UNIT_5

Total Quality Management (TQM)

Total Quality Management (TQM) is the continual process of detecting and reducing or eliminating errors
in manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that
employees are up to speed with their training. Total quality management aims to hold all parties involved in the
production process accountable for the overall quality of the final product or service.
TQM is a philosophy that believes in a company-wide responsibility toward quality via fostering a quality
culture throughout the organization; involving continuous improvement in the quality of work of all employees with
a view to best meeting the requirements of customers.

Advantages of TQM
(i) Sharpens Competitive Edge of the Enterprise:- TQM helps an organization to reduce costs through elimination
of waste, rework etc. It increases profitability and competitiveness of the enterprise; and helps to sharpen the
organization’s competitive edge, in the globalized economy of today.
(ii) Excellent Customer Satisfaction:- By focusing on customer requirements, TQM makes for excellent customer
satisfaction. This leads to more and more sales, and excellent relations with customers.
(iii) Improvement in Organisational Performance:- TQM lead to improvements in managerial and operative
personnel’s performance.
(iv) Good Public Image of the Enterprise:- TQM helps to build an image of the enterprise in the minds of people
in society. This is due to stress on total quality system and customers’ requirements, under the philosophy of TQM.
(v) Better Personnel Relations:- TQM aims at promoting mutual trust and openness among employees, at all levels
in the organization. This leads to better personnel relations in the enterprise.

Limitations of TQM
The philosophy of TQM suffers from the following major limitations

(i) Waiting for a Long Time:- TQM requires significant change in organization; consisting of:

1. Change in methods, processes etc. of organization.

2. Change in attitude, behaviour etc. of people
 Launching of TQM and acceptance of the philosophy of TQM requires a long waiting for the organization. It is
not possible to accept and implement TQM overnight.

(ii) Problem of Labour Management Relations:- Success of TQM depends on the relationships between labour
and management; because participation of people at all levels is a pre-requisite for TQM programme
implementation. In many organizations, here and abroad, labour-management relations are quite tense. As such,
launching, acceptance and implementation of TQM programme is nothing more than a dream for such organizations.

Basic Principles of TQM

In TQM, the processes and initiatives that produce products or services are thoroughly managed. By this
way of managing, process variations are minimized, so the end product or the service will have a predictable quality
level.
Following are the key principles used in TQM
(i) Top management – The upper management is the driving force behind TQM. The upper management bears the
responsibility of creating an environment to rollout TQM concepts and practices.
(ii) Training needs – When a TQM rollout is due, all the employees of the company need to go through a proper
cycle of training. Once the TQM implementation starts, the employees should go through regular trainings and
certification process.
(iii) Customer orientation – The quality improvements should ultimately target improving the customer
satisfaction. For this, the company can conduct surveys and feedback forums for gathering customer satisfaction and
feedback information.
(iv) Involvement of employees – Pro-activeness of employees is the main contribution from the staff. The TQM
environment should make sure that the employees who are proactive are rewarded appropriately.
(v) Techniques and tools – Use of techniques and tools suitable for the company is one of the main factors of
TQM.
(vi) Corporate culture – The corporate culture should be such that it facilitates the employees with the tools and
techniques where the employees can work towards achieving higher quality.
(vii) Continues improvements – TQM implementation is not one time exercise. As long as the company practices
TQM, the TQM process should be improved continuously.

Deming’s 14 Principles, Continuous Improvement (Kaizen)

Kaizen, also known as continuous improvement, is a long-term approach to work that systematically seeks to
achieve small, incremental changes in processes in order to improve efficiency and quality. Kaizen can be applied to
any kind of work, but it is perhaps best known for being used in lean manufacturing and lean programming.

Kaizen can be roughly translated from Japanese to mean “good change.” The philosophy behind kaizen is often
credited to Dr. W. Edwards Deming. Dr. Deming was invited by Japanese industrial leaders and engineers to help
rebuild Japan after World War II. He was honored for his contributions by Emperor Hirohito and the Japanese
Union of Scientists and Engineers.

In his book “Out of the Crisis,” Dr. Deming shared his philosophy of continuous improvement:-

Deming has given his views on management and its relationship with quality in his 14 points for management.
These points are summarized as under

1. Create consistency of purpose towards improvement of product and service with an aim to become
competitive and thus to stay in business and to provide jobs.
2. Adopt the new philosophy for economic stability. Management needs to take leadership for change and we
no longer live with delays, mistakes, defective materials and defective workmanship.
3. Eliminate the need for mass inspection by building quality into the product in the first place.
4. End the practice of awarding business on price tag alone. Rather total cost should be minimized. Select a
single supplier for any item on a long term relationship of trust and loyalty.
5. Improve constantly the system of production and service, to improve quality and productivity and thus
leading to the decrease in cost.
6. Institute better methods of training and education for all the employees including management to make
effective use of all the employees.
7. Adopt and institute better leadership to help the people to perform a job in a better way.
8. Drive out fear so that everyone works for the company effectively without any tension.
9. Break down barriers between different departments. People in different departments must work as a team to
tackle the problems of production that may be encountered with the product or service.
10. Eliminate slogans, exhortations and numerical targets for the workforce. They never help the workers to do
the job in a better way. Let the workers develop their own slogans and work accordingly.
11. Eliminate work standards and numerical quotas. Eliminate management by objectives and also eliminate
management by numbers. These are usually a guarantee of inefficiency and high costs. A person, in order
to hold a job, will try to meet a quota at any cost including doing damage to his company.
12. Remove barriers in taking pride in workmanship. Usually, incompetent supervisors, defective materials and
faulty equipment’s are stumbling blocks in the way of good performance. These barriers must be
eliminated.
13. Introduce a vigorous programme of education and self development. Both the management and the work
force will have to be educated in the new knowledge and understanding, including teamwork and statistical
techniques.
14. Take proper action to accomplish the transformation. Top management has to constitute a team with a plan
of action to carry out the quality mission.

Quality Philosophies: Juran’s

Juran was a great Founding Father of quality, and was responsible for the famous Juran Trilogy concept. Juran’s
approach to quality control had Japanese roots. While Japan was price-competitive with the rest of the world, the
quality of product did not measure up. This quality philosophy consists of three steps: Quality Planning, Quality
Control and Quality Improvement.
 1. Quality Planning:- The quality planning phase is the activity of developing products and processes to meet
customers’ needs. Involves building an awareness of the need to improve, setting goals and planning for
ways goals can be reached. This begins with management’s commitment to planned change. It also requires
a highly trained and qualified staff. It deals with setting goals and establishing the means required to reach
the goals. Below are the steps in the quality planning process:

 Establish quality goals

 Identify the customers: those who will be impacted by the efforts to meet the goals
 Determine the customer’s needs
 Develop processes that can produce the product to satisfy customers’ needs and meet quality goals under
operating conditions.
 Establish process controls, and transfer the resulting plans to the operating forces

(ii) Quality Control:- this process deals with the execution of plans and it includes monitoring operations so as to
detect differences between actual performance and goals. means to develop ways to test products and services for
quality. Any deviation from the standard will require changes and improvements. It is outlined with three steps:

 Evaluate actual quality performance

 Compare actual performance to quality goals
 Act on the difference

(iii) Quality Improvement:- It is a continuous pursuit toward perfection. Management analyses processes and
systems and reports back with praise and recognition when things are done right this is the process is for obtaining
breakthrough in quality performance, and it consists of several steps:

 Establish the infrastructure needed to secure annual quality improvement

 Identify the specific needs for improvement- the improvement projects
 Establish project teams with clear responsibility for bringing the project to a successful conclusion
 Provide the resources, motivation, and training needed by the teams to- diagnose the cause, stimulate
establishment of remedies, and establish controls to hold the gains.

PDCA Cycle
Plan, Do, Check, Act (PDCA) – is a well-known and respected approach to helping teams plan and implements a
solution to a problem, often testing it on a micro scale and reviewing the results before agreeing how to proceed.
 PDCA encourages an engaged
engaged, problem-solving workforce – the method is not limited to managers, but can
be used across the organizational structure, using combined knowledge and experience. This helps business to
innovate through creative problem solving.

The easiest way to think of it is a prototyping model. But it can be used for larger projects, where testing is
not feasible – for example, if a business has already bought new, expensive equipment to solve a problem, then the
implementation has to be on a large scale.

Usually the Problem Solving Group (PS) has already identified what they want to solve and the changes
they would like to make. This may include how outcomes will be measured, or a specification. PDCA would then
th
drop into any planning and implementation phases.

The 4 steps of the PDCA Cycle

Plan:- This first stage clarifies the objectives of the chosen solution, and will identify which processes need to
change (the problem will have already been defined, and a solution proposed using other problem solving
techniques).

The PS group will plan how the solution is tested, and forecast what is expected to happen during the
PDCA the cycle. This will result in a set of outputs, and usually set a baseline for improvem
improvement.

Focused work at this stage includes agreeing what data is to be collected, what resources are needed, and
the actions that will take place and when. The PS group will then decide where the trial run will be held. At this
stage ‘before’ data is collected
ed for later comparison in the ‘Check’ step.

Do:- This involves physically implementing the solution, and collecting data for analysis in the next step,
observation and project management.
This step should also include oversight to ensure that the solution is implemented as per the specification.

Check:- This step is about analyzing ‘before’, ‘during’, and ‘after’ data to see what can be learned. (Another name
for this step is ‘Study’). ‘During’ data is easy to overlook, but any plan is implemented in phases, and if issues are to
be found and identified quickly, these actions need to be measured.

Not only will the process be observed qualitatively as well as quantitatively, feedback can be gathered from
the end users of the solution.

The data from the observations, and feedback from staff is analyzed, and compared to the baseline. Issues
and successes are identified.

Act:- If the ‘Check’ demonstrates that the ‘Plan’ phase was implemented effectively and improvements can be seen
on the baseline, then a new baseline is created and the cycle returns to ‘Plan’, using the new baseline.

If ‘Check’ results infer that there has been no improvement from the ‘Do’ phase, then the existing baseline
continues in place. In either scenario, if ‘Check’ reveals som
something
ething different from expected (whether it has out-
out
performed or underperformed), then it identifies that more learning is needed.
 This may even result in the returning to the overarching problem solving technique, and the process of
problem identification and definition, using the chosen problem
problem-solving
solving model. Adjustments or corrective actions
should not be undertaken at this stage, and should never be done without a formal ‘Plan’ phase. Additionally, the
baseline should not be changed from verified one, di
discovered in ‘Act’.

Advantages

 Staff is more willing to try a new solution, if they know it is not a fait accompli – especially if
modifications are based on user’s feedback and views, as well as measurement.
 The method creates acceptance and ownership in the end user as confidence in the solution grows quickly,
as mistakes are rectified as part of the process.
 The model allows potential solutions to be implemented on a small scale, and ascertain how effective they
are.
 Importantly this model provides an opportunity for learning why something isn’t working before it is fully
implemented.
 It involves a wide range of people across the organization, and provides a range of perspectives.
Quality Management, Dimension and Cost of Quality, Continuous Improvement
Improvemen (Kaizen)
Quality management ensures that an organization, product or service is consistent. It has four main
components: quality planning, quality assurance, quality control and quality improvement. Quality management is
focused not only on product and service
ervice quality, but also on the means to achieve it. Quality management, therefore,
uses quality assurance and control of processes as well as products to achieve more consistent quality.

What are the 7 quality management principles?

The ISO 9000:2015 andd ISO 9001:2015 standards are based on seven quality management principles that senior
management can apply for organizational improvement:

 Customer focus.
 Engagement of people.
 Process approach.
 Evidence-based decision-making.
making.
 Relationship management.

A quality management system (QMS) is a collection of business processes focused on consistently meeting
customer requirements and enhancing their satisfaction. … It is expressed as the organizational goals and
aspirations, policies, processes, documented inf
information
ormation and resources needed to implement and maintain it.
An Example of Quality Management

The most famous example of TQM is Toyota’s implementation of the Kanban system. A kanban is a
physical signal that creates a chain reaction, resulting in a specific action. Toyota used this idea to implement its
just-in-time (JIT) inventory process. To make its assembly line more efficient, the company decided to keep just
enough inventory on hand to fill customer orders as they were generated.

Therefore, all parts of Toyota’s assembly line are assigned a physical card that has an associated inventory
number. Right before a part is installed in a car, the card is removed and moved up the supply chain, effectively
requesting another of the same part. This allows the company to keep its inventory lean and not overstock
unnecessary assets.

EIGHT DIMENSIONS OF QUALITY

Eight dimensions of product quality management can be used at a strategic level to analyze quality
characteristics. The concept was defined by David A. Garvin, formerly C. Roland Christensen Professor of Business
Administration at Harvard Business School (died 30 April 2017). Some of the dimensions are mutually reinforcing,
whereas others are not—improvement in one may be at the expense of others. Understanding the trade-offs desired
by customers among these dimensions can help build a competitive advantage.

Garvin’s eight dimensions can be summarized as follows:-

 Performance: Performance refers to a product’s primary operating characteristics. This dimension of

quality involves measurable attributes; brands can usually be ranked objectively on individual aspects of
performance.
 Features: Features are additional characteristics that enhance the appeal of the product or service to the
user.
 Reliability: Reliability is the likelihood that a product will not fail within a specific time period. This is a
key element for users who need the product to work without fail.
  Conformance: Conformance is the precision with which the product or service meets the specified
standards.
 Durability: Durability measures the length of a product’s life. When the product can be repaired,
estimating durability is more complicated. The item will be used until it is no longer economical to operate
it. This happens when the repair rate and the associated costs increase significantly.
 Serviceability: Serviceability is the speed with which the product can be put into service when it breaks
down, as well as the competence and the behaviour of the serviceperson.
 Aesthetics: Aesthetics is the subjective dimension indicating the kind of response a user has to a product. It
represents the individual’s personal preference.
 Perceived Quality: Perceived Quality is the quality attributed to a good or service based on indirect
measures.

COST OF QUALITY
Cost of quality is a methodology that allows an organization to determine the extent to which its resources
are used for activities that prevent poor quality, that appraise the quality of the organization’s products or services,
and that result from internal and external failures. Having such information allows an organization to determine the
potential savings to be gained by implementing process improvements.

There are four costs your organization needs to examine: prevention, appraisal, internal failure, and
external failure. These costs cover your entire operation, including your quality management system (QMS).

Planned costs—design, implementation, and maintenance—occurring prior to the operation of your

organization’s QMS are the preventive costs.

Measuring and monitoring activities should be listed as appraisal costs. Duffy further explains these costs
“are associated with the suppliers’ and customers’ evaluation of purchased materials, processes, products, and
services to ensure that they conform to specifications.”

Quality Circles
A quality circle is a volunteer group composed of workers, usually under the leadership of their supervisor,
who are trained to identify, analyze and solve work-related problems and present their solutions to management in
order to improve the performance of the organization, and motivate and enrich the work of employees. When
matured, true quality circles become self-managing, having gained the confidence of management.
Participative management technique within the framework of a company wide quality system in which
small teams of (usually 6 to 12) employees voluntarily form to define and solve a quality or performance related
problem. In Japan (where this practice originated) quality circles are an integral part of enterprise management and
are called quality control circles.
“A Quality Circle is volunteer group composed of members who meet to talk about workplace and service
improvements and make presentations to their management with their ideas.” (Prasad, L.M, 1998).
Quality circles enable the enrichment of the lives of the workers or students and creates harmony and high
performance. Typical topics are improving occupational safety and health, improving product design, and
improvement in the workplace and manufacturing processes.

Objectives of Quality Circle

The perception of Quality Circles today is ‘Appropriateness for use1 and the tactic implemented is to avert
imperfections in services rather than verification and elimination. Hence the attitudes of employees influence the
quality. It encourages employee participation as well as promotes teamwork. Thus it motivates people to contribute
towards organizational effectiveness through group processes. The following could be grouped as broad intentions
of a Quality Circle:

1. To contribute towards the improvement and development of the organization or a department.

2. To overcome the barriers that may exist within the prevailing organizational structure so as to foster an
open exchange of ideas.
3. To develop a positive attitude and feel a sense of involvement in the decision making processes of the
services offered.
4. To respect humanity and to build a happy work place worthwhile to work.
5. To display human capabilities totally and in a long run to draw out the infinite possibilities.
6. To improve the quality of products and services.

7. To improve competence, which is one of the goals of all organizations?

8. To reduce cost and redundant efforts in the long run.
9. With improved efficiency, the lead time on convene of information and its subassemblies is reduced,
resulting in an improvement in meeting customers due dates.
10. Customer satisfaction is the fundamental goal of any library. It will ultimately be achieved by Quality
Circle and will also help to be competitive for a long time.

BENEFITS OF QUALITY CIRCLES

There are no monetary rewards in the QC’s. However, there are many other gains, which largely benefit the
individual and consecutively, benefit the business. These are:

(i) Self-development: QC’s assist self-development of members by improving self-confidence, attitudinal change,
and a sense of accomplishment.
(ii) Social development: QC is a consultative and participative programme where every member cooperates with
others. This interaction assists in developing harmony.
(iii) Opportunity to attain knowledge: QC members have a chance for attaining new knowledge by sharing
opinions, thoughts, and experience.
(iv) Potential Leader: Every member gets a chance to build up his leadership potential, in view of the fact that any
member can become a leader.
(v) Enhanced communication skills: The mutual problem solving and presentation before the management assists
the members to develop their communication skills.
(vi) Job-satisfaction: QC’s promote creativity by tapping the undeveloped intellectual skills of the individual.
Individuals in addition execute activities diverse from regular work, which enhances their self-confidence and gives
them huge job satisfaction.
(vii) Healthy work environment: QC’s creates a tension-free atmosphere, which each individual likes,
understands, and co-operates with others.
(viii) Organizational benefits: The individual benefits create a synergistic effect, leading to cost effectiveness,
reduction in waste, better quality, and higher productivity.

7QC Tools and its Advancements

The seven basic tools of quality is a designation given to a fixed set of graphical techniques identified as
being most helpful in troubleshooting issues related to quality. They are called basic because they are suitable for
people with little formal training in statistics and because they can be used to solve the vast majority of quality-
related issues.
 Once the basic problem-solving or quality improvement process is understood, the addition of quality tools can
make the process proceed more quickly and systematically. Seven simple tools can be used by any professional to
ease the quality improvement process: flowcharts, check sheets, Pareto diagrams, cause and effect diagrams,
histograms, scatter diagrams, and control charts.

1. FLOWCHARTS:- Flowcharts describe a process in as much detail as possible by graphically displaying

the steps in proper sequence. A good flowchart should show all process steps under analysis by the quality
improvement team, identify critical process points for control, suggest areas for further improvement, and
help explain and solve a problem.

The flowchart is a simple production process in which parts are received, inspected, and sent to subassembly
operations and painting. After completing this loop, the parts can be shipped as subassemblies after passing a final
test or they can complete a second cycle consisting of final assembly, inspection and testing, painting, final testing,
and shipping.

2. CHECK SHEETS:- Check sheets help organize data by category. They show how many times each
particular value occurs, and their information is increasingly helpful as more data are collected. Check
sheets minimize clerical work since the operator merely adds a mark to the tally on the prepared sheet
rather than writing out a figure. By showing the frequency of a particular defect (e.g., in a molded part) and
how often it occurs in a specific location, check sheets help operators spot problems.
The check sheet example shows a list of molded part defects on a production line covering a week’s time. One can
easily see where to set priorities based on results shown on this check sheet. Assuming the production flow is the
same on each day, the part with the largest number of defects carries the highest priority for correction.

3. PARETO DIAGRAMS:- The Pareto diagram is named after Vilfredo Pareto, a 19th-century Italian
economist who postulated that a large share of wealth is owned by a small percentage of the population.
This basic principle translates well into quality problems—most quality problems result from a small
number of causes. Quality experts often refer to the principle as the 80-20 rule; that is, 80% of problems are
caused by 20% of the potential sources.

A Pareto diagram puts data in a hierarchical order, which allows the most significant problems to be corrected first.
The Pareto analysis technique is used primarily to identify and evaluate nonconformities, although it can summarize
all types of data. It is perhaps the diagram most often used in management presentations.
 4. CAUSE AND EFFECT DIAGRAMS:- The cause and effect diagram is sometimes called an Ishikawa
diagram after its inventor. It is also known as a fish bone diagram because of its shape. A cause and effect
diagram describes a relationship between variables. The undesirable outcome is shown as effect, and
related causes are shown as leading to, or potentially leading to, the said effect. This popular tool has one
severe limitation, however, in that users can overlook important, complex interactions between causes.
Thus, if a problem is caused by a combination of factors, it is difficult to use this tool to depict and solve it.

A fish bone diagram displays all contributing factors and their relationships to the outcome to identify areas where
data should be collected and analyzed. The major areas of potential causes are shown as the main bones, e.g.,
materials, methods, people, measurement, machines, and design. Later, the subareas are depicted. Thorough analysis
of each cause can eliminate causes one by one, and the most probable root cause can be selected for corrective
action. Quantitative information can also be used to prioritize means for improvement, whether it be to machine,
design, or operator.

5. HISTOGRAMS:- The histogram plots data in a frequency distribution table. What distinguishes the
histogram from a check sheet is that its data are grouped into rows so that the identity of individual values
is lost. Commonly used to present quality improvement data, histograms work best with small amounts of
data that vary considerably. When used in process capability studies, histograms can display specification
limits to show what portion of the data does not meet the specifications.
After the raw data are collected, they are grouped in value and frequency and plotted in a graphical form. A
histogram’s shape shows the nature of the distribution of the data, as well as central tendency (average) and
variability. Specification limits can be used to display the capability of the process.

6. SCATTER DIAGRAMS

A scatter diagram shows how two variables are related and is thus used to test for cause and effect relationships. It
cannot prove that one variable causes the change in the other, only that a relationship exists and how strong it is.
In a scatter diagram, the horizontal (x) axis represents the measurement values of one variable, and the vertical (y)
axis represents the measurements of the second variable.

7. CONTROL CHARTS:- A control chart displays statistically determined upper and lower limits drawn on
either side of a process average. This chart shows if the collected data are within upper and lower limits
previously determined through statistical calculations of raw data from earlier trials.
The construction of a control chart is based on statistical principles and statistical distributions, particularly the
normal distribution. When used in conjunction with a manufacturing process, such charts can indicate trends and
signal when a process is out of control. The center line of a control chart represents an estimate of the process mean;
the upper and lower critical limits are also indicated. The process results are monitored over time and should remain
within the control limits; if they do not, an investigation is conducted for the causes and corrective action taken. A
control chart helps determine variability so it can be reduced as much as is economically justifiable.

In preparing a control chart, the mean upper control limit (UCL) and lower control limit (LCL) of an approved
process and its data are calculated. A blank control chart with mean UCL and LCL with no data points is created;
data points are added as they are statistically calculated from the raw data.

ISO 9000-2000 Clauses

ISO

ISO is an independent, non-governmental international organization with a membership of 162 national standards
bodies.

Through its members, it brings together experts to share knowledge and develop voluntary, consensus-based, market
relevant International Standards that support innovation and provide solutions to global challenges.
ISO 9000

The ISO 9000 family of quality management systems standards is designed to help organizations ensure
that they meet the needs of customers and other stakeholders while meeting statutory and regulatory requirements
related to a product or service. ISO 9000 deals with the fundamentals of quality management systems, including the
seven quality management principles upon which the family of standards is based. ISO 9001 deals with the
requirements that organizations wishing to meet the standard must fulfill.

Five Objectives of ISO 9000

1. Gives businesses with useful, globally recognized models for operating a quality management system.
2. Achieve, maintain and aim to regularly enhance product quality (the standards define “product” as the
output of any process. Therefore, this word will also apply to “services,” whether internal or external to the
business).
3. Primary objective of getting these standards is to boost the goodwill of organization. Customer can
compare the quality of two companies , one is with ISO standard and other is without ISO standard .
Goodwill could be in form of rise in sale or more promotion of product of company.
4. To create a compliance standard which is followed 24 hours-a-day, 7 days-a week, 52 weeks-a-year.
5. Offer confidence to internal management as well as other workers that requirements for quality are being
fulfilled and maintained, and that quality improvement is taking place.

ISO 2000

Quality system standards adopted in 1987 by international organization for standardization; revised in 1994 and
2000.

Technical specifications and criteria to be used as rules, guidelines, or definitions of characteristics to ensure that
materials, products, processes, and services are fit for their purpose.

ISO 9000:2000 Standards

 Fundamental Requirements
 Guidelines for Performance Improvement

ISO 9000:2000

1. Customer Focus
2. Leadership
3. Involvement of people
4. System approach to management
5. Continuous improvement
6. Factual approach to decision making
7. Mutually beneficial supplier relationship

ISO 9000-2000 clauses

Six Sigma

Six Sigma is a business management strategy which aims at improving the quality of processes by minimizing and
eventually removing the errors and variations. The concept of Six Sigma was introduced by Motorola in 1986, but
was popularized by Jack Welch who incorporated the strategy in his business processes at General Electric. The
concept of Six Sigma came into existence when one of Motorola’s senior executives complained of Motorola’s bad
quality. Bill Smith eventually formulated the methodology in 1986.

Quality plays an important role in the success and failure of an organization. Neglecting an important aspect like
quality, will not let you survive in the long run. Six Sigma ensures superior quality of products by removing the
defects in the processes and systems. Six sigma is a process which helps in improving the overall processes and
systems by identifying and eventually removing the hurdles which might stop the organization to reach the levels of
perfection. According to sigma, any sort of challenge which comes across in an organization’s processes is
considered to be a defect and needs to be eliminated.

Organizations practicing Six Sigma create special levels for employees within the organization. Such levels are
called as: “Green belts”, “Black belts” and so on. Individuals certified with any of these belts are often experts in six
sigma process. According to Six Sigma any process which does not lead to customer satisfaction is referred to
as a defect and has to be eliminated from the system to ensure superior quality of products and services.
Every organization strives hard to maintain excellent quality of its brand and the process of six sigma ensures the
same by removing various defects and errors which come in the way of customer satisfaction.

The process of Six Sigma originated in manufacturing processes but now it finds its use in other businesses as well.
Proper budgets and resources need to be allocated for the implementation of Six Sigma in organizations.

Following are the two Six Sigma methods

 DMAIC
 DMADV

DMAIC focuses on improving existing business practices. DMADV, on the other hand focuses on creating new
strategies and policies.

DMAIC has Five Phases

D – Define the Problem. In the first phase, various problems which need to be addressed to are clearly defined.
Feedbacks are taken from customers as to what they feel about a particular product or service. Feedbacks are
carefully monitored to understand problem areas and their root causes.

M – Measure and find out the key points of the current process. Once the problem is identified, employees
collect relevant data which would give an insight into current processes.

A – Analyze the data. The information collected in the second stage is thoroughly verified. The root cause of the
defects are carefully studied and investigated as to find out how they are affecting the entire process.

I – Improve the current processes based on the research and analysis done in the previous stage. Efforts are made
to create new projects which would ensure superior quality.

C – Control the processes so that they do not lead to defects.

DMADV Method

D – Design strategies and processes which ensure hundred percent customer satisfactions.

M – Measure and identify parameters that are important for quality.

A – Analyze and develop high level alternatives to ensure superior quality.

D – Design details and processes.

V – Verify various processes and finally implement the same.

Total Productive Maintenance (TPM)

Total Productive Maintenance (TPM) is a system of maintaining and improving the integrity of production and
quality systems through the machines, equipment, processes, and employees that add business value to an
organization.

TPM focuses on keeping all equipment in top working condition to avoid breakdowns and delays in manufacturing
processes.

Objective of TPM

 Improving the effectiveness of machines

 Improving the efficiency, reliability and effectiveness of maintenance of machine
 Scheduling maintenance for avoiding early maintenance
 Involving operation team also in smaller scale maintenance, such as machine checklist inspection before
starting and after closing the machines
 Arrangement of training for amending the skills of employees

The 8 pillars of TPM

1. Autonomous Maintenance: Operators monitor the condition of their own equipment and work areas
2. Process & Machine Improvement: Team leaders collect information from operators and work areas, then
prioritize preventative maintenance and improvements
3. Preventative Maintenance: Operators and team leaders share preventative maintenance tasks and
schedules
4. Early Management of New Equipment: Team leaders anticipate and plan for parts of equipment
lifecycles and report to mangers, based on maintenance reports
5. Process Quality Management: Shared responsibility for operation and maintenance encourages quality
improvement ideas from all areas of work
6. Administrative Work: Managers prioritize data from the previous pillars and share outcomes with team
leaders and work areas
7. Education & Training: Continuous improvement includes operator and work area education and training
which improves morale, retention and efficiency
8. Safety & Sustained Success: Facility-wide safety is prioritized, which positively impacts sustained
success of the TPM program

As maintenance is traditionally considered an inevitable and “not-for-profit” function, TPM is considered the most
difficult lean manufacturing tool to implement. Shifting cultural beliefs within a facility, from the CEO to
machinists and janitors, may take years but the pay off for both the finished product and employee morale is worth
the investment.

Benefits of TPM

Acknowledges the Importance of Maintenance to the Organization

For too long, maintenance has been viewed as a cost center that does not provide value to the organization.
Thankfully, times are changing. With approaches like TPM and reliability centered maintenance (RCM),
maintenance is now viewed as vitally important to the business. TPM’s maintenance-oriented approach helps to
reinforce the perception that maintenance is something that adds value to the organization.
Less Unplanned Downtime

As machine operators become more familiar with their equipment, they can more easily recognize when things seem
out of the ordinary. Because they are on the front lines and able to spot problems sooner, operators can alert the
maintenance team before equipment breaks down. Maintenance can then be planned for a time when it will not
interrupt production.

Safer Work Environment

TPM also brings focus to workplace safety. Introducing or improving safety-related maintenance tasks means that
employees are able to work in low-risk environments. When accidents are reduced and potentially dangerous
situations are avoided, employees’ attitudes become more positive, which can improve job satisfaction and
productivity.

Lower Maintenance Costs

Unplanned downtime is costly. TPM’s focus on proactive and preventive maintenance reduces maintenance costs in
many ways. For example, equipment that is regularly cleaned, lubricated, and inspected should experience fewer
unexpected breakdowns, requiring less maintenance resources.

Reduced Backlog

With everyone contributing to maintenance, less pressure is placed on the maintenance team. Over time, the backlog
of preventive maintenance jobs and maintenance requests will shrink, freeing up the maintenance team to work on
capital improvements and other projects.

Predictable maintenance activities allow for better control over MRO inventory stocking levels, ensuring less
overstock or expedited inventory purchases. Operators can identify emerging problems with their equipment before
they become major failures, resulting in potentially low-cost, less significant repairs.

TPM can also help lower production costs. When equipment is not available, there is a domino effect that can
result in stopped production, defective product, idle employees, and employee overtime, not to mention the
increased stress of “catching up” when the problem is fixed. When maintenance is viewed as a team effort,
production losses due to poor maintenance can be minimized.

5S

Ever notice how much better you work when the space you work in is organized? The 5S approach is a Japanese
process that’s about promoting an efficient, effective workplace that helps companies eliminate waste.

Benefits of 5S

 Reduced costs
 Higher quality
 Increased productivity
 Greater employee satisfaction
 A safer work environment

The 5S Approach to Waste Elimination for Lean Businesses. The steps are:
 1. Sort
2. Set
3. Shine
4. Standardize
5. Sustain

Often, these steps are represented on a process chart where the first four steps are located around the perimeter of the
chart and the fifth step (sustain) is placed inside the process. This is because the first four steps lead into each other,
while ”sustain” is something that must be done at every step.

There are five 5S phases. They can be translated from the Japanese as “sort”, “set in order”, “shine”, “standardize”,
and “sustain”. Other translations are possible.

1. Sort (Seiri)

Sort is sorting through all items in a location and removing all unnecessary items from the location.

Goals:

 Reduce time loss looking for an item by reducing the number of items.
 Reduce the chance of distraction by unnecessary items.
 Simplify inspection.
 Increase the amount of available, useful space.
 Increase safety by eliminating obstacles.

Implementation:

 Check all items in a location and evaluate whether or not their presence at the location is useful or
necessary.
 Remove unnecessary items as soon as possible. Place those that cannot be removed immediately in a ‘red
tag area’ so that they are easy to remove later on.
 Keep the working floor clear of materials except for those that are in use to production.

2. Set in order (Seiton)

Set is putting all necessary items in the optimal place for fulfilling their function in the workplace.

Goal:

 Make the workflow smooth and easy.

Implementation:

 Arrange work stations in such a way that all tooling / equipment is in close proximity, in an easy to reach
spot and in a logical order adapted to the work performed. Place components according to their uses, with
the frequently used components being nearest to the workplace.
 Arrange all necessary items so that they can be easily selected for use. Make it easy to find and pick up
necessary items.
  Assign fixed locations for items. Use clear labels, marks or hints so that items are easy to return to the
correct location and so that it is easy to spot missing items.

3. Shine/Seiso

Shine is sweeping or cleaning and inspecting the workplace, tools and machinery on a regular basis.

Goals:

 Prevent deterioration.
 Keep the workplace safe and easy to work in.
 Keep the workplace clean and pleasing to work in.
 When in place, anyone not familiar to the environment must be able to detect any problems within 50 feet
in 5 sec.

Implementation:

 Clean the workplace and equipment on a daily basis, or at another appropriate (high frequency) cleaning
interval.
 Inspect the workplace and equipment while cleaning.

4. Standardize (Seiketsu)

Standardize is to standardize the processes used to sort, order and clean the workplace.

Goal:

 Establish procedures and schedules to ensure the repetition of the first three ‘S’ practices.

Implementation:

 Develop a work structure that will support the new practices and make it part of the daily routine.
 Ensure everyone knows their responsibilities of performing the sorting, organizing and cleaning.
 Use photos and visual controls to help keep everything as it should be.
 Review the status of 5S implementation regularly using audit checklists.

5. Sustain/Self-discipline (Shitsuke)

Sustain or sustain the developed processes by self-discipline of the workers. Also translates as “do without being
told”.

Goal:

 Ensure that the 5S approach is followed.

Implementation:

 Organize training sessions.

 Perform regular audits to ensure that all defined standards are being implemented and followed.
 Implement improvements whenever possible. Worker inputs can be very valuable for identifying
improvements.
 When issues arise, identify their cause and implement the changes necessary to avoid recurrence.