qrm mini project 2003 final

7/29/2019 Qrm Mini Project 2003 Final

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Compare and contrast Lean thinking and

Quality Management Theory

Can they be complemented to achieve business success ?

Group: QRMS1202_Team5 :

Jainwit Tongbai ID: 1255321

Zeyd Bohurler ID: 1265886Mathews John ID: 1259600Thomas Oliphant ID: 1258996

Apoorva Ravikrishnan ID: 1262022Vasileios Zisis ID: 1266493


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CONTENTS :

Evolution of Quality Management Theory Deming Philosophy Deming Cycle by Dr. Shewhart Ishikawa Quality Theory Total Quality Management

Six Sigma Lean Thinking Compare and Contrast : Fit for business success


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Evolution of


Early 1950s Americans who took the messages of quality to Japan

Late 1950s Japanese who developed new concepts in response to the Americans

1970s-1980s Western gurus who followed the Japanese industrial success


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Deming Philosophy :


Management is to be responsible for94% of quality problems.Place the importance and responsibility both individual level and company level.14 points of philosophySmall , large organisation ; public , private or service sectors.


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Demings Quotes


Profit in business comes

from repeat customers,

customers that boast about

your project or service, and

that bring friends with them.

W. Edwards Deming

It is not enough to do your best, you mustknow what to do, and then do your best.

W. Edwards Deming

Lack of knowledge... that is the problem.

W. Edwards Deming

Hold everybody accountable ?

Ridiculous !

W. Edwards Deming

Quality is everyone's

responsibility.

W. Edwards Deming

If you do not know how to ask the rightquestion, you discover nothing.

W. Edwards Deming

You should not ask questions

without knowledge.

W. Edwards Deming


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Deming 14 Points

Edwards Deming Philosophy

1 Create constancy of purpose towards improvement of product and service

2 Adopt the new philosophy. We can no longer live with commonly accepted levels of delay,

mistakes and defective workmanship

3 Cease dependence on mass inspection. Instead, require statistical evidence that quality is built in

4 End the practice of awarding business on the basis of price

5 Find problems. It is managements job to work continually on the system

6 Institute modern methods of training on the job

7 Institute modern methods of supervision of production workers,

The responsibility of foremen must be changed from numbers to quality

8 Drive out fear, so that everyone may work effectively for the company

9 Break down barriers between departments

10 Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing

methods

11 Eliminate work standards that prescribe numerical quotas

12 Remove barriers that stand between the hourly worker and their right to pride of workmanship

13 Institute a vigorous programme of education and retraining

14 Create a structure in top management that will push on the above points every day


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Deming 14 Points

1. Constancy of purpose: 2. The new Philosophy :

3. Cease mass production inspection: 4. End lowest tender contracts :
http://leanandkanban.files.wordpress.com/2011/07/deming-pt1.jpg


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Deming 14 Points

5. Improve every process 6. Institute training on the job :

7. Institute leadership of people 8. Drive out fear


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Deming 14 Points

9. Breakdown barriers 10. Eliminate slogans / Do it right first time

11. Eliminate arbitrary numerical targets: 12. Permit pride of workmanships


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Deming 14 Points

13. Encourage education14. Top management commitment and actions :

Institute a vigorous programme of educationand self-improvement.

Put everybody in organisation to work to accomplish the change.


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Systematic Approach :

Deming Cycle by Dr. Shewhart

Quality Process isUnder Control

Father ofGurus


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Dr. Ishikawa 7 QC Tools :


Late 1950s Japanese developed new concepts in response to the Americans

CustomerOrientation

Management ofQuality

Managing the QualityCustomer OrientationJapanese Way of Quality7 Quality Tools


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Dr. Ishikawa 7 QC Tools


7 Tools :

Pareto analysis Which are the big problems? Cause and effect diagrams What causes the problems? Stratification How is the data made up?

Check sheets How often it occurs or is done? Histograms What do overall variations look like? Scatter charts What are the relationships between factors? Process control charts Which variations to control and how?


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Dr. Ishikawa 7 QC Tools


7 Tools :

Pareto analysis Which are the big problems? Cause and effect diagrams What causes the problems? Stratification How is the data made up?

Check sheets How often it occurs or is done? Histograms What do overall variations look like? Scatter charts What are the relationships between factors? Process control charts Which variations to control and how?


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At its core, total quality management (TQM) is a management approach to long

term success through customer satisfaction.

In a TQM effort, all members of an organization participate in improving processes,products, services, and the culture in which they work.

Total Quality Management : Concepts


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Total Quality Management

The primary elements can be classified as:

Customer-focused. Total employee involvement. Process-centered. Integrated system. Strategic and systematic approach.

Continual improvement. Fact-based decision making. Communications.

Total quality management can be summarized as a management systemfor a customer focused organization that involves all employees in continualimprovement.

It uses strategy, data, and effective communications to integrate the quality

discipline into the culture and activities of the organization.


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Total Quality Management

Total Quality Management has few short-term advantages. Most of its benefits arelong-term and come into effect only after it is running smoothly.

Advantages of Total Quality Management: Improves reputation- faults and problems are spotted and sorted quicker (zero defects)

Higher employee morale

workers motivated by extra responsibility, team work andinvolvement in decisions of TQM

Lower costs Decrease waste as fewer defective products and no need for separate

Quality Control inspectors

Disadvantages of Total Quality Management: Initial introduction costs- training workers and disrupting current production whilst being

implemented

Benefits may not be seen for several years Workers may be resistant to change may feel less secure in jobs By focusing too much on the customers, the production based method might have a cheaper and

more faster way of doing business and this method is rejected. Also the costs of inspection of processes as well as Research and development projects might be

too costly.


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Six Sigma

Motorola developed six sigma in 1987

Similar to other quality managementtechniques but represents anorganizational approach to improvement

Ford, Honeywell- famous organizations tohave implemented six sigma


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Definition

Business process that allows companiesto drastically improve their bottom line bydesigning and monitoring everyday

activities in ways that minimize wastesand resources while increasing customersatisfaction

-Harry and Schroeder


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Advantages of Six Sigma

Achieve maximum customer satisfactionand minimize the defects

Profitability increases and Costs reduce

Can be implemented in any business Targets Variation in the processes and

focuses on the process improvement

rather than final outcome Focuses on prevention on defects rather

than fixing it


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Disadvantages of Six Sigma

Emphasis on the rigidity of the processwhich contradicts innovation andcreativity

Require skilled man force

A lot of real time barriers need to beresolved

Immediate results are not seen


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Lean Thinking Concept


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Lean Principles

There are five Principles that help us seek lean:

Specify Value

Identify the value stream

Make the value flow

Let the customer pull

Pursue perfection

Lean Principles


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There are four lean enablers:

Value Stream Mapping

Visual Management

Standardisation

5 S (sort, segregate, shine, standardise, sustain)

Lean Enablers


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We can use six lean techniques (especially during NPI)

1. Project Management

2. Integrated Product Team3. Knowledge Management

4. Risk Assessment

5. Requirements Capture

6. Core Competence

Lean Techniques


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Six Sigma Business Advantages

It focuses on the customer It gives clear objectives and goals to aim for

3.14 dpmo

Its a systematic approach Its Measurable and quantifiable It uses well-proven statistical tools It gives a change in culture

Inspired by Demings Plan, Do, Check, Act cycle

Through reducing variation it improves quality


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TQM Business Advantages

It focuses on the customer Improves and unifies processes It gives employees moral through involvement in decisions

By reducing waste is reduces costs Improves reputation through improved quality Uses analytical and statistical tools


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Lean Manufacturing Business Advantages

It focuses on the customer Gives clear objectives and goalsBy reducing waste you also reduce costs and increase quality

Reduces lead time Improves flow in processes Can be applied to all aspects of the business Increases employee knowledge, become experts in their field Improves cross-functional communication Builds customer and supplier relations Reduces effect of hierarchy


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How can these tools be complemented

to achieve business success?

All came about from the Japanese quality evolution All inspired from Deming's workAll work towards reducing waste to maximise processutilization

These tools naturally complement themselvesLean thinking moves towards JIT and zero waste TQM focuses on the customer Six Sigma focuses on reduction in variation

To successfully implement a mixture of these depends entirelyon the business application The mixture of techniques depends on what aspect thebusiness would best benefit from focusing on


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ECTI (Electrical Engineering/Electronics, Computer, Telecommunications and Information Technology

Association), 2008. 5th Annual International Conference of Electrical Engineering/Electronics,Computer, Telecommunications and Information Technology Association. Bangkok, Thailand14-17 May 2008. Bangkok: Thailand

Rahmere, R. , 2011. Top 50 EMS providers cross $150 billion mark , Electronics Manufacturing Asia,[online] Available at:< http://www.emasiamag.com/article5659top50emsproviderscross

150billionmark-Asia.html> [Accessed 29 July 2012]

SVI Plc., 2011. The milestones, annual report 2010-2011, Bangkok, Thailand: SVI Plc.

Whiteman, A. L., 2009. Project Management Challenges In The Global Economy, Project ManagementSolution, [online] Available at: [Accessed 28 July 2012]

References


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THANK YOU

qrm mini project 2003 final

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