UNIT - 5 PRODUCTIVITY AND QUALITY

STRUCTURE

5.0 Learning Objectives

5.1 Introduction

5.2 TQM

5.3 Deming’s 14 Principles

5.4 PDCA Cycle

5.5 7QC Tools and its advancements

5.6 ISO 9000 – 2000 Clauses

5.7 Six Sigma

5.8 Total Productive Maintenance (TPM)

5.9 5S

5.10 Summary

5.11 Keywords

5.12 Learning Activity

5.13 Unit End Questions

5.14 References

5.0 LEARNING OBJECTIVES

After studying this unit, you will be able to:

 Describe Total quality management

 Identify the 14 principles of Deming
 State the uses of PDCA cycle
 Explain 5S
 Describe KAIZEN

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5.1 INTRODUCTION

Productivity and Quality

After companies determine customer needs, they must concentrate on meeting those needs by
yielding high quality products at an efficient rate. Companies can improve quality and
productivity by securing the commitments of all three levels of management and employees as
follows:

 Top‐level management: Implement sound management practices, use research and

development effectively, adopt modern manufacturing techniques, and improve time
management.
 Middle management: Plan and coordinate quality and productivity efforts.
 Low‐level management: Work with employees to improve productivity through
acceptance of change, commitment to quality, and continually improving all facets of
their work.

Productivity is the relationship between a given amount of output and the amount of input
needed to produce it. Profitability results when money is left over from sales after costs are
paid. The expenditures made to ensure that the product or service meets quality specifications
affect the final or overall cost of the products and/or services involved. Efficiency of costs will
be an important consideration in all stages of the market system from manufacturing to
consumption. Quality affects productivity. Both affect profitability. The drive for any one of
the three must not interfere with the drive for the others. Efforts at improvement need to be
coordinated and integrated. The real cost of quality is the cost of avoiding nonconformance and
failure. Another cost is the cost of not having quality—of losing customers and wasting
resources.

As long as companies continually interact with their customers and various partners, and
develop learning relationships between all levels of management and employees, the levels of
productivity and quality should remain high.

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5.2 TQM

Total Quality Management (TQM) is a philosophy that says that uniform commitment to
quality in all areas of an organization promotes an organizational culture that meets consumers'
perceptions of quality.

The concept of TQM rests largely on five principles:

1. Produce quality work the first time.

2. Focus on the customer.
3. Have a strategic approach to improvement.
4. Improve continuously.
5. Encourage mutual respect and teamwork.

To be effective in improving quality, TQM must be supported at all levels of a firm, from the
highest executive to the lowest‐level hourly employee. TQM extends the definition of quality
to all functional areas of the organization, including production, marketing, finance, and
information systems. The process begins by listening to customers' wants and needs and then
delivering goods and services that fulfill these desires. TQM even expands the definition of
customer to include any person inside or outside the company to whom an employee passes his
or her work. In a restaurant, for example, the cooks' customers are the waiters and waitresses.
This notion encourages each member of the organization to stay focused on quality and remain
fully aware of his or her contribution to it and responsibility for it.

The TQM philosophy focuses on teamwork, increasing customer satisfaction, and lowering
costs. Organizations implement TQM by encouraging managers and employees to collaborate
across functions and departments, as well as with customers and suppliers, to identify areas for
improvement, no matter how small. Teams of workers are trained and empowered to make
decisions that help their organization achieve high standards of quality. Organizations shift
responsibility for quality control from specialized departments to all employees. Thus, total
quality management means a shift from a bureaucratic to a decentralized approach to control.

An effective TQM program has numerous benefits. Financial benefits include lower costs,
higher returns on sales and investment, and the ability to charge higher rather than competitive
prices. Other benefits include improved access to global markets, higher customer retention

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levels, less time required to develop new innovations, and a reputation as a quality firm. Only
a small number of companies use TQM because implementing an effective program involves
much time, effort, money, and patience. However, firms with the necessary resources may gain
major competitive advantages in their industries by implementing TQM.

5.3 DEMING’S 14 PRINCIPLES

W. Edwards Deming was educated as electrical engineer, but also did work as a statistician,
professor, author, lecturer, and management consultant. It was this combination of skills that
allowed him to be one of the most influential management thinkers.

Deming became interested in how statistical analysis could be used to achieve better quality
control in the 1930s. His quality-control methods helped post-World War II Japan rebuild its
devastated economy.

1. Create a constant purpose toward improvement.

 Plan for quality in the long term.
 Resist reacting with short-term solutions.
 Don't just do the same things better – find better things to do.
 Predict and prepare for future challenges, and always have the goal of getting
better.
2. Adopt the new philosophy.
 Embrace quality throughout the organization.
 Put your customers' needs first, rather than react to competitive pressure – and
design products and services to meet those needs.
 Be prepared for a major change in the way business is done. It's about leading,
not simply managing.
 Create your quality vision, and implement it.
3. Stop depending on inspections.
 Inspections are costly and unreliable – and they don't improve quality, they
merely find a lack of quality.
 Build quality into the process from start to finish.
 Don't just find what you did wrong – eliminate the "wrongs" altogether.

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  Use statistical control methods – not physical inspections alone – to prove that
the process is working.
4. Use a single supplier for any one item.
 Quality relies on consistency – the less variation you have in the input, the less
variation you'll have in the output.
 Look at suppliers as your partners in quality. Encourage them to spend time
improving their own quality – they shouldn't compete for your business based
on price alone.
 Analyze the total cost to you, not just the initial cost of the product.
 Use quality statistics to ensure that suppliers meet your quality standards.
5. Improve constantly and forever.
 Continuously improve your systems and processes. Deming promoted the Plan-
Do-Check-Act approach to process analysis and improvement.
 Emphasize training and education so everyone can do their jobs better.
 Use kaizen as a model to reduce waste and to improve productivity,
effectiveness, and safety.
6. Use training on the job.
 Train for consistency to help reduce variation.
 Build a foundation of common knowledge.
 Allow workers to understand their roles in the "big picture."
 Encourage staff to learn from one another, and provide a culture and
environment for effective teamwork.
7. Implement leadership.
 Expect your supervisors and managers to understand their workers and the
processes they use.
 Don't simply supervise – provide support and resources so that each staff
member can do his or her best. Be a coach instead of a policeman.
 Figure out what each person actually needs to do his or her best.
 Emphasize the importance of participative management and transformational
leadership.
 Find ways to reach full potential, and don't just focus on meeting targets and
quotas.

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 8. Eliminate fear.
 Allow people to perform at their best by ensuring that they're not afraid to
express ideas or concerns.
 Let everyone know that the goal is to achieve high quality by doing more things
right – and that you're not interested in blaming people when mistakes happen.
 Make workers feel valued, and encourage them to look for better ways to do
things.
 Ensure that your leaders are approachable and that they work with teams to act
in the company's best interests.
 Use open and honest communication to remove fear from the organization.
9. Break down barriers between departments.
 Build the "internal customer" concept – recognize that each department or
function serves other departments that use their output.
 Build a shared vision.
 Use cross-functional teamwork to build understanding and reduce adversarial
relationships.
 Focus on collaboration and consensus instead of compromise.
10. Get rid of unclear slogans.
 Let people know exactly what you want – don't make them guess. "Excellence
in service" is short and memorable, but what does it mean? How is it achieved?
The message is clearer in a slogan like "You can do better if you try."
 Don't let words and nice-sounding phrases replace effective leadership. Outline
your expectations, and then praise people face-to-face for doing good work.
11. Eliminate management by objectives.
 Look at how the process is carried out, not just numerical targets. Deming said
that production targets encourage high output and low quality.
 Provide support and resources so that production levels and quality are high and
achievable.
 Measure the process rather than the people behind the process.
Remove barriers to pride of workmanship.
 Allow everyone to take pride in their work without being rated or compared.
 Treat workers the same, and don't make them compete with other workers for
monetary or other rewards. Over time, the quality system will naturally raise the
level of everyone's work to an equally high level.

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 12. Implement education and self-improvement.
 Improve the current skills of workers.
 Encourage people to learn new skills to prepare for future changes and
challenges.
 Build skills to make your workforce more adaptable to change, and better able
to find and achieve improvements.
13. Make "transformation" everyone's job.
 Improve your overall organization by having each person take a step toward
quality.
 Analyze each small step, and understand how it fits into the larger picture.
 Use effective change management principles to introduce the new philosophy
and ideas in Deming's 14 points.

5.4 PDCA CYCLE

PDCA stands for Plan, Do, Check and Act. It is also known as PDSA, the “Deming Wheel,”
and “Shewhart Cycle”.
Imagine that your customer satisfaction score on a business ratings website has dipped. When
you look at recent comments, you see that your customers are complaining about late delivery,
and that products are being damaged in transit.
So, you decide to run a small pilot project for a month, using a new supplier to deliver your
products to a sample set of customers. And you're pleased to see that the feedback is positive.
As a result, you decide to use the new supplier for all your orders in the future.
What you've just done is a single loop called the PDCA Cycle. This is an established tool for
achieving continuous improvement in your business.
The PDCA approach was pioneered by Dr William Deming, and we've worked closely with
The Deming Institute to produce this article. In it, we outline the key principles of PDCA, and
explain when and how to put them into practice.
What Is PDCA?
In the 1950s, management consultant Dr William Edwards Deming developed a method of
identifying why some products or processes don't work as hoped. His approach has since
become a popular strategy tool, used by many different types of organizations.

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It allows them to formulate theories about what needs to change, and then test them in a
"continuous feedback loop."
Note:
Deming himself used the concept of Plan-Do-Study-Act (PDSA). He found that the focus
on Check is more about the implementation of a change.
He preferred to focus instead on studying the results of any innovations, and to keep looking
back at the initial plan. He stressed that the search for new knowledge is always guided by a
theory – so you should be as sure as you can that your theory is right!
The Four Phases of the PDCA Cycle
With the PDCA cycle you can solve problems and implement solutions in a rigorous,
methodical way. Let's look at each of the four stages in turn:
1. Plan
First, identify and understand your problem or opportunity. Perhaps the standard of a finished
product isn't high enough, or an aspect of your marketing process should be getting better
results.
Explore the information available in full. Generate and screen ideas, and develop a robust
implementation plan.
Be sure to state your success criteria and make them as measurable as possible. You'll return
to them later in the Check stage.
2. Do
Once you've identified a potential solution, test it safely with a small-scale pilot project. This
will show whether your proposed changes achieve the desired outcome – with minimal
disruption to the rest of your operation if they don't. For example, you could organize a trial
within a department, in a limited geographical area, or with a particular demographic.
As you run the pilot project, gather data to show whether the change has worked or not. You'll
use this in the next stage.
3. Check
Next, analyze your pilot project's results against the criteria that you defined in Step 1, to assess
whether your idea was a success.
If it wasn't, return to Step 1. If it was, advance to Step 4.
You may decide to try out more changes, and repeat the Do and Check phases. But if your
original plan definitely isn't working, you'll need to return to Step 1.

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4. Act
This is where you implement your solution. But remember that PDCA/PDSA is a loop, not a
process with a beginning and end. Your improved process or product becomes the new
baseline, but you continue to look for ways to make it even better.
The four stages of the cycle are illustrated in Figure 1, below:
The PDCA cycle encourages continuous improvement.
When to Use PDCA
The PDCA/PDSA framework works well in all types of organizations. It can be used to
improve any process or product, by breaking them down into smaller steps or development
stages, and exploring ways to improve each one.
It's particularly helpful for implementing Total Quality Management or Six
Sigma initiatives, and for improving business processes generally.
However, going through the PDCA/PDSA cycle can be much slower than a straightforward,
"gung ho" implementation. So, it might not be the appropriate approach for dealing with an
urgent problem.
It also requires significant buy-in from team members, and offers fewer opportunities for
radical innovation – which may be what your organization needs instead.
How to Use PDCA to Improve Personal Performance
While PDCA/PDSA is an effective business tool, you can also use it to improve your own
performance:
First, Plan: Identify what's holding you back personally, and how you want to progress. Look
at the root causes of any issues, and set goals to overcome these obstacles.
Next, Do: When you've decided on your course of action, safely test different ways of getting
the results that you want.
Then, Check: Review your progress regularly, adjust your behavior accordingly, and consider
the consequences of your actions.
Finally, Act: Implement what's working, continually refine what isn't, and carry on the cycle
of continuous improvement.
Key Points
The PDCA/PDSA cycle is a continuous loop of planning, doing, checking (or studying), and
acting. It provides a simple and effective approach for solving problems and managing change.
The model is useful for testing improvement measures on a small scale before updating
procedures and working practices.

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The approach begins with a Planning phase in which problems are clearly identified and
understood, and a theory for improvement is defined. Potential solutions are tested on a small
scale in the Do phase, and the outcome is then studied and Checked.
Go through the Do and Check stages as many times as necessary before the full, polished
solution is implemented, in the Act phase of the cycle.

5.4.1 Kaizen

Fig 5.1 kaizen

Kaizen is a Japanese term meaning change for the better or continuous improvement. It is a
Japanese business philosophy that concerns the processes that continuously improve
operations and involve all employees. Kaizen sees improvement in productivity as a gradual
and methodical process.

The concept of kaizen encompasses a wide range of ideas. It involves making the work
environment more efficient and effective by creating a team atmosphere, improving everyday
procedures, ensuring employee engagement, and making a job more fulfilling, less tiring, and
safer.

KEY TAKEAWAYS

 Kaizen is a Japanese business philosophy that focuses on gradually improving

productivity and making a work environment more efficient.

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  Kaizen supports change from any employee at any time.
 Kaizen translates to change for the better or continuous improvement.
 Kaizen's small changes can involve quality control, just-in-time delivery, standardized
work, the use of efficient equipment, and the elimination of waste.
 The Kaizen methodology underscores that small changes now can have big future
impacts. supports.

Understanding Kaizen

Some of the key objectives of the kaizen philosophy include quality control, just-in-time
delivery, standardized work, the use of efficient equipment, and the elimination of waste.

The overall goal of kaizen is to make small changes over a period of time to create
improvements within a company. That doesn't mean alterations happen slowly. The kaizen
process simply recognizes that small changes now can have huge impacts in the future.

Improvements can come from any employee at any time. The idea is that everyone has a stake
in the company's success and everyone should strive, at all times, to help make the business
model better.

Many companies have adopted the kaizen concept. Most notably, Toyota employs the kaizen
meaning and philosophy within its organization. It esteems kaizen as one of its core values.
To improve its production system, Toyota encourages and empowers all employees to identify
areas of potential improvement and create viable solutions.

How Does Kaizen Work?

Kaizen involves five key principles: know your customer, let it flow, go to gemba (or the real
place), empower people and be transparent.

These five principles lead to three major outcomes: elimination of waste (also referred to
as economic efficiency), good housekeeping, and standardization. Ideally, kaizen becomes so
ingrained in a company's culture that it eventually becomes natural to employees.

The kaizen meaning posits that there is no perfect end and that everything can be improved
upon. People must strive to evolve and innovate constantly.

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The basic idea of kaizen is that people who perform certain tasks and activities know the most
about them. Empowering those people to effect change is the best strategy for improvement.

Teamwork is core to kaizen, where regular team meetings are held involving discussions about
improvements, changes, and projects.

What Are Some Benefits of Kaizen?

Kaizen offers companies many valuable benefits. Some of them are:4

 Greater staff satisfaction

 Improved customer satisfaction
 Reduction in staff turnover
 Strengthened employee loyalty
 Lower costs
 Greater efficiency and productivity
 Better problem solving

Kaizen and the PDCA Cycle

Improvements generally follow the PDCA cycle format. PDCA stands for Plan-Do-Check-
Act. The Plan portion includes proposing and mapping out changes so that everyone knows
what to expect when teams try to solve a problem.

The Do stage implements the best solution for the problem. The Check step involves
evaluating the solution to the problem to see if it worked.

When a company Acts, it determines whether or not the solution should become a company
standard or if it needs further changes. If managers decide to implement more changes, kaizen
goes back to the Plan step and the process starts over.5

Just-in-Time Inventory Strategy

One of the key goals of the kaizen process is to reduce waste and increase efficiency in the
production cycle. A just-in-time (JIT) inventory strategy allows management to minimize
excess inventory by matching the delivery of raw materials from suppliers with production
schedules.

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The JIT strategy is also known as the Toyota Production System (TPS), for the company that
popularized it, JIT helps companies cut costs because manufacturers do not have to
pay inventory carrying costs. It also reduces waste because companies are not left with extra
inventory should a customer cancel or postpone an order.3

Kanban is an inventory control system used in conjunction with a JIT strategy. It provides
employees with visual cues that tell them it is time to order parts and materials as they run
out.

The system relies on colored cards that track production and alert employees when it's time to
replenish a needed part or material. It enables employees to quickly order the correct number
of parts from the supplier and have them delivered to where they are needed in the factory.

The goal of kanban is to ensure the efficient running of the factory assembly line and to
prevent bottlenecks from occurring.6

What Are the 5 Elements of Kaizen?

The five kaizen elements or principles are: know your customer, let it flow, go to gemba,
empower people, and be transparent. People also sometimes ask what kaizen 5S refers to. It's
a process often used in lean manufacturing and relates to five steps of improvement: Sort,
Straighten, Sweep, Standardize, and Sustain. A 5S event follows each of these steps one day
at a time.7

What Is the Kaizen Method?

It's a business philosophy with guiding principles and tools that seeks to involve all employees
in the gradual and continuous improvement of various areas of a company. The kaizen method
focuses on engaging employees and using teamwork to create a successful and enjoyable work
environment.

What Is an Example of Kaizen?

Toyota is a famous example of a company using kaizen to sustain its success. Another
commonly known example of kaizen in action involves Ford Motor Company, which
embraced kaizen to cut the time it took to complete various manufacturing processes.

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What Are the Main Tools of Kaizen?

The kaizen methodology uses different tools depending on the goal. For instance, the 5S tool
is often used in lean manufacturing and to ensure that workplaces are efficient, productive,
and safe. JIT and Kanban are used for inventory control. The five whys (what, when, where,
why, and who) is a tool used to reveal the root cause of a problem. Value stream mapping is
an analytic tool that is used to identify places to eliminate waste. Follow-up events are tools
used to sustain improvements.

5.4.2 quality circles

A quality circle is a participatory management technique that enlists the help of employees in
solving problems related to their own jobs. Circles are formed of employees working together
in an operation who meet at intervals to discuss problems of quality and to devise solutions for
improvements. Quality circles have an autonomous character, are usually small, and are led by
a supervisor or a senior worker. Employees who participate in quality circles usually receive
training in formal problem-solving methods—such as brain-storming, pareto analysis, and
cause-and-effect diagrams—and are then encouraged to apply these methods either to specific
or general company problems. After completing an analysis, they often present their findings
to management and then handle implementation of approved solutions. Pareto analysis, by the
way, is named after the Italian economist, Vilfredo Pareto, who observed that 20 percent of
Italians received 80 percent of the income—thus the principle that most results are determined
by a few causes.
The interest of U.S. manufacturers in quality circles was sparked by dramatic improvements in
the quality and economic competitiveness of Japanese goods in the post-World War II years.
The emphasis of Japanese quality circles was on preventing defects from arising in the first
place rather than through culling during post-production inspection. Japanese quality circles
also attempted to minimize the scrap and downtime that resulted from part and product defects.
In the United States, the quality circle movement evolved to encompass the broader goals of
cost reduction, productivity improvement, employee involvement, and problem-solving
activities.
The quality circle movement, along with total quality control, while embraced in a major way
in the 1980s, has largely disappeared or undergone significant transformations for reasons
discussed below.

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BACKGROUND

Quality circles were originally associated with Japanese management and manufacturing
techniques. The introduction of quality circles in Japan in the postwar years was inspired by
the lectures of W. Edwards Deming (1900—1993), a statistician for the U.S. government.
Deming based his proposals on the experience of U.S. firms operating under wartime industrial
standards. Noting that American management had typically given line managers and engineers
about 85 percent of the responsibility for quality control and line workers only about 15 percent,
Deming argued that these shares should be reversed. He suggested redesigning production
processes to account more fully for quality control, and continuously educating all employees
in a firm—from the top down—in quality control techniques and statistical control
technologies. Quality circles were the means by which this continuous education was to take
place for production workers.
Deming predicted that if Japanese firms adopted the system of quality controls he advocated,
nations around the world would be imposing import quotas on Japanese products within five
years. His prediction was vindicated. Deming's ideas became very influential in Japan, and he
received several prestigious awards for his contributions to the Japanese economy.
The principles of Deming's quality circles simply moved quality control to an earlier position
in the production process. Rather than relying upon post-production inspections to catch errors
and defects, quality circles attempted to prevent defects from occurring in the first place. As an
added bonus, machine downtime and scrap materials that formerly occurred due to product
defects were minimized. Deming's idea that improving quality could increase productivity led
to the development in Japan of the Total Quality Control (TQC) concept, in which quality and
productivity are viewed as two sides of a coin. TQC also required that a manufacturer's
suppliers make use of quality circles.
Quality circles in Japan were part of a system of relatively cooperative labor-management
relations, involving company unions and lifetime employment guarantees for many full-time
permanent employees. Consistent with this decentralized, enterprise-oriented system, quality
circles provided a means by which production workers were encouraged to participate in
company matters and by which management could benefit from production workers' intimate
knowledge of the production process. In 1980 alone, changes resulting from employee
suggestions resulted in savings of $10 billion for Japanese firms and bonuses of $4 billion for
Japanese employees.

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Active American interest in Japanese quality control began in the early 1970s, when the U.S.
aerospace manufacturer Lockheed organized a tour of Japanese industrial plants. This trip
marked a turning point in the previously established pattern, in which Japanese managers had
made educational tours of industrial plants in the United States. Thereafter quality circles
spread rapidly here; by 1980, more than one-half of firms in the Fortune 500 had implemented
or were planning to implement quality circles. To be sure, these were not installed uniformly
everywhere but introduced for experimental purposes and later selectively expanded—and also
terminated.
In the early 1990s, the U.S. National Labor Relations Board (NLRB) made several important
rulings regarding the legality of certain forms of quality circles. These rulings were based on
the 1935 Wagner Act, which prohibited company unions and management-dominated labor
organizations. One NLRB ruling found quality programs unlawful that were established by the
firm, that featured agendas dominated by the firm, and addressed the conditions of employment
within the firm. Another ruling held that a company's labor-management committees were in
effect labor organizations used to bypass negotiations with a labor union. As a result of these
rulings, a number of employer representatives expressed their concern that quality circles, as
well as other kinds of labor-management cooperation programs, would be hindered. However,
the NLRB stated that these rulings were not general indictments against quality circles and
labor-management cooperation programs, but were aimed specifically at the practices of the
companies in question.

REQUIREMENTS FOR SUCCESS

The problems of adaptation, which have caused quality circles to be abandoned, are made plain
by a look at the conditions two experts think are necessary for the success of quality circles.
Ron Basu and J. Nevan Wright, in their book Quality Beyond Six Sigma (another quality
management technique) specified seven conditions for successful implementation of quality
circles. These are summarized below:
1. Quality circles must be staffed entirely by volunteers.
2. Each participant should be representative of a different functional activity.
3. The problem to be addressed by the QC should be chosen by the circle, not by
management, and the choice honored even if it does not visibly lead to a management
goal.

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 4. Management must be supportive of the circle and fund it appropriately even when
requests are trivial and the expenditure is difficult to envision as helping toward real
solutions.
5. Circle members must receive appropriate training in problem solving.
6. The circle must choose its own leader from within its own members.
7. Management should appoint a manager as the mentor of the team, charged with
helping members of the circle achieve their objectives; but this person must not
manage the QC.
"Quality circles have been tried in the USA and Europe, often with poor results," Basu and
Wright say. "From our combined first-hand experience of quality circles in Australasia, the UK
and Europe, South America, Africa, Asia and India, we believe that quality circles will work if
[these] rules are applied."
Any experienced manager, contemplating the rules shown above and the typical management
environments in which he or she works or has worked in the past will be able to discern quite
readily why QC has not taken a firm hold in the U.S. environment. As for the small business
owner, he or she may actually be in a very good position to try this approach if it feels natural.
An obviously important element of success, confirmed by Basu and Wright, is that QC must
be practiced in an environment of trust and empowerment.

5.5 7QC TOOLS AND ITS ADVANCEMENTS

The 7QC tools, also known as the seven basic quality tools, are a set of techniques used in
quality management to analyze and solve quality problems. The 7QC tools are:
Pareto Chart: A bar graph that displays the relative frequency or size of problems in descending
order of importance.
Cause-and-Effect Diagram (Fishbone or Ishikawa Diagram): A diagram that helps identify the
potential causes of a problem by organizing them into categories.
Check Sheet: A simple form used to collect and record data.
Scatter Diagram: A graph that shows the relationship between two variables.
Control Chart: A graph used to monitor a process and detect any changes or variations.
Histogram: A bar chart that shows the distribution of data.
Flowchart: A visual representation of a process that helps identify areas for improvement.

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Advancements in technology have led to the development of digital versions of the 7QC tools,
such as software applications that automate the analysis and presentation of data. Additionally,
newer tools have been developed that complement the 7QC tools, such as:
Statistical Process Control (SPC): A method used to monitor and control a process through the
use of statistical analysis.
Design of Experiments (DOE): A technique used to systematically test and evaluate the impact
of various factors on a process or product.
Failure Mode and Effects Analysis (FMEA): A structured approach used to identify and
mitigate potential failures in a process or product.
Total Quality Management (TQM): An integrated approach to quality management that
involves all employees and departments in the organization in the pursuit of continuous
improvement.
Overall, the advancements in technology and the development of new tools have expanded the
capabilities of quality management and enabled organizations to improve their quality
processes and achieve better results.

5.6 ISO 9000 – 2000 CLAUSES

With the ISO 9000:2000 draft review process moving into its last phase, there has been a
sudden increase of interest in the scope and interpretation of the new requirements. Registrars,
auditors, consultants and course providers are all under pressure to develop their positions on
specific, technical issues. Companies using ISO 9000 quality systems are also growing
impatient as they wait to find out what they'll need to do to upgrade their systems.

The most visible changes are in the structure of the ISO 9000 family of standards and in the
sectional organization of the ISO 9001 standard. New requirements are predominantly in the
areas of customer-related processes and continual improvement. There are also miscellaneous
new requirements pertaining to process control, measuring and monitoring devices, training
and awareness, internal communication, work environment, and legal and regulatory
requirements.

Structure

The ISO 9000 series now consists of three standards:

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ISO 9000:2000 Quality Management Systems -- Fundamentals and Vocabulary

ISO 9001:2000 Quality Management Systems -- Requirements

ISO 9004:2000 Quality Management Systems -- Guidance for Performance Improvement

ISO 9000 discusses the underlying concepts, approaches and roles of key elements and
provides definitions for the new vocabulary. ISO 9000 is not intended to be used as a
specification; however, it is named in ISO 9001 as a normative reference and thus can be used
by auditors to support their interpretations of ISO 9001 requirements.

ISO 9001 is the actual specification for the quality management system. Its requirements
define the criteria for the quality system audit. The role of this standard in the series has not
changed, but its content and sectional organization are completely revised. Quality system
requirements are now organized into four sections: Section 5 -- Management Responsibility;
Section 6 -- Resource Management; Section 7 -- Product and/or Service Realization; and
Section 8 -- Measurement, Analysis and Improvement. This new organization makes ISO 9001
more compatible with the ISO 14001 (environmental) standard, and is consistent with ISO
9004's Plan-Do-Check-Act improvement cycle. It also corrects the undue emphasis on the
manufacturing industries that characterized previous editions.

ISO 9002 and ISO 9003 will be discontinued. Instead of choosing a standard with the
appropriate scope, all companies will now use ISO 9001, but they're allowed to reduce the
scope of the standard to exclude requirements that don't apply. The reduction of scope may
only be applied to Section 7 -- Product and/or Service Realization, and exclusions may not
affect the organization's ability to meet requirements. Reduction of scope must be clearly
identified in the quality manual.

The role of ISO 9004 in the series is unchanged. As in previous editions, it's a guide for
developing quality management systems. However, it has been completely rewritten to align it
with the new ISO 9001. ISO 9004 is not named in ISO 9001 as a normative reference, and thus
it can't be used to define audit criteria for the ISO 9001 certification audit.

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Overview of new requirements

The most important new requirements in ISO 9001:2000 concern customer- related processes
and continual improvement. With regard to customer processes, the new requirements call for
identifying customer requirements, needs and expectations; determining customer satisfaction;
establishing procedures for customer communication; and making employees aware of the
importance of meeting customer requirements. In the area of continual improvement, the new
requirements concern the quality policy, quality objectives, quality planning, quality
performance data and management reviews. There are also miscellaneous new requirements
for process control, measuring and monitoring devices, training and awareness, internal
communication, work environment, and legal and regulatory requirements.

Rather than being grouped in specific, additional clauses, the new requirements are spread
throughout the standard and are often restated and expanded under several sections. For
example, requirements pertaining to process control are first introduced in Section 5, are
developed in two separate clauses of Section 7, and then are restated in Section 8. This approach
follows the logic of the standard's new organization, but it also makes it difficult to identify
and interpret the requirements. Often the intent of the standard can be interpreted only after
related requirements are culled from different sections and analyzed together.

Customer-related processes

ISO 9001:1994 had two clauses directly relevant to customer-related processes: Clause 4.3 --
Contract Review and Clause 4.7 -- Customer-Supplied Product. In the new revision, both
clauses have been renamed and edited, but the underlying requirements are basically
unchanged. The corresponding clauses in ISO 9000:2000 are 7.2.2 -- Review of Customer
Requirements and 7.5.3 -- Customer Property.

In addition to these two, there are six new clauses relevant to customer-related processes:

Clause 5.1 requires top management to demonstrate its commitment to creating awareness of
the importance of fulfilling customer requirements.

Clause 5.2 requires top management to ensure that customer needs and expectations are
determined and converted into specific requirements.

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Clause 5.6.3 requires that the management representative ensure awareness of customer
requirements throughout the organization.

Clause 7.2.1 requires the organization to implement a process for identifying customer
requirements. The process is to include requirements that are not specified but are necessary
for fitness of purpose; requirements dictated by laws and regulations; and requirements for
availability, delivery and support.

Clause 7.2.3 requires the organization to define and implement arrangements for
communication with customers.

Clause 8.2.1.1 requires the organization to establish a system for obtaining and using
information on customer satisfaction and dissatisfaction.

Together, these clauses seem to demonstrate that the standard now requires organizations to
include in the quality system all departments and functions that deal with and represent
customers. Typically, these would include marketing, sales, customer service, billing and
servicing. Once this intent is understood and accepted, interpretation and implementation of all
underlying requirements will follow naturally. Like everyone else in the system, these
functions must develop effective methods and processes, document them in procedures, and
maintain records of their activities.

To be sure, there will be a lot of resistance to such a sweeping interpretation in many

companies. Marketing and sales people genuinely care about the quality of the product or
service they sell, but they don't necessarily see their own work as being directly relevant to
quality. Many engineers had this kind of adverse reaction when ISO 9000 asked them to define
their methods and write procedures for the design and development process.

The effort necessary to implement the new requirements will depend on the complexity of
marketing, sales and customer service operations, and on how much documentation already
exists. Typically, implementation will consist of the following actions:

Revising existing contract review procedures and/or developing new procedures to document
the processes for identification of customer requirements

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 Developing a new procedure for measuring customer satisfaction and dissatisfaction, which
may incorporate or reference the existing procedure for customer complaints

Developing procedures and work instructions defining arrangements for communication with
customers in matters pertaining to product information, order handling, customer complaints
and customer feedback

Establishing programs for creating awareness of customer requirements and the importance of
meeting these requirements

Developing measures to ensure that customer needs and expectations are determined and
converted into specific requirements. A written procedure is not explicitly required, but there
must be a means of demonstrating conformance.

Continual improvement

ISO 9001:2000 doesn't actually have a clause named "Continual Improvement," which is
curious because references to that concept are everywhere. Many of the elements supporting
the continual improvement cycle were already required in previous editions of the standard.
But now there is a new, stronger linkage between these elements, and there are several
completely new requirements. Identifying the requirements that pertain to continual
improvement is not a precise science. The following requirements are all new; whether they're
discussed here or under another heading doesn't really matter:

Clause 5.4 requires the quality policy to include commitments to meeting requirements and to
continual improvement, provide a framework for establishing and reviewing quality objectives,
and be periodically reviewed for continuing suitability.

Clause 5.5.1 requires the organization to establish quality objectives supporting the quality
policy and the commitment to meet requirements and pursue continual improvement.

Clause 5.5.2 requires the organization to identify and plan activities and resources needed to
achieve quality objectives.

Clause 5.7 requires the management review to evaluate the need for changes to the quality
system, policy and objectives and include review of performance and improvement

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opportunities. It also requires the outputs from the management review to include actions
related to improvement of the quality system, audits and resource needs.

Clause 8.4 requires the organization to collect and analyze data to determine the effectiveness
of the quality system and to identify where improvements can be made.

Clause 8.5.1 requires the organization to establish a procedure for the use of quality policy,
objectives, and quality-related data and information to facilitate continual improvement.

These clauses clarify how the cycle of continual improvement is intended to work. General
policies (Clause 5.4) create a framework for more specific objectives (Clause 5.5.1) that are
supported by planned activities and resources (Clause 5.5.2). The organization collects and
analyzes data to determine the effectiveness of the implemented activities (Clause 8.4). The
quality policy, objectives and data on quality performance are input into the management
review (Clause 8.5.1), which then outputs changes to the policy, shifts in objectives and actions
to improve the system (Clause 5.7). It's imperative to understand these clauses as elements of
such a continual cycle and to create appropriate interfaces and linkages.

This basic structure for continual improvement is supported by many other elements of the
quality system. Some of these elements have already been required in previous editions of the
standard, but others (such as activities for collecting quality performance data, internal audits
and measurement of customer satisfaction) are new. Indeed, it can be argued that each and
every element of the quality system has a role in the continual improvement cycle.

Implementation of these requirements will include:

Revision of the quality policy to include commitments to meeting requirements and to

continual improvement

Establishment of quality objectives consistent with the quality policy and the commitment to
continual improvement

Establishment of plans to achieve quality objectives

Development of a new procedure for collecting and analyzing quality performance data

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Development of a new procedure for using relevant information and data to facilitate continual
improvement

Revision of the existing management review procedure to address new requirements

concerning the scope and output of the review

Training, awareness and communication

Training requirements in ISO 9001 :2000 are considerably broader. Most of Section 6 --
Resource Management is dedicated to training and related issues. In addition to the old
requirements for identifying training needs, providing training, assigning qualified personnel
and maintaining records, the standard now also requires organizations to evaluate the
effectiveness of training and establish employee awareness programs.

There are also new requirements for internal communication in Section 5 -- Management
Responsibility. Although these requirements are not specifically linked to training, it will be
natural to integrate training and employee awareness programs with the communication
system.

The following clauses include requirements pertaining to training, awareness and

communication:

Clause 5.1 requires top managers to demonstrate their commitment to creating an awareness
of the importance of fulfilling customer requirements.

Clause 5.6.3 requires the management representative to ensure awareness of customer

requirements throughout the organization.

Clause 5.6.4 requires the organization to establish a procedure for internal communication
regarding the quality management system.

Clause 6.2.2 requires the organization to evaluate the effectiveness of training and establish
procedures for making employees aware of the importance of the quality management system
and of their own roles in achieving conformance with policies, objectives and requirements.

Implementation of these requirements will include:

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Revision of the training procedure to define how training effectiveness is evaluated

Establishment of employee awareness programs (documented in procedures)

Development of new procedures for internal communication

Process control

Requirements related to process control are concentrated in Section 7 -- Product and/or Service
Realization, particularly in Clause 7.1 -- General Requirements and in Clause 7.5.5 --
Validation of Processes. Clause 7.1 includes a long and detailed list of formal process control
measures and activities, but doesn't clearly state the extent to which implementation of these
measures is mandatory.

The clause states that "The organization shall determine how each process affects the ability
to meet product and/or service requirements and shall determine and implement criteria and
methods to control processes, to the extent necessary, to achieve product and/or service
conformity with the customer requirements." If this means that process control measures must
be sufficient to eliminate the occurrence of nonconformity, it's the same as requiring
implementation of the best-known process control system for each process. But this could not
be the intent of the standard. If such a requirement were to be enforced, it would cost billions
of dollars. On the other hand, if this clause means that process control measures are sufficient
as long as the shipped product conforms to requirements, one could comply by inspecting and
segregating nonconforming product without any process control measures at all. Again, this
could not be the intent of the standard. The criteria for selecting and implementing appropriate
process control systems must be somewhere in between, but the standard fails to specify where.

There is also a process control-related requirement in Clause 8.2.2. The requirement is to

"apply suitable methods for measurement and monitoring of processes necessary to meet
customer requirements and to demonstrate the process's continuing ability to satisfy its
intended purpose." Here, again, the language is indefinite. It could imply formal process
capability and process performance studies, but could also mean a simple inspection of output.
It will be a challenge for auditors to find a nonconformance based on this clause.

Because the new standard fails to provide any meaningful criteria for selecting and
implementing process control measures, one can argue that nothing has changed from the

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previous editions. Organizations can still decide on their own how they want (or don't want) to
control their processes. Auditors can only require that each process be reviewed for relevant
process control measures, and that the implemented process control systems are properly
operated and maintained.

Lack of clarity aside, it's obvious that the new standard has moved significantly toward
requiring implementation of formal process control systems for all relevant processes. Process
control is no longer an optional activity expected only in special industries such as automotive
or aerospace. With this new standard, auditors will expect every organization, regardless of the
nature of its product or service, to have the knowledge of process control techniques and
systematically evaluate all processes to determine which should be controlled and how.

The following clauses contain new requirements relevant to process control:

Clause 7.1 requires organizations to determine and implement the criteria and methods to
control processes to the extent necessary to achieve product conformity and consistent
operation; to monitor processes, including measurement and follow-up actions, to ensure that
processes continue to operate satisfactorily; and to maintain records of the results of process
control measures.

Clause 8.2.2 requires application of suitable methods for measurement and monitoring of
processes.

The effort needed to implement these requirements will depend on the current state of process
control programs in the company. In many smaller companies, especially those lacking
experience with formal process control, it will be substantial. First of all, they will need to
acquire the relevant knowledge, and then apply it to a systematic review of all key processes
to identify those that need to be controlled. The next step will be to select suitable process
control measures for these processes. Finally, they will need to establish the actual control
procedures and instructions and train process operators in their use.

Additional requirements

All together, there are more than 30 new actionable and auditable requirements in ISO
9000:2000. About three-quarters of them fall into the four major categories discussed above.
The remaining requirements can't be neatly grouped into such major categories; they're spread

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throughout the standard and pertain to diverse elements of the quality system. Most of them
are minor and easy to understand and implement. Of the remaining requirements, the following
four are probably the most important.

Clause 5.3 requires organizations to identify and gain access to legal requirements regarding
quality aspects of products and/or services. To implement this requirement, a new procedure
should be developed to define how applicable legal and regulatory requirements are identified
and how they are communicated to those responsible for their implementation.

Clause 6.5 requires organizations to define and implement the suitable work environment
needed to achieve product and/or service conformity. At first, this clause may be interpreted as
a movement of ISO 9000 into the realm of health and safety. However, careful reading reveals
that the work environment is relevant only in the context of product conformity. To identify a
nonconformance against this clause, auditors must have objective evidence that working
conditions are detrimental to achieving product conformity. A minor violation of health and
safety regulations or standards would not, in itself, be sufficient to trigger a nonconformance.
Work environment may be specified in laws and regulations, in a company's health and safety
manuals and policies, in external standards and codes of practice to which the company
subscribes (for example, SA8000), or even in contracts. In some instances it may be also
appropriate to establish specific limits for particular processes, operations or areas, regardless
of whether these are regulated.

Clause 7.3.7 requires organizations to determine the effect of design changes on the overall
design and determine whether reverification or revalidation of design is required. To implement
this requirement, the procedure dealing with design changes should be amended to require a
review of the effects that changes may have on the overall design. The procedure should include
a checklist, or should at least define the scope of the review, to determine whether full or partial
reverification or revalidation of the design is required.

Clause 7.6 requires organizations that use software for product verification to validate it prior
to use and control the development of special-purpose software. The extent of software
development controls shall be the same as for controls that apply to design and development
of products (Clause 7.3). To implement these requirements, the procedure dealing with control
of measuring and testing devices should be amended to define validation requirements for
inspection and testing software, including assignment of responsibilities, validation scope and

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criteria, and methods for authorizing and releasing the software. The procedure should also
require that special purpose software be developed in accordance with the same control
requirements that apply to design and development of products. Companies that often develop
or customize special inspection software should have a dedicated procedure for this purpose.

Overall, ISO 9001:2000 is a much better standard than its predecessors. It represents a more
modern approach to quality management and is closer to current management system thinking.
The most important improvements are the reorganization of the standard to follow the Plan-
Do-Check-Act loop, the introduction of systems and activities to facilitate continual
improvement, greater emphasis on employee awareness and involvement, and the
incorporation of functions representing the voice of the customer into the quality system.

On the negative side, the standard introduces these new ideas and concepts with some
hesitation and a lack of conviction. A typical example is Clause 5.5.1 -- Objectives. It calls for
establishment of quality objectives, but there are no specific requirements for defining the
process for establishing the objectives and no requirements for developing programs to support,
monitor and review the objectives. The same is true for the identification of customer needs
and expectations and many other new elements. At this stage, it seems that the standard only
introduces the new concepts without requiring proper structures to implement them.

5.7 SIX SIGMA

The term "Six Sigma" refers to a statistical measure of how far a process deviates from
perfection. A process that operates at six sigma has a failure rate of only 0.00034%, which
means it produces virtually no defects. Six Sigma was developed by Motorola in the 1980s,
and it has since been adopted by many other companies around the world, including General
Electric, Toyota, and Amazon. It is used in industries such as manufacturing, healthcare,
finance, and service industries to improve customer satisfaction, reduce costs, and increase
profits.
Six Sigma is a set of methodologies and tools used to improve business processes by reducing
defects and errors, minimizing variation, and increasing quality and efficiency. The goal of Six
Sigma is to achieve a level of quality that is nearly perfect, with only 3.4 defects per million
opportunities. This is achieved by using a structured approach called DMAIC (Define,

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Measure, Analyze, Improve, Control) to identify and eliminate causes of variation and improve
processes.
Six Sigma is a disciplined and data-driven approach widely used in project management to
achieve process improvement and minimize defects. It provides a systematic framework to
identify and eliminate variations that can impact project performance.
The etymology is based on the Greek symbol "sigma" or "σ," a statistical term for measuring
process deviation from the process mean or target. "Six Sigma" comes from the bell curve used
in statistics, where one Sigma symbolizes a single standard deviation from the mean. If the
process has six Sigmas, three above and three below the mean, the defect rate is classified as
"extremely low."
The graph of the normal distribution below underscores the statistical assumptions of the Six
Sigma model. The higher the standard deviation, the higher is the spread of values encountered.
So, processes, where the mean is minimum 6σ away from the closest specification limit, are
aimed at Six Sigma.

What Is Lean Six Sigma?

Lean Six Sigma is a methodology that combines two powerful process improvement
techniques: Lean and Six Sigma.
Lean focuses on minimizing waste and maximizing efficiency by identifying and eliminating
non-value-adding activities. This involves streamlining processes, reducing defects, improving
quality, and optimizing resources to deliver more value with less effort.
On the other hand, Six Sigma is a statistical approach to process improvement that aims to
reduce variation and defects by using data-driven decision making. It involves defining,
measuring, analyzing, improving, and controlling processes to achieve consistent and
predictable results.
By combining the strengths of these two methodologies, Lean Six Sigma provides a
comprehensive approach to process improvement that can be applied to any industry or sector.
It is widely used in manufacturing, healthcare, finance, and service industries to improve
efficiency, reduce costs, and enhance customer satisfaction.

The 5 Key Principles of Six Sigma

The concept of Six Sigma has a simple goal – delivering near-perfect goods and services for
business transformation for optimal customer satisfaction (CX).

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Goals are achieved through a two-pronged approach:
Six Sigma has its foundations in five key principles:

1. Focus on the Customer

This is based on the popular belief that the "customer is the king." The primary goal is to bring
maximum benefit to the customer. For this, a business needs to understand its customers, their
needs, and what drives sales or loyalty. This requires establishing the standard of quality as
defined by what the customer or market demands.

2. Measure the Value Stream and Find Your Problem

Map the steps in a given process to determine areas of waste. Gather data to discover the
specific problem area that is to be addressed or transformed. Have clearly defined goals for data
collection, including defining the data to be collected, the reason for the data gathering, insights
expected, ensuring the accuracy of measurements, and establishing a standardized data
collection system. Ascertain if the data is helping to achieve the goals, whether or not the data
needs to be refined, or additional information collected. Identify the problem. Ask questions
and find the root cause.

3. Get Rid of the Junk

Once the problem is identified, make changes to the process to eliminate variation, thus
removing defects. Remove the activities in the process that do not add to the customer value.
If the value stream doesn't reveal where the problem lies, tools are used to help discover the
outliers and problem areas. Streamline functions to achieve quality control and efficiency. In
the end, by taking out the above-mentioned junk, bottlenecks in the process are removed.

4. Keep the Ball Rolling

Involve all stakeholders. Adopt a structured process where your team contributes and
collaborates their varied expertise for problem-solving.Six Sigma processes can have a great
impact on an organization, so the team has to be proficient in the principles and methodologies
used. Hence, specialized training and knowledge are required to reduce the risk of project or
re-design failures and ensure that the process performs optimally.

5. Ensure a Flexible and Responsive Ecosystem

The essence of Six Sigma is business transformation and change. When a faulty or inefficient
process is removed, it calls for a change in the work practice and employee approach. A robust
culture of flexibility and responsiveness to changes in procedures can ensure streamlined
project implementation. The people and departments involved should be able to adapt to
change with ease, so to facilitate this, processes should be designed for quick and seamless

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adoption. Ultimately, the company that has an eye fixed on the data examines the bottom line
periodically and adjusts its processes where necessary, can gain a competitive edge.

The Six Sigma Methodology

The two main Six Sigma methodologies are DMAIC and DMADV. Each has its own set of
recommended procedures to be implemented for business transformation.
DMAIC is a data-driven method used to improve existing products or services for better
customer satisfaction. It is the acronym for the five phases: D – Define, M – Measure, A –
Analyse, I – Improve, C – Control. DMAIC is applied in the manufacturing of a product or
delivery of a service.
DMADV is a part of the Design for Six Sigma (DFSS) process used to design or re-design
different processes of product manufacturing or service delivery. The five phases of DMADV
are: D – Define, M – Measure, A – Analyse, D – Design, V – Validate. DMADV is employed
when existing processes do not meet customer conditions, even after optimization, or when it
is required to develop new methods. It is executed by Six Sigma Green Belts and Six Sigma
Black Belts and under the supervision of Six Sigma Master Black Belts. We'll get to the belts
later.
The two methodologies are used in different business settings, and professionals seeking to
master these methods and application scenarios would do well to take an online certificate
program taught by industry experts.

The Six Sigma Process of Business Transformation

Although what is Six Sigma uses various methods to discover deviations and solve problems,
the DMAIC is the standard methodology used by Six Sigma practitioners. Six Sigma uses a
data-driven management process used for optimizing and improving business processes. The
underlying framework is a strong customer focus and robust use of data and statistics to
conclude.
Each of the above phases of business transformation has several steps:

1. DEFINE
The Six Sigma process begins with a customer-centric approach.
Step 1: The business problem is defined from the customer perspective.
Step 2: Goals are set. What do you want to achieve? What are the resources you will use to
achieve the goals?
Step 3: Map the process. Verify with the stakeholders that you are on the right track.

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 2. MEASURE
The second phase is focused on the metrics of the project and the tools used in the measurement.
How can you improve? How can you quantify this?
Step 1: Measure your problem in numbers or with supporting data.
Step 2: Define performance yardstick. Fix the limits for "Y."
Step 3: Evaluate the measurement system to be used. Can it help you achieve your outcome?

3. ANALYZE
The third phase analyzes the process to discover the influencing variables.
Step 1: Determine if your process is efficient and effective. Does the process help achieve what
you need?
Step 2: Quantify your goals in numbers. For instance, reduce defective goods by 20%.
Step 3: Identify variations using historical data.

4. IMPROVE
This process investigates how the changes in "X" impact "Y." This phase is where you identify
how you can improve the process implementation.
Step 1: Identify possible reasons. Test to identify which of the "X" variables identified in
Process III influence "Y."
Step 2: Discover relationships between the variables
Step 3: Establish process tolerance, defined as the precise values that certain variables can
have, and still fall within acceptable boundaries, for instance, the quality of any given product.
Which boundaries need X to hold Y within specifications? What operating conditions can
impact the outcome? Process tolerances can be achieved by using tools like robust
optimization and validation set.

5. CONTROL
In this final phase, you determine that the performance objective identified in the previous
phase is well implemented and that the designed improvements are sustainable.
Step 1: Validate the measurement system to be used.

Step 2: Establish process capability. Is the goal being met? For instance, will the goal of
reducing defective goods by 20 percent be achieved?

Step 3: Once the previous step is satisfied, implement the process.

Six Sigma Techniques

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The Six Sigma methodology also uses a mix of statistical and data analysis tools such as process
mapping and design and proven qualitative and quantitative techniques, to achieve the desired
outcome.

Brainstorming

Brainstorming is the key process of any problem-solving method and is often utilized in the
"improve" phase of the DMAIC methodology. It is a necessary process before anyone starts
using any tools. Brainstorming involves bouncing ideas and generating creative ways to
approach a problem through intensive freewheeling group discussions. A facilitator, who is
typically the lead Black Belt or Green Belt, moderates the open session among a group of
participants.

Root Cause Analysis/The 5 Whys

This technique helps to get to the root cause of the problems under consideration and is used
in the "analyze" phase of the DMAIC cycle.
In the 5 Whys technique, the question "why" is asked, again and again, finally leading up to
the core issue. Although "five" is a rule of thumb, the actual number of questions can be greater
or fewer, whatever it takes to gain clarity.

Voice of the Customer

This is the process used to capture the "voice of the customer" or customer feedback by either
internal or external means. The technique is aimed at giving the customer the best products and
services. It captures the changing needs of the customer through direct and indirect methods.
The voice of the customer technique is used in the "define' phase of the DMAIC method,
usually to further define the problem to be addressed.

5.8 TOTAL PRODUCTIVE MAINTENANCE

Total productive maintenance (TPM) is a strategy that operates according to the idea that
everyone in a facility should participate in maintenance, rather than just the maintenance team.
This approach uses the skills of all employees and seeks to incorporate maintenance into the
everyday performance of a facility.

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What is total productive maintenance?

Total productive maintenance (TPM) is a strategy that operates according to the idea that
everyone in a facility should participate in maintenance, rather than just the maintenance team.
This approach uses the skills of all employees and seeks to incorporate maintenance into the
everyday performance of a facility.

Who should participate?

Under the total productive maintenance philosophy, everyone from top-level management to
equipment operators should participate in maintenance. But how? Each member of an
organization can contribute in their own way:

Top management & reliability engineers

Management should be involved in TPM by promoting it as a corporate policy. Reliability

engineers also need to be involved, as they can interpret the maintenance data stored in an
organization’s CMMS in order to find relevant metrics and generate business insights.

Operators

Operators are the owners of a facility’s assets, meaning they need to take responsibility for the
day-to-day maintenance of their machines. This includes the cleaning and regular lubrication
necessary for equipment health. Operators are also expected to find early signs of equipment
deterioration and report them, as well as determine ways to improve equipment operation.

Maintenance managers and technicians

Maintenance managers and technicians are expected to train and support operators to meet their
goals and perform more advanced preventive maintenance activities. They are also expected to
take responsibility for improvement activities that will impact the key performance indicators
(KPIs) set out by reliability engineers. Read more about who is really responsible for
maintenance, and how to leverage a CMMS to get to TPM.

Advantages of TPM

When everyone in a facility is thinking about and contributing to maintenance, many aspects
of the facility will change for the better. Teams employing a TPM strategy often experience
the following:

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Fewer breakdowns

When machine operators keep an eye out for changes with their equipment, big issues are more
likely to be spotted early, before a breakdown occurs. This lets the maintenance team get on
top of their PM maintenance schedule, rather than always reacting to emergency breakdowns.

Safer workplace

Technicians are much more likely to take risks when rushing to fix a breakdown, so fewer
breakdowns generally mean a safer workplace. On top of that, when everyone keeps
maintenance in mind, problems can be spotted and dealt with well before they become
potentially dangerous situations.

Better overall performance

If everyone in a facility is keeping an eye on maintenance, small fixes will stop going
undetected, which helps you move away from reactive maintenance and get backlog under
control. It takes the pressure of small jobs off the maintenance team so they can concentrate on
the bigger jobs, which increases the overall performance of your facility.

Understanding the foundation of TPM

TPM is built on a “5S” foundation, with eight pillars supporting it. The beginning of a TPM
program will focus on establishing the 5S foundation and developing an autonomous
maintenance plan. This frees up the maintenance staff to begin larger projects and perform
more planned maintenance.

Fig 5.4 foundation of TPM

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Total productive maintenance is a maintenance philosophy, but there are tangible KPIs that
accompany it. One of the most important measurements of total productive maintenance is
overall equipment effectiveness (OEE), which measures availability, performance efficiency,
and quality. As such, equipment stopping, equipment working at less than peak capacity, and
equipment producing poor quality products are all penalized when OEE is determined.

5.9 5S

This technique has its roots in the Japanese principle of workplace energies. The 5S System is
aimed at removing waste and eliminating bottlenecks from inefficient tools, equipment, or
resources in the workplace. The five steps used are Seiri (Sort), Seiton (Set In Order),
Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain).

5S: What does each “S” stand for?

Each of these five things should be actioned in order to stand up a TPM strategy:

Sort

Determine which items are used frequently and which are not. The ones used frequently should
be kept closeby, others should be stored further away.
Organize all your assets in one place with this asset organizer template

Systemize

Each item should have one place—and one place only—to be stored.
Sort all your parts for critical assets and repairs with this parts kitting template

Shine

The workplace needs to be clean. Without it, problems will be more difficult to identify, and
maintenance will be more difficult to perform.

Standardize

The workplace should be standardized and labeled. This often means creating processes where
none existed previously.
Standardize your work orders with this work order template

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Sustain

Efforts should be made to continually perform each of the other steps at all times.
Once the foundation is laid, then you can move on to establishing the eight pillars of TPM.
You can start implementing 5S by providing training to your staff to understand the system.
This may be followed up with one-day sessions with each employee or team to ensure they are
on the same page as far as implementation is concerned.

In the first one-day session, employees should look be ready to meet the first three 5S
requirements:

1. Take a picture of the current status of your workplace.

2. Sort to separate anything that is needed and necessary from what is not needed.

3. Organize the things you need so that there is a place for everything and everything has a
place. You should be able to find anything in just a few seconds.

4. Clean the workplace and get rid of things that make it difficult to maintain cleanliness, such
as boxes on the floor that prevent you from being able to clean the entire surface — label
them and store them in labeled drawers, instead.

5. Prepare an action plan for the items you aren’t able to deal with that day, but will be able to
in the near future. This could include selling items you no longer use, donating them,
recycling, or throwing them away.

6. Take a second picture after the entire day’s work, for review.

During the second one-day session, two weeks later, employees should take the third picture
and compare it to the first two shots. Many organizations set up peer audits to check how the
5S principles are being met as well as to ensure the plan is moving forward. Work together to
define ways to standardize the improvements over time: organize cleaning schedules, define
roles and responsibilities, and prepare written procedures or diagrams to help everyone
remember what to do.

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During the third one-day session, two months later, check to see how your workplace looks
and schedule another peer review. This way, you can make sure the 5S are sustained by
ensuring defined schedules are being met and everyone is following the procedures.

Tools for 5S

1. Red Tags: These are used to label items that are no longer needed or are not in use. Red tags
help in the sorting process.

2. Shadow boards: These are used to organize tools and equipment. The shadow board has an
outline of the tool or equipment, making it easy to identify if something is missing.

3. Visual controls: These are used to make it easy to identify the correct location for tools and
equipment. Examples include color coding, labels, and signs.

4. Cleaning checklists: These are used to ensure that the workspace is clean and tidy. The
checklist helps in maintaining the shine aspect of 5S.

5. Standardized work procedures: These are used to ensure that everyone follows the same
process for performing tasks. Standardized work procedures help in the standardization
aspect of 5S.

6. Floor marking tape: This is used to mark boundaries, aisles, and storage locations. Floor
marking tape helps in the set-in-order aspect of 5S.

7. Kanban systems: These are used to manage inventory levels. A Kanban system helps
maintain the right inventory level, ensuring no waste of resources.

8. Visual management boards: These are used to display key performance indicators (KPIs)
and progress toward goals. The visual management board helps in sustaining the
improvements made through 5S.

5S and Lean Manufacturing

5S methodology is a crucial tool within the Lean Manufacturing philosophy, which aims to
maximize value while minimizing waste. The 5S system provides a structured approach to
organizing the workplace, improving efficiency, reducing errors, and increasing productivity.
By reducing waste and optimizing workflow, 5S supports the overall goal of Lean
Manufacturing, which is to create value for the customer while minimizing resources and time.

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Incorporating 5S into the Lean Manufacturing process can help organizations achieve
continuous improvement and sustainable success.

5.10 SUMMARY

 After companies determine customer needs, they must concentrate on meeting those
needs by yielding high quality products at an efficient rate.
 Productivity is the relationship between a given amount of output and the amount of
input needed to produce it.
 Profitability results when money is left over from sales after costs are paid.
 Total Quality Management (TQM) is a philosophy that says that uniform
commitment to quality in all areas of an organization promotes an organizational
culture that meets consumers' perceptions of quality.
 The TQM philosophy focuses on teamwork, increasing customer satisfaction, and
lowering costs. Organizations implement TQM by encouraging managers and
employees to collaborate across functions and departments, as well as with customers
and suppliers, to identify areas for improvement, no matter how small.
 Quality circles were originally associated with Japanese management and
manufacturing techniques. The introduction of quality circles in Japan in the postwar
years was inspired by the lectures of W. Edwards Deming (1900—1993), a statistician
for the U.S. government.
 Lean Six Sigma is a methodology that combines two powerful process improvement
techniques: Lean and Six Sigma.

5.11 KEYWORDS

 Total Quality Management (TQM) is a philosophy that says that uniform

commitment to quality in all areas of an organization promotes an organizational
culture that meets consumers' perceptions of quality.
 Quality circles were originally associated with Japanese management and
manufacturing techniques.
 Lean Six Sigma is a methodology that combines two powerful process improvement
techniques: Lean and Six Sigma.

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  Productivity is the relationship between a given amount of output and the amount of
input needed to produce it.
 Profitability results when money is left over from sales after costs are paid.

5.12 LEARNING ACTIVITY

1. What is Total performance maintenance? How is it used?

___________________________________________________________________________
___________________________________________________________________________

2. Explain 5S in detail.

___________________________________________________________________________
___________________________________________________________________________

5.13 UNIT END QUESTIONS

Descriptive questions

A. Short Questions

1. What is TQM?
2. What is meant by quality?
3. What is productivity?
4. What is profitability?
5. What is PDCA cycle?
6. State the “S” in 5S.
7. What is quality circle?

B. Long Questions

1. Explain the principles of TQM.

2. Describe Deming’s 14 principles of quality.
3. Explain the four phases of PDCA cycle.
4. Write explanatory notes on KAIZEN.
5. Write explanatory notes on six sigma.

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C. Multiple Choice Questions

1. __________ is a methodology that combines two powerful process improvement techniques:

Lean and Six Sigma.

a. Lean Six Sigma

b. Six Sigma
c. TQM
d. TPM
2. __________ were originally associated with Japanese management and manufacturing
techniques.
a. Work study
b. Quality circles
c. Lean manufacturing
d. Agile manufacturing
3. ___________ is a philosophy that says that uniform commitment to quality in all areas of an
organization promotes an organizational culture that meets consumers' perceptions of quality.
a. SQM
b. TRM
c. TQM
d. TPM
4. ___________ is the relationship between a given amount of output and the amount of input
needed to produce it.
a. Probability
b. Statistics
c. Planning
d. Productivity
5. ___________ results when money is left over from sales after costs are paid.
a. Profitability
b. Reliability
c. Accountability
d. Work study
Answers: 1-a, 2-b, 3-c, 4-d, 5-a

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5.14 REFERENCES

References books

 Bowersox, J. & Closs, D. (1996). “Logistical Managment”. Tata McGraw Hill

pulications.
 Janat S. (2009). “Supply Chain Management: Texts and Cases”. Pearson. 7 th Floor,
Knowledge Boulevard, A-8(A), Sector – 62, Noida – 201309, U.P., India.
 Martin C. (2005). “Logistics and Supply Chain Management – Creating Value-Adding
Networks”. FT Prentice Hall. An imprint of Pearson Education.
 Monezka, H. & Patterson, G. (2017). “Sourcing and Supply Chain Management”.
Cengage Learning India Pvt. Limited.
 Monezka, R. Trent, R. & Handfield, R. (2002). “Purchasing and Supply Chain
Management”. Thomson Publishers.
 Shridhara Bhat. K. (2009). “Logistics and Supply Chain Management”. Himalaya
Publishing House, “Ramdoot” Dr. Bhalerao Marg, Girgaon, Mumbai – 400004.
Textbook references
 Nitin. K. (2018). “Logistics and Supply Chain Management”. Vipul Prakashan.
 Shridara Bhat. K. (2018). “Logistics and Supply Chain Management”. Himalaya
Publishing House.
Website

 https//www.jaggaer.com

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