNSELLOR
Winner M/s KML Seat-1 Mr. Prateek Mandal
1st Runner Up M/s Bright Autoplast Mr. Himnashu Sharma
2nd Runner Up M/s Tenneco Mr. Sagar Vashisht
Tier-2
MACE Kaizen Meet
M/S Bhambra Fabricator receiving the Best Kaizen Award in T-2 Category
As a part of Quality month celebration,Tier-2 Quality circle competition was
organized at MACE on 26th Nov’11.
Each of the cluster member held the competition at their end to select the best QC
Circle at their end for Competition in MACE.
A Total of 12 Quality Circles from 12 Tier-2 Clusters participated in this
competition.
The results of competition were as follow:
Winner : Superfine : Lumax Cluster
1st runner up : Aar Aar Industries : Pricol Cluster
2nd runner up : NRB Bearing : Subros Cluster
MACE Quality Circle Convention
Lumax T-2- Superfine receiving the winner Award of Quality Circle Competition
M/S Precision Pin, Tier-2 of Minda receiving the Zero ppm Certificate

11
M/S Subros receiving the Trophy for Best VSA Score in 2011-12
CII conducts annual Cluster summit in month of September in which various
clusters working with CII, ACMA & MACE are invited to participate by giving
their Kaizens & Case Studies on Problem Solving using 7 QC tools, Why-Why
analysis & Six Sigma.
In year 2011-12, 47 vendors of MSIL participated in this event where the best
Kaizen & the Case studies were adjudged by the Jury consisting of eminent
people from the industry.
A total of 285 Kaizens & 120 Case studies were received by CII for evaluation.
We are happy to inform that the following awards out of the total awards were
bagged by MSIL’s Tier-1 & 2 vendors:
Stream Name of Company
MSME Award Large Award
Manufacturing
Excellence
Auto Décor Pvt. Ltd. 1st Godrej & Boyce Mfg. Co. Ltd.
Mohali
1st
Horizon Industrial Products
Pvt. Ltd.
2nd Minda Industries Limited 2nd
Shivai Enterprises Pvt. Ltd. 3rd Sona Koyo Stering Systems
Ltd.
3rd
Cost
Competitiveness
Bhambra Fabricators 1st Godrej & Boyce Mfg. Co. Ltd.
Shirwal
1st
Mahindra & Mahindra 1st
Energy Efficiency USV Ltd. 1st Godrej & Boyce Mfg. Co. Ltd.
Shirwal
1st
Promed Export Pvt. Ltd. 2nd Mahindra & Mahindra 2nd
Tata Motors Ltd. 3rd
Total Employee
Involvement
Eastman Cast & Forge Ltd. 1st Godrej & Boyce Mfg. Co. Ltd.
Mohali
1st
Rakheja Engineers Pvt. Ltd. 2nd
Vox Populi Godrej & Boyce. Mohali for Manufacturing Excellence
Award Company
1st Award Suman Auto Parts Ltd.
2nd Award Raunaq Automotive Components Ltd.
3rd Award Krishna Maruti Limited
CII Cluster Championship Award Winners
CII Kaizen Award Winners
MSIL Vendors. The Case studies were based on completed MPS Projects.

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