WELCOME

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A COST EFFECTIVE STRATEGY
FOR BUSINESS SURVIVAL

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Businesses exist
for two reasons –

To be profitable
and
and

To give better
product / service
to the customer
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 In an ideal
manufacturing company



Product
Product && process
process designs
designs would
would be
be without
without anyany flaws
flaws
(their
(their engineers
engineers would
would have
have done
done aa perfect
perfect job)
job)



The
The materials
materials and
and bought-
bought--out
bought
bought- out parts
parts that
that go
go into
into building
building
the
the product
product would
would meet
meet allall quality
quality requirements
requirements (the (the
suppliers
suppliers performed
performed perfectly)
perfectly)



And
And the
the product
product would
would bebe manufactured
manufactured // assembled
assembled
without
without any
any errors
errors (the
(the technicians
technicians andand operators
operators wouldwould
work
work perfectly)
perfectly)



There
There would
would be
be no
no requirement
requirement for for quality
quality inspectors
inspectors
(the
(the business
business process
process isis perfect)
perfect)



The
The company
company would
would supply
supply best
best quality
quality product
product and and
would
would realize
realize best
best profitability.
profitability.
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 In reality,
costs are added



Design
Design flaws
flaws



Mistakes
Mistakes inin tools
tools && equipment
equipment



Sub-
Sub--standard
Sub
Sub- standard materials
materials



Vendor
Vendor inefficiency
inefficiency



Inadequate
Inadequate operator
operator training
training



Bad
Bad workmanship
workmanship



Unfavourable
Unfavourable employment
employment policies
policies



Unfocused
Unfocused people
people management
management
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 What do we understand
by Quality ?

Quality
Quality
Quality is
is difficult
difficult to
to define,
define, but
but
recognized
recognized when
when seen.
seen.
Quality
Quality
Quality is
is expensive.
expensive.
Quality
Quality
Quality is
is super
super craftsmanship.
craftsmanship.
Quality
Quality
Quality is
is luxury.
luxury.
Quality
Quality
Quality is
is degree
degree of of excellence.
excellence.

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 How the Quality Gurus
define Quality

 Fitness
Fitness for
for purpose
purpose or ……Juran
or use……
use……
use
 Conformance
Conformance to to requirements..
requirements..
requirements ..Crossby
 The
The minimum
minimum loss
loss imparted
imparted toto society
society
from
from the
the time
time of
of shipment…
shipment…
shipment …..Taguchi
 Delighting
Delighting the
the customer……
customer……...
customer ...MacDonald
……...
……
 Meeting
Meeting oror exceeding
exceeding thethe customers’
customers’’
customers
…………………..Hannington
expectation…………………
expectation………………….
expectation …………………
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 Quality
- as per ISO definition

The totality of features and

characteristics
of a product or service
that bear upon
its ability to satisfy
stated or implied needs.

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 History of Quality Movement

WORLD
WAR I WORLD
WAR II
DEMING
STATISTICAL ASSISTS
METHODS MacARTHUR
APPLIED TO INCREASED
EMPHASIS ON IN JAPAN JAPAN
MANUFACTURING EMERGES AS
PROCESS
IMPROVEMENT WORLD
1950s
SHEWHART QUALITY
LEADER
1920s
DEMING, JURAN
1940s DEMING, TAGUCHI
ISHIKAWA
1960s-70s

TQC
EMERGES
ZERO IN USA
DEFECT
TQM MOVEMENT
ADOPTED DEMING, JURAN
WORLD OVER FEIGENBAUM
CROSBY 1960s
1970s
DEMING, JURAN
TAGUCHI, CROSBY
1980s-90s
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 Total
Total Quality
Quality Management
Management
is
is centered
centered around
around
four
four major
major principles
principles

Defect
Defect Prevention
Prevention



Continuous
Continuous Improvement
Improvement



Customer
Customer Focus
Focus

Universal Quality

Universal Quality Responsibility
Responsibility
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 Focus on customers’
requirements and
expectations
Supplier
integration Statistical
techniques

Bench-marking CONTINUOUS
IMPROVEMENT Quality
measurements

Prevention DEFECT
of defects & PREVENTION
TQM CUSTOMER
Sustained
corrective management
FOCUS
actions Commitment

QUALITY
RESPONSIBILITY
Training Continuous
improvement

Low inventory
management Teamworking
synergy
Employee
involvement and
empowerment

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 Companies today are faced
with challenges like –

Shorter
Shorter product cycles

Products/services
Products/services rapidly becoming generic

Increased
Increased competition for shrinking markets

Higher
Higher customer expectations

Higher
Higher employee expectations

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 Programmes for evolution
fail due to reasons such as –

They
They are imposed from above

General
General lack of ‘ownership’
ownership’

Lack
Lack of clear programme objectives

Threatening
Threatening to the status quo

Resistance
Resistance to change

Expensive
Expensive

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The strategy must be
SMART

Specific

Measurable

Accepted by all

Realistic
and

Time-
Time-bound.

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 TQM Goal
Commitment to Customer Satisfaction through

Conformance to Quality Requirements

Continuous Improvement

Defect Prevention

Reduction of Variation & Waste

Throughout the Supply Chain

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Old QS 9000 : Element 4.2.5
4.2.5.1
4.2.5.1 TheThe Supplier
Supplier shall
shall
continuously
continuously improve
improve inin quality,
quality,
service
service (including
(including timing,
timing, delivery)
delivery)
and
and price
price that
that benefit
benefit all
all customers.
customers.
NOTE:
NOTE: A A continuous
continuous improvement
improvement
philosophy
philosophy should
should be
be fully
fully deployed
deployed
throughout
throughout thethe organization.
organization.

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 Continuous Improvement
Defined
A GLOBAL APPROACH TO BUSINESS
DEVELOPMENT BY ESTABLISHING AN
INTEGRATED PROGRAMME , THROUGH
WHICH A COMPANY CAN ACHIEVE
CONTINUOUS INCREMENTAL
IMPROVEMENTS, IN ITS CHOSEN KEY
IMPROVEMENTS,
MEASURES, BY FOCUSING
PERFORMANCE MEASURES,
ON BETTER MANAGEMENT OF BUSINESS
PROCESSES AND RESOURCES
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 FUNCTIONS CI – CQI BECOMES
DEFINE
PROCESSES
PEOPLE
THE FLOW A WAY OF LIFE
MISSION
PRODUCTS
CHART MONITORING
SPONSOR/ & FEEDBACK
STUDY AND
SELECT LEADER
UNDERSTAND
ORGANIZATION OBJECTIVES STRATEGIC &
TACTICAL
MILESTONES
BEST PRACTICES REVIEW OF
BENCHMARKS IDENTIFY STANDARDS
STAFF BRAND IMAGE
CQI GOALS
CUSTOMERS COMMUNICATION
SUPPLIERS IMPLEMENTATION

MANAGEMENT
ACTION PLANS
COMMITMENT
CQI STRATEGIC BUDGETS/
MASTER PLAN RESOURCES
CQI TEAM BENCHMARK
SUB TEAMS REVIEW
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 Mission Statement

XYZ
XYZ Inc.,
Inc., MISSION
MISSION STATEMENT
STATEMENT --
To
To continuously
continuously innovate
innovate and
and develop
develop
products
products and
and services
services to
to meet
meet the
the needs
needs of
of
society.
society. Helping
Helping business
business partners
partners find
find cost
cost
saving
saving solutions
solutions and
and improvements
improvements that
that
enhance
enhance growth.
growth.

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 C I Preparatory Activities
 Have right focus on customers and
products
 Determine the right functions of the
business
 Ensure that right processes are used
for right functions
 Ensure that right people are at the
right jobs
 Define roles clearly
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 QS 9000 : Element 4.2.5
4.2.5.2 Examples of
4.2.5.2 Examples of C
C II Projects
Projects
• Machine setup, die • Customer dissatisfaction
change & m/c • Excessive handling &
changeover times storage
• Excessive cycle time • Difficult operations
• Scrap, rework & • Waste of labour &
repair materials
• Non value-
value-added • Unscheduled m/c
floor space downtime
• Excessive variation • Process average not
• Cost of poor quality target centric
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 First Important Step

KNOW WHERE WE ARE

KNOW WHERE WE WANT TO GO

IN WHAT PERIOD OF TIME

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 Bench Marking
Identify & Understand
The Processes

Periodic Agree on WHAT & WHO

Review To Benchmark

Action Plan and Collect

Communication Data

Analyse Data &

Decide Benchmarks
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 Know the Process – 10 Qs
What is
1. What
1. is the
the output
output of
of 6. What is
6. What is involved
involved inin the
the
the
the process?
process? process?
process? (the (the activities
activities are
are
2.
2. Who
Who isis the
the customer?
customer? steps
steps ofof the
the process)
process)
3.
3. What
What are
are the
the 7.
7. Who
Who is
is involved?
involved?
customer’
customer’’ss
customer
customer’ (individuals,
(individuals, departments,
departments,
requirements?
requirements? (e.g(e.g suppliers)
suppliers)
quality,
quality, timing,
timing, cost)
cost) 8.
8. When
When dodo things
things happen?
happen?
4.
4. Who
Who isis the
the process
process (time-
(time
(time--scale,
(time- scale, cycle
cycle time
time etc)
etc)
owner?
owner? (the
(the person
person 9.
9. How
How much
much doesdoes itit cost?
cost? (in
(in
ultimately
ultimately responsible
responsible for
for terms
terms ofof time,
time, money
money andand
ensuring
ensuring that
that the
the manpower)
manpower)
process
process meets
meets the
the 10.
10. What
What are
are the
the problems
problems
customer’
customer’’ss rquirements)
customer
customer’ rquirements))
rquirements
rquirements) with
with the
the existing
existing process?
process?
5.
5. How
How does
does thethe process
process (as
(as percieved
percieved by by the
the
work?
work? (what
(what are
are the
the start
start process
process owner,
owner, other
other
and
and end
end points)
points) operators
operators and and customers)
customers)
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 C I Milestones

 Phase I – Commitment & Development

 Phase II – Involvement & Assimilation
 Phase III – Maturity
 Phase IV - Maintenance

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 Phase I –
Commitment & Development
 C
C II programme
programme leader
leader identified
identified
 Objectives
Objectives identified
identified
 Benchmarking
Benchmarking indicators
indicators established
established
 C
C II team
team // sub
sub teams
teams formed
formed
 Establishment
Establishment of of feasible
feasible goals
goals
 Development
Development of of C
C II Master
Master Plan
Plan
 The
The management
management buysbuys the
the C
C II
programme
programme and and assures
assures commitment
commitment
 Resources
Resources formally
formally committed
committed to
to the
the
programme
programme
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 Quality Goals
Company’
Company’’ss OBJECTIVES
Company
Company’ OBJECTIVES --

 Improve
Improve and and maintain
maintain the
the process
process capability
capability
and
and process
process performance
performance as as 1.67
1.67 and
and 1.33
1.33

 Improve
Improve the the OEE
OEE to
to more
more than
than 75%
75%

 Development
Development lead lead time
time to
to be
be reduced
reduced toto 50%
50%

 Achieve
Achieve 100%100% plan
plan vs
vs achievement
achievement andand On
On time
time
delivery
delivery toto customer
customer

 Maintain
Maintain inventory
inventory level
level at
at 35
35 days
days (present
(present
level
level is
is 56
56 days)
days)

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 Phase II –
Involvement & Assimilation

 Brand
Brand image
image created
created

 Master
Master plan
plan and
and goals
goals circulated
circulated

 Management
Management involved
involved in
in highly
highly visible
visible goals
goals

 Action
Action plans
plans developed
developed

 Grass
Grass root
root level
level teams
teams formed
formed and
and
communicated
communicated

 Training
Training given
given where
where required
required

 Reporting
Reporting andand recording
recording procedures
procedures
established
established

 Periodic
Periodic team
team meetings
meetings and
and reviews
reviews
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 Create A
Brand Image
For
For CC II Projects
Projects toto get
get the
the right
right priority
priority
during
during implementation,
implementation, aa special
special image
image
has
has toto be
be created,
created, andand communicated
communicated
to
to everyone
everyone
A
A catchy
catchy logo
logo for
for C
C I,I, makes
makes everyone
everyone in in
the
the organization
organization to to recognize
recognize itit easily
easily
and
and to immediately associate
to immediately associate itit with
with the
the
C
C II programme
programme
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 Phase III –
Maturity
 Re-
Re--benchmarking
Re benchmarking surveys,
surveys, say,
say, after
after
12
12 to
to 1818 months
months
 New
New C C II incremental
incremental goals
goals and
and
Recasting
Recasting of of Master
Master Plan
Plan
 Teams
Teams rework
rework their
their new
new targets
targets
 Team
Team performances
performances reviewed
reviewed and
and
credited
credited
 All
All standards
standards updated
updated
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 Phase IV –
Maintenance
 All
All milestones
milestones inin phase
phase II to
to III
III
have
have been
been met
met
 New
New targets
targets are
are consolidated
consolidated
with
with new
new issue
issue of
of Master
Master Plan
Plan
 CQI
CQI –– becomes
becomes aa new
new way
way ofof
life,
life, ingrained
ingrained into
into the
the routine
routine

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C I is a Continuous
Journey
PLAN

ACT DO

CHECK

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 Key Activities - 1
The
The communication
communication stage
stage involves
involves the
the
most
most important
important step
step ofof selling
selling the
the
benefits
benefits of
of the
the CC II programme
programme to to
everyone
everyone in in the
the company
company
IfIf they
they buy
buy the
the benefits,
benefits, then
then they
they will
will buy
buy
the
the programme
programme
And
And ifif they
they buy
buy the
the programme,
programme,, then
programme then they
they
will
will be
be committed
committed to to the
the success
success of of the
the
programme
programme
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 Key Activities - 2

Records of results should be

compiled on regular
predetermined period and on
specific formats (like daily
rejection record, weekly
downtime record etc)
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 Key Activities - 3

Reports
Reports must
must bebe prepared
prepared atat regular
regular
intervals
intervals (like
(like monthly
monthly delivery
delivery
performance,
performance, monthly
monthly vendor
vendor quality
quality etc)
etc)
Reports,
Reports, preferably
preferably with
with graphs
graphs andand
photographs,
photographs, should
should be
be exhibited
exhibited
prominently
prominently forfor everyone
everyone inin the
the company
company
to
to see
see
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 Key Activities - 4
Weekly
Weekly && monthly
monthly meetings
meetings ofof small
small groups
groups must
must
be
be held
held to
to highlight
highlight their
their progress
progress and
and credit
credit
individuals
individuals to
to encourage
encourage them
them and
and others
others
further
further
Involvement
Involvement andand empowerment
empowerment of of the
the staff,
staff,
making
making them
them responsible
responsible andand accountable
accountable for
for
what
what happens
happens in in their
their area
area or
or department,
department,
generally
generally leads
leads to to reduced
reduced wastage
wastage and
and
improved
improved efficiency
efficiency
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 Key Activities - 5
Keep
Keep the
the customer
customer informed
informed ofof your
your
CQI
CQI activities,
activities, and
and report
report him
him
about
about the
the progress
progress
Generally,
Generally, customers
customers are are only
only too
too
happy
happy to
to help
help you
you with
with CQI,
CQI, and
and
we
we can
can get
get invaluable
invaluable feedback
feedback
and
and inputs
inputs from
from them
them

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THANK YOU

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