BUS 445 Higher College of Technology Total Quality Management Case Study This case study in TQM you can answer by checking the slides that i uplode with th

BUS 445 Higher College of Technology Total Quality Management Case Study This case study in TQM you can answer by checking the slides that i uplode with the case no matter in font size and typ Chapter 4:
Continuous improvements, quality assessments,
and quality control
Course: TOTAL QUALITY MANAGEMENT
Course Code: BAHR3102
Specialization: HRM AND ACCOUNTING
Department of Business Studies
Source (Image):https://access.tarrantcounty.com/en/public-health/administration/continuous-quality-improvement–cqi-/current-activities/july-2016-newsletter.html
http://www.corseez.com/index.php/en/events_view/1/ISO-Certification-awareness
• Learning Outcome 8
Recognize the methodologies of continuous
improvements, quality assessments, and quality
control.
2
CHAPTER FOUR – OUTLINE
Contents
➢ CONTINUOUS IMPROVEMENT (KAIZEN)
➢ ADVANTAGES OF CONTINUOUS IMPROVEMENT APPROACH
➢ THE CONTINUOUS IMPROVEMENT APPROACH
➢ THE KAIZEN PHILOSOPHY
➢ THE JURAN TRILOGY
➢ KAIZEN AND DEMING
3
Essential Reading
ProQuest Resource
1) Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272. Created from momp
on 2019-01-08 00:21:07. Pp. 354-366
4
CONTINUOUS IMPROVEMENT (KAIZEN)
Continuous improvement, based on a Japanese concept called Kaizen, is the
philosophy of continually seeking ways to improve operations.
In this regard, it is not unique to quality, but applies also to process improvement.
Continuous improvement involves identifying benchmarks of excellent practice
and instilling a sense of employee ownership in the process.
The focus can be on reducing the length of time required to carry out a process,
reducing the amount of scrap generated in a manufacturing process or the number
of accidents in the work place and the like.
Continuous improvement also can focus on problems with customers or suppliers.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
CONTINUOUS IMPROVEMENT (KAIZEN)
Continuous improvement is an inherent part of the total quality management process.
It transforms the drive towards quality into a never-ending journey. Every day, the firm
must try to be better than it was a day before.
Once benchmarks have been set and a plan has been developed to move companies
towards best practices, the need ‘for continuous improvement arises.
This concept allows companies to accept modest beginning and make small
incremental improvements towards excellence.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
Advantages of Continuous Improvement approach
(i) Because early results are likely to be modest at best, frustration and abandonment
are avoided.
(ii) Gradual and continuous progress through incremental improvements means that
companies can never accept that where they are is the best that will ever be.
(iii) Results in companies, even world-class companies struggling for even higher
levels of performance. This result is essential to compete globally.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
Essential steps of the Philosophy of the Continuous
Improvement
(i) Train employees in the methods of statistical process control (SPC) and
other tools for improving quality and performance.
(ii) Make SPC methods a normal aspect of daily operations.
(iii) Build work teams and employee involvement.
(iv) Utilize problem solving tools within the work teams.
(v) Develop a sense of operator ownership in the process.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
The Continuous Improvement Approach
Exhibit 11.21 shows a strategy for implementing continuous improvement
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
The Continuous Improvement Approach
Step 1 : Defining the current strategies
The continuous improvement approach begins by defining
an organization’s current quality status. This can be
addressed from any of several perspectives viz. number of
defects, the cost of defects, customer satisfaction indices
and the like.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
The Continuous Improvement Approach
Step 2 : Defining continuous improvement objectives
Once the organization’s current quality is known, the objectives of continuous
improvement are selected. While the first step asks the question “where are we?”
(i.e. the current status) the second step asks the question, “where are we going?”
(i.e. what we want to achieve?). The organization’s quality improvement
objectives based on a realistic appraisal of what the organization, with its
available resources, is capable of achieving. If the established objectives of
continuous improvement are unrealistic, it may result in failure which can have a
de-motivating effect on the organization.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
The Continuous Improvement Approach
Step 3 : Converting objectives into action
This step involve selecting continuous improvement projects in order to convert the
continuous improvement objectives into action.
These are the specific areas in which an organization desires to seek improvement. Some of
the examples of improvement projects are
(i) a product fails too often during acceptance testing and the objective is to reduce test
failures by 50 percent,
(ii)the finance department is habitually late in paying account payable and the goal is to
assure all payments are made in less than 30 days and
(iii) the work instructions contain too many errors and the goal is to reduce work instruction
errors to less than one-tenth the current values. Each of these projects provide the
framework of an action plan for the organization to realize continuous improvement.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
The Continuous Improvement Approach
Step 4 : People make it happen (Assign teams)
After selecting the areas in which to focus continuous improvement efforts,
the organization has to design people to work on these projects and empower
them to attain the continuous improvement objectives set.
The concept of employee involvement, empowerment and teamwork are
extremely important to achieve continuous improvement.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
The Continuous Improvement Approach
Step 5 : Defining the process
Once the team has been assigned to a continuous improvement project, the first task
of the team is to define the process it is assigned to improve.
This is done by preparing flow charts for the process involved in the improvement projects. Flow
charts provide the visibility of the entire process to all those who work in the process. Flow
charting also often reveals many problem areas and inefficiencies.
The human inputs in the process should be identified. Wherever a human input is required,
potential sources of variability can enter the process.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
The Continuous Improvement Approach
Step 6 : Defining sources of variability
Three of the most common approaches to identify variability are
(i) Brainstorming among the team members,
(ii) cause and effect diagram (also known Ishikawa diagram) and
(iii) taking a hard look at the process flow chart to identify where
variability can enter the process.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
The Continuous Improvement Approach
Step 6 : Defining sources of variability
Two sources of variability are chance causes (causing normal variability which is due to
the randomness associated with the process) and assignable causes (causing special
variability which is induced by something not controlled in the process).
The normal variability caused by chance causes which are inherent in the process is
not so high that the process will produce a product that exceeds its specification limits.
Variability reduction focuses on assuring that assignable causes of special variability are
eliminated from the process.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
The Continuous Improvement Approach
Step 6 : Defining sources of variability
Once the sources of variability have been identified,
potential improvements can then be developed.
Teams are found to be more effective than individuals
working in isolation.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
The Continuous Improvement Approach
Step 7 : Implementing change: Managing the risk
Thorough evaluation of any process improvements prior to implementation is mandatory
for good risk management. This involves:
(i) designing tests or experiments to evaluate the feasibility of any process modification.
These tests will show whether the process modification will work and will show any
required modification prior to implementation.
(ii) incorporating the process upgrades as a pilot program in a small area prior to
implementation, whenever possible. The pilot program will identify the risks associated
with proposed process modifications. Where problems emerge, they can be corrected prior
to full implementation.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
The Continuous Improvement Approach
Step 7 : Implementing change: Managing the risk
(iii) Monitoring the pilot program process upgrades using the same
measurement criteria that initially targeted the process for
improvement. This will help determine whether the process
improvement actually resulted in an improvement in quality.
(iv) Continuing to monitor the process with the same measurement
criteria once the upgrade has been fully implemented.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
The Continuous Improvement Approach
Step 8
After the process improvement have been implemented and confirmed
as effective, the organization moves on to the next project to realize
additional improvement benefits.
This process of continuous improvement never ends.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
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00:21:07. Pp. 354-366.
The Kaizen Philosophy
“Kaizen” is the Japanese term for “continuous improvement”.
It is a formal system to promote continuous improvement developed as part of justin-time manufacturing techniques.
Masaaki Imai described the elements of Kaizen in great detail in his book
published in 1986, citing the system as an important basis for the success of many
leading Japanese firms.
Source (Image): https://commons.wikimedia.org/wiki/File:Kaizen_umbrella.png
The Kaizen Philosophy
In the Kaizen philosophy, improvement in all areas of
business-cost, meeting delivery schedules, employee safety
and skill develop pent, suppliers relations, new product
development or productivity – all serve to enhance the
quality of the firm.
Thus, any activity directed towards improvement falls under
the Kaizen umbrella.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
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00:21:07. Pp. 354-366.
The Kaizen Philosophy
Kaizen focuses on small, gradual and frequent improvements over
the long run. Financial investment is minimal in such improvement
programs. Everyone participates in the process and many
improvements result from the know-how and experience of workers.
For example, at Nissan Motor Co, any suggestion that saves at least
0.6 seconds in a production process is seriously considered by
management.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
Requirements for a Successful Kaizen Program
Three things that are required for a successful Kaizen program are:
(i) Operating practices,
(ii) total involvement and
(iii) training.
Operating practices expose new improvement opportunities. Practices
such as just-in time reveal waste and inefficiency as well as poor
quality.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
Benefits of Kaizen
❖Step-by-step gradual improvement, doing things better
❖Continuously setting and achieving ever-higher standards.
❖Reduction in costs.
❖Faster development times.
❖Prompt deliveries,
❖Customer satisfaction and
❖Enormous competitive advantage internationally.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/momp/detail.action?docID=3011272.Created from momp on 2019-01-08
00:21:07. Pp. 354-366.
THE JURAN TRILOGY
• Juran’s ‘quality trilogy’ of Planning, Control & Improvement, offers guideline
for achieving ‘quality planning ‘roadmap’.
I. Planning:
The stages of planning process
• Step 1- Identify the External and Internal Customers
• Step 2- Discover the needs of External and Internal Customers
• Step 3- Optimize Product features
• Step 4- Develop the Process plan
• Step 5: Transferring the Plan to Operations
II. Control:
It uses the feedback loop
• 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
Statistical process control is the primary technique for achieving control.
III. Improvement:
• It 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 Quality Council.
• Two of the duties of Council are to identify the improvement projects and establish project teams with a project owner.
• The Quality Council is the driver that ensures that improvement is continuous and never ending.
Kaizen and Deming
•
Kaizen has a lot in common with Deming’s philosophy.
•
There are many principles in Kaizen that are identical to certain of Deming’s
management rules; for example,
•
The obsession with never-ending quality improvement,
•
The responsibility of management,
•
The relationships with suppliers,
•
The process-oriented approach,
•
Total quality attainment,
•
Striving for long-term and sustained benefits rather than short-term profits,
•
The PDCA cycle,
•
The importance of communication, education, development and
•
Involvement of employees in quality-related activities etc.
Kaizen and Deming
Two distinct features inherent in the Kaizen philosophy are:
(i) There is an urgency about the never-ending efforts for
improvement and gradual change for the better. Repetitiveness is
considered as negative and as an inhibitor to progress.
(ii) There is an emphasis on the process rather than the output. The
slogan is “build quality into the process”. This is based on the
realization that mass inspection of the output is a non-value added
activity which is not capable of improving quality.
Reference: Bhat, K. Shridhara. Total Quality Management, Global Media, 2009. ProQuest Ebook Central,
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00:21:07. Pp. 354-366.
A. ‘Deming Philosophy’.
• a) When people and organizations focus primarily on quality,
defined by the following ratio, Quality tends to increase and
.
costs fall over time.
• (b) However, when people and organizations focus primarily on
costs, costs tend to rise and quality declines over time.
B. Seven Deadly Diseases
1)Lack of constancy of purpose
2)Emphasis on short-term profits
3)Evaluation by performance, merit rating, or annual review of performance
4)Mobility of management
5)Running a company on visible figures alone
6)Excessive medical costs
7)Excessive costs of warranty, fueled by lawyers who work for contingency
fees
C. “A Lesser Category of Obstacles”
1)Neglecting long-range planning
2)Relying on technology to solve problems
3)Seeking examples to follow rather than developing solutions
4)Excuses, such as “our problems are different”
5)Obsolescence in school that management skill can be taught in classes
6)Reliance on quality control departments rather than management, supervisors, managers
of purchasing, and production workers
7)Placing blame on workforces who are only responsible for 15% of mistakes where the
system desired by management is responsible for 85% of the unintended consequences
8)Relying on quality inspection rather than improving product quality
D. Deming’s 14 Points for Top Management
1)Create constancy of purpose for the improvement of product and service, with the aim to
become competitive, stay in business, and provide jobs.
2)Adopt a new philosophy of cooperation (win-win).
3)Cease dependence on mass inspection to achieve quality. Instead, improve the process and
build quality into the product in the first place.
4)End the practice of awarding business on the basis of price tag alone. Instead, minimize total
cost in the long run. Move toward a single supplier for any one item, based on a long-term
relationship of loyalty and trust.
5)Improve constantly, and forever, the system of production, service, planning, of any activity.
This will improve quality and productivity and thus constantly decrease…
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