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Unit 4

Unit 4. TQM Tools. BENCHMARKING. SUN TZU, a Chinese General in 500 B.C. If you know your enemy and know yourself, you need not fear the results of a hundred battles. Japanese DANTOTSU word has the meaning of striving to be the ‘ BEST OF BEST ’. This is the essence of BENCHMARKING.

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Unit 4

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  1. Unit 4 TQM Tools

  2. BENCHMARKING

  3. SUN TZU, a Chinese General in 500 B.C. If you know your enemy and know yourself, you need not fear the results of a hundred battles. Japanese DANTOTSU word has the meaning of striving to be the ‘BEST OF BEST’. This is the essence of BENCHMARKING

  4. Bench Marking Benchmarking is a systematic method by which organization can measure themselves against the best industry practices. Essence of BM is the process of borrowing ideas and adapting them to gain competitive advantage.

  5. BM Defined Bench Mark is the systematic search for best practice, innovative ideas and highly effective operating procedure W. Edward Deming It is Hazard to copy .It is necessary to understand the theory of what one wishes to do.

  6. Definition By ROBERT CAMP • “It is the search for the industry best practices that lead to superior performance.

  7. BENCHMARKING CONCEPT What is our performance level What are others’ performance levels? How did they get there Creative Adaptation Breakthrough Performance

  8. Reasons for Bench Marking • To achieve Business & Competitive Objectives. • Goals & Objectives Based on External Environment. • Cost Efficient. • Continuous Improvement & New Development.

  9. Bench Marking Process

  10. Bench Marking Process Acceptance for Analysis Communicate Data For analysis

  11. Bench Marking Process

  12. Bench Marking Template Output, Results, Success Factor WHO /WHATis Best T H E M DATACOLLECTION U S DATAANALYSIS DATACOLLECTION How Do They do it ? How do We do It ?

  13. 10. Self Bench Marking Generation of Benchmark 9. Values Bench Marking 8. Quality of Life Bench Mark Seventh Generation 7. ERP Bench Marking 6. Sixth Generation Intrapreneual Bench Marking Fifth Generation 5. Global Bench Marking 4. Fourth Generation Strategic Bench Marking 3. Third Generation Process Bench Marking 2. Second Generation Competitive Bench Marking 1. Reverse Bench Marking( product) First Generation

  14. Process of Gap Closing Step I: Select Process Performance Measure Step V :Projected Performance of Partner Step VII: Targeted Improvement Step IV: Determine B M Partner’s Performance Step III: B M GAP Step II: Determine own Performance Step VI : Schedule for Change FUTURE POSITION PRESENT POSITION

  15. Reasons For Bench Mark • Defining Customer Requirements • Establish Goals and Objectives • Measures of Productivity • Becoming Competitive • Industry best practices to be achieved

  16. Types of Bench Mark • Internal B M E.g. Eicher Tractor Comparison Between Units • Competitive B M Direct Product Competitors • Functional B M E.g. Best Logistics from same industries (or) Any industries • Generic B M Same process or functions like Customer service, order entry, regardless of industries .

  17. BENEFITS OF B M • Best Practices incorporated into the process • Motivation for creativity & innovation • Technological Breakthrough in one’s industry • Better professional growth • Meet effectively customer requirements • Assist in attaining competitive position

  18. QUALITYFUNCTIONDEPLOYMENT

  19. Dr. Yoji Akao, one of the founders of QFD • "Time was when a man could order a pair of shoes directly from the cobbler. By measuring the foot himself and personally handling all aspects of manufacturing, the cobbler could assure the customer would be satisfied," .

  20. History of QFD • QFD was developed in Japan in the late 1960s by Professors Shigeru Mizuno and Yoji Akao. • At the time, statistical quality control, which was introduced after World War II, had taken roots in the Japanese manufacturing industry.

  21. Why use QFD? Once a team has identified the customers' wants, QFD is used for two fundamental reasons: • To improve the communication of customer wants throughout the organization. • To improve the completeness of specifications and to make them traceable directly to customer wants and needs.

  22. QFD means • QFD links the needs of the customer (end user) with design, development, engineering, manufacturing, and service functions. • QFD empowers organizations to exceed normal expectations and provide a level of unanticipated excitement that generates value.

  23. What is QFD? • Quality Function Deployment (QFD) is a systematic process for motivating a business to focus on its customers. • It is used by cross-functional teams to identify and resolve issues involve in providing products, processes, services and strategies which will more than satisfy their customers.

  24. What is QFD? • Understanding Customer Requirements • Quality Systems Thinking + Psychology + Knowledge • Maximizing Positive Quality That Adds Value • Comprehensive Quality System for Customer Satisfaction • Strategy to Stay Ahead of The Game

  25. A team identified the following customer groups: • Users who are mainly concerned with functionality. • Management who is mainly concerned with financial and strategic issues. • Distribution and Purchasing Agents who are concerned with purchase transaction and availability issues. • Internal workers who are concerned with how the product will affect the quality of their work life.

  26. How do we capture our Customers' Requirements? • One on one customer interviews • Focus groups • In-context customer visits

  27. VOICE OF CUSTOMERPrioritizing Requirements What should we use to prioritize Requirements? • Importance to the Customer • Our Current Product • Competitor One • Competitor Two • Our Future Product • Improvement Factor • Overall Importance • Percent Importance

  28. How does QFD differ from other quality initiatives? • QFD is quite different in that it seeks out both "spoken" and "unspoken" customer requirements and maximizes "positive" quality (such as ease of use, fun, luxury) that creates value.

  29. What are the characteristics of QFD as a quality system? • QFD is a quality system that implements elements of Systems Thinking and Psychology of customer needs, what, and how end users become interested. • QFD is a quality method of good Knowledge. • QFD is a quality system for strategic competitiveness. • Quality Function Deployment (QFD) is the only comprehensive quality system that satisfy the customer throughout the development and business process -- end to end.

  30. What are the tools of QFD?7 Management and Planning Tools • Which industry and business are using QFD? • QFD has been applied in virtually every industry and business, from aerospace, manufacturing, software, communication, IT, chemical and pharmaceutical, transportation, defense, government, R&D, food to service industry. • Why is a conventional design process not sufficient? • Conventional design processes focus more on engineering capabilities and less on customerneeds

  31. What are "expected quality" and "exciting quality?" • "Expected" quality or requirements are essentially basic functions or features that customers normally expect of a product or service. • "Exciting" quality or requirements are sort of "out of ordinary" functions or features of a product or service that cause "wow" reactions in customers.

  32. What is the House of Quality?  Why it isn't a QFD? • The House of Quality is an assembly of several deployment hierarchies and tables, including the Demanded Quality Hierarchy, Quality Characteristics Hierarchy, the relationships matrix, the Quality Planning Table, and Design Planning Table. It is a table that connects dots between the Voice of the Customer and the Voice of the Engine

  33. BENEFITS OF QFD • Improves Customer Satisfaction • Reduces Development Time • Improves Team Work • Reduces Cost • Quick New Product Release • Documentation • Critical Quality Features • Right Technology

  34. Genichi Taguchi TAGUCHI’S QUALITY LOSSFUNCTION

  35. INTRODUCTION • Taguchi Methods is a statistical methods developed largely by GENICHI TAGUCHI to improve quality of manufactured goods. • The philosophy of off-line quality control. • Innovations in the design of experiments.

  36. Taguchi Loss Function Definition • Taguchi defines Quality as “the loss imparted by the product to society from the time the product is shipped.” • LOSS = Cost to operate, Failure to function, maintenance and repair cost, customer satisfaction, poor design. • Product to be produced “being within specification”

  37. Taguchi’s Vs Traditional Approach

  38. Taguchi’s Quadratic Quality Loss Function • Quality Loss Occurs when a product’s deviates from target or nominal value. • Deviation Grows, then Loss increases. • Taguchi’s U-shaped loss Function Curve.

  39. Taguchi’s U-shaped loss Function Curve. Taguchi loss Fn Scrap or Rework Cost. Loss Measured characteristic LTL Nominal UTL

  40. Formula to find Taguchi’s Loss FnTaguchi uses Quadratic Equation to determine loss Curve • L (x) = k (x-N)² Where L (x) = Loss Function, k = C/d² = Constant of proportionality, where C – Loss associated with sp limit d - Deviation of specification from target value x = Quality Features of selected product, N = Nominal Value of the product and (x-N) = Tolerance

  41. Problem • A part dimension on a power tool is specified as 32.25±0.25.Company records show±0.25 exceeded & 75% of the returned fo replacement. Cost of replacement is Rs.12,500.Determine k & QLF. Solution : Expected Cost of repair C = 0.75(12500) = Rs 9,375 k = C/d²= 9375/(90.25)² = Rs 1,50,000 QLF =L (x) 1,50,00(x-N)

  42. TOTAL PRODUCTIVE MAINTENANCE

  43. Definition • Maintenance is defined as the management, control, execution and quality assurance of activities which ensure the achievement of optimum availability and performance of a plant in order to meet business objectives.

  44. TPM - Meaning TPM is a partnership between the maintenance and production organization to improve product quality, reduce waste, reduce cost, increase equipment availability and improve maintenance state.

  45. EVOLUTION OF MAINTENANCE 1940 1950 1960 1970 1980 1990 2000

  46. TYPES OF MAINTENANCE • Corrective (or) breakdown maintenance It implies that repairs are made after failure of machine or equipment • Scheduled (or) Routine maintenance It is a stitch-in-time procedure aimed to avoiding breakdowns

  47. TYPES OF MAINTENANCE • Preventive maintenance It is carried out before the failure arises (or) prior to the equipment actually breakdowns. E.g. Overhauling & Periodic upkeep. • Predictive maintenance Equipment Condition evaluated periodically and maintenance carried out.

  48. OBJECTIVES OF TPM • Improve Equipment Effectiveness • Achieve Autonomous • Plan Maintenance • To Train all staff in maintenance skills • To Zero Breakdowns

  49. Cost Trade-off Between PM & CM 1000 C o s t i n R u p e e s 650 Total cost of maintenance Maintenance Activity Costs (PM) 500 Breakdown Penalty costs (CM) 50 0 LOW MEDIUM MAINTENANCE HIGH

  50. BIG LOSSES

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