Application ofTQM

for SMEs

Where are we?

Are we a traditional Manufacturing company

• Process layouts?

• High Inventory – Inventory considered as Asset?

• Very high setup time?

• Low variety, high volume?

• Big EBQ batch sizes?

• Long Lead time?

• Inward focus not customer focus?

• High manufacturing cost?

• Low Profit margins?

What do we need to do immediately

Make it:

• Better

• Cheaper

– In Manufacturing

– New Product Introduction

– Information flow

Efficient Manufacturing System

How?

þ Balanced use of people, equipment and material that gives us the lowest manufacturing cost

þ Lowest manufacturing cost assumes all waste is eliminated

The Fundamentals

þ Workers, Supervisors, and managers work together to create continuous flow

• Engaging the work force

• Eliminating waste

• Reducing resources

• Reducing fluctuations

• Improving safety and ergonomics

• Striving for perfection

þ • Management owns the process

þ • Employees are responsible for continuous improvement

Concept of 3 M

MURI – STRAIN

MURA – INCONSISTENCY / IMBALANCE

MUDA – WASTE

3 MU’s

Reduce Cost

Material Cost

EnergyCost

Processing Cost

Others

Cost Price

Processing

Conveyance

Inspection

Stagnation

Useful Job from customer point of view

MUDA

Worthless Job does not increase value to the process

Decided by manufacturing method

Actual movement for Reducing Cost

Remove MUDA

l MUDA of Overproduction

l MUDA of Stock

l MUDA of Conveyance (Transport)

l MUDA of Waiting

l MUDA of Operation Itself

l MUDA of Movement of Worker

l MUDA of Production of Inferior goods

Types of MUDA

MUDA Monster

Profit

Over Production is the Worst MUDAl Increase Raw Material Purchasing

( MUDA of Stock)

l Increase Workers

l Add Machines

Loose Money

Neces-ary

Q’ TY

Over Production

Meaningless Increase of Efficiency10 Workers : 100 Products

10 workers : 120 Products

Necessary Q TY : 100

Over Production

Store House Conveying Equipment Bin

Additional ware House

LooseMoney l Conveyance

l Interest Rate

Moving Material which is not Required

MUDA of Transportation (Case 1)

This worker is changing parts to new pallet.Loading

Transfer

MUDA of Waiting

While Fill water in A C

Do other job

Bad case Waiting until a can is filled

MUDA of Movement

Worker go to take a tool repeatedly:- To the rack every time

Shortage of a Tool

bit/SocketSmall bag

For small part and tool bits

Visual Control

Find out Futility

Do Not Light

To be Carefull with work

Warning Lamp

To Rewrite again and again Standard work sheet

Kanban

Crazy Production

Futility

To Decrease Number of Kanban

1 2 3 4

Why to Uncover MUDA

Contro

l by sig

htObey standard work

B C D EA

It is possible for supervisor to observe many process

Due to hung standard working sheet

understand

l Cycle Time

l Job Order

l Standard Number

Standard Work

WarningLamp

Kanban

Concept of 5S

ELEMENTS OF 5S

Comprises of 5 Simple Steps

•Seiri - sorting out, no unnecessary items

•Seiton - systematic arrangement, prefixed location for prefixed quantity before & after use

•Seiso - spic and span, easy to clean

•Seiketsu - standardization

•Shitsuke - self discipline

BEFORE SEIRI PH 2BEFORE SEIRI

AFTER SEIRI PH 1AFTER SEIRI

Mahindra &Mahindra Ltd.

Automotive Sector

Mumbai Machine No. 1774

Transmission P.S

Mahindra & Mahindra Ltd. – Automotive Sector, Mumbai Machine No. – 1662 ( Axle P.U.)

1. NO DIRT2. CHIPS DIRECTED3. VISIBLE OPEN

1. DIRT 2. CHIP3. GUARDS4. NO VISIBILITY

BEFORE 1-S AFTER 1-S

Mahindra & Mahindra Ltd. – Automotive Sector , Mumbai Machine No. – 1726 (Engine P.U.)

AFTERBEFORE

Before Machine No. 1726 PH 2 Before Machine No. 1726 PH 1

A rational, orderly and methodical

arrangement of all items weuse, re-work or write off.

STEP II

SYSTEMATIC ARRANGEMENT

MARKING OF AISLES

PAINTING OF FLOOR INTHE SHOP

BEFORE 5S

SHADOW BOARDS FOR GAUGES

LOCATION FOR FORKLIFT MAINTENANCE

SHADOW BOARD FOR TOOL FORKLIFT TYRE STORAGE

HAND TRUCK MAINTENANCE AREA\

2S

• Worktable was too wide.• Parts stand was too far away.• Parts were laid out

horizontally, makingthem hard to see and reach.

• Worktable was made smaller(two-thirds width reduction).

• Parts were put within closer reach.• Parts were laid out on a slant,

making them easier to see and reach.

Before Improvement After Improvement

Worktable(two-thirds width reduction)

Worktable

Partsstand

Parts

Workpiece

Workpiece

Parts

Parts stand (slanted)

SET IN ORDER

Operator returns tool without having to step back or look

Tools Kept Close at Hand and Stored in the Order Used

SET IN ORDER

• Plastic sheets were kept onthe rack behind the operator.

• The operator was forced toturn around each time heneeded a plastic sheet.

• The turning motion requiredfour seconds.

• Now plastic sheets are hungon a hook in front of operator.

• The operator does not have to turn around.

• Four seconds of motion waste are eliminated.

Before Improvement After Improvement

Plastic sheetsfor packaging

Workpiece

Conveyor Conveyor

2S

Standard-ization of

wherethings are

kept

Machinerystandardization

Operationstandardization

Set in Order

CommunicationStandardization

Inventorystandardization

Clerical processstandardization

Drawingstandardization

1. Set in Order Is the Core of Standardization

Mahindra & Mahindra Ltd. – Automotive Sector , Mumbai Machine No. – 1662 ( Axle P.U.)

1. Proper – single touch pick uparrangement

2. Not to search

1. No Place for Gauges, Toolings 2. To Search.

BEFORE 2 – S AFTER 2 - S

AFTER

Cleaning

Deburring

Grinder# 2

Grinder# 1

Loader

Heattreatment

Roller

OUTIN

SET IN ORDER

1

2

3 45

6

Understanding how to prevent things from getting dirty

and ensuring tip top condition

(Done with the objective of inspecting for problems and taking faster

corrective actions)

SPIC & SPAN

What? • Is wrong

• Is causing the problem

When? • Does it happen

Where? • Is the problem (Location)

Who? • Does it

• Is responsible for it

Why? • Does it happen

• Does he do it this way and

How? • Else could it be done

• Do we improve the situation

5W + 1H

SPIC & SPAN

•• One is Best– One page memo– One day Processing– One location Files– One copy Filing

• Reduce no of Tools– Reduce no. of bolt sizes– Use of winged nuts– Consolidate kinds of oil– Combine various tools into one– Any others...

If there’s Lesser No. of Items there is Lesser to Clean

Standardization is the result that exists when the first three pillars – sort, Set-in-order and

Shine are properly maintained

– The Place degenerates very quickly if we do not standardize

STEP IVSTANDARDIZATION

Examples of Visual Control

– Warning lights

– Transparent windows

– Colour coding

– Labels

– Position marks

– Okay marks

– Make spaces transparent

– Visualise conditions

– What is where chart

– Who is where chart

– Inspection Labels

– How much of ‘what’ chart

1. Unneeded items begin pilling up as soon as sorting is completed.

2. No matter how well Set in Order is planned and implemented, tools and jips do not get returned to their designated places after use.

3. No matter how dirty equipment becomes, little or nothing is done to clean it.

4. Items are left protruding into walkways, causing people to trip and get injured.

5. Dirty machines start to malfunction and produce defective goods.

SELF DISCIPLINE OR SUSTAINHere are some of the things that happen in a

company when commitment to the five pillars is not sustained.

ADVANTAGES OF

5S(Contd.)

– Better preventive maintenance– Higher employee involvement– Reduction in errors/defects due to standardized

procedures– Consistent and better quality product– Higher productivity– Lesser accidents– Higher employee morale– More time for improvement activities

5S – Implementation Strategies

Organisation structure

• Steering committee

• Appoint a coordinator

• Set up an audit team

• Training of all

• Implement 1s by red tag campaign

1s: Red Tagging Activity

5S RADAR CHART

0

5

10

15

20

2S ORGANIZIN

G

1S CLEARING

UP

5S TRAINING & DISCIPLINE

4S STANDARDIZI

NG

3S CLEANING

•Date

•Section

•Month

•Marks

•100

•80

•60

•40

•20

Gra

ph

5 S Audit Sheet - Shop floorS.N. 1S Sorting Out (SEIRI) Out of 1 2 3 4 51 Floor Cleanliness - free from dust, oil, mud etc 402 General Cleanliness inside factory - Walls, pillars, pipelines are clean without scaling, paint peeling marks, strains etc.203 Cleanliness of containers/pallets - free from dust, oil. Container/pallet in painted condition and free from damages.404 Cleanliness of parts - free from dust, oil (dry condition) 305 Cleanliness of Jigs, Fixtures - free from dust, oil 206 Unused/Excess material removed to separate place, away from work area 207 No mix up of parts in pallets, containers, trays etc 30

TOTAL FOR 1S2001S SCORE = ( TOTAL / 2)100

S.N. 2S Set limits and Systemise(SEITON) Out of 1 2 3 4 51 Gangway - Marking is clear and no material in the Gangway. 302 Use of right pallet / container, trays etc. 303 Right pallets, containers, trays etc in right location 304 Right component in right containers/pallets etc 205 Location of tools for easy to retrieve 106 Only calibrated jigs/fixtures are used 207 Proper shadow board for tools. 408 Proper storage of housekeeping tools. ( Broom, Brush , Small Shovel , Tool for cleaning at Heights ) 20

TOTAL FOR 2S2002S SCORE = ( TOTAL / 2)100

S.N. 3S Shine equipment (SEISO) Out of 1 2 3 4 51 Container identification and traceability available 502 Parts identification and traceability available 303 Plant and Equipment available in clean condition - all sides 304 Preventive maintenance schedule available and effective 505 Chip/Swarf collection and disposable system available. 10

TOTAL FOR 3S303S SCORE = ( TOTAL / 2)200

S.N. 4S Search Time Elimination (Seiketsu) 100 1 2 3 4 51 Retrieval of tools, document is easy ( ask for documents , related tools ) Out of2 Andon Lights On Machines Are Available And Effective 503 Localized Shadow Boards, Tools Available For Cleaning And Maintenance And Effective 304 Easy To See And Inspect Facility Available On Machines And Equipment's 505 Pre-Fixed Quantity Per Container / Pallets Is In Practice 40

TOTAL FOR 4S304S SCORE = ( TOTAL / 2)200

S.N. 5S Standardize Practice & Discipline (Shitsuke) 100 1 2 3 4 51 People are aware for " 5S " requirement and their doing their role ( ask 2-3 people ) Out of2 Availability of operating Standards ( Operation sheet , work instructions ) and are effective 503 Activities are done as per schedule ( Audit , Action on NC products etc. ) 504 Appropriate legible Visual Control System In Practice ( area names , displays ) 50

TOTAL FOR 5S505S SCORE = ( TOTAL / 2)200

100

.Current Month :-

Sl. Criteria Scores Defects Rectification RemarksNo. (1 - 10)

I. HOUSE KEEPING1) Are aisles large enough?marked? Clear?2) Are Parts and tools stored safely after use.3) Are floors uneven and slippery.4) Are Fire fighting equipments adequate, accessible and serviced.5) Is lighting adequate.6) Is general ventilation sufficient.7) Does electrical service appearadequate?8) Are windows or doors in safe condition.9) Are steps, platforms, paths in safecondition.10) Are safety signs adequate and in good condition.11) Are First Aid facilities available.

II. MATERIAL HANDLING:1) Are wheels in good condition.2) Are handles and frame in tight condition.3) Are Fork lift lifting cylinders in good condition.4) Are hoist hooks, chain pulleys and chains tested.5) Are trays in good condition.

III. LADDERS, STAIRWAYS,BENCHES &CHAINS:1) Are Guard rails or hand rails provided.2) Are footsteps not slipping and cracked.3) Is extension ladder ropes in good condition. 4) Are ladders inspected regularly.

IV. HAND TOOLS & MISCELLANEOUS:1) Are hand tools defective.2) Are hand tools properly stored?3) Are Goggles, respirators and personal protective equipmentsavailable at necessary places.

V. EQUIPMENT:1) Are danger points adequately guarded?(I.e, Rotation, Pinch or hip,Belts, Cutting edges, Hot Surfaces, Open flames etc.,)2) Are Operating controls positioned forsake use?3) Is there adequate work space for operator to work safely?4) Are all operating controls clearly identified? (I.e, Valve, Switches, instruments etc., )

Contd..2

Safety Audit Checklist

c Criteria Scores Defects Rectification RemarksNo. (1 - 10)

5) Are safety alarm properly identified and tested regularly.6) Are all pressure vessels are tested and rated regularly.7) Are the equipment inspected regularly to prevent failure due tocorrosion?8) Does wiring appear to be in good condition.9) Does piping appear to be in good condition. 10) Are all safety relief devices in good condition.11) Are all equipments properly grounded.12) Are drop lights and extension guards in good condition.

VI. PROCESS:1) Is safe guard for toxic vapour adequate?2) Are safe storage for diesel, turpentine and clensol etc.,?3) Is there any risk the Operator to get affected by molten metalspillage.

VII.GENERAL:1) Are operation instructions available in a written, legible, easilyidentified form.

Date:

Remarks: Signature of the Auditor