KCE/DEPT.

OF MGT STUDIES/E-MATERIAL

UNIT III

TQM Tools and Techniques I - The seven tradition tools of quality, New management tools,
Six sigma, Concept and methodology, Benchmarking, Reasons to benchmark, Benchmarking
process, FEMA, Stages of FMEA and types.

3.1 THE SEVEN TRADITIONAL TOOLS OF QUALITY:

The seven major SPC problem solving tools proposed by Prof. Ishikawa.
1. Process flow-diagrams
2. Cause and Effect diagram
3. Histogram
4. Pareto diagram
5. Check sheet
6. Scatter diagram and
7. Control Charts
i) Process flow-diagrams:
1. These diagrams show the flow of the product or service as it moves through the various
processing operations.
2. It shows the overall picture of the sequence of operations connected with the
manufacturing process graphically or diagrammatically.
3. The diagram makes it easy to visualize the entire system, identify potential trouble spots
and locate control activities.
4. Improvements can be accomplished by changing, reducing , combining or eliminating
steps.

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ii) Cause and Effect diagram:

1. A cause-and-effect (C&E) diagram is a picture composed of lines and symbols designed to
represent a meaningful relationship between an effect and its causes.
2. Prof. Ishikawa of the University of Tokyo developed this tool and hence it is also known as
Ishikawa diagram.
3. It is known also as Fish bone diagram because of its appearance.
4. The following fig. Illustrates a C&E diagram with the effect on the right and causes on the
left.

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Steps Involved In Constructing A Cause And Effect Diagram:

1. The first step is to clearly define the problem to be studied.
2. Draw a broad arrow going from left to right. This is the backbone of the diagram. Write
down the effect at the tip of the arrow.
3. Identify the major causes for the particular problem. These major causes are called the
major bones of the diagram. These causes are identified through a brainstorming session.
4. Draw and label the major bones as diagonal lines as shown in the fig,
5. Now go in for further brainstorming session to identify the reasons for the major causes.
These reasons are called as subcauses and these are otherwise called as small bones and
they are drawn from the major bone.
6. Now the picture is ready so that interpretations can be made based on this.
7. Look for possible solutions for these causes.
8. Introduce the changes.
Uses:
1. To analyze the cause of any quality problem identify the factors leading to better results
(effect).
2. To organize everyone’s active participation in the brainstorming process in order to get
free flowing ideas.
3. To eliminate conditions causing non-conformities and customer complaints.
4. To standardize existing and proposed operations.
5. To educate and train personnel in decision-making and corrective action activities.
Applications:
1. The CE diagram has unlimited application in research, marketing, manufacturing, office
operations, services etc.
iii)Histogram:
1. It is a pictorial diagram showing the visual representation of spread or distribution of
data.
2. It also illustrates the various measures of central measures of central tendency.
3. Mean: Sum of all the measured or counted data divided by total number of data points,
also known as average
4. Mode: the values repeated most often in the raw data
5. Median: the middle value of all data points.

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Steps Involved In Constructing A Histogram:

1. The data are collected to be charted and the total number of data values is counted.
2. The range of data is determined by subtracting the smallest data value from the highest
data value.
3. The data values (observations) are divided in groups and the number of values is counted
in each classes.
No. of Values <100 100-500 > 500
No. of Classes 5-9 8-17 15-20

4. The width of the class is determined by the following formula

Width = Range / No. of classes selected from the table
5. A frequency table is drawn for all values
6. A histogram is drawn based on the frequency table. The class intervals are placed on the
horizontal axis (X axis) and the frequencies on the vertical axis (Y axis)
7. Finally, the height of each bar is to represent thee number of values or the frequency of
class interval is marked on the diagram.
Types of Histograms and their interpretations

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Uses of Histogram:
1. Used to monitor a process in order to meet the customer requirements
2. The information in histogram help in understanding the extent to which a process is
operating normally or out of control. Help to identify the root cause.
3. It gives sufficient information about a quality problem to provide a basis for decision
making
4. It is a tool for determining the variation from the allowable specification and suggest the
ways of keeping a process in control.
iv)Pareto Diagram:
1. A Pareto diagram is a graph that ranks data classifications in descending order from left to
right.
2. The Pareto diagram is based on the Pareto principle, which states that a few of the defects
accounts for most of the effects.
3. Pareto analysis is also called as 80/20 rule and as ABC analysis. It means that 80% of the
problems (effects) are due to 20% of the causes (defects).
4. This analysis is a method of classifying items, events or activities according to their
relative importance.
Uses of Pareto Diagram:
1. It is a prioritization tool used for problem identification and also for measuring the
progress of corrective actions.
2. It is a powerful tool used for quality improvement
3. It helps to identify the most significant problems so that effort can be concentrated to get
the maximum benefit at the least cost.
Pareto diagram for reports of troubles with telephones
Steps Involved In Constructing a Pareto Diagram:
1. The method for classifying the data is determined by means of problem , cause, failures,
complaints and non-conformities
2. The required data is collected by using check sheet or use historical data
3. The data (frequency) is arranged in descending order starting from largest to smallest
category
4. The percentage of total is calculated for each category
5. The cumulative percentages are computed
6. A bar chart with two vertical axes is drawn.

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i) Along the left vertical axis, mark the measured values for each cause, starting from
zero till the total number of causes.
ii) The right vertical axis should have the same height and should go from 0 to 100% .
This axis displays the cumulative percentages.
iii) List the different kinds of causes along the horizontal axis, from left to right in
descending order of frequency or costs.
7. Draw a bar above each item whose height represents the number for that cause.
8. Plot a cumulative percentage line.
9. Now draw a horizontal line from 80% (on the right vertical axis) to the left till the point of
intersection with the cumulative line and then draw a vertical line from this intersection
downwards till the horizontal axis. Left from this intersection point are the 20% of the
causes which causes 80% of the damages.
V) Check Sheet:
1. It is also known as Tally Sheet
2. It is a systematic way of recording direct observations and helping to gather facts in the
process
Uses of Check Sheet:
1. It is used to record the variables in a production process to improve the quality
2. It can also be used to maintain stocks and machinery
3. It is useful for getting immediate inference and taking corrective actions
4. Check sheets are used to ensure that the necessary procedures are completed correctly
before the operation begins.
Steps to construct check sheet?
1. The objective is specified clearly and concisely
2. The required data is collected and relevant data is chosen
3. Each data is analyzed before entering the record
4. A check sheet format is drawn to record the data
5. Record data problem-wise by putting tally lines.
6. Start counting by tallying on the list; |,||,|||,|||| and |||| represent the numbers 1,2,3,4 and 5
respectively.
7. The sub total and the grand total number of facts are marked on the list

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Types of Check Sheets:

1. Process distribution check sheet-It is used to collect the data on process variability
2. Defective item check sheet-It is used to collect the data to specify the defects occurring
along with their frequency of occurring
3. Defect location check sheet-It is used to identify &locate where defects occur on the product
4. Defect factor check sheet-It is used to monitor the input parameters.

VI)Scatter Diagram:
1. It is simply a graphical tool used to examine the relationship between two variables
2. The measured values (cause) of one variable (independent) are plotted on the horizontal
axis and the other measurement values (effect) of variable (dependent) are marked on the
vertical axis.
3. This diagram displays the paired data as a cloud of points. The density and direction of
the cloud indicate how the two variables influence each other.
4. The purpose of the scatter diagram is therefore to display what happens to one variable
when other variable is changed.
5. The diagram is used to understand, why particular variations occur and how they can be
controlled.
Examples:
1. The relationship between Car speed Vs fuel consumption per kilometer
2. Cutting speed Vs tool life in the manufacturing Division.
Uses of Scatter diagrams:
1. It is used to determine the relationship of one variable with the other variable

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2. It is also used to determine the cause and effect relationship between the two variables
Types of Scatter Diagrams:
1. Positive Correlation – if an increase in variable X depends on an increase in variableY
2. Negative Correlation- if an increase in variable X depends on a decrease in variable Y
3. No Correlation-if the correlation is close to zero
4. Positive Correlation may exist
5. Correlation by stratification
I. Curvilinear relationship

Cause : X axis ; Effect : Y axis

Steps involved in constructing a Scatter Diagram:

Select variables which are related to each other

Collect data

Create Scatter diagram

X axis -> Cause or independent variable
Y Axis-> Effect or dependent variable

Examine the shape of cloud of points

Determine the type and strength of the mutual relationships

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vii) Control Charts:

1. It is the most widely used tool in statistical process control which was introduced by
Walter A. Shewart in 1926.
2. Control chart is aimed to monitor the quality of process continuously.
3. A histogram gives a static picture of process variability, whereas a control chart illustrates
the dynamic performance (i.e. performance over time) of the process.
4. The control chart is based on a series of random samples taken at regular intervals.
5. Three horizontal lines are drawn on the control charts. The top line represents the Upper
Control Limit (UCL), and the bottom line represents the Lower Control Limit (LCL).
6. These two lines are generally set at ±3sigma from the sample means.
7. The centre line is the average mean value of the characteristic usually set at the normal
design value
8. The samples are plotted one by one the control charts and these are connected with
straight line segments.
9. If the sample value lies inside the ±3sigma limits, the process is said to be within control
10. If the sample value lies outside the ±3sigma limits, the process is said to be out of control

Uses Of Control Charts:

1. These are line graphs that are used to track a process trend or process performance in
order to control the process characteristics.
2. Control charts are used to improve the quality of the product and also to reduce certain
unwanted cost
3. It is used to improve the process capability by reducing the variability in the process
adopted.

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Objectives Of Control Charts:

1. To provide the basis for taking decisions related to the acceptance or rejection of products
being manufactured
2. To determine and eliminate the assignable causes of variations in a process
3. To constantly monitor a process to determine whether the process is controlled statically
or not
4. To evaluate process stability and to decide when to adjust the process
5. To improve the existing production procedures by analyzing the capability of the machine
and the process
Types of Control Charts:

 Control Charts for Variables – For measurable data such as time, length, temperature,
weight, pressure etc.
 Control Charts for Attributes – For quantifiable data such as number of defects, typing
errors in a report etc.
(i) Control Charts for Variables:
1. X-Chart
2. R-Chart
3. Sigma Chart
(ii) Control Charts for Attributes:
1. P-Chart
2. NP-Chart
3. C-Chart
4. U-Chart
Difference between control charts for variables and attributes

SI.No Variable Charts Attribute Charts

1 Variable data are used (ie) Attribute data are used with the help of GO and no GO
the quality characteristics Gauges.
are measurable and can be Example : p, np,C and U charts
expressed in terms of
numerical values.

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Example : Mean-Chart
R-Chart
Sigma Chart

2 It provides maximum It provides overall picture of the quality.

utilization of information
from the available data.

Exam guidelines PART-A Questions on control charts, histogram

PART-B Questions on seven traditional tools of quality:

3.2 NEW SEVEN MANAGEMENT TOOLS

1. In addition to the 7 SPC tools, Japanese developed seven more tools for quality
improvement. These are called as the New seven Management Tools.
2. These tools are used in the Area of product quality development, cost reduction and
system improvement.
3. These tools are also used for top and middle management of the organizations for
strategic planning, goal setting, problem solving and new product development.
i. Affinity Diagram (KJ-Method)
ii. Relations Diagram
iii. Tree Diagram (Systematic diagram)
iv. Matrix Diagram
v. Matrix Data Analysis Diagram (Prioritization matrices)
vi. Process Decision Program Chart (PDPC) [Decision tree]
vii. Arrow Diagram (Activity Network diagram)
i . Affinity Diagram
1. It is a tool used to collect a large amount of data (ideas, opinions, observations etc.,) and
organize them in groups based on natural relationship between each items.
2. So that these data can be analyzed systematically for finding solution to the problem.
3. It is also known as KJ-Method because of its inventor name Kawakia Jiro.
4. It is a special kind of brainstorming method.

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5. Step – by – Step procedure

Identify the problem and phrase it without biases

Brainstorm ideas and opinions, individually and

record on the cards

Sort cards into groups and discard those with no

affinity

Label the groups and organise the cards under them

to form chart

Analyse the results and plan action-points

Uses of Affinity Diagram

1. It is used to find out the root cause of the problem by focusing on the processes.
2. It is used to understand and organize problems that are not clear.
3. The visual representation of affinity diagram gives a large amount of ideas.
4. It encourages team work with critical thinking.
5. It creates a sense of ownership of the process.
ii.Relationship Diagram [ Inter-Relationship Diagram]
1. It is also known as interrelationship diagram.
2. It is a tool finding solutions to problems that have complex relationship.
3. The relationship diagram not only clarifies the relationship between cause and effect bur
also between the various causes.
4. It is a graphical representation of all factors in a complicated problem, system or
simulation.
5. Purpose:
The main purpose of relationship diagram is to generate a visual representation of the
relations between an affect and its causes as well as the inter-relationship between the
different causes of the problem.
6. Uses:
i. It helps to identify the key problem from a list of important problems

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ii. It is used to identify the root cause of existing problem

iii. It clarifies the interrelationship of many factors of a complex situation
iv. It is used to identify the key factors needed to make a decision.
7. Steps involved constructing a relationship diagram
i. The first step in the process is to identify the main problem [i.e.effect]. Finally, it is
enclosed in a dark bordered rectangle.
ii. The next step for the group members is to identify the immediate reasons [i.e.causes]
for the given problem.
iii. The possible causes are noted down in a card.
iv. These causes are placed by rectangles around the centre as dark rectangle.
v. These intermediate causes are connected to the effect by a straight line. Arrow in the
line pointing towards the effect is marked.
vi. The intermediate rectangle with most outgoing arrows indicates the root causes and
the rectangle with most incoming arrows indicates the root effects. [Outcomes or
results]

iii) Tree Diagram

1. The other name for this method is dendrogram.

2. This can be used to determine the ways or means needed to achieve a specific goal or
objective.
3. It gives a bird’s eye view of the whole situation at a single glance.

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4. This diagram is mostly used when the cause that influence the problem are known but, the
ways and means for resolving the problems have not been developed.
5. Steps involved in a Tree Diagram
i. The ultimate objective to be achieved is clearly fixed and stated.
ii. All possible causes are brainstormed to determine the tasks that are involved to reach
the end objectives.
iii. The most important tasks are identified to place these tasks at the first level of the tree
diagram.
iv. The sub-tasks that are needed to complete the primary task are identified. These tasks
in a sequential order are arranged to the right side of the main tasks.
v. Each branch of the completed tree diagram is analyzed in order to achieve the
objective.
Eg. The tree diagram for how to improve customer relations for any organisations to survive
and succeed.
iv)Matrix Diagram
1. It is a tool that is used to find out, study and rate the relationship between two or more
variables.
2. Matrix diagram sometimes referred as ‘quality table’ is the starting point in building a
‘house of quality’.
3. For eg. This diagram can be used to understand relations between customer satisfaction
and product characteristics, between complaints and product groups, etc.
4. Steps for matrix diagram are:
i) First decide on the two sets of factors to be compared.
ii) Place the main factors vertically (features) on the left hand side of the matrix and the
dependent factors(characteristics) horizontally on the top of the matrix.
iii) In the main body of the matrix, place appropriate symbols at the intersecting square
boxes denoting the relationship between the two factors.
iv) Now score relationships and select most important relationship for analysis.
5. Uses:
i. It is an effective problem solving tool that is used to assign tasks to complete the project
ii. It is used to show the relationship between the two variables
iii. It is used to compare different competing alternatives with multiple characteristics.

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Types of Matrix diagrams

1) L-Shaped matrix ( 2 Variables are used) [Most Common type]

2) T-Shaped matrix ( 3 Variables are used)
3) Y-Shaped matrix ( 3 Variables are used)
4) X-Shaped matrix ( 4 Variables are used)
5) C-Shaped matrix ( 3 Variables are used)
V)Matrix Data Analysis Diagram
1. It is almost similar to a matrix diagram but the difference is that the numerical data is used
instead of symbols indicating the existence and strength of relationship.
2. It is the only tool among the ‘New Seven Management Tools’ which uses numerical data
and produces numerical results.
3. Purpose:
i) To present numerical data about two sets of factors in a matrix form and analyse it to
get numerical output.
ii) This tool is used in “Principal Component Analysis” where only two characteristic can
be studied at a time.
iii) This tools is advantageous in studying the parameters of production processes, in
analyzing market information etc.

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4. Steps in constructing a matrix data analysis diagram

i) The important factors to be considered are listed in the first column of the matrix. The
other factors are listed in relation with the important factors in the first row of the
matrix.
ii) The numerical data with weightage corresponding to these factors are entered.
iii) The weightages are added horizontally against each row factor and the values are
recorded in the last column.
iv) The factor with least total is to be ranked first, the factor with the next highest total is
to be ranked and so on. The rankings are shown in the last column.
v) Now the factors are analyzed separately in the order of the obtained ranking.
5. Uses:
i. It is used to analyze only two characteristics at a time.
ii. It is used to prioritize issues using weighted criteria.
iii. It is used in production processes where the complicated problems arise.

 If 6 factors are present, use 1 for the most important factor and 6 for the least
important factor.

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 From the above example matrix, the order of priorities of these factors is as follows.
1. Very tough question
2. Inefficient teacher
3. Syllabus is more
4. The staff member has finished less portions in the syllabus
5. Students preparation is not enough
6. Very strict valuation.
vi)Process Decision Program Chart (PDPC) or Decision tree
1. It is also known as Decision tree which is used to identify the possible deviation from the
actual plan of the objective.
2. The PDPC forces proactive thinking on what can go wrong with one’s plan and what would
one do to overcome the effect of such adverse occurrences.
3. In other words, this tool helps to anticipate undesirable occurrences and enables one to
prepare with plans to neutralise their effect.
Uses:
1. It is used for decision making, when the new or unique task involves great risks
2. It is used to identify the undesirable occurrences and avoid them by planning appropriate
counter measures
3. It provides the mechanism to effectively minimize uncertainty in an implementation plan
4. It encourages team members to think about what can happen to a process and how
counter measures can be taken
5. It is used in new product development, data processing systems and building construction
Steps for constructing the PDPC Chart
1. The ultimate objective to be achieved is determined.
2. The first level of activities to be completed to attain the overall objective.
3. The second level of activities to be completed is listed out to achieve the first level
activities.
4. The brainstorming is conducted in order to find what is wrong, while carrying out the first
level of activities. This is called ‘what if’ level.
5. The countermeasures for each ‘what if’ are evaluated and are placed in a balloon in a
bottom level.

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vii)Arrow Diagram

It is a graphical representation of the sequential steps that must be completed before a project
can be completed.

1. It is a technique of planning, scheduling and controlling of all the activities of a project.

2. CPM (Critical Path Method) and PERT (Program Evaluation and Review Technique) charts
are the best example of arrow diagrams.
3. This arrow diagram is indispensable for long term projects such as the construction of a
plant or the development of new products.
4. The main purpose of the arrow diagrams are :
i) TO show the paths to complete a project.
ii) To find the shortest time possible for the project.
iii) To display graphically simultaneous activities.
5. Steps involved to construct a Arrow Diagram
i. The various activities (tasks) are identified and listed out to complete a project
ii. The sequence of activities is determined one after another. The time duration to each
activity is fixed.
iii. Each event is numbered by using Fulkerson’s rule and the connecting arrows are
drawn
iv. The earliest start, earliest finish, latest start and latest finish are calculated for each
activity

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v. The critical path that is, the path with longest possible time duration is determined on
the network
6. Construct an arrow diagram i.e. CPM network for the following data:
Activity Designation Immediate Predecessors Time in weeks
Design A - 16
Build prototype B A 6
Evaluate equipment C A 7
Test prototype D B 3
Write equipment E C,D 4
report F C,D 7
Write methods report G E,F 2
Write final report
Uses :
1. It is used to find the possible time duration to complete the project.
2. It is used to find the critical path of the process or a project.
3. It is used for planning and scheduling the projects.
Exam guidelines PART-A Questions on tree diagram, matrix diagram
PART-B Questions on new seven management tools

3.3 SIX SIGMA:

 The 3 sigma quality level accepts only 0.27% of points to fall outside the control limits.
 In some exceptional cases, this quality level is not enough to meet the actual
requirements.
 For example, if an aircraft consists of 9,000 different parts, according to 3sigma quality
level, 25 defective assembled parts are accepted
 This should not be accepted because, this may cause to a major incident. Hence it is
necessary to increase the sigma level in order to reduce the defectives in to a few parts
per million.
 Therefore , we are implementing 6 sigma quality level
 Under this six sigma level 3.4 defects per million opportunities with 99.99966% of
accuracy
 This six sigma quality level is developed by the world class company Motorola in the
Year of 1987.

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Quality Defects per million Cost of Poor quality Product Status

level parts produced

1-sigma 6,90,000 40-70% of sales

Non-competitive
2-sigma 3,08,537 30-40% of sales

3-sigma 66,807 20-30% of sales

4-sigma 6,210 15-20% of sales Industry Average

5-sigma 233 10-15% of sales

6-sigma 3.4 Less than 10% of sales World Class

Advantages of Six-Sigma:
 It is used to indicate the extent to which a process can vary without causing errors in
the operation
 This approach aims to reduce the defect levels into only few parts per million parts
inspected
 It aims to achieve zero defects
 It identifies and eliminates causes of defects in the process/operation.
 It provides extensive training to the project team hence, cycle time is reduced with
more profit
 It improves the work systems, training and the work environment
 It decreases the cost of inspection and reduce the rework
Disadvantages of Six-Sigma:
 This approach is very attractive but in practical it is very difficult to achieve.
Steps involved in 6-sigma state/Process of 6-sigma (DMAIC):
1&2.Define
3. Measure
4. Analyze
5. Improve
6. Control

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Define :
 The goal of an organization is defined
 To set the policies and procedures
 Identifying the customer requirements
Measure:
 The existing system is well measured and displaying data
Analyze :
 The gap between the current performance of the system and the aimed target is
identified
 These data are analyzed and then the improvement opportunities are determined
Improve:
 Planning and project management tools are improved to fill up the gap identified in the
previous step
 The present system is improved by adopting creativity to do things in a cheaper, better
and faster manner
Control:
 After improving the system, it is very essential to control the system level parameters
in order to maintain better outputs.
 Finally the system is standardized by the way of communicating the benefits of the
new system to the customers, employees and suppliers.
Exam guidelines PART-A Questions on six sigma
PART-B Questions on six sigma objective, Advantages,
disadvantages.
3.5 BENCHMARKING:
Benchmarking is defined as “the process of identifying, understanding and adopting
outstanding practices and processes from organizations anywhere in the world to an
organization to improve its performance”.
- American Productivity and
Quality centre:
Benchmarking is defined as “ the continuous process of measuring products, services and
practices against the toughest competitors (or) those companies recognized as industry
leaders” – David Kevin

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1. Benchmarking is a systematic method by which organizations can measure

themselves against the best industry practices.
2. Benchmarking is a systematic search for the best practices, innovative ideas,
and highly effective operating procedures.
Example:
 In quality education, I.I.T Chennai is the benchmark for technical education.
 IIM Ahmadabad is the benchmark for management courses.
Concept of Benchmarking:

3.5 Reasons/Objectives of Benchmarking:

1. It helps to set the new goals and adopts the best practices in the organization.
2. It helps the organization to develop their strengths and reduce their weakness.
3. It helps the organization to reach the level of the best practices in the industry
4. It is a powerful tool to achieve business and competitive objective.
5. It encourages regular monitoring of process and continuous improvement.
6. It helps to identify the current position of the business and determine the practices for
improvement.
Types of Benchmarking:
Classification Based on the Object to be benchmarked
I. Product benchmarking
i. This refers to comparison of different features and attributes of competing
products and services.
ii. It is done through either engineering analysis or through analyses of perception
of customers.
iii. It is also called as ‘customer satisfaction benchmarking’ or ‘customer value
profiling’.
iv. It can help in identifying activities where improvement is possible.

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II. Performance Benchmarking

i. This refers to comparison of performance indicators related to a business as a
whole or to the group of critical activities or processes.
ii. It measures all the different kinds of system performance variables such as
efficiency, effectiveness, productivity, quality, flexibility etc.
iii. It is a very important tool to identify different functional areas where scope for
improvement is high.
iv. It also provides external feedback to the concerned persons involved in the
process or in any of the constituent activities.
III. Process Benchmarking
i. This refers to comparison of processes
ii. It identifies a more effective and efficient process to be implemented.
IV. Strategic Benchmarking
i. This refers to examining competitive position in the market place
ii. It helps the company to study the business strategy of another successful business
and use the strategy for becoming more competitive.
Classification Based on the Organizations against whom one is Benchmarking
I. Internal Benchmarking
It refers to comparison of performance between departments, plants, subsidiaries, etc., within
the organization.
II. Industry Benchmarking
It refers to comparison of performance by the organizations producing the same class of
products and services.
III. Competitive Benchmarking
It refers to comparison of performance against direct competitors.
IV. Best-in-class Benchmarking
It refers to comparison of performance with best practices prevalent in an organization
irrespective of products and services.
V. Relationship Benchmarking
It refers to comparison of performance with the benchmarking company which already has a
relationship like customer-supplier relations, joint ventures arrangement etc.
Exam guidelines PART-A Questions on benchmarking
PART-B Questions on benchmarking reasons,types,concepts.

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3.6 BENCHMARKING PROCESS

i. Deciding what to benchmark
ii. Understanding the current performance
iii. Planning
iv. Studying others
v. Learning from the data
vi. Using the findings and
vii. Implementation & taking action
i) Deciding what to benchmark:
1. It is applied to any business or production process.
2. Expressed in terms of mission and vision statements.
3. Determine which functions, tasks, processes to be used.
4. Appoint team.
5. Formulate the project goals; determine the data to be collected and prepare a list of
questions.
6. Identify world-class company.
7. Examine a process & working methods & check the products are same or not.
ii) Understanding the current performance:
1. The analysis is based on process, product and service.
2. Check the current level (gap between organization and best-in class).
3. The current level is measured:
a. Complete measurement.
b. Conformation with procedure manuals.
c. Collect feedback and determine customer satisfaction index.
d. Draw flowcharts.
iii) Planning:
1. Internal process is needed to conduct the study.
2. Team to be chosen to decide what type of benchmarking, what type of data and
method.
3. Organizations that are candidates to serve as a benchmark.
4. Timetables to be agreed for benchmarking tasks and desired output from the study.
5. 4 types:
a. Internal- Easy to obtain data

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b. Competitive- Beast practices.

c. Process – Improve performance
d. Strategic – Winning strategies.
iv) Studying others:
1. Two types of information:
a. How best-in-class processes are practiced.
b. Measurable results of these practices.
2. Use internal sources, data in public domain, original research.
3. Three techniques:
a. Questionnaires- preparation, checklist
b. Site visits – opportunity to see processes.
c. Focus groups – panels of benchmarking partners to discuss mutual interest.
v) Learning from the data:
1. It involves answering a series of questions:
a. Is there a gap between the organization’s performance and the performance of
the best-in-class organizations?
b. What is the gap? How much is it?
c. Why there is a gap? What does the best-in-class do differently that is better?
d. If best-in-class practices were adopted, what would be the resulting
improvement?
2. Three outcomes: Negative gap (external better than internal), Parity (both are
equal) and Positive gap (internal better than external).
vi) Using the findings:
1. It is used to avoid negative gap.
2. Findings must be communicated to the people for improvement.
3. It must translate to goals & objectives, & action plans be developed to implement new
processes.
4. Two groups:
i. People who will run process, the process owners.
ii. People (upper management) who can enable process by providing changes to
planning and provide resources.

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vii) Implementation & taking action:

1. Generic steps:
i. Specify tasks.
ii. Sequence the tasks.
iii. Determine resource needs.
iv. Establish task schedule.
v. Assign responsibility.
vi. Describe expected results.
vii. Specify methods for monitoring results.
2. Best results are achieved when process owners participate in design & execution.
3. Repeat the process.
Benefits of Benchmarking:
1. Company would become competitive.
2. Helps in understanding the best industry practices.
3. It prioritizes the areas that need further improvement.
4. It helps the organizations to develop their strengths in order to achieve their goals and
objectives.
Pitfalls/Disadvantages of Benchmarking:
1. It is a process of learning from others and it does not develop any new andimproved
approaches.
2. If all the industries employ the benchmarking approach, it will lead to stagnation of
ideas, strategies, best industry practices etc. So benchmarking should not be a
substitute for innovation.
Exam guidelines PART-A Questions on benchmarking
PART-B Questions on benchmarking process

3.7 FAILURE MODE AND EFFECT ANALYSIS (FMEA):

1. It is a structural analytical technique that combines the technology and experience of
the people to identify the failures in a product (or) process and goes in for planning to
eliminate the failure.
2. It is a never-ending process improvement tool.
3. It is a group of activities comprising the following :
a. Recognize the potential failure of a product or process.

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b. Identify actions that eliminate / reduce the potential failure.

c. Document the process.
4. FMEA is a “before-the-event” action requiring a team effort to easily and inexpensively
alleviate changes in design and production.
Three Principal Study areas of FMEA:
i. Failure mode analysis
ii. Failure effect analysis
iii. Failure criticality analysis
1. These studies can be applied at any stage of design, development and production.
2. However, since the objective of FMEA is to prevent failure before occurring, the
study is mostly applied at the design stage
Failure mode analysis:
1. It is analyzing the operation of the product (or) process to see what are the most
likely modes (causes) of failure.
2. For example, Electrical short circuit, break failure etc.,
Failure effect analysis:
1. It is analyzing the effect of failure of product or process of the system
2. For Example, Effect of failure of a carburetor in a car
Failure criticality analysis:
1. It is analyzing the potential failures of the product (or) process to determine, how
critical the failure would be? How these critical failures can be minimized (or)
eliminated?
Exam guidelines PART-A Questions on FMEA
PART-B Questions on FMEA

3.8 Types of FMEA:

1. The types of FMEA can be broadly classified into two types. They are Design FMEA
and Process FMEA.
2. The other FMEA types are nothing but small variations of process FMEA and Design
FMEA.
Design FMEA:
a) It aids in the design process by identifying known and foreseeable failure modes and
then ranking failures according to the relative impact on the product.

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Process FMEA:
a) Process FMEA is used to identify potential product failure modes by ranking failures
and helping to establish priorities according to the relative impact on the internal
or external customers.
The other types are
1. System FMEA
2. Process FMEA
3. Equipment FMEA
4. Service FMEA
5. Environmental FMEA
6. Concept FMEA
a) Equipment, Service and Environmental FMEA are slightly modified versions of Process
FMEA.
b) Similarly, System FMEA is a combination of design and process FMEA.
FMEA Team:
1. The team is responsible for conducting meeting, maintaining FMEA form, records,
completion of form.
2. Every activity should be recorded in the form.
FMEA Documentation:
1. The purpose of FMEA document is to allow all involved engineers have to access
others’ thoughts.
2. The team members should design and manufacture using this collective group of
thoughts, thus promoting a team approach.
3. Document should be effective.
4. It must be continually updated as changes occur throughout the design and
manufacturing process.
Inputs for Preparation of FMEA
1. People Inputs:
a. The FMEA methodology is a team effort.
b. The FMEA team should have assembly engineer, manufacturing engineer, materials
engineer, quality engineer, service engineer, suppliers and the customer.

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2. Data Inputs:
a. The data inputs needed to prepare FMEA are product and process specifications,
reliability data, customer priority data, Process variability data, Process descriptions
and inspection data.
Reliability
Reliability is defined as “the probability that a product or a system will perform its intended
functions for a specified period of time, under the stated operating conditions”.
Failure rate:
It is the measure of tendency of a product failure.

Failure rate can be expressed as R t= =

Where Rt = the reliability or probability of survival
t = the time specified for operation without failure

= the failure rate

= the mean time to failure

Exam guidelines PART-A Questions on FMEA
PART-B Questions on FMEA types, process.

3.8 Stages of FMEA (FMEA Methodology)

The FMEA methodology has four stages. They are
Stage 1: Specifying Possibilities:
a. Functions
b. Possible failure modes
c. Root causes
d. Effects
e. Detection / Prevention
Stage 2: Quantifying risk:
a. Probability of cause
b. Severity of effect
c. Effectiveness of control to prevent cause
d. Risk Priority Number (RPN)
Stage 3: Correcting high risk causes:
a. Prioritizing work

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b. Detailing action
c. Assigning action responsibility
d. Check points on completion
Stage 4: Revaluation of risk:
a. Recalculation of Risk priority Number
FMEA Form: [FMEA CHART OR FMEA DOCUMENT]
The basic steps for implementation of a FMEA are outlined below:
1. Describe the product / process.
2. Create a block diagram of process – Logical relationships of components and
establishes a structure.
3. Complete a header of worksheet – Item, Design Responsibility, Prepared by, Key
date,… Modify these headings as needed.
4. List product functions.
5. Identify failure modes – Component, subsystem, system,.. Potentially fail to meet
design purpose. Ex. Corrosion, cracking
6. Describe the potential failure effects:
 For each mode identified the engineer should determine what the ultimate
effect will be.
 ‘Failure Effect’ is the result of a failure mode on the function of product as
perceived by a customer. Ex. Injury to the user, noise.
7. Establish a numerical ranking for the severity(S):
 ‘S’ is an assessment of seriousness of failure effect.
 A common industry standard scale uses 1(no effect) & 10(very serious effect).
8. Classify product characteristics for components, sub-systems (CLASS column).
9. Identify the potential causes / mechanisms of failure:
 ‘Failure Cause’ uses to represent design weakness. Ex. Improper alignment.
10. Enter the probability factor:
 Occurrence (O) – specific causes / mechanisms will occur.
 1 – Not likely, 10 – inevitable.
11. Identify current controls- to prevent causes of the failure mode from occurring.
12. Determine the detection(D):
 It is an assessment that the current controls will detect cause of failure mode.

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 1 – Detection, 10 – absolute uncertainty.

13. Review RPN- Product of severity, occurrence &
detection. RPN=S*O*D
14. Determine recommended actions- Address potential failures that have high RPN (risk
priority number).
15. Assign responsibility & a target completion date for actions.
16. Indicate actions taken – Re-asses the S,O,D and review the revised RPN’s.
17. Update the FMEA – as the design changes, the assessment changes.
Three categories of Failures:
Debug
Indicates high failure rate at the initial stages because of inappropriate use in the design of
manufacturing.
Chance
Failure of the product due to accidents, poor maintenance etc.,
Wear out
Failure after the product / process has performed as expected for the amount of time given by
the manufacturer as the product / process life.
Benefits of FMEA:
1. It combines the technology and experience of the people in identifying various
failure modes of a product / process
2. It identifies the causes of failures and minimize them
3. It identifies the potential failure modes right at their design stage, it minimizes the
design changes and their associated costs
4. Reduce development time and cost of manufacturing.
5. It improves product / process reliability and quality
6. It provides training for new employees
7. It improves teamwork
8. Documenting the process in a systematic manner
Exam guidelines PART-A Questions on FMEA
PART-B Questions on FMEA stages, benefits

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OBJECTIVE TYPES QUESTION:

1. SPS stands for
(a) statistical process control, (b) statistical problem control, (c) stability process control
2. Histogram is________________
(a) a pictorial diagram, (b) flow diagram, (c) picture representation
3. Cause and Effect diagram is also known as _______________
(a) Ishikawa diagram, (b) Juran diagram, (c) Crosby diagram
4. Which diagram is called as Fish bone diagram?
(a) Cause and Effect diagram, (b) Process flow-diagrams (c) Pareto diagram
(d) Scatter diagram and
5. Process flow-diagrams is used for
(a) shows the flow of the product or service as it moves through the various processing
operations.
(b) a picture composed of lines and symbols designed to represent a meaningful
relationship between an effect and its causes
(C) Look for possible solutions for these causes.
6. How many types’ histograms are available?
(a) 4,(b) 6,(c)7, (d) 8
7. Check sheet is also known as____________
(a) Tally Sheet, (b) short sheet, (c) spread sheet, (d) extend sheet.
8. Check sheet is used as
(a) Record the variables in a production process to improve the quality
(b) A powerful tool used for quality improvement
(c) A process in order to meet the customer requirements
9. Example of Scatter Diagram
(a) The relationship between Car speed Vs fuel consumption per kilometer
(b) A check sheet format is drawn to record the data
(c) Correlation by stratification

10. Which is the first stage of scatter diagram?

(a) Select examine the shape of cloud of points

(b) Examine the shape of cloud of points

(c) Collect data

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11. UCL refers --------------------

(a) Upper control limit,(b) upper cancel limit,(c ) upper correlation level

12. LCL refers----------------------

(a) Lower Control Limit, (b) Lower control level,(c) limited control level

13. Affinity Diagram is also known as-------------------

(a) KJ-Method,(b) K-modal,(c) KT-method,(d) JK modal
14. Who contributed KJ-Method?
(a) Kawakia Jiro,(b) Kawasaki,(c) jiro,(d) kamakodi
15. PDPC stands for
(a) Process Decision Program Chart,(b)program desicion process chart
(c) process dimension program chart (d) program dialog process chart
16. Tree diagram is otherwise called as
(a) dendrogram.(b) diagram ,(c) arrow method
17. Six Sigma is best defined as a:
A. process-oriented quality control method designed to improve the operations output to
99.9997 percent perfect.
B. process-oriented quality control method aimed at producing goods with zero percent
defect.
C. product-oriented quality control method designed to reduce errors to 99.9997 percent
perfect.
D. product-oriented quality control method aimed at producing goods with zero percent
defect.
18. Which companies was pioneer of Six sigma

(a) Godrej , (b) Motorola, ( c) TVS

19. How many steps present in the six sigma practice

(a) 6, (b) 5, (c) 8, (d) 3.

20. Which is the second stage of six sigma practice?

(a). Measure,(b). Analyze,(c ). Improve,(d). Control

21. Benchmarking is a systematic search for the ----------- practices

(a) Best , (b) poor, (c) reasonable, (d) rational

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22. Product benchmarking refers

(a) Comparison of different features and attributes of competing products and services
(b) Comparison of processes
(c) examining competitive position in the market place
23. Strategic benchmarking refers
(a) Comparison of different features and attributes of competing products and services
(b) Comparison of processes
(c) Examining competitive position in the market place
24. FMEA stands for
(A) Failure mode and effect analysis
(b) Fair mode and effect analysis
(c) Fast mode and effect analysis
25. The FMEA methodology has ----------------- stages
(a) Four, (b) Two,(c) Five, (d) six

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