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BA 160 Chapter I

The document is all about the definition, principles, elements, theories, importance, history and distributers of total quality management

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0% found this document useful (0 votes)
206 views100 pages

BA 160 Chapter I

The document is all about the definition, principles, elements, theories, importance, history and distributers of total quality management

Uploaded by

judy anne tomas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 1

Unit Objectives:
At the end of the Unit, the students would be able to:
1. understand the meaning, nature and philosophy of total quality
management;
2. explain the basic principles and concepts of quality;
3. enumerate the components and elements of TQM;
4. differentiate modern TQM from traditional management
5. appreciate the benefits and identify the obstacles in implementing
TQM; and
6. relate the knowledge of TQM to present issues and concerns
Total quality management, now a well known idea, is a
philosophy of management for continuously improving the
quality of products and processes. The idea is that the quality
of products and processes is the responsibility of everyone who
is involved with the development and/or use of the products or
services. TQM involves management, workforce, suppliers, and
even customers, in order to meet or exceed customer
expectations.

Chapter 1
What if jetliners crashed as
often as Microsoft Windows?

Chapter 1
Everyone has had
experiences of poor quality
when dealing with business
organizations.
Chapter 1
The consequences of poor
quality products and services
are lost customers and
opportunities for competitors
to take advantage of the
market need. Chapter 1
Chapter 1
Chapter 1
“Successful companies
understand the powerful
impact of providing
quality products &
services to customers
can have on business”

Chapter 1
• Clients & users expect
quality
Why is • Poor quality results in
quality “rework” at additional cost
• Poor quality results in
important? problems that can be
difficult to diagnose and
solve
• Poor quality can cost lives

Chapter 1
Total – involvement of all
levels in an organization
Quality – degree of excellence
and conformance to agreed
requirements

Management – act, art and manner


of planning, organizing, leading
and controlling quality
Chapter 1
Total – everyone is involve
in
Quality – continuously
improving the products and
services to customers

Management – with data and


profound knowledge
Chapter 1
• Total Quality Management or TQM is
an integrative philosophy of
management for continuously
improving the quality of products
and processes.

• TQM functions on the premise that


the quality of products and
processes is the responsibility
of everyone
* management,
* workforce,
* suppliers,
* community
* customers

Chapter 1
Total Quality
Management isa
leadership and management
philosophy, processes,
and guiding principles
stressing continuous
improvement through
people involvement and
qualitative methods
focusing on total
customer satisfaction.

Chapter 1
• a management approach for an organization,
centered on quality, based on the
participation of all its members and aiming at
long-term success through customer
satisfaction and benefits to all members of
the organization and to society.” (Royse, D.,
Thyer, B., Pageatt D., & Logan, T., 2006).

• It is both a philosophy and set of guiding


principles that represent the foundation of
continuous improving organizations.

Chapter 1
• Is the management of total quality. Total
quality refers to 3 qualities namely:

Quality of return to satisfy the needs of


the shareholders;
quality of products and services to satisfy
specific needs of consumers; and
quality of life –at work and outside work –
to satisfy the needs of the people in the
organization.

* It is an application of quantitative method


of human resources to improve all the
processes within the organization and exceed
customer needs now and in the future.
Chapter 1
Doing the RIGHT thing
RIGHT the FIRST time
Doing it in TIME ALL the
time
Always striving for
IMPROVEMENT
Always SATISFYING the
customer

Chapter 1
• TQM is not a program
• TQM is not a management fad
• TQM is not only about a
product or service quality
• TQM is only a means to an
organizational end
• TQM should never be the focus
of an organization
• It is one of the means to
achieve the focus of the
organization.

Chapter 1
There are two key philosophies in this approach.

• One is the never ending push to improve, which


is referred to as continuous improvement,

• the other is a goal of customer satisfaction which


involves meeting or exceeding customer’s
expectations.

Chapter 1
1. A committed and involved management to provide long-term
top to bottom organizational support.
2. An unwavering focus on the customer, both internally and
externally.
3. Effective involvement and the utilization of the entire work
force.
4. Continuous improvement of the business and production
process.
5. Treating suppliers as partners.
6. Establish performance measure for the processes.

Chapter 1
1. Perfection
2. Consistency
3. Eliminating Waste
4. Speed of delivery
5. Compliance with policies
and procedures
6. Providing a good, usable
product
7. Doing it right the first
time
8. Delighting or pleasing the
customer
9. Total customer service &
satisfaction
Chapter 1
1. satisfying the customer – 1st basic
principle. Meeting and exceeding
customer expectations
2. Satisfying the supplier – 2nd basic
principle – satisfying supplier to
continue business -
3. Continuous improvement – problem-
based. Attempt to fix them quickly is a
cost-efficient way.

Other key principles of TQM

4. Management commitment
5. Employee empowerment
6. Customer focus
7. Fact-based decision making
8. More continuous improvement
Chapter 1
Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement

Chapter 1
1. Quality can and must be managed
2. Processes, not people, are the problem
3. Don’t treat symptoms, look for the cure
4. Every employee is responsible for quality
5. Quality must be measurable
6. Quality improvements must be continuous
7. Quality is a long-term investment

Chapter 1
1. continual improvement
2. competitive benchmarking
3. employee empowerment
4. team approach
5. decision based on facts rather than
opinions
6. knowledge of tools
7. suppliers quality

Chapter 1
TQM Differentiated from Traditional Management Styles

Quality Element Previous Management Concept TQM

Definition Product-oriented Customer orientation


Priorities Second to service and cost First among service and
costs
Decisions Short term Long-term
Emphasis Detection Prevention
Errors Operations System
Responsibility Quality Control Everyone
Problem Solving Managers Teams
Procurement Price Life-cycle costs, partnership

Manager’s role Plans, assigns, controls, finance Delegates, coaches,


facilitates and mentors

Chapter 1
1. Ensures quality in a company’s
products and services
2. For customer satisfaction
3. Increase revenues
4. Reduce wastes
5. Induces teamwork
6. Encourages innovation

Chapter 1
Once an organization embarks on TQM, there will
be obstacles to its successful implementation.
The eight most common obstacles were determined
by Robert J. Masters after an extensive
literature search. These are:

1. Lack of management commitment


2. Inability to change organization culture
3. Improper planning
4. Lack of continuous training and education.
5. Incompatible organizational structure and
individuals and departments.
6. Ineffective measurement techniques and lack
of access to data and results.

Chapter 1
Quality Control Costs Quality Failure Costs

Prevention Costs Internal Failure Costs

Appraisal Costs External Failure Costs


UNDERSTANDING QUALITY


A. Clients &
users expect
quality
B. Poor quality
Why is results in
“rework” at
quality additional
important? cost
C. Poor quality
results in
problems that
can be
difficult to
diagnose and
solve
1. Increase productivity
2. expand market share
3. raise customer loyalty
4. Enhance
competitiveness of the
firm
5. at a minimum, serve as
a price of entry
A. Product Quality

1. Functionality. This refers to the core features and


characteristics of a product. The definition of functionality as
per ISO/IEC 9126:1991: “A set of attributes that bear on the
existence of a set of functions and their specified properties.
The functions are those that satisfy stated implied needs.”

2. Reliability. Consistency of performance over time.


Reliability is measured by mean average time between failures
(MTBF). Reliability is the indicator of the durability of the
products.
3. Usability. A product should be easily usable. The customer
should be able to use the product easily without help of
experts. Thus, each product should be made so that a person
can use it with minimum training.
4. Maintainability. It refers to the ease with which a product can
be maintained in the original condition. It should be repairable
so as to retain to the original quality at the lowest cost at the
earliest possible time.
5. Efficiency. It is the ratio of output to input.
6. Portability. It is defined as set of attributes that bear on the
ability to be transferred from one environment to another.
Manufactured products have several quality dimensions including the
following:
1. Performance: a product’s primary operating characteristics
2. Features: the “bells and whistles” of a product
3. Reliability: the probability of a product’s surviving over a specific period of
time under stated condition of use.
4. Conformance: the degree to which physical and performance
characteristics of a product match pre-established standards.
5. Durability: the amount of use one gets from a product before it physically
deteriorates or until replacement is preferable.
6. Serviceability: the ability to repair a product quickly and easily.
7. Aesthetics: how a product looks, feels, sounds, tastes, or smells.
8. Perceive quality: subjective assessment resulting from image, advertising,
or brand names.
Physical Attributes
Dimensions
Weight
Color
Volume
Transparency
Texture (fine, glossy
etc.)
Taste
Smell
Hardness or tenderness
Freshness
• Usability
• Maintainability
• Ease of installation
• Ease of disposal
• Adequacy/availabilit
y
• Validity
• Safety
• Reliability
The Most Important Dimensions of Service Quality include the
following:

1. Time: How much time must a customer wait?


2. Timeliness: Will a service be performed when promised?
3. Completeness: Are all items in the order included?
4. Courtesy: Do frontline employees greet each customer
cheerfully?
5. Consistency: are services delivered in the same fashion for every
customer, and every time for the same customer?
6. Accessibility and Convenience: Is the service easy to obtain?
7. Accuracy: is the service performed right the first time?
8. Responsiveness: Can the service personnel react quickly and
resolve unexpected problems?
• Timeliness • Availability
• Responsiveness • Applicability
• Accuracy • Validity
• Consistency • Personalized service
• Completeness • Convenience
• Courtesy • Effectiveness
• Variety • Ambiance
the quality which
positively satisfies users
if it surpasses a certain
level. However, even if it
goes below the level, it
does not dissatisfy them
but neither dopes it really
satisfy them.

It is the quality which


strongly dissatisfies
users if it goes below a
certain level, it does
not satisfy them,
instead, it is accepted
by users as it must be.
1. Design – this is the starting point for the level of quality that is
eventually achieved.
2. Conformance to design – which involves ensuring that
operations follow through as intended and it comprises the
workmanship, inspection, and corrective action when necessary.
3. Consumer education – is necessary to increase the chances that
a product will be used for its intended purposes and used in such a
way that it will continue to function properly and safely.
4. Service after delivery – it is a process where in the product or
service is bring up to standard.
Cost of Quality
Quality affects all aspects of the organization
and has dramatic cost implications
Cost of Quality

Quality Control Costs Quality Failure Costs


Prevention Costs Internal Failure Costs
Appraisal Costs External Failure Costs
costs necessary for
achieving high quality

Prevention Costs

Costs incurred in the process of


preventing poor quality from
occurring.

Appraisal Costs

Costs incurred in the process of


uncovering defects.
• Quality planning costs
• costs of developing and
implementing quality
management program
• Product-design costs
• costs of designing
products with quality
characteristics

Process costs
costs expended to make sure productive
process conforms to quality
specifications
Training costs
• costs of developing
and putting on quality
training programs for
employees and
management
Information costs
costs of acquiring and
maintaining data related to
quality, and development of
reports on quality
performance
• Inspection and testing
• costs of testing and inspecting materials,
parts, and product at various stages and at
the end of a process
• Test equipment costs
• costs of maintaining equipment used in testing
quality characteristics of products
• Operator costs
• costs of time spent by operators to gar data
for testing product quality, to make equipment
adjustments to maintain quality, and to stop
work to assess quality
cost consequences of
poor quality

Internal Failure Costs


Costs associated with discovering poor
product quality before the product reaches
the customer.

External Failure Costs

Costs associated with quality problems that


occur at the customer site.
• Scrap costs
• costs of poor-quality products that
must be discarded, including labor,
material, and indirect costs
• Rework costs
• costs of fixing defective products to
conform to quality specifications
• Process failure costs
• costs of determining why production
process is producing poor-quality
products
• Process downtime costs
• costs of shutting down
productive process to fix
problem
• Price-downgrading costs
• costs of discounting poor-
quality products—that is,
selling products as “seconds”
• Customer complaint costs
• costs of investigating and
satisfactorily responding to a
customer complaint resulting
from a poor-quality product
• Product return costs
• costs of handling and
replacing poor-quality
products returned by customer
• Warranty claims costs
• costs of complying with
product warranties
• Product liability costs
• litigation costs
resulting from
product liability and
customer injury
• Lost sales costs
• costs incurred
because customers are
dissatisfied with
poor quality products
and do not make
additional purchases
“The earlier defects are
found, the less costly
they are to correct”

Example:detecting and correcting defects


during product design and product
production is considerably less expensive
than when the defects are found at the
customer site
Quality is not complete
without CUSTOMERS
“Customers are
Ultimate Judge of
Quality”
• Either internal or external
• Individuals or group of persons or entity
• Use, buy, further process distribute or affected by the
product
• The customer is the real “BOSS”.
WHAT CUSTOMERS
REQUIRE?
• External customers do
not care about the
process but how they
are “processed”.
• They do not care about
our costs but on
price, delivery &
quality of product
• To satisfy external
customer, internal
customer must be
satisfied first.
• Do not argue with
customers, you may win
the argument but loses
the customer
WHAT CUSTOMERS
REQUIRE?
• Satisfy, delight &
surprise your customer
Customer satisfaction-
when customer requirements
& expectations are met
Customer Requirements –
are stated need & wants
Customer Delight- when
requirements &
expectations are exceeded
Customer surprise – how to
keep customers happy &
loyal non-stop that they
will always come back
• Everyone in the
organization should be
customer focused or
oriented
Factors Affecting
Quality
1. Management indifference to Quality.
2. Management delusions of infallibility or
the “it can’t happen here because we are
no.1” syndrome.
3. Management obsession with short term
results, profits, market-share, costs
budgets, schedules, stock prices.
4. Indiscriminate costs cutting that leads to
under manning of critical operations,
unreliable product design, inadequate
testing & inspection, poor equipment
maintenance, insufficient employee
training etc.
5. Rushing operations to meet delivery
schedules quotes or project deadlines to
the detriment of quality.
6. Management performance of quality
standards at all levels due to weak
management control system.
SATISFYING the
customer but to keep
them satisfied better
than before and better
than others.
To the industry
leader, the quality
goal is not only to
remain No. 1 but a
far No.1 from the
No. 2.
Quality is a
Journey, not
a
Destination
Chapter II

History and Evolution of

Prepared by: Don Mcarthney C. Tugaoen

1st Semester S.Y. 2018-2019 MMSU-CBEA.BA Department


1st Semester S.Y. 2018-2019 MMSU-CBEA.BA Department
• Dr. Shewhart introduced mathematical formula
and established boundaries of variation of
process; within control. Samples out of
boundaries of control chart signal a problem or
variation.
• Dr. Shewhart became the first to understand,
use and apply the principles of probability and
statistics.
• He gave birth to quality movement with
theoretical approach. Therefore, he is known as
the father of statistical quality control.
• He made differences between acceptable and
unacceptable variation and defined the problem
of managing quality, common causes or
variation, related to process control.
• Dr. Deming’s teachings about statistical
approaches, decision making upon facts,
and the need for simplification had a
profound impact on the Japanese.
• Dr. Deming’s philosophy is based on
improving products and services by
reducing uncertainty and variability in the
decision of manufacturing processes.
• He considers quality as a job of
management. He advocates that higher
quality leads to higher productivity, which
in turn leads to long term competitive
strength.
• Dr. Deming proposed a new thinking
stressing on improving quality in
manufacturing through the use of statistical
quality control techniques.
Deming’s 14 points for quality Management:
1. Create constancy of purpose towards the improvement of product and
Services in order to become competitive, stay in business, and provide jobs.
2. Adopt the new philosophy for the new economic age and awake the
challenges, learn the responsibilities and take on leadership for change.
3. Stop depending on inspection to achieve quality by building quality into the
product.
4. Stop practice of awarding business on the basis of low bids and move towards
single suppliers on a long term relationship of loyalty and trust.
5. Improve constantly in the system of production and services to improve quality
and productivity.
6. Institute modern methods of on-the-job training at all levels.
7. Adopt and institute modern methods of leadership and supervision to help
people and technology work better.
8. Drive out fear, so that everyone can work effectively for the company.
9. Break down barriers between individuals and departments so that people can
work as a team.
10. Eliminate exhortation, goals, slogans, targets for the workforce, as they are
advisory and any way they create adversarial relationship.
11. Eliminate quotas, work in numerical standards and management by
objectives, leadership should be substituted instead.
12. Remove barriers that rob employees of their pride of workmanship and abolish
performance.
13. Institute and encourage for education and retraining for self-improvement.
14. Structure Top Management to empower them to achieve above 13 points. Put
everyone in the company to work to accomplish the transformation.
The Deming Cycle and ISO-9000:
The Deming cycle is accepted in ISO-9000 series,
which includes following.
1. Conduct consumer research and use it in
planning the product (Plan).
2. Production of Goods / Product (Do).
3. Check the product which is as per schedule
(Check).
4. Marketing the product (Act).
5. Analyze how the product is received in the
marketplace in terms of quality, cost and other
criteria (Analyze)

He is father of Japanese Quality revolution, to honor his


contribution in quality, Japanese Govt. introduced “The Deming
Award” in 1951, to encourage companies for quality improvement.
• One of Juran’s contributions is his focus on the
definition of quality and the cost of quality.

• Juran is credited with defining quality as fitness


for use rather than simply conformance to
specifications.

• He is well known for originating the idea of the


quality trilogy: quality planning, quality control,
and quality improvement.

• Dr. Juran specifies a detailed program for quality


improvement process which involves proving the
need for improvement, identifying specific
projects, organizing to guide the projects,
diagnosing the causes, providing remedies,
proving that remedies are effective and providing
control to hold improvements.
The Juran Trilogy: Dr. Juran communicates his
message to managers through following three basic
quality related processes.
A. Quality Planning – It includes identifying the
customers’ needs and expectations, designing products
and services, setting goals, providing training,
implementation of projects, reporting, recognizing, and
communicating results and improvements in systems.
B. Quality Control – It involves, establishing standards,
identifying measurements and methods thereof,
comparing results with actual standards and
interpreting the differences and taking action on
differences.
C. Quality Improvement – It includes use of structured
annual improvements projects and plans, need of
improvement, organizing to guide the projects,
diagnosing the causes, providing and proving remedies
and establishing control to maintain gains made.
• Juran favours the concept of quality circles
because they improve communication
between management and labour.

• Furthermore, he recommends the use of


statistical process control, but does believe
that quality is not free.

• He explains that within the law of diminishing


returns, quality will optimize and beyond that
point conformance is more costly than the
value of the quality obtained.
• Prof. Ishikawa is major contributor, to the Japanese
theory of quality management. He graduated in
1939, in the subject of Applied Chemistry.

• He has invented ‘Fishbone Diagram’ which is


known as ‘Ishikawa’s Diagram’ in1943; a tool, to
analysis of industrial process and solve management
problems.

• He is known as the ‘Father of Quality Circles’. The


Quality circles were launched first time in Nippon
Telegraph and Cable Company in the year 1963.

• Ishikawa proposed seven basic tools to tackle and


solve problems of quality are Pareto Analysis,
Fishbone diagrams, Stratification, Tally Charts,
Histograms, Scatter Diagrams and Control Charts.
Principles proposed by Prof. Ishikawa.
1. The next process is your customer.
2. Apply consumer orientation – think from the
standpoint of the other party.
3. Quality is company wide issue and must be an all
pervasive influence on the way every aspect of
business is conducted.
4. Improvement till existence of company.
5. Use of seven tools.
6. Use facts and data to take decision and make
presentation.
7. Respect human beings and encourage
management through quality control circle
activities.
8. Combine knowledge with action as a discipline.
• As per opinion of Dr. Taguchi, it is necessary to
consider costs to the society along with the
manufacturing, after sales services and other costs.

• He says that quality control is concerned with social


loss that product may cause through its intrinsic
function.

• His contribution is related to quality thinking. It


focuses on attention on the original design phase of
product on service. He says that there are two causes
for variations in products i.e. design characteristics
and ‘noise’. He developed On-line and Off-line
quality control. Off-line quality control is related to
design process mainly known as ‘design of
experiments’.
Dr. Taguchi’s 8 Point formula:
1. Identify the main function side effects and failure
modes.
2. Identify noise factors and testing conditions for
evaluating quality loss.
3. Identify the quality characteristics to be observed
and the objective function to be optimized.
4. Identify the control factors and their alternate
levels.
5. Design the matrix experiments and define the data
analysis procedure
6. Conduct the matrix experiment.
7. Analyze the data, determine optimum levels for the
control factors and predict performance under
these levels.
8. Conduct the verification experiment and plan for
future actions.
• Dr. Feigenbaum devised the concept of Total
Quality Control and is one of the pioneers in
the total quality management. He worked at
General Electric as head of quality.
• He has written an article on total quality
control in May 1957 and published a book on
the same in 1961 i.e. ‘Total Quality Control:
Engineering and Management’. This book is
considered as “Bible” by many Quality
Managers.
• His contribution is concerned with technical
aspect of quality control and makes a focus of
quality control as a business method, including
administrative and human relation functions.

• “According to Feigenbaum, the quality


professional has a significant leadership role in
quality improvement to identify it, to make it
clear and to help others achieve it, because
quality is everybody’s job”.

• Further he says that quality should be


considered at all stages of the process, not only
in manufacturing activities.

• He concentrated on three principles on TQM are:


Focus on the customer, participation and
teamwork and continual improvement.
• His contribution is concerned with technical
aspect of quality control and makes a focus of
quality control as a business method, including
administrative and human relation functions.

• “According to Feigenbaum, the quality


professional has a significant leadership role in
quality improvement to identify it, to make it
clear and to help others achieve it, because
quality is everybody’s job”.

• Further he says that quality should be


considered at all stages of the process, not only
in manufacturing activities.

• He concentrated on three principles on TQM are:


Focus on the customer, participation and
teamwork and continual improvement.
Feigenbaum’s 10 points on Total Quality
Management:
1. Quality is an awareness programme not only a technical
function.
2. Quality is not what an engineer or marketer says but it is that
what the customer says.
3. Quality and cost are a sum, not differences.
4. Quality must be organized to recognize everybody’s job in the
organization
5. Quality is a way of managing an organization. Good
management means continuous emphasis on the quality.
6. The quality improvement emphasis must take place
throughout all activities of the organization.
7. Quality is achieved through help and participation of each and
every person related to the organization. It is also an ethic.
8. Continuous quality improvement requires wide range of new
and existing quality technology of information applications.
9. Total quality programme approach leads to productivity and is
most effective and less capital intensive
10. Quality comes, if it is clear, customer oriented, effective and
structured.
• He developed the phrase “Do it right the
first time” and the notion of zero defects.

• He became famous for coining the phrase


“quality is free” and for pointing out the
many costs of quality, which include not
only the costs of wasted labor, equipment,
time, scrap, rework and lost sales but also
organizational costs that are hard to
quantify
Crosby’s 14 steps to Quality Improvement:
1. Management Commitment: Clarify Management’s stand and strategies on quality for
the long term.
2. Quality Improvement Team: formation of cross departmental terms to initiate, run
and monitor the quality improvement programme.
3. Quality Measurement: identifying existing and potential problems in a manner that
permits objective evaluation and corrective action.
4. Cost of Quality: assessing and defining the quality as a management tool.
5. Quality Awareness: raising the quality awareness and personal commitment of all
employees.
6. Corrective Action: applying systematic method to correct problems identified.
7. Zero Defect Planning: establishing Zero Defects programming to evaluate various
activities.
8. Supervisors’ Training: train superiors in order to carry out their performance and
responsibilities in quality improvement programme
9. Zero Defect Day: observing Zero Defect Day to create realization that all employees
are aware and there is a new direction.
10. Goal Setting: encouraging employees for accomplishment of personal and team
goals for quality improvement.
11. Error Cause Removal: encouraging individual employee to communicate the
management about obstacles facing by them while attaining their goals.
12. Recognition: appreciation of employees for quality improvements.
13. Quality Councils: implementation of quality Councils for planning and to promote
continual communication.
14. Do it Over Again: emphasizing that quality improvement is a never ending process.
William Conway recommended six
tools for continuous improvements in
quality.
1. Human Relation skills: Management should give training to
all employees and motivate them to improve the quality at
all areas of operations.
2. Statistical Surveys: Necessary data should be collected
relating to task and providing a benchmark to measure
improvements.
3. Statistical Techniques – Statistical techniques like charts
and diagrams should be introduced for solutions of
problems.
4. Statistical Process Control – SPC should be used to reduce
variations and to root out the problems.
5. Imaging for Problem solving – Management should visualize
a process, procedure or operation related to waste. This
technique is related to creativity and brain storming.
6. Industrial Engineering – Management should adopt and use
techniques like, plant layout, material handling, methods,
and analysis and work simplifications for continual
improvement.
• Schonberger is known for his contribution,
manufacturing, production and analysis.

• He has authored the book as ‘Japanese


Manufacturing Technique’. Best Practices in Lean
Six sigma Process Improvement: A Deeper Look,
Let’s Fix It! Overcoming the Crisis in
Manufacturing: How the World’s Leading
Manufacturers Were Scheduled by Prosperity and
Lost Their Way”
Schonberger’s Contribution:
1) Identify your customers and get all information and data of customers.
2) Reduce and cut the work in process.
3) Cut flow times.
4) Cut set up and change overtimes.
5) Increase frequency for each required item.
6) Cut flow distance and space.
7) Cut number of suppliers down to a few good ones.
8) Cut number of part members.
9) Produce without error.
10) Arrange the workplace to eliminate search time.
11) Maintain Record of production, quality and problems during the
working and keep it safe.
12) Train the employees more than one job.
13) Confirm that employees in action are able to solve the problems
before asking experts.
14) Improve existing equipments, human resources.
15) Look for simple, cheap and movable equipment.
16) Keep alternatives ready, for work stations, machine cells, and times
for each product.
17) Automatic incrementally, when process variability cannot otherwise
be reduced.
• 5s philosophy developed by Mr. Shizuo Senju
in his work ‘Total Profit improvement through
Inter Index Analysis’ in Japan. Economic
Engineering for Executives: A Common Sense
Approach to Business decisions, TQC and
TPM, Profitability Analysis for Managerial and
Engineering Decisions.

• He introduced ‘Relation Diagram


Method’ which is useful for effective
workplace standardization of work
procedure. It is also used when
complicated relationship between
cause and effect arises.
Meaning of Japanese 5s is given below.

1) SEIRI – Sort out or eliminate unnecessary


elements from the work place.
2) SEITON – Setting or placing things that these will
available whenever required.
3) SEISO – Shine-or clean. There should be no dirt,
dust or trash at the work place.
4) SETKETSU – Standardization – Conducting daily
activities as per schedule and comparing results
with previous three activities.
5) SHITSUKE – Sustain – Commitment and
contribution of employees for the standardized
work, established in the organization.
Meaning of Japanese 5s is given below.

1) SEIRI – Sort out or eliminate unnecessary


elements from the work place.
2) SEITON – Setting or placing things that these will
available whenever required.
3) SEISO – Shine-or clean. There should be no dirt,
dust or trash at the work place.
4) SETKETSU – Standardization – Conducting daily
activities as per schedule and comparing results
with previous three activities.
5) SHITSUKE – Sustain – Commitment and
contribution of employees for the standardized
work, established in the organization.

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