National Workshop on “Enabling MSME to be Competitive through Quality Tools” WHAT IS QUALITY …... WORD OF MOUTH COMMUNICATIONS PERSONAL NEEDS PAST EXPERIENCE EXPECTED QUALITY MSIL approach for supplier upgradation through cluster activity GAP * PERCEIVED QUALITY - By Dr. K. Kumar CUSTOMER EXTERNAL COMMUNICATION TO CUSTOMER DELIVERED QUALITY PROVIDER Training Support Consultancy Copyright ©. All rights reserved. WHAT IS QUALITY …... Quality is meeting or exceeding customer’s perceived needs. What is Quality ? To some people Quality means that they have met whole range of internal specifications, rules and standards. Any definition of Quality must include the customer, the voice of authority. The voice above all other voices must be the voice of customer. Training Support Consultancy Copyright ©. All rights reserved. Kano Model Training Support Consultancy Copyright ©. All rights reserved. TOTAL QUALITY MANAGEMENT TQM IS BOTH A PHILOSOPHY AND A SET OF GUIDING PRINCIPLES THAT FORM THE FOUNDATION FOR A CHANGING & CONTINUOUSLY IMPROVING ORGANISATION 6 Training Support Consultancy Copyright ©. All rights reserved. Training Support Consultancy Copyright ©. All rights reserved. 1 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Principle of total quality ELEMENTS OF CUSTOMER SATISFACTION Principle 1 • Proactively and systematically understand current and PRODUCT DESIGN QUALITY CONFORMANCE COST EFFECTIVE COST WORLD CLASS QUALITY FOR CORPORATE SURVIVAL PRICE EFFECTIVE RIGHT PLACE RIGHT TIME DELIVERY RIGHT AMOUNT ASSURANCE OF QUALITY SERVICE FULL CUSTOMER SATISFACTION / DELIGHT Proactively Companies must anticipate customer’s needs. • IN USE SAFETY future customer needs (External and Internal) • Customer complaints analysis is critical, it can only be done after the complaint is resolved. IN PRODUCTION MORALE EVERYONE CARES 10 Living Our CI Values Principle 2 My input My Supplier I Am Responsible for Quality As a Good Customer Requirement And feedback I will 2) 3) Agree on and document my requirements with my supplier Return defective inputs to my supplier promptly and tactfully Feed back input quality data to my supplier My output My Customer As a Good Process Owner or User As a Good Supplier I Will: 1) 1) Systematically it must be ensured that the process used to resolve the complaints is valid, objective and statistically reliable. 2) 3) Learn and apply the tools of quality and teach others. Continuously improve my process-reduce defects, cycle time and know benchmarks Document and display my process, defect levels, and CI projects I Will: 1) 2) 3) Requirement And feedback Proactively and systematically measure the customer’s perception of how well your organization and your direct competitors satisfy these needs. Robert Galvin, former chairman and CEO of Motorola cited, “Only by measuring something it can be truly known.” In order to be useful, customer satisfaction measurements must be both objective and reliable. To ensure objectivity, a number of companies use a third party to assess customer satisfaction. Reliability means that for any situation the measurement process will yield the same, or nearly the same result. Understand my customer requirements and agree on and document my deliverables Reduce defects and variations in my output Measure my output quality from my customer’s perspective 11 Principle 3 Focus efforts on improving the processes or methods that satisfy customer needs. Better financial results such as cost reduction and higher profits are the outcome of process improvements. Total Quality approach would be to improve the process by streamlining it, reducing errors, shortening process, cycle time and eliminating activities that don’t affect Customer Satisfaction. To improve quality, reduce process variation. Variation is present in all activities and processes. Although they might be made or delivered according to the same design, there will be differences in parts, products and services. In many instances, variation is within an acceptable tolerance band. Principles of Quality 9 12 2 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Principle 5 Variation •Develop robust design for products and processes. •Robust design are not sensitive to variations of production processes, components, raw materials, and customer usage. •The traditional engineering approach is to design a target (target value, target function, target region) then reduce variation around the target. •The new approach developed by Genichi Taguchi, is to design for robust function, then adjust the target. 13 16 Taguchi Loss Function Principle 4 causes of process variation are ever present and vary randomly within some statistical distribution. Process is stable when common causes are present. •Special causes of variation are those outside the common causes that are ever present. The variation is due to specific assignable causes that are non random occurrences. Special causes are sporadic and not predictable. LSL USL A L = k (y – T)2 0 y T- L Loss ($) •Common Loss ($) L T Step function T+ USL LSL T = Target k = Quality Loss Function y T- A stable process in control (Natural or common cause) Upper process limit Customer Satisfaction T T+ Quadratic function 17 Principle 6 Variation Mean Lower process limit Time An unstable process out of control(Special Cause) Upper process limit Customer Satisfaction y = Performance Characteristic A 0 14 L = Cost Incurred as quality Deviates from the target Mean Lower process limit •Use the scientific method for solving problems and improving processes. •This means that organizations must manage by fact and not by assertion. Dr. W. Edwards Deming has said “In God we trust, but from all others we demand data.” •Managing by fact really means applying the scientific process, which is described very clearly by the Plan-Do-Check-Act (PDCA) Cycle Time 18 3 National Workshop on “Enabling MSME to be Competitive through Quality Tools” PDCA Cycle Objective Data Cont. Inside & Outside Company Never pass on known or suspected bad quality Abroad Method the next person in the process. Education Follow 3-NAI activity Implementation to Do not receive Consumer Do not make Checking Do not send defects to the next process Corrective action Product 19 22 Principle 7 When there are problems, and expectations haven’t been met, look to the system. Don’t blame people. Instead of finger pointing, management should focus on the system. Instead of asking “Who did it?” or “Who didn’t do it.?” Management should ask “What is wrong with the system?” Paradoxically the whole system is controlled by management and not by people who work inside the system. Emphasize prevention instead of detection. Inspection does not add value and it doesn’t improve quality. It only helps to ensure that what goes to the customers is okay. Biggest Challenge •How to Maintain the Market Share & How many varieties of products are introduced in the Market every Year? •To improve the Quality of the Products in terms of Quality, Cost & Delivery. For improving Quality what should we do? 20 Training Principle 8 Support Consultancy Copyright ©. All rights reserved. QC 7 Step Solving approach The ultimate way to ensure quality, however, is to design processes so that regardless of variation of process control parameters the output is optimal or nearly optimal. Such processes are said to be robust designs. A related concept is the principle of Fool Proofing, or poka - yoke in Japanese. QC 7 steps Procedure is the basic procedure for solving problems scientifically, rationally & effectively. It is the fundamental Problem solving strategy which allows to solve the problems rationally & scientifically. If we want to achieve EFFECTIVE improvement we have Put Quality ahead of quantity. to know the rules of the game i.e. QC 7 Steps It means:- Consistent Quality standards Procedure. The secret of our problem solving is to know the 21 Procedure & act in accordance with it. Training Support Consultancy Copyright ©. All rights reserved. 4 National Workshop on “Enabling MSME to be Competitive through Quality Tools” QC 7 Step Problem Solving Formula QC 7 Step Formulae The conventional method is based on trial & error. Figure‐1 a. b. Table‐1 Cont. Step No. Basic Steps Action Item Expose Problem Expose Problem •Grasp Problem •Set Target •Identify gap between existing situation & Target Experience, Intuition, nerve, Inspiration Analyze Causes •Investigate Causes 6 Check Results •Check results of Countermeasures •Compare results with Target •Identify Tangible & Intangible benefits Implement CounterMeasure •Plan Countermeasures •Implement Countermeasure •Institutionalize 7 Implement CounterMeasure Standardize & Establish Control Standardize •Establish new standards & revise old ones. •Decide methods of control Establish Control •Familiarize relevant people with the methods. •Educate those responsible. •Verify that benefits are being maintained. Conventional Problem Solving approach Training QC Problem Solving approach Support 5 Consider & Implement Countermeasures Consider Countermeasures •Propose the ideas for Countermeasures •Discuss how put Countermeasures into effect. •Check details of the Countermeasures Implement Countermeasures •Plan how to implement Counter Measures •Implement Countermeasures Copyright ©. All rights reserved. Consultancy Training Support Consultancy Copyright ©. All rights reserved. Procedure for Problem Solving QC Problem Solving approach Figure‐2 In the QC Seven Step Procedure the following points are important: 1. Problem arises Identify its Causes Act against the Causes Understand the situation & set targets: This would mean analyzing data on the existing & past situation & then decide the target. Fig. 3 shows the procedure to calculate the targets Figure‐3 Symptom Disappears Problem Solved In case of QC Problem Solving approach, the problem really has been Solved; this is true Problem Solving Training Support Consultancy Copyright ©. All rights reserved. Baseline 117642 Entitlement 86013 Difference 31629 70% of Diff. 22140 Target @70% of Entitlement 95502 Training QC 7 Step Problem Solving Formula Support Consultancy Copyright ©. All rights reserved. Procedure for Problem Solving Table‐1 Step No. 2. Basic Steps Analysis of the causes : Late Dr. Kaoru Ishikawa, Action Item the father of Japanese Quality Control, wanted it to 1 Select Topic •Identify Problem •Decide Topic 2 Understand the situation & Select Target. Understanding Situation •Collect Data •Decide characteristic to attack •Decide Target 3 Plan Activities. •Decide what to do •Decide Schedule, division of responsibility etc. 4 Analyze Causes •Check present values of Characteristic •List Possible Causes •Analyze Causes •Decide items to tackle. Training Support Consultancy be renamed as “analyze the process”. But ultimately Copyright ©. All rights reserved. in JUSE 7 step procedure analyze the causes was retained & is widely used. 3. Countermeasures: After the analysis of the Causes, the team proceeds to take the countermeasures to prevent the occurrence of the defects. Cont… Training Support Consultancy Copyright ©. All rights reserved. 5 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Procedure for Problem Solving Basic 7 QC Tools Checksheet Run Chart Pareto Chart 4. Standardize & Establish the Control : In the Past this step was known as “Apply the Brakes” i.e. prevent any back sliding & establish the permanent Countermeasure. Failing to check the effect of Control Chart Countermeasure is like omitting the touch up after Histogram Painting. This would need establishing the new standards or revising the old standards. Familiarize Scatter Plot Fishbone Diagram people with the new standards & verify that the benefits are being maintained. Training Support Consultancy Copyright ©. All rights reserved. Training Figure‐4 Consultancy Copyright ©. All rights reserved. Why-Why Analysis Procedure for Problem Solving 5. Target Control: While fixing the targets & the time limits for the achievements following key points are important. What control Characteristic are to be taken up for study. By When the study will be completed. By How much such as reduce the defect at the Quality gate by 30%. Support Originally developed by Sakichi Toyoda. Later used within Toyota Motor Corporation during the evolution of their manufacturing methodologies. The architect of the Toyota Production System, Taiichi Ohno, described the 5 whys method as "the basis of Toyota's scientific approach by repeating why five Taiichi Ohno times, the nature of the problem as well as its solution becomes clear Training Support Consultancy Copyright ©. All rights reserved. Training Support Consultancy Copyright ©. All rights reserved. Problem Solving: 5 Whys TOOLS & TECHNIQUES USED FOR PROBLEM SOLVING AT MACE This method of problem solving simply involves asking “Why” a number of times (typically five times is enough) until the root cause of a problem is determined . 36 Training Support Consultancy Copyright ©. All rights reserved. Training Support Consultancy Copyright ©. All rights reserved. 6 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Shainin Techniques for Problem Solving Why -Why Analysis at Toyota Why 2? Why 3? Why 4? Why 5? Why there is a puddle of oil on the Shop Floor? • Because Machine is Leaking Oil Product Process Search Why the Machine is Leaking oil? • Because Gasket has deteriorated Why Gasket has deteriorated? • Because we bought the Gasket made of inferior Material. Why did we buy a Gasket of Inferior Material? Because we got a Fair deal on those Gaskets Support Snorkel Position Disassembly/Asse mbly X-BOB X-WOW Parameter Range 0to 1/2" Initial 113 86 Bag no. 1 2 3 1/2 B 1/2 B 1/2 B Ist 115 84 4 5 6 7 8 9 10 11 1/2 B 1/2 B 1/4 B 1/4 B 1/4 B 0G 0G 0G 12 13 14 0G 0G 0G 15 16 End Counts 0G 0G 8+ 8 = 16 Support Range 4 2 D( Diff of Medians = ( 113 -85 ) = 28 d ( Avg. of Ranges ) = ( 4+2 )/2 = 3 219 217 C 212 210 -40 -30 -20 -10 0 Sequence Support Consultancy Copyright ©. All rights reserved. Attributes for World Class Dorian Shainin Copyright ©. All rights reserved. Consultancy 85 -50 Training S.NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Training 85 113 223 20 Shainin Techniques for Problem Solving Dorian Shainin (September 26, 1914 – January 7, 2000) was an influential American quality consultant, aeronautics engineer, author Known for his contributions in the fields of industrial problem solving, product reliability, and quality engineering, particularly the creation and development of the “Red X” concept 111 225 B 10 Copyright ©. All rights reserved. Consultancy IInd Median B Vs C Component Search Why we purchased the Material at Fair Price when the Quality of the Gasket was not Good ? a) Because the Purchasing agent gets evaluated on short term Cost Savings Training Modified Component Search Process Parameter Temp Why 1? ITEM Safety : 5 S – Score Quality : Supply to Customer Customer Line Stops Inventory Turns: Change over time OEE (Overall Equipment Efficiency) VA to Employee cost VSM : Value stream mapping Cost Absenteeism (Unauthorized) Direct to Indirect manpower Kaizens / employee New Product Development Training Hours / Emp / Year Training Support Consultancy TARGET Zero Accidents 90% min. 3.4 ppm 2 hourly basis Zero Min 50 < 10 min. 85 - 90 % 5 25% 50% less 0% 60 : 40 24/emp/year At 50% less time and Cost > 5 % of working hrs Copyright ©. All rights reserved. Shainin Techniques for Problem Solving Component Search Disassembly/Asse mbly X-BOB X-WOW Initial 113 86 Paired Comparison S.No. Surface Finish Status Of the Pump 1 65 Bad Ist 115 84 2 64 Bad IInd 111 85 3 61 Bad Median 113 85 4 58 Bad 4 2 Range D( Diff of Medians d ( Avg. of Ranges ) 5 51 Bad = ( 113 -85 ) = 28 6 48 Bad = ( 4+2 )/2 = 3 7 47 Bad 8 45 Bad Component Search -50 -40 9 32 Good 10 32 Good 11 28 Good 12 24 Good 13 22 Good 14 22 Good 15 21 Good 16 19 Good CLUSTER APPROACH AT MACE -30 Temp -20 -10 0 Sequence 10 20 Training Support Consultancy Copyright ©. All rights reserved. Training Support Consultancy Copyright ©. All rights reserved. 7 National Workshop on “Enabling MSME to be Competitive through Quality Tools” •TPM Cluster •Certified Quality Engineer •Six Sigma Black Belts. •Benchmarking Visits. •Horizontal Deployment of Cluster Activity through Tier-2. MODEL F R WORLD CLASS •Complete 5-S •Up-gradation through advance Quality Tools •Hoshin-Kanri (MFO). •Autonomous Maintenance; OEE •Yield Improvement •Implementation of 8 Pillars Check sheet •Training on advance tools like DOE, DMAIC & OEE Phase 3 •TEI through SSQC activities. •Single Piece Flow using Model Line; identifying Lean Manufacturing Projects (MPS) based on Customer Requirements. •Inventory Turns Ratio Management •Energy Consumption Management •Cost of Poor Quality •Initial Supply Control •Value added per employee cost (VAPCO) •Training on SSQC, MPS, EMS, QMS, NPD. •Capturing Customer Voice •1-S,2-S and Visualization •Customer Concern (QCD) through why-why Analysis. •Red Bin Analysis using basic QC Tools •Daily Work Management for Target Monitoring. •Monthly Performance Review at Gemba & Collaborative Learning •5 New Kaizen/month/vendor. •Training on 5S, VUD, 7 QC tools, CAPA Phase 4 PHASE 2 CLUSTER MEETING IN PROGRESS PHASE 1 Training undergo a common training session and get hand held experience. Individual attention is given to all cluster members & all queries during the session are answered. Training Support Consultancy Consultancy Copyright ©. All rights reserved. EXACTNESS Concept of Cluster A group of 5 to 10 vendors ( non-competing) get together to Support The first step in the improvement journey is Exactness. This involves three parameters: Exactness of Process: The vendor must ensure that the process is being followed exactly as per the standards, as per written down instructions. To achieve this the vendor must employ check points in Daily Work management. Copyright ©. All rights reserved. Training Advantages of Cluster Support Consultancy Copyright ©. All rights reserved. EXACTNESS Exactness of Measurement: This image cannot currently be display ed. Lower Cost. Group discussions & sharing of ideas. Competitiveness. Learning from one another. Exposure to best practices. Learning in a team. Exposure to benchmarking. Improved motivation. Training Support Consultancy Copyright ©. All rights reserved. Any process is as good as its measurement. The vendor must ensure that there is a control plan for all the instruments & measuring gauges; periodic calibrations are carried out as per the plan & all instruments /gauges are kept in good working condition. Training Support Consultancy Copyright ©. All rights reserved. 8 National Workshop on “Enabling MSME to be Competitive through Quality Tools” Practical Problem Solving Process TEAM ORIENTED PROBLEM SOLVING [ TOPS ] Kaizen Competition at CII – Confederation of Indian Industries 1. Initial Problem Perception (Large , Vague, Complicated Problem) 2. Clarify the Problem Grasp the Situation 3. The “ Real “ Problem Basic Cause and Effect Investigation 4. POC Direct Cause Cause Cause Cause Cause Why ? Why ? 5 Why ?Investigation Of Root Cause Funnel Approach Why ? Why ? Why ? Root Cause 5. Countermeasure 6. Evaluate Training Support Consultancy 7. Standardize Copyright ©. All rights reserved. Training Manufacturing activities . Every Year a competition amongst the Tier – 2 vendors is held at MSIL where each vendors make a presentation about the QC & Lean Manufacturing activities [ MPS ]. In order to motivate the vendors, awards are given through MSIL, the parent organization . We also encourage our Tier – 2 vendors to participate in National Competitions to understand the best practices. Training Support Consultancy Copyright ©. All rights reserved. Support Consultancy Copyright ©. All rights reserved. Copyright ©. All rights reserved. Total no. of Tier 2 clusters Total no. of Tier 2 vendors covered : : 19 150 Measure 2004 - 05 2010 - 11 2011 – 12 Improvement Rejection ppm 10933 2695 1617 85 % No. of defects per month 432 263 159 63 % Training Support Consultancy Copyright ©. All rights reserved. MPS for Tier-2 vendors Implementation status TEAM ORIENTED PROBLEM SOLVING [ TOPS ] Quality Circle Competition in progress Training Consultancy Result of Cluster approach initiated by MACE TEAM ORIENTED PROBLEM SOLVING [ TOPS ] We encourage Tier – 2 vendors in Quality Circle & Lean Support Training Support Consultancy Copyright ©. All rights reserved. 9 National Workshop on “Enabling MSME to be Competitive through Quality Tools” QC Activity for Tier-2 vendors MACE Quality Circle Convention QC Projects completed in 2011-12 till Oct’11 As a part of Quality month celebration,Tier-2 Quality circle competition was organized at MACE on 26th Nov’11. Each of the cluster member held the competition at their end to select the best QC Circle at their end for Competition in MACE. A Total of 12 Quality Circles from 12 Tier-2 Clusters participated in this competition. The results of competition were as follow: Winner Training Support Consultancy Copyright ©. All rights reserved. : Superfine : Lumax Cluster 1st runner up : Aar Aar Industries : Pricol Cluster 2nd runner up : : Subros Cluster NRB Bearing Training Support Consultancy Copyright ©. All rights reserved. MACE Kaizen Meet MACE conducted Kaizen Meet for MSIL Vendors. Total of 200 Tier-1 & 400 Tier-2 vendors participated in this competition. The results were as follow: Tier-1 AWARD VENDOR NAME Winner M/s KML Seat-1 Mr. Prateek Mandal 1st Runner Up M/s Bright Autoplast Mr. Himnashu Sharma 2nd Runner Up M/s Tenneco Mr. Sagar Vashisht Tier-2 AWARD VENDOR NAME Winner M/s Premier Pin COUNSELLOR CLUSTER COUNSELLOR Minda Cluster Mr. Amit Chauhan Mr. O.P.Uttareja 1st Runner Up M/s Bhamra Fabricators Subros Cluster Sona Cluster Mr. R.P.Bhatti 2nd Runner Up M/s Lakhani Training Support Consultancy Copyright ©. All rights reserved. M/S Bhambra Fabricator receiving the Best Kaizen Award in T-2 Category Training Support Consultancy Copyright ©. All rights reserved. Lumax T-2- Superfine receiving the winner Award of Quality Circle Competition Training Support Consultancy Copyright ©. All rights reserved. M/S Precision Pin, Tier-2 of Minda receiving the Zero ppm Certificate Training Support Consultancy Copyright ©. All rights reserved. 10 National Workshop on “Enabling MSME to be Competitive through Quality Tools” M/S Subros receiving the Trophy for Best VSA Score in 2011-12 Training Support Copyright ©. All rights reserved. Consultancy Training Support Consultancy Copyright ©. All rights reserved. CII conducts annual Cluster summit in month of September in which various clusters working with CII, ACMA & MACE are invited to participate by giving their Kaizens & Case Studies on Problem Solving using 7 QC tools, Why-Why analysis & Six Sigma. In year 2011-12, 47 vendors of MSIL participated in this event where the best Kaizen & the Case studies were adjudged by the Jury consisting of eminent people from the industry. A total of 285 Kaizens & 120 Case studies were received by CII for evaluation. We are happy to inform that the following awards out of the total awards were bagged by MSIL’s Tier-1 & 2 vendors: Training Support Copyright ©. All rights reserved. Consultancy CII Cluster Championship Award Winners Stream MSME Manufacturing Excellence Cost Competitiveness Energy Efficiency Total Employee Involvement Vox Populi Name of Company Award Auto Décor Pvt. Ltd. 1st Horizon Industrial Products Pvt. Ltd. Shivai Enterprises Pvt. Ltd. 2nd Bhambra Fabricators 1st 3rd USV Ltd. 1st Promed Export Pvt. Ltd. 2nd Eastman Cast & Forge Ltd. 1st Rakheja Engineers Pvt. Ltd. 2nd Large Award Godrej & Boyce Mfg. Co. Ltd. Mohali Minda Industries Limited 1st Sona Koyo Stering Systems Ltd. Godrej & Boyce Mfg. Co. Ltd. Shirwal Mahindra & Mahindra Godrej & Boyce Mfg. Co. Ltd. Shirwal Mahindra & Mahindra Tata Motors Ltd. Godrej & Boyce Mfg. Co. Ltd. Mohali 2nd 3rd 1st 1st 1st 2nd 3rd 1st Godrej & Boyce. Mohali for Manufacturing Excellence CII Kaizen Award Winners Award 1st Award 2nd Award 3rd Award Company Suman Auto Parts Ltd. Raunaq Automotive Components Ltd. Krishna Maruti Limited MSIL Vendors. The Case studies were based on completed MPS Projects. 11