Prepared by: Bhakti Joshi. Date: January . 01, 2015. Case Study: Su-Kam. Problem Statement. Power outages and fluctuations. Bad quality power backup appliances. Fragmented industry . Industry Characteristics. ID: 420131
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Total Quality Management
Prepared by: Bhakti Joshi
Date: January
01, 2015
Slide2Case 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
Slide3Case 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
Slide4Case 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
Slide5Case 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
Slide6TQM: 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
Slide7Focus 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
Slide8Six 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
Slide9TQM and Six Sigma - Similarities
Quality improvement systems
Attempt to reduce variations or poor service
Improve customer satisfaction
Slide10TQM 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
Slide11Taguchi 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
Slide12Characteristics 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
Slide13Formulae
L
(
y
) =
k
(
y
-
m
)
2
L(y
) = Loss
k
= constant =
cost to correct
tolerance
2
y
= reported value
m
= mean value (average)
Slide14Calculation
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
Slide15Concept 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.
Slide16Quality 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
Slide17Criticism
Discuss in Class
Slide18Email:
bhaktij@gmail.com
Website:
www.headscratchingnotes.net
Slide19Slide20Slide21Slide22
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