TQM - Process Approach

2. • “Increase Inspection Adds Cost not
Value.”
• Traditional Enterprise
a) External Suppliers b)External
Customers
• Inspection: a) Incoming Stage
b) Delivery Stage

3.  “WHEN PROBLEM ALWAYS OCCUR, THEY
CHANGED THE INSPECTOR OR PUT MORE
INSPECTOR. (increase expenditure/inspection is not
worth it)
 Customer supplier chain
Aim for Quality Continuous Control  To ensure d
all the stages in the process.

4. Customer supplier chain
 Is nothing, but dividing the entire process of
manufacturing or providing services
 SUB-PROCESS
a) Internal Suppliers
b) Internal Customers
Employees within the organization who acted as
Customers and Suppliers

5. Sub Processes (ETX model)
Entry Task  Exit
Ext. Sup. Int. Sup. Task Int. Cus.  Ext. Cus
*All inputs /outputs Should have Specifications,
conformance to be verified
• Sub-process Owner check Supplies before using
• Full Responsibility
• The need for supervision/management will get reduce

6. Educate
 Educate the employees to treat the internal customers
and suppliers as the organization would treat the
external customers and suppliers
 Not to compromise quality
 Sub-process should define clearly with ownership so
that employees are empowered to conduct themselves
formally as suppliers and customers

7. Advantage of Customer Supply
Chain
 Improves Communication
 Reduces Communication Gap
 Helps documenting the process Flow
 Helps Defining the specifications
 Helps Finalizing verification methodology
 Facilitate immediate feedback
 The management can easily identify problem
It helps building quality
 Absolute control over quality
 Helps the management to understand its own organization
and operations better

8. Supply chain Management
 Supply Chain – is the series of links and shared
processes that exist between the suppliers and
customers.
 Number of distributors a) Wholesalers b) Warehouse
c)Retailers
 Down Stream – Flow of a product from supplier to
customers
 Up stream – Demand of information from customer
to supplier

9.  SUPPLY CHAIN MANAGEMENT – is a task
optimizing all activities throughout the supply chain
Supply chain management involves the ff:
 Demand Planning
 Manufacturing planning
 Supply planning
 Transportation Planning

10.  DEMAND PLANNING – A planning process to predict the
demand and ser vices based on forecast.
 MANUFACTURING PLANNING AND SCHEDULING– A
planning process that optimally schedules manufacturing orders
with production capacity.
 SUPPLY PLANNING– is process that meets customer demand
on available inventory and transportation resources. This
includes Distribution Requirements Planning (DRP), which
determines the need to replenish inventory at branch
warehouses.
 TRANSPORT PLANNING – A planning process to optimally
schedule, load, and delivery shipment while considering
constraints such as delivery date, mode of transport, carrier etc.

11.  Software Systems a) Enterprise Resources
Planning- Focused on execution b)Supply Chain
Management – Focused on Planning
 The performance of supply chain management is to
efficiently integrate, manufacturers, warehouses and
retailers, so that the products are produced and
distributed efficiently at optimal cost.
 Supply chain management plays an important role in
satisfying the customers

12. Benefits of SCM
 Improved Customer Service
 Reduction of Cost
 More efficient Management
 Increased efficiency in the transaction between supply
chain partners
 Better manufacturing resource management
 Optimized manufacturing schedules
 Optimal distribution of existing inventory across the
supply chain
 Enhanced Customer Value often in the lower prices

13. Just in Time (JIT) Manufacturing
 The product should not be old and stocked one over
the other, waiting for the orders. The products should
made to order , just in time for immediate delivery to
customers.
 Just in Time Manufacturing – is defined “ a philosophy
that focused attention on eliminating waste by
purchasing or manufacturing just enough of the right
items just in time”.
 Zero inventories

14.  Just in time Based on two principles
1. Production and supply of required number of parts when needed.
2. JI DOKA (self-Actualization), which means utilizing the full capacity
of the workforce.
Objectives of Just in time
• Development of optimal process and be competitive
• Streamlining of operations and eliminating unwanted processes
• Continuous improvement
• Reducing the levels of wasted materials
• Increasing of efficiency of reduction

15.  Just in Time can be practiced by defining and implementing
several concepts such as:
 Kaizen
 Team Work
 Multi-function workforce
 Optimizing plant lay out
 Eliminating wastages
 Reduced set up time
 Kanban
 Material requirement planning
 Manufacturing Resource planning
 Involvement of people
 Plant optimization

16. Not following JIT increase Cost
 The reason for JIT is to reduced cost
 If materials are stored for a year it means a great amount of
money is blocked in materials.
 The money invested on the materials adds to the interest
burden every day.
 If material is received is a year old, precautions have to be
taken for storing, handling, and security. The company has
to make additional space for storage.
 Materials deteriorates, add cost to manufacture to the
products and cost of the end product
 The demand will naturally come down, if the end product
is sold at a higher price.
 If demand is low, profit cannot be earned.

17. Why practice Just in Time
 The reason for practicing JIT is for more prosperity of
the company and more profits for the company

18. Requirements of JIT
 Practicing TQM
 Documented System
 Trustworthy suppliers
 Efficient Customer
 People are educated, trained, and coached continuously
 Competitive people
 Machinery
 Proper operating environment
 Excellent System
 Proper layout of machinery and manufacturing
 House keeping

19. Lean Manufacturing
 Lean Manufacturing is a whole systems approach that
creates a culture in which everyone in the organization
continuously improves process and production
 The major Tenets of Lean Manufacturing
1. Quick Changeover/ Set up Reduction
2. Value Stream Analysis
3. Pull/Kanban system
4. Total Productive
5. Maintenance
6. Workplace organization 5S system
7. Cellular Manufacturing