Total Quality Management
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Total Quality Management

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Total Quality Management




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Presentation on theme: "Total Quality Management"— Presentation transcript:

Slide1

Total Quality Management

Prepared by: Bhakti Joshi

Date: January

01, 2015

Slide2

Case Study: Su-Kam

Problem Statement

Power outages and fluctuations

Bad quality power backup appliancesFragmented industry

Industry Characteristics

Comprised of small local players

Presence of large players in electrical and consumer durables but not “Power Backup” industry

Opportunity

Nascent industry with

unorganised

players

No

standardisations

and regulations

Su-

kam

initiated innovation & creativity

Slide3

Case Study: Su-Kam (Contd…)

Product Design

Visually appealing, light-weighed and shockproof inverters

Power backup duration grows from 10 -1 5 minutes to 2- 3 hoursSwitchover time reduced from 50 – 100 milliseconds to 0 – 5 millisecondsA 250 VA invertor that can run 1 tube light, a fan or 2 CFLsPortable devices for shop-owners and tradersInvertor costs about Rs 2000 and Rs 4000 with battery

Team Setup

UPS industry

Cable TV industry and other digital product industry

Missile industry

Slide4

Case Study: Su-Kam (Contd…)

Technology

Introduced MOSFET (Metal Oxide Semiconductor Field-Effect Transistor), a device used to amplify or switch electronic signals that reduced the size of inverter

Sine wave technology that introduced noise-free inverters

Plastic body inverters with help of GE plastics

Home UPS (Inverter plus UPS)

PowerDoc

monitoring system that helps in remote monitoring all the larger KVA products

Recall Software a remote system through which Su-

Kam

servicing or maintenance can done without opening the inverter

Slide5

Case Study: Su-Kam (Contd…)

Distribution

Local manufacturers were converted into distributors

Battery dealers were converted into dealers of Su-

kam

products

Marketing through banners on

dhaabas

and tea shops across highways. Put names of

dhaabas

on banners along with Su-

kam’s

name

Advertisement in classified columns and gradually moved to colour and electronic media

Slide6

TQM: Focus on Root Causes

CUSTOMER FOCUS

Identify and meet customer needs

CONTINUOUS IMPROVEMENT

Philosophy of never-ending improvement

Employee Empowerment

Employees are expected to seek out, identify and correct quality problems

USE OF QUALITY TOOLS

Ongoing

training in the use of quality tools

Slide7

Focus on Root Causes

PRODUCT DESIGN

Products need to be designed to meet customer expectations

PROCESS MANAGEMENT

Quality should be built in the process; sources of quality problems should be identified and corrected

MANAGING SUPPLIER QUALITY

Quality concepts must extend to a company’s suppliers

Slide8

Six Sigma

…is a process in which 99.99966% of products manufactured are statistically expected to be free of defects (3.4 defective parts per million)

DMAIC

DMADV

DefineMeasure, Analyse, Improve, Control

Define Measure, Analyse, Design, Verify

(Should be used when product is in existence but not performing adequately or as per customer specification)

(Should be used when product is not in existence and existing product needs to be optimized/improved)

Data Intensive; No place for intuition

Ways to help meet business’ bottom-lines

Implemented with support of champion/process owner

Slide9

TQM and Six Sigma - Similarities

Quality improvement systems

Attempt to reduce variations or poor service

Improve customer satisfaction

Slide10

TQM and Six Sigma - Differences

TQM

Associated with the development, deployment, and maintenance of organizational systems across various business processesStrategic approach to maintain existing quality standards and making incremental quality improvements. Views quality as conformance to internal requirementsFocus on improving individual operations within unrelated business processesInitiatives are usually a part-time activity that can be managed by non-dedicated managers.Work without fully knowing what the financial gains might be

Six Sigma

A

process improvement program as it is based on concepts that focus on continuous quality

improvements

 

U

ses

statistical methods

(SPC) for

monitoring and controlling business

processes

F

ocuses

on improving quality by reducing the number of

defects

Focus

on improving all the operations within a single business

process

Require

the skills of professionals that are certified as ‘black belts

B

ased

on a preplanned project charter that outlines the scale of a project, financial targets, anticipated benefits and milestones

Slide11

Taguchi Methods: Example

Company C received an average of 10 complaints per month last year. In November they received 15 complaints (y). Management sets an acceptable level at 2 (tolerance).

It costs the company Rs.500 directly per complaint to correct the problems. They determined the cost in lost sales to be Rs. 1000.

Total cost per complaint: Rs. 1500

Slide12

Characteristics of the Company

Customer satisfaction

Quality loss as loss to society quantified through “Quality Loss Function”

Variations from optimal measure results in a loss

Product Design

Equipment: No breakdowns

Specific jobs defined

Policies and Procedures – know-how

Slide13

Formulae

L

(

y

) =

k

(

y

-

m

)

2

L(y

) = Loss

k

= constant =

cost to correct

tolerance

2

y

= reported value

m

= mean value (average)

Slide14

Calculation

k

= Rs1500/2

2 =

Rs375.0

L(y) =

375.0 (15-10)

2

= 375.0 (5)

2

= 375.0 (25)

= Rs. 9375.0 is loss for the month of November

Slide15

Concept of Quality Loss

Use of statistical analysis for quantification

Used as a quality control tool to quantify quality during experiments and trial-errors especially in R&D

Aims to reduce product variability with a system for developing specifications and designing them into a product or process.

Slide16

Quality Control

A process through which a business seeks to ensure that product quality is maintained or improved and manufacturing errors are reduced or eliminated. Quality control requires the business to create an environment in which both management and employees strive for perfection. This is done by training personnel, creating benchmarks for product quality, and testing products to check for statistically significant variations.

Read more: 

http://www.investopedia.com/terms/q/quality-control.asp#ixzz1hzLDJ9TD

Slide17

Criticism

Discuss in Class

Slide18

Email:

bhaktij@gmail.com

Website:

www.headscratchingnotes.net

Slide19

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