Total Quality

Management: Key

Concepts and Gase

Studies

D.R. Kiran

BSP BS Publications 2____ A Unit of BSP Book» Pvt. Ltd., India.

AMSTERDAM • BOSTON • HEIDELBERG • LONDON NEW YORK • OXFORD • PARIS • SAN DIEGO

SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO ELSEVIER Butterworth-Heinemann is an imprint of Elsevier

Contents

About the Author xxv Foreword xxvii Preface xxix Acknowledgments xxxi About the Book xxxiii

1. Total Quality Management: An Overview 1 1.1 What Is Quality? 1 1.2 Quality Definitions 2 1.3 Quotes on Quality 4 1.4 The Scale of Quality 5 1.5 The Paradigm of TQM 6 1.6 How can Effective TQM Change the Situation? 7 1.7 Quality of Design Versus Quality of Conformance 7 1.8 Changing Criteria of Quality 8 1.9 The Five Approaches to Quality 8

1.10 PDCA Cycle 9 1.11 When to Use the PDCA Cycle 11 1.12 Variations of PDCA Terminology 11 1.13 Deming's Fourteen Points to Improve Quality 11 1.14 Deming System of Profound Knowledge 12 1.15 Juran Quality Trilogy 13 1.16 Conclusion 14 Further Reading 14

2. Evolution of Total Quality Management 15 2.1 Introduction 15 2.2 The Historical Development of TQM 15

2.2.1 Operative Quality Control 16 2.2.2 Foreman Quality Control 16 2.2.3 Inspection Quality Control 16 2.2.4 Statistical Quality Control 17 2.2.5 Total Quality Control 18

2.3 Quality Management in the Japanese Scenario 18 2.4 Post-Deming/Juran Quality Scenario 19 2.5 Conclusion 19 Further Reading 20

v

vi Contents

3. Quality Gurus 21 3.1 Wilfredo Pareto 21 3.2 Walter A. Shewhart 22 3.3 Edwards Deming 23 3.4 Joseph Juran 24 3.5 Armand Feigenbaum 25 3.6 Prasanta Chandra Mahalanobis 26 3.7 Shigeo Shingo 26 3.8 Taichi Ohno 27 3.9 Kaoru Ishikawa 27

3.10 Genichi Taguchi 28 3.11 Phillip B. Crosby 29 3.12 Yoshio Kondo 31 3.13 Shigeru Mizuno 31 3.14 YojiAkao 32 3.15 Noriaki Kano 32 3.16 Masaaki Imai 33 3.17 Claus Möller 33 3.18 Blanton Godfrey 33 3.19 Clarence Irwing Lewis 34 3.20 David Garvin 34 3.21 Dorian Shainin 34 3.22 Edward de Bono 35 3.23 Eliyahu M. Goldratt 35 3.24 Eugene L. Grant 36 3.25 Bill Conway 36 3.26 Yasutoshi Washio 36 Further Reading 37

4. Leadership and TQM 39 4.1 What is Leadership? 39 4.2 Definitions for Leadership 40 4.3 Theories of Leadership 41 4.4 Leadership Categories 41 4.5 Leadership and Goal Setting 42 4.6 Characteristics of Quality Leaders 44 4.7 Warren Bennis Principles ofGreat Teams 45 4.8 The Seven Habits of Highly Effective Leaders 45 4.9 The Ten Commandments of cGMPs (Current Good

Manufacturing Practices) 46 4.10 Fifty Insights for CEOs 46 4.11 Fifteen Thoughts of Chanakya 49 4.12 Wilkie's Leadership Qualities 50 4.13 Leadership Responsibilities 50 4.14 Moral Leadership 51 4.15 Contributors for Moral Leadership 51 4.16 Role of Top Management in Quality Management 52

Contents vii

4.17 Leadership and Knowledge of Psychology 52 4.18 Case Studies on Leadership Qualities 53 4.19 Some Quotations on Leadership 53 4.20 Conclusion 54 Further Reading 55

5. Scientific Management 57 5.1 TQM and Scientific Management 57 5.2 The Industrial Revolution 57 5.3 Evolution of Management Thinking 58 5.4 Phases of Crowth of Management Thinking 58 5.5 Early Pioneers in Management Thinking-Pre-19th Century 58 5.6 Concepts of Scientific Management 59 5.7 Specific Aims of Scientific Management 60 5.8 Advantages of Scientific Management 60 5.9 Misconceptions of Scientific Management 61

5.10 Resistance to Scientific Management 62 5.11 Conclusion 62 Further Reading 62

6. System Approach to Management Theory 63 6.1 Development of System Approach 64 6.2 What is a System? 64 6.3 Definition of a System 64 6.4 Types of Systems 65 6.5 Components of a System 67

6.5.1 Input 68 6.5.2 Conversion Process 68 6.5.3 Output 68

6.6 Elements of Control in System Approach 68 6.7 Effect of Environment on the Systems 69 6.8 Open and Closed Systems 69 6.9 Systems and Subsystems 69

6.10 Relationship Between the Systems and Subsystems 70 6.11 Com bination of Subsystems 71 6.12 The Management Cube 71 6.13 Flanning Pyramid 73 6.14 Summary of the Features of Management as a System 73 6.15 Decision Theory 75 6.16 Problem Analysis and Decision-Making 75

6.16.1 Problem Analysis 76 6.16.2 Decision-Making 76

6.17 Characteristics of Decision-Making 76 6.18 Situations Under Which Decisions are Taken 77

6.18.1 Decision-Making Under Certainty 77 6.18.2 Decision-Making Under Uncertainty 77

viii Contents

6.18.3 Decision-Making Under Risk 77 6.18.4 Decision-Making Under Conflicts 77

6.19 Classifications of Decisions 77 6.19.1 Organizational and Personal Decisions 77 6.19.2 Routine and Strategie Decisions 78 6.19.3 Pol icy and Operative Decisions 78 6.19.4 Programmed and Nonprogrammed Decisions 78 6.19.5 Individual and Group Decisions 78

6.20 Different Approaches to Decision-Making 79 6.20.1 Intuitive Decision-Making 79 6.20.2 Trial and Error Decision-Making 79 6.20.3 Follow-the-Leader Decision-Making 79 6.20.4 Scientific Decision-Making 79 6.20.5 Systematic Decision-Making 80

6.21 Bias in Decision-Making 80 6.22 Decision Tree 81 6.23 Systematic Decision-Making 82 6.24 Proper Management Decision and Proper

Engineering Design 82 6.25 Conclusion 83 Further Reading 83

7. Strategie Flanning 85 7.1 Introduction 85 7.2 Business Plans 85 7.3 Strategie Flanning 86 7.4 Methodologies for Strategie Flanning 87 7.5 Situational Analysis 87 7.6 Hoshin Kanri 88

7.6.1 Nichijo Kanri 88 7.7 Definitions of Strategie Flanning 89 7.8 Strategie Flanning Elements 90 7.9 Besterfield's Seven Steps of Strategie Flanning 91

7.10 Strategy Development and Strategy Deployment 91 7.11 Effectiveness of the Strategie Flanning 91 7.12 The Four Perspectives for Translating Strategy

into Operating Process 92 7.13 Quality Flanning 93

7.13.1 8 Ms of Resource Inputs 93 7.14 Contingency Theory 94 7.15 Organizing for Strategie Flanning 94 7.16 Leavitt's Diamond 94 7.17 Mission and Vision Statements 95 7.18 Caution in the Application of Strategie Flanning 97 7.19 Conclusion 97 Further Reading 98

Contents ix

8. Cost of Quality 99 8.1 Introduction 99 8.2 Forces Leading to the Concept 100 8.3 The Categories of Quality Costs 100 8.4 Hidden Quality Costs 103 8.5 Cost of Lost Opportunities 103 8.6 Service Costs 103 8.7 Tangible and Intangible Costs 103 8.8 Visible Costs and Invisible Costs 104 8.9 Quality Cost Data 104

8.10 Case Studies on Research Done in the Area of Quality Costing 105 8.11 Suggested Model for Quality Costing 106 8.12 Sources for Collecting Quality Cost Data 106 8.13 Uses of Quality Cost Analysis 106 8.14 Pareto Principle 107 8.15 Quality Conformance Level 108 8.16 Top Management Role in Containing Quality Costs 108 8.17 Quality and Safety 109 8.18 Responsibility of Top Management for Product Safety 109 8.19 Case Study on Quality Cost 110 8.20 Conclusion 111 Further Reading 111

9. Organization for TQM 113 9.1 Why Organization? 113 9.2 What Needs to Be Organized in the Quality Function? 114 9.3 Principles of Organization 114 9.4 Classes of Organizational Structures 116 9.5 Organization for the Quality Function 117 9.6 Centralized Organization 119 9.7 Decentralized Organization 120 9.8 Matrix Type of Organization 121 9.9 Factors to Be Considered in Deciding the Manpower

Requirement 122 9.10 Size and Type of an Organization 122 9.11 Conclusion 123 Further Reading 123

10. Customer Satisfaction 125 10.1 Seilers'Market Versus Buyers'Market 125 10.2 Customer is King 126 10.3 Position of the Customer in an Organization 126 10.4 Customer's Perception of Quality 127 10.5 Types of Customers 128 10.6 Internal Customers 129 10.7 Customer Satisfaction 130

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10.8 Customer Delight 131 10.9 Kano Model of Customer Satisfaction 131

10.10 American Customer Satisfaction Index 132 10.11 Customer Retention 133

10.11.1 Tips for Customer Retention 133 10.11.2 Profitability Associated With Customer Retention 134

10.12 Customer Loyalty 134 10.13 Factors for Establishing Loyal Customers 135 10.14 Customer Attrition 135 10.15 How Companies Lose Their Customers 136 10.16 Customer Surveys 136 10.17 Customer and Quality Service 137 10.18 The Key Elements of Service Quality 137 10.19 Customer Retention Versus Employee Morale 138 10.20 Action to be Taken to Handle Customer Complaints 138 10.21 Healthy Practices by Customer Focused Organization 139 10.22 Customer Code of Ethics to be Followed 139 10.23 Recently Held International Quality Symposia 140 10.24 Conclusion 140 Further Reading 140

11. Total Employee Involvement 143 11.1 What is Total Employee Involvement? 144 11.2 Motivation 144

11.2.1 Theory X and Theory Y 144 11.2.2 Theory Z 145 11.2.3 Maslow's Theory of the Hierarchy of Basic Needs 145 11.2.4 Herzberg's Two Factor Theory 146 11.2.5 Achieving a Motivated Workforce 146

11.3 Employee Involvement Strategies 147 11.4 Teamwork 148

11.4.1 The Three Elements of Teamwork 148 11.4.2 Categories of Teams Based on Natural Work Units 149 11.4.3 The Basic Functions of the Team 150 11.4.4 Characteristics ofSuccessfuI Teams 150 11.4.5 Some Nicknames for the Nonconducive Team

Members 151 11.5 Empowerment 152

11.5.1 Types of Supervisors as per Harvard Business School Study 152

11.6 Participative Management 152 11.6.1 Resistance to Change 152 11.6.2 Types of Changes That Usually Meet Resistance 153 11.6.3 Reasons for Resistance 154 11.6.4 Some Criticisms Encountered by Industrial

Engineers From Higher-Ups 154

Contents xi

11.7 Effect of Worker Representation on Productivity 154 11.8 How to SuccessfuIIy Implement a Change 155 11.9 Theodore Kinni's Eight Tips for Achieving Motivated

Workforce 156 11.10 Benefits of Employee Involvement 156 11.11 Role of Senior Management in Employee Involvement 157 11.12 Recognition and Rewards 158 11.13 Forms of Recognition and Rewards 158 11.14 Criteria for Effective Recognition of Employees 159 11.15 Advantages of Effective Rewarding Systems 159 11.16 Conclusion 159 APPENDIX A Case Study on Worker Involvement 160 Further Reading 161

12. Supplier Partnership 163 12.1 Introduction 163 12.2 Traditional Versus TQM Oriented Vendor Relations 164 12.3 Partnership Definition 164 12.4 Strategie Partnership 165 12.5 Principles of Customer/Supplier Relations 166 12.6 The Three Primary and Necessary Requirements for

Partnering 167 12.7 Multiple Supplier Partnership 167 12.8 Advantages of Supplier Partnership 168 12.9 Supplier Selection 168

12.10 Vendor Rating 169 12.11 Criteria for Evaluation 169 12.12 The Partnership Indices 171 12.13 Supplier Certification 172 12.14 Benefits of Supplier Rating 172 12.15 Lean Inspection Through Supplier Partnership 173 12.16 Vendor Managed Inventory 173 12.17 Retailer Supplier Partnership 173 12.18 Impact of Supplier Partnership on Inventory Norms 174 12.19 Conclusion 174 Further Reading 175

13. Total Productive Maintenance 177 13.1 Introduction 177 13.2 The Meaning of TPM 178 13.3 Evolution of TPM 178 13.4 Definitions of TPM 179 13.5 TPM is an Extension of TQM 179 13.6 TPM Starts With Cleaning 180 13.7 The Seven Types of Abnormalities 181

Contents

13.8 The Eight Pillars ofTPM 182 13.9 The Five Zeros of TPM 183

13.10 Why Operatives Fail to Adapt TPM as a Way of Life? 183 13.11 What Can TPM Achieve? 184 13.12 Overall Equipment Effectiveness (OEE) 184 13.13 The Six Losses From Poor OEE 185 13.14 TheThree Levels of Autonomous Maintenance in TPM 185 13.15 The Five Goals ofTPM 185 13.16 Procedure for the Implementation ofTPM 187 13.17 Maintenance Work Sampling 188 13.18 Conclusion 188 Appendix 189 Checklist for JIPE's Productive Maintenance Excellence Award 189 Further Reading 192

Quality Awards 193 14.1 Why Quality Awards? 193 14.2 International Quality Awards 194 14.3 International Quality Award Trio 196 14.4 Deming Application Prize 196

14.4.1 Qualifications and Criteria Specified byJUSE for the Deming Prize 196

14.4.2 Check List for Deming Application Prize 197 14.5 Malcolm Baldrige National Quality Award 199

14.5.1 Criteria for the Performance Excellence Framework 199 14.5.2 Organizations/Individuals Involved in the

Awarding Process 201 14.6 European Quality Prizes 202

14.6.1 Categories of the Award 202 14.7 Australian Business Excellence Award 203 14.8 Canadian Award for Business Excellence (CABE) 203 14.9 Rajiv Gandhi National Quality Award 204

14.9.1 Assessment Criteria 204 14.9.2 Eligibility of Organizations for This Award 205

14.10 Golden Peacock National Quality Award 205 14.11 IMC-Ramakrishna Bajaj National Quality Award (lMCRBNQA) 205 14.12 China Quality Award 206 14.13 National Quality/Business Excellence Awards in Different

Countries 206 14.14 Basic Differences Among the Award Trio 206 14.15 Conclusion 207 Appendix 14.1 Recipients of Deming Application Prizes From 1998 207 Appendix 14.2 Some International Awards Including

Quality Awards 208 Appendix 14.3 Recipients of Rajiv Gandhi National Quality Award 210 Appendix 14.4 Recipients of NIQR Awards in 2014 210 Appendix 14.5 Recipients of Golden Peacock Awards 211 Further Reading 212

Contents xiii

15. Quality Circles 213 15.1 What is a Quality Circle? 213 15.2 Origin of Quality Circles 213 15.3 The American Scenario 214 15.4 The Indian Scenario 214 15.5 Significance of Quality Circles 215 15.6 Objectives of Quality Circles 215 15.7 Nature of Problems That Can be Solved by Quality Circles 215 15.8 Ten Conditions for Successful Quality Circles 216 15.9 Road Map to be Followed in a Quality Circle Meeting 216

15.10 Characteristics of an Effective Quality Circle Meeting 216 15.11 Structure of a Quality Circle 217 15.12 Conclusion 218

16. Fundamentals of Statistics—Part I 219 16.1 Definition of Statistics 220 16.2 Role of Statistics in Analysis 220 16.3 Limitation of Statistics 221 16.4 Elements of Statistical Techniques 221 16.5 Methods of Collecting Data 221 16.6 Data Classification 222 16.7 Data Presentation 222 16.8 Population Versus Sample 223

16.8.1 Population 223 16.8.2 Sample 223

16.9 Attributes and Variables 224 16.10 Graphs 224

16.10.1 Principles of Graph Construction 224 16.10.2 Class Interval 224 16.10.3 Class Limits 224 16.10.4 Class Mark 225

16.11 Single Dimensional Diagrams—Bar Charts 225 16.11.1 Simple Bar Charts 225 16.11.2 Component Bar Charts 225 16.11.3 Percentage Component Bar Chart 226 16.11.4 Multiple Bar Charts 226 16.11.5 Dimensional Diagrams 226 16.11.6 Pie Diagrams 227 16.11.7 Doughnut Diagrams 227 16.11.8 Pictograms 228

16.12 Innovative Graphs 228 16.13 Frequency Graphs 228

16.13.1 Histograms 228 16.13.2 Frequency Polygon 229 16.13.3 Frequency Curve 229

16.14 Ogive 229 16.15 "Z" Chart 230

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16.16 Lorenz Curves 231 16.16.1 Application of Lorenz Curves 232

16.17 Frequency Distribution 233 16.18 Central Tendency 233 16.19 Measures of Central Tendency 234 16.20 Mean or an Average 235 16.21 Arithmetic Mean 235

16.21.1 Characteristics of Arithmetic Mean 236 16.21.2 Advantages of Arithmetic Mean 236 16.21.3 Disadvantages of Arithmetic Mean 236

16.22 Geometrie Mean, Quadratic Mean, and Harmonie Mean 236 16.23 Median 237

16.23.1 Definition 237 16.23.2 Calculation from Ungrouped Data 237 16.23.3 Calculation from Grouped Data 237 16.23.4 Characteristics of Median 237 16.23.5 Advantages of Median 238 16.23.6 Disadvantages of Median 238

16.24 Mode 238 16.24.1 Definition 238 16.24.2 Characteristics of Mode 238 16.24.3 Advantages of Mode 238 16.24.4 Disadvantages of Mode 238

16.25 Dispersion 239 16.26 Range 239

16.26.1 Characteristics of Range 239 16.27 Mean Deviation 239

16.27.1 Characteristics of Mean Deviation 240 16.27.2 Computation of Mean Deviation 240

16.28 Standard Deviation 240 16.28.1 Computation of a from Ungrouped Data 240 16.28.2 Computation of a from Grouped Data 240 16.28.3 Characteristics of Standard Deviation 241

16.29 Skewness 241 16.30 Kurtosis 241 16.31 Conclusion 242 Further Reading 242

17. Fundamentals of Statistics—Part II 243 17.1 Correlation 243

17.1.1 Scatter Diagram 244 17.1.2 Coefficient of Correlation 245 17.1.3 Types of Correlation 245

17.2 Regression 247 17.3 Relation Between Correlation and Regression 247 17.4 Sampling Theory 248

17.4.1 Introduction 248

Contents xv

17.4.2 Random NumberTables 249 17.4.3 The Sampling Process 249 17.4.4 Sampling Methods 249 17.4.5 Factors for Selection 250 17.4.6 Frequency of Sampling 250 17.4.7 Estimating the Sample Size 251 17.4.8 Factors that Influence the Sample Size Include 251

17.5 Probability 251 17.6 Laws of Probability 252

17.6.1 The Law of Addition 252 17.6.2 Mutually Exclusive Versus Mutually NonExcIusive 252 17.6.3 Law of Multiplication 253 17.6.4 Law of Conditional Probability 253

17.7 Conclusion 253 Further Reading 254

18. Process Capability 255 18.1 Statistical Process Control 255 18.2 Why Control Charts? 256 18.3 Reasons for Variations 256 18.4 Process Capability 257 18.5 Process Capability Index 257 18.6 One-Sided and Two-Sided Specifications 257 18.7 Taguchi Capability Index 258 18.8 Recommended Minimum Values of Cpk 258 18.9 Conclusion 259 Further Reading 259

19. Inward Inspection 261 19.1 Definitions of Inspection 261 19.2 Objectives of Inspection 262 19.3 Steps Involved in Inspection 262 19.4 Classifications of Inspection Methods 263 19.5 Source Inspection 264 19.6 Inward Inspection 264 19.7 Single and Double Sampling Inspection 265 19.8 In Process Inspection and Final Inspection 266 19.9 Tools of Inspection 268

19.10 Normal Jobs of a Quality Control lnspector 269 19.11 Requirements of an lnspector 269 19.12 Conclusion 270 Further Reading 270

20. Seven Traditional Tools of TQM 271 20.1 Introduction 271 20.2 Check Sheets and Checklists 272

xvi Contents

20.3 Histogram or Bar Graph 275 20.4 Scatter Diagram 277 20.5 Control Chart 278 20.6 Pareto Principle 279 20.7 Cause and Effect Diagram 280

20.7.1 Categories of Cause and Effect Diagrams 280 20.7.2 Basic lllustrations of Cause and Effect Diagrams 281

20.8 Flow Charts 282 20.8.1 Symbols Used in Flow Charts 282 20.8.2 The Benefits for Process Flowchart 283 20.8.3 Operation Process Chart 284 20.8.4 Flow Diagram 285

20.9 Conclusion 285 Appendix 285 Process Chart 285 Outline Process Chart 286 Flow Process Chart 286 Flow Diagram 288 Further Reading 290

21. The Seven Modern Tools of TQM 291 21.1 The Seven Traditional Tools of TQM 292 21.2 The Seven Modern TQM Tools 292 21.3 Affinity Diagram (Kj Method) 292

21.3.1 Guidelines 293 21.3.2 How to Conduct an Affinity Sort 293 21.3.3 Checklist 293

21.4 Interrelationship Diagraph 294 21.4.1 Objectives.of the Interrelationship Diagraph 295 21.4.2 Procedure for Constructing an Interrelationship

Diagraph 295 21.5 Tree Diagram 296

21.5.1 Event Tree Analysis 297 21.5.2 Fault Tree Analysis 297

21.6 Prioritization Matrix 298 21.6.1 Simple Prioritization Matrix vs. Weighted

Prioritization Matrix 298 21.6.2 When to Use a Prioritization Matrix 299 21.6.3 The 4 Basic Steps Involved in Creating

a Prioritization Matrix 299 21.6.4 Symbols Used in the Prioritization Matrix 299 21.6.5 WSA's 6-Step Detailed Procedure to Create

a Prioritization Matrix 300 21.7 Process Decision Program Chart 302

21.7.1 Steps in Drawing a PDPC 304 21.8 Activity Network Diagram 304 21.9 Single Minute Exchange of Dies 304

Contents xvii

21.9.1 The Factors to Bear in Mind Before Working for SMED 306 21.9.2 Internal and External Activities 306 21.9.3 Factors Stressed Upon by Shigeo Shingo,

the Originator of SMED 306 21.9.4 Benefits of SMED per Shigeo Shingo 307

21.10 Force Field Analysis 307 21.11 Criteria Rating Form 308 21.12 Models That Can be Used to Represent a Problem 309 21.13 Other Analytical Testing Methods for Safety 310 21.14 Conclusion 311 Further Reading 311

22. Kaizen and Continuous lmprovement 313 22.1 What is Kaizen? 313 22.2 Significance of Kaizen in Continuous lmprovement 314 22.3 Why Continuous lmprovement? 314 22.4 Some lllustrations of the Continuous Process

Improvements 316 22.5 Kaizen is the Umbrella 316 22.6 Requirements for Continuous lmprovement 317 22.7 Industrial Engineering Principles vs. Kaizen Principles 317 22.8 Importance of Creativity 317 22.9 Creative Methodology 319

22.10 The Principles of Creativity 319 22.10.1 Divide and Conquer 319 22.10.2 Set Quotas and Deadlines for Yourself 320 22.10.3 LetYour Mind Loose 320 22.10.4 Blue Sky Thinking 320 22.10.5 Two Heads are BetterThan One 320 22.10.6 Question Each and Every Detail 321

22.11 Brainstorming 321 22.11.1 When to use Brainstorming 322 22.11.2 Freewheeling vs. Round Robin 322 22.11.3 Techniques of Brainstorming 322

22.12 Six Thinking Hats 323 22.13 Primary and Secondary Questions 323 22.14 Develop 324 22.15 Define 326 22.16 Install 326 22.17 Maintain 328 22.18 Checklist for Operation Examination 328 22.19 Other Continuous lmprovement Techniques 330 22.20 Case Studies on Kaizen Applications 330 22.21 Some Quotations on Change 331 22.22 Conclusion 332 Further Reading 332

xviii Contents

23. 5S 333 23.1 Introduction 333 23.2 Expianation of the 5Ss 334

23.2.1 Seiri (Structuring—Distinguish Between the Necessary and the Unnecessary—Adopt Red Tagging) 334

23.2.2 Seiton: Systemize: (Or PEEP, A Place for Everything and Everything in its Place) 336

23.2.3 Seiso (Shine, Sweep or Sanitize—Look for Ways to Keep the Workplace Neat) 338

23.2.4 Seiketsu (Standardize—Keep the Workplace as per the Estabiished Standards) 339

23.2.5 Shitsuke (Sustain the 55 Practices by Work Discipline—Fol low the Rules) 340

23.2.6 Significance of Shitsuke in 5S 341 23.3 9-Step Procedure for Implementing 5S 342 23.4 5S Audit Sheet 342 23.5 An Easy Way of Remembering the 5S Terms 344 23.6 Conclusion 345

Further Reading 346

24. Six Sigma 347 24.1 Introduction 347 24.2 Definitions of Six Sigma 348 24.3 History of Six Sigma 348 24.4 Required Skills for Black Beited Experts in Six Sigma 349 24.5 The Conceptof Six Sigma in the Context of TQM 349 24.6 Origin of This Confusion Between Statistical 6a

and TQM Six Sigma 351 24.7 Six Sigma According to General Electric 352 24.8 The Values of the Defect Percentages 353 24.9 Methodologies for Six Sigma 354

24.10 DMAIC Methodology for Six Sigma 354 24.11 DMADV 354 24.12 Detailed Methodology of DMAIC 355

24.12.1 Define 356 24.12.2 Measure 356 24.12.3 Analyze 356 24.12.4 Improve 357 24.12.5 Control 357

24.13 Organizing for Six Sigma 358 24.14 Software Used for Six Sigma 359 24.15 The Gase Study of Mumbai Dabbawalas 359 24.16 Conclusion 361 Further Reading 361

Contents xix

25. Lean Management 363 25.1 What is Lean Management? 363 25.2 Components of Lean Management 365 25.3 Definitions on Lean Management 365 25.4 Evolution of Lean Concept 366 25.5 The House of Lean Management 367 25.6 What can Lean Management Achieve? 367 25.7 Increased Reliability with Lean Management 368 25.8 The Eight Losses in Manufacturing Leading

to Lean Management 369 25.8.1 Manufacturing Reliability 369 25.8.2 Partnership Between

Operations—Mai ntenance—Engi neeri ng 369 25.8.3 Elimination of Root Cause of the Problem 369 25.8.4 Storage 369 25.8.5 Integration and Application of Increased

Knowledge and Skills 369 25.8.6 Over Manufacturing 369 25.8.7 Over Maintenance 369 25.8.8 Use of New Technology 370

25.9 The 5 Key Drivers in Lean Management System 370 25.10 The 8 Ps of Lean Thinking 370 25.11 Lean Enterprise Implementation Processes and Tools 370 25.12 Road Map for Lean Management 371 25.13 Illustration of a Pit Shop Maintenance Situation 371 25.14 Conclusion 372 Further Reading 372

26. Failure Modes and Effects Analysis 373 26.1 Uncertainties Düring Development 373 26.2 Failure Modes and Effects Analysis 374 26.3 History of the Development of FMEA 374 26.4 Multiple Causes and Effects Involved in FMEA 375 26.5 Types of FMEA's 375 26.6 When to Use FMEA 376 26.7 Basic Terms of Reference in FMEA 377

26.7.1 Failure Mode 377 26.7.2 Failure Cause 377 26.7.3 Failure Effect 377 26.7.4 Severity Factor 378 26.7.5 Probability of Occurrence 379 26.7.6 Ease of Detection 380

26.8 Risk Priority Number 381 26.9 Procedure for FMEA 381

26.10 Responsibility for Action 386 26.11 Benefits of FMEA 386 26.12 FMEA Software 388

XX Contents

26.13 Conclusion 388 Further Reading 389

27. Reliability Engineering 391 27.1 Functional Reliability 391 27.2 General Causes for Poor Reliability 392 27.3 Distinguishing Between Quality and Reliability 392 27.4 WhatisRBM? 392 27.5 Bath Tub Characteristics 393 27.6 Basics of RBM 395 27.7 Principles of Reliability Engineering 395 27.8 House of Reliability 396 27.9 Types of Failures 397

27.10 Severity of Failures 397 27.11 Statistical Distribution Curves of Failures 397 27.12 Probability Density Function 400 27.13 Procedure of Establishing Reliability Based

Product Quality 401 27.14 Reliability Prediction 402

27.14.1 Ingredients for Reliability Prediction 402 27.14.2 Purposes of Reliability Prediction 402

27.15 Monte Carlo Simulation 403 27.16 Markov Analysis 404 27.17 Conclusion 404 Further Reading 404

28. Business Process Reengineering 405 28.1 Flistory of Business Process Reengineering 405 28.2 Definitions of Business Process Reengineering 406 28.3 Business Process Reengineering as a TQM Technique 406 28.4 The Role of Information Technology 408 28.5 Methodology for BPR 408 28.6 Process Reengineering Life Cycle Approach for BPR 410 28.7 Criticism Against BPR 411 28.8 Satisfactory Underperformance 411 28.9 The Sweet and Sour Cycle 413

28.10 Business Process Management 413 28.11 Conclusion 414 Further Reading 414

29. Benchmarking 415 29.1 What is Benchmarking? 415 29.2 Definitions for Benchmarking 415 29.3 Types of Benchmarking 416 29.4 Some of the Parameters That Can

be Benchmarked 417

Contents xxi

29.5 General Concept of Benchmarking 418 29.6 Phases of Benchmarking 418 29.7 Stage of Benchmarking 419 29.8 Different Approaches to Benchmarking 420 29.9 Tips for the Consultants 421

29.10 Costs of Benchmarking 422 29.11 Advantages of Benchmarking 422 29.12 Limitations of Benchmarking 422 29.13 Professional Associations and Institutions Exclusively for

Benchmarking 422 29.14 Conclusion 423 Appendix 423 Further Reading 424

30. Quality Function Deployment 425 30.1 Why Quality Function Deployment? 425 30.2 Definitions of QFD 426 30.3 History of QFD 427 30.4 IssuesThatWould be Addressed by QFD 429 30.5 The Four Phases of QFD 429 30.6 Building a House of Quality 431 30.7 Voice of the Customer 431

30.7.1 How to Get Information From the Customers? 432 30.8 Voice of the Organization 433 30.9 Framework for House of Quality 433

30.10 Building Up of House of Quality 434 30.11 Procedura for QFD 435 30.12 Benefits of QFD 436 30.13 Conclusion 436 Further Reading 437

31. Quality Loss Function 439 31.1 What is Quality Loss? 439 31.2 Precision vs. Accuracy 440 31.3 History of the Development of the Concept of the

Loss Function 441 31.4 Taguchi Philosophy 441 31.5 Quality Loss Function 442 31.6 Off-Line Quality Control Rule for Manufacturing 443 31.7 Design of Experiments 443

31.7.1 Outer Arrays 443 31.7.2 Management of Interactions 443

31.8 Robustification 444 31.9 Noise Variables 444

31.10 Case Study 444 31.11 Conclusion 444 Further Reading 445

xxii Contents

32. Design for Quality 447 32.1 Design for Quality 447 32.2 Design for Six Sigma 449 32.3 Acronyms for Methodologies Akin to DMAIC 449 32.4 DMADV 450

32.4.1 Define Phase 450 32.4.2 Measure Phase 450 32.4.3 Analyze Phase 450 32.4.4 Design Phase 451 32.4.5 Verify Phase 451

32.5 Scope of DFSS 452 32.6 Six Sigma Versus DFSS 452 32.7 Benefits of DFSS 452 32.8 Conclusion 453

Further Reading 453

33. Value Engineering 455 33.1 What is Value Engineering? 455 33.2 Definitions of Value Engineering 456 33.3 History of Value Engineering 457 33.4 What is Value? 457 33.5 Value Analysis 458 33.6 Objectives of Value Engineering 458 33.7 Typical Benefits of Value Engineering Projects 458 33.8 Functions of a Product as the Customer Wants It 459 33.9 Functional Value of a Product Versus Other Values 459

33.10 Methodology of Value Engineering 460 33.10.1 General Phase 460 33.10.2 Information Phase 460 33.10.3 Function Phase 460 33.10.4 Investigation and Creative Phases 461 33.10.5 Evaluation Phase 461 33.10.6 Recommendation and Follow-Up Phases 462 33.10.7 DARSIRI Methodology for Value Analysis 462

33.11 Function Analysis System Technique 462 33.12 Case Study 462 33.13 Conclusion 469 Further Reading 469

34. ISO 9000 Quality Systems 471 34.1 Need for Quality Management Systems 472 34.2 International Organization for Standardization 472 34.3 ISO 9000 Series of Quality Standards 472 34.4 Evolution of ISO 9000 Family of Standards 472 34.5 ISO/TS16949 474 34.6 QS-9000 Series 474

Contents xxiii

34.7 Requirements as Specified by ISO 9000 475 34.8 Bureau of Indian Standards 477 34.9 Vision and Mission Statement 477

34.9.1 Characteristics of a Vision Statement 478 34.9.2 General Guidelines in the Formulation

of a Vision Statement 478 34.9.3 Extracts From Some of the Vision Statements

of Famous Companies Are lliustrated in the Following Section 479

34.9.4 Seven Tips on How to Write the Business Vision Statement 479

34.10 Mission Statement 479 34.10.1 Features of Mission Statement 479 34.10.2 A Clear Mission Statement Would 480 34.10.3 Five Steps for Drafting a Mission Statement 480

34.11 Objectives, Goals, and Action Plans 480 34.12 SOP—Standard Operating Procedures 481 34.13 Specific Features of ISO 9004 481 34.14 Steps to be Followed for Getting ISO Certification 482 34.15 Benefits of ISO 9001-2000 and TS 16949 Quality Systems 482 34.16 ISO 9000:2005 483 34.17 2015 Revision of ISO 9000 Series 483 34.18 The Six Stages of the Release of the 2015 Revision 484 34.19 Revision of ISO 9000 in 2015 484 34.20 Conclusion 485 Further Reading 485

35. ISO 14000 Quality Systems 487 35.1 Introduction 487 35.2 Evolution of the ISO Standards on Environmental Issues 488 35.3 Global Environmental issues 489 35.4 Magna Carta on Environment 489 35.5 International Initiatives on Environmental Issues 490 35.6 Evolution of ISO 14000 Series 491

35.6.1 Formation ofTC207 491 35.6.2 What is ISO 14001? 492

35.7 Water Footprint 493 35.8 The Benefits of ISO 14000 493 35.9 Engineer's Role in Environment Protection 494

35.10 Principles of Green Design 494 35.11 Basic Approaches for Resolving Environmental Problems 495

35.11.1 CostOblivious Approach 495 35.11.2 Cost-Benefit Approach 495

35.12 Guidelines for Social Responsibility 496 35.13 5 Rs of Wastage Utilization 496 35.14 Conclusion 497 Further Reading 498

xxiv Contents

36. Terminology Used in Japanese Management Practices 499 36.1 Introduction 499 36.2 Some of the Terminologies Cited in This Chapter 500 36.3 History of Development of Japanese Management Practices 501 36.4 Quality Circles 501 36.5 Kaizen 501 36.6 GenchiCenbutsuGenjitsu 502 36.7 Monozukuri and Hitozukuri 502 36.8 Nemawashi 502 36.9 Heijunka 502

36.10 3 Mu Checklists 502 36.11 Four Wives and One Husband 503 36.12 CREW 504 36.13 5 Management Objectives of Factory Management 504 36.14 5 Zus 505 36.15 PokaYoke 505 36.16 Andon and Hanedashi 505 36.17 Jidhoka 505 36.18 ChakuChaku 506 36.19 5 S 506 36.20 Six Sigma 506 36.21 GembaWalk 507 36.22 WarusaKagen 507 36.23 Single Minute Exchange of Die 507 36.24 Just in Time 507 36.25 Kanban 508 36.26 HoshinKanri 508 36.27 NichijoKanri 509 36.28 Rata 509 36.29 Total Productive Maintenance 509 36.30 Pecha-kucha 509 36.31 DakaraNani 510 36.32 Kanso, Shizen, and Shibumi 510 36.33 OkyaKusoma 510 36.34 Conclusion 510 Further Reading 511

Annexure Bibliography Index

513 529 533