Unit 1

Principles and Practices

Total Quality Management (TQM) is an enhancement to the traditional way of doing business. It is a
proven technique to guarantee survival in world-class competition. Only by changing the actions of
management will the culture and actions of an entire organization be transformed. TQM is for the most
part common sense. Analyzing the three words, we have
Total—Made up of the whole.
Quality—Degree of excellence a product or service provides.
Management—Act, art, or manner of handling, controlling, directing, etc.
Therefore, TQM is the art of managing the whole to achieve excellence. The Golden Rule is a simple
but effective way to explain it: Do unto others as you would have them do unto you.
TQM is defined as both a philosophy and a set of guiding principles that represent the foundation of a
continuously improving organization.

Basic Approach
TQM requires six basic concepts:
1. A committed and involved management to provide long-term top-to-bottom organizational support.
2. An unwavering focus on the customer, both internally and externally.
3. Effective involvement and utilization of the entire work force.
4. Continuous improvement of the business and production process.
5. Treating suppliers as partners.
6. Establish performance measures for the processes.
1. Management must participate in the quality program. A quality council must be established to develop
a clear vision, set long-term goals, and direct the program. Quality goals are included in the business
plan. An annual quality improvement program is established and involves input from the entire work
force. Managers participate on quality improvement teams and also act as coaches to other teams.
2. The key to an effective TQM program is its focus on the customer. An excellent place to start is by
satisfying internal customers. We must listen to the “voice of the customer” and emphasize design
quality and defect prevention. Do it right the first time and every time, for customer satisfaction is the
most important consideration.
3. TQM is an organization-wide challenge that is everyone’s responsibility. All personnel must be
trained in TQM, statistical process control (SPC), and other appropriate quality improvement skills so
they can effectively participate on project teams. Including internal customers and, for that matter,
internal suppliers on project teams is an excellent approach.
4. There must be a continual striving to improve all business and production processes. Quality
improvement projects, such as on-time delivery, order entry efficiency, billing error rate, customer
satisfaction, cycle time, scrap reduction, and supplier management, are good places to begin.
5. On the average 40% of the sales dollar is purchased product or service; therefore, the supplier quality
must be outstanding. A partnering relationship rather than an adversarial one must be developed. Both
parties have as much to gain or lose based on the success or failure of the product or service. The focus
should be on quality and life-cycle costs rather than price. Suppliers should be few in number so that
true partnering can occur.
6. Performance measures such as uptime, percent nonconforming, absenteeism, and customer
satisfaction should be determined for each functional area. These measures should be posted for
everyone to see. Quantitative data are necessary to measure the continuous quality improvement
activity.

Gurus of Total Quality Management

Shewhart
Walter A. Shewhart, PhD, spent his professional career at Western Electric and Bell Telephone
Laboratories, both divisions of AT&T. He developed control chart theory with control limits, assignable
and chance causes of variation, and rational subgroups. In 1931, he authored Economic Control of
Quality of Manufactured Product, which is regarded as a complete and thorough work of the basic
principles of quality control. He also developed the PDSA cycle for learning and improvement.
Ronald Fisher
In the conventional sense, Fisher is not known as a quality guru. However, he created a solid foundation
of statistical methods, such as design of experiments (DOE) and analysis of variance (ANOVA) in the
1930s. DOE is one of the most powerful tools used by many organizations in problem solving and
process improvements. Analysis of variance became widely known after being included in his book
Statistical Methods for Research Workers in 1925. Fisher also published The Design of Experiments in
1935 and Statistical Tables in 1947.
Deming
W. Edwards Deming, PhD, was a protégé of Shewhart. In 1950, he taught statistical process control and
the importance of quality to the leading CEOs of Japanese industry. He is credited with providing the
foundation for the Japanese quality miracle and resurgence as an economic power. Deming is the best-
known quality expert in the world. His 14 points provide a theory for management to improve quality,
productivity, and competitive position. He has authored a number of books including Out of the Crisis
and Quality, Productivity, and Competitive Position as well as 161 scholarly studies.
Juran
Joseph M. Juran, PhD worked at Western Electric from 1924 to 1941. There he was exposed to the
concepts of Shewhart. Juran traveled to Japan in 1954 to teach quality management. He emphasized the
necessity for management at all levels to be committed to the quality effort with hands-on involvement.
He recommended project improvements based on return on investment to achieve breakthrough results.
The Juran Trilogy for managing quality is carried out by the three interrelated processes of planning,
control, and improvement. In 1951, the first edition of Juran’s Quality Control Handbook was
published.
Feigenbaum
Armand V. Feigenbaum, PhD, argues that total quality control2 is necessary to achieve productivity,
market penetration, and competitive advantage. Quality begins by identifying the customer’s
requirements and ends with a product or service in the hands of a satisfied customer. In addition to
customer satisfaction, some of Feigenbaum’s quality principles are genuine management involvement,
employee involvement, first-line supervision leadership, and company-wide quality control. In 1951,
he authored Total Quality Control.
Ishikawa
Kaoru Ishikawa, PhD, studied under Deming, Juran, and Feigenbaum. He borrowed the total quality
control concept and adapted it for the Japanese. In addition, he authored SPC texts in Japanese and in
English. Ishikawa is best known for the development of the cause and effect diagram, which is
sometimes called an Ishikawa diagram. He developed the quality circle concept in Japan, whereby work
groups, including their supervisor, were trained in SPC concepts. The groups then met to identify and
solve quality problems in their work environment.
Crosby
Phillip B. Crosby authored his first book, Quality is Free, in 1979, which was translated into 15
languages. It sold 1.5 million copies and changed the way management looked at quality. He argued
that “doing it right the first time” is less expensive than the costs of detecting and correcting
nonconformities. In 1984, he authored Quality Without Tears, which contained his four absolutes of
quality management. These absolutes are: quality is conformance to requirements, prevention of
nonconformance is the objective not appraisal, the performance standard is zero defects not “that’s close
enough,” and the measurement of quality is the cost of nonconformance.

Taguchi
Genichi Taguchi, PhD, developed his loss function concept that combines cost, target, and variation
into one metric. Because the loss function is reactive, he developed the signal to noise ratio as a
proactive equivalent. The cornerstone of Taguchi’s philosophy is the robust design of parameters and
tolerances. It is built on the simplification and use of traditional design of experiments.

TQM Framework
Figure 1 shows the framework for the TQM system. It begins with the knowledge provided by gurus of
quality: Shewhart, Deming, Juran, Feigenbaum, Ishikawa, Crosby, and Taguchi. As the figure shows,
they contributed to the development of principles and practices and/or the tools and techniques. Some
of these tools and techniques are used in the product and/or service realization activity. Feedback from
internal/external customers or interested parties provides information to continually improve the
organization’s system, product and/or service.
Fig 1

Awareness
An organization will not begin the transformation to TQM until it is aware that the quality of the product
or service must be improved. Awareness comes about when an organization loses market share or
realizes that quality and productivity go hand-in-hand.

 Automation and other productivity enhancements might not help a corporation if it is unable to
market its product or service because the quality is poor.
 Until recently, corporations have not recognized the importance of quality. However, a new
attitude has emerged—quality first among the equals of cost and service. The customer wants
value. Quality and productivity are not mutually exclusive.
 Improvements in quality can lead directly to increased productivity and other benefits. As seen
in the table, the improved quality results in a 5.6% improvement in productivity, capacity, and
profit.
 Many quality improvement projects are achieved with the same work force, same overhead,
and no investment in new equipment. Recent evidence shows that more and more corporations
are recognizing the importance and necessity of quality improvement if they are to survive
domestic and world-wide competition.
 Quality improvement is not limited to the conformance of the product or service to
specifications; it also involves the inherent quality in the design of the system. The prevention
of product, service, and process problems is a more desirable objective than taking corrective
action after the product is manufactured or a service rendered.
Defining Quality
It is defined as the degree to which a set of inherent characteristics fulfills requirements. Degree
means that quality can be used with adjectives such as poor, good, and excellent. Inherent is defined
as existing in something, especially as a permanent characteristic. Characteristics can be
quantitative or qualitative. Requirement is a need or expectation that is stated; generally implied by
the organization, its customers, and other interested parties; or obligatory.
The Dimensions of Quality

 Performance
Does the product or service do what it is supposed to do, within its defined tolerances? Performance
is often a source of contention between customers and suppliers, particularly when deliverables are
not adequately defined within specifications. The performance of a product often influences the
profitability or reputation of the end-user. As such, many contracts or specifications include
damages related to inadequate performance.

 Features
Does the product or services possess all of the features specified, or required for its intended
purpose? While this dimension may seem obvious, performance specifications rarely define the
features required in a product. Thus, it’s important that suppliers designing products or services
from performance specifications are familiar with their intended uses, and maintain close
relationships with the end-users.

 Reliability
Will the product consistently perform within specifications? Reliability may be closely related to
performance. For instance, a product specification may define parameters for up-time or acceptable
failure rates. Reliability is a major contributor to brand or company image and is considered a
fundamental dimension of quality by most end-users.

 Conformance
Does the product or service conform to the specification? If it’s developed based on a performance
specification, does it perform as specified? If it’s developed based on a design specification, does
it possess all of the features defined?

 Durability
How long will the product perform or last, and under what conditions? Durability is closely related
to warranty. Requirements for product durability are often included within procurement contracts
and specifications. For instance, fighter aircraft procured to operate from aircraft carriers include
design criteria intended to improve their durability in the demanding naval environment.

 Serviceability
Is the product relatively easy to maintain and repair? As end users become more focused on the
Total Cost of Ownership than simple procurement costs, serviceability (as well as reliability) is
becoming an increasingly important dimension of quality and criteria for product selection.

 Aesthetics
The way a product looks is important to end-users. The aesthetic properties of a product contribute
to a company’s or brand’s identity. Faults or defects in a product that diminish its aesthetic
properties, even those that do not reduce or alter other dimensions of quality, are often causes for
rejection.

 Perception
Perception is reality. The product or service may possess adequate or even superior dimensions of
quality but still fall victim to negative customer or public perceptions.

HISTORY OF TOTAL QUALITY MANAGEMENT

 1920s
Some of the first seeds of quality management were planted as the principles of scientific
management swept through U.S. industry.
The Hawthorne experiments in the late 1920s showed how worker productivity could be impacted
by participation.

 1930s
Walter Shewhart developed the methods for statistical analysis and control of quality.

 1950s
W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese
engineers and executives. This can be considered the origin of TQM.
Joseph M. Juran taught the concepts of controlling quality and managerial breakthrough.
Armand V. Feigenbaum’s book Total Quality Control, a forerunner for the present understanding
of TQM, was published.
Philip B. Crosby’s promotion of zero defects paved the way for quality improvement in many
companies.

 1968
The Japanese named their approach to total quality "companywide quality control." It is around this
time that the term quality management systems arises.
Kaoru Ishikawa’s synthesis of the philosophy contributed to Japan’s ascendancy as a quality leader.

BENEFITS OF TOTAL QUALITY MANAGEMENT

 Strengthened competitive position
 Adaptability to changing or emerging market conditions and to environmental and other
government regulations
 Higher productivity
 Enhanced market image
 Elimination of defects and waste
 Reduced costs and better cost management
 Higher profitability
 Improved customer focus and satisfaction
 Increased customer loyalty and retention
 Increased job security
 Improved employee morale
 Enhanced shareholder and stakeholder value
 Improved and innovative processes

OBSTACLES OF TQM
Once an organization embarks on TQM, there will be obstacles to its successful implementation.

 Lack of Management Commitment

In order for any organizational effort to succeed, there must be a substantial management
commitment of management time and organizational resources. The purpose must be clearly and
continuously communicated to all personnel. Management must consistently apply the principles
of TQM.

 Inability to Change Organizational Culture

Changing an organization’s culture is difficult and will require as much as five years. Individuals
resist change—they become accustomed to doing a particular process and it becomes the preferred
way. Management must understand and utilize the basic concepts of change. They are:
1. People change when they want to and to meet their own needs.
2. Never expect anyone to engage in behaviour that serves the organization’s values unless adequate
reason (why) has been given.
3. For change to be accepted, people must be moved from a state of fear to trust.

 Improper Planning
All constituents of the organization must be involved in the development of the implementation
plan and any modifications that occur as the plan evolves. Of particular importance is the two-way
communication of ideas by all personnel during the development of the plan and its implementation.
Customer satisfaction should be the goal rather than financial or sales goals.

 Lack of Continuous Training and Education

Training and education is an ongoing process for everyone in the organization. Needs must be
determined and a plan developed to achieve those needs. Training and education are most effective
when senior management conducts the training on the principles of TQM. Informal training occurs
by communicating the TQM effort to all personnel on a continual basis.

 Incompatible Organizational Structure and Isolated Individuals and Departments

Differences between departments and individuals can create implementation problems. The use of
multifunctional teams will help to break down long-standing barriers. Restructuring to make the
organization more responsive to customer needs may be needed. Individuals who do not embrace
the new philosophy can be required to leave the organization. Adherence to the six basic concepts
will minimize the problems over time.

 Ineffective Measurement Techniques and Lack of Access to Data and Results

Key characteristics of the organization should be measured so that effective decisions can be made.
In order to improve a process you need to measure the effect of improvement ideas. Access to data
and quick retrieval is necessary for effective processes.

 Paying Inadequate Attention to Internal and External Customers

Organizations need to understand the changing needs and expectations of their customers. Effective
feedback mechanisms that provide data for decision making are necessary for this understanding.
One way to overcome this obstacle is to give the right people direct access to the customers.

 Inadequate Use of Empowerment and Teamwork

Teams need to have the proper training and, at least in the beginning, a facilitator. Whenever
possible, the team’s recommendations should be followed. Individuals should be empowered to
make decisions that affect the efficiency of their process or the satisfaction of their customers. Solar
Turbines, Inc. flattened its organization by restructuring into work teams and delegating authority
to the point of customer contact or to the work performed.

 Failure to Continually Improve

It is tempting to sit back and rest on your laurels. However, a lack of continuous improvement of
the processes, product, and/or service will even leave the leader of the pack in the dust. Will Rogers
said it best, “Even if you’re on the right track, you’ll get run over if you just sit there.” Even though
Champion Mortgage’s 1998 business volume increased 59%, it continues to address culture, staff,
and service issues.

Leadership
Leadership is the ability of an individual or a group of people to influence and guide followers or
members of an organization, society or team. Leadership often is an attribute tied to a person's title,
seniority or ranking in a hierarchy. However, it's an attribute anyone can have or attain, even those
without leadership positions. It's a developable skill that can be improved over time.

Characteristics of Quality Leaders

There are 12 behaviours or characteristics that successful quality leaders demonstrate.
1. They give priority attention to external and internal customers and their needs. Leaders place
themselves in the customers’ shoes and service their needs from that perspective. They continually
evaluate the customers’ changing requirements.
2. They empower, rather than control, subordinates. Leaders have trust and confidence in the
performance of their subordinates. They provide the resources, training, and work environment to
help subordinates do their jobs. However, the decision to accept responsibility lies with the
individual.
3. They emphasize improvement rather than maintenance. Leaders use the phrase “If it isn’t perfect,
improve it” rather than “If it ain’t broke, don’t fix it.” There is always room for improvement, even
if the improvement is small. Major breakthroughs sometimes happen, but it’s the little ones that
keep the continuous process improvement on a positive track.
4. They emphasize prevention. “An ounce of prevention is worth a pound of cure” is certainly true.
It is also true that perfection can be the enemy of creativity. We can’t always wait until we have
created the perfect process or product. There must be a balance between preventing problems and
developing better, but not perfect, processes.
5. They encourage collaboration rather than competition. When functional areas, departments, or
work groups are in competition, they may find subtle ways of working against each other or
withholding information. Instead, there must be collaboration among and within units.
6. They train and coach, rather than direct and supervise. Leaders know that the development of the
human resource is a necessity. As coaches, they help their subordinates learn to do a better job.
7. They learn from problems. When a problem exists, it is treated as an opportunity rather than
something to be minimized or covered up. “What caused it?” and “How can we prevent it in the
future?” are the questions quality leaders ask.
8. They continually try to improve communications. Leaders continually disseminate information
about the TQM effort. They make it evident that TQM is not just a slogan. Communication is two
way—ideas will be generated by people when leaders encourage them and act upon them. For
example, on the eve of Desert Storm, General Colin Powell solicited enlisted men and women for
advice on winning the war. Communication is the glue that holds a TQM organization together.
9. They continually demonstrate their commitment to quality. Leaders walk their talk—their
actions, rather than their words, communicate their level of commitment. They let the quality
statements be their decision-making guide.
10. They choose suppliers on the basis of quality, not price. Suppliers are encouraged to participate
on project teams and become involved. Leaders know that quality begins with quality materials and
the true measure is the life-cycle cost.
11. They establish organizational systems to support the quality effort. At the senior management
level a quality council is provided, and at the first-line supervisor level, work groups and project
teams are organized to improve the process.
12. They encourage and recognize team effort. They encourage, provide recognition, and reward
individuals and teams. Leaders know that people like to know that their contributions are
appreciated and important. This action is one of the leader’s most powerful tools.

Leadership Concepts
In order to become successful, leadership requires an intuitive understanding of human nature—the
basic needs, wants, and abilities of people. To be effective, a leader understands that:
1. People, paradoxically, need security and independence at the same time.
2. People are sensitive to external rewards and punishments and yet are also strongly self-motivated.
3. People like to hear a kind word of praise. Catch people doing something right, so you can pat
them on the back.
4. People can process only a few facts at a time; thus, a leader needs to keep things simple.
5. People trust their gut reaction more than statistical data.
6. People distrust a leader’s rhetoric if the words are inconsistent with the leader’s actions.

The Deming Philosophy

1. Create and Publish the Aims and Purposes of the Organization
Management must demonstrate constantly their commitment to this statement. It must include
investors, customers, suppliers, employees, the community, and a quality philosophy. The statement
is a forever changing document that requires input from everyone. Organizations must develop a
long-term view of at least ten years and plan to stay in business by setting long-range goals.
2. Learn the New Philosophy
Top management and everyone must learn the new philosophy. Organizations must seek never-
ending improvement and refuse to accept nonconformance. Customer satisfaction is the number
one priority, because dissatisfied customers will not continue to purchase nonconforming products
and services. The organization must concentrate on defect prevention rather than defect detection.
By improving the process, the quality and productivity will improve.
3. Understand the Purpose of Inspection
Management must understand that the purpose of inspection is to improve the process and reduce
its cost. For the most part, mass inspection is costly and unreliable. Where appropriate, it should be
replaced by never ending improvement using statistical techniques. Statistical evidence is required
of self and supplier. Every effort should be made to reduce and then eliminate acceptance sampling.
Mass inspection is managing for failure and defect prevention is managing for success.
4. Stop Awarding Business Based on Price Alone
The organization must stop awarding business based on the low bid, because price has no meaning
without quality. The goal is to have single suppliers for each item to develop a long-term
relationship of loyalty and trust, thereby providing improved products and services. Purchasing
agents must be trained in statistical process control and require it from suppliers.
5. Improve Constantly and Forever the System
Management must take more responsibility for problems by actively finding and correcting
problems so that quality and productivity are continually and permanently improved and costs are
reduced. The focus is on preventing problems before they happen. Variation is expected, but there
must be a continual striving for its reduction using control charts. Responsibilities are assigned to
teams to remove the causes of problems and continually improve the process.
6. Institute Training
Each employee must be oriented to the organization’s philosophy of commitment to never-ending
improvements. Management must allocate resources to train employees to perform their jobs in the
best manner possible. Everyone should be trained in statistical methods, and these methods should
be used to monitor the need for further training.
7. Teach and Institute Leadership
Improving supervision is management’s responsibility. They must provide supervisors with training
in statistical methods and these 14 points so the new philosophy can be implemented. Instead of
focusing on a negative, fault-finding atmosphere, supervisors should create a positive, supportive
one where pride in workmanship can flourish. All communication must be clear from top
management to supervisors to operators.
8. Drive Out Fear, Create Trust, and Create a Climate for Innovation
Management must encourage open, effective communication and teamwork. Fear is caused by a
general feeling of being powerless to control important aspects of one’s life. It is caused by a lack
of job security, possible physical harm, performance appraisals, ignorance of organization goals,
poor supervision, and not knowing the job. Driving fear out of the workplace involves managing
for success.
9. Optimize the Efforts of Teams, Groups, and Staff Areas
Management must optimize the efforts of teams, work groups, and staff areas to achieve the aims
and purposes of the organization. Barriers exist internally among levels of management, among
departments, within departments, and among shifts. Externally, they exist between the organization
and its customers and suppliers.
10. Eliminate Exhortations for the Work Force
Exhortations that ask for increased productivity without providing specific improvement methods
can handicap an organization. They do nothing but express management’s desires. They do not
produce a better product or service, because the workers are limited by the system. Goals should be
set that are achievable and are committed to the long-term success of the organization.
Improvements in the process cannot be made unless the tools and methods are available.
11a. Eliminate Numerical Quotas for the Work Force
Instead of quotas, management must learn and institute methods for improvement. Quotas and work
standards focus on quantity rather than quality. They encourage poor workmanship in order to meet
their quotas. Quotas should be replaced with statistical methods of process control. Management
must provide and implement a strategy for never-ending improvements and work with the work
force to reflect the new policies.
11b. Eliminate Management by Objective
Instead of management by objective, management must learn the capabilities of the processes and
how to improve them. Internal goals set by management, without a method, are a burlesque.
Management by numerical goal is an attempt to manage without knowledge of what to do.
12. Remove Barriers That Rob People of Pride of Workmanship
Loss of pride in workmanship exists throughout organizations because (1) workers do not know
how to relate to the organization’s mission, (2) they are being blamed for system problems, (3) poor
designs lead to the production of “junk,” (4) inadequate training is provided, (5) punitive
supervision exists, and (6) inadequate or ineffective equipment is provided for performing the
required work. Restoring pride will require a long-term commitment by management. When
workers are proud of their work, they will grow to the fullest extent of their job.
13. Encourage Education and Self-Improvement for Everyone
What an organization needs is people who are improving with education. A long-term commitment
to continuously train and educate people must be made by management. Deming’s 14 points and
the organization’s mission should be the foundation of the education program. Everyone should be
retrained as the organization requirements change to meet the changing environment.
14. Take Action to Accomplish the Transformation
Management has to accept the primary responsibility for the never-ending improvement of the
process. It has to create a corporate structure to implement the philosophy. A cultural change is
required from the previous “business as usual” attitude. Management must be committed, involved,
and accessible if the organization is to succeed in implementing the new philosophy.

Role of TQM Leaders

 Everyone is responsible for quality, especially senior management and the CEO; however,
only the latter can provide the leadership system to achieve results.
 Senior managers need to be provided with the skills to implement quality control techniques
and actively participate in the quality council.
 Senior management has numerous responsibilities. Senior management must practice the
philosophy of Management by Wandering Around (MBWA). Management should get out
of the office and visit customers, suppliers, departments within the organization, and plants
within the organization. That way, managers learn what is happening with a particular
customer, supplier, or project. MBWA can substantially reduce paperwork. Encourage
subordinates to write only important messages that need to be part of the permanent record.
 The needed resources must be provided to train employees in the TQM tools and
techniques, the technical requirements of the job, and safety. Resources in the form of the
appropriate equipment to do the job must also be provided.
 Senior managers must find time to celebrate the success of their organization’s quality
efforts by personally participating in award and recognition ceremonies.
 Senior managers must be visibly and actively engaged in the quality effort by serving on
teams, coaching teams, and teaching seminars. They should lead by demonstrating,
communicating, and reinforcing the quality statements.
 A very important role of senior managers is listening to internal and external customers and
suppliers through visits, focus groups, and surveys. This information is translated into core
values and process improvement projects.
 Another very important role is communication. The objective is to create awareness of the
importance of TQM and provide TQM results in an ongoing manner. The TQM message
must be “sold” to personnel, for if they don’t buy it, TQM will never happen.

Implementation
The TQM implementation process begins with senior management and, most important, the CEO’s
commitment. The importance of the senior management role cannot be overstated. Leadership is
essential during every phase of the implementation process and particularly at the start. In fact,
indifference and lack of involvement by senior management are frequently cited as the principal
reasons for the failure of quality improvement efforts. Delegation and rhetoric are insufficient—
involvement is required.
Senior management needs to be educated in the TQM concepts. In addition to formal education,
managers should visit successful TQM organizations, read selected articles and books, and attend
seminars and conferences. The next step is for senior management to develop an implementation
plan.
Timing of the implementation process can be very important. Is the organization ready to embark
on the total quality journey? There may be some foreseeable problems, such as a reorganization,
change in senior management personnel, interpersonal conflicts, a current crisis, or a time-
consuming activity. These problems may postpone implementation to a more favorable time.
The next step is the formation of the quality council. Initiation of these duties is a substantial part
of the implementation of TQM. The development of core values, a vision statement, a mission
statement, and a quality policy statement, with input from all personnel, should be completed first.
The active involvement of middle managers and first-line supervisors is essential to the success of
the TQM effort. They are accountable for achieving many of the organization’s performance goals
and objectives, and they form enduring links in the communication chain from senior management
to the front-line workers. One way to accomplish this concept is to have a retreat. The retreat will
focus on TQM training, leadership skills, and active involvement in the development of the
organization’s statements.
If there is a union, there should be early discussions with the representatives on TQM. Managers
should involve union leaders by sharing with them implementation plans for TQM. As the quality
effort progresses, managers and union leaders should work together on quality improvement
activities.
Customer, employee, and supplier surveys must be conducted to benchmark the attitudes of these
three stake holders. Information from these surveys provides ideas for quality improvement
projects. The quality council determines the quality improvement projects. In addition the council
establishes the project teams and work groups and monitors their progress. The organization has to
be patient and not rush the teams for solutions that don’t eliminate the root causes.

STRATEGIC PLANNING
Many organizations are finding that strategic quality plans and business plans are inseparable. For
instance, at Corning, the 1995 Malcolm Baldrige National Quality Award winner, if you ask them
to show you their quality strategy, they will show you their business strategy; if you ask them to
show you their quality plans, they will show you their business plans. In fact, the term quality is not
used too much. The time horizon for strategic planning is for three to ten years, and short-term
planning is for one year or less.
Seven Steps to Strategic Planning
There are seven basic steps to strategic quality planning. The process starts with the principle that
quality and customer satisfaction are the center of an organization’s future. It brings together all the
key stakeholders.
1. Customer Needs. The first step is to discover the future needs of the customers. Who will they
be? Will your customer base change? What will they want? How will the organization meet and
exceed expectations?
2. Customer Positioning. Next, the planners determine where the organization wants to be in
relation to the customers. Do they want to retain, reduce, or expand the customer base? Products or
services with poor quality performance should be targeted for breakthrough or eliminated.
3. Predict the Future. Demographics, economic forecasts, and technical assessments or projections
are tools that help predict the future. More than one organization’s product or service has become
obsolete because it failed to foresee the changing technology.
4. Gap Analysis. This step requires the planners to identify the gaps between the current state and
the future state of the organization. An analysis of the core values and concepts, given earlier in the
chapter, is an excellent technique for pinpointing gaps.
5. Closing the Gap. The plan can now be developed to close the gap by establishing goals and
responsibilities. All stakeholders should be included in the development of the plan.
6. Alignment. As the plan is developed, it must be aligned with the mission, vision, and core values
and concepts of the organization. Without this alignment, the plan will have little chance of success.
7. Implementation. This last step is frequently the most difficult. Resources must be allocated to
collecting data, designing changes, and overcoming resistance to change. Also part of this step is
the monitoring activity to ensure that progress is being made.

COMMUNICATIONS
All organizations communicate with their employees in one manner or another. Communications
deliver the organization’s values, expectations, and directions; provide information about corporate
developments; and allow feedback from all levels. It is very important to keep information flowing
back and forth between employees and various levels of management.
The purpose of communications is to influence attitudes and behaviours to achieve goals and
objectives. Different communication methods are better for different communication needs.
Communication is not just providing information, but using the best communication method to
motivate people to act upon the message.
There are two basic communication techniques—interactive and formal.
Interactive
Perhaps the most effective communication allows for discussions between the employees and their
supervisor, not just management talking to employees. The immediate supervisor is in the best
position to initiate the transfer of information and create discussions on what needs to be improved,
how to do it, and why it needs to be done.
Indeed, employees consistently report their preferred source of information is their immediate
supervisor.
There is no one-way to communicate and all supervisors are not equally effective as
communicators. Generally, a supervisor’s communication will be successful if the supervisor is
honest, clear, and inclusive. Communications training programs can also be helpful.
Managers can communicate one-on-one or in a group setting. The group setting would most likely
occur at the beginning of the shift and would cover topics such as quality, productivity, schedule,
and cost.
Formal
Formal communication can occur using the printed page or electronics. The most common printed
communications are periodic publications such as e-mail or a weekly newsletter. Graphics in the
form of charts and diagrams can be used to enhance e-mail and publications.
In multinational organizations, messages must be tailored for different cultures and languages. The
Internet can be used for external communications, and the intranet can be used for internal
communications.
Large, multi-site organizations have found that satellite television can be an effective medium.
These programs can be interactive by allowing questions by telephone or fax during the
presentation. The presentation should not be too long, and it should be professionally done.
Video is becoming more and more important, because visual messages are a very powerful way to
disseminate information. Videos can be produced by the organization, or commercial tapes can be
purchased, such as Juran’s videotapes on quality
 Unit-2
Customer Satisfaction and Customer Involvement
The most important asset of any organization is its customers. An organization’s success
depends on how many customers it has, how much they buy, and how often they buy.
Customers that are satisfied will increase in number, buy more, and buy more frequently.
Satisfied customers also pay their bills promptly, which greatly improves cash flow—the
lifeblood of any organization.

Fig 1. Customer satisfaction diagram

Who is the Customer?

There are two distinct types of customers—external and internal.
An external customer can be defined in many ways, such as the one who uses the product or
service, the one who purchases the product or service, or the one who influences the sale of the
product or service.
An external customer exists outside the organization and generally falls into three categories:
current, prospective, and lost customers. Each category provides valuable customer satisfaction
information for the organization.
Every employee in the organization must know how their job enhances the total satisfaction of
the external customer. Performance must be continually improved in order to retain existing
customers and to gain new ones.
An internal customer is just as important. Every function, whether it be engineering, order
processing, or production, has an internal customer—each receives a product or service and, in
exchange, provides a product or service. Every person in a process is considered a customer of
the preceding operation. Each worker’s goal is to that is used by another customer.
As shown by Figure 2, each forms a link in the customer/supplier chain, where every chain
ends with an external customer and starts with an external supplier. Every employee throughout
the organization is part of the chain of internal customers and suppliers.
All processes have outputs, which are used by internal or external customers, and inputs, which
are provided by internal or external suppliers. Each supplier performs work that produces some
service or product that is used by another customer. As shown by Figure 2, each forms a link
in the customer/supplier chain, where every chain ends with an external customer and starts
with an external supplier. Every employee throughout the organization is part of the chain of
internal customers and suppliers.

Fig 2: Customer/Supplier Chain

Customer Perception of Quality

One of the basic concepts of the TQM philosophy is continuous process improvement. This
concept implies that there is no acceptable quality level because the customer’s needs, values,
and expectations are constantly changing and becoming more demanding.
Performance
Performance involves “fitness for use”—a phrase that indicates that the product and ser-vice is
ready for the customer’s use at the time of sale. Other considerations are (1) availability, which
is the probability that a product will operate when needed; (2) reliability, which is freedom
from failure over time; and (3) maintainability which is the ease of keeping the product
operable.
Features
Identifiable features or attributes of a product or service are psychological, time-oriented,
contractual, ethical, and technological. Features are secondary characteristics of the product or
service. For example, the primary function of an automobile is transportation, whereas a car
stereo system is a feature of an automobile.
Service
An emphasis on customer service is emerging as a method for organizations to give the
customer-added value. However, customer service is an intangible—it is made up of many
small things, all geared to changing the customer’s perception. Intangible characteristics are
those traits that are not quantifiable, yet contribute greatly to customer satisfaction. Providing
excellent customer service is different from and more difficult to achieve than excellent product
quality.
Warranty
The product warranty represents an organization’s public promise of a quality product backed
up by a guarantee of customer satisfaction. Ideally, it also represents a public commitment to
guarantee a level of service sufficient to satisfy the customer.
A warranty forces the organization to focus on the customer’s definition of product and service
quality. An organization has to identify the characteristics of product and service quality and
the importance the customer attaches to each of those characteristics. A warranty generates
feedback by providing information on the product and service quality. It also forces the
organization to develop a corrective action system.
Price
Today’s customer is willing to pay a higher price to obtain value. Customers are constantly
evaluating one organization’s products and services against those of its competitors to
determine who provides the greatest value. However, in our highly-competitive environment,
each customer’s concept of value is continually changing.
Reputation
Most of us find ourselves rating organizations by our overall experience with them. Total
customer satisfaction is based on the entire experience with the organization, not just the
product. Good experiences are repeated to six people and bad experiences are repeated to 15
people; therefore, it is more difficult to create a favourable reputation.
Customers are willing to pay a premium for a known or trusted brand name and often become
customers for life. Because it costs five times as much to win a new customer as it does to keep
an existing one, customer retention is an important economic strategy for any organization.

Feedback using customer complaints

Customer feedback must be continually solicited and monitored. Customers continually
change. They change their minds, their expectations, and their suppliers. Customer feedback is
not a one-time effort; it is an ongoing and active probing of the customers’ mind.
Listening to the voice of the customer can be accomplished by numerous information-
collecting tools. The principal ones are comment cards, questionnaires, focus groups, toll-free
telephone lines, customer visits, report cards, the Internet, employee feedback, mass
customization and the American Customer Satisfaction Index.
Comment Card
A low-cost method of obtaining feedback from customers involves a comment card, which can
be attached to the warranty card and included with the product at the time of purchase. The
intent of the card is to get simple information, such as name, address, age, occupation, and what
influenced the customer’s decision to buy the product. However, there is very little incentive
for buyers to respond to this type of card, and the quality of the response may not provide a
true measure of customers’ feelings. Generally, people respond only if something very good or
very bad has happened. Comment cards are also used in the hospitality industry.
Customer Questionnaire
A customer questionnaire is a popular tool for obtaining opinions and perceptions about an
organization and its products and services. However, they can be costly and time-consuming.
Surveys may be administered by mail or telephone. In the form of questionnaires, the customer
is asked to furnish answers relating to the quality of products and services. Most surveys ask
the customer to grade the question on a one-to-five scale or a one-to-ten scale, where the highest
number typically has a description like “highly satisfied.” One of the reasons the one-to-five
or one-to-ten scale is used is because it easily produces a metric.
Focus Groups
Customer focus groups are a popular way to obtain feedback, but they too can be very
expensive. These groups are very effective for gathering information on customer expectations
and requirements.
Surveying a focus group is a research method used to find out what customers are really
thinking. A group of customers is assembled in a meeting room to answer a series of questions.
These carefully structured questions are asked by a skilled moderator, who probes into the
participants’ thoughts, ideas, perceptions, or comments. The moderator has a clear
understanding of the type of information wanted and a plan for obtaining it.
Toll-Free Telephone Numbers
Toll-free (1800/1600) telephone numbers are an effective technique for receiving complaint
feedback. Organizations can respond faster and more cheaply to the complaint. Such a number
does not, however, reach those who decided not to buy the product or those who discovered
some likable feature on a competitor’s product. Toll-free numbers are in use by at least 50% of
all organizations with sales of at least $10 million.
Report Card
Another very effective information-gathering tool is the report card. It is usually sent to each
customer on a quarterly basis. The data are analyzed to determine areas for improvement.
The Internet and Computers
Some managers are beginning to monitor discussions that take place on the Internet to find out
what customers are saying about their products. Internet users frequently seek advice regarding
their everyday activities or activities related to specific interests, hobbies, or sports.
Newsgroups, electronic bulletin boards, and mailing lists can be scanned using keyword
searches if one knows that a company’s product is of interest to participants in certain activities,
hobbies, or professions. Ideally, messages that compare a company’s products with those of its
competitors can be uncovered.
Computers can be used to detect patterns in seemingly chaotic data. For instance, the sales data
from a convenience store chain showed that the peak hours for selling diapers and for selling
beer were the same. The diapers were put next to the beer and sales increased for both.
Employee Feedback
Employees are often an untapped source of information. Companies are listening more to the
external customer but still are not listening to employees. Employees can offer insight into
conditions that inhibit service quality in the organization. Employee groups can brainstorm
ideas to come up with solutions to problems that customers have identified.
By taking a positive approach, complaints can be seen as an opportunity to obtain information
and provide a positive service to the customer. In reality, the customer is giving the organization
a second chance. Some actions organizations can take to handle complaints are as follows:
• Investigate customers’ experiences by actively soliciting feedback, both positive and negative,
and then acting on it promptly.
• Develop procedures for complaint resolution that include empowering front-line personnel.
• Analyze complaints, but understand that complaints do not always fit into neat categories.
• Work to identify process and material variations and then eliminate the root cause. “More
inspection” is not corrective action.
• When a survey response is received, a senior manager should contact the customer and strive
to resolve the concern.
• Establish customer satisfaction measures and constantly monitor them.
• Communicate complaint information, as well as the results of all investigations and solutions,
to all people in the organization.
• Provide a monthly complaint report to the quality council for their evaluation and, if needed,
the assignment of process improvement teams.
• Identify customers’ expectations beforehand rather than afterward through complaint
analysis.

Service Quality
Strategies that have produced significant results in production are often harder to implement in
a service environment. Thanks to the teachings of Deming, Juran, and others, significant strides
have been made in manufacturing. The same results have been slower in service organizations
or service activities in manufacturing.
Elements of customer service are:
Organization
 Identify each market segment.
 Write down the requirements.
 Communicate the requirements.
 Organize processes.
 Organize physical spaces.
Customer Care
 Meet the customer’s expectations.
 Get the customer’s point of view.
 Deliver what is promised.
 Make the customer feel valued.
 Respond to all complaints.
 Over-respond to the customer.
 Provide a clean and comfortable customer reception area.
Communication
 Optimize the trade-off between time and personal attention.
 Minimize the number of contact points.
 Provide pleasant, knowledgeable, and enthusiastic employees.
  Write documents in customer-friendly language.
Front-line people
 Hire people who like people.
 Challenge them to develop better methods.
 Give them the authority to solve problems.
 Serve them as internal customers.
 Be sure they are adequately trained.
 Recognize and reward performance.
Leadership
 Lead by example.
 Listen to the front-line people.
 Strive for continuous process improvement
Organization
To ensure the same level of quality for all customers, the organization must record and then
communicate to its employees the directions for all tasks. A service quality handbook should
be created with the description of each service quality standard. Communicating the service
quality standard for each task can be done by formal training, videos, personal coaching, or
meetings. Also, intranet sites can be developed so employees can find answers to commonly-
asked questions and contact people for more information.
Communication
An organization’s communication to its customers must be consistent with its level of service
quality. A customer will become dissatisfied if there is a difference between what has been
advertised and what has been received. An organization communicates to its customers in many
subtle ways. For instance, an organization communicates to its customers even by such means
as an employee’s telephone manners, or an automated voice response system that is fast and
easy for the customer to use. Customer relationships are based on communication. An
organization must listen to its customers and establish a level of trust.
Front-Line People
Customers are the most valuable asset of any company and should not be referred to employees
who have not been properly trained to handle their complaints. Only the best employee is
worthy of a company’s customers. It is best to remember three things about front-line
employees:
1. Hire the best.
2. Develop the best employees into professionals.
3. Motivate the professionals to stay and excel.
Leadership by Example
No quality improvement can succeed without management’s involvement and, more
importantly, commitment. Managers can best show their commitment to service quality by
example. Texas Namplate Co. customer-care personnel, including the company president, are
available to customers 24 hours a day. Every CEO should be required to spend at least four
hours each month behind a service desk. It is hard to understand the customer when you’re
looking down at him from a 43rd floor window.

Translating Needs into Requirements

The Kano model, which is shown in Figure 3, conceptualizes customer requirements. The
model represents three major areas of customer satisfaction.
The first area of customer satisfaction, represented by the diagonal line, represents explicit
requirements. These include written or verbal requirements and are easily identified, expected
to be met, and typically performance related. Satisfying the customer would be relatively
simple if these were the only requirements.
The second area of customer satisfaction represents innovations, as shown by the curved line
in the upper left corner of the figure. A customer’s written instructions are often purposefully
vague to avoid stifling new ideas during conceptualization and product definition. Because they
are unexpected, these creative ideas often excite and delight the customer. These ideas quickly
become expected.
The third and most significant area of customer satisfaction represents unstated or unspoken
requirements, as shown by the curve in the lower right corner of the figure. The customer may
indeed be unaware of these requirements, or they may assume that such requirements will be
automatically supplied. Basic specifications often fail to take real-world manufacturing
requirements into account; many merely are based on industry standards or past practice. These
implied requirements are the hardest to define but prove very costly if ignored. They may be
rediscovered during an after-the-fact analysis of lessons learned.

Fig 3: Kano Model

Customer Retention
Customer retention is more powerful and effective than customer satisfaction. Customer
retention represents the activities that produce the necessary customer satisfaction that creates
customer loyalty, which actually improves the bottom line. Customer satisfaction surveys, focus
groups, interviews, and observations can help determine what customers think of a service or
a product.
However, what people say and think is often different from what they do. Customers may be
delighted with the tropical oils and aromas in a high-priced, well-advertised hair-care product
but still end up buying the generic equivalent. Therefore customer satisfaction should also be
measured by using the hard measures of cash register receipts, market share, the level of
customer retention, and the number of referrals from customers. The better companies have
established a link between customer satisfaction and the bottom line. The analysis identifies
the number of customers and the revenue at risk.
Customer retention moves customer satisfaction to the next level by determining what is truly
important to the customers and making sure that the customer satisfaction system focuses
valuable resources on things that really matter to the customer. Customer retention is the
connection between customer satisfaction and the bottom line.
Likewise, high employee retention has a significant impact on high customer retention. One
way companies can manage customer retention is to pay attention to their present employees
and to who they are hiring.

Fig4: Voice of customer

Employee Involvement
Employee involvement is one approach to improving quality and productivity. Its use is
credited for contributing to the success enjoyed by the Japanese in the world marketplace.
Employee involvement is not a replacement for management nor is it the final word in quality
improvement. It is a means to better meet the organization’s goals for quality and productivity
at all levels of an organization.

Motivation
Maslow’s Hierarchy of Needs
One of the first and most popular motivational theories was developed by Abraham Maslow.
He stated that motivation could best be explained in terms of a hierarchy of needs and that there
were five levels. These levels are survival, security, social, esteem, and self-actualization. They
are shown in Figure 5. Once a given level is satisfied, it can no longer motivate a person.
Level 1 (survival) means food, clothing, and shelter, which is usually provided by a job. In the
workplace, Level 1 needs include proper lighting, heating/air conditioning, ventilation, phone
system, data/voice access, and computer information system.
Level 2 (security) can mean a safe place to work and job security, which are very important to
employees. When the organization demonstrates an interest in the personal well-being of
employees, it is a motivating factor. A threat of losing one’s job certainly does not enhance
motivation.
Level 3 (social) relates to our need to belong. It has been said that cutting someone out of the
group is devastating to that individual. Isolation is an effective punishment. Conversely, giving
an individual the opportunity to be part of the group by feeling important and needed will
motivate that person. If possible, employees should be provided with both formal social areas
such as a cafeteria and conference rooms and informal areas such as water coolers and bulletin
boards.
Level 4 (esteem) relates to pride and self-worth. Everyone, regardless of position or job
assignment, wants to be recognized as a person of value to the organization. Where possible,
employees should be given offices or personal spaces with aesthetics. Business cards,
workspace size, and office protocols also provide employees with a certain level of self-esteem
within an organization.
Level 5 (self-actualization) says that individuals must be given the opportunity to go as far as
their abilities will take them. Many organizations have a policy of promoting from within. It is
true that some employees do not want to move up the corporate ladder, which is understandable.
However, those who do want to move up must know that it is possible

Fig 5 Maslow’s Hierarchy of Needs

Herzberg’s Two-Factor Theory
Frederick Herzberg extended the general work of Maslow by using empirical research to
develop his theory on employee motivation.
He found that people were motivated by recognition, responsibility, achievement,
advancement, and the work itself. These factors were labeled motivators.
In addition, his research showed that bad feelings were associated with low salary, minimal
fringe benefits, poor working conditions, ill-defined organizational policies, and mediocre
technical supervision. These job-related factors were labelled dissatisfiers or hygiene factors,
which implies they are preventable.
Absence of motivating factors does not make employees dissatisfied, but when there are
motivating factors present, they do provide strong levels of motivation that result in good job
performance for the individual and the organization.
In general, dissatisfiers must be taken care of before motivators can be actuated. Herzberg’s
dissatisfiers are roughly equivalent to Maslow’s lower levels, and the motivators are similar to
the upper levels.
Achieving a Motivated Work Force
Concepts to achieve a motivated work force are as follows:
1. Know thyself. Managers must understand their own motivations, strengths, and weaknesses.
This understanding can best be obtained by having peers and employees anonymously appraise
the manager’s performance.
2. Know your employees. Most people like to talk about themselves; therefore, the motivating
manager will ask questions and listen to answers. With a knowledge of the employees’ interests,
the manager can help achieve them within the business context. As the manager learns more
about the employee, he/she can assist the employee in directing their efforts toward satisfying
their goals and well-being. This knowledge will also enable the manager to utilize their
strengths.
3. Establish a positive attitude. A positive action-oriented attitude permeates the work unit.
Managers are responsible for generating attitudes that lead to positive actions. Feedback
should, for the most part (say, 87%), be positive and constructive. Respect and sensitivity
toward others is essential to the development of positive attitudes.
4. Share the goals. A motivated work force needs well-defined goals that address both
individual and organizational needs.
5. Monitor progress. The process of goal-setting should include a road map detailing the
journey with periodic milestones and individual assignments. Managers should periodically
review performance.
6. Develop interesting work. Managers should consider altering the employees’ assignments
by means of job rotation, job enlargement, and job enrichment.
7. Communicate effectively. Effective communication provides employees with knowledge
about their work unit and the organization rather than “grapevine” information.
8. Celebrate success. Recognizing employee achievements is the most powerful tool in the
manager’s toolbox.
Empowerment
Empowerment is an environment in which people have the ability, the confidence, and the
commitment to take the responsibility and ownership to improve the process and initiate the
necessary steps to satisfy customer requirements within well-defined boundaries in order to
achieve organizational values and goals.
In order to create the empowered environment, three conditions are necessary.
1. Everyone must understand the need for change. People fear change. The effective
communication of why the organization needs to change is critical to success. In addition,
people need to understand the role they will play in the change process. Senior management
must understand that people change for their own reasons, not for reasons of the organization..
2. The system needs to change to the new paradigm. The system needs to change to reinforce
and motivate individual and group accomplishments. Individuals and groups must understand
that freedom to act and (sometimes to fail) is not only OK but is encouraged.
3. The organization must enable its employees. Enablement means providing information,
education, and skill. To ask people to change work habits without providing them with the tools
for change only increases resistance to the change process.
Teams
A team is defined as a group of people working together to achieve common objectives or
goals. Teamwork is the cumulative actions of the team during which each member of the team
subordinates his individual interests and opinions to fulfill the objectives or goals of the group.
The objective or goal is a need to accomplish something such as solve a problem, improve a
process, design a refrigerator, plan a conference, audit a process, or please a customer. It needs
to be clearly defined, have milestones set, have resources provided, and use a systematic
approach.
Types of Teams
1. Process improvement team. The members of a process improvement team represent each
operation of the process or sub-process. Usually the scope of the team’s activity is limited to
the work unit. A team of about six to ten members will come from the work unit and, depending
on the location of the sub-process, an external or internal supplier and external or internal
customer would be included on the team. During the course of the team’s life, additional
expertise from other work areas may be added on a permanent or temporary as-needed basis.
The life cycle of this type of team is usually temporary—it is disbanded when the objective has
been obtained. When the targeted process includes many work units or the entire organization,
a cross-functional team may be more appropriate with work unit teams as sub-teams.
2. Cross-functional team. A team of about six to ten members will represent a number of
different functional areas such as engineering, marketing, accounting, production, quality, and
human resources. It may also include the customer and supplier. A design review team is a good
example of a cross-functional team. This type of team is usually temporary. An exception would
be a product support team, which would be permanent and have as an objective to serve a
particular product line, service activity, or a particular customer. This type of team breaks down
functional area boundaries.
3. Natural work teams. This type of team is not voluntary–it is composed of all the members
of the work unit. It differs from quality control circles because a manager is part of the team
and the projects to be improved are selected by management. Some employees may opt not to
work in teams for a variety of reasons, and managers should anticipate this action and be
prepared to help employees become comfortable in the team environment or, alternatively, find
work in another unit that still performs work as individuals. Even though “team work” is
technically feasible, there may be such resistance that its introduction should be delayed until
there has been substantial turnover.
4. Self-directed/self-managed work teams. They are an extension of natural work teams without
the supervisor. Thus, they are the epitome of the empowered organization—they not only do
the work but also manage it. There is wide discretion to organize their work subject to
organizational work flow requirements. There is a team coordinator to liaison with senior
management, that may rotate among members. The team meets daily to plan their activities,
and decisions are usually by consensus. Additional responsibilities may include:
hiring/dismissal, performance evaluation, customer relations, supplier relations,
recognition/reward, and training. The team must have access to business information in order
to plan, control, and improve their processes.
Characteristics of Successful Teams
In order for a team to be effective, it should have certain characteristics, listed below.
1. Sponsor. In order to have effective liaison with the quality council, there should be a sponsor.
Preferably the sponsor is a member of the quality council, thereby providing organizational
support.
2. Team charter. A team charter is a document that defines the team’s mission, boundaries, the
background of the problem, the team’s authority and duties, and resources. It also identifies the
members and their assigned roles–leader, recorder, timekeeper, and facilitator (optional).
Detailed information on roles is given in a later section. The sponsor and the team negotiate
the charter.
3. Team composition. The size of the team should rarely exceed ten people except in the case
of natural work teams or self-directed teams. Larger teams have difficulty maintaining
commitment, and interpersonal aspects become difficult to control. Teams should be diverse
by having members with different skills, perspectives, and potential. Where appropriate,
internal and external customers and suppliers should be included.
4. Training. As the need arises, members should be trained in problem-solving techniques, team
dynamics, and communication skills. A later section discusses training in detail.
5. Ground rules. The team must develop its rules of operation and conduct. There should be
open discussion on what will and will not be tolerated. Periodically the ground rules should be
reviewed and revised when appropriate.
6. Clear objectives. Without clear objectives and goals, the team will have difficulty. In
addition, the criteria for success should be agreed on with management.
7. Accountability. The team is accountable to perform. Periodic status reports should be given
to the quality council. In addition, the team should review its performance to determine possible
team process weaknesses and make improvements.
8. Well-defined decision procedures. Effective, acceptable, and timely decisions have to be
made by the team. Detailed information on decisions is given later in the chapter.
9. Resources. Not only is funding and employee release time for the project important, but also
important is access to information. The team cannot be expected to perform successfully
without the necessary tools.
10. Trust. Management must trust the team to perform the task effectively. There must also be
trust among the members and a belief in each other.
11. Effective problem solving. They are not made on hunches or quick fixes.
12. Open communication. Members actively listen, without interruption, to other members,
speak with clarity and directness, ask questions, and say what they mean.
13. Appropriate leadership. All teams need leadership—whether imposed by the quality
council, or whether someone emerges as a leader figure as the life of the team progresses, or
whether the leadership changes as the team matures.
14. Balanced participation. All members must become involved in the team’s activities by
voicing their opinions, lending their knowledge, and encouraging other members to take part.
15. Cohesiveness. Members should be comfortable working with each other and act as a single
unit, not as individuals or sub-groups.
Team Member Roles
The team leader, who is selected by the quality council, sponsor, or the team itself, has the
following roles.
• Ensures the smooth and effective operation of the team, handling and assigning record
keeping, orchestrating activities, and overseeing preparation of reports and presentations.
• Facilitates the team process, ensures that all members participate during the meetings,
prevents other members from dominating, actively participates when appropriate, guides
without domineering, and uses positive interpersonal behavior.
• Serves as a contact point between the team and the sponsor or quality council.
• Orchestrates the implementation of the changes recommended by the team within
organizational constraints and team boundaries.
The facilitator is not a member of the team; he/she is a neutral assistant and may not be needed
with a mature team. This person does not get involved in the meeting content or evaluation of
the team’s ideas. Roles are as follows:
• Supports the leader in facilitating the team during the initial stages of the team.
• Focuses on the team process; is concerned more with how decisions are made rather than the
decision itself.
• Acts as resource to the team by intervening when necessary to keep the team on track.
• Does not perform activities that the team can do.
• Provides feedback to the team concerning the effectiveness of the team process.
The team recorder, who is selected by the leader or by the team and may be rotated on a periodic
basis, has the following roles:
• Documents the main ideas of the team’s discussion, the issues raised, decisions made, action
items, and future agenda items.
• Presents the documents for the team to review during the meeting and distributes them as
minutes after the meeting in a timely manner.
• Participates as a team member.
The timekeeper, who is selected by the leader or by the team and may be rotated on a periodic
basis, has the following roles:
• Monitors the time to ensure that the team maintains the schedule as determined by the agenda.
• Participates as a team member.
The team member, who is selected by the leader, sponsor, or quality council or is a member of
a natural work team, has the following responsibilities:
• Contributes best, without reservation, by actively participating in meetings and sharing
knowledge, expertise, ideas, and information.
• Respects other people’s contributions—doesn’t criticize, complain, or condemn.
• Listens carefully and asks questions.
• Is enthusiastic—it’s contagious and helps galvanize the entire team.
• Works for consensus on decisions and is prepared to negotiate important points.
• Supports the decisions of the team—badmouthing a decision or a member reduces the
effectiveness of the team
Common Barriers to Team Progress
• Insufficient training. Teams cannot be expected to perform unless they are trained in problem-
solving techniques, group dynamics, and communication skills.
• Incompatible rewards and compensation. In general, organizations make little effort to reward
team performance. Because of a strong focus on individual rewards it is difficult for individuals
to buy into the team concept. Similarly, performance appraisals do not accept input from peers
or team members.
• First-line supervisor resistance. Supervisors are reluctant to give up power, confident that they
can do the work better and faster, are concerned about job security, and are ultimately held
responsible.
• Lack of planning. A lack of common direction or alignment on the use of collaborative efforts,
internal competition, redundancy, and fragmented work processes all prevent team progress.
• Lack of management support. Management must provide the resources and “buy into” the
quality council/sponsor system.
• Access to information systems. Teams need access to organizational information such as
business performance, competitive performance, financial data, and so forth.
• Lack of union support. Organizations need union support for the team to be successful.
• Project scope too large. The team and organization are not clear on what is reasonable, or
management is abdicating its responsibility to guide the team.
• Project objectives are not significant. Management has not defined what role the team will
play in the organization.
• No clear measures of success. The team is not clear about its charter and goals.
• No time to do improvement work. Values and beliefs of the organization are not compatible
with the team’s work. Individual departmental politics interfere with the team’s progress.
Management has not given the team proper resources.
Suggestion System
Suggestion systems are designed to provide the individual with the opportunity to be involved
by contributing to the organization. Most of the ideas for continuous improvement will come
from the team approach.
Stimulating and encouraging employee participation starts the creative process. There are five
ground rules:
1. Be progressive by regularly asking your employees for suggestions. Merely putting up a
suggestion box will not create the necessary motivation.
2. Remove fear by focusing on the process and not on the person. When employees know that
punitive actions will not occur, they are more likely to respond.
3. Simplify the process so it is easy to participate. Stamp out superfluous paperwork, review,
and procedures.
4. Respond quickly to suggestions and within a specific period of time. The evaluation process
must be simple and effective. The response, in writing, has three possible responses—
acceptance, rejection, or referral to a committee for further evaluation. If accepted, a time frame
for implementation should be given; if rejected, the reason for the rejection should be stated;
and if referred to a committee, the evaluation time should be stated.
5. Reward the idea with published recognition so that everyone knows the value of the
contribution.
Recognition and Reward
Recognition is a form of employee motivation in which the organization publicly
acknowledges the positive contributions an individual or team has made to the success of the
organization. This acknowledgment is delivered using verbal and written praise and may
include symbolic items such as certificates and plaques. Reward is something tangible such as
theater tickets, dinner for two, or a cash award to promote desirable behavior. Recognition and
reward go together to form a system for letting people know they are valuable members of the
organization.
People like to be recognized, either as a team or individually. A person’s feeling of
achievement, value to the organization, knowing the organization cares, and having peer
recognition may be more important than any reward. In addition to the plaque or framed
certificate given at a formal banquet or informal pizza party, there are other forms of individual
and team recognition. Other forms of recognition include pictures on the bulletin board, articles
in newsletters or newspapers, letters to families, making a presentation to management, passing
along compliments from others, personal phone calls or notes, placing positive notes in folders,
and increased responsibility. Supervisors can also informally use the power of recognition by
giving on-the-spot praise for a job well done whenever it is earned.
To summarize, an effective recognition and reward system:
1. Serves as a continual reminder that the organization regards quality and productivity as
important.
2. Offers the organization a visible technique to thank high achievers for outstanding
performance.
3. Provides employees a specific goal to work toward. It motivates them to improve the process.
4. Boosts morale in the work environment by creating a healthy sense of competition among
individuals and teams seeking recognition.
Gainsharing
Gainsharing is a financial reward and recognition system that results from improved
organizational performance. It is different than profitsharing, in which the stockholders share
a portion of the year-end profits with salaried and occasionally hourly employees. Gainsharing
is based on the philosophy that people and teamwork are the keys to success. Because
organizational success is dependent on team effort, the team shares in the rewards of success.
Thus, gainsharing is a measurement of organizational productivity and a method to share
productivity gains.
This particular method utilizes labor costs and potential sales income for the calculations and
is based on four-week periods; however, calculations are made on a weekly basis. At the end
of the week, the team performance is calculated based on potential sales income from the
week’s production less rejections and outsourcing costs. Financial data shows that labor costs
are a certain percentage of sales income, and this value multiplied by the income gives the team
goal. Team cost is the sum of all labor costs for the week including fringe benefits. The gain or
loss is the difference between the team cost and the team goal. For example
Potential income = $ 535,000
Labor cost as a percent of sales = 27%
Team goal = $ 5,35000 * 0.27 = $ 144,450
Actual team cost = $ 138,365
Gain = $ 144,450 – 138,365 = $ 6,085
Performance Appraisal
The purpose of performance appraisals is to let employees know how they are doing, and
provide a basis for promotions, salary increases, counseling, and other purposes related to an
employee’s future. There should be a good relationship between the employee and the
appraiser. Employees should be made aware of the appraisal process, what is evaluated, and
how often. Employees should be told how they are doing on a continuous basis, not just at
appraisal time. The appraisal should point out strengths and weaknesses as well as how
performance can be improved. Common appraisal formats are shown in Table 6

Table 6
Rather than scrap performance appraisals, a number of practitioners have suggested that the
performance appraisal system be improved. Some improvement suggestions are:
1. Use rating scales that have few rating categories. It is difficult to differentiate the middle
range of performers (approximately 67%), whereas it is relatively easy to rate the 10 to 20% at
each end. Therefore, scales should be limited to between 3 and 5.
2. Require work team or group evaluations that are at least equal in emphasis to individual-
focused evaluations. The increased interdependence of tasks associated with TQM in the
workplace dictates that team performance be utilized. This action will encourage team
members to help, support, and cooperate with each other.
3. Require more frequent performance reviews where such reviews will have a dominant
emphasis on future performance planning. Work team and individual performance data should
be collected and reviewed with an evaluation of results and lessons learned. It may be necessary
to have two reviews—one immediately after completion of the task and one when the
performance cycle of the task allows evaluation of results. More frequent reviews with
emphasis on improvement is much less threatening than the annual appraisal.
4. Promotion decisions should be made by an independent administrative process that draws
on current job information and potential for the new job. Placing too much weight on current
performance in the selection process can force well-intentioned appraisers to make a poor
decision. For example, the highest performing teller in a bank may not be the best person to be
promoted to loan officer.
5. Include indexes of external customer satisfaction in the appraisal process. In order to
accomplish this process, the customers and their requirements will need to be identified,
performance metrics determined using a rating scale, and the improvement process initiated.
Evaluation will be based on the change in the metrics once the baseline has been established.
6. Use peer and subordinate feedback as an index of internal customer satisfaction. Initiation
of this activity would be similar to the previous item.
7. Include evaluation for process improvement in addition to results. Process behavior tends
to be more within the person’s control. One of the basic concepts of TQM is continuous process
improvement; therefore, if this concept is to be achieved, it must be appraised. There is
frequently a lag between process improvement and the results from that improvement
 Unit-3
Continuous Process Improvement:
The Juran Trilogy
Process improvement involves planning. One of the best approaches is the one developed by Dr.
Joseph Juran.It has three components: planning, control, and improvement, and is referred to as the
Juran Trilogy. It is based loosely on financial processes such as bud-geting (planning), expense
measurement (control), and cost reduction.

Planning

The planning component begins with external customers. Once quality goals are established,
marketing determines the external customers, and all organizational personnel (managers, members
of multifunctional teams, or work groups) determine the internal customers. External customers may
be quite numerous, as is the case of a bank supply organization, where they include tellers, financial
planners, loan officers, auditors, managers, and the bank’s customers. Where there are numerous
customers, a Pareto diagram might be useful to determine the vital few.
Once the customers are determined, their needs are discovered. This activity requires the customers
to state needs in their own words and from their own viewpoint; however, real needs may differ from
stated needs.
For example, a stated need may be an automobile, whereas the real need is transportation or a status
symbol.
In addition, internal customers may not wish to voice real needs out of fear of the consequences. One
might discover these needs by (1) being a user of the product or service, (2) communicating with
customers through product or service satisfaction and dissatisfaction information, or (3) simulation in
the laboratory. Because customer needs are stated from their viewpoint, they should be translated to
requirements that are understandable to the organization and its suppliers.
The next step in the planning process is to develop product and/or service features that respond to
customer needs, meet the needs of the organization and its suppliers, are competitive, and optimize
the costs of all stakeholders.
This step typically is performed by a multifunctional team. Quality function deployment (Chapter 10),
Taguchi’s quality engineering, and quality by design are some of the approaches that can be used. It
is important that the design team, rather than a single department, approve the final design and that
the team be composed of all functional areas within an organization as well as customers and
suppliers.
The fourth step is to develop the processes able to produce the product and/or ser-vice features.
Some of this planning would have occurred during the previous step. This step is also performed by a
multifunctional team with a liaison to the design team. Activities include determining the necessary
facilities, training, and operation, control, and maintenance of the facilities. Of particular concern will
be the “scaling up” from the laboratory or prototype environment to the real process environment.
Additional activities include process capability evaluation and process control type and location.
Transferring plans to operations is the final step of the planning process. Once again, a
multifunctional team with a liaison to the other teams is used. When training is necessary, it should be
performed by members of the process planning team. Process validation is necessary to ensure, with
a high degree of assurance, that a process will consistently produce a product or service meeting
requirements. Positrol and process certification, discussed later in the chapter, are excellent
techniques to use to help validate the process.
Control
Control is used by operating forces to help meet the product, process, and service requirements. It
uses the
feedback loop and consists of the following steps:
1. Determine items/subjects to be controlled and their units of measure.
2. Set goals for the controls and determine what sensors need to be put in place to measure the
product,process, or service.
3. Measure actual performance.
4. Compare actual performance to goals.
5. Act on the difference.

Improvement
The third part of the trilogy aims to attain levels of performance that are significantly higher than
current levels.
Process improvements begin with the establishment of an effective infrastructure such as the quality
council. Two of the duties of the council are to identify the improvement projects and establish the
project teams with a project owner. In addition, the quality council needs to provide the teams with the
resources to determine the causes, create solutions, and establish controls to hold the gains. The
problem-solving method described in a later section may be applied to improve the process, while the
quality council is the driver that ensures that improvement is continuous and never ending. Process
improvement can be incremental or breakthrough.
Juran provides a distinction between sporadic waste and chronic waste. The sporadic waste can be
identified and corrected through quality control. The chronic waste requires an improvement process.
As a solution is found through the improvement process, lessons learned are brought back to the
quality planning process so that new goals for the organization may be established.

Improvement Strategies 4
There are four primary improvement strategies—repair, refinement, renovation, and reinvention.
Choosing the right strategy for the right situation is critical. It is also true that proper integration of the
strategies will produce never-ending improvement.

Repair
This strategy is simple—anything broken must be fixed so that it functions as designed. There are two
levels to this strategy. If a customer receives a damaged product, a quick fix is required. This level is
a temporary or short-term measure. Although short-term measures shore up the problem, they should
not become permanent.

Fig. Juran Trilogy

The second level occurs when an individual or team identifies and eliminates the root cause(s) of the
problem
and effects a permanent solution. It is important to note that the repair strategy does not make the
process
better than the original design.

Refinement
This strategy involves activities that continually improve a process that is not broken. Improvements to
processes, products, and services are accomplished on an incremental basis. Refinement improves
efficiency and effectiveness. It should become an integral part of every employee’s job. Both
individuals and teams can use this strategy. Typically it relies on doing things just a bit quicker, better,
easier, or with less waste. This is the concept behind Kaizen to be discussed later in the chapter. The
change may be so gradual that there is no appearance of change. The primary benefit of gradual
change is that it produces little resistance from employees.
However, because the change is so gradual, management may not recognize and reward the affected
employees. Also, minor changes may not be documented or properly communicated.
Organizational programs—such as process improvement teams, suggestion systems, and
empowerment— are combinations of repair and refinement. They provide the mechanisms for
activities aimed at making these two strategies a part of the daily work life.
Renovation
This strategy results in major or breakthrough improvements. Although the resulting product, service,
process, or activity might often appear to be different from the original, it is basically the same.
Innovation and technological advancements are key factors in this approach. For example, the
process of drilling a hole was originally done by hand with a cranking mechanism; however, with the
advent of the electric motor, the electric drill was born. The electric drill has been continually refined
by improved bits, chucks, and materials.
More recently, another renovation occurred that was brought about by the development of
rechargeable batteries.
The rechargeable electric drill is basically the same as the old hand drill. Renovation is more costly
than the previous strategies and is usually undertaken by teams rather than individuals.

Reinvention
Reinvention is the most demanding improvement strategy. It is preceded by the feeling that the
current approach will never satisfy customer requirements. A new product, ser-vice, process, or
activity is developed using teams based on a complete understanding of the customer’s requirements
and expectations. Reinvention or reengineering begins by imagining that the previous condition does
not exist—in other words, a clean sheet of paper. Then the team uses in-depth knowledge of the
customer’s requirements and expectations and
invents a new product, service, process, or activity. For example, the process of drilling holes using
lasers or water jets was a reinvention.
Reinvention might also be desirable to maintain organization vitality or competitive advantage. An
organization should use this strategy sparingly because of resistance to change and the fact that any
new product, service, process, or activity will probably need to have the “bugs” removed by repair,
refinement, and renovation.

Additional Comments
The repair and refinement strategies require that all employees have the freedom to solve problems
and make incremental improvements in their jobs. Repair and refinement improvements are almost
immediate with very little cost.
As previously stated, renovation and reinvention are effective in making break-through improvements;
however, they usually are more costly, take longer to accomplish, and have a greater risk of failure.

The PDSA Cycle

The four steps in the cycle are exactly as stated. First, plan carefully what is to be done. Next, carry
out the plan (do it). Third, study the results—did the plan work as intended, or were the results
different? Finally, act on the results by identifying what worked as planned and what didn’t. Using the
knowledge learned, develop an improved plan and repeat the cycle. The PDSA cycle is a simple
adaptation of the more elaborate problem-solving method discussed in the next section.

Problem-Solving Method
Process improvement achieves the greatest results when it operates within the framework of the
problem solving method. In the initial stages of a program, quick results are frequently obtained
because the solutions are obvious or an individual has a brilliant idea. However, in the long term, a
systematic approach will yield the greatest benefits.
The problem-solving method (also called the scientific method) has many variations depending, to
some extent, on the use; however, they are all similar. There are seven phases, Also shown is the
relationship to the PDSA cycle. The phases are integrated because each phase is dependent upon
the previous phase. Continuous process improvement is the objective, and these phases are the
framework to achieve that objective.

Phase 1: Identify the Opportunity

The objective of this phase is to identify and prioritize opportunities for improvement. It consists of
three parts: identify the problem, form the team (if one is not in existence) and define the scope.
Problem identification answers the question, “What are the problems?” The answer leads to those
problems that have the greatest potential for improvement and have the greatest need for solution.
Problems can be identified from a variety of inputs, such as the following:
• Pareto analysis of repetitive external alarm signals, such as field failures, complaints, returns, and
others
• Pareto analysis of repetitive internal alarm signals (for example, scrap, rework, sorting, and the
100% test).

Continuous Process Improvement Cycle

• Proposals from key insiders (managers, supervisors, professionals, and union stewards).
• Proposals from suggestion schemes.
• Field study of users’ needs.
• Data on performance of competitors (from users and from laboratory tests).
• Comments of key people outside the organization (customers, suppliers, journalists, and critics).
• Findings and comments of government regulators and independent laboratories.
• Customer surveys.
• Employee surveys.
• Brainstorming by work groups.
Problems identified provide opportunities for improvement. For a condition to qualify as a problem, it
must meet the following three criteria:
• Performance varies from an established standard.
• Deviation from the perception and the facts.
• The cause is unknown; if we know the cause, there is no problem.

Phase 2: Analyze the Current Process

The objective of this phase is to understand the process and how it is currently performed. Key
activities are
to define process boundaries, outputs and customers, inputs and suppliers, and process flow;
determine levels
of customer satisfaction and measurements needed; gather data; and identify root causes.
The first step is for the team to develop a process flow diagram (see Chapter 15). Aflow diagram
translates
complex work into an easily-understood graphic description. This activity is an “eye-opening”
experience for
the team, because it is rare that all members of the team understand the entire process.
Next, the target performance measures (see Chapter 6) are defined. Measurement is fundamental to
meaningful
process improvements. If something cannot be measured, it cannot be improved. There is an old
saying
that what gets measured gets done. The team will determine if the measurements needed to
understand
and improve the process are presently being used; if new ones are needed, the team will:
• Establish performance measures with respect to customer requirements.
• Determine data needed to manage the process.
• Establish regular feedback with customers and suppliers.
• Establish measures for quality/cost/timelines of inputs and outputs.
Once the target performance measures are established, the team can collect all available data and
information.
If these data are not enough, then additional new information is obtained. Gathering data (1) helps
confirm that a problem exists, (2) enables the team to work with facts, (3) makes it possible to
establish measurement
criteria for baseline, and (4) enables the team to measure the effectiveness of an implemented
solution. It is important to collect only needed data and to get the right data for the problem. The team
should
develop a plan that includes input from internal and external customers and ensures the plan answers
the
following questions:
1. What problem or operation do we want to learn about?
2. What are the data used for?
3. How many data are needed?
4. What conclusions can be drawn from the collected data?
5. What action should be taken as a result of the conclusion?

Phase 3: Develop the Optimal Solution

This phase has the objective of establishing potential and feasible solutions and recommending the
best solution to improve the process. Once all the information is available, the project team begins its
search for possible solutions. More than one solution is frequently required to remedy a situation.
Sometimes the solutions are quite evident from a cursory analysis of the data.
In this phase, creativity plays the major role, and brainstorming (see Chapter 15) is the principal
technique. Brainstorming on possible solutions requires not only a knowledge of the problem but also
innovation and creativity.

There are three types of creativity: (1) create new processes, (2) combine different processes, or (3)
modify the existing process. The first type is innovation in its highest form, such as the invention of the
transistor. Combining two or more processes is a synthesis activity to create a better process. It is a
unique combination of what already exists. This type of creativity relies heavily on benchmarking.
Modification involves altering a process that already exists so that it does a better job. It succeeds
when managers utilize the experience, education, and energy of empowered work groups or project
teams. There is not a distinct line between the three types—they overlap.
Creativity is the unique quality that separates mankind from the rest of the animal kingdom. Most of
the problems that cause inefficiency and ineffectiveness in organizations are simple problems. There
is a vast pool of creative potential available to solve these problems. Quality is greatly improved
because of the finding and fixing of a large number of problems, and morale is greatly increased
because it is enormously satisfying to be allowed to create.

Phase 4: Implement Changes

Once the best solution is selected, it can be implemented. This phase has the objective of preparing
the implementation
plan, obtaining approval, and implementing the process improvements.
Although the project team usually has some authority to institute remedial action, more often than not
the approval of the quality council or other appropriate authority is required. If such approval is
needed, a written and/or oral report is given.
The contents of the implementation plan report must fully describe
• Why will it be done?
• How will it be done?
• When will it be done?
• Who will do it?
• Where will it be done?

Answers to these questions will designate required actions, assign responsibility, and establish
implementation milestones. The length of the report is determined by the complexity of the change.
Simple changes may require only an oral report, whereas other changes require a detailed, written
report.
After approval by the quality council, it is desirable to obtain the advice and consent of departments,
functional areas, teams, and individuals that may be affected by the change. A presentation to these
groups will help gain support from those involved in the process and provide an opportunity for
feedback with improvement suggestions.

Phase 5: Study the Results

This phase has the objective of monitoring and evaluating the change by tracking and studying the
effectiveness of the improvement efforts through data collection and review of progress. It is vital to
institutionalize meaningful change and ensure ongoing measurement and evaluation efforts to
achieve continuous improvement.
The team should meet periodically during this phase to evaluate the results to see that the problem
has been solved or if fine-tuning is required. In addition, the team will want to see if any unforeseen
problems have developed as a result of the changes. If the team is not satisfied, then some of the
phases will need to be repeated.

Phase 6: Standardize the Solution

Once the team is satisfied with the change, it must be institutionalized by positive control of the
process, process certification, and operator certification. Positrol (positive control) assures that
important variables are kept under control. It specifies the what, who, how, where, and when of the
process and is an updating of the monitoring activity. Standardizing the solution prevents
“backsliding.”

Phase 7: Plan for the Future

This phase has the objective of achieving improved levels of process performance. Regardless of
how successful initial improvement efforts are, the improvement process continues. It is important to
remember that TQM addresses the quality of management as well as the management of quality.
Everyone in the organization is involved in a systematic, long-term endeavor to constantly improve
quality by developing processes that are customer oriented, flexible, and responsive.
A key activity is to conduct regularly scheduled reviews of progress by the quality council and/or work
group. Management must establish the systems to identify areas for future improvement and to track
performance with respect to internal and external customers. They must also track changing customer
requirements. Continuous improvement means not only being satisfied with doing a good job or
process but also striving to improve that job or process. It is accomplished by incorporating process
measurement and team problem solving in all work activities. TQM tools and techniques are used to
improve quality, delivery, and cost. Organizations must continuously strive for excellence by reducing
complexity, variation, and out-of-control processes.

Kaizen
Kaizen is a Japanese word for the philosophy that defines management’s role in continuously
encouraging and implementing small improvements involving everyone. It is the process of
continuous improvement in
small increments that make the process more—efficient, effective, under control, and adaptable.
Improvements are usually accomplished at little or no expense, without sophisticated techniques or
expensive equipment. It focuses on simplification by breaking down complex processes into their sub-
processes and then improving them.
The Kaizen improvement focuses on the use of:13
1. Value-added and non-value-added work activities.
2. Muda, which refers to the seven classes of waste—over-production, delay, transportation,
processing, inventory, wasted motion, and defective parts.
3. Principles of motion study and the use of cell technology.
4. Principles of materials handling and use of one-piece flow.
5. Documentation of standard operating procedures.
6. The five S’s for workplace organization, which are five Japanese words that mean proper
arrangement (seiko), orderliness (seiton), personal cleanliness (seiketso), cleanup (seiso), and
discipline (shitsuke).
7. Visual management by means of visual displays that everyone in the plant can use for better
communications.
8. Just-in-time principles to produce only the units in the right quantities, at the right time, and with the
right resources.
9. Poka-yoke to prevent or detect errors.
10. Team dynamics, which include problem solving, communication skills, and conflict resolution.

Six-Sigma

Six Sigma is a term used to define various techniques and management tools designed to make
business processes more efficient and effective. It provides statistical tools to eliminate defects,
identify the cause of the error, and reduce the possibilities of error. Thus, Six Sigma creates an
environment of continuous process improvement, enabling businesses to provide better products and
services to customers. It was developed by Motorola, Inc. in 1986.

Six Sigma can be applied to any process in any industry to establish a management system for
identifying errors and eliminating them. It provides methods to improve the efficiency of business
structure and quality of processes, enhancing the profitability of the business.
The term “Six Sigma” is derived from the bell curve in statistics, in which sigma represents the
standard deviation from the center. Hence, a process with six sigma will achieve an extremely low
defect rate. The failure of a business process or product is regarded as a defect. When a process
produces less than 3.4 defects for one million chances, it is considered efficient.
Six Sigma Principles
There are five main principles of Six Sigma:
1. Customer focus
The main objective is to maximize the benefits for customers. Hence, a business must understand the
needs of their customers and the drivers of sales. It requires establishing quality standards according
to the market or customer demands.
2. Assess the value chain and find the problem
Outline the steps of a process to find out unwanted areas and gather related data. Define goals for
data collection, purposes for data gathering, and expected insights. Verify that the data is assisting in
achieving the objectives, whether more information is needed to be collected, or if data cleansing is
required. Find out the problem and its root cause.
3. Eliminate defects and outliers
After the identification of the problem, make appropriate modifications in the process to eliminate
defects. Eliminate any activity in the given process that does not contribute to the customer value. If
the value chain is unable to reveal the problem area, various tools are used to find out the problem
areas and outliers. Eliminating the outliers and defects removes the bottlenecks in a given process.
4. Involve stakeholders
A structured process should be adopted where all stakeholders collaborate and contribute to finding
solutions to complex issues. The team needs to achieve proficiency in the methodologies and
principles applied. Hence, specialized knowledge and training are required to lower project failure
risks and ensure optimal performance of the processes.
5. Flexible and responsive system
Whenever an inefficient or faulty process is eliminated, the employee approach and work practices
need to be changed. A flexible and responsive environment to the changes in processes can lead to
the efficient implementation of the projects.
The departments involved should be capable of adapting easily to the change. Companies that
periodically examine the data and make appropriate changes to their processes may achieve a
competitive advantage.
5S concepts
5S is a workplace organisation method of decluttering the surrounding visual space to prevent
confusion and increase efficiency. In both Japanese and English, 5S denotes the acronym of the five
steps starting with the letter S. Seiri (Sort), Seiton (Set in Order), Seiso (Shine), Seiketsu
(Standardise), and Shitsuke (Sustain).

Sort (Seiri)
The first step involves sorting through all the items in the workspace and identifying what is necessary
and what is not. This process helps eliminate clutter, waste, and unnecessary items that can hinder
productivity and efficiency.
Example: In a manufacturing plant, workers may sort through their workstations and remove any
obsolete tools, broken equipment, or excess inventory that is no longer needed. This creates more
space and eliminates potential safety hazards caused by clutter.
Set in Order (Seiton)
After sorting, the next step is to organise and arrange the remaining essential items to promote
efficiency and easy access. Items should be labelled and stored in designated locations, making it
easy to find and return them when needed.
Example: In a hospital setting, nurses may organise medical supplies and equipment logically based
on frequency of use or type of procedure. Frequently used items are placed within easy reach, while
less frequently used items are stored in designated areas. Clear labelling and visual cues help ensure
that everything has a proper place.
Shine (Seiso)
The third step focuses on keeping the workspace clean, organised, and well-maintained. Regular
cleaning and inspection processes are established to ensure that the workspace remains in optimal
condition.
Example: In an office environment, employees may be responsible for cleaning their desks and
shared spaces regularly. This includes dusting, wiping surfaces, and properly disposing trash.
Maintenance checks can also be performed on equipment and furniture to identify potential issues.
Standardise (Seiketsu)
This step involves establishing standardised procedures and visual cues to ensure that the first three
S's (Sort, Set in Order, and Shine) are consistently maintained. This could include creating checklists,
colour-coding systems, or visual aids like floor markings or shadow boards.
Example: In a warehouse setting, standardized procedures could include guidelines for properly
storing and stacking inventory, colour-coded zones for different product categories, and visual floor
markings indicating where equipment should be parked or stored.
Sustain (Shitsuke)
The final step is about sustaining the 5S system and ensuring that it becomes a habit and part of the
organisational culture. This involves continuous training, audits, and reinforcement to maintain the
gains achieved through the previous steps.
Example: In a manufacturing facility, regular 5S audits could be conducted to assess compliance with
the established standards. Employees may receive ongoing training and awareness campaigns to
reinforce the importance of the 5S principles. Additionally, recognition and incentive programs could
be implemented to encourage and reward 5S adherence.
Benefits of 5S
Implementing the 5S methodology in the work area offers numerous benefits for organisations.:
Improved productivity and efficiency
By eliminating clutter and organising the workspace, employees can find tools and materials quickly,
reducing time spent searching and improving overall productivity.
Enhanced safety measures
A clean and organised workspace reduces the risk of accidents, injuries, and potential hazards,
improving workplace safety.
Waste reduction and cost savings
By eliminating unnecessary items and optimizing space utilization, organisations can reduce waste
and associated costs

Statistical process control

One of the best technical tools for improving product and service quality is statistical process control
(SPC).
There are seven basic techniques. Since the first four techniques are not really statistical, the word
statistical is somewhat of a misnomer. Furthermore, this technical tool not only controls the process
but has the capability to improve it as well.

Pareto Diagram

Alfredo Pareto (1848–1923) conducted extensive studies of the distribution of wealth in Europe. He
found that there were a few people with a lot of money and many people with little money. This
unequal distribution of wealth became an integral part of economic theory. Dr. Joseph Juran
recognized this concept as a universal that could be applied to many fields. He coined the phrases
vital few and useful many.
A Pareto diagram is a graph that ranks data classifications in descending order from left to right,
In this case, the data classifications are types of coating machines. Other possible data classifications
are problems, complaints, causes, types of nonconformities, and so forth. The vital few are on the
left, and the useful many are on the right. It is sometimes necessary to combine some of the useful
many into
one classification called “other”. When this category is used, it is placed on the far right.

The vertical scale is dollars (or frequency), and the percent of each category can be placed above the
column.
In this case, Pareto diagrams were constructed for both frequency and dollars. As can be seen from
the figure, machine 35 has the greatest number of nonconformities, but machine 51 has the greatest
dollar value.
Pareto diagrams can be distinguished from histograms (to be discussed) by the fact that the
horizontal scale of a Pareto diagram is categorical, whereas the scale for the histogram is numerical.
Pareto diagrams are used to identify the most important problems. Usually, 75% of the total results
from 25% of the items. This fact is shown in the figure, where coating machines 35 and 51 account for
about 75% of the total.
Actually, the most important items could be identified by listing them in descending order. However,
the graph has the advantage of providing a visual impact, showing those vital few characteristics that
need attention. Resources are then directed to take the necessary corrective action.
Process Flow Diagram

For many products and services, it may be useful to construct a process flow diagram. Figure shows
a flow diagram for the order entry activity of a make-to-order company that manufactures gasoline
filling station hose nozzles. These diagrams show the flow of the product or service as it moves
through the various processing operations. The diagram makes it easy to visualize the entire system,
identify potential trouble spots, and locate control activities. It answers the question, “Who is the next
customer?” Improvements can be accomplished by changing, reducing, combining, or eliminating
steps.
Standardized symbols are used by industrial engineers; however, they are not necessary for problem
solving. The symbols used in the figure should be sufficient.

Cause-and-Effect Diagram
A cause-and-effect (C&E) diagram is a picture composed of lines and symbols designed to represent
a meaningful relationship between an effect and its causes. It was developed by Dr. Kaoru Ishikawa
in 1943 and is sometimes referred to as an Ishikawa diagram or a fishbone diagram because of its
shape.
C&E diagrams are used to investigate either a “bad” effect and to take action to correct the causes or
a “good” effect and to learn those causes that are responsible.

Check Sheets
The main purpose of check sheets is to ensure that the data is collected carefully and accurately by
operating personnel. Data should be collected in such a manner that it can be quickly and easily used
and analyzed. The form of the check sheet is individualized for each situation and is designed by the
project team. Figure shows a check sheet for paint nonconformities for bicycles.
Histogram

The first “statistical” SPC technique is the histogram. It describes the variation in the process, as
illustrated by Figure. The histogram graphically estimates the process capability and, if desired, the
relationship to the specifications and the nominal (target). It also suggests the shape of the population
and indicates if there are any gaps in the data.
In industry, business, and government the mass of data that have been collected is voluminous. Even
one item, such as the number of daily billing errors of a large bank, can represent such a mass of
data that it can be more confusing than helpful. For example, consider the data shown in Table.
Clearly these data, in this form, are difficult to use and are not effective in describing the data’s
characteristics. Some means of summarizing the data are needed to show what value the data tend
to cluster about and how the data are dispersed or spread out. Two techniques are needed to
accomplish this summarization of data—graphical and analytical.

Grouped Data
When the number of categories becomes large, the data are grouped into cells. In general, the
number of cells should be between 5 and 20. Broad guidelines are as follows: Use 5 to 9 cells when
the number of observations is less than 100; use 8 to 17 cells when the number of observations is
between 100 and 500; and use 15 to 20 cells when the number of observations is greater than 500.
To provide flexibility, the number of cells in the guidelines are overlapping.
The data were collected using the check sheet for temperature. The interval is the distance between
adjacent cell midpoints. Cell boundaries are halfway between the cell midpoints. If an odd cell interval
is chosen, which in this case is five degrees, the midpoint value will be to the same degree of
accuracy as the ungrouped data. This situation is desirable, because all values in the cell take on the
midpoint value when any additional calculations are made.

Statistical Fundamentals
Before a description of the next SPC tool, it is necessary to have a background in statistical
fundamentals. Statistics is defined as the science that deals with the collection, tabulation, analysis,
interpretation, and presentation of quantitative data. Each division is dependent on the accuracy and
completeness of the preceding one. Data may be collected by a technician measuring the tensile
strength of a plastic part or by an operator using a check sheet. It may be tabulated by simple paper-
and-pencil techniques or by the use of a computer.
Analysis may involve a cursory visual examination or exhaustive calculations. The final results are
interpreted and presented to assist in the making of decisions concerning quality.
Normal Curve
Although there are as many different populations as there are conditions, they can be described by a
few general types. One type of population that is quite common is called the normal curve, or
Gaussian distribution.
The normal curve is a symmetrical, unimodal, bell-shaped distribution with the mean, median, and
mode having the same value. A curve of the normal population for the resistance in ohms of an
electrical device with population mean, , of 90 and population standard deviation, , of 2 is
shown in Figure 15-10. The interval between dotted lines is equal to one standard deviation, .

Benchmarking

Benchmarking is a systematic method by which organizations can measure themselves against the
best industry practices. It promotes superior performance by providing an organized framework
through which organizations learn how the “best in class” do things, understand how these best
practices differ from their own, and implement change to close the gap. The essence of benchmarking
is the process of borrowing ideas and adapting them to gain competitive advantage. It is a tool for
continuous improvement.

Benchmarking is the systematic search for best practices, innovative ideas, and highly effective
operating procedures.
Benchmarking considers the experience of others and uses it. Indeed,- it is the common-sense
proposition to learn from others what they do right and then imitate it to avoid reinventing the wheel.
Benchmarking is not new and indeed has been around for a long time. In fact, in the 1800s, Francis
Lowell, a New England colonist, studied British textile mills and imported many ideas along with
improvements he made for the burgeoning American textile mills.

Reasons to Benchmark

Benchmarking is a tool to achieve business and competitive objectives. It is powerful and extremely
effective when used for the right reasons and aligned with organization strategy. It is not a panacea
that can replace all other quality efforts or management processes. Organizations must still decide
which markets to serve and determine the strengths that will enable them to gain competitive
advantage. Benchmarking is one tool to help organizations develop those strengths and reduce
weaknesses.
By definition, benchmarking requires an external orientation, which is critical in a world where the
competitor can easily be on the other side of the globe. An external outlook greatly reduces the
chance of being caught unaware by competition. Benchmarking can notify the organization if it has
fallen behind the competition or failed to take advantage of important operating improvements
developed elsewhere. In short, benchmarking can inspire managers (and organizations) to compete.
Process
Organizations that benchmark, adapt the process to best fit their own needs and culture. Although the
number of steps in the process may vary from organization to organization, the following six steps
contain the core techniques.
1. Decide what to benchmark.
2. Understand current performance.
3. Plan.
4. Study others.
5. Learn from the data.
6. Use the findings.

Deciding What to Benchmark

Benchmarking can be applied to virtually any business or production process. Improvement to best-in-
class levels in some areas will contribute greatly to market and financial success, whereas
improvement in other areas will have no significant impact. Most organizations have a strategy that
defines how the firm wants to position itself and compete in the marketplace. This strategy is usually
expressed in terms of mission and vision statements.
Supporting these statements is a set of critical activities, which the organization must do successfully
to realize its vision. They are often referred to as critical success factors. Critical processes are
usually made of a number of sub-processes. In general, when deciding what to benchmark, it is best
to begin by thinking about the mission and critical success factors.

Understanding Current Performance

To compare practices to outside benchmarks, it is first necessary to thoroughly understand and
document the current process. It is essential that the organization’s performance is well understood.
Several techniques, such as flow diagrams and cause-and-effect diagrams, and understanding.
Attention must be paid to inputs and outputs. Careful questioning is necessary to identify
circumstances that result in exceptions to the normal routine. Exceptions commonly consume a good
deal of the process resources; however, process participants may not think to mention them during
interviews.

Planning
Once internal processes are understood and documented, it is possible to make decisions about how
to conduct the study. If not already selected, a benchmarking team should be chosen. The team
should decide what type of benchmarking to perform, what type of data are to be collected, and the
method of collection.
Organizations that are candidates to serve as the benchmark need to be identified. Finally, timetables
should be agreed upon for each of the benchmarking tasks and the desired output from the study.

Studying Others
Benchmarking studies look for two types of information: a description of how best-in-class processes
are practiced and the measurable results of these practices. In seeking this information, bench
markers can use internal sources, data in the public domain, original research, or—most likely—a
combination of sources. Considerations include the cost and time involved in gathering data and the
need for appropriate data quality and accuracy. When most people think of benchmarking, they
generally think of conducting original research through site visits and interviews.

Learning from the Data

Learning from the data collected in a benchmarking study involves answering a series of questions:
Is there a gap between the organization’s performance and the performance of the best-in-class
organizations?
What is the gap? How much is it?
Why is there a gap? What does the best-in-class do differently that is better?
If best-in-class practices were adopted, what would be the resulting improvement?

Benchmarking studies can reveal three different outcomes. External processes may be significantly
better than internal processes (a negative gap). Process performance may be approximately equal
(parity). Or the internal process may be better than that found in external organizations (positive gap).
Negative gaps call for a major improvement effort. Parity requires further investigation to determine if
improvement opportunities exist. It may be that when the process is broken down into sub-processes,
some aspects are superior and represent significant improvement opportunities. Finally, the finding of
a positive gap should result in recognition for the internal process.

Using the Findings

When a benchmarking study reveals a negative gap in performance, the objective is to change the
process to close the gap. Benchmarking is a waste of time if change does not occur as a result. To
effect change, the findings must be communicated to the people within the organization who can
enable improvement. The findings must translate to goals and objectives, and action plans must be
developed to implement new processes.

Quality Management Systems

The International Organization for Standardization (ISO) was founded in 1946 in Geneva,
Switzerland, where it is still based. Its mandate is to promote the development of international
standards to facilitate the exchangeof goods and services worldwide. ISO is composed of more than
90 member countries. The United States representativeis the American National Standards Institute
(ANSI).

The ISO Technical Committee (TC) 176 developed a series of international standards for quality
systems, which were first published in 1987. The standards (ISO 9000, 9001, and 9004) were
intended to be advisory and were developed for use in two-party contractual situations and internal
auditing. However, with their adoption by the European Community (EC) and a worldwide emphasis
on quality and economic competitiveness, the standards have become universally accepted.

Benefits of ISO Registration

There are various reasons for implementing a quality system that conforms to an ISO standard. The
primary reason is that customers or marketing are suggesting or demanding compliance to a quality
system. Other reasons are needed improvement in processes or systems and a desire for global
deployment of products and services.1 As more and more organizations become registered, they are
requiring their subcontractors or suppliers to be registered, creating a snowball effect. Consequently,
in order to maintain or increase market share, many organizations are finding they must be in
conformance with an ISO standard. Internal benefits that can be received from developing and
implementing a well-documented quality system can far outweigh the external pressures.

ISO 9000 Series of Standards

The ISO 9000 Series of Standards is generic in scope. By design, the series can be tailored to fit any
organization’s needs, whether it is large or small, a manufacturer or a service organization. It can be
applied to construction, engineering, health care, legal, and other professional services as well as the
manufacturing of anything from nuts and bolts to spacecraft. Its purpose is to unify quality terms and
definitions used by industrialized nations and use those terms to demonstrate a supplier’s capability of
controlling its processes.

QMS
The organization shall establish, document, implement, and maintain a QMS and continually improve
its effectiveness. The organization shall (a) determine the processes needed for QMS and their
applications throughout the organization, (b) determine their sequence and interaction, (c) determine
criteria and methods for effective operation and control of these processes, (d) ensure the availability
of resources and information necessary to support and monitor these processes, (e) monitor,
measure wherever applicable, and analyze these processes, and (f ) implement actions to achieve
planned results and continual improvement of these processes. Outsourced processes that affect the
quality of the product shall be identified and included in the system.

Quality Function Deployment (QFD)

Quality function deployment is a team-based management tool in which customer expectations are
used to drive the product development process. Conflicting characteristics or requirements are
identified early in the QFD process and can be resolved before production.
Organizations today use market research to decide what to produce to satisfy customer requirements.
Some customer requirements adversely affect others, and customers often cannot explain their
expectations. Confusion and misinterpretation are also a problem while a product moves from
marketing to design to engineering to manufacturing. This activity is where the voice of the customer
becomes lost and the voice of the organization adversely enters the product design. Instead of
working on what the customer expects, work is concentrated on fixing what the customer does not
want. In other words, it is not productive to improve something the customer did not want initially. By
implementing QFD, an organization is guaranteed to implement the voice of the customer in the final
product or service.

The QFD Team

When an organization decides to implement QFD, the project manager and team members need to
be able to commit a significant amount of time to it, especially in the early stages. The priorities of the
projects need to be defined and told to all departments within the organization so team members can
budget their time accordingly.
Also, the scope of the project must be clearly defined so questions about why the team was formed
do not arise. One of the most important tools in the QFD process is communication.
There are two types of teams—designing a new product or improving an existing product. Teams are
composed of members from marketing, design, quality, finance, and production. The existing product
team usually has fewer members, because the QFD process will only need to be modified. Time and
inter-team communication are two very important things that each team must utilize to their fullest
potential. Using time effectively is the essential resource in getting the project done on schedule.
Using inter-team communication to its fullest extent will alleviate unforeseen problems and make the
project run smoothly.

Benefits of QFD
Quality function deployment was originally implemented to reduce start-up costs. Organizations using
QFD have reported a reduced product development time. For example, U.S. car manufacturers of the
late 1980s and early 1990s needed an average of five years to put a product on the market, from
drawing board to showroom, whereas Honda put a new product on the market in two and a half years
and Toyota did it in three years. Both organizations credit this reduced time to the use of QFD.

 Improves Customer Satisfaction

 Reduces Implementation Time
 Promotes Teamwork
 Provides Documentation

The Voice of the Customer

Because QFD concentrates on customer expectations and needs, a considerable amount of effort is
put in to research to determine customer expectations. This process increases the initial planning
stage of the project definition phase in the development cycle. But the result is a total reduction of the
overall cycle time in bringing to the market a product that satisfies the customer.

QFD Process

The QFD matrix (house of quality) is the basis for all future matrices needed for the QFD method.
Although each house of quality chart now contains a large amount of information, it is still necessary
to refine the technical descriptors further until an actionable level of detail is achieved. Often, more
than one matrix will be needed, depending on the complexity of the project.
Failure Mode and Effect Analysis (FMEA)
Failure Mode and Effect Analysis is an analytical technique (a paper test) that combines the
technology and experience of people in identifying foreseeable failure modes of a product or process
and planning for its elimination.
In other words, FMEA can be explained as a group of activities intended to
 Recognize and evaluate the potential failure of a product or process and its effects.
 Identify actions that could eliminate or reduce the chance of potential failures.
 Document the process.
FMEA is a “before-the-event” action requiring a team effort to easily and inexpensively alleviate
changes in design and production.

Process FMEA is used to identify potential process failure modes by ranking failures and helping to
establish priorities according to the relative impact on the internal or external customer. Implementing
process FMEA helps to identify potential manufacturing or assembly causes in order to establish
controls for occurrence reduction and detection. Furthermore, design and process FMEA document
the results of the design and production processes, respectively.

Intent of FMEA
Continually measuring the reliability of a machine, product, or process is an essential part of Total
Quality Management. When acquiring new machines, creating a new product, or even modifying an
existing product, it is always necessary to determine the reliability of the product or process. One of
the most powerful methods available for measuring the reliability of the process or product is FMEA.
As previously stated, FMEA is an analytical technique that combines the technology and experience
of people in identifying foreseeable failure modes of a product or process and planning for its
elimination. This method can be implemented in both the design and the process areas and basically
involves the identification of the potential failure modes and the effect of those on both the internal
and the external customer.

Design (product) FMEA or process FMEA can provide the following benefits:
1. Having a systematic review of component failure modes to ensure that any failure produces
minimal damage to the product or process.
2. Determining the effects that any failure will have on other items in the product or process and their
functions.
3. Determining those parts of the product or the process whose failure will have critical effects on
product or process operation (those producing the greatest damage), and which failure modes will
generate these damaging effects.
4. Calculating the probabilities of failures in assemblies, sub-assemblies, products, and processes
from the individual failure probabilities of their components and the arrangements in which they have
been designed. Since components have more than one failure mode, the probability that one will fail
at all is the sum of the total probability of the failure modes.
5. Establishing test program requirements to determine failure mode and rate data not available from
other sources.
6. Establishing test program requirements to verify empirical reliability predictions.
7. Providing input data for trade-off studies to establish the effectiveness of changes in a proposed
product or process or to determine the probable effect of modifications to an existing product or
process.
8. Determining how the high-failure-rate components of a product or process can be adapted for
higher reliability components, redundancies, or both.

Product Liability
The responsibility of manufacturers, distributors and sellers of products to the public, to deliver
products free of defects which harm an individual or numerous persons and to make good on that
responsibility if their products are defective.

3 Main Areas of Product Liability

 Behavior and knowledge of the user
 Environment where the product is used
 Design flaws
 The first two are difficult to mitigate
 Design flaws is the area that TQM has the greatest control over

Product Safety Law

 Consumer Product Safety Act 1972

 Protects consumers from unreasonable risk
 Establishes uniform safety standards
 Research and investigation into cause and prevention of related deaths, injury, or illness
 Only covers products used in or around household and schools and for recreation
 Exemptions
 Cars, boats, planes, food, drugs, tobacco, and poison

Product Liability Law

 Tort of negligence
 Tort of strict liability
 Contract law of sales or warranty

Tort of Negligence

 Classic theory of products liability

 Must prove manufacturer was careless
 Focuses on manufacturer’s conduct
 Varies from state to state
 Most states going away from allowing product liability under negligence

Contract Law of Sales or Warranty

 Express Warranty
o Material statement made voluntarily by a manufacturer or merchant in sales
brochures or sales talk to induce sales
 Implied Warranty
o Implies that the product is reasonably fit for the general purpose for which the product
was designed
o Cannot be waived; required by law
Total Productive Maintenance
Good maintenance is fundamental to a productive manufacturing system; try running a production line
with faulty equipment. Total Productive Maintenance (TPM) is keeping the current plant and
equipment at its highest productive level through cooperation of all areas of the organization.
Generally, the first task is to break down the traditional barriers between maintenance and production
personnel so they are working together.
Individuals working together without regard to organizational structure, using their skills and ingenuity,
have a common objective—peak performance or total productivity.
This approach does not mean that such basic techniques as predictive and preventative maintenance
are not used; they are essential to building a foundation for a successful TPM environment. Predictive
maintenance is the process of using data and statistical tools to determine when a piece of equipment
will fail, and preventative maintenance is the process of periodically performing activities such as
lubrication on the equipment to keep it running.

The overall goals of TPM are:

1. Maintaining and improving equipment capacity.
2. Maintaining equipment for life.
3. Using support from all areas of the operation.
4. Encouraging input from all employees.
5. Using teams for continuous improvement.

The Plan
The first activity in any assessment of performance is to determine the current operating parameters.

Total Productive Maintenance (TPM) is an extension of the Total Quality Management (TQM)
philosophy
to the maintenance function. Seven basic steps get an organization started toward TPM:
1. Management learns the new philosophy.
2. Management promotes the new philosophy.
3. Training is funded and developed for everyone in the organization.
4. Areas of needed improvement are identified.
5. Performance goals are formulated.
6. An implementation plan is developed.
7. Autonomous work groups are established.

Learning the New Philosophy

One of the most difficult things for senior management to deal with is change. They need to learn
about TPM and how it will affect their operations. There are many successful examples; there are also
many organizations that have tried various techniques to improve performance and failed.
Benchmarking with a successful organization will provide valuable information.
Any cultural change takes a special dedication, by management to provide long-term, top to bottom
support for improvement. The easy approach is to accept today’s good performance numbers and
say, “Why change?” The answer is to gain a competitive edge and to increase profits. Many of an
organization’s competitors are most likely improving and will be far ahead of other non-changing
organizations in the future. There also exists, in management, the concept that somehow because “I
am the chief, I know more than those who work here.”
Promoting the Philosophy
Senior management must spend significant time in promoting the system. They must sell the idea and
let the employees know that they are totally committed to its success. Like TQM or any other major
change in an organization, there must be total commitment from the top. If the belief in the new
philosophy and commitment are not there, then positive results will not happen. Too often lip service
is given to a “new idea.” This action is usually brought on by a belief that the new system will solve
some immediate problems and lead to an immediate return on investment. A long-term commitment
to the new philosophy is required. It has been proven by other organizations to be a better way of
doing business.
Training
Teach the philosophy to managers at all levels. Begin with senior management, and work down to
first-line supervisors.
Don’t just teach the HOW: also teach the WHY. Senior management must spend time learning about
and understanding the ramifications of applying this philosophy to their organization. Is senior
management dedicated to the long-term commitment required to achieve positive results? Some
managers may need to be replaced or take early retirement because they will not change their way of
dealing with people. Those managers who readily respond to the new philosophy should also be
identified.

Improvement Needs
There are usually some machines that seem to be on the verge of breaking down or require an
excessive amount of maintenance. Employees who work with the equipment on a daily basis are
better able to identify these conditions than anyone else in the organization. A good first step is to let
the operators and maintenance technicians tell management which machines and systems need the
most attention. An implementation team of operators and technicians to coordinate this process is
essential. This action will build credibility and start the organization towards TPM.

Total Quality Management Excellence Model( TQMEX)

To achieve excellence, companies must develop a corporate culture of treating people as their most
important asset and provide a consistent level of high quality products and services in every market in
which they operate. Such an environment has supported the wide acceptance of Total Quality
Management (TQM) which emerged recently as a new, challenging, marketable philosophy. It
involves three spheres of changes in an organisation -- people, technology and structure.
There is also a need for a systematic approach so that each element of TQMEX can be bonded
together smoothly. Oakland [1989] originated the idea of a 3-cornerstone model. The proposed 4-
pillar model brings the customer's requirement into the system. This makes the approach to TQM
more complete. The additional pillar -- satisfying customers -- is vital because it explicitly addresses
customers requirements. Without it TQM would have no objective.

The Logic of TQMEX

In order to have a systematic approach to TQM, it is necessary to develop a conceptual model.
Generally, a model is a sequence of steps arranged logically to serve as a guideline for
implementation of a process in order to achieve the ultimate goal. The model should be simple, logical
and yet comprehensive enough for TQM implementation. It also has to sustain the changes in
business environment of the new era. The Model also reflects teachings of the contemporary
quality gurus. The idea was to develop a universally applicable step-by-step guideline by including
recognised practices in TQM:
Japanese 5-S Practice (5-S)
Business Process Re-engineering (BPR)
Quality Control Circles (QCCs)
ISO 9001/2 Quality Management System (ISO)
Total Productive Maintenance (TPM)
As Osada pointed out, 5-S is the key to total quality environment. Therefore, it should be the first step.
BPR is concerned with re-defining and designing your business process in order to meet the needs of
your customers effectively. It is more concerned with the business objectives and systems, and
should follow as Step 2. QCCs are concerned with encouraging the employees to participate in
continuous improvement and guide them through. They improve human resources capability to
achieve the business objectives. Therefore, this should be Step 3. ISO 9000 is to develop a quality
management system based on the good practices in the previous three steps. TPM is a result of
applying 5-S to equipment based on a sound quality management system. In fact ISO 9001 requires
procedures for process control and inspection and testing equipment which are part of TPM.
Therefore TPM should be implemented in Step 5.
If the above five steps have been implemented successfully, the organisation is already very close
towards achieving TQM.
TQMEX is a sequential model which is easy to remember and simple to implement. This is in line with
the quality principle of Keep It Short and Simple (KISS), although it is not simple to make a model
simple!
Companies starting to implement TQM should follow TQMEX step-by-step. Companies which have
already gone through some degree of improvement using some of the steps should review what have
not been done and do it as their next step of improvement. In order to maximise your benefits from
TQMEX, you have to start early too.
 Quality Management Tools
Forced Field Analysis
This analysis is used to identify the forces and factors that may influence the problem or goal. It helps
an organization to better understand promoting or driving and restraining or inhibiting forces so that
the positives can be reinforced and the negatives reduced or eliminated. The procedure is to define
the objective, determine criteria for evaluating the effectiveness of the improvement action,
brainstorm the forces that promote and inhibit achieving the goal, prioritize the forces from greatest
to least, and take action to strengthen the promoting forces and weaken the inhibiting forces. An
example will illustrate the tool. The benefits are the determination of the positives and negatives of a
situation, encouraging people to agree and prioritize the competing forces, and identify the root
causes.

Nominal Group Technique

This technique provides for issue/idea input from everyone on the team and for effective decisions.
An example will illustrate the technique. Let’s assume that the team wants to decide which problem
to work on. Everyone writes on a piece of paper the problem they think is most important. The papers
are collected, and all problems are listed on a flip chart. Then each member of the team uses another
piece of paper to rank the problems from least important to most important. The rankings are given a
numerical value starting at 1 for least important and continuing to the most important. Points for each
problem are totalled, and the item with the highest number of points is considered to be the most
important.

Affinity Diagram

This diagram allows the team to creatively generate a large number of issues/ideas and then logically
group them for problem understanding and possible breakthrough solution. The procedure is to state
the issue in a full sentence, brainstorm using short sentences on self-adhesive notes, post them for the
team to see, sort ideas into logical groups, and create concise descriptive headings for each group.
Figure 2 illustrates the technique. Large groups should be divided into smaller groups with appropriate
headings. Notes that stand alone could become headers or placed in a miscellaneous category. Affinity
diagrams encourage team creativity, break down barriers, facilitate breakthroughs, and stimulate
ownership of the process.
Interrelationship Digraph

The Interrelationship Diagraph (ID) clarifies the interrelationship of many factors of a complex
situation. It allows the team to classify the cause-and-effect relationships among all the factors so that
the key drivers and outcomes can be used to solve the problem. The procedure is somewhat more
complicated than the previous tools; thus, it will be itemized.

1. The team should agree on the issue or problem statement.

2. All of the ideas or issues from other techniques or from brainstorming should be laid out, preferably
in a circle as shown in Figure 3(a).

3. Start with the first issue, “Lack of respect for others” (A), and evaluate the cause-and-effect
relationship with “Lack of awareness of impact” (B). In this situation, Issue B is stronger than Issue A;
therefore, the arrow is drawn from Issue B to Issue A as shown in Figure 3(c). Each issue in the circle is
compared to Issue A as shown in Figure 3(c), (d), (e), and (f). Only Issues B and E have a relationship
with Issue A. The first iteration is complete.

4. The second iteration is to compare Issue B with Issues C, D, E, and F. The third iteration is to compare
Issue C with Issues D, E, and F. The fourth iteration is to compare Issue D with Issues E and F. The fifth
iteration is to compare Issue E with Issue F.

5. The entire diagram should be reviewed and revised where necessary. It is a good idea to obtain
information from other people on upstream and downstream processes.

6. The diagram is completed by tallying the incoming and outgoing arrows and placing this information
below the box. Figure 4(d) shows a completed diagram. Issue B is the “driver” because it has zero
incoming arrows and five outgoing arrows. It is usually the root cause. The issue with the highest
incoming arrows is Issue E. It is a meaningful measure of success.

A relationship diagram allows a team to identify root causes from subjective data, systematically
explores cause-and-effect relationships, encourages members to think multidirectionally, and develops
team harmony and effectiveness

Fig 3 Interrelationship Diagram for First Iteration

Fig 4 Completed Interrelationship Diagram

Tree Diagram
This tool is used to reduce any broad objective into increasing levels of detail in order to achieve the
objective. The procedure is to first choose an action-oriented objective statement from the
interrelationship diagram, affinity diagram, brainstorming, team mission statement, and so forth.
Second, using brainstorming, choose the major headings as shown in Figure 5 under Means.

The third step is to generate the next level by analysing the major headings. Ask, “What needs to be
addressed to achieve the objective?” Repeat this question at each level. Three levels below the
objective are usually sufficient to complete the diagram and make appropriate assignments. The
diagram should be reviewed to determine if these actions will give the results anticipated or if
something has been missed. The tree diagram encourages team members to think creatively, makes
large projects manageable, and generates a problem-solving atmosphere.
Fig 5 Tree Diagram

Matrix Diagram

The matrix diagram allows individuals or teams to identify, analyze, and rate the relationship among
two or more variables. Data are presented in table form and can be objective or subjective, which can
be given symbols with or without numerical values. Quality function deployment (QFD),is an
outstanding example of the use of the matrix diagram. There are at least five standard formats: L-
shaped (2 variables), T-shaped (3 variables), Y-shaped (3 variables), C-shaped (3 variables), and X-
shaped (4 variables). Our discussion will be limited to the L-shaped format, which is the most
common.2
Figure 6 illustrates a matrix diagram for using the seven management and planning tools. The
procedure for the diagram is for the team to first select the factors affecting a successful plan. Next
select the appropriate format, which in this case is the L-shaped diagram. That step is followed by
determining the relationship symbols. Any symbols can be adopted, provided the diagram contains a
legend as shown in the bottom of the figure. Numerical values are sometimes associated with the
symbol as we previously did with QFD. The last step is to complete the matrix by analyzing each cell
and inserting the appropriate symbol.

The matrix diagram clearly shows the relationship of the two variables. It encourages the team to think
in terms of relationships, their strength, and any patterns.
Fig 6 Matrix Diagram for Uses of the Seven Management Tools

Process Decision Program Chart

Programs to achieve particular objectives do not always go according to plan, and unexpected
developments may have serious consequences. The process decision program chart (PDPC) avoids
surprises and identifies possible countermeasures. Figure 7 illustrates the PDPC

The procedure starts with the team stating the objective, which is to plan a successful conference. That
activity is followed by the first level, which is the conference activities of registration, presentations,
and facilities. Only the presentation activity is illustrated. In some cases a second level of detailed
activities may be used. Next, the team brainstorms to determine what could go wrong with the
conference, and these are shown as the “what-if” level. Countermeasures are brainstormed and placed
in a balloon in the last level. The last step is to evaluate the countermeasures and select the optimal
ones by placing an O underneath. Place an X under those that are rejected.

The example has used a graphical format. PDPC can also use an outline format with the activities listed.
The probability, in percent, that a “what-if” will occur can be included in the box. Countermeasures
should be plausible. PDPC should be used when the task is new or unique, complex, or potential failure
has great risks. This tool encourages team members to think about what can happen to a process and
how countermeasures can be taken. It provides the mechanism to effectively minimize uncertainty in
an implementation plan.

Figure 7 PDPC for Conference Presentation

Activity Network Diagram

This tool goes by a number of different names and deviations, such as program evaluation and review
technique (PERT), critical path method (CPM), arrow diagram, and activity on node (AON). It allows
the team to schedule a project efficiently. The diagram shows completion times, simultaneous tasks,
and critical activity path. Given below is the procedure to follow:

1. The team brainstorms or documents all the tasks to complete a project. These tasks are recorded
on selfadhesive notes so all members can see them.

2. The first task is located and placed on the extreme left of a large view work surface, as shown in
Figure 8(a).

3. Any tasks that can be done simultaneously are placed below, as shown in Figure 8(b).

4. Repeat Steps 2 and 3 until all tasks are placed in their correct sequence, as illustrated in Figure 8(c).
Note: Because of space limitations, not all of the tasks are shown.

5. Number each task and draw connecting arrows. Determine the task completion time and post it in
the lower left box. Completion times are recorded in hours, days, or weeks.

6. Determine the critical path by completing the four remaining boxes in each task. As shown below,
these boxes are used for the earliest start time (ES), earliest finish (EF), latest start (LS), and latest finish
(LF).

The ES for Task 1 is 0, and the EF is 4 weeks later using the equation EF = ES + T; the ES for Task 2 is 4
weeks, which is the same as the EF of Task 1, and the EF of Task 2 is 4 + 3 = 7. This process is repeated
for Tasks 4 and 5, which gives a total time of 29 weeks through the completion of the internal audit. If
the project is to stay on schedule, the LS and LF for each of these tasks must equal the ES and EF,
respectively. These values can be calculated by working backwards—subtracting the task time. They
are shown in Figure 8(d).

Figure 8 Activity Network Diagram

What is DMAIC?

Define, Measure, Analyze, Improve, and Control is a DMAIC acronym. The process includes five
phases: defining the problem, improving the activity, identifying the opportunities for improvement,
setting project goals, and meeting the needs of the customer (internal and external).
DMAIC refers to a cycle of process improvement that is data-driven and aims at improving,
optimizing, and stabilizing business processes and designs. A Six Sigma project is driven by the
DMAIC improvement cycle.

When we look into the definition of DMAIC, it is a five-phase strategy for improving a wide variety of
organizational processes, whether it’s software development, manufacturing, or some other process.
While it’s associated with Six Sigma, this strategy can also be applied to lean and other process-
improvement strategies. DMAIC is a data-driven problem-solving technique designed to identify and
address inefficiencies in a process, which improves its outcomes and makes these improvements
more predictable.

The acronym stands for the five phases — Define, Measure, Analyze, Improve, and Control, and it is
pronounced “duh-may-ik.”

The Five Phases of DMAIC

The DMAIC process follows five key phases, which are intended to lay the groundwork for your
process improvement, chart goals, track progress, and analyze results. The five phases (and an
explanation of each) are:

1. Define

During this phase, we select the most critical and impactful opportunities for improvement. This
phase is also about mapping the process, focus, scope, and the ultimate goal as well as
understanding how the problem affects all stakeholders. The way to jumpstart a DMAIC cycle is by
crafting the problem statement.

The other critical steps at this stage are:

Identify the opportunities with high potential for improvement

Outline the scope of the project

Create a value stream map (VSM) to document every step in the process

Develop a voice of the customer table (VOCT) to pinpoint the customer needs

Identify all stakeholders

Estimate project impact and completion

Identify and document business opportunity

Draw out other related processes

A successful Define phase helps you move forward with clear, well-defined objectives and timeline
for project completion.
2. Measure

The Measure phase is where baselines are drawn to assess the performance of a given process.
Without having sound benchmarks for comparison, it’s difficult to track improvements. Hence, at this
stage, we:

Develop the data collection methods to be used to measure success

Recognize input, processes, and output indicators

Collect and examine current state data

Outline the failure modes and effects analysis

Implement process capability analysis

The use of visual management tools such as control charts, bar charts, and run charts etc. can help
you achieve better results at this stage

3. Analyze

In this phase, your goal is to identify and test the underlying causes of problems to make sure that
improvement takes place from deep down where the problems stem from.

The critical steps at this stage include:

Performing a complete root cause analysis (RCA), which covers a broad range of techniques and
methodologies, including change analysis, events and causal factor analysis, and the Kepner-Tregoe
Problem Solving and Decision Making model.

Doing failure mode and effects analysis (FMEA) to identify all possible problem areas, inefficiencies,
flaws, defects, and shortcomings.

Getting a visual representation of the variations within a given process using a multi-vari chart.

Implementing process control

Developing a plan for improvement

After this phase, you will be able to capture and document all opportunities for improvement
successfully, and your plan of action will start taking shape.

4. Improve

With the analysis done and the data in front of you, now is the time to start making the
improvements.
This stage includes the following activities:

Brainstorm and put forth solution ideas

Develop a design of experiments (DOE) to determine the expected benefits of a solution

Revise process maps and plans according to the data collected in the previous stage

Outline a test solution and plan

Implement Kaizen events to improve the process

Inform all stakeholders about the solution

The use of improvement management software is helpful at this stage. This helps to move the
process seamlessly, achieve cross-functional collaboration and makes it easier for the management
and executives to follow the progress of a given DMAIC project.

5. Control

After changes are in place and are successfully addressing the problems to improve your operations,
it’s time to bring the process under control to ensure its long-term effectiveness.

This is where you:

Identify and document the new work standard

Develop a quality control plan which ensures the entire team is working with the same techniques
and metrics

Confirm reduction in failures due to the targeted cause

Use statistical process control (SPC) to monitor process execution and identify any issues that arise

Determine additional improvements, if needed, to meet process objectives

Streamline process improvements using the “Five S’s” of Lean

Integrate, document, and communicate the lessons learned

After the Control phase, you can quantify the complete impact of process changes in terms of cost
reduction, efficiency, quality improvement, productivity increase, and customer satisfaction.

Design for Lean Six Sigma

Design for Six Sigma (DFSS) is a methodology of improvement that helps businesses create new
products or services at a high level of quality. The technique aims to meet the needs of customers
and utilize the company’s capability as much as possible during the original development of a
process. This reduces the need to redesign and reintroduce a product multiple times, which creates
excessive waste.

The main objective of DFSS is to design things right the first time with minimized defects or
variations. Rather than the traditional Six Sigma method of improving an existing product or process
to reduce defects, DFSS utilizes the five stages of Define, Measure, Analyze, Design, Verify (also
known as DMADV) to determine the needs of customers and then design a solution to meet those
needs. Additional work is conducted up front to ensure the company has a full grasp of its customers’
needs and expectations, which requires an extensive amount of data and analyzation.

The 5 Phases of a Project

The DMADV approach is widely used to implement new products or processes. It’s especially
beneficial for supply chain operations due to its basis in data and comprehensive analysis, and the
ability it provides to determine success early on. The five phases of a Design for Six Sigma project are
as follows:

DFSS
Define. This initial phase determines everything from the project’s purpose, schedule, and budget to
how the results will be communicated. It also details any risks associated and establishes quantifiable
goals.

Measure. During this phase, customer expectations and needs are translated into quantifiable design
requirements. Methods such as surveys, site visits, and consumer focus groups are utilized to obtain
customer information.

Analyze. Once the design requirements are established, multiple designs are created. Assessment
tools evaluate how well each concept meets customer needs and its potential for success.
Design. The best design is selected, and detailed production work begins. The technology required,
materials, manufacturing process and location, risks, and packaging are all evaluated through
analysis tools and computer simulation. This phase is finished once a final design has been decided
upon and a validation plan is developed.

Verify. Validation testing is conducted to assess whether the design does actually meet performance
and customer requirements. Often, a prototype or pilot build is created before the actual product
launch. Whether the design is successful or not, project documentation is completed and results are
shared.

SIX SIGMA TOOLS & TECHNIQUES

Quality Glossary Definition: Six Sigma tools

Six Sigma tools are defined as the problem-solving tools used to support Six Sigma and other process
improvement efforts. The Six Sigma expert uses qualitative and quantitative techniques to drive
process improvement. Although the tools themselves are not unique, the way they are applied and
integrated as part of a system is. Some of the statistical and graphical tools commonly used in
improvement projects are:

DMAIC: The define, measure, analyze, improve, and control process is a data-driven quality strategy
used to improve processes. It is an integral part of a Six Sigma initiative, but can also be implemented
as a standalone quality improvement procedure or as part of other process improvement initiatives
such as lean.

5S: The Five S's of lean is a methodology that results in a workplace that is clean, uncluttered, safe,
and well organized to help reduce waste and optimize productivity. It's designed to help build a
quality work environment, both physically and mentally. The 5S philosophy applies in any work area
suited for visual control and lean production.

Seven wastes: A core principle of lean—reducing and eliminating waste—the seven wastes are
overproduction ahead of demand; waiting for the next process, worker, material, or equipment;
unnecessary transport of materials; over-processing of parts due to poor tool and product design;
inventories more than the absolute minimum; unnecessary movement by employees during the
course of their work; and production of defective parts.

Value stream mapping: Value stream mapping (VSM) is a pencil and paper tool used in two stages.
First, follow a product’s production path from beginning to end and draw a visual representation of
every process in the material and information flows. Second, draw a future state map of how value
should flow. The most important map is the future state map.

Flow: Flow is the progressive achievement of tasks along the value stream so a product proceeds
from design to launch, order to delivery, and raw to finished materials in the hands of the customer
with no stoppages, scrap, or backflows.

Visual workplace: A visual workplace is defined by devices designed to visually share information
about organizational operations in order to make human and machine performance safer, more
exact, more repeatable, and more reliable.

Voice of the customer: Quality function deployment (QFD) begins with an exploration and discovery
of customer needs. The first step is to capture the voice of the customer (VOC) and then create a
voice of the customer table (VOCT). Common sources can include sales and technical trip reports,
warranty claims, user support forums or help lines, and social media.

Design development
The design phase deals with various issues such as functional requirements, development of
alternate business processes, evaluation of available options, and selection of the most
appropriate business process, based on CTQs critical-to-quality factors that were identified
during the first phase. The design phase involves the formulation of concept design,
identification of probable risk elements, identification of design parameters by utilizing
advanced simulation tools and formulation of procurement plans and manufacturing plans.
Some of the main Six Sigma tools used in this phase include smart simple design, risk
assessment, FMEA, engineering analysis, materials selection software, simulation, DOE or
design of experiments, systems engineering and analysis tools.
Deliverables:
Lock down the final concept design

Identify potential risks and mitigation strategies using FMEA

For each technical requirement, identify specific design parameters
Develop a plan for any needed raw material or component acquisition
Manufacturing plan
Use statistical tools such as DOE (design of experiments) to determine the relationship
between CTQs and your technical requirements
Tools:

Risk assessment
FMEA
Engineering analysis
Material vendor analysis
Simulation

DOE (design of experiments)

Systems engineering
Analysis tools
Design Optimization
This phase utilizes CTQs for assessing the tolerance level of a selected business process, with
the help of advanced simulation tools. This phase is used for predicting the performance
capability of a business process, optimizing existing design and developing alternative design
elements. This phase may involve assessment of process capabilities, optimization of design
parameters, development of design for robust performance and reliability, error proofing and
establishment of tolerance measurement objectives. Some of the most common tools used in
this phase include manufacturing database and flow back tools, design for manufacturability,
process capability models, robust design, Monte Carlo methods, tolerance measurement tools
and Six Sigma tools.
Deliverables:

Assess process capabilities to meet critical design parameters and CTQs

Design for robust performance and reliability under a variety of different conditions
Poka Yoke or error-proofing
Compute tolerance limits
Optimize your sigma level and development cost
Tools:

Design for manufacturing (DFM)

Process capability (Cpk, Ppk, Cp, Pp)
Robust design
Monte Carlo simulations (Crystal Ball)
Tolerancing

Six Sigma tools

Design verification

Changes to a business process design can be made in this phase. Some of the main steps in
this phase include prototype test and validation, assessment of performance, failure modes,
reliability and risks, design iteration and final phase review.

Deliverables:
 Prototype test, pilot, and validation of whether design requirements can be met
 Assess performance, failure modes, reliability, and risks
 Design and redesign revisions as needed
 Final project review, sign-off, and a control plan

Tools:
 Accelerated testing
 Reliability engineering
 FMEA
 Control plan