1 intro cut ion to quality & productivity

8/3/2019 1 Intro Cut Ion to Quality & Productivity

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Introduction to Quality &Productivity

Lean 5S Practitioner CourseJapanese Hose keeping Best Practices

Presented by:Muhammad Kashif AfzalNational Productivity OrganizationMinistry of Industries & Production

Government of Pakistan


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Lean 5S Practitioner

Muhammad Kashif Afzal


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Trainers Introduction

Muhammad Kashif AfzalI'm your Coach


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Participants Introductions

Your name and the department yourepresent.

Your job background.

Your expectations what you will learntoday.

Your favorite activity when not at work

or

Your favorite vacation.


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False(Say yes, mean no)

DONT PARTICPATE

Dominate(Say in my experience

there can only bemy view etc

ONLY PARTICIPATEIF ITS ME

Facts(Say the facts I

share with you are . . .

SOME PARTICIPATING

Agreement(We agree on the

shared facts)

EVERYONEPARTICIPATING

40%

45%

5%

10%

Participation Meter


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The Power of Intersection

based on AGREED facts

Your View

My View

AgreedFacts


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Workshop Ground rules Start on time. (Time Keeper- Volunteer)

Only one conversation.

Listen for understanding.

Be open to new ideas.

AskWhy?

Dont repeat points already made.

Everyone participates.

No rank and no ego

Remember thered key words

Switch off Your mobile phone.

Have fun!


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Quality Problems in

Pakistan

Time lost due toequipment failures

Billing errors

Contract errors

Change workinstruction due toerror in design.

Misspelled writtenmaterial

Wrong data entryand calculation

Missing Files Stock shortages Hotel guest taken to

unmade rooms

Reservations nothonored Purchase order

changes due to error

Rejections due toincompletedescription


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Quality Problems (Cont..)

Checking things because oflack of trust

Rectifying and reworking

Apologizing to customers Scrap, returns

Warranty claims service

Late Reports. Procrastination


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Identifying Parameters to be

benchmarked Productivity

Output/labor hour oremployee

Output/square foot of officespace

Output/information cost

Quality % rework % right the first time Customer complaints % repeat contracts

% incomplete delivery % computer downtime % documentation accuracy % schedule slippage

Timeliness

% on-time to customer % on-time from supplier Cycle time of main service Order processing time Queue time

Others Employee turnover Absenteeism Computer utilization % overtime Market share

New service developed peryear

SERVICE


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Identifying Parameters to beBenchmarked

Productivity- Output/labor hour or employees Output/raw materials Output/energy use Output/packaging costs Output/process water use Output/maintenance hour or cost Output/work-in-process inventory

Quality % scrap of raw materials % rework % first pass yield Customer return rate % miss delivery

% incomplete delivery % WIP due to quality failure % scrap of packaging Unplanned equipment downtime % quality related receivable overdue

Timeliness % on-time to truck- % on-time from supplier Cycle time of main product (order to

delivery) Cycle time of main product (plant start to

truck)

Others Number of reportable accidents Employee turnover Absenteeism Process equipment utilization Computer utilization Vehicle utilization % overtime

Manufactur

ing


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It is not the big thatis eating the small,

it is the fast that is

eating the slow


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Reduce Cost

Cheaper

Customer Price

Net Margin

Production Costs

Faster

Reduce Lead TimeImprove Quality

Better

The future challenges

We need to be able to do three things well, all at the same time!


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Quality ImprovementChallenge for Public & Private Sector Organizations


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Discuss what you think the definition

of Quality is. Give as many examples

as you can


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The Five Erroneous Assumptionsin Quality

Quality means goodness,

elegance

Quality is intangible, not

measurable

The economics of quality

are prohibitive or high priced,

not relevant

Quality problems originatewith the workers

Quality is the responsibility

of the quality department

Quality is conformance torequirements

Quality is measured by the

cost of nonconformance

It is cheaper to do things

right the first time

Most problems start in

planning and development

Quality is shared by every

function and department


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Right First

Time, All thetime. Zero

Defect

Meetimplied/Market

Needs

Conformance tospecification

Build RightCharacteristics

ISO -Language of Quality System

QUALITY

- Degree to which a set of inherent characteristics fulfills

Requirements (9000:3.1.1)

FURNISHED

SUPPORT


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Conforming to specifications. (Phil Crosby)

We need never ending improvement toestablish better economy. (W. Edward Deming)

Quality is everybodys job. (A.V. Feignbaum)

Quality is never an accident, it is always theresult of an intelligent effort. (John Ruskin)

Common Definitions


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11 DIMENSIONS OF QUALITY

Conformance to Specification

Performance

Quick response

Features

Reliability

Durability

Serviceability

Aesthetics

Perceived quality

Humanity

Cost Competitiveness


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What Customers buy/ expects?

Customers do not buy goods and services;they want solutions of problems, and

fulfillment of their needs & wants.

F t St t Q lit


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Fourteen Steps to Quality

Improvement1. Management commitment with an emphasis on defect

prevention and visibility

2. Quality improvement teams composed on members of each

department or functionall the necessary tools

3. Quality measurement to monitor the status and improvement

of activities

4. Cost of quality evaluation with accurate figures

5. Quality awareness by communicating the cost of quality,

encouraging discussion

6. Corrective action to ingrain a habit of identifying problems

and correcting them

7. An ad hoc committee to advocate zero defects

F t St t Q lit


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Fourteen Steps to Quality

Improvement8. Supervisor training so that all managers understand the

programs and can explain it

9. Zero Defects Day to establish zero defects as the

organizational standard

10. Goal setting as teams, specific and measurable

11. Removing thecauses of defects, as described by

individual workers, so that the people know their problems

are heard and answered

12. Genuine recognition for achievement

13. Quality councils of quality professionals and team chairs

for status information and ideas

14. Do it over againrepetition makes the program perpetual


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Greater customer satisfaction

Higher productivity

Lower costs / shorter duration

Higher project team morale Fewer errors / defects

Long term competitive advantage

Why Quality ?


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Discuss what you think the

definition of Productivity is. Give as

many examples as you can


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THE JOURNEY OF PRODUCTIVITY

Initially productivity was interpretedas labor productivity

Over a period materials, energy,capital and other inputs were

brought into the ambit ofproductivity.

waste reduction of all kinds andimproving efficiency of operations

more and more with

less and less

RESOURCE UTILIZATION


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VARIOUS INTERPRETATIONS

As an attitude of mind

As a process of change

Improving quality of life

Working smarter than harder

Higher wages Productivity and quality are two sides

of the same coin


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As concept of mind As a march for perfection

As creating wealth

As a journey without an end and a destination Reducing wastes

Human resources

Technology improvement


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Organizational objectives Set of results

Effective and efficient use of resources

Highest level of performance Training and development of employees

Sharing gains of productivity

Profits

Customer satisfaction

Sustainable development


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Lead Time ReductionChallenges for Public & Private Sector Organizations


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Time is Money


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To document all steps in a processTo quantify the time and distance of each step in a

process

To identify where value is being added to the

process

To understand how non-value added activities

drive cost in a process

To learn that reducing Lead Time contributesdirectly to improving P, Q,C,D,S,M and

Customer Satisfaction

Purpose of Lead Time Analysis


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What is "Lead Time"?

Lead timebegins with the firstreceipt ofacustomer

orderand ends withcustomer receipt ofthe product or

service. Everything in between is the lead time.

The"customer" can be external or internalto an

organization. The next person or process down the

assembly line is the "customer" for the preceding

process.


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Lead Time Definition

Total time require to complete one unitof a product or service

JIT A Strateg Based on Lead


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JIT - A Strategy Based on Lead

Time

Lead Time

Adding Value

Opportunity

A strategic focus to economicallymakedrastic reductions in lead times to better servethe customer.

JIT - A Toolset For Eliminating


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JIT A Toolset For EliminatingWaste

JIT Tools used

to identify andeliminatewaste from theprocess. $$

$ $

$$

$ $$

Same Value-Add

Reduced lead time

Reduced costs

Result: Shorterlead times,reduced costs.


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Every Process has a Lead Time

Business plan development

Painting Process

Tools & Die Manufacturing

Building a house

Income tax refund

Servicing your car

Receiving material and building customerproducts

Grocery shopping


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Cost ReductionChallenges for Public & Private

Sector Organizations

Traditional Principle of Cost


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Traditional Principle of Cost

Cost + Profit = Price

Cost to Make/

serve

Profit

If we want tomake more profit

we increase price

Price to Customer

Rs.

Today s Principle of Cost


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Todays Principle of Cost

Reduction

Price to Customer

Price - Cost = Profit

Cost to Make/Serve

Profit If we want tomake more profit

we reduce wastein our process

Marketplace Pressure

RS.

Th C t Of P Q lit


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Customer Returns

Inspection Costs

Recalls

Waste

Rejects

Rework

Testing Costs

Customer Allowances

Incorrectly Completed Sales Order

Excess Inventory

Incorrect orders shipped

Time with Dissatisfied Customer

Late Paperwork

Expediting Costs

Planning Delays

Excessive Overtime

Premium Freight Costs

Excessive Field Service Costs

Pricing or Billing Errors

Complaint Handling

Overdue Receivables

Employee Turnover

Development Cost of Failed Products

Unused Capacity

Lost goodwill

Delays

The Cost Of Poor Quality(As a % of Revenue)

C t St t


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Cost StructureSalesmens salary

Traveling

Correspondence

Transportation

Packing

Advertisement

Other sales cost

Directors salary

Clerks salaryWelfare cost

Interest/Rent

Govt. Taxes

R&D

Other admin cost

Sales

Admin

Depreciation

Transportation

Insurance

Maintenance

Utilities

Fuel

Others

Ind. material

Ind. labor cost

Ind. expenseTotalcost

Profit

Mfg.cost

SalesAdmin

Directmfg.

cost

Ind. mfg. c

Material

Labor cost

Expense

Sales

P d f C t R d ti


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Procedure of Cost Reduction1

2

3

4

5

6

7

Selection of cost reduction target

Analysis of existing situation

Problem finding

Setting cost reduction target

Idea creation

Trial operation/Verification

Suggestion

Adoption Execution

ABC AnalysisP-Q Analysis

Productivity Audit3 Gen Approach

3MuAs-Is Analysis

Related to companys policy

Brainstorming5W1H

Finding points to be more studied

To the division in chargeTo the supplierTo the buyer

Deciding after confirming noproblem foreseen


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PRODUCTIVITY,

ABOVE ALL

IS ABOUT

THINKING & MAKING

CHANGES


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BETTER

ORGANIZATIONS

DO NOT GET

BETTER

BY CHANCE


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QUALITY AND PRODUCTIVITY

is no longer a desirable option

Quality

Lead Time Reduction

Cost Reduction

It is the key to SURVIVAL


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Even if you are on the right track,

you will get run over

- ifyou just sitthere.

Sequence of Change


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When you change yourEXPERIENCE

You change your THNKING When you change yourTHINKING

You change yourBELIEFS

When you change yourBELIEFS

You change your EXPECTATIONS

When you change yourEXPECTATIONS

You change yourATTITUDE

When you change yourATTITUDE

You change yourBEHAVIOUR

When you change yourBEHAVIOURYou change yourPERFORMANCE

When you change yourPERFORMANCE

You change yourLIFE !

Sequence of Change


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L 5S P i i

Questions

1 intro cut ion to quality & productivity

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