OPERATION MANAGEMENT

TOTAL QUALITY MANAGEMENT=WORLD CLASS MANAGEMENT SYSTEM

MANAGEMENTDEFINITION:

Management is the process of designing and maintaining an environment conducive for performance for a group of people working together for attainment of a common objective in time

MANUFACTURING INDUSTRYVALUE ADITIONBYCONVERSIONINPUTRAW MATERIALOUTPUTVALUE ADDED PRODUCT & SERVICES.

SERVICE INDUSTRYVALUE ADITIONBYCONVERSIONINPUTCUSTOMEROUTPUTVALUE ADDED CUSTOMER

What Is Quality?The degree of excellence of a thing (Websters Dictionary)

The totality of features and characteristics that satisfy needs ( ASQC)

QUALITYFITNESS FOR USESATISFY STATED AND IMPLIED NEEDSCUSTOMER SATISFACTIONq Product Quality &Q Total quality including product quality, fitness for use and world class quality in every aspect of the organizational management.

QUALITY IS USER AS WELL AS PRODUCT SPECIFIC .

THE SAME PRODUCT IS OF GOOD QUALITY TO CERTAIN USER SEGMENT CAN BE OF BAD QUALITY TO ANOTHER USER SEGMENT.

3-3Dimensions of Quality (cont.)Exhibit3-11. Eight Dimensions of QualityPerformance -- primary operating characteristics

Features -- little extras

Reliability -- probability of successful operation (nonfailure) within a given time span

Conformance -- meeting preestablished standards

Durability -- length of usefulness, economically and technically

Serviceability -- speed, courtesy, competence, and ease of repair

Aesthetics -- pleasing to the senses

Perceived quality -- indirect evaluations of quality (e.g., reputation)

The Meaning of QualityQuality of Conformance

Quality of Design

Producers PerspectiveConsumers PerspectiveFitness forConsumer UseProductionMarketingConformance to specificationsCostQuality characteristicsPrice

OPERATION MANAGEMENT is the effective and efficient management of a Process.

TQM IS ORIENTATION TOWARDS PROCESS & COMPANY WIDE PERFORMANCE EXCELLENCE IN ALL FUNCTIONS INVOLVING EVERYBODY.PROCESS(Men, Machine, Material, Method)ProductCustomerBig Q TOTAL QUALITY.Small q Product Quality.

OBJECTIVES OF A WORLD CLASS ORGANIZATION THREE CRITICAL FACTORS FOR SURVIVAL & PERFORMANCE EXCELLENCE OF AN INDUSTRY:

A. COMPETITIVE ADVANTAGE. B. CUSTOMER SATISFACTION.

C. INCREASE RETURN ON INVESTMENT (ROI).

CUSTOMER SATISFACTION :Customer Satisfaction is attained if the customers stated , implied and latent needs are fulfilled.The evidence of customers satisfaction is his continued patronage of the same brand & product, his feedback , reduction in customer complaint & increase in sales and market share.Maximization of Services decides the market leadership as product quality becomes a mandatory requirement.

The Customer Satisfaction is attained by providing the Goods & Services of Right Quality & Right Quantity at the Right Time, Right Place and Right Price.

CUSTOMER SATISFACTION : VALUE FOR MONEY.Unless the Product or Service we offer can be distinguished in some way from the competitors, there is a likely hood that the Market place will view it as a Commodity and so the sale will tend to go to the cheapest supplier. Hence the importance of seeking to add additional values to our offering to mark it out from the competition. Adding value through differentiation of the Products or Services creates value segments which is a powerful means of achieving a defensible advantage in the market.

MAXIMIZATION OF RETURN ON INVESTMENT A. INCREASE PROFIT MARGIN BY a. Price Increase. b. Reduce Cost of Production. B. INCREASE THROUGHPUT OR WORKING CAPITAL TURNOVER . ROI = Net Income / Investment. = (Net Income/Revenue) X (Revenue/Investment) = Return on Revenue X Investment Turnover.

COMPETITIVE ADVANTAGESCUSTOMERNeeds seeking benefits atacceptable pricesCOMPANY.Assets & utilization. COMPETITOR.Assets & UtilizationValueValue.Cost diff.

THE FUNDAMENTALS OF CUSTOMER SATISFACTIONUNDERSTAND & BELIEVE IN THE IMPORTANCE OF SATISFYING CUSTOMERS.

TRUST YOUR CUSTOMERS.

BUILD CUSTOMER RESPECT IN THE VALUE SYSTEM OF THE EMPLOYEES.

ESTABLISH LISTENING POSTS FOR EMPLOYEES AT ALL LEVEL.

LET YOUR CUSTOMERS INTERACT WITH YOUR EMPLOYEES.

INCORPORATE CUSTOMER SATISFACTION OBJECTIVES IN THE KRAs.

EMPOWER EMPLOYEES TO DELIVER HIGH LEVEL OF CUSTOMER SATISFACTION.

TQM TOTAL QUALITY MANAGEMENTIS AN ORGANISED SCIENTIFIC APPROACH TOWARDS CONTINUOUS IMPROVEMENT OF QUALITY INVOLVING EVERYONE IN THE ORGANISATION COVERING EVERY FUNCTIONS AIMED TOWARDS TOTAL CUSTOMER SATISFACTION AND MAXIMIZATION OF ROI.

WORLD COMPETITION IN QUALITY1950 1960 1970 1980 1990THE WEST (COMPANY X)JAPAN (COMPANY Y)

JOURNEY TO TOTAL QUALITY -LONG ENDURING JOURNEY OF INDETERMINATE LENGTH.IN THE BOTTOM-UP APPROACH FOCUS AT THE OPERATIONAL LEVEL.Move the Ideas to each employees at their speed.Do not force strategy but aim to change peoples mindset. Never under-estimate people power.Develop ways of Horizontal Quality Thinking.Challenges Business-As-Usual Attitudes

Eight Characteristics of A World Class Organisation (Thomas Peters & Robert Watermann)Were Action oriented.

Were customer oriented (Learned about needs of their customer).

Promoted managerial autonomy and empowerment.

Achieved productivity by employee orientation.

Eight Characteristics of A World Class Organisation (Thomas Peters & Robert Watermann)Led by sound value of their leader (A role model).Focused on business they knew best (Core competence).Simple and lean organisation.Flexible orientation Centralised as well as De-Centralised.

InspectionQATQCTQM

INSPECTION

POST PRODUCTION EXERCISES.

GRADING, SALVAGE.

CORRECTIONS.

QUALITY ASSURANCEPROCESS COMPLIANCE IN MANUFACTURING.

STATISTICAL PROCESS CONTROL.

CORRECTIVE ACTIONS.

ISO 9000: 1994.

TQC TOTAL QUALITY CONTROL EXTENSIVE USE OF QUALITY IMPROVEMENT TOOLS.

COMPANY WIDE QUALITY ASSURANCE CWQA.

CORRECTIVE & PREVENTIVE ACTIONS.

TOTAL QUALITY MANAGEMENT - TQMCONTINUAL IMPROVEMENT

CUSTOMER & ROI FOCUS

TEI-TOTAL EMPLOYEE INVOLVEMENT

PROCESS ORIENTED SYSTEMATIC APPROACH.

ATTAINMENT OF DESIRED QUALITY REQUIRED COMMITMENT AND PARTICIPATION OF ALL MEMBERS IN AN ORGANISATION WHEREAS RESPONSIBILITY OF QUALITY MANAGEMENT BELONGS TO THE TOP MANAGEMENT.

QUALITY POLICYTHE OVERALL QUALITY INTENSIONS AND DIRECTIONS OF AN ORGANISATION AS REGARDS QUALITYS FORMALLY EXPRESSED BY THE TOP MANAGEMENT.

QUALITY MANAGEMENTTHE ASPECT OF OVERALL MANAGEMENT FUNCTION THAT DETERMINES AND IMPLEMENTS THE QUALITY POLICY.

QUALITY SYSTEMTHE ORGANISATIONAL STRUCTURE, RESPONSIBILITIES, PROCEDURES, PROCESSES AND RESOURCES FOR IMPLEMENTATION OF THE QUALITY SYSTEM.

QUALITY CONTROL(Control over process)The operational techniques and activities that are used to fulfill the requirements of quality aimed both at monitoring a Process and at eliminating causes for unsatisfactory performance.

QUALITY ASSURANCE.ALL THOSE PLANNED AND SYSTAMATIC ACTIONS NECESSARY TO PROVIDE ADEQUATE COFIDENCE THAT A PRODUCT AND SERVICE WILL SATISFY GIVEN REQUIREMENT.

THEORY OFHOLISTIC MANAGEMENTFORWORLDCLASS PERFORMANCEEXCELLENCE

CURRENT INDUSTRIAL SITUATION. MATURED INDUSTRY FREE AVAILABILITY OF TECHNOLOGY. INFAVOURABLE SUPPLY DEMAND POSITION LEADING TO INTENSIVE COMPETITION.

INTERNATIONAL SURGE IN DEMAND OF END PRODUCTS LEADING TO SCARCITY OF RAW MATERIAL.

RAW MATERIAL PRICES ZOOMING AVARAGE 50% - Natural Rubber- 144%, ZnO 150%, Reclaim Rubbber/Plastic-40-50%, Plastic material- 50%, Petroleum Oil-72%, Carbon - 38%, Chemicals- 26% to 50% & Steel 100%, Other Metals- 60-80%.

CURRENT INDUSTRIAL SITUATION.COST OF LABOUR INCREASES TO AT LEAST 10-15% EVERY YEAR.

OTHER CONSUMABLES INCREASE AS PER RATE OF INFLATION I.E. AROUND 9-13%.

POWER SITUATION EXTREMLY BAD LEADING TO INCREASED WASTAGES.

SELLING PRICES OF END PRODUCTS ARE MORE OR LESS STABLE.

PROFIT MARGINS SHRINKING OR DISAPPEARED.

INDIAS GLOBAL COMPETITIVENESS :INFRASTRUCTURE POOR COMPARED TO GLABAL STANDARD: POWER SITUATION- HIGH TARRIF & SHORTAGE. VEHICLE MOVEMENT- 250 KM./DAY COMPARED TO INTERNATIONAL 600-700 KM./DAY. RED TAPISM & CORRUPTION HIGH. POLITICAL SITUATION- DIVERSE DIRECTIONS.

LABOR SITUATION PRODUCTIVITY 40% AS COMPARED TO INTERNATIONAL STANDARD. LABOR LAWS OUTDATED.

GOVT. PROTECTIVE DYKES DISAPPEARING.

INDIAS GLOBAL COMPETITIVENESS :Indian Brains best suited for the Service & IT Industry.English speaking low cost Technically sound man power availability.Democratic Country.Subsequent Governments commitment to Globalization & Liberalization.International quality of Education in the field of Management, Engineering, Medical Science & Information Technology.Abundant Natural Resources.Matured Agricultural & Agro Industry.Sound Manufacturing Industrial Base.Large Domestic market with Purchasing Power.

HOW NOT ONLY SURVIVE BUT HAVE A WORLD CLASS PERFORMANCE EXCELLENCEThe Answer is the implementation of THE THEORY OF HOLISTIC MANAGEMENT FOR WORLD CLASS PERFORMANCE .

WORLD CLASS PERFORMANCE & LEADERSHIPQUALITY IMPROVEMENTQUALITY CONTROLQUALITY PLANNINGQUALITY MANAGEMENT SYSTEMISO 9000SUPPLY CHAIN MANAGMENTTOTAL ORGANISATION INVOLVEMENTCONTINUOUS IMPROVEMENTSTRATEGIC QUALITY PLANNINGCUSTOMER FOCUSTOTAL QUALITY MANAGEMENT PROCESSINFRASTRUCTUREFOUNDATIONTHEORY OF HOLISTIC MANAGEMENT FOR WORLD CLASS PERFORMANCE EXCELLENCE.

FOUNDATION :GIVES SUSTAINIBILITY OF AN ORGANIZATION.

A SOUND BASE ON WHICH A WELL STRUCTURED & WORLD CLASS ORGANIZATION CAN BE BUILT.

MAKE THE ORGANIZATION SURVIVE & GROW AT ALL TIMES.

COMPONENTS OF FOUNDATION : A. CUSTOMER FOCUS. B. STRATEGIC QUALITY PLANNING. C. CONTINUOUS IMPROVEMENT.

CUSTOMER SATISFACTIONCustomer Satisfaction is attained if the customers stated , implied and latent needs are fulfilled.The evidence of customers satisfaction is his continued patronage of the same brand & product, his feedback , reduction in customer complaint & increase in sales and market share.The Customer Satisfaction is attained by providing the Goods & Services of Right Quality & Right Quantity at the Right Time, Right Place and Right Price.

STEPS TO CREATE A CUSTOMER FOCUSED ORGANIZATIONUNDERSTAND & BELIEVE IN THE IMPORTANCE OF SATISFYING CUSTOMERS.

TRUST YOUR CUSTOMERS.

BUILD CUSTOMER RESPECT IN THE VALUE SYSTEM OF THE EMPLOYEES.

ESTABLISH LISTENING POSTS FOR EMPLOYEES AT ALL LEVEL.

LET YOUR CUSTOMERS INTERACT WITH YOUR EMPLOYEES.

INCORPORATE CUSTOMER SATISFACTION OBJECTIVES IN THE KRAs.

EMPOWER EMPLOYEES TO DELIVER HIGH LEVEL OF CUSTOMER SATISFACTION.

DEPARTMENTAL FUNCTIONVERTICAL CHIMNEYSPurchaseDept.ProductionDept. BFinanceDept. MarketingDept. DCONVENSIONAL ORGANISATION ( - 1+ 1 = 0 )

HORIZONTAL QUALITY THINKINGWORLD CLASS ORGANISATION(1&1=11)HRProductionFinanceMarketingCustomerSatisfaction

DEPARTMENTAL FUNCTIONSConcept of Internal CustomerMaterials Department- R.M. of Right Quality, Quantity, Price at rightTime and Place

Production Value addition by ConversionMarketingCreation of Esteem ValueCustomerMaintenance Dept.Machines of right quality,Quantity, cost & at right time And place

Finance Dept.Finance of right Quality, quantity,Cost ,at right timeAnd placeHR DepartmentHuman Resource of Right quality, quantityAt right cost ,time& place

Eight Building Blocks of TQMSatisfy All Parties at the Same timeInvolve all participantsIn the enterprise Focus on PreventionWork under the 7 ZERO BannerDo it Right theFirst TimeMeasure value addedAct always in lineWith Customer NeedsDevelop an InternalCustomer SupplierRelationship

SEVEN ZERO BANNERZERO DISDAIN FOR OTHERS.ZERO STOCK.ZERO DELAYZERO PAPER.ZERO DOWNTIME.ZERO DEFECT.ZERO ACCIDENT.

FINANCIAL PERSPECTIVEROI.CASH FLOW.PROFIT.CUSTOMER PERSPECTION1. CUSTOMER SATISFACTION.2.COMPETITIVE ADVANTAGE.3.MARKET SHARE.4. BRAND IMAGE.INTERNAL BUSINESS PERSPECTIVEEMPLOYEE SATISFACTION.EMPLOYEE TURNOVER.INVENTORY TURNOVER.SAFETY RECORD.PROJECT PERFORMANCE.INNOVATION & LEARNINGPERSPECTIVE1.NO. OF IMPROVEMENTS P.A2.NO. OF NEW PRODUCTS P.A.3.NO. OF NEW MARKET SEGEM-ENT ADDED P.A.4.NO. OF NEW CUSTOMERS P.ABALANCE SCORE CARD.

STRATEGIC QUALITY PLANNING ELEVEN TQM STEPS to be an WORLD CLASS ORGANISATIONTQM overview.Set MISSION.Identify CUSTOMERS.Identify Customers Needs.Define CRITICAL PROCESS & MEASURES.Set Organizational VISION.

STRATEGIC QUALITY PLANNING ELEVEN TQM STEPS to be an WORLD CLASS ORGANISATIONDevelop Strategic Plan (10-20 yrs)Develop Annual Plan for BreakthroughRevise Roles and ResponsibilitiesForm Steering Committee to set change strategy.Annual Review

CONTINUOUS IMPROVEMENT :CONTINUOUS ENHANCEMENT OF PRODUCTIVITY IN ALL ASPECTS OF BUSINESS ENTERPRISES: Materials, Men, Technology, Machine, Process, Finance, Management & LSCM.

FOCUSING ON 3M PRACTICE OF MURI, MURA & MUDA.

FOCUSING ON 5S OF HOUSE KEEPING.

PRACTICNG DEMINGS P-D-C-A CYCLE.

REDUCTION IN WASTAGES & CYCLE TIME.

Current Managerial FunctionDemings (Shewartss) P-D-C-A CycleActPlanCheckDoQuality Management System (ISO 9000)ContinuousImprovement

PLANNINGDEFINITION:

Planning is the decision making process of choosing the best alternative consuming least amount of input resources and giving the maximum output for attaining the desired objective in time.

DO Execute or Implement the Plan as per schedule with effectiveness and efficiency.

CHECK is to ascertain the Deviation between what was planned what has happened and what is the Root Cause for the same.

ACT After analyzing the root cause take the Corrective and Preventive actions so that a mistake once occurred leading top a deviation is never ever repeated again. Since it is a cycle, incorporate these corrective & preventive actions in the next plan so that the organization is in a path of Continuous Improvement by continual elimination of mistakes or solving the problems.

To ensure that once an improvement has been done, it is permanently part of the system & it never retracts, a Quality Management System ISO 9001:2000 is implemented.

MANAGEMENT (Policy, Mission & Vision)

continual improvement QUALITY COUNCIL

TOTAL QUALITY TEAMS QUALITY

QUALITY CIRCLES

PROCESS MANAGEMENT

**PNMPEOPLE

PNM

Increased revenueImproved competitive positionIncreased market shareHigher pricesReduced cost of operationsIncreased defect-free outputIncreased profitsContinual Quality Improvement orCost-Route BenefitsMarket-Route Benefits3-7Competitive Benefits of TQMExhibit3-4

3 M PRACTICE.MURI Unreasonableness.

MURA Unevenness.

MUDA Wastage.

NINE WASTAGES(MUDA) :Wastages due to disdain, jealousy, politics among team members and within an organization.Wastages due to excess inventory.Wastages due to Delay in processing of queries, transportation, communication etc..Wastages due to unwarranted Paper Work.Wastages due to loss of Production on account of machine Downtime.Wastages due to Product/Service Defects, reworks etc.Wastages due to Accidents.Wastages due to faulty Process Design & Control. Wastages due to Untapped & Misused Resources.

5 S of HOUSEKEEPING.SEIRI ORDERLINESS.

SEISO CLARITY.

SEITON TIDINESS.

SEIKETSU CLEANLINESS.

SHITSUKE Practice all the four together.

COST OF QUALITYTHE QUALITY SYSTEM MUST INCLUDE METHODS AND PROCEDURES TO DETERMINE AND EVELUATE THE IMPACT THE COST OF QUALITY HAS ON THE PROFITABILITY OF THE COMPANY.

THE PURPOSE OF THE COST OF QUALITY REPORTING SYSTEM IS TO PROVIDE MANAGEMENT WITH A TOOL TO MEASURE EFFECTIVENESS AND IDENTIFY IMPORVEMENT AREAS.

Quality Management Maturity Grid

Cost CategoriesPrevention CostsAppraisal CostsInternal failure CostsExternal failure Costs

The cost of poor quality (COPQ):

COPQ is the sum of all costs that would disappear if there were no quality problems. - Juran

You can easily spend 15 - 20% of your sales dollars on the COPQ. - Crosby

In most companies the costs of poor quality runs at 20 - 40%. - Juran

Traditional COPQ

COPQ

DISTRIBUTION OF QUALITY COSTS

Total Quality Cost

External failure

Internal failure

Appraisal

Prevention

Time Maturity of Quality System

Traditional Model

New Model

% of Quality Cost items within Total Quality Cost

Quality Costs3-8a

Little or no defective work No dissatisfied customers Very little inspection An ounce of prevention is worth a pound of cureDeclineDeclineDeclineIncreaseDeclineIncreaseContinual ImprovementQuality Costs3-8

INFRASTRUCTURE :BUILDS THE ORGANIZATIONS OVER A SOLID FOUNDATION.

HOLDS THE ORGANIZATION TOGETHER UNDER A SYSTEM & INFRASTRUCTURE TO MAINTAIN THE ORGANIZATIONAL LEADERSHIP, MARKET POSITION & DEFNDS THE ROI.

NEEDS A SYSTEM OF MANAGEMENT.

COMPONENTS OF INFRASTRUCTURE :TOTAL ORGANIZATION INVOLVEMENT -TOI.SUPPLY CHAIN MANAGEMENT.QUALITY MANAGEMENT SYSTEM ISO 9000.

TOTAL ORGANIZATION INVOLVEMENT : INVOLVEMENT OF SUPPLIERS, EMPLOYEES & CUSTOMERS IN ORGANIZATIONAL WORKING.TRAINING & EDUCATION TO ALL ON ORGANIZATIONS MISSION,VISION & STRATEGIC PLAN.TOTAL EMPLOYEE INVOLVEMENT- TEI & EMPLOYEE EMPOWERMENT.MANAGEMENT BY OBJECTIVE.PRINCIPLE OF INTREPREUNERSHIP TO BE DEPLOYED.ORGANIZED INVOLVEMENT OF EMPLOYEES IN DECISION MAKING PROCESS IN VARIOUS TEAMS/COMMMITTES ON VITAL AREAS OF OPERATION TO ENSURE OWNERSHIP.

SUPPLY CHAIN MANAGEMENT :SUPPLY CHAIN MANAGEMENT CAN BE DEFINED AS THE DEMAND MANAGEMENT SYSTEM WHICH INTEGREATES THE ENTIRE SUPPLY MECHANISM OF SUPPLIERS OF RAW MATERIALS TO ITS CONVERSION PROCESS IN THE ORGANIZATION INTO THE FINISHED GOODS & SERVICES TILL THEY REACH TO THE CONSUMERS THROUGH THE DISTRIBUTION CHANNEL.

SUPPLY CHAIN MANAGEMENT :THE SUPPLY CHAIN IS CONSISTING OF INDIVIDUAL LINKS ENTANGLED SYSTEMETICALLY INTO EACH OTHER OF MATERIAL REQUIREMENT PLANNING(MRP-I), MANUFACTURING RESOURCE PLANNING (MRP-II) & DISTRIBUTION REQUIREMENT PLANNING (DRP) OUTPUT OF ONE PROCESS BEING INPUT FOR THE OTHER.

RawMaterial SuppliersInboundRawMaterialProductionOutboundFinishedGoodsFinishedGoodsRegionalWarehouseCustomersMRPDRPSUPPLY CHAIN MANAGEMENTInformationMaterials & Products

SUPPLY CHAIN MANAGEMENTIt changes the paradigm information and materials/products, are from Control to COORDINATION in Supply Chain Management.By moving away from separate control of departments, and towards overall co-ordination of effort, all the major movements activities, both of brought together in a single system .The objective of SCM are:MAXIMIZATION OF CUSTOMER SATISFACTION BY PROVIDING PRODUCTS & SERVICES OF RIGHT QUALITY IN RIGHT QUANTITY AT RIGHT TIME, RIGHT PLACE AND AT RIGHT PRICE.MAXIMIZATION OF THE RETURN ON INVESTMENT ROI.REDUCTION OF CYCLE TIME & INVENTORY

SUPPLY CHAIN MANAGEMENTSCM leads to implementation of a FLEXIBLE SYSTEM.Small lot Sizes in SCM prevent losses from unsold stock and allows flexibility through switching, small change over time and ease of handling.Maximum efficiency in using labor, capital and plant throughout the company;Flexible planning and control procedures; Controlled customer service performance;Minimum variance (reduced uncertainty);Minimum total cost;Product quality, in other words, preservation of added value.Eliminates PRODUCT OBSOLESENCE.SCM is a PROCESS ORIENTED SYSTEM with the interlinking of the sub-processes into a system.

ISO 9000 :2008 QUALITY MANAGEMENT SYSTEM :CONCEPT OF QTAKING OVER FROM q.

ISO DEVELOPED 9000 SERIES IN RESPONSE TO MARKET GLOBALIZATION.

BY 1994 IT WAS ACCEPTED IN 70 COUNTRIES AND TODAY IT IS ACCEPTED BY 120 COUNTRIES.

ISO 9000 IS AN EFFECTIVE POWERFUL TOOL FOR MANAGEMENT OF PRODUCT QUALITY AS WELL AS ALL BUSINESS OPERATION

MANDATORY FOR ENTRY IN INTERNATIONAL MARKET PARTICULARLY EUROPEAN & NORTH AMERICAN MARKET.

ISO 9000:2008IT IS A QUALITY MANGEMENT SYSTEM

IT TAKES THE MYSTERY OUT OF QUALITY.

IT DEFINES QUALITY CHAPTER BY CHAPTER & VERSE BY VERSE.

DEFINITION OF ISO 9000The ISO9000 standard defines the formal quality management system necessary to assure that the Technical, Administrative and Human factors affecting the Quality of an Organisations Products or Services are under control.

Further this formal system must be implemented such that its effectiveness can be demonstrated to the organisations Management, to the Customers of the organisation and to an independent third party for the purpose of varification.

IMPORTANCE OF ISO 9000INTERNAL :Vehicle To hold Quality Improvement Gains.

Provides good platform for continuous Quality Improvement.

Provides method for involving non-manufacturing areas in Quality & quality Improvement.

Keeps high Employees Moral & ensures their total Involvement.

ISO 9000 SERIES DETAILSISO 9000 : 2008 Vocabulary & Definations

ISO 9001:2008 Certification Standard for implementation, audit & certification of the Q.M.S. with Process orientation aimed towards Customer Satisfaction and Continuous Improvement.

ISO9004 :2008 Guidelines for proceeding further on journey to TQM.

ISO 9000 EXPECTATIONSIs the Organisations Quality System adequate.

Does the organisation follow its Quality system.

Is there a Process orientation in the organisational activities.

Is there a platform for holding the Gain and for Continuous Improvement.

IMPORTANCE OF ISO 9000.EXTERNAL :Ensures Customer Satisfaction.

Generates Customer Confidence thro World class Products & Services.

Ensures confidence with all stake holders in the organisation including Suppliers, Investors,Share holders etc.

Fulfills commitments to Society & Country as a whole.

ISO 9000 EXPECTATIONSDoes the Organisation audit itself.

is there a evidence of documented Quality System Audits with evidence of resulting corrective action.

Are Management reviews of the Quality System conducted and acted upon?

CustomerRequirement CustomerSatisfaction PRODUCT REALIZATIONResource ManagementQ.M.S.Continual ImprovementManagement Responsibility.Measurement,Analysis &Improvement.InputOut putProductRole of QMS in Organizational Effectiveness.

PRINCIPAL 1 CUSTOMER FOCUSSED ORGANISATIONDEVELOP A CUSTOMER FOCUSSED ORGANIZATION.UNDERSTAND CURRENT AND FUTURE CUSTOMERS NEEDS AND EXPECTATIONS .MEASURE CUSTOMER SATISFACTION AND ACT ON IT.

PRINCIPAL 2 - LEADERSHIPLEADERS ESTABLISH UNITY OF PURPOSE AND DIRECTION OF THE ORGANISATION.CREATE AND MAINTAIN FOR TEI IN ACHIEVING THE ORGANISATIONS OBJECTIVES.ESTABLISH VISION,DIRECTION AND SHARED VALUES. SET CHALLENGING TARGETS AND GOALS AND IMPLEMENT STRATEGIES TO ACHIEVE THEM. COACH FACILITATE AND EMPOWER PEOPLE.

PRINCIPAL 3 INVOLVEMENT OF PEOPLESUCCESS OF AN ORGANIZATION DEPENDS ON THE MEN BEHIND THE MACHINES AND PROCESSES.INVOLVE THEM BY CREATING A PLATFORM FOR KNOWLEDGE SHARING THRO KAIZEN, QUALITY CIRCLE, JQI OR SIX SIGMA.CREATE PERSONAL OWNERSHIP OF AN ORGANISATIONS TARGETS AND GOALS , USING ITS PEOPLES KNOWLEDGE

PRINCIPAL 4 PROCESS APPROACHA DESIRED RESULT IS ACHIEVED MORE EFFICIENTLY WHEN RELATED RESOURCES AND ACTIVITIES ARE MANAGED AS A PROCESSEXPLICITLY IDENTIFY INTERNAL / EXTERNAL CUSTOMERS AND SUPPLIERS OF PROCESSES & RESOURCES. INTERLINK THE PROCESSES IN A SCIENTIFIC MANAGEMENT SYSTEM

PRINCIPAL 6 CONTINUAL IMPROVEMENT DEVELOP A STEP BY STEP APPROACH FOR CONTINUAL IMPROVEMENT IN ALL BUSINESS ACTIVITIES. DEVELOP CONTINUAL IMPROVEMENT AS A HABIT CYCLE.SET REALISTIC AND CHALLENGING IMPROVEMENT GOALS

PRINCIPAL 5 SYSTEM APPROACH TO MANAGEMENTIDENTIFYING , UNDERSTANDING AND MANAGING A SYSTEM OF INTERRELATED PROCESSES FOR A GIVEN OBJECTIVE IMPROVES THE ORGANIZATIONS EFFECTIVENESS AND EFFICIENCY.IDENTIFY A SET OF PROCESSES IN A SYSTEM & THEIR INTERDEPENCIES. ALIGN THE PROCESSES WITH THE ORGANISATIONS GOALS AND TARGETS. MEASURE RESULTS AGAINST KEY OBJECTIVES.

PRINCIPAL 7 FACTUAL APPROACH TO DECISION MAKING ANALYZE PAST AND CURRENT DATA AND FACTS AND BASE YOUR FUTURE DECISIONS BASED ON LEARNINGS FROM THEM.DECISIONS AND ACTIONS ARE BASED ON THE CURRENT TREND AND INFORMATION ON THE LIKELY FUTURE HAPPENINGS TO MAXIMISE PRODUCTIVITY AND TO MINIMISE WASTE AND REWORK.DEVELOP A FACTUAL TARGET WHICH IS REALISTIC.

PRINCIPAL 8 MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPFOR VALUE ADDITION TO BOTH LEVERAGE ON EACH OTHERS CAPABILITIES FOR WORLD CLASS PERFORMANCE.ESTABLISH STRATEGIC ALLIANCES FOR JOINT DEVELOPMENT AND IMPROVEMENT OF PRODUCTS PROCESSES AND SYSTEMS TOWARDS CUSTOMER SATISFACTION AND CONTINUAL IMPROVEMENT.DEVELOP A WIN-WIN RELATIONSHIP WITH YOUR SUPPLIER.

ISO 14001:2004

ENVIRONMENTALMANAGEMENTSYSTEM

Organizations have to undertake Environment Reviews and Audits to assess their Environmental Performance conforming to Legal as well as Companys Environmental Policy.To achieve this the organization must have a structured management System integrated with the overall management system of the organization.ISO 14001:2004 specifies the requirements of an effective Environmental Management System applicable to all types and sizes of the organization.The overall aim is to protect the environment and prevent pollution in balance with the Socio-economic needs.ISO14001:2004 is a Certification standard and ISO 14004:2004 is a complementary standard for further guidance.

ISO 14001:2004Environmental policyPlanning Implementation and operationChecking and corrective actionContinualimprovementManagement review

SCOPE of ISO 14001:2004The Environmental Management System should enable an organization to formulate the policies and objectives taking into account the Legislative requirements and Information about significant impact which the organization can control and over which it has an influence.Here the Environment implies the surroundings in which an organization operates including air, water, land, natural resources, flora, fauna, humans and their interrelations.The objective is to prevent Pollution . Use of processes, practices, materials or products that avoid, reduce or control pollution which may include recycling, treatment, process changes, control mechanisms, reviewing and maintaining the environmental policy.

CRUX OF ISO14001:2004 IS THE EIA i.e. Environment Impact Assessment and Risk minimization.

QS-9000 : 1998This QMS is applicable to the Automobile Industry and its suppliers of components and parts.The QMS is divided into two sections : - The first section is typically ISO 9000:2000 requirements. - The second section is Customer Specific requirement of the three automobile majors i.e. Chrysler, Ford and General Motors. At the end of the standard a passing reference is made to reference standard of other global auto majors like Mack Trucks, Navister, Paccar, Toyota, Mitsubishi Motors and Volvo standards.The standards aim was to bring uniformity in the performance standards of the automotive component suppliers across the globe.

OSHAS 18001: 2007OSHAS is a standard for the Occupational Safety and Hazard assessment and risk minimization.The main work in OSHAS implementation is the HIRA or the Hazard Identification and Risk Assessment and its minimization by suitable actions.

QS 9000The goal of the QS-9000 is to develop fundamental quality system that provide for the continuous improvement, defect prevention and reduction in the variations and waste in the supply chain.QS 9000 continuously enhanced the performance of the QMS by eliminating redundant requirements and thus reducing the cost. The QMS focused heavily on the principles of the VALUE ANALYSIS AND VALUE ENGINEERING oriented towards customer satisfaction and eliminating all those parts, components or activities that do not add value to the product from the customers point of view.

TQM TOTAL QUALITY MANAGEMENTIS AN ORGANISED SCIENTIFIC APPROACH TOWARDS CONTINUOUS IMPROVEMENT OF QUALITY INVOLVING EVERYONE IN THE ORGANISATION COVERING EVERY FUNCTIONS AIMED TOWARDS TOTAL CUSTOMER SATISFACTION

JOURNEY TO TOTAL QUALITY -LONG ENDURING JOURNEY OF INDETERMINATE LENGTH.IN THE BOTTOM-UP APPROACH FOCUS AT THE OPERATIONAL LEVEL.Move the Ideas to each employees at their speed.Do not force strategy but aim to change peoples mindset. Never under-estimate people power.Develop ways of Horizontal Quality Thinking.Challenges Business-As-Usual Attitudes

PRE-REQUISITES for SUCCESS for TQMCOMMITTMENT AT THE TOPORGANISATION for QUALITYSTRATEGIC DIRECTIONCUSTOMER ORIENTATIONNEED-BASED EDUCATION & TRAININGTOTAL INVOLVEMENT of EMPLOYEESSUPPORTIVE CULTURETEAMWORKPREVENTION BASED SYSTEMSRECOGNITION &REWARD SYSTEM

Quality Planning:Identify the customers, both external and internal.Determine customer needs.Decide on the Product Goals.Develop product features that respond to customer needs.Products include both goods and services.Establish quality goals that meet the needs of customers and suppliers alike, and do so at minimum combined cost.

Quality Planning:Develop alternative Processes that can produce the needed Product Features meeting the Product Goals as well as the Quality Goals.Select the Best Cost Effective Zero Defect Optimum Process. prove process capability prove that the Process can meet the Quality Goals & Product Goals under operating conditions.Decide on a Quality Control System.

QUALITY CONTROLChoose control subjects-what to control.Choose units of measurement.Establish measurement.Establish standards of performance.Measure actual performance.Interpret the difference (actual versus standard).Take action on the difference.

QUALITY CONTROL & FEEDBACK LOOPACTUATOR (Rectifies theDeviation in process &/or Input resources)SENSOR & ANALYZER (Senses & Compares theactual performance with theobjective) PROCESS(Value addition byConversion) OBJECTIVES(CustomersSatisfaction &Max. R.O.I)INPUTOUTPUT

QUALITY IMPROVEMENT

Prove the need for improvement.Identify specific projects for improvement.Organize to guide the projects.Organize for diagnosis-for discovery of causes.diagnose to find the causes.Provide remedies.Prove that the remedies are effective under operating conditions.Provide for control to hold the gains.

VARIOUS QUALITY IMPROVEMENT TECHNIQUESJURAN QUALITY IMPROVEMENT TECHNIQUE.

KAIZEN GEMBA.

QUALITY CIRCLE.

SIX SIGMA.

END OUTPUT OF IMPLEMENTATION OF THEORY OF HOLISTIC MANAGEMENT :GLOBAL MARKET LEADERSHIP.WORLD CLASS PERFORMANCE EXCELLENCE.SUSTAINABLE & GROWING ORGANIZATION.FEATURES OF A WORLD CLASS ORGANIZATION:DELIGHTED CUSTOMER.EMPOWERED EMPLOYEES.MAXIMUM RETURN ON INVESTMENT.ALL ROUND PERFORMANCE EXCELLENCE.

TQM PIONEERSWALTER SHEWART:

FOUNDER OF P-D-C-A CYCLE.

ORIGINATOR OF STATISTICAL PROCSS CONTROL at A & T Bells Lab in 1930.

TQM PIONEERSW. EDWARD DEMING:

LED QUALITY REVOLUTION IN JAPAN POST WORLD WAR II.QUALITY IS A KEY COMPETITIVE ADVANTAGEDEMING QUALITY AWARD BY JAPAN IS THE MOST PRESTIGIOUS QUALITY AWARDDEMINGS FOURTEEN POINTS FOR EXCELLENCE.DEMINGS SEVEN DEADLY DISEASESDEMINGS CHAIN REACTION.DEMINGS TRIANGLE.DEMINGS CYCLE OR ACTION PLAN P-D-C-A .

TQM PIONEERSJOSEPH M. JURAN:

LED QUALITY REVOLUTION IN JAPAN POST WORLD WAR IIHE DEFINED QUALITY AS FITNESS FOR USE BY CUSTOMER.JURANs TRIOLOGY OF QUALITY PLANNING, QUALITY CONTROL & QUALITY IMPROVEMENT.STARTED JURANS INSTITUTE IN USA.INTRODUCED COST OF POOR QUALITY.DEVELOPING A QUALITY HABIT.THE UNIVERSAL BREAKTHROUGH SEQUENCE.

TQM PIONEERSPHILIP B. CROSBY :STARTED CROSBY QUALITY COLLEGE.CREATED THE CONCEPT OF Zero defect.DEFINED QUALITY AS CONFORMANCE TO REQUIRMENT.CROSBYS SIX Cs.CROSBYS FOUR ABSOLUTES OF QUALITY MANAGEMENT.CROSBYS QUALITY VACCINE.CROSBYS 14 STEPS FOR QUALITY IMPROVEMENT.

A.V. FeigenbaumORIGINATOR OF TQM CONCEPT.HIS THEORY OF THREE STEPS TO QUALITY: QUALITY LEADERSHIP, MODERN QUALITY TECHNOLOGY & ORGANIZATIONAL COMMITMENT.VIEWED QUALITY AS A STRATEGIC BUSINESS TOOL. GENICHI TAGUCHI :QUALITY LOSS FUNCTION.

KAORU ISHIKAWA :ORIGINATOR OF FISH BONE OR THE CAUSE AND EFFECT DIAGRAM.Quality begins with Education & ends with Education.First step of Quality is to know the customers Requirements.Ideal State of Quality Control occurs when Inspection is ni longer necessary.ORIGINATOR OF CONCEPT OF CWQC.RESPONSIBLE FOR INITIAL DEPLOYMENT OF QUALITY CIRCLES.REMOVE THE ROOT CAUSE & NOT THE SYSPTOMS.MASAAKI IMAI :POPULARIZED THE KAIZAN CONCEPT OF CONTINUOUS IMPROVEMENT.E. GOLDRAT THEORY OF CONSTRAINTS.

TAIICHI OHNO :FORMULATED THE FLEXIBLE MANUFACTURING SYSTEM(FMS).FATHER OF THE JUST-IN-TIME & KANBAN SYSTEM OF MANUFACTURING.FATHER OF TPS OR TOYOTA PRODUCTION SYSTEM.SHEIGO SHINGO :ORIGINATOR OF SINGLE MINUTE EXCHANGE OF DIES- SMED.INTRODUCING THE CONCEPT OF MODULAR MANUFACTURING.INTRODUCING THE CONCEPT OF Poka-Yoke or fool Proofing.

TQM PIONEERSALL OF THEM ADVOCATED INVOLVEMENT 0F TOP MANAGEMENT

DR. DEMINGS FOURTEEN POINTS ACHIEVE CONSTANCY OF PURPOSE.

LEARN A NEW PHILOSOPHY.

DO NOT DEPEND ON MASS INSPECTION.

REDUCE THE NO. OF VENDORS.

RECOGNISE TWO SOURCES OF FAULTS : -MANAGEMENT & PRODUCTION SYSTEMS. - PRODUCTION WORKER.

6. IMPROVE ON THE JOB TRAINING.

DR. DEMINGS FOURTEEN POINTS7. IMPROVE SUPERVISION.8. DRIVE OUT FEAR.9. IMPROVE COMMUNICATION.10. ELIMINATE FEAR.11. CONSIDER WORK STANDARDS CAREFULLY.12. TEACH STATISTICAL METHODS.13. ENCOURAGE NEW SKILLS.14. USE STATISTICAL KNOWLEDGE.

Demings Triangle :Management Commitment to Improvement( Points 1,2,14)Apply Statistical Methodology.(Points 3,5,6, 13).Improve Interrelationships(Points 4,7,8,9,10,11,12)

Demings Seven deadly Diseases:Lack of Constancy of Purpose.Emphasis on Short Term Profits.Over reliance on Performance Appraisals.Job hopping of Managers.Emphasis on Visual Controls.Excessive Medical Costs for Employee Health care.Excessive warranty & Legal costs.

The Deming Chain ReactionImprove qualityCost decrease because of less rework, fewer mistakes,fewer delays and snags, andbetter use of time and material Productivity improvesStay in businessCapture the market with better quality and lower priceProvide jobs and more jobs

Crosbys 6 Cs :ComprehensionCommitmentCompetenceCorrectionCommunicationContinuanceCROSBYS Four Absolutes of Quality : Quality is defined as conformance to requirement, not goodness.The system for achieving quality is prevention, not appraisal.The performance standard is zero defects, not that is close enough..The measurement of quality is the price of non-conformances, not indexes.

Five symptoms of Crosbys diagnosis of trouble company The company has an extensive field service for reworking and corrective actions.The outgoing product normally deviates from the customers requirements.Management does not provide a clear performances standard, so that employees develop their own.Management denies that it is the cause of problem. Managers tend to blame the workers in order to hide their inability the system.Management does not recognize the price of the non-conformance.

Crosbys 14 Steps for Quality Improvement :Management commitmentQuality improvement teamQuality measurementCost of qualityQuality awarenessCorrective actionZero defect planningSupervisor training

Crosbys 14 Steps for Quality Improvement :Zero defects dayGoal settingError cause removalRecognitionQuality councilsDo it all over again

Major Components of Crosbys Quality Vaccine (or Crosby Triangle)Integrity, policiesSystem, operationsCommunication

3 M PRACTICE.MURI Unreasonableness.

MURA Unevenness.

MUDA Wastage.

NINE WASTAGES(MUDA) :Wastages due to disdain, jealousy, politics among team members and within an organization.Wastages due to excess inventory of raw material, W-I-P, finished goods, consumables etc.Wastages due to Delay in processing of queries, transportation, communication etc..Wastages due to unwarranted Paper Work.Wastages due to loss of Production on account of machine Downtime.Wastages due to Product/Service Defects, reworks etc.Wastages due to Accidents.Wastages due to faulty Process Design & Control. Wastages due to Untapped & Misused Resources.

5 S of HOUSEKEEPING.SEIRI ORDERLINESS.

SEISO CLARITY.

SEITON TIDINESS.

SEIKETSU CLEANLINESS.

SHITSUKE Practice all the four together.

5 SSeiri (Organize). This means sorting and organizing items as per the frequency of usage. If the items are used once per year, they can be stored away from the work place; if the items are used once per month or once per week, they can be stored together but off-line. If the items are used daily, they should be stored at the work place itself.

Seiton (Neatness)- The items should be stored in an organized way. There should be a place for each item and each place is assigned with only one item. Name plates and coloured tags may be used for easy identification. If possible, the third dimension of the storage area should be used.

5 SSeiso (Shine the work place). This means that the work place should be cleaned such that it is free from burs, grease, oil, waste, scrap, etc.Seiketsu (Standardization). The employees should decide the standards for keeping the work place, machines, assails in neat and clean condition. The standard should be inspected randomly.

5 SShitsuke (Self-discipline). This means that the employees should treat 5 S as their way of life and develop self-discipline by way of wearing badges, following work procedure, punctuality and dedicating themselves to the organization, etc.

Ch 3 - 45 2000 by Prentice-Hall IncRussell/Taylor Oper Mgt 3/eQuality Awards And Certifications

The Malcolm Baldrige AwardThe Deming PrizeIndustry, regional, and company awardsInstitute of Industrial EngineersNASAEuropean Quality Award

Malcolm Baldrige Award Criteria - 1996Exhibit3-11CategoryMaximumPoints(1.0) Leadership 125(2.0) Information and Analysis 85(3.0) Strategic Planning 85(4.0) Human Resource Development and Management 85 (5.0) Process Management 85 (6.0) Business Results 450 (7.0) Customer Focus 85TOTAL POINTS 10003-15

THE CORE VALUES OF THE MALCOLM BALDRIGE NATIONAL QUALITY AWARDS (MBNQA)CUSTOMER DRIVEN QUALITY.

LEADERSHIP.

CONTINUOUS IMPROVEMENT & LEARNING.

VALUING EMPLOYEES.

FAST RESPONSE.

DESIGN QUALITY & PREVENTION.

LONG RANGE OUTLOOK OF THE QUALITY PLAN.

MANAGEMENT BY FACT.

PARTNERSHIP DEVELOPMENT.

CORPORATE RESPONSIBILITY & CITIZENSHIP.

RESULT FOCUS.

THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD ( MBNQA) CRITERIACATEGORIES/ ITEMS

LEADERSHIPORGANISATIONAL LEADERSHIP ---85 PUBLIC RESPONSIBILITY & CITIZENSHIP--40

STRATEGIC PLANNINGSTRATEGY DEVELOPMENT40STRATEGY DEPLOYMENT--- 45

CUSTOMER & MARKET FOCUSCUSTOMER & MARKET KNOWLEDGE 40CUSTOMER SATISFACTION & RELATIONSHIP--45

INFORMATION & ANALYSISMEASUREMENT OF ORGANISATIONAL PERFORMANCE40ANALYSIS OF ORGANISATIONAL PERFORMANCE ----45

HUMAN RESOURCE FOCUSWORK SYSTEM -- 35 EMPLOYEE EDUCATION, TRAINING & DEVELOPMENT25EMPLOYEE WELLBEING & SATISFACTION ---25

POINT VALUES

125

85

85

85

85

PROCESS MANAGEMENTPRODUCT & SERVICE PROCESSES --55SUPPORT PROCESSES --15SUPPLIES & PARTNERING PROCESSES --15

BUSINESS RESULTSCUSTOMER FOCUSED RESULTS- - 115FINANCIAL & MARKET RESULTS 115HUMAN RESOURCE RESULTS --- 80 SUPPLIES & PARTNER RESULTS --- 25 ORGANISATIONAL EFFECTIVENESS RESULTS--115

TOTAL POINTS

85

450

1000

THE MALCOLM BRIDGE CRITERIA FOR PERFORMANCE EXCELLENCE FRAMEWORK- A SYSTEM PROSPECTIVECUSTOMERS & MARKET FOCUSED STRATEGY & ACTION PLAN2. STRATEGICPLANNING5.HUMANRESOURCEFOCUS1. LEADERSHIP3.CUSTOMER & MARKETFOCUS6.PROCESSMANAGEMENT7.BUSINESSRESULTS4. INFORMATION & ANALYSISFIGURE NO 33

EUROPEAN QUALITY AWARDS: SCORING PROCESS

ENABLERS 500 RESULTS 500 FIGURE NO. 32

LEADERSHIP

100PROCESSES

140BUSINESSUTILITIES150

PEOPLE MANAGEMENT 90POLICY & STRATEGY 80RESOURCES 90PEOPLE SATISFACTION 90CUSTOMER SATISFACTION 200IMPACT ON SOCIETY 60

DEMING PRIZE CRITERIA Policy Organisation and Operation Education and training Collecting and using information Analysis Standardisation Control Quality assurance Effect Planning for future Deming Prize has 10 main categories:

I. Policy:Management, quality and quality control policy.Policy-making method. Policy correctness and consistency. Use of statistical methods.Policy transmission and dissemination. Checking policy and attainment. Relation between long-term and short-term policies.

II. Organisation and operation:Clarification of authority and responsibility.Correctness of delegation of power.Cooperation among divisions. Committee activities. Use of staff. Use of QC circle activities. Quality control audits.

III. Education and training:Plans and actual accomplishments. Quality-mindedness, control-mindedness & understanding of effects. How well education on statistical-mindedness and methods has been taken. Understanding of effects. Education of affiliates (especially subcontractors, suppliers and sales companies). QC circle activities. Suggestion system for improvements and its workings.

IV. Collecting and using information :Collection of outside information. Passing information among divisions. Speed of information transmittal (e.g., use of computers). Information processing and statistical analysis.

V. Analysis :Selection of priority problems and themes. Correctness of analytical methods. Use of statistical methods relating to companys technology. Standards themselves. Use of statistical methods. Accumulated technical expertise. Use of standards.

VI. Standardisation :System of standards. Method of setting and revising of standards.Actual setting and revising of standards. Standards themselves. Use of statistical methods. Accumulated technical expertise. Use of standards.

VII. Control:System for controlling quality, cost and production volume. Control points and control items. Use of statistical means (e.g., control charts) and thinking. Contributions by QC circles. Actual control activities. State of control.

VIII. Quality assurance :New product development methods (e.g., quality analysis and deployment, reliability and design studies). Safety and product liability prevention. Process design, analysis, control and improvement. Process capability.Measurement and inspection. Equipment, subcontracting, purchasing and serving control. Quality assurance system and diagnosis. Use of statistical methods. Quality assessment and audit. Actual size of quality assurance.

IX. Effect :Measuring effect. Tangible benefits such as quality, service, delivery scheduling, cost, profit, safety and environment. Intangible benefits. Convergence between expected and actual effect.

X. Planning for future :Understanding of present conditions and specificity. Policies for correcting defects. Plans for promoting TQC. Relation to long-term plans.

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********************************************************7Better quality is profitable in 2 ways: (1) Increased customer demand (2) Lower production costs ***************************************************************************************