Total quality management

Cover......Page 1
About the Author......Page 7
Contents......Page 8
Foreword......Page 13
Preface......Page 14
Reviewers......Page 21
 Introduction......Page 22
 Definitions of Quality......Page 23
  Customer-Driven Definitions of Quality......Page 24
  4. The Manufacturing-Based Approach......Page 25
 Importance of Quality......Page 26
 Quality and Profit......Page 27
  3. Quality of Performance......Page 29
 Three Levels of Quality3......Page 30
  The Techno-Craft Paradigm......Page 31
 Dimensions of Service Quality4......Page 32
 Old Quality Versus New Quality......Page 33
 Cost of Quality (COQ)5......Page 34
  Size of Four Categories of Quality Costs6......Page 36
  Hidden Quality Costs......Page 37
  Total Quality Costs......Page 38
  Quality Costs in Service Organizations......Page 39
  Identifying and Using Quality Cost Information......Page 40
 Quality Cost Indices......Page 41
 Key Terms......Page 44
  Business Segments......Page 45
  For Discussion......Page 46
 Short-answer Questions......Page 47
 Projects......Page 48
 End Notes......Page 49
 Introduction......Page 50
  PDCA Cycle—Description......Page 51
  Applications of the PDCA Cycle......Page 52
  The Ramp of Improvement......Page 53
  The Deming Chain Reaction......Page 54
  Deming’s 14-Point Methodology......Page 55
 Joseph Juran......Page 56
  Juran’s Quality Trilogy6......Page 57
 Armand Feigenbaum......Page 58
  Crosby’s 14 Steps11......Page 59
 Kaoru Ishikawa......Page 60
  Design of Experiments......Page 61
  Taguchi’s Approach......Page 62
  Advantage of Doe Using Taguchi’s Approach......Page 63
  A Review of Taguchi’s Method......Page 65
  Noise Factors and Outer Arrays......Page 67
  Taguchi’s Quality Loss Function......Page 68
  Shingo’s Key Teachings......Page 70
  The Shingo Prize for Operational Excellence......Page 73
 Summary......Page 74
 Key Terms......Page 75
  For Discussion......Page 76
 Discussion Questions......Page 77
 End Notes......Page 78
 Introduction......Page 79
 Definitions of TQM......Page 80
  The Four Stages of TQM......Page 81
 Seven Phases in the Development of TQM3......Page 84
 Principles of Total Quality Management4......Page 86
 The Key Elements of TQM5......Page 88
  Internal Customer Satisfaction......Page 90
  Measurement......Page 91
  Prevention......Page 92
  Business Process Management (BPM)......Page 94
  Quality Management Systems......Page 95
 Traditional Organization Versus TQM Organization8......Page 96
 TQM Implementation9......Page 97
 Benefits of TQM10......Page 99
 Key Terms......Page 100
  TQM at Sundaram-Clayton......Page 101
  Deployment Phase (1994–1998)......Page 102
 Discussion Questions......Page 103
 End Notes......Page 104
 Introduction......Page 105
 Quality Leadership......Page 106
  2. Transformational Functions......Page 107
 Six Natural Levels of Leadership Competencies......Page 108
  Basic Leadership Competency Levels......Page 109
 Corporate Social Responsibility5......Page 110
  CRS—A Historical Perspective6......Page 112
  Defining CSR......Page 113
  Components of Corporate Social Responsibility10......Page 115
  Issues of Social Responsibility for Various Stakeholder Groups11......Page 116
  Benefits of CSR12......Page 117
 Strategic Quality Management......Page 119
  The Strategy Process......Page 120
  Five Phases of SQM......Page 121
  Hoshin Kanri: The Japanese SQM Model16......Page 123
 Balanced Scorecard17......Page 126
  The Customer Perspective......Page 127
  Five Stages of Quality Culture18......Page 128
  Building Quality Culture19......Page 129
 Change Management: Leading the Change to Quality Culture......Page 131
  Forces of Change20......Page 132
  Resistance to Change and Approaches to Deal with Resistance to Change21......Page 133
  Key Strategic Principles Pertaining to the Dynamics for Strategic Change23......Page 134
 Summary......Page 136
 Key Terms......Page 137
  UNICEF......Page 138
  Stakeholder Expectations......Page 139
  Developing CSR Strategies......Page 140
  Conclusion......Page 141
 Match the Following......Page 142
 End Notes......Page 143
 Introduction......Page 145
  The Deming Application Prize—Checklist......Page 146
  Programme Impact......Page 149
  Criteria for Performance Excellence......Page 150
 IMC Ramakrishna Bajaj National Quality Award (IMC RBNQA)......Page 154
 The European Quality Award......Page 156
  The EFQM Excellence Model Criteria......Page 157
 CII-EXIM Bank Award for Excellence......Page 159
  Structure......Page 162
  Manuals......Page 163
  Scoring......Page 165
  Benefits of CMMI......Page 166
  Maturity or Capability Levels......Page 167
  Staged......Page 168
  Continuous......Page 170
  Goals and Practices......Page 172
 Summary......Page 174
  The Company......Page 175
  Sona’s Quality Journey......Page 176
 Short-answer Questions......Page 177
 Projects......Page 178
 End Notes......Page 179
 Variation......Page 180
  Statistical Process Control (SPC)3......Page 181
  Quality Control Measurements4......Page 182
  Normal Distribution......Page 183
 Measurement System Analysis (MSA)6......Page 184
  Precision and Accuracy of the Method of Measurement......Page 185
  Process Capability Study......Page 189
  Process Capability Indices8......Page 190
  Process Performance Capability Ratio......Page 192
 Sampling11......Page 195
  Acceptance Sampling12......Page 197
  Sampling Plans14......Page 201
 Quality Assurance15......Page 204
  Quality Assurance System16......Page 205
  Designing the Quality Assurance System......Page 207
 Summary......Page 208
  Statistical Process Control at Motorola......Page 210
 Exercises......Page 213
 Discussion Questions......Page 214
 End Notes......Page 215
 Introduction......Page 216
 Key Six Sigma Concepts......Page 217
 Six Sigma Versus Three Sigma......Page 218
 Shifts and its Role......Page 219
  Six Sigma Process with a 0.0 Shift in the Mean......Page 220
  Three Sigma Process with a 1.5 Sigma Shift in the Mean......Page 221
  Six Sigma Process with a 1.5 Sigma Shift in the Mean......Page 222
 Defects Per Million Opportunities (DPMO)......Page 223
 Six Sigma Strategy3......Page 225
 Implementing Six Sigma4......Page 226
 Define, Measure, Analyse, Improve and Control (DMAIC)......Page 227
  Phase II—Measure......Page 228
  Phase III—Analyse......Page 229
 Define, Measure, Analyse, Design and Verify (DMADV)......Page 230
  Master Black Belt......Page 232
  Step 1......Page 233
  Step 5......Page 234
 Key Terms......Page 235
  Six Sigma at Wipro Technologies......Page 236
  Resources......Page 237
  Implementation of Six Sigma at Wipro......Page 238
  Reaping the Benefits......Page 240
  Future Focus and Challenges......Page 241
 Multiple-Choice Questions......Page 242
 Discussion Questions......Page 246
 End Notes......Page 247
 Introduction......Page 248
  Applications of the Pareto Chart......Page 249
  Steps in Constructing a Cause-and-Effect Diagram......Page 250
  Steps to Create a Check Sheet......Page 251
 Histogram......Page 252
  Applications of a Scatter Diagram......Page 254
  Assignable Variations......Page 256
  Steps in the Construction of Control Charts......Page 257
  Control Charts for Variables......Page 258
  Special Control Charts for Variables Data (X and S Charts)......Page 261
  Control Charts for Attributes......Page 262
  p Charts......Page 263
  np Chart......Page 264
  Charts for Defects......Page 266
  u Charts......Page 268
  Radar Charts......Page 272
 Applications of the Seven Quality Control Tools in Six Sigma......Page 273
 The Seven New Management and Planning Tools......Page 274
  Affinity Diagram......Page 275
  Relations Diagram......Page 277
  Systematic or Tree Diagram......Page 278
  Matrix Diagram......Page 279
  Matrix Data Analysis......Page 282
  Arrow Diagram......Page 283
  Process Decision Program Chart (PDPC)......Page 285
 Key Terms......Page 287
  Conducting Pareto Analysis......Page 288
  Breakdown by Manufacturer and Model......Page 289
  Focus of the Investigation......Page 290
 Discussion Questions......Page 291
 End Notes......Page 292
 Introduction......Page 293
  Getting Started with Kaizen......Page 294
  Major Tools of Gemba Kaizen......Page 295
  Fundamental Lean Management Principles......Page 296
  Building Blocks of Lean......Page 297
  Guidelines for Preparing the Kaizen Proposal......Page 299
  Benefits of Kaizen......Page 300
 What is the 5 S?......Page 302
  Implementing the 5 S in an Organization......Page 303
  Conducting a 5-S Audit......Page 304
  4-S Audit......Page 305
  Benefits of a 5-S Programme......Page 306
 Kaizen Versus Innovation......Page 307
 Company-Wide Quality Control (CWQC)......Page 308
  Group-Oriented Kaizen......Page 309
 Quality Function Deployment (QFD)......Page 311
  House of Quality......Page 312
  Building the House of Quality......Page 313
  Philosophical Foundation of Quality Circles......Page 314
  Characteristics of Quality Circles......Page 315
  Basic Organizational Structure of Quality Circles......Page 316
  Role of the Quality Circle Leader......Page 317
  Role of the Management (Steering Committee)......Page 318
  QCC Operation Cycle......Page 319
  How to Empower Employees?7......Page 320
  Benefits of the Suggestion System......Page 322
  Procedure for Introducing Suggestion Systems......Page 323
 Poka-yoke......Page 324
  Poka-yoke Devices......Page 325
  Factors Influencing and Deciding the QWL......Page 326
  Evaluation of QWL Programmes......Page 328
 Summary......Page 329
  Kaizen Implementation at a National Bank......Page 331
  Conclusion......Page 332
 Discussion Questions......Page 333
 End Notes......Page 334
 Introduction......Page 335
 Invention and Innovation......Page 336
 Creativity......Page 337
  The Creative Process......Page 338
  The Six Thinking Hats3......Page 339
 Creates4......Page 341
  How to Brainstorm?......Page 343
  Individual Versus Group Brainstorming......Page 344
  Economic Concepts of Innovation......Page 345
  Types of Innovation......Page 346
  Diffusion of Innovation—The S Curve......Page 347
  Genrich S. Altshuller, the Father of TRIZ......Page 350
  The TRIZ Process......Page 351
  What Does Value Engineering Do?......Page 355
  Identifying Priorities of VE......Page 356
  The Economic Value......Page 357
  Understanding Value Engineering......Page 358
  Benefits of VE......Page 359
 Summary......Page 360
 Key Terms......Page 361
  Crescent Chemicals and Pharmaceuticals Limited......Page 362
 Short-answer Questions......Page 363
 Projects......Page 364
 End Notes......Page 365
 Benchmarking: What is it?......Page 366
 The Evolution of Benchmarking......Page 367
 Advantages of Benchmarking......Page 369
  1. Strategic Benchmarking......Page 370
  7. International Benchmarking......Page 371
  Phases in the Benchmarking Process2......Page 372
 Prerequisites for Benchmarking......Page 376
  Code of Conduct for Benchmarking3......Page 377
  Costs of Benchmarking......Page 378
  Common Pitfalls in Benchmarking4......Page 379
 Summary......Page 380
  Benchmarking at JISCO......Page 381
  Organizational and Manpower Competence......Page 382
  Benefits of Benchmarking......Page 383
 Discussion Questions......Page 384
 End Notes......Page 385
 Introduction......Page 386
  Processes......Page 387
  Customers......Page 388
 Emergence of BPR......Page 389
  5. Strong Leadership......Page 391
  Rule 4: Treat Geographically Dispersed Resources as Though They Work in a Centralized Manner......Page 392
 Benefits of BPR......Page 393
 Business Process Re-engineering Methodologies......Page 395
  Process Analysis and Design Methodology (PADM)......Page 396
 Consolidated Methodology......Page 397
  Activity 3: Design the to-be Processes......Page 398
 Implementation of BPR......Page 400
  Implementation of BPR in Projects......Page 401
  Re-Engineering in the Service Sector......Page 403
  Re-Engineering in the Manufacturing Sector......Page 404
  BPR Leader......Page 405
  Other Employees Involved in the Re-engineering Process......Page 407
  BPR Teams in Project Management......Page 408
 Limitations and Issues in BPR7......Page 409
 The Relationship between BPR and TQM......Page 410
 Summary......Page 411
 Key Terms......Page 412
  Selecting and Implementing the ERP System......Page 413
 Discussion Questions......Page 414
 Discussion Questions......Page 415
 End Notes......Page 416
 Introduction......Page 417
  Scope of Process Management......Page 418
 Designing Processes for Quality2......Page 419
  The Process Owner......Page 420
  Design Processes......Page 421
 Process Mapping3......Page 422
  Process Mapping Essentials......Page 423
  1. Basic Flowchart......Page 424
  3. Value Stream Map (VSM)......Page 426
  4. Sipoc Diagram......Page 427
  5. Spaghetti Diagram......Page 429
  3. Launch Pad......Page 431
  7. People......Page 432
  Process Management Practices7......Page 433
 Key Terms......Page 435
  Enquiry Module......Page 436
  Dispatch......Page 437
  Handover......Page 438
 Short-answer Questions......Page 439
 End Notes......Page 440
  Defining Reliability......Page 442
  Reliability Measurement......Page 443
  MTTF and MTBF......Page 445
  Types of FMEAs......Page 448
  FMEA—Procedure......Page 449
 Total Productive Maintenance (TPM)......Page 452
  History of TPM......Page 453
  Six Big Losses......Page 454
  Pillar 1—Jishu Hozen (Autonomous Maintenance)......Page 456
  Pillar 2—Kobetsu Kaizen (Focused Improvement)......Page 458
  Pillar 3—Planned Maintenance (PM)......Page 459
  Pillar 4—Hinshitsu Hozen (Quality Maintenance)......Page 460
  Pillar 8—Office TPM......Page 461
  PQCDSM in Office TPM......Page 462
  Implementing TPM......Page 463
  TPM Awards6......Page 464
 Summary......Page 465
 Key Terms......Page 466
  TPM Journey......Page 467
  For Discussion......Page 468
 Short-answer Questions......Page 469
 End Notes......Page 470
 Introduction......Page 471
 Who is a “Customer”?......Page 472
 Buyer–Supplier Relationships......Page 474
 CRM Defined......Page 476
 Emergence of CRM......Page 477
 Schools of Thought on CRM......Page 478
 Purpose/Objectives of CRM......Page 479
  Types of CRM......Page 480
  Suspect......Page 481
  Loyal Customer......Page 482
 Levels of Relationship Strategies for Bonding Customer Relationship......Page 483
  Level 3—Customization Bonds......Page 484
  Level 4—Structural Bonds......Page 485
  Types of Defectors......Page 486
  Step 2: Research Your Customer Base......Page 487
 Economics of Customer Relationship Management......Page 488
  Dimensions of CLV......Page 489
  How to Make a CLTV Method Successful?......Page 490
  Three R’s of the CVM Cycle......Page 491
  Linking Profitability and Loyalty......Page 493
 Framework for Building CRM Strategy......Page 494
  Loyalty......Page 495
 Models of CRM......Page 496
  2. The Value Discipline Model8......Page 497
  3. The Gartner Competency Model......Page 498
  Implementation of CRM......Page 499
 CRM in B2B and B2C Context12......Page 500
 CRM Scorecards......Page 501
  E-CRM13......Page 502
  Benefits of CRM......Page 503
 Summary......Page 504
 Key Terms......Page 506
  The Case for CRM......Page 507
 Short-answer Questions......Page 508
 Match the Following......Page 509
 End Notes......Page 510
 Introduction......Page 512
 Value in the Service Industry2......Page 513
 Classification of Services......Page 515
 Defining Service Quality......Page 516
  Performance......Page 517
  Components of Service Systems Quality......Page 518
  Dimensions of Service Quality......Page 519
  Tools Used for Determining Customer Expectations......Page 520
 The Servqual Model......Page 522
  Servqual Applications in Education......Page 525
  Schools of Quality......Page 526
 Hospitality Sector......Page 527
  Star Rating......Page 528
  Diamond Rating8......Page 529
  Pre-Requisites for Achieving Service Quality......Page 530
 Summary......Page 531
 Key Terms......Page 532
  HVS Recommendations......Page 533
 Short-answer Questions......Page 534
 End Notes......Page 535
 Introduction......Page 537
 Quality Management Principles......Page 538
 Quality Management Systems: An Introduction3......Page 539
  Process Approach......Page 540
  Basic Clauses......Page 541
  Main Clauses......Page 542
  Clause 4: Quality Management System......Page 543
  Clause 5: Management Responsibility......Page 546
  Clause 7: Product Realisation......Page 548
  Clause 8: Measurement, Analysis and Improvement......Page 552
  Demonstrating Conformity with ISO 9001:2008......Page 554
  Documentation......Page 555
  Monitoring and Measuring Equipment......Page 556
  Steps to Certification Under ISO 9001 QMS......Page 557
  Role of a Certification Body7......Page 559
  External Benefits......Page 560
  The Cost of Certification......Page 561
 Key Terms......Page 562
  Implementing Quality Management System at Hyundai Motors......Page 563
  Benefits of QS 9000 Certification for Hyundai......Page 564
 Match the Following......Page 565
 End Notes......Page 566
  Quality Audit......Page 567
 Audit Objectives......Page 568
  Responsibilities and Roles of an Auditor......Page 569
  Purpose of Quality Audit......Page 570
  First Party Audit......Page 572
  Categories of Audit on the Basis of Coverage......Page 573
  Resources Needed for Audit......Page 574
  Team Composition......Page 575
 Quality Auditors......Page 576
  Auditor’s Pre-Requisites......Page 577
  Important Points in Audit Performance......Page 578
 Most Common Non-conformities4......Page 579
  Private Meeting of Auditors......Page 580
  Types of Checklists......Page 581
  Sources of Checklist......Page 582
  Types of Questions......Page 583
  Reporting the Findings......Page 584
  Guidelines for an Internal Quality Audit......Page 585
  ISO Registrars......Page 587
 Key Terms......Page 588
  Outsourcing......Page 589
  Supplier Quality Audit......Page 590
 Match the Following......Page 591
 End Notes......Page 592
Index......Page 594