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TQM Lecture Notes Unit 4

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0% found this document useful (0 votes)
37 views31 pages

TQM Lecture Notes Unit 4

Uploaded by

samyaravind53
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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GE3752 Total Quality Management

Unit Lecture
TQM TOOLS & TECHNIQUES II 28
No 4 No
Topic Quality circles
Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to Knowledge
Level
Explain the concept and purpose of quality circles in continuous
LO1 Understand (K2)
improvement within an organization.
Introduction to Quality Circles
Definition: Quality Circles are small groups of employees who meet regularly to identify,
analyze, and solve work-related problems, and improve processes and productivity within their
organization. They are a key component of Total Quality Management (TQM) and aim to
involve employees in the decision-making process related to quality improvement.
Purpose:
 To enhance quality and productivity through employee participation.
 To foster a culture of continuous improvement.
 To empower employees by involving them in problem-solving and decision-making.
Key Components:
1. Formation:
o Participants: Typically consist of employees from the same work area or with
similar job functions.
o Frequency: Regular meetings, often weekly or bi-weekly.
2. Process:
o Problem Identification: Members identify areas where improvements can be
made.
o Analysis: Use various tools (e.g., Pareto charts, cause-and-effect diagrams) to
analyze the problems.
o Solution Development: Propose and evaluate potential solutions.
o Implementation: Implement the chosen solutions and monitor their
effectiveness.
3. Tools and Techniques:
o Brainstorming: Generating a wide range of ideas.
o Cause-and-Effect Diagrams: Identifying root causes of problems.

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GE3752 Total Quality Management

o Pareto Analysis: Focusing on the most significant issues.


o Flowcharts: Mapping out processes to identify inefficiencies.
4. Benefits:
o Improved Quality: Enhanced processes and reduced defects.
o Increased Employee Engagement: Greater involvement in decision-making
and problem-solving.
o Enhanced Teamwork: Improved communication and collaboration among
employees.
o Cost Reduction: Efficient use of resources and reduction in waste.
5. Challenges:
o Resistance to Change: Overcoming reluctance from employees or
management.
o Lack of Time: Ensuring that quality circle activities do not interfere with
regular work responsibilities.
o Insufficient Training: Providing adequate training for members to effectively
contribute to the quality circles.
Assessment questions to the lecture

Bloom’s
Qn No Question Answer Knowledge
Level
1 What is the primary purpose of a Quality Circle? C Remembering
A) To increase individual employee salaries
B) To reduce the number of meetings in an organization
C) To involve employees in identifying and solving work-
related problems
D) To create new job positions within the company
2 Which tool is commonly used in Quality Circles to B Remembering
identify the root causes of problems?
A) Histogram
B) Cause-and-Effect Diagram
C) Scatter Plot
D) Control Chart

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 2 of 31


GE3752 Total Quality Management

3 Which of the following is a benefit of implementing C Remembering


Quality Circles?
A) Increased bureaucracy
B) Higher production costs
C) Improved quality and employee engagement
D) Decreased communication among employees
4 What is a common challenge faced by Quality Circles? C Remembering
A) Over-abundance of resources
B) Excessive employee participation
C) Resistance to change and lack of time
D) Increased sales revenue

Students have to prepare answers for the following questions at the end of the lecture
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Explain the role of brainstorming in Quality Circles. 2 CO4 Understanding
2 Describe one challenge of implementing Quality 2 CO4 Understanding
Circles and suggest a possible solution.
Reference Book

Library Book
Author(s) Title of the book
Accession No
Dale H.Besterfiled Total Quality Management 5624

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GE3752 Total Quality Management

Unit Lecture
TQM TOOLS & TECHNIQUES II 29
No 4 No
Topic Quality Function Deployment (QFD)
Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to Knowledge
Level
Explain the key components and steps involved in the Quality
LO1 Understand (K2)
Function Deployment (QFD) process.
LO2 Describe the process of creating a House of Quality matrix in QFD. Understand (K2)
Introduction to Quality Function Deployment (QFD)
Quality Function Deployment (QFD) is a structured approach used to translate customer
requirements (or "voice of the customer") into specific technical requirements and actions. It
helps organizations ensure that product or service designs meet customer needs and
expectations, leading to improved quality and customer satisfaction.
Key Components of QFD
1. Voice of the Customer (VOC):
o VOC refers to the needs and expectations of customers. Collecting VOC is the
first step in QFD and involves gathering and analyzing customer feedback,
surveys, and market research.
2. House of Quality (HoQ):
o The House of Quality is the primary tool used in QFD. It is a matrix that helps
to identify the relationship between customer needs and the company’s ability
to meet those needs. It consists of:
 Customer Requirements (Whats): What the customers need or expect
from the product or service.
 Technical Requirements (Hows): How the company can meet these
customer needs through technical features or improvements.
 Relationship Matrix: Shows the correlation between customer
requirements and technical requirements.
 Priority Levels: Helps prioritize which customer requirements are most
critical and should be addressed first.

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GE3752 Total Quality Management

3. Interdepartmental Communication:
o QFD promotes communication among different departments (e.g., marketing,
engineering, manufacturing) to ensure that everyone is aligned with the
customer’s needs and expectations.
4. Continuous Improvement:
o QFD is not a one-time process but an ongoing approach to improving products
or services based on changing customer needs and feedback.
Benefits of QFD
 Enhanced Customer Satisfaction: By focusing on customer requirements, QFD
ensures that products and services better meet customer needs, leading to higher
satisfaction.
 Improved Product Quality: By translating customer needs into specific technical
requirements, QFD helps to enhance the quality of the final product or service.
 Reduced Time-to-Market: Efficiently addresses customer needs and improves
coordination among teams, which can lead to faster product development cycles.
 Better Resource Allocation: Helps prioritize features and improvements based on
their impact on customer satisfaction, leading to more effective use of resources.
Steps in the QFD Process
1. Identify Customer Requirements:
o Collect and analyze customer feedback to determine what they want and need
from the product or service.
2. Develop Technical Requirements:
o Translate customer requirements into technical features or specifications that
can be implemented.
3. Create the House of Quality Matrix:
o Develop the matrix to map customer requirements against technical
requirements and identify relationships.
4. Prioritize Requirements:
o Determine the importance of each customer requirement and technical feature,
focusing on those that have the greatest impact.
5. Implement and Monitor:
o Apply the findings to product development and monitor the results to ensure
that customer needs are being met effectively.

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 5 of 31


GE3752 Total Quality Management

Assessment questions to the lecture


Bloom’s
Qn No Question Answer Knowledge
Level
1 What is the primary purpose of Quality Function B Remembering
Deployment (QFD)?
A) To increase production speed
B) To translate customer requirements into technical
specifications
C) To reduce manufacturing costs
D) To streamline internal communication
2 Which tool is commonly used in QFD to map customer B Remembering
needs to technical requirements?
A) SWOT Analysis
B) House of Quality (HoQ)
C) Pareto Chart
D) Fishbone Diagram
3 In the House of Quality, what does the ‘Relationship B Remembering
Matrix’ show?
A) The cost of technical requirements
B) The correlation between customer requirements and
technical requirements
C) The timeline for product development
D) The supplier performance metrics
4 What is one of the main benefits of implementing QFD in C Remembering
product development?
A) Increased marketing expenses
B) Decreased customer satisfaction
C) Enhanced alignment between customer needs and
product features
D) Longer development cycles

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 6 of 31


GE3752 Total Quality Management

Students have to prepare answers for the following questions at the end of the lecture
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Explain the role of the House of Quality in Quality 2 CO4 Understanding
Function Deployment (QFD).
2 Describe two key benefits of using Quality Function 2 CO4 Understanding
Deployment (QFD) in product development.
Reference Book

Library Book
Author(s) Title of the book
Accession No
Dale H.Besterfiled Total Quality Management 5624

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 7 of 31


GE3752 Total Quality Management

Unit Lecture
TQM TOOLS & TECHNIQUES II 30
No 4 No
Topic Quality Function Deployment (QFD)- Case studies
Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to Knowledge
Level
Explain the key concepts and components of Quality Function
LO1 Understand (K2)
Deployment (QFD) through analysis of case studies.
Explain the effectiveness of QFD in addressing customer needs and
LO2 Understand (K2)
product development in various industry scenarios.
Purpose of QFD
 Customer Focus: QFD aims to translate customer needs into precise design specifications.
 Enhanced Communication: Facilitates better communication between different departments
(marketing, engineering, manufacturing).
 Product Improvement: Helps in optimizing product features and reducing time to market.
QFD Process
1. Identify Customer Needs: Gather customer requirements and expectations.
2. Translate Needs into Technical Requirements: Convert customer needs into technical
specifications.
3. Prioritize Requirements: Use tools like the House of Quality to prioritize and relate customer
needs to engineering characteristics.
4. Develop and Refine Design: Apply technical requirements to the product design and refine
based on feedback.
Case Study 1: Automotive Industry
Background: A car manufacturer used QFD to improve the design of a new model based on
customer feedback.
 Customer Needs: Smooth ride, fuel efficiency, safety features.
 Technical Requirements: Enhanced suspension system, optimized engine design, advanced
safety mechanisms.
 Outcome: The application of QFD led to a significant increase in customer satisfaction and
reduced warranty claims.
Case Study 2: Consumer Electronics
Background: An electronics company used QFD to develop a new smartphone with advanced
features.
 Customer Needs: High performance, long battery life, intuitive interface.

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GE3752 Total Quality Management

 Technical Requirements: High-capacity battery, efficient processor, user-friendly software.


 Outcome: The QFD process resulted in a successful product launch, with high customer ratings
for performance and usability.
Benefits of Using QFD
 Enhanced Customer Satisfaction: Products are better aligned with customer expectations.
 Reduced Development Time: Streamlines the design process by focusing on critical customer
needs.
 Improved Cross-Functional Collaboration: Encourages teamwork between different
departments.
Assessment questions to the lecture
Bloom’s
Qn No Question Answer Knowledge
Level
1 What is the primary purpose of Quality Function B Remembering
Deployment (QFD)?

A) To reduce production costs


B) To translate customer needs into engineering
requirements
C) To increase production speed
D) To minimize marketing expenses
2 Which tool is commonly used in QFD to relate customer B Remembering
needs to technical requirements?

A) Pareto Chart
B) House of Quality
C) Fishbone Diagram
D) Scatter Plot
3 In the automotive industry case study, what was one of the B Remembering
key customer needs addressed through QFD?

A) Advanced infotainment system


B) Smooth ride
C) Luxurious interior design

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GE3752 Total Quality Management

D) Extended warranty period


4 What was a key outcome of using QFD in the consumer B Remembering
electronics case study?
A) Increased production cost
B) High customer ratings for performance and usability
C) Decreased battery life
D) Reduced market share

Students have to prepare answers for the following questions at the end of the lecture
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 What role does the House of Quality play in the QFD 2 CO4 Understanding
process?
2 Describe one benefit of applying QFD based on the 2 CO4 Understanding
automotive industry case study.
Reference Book
Library Book
Author(s) Title of the book
Accession No
Dale H.Besterfiled Total Quality Management 5624

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 10 of 31


GE3752 Total Quality Management

Unit Lecture
TQM TOOLS & TECHNIQUES II 31
No 4 No
Topic Taguchi quality loss function
Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to Knowledge
Level
Explain the concept of the Taguchi Quality Loss Function and its
LO1 Understand (K2)
significance in quantifying quality.
Explain the mathematical formulation of the Taguchi Quality Loss
LO2 Understand (K2)
Function and its impact on product variation and cost.
Introduction to Taguchi Quality Loss Function
The Taguchi Quality Loss Function is a concept introduced by Dr. Genichi Taguchi to
measure the economic loss incurred when a product or service deviates from its target
specifications. Unlike traditional quality measurements that focus on defect rates or
compliance, the Taguchi Loss Function emphasizes the cost implications of variation from
the target.
Key Concepts
1. Quality Loss Function Overview
o Definition: The Quality Loss Function quantifies the loss to society (or the
customer) as a function of deviation from the target value. It illustrates that
even small deviations from the target can result in significant losses.
o Formula: The general form of the Loss Function is L(y)=k⋅(y−T)2
where:
 L(y) = Quality loss
 y = Actual value of the characteristic
 T = Target value
 k = Proportionality constant (represents the cost or loss per unit
deviation)
2. Implications of the Loss Function
o Economic Impact: The Loss Function shows that the cost of poor quality
increases exponentially as the deviation from the target increases. This
emphasizes the importance of designing processes to meet target
specifications as closely as possible.

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GE3752 Total Quality Management

o Customer Perspective: From a customer’s perspective, any deviation from


the target can affect their satisfaction and result in increased costs or reduced
performance.
3. Applications of the Taguchi Loss Function
o Design of Experiments (DOE): Taguchi's approach includes using the Loss
Function to optimize product and process design to minimize variation.
o Quality Improvement: The function helps organizations focus on reducing
variation rather than merely meeting product specifications, leading to better
quality and cost efficiency.
4. Benefits of Using the Loss Function
o Enhanced Quality Control: By focusing on minimizing loss rather than just
meeting specifications, organizations can achieve higher quality and
reliability.
o Cost Reduction: Understanding and applying the Loss Function can lead to
significant cost savings through better process design and reduced variability.

Assessment questions to the lecture


Bloom’s
Qn No Question Answer Knowledge
Level
1 What does the Taguchi Quality Loss Function measure? B Remembering
A. The rate of product defects
B. The cost of deviations from the target value
C. The compliance with industry standards
D. The efficiency of manufacturing processes
2 In the Taguchi Quality Loss Function formula C Remembering
L(y)=k⋅(y−T)2, what does the variable T represent?
A. Actual value of the characteristic
B. Cost per unit deviation
C. Target value of the characteristic

D. Quality loss

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 12 of 31


GE3752 Total Quality Management

3 According to the Taguchi Loss Function, what happens to C Remembering


the quality loss as the deviation from the target increases?
A. The quality loss decreases linearly
B. The quality loss remains constant
C. The quality loss increases exponentially
D. The quality loss decreases exponentially
4 What is one of the primary benefits of applying the B Remembering
Taguchi Quality Loss Function in quality management?
A. It focuses solely on meeting specifications
B. It helps in reducing variability and associated costs
C. It emphasizes the importance of defect rates
D. It simplifies the design of experiments

Students have to prepare answers for the following questions at the end of the lecture
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Explain how the Taguchi Quality Loss Function 2 CO4 Understanding
differs from traditional quality measurement
approaches.
2 What is the significance of the proportionality 2 CO4 Understanding
constant k in the Taguchi Quality Loss Function
formula?
Reference Book

Library Book
Author(s) Title of the book
Accession No
Dale H.Besterfiled Total Quality Management 5624

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 13 of 31


GE3752 Total Quality Management

Unit Lecture
TQM TOOLS & TECHNIQUES II 32
No 4 No
Topic TPM- Concepts
Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to Knowledge
Level
Explain the fundamental concepts of Total Productive Maintenance
LO1 Understand (K2)
(TPM).
Describe the importance of TPM in improving equipment
LO2 Understand (K2)
effectiveness and reliability.
1. Introduction to Total Productive Maintenance (TPM): Total Productive Maintenance
(TPM) is a comprehensive approach to equipment maintenance that strives to maximize the
operational efficiency of machinery while minimizing downtime. TPM emphasizes proactive
and preventive maintenance practices, involving all employees in maintaining and improving
equipment performance.
2. Key Concepts of TPM:
 Objective of TPM: TPM aims to enhance equipment effectiveness by reducing
breakdowns, maintenance costs, and unscheduled downtime. It fosters a culture of
continuous improvement and ownership among all employees.
 Eight Pillars of TPM: TPM is built on eight foundational pillars, each addressing
different aspects of equipment maintenance and productivity:
1. Autonomous Maintenance: Empowering operators to take responsibility for
routine maintenance tasks, such as cleaning, lubrication, and minor repairs.
2. Planned Maintenance: Scheduling regular maintenance activities to prevent
equipment failure and ensure smooth operation.
3. Quality Maintenance: Identifying and addressing equipment issues that lead
to product defects, ensuring consistent product quality.
4. Focused Improvement: Implementing targeted improvements to address
specific problems or inefficiencies in equipment performance.
5. Early Equipment Management: Integrating maintenance considerations into
the design and installation of new equipment to enhance reliability and ease of
maintenance.

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GE3752 Total Quality Management

6. Training and Education: Providing continuous training and skill development


to employees to enhance their ability to perform maintenance tasks effectively.
7. Safety, Health, and Environment: Ensuring that equipment maintenance
practices comply with safety, health, and environmental regulations.
8. TPM in Administration: Applying TPM principles to administrative functions
to improve efficiency and reduce waste.
 TPM Implementation Steps:
1. Establish a TPM Team: Form a cross-functional team responsible for
overseeing TPM initiatives and driving continuous improvement.
2. Develop a TPM Plan: Create a detailed plan outlining the goals, strategies, and
timelines for implementing TPM practices.
3. Conduct Equipment Analysis: Assess the current condition of equipment,
identify areas for improvement, and prioritize maintenance activities.
4. Implement TPM Practices: Introduce TPM pillars and practices into daily
operations, involving all employees in maintenance activities.
5. Monitor and Measure Performance: Track key performance indicators
(KPIs) such as equipment uptime, maintenance costs, and defect rates to
evaluate the effectiveness of TPM initiatives.
6. Continuous Improvement: Regularly review and refine TPM practices based
on performance data and feedback to drive ongoing improvement.
 Benefits of TPM:
o Increased Equipment Uptime: Reduces unexpected breakdowns and
downtime, leading to higher productivity.
o Improved Product Quality: Enhances equipment performance and reliability,
resulting in fewer defects and higher-quality products.
o Reduced Maintenance Costs: Proactive maintenance reduces the need for
costly emergency repairs and extends equipment lifespan.
o Enhanced Employee Engagement: Involves employees in maintenance
activities, fostering a sense of ownership and teamwork.
o Greater Operational Efficiency: Streamlines maintenance processes and
minimizes waste, leading to more efficient operations.

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 15 of 31


GE3752 Total Quality Management

Assessment questions to the lecture


Students have to prepare answers for the following questions at the end of the lecture
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Explain the concept of Autonomous Maintenance in 2 CO4 Understanding
TPM and its impact on equipment performance.
2 Describe two benefits of implementing Total 2 CO4 Understanding
Productive Maintenance (TPM) in an organization.
Reference Book
Library Book
Author(s) Title of the book
Accession No
Dale H.Besterfiled Total Quality Management 5624

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 16 of 31


GE3752 Total Quality Management

Unit Lecture
TQM TOOLS & TECHNIQUES II 33
No 4 No
Topic Improvement needs
Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to Knowledge
Level
Understand the concept of Total Productive Maintenance (TPM) and
LO1 Understand (K2)
its role in identifying improvement needs within an organization.
Explain the key principles of TPM and how they contribute to
LO2 Understand (K2)
continuous improvement and equipment efficiency.
Total Productive Maintenance (TPM) is a comprehensive approach to maintenance that aims
to enhance the efficiency and effectiveness of equipment and processes. TPM focuses on
proactive maintenance strategies to reduce downtime, improve productivity, and ensure the
reliability of equipment.
1. Overview of TPM
 Objective: TPM seeks to maximize equipment effectiveness and overall productivity
by involving all employees in the maintenance process.
 Core Principles: TPM is built on eight core principles, including:
o Autonomous Maintenance: Empowering operators to perform routine
maintenance tasks.
o Planned Maintenance: Scheduling maintenance activities to prevent
breakdowns.
o Quality Maintenance: Ensuring equipment consistently produces high-quality
output.
o Focused Improvement: Targeting specific areas for continuous improvement.
o Early Equipment Management: Integrating maintenance considerations into
equipment design.
o Training and Education: Enhancing skills and knowledge for effective
maintenance.
o Safety, Health, and Environment: Ensuring a safe and environmentally-
friendly working environment.
o TPM in Administration: Applying TPM principles to non-production areas.
2. Improvement Needs in TPM
Improvement needs in TPM can be categorized into several key areas:

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 17 of 31


GE3752 Total Quality Management

a. Equipment Reliability and Maintenance:


 Identification of Issues: Regularly identify and address recurring equipment issues.
 Root Cause Analysis: Use techniques like the 5 Whys and Fishbone Diagrams to
determine the underlying causes of problems.
 Preventive Maintenance: Develop and implement schedules to prevent equipment
failures.
b. Process Optimization:
 Data Analysis: Analyze equipment performance data to identify trends and areas for
improvement.
 Benchmarking: Compare performance against industry standards and best practices.
 Continuous Improvement: Use tools such as Kaizen and Six Sigma to drive process
improvements.
c. Employee Involvement:
 Training: Provide ongoing training to enhance skills and knowledge related to TPM.
 Empowerment: Encourage operators to take ownership of maintenance tasks and
contribute to problem-solving.
 Communication: Foster open communication channels for feedback and suggestions.
d. Technology and Tools:
 Adoption of New Technologies: Utilize advanced technologies like predictive
maintenance tools and IoT sensors to enhance maintenance practices.
 Tool Standardization: Ensure that tools and equipment are standardized and readily
available.
e. Management Support:
 Leadership Commitment: Secure active support and involvement from management
in TPM initiatives.
 Resource Allocation: Allocate necessary resources for TPM activities, including
budget, personnel, and equipment.
f. Evaluation and Metrics:
 Performance Metrics: Establish and monitor key performance indicators (KPIs) such
as Overall Equipment Effectiveness (OEE), Mean Time Between Failures (MTBF), and
Mean Time To Repair (MTTR).
 Regular Reviews: Conduct periodic reviews to assess the effectiveness of TPM
practices and identify areas for improvement.

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 18 of 31


GE3752 Total Quality Management

Assessment questions to the lecture

Bloom’s
Qn No Question Answer Knowledge
Level
1 Which of the following is NOT one of the core principles C Remembering
of TPM?
A) Autonomous Maintenance
B) Planned Maintenance
C) Financial Auditing
D) Quality Maintenance
2 What is the primary purpose of Root Cause Analysis in B Remembering
TPM?
A) To schedule maintenance activities
B) To identify and address the underlying causes of
equipment issues
C) To benchmark performance against industry standards
D) To train employees on maintenance tasks
3 Which TPM principle focuses on empowering operators C Remembering
to perform routine maintenance tasks?
A) Focused Improvement
B) Early Equipment Management
C) Autonomous Maintenance
D) Safety, Health, and Environmen
4 Which tool or technique is commonly used in TPM to A Remembering
drive continuous improvement?
A) Kaizen
B) SWOT Analysis
C) PEST Analysis
D) Porter's Five Forces

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 19 of 31


GE3752 Total Quality Management

Students have to prepare answers for the following questions at the end of the lecture
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Explain the concept of Autonomous Maintenance in 2 CO4 Understanding
TPM.
2 Describe how data analysis contributes to process 2 CO4 Understanding
optimization in TPM.
Reference Book

Library Book
Author(s) Title of the book
Accession No
Dale H.Besterfiled Total Quality Management 5624

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 20 of 31


GE3752 Total Quality Management

Unit Lecture
TQM TOOLS & TECHNIQUES II 34
No 4 No
Topic Performance measures
Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to Knowledge
Level
Explain the key performance measures used in Total Productive
LO1 Understand (K2)
Maintenance (TPM).
Discuss the significance of performance metrics in evaluating TPM
LO2 Understand (K2)
effectiveness.
1. Introduction to TPM Performance Measures:
Total Productive Maintenance (TPM) is a holistic approach aimed at maximizing the
effectiveness of equipment. TPM performance measures are essential to evaluate the success
of TPM implementation and to identify areas for improvement. These measures help
organizations track maintenance efficiency, equipment performance, and overall productivity.
2. Key Performance Measures in TPM:
a. Overall Equipment Effectiveness (OEE):
 Definition: OEE is a comprehensive metric used to assess how effectively a
manufacturing operation is utilized compared to its full potential. It combines the
three main aspects: availability, performance, and quality.
 Components:
o Availability: Measures the proportion of scheduled time that the equipment is
available for production. It accounts for downtime and setup time.
o Performance: Evaluates the speed at which the equipment operates compared
to its maximum speed. It measures the production rate.
o Quality: Assesses the number of good units produced versus the total units
produced, focusing on defect rates.
 Formula: OEE = Availability × Performance × Quality
b. Mean Time Between Failures (MTBF):
 Definition: MTBF is the average time between the occurrence of one failure and the
next. It reflects the reliability of equipment.
 Calculation: MTBF = Total Operating Time / Number of Failures
c. Mean Time to Repair (MTTR):

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GE3752 Total Quality Management

 Definition: MTTR is the average time taken to repair equipment and restore it to
normal operation. It measures the efficiency of the maintenance process.
 Calculation: MTTR = Total Downtime / Number of Repairs
d. Equipment Downtime:
 Definition: Equipment downtime refers to the total time that equipment is not
operational due to maintenance or failures.
 Types:
o Planned Downtime: Scheduled maintenance activities or upgrades.
o Unplanned Downtime: Unexpected breakdowns or failures.
e. Maintenance Costs:
 Definition: This measure tracks the total cost of maintaining equipment, including
labor, parts, and other related expenses.
 Types:
o Preventive Maintenance Costs: Costs associated with regular, scheduled
maintenance.
o Corrective Maintenance Costs: Costs incurred due to unplanned repairs and
breakdowns.
f. Reliability and Availability:
 Reliability: Refers to the ability of equipment to perform its required functions
without failure over a specified period.
 Availability: Indicates the proportion of time that equipment is in a state of readiness
for use.
3. Importance of TPM Performance Measures:
 Improves Equipment Efficiency: Helps identify and reduce inefficiencies and
downtime.
 Enhances Productivity: By optimizing equipment performance and reducing
downtime, organizations can increase overall productivity.
 Reduces Costs: Effective maintenance measures help in controlling maintenance
costs and avoiding unexpected repairs.
 Supports Continuous Improvement: Provides data for analysis, leading to
continuous improvement in maintenance practices and equipment reliability.
4. Implementing TPM Performance Measures:
 Set Clear Objectives: Define specific goals for each performance measure.
 Collect Data: Gather accurate and relevant data for each measure.

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 22 of 31


GE3752 Total Quality Management

 Analyze Results: Review performance data to identify trends and areas for
improvement.
 Take Corrective Actions: Implement strategies to address any issues identified
through performance measures.
 Review and Adjust: Continuously review performance measures and adjust
strategies as needed to ensure ongoing improvement.

Assessment questions to the lecture


Bloom’s
Qn No Question Answer Knowledge
Level
1 What does Overall Equipment Effectiveness (OEE) B Remembering
measure?
a) The cost of equipment maintenance
b) The efficiency of equipment utilization
c) The total downtime of equipment
d) The number of equipment failures
2 Which of the following is a component of OEE? C Remembering
a) Mean Time Between Failures (MTBF)
b) Mean Time to Repair (MTTR)
c) Availability
d) Maintenance Costs
3 What is the formula for calculating Mean Time Between B Remembering
Failures (MTBF)?
a) Total Downtime / Number of Failures
b) Total Operating Time / Number of Failures
c) Total Operating Time / Number of Repairs
d) Total Downtime / Number of Repairs
4 What does Mean Time to Repair (MTTR) measure? C Remembering
a) The time between equipment failures
b) The total operating time of equipment
c) The average time taken to repair equipment
d) The availability of equipment

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 23 of 31


GE3752 Total Quality Management

Students have to prepare answers for the following questions at the end of the lecture
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Define Overall Equipment Effectiveness (OEE) and 2 CO4 Understanding
explain its significance in TPM.
2 How is Mean Time Between Failures (MTBF) 2 CO4 Understanding
calculated, and what does it indicate about equipment
reliability?
Reference Book

Library Book
Author(s) Title of the book
Accession No
Dale H.Besterfiled Total Quality Management 5624

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 24 of 31


GE3752 Total Quality Management

Unit Lecture
TQM TOOLS & TECHNIQUES II 35
No 4 No
Topic Cost of Quality
Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to Knowledge
Level
Explain the concept of Cost of Quality and its components, including
LO1 Understand (K2)
prevention, appraisal, and failure costs.
Explain the impact of Cost of Quality on an organization's overall
LO2 Understand (K2)
financial performance and decision-making.
1. Introduction to Cost of Quality (COQ)
The Cost of Quality (COQ) is a critical metric in quality management that measures the total
costs associated with ensuring and maintaining quality in products or services. It includes all
expenses related to preventing, detecting, and addressing quality issues. Understanding COQ
helps organizations make informed decisions to improve quality and reduce costs.
2. Categories of Cost of Quality
1. Prevention Costs
o Definition: Costs incurred to prevent defects from occurring in the first place.
o Examples: Quality planning, training, process improvement initiatives, and
preventive maintenance.
o Objective: Reduce the likelihood of defects and ensure that processes are
designed to avoid quality issues.
2. Appraisal Costs
o Definition: Costs associated with measuring and monitoring quality to ensure
that products or services meet standards.
o Examples: Inspection and testing, quality audits, and calibration of equipment.
o Objective: Detect and correct defects before products or services reach the
customer.
3. Internal Failure Costs
o Definition: Costs incurred when defects are detected before products or
services are delivered to the customer.
o Examples: Rework, scrap, and downtime due to defects.
o Objective: Address issues within the organization to prevent defective products
from reaching customers.

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GE3752 Total Quality Management

4. External Failure Costs


o Definition: Costs that arise when defects are discovered after products or
services have been delivered to the customer.
o Examples: Warranty claims, returns, recalls, and customer complaints.
o Objective: Minimize the impact on customers and the organization’s reputation
by addressing defects that reach the market.
3. Calculating Cost of Quality
1. Total COQ Formula:
Total COQ=Prevention Costs+Appraisal Costs+Internal Failure Costs+External Failur
e Costs\text{Total COQ} = \text{Prevention Costs} + \text{Appraisal Costs} +
\text{Internal Failure Costs} + \text{External Failure
Costs}Total COQ=Prevention Costs+Appraisal Costs+Internal Failure Costs+Externa
l Failure Costs
2. Impact on Profitability:
o High internal and external failure costs can significantly impact profitability and
customer satisfaction.
o Investing in prevention and appraisal costs can lead to a reduction in failure
costs and overall COQ.
4. Benefits of Managing Cost of Quality
1. Improved Quality:
o Reduced defects and higher product or service quality.
2. Increased Customer Satisfaction:
o Fewer complaints and returns enhance customer loyalty.
3. Enhanced Efficiency:
o Streamlined processes and reduced waste lead to cost savings.
4. Better Decision Making:
o Informed decisions regarding quality improvement initiatives and resource
allocation.
5. Strategies to Reduce Cost of Quality
1. Implement Quality Management Systems (QMS):
o Use frameworks such as ISO 9001 to establish processes for quality control and
continuous improvement.
2. Invest in Training and Development:

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GE3752 Total Quality Management

o Enhance employee skills and knowledge to prevent defects and improve


processes.
3. Perform Root Cause Analysis:
o Identify and address the underlying causes of defects to reduce internal and
external failure costs.
4. Adopt Lean Manufacturing Principles:
o Minimize waste and improve process efficiency to reduce quality costs.
Assessment questions to the lecture
Bloom’s
Qn No Question Answer Knowledge
Level
1 What are Prevention Costs in the context of Cost of C Remembering
Quality?
a) Costs incurred due to defects detected after delivery.
b) Costs associated with quality audits and inspections.
c) Costs associated with activities to prevent defects from
occurring.
d) Costs incurred when defects are detected before
delivery.
2 Which of the following is an example of External Failure C Remembering
Costs?
a) Training for quality improvement.
b) Costs of rework and scrap.
c) Warranty claims and returns.
d) Calibration of equipment.
3 How is the Total Cost of Quality (COQ) calculated? C Remembering
a) COQ = Prevention Costs + Appraisal Costs
b) COQ = Prevention Costs + Internal Failure Costs
c) COQ = Prevention Costs + Appraisal Costs + Internal
Failure Costs + External Failure Costs
d) COQ = Internal Failure Costs + External Failure Costs
4 What is the primary objective of Appraisal Costs? A Remembering

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 27 of 31


GE3752 Total Quality Management

a) To detect and correct defects before reaching


customers.
b) To reduce the likelihood of defects through training.
c) To handle warranty claims and customer complaints.
d) To measure the effectiveness of quality improvement
initiatives.

Students have to prepare answers for the following questions at the end of the lecture
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Define External Failure Costs and provide an example. 2 CO4 Understanding
2 What is the formula for calculating Total Cost of 2 CO4 Understanding
Quality (COQ)?
Reference Book

Library Book
Author(s) Title of the book
Accession No
Dale H.Besterfiled Total Quality Management 5624

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 28 of 31


GE3752 Total Quality Management

Unit Lecture
TQM TOOLS & TECHNIQUES II 36
No 4 No
Topic BPR
Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to Knowledge
Level
Explain the effectiveness of various Business Process
LO1 Reengineering (BPR) strategies in improving organizational Understand (K2)
performance.
Explain the key principles and objectives of Business Process
LO2 Understand (K2)
Reengineering (BPR).
1. Introduction to BPR
 Definition: Business Process Reengineering (BPR) is a management strategy aimed at
improving the efficiency and effectiveness of organizational processes by radically
redesigning them. It focuses on fundamental rethinking and radical redesign to achieve
dramatic improvements in critical, contemporary measures of performance such as cost,
quality, service, and speed.
 Objective: The primary objective of BPR is to help organizations restructure their
processes to be more efficient and effective, thus enhancing overall performance and
competitive advantage.
2. Key Concepts of BPR
 Process Focus: BPR emphasizes the importance of processes rather than tasks or
functions. It aims to redesign workflows to improve how work is done.
 Radical Redesign: Unlike incremental improvements, BPR involves a fundamental
rethinking and radical redesign of business processes to achieve significant
improvements.
 Dramatic Improvement: The goal is to achieve significant improvements in
performance metrics, such as cost reduction, quality enhancement, faster delivery
times, and improved customer satisfaction.
3. Steps in BPR
 Identify Processes to Reengineer: Determine which processes are critical to
organizational performance and have the potential for significant improvement.
 Analyze Existing Processes: Review and map current processes to understand their
structure, flow, and performance issues.

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GE3752 Total Quality Management

 Design the New Process: Develop a redesigned process that addresses identified
inefficiencies and aligns with organizational goals.
 Implement the New Process: Execute the redesigned process, which may involve
changes in technology, organizational structure, or employee roles.
 Evaluate and Improve: Monitor the new process to ensure it meets performance goals
and make necessary adjustments based on feedback and performance data.
4. Benefits of BPR
 Cost Reduction: Streamlining processes often leads to significant cost savings by
eliminating redundancies and inefficiencies.
 Improved Quality: Reengineering processes can enhance the quality of products and
services by focusing on core processes and customer requirements.
 Increased Speed: By optimizing workflows, organizations can reduce the time
required to deliver products and services to customers.
 Enhanced Customer Satisfaction: Efficient and effective processes lead to better
service and higher customer satisfaction.
5. Challenges of BPR
 Resistance to Change: Employees and managers may resist changes due to fear of the
unknown or concerns about job security.
 Complexity: The radical nature of BPR can lead to complex implementation processes
and challenges in aligning the new processes with existing systems.
 Risk of Failure: There is a risk that the redesigned processes may not achieve the
desired improvements or may encounter unforeseen problems.

Assessment questions to the lecture


Bloom’s
Qn No Question Answer Knowledge
Level
1 What is the primary goal of Business Process B Remembering
Reengineering (BPR)?
a) Incremental improvement of existing processes
b) Radical redesign of processes for dramatic
improvement
c) Maintaining current processes without changes

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GE3752 Total Quality Management

d) Focus on improving employee skills


2 Which of the following is NOT a typical benefit of B Remembering
implementing BPR?
a) Cost reduction
b) Increased process complexity
c) Improved quality
d) Enhanced customer satisfaction
3 What is the first step in the BPR process? B Remembering
a) Design the new process
b) Identify processes to reengineer
c) Implement the new process
d) Evaluate and improve the new process
4 Which of the following is a common challenge associated B Remembering
with BPR?
a) Employee engagement
b) Resistance to change
c) Increased efficiency
d) Improved customer satisfaction

Students have to prepare answers for the following questions at the end of the lecture
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Define Business Process Reengineering (BPR) in the 2 CO4 Understanding
context of organizational improvement.
2 List two benefits of implementing Business Process 2 CO4 Understanding
Reengineering (BPR) in an organization.
Reference Book

Library Book
Author(s) Title of the book
Accession No
Dale H.Besterfiled Total Quality Management 5624

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 31 of 31

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