TECHNIQUES FOR OPERATIONS

EFFICIENCY

(FOR PRIVATE CIRCULATION ONLY)

2019
PROGRAMME COORDINATOR
Dr. Padmpriya Irabatti

COURSE DESIGN AND REVIEW COMMITTEE

Prof. Viraj Atre Prof. D.H. Joshi
Prof. Ranjan Joshi Prof. Ashok Chaudhari
Dr. Shailesh Kasande Prof. Madhup Gandhi
Prof. Sudhir Deshpande Prof. Manisha Ketkar
Prof. Rajiv Shirke Mr. Sudeep Limaye

COURSE WRITER
L.C. Jhamb

EDITOR
Ms. Neha Mule

Published by Symbiosis Centre for Distance Learning (SCDL), Pune

July, 2007 (Revision 02, 2015)

Copyright © 2018 Symbiosis Open Education Society

All rights reserved. No part of this book may be reproduced, transmitted or utilised in any form or by any
means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval
system without written permission from the publisher.

Acknowledgement
Every attempt has been made to trace the copyright holders of materials reproduced in this book. Should any
infringement have occurred, SCDL apologises for the same and will be pleased to make necessary corrections
in future editions of this book.
 PREFACE

Indian industries since 1990 have been passing through turbulent times. In the pre-reform era
(i.e. prior to 1990), the emphasis was on quantity, with little concern for quality, delivery and cost.
The pressure to achieve the efficient use of resources was non-existent as the manufacturing firms
could pass on their inefficiencies in the form of price increases to their customers. In the post-reform
period between 1990 to 1995, wherein the first whiffs of liberalisation were felt, the focus shifted to
cost reduction to maintain or reduce the selling price to retain the market share and maintain a healthy
bottom line. From 1995 onwards, the environment has changed drastically due to the entry of global
players and the intensification of competition. The new paradigms of manufacturing such as customer
focus, lead time reduction, continuous improvements, excellence in quality, cost competitiveness and
greater responsiveness have become imperative for any organisation.
The organisation, in order to sustain and then grow in a competitive market, must continuously
improve quality and reduce cost by finding high cost/inefficient operations, non-value added activities
and rework and rejection. The organisations must adopt the latest tools and techniques to reduce their
flab and become lean and efficient.
Fortunately, in the recent past, (say, the last two decades), there has been an emergence of a number of
techniques which can help the Indian industries to beat the competition without hitting their bottom
line.
The author has made an attempt to present ideas / concepts / principles / philosophies and the method
of usage of a few such techniques, developed by renowned people, in an easy-to-understand form.
The author is thankful to all his colleagues from the industry and academic circle for providing some
of the inputs for the SLM and to SCDL, for providing an opportunity to share his experiences with a
large number of distant learners.
Suggestions and comments to improve the text are welcome.

Prof. L. C. Jhamb

iii
 ABOUT THE AUTHOR

Prof. L. C. Jhamb, B.Sc. (Elect.) Engg., Postgrad. in Industrial Engg. and Management, is currently
the Director (Operations) at El-o-matic India Pvt. Ltd., Pune and Director (Operations) at Intervalve
India Pvt. Ltd., Pune. He has over 25 years of industrial experience and has been associated with
companies like Sealol Hindustan Ltd., Pune (General Manager : Works), Thermax Limited, Pune
(Manufacturing Manager) and Divgi Metalwares Private Limited, Pune (Divisional Manager :
Manufacturing). Besides industrial, Mr. Jhamb also has three years of experience as a consultant
with the Poona Divisional Productivity Council (Industrial Engineer).
Mr. Jhamb has conducted a number of consultancy assignments and diagnostic surveys in the field
on Inventory Control, Production Control, Time Standards, Methods Improvements, Job Evaluation,
O and M etc., covering a wide spectrum of industries.
Mr. Jhamb has conducted a number of training programmes and has delivered talks under the auspices
of the Poona Divisional Productivity Council, Tata Management Training Centre, Indian Institute of
Industrial Engineering, Hindustan Antibiotics Training Centre, Pune Management Association and
other bodies.
Mr. Jhamb is also a Visiting Professor to M.B.A. and D.B.M. Programmes conducted by Poona
University, Institute of Management Development and Research, Symbiosis Institute of Business
Management, Symbiosis Centre of Management and HRD, Sinhgad Institute of Management,
Institute of Management Education and other institutes. He is an author of repute and has so far
written twenty books on the subject of “Production and Materials Management.”

iv
 CONTENTS

Unit No. TITLE Page No.

1 Systematic Problem Solving 1-14
1.1 Introduction
1.2 What is a Problem
1.3 Classification of Problems
1.4 Steps in Problem Solving
1.5 Solving a Maintenance Problem
1.6 Steps for solving an Improvement Problem
1.7 Problem Solving and 7 QC Tools
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading
2 7 QC Tools 15-60
2.1 Introduction
2.2 7 QC Tools
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading
3 Quality Circles 61-76
3.1 Introduction
3.2 Quality Circles
3.3 Brief History of Quality Circles
3.4 Basic Principles underlying Quality Circles
3.5 Areas covered by Quality Circles and Benefits of Quality Circles
3.6 Organisation for Quality Circles
3.7 Operation of Quality Circles
3.8 Essentials for Successful launching and working of Quality Circles
3.9 Quality Circles compared with Others
3.10 Problem Solving Techniques used by Quality Circles
3.11 Limitation of Quality Circles
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

v
 Unit No. TITLE Page No.
4 5-S for Good Workplace Organisation 77-96
4.1 Introduction
4.2 Relationship between the 5-Ss
4.3 A Brief on the 5-S Elements
4.4 Benefits of the 5 S
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading
5 SMED for Set-up Time Reduction 97-112
5.1 Introduction
5.2 Stages of SMED
5.3 Benefits of SMED
5.4 Tools Helpful for Setup Time Reduction
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading
6 MUDA (Waste) Elimination 113-132
6.1 Introduction
6.2 Types of MUDA
6.3 MUDA in the Office
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

vi
Unit No. TITLE Page No.
7 Poka-Yoke (Mistake/Error Proofing) 133-146
7.1 Introduction
7.2 Key Principles
7.3 Different Kinds of Human Errors
7.4 Types of Defects
7.5 Causal Relationship between Types of Defects and
Human Errors
7.6 Poka-Yoke Devices
7.7 Typical Examples of Industrial Poka-Yoke
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading
8 Statistical Process Control (SPC) 147-194
8.1 Introduction
8.2 Principles underlying Process Control
8.3 Control Charts as a Tool for Process Control
8.4 Types of Control Charts
8.5 X-R Charts
8.6 Theory underlying X-R Charts
8.7 Steps to prepare X-R Charts
8.8 Control Charts by Attributes
8.9 Control Charts for Fraction Defectives (P Chart)
8.10 Control Charts for Number Defectives (NP-Chart)
8.11 Control Charts for the Number of Defects (C-Chart)
8.12 Need for Process Capability Studies
8.13 Fundamentals of Process Capability
8.14 Estimation of the Process Capability
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

vii
 Unit No. TITLE Page No.
9 Kaizen 195-212
9.1 Introduction
9.2 Benefits of Kaizen
9.3 Kaizen Principles
9.4 Characteristics of a Good Kaizen
9.5 Types of Kaizen
9.6 Kaizen Opportunities
9.7 The Kaizen Process
9.8 A Typical Kaizen System
9.9 Kaizen Techniques
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading
10 Daily Work Management (DWM) 213-232
10.1 Introduction
10.2 The What and Why of Daily Work Management
10.3 Pillars of Daily Work Management (DWM)
10.4 Terminology of Daily Work Management (DWM)
10.5 The System of DWM
10.6 Meetings of DWM
10.7 Benefits of DWM
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

viii
Unit No. TITLE Page No.
11 Benchmarking 233-248
11.1 Introduction
11.2 Levels of Benchmarking
11.3 Benefits of Benchmarking
11.4 Types of Benchmarking
11.5 The Process of Benchmarking
11.6 Identifying Benchmarking Partners
11.7 Common Benchmarking Pitfalls to be avoided
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading
12 Total Productive Maintenance 249-266
12.1 Introduction
12.2 A Brief on the 8 Pillars
12.3 12 Steps Procedure for the Implementation of TPM
12.4 Implementation Difficulties
12.5 Benefits of TPM
12.6 Indian Experience
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading
13 Total Quality Management (TQM) 267-286
13.1 Introduction
13.2 Meaning of TQM
13.3 Key Principles of TQM
13.4 Approaches of TQM
13.5 Benefits of TQM
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

ix
x
Systematic Problem Solving
UNIT

1
Structure:

1.1 Introduction
1.2 What is a Problem
1.3 Classification of Problems
1.4 Steps in Problem Solving
1.5 Solving a Maintenance Problem
1.6 Steps for Solving an Improvement Problem
1.7 Problem Solving and 7 QC Tools
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

Systematic Problem Solving 1

 Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
●● State the meaning of the problem in quality perspective.
---------------------- ●● Explain the various types of problems.
---------------------- ●● Just by the steps in problem solving.
---------------------- ●● State the tools of problem solving.

----------------------

---------------------- 1.1 INTRODUCTION

---------------------- An executive is confronted with innumerable problems everyday. Some
problems are simple to solve, while others require data collection and a careful
----------------------
study of the various issues involved. To solve these problems, the executive
---------------------- must follow a scientific method to arrive at a particular decision. Thus a decision
is a course of action or inaction selected to meet the requirement of a solution
---------------------- (i.e. to the problem).
---------------------- Some people are confused between the differences of problem solving and
decision making. In fact, decision making and problem solving are synonymous.
---------------------- Problem solving is actually a broader exercise within which one step – deciding
---------------------- upon the best solution – is decision making.

---------------------- 1.2 WHAT IS A PROBLEM

---------------------- A problem implies
---------------------- ●● a gap in performance (i.e. a gap between the ideal situation and the current
situation)
----------------------
●● repetitive errors causing rework and rejection
---------------------- ●● irritants for your customers
---------------------- ●● negative comments on an activity from your seniors
●● bottleneck operations/activities
----------------------
●● activities consuming excessive resources
---------------------- ●● issues which lower performance ratings
---------------------- ●● complaints from your customers
---------------------- ●● activities which cause late working
Typical examples of some of the common problems are :
----------------------
●● Overtime
---------------------- ●● Equipment breakdowns
---------------------- ●● Rejection/rework

2 Techniques for Operations Efficiency

●● Excessive consumption of resources Notes
●● Customer’s complaints
----------------------
●● Excessive absenteeism
●● Higher labor turnover ----------------------

●● Delayed deliveries ----------------------

●● Bad debts ----------------------
●● Low order booking
----------------------
●● Strained superior-subordinate relationships
----------------------
●● Stockouts
●● Stock discrepancies ----------------------
●● Supplier’s delayed payment ----------------------
●● Low productivity
----------------------
●● Accidents
----------------------
1.3 CLASSIFICATION OF PROBLEMS
----------------------
Basically, problems can be grouped under two broad categories :
----------------------
(i) problems of maintenance and (ii) problems of improvements
----------------------
(i) Problems of maintenance are those that appear in processes which
have run smoothly prior to the occurrence of a discrepancy. Maintenance ----------------------
problems usually arise when the status quo is disturbed and a manager
----------------------
has to take some measures to restore and maintain the status quo. For
example, the initiating of corrosive action when a lot of pieces are out of ----------------------
specification limit, or the production of the workman is down, etc.
----------------------
(ii) Problems of improvements are those where the status quo is considered
unsatisfactory and needs to be taken to a improved level. For example, ----------------------
reducing the current PPM level from 5000 to 1000 level, output per shift
----------------------
to be raised by 40%, accident the rate to be brought down below 2 per
month. ----------------------
Improvement problems can be further classified into three types as follows : ----------------------
(i) Zero problems
----------------------
(ii) Decrease problems
----------------------
(iii) Increase problems
(i) Zero problems are those where the objective is to completely eliminate ----------------------
the problem (even though from the practical point of view, it is almost ----------------------
impossible to do so). The underlying philosophy is that zero problems
should not exist. Typical examples of zero problems that require ----------------------
elimination are :
----------------------

Systematic Problem Solving 3

 Notes  Process defectives
 Customer’s complaints
----------------------
 Missed deliveries
----------------------
 Accidents
----------------------  Breakdowns
----------------------  Missed appointments
---------------------- To eliminate zero problems, the organisation must
 systematically analyse each problem
----------------------
 identify underlying root causes
----------------------
 analyse each cause and develop counter-measures
----------------------  implement counter-measures
----------------------  achieve results, set revised targets and keep working on new targets
---------------------- (ii) Decrease problems are those where the problem solving is intended
to reduce its magnitude rather than to eliminate it entirely. Decreasing
---------------------- problems generally involves cost, time and other financial considerations.
---------------------- Typical examples of the decreasing of problems are
 Minimize cost
----------------------
 Reduce delivery time
----------------------
 Reduce manufacturing leadtime
----------------------  Decrease set up time
----------------------  Reduce inventory

---------------------- It is not possible to totally eliminate cost, manufacturing time, setup time,
inventory etc. but it is possible to reduce them. To solve the decrease
---------------------- problems efficiently,

---------------------- (i) each component of the cost or time should be analysed to determine
necessary and unnecessary costs or time.
----------------------
(ii) eliminate unnecessary costs (or time) and try to improve on
---------------------- necessary costs/ times.
(iii) arrange data from the highest to the lowest order to prioritise areas
----------------------
for improvement.
---------------------- (iv) employ benchmarking, value-added analysis and industrial
engineering techniques to devise counter measures.
----------------------
(iii) Increase problems are those wherein the objective is to increase
---------------------- something. Typical examples are:
----------------------  Increase sales/turnover
----------------------  Increase production or yield

4 Techniques for Operations Efficiency

  Increase profit or contribution Notes
 Increase customers’ satisfaction
----------------------
Increase problems are the most difficult to solve as an enormous amount
of analysis is necessary to decide the counter measures. Data is usually difficult ----------------------
to get and experiments require to be conducted to test solutions before they are ----------------------
applied.
Fig. 1.1: Typical examples of improvements ----------------------

----------------------
PROBLEMS OF IMPROVEMENTS
----------------------

----------------------

----------------------
Zero Problems Decrease Problems Increase Problems
----------------------
Objective is to Objective is to reduce its Objective is to increase
completely eliminate the magnitude rather than to the magnitude
----------------------
problem eliminate

- Minimise cost - Equipment ----------------------

- Missed deliveries - Delivery time utilisation
- Accidents - Setup time - Multiskilling ----------------------
- Breakdowns - Ad-hoc orders - Productivity
- Missed appointments - Tool consumption - Turnover ----------------------
- Customer complaints - Processing time - Customers’
satisfaction ----------------------
- Backlog (same day - Material handling
- Employees’
processing) - Rush jobs involvement/
- Leakage of valves/ - Work-in-process participation/ ----------------------
porosity - Value torque satisfaction
- Overtime - Development time - Vendors’ self ----------------------
- Budget variance - Testing time certification
- Pending NCRs - Operational time - Self inspection ----------------------
- Resource (material/ - Buyer-Seller
(Non-Compliance paint consumption) relationships ----------------------
Reports) - Obsolete stock - Employees’
- Search time interactions
- 5 ‘S’ deployment
----------------------
- Product weight
- Transport cost - Control on excess
material receipt ----------------------
- Inventory/vendors’
stock - Personal
- Machining effectiveness ----------------------
- Space utilisation
allowances
- Variations
- Employees’ ----------------------
efficiency
- Non-value added - Computerisation
activities ----------------------
(improve)
- Cost of quality - Superior-subordinate
- Reduce inspection relationships ----------------------
- Group technology
- Standardization ----------------------
- Process control
----------------------

----------------------

Systematic Problem Solving 5

 Notes
Check your Progress 1
----------------------

---------------------- Match the following.

i. Zero problems a. Delivery time
----------------------
ii. Decrease problems b. Personal Effectiveness
----------------------
iii. Increase problems c. Breakdown
----------------------

----------------------
Activity 1
----------------------
Discuss the reasons for classifications of problems.
----------------------

----------------------
1.4 STEPS IN PROBLEM SOLVING
----------------------
Systematic problem solving provides a structured approach to problem
----------------------
solving. Depending upon the nature of problem (i.e. the maintenance or the
---------------------- improvement problem), some steps may be different.

---------------------- 1.5 SOLVING A MAINTENANCE PROBLEM

----------------------
Maintenance problems, as mentioned earlier, arise when the status quo
---------------------- is disturbed and the decision make the need to recommend/take measures to
restore and maintain the status quo comes up.
----------------------
Fig. 1.2 gives the steps to be followed for such problems at a glance.
---------------------- These steps also are detailed hereunder:
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

6 Techniques for Operations Efficiency

 Identify a maintenance problem Notes

----------------------
Collect data on "causes" ----------------------

----------------------
Perform Pareto Analysis
----------------------

Identify root causes (Ishikawa ----------------------

diagram/Scatter diagram)
----------------------

Evolve alternatives & select

----------------------
(brainstorming/NGT)
----------------------

----------------------
Implement best alternative
----------------------

Monitor effect ----------------------

----------------------

----------------------
Is the problem
resolved? ----------------------

----------------------
Fig. 1.2: Steps to Solve a Maintenance Problem ----------------------
(a) Diagnose (define) the problem
----------------------
Sound diagnosis is the crucial step in the problem solving process.
Defining the problem sets the boundaries for that. The decision maker, ----------------------
like a doctor, must take into account all symptoms before prescribing the ----------------------
medicines (i.e. recommending the decision). Peter Drucker rightly states,
“The books and articles on leadership are full of advice on how to make ----------------------
fast, forceful and useful decisions, but there is no more foolish or time
wasting advice than to decide quickly what a problem really is. Defining ----------------------
the problem in most instances is a time-consuming task, but it is time well ----------------------
spent.”
Sound diagnosis requires ----------------------

(i) measurement of the gap between the desired performance and the ----------------------
actual performance.
----------------------
(ii) identification of the root cause for the gap.
----------------------
(iii) identification of the restraints in the decision making process.
----------------------

Systematic Problem Solving 7

 Notes (b) Secure and analyse pertinent facts :
Once the problem has been diagnosed (defined) and half of the problem
----------------------
has been solved, the next logical step is to collect data. Data collection
---------------------- implies collecting background material, pertinent facts, decisions taken in
the past and their outcome, previous solutions to similar problems, etc.
----------------------
The general rules are:
---------------------- (i) The information should be collected from the most reliable sources.
---------------------- (ii) All relevant facts, regardless of how disorganised or unrelated they
may seem at the time of data gathering, should be recorded.
----------------------
(iii) The information should be subjected to checks and cross checks.
---------------------- The conflicting data must be resolved. The temptation to accept the
first response to inquiries should be avoided.
----------------------
(iv) The facts wherever possible should be supported by tangible
---------------------- evidence in the form of copies of the appropriate documents. Facts
which cannot be supported by documentary evidence (i.e. facts
---------------------- which are based on the opinion of individuals) should carry the
---------------------- names of the contributors so that they (individuals) can be contacted
later if required.
----------------------
The facts are then analysed to establish:
---------------------- (i) the length of time to which the decision should apply;
---------------------- (ii) effect of the decision on other functional areas;

---------------------- (iii) qualitative considerations to take an overall view of the business.

(c) Develop alternative solutions:
----------------------
This step concerns looking for the possible solutions and listing them
---------------------- down. The most common sources of collecting and listing of alternatives
include experience, superiors, juniors, consultants, research, creativity,
----------------------
brainstorming, critical examination, literature, etc.
---------------------- It is also the most important step and therefore a good amount of time,
effort and money should be spent/invested to get good alternative
----------------------
solutions.
---------------------- Generally, for every problem, alternative solutions exist and efforts need
to put forth to unearth these alternatives. Usually, a brainstorming or
----------------------
interaction session with those concerned with the problem can highlight
---------------------- several alternatives. For example, the company is considering purchasing
a CNC machine to manufacture a part that was currently being produced
---------------------- on a general purpose machine. The general manager held a series of brain-
storming sessions with his engineers and the following alternatives were
----------------------
identified:
---------------------- (a) to continue to make the part by the present method, or
---------------------- (b) to buy the proposed CNC machine, or

8 Techniques for Operations Efficiency

 (c) to buy a machine other than the proposed one, or Notes
(d) an improvement in the current method of making parts (e.g.
----------------------
retrofitting the existing machine, improved tooling and gauging
methods etc.), or ----------------------
(e) subcontracting the CNC – compatible operations to a good quality
----------------------
vendor, or
(f) discontinue manufacturing the part at the company’s own plant and ----------------------
buy the part from an outside source.
----------------------
After evaluating all the alternatives for their merits and demerits, the
general manager opted for the alternatives ‘d’, ‘e’ and ‘f’ and got the best ----------------------
results. ----------------------
(d) Evaluate alternatives
----------------------
Once all the alternative solutions have been enumerated, they are then
evaluated. This is usually done by testing each alternative against a set of ----------------------
objectives or specified criteria which the solution must meet. The steps
involved are: ----------------------

(i) Each alternative is analysed to see whether or not it meets the ----------------------
“must” objectives. An alternative which does not meet the “must”
----------------------
objective is immediately removed from further study.
(ii) Alternatives which meet the “must” objectives are next checked ----------------------
for the “want” objectives and those which are good in terms of
----------------------
“want” objectives are examined for adverse consequences. Since
each alternative usually entails some risk, the decision maker next ----------------------
assesses the risk, the probability of the risk, and/or the seriousness
of the risk. ----------------------
(iii) Every attempt is made to eliminate or minimise the risk (or the ----------------------
disadvantages). T-chart analysis is usually helpful.
----------------------
(iv) Alternatives are next weighed for their effectiveness by identifying
their long-term and short-term consequences. The advantages of ----------------------
the alternatives are quantified in terms of a common denominator,
usually the money. ----------------------

(e) Select the best alternative ----------------------

The alternative cleared at the evaluation stage are next ranked according ----------------------
to their worth. The final selection is then made for the alternative which
provides the maximum advantages which entails the acceptance risk (i.e. ----------------------
the alternative that best meets the solution criteria is selected.)
----------------------
(f) Implement the selected decision
----------------------
Once the final choice has been made, the next step is to implement the
decision and to follow up for the verification of the consequences (or ----------------------
effect of the decision).
----------------------

Systematic Problem Solving 9

 Notes Though the steps mentioned above are sequential and separate, usually
there is a recycling among the steps. For example, while trying to evaluate the
---------------------- alternatives, the decision maker may have to go back to the data collection step
if he finds that he does not have all the information.
----------------------

---------------------- Check your Progress 2

----------------------
State True or False.
---------------------- 1. The gap between the desired performance and the actual performance
---------------------- helps in problem diagnosis.
2. Only relevant data must be recorded.
----------------------
3. An attempt must be made to minimize / eliminate risks.
----------------------

----------------------
Activity 2
----------------------

---------------------- 1. Describe the steps in problem solving.

---------------------- 2. State the seven tools used in problem solving.

----------------------
1.6 STEPS FOR SOLVING AN IMPROVEMENT PROBLEM
----------------------
The Japanese have provided a structured methodology for solving the
----------------------
“improvement” problem. The methodology is also known as the Quality Control
---------------------- story and it comprises of the following six steps based on the famous Deming
Plan-Do-Check-Act (PDCA) Cycle. These steps have been discussed in detail
---------------------- in Unit 9 and shown in Fig. 1.3.
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

10 Techniques for Operations Efficiency

 Define improvement problem Notes

----------------------
Measure current status
----------------------

Decide on desired level ----------------------

----------------------
Find gap in performance
----------------------

----------------------
Set target
----------------------

Prepare action plan ----------------------

Plan (P)
(Counter measure) ----------------------
----------------------
Implement counter
Act (A) Corrective ----------------------
measure
action
----------------------
Measure/analyse
Check (C) ----------------------
achievement
----------------------

Satisfactory ----------------------
No
performance? ----------------------

----------------------
Stabilise/Standardise (SDCA) ----------------------

----------------------
Yes
New target ----------------------
No ----------------------
Maintain status quo ----------------------

End ----------------------

----------------------
Fig. 1.3: Steps to Solve an Improvement Problem
----------------------

----------------------

----------------------

Systematic Problem Solving 11

 Notes 1.7 PROBLEM SOLVING AND 7 QC TOOLS
---------------------- The 7 Quality Control Tools are the most widely practiced set of tools in
---------------------- all the successful Japanese companies. It has been observed that most of the
industrial problems lend themselves to the logical and thorough application of
---------------------- the 7 QC tools. The 7 QC tools comprise of -

---------------------- ●● Checksheet
●● Cause and Effect Diagram
----------------------
●● Pareto’s Chart
---------------------- ●● Stratification
---------------------- ●● Histogram
●● Scatter Diagram
----------------------
●● Graphs
----------------------
Summary
----------------------

---------------------- ●● A problem implies a gap in the planned and actual performance, complaints
by the internal or external customer and activities that cause late working,
---------------------- or an excessive consumption of resources.
●● Problem can be grouped under three heads: (1) Zero problems, (2)
----------------------
Decrease problems, and (3) Increase problems. Each problem must be
---------------------- systematically analysed and solved for which the key steps are: (1) to
diagnose the problem (2) secure and analyse pertinent data (3) develop
---------------------- alternative solutions (4) select the best alternative, and (5) to implement
the selected alternative.
----------------------

---------------------- Keywords
---------------------- ●● Decrease Problems: Problems where solving is intended to focus on its
---------------------- magnitude rather than to eliminate it entirely.
●● Increase Problems: Increase problems are those wherein the objective
---------------------- is to increase something for example, increase in sales, turnover yield, or
contribution.
----------------------
●● Problem: A problem implies a gap in the planned and actual performance,
---------------------- complaints by the internal or external customer, and activities that cause
late working, or excessive consumption of resources.
----------------------
●● Problems of Maintenance: There are problems that appear in processes
---------------------- which have run smoothly prior to the occurrence of a discrepancy.
---------------------- ●● Problems of Improvement: There are problems where the status quo is
considered unsatisfactory and needs to be taken to an improved level.
---------------------- ●● Zero Problems: Problems where the objective is to completely eliminate
---------------------- the problem. In other words, zero problems should not exist.

12 Techniques for Operations Efficiency

 Notes
Self-Assessment Questions
----------------------
1. What is the meaning of a problem? How is it classified? Explain with
examples the different categories of problems. ----------------------
2. What are the basic steps in the problem-solving process? Explain them
----------------------
briefly.
3. State the 7 QC tools used in problem solving. ----------------------

----------------------
Answers to Check your Progress
----------------------
Check your Progress 1
----------------------
Match the following.
i. –c ----------------------

ii. –a ----------------------
iii. –b ----------------------

----------------------
Check your Progress 2
----------------------
State True or False.
1. True ----------------------

2. False ----------------------
3. True ----------------------

----------------------
Suggested Reading
----------------------
1. Graham W. Parker, Systematic problem solving
----------------------
2. Systematic innovation: an introduction to TRIZ (theory of inventive
problem solving) J Terninko, A Zusman, B Zlotin – 1998 ----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

Systematic Problem Solving 13

 Notes

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

14 Techniques for Operations Efficiency

7 QC Tools
UNIT

2
Structure:

2.1 Introduction
2.2 7 QC Tools
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

7 QC Tools 15
 Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
●● State the use of helpful quality tools to solve the problems.
---------------------- ●● Evaluate the benefits and limitations of each quality tools.
----------------------

---------------------- 2.1 INTRODUCTION

----------------------
Now we know how to define a problem and its elements. Let us know about
---------------------- the method to solve them. 7QC tools are very important in solving a variety of
the problems. The 7QC tools have an immense potential and can bring about a
----------------------
turnaround in achieving favourable results in business. According to Dr. Kaoru
---------------------- Ishikawa, “Success does not depend on the application of complex techniques,
but on the number of employees trained in the use of simple techniques”.
----------------------

---------------------- 2.2 7 QC TOOLS

---------------------- The 7 QC tools are,

1. Check sheet
----------------------
2. Pareto’s analysis
----------------------
3. Ishikawa diagram
---------------------- 4. Stratification
---------------------- 5. The scatter diagram
---------------------- 6. Histogram
7. Graph control (Control chart and other graphical presentation)
----------------------
1. Checksheet
----------------------
A checksheet is a method that enables organised collection and grouping
---------------------- of data into categories. Checksheets are used as data gathering and interpretation
---------------------- tools to
●● Identify the types of problems that occur
----------------------
●● Ascertain the severity of the occurrence and of the problem
----------------------
●● Establish the cause(s) of the problem
---------------------- ●● Establish the location and extent of the problem
---------------------- ●● Keep a track of the parameters of an ongoing process

----------------------

----------------------

16 Techniques for Operations Efficiency

Construction of the checksheets Notes
The construction of checksheets involves the following steps:
----------------------
Step 1 : Decide the purpose of data collection
----------------------
Step 2 : Decide what type of data is to be collected
Step 3 : Select the time period over which data will be collected ----------------------

Step 4 : Design a suitable data collection form ----------------------

Step 5 : Collect and record data ----------------------
Step 6 : Interpret the data
----------------------
Types of checksheets
----------------------
Checksheets are of five types :
----------------------
(i) Error checksheet lists down the kind of defects that occur and render the
job defective. ----------------------
(ii) Cause checksheet enlists the various causes of the problem and the ----------------------
frequency of occurrence of each cause.
----------------------
(iii) Production process distribution checksheet records the dispersion of
the value of the parameter to be controlled. ----------------------
(iv) Inspection checksheet lists down the parts of an inspection, be it a ----------------------
preventive maintenance job, or items to be packed in a box, or items to be
----------------------
covered in a development P.O., etc.
(v) Location checksheet shows the location of the problem on the drawing ----------------------
of the object. For example, location of porosity in a casting, etc. ----------------------
Fig. 2.1. to 2.5 show checksheets of the above mentioned types.
----------------------

ERROR DEFECT CHECKSHEET ----------------------

Department : Administration
Task : Typing ----------------------
Mistake May, 2003 Total ----------------------
1st Wee 2nd Week 3rd Week 4th Week
----------------------
Centering || ||| ||| | 9
----------------------
Spelling |||||| ||||||||| |||| |||||| 30
----------------------
Punctuation ||||||||||| |||||||||| |||||| ||||||||| 43
----------------------
Missed paragraph | || | 4
----------------------
Wrong number ||| || |||| | 10
----------------------
Total 25 29 21 21 96
----------------------
Fig. 2.1: Defect/Error Checksheet of Typing Mistakes

7 QC Tools 17
 Notes CAUSE CHECKSHEET Item Group : Supplier’s Defective bills
Period : 1st April to 30th June, 2003.
----------------------
Sr. Cause of return of bills Run
---------------------- No. by Accounts Run Run Run Run Total
#1 #2 #3 #4
----------------------
1. Purchase Order not released 5 5 6 7 23
---------------------- 2. Form 31 not signed by the supplier 1 - 2 1 4
---------------------- 3. Rate difference 3 1 2 1 7
4. Packing and forwarding charges
---------------------- not as per P.O. (Purchase Order) - - 1 - 1
5. Freight bill not attached 1 - - 1 2
----------------------
6. Totalling errors 2 - - - 2
---------------------- Total
---------------------- (No. of defective bills) 12 6 10 * 9* 39
* More than one cause
----------------------

---------------------- Fig. 2.2: Cause Checksheet Enlisting Causes for Return of

Bills by Account Department
----------------------
INSPECTION CHECKSHEET
---------------------- Dept : Maintenance
---------------------- Task : Preventive inspection
Month : June, 2003
----------------------
Sr. Check point Week Remarks
---------------------- No. 1 2 3 4
---------------------- 1. Check oil level √ √ √ √
2. Clean battery top √ √ √ √
----------------------
3. Check electrolyte level OK OK OK Filled
---------------------- 4. Check oil leakage √ √ √ √
---------------------- 5. Check break √ √ √ √
6. Check clutch OK OK OK Adjusted
----------------------
Tick off or write ok if satisfied
---------------------- Signature ( Maint. Tech.)
---------------------- Fig. 2.3: Inspection Checksheet (Hydraulic fork lift truck)
----------------------

----------------------

----------------------

----------------------

18 Techniques for Operations Efficiency

 PROCESS DISTRIBUTION Notes
CHECKSHEET Operation : Burnishing + 0.04
----------------------
Reqd. Dimension : 70 + 0.12
Measurement Batch No. Total ----------------------
1 2 3 4 5 6
----------------------
+0.03 | 1
+0.04 ||| 3 ----------------------
+0.05 ||| 3
+0.06 |||| |||| || |||||| 19 ----------------------
+0.07 |||| |||| |||||| ||||||| |||| |||| 34
+0.08 |||| ||||| ||||| ||||||| |||| ||| 33 ----------------------
+0.09 || || |||| |||| |||| |||| 23
----------------------
+0.10 |||| || |||| || || || 17
+0.11 || || | 5 ----------------------
+0.12 | | 2
+0.13 ----------------------
+0.14
----------------------
Batch Qty. 25 26 24 25 25 15 140
----------------------
Fig. 2.4: Process Distribution Checksheet
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

Fig.2.5: Location Checksheet Showing Concentration of Micro-porosity ----------------------

in Housings ----------------------
2. Pareto’s Analysis
----------------------
What is Pareto’s Analysis?
----------------------
Every problem is the result of a few causes, and not all causes are of
equal importance. Some causes are more significant than the others. Pareto’s ----------------------
Analysis, underlines and operates this philosophy of “vital few: trivial many”.
----------------------

7 QC Tools 19
 Notes It is a technique of identifying vital causes by arranging the data, according to
the descending order of their frequency of occurrence.
----------------------
Pareto’s diagram is the outcome of a study conducted by Vilfredo Pareto
---------------------- (1848-1923) to study the phenomenon of wealth in his country. Pareto observed
that in his native country, 80 percent of the wealth was held by only 20 per cent
---------------------- of the population. He eventually realised that he had discovered a universal law
– around 20% of the activity causes 80% of the effect.
----------------------
For example:
----------------------
●● 8 0 to 90% of the Italy’s wealth lay in the hands of 10 to 20% of the total
---------------------- population.
●● 8 0% of the accidents occur on 20% of the roads (i.e. some roads are more
----------------------
dangerous than others).
---------------------- ●● 8 0% of the shopping that takes place, is done in 20% of the time in the
stores that are open. (i.e. people try to shop at the same time).
----------------------
●● 8 0% of the absenteeism in a company is generally on account of 20% of
---------------------- the work force.
---------------------- ●● 20% of the machines are responsible for 80% of the total down time.
●● 20% percent of the end products generate 80% of sales revenue.
----------------------
●● 20% of the clerks make 80% of the clerical errors.
---------------------- ●● 20% of the employees create 80% of the trouble.
---------------------- ●● 20% of the customers are responsible for 80% of the bad debts.
●● 2 0% of the total items in the stock account for 80% of the annual
----------------------
expenditure on materials.
---------------------- U.S. economist M.C. Lorenz (1907), presented this lop-sided distribution
in the form of a theoretical curve, called Lorenz’s curve. Dr. J.M. Juran observed
----------------------
a similar phenomenon in many other fields, including quality. He named this
---------------------- phenomenon as Pareto Analysis in honour of the originator of the concept.
Steps in the making of Pareto’s Chart
----------------------
(1) Select the problem and identify causes into a handful of categories. For
---------------------- example, for a problem of “late coming to duty”, possible categories of
---------------------- causes may be heavy traffic, oversleeping, sickness, vehicle problem,
family problems, etc.
---------------------- (2) Select the standard unit of measurement (for example, frequency, cost,
---------------------- sales etc.)
(3) Select the time period over which data will be collected (for example, 8
----------------------
hours, 5 days, 2 weeks, etc).
---------------------- (4) Collect the necessary data on each category and summarise results.
---------------------- It is generally convenient to create a three-column table having headings
as “error category”, “frequency (or cost)”, and “percentage of total”. This
---------------------- information can be taken directly from the check sheet.

20 Techniques for Operations Efficiency

(5) Rearrange the data in the descending order of the frequency or cost. Notes
(6) Organise the Pareto’s chart
----------------------
Making of a Pareto’s graph involves the following steps:
----------------------
(a) Draw two vertical axis, one on either side of a horizontal side axis
(leaving enough space on the horizontal axis to list the problem ----------------------
categories). Mark the frequency of occurrence of the problem along
left vertical axis, and percentage along right vertical axis. ----------------------
(b) Divide the horizontal axis into intervals equal to the number of ----------------------
categories.
----------------------
(c) List down the categories from left to right, in their order of
decreasing frequency or cost. ----------------------
(d) Construct a bar or rectangle above each category, with the height ----------------------
being equal to the frequency or cost.
----------------------
(7) Draw the cumulative line/curve (Pareto’s curve) by plotting each point at
the right hand corner of each bar and them connecting these points. ----------------------
(8) Write all the necessary information concerning the diagram.
----------------------
An example for constructing a Pareto’s diagram:
----------------------
Rejections in a gray iron foundry during last year are tabulated as under :
----------------------
Cause Weight in tonnes rejected
1. Blow holes 80.5 ----------------------
2. Sand inclusion 35.8 ----------------------
3. Cold sheet 5.2
4. Incorrect dimensions 9.8 ----------------------
5. Misrun 15.5 ----------------------
6. Shift 25.2
----------------------
7. Damages 3.3
8. Shrinkage 69.7 ----------------------
9. Slay inclusion 11.0
----------------------
10. Others 12.0
268.0 ----------------------

Construct the Pareto’s diagram ----------------------

Solution : ----------------------
Steps involved are as follows :
----------------------
1. Collect data concerning the problem under study (for example, here it
is the rejection data to be extracted from the past records). This step has ----------------------
already been done in the problem.
----------------------
2. Rearrange the data in the descending order, beginning with the cause for
the highest rejection. This step has been performed as under: ----------------------

7 QC Tools 21
 Notes Causes of Weight in tonnes % of weight Cumulative Cause
rejection rejected to total percentage code
----------------------
1. Blow holes 80.5 30.04 30.04 A
---------------------- 2. Shrinkage 69.7 26.01 56.05 B
---------------------- 3. Sand inclusion 35.8 13.36 69.41 C
4. Shift 25.2 9.40 78.81 D
----------------------
5. Misrun 15.5 5.78 84.59 E
----------------------
6. Slay inclusion 11.0 4.10 88.69 F
---------------------- 7. Incorrect dimension 9.8 3.66 92.35 G
---------------------- 8. Cold sheet 5.2 1.94 94.29 H
9. Damages 3.3 1.23 95.52 I
----------------------
10. Others 12.0 4.48 100.00 J
----------------------
268.0 100% 100%
---------------------- From the major causes established, Pareto’s diagram can be drawn.
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

---------------------- Fig. 2.6: Pareto’s Diagram

It is evident from the above table that, just the first four causes are
----------------------
responsible for nearly 80% (78.89) of the rejection. If a similar analysis is made
---------------------- castingwise, it will identify few castings which account for most of the losses.
Pareto’s analysis thus helps to identify areas of priorities for further studies, and
---------------------- also some remedial measures.
----------------------

----------------------

22 Techniques for Operations Efficiency

3. Ishikawa Diagram Notes
Why an Ishikawa Diagram?
----------------------
Every organisation faces problems. Every problem has contributory
causes. These causes need to be identified, to eliminate problems or minimize ----------------------
the effect of the problems. All causes including probable causes, (i.e. which
----------------------
have not occurred earlier) should be identified so that preventive action can be
taken (after all, prevention is better than cure). ----------------------
After the causes have been identified, they should be put into a systematic
----------------------
form, that helps presentation and analysis. And an Ishikawa Diagram is one
such a tool. ----------------------
What is an Ishikawa Diagram? ----------------------
An Ishikawa diagram is also called as the “cause and effect” diagram,
or the fishbone diagram (due to its shape) – an effective tool for diagnosis ----------------------
of a problem – was developed by Dr. Kaoru Ishikawa, a Professor in Tokyo ----------------------
University.
The diagram lists out in a classified and systematic manner all the causes ----------------------
which are responsible for the problem (called effect). The diagram consists of ----------------------
a main line to represent the actual problem and few lines to represent the major
causes – materials, men, methods and machines – and horizontal or slanting ----------------------
arrows to represent the sub-causes underlying each main cause.
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
Fig. 2.7: Cause and Effect Diagram
----------------------
How is the cause and effect diagram drawn?
----------------------
Step 1 : Specify the problem to be solved
For example: ----------------------

(i) Accidents ----------------------

(ii) Process defectives ----------------------

(iii) Employer-employee relations ----------------------

7 QC Tools 23
 Notes (iv) Delayed delivery
(v) Defective Bills
----------------------
(vi) Labour efficiency
----------------------
Step 2 : Brainstorm to find all the possible causes of the problem.
---------------------- Step 3 : Organise/arrange these causes in few major themes (i.e. rational
---------------------- categories).
Step 4 : Construct a cause and effect diagram, that accurately displays the
---------------------- relationship of all the data in each category. Steps in the construction
---------------------- of the diagram are as follows:
(a) Draw a box on the far right hand side of a large sheet of paper and write
---------------------- the description of the problem to be solved inside the box. Also draw a
---------------------- thick arrow that points to the box, and consider this as the main trunk of
a tree.
----------------------
---------------------- Problem
----------------------

---------------------- (b) Enter the title of the categories (also called themes), above and below
the horizontal line, and connect them to the horizontal line by vertical or
----------------------
standing arrows. Think of these as branches of the main trunk of the tree.
----------------------
Man Machine
----------------------

---------------------- Problem

----------------------
Method Materials
----------------------
(c) Enter the detailed cause data for each category/theme, by arrows meeting
----------------------
the horizontal or slanting lines (i.e. lines representing the main theme).
---------------------- Think of these as limbs or twigs of the branches.

---------------------- Man Machine

Cause A Cause B Cause A
---------------------- Cause C
Cause C
Cause B Cause D
----------------------
Problem
---------------------- Cause B
Cause A Cause A
Cause B
Cause C Cause C Cause D
----------------------
Method Materials
----------------------
(d) Review the diagram drawn above to ensure that no cause has been missed.
----------------------

24 Techniques for Operations Efficiency

An example on the Ishikawa diagram: Notes
The table below lists four categories of causes (called themes) to the
----------------------
problem of “industrial accidents,” as well as the sub-causes under each category:
----------------------
Main Causes Sub-causes
1. Machine (i) Defective instruments ----------------------
(ii) Poor maintenance ----------------------
(iii) Absence of safety guards
----------------------
2. Man (Operator) (i) Careless in working
----------------------
(ii) Lack of knowledge
(iii) Over confidence ----------------------
(iv) Non-conformance to the instructions ----------------------
given
----------------------
3. Methods (i) Absence of instructions
(ii) Lack of proper training ----------------------

(iii) Improper methods ----------------------

4. Materials and Equipments (i) Non-availability of safety equipments ----------------------
(ii) Defective/improper equipments
----------------------
Fig. 2.8 below shows the entry of causes and sub-causes into the diagram, called
the Ishikawa diagram. ----------------------

Operator Machine ----------------------

Careless working Defective instruments ----------------------
Over confidence Non-use of safety

Lack of knowledge
Absence of safety guards ----------------------
Poor maintenance
Non-conformance to instructions
----------------------

ACCIDENTS ----------------------
Lack of training ----------------------
Absence of instructions
Improper Non-availability of safety equipments
methods Defective equipments
----------------------

----------------------
Method Materials & Equipment
----------------------
Fig. 2.8
----------------------
Benefits of the cause and effect diagram
The cause and effect diagram ----------------------
(i) Is an excellent tool for organising and documenting the potential causes ----------------------
of problems in all areas, and at all levels in the organisation.
----------------------

7 QC Tools 25
 Notes (ii) Serves as a good guide for discussion and frequently inspires more ideas
during problem solving meetings.
----------------------
(iii) Provides a systematic approach for solving the problem.
---------------------- (iv) Can provide an in-depth knowledge about the process.
---------------------- (v) Once created, acts as a record of the research conducted on the process.

---------------------- Some actions for better results

To construct a cause and effect diagram, the following actions are recommended:
----------------------
(i) Form a cross functional team of people concerned with the problem.
----------------------
(ii) Conduct a brainstorming session to identify likely causes that seem
---------------------- improbable at first.
(iii) Transfer all the causes into the cause and effect diagram.
----------------------
(iv) Pick up, by consensus, the most likely cause for a detailed investigation.
----------------------
(v) Since the cause and effect diagram is a display of the current level of
---------------------- understanding of the various possible causes to the problem known to the
group, it is a good idea to display it in a prominent location for all to see.
---------------------- This helps employees to have clarity of the process, and the factors that
---------------------- can and are affecting it.
(vi) The cause and effect diagram is only an aid to present information on
---------------------- possible causes of the problem. The diagram does not indicate the culprit
---------------------- cause (called root cause) of the problem. The help of other techniques
may also be taken to identify the root cause.
----------------------
(vii) A good cause and effect diagram will generally have many twigs (i.e.
---------------------- each main cause or category will have three or four sub-causes). If the
diagram does have enough sub-causes, it shows that our understanding
---------------------- of the problem is very poor and that we need the help of someone outside
our group, to help us in understanding the problem, perhaps someone
----------------------
who is closely associated with the problem, or someone who has more
---------------------- knowledge and experience in that particular area.

---------------------- Check your Progress 1

----------------------
True / False
----------------------
1. Error checksheet lists down the kind of defects that occur and render
---------------------- the job defective.
---------------------- 2. Ishikawa diagram is also called as the fishbone diagram
3. Pareto analysis is a technique of identifying vital causes by arranging
----------------------
thedata,accordingtothedescendingorderoftheirfrequencyofoccurrence.
----------------------

----------------------

26 Techniques for Operations Efficiency

4. Stratification Notes
What is stratification?
----------------------
Stratification is the process of segregating or regrouping the data on the
basis of certain characteristics, (e.g. machine wise, operatorwise, shift into ----------------------
sub-groupwise, supplierwise etc.) for identifying the influencing factors (i.e.
----------------------
identifying contributory causes to the problems being tackled).
For example, data on ----------------------
●● Customers’ complaints may be segregated by ----------------------
nature of complaints (for example, defective product, delayed
----------------------


delivery, short/excess quantity, damaged product, incorrect

paperwork, incorrect shipment, etc). ----------------------

 departments responsible (for example, design, manufacturing, ----------------------
distribution, quality assurance, sales and service, etc).
----------------------
●● Source of trouble (for example, factory, warehouse, retail outlet, etc).
●● Quality problems may be segregated and regrouped by ----------------------
 machines ----------------------
 workers
----------------------
 vendors

 materials ----------------------
 assembly
----------------------
●● Breakdowns may be stratified by
----------------------
sections

----------------------
machines


 type of breakdown (for example, mechanical, electrical) ----------------------

●● Vendor’s PPM may be segregated supplierwise, for example, supplier A, ----------------------

supplier B, supplier C, etc.
----------------------
●● Defective assemblies may be segregated by workers. (for example, worker
A, worker B, worker C, etc.) ----------------------
●● Power consumption may be stratified based on ----------------------
departments (for example, machine shop, press shop, welding shop,
----------------------


gear shop, compressor section, etc.) and so on

Receivables may be stratified by ----------------------

 branch (for example, Pune, Madras, Calcutta, Bombay, Delhi, ----------------------
Baroda, etc.)
----------------------

 Customer category (for example, pharmaceutical industry,
engineering, power sector, etc.) ----------------------

 time (below 30 days, 31-60 days, 61-90 days, 121-180 days , over ----------------------
180 days).
7 QC Tools 27
 Notes Benefits of stratification
Stratification helps to
----------------------
 Separate data into groups, and thereby draw meaningful and correct
---------------------- inferences from the data.
----------------------  Diagnose and localize problems (i.e. establish clear relationship
between cause and effect).
----------------------
 Identify the influencing factors, thereby making it easier to solve
---------------------- the problems.
---------------------- Steps for stratification

---------------------- Step 1 : Define the problem.

---------------------- Step 2 : Identify the stratification variables.
Step 3 : Sort out the data into the categories of stratification variables.
----------------------
Step 4 : Summarise information in each category.
----------------------
Step 5 : Present the information in each category in graphic form, to enable
---------------------- effective communication.
---------------------- Step 6 : Study the display, decide and perform further stratification (if required).
(Sometimes, the data may require second or third stage of stratification).
----------------------
Step 7 : Collect additional data to confirm, correctness of stratification of data/
---------------------- rightness of interpretation.
Typical examples of stratification
----------------------
(i) % defectives stratified supplierwise (Fig. 2.9)
----------------------

---------------------- 40
% Defectives

---------------------- 30%
30
25%
----------------------
20 15%
----------------------
10 10%
----------------------

---------------------- 0 A B C D
Supplier
----------------------
Fig 2.9
----------------------

----------------------

----------------------

----------------------

28 Techniques for Operations Efficiency

(ii) Defective values stratified assembly technicianwise (Fig. 2.10). Notes

----------------------
20

No. of defective value

17 ----------------------

assembled
15
----------------------
12
10 ----------------------
8

5 4 ----------------------

0 A B C D
----------------------
Worker
----------------------
Fig 2.10 ----------------------
(iii) Power consumption stratified departmentwise (Fig. 2.11)
----------------------
----------------------
Gear Shop

50
Power Consumption (%)

M/C Shop

40 ----------------------
Compressor

30 ----------------------
Assembly Shop
Welding Shop

Others

25% 35%
20 ----------------------
10 17%
5% ----------------------
5% 3%
Department ----------------------

Fig 2.11 ----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

7 QC Tools 29
 Notes (iv) Accidents stratified departmentwise and type of accident (Fig. 2.12)

----------------------

Press shop
50

----------------------

Gear shop
40

Welding shop
% Accidents

Machine shop
----------------------
30

Others
30%
---------------------- 25%
20
---------------------- 10 15%
20%
10%
----------------------
Department

Feet Injury
----------------------
50

Hand Injury
----------------------
Press shop further 40

% Accidents
---------------------- stratified 40%
30

Others
---------------------- 30%

20

Eye
Body
---------------------- 15%
10
10%
---------------------- 5%

Department
----------------------
Fig. 2.12
----------------------
5. The Scatter Diagram
----------------------
Why the Scatter Diagram?
---------------------- Systematic problem solving requires that, opinions (or theories) held by
---------------------- team members, regarding the influence of one or more sources of variations,
on the outcome in the problem under analysis, be verified and the suspected/
---------------------- expected relationship confirmed by data on hand, so that the information can be
used for reducing rejection/rework.
----------------------
For example, it is widely believed that
---------------------- ●● ouring temperature of a metal has a significant effect on the occurrence
P
---------------------- of blow holes.
●● ardness of the material in a sheet metal operation, such as piercing cause
H
---------------------- cracks in the components.
---------------------- ●● oisture has a lot of influence on the elongation characteristic of the
M
yarn.
----------------------
●● Squeezing in butterfly valves has a tremendous effect, on the torque
---------------------- values of the valves. Also the finish on the disc in the butterfly valves
significantly affects the torque value.
----------------------
●● here is a strong correlation between employee knowledge of the process
T
---------------------- and waste production.

30 Techniques for Operations Efficiency

 Analyst/team members, therefore, should get the relationship confirmed Notes
using the information on hand, so that the rejection/rework can be avoided/
reduced due to “blow holes”, “improvement to elongation (specification).” ----------------------
A scatter diagram provides the technique and therefore, the methodology ----------------------
to examine/establish the possible relationship between a pair of variables.
What are scatter diagrams? ----------------------
The scatter diagram, also called as the ‘correlation diagram’, is a graphical ----------------------
representation between two variables, (or between a cause and effect) or between
two associated sets of data, which occur in a pair (for example, x, y, one from ----------------------
each set). The scatter diagram displays a pair of data as a cloud of points. The ----------------------
strength of the relationship between the variables, (or associated set of data) can
be inferred from the examination of the shape of the clouds. ----------------------
The concept of scatter diagrams was put toward by Dr. Buxton (an
----------------------
Englishman) in 1974. JFW Herschal was the first to use it in 1832, to fit a
curve to a scatter diagram. However, the concept got popularised in 1950, as Dr. ----------------------
Ishikawa started using the scatter diagram for industrial applications.
----------------------
Uses of the scatter diagram
The scatter diagram is used ----------------------
(1) to discover and display the relationship between two associated sets of data, ----------------------
(2) to confirm the anticipated relationship between two associated sets of data.
----------------------
Steps in the construction of a scatter diagram
----------------------
(1) Collect paired data (x,y) from two associated sets of data, whose
relationship is to be studied. It is desirable to have around 25/30 pairs of ----------------------
values of data.
(2) Find the minimum and maximum values for both x and y, and use these ----------------------
values to scale the horizontal (x) and vertical (y) axis. It is important that both ----------------------
the axis are of equal length.
(3) Plot the paired (x, y) data. ----------------------
(4) Examine the shape of the cloud of points, and discover the type and ----------------------
strength of the relationship.
----------------------
Alternatively, the strength of the correlation can be determined by the
“correlation coefficient” which can be calculated. ----------------------
Commonly occurring relationships ----------------------
There are six commonly occurring relationships between a set pair of data:
----------------------
●● Strong positive relationship
----------------------
●● Strong negative relationship
●● Weak positive relationship ----------------------
●● Weak negative relationship ----------------------
●● Curvilinear relationship
----------------------
●● No relationship

7 QC Tools 31
 Notes (1) Strong positive correlation is said to exist when the value of ‘Y’ increases
as the value of ‘X’ increases (Fig. 2.13)
----------------------

----------------------

----------------------
Y
----------------------

----------------------

----------------------

----------------------
X
---------------------- Fig. 2.13: Strong Positive Correlation
---------------------- (2) Strong negative correlation is said to exist when the value of ‘Y’
decreases as the value of ‘X’ increases (Fig. 2.14)
----------------------

----------------------

----------------------
Y
----------------------

----------------------

----------------------

---------------------- X
---------------------- Fig. 2.14: Strong Negative Correlation

---------------------- (3) Weak positive correlation is said to exist when value of ‘Y’ increases to
a certain extent as the value of ‘X’ increases (Fig. 2.15)
----------------------

----------------------

----------------------

---------------------- Y
----------------------

----------------------

----------------------
X
----------------------

---------------------- Fig. 2.15: Weak Positive Correlation

32 Techniques for Operations Efficiency

(4) Weak negative correlation is said to exist between sets of a pair of data, Notes
when the value of ‘Y’ to a certain extent decreases as the value of ‘X’
increases (Fig. 2.16) ----------------------

----------------------

----------------------

----------------------

Y ----------------------

----------------------

----------------------

----------------------
X
----------------------
Fig. 2.16: Weak Negative Correlation ----------------------

(5) No correlation is found to exist when the value of ‘Y’ does not appear ----------------------
to increase or decrease, with increases within a range of values of ‘X’
(Fig. 2.17) ----------------------

----------------------

----------------------

----------------------

----------------------
Y
----------------------

----------------------

----------------------
X ----------------------
Fig. 2.17: No Correlation ----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

7 QC Tools 33
 Notes (6) Curvilinear relationship is said to exist when there is a positive
correlation up to a certain level which later becomes negative. Thus
---------------------- correlation may also be observed the other way around, i.e. a negative
correlation upto a certain level and positive thereafter. (Fig. 2.18).
----------------------

----------------------

----------------------

----------------------
Y
----------------------

----------------------

----------------------

---------------------- X

---------------------- Fig. 2.18: Curvilinear Relationship

---------------------- Precautions to be taken while drawing a scatter diagram

(1) Data should be properly stratified. Mixed data can give misleading results.
----------------------
(2) Data should be collected for the entire range, as sometimes there can
---------------------- be curvilinear relationships. i.e. positive (or negative) correlation up to a
level, then negative (or positive) correlation.
----------------------
(3) Scale selected, while plotting the data, should be right, to avoid wrong
---------------------- conclusions being drawn.
---------------------- (4) Data should be free from bias and/or undue importance.

---------------------- (5) Scatter diagram should be drawn when there is a likelihood of correlation.
Unnecessary time will be wasted, if one tries to establish correlation
---------------------- between irrelevant factors.

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

34 Techniques for Operations Efficiency

Example on stratification Notes
The table below gives 25 sets of pairs of, values, of data on hardness and
----------------------
tensile strength, measured in a copper-alloy castings.
TEST PIECE NO. HARDNESS TENSILE STRENGTH ----------------------
(BHN) (Kg/ mm2) ----------------------
(X) (Y)
----------------------
1 84 38.0
2 93 40.7 ----------------------
3 89 35.3
----------------------
4 86 37.6
5 87 36.2 ----------------------
6 93 37.6
----------------------
7 88 33.1
8 80 24.9 ----------------------
9 68 28.3
----------------------
10 92 39.9
11 69 31.8 ----------------------
12 85 36.2
13 93 39.1 ----------------------
14 89 36.1 ----------------------
15 91 39.5
16 85 36.0 ----------------------
17 90 37.9 ----------------------
18 92 38.6
19 76 32.3 ----------------------
20 88 34.6 ----------------------
21 87 39.8
22 76 33.1 ----------------------
23 92 38.8 ----------------------
24 91 37.4
25 83 36.9 ----------------------
Is there a correlation between hardness and tensile strength? If yes, what ----------------------
is the strength of that relation?
----------------------
Solution :
----------------------
Step - 1
----------------------
Collect paired data (X and Y) from two associated sets of data, whose
relationship is to be studied. ----------------------
The given problem provides paired data (BHN and Tensile strength) of
----------------------
25 test pieces. The objective is to find the effect of increase in hardness (BHN)
on tensile strength. ----------------------

7 QC Tools 35
 Notes Step - 2
Find minimum and maximum values for both, x (BHN) and y (tensile strength)
----------------------
Value of BHN (i) Maximum = 92
----------------------
(ii) Minimum = 68
---------------------- Value of tensile strength (i) Maximum = 40.7
---------------------- (ii) Minimum = 24.9

---------------------- ∴ Range of BHN = 24

& Range of tensile strength = 16
----------------------
Start of x-axis (BHN) (Div. = .30) = 20-45
----------------------
Start of y-axis (Tensile) (Div. = .30) = 65-95
----------------------
Step - 3
----------------------
Plot the paired (x = BHN and y = TS) data. This has been depicted on page 50.
---------------------- Step - 4
---------------------- Examine the shape of the cloud of points, to discover the underlying type,
---------------------- and the strength of the relationship.
Display the cloud of points which clearly depicts the strong correlation
----------------------
between BHN and tensile strength.
----------------------

----------------------

----------------------
50
----------------------
47

---------------------- 44

---------------------- 41

38
---------------------- Y
38
----------------------
35
---------------------- 32

---------------------- 29

---------------------- 26

23
----------------------
20
---------------------- 65 68 71 74 77 80 83 86 89 92 95
X
----------------------

36 Techniques for Operations Efficiency

Alternate method of the finding approx. strength of the correlation Notes
One can also find an approximate figure of the strength of the correlation,
----------------------
using the following formula.
Σxy – (Σx) (Σy) ----------------------
n
----------------------

Co-efficient of correlation (r) = √[ [[
Σx2 – (Σx)2 Σy2 - (Σy)2
n n
[ ----------------------

Example ----------------------

Calculate the co-efficient of correlation from the data on BHN and tensile ----------------------
strength (Page 31)
----------------------
Solution :
----------------------
We first calculate the values of n, Sx, Sy, Sx2, Sy2 and Sxy. (Refer table)
----------------------
Test Piece Hardness Tensile x2 y2 xy
No. (x) strength (y) ----------------------
1 84 38.0 7056 1444.00 3192.0
----------------------
2 93 40.7 8649 1656.49 3785.1
3 89 35.3 7921 1246.09 3141.7 ----------------------
4 86 37.6 7396 143.76 3233.6
5 87 36.2 7569 1310.44 3149.4 ----------------------
6 93 37.6 8649 1413.76 3496.8 ----------------------
7 88 33.1 7744 1095.61 2912.8
8 80 24.9 6400 620.01 1992.0 ----------------------
9 68 28.3 4624 800.89 1924.4 ----------------------
10 92 39.9 8464 1592.01 3670.8
11 69 31.8 4761 1011.24 2194.2 ----------------------
12 85 36.2 7225 1310.44 3077.0 ----------------------
13 93 39.9 8649 1528.81 3636.3
14 89 36.1 7921 1303.21 3212.9 ----------------------
15 91 31.5 8281 1560.25 3594.5 ----------------------
16 85 36.0 7225 1296.00 3060.0
17 90 37.9 8100 1346.41 3411.0 ----------------------
18 92 38.6 8464 1489.96 3551.2
----------------------
19 76 32.3 5776 1043.29 2454.8
20 88 34.6 7744 1197.16 3044.8 ----------------------
21 87 39.8 7569 1584.04 3462.6
----------------------
22 76 33.1 5776 1095.61 2515.6
23 92 38.8 8464 1505.44 3569.6 ----------------------
24 91 37.4 8281 1398.76 3403.4
----------------------
25 83 36.9 6889 1361.61 3062.7
2147 897.7 185597 32715.29 77749.2 ----------------------

7 QC Tools 37
 Notes Substituting the values in the formula, we get:
Σxy - (Σx) (Σy)
---------------------- n

√[ [[
(r) = Σx – (Σx)2 Σy2-(Σy)2 [
2
----------------------
n n
----------------------
= 77749.2 – 2147 X 899.7
---------------------- 25

----------------------

----------------------
=
√ [185597 – (2147)2 ] [32715.29 – (809.7)2 ]
25 25
= 483
---------------------- 639.15
= 0.7557
----------------------
6. Histogram
----------------------
What is a Histogram?
---------------------- Variation is the root cause of all problems. Dimensions vary. For example.
---------------------- ●● Production from a machine, done by the same worker, varies in dimensions.

---------------------- ●● Hardness of components heat-treated in the same batch has variations.

●● eight of flour/sugar/salt, filled in an automatic line, is not equal in all
W
---------------------- bags.
---------------------- ●● Quantity of Pepsi, hair oil, medicine etc. in all bottles is not equal.
●● itch diameter in threaded components, diameter/length/hole size is not
P
----------------------
identical in all pieces produced in a batch.
---------------------- ●● Time taken to commute to work varies from day to day.
---------------------- ●● ime of arrival of a train/postman/maid servant is not same on all days in
T
a month.
---------------------- ●● Delivery period in women is not equal. This example can be avoided.
---------------------- ●● Time taken to deliver a product by a supplier varies.

---------------------- ●● Income of employees in a factory varies from employee to employee.

●● ime taken by an operator to machine components varies from piece to
T
---------------------- piece.
---------------------- ●● And so on.
The variations in the characteristics must be tracked down, quantified,
----------------------
measured, controlled or minimized. Data on measurement must be represented
---------------------- in a manner that the quality of the product or the quality of the process can be
established (extent of variability can be measured.)
----------------------
The tool used for this purpose is called a Histogram
---------------------- ●● Histogram is a graphical display of the distribution of measurements,
A
---------------------- and reveals the amount of variations within the process.

38 Techniques for Operations Efficiency

●● The shape of a histogram can provide a clue, about the quality of the lot. Notes
●● I deally, an histogram will have a symmetrical shape, tapering away on
both sides from average (or target) value. ----------------------
Since a histogram is a diagrammatic presentation of the frequency ----------------------
distribution, of characteristics such as strength, hardness, diameter, thickness,
weight, etc (i.e. characteristics which are continuous variables), it is essential to ----------------------
understand the frequency distribution. ----------------------
A frequency distribution is an excellent device, to condense and present
a large mass of data in an elegant form. In fact, condensation of raw data is ----------------------
essential, to draw any inference from the data. ----------------------
Frequencies and values, tabulated in the frequency table, can be
----------------------
represented pictorially in the form of a bar graph. This frequency graph is called
a histogram. ----------------------
How to construct a histogram?
----------------------
Step 1 : Collect and tabulate sufficient data.
----------------------
Step 2 : Compute range (R) by subtracting the smallest value from the largest
value. ----------------------
R = largest value – smallest value ----------------------
Step 3 : Decide the number of cells (or classes) of the histogram.
----------------------
The table given below provides the guidelines
----------------------
Number of observations No. of cells (or classes)
K ----------------------
Below 50 5-7
----------------------
51 – 100 6 - 10
101 – 250 7 - 15 ----------------------
over 250 10 - 20
----------------------
The final histogram may not have exactly the same number of cells
chosen initially, because of rounding. ----------------------

Step 4 : Calculate the cell width (or class width). Cell width is obtained by dividing the ----------------------
range (R) by the number of cells (K)
----------------------
Range (R)
∴ cell width (W) =
No. of cells (K) ----------------------

The class width as computed above is rounded to a convenient number. ----------------------

Step 5 : Compute “cell boundaries” to define the start and end of each cell. The ----------------------
lower boundary of the first cell, is equal to or less than, the smallest
individual measurement in the data set. Other cell boundaries are ----------------------
obtained by adding “cell width (W)” to the previous boundary, and ----------------------
this process is continued until the upper boundary of the cell is greater
than the largest value in the data set. ----------------------

7 QC Tools 39
 Notes Step 6 : Compute mid-points of the cells. Mid-points are needed for the
computation of statistical measures such as mean, standard deviation
---------------------- etc, as the frequency of the cell is assumed to be concentrated at the
mid point of the cell.
----------------------
The mid-points are obtained by taking the mean of the lower and upper
---------------------- limit of the cell boundaries.

( )
---------------------- 1 lower boundary upper boundary
i.e. Mid point of a cell = +
---------------------- 2 of the cell of the cell
Step 7 : Scrutinize raw data and determine the cell into which each value falls.
---------------------- Mark a tally mark in the appropriate cell.
---------------------- Step 8 : Count the tally marks in each cell and record the count called frequency,
to the right of the tally marks.
----------------------
Step 9 : Construct a histogram by recording cell boundaries, in the ascending
---------------------- order along the horizontal axis and frequency of the cell, along the
vertical axis. A rectangle is drawn above each cell whose height is
----------------------
equal to the frequency of the cell.
---------------------- Step10: Analyse the histogram.
---------------------- The histogram is an important diagnostic tool. Analysis of the histogram
gives
----------------------

 A detailed picture of the variations.
----------------------
 An idea of what is happening to the process.

----------------------
 An identification as to whether or not the process is capable of
meeting the requirements.
----------------------
An example of a Histogram
----------------------
Out of the 2500 parts of a component, produced on an automat, 50 were
---------------------- measured for the diameter to the nearest of the hundredth of a mm. Individual
measurements are as follows
----------------------
12.01 12.02 12.05 12.07 12.03
---------------------- 12.07 12.04 12.02 12.00 12.03
---------------------- 12.04 12.03 12.09 12.06 12.05
---------------------- 12.04 12.04 12.03 12.04 12.06
12.10 12.05 12.04 12.08 12.06
----------------------
12.03 12.02 12.03 12.10 12.07
----------------------
12.01 12.03 12.05 12.02 12.07
---------------------- 12.02 12.04 12.04 12.04 12.02
---------------------- 12.03 12.06 12.05 12.04 12.08
---------------------- 12.06 12.05 12.06 12.06 12.08

40 Techniques for Operations Efficiency

 The frequency for the above data is shown below and the histogram is Notes
given in Fig. 2.19
----------------------
Cell Cell boundaries Mid Tally Frequency
point mark ----------------------
1 12.00 – 12.01 12.005 | 1 ----------------------
2 12.01 – 12.02 12.015 || 2
----------------------
3 12.02 – 12.03 12.025 |||| 5
----------------------
4 12.03 – 12.04 12.035 |||||||| 9
5 12.04 – 12.05 12.045 |||||||||| 12 ----------------------
6 12.05 – 12.06 12.055 |||||| 7 ----------------------
7 12.06 – 12.07 12.065 ||||| 6
----------------------
8 12.07 – 12.08 12.075 |||| 4
----------------------
9 12.08 – 12.09 12.085 || 2
10 12.09 – 12.10 12.095 || 2 ----------------------

----------------------
y
----------------------
12
----------------------
11

10 ----------------------
9
----------------------
Frequency

8
7 ----------------------
6
5 ----------------------
4
----------------------
3
2 ----------------------
1
----------------------
12.00 12.01 12.02 12.03 12.04 12.05 12.06 12.07 12.08 12.09 12.10

Cell boundry ----------------------

Fig. 2.19: Histogram ----------------------
Typical shape of histograms, and their interpretation:
----------------------
Some of the common shapes that histograms have are as under:
----------------------
(1) Symmetrical (or bell shaped)
A symmetrical histogram (or bell shaped) is one of the popular patterns. A ----------------------
symmetrical pattern (Fig.2.20) is found when the process is under control,
----------------------
and not influenced by any assignable causes. The variation exhibited by
the symmetrical pattern, however, can be small as well as large. ----------------------

7 QC Tools 41
 Notes

----------------------

----------------------

----------------------

----------------------

----------------------
---------------------- Fig. 2.20: Symmetrical Histogram
---------------------- (2) A symmetrical skewed positive

---------------------- A symmetrical histogram (Fig. 2.21) has more number of observations to

the right of the mean. Such a pattern generally results from measurements
---------------------- on characteristics like defects, accidents, ovality, taper, etc.

----------------------

----------------------

----------------------

----------------------

----------------------
Fig. 2.21: Asymmetrical Histogram
---------------------- (3) Double peaked
---------------------- A double peaked histogram (Fig. 2.22) has two normal/symmetrical
distributions, with two peaks in the middle. Such a pattern results from a
---------------------- mixture of two conditions i.e. for example, a mixture of supplies of two
suppliers, lots produced by two different machines, and the output of two
----------------------
operators.
----------------------

----------------------

----------------------

----------------------
Fig. 2.22: Double Peaked Histogram
----------------------
(4) Comb type
----------------------
The comb type pattern (Fig. 2.23) has alternative peaks, and it is usually
---------------------- caused due to errors in measurement and analysis.

----------------------

----------------------

42 Techniques for Operations Efficiency

 Notes

----------------------

----------------------

----------------------
Fig. 2.23: Comb Type Histogram
(5) Plateau type ----------------------

The plateau type pattern (Fig. 2.24) is flat without any distinct peak or ----------------------
tail. Such a pattern results, when there is more than one distribution at
----------------------
work, for example, output of several days mixed together in a lot.
----------------------

----------------------

----------------------

Fig. 2.24: Plateau type Histogram ----------------------

(6) Clifflike (or truncated) type ----------------------

A clifflike histogram (Fig. 2.25) has an asymmetrical shape, with a peak ----------------------
at the end and the frequency dropping abruptly to the left or right. Such
a pattern results when parts are inspected and those below lower/higher ----------------------
specification limits are removed.
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
Fig. 2.25: Truncated type Histogram
(7) Isolated peak type ----------------------
Isolated peak type pattern (Fig. 2.26) exhibits two distributions – one small ----------------------
and the other large. Such a pattern results when, data is from two different
process conditions, different lots with different process levels and averages. ----------------------

----------------------

----------------------

----------------------

----------------------
Fig. 2.26: Isolated Peak type Histogram ----------------------

7 QC Tools 43
 Notes (8) Edge peaked type
Edge peaked type pattern (Fig. 2.27) exhibits a normal distribution, with a
----------------------
large peak at one end, resulting from errors in data recording.
----------------------

----------------------

----------------------

----------------------

----------------------
Fig. 2.27: Edge-peak type Histogram
----------------------
Benefits of histograms
---------------------- Histograms are useful to:
---------------------- (i) measure the current pattern and extent of variations.
---------------------- (ii) assess current conformance to specifications and the scope for
improvements.
----------------------
(iii) determine whether or not, the process is in a state of control.
---------------------- (iv) know the kind of action required to bring the process under control (i.e. to
shift the mean or reduce variations or both)
----------------------
(v) establish the possible causes for the observed variations (for example,
---------------------- mixture of lots, measurement errors, variations in materials, etc.)
---------------------- (9) Graphs (Control Charts and Other Graphical Presentations)
---------------------- The graph is a pictorial representation of data, which is easy to understand
at a glance. Graphs convey a situation more effectively and clearly, than a
---------------------- summary of data or figures.
---------------------- Most of the experts, consider control charts as the 7th Quality Control
tool, but we have listed six key graphical tools under this head : Line graphs,
---------------------- Bar charts, Pie charts, Radar charts, Flow charts and Control charts.
---------------------- a) Line Graph:

---------------------- A line graph, also called as the run chart, is the display of the actual
performance, over a specified period of time. To obtain the line graph, time
---------------------- is plotted along the abscissa, (i.e. x-axis) and the figures of measurements
are plotted along the ordinate (y-axis). A line graph is a popular method of
---------------------- display, of characteristics such as rejection, rework, customer complaints,
---------------------- production, sales, inventory, accidents, absenteeism, etc. Fig. 2.28 shows
the trend of rejection in the vendors’ supplies.
----------------------

----------------------

----------------------

44 Techniques for Operations Efficiency

 y Notes

4 ----------------------

----------------------
% Rejection 3
----------------------
2
----------------------
1
----------------------

x ----------------------
April May June July Aug ----------------------
Fig. 2.28 ----------------------
b) Bar Chart :
----------------------
A bar graph is the display of data that facilitates comparison of quality.
Bars can be either horizontal or vertical. Each bar is of the same width ----------------------
and the interval (gap) between the bars is equal. Bars are usually arranged
----------------------
in the descending order, except in the case of time, place or order, when
they are arranged in a sequence. The bars start at zero. ----------------------
Data on a variety of characteristics such as production, sales, productivity, ----------------------
efficiency, accidents, absenteeism, employees’ strength, etc. can be
portrayed, with the help of bar graphs. Fig. 2.29 shows a firm’s sales over ----------------------
the last four years.
----------------------
Company’s Turnover
12 ----------------------
(in Rs. Crores) 11.0

10 ----------------------
8 ----------------------

6 4.2 ----------------------
4 ----------------------
2 ----------------------
0 x
99-2000 00-01 01-02 02-03 ----------------------

Year ----------------------
Fig. 2.29 ----------------------
c) Pie Chart : ----------------------
A pie chart, also called an angular diagram, is the graph of the percentage
breakdown of data. ----------------------

----------------------

7 QC Tools 45
 Notes Steps in the construction of a pie chart:
i. Express the value of each category or component group, as a
----------------------
percentage of the total of all categories or components or groups.
---------------------- ii. Calculate the degree of the angle formed by each category/
component/group as under:
----------------------

---------------------- Degree of particular Value of the group

category/component/group = X 360
---------------------- Total value

---------------------- iii. Draw a circle of a suitable diameter (say a diameter of 2”).
---------------------- iv. Segment the circle into angles calculated in step 2 with the help of
a protractor.
----------------------
v. Shade or colour different segments suitably to make a distinction
---------------------- between different categories/components/groups.
---------------------- vi. Enter the percentage of each category/component/group into the pie
chart.
----------------------
The table below shows the data on expenditure of an individual, and
---------------------- Fig.2.30 shows the pie chart.

---------------------- Item Expenditure Expenditure %Expenditure Degree

1 Food 4500 45% 1620
----------------------
2 Transport 1500 15% 540
----------------------
3 Education 2000 20% 720
---------------------- 4 Saving 1000 10% 360
---------------------- 5 House rent 500 5% 180

---------------------- 6 Entertainment 500 5% 180

10,000 100%
----------------------

----------------------
Entertainment

----------------------
(5%) t
Ho (5%
us )
er

Sav
---------------------- i
en

(10 ng Food
%)
(45%)
----------------------
Education
---------------------- (20%)

Transport
---------------------- (15%)

----------------------
Fig. 2.30: Pie Chart Showing % Expenditure of an Individual
----------------------

46 Techniques for Operations Efficiency

d) Radar Chart : Notes
A radar chart is a combination of a circle and a line graph, that is used to
----------------------
portray the relative strengths (or weaknesses) of the activities. A radar
chart is particularly useful, in showing changes from period to period in ----------------------
the items measured on a Likerit Scale (i.e. a five or seven-point scale that
measures strengths of an agreement or a disagreement). ----------------------
Steps in constructing a radar chart ----------------------
Step 1 : Brainstorm to enlist the characteristics that require to be evaluated.
----------------------
Step 2 : Draw a circle and divide it into as many “slices” as there are
characteristics ----------------------

The first slice beginning at 12 noon. ----------------------

Angle for each slice = 360/8 = 450 ----------------------
Step 3 : Draw a vertical line and calibrate it, equal to the number of levels/
----------------------
gradation required (number of levels say five)
Step 4 : Using a pair of compasses, draw concentric circles from each gradation ----------------------
using the ‘0’ point as the centre.
----------------------
Step 5 : Draw the other axis and write the title of the characteristics, on the
circumference of the circle. ----------------------
Step 6 : Evaluate each characteristic and mark the achievement on its ----------------------
corresponding axis
----------------------
Step 7 : Draw a line connecting all the points.
----------------------
Example of a radar chart
The table given below lists down the various elements/characteristics ----------------------
selected, to improve the performance of the Quality Assurance department.
----------------------
Each characteristic is evaluated on a scale of 1-5 (lowest to highest score).
The cross functional team has evaluated these characteristics as per the level ----------------------
indicated in the last column.
----------------------
Sr. No. Element Current level on a scale of 1-5
----------------------
1. Organisation architecture 3
2. Multiskilling 3 ----------------------
3. 5 – S House keeping 2 ----------------------
4. Muda elimination 2 ----------------------
5. Visual control 3
----------------------
6. Customer focus 3
7. Work standard 3 ----------------------

8. PPM (subcontract) 3 ----------------------

9. PPM (machine shop) 3 ----------------------

7 QC Tools 47
 Notes Sr. No. Element Current level on a scale of 1-5
---------------------- 10. Supplier’s self certification 3
11. Operator self inspection 2
----------------------
12. Calibration 3
----------------------
13. Cost containment 2
---------------------- 14. Inspection planning 3
---------------------- The Radar for the given data is given in Fig. 2.31
----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
Fig. 2.31: Radar Chart of Responsibility, Measurement & Analysis
----------------------
e) Flow Chart
---------------------- According to BIS (ISO – 9004: 1990), “A flow chart is a pictorial
representation of, the steps in a process useful for investigating
----------------------
opportunities, for improvement, by gaining a detailed understanding of
---------------------- how the process actually works.”

---------------------- The flow chart helps to

 provide clarity of the process without visiting the actual spot.
----------------------
 dissect a process for better understanding and analysis of the
---------------------- process.
----------------------  design a new process.
Symbols used in the construction of a flow chart
----------------------
Flow chart makes use of the following symbols, for the purpose mentioned
---------------------- against the symbol.
----------------------

----------------------

48 Techniques for Operations Efficiency

Symbol Description Explanation Notes

Elongated An elongated circle indicates the start ----------------------

circle and end points of a flow chart process. ----------------------
Box A box is a rectangle which contains ----------------------
description of the action involved.
----------------------
Diamond A diamond represents a decision ----------------------
node, from which a process branches
into two or more paths. Each node ----------------------
contains a question and the path to be
followed, depending on the answer to ----------------------
the question. ----------------------
Connector A connector is a circle with a letter, ----------------------
A used to connect one part of a flow chart
to another. ----------------------

Document A document represents the output of ----------------------

the hard copy.
----------------------
Arrows Arrows indicate the direction of the
----------------------
process flow.
----------------------
Data base The data base indicates electronically
stored information pertaining to the ----------------------
process.
----------------------
When to construct a flowchart?
----------------------
A flow chart is prepared
----------------------
(i) when defining the problem.
----------------------
(ii) when trying to know the activities involved in the process. ----------------------
(iii) when identifying the root causes. ----------------------
(iv) when trying to improve the process. ----------------------
(v) at the time of review of the process. ----------------------
How to construct a flow chart? ----------------------
The steps in the construction of a flow chart are as follows : ----------------------
Step 1 : Decide on the objective of the flow chart. ----------------------
Step 2 : Define the boundaries (i.e. identify the start and the end) of the process. ----------------------

7 QC Tools 49
 Notes Step 3 : Identify the steps in the process (i.e. activities, decisions, inputs and
outputs)
----------------------
Step 4 : Construct a draft of the flow chart for the process, using different
---------------------- symbols.
---------------------- Step 5 : Review the draft of the flow chart, with the people involved with the
---------------------- process.

---------------------- Step 6 : Effect changes in the flow chart based on the review.

---------------------- Step 7 : Mention the date of the flow chart for future reference and use it as
a record of how the process operates / is designed to operate, and to
---------------------- identify the opportunities for improvements.
----------------------
Fig. 2.32 shows an illustrative flow chart of the process, for the “year end balance
---------------------- confirmation by vendors.”

---------------------- Uses of flow charts

---------------------- Flowcharts are drawn to:

---------------------- (i) document a process by charting the tasks performed and the sequence in
which the tasks are performed.
----------------------
(ii) to enhance the employees’ understanding of the process, by indicating
----------------------
inter-relationships and dependencies within the process.
----------------------
(iii) identify deviations by observing the actual process (how is the process
---------------------- is performed) and comparing it with the documented process (how the
process should be performed).
----------------------
(iv) train new employees by providing a documented description of the tasks
----------------------
involved.
----------------------
(v) analyse the impact of changes, prior to the implementation of the proposed
---------------------- changes.
---------------------- (vi) effect improvements in the process by identifying non-value adding
---------------------- activities.

----------------------

----------------------

----------------------

----------------------

----------------------

50 Techniques for Operations Efficiency

 Notes

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
Fig. 2.32: Flow Chart of “year end balance confirmation by vendors” ----------------------

----------------------

7 QC Tools 51
 Notes f) Control Chart
A control chart is a graphical method of ascertaining/checking the
----------------------
stability of a process. The chart can be used to determine how much of the
---------------------- variability in the process, is due to chance/random causes, and how much
is due to assignable causes. Control charts were originally developed, by
----------------------
Walter Shewhart in 1920 and perfected by Edward Deming in 1950s.
----------------------
A control chart is simply a run chart with statistically determined Upper
---------------------- Control Limit (UCL) and Lower Control Limit (LCL), placed at a 3 sigma
distance on either side of the process average. Once the elements of the
----------------------
control chart– Centre Line (expected mean of the process), Upper Control
---------------------- Limit (UCL) and Lower Control Limit (LCL) - have been determined
and charted, the sample averages are plotted into the chart to determine
----------------------
whether these points fall within the limits or outside the limits. The points
---------------------- within the limits result from variations in the process, due to common
(or chance) causes, and they can only be corrected by changing the
----------------------
system. And the points outside the limits are the result of special causes,
---------------------- (or assignable causes) which can be identified and corrected. When the
special causes (or assignable causes) have been eliminated, the process
----------------------
is said to be under a state of control and variability, then it is expected
---------------------- to be at the lowest, and magnitude of such a variability is called process
capability.
----------------------
A control chart is constructed only when special causes have been
---------------------- eliminated, and variability is the result of common (or natural/chance)
---------------------- causes. With the statistical limits – upper and lower control limits –
computed and plotted on a graph called the control chart, it can be used as
---------------------- a monitoring tool.
---------------------- Control charts are of two types, (i) Control chart by variables and (ii)
---------------------- Control chart by attributes.
(i) “Control charts by variables” are prepared for characteristics, which
----------------------
are expressed in quantity units of measurements, such as length,
---------------------- weight, time etc. There is only one popular chart called Mean-
Range Chart (X-R chart), under the category of “control charts by
----------------------
variables”.
---------------------- (ii) “Control chart by attributes” are prepared for qualitative
---------------------- characteristics such as colour, cracks, leakage, burrs etc. There are
four different charts for attributes: p-chart (fraction defectives),
---------------------- np-chart (number of defectives), c-chart (number of defects) and
---------------------- u-chart (number of defects per unit).

----------------------

52 Techniques for Operations Efficiency

 Fig. 2.33 shows a control chart. Detailed treatment on these charts is given in Notes
chapter 8.
Process out ----------------------
of control
----------------------
+ 3σ UCL
----------------------

X ----------------------
CL
----------------------

----------------------
- 3σ LCL
----------------------

----------------------
Fig. 2.33: Control chart
----------------------
A) A technical group wants the technique, for doing an initial study of the
process, that not every team member is familiar with. They should use: ----------------------
a) Pareto Chart ----------------------
b) Cause and effect diagrams
----------------------
c) Flow chart and process maps
----------------------
d) Relationship matrix
B) A technical group wants the technique for determining and displaying ----------------------
priorities, based on the frequency of various defects types. They should ----------------------
use:
----------------------
a) Pareto Chart
b) Cause and effect diagrams ----------------------
c) Flow chart and process maps ----------------------
d) Relationship matrix ----------------------
C) A technical group wants a technique for improving the consistency of
assembly operations They should use: ----------------------

a) Pareto Chart ----------------------

b) Cause and effect diagrams ----------------------
c) Flow chart and process maps
----------------------
d) Relationship matrix
----------------------
e) Written and diagrammed work instructions
----------------------

----------------------

----------------------

7 QC Tools 53
 Notes D) A technical group wants a technique for displaying the connection between
the various customer needs and the various features of the product. They
---------------------- should use:
---------------------- a) Pareto Chart
b) Cause and effect diagrams
----------------------
c) Flow chart and process maps
----------------------
d) Relation ship matrix
---------------------- e) Written and diagrammed work instructions
---------------------- E) A technical group wants a technique for obtaining a large number of
possible reasons, for excess variation in a dimension. They should use:
----------------------
a) Pareto Chart
----------------------
b) Cause and effect diagrams
---------------------- c) Flow chart and process maps
---------------------- d) Relation ship matrix

---------------------- e) Written and diagrammed work instructions

---------------------- Check your Progress 2

----------------------
Fill in the blanks.
----------------------
1. Cause checklist enlists _______ of problems.
---------------------- 2. Pareto analysis is also called _______ rule.
---------------------- 3. Stratification is the process of _______ the data.

----------------------

---------------------- Activity 1
----------------------
1. List different types of check sheets and their respective uses.
---------------------- 2. Illustrate the strengths of Ishikawa diagram technique.
---------------------- 3. What is the purpose of scatter diagram?
---------------------- 4. List the types of histograms and their interpretations.

----------------------

----------------------

----------------------

----------------------

----------------------

54 Techniques for Operations Efficiency

 Summary Notes

●● Most organizations use quality tools for various purposes related to ----------------------
controlling and assuring quality. Although a good number of quality tools
----------------------
specific are available for certain domains, fields and practices, some of
the quality tools can be used across such domains. These quality tools are ----------------------
quite generic and can be applied to any condition.
----------------------
●● There are seven basic quality tools used in organizations. These tools can
provide much information about problems in the organization assisting to ----------------------
derive solutions for the same.
----------------------
●● There is a host of tools and techniques that can be used in association with
any process improvement initiative. These process improvement quality ----------------------
tools and techniques are normally very simple to use, and often form
part of a scheme to find root causes and gain ideas about how to address ----------------------
problems.
----------------------
●● These tools are often used within groups to help find methods of
understanding how a process works and then how to improve the process. ----------------------
●● Most of the common industrial problems can be systematically solved, by ----------------------
the application of the 7 Quality Control Tools comprising of Check Sheet,
Cause and Effect Diagram, Pareto’s Chart, Stratification, Histogram, ----------------------
Scatter Diagram and Graphs.
----------------------
Keywords ----------------------

●● Checksheet: A checksheet is a method that enables organised collection ----------------------

of data, and the grouping of data into categories.
----------------------
●● Graphs (Control charts and other graphical Presentations): A graph
is a pictorial representation of data which is easy to understand at a glance. ----------------------
Graphs convey a situation more effectively and clearly than a summary of
data or figures. ----------------------

●● A control chart is a graphical method of ascertaining/checking the stability ----------------------

of the process. The chart can be used to determine how much variability
in the process is due to chance/random causes, and how much is due to ----------------------
assignable causes. Control charts were originally developed by Walter ----------------------
Shewhart in 1920 and perfected by Edwards Deming in 1950s.
●● Histogram: A histogram is a graphical display of the distribution of ----------------------
measurements and reveals the amount of variations within the process. ----------------------
●● Ishikawa Diagram: An Ishikawa diagram is also called as the “cause and
effect” diagram or the fishbone diagram (due to its shape) – an effective ----------------------
tool for diagnosis to a problem – was developed by Dr. Kaoru Ishikawa, ----------------------
a professor of Tokyo University.
●● Pareto’s Analysis: It is a technique of identifying vital causes by ----------------------
arranging the data, according to the descending order of their frequency
----------------------
of occurrence.

7 QC Tools 55
 Notes ●● Stratification: Stratification is a process of segregating or regrouping the
data, on the basis of certain characteristics, (for example, machine wise,
---------------------- operatorwise, shift into sub-groupwise, supplierwise etc.) for identifying
the influencing factors (i.e. identifying contributory causes to the problems
---------------------- being tackled).
---------------------- ●● Scatter Diagram: A scatter diagram, also called as the ‘correlation
diagram’, is a graphical representation between two variables, (or between
---------------------- a cause and effect) or between two associated sets of data which occur in
---------------------- a pair (for example, x, y, one from each set).

---------------------- Self-Assessment Questions

----------------------
1. Enlist the seven QC tools used in problem solving. Explain any two tools
---------------------- with illustrative examples.
2. What is a “cause and effect” diagram? How is it useful in analysing a
----------------------
problem? How is it constructed?
---------------------- 3. What is a Pareto’s Diagram? How is it constructed? How is it used for the
purpose of problem solving?
----------------------
4. Construct a “cause and effect” diagram for any one of the problems listed
---------------------- below:
---------------------- i. Poor utilisation of machines
ii. Poor employer-employee relations
----------------------
iii. Customers’ dissatisfaction
---------------------- 5. What are the seven QC tools? How are they used in solving problems in
---------------------- an organisation?
6. (a) What is a Pie Chart? What does it represent? How is it made and
---------------------- used?
---------------------- (b) Draw a Pie Diagram to present the following components of a
suppliers’ quotation
----------------------
Material cost = 50%
---------------------- Labour Cost = 10%
---------------------- Overheads = 20%
Profit = 15%
---------------------- Others = 5%
---------------------- 7. What is the meaning of stratification? What are the advantages of
stratification? How is it done?
----------------------

----------------------

----------------------

----------------------

56 Techniques for Operations Efficiency

8. Write short notes on any three of the following. Notes
i. Scatter diagram
----------------------
ii. Radar chart
iii. Control charts ----------------------
iv. Check sheets
----------------------
9. The Cancer Journal for Clinicians, 1994, enlists the following leading
causes of death in the forum of percentages ----------------------
Causes Percent of total deaths ----------------------
1. Accidents 4.3%
2. Cancer 23.5% ----------------------
3. Cirrhosis of liver 1.2%
4. Cerebrovascular diseases 6.7% ----------------------
5. Chronic Obstructive lung diseases 4.0% ----------------------
6. Diabetes 2.2%
7. Heart diseases 33.5% ----------------------
8. HIV infection 1.2%
9. Homicide 1.2% ----------------------
10 Pneumonia & Influenza 2.7%
----------------------
11. Suicide 1.4%
100% ----------------------
Conduct a Pareto’s analysis and draw a Pareto’s chart, for the above data.
----------------------
10. Kamani Engineering Works had the following idle hours in their different
sections during the month of September 2003. ----------------------
Sr. No Section Idle time (hours) ----------------------
1. Turning section 16
----------------------
2. Milling (conventional) 24
----------------------
3. Milling (retrofitted) 6
4. Drilling 49 ----------------------
5. Lathes 80 ----------------------
6. Boring (conventional) 29 ----------------------
7. Boring (SPM) 20
----------------------
8. Slotting 0
TOTAL 224 ----------------------

Construct a Pareto’s Chart using the given data. ----------------------

----------------------

----------------------

----------------------

----------------------

7 QC Tools 57
 Notes 11. A batch of 54 housings, machined in house at Nitneel Industries were
subjected to cent percent inspection, on receipt, for bore whose design
---------------------- specification is 88± 0.10. Individual measurements are given below :
---------------------- 87.95, 88.22, 87.99, 88.08, 88.14, 88.04, 88.12, 88.13, 88.09, 88.12, 88.20,
88.15, 88.01, 88.07, 88.10, 88.10, 88.09, 88.12, 88.20, 88.19, 88.05, 88.18,
----------------------
88.21, 88.11, 88.16, 88.13, 88.16, 88.12, 88.17, 88.13, 88.12, 88.13, 88.11,
----------------------
88.11, 88.15, 88.08, 88.03, 88.15, 88.12, 88.17, 88.12, 88.13, 88.21, 88.20,
---------------------- 88.13, 88.11, 88.17, 88.19, 87.95, 88.12, 88.16, 88.15, 88.17, 88.13
---------------------- (a) Draw a Histogram of the process.

---------------------- (b) Comment on the variations and the process centering.

12. The table below gives the breakup of inventory on 31st March, 2003, of
---------------------- M/s. Innova Valves, rounded off to the nearest digit.
---------------------- Sr. No. Category Amount (Rs. in lakhs)
---------------------- 1. Raw material and components 157
2. Work-in-process (machine shop) 7
---------------------- 3. Work-in-process (assembly) 18
4. Finish goods @ cost 17
----------------------
5. Vendor stock 42
---------------------- 6. Cutting tools 11
7. Goods-in-transit (prepaid) 2
---------------------- 8. Goods under inspection 1
TOTAL 255
----------------------
Construct a Pie Chart.
---------------------- 13. Monthwise inventory (April to March) of M/s. Suprahi industry for the
year 2002-2003 is given below:
----------------------
Month Inventory (Rs. in lakhs)
----------------------
April 155.02
---------------------- May 158.55
---------------------- June 157.90
July 154.74
---------------------- August 151.58
---------------------- September 158.90
October 161.31
---------------------- November 161.75
---------------------- December 167.36
January 161.45
---------------------- February 167.17
---------------------- March 154.45

---------------------- Show its movement by constructing a Run Chart.

58 Techniques for Operations Efficiency

14. Monthwise (April to December) consumption of cutting tool of M/s. Notes
Niitneel Works is given below:
----------------------
Month Consumption (Rs.)
April 82,933 ----------------------

May 1,00,854 ----------------------

June 1,01,347 ----------------------
July 1,05,319
----------------------
August 98,882
----------------------
September 95,499
October 95,317 ----------------------
November 1,06,513 ----------------------
Construct a Run Chart of the actual tool consumption with a budgeted ----------------------
figure of Rs. 1,00,000.
----------------------
Answers to Check your Progress ----------------------
Check your progress 1 ----------------------
1. True
----------------------
2. True
----------------------
3. True
Check your Progress 2 ----------------------

Fill in the blanks. ----------------------

1. Cause checklist enlists causes of problems. ----------------------
2. Pareto analysis is also called as 80/20 rule.
----------------------
3. Stratification is the process of collecting and analyzing the data.
----------------------
Suggested Reading ----------------------

1. Montgomery, Douglas (2005). Introduction to Statistical Quality Control. ----------------------

Hoboken, New Jersey: John Wiley & Sons, Inc. p. 148. ISBN 978-0-471-
----------------------
65631-9. OCLC 56729567.
2. Ishikawa, Kaoru (1985), What Is Total Quality Control? The Japanese ----------------------
Way (1 ed.), Englewood Cliffs, New Jersey: Prentice-Hall, p. 198, ISBN
----------------------
978-0-13-952433-2, OCLC 11467749, From my past experience as much
as ninetey-five percent of all problems within a company can be solved ----------------------
by means of these tools
----------------------

----------------------

7 QC Tools 59
 Notes

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

60 Techniques for Operations Efficiency

Quality Circles
UNIT

3
Structure:

3.1 Introduction
3.2 Quality Circles
3.3 Brief History of Quality Circles
3.4 Basic Principles underlying Quality Circles
3.5 Areas covered by Quality Circles and Benefits of Quality Circles
3.6 Organisation for Quality Circles
3.7 Operation of Quality Circles
3.8 Essentials for Successful launching and working of Quality Circles
3.9 Quality Circles compared with Others
3.10 Problem Solving Techniques used by Quality Circles
3.11 Limitation of Quality Circles
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

Quality Circles 61
 Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
●● State the importance of quality circles.
---------------------- ●● List the ways to implement a quality circle.
---------------------- ●● Name helpful tools for implementing a quality circle .
---------------------- ●● State the benefits and limitation of a quality circle.

----------------------
3.1 INTRODUCTION
----------------------
We need quality in each and every sphere of life. Good quality of products
---------------------- has become the key success factor to win customer satisfaction. Now-a-days,
companies are poised to achieve new, higher, quality norms/standards, to
---------------------- maintain their position in an era of cut-throat competition. We need new tools/
techniques to achieve higher/new quality standards.
----------------------
A quality circle is a very important tool like other quality improvement
---------------------- tools. The implementation of a quality circle results in several benefits. One key
---------------------- benefit is, that the quality circle harvests the team spirit across the organisation
as well as makes a task simpler to achieve.
---------------------- So let us know more details about the quality circle.
---------------------- 3.2 QUALITY CIRCLES
----------------------
A quality circle is basically a small group of employees – who volunteer
---------------------- to meet regularly, to undertake work related projects – quality, productivity,
safety, efficiency, cost, working conditions, etc.,– and evolve recommendations
---------------------- to improve effectiveness in the selected functional area.
---------------------- The size of a quality circle is most important. Too big a size (too many
members) may not provide enough time for each member to effectively
---------------------- participate, and too small a size (too few members) may make a circle dormant.
---------------------- An ideal size of the circle is eight to ten members, but in any case, it should not
exceed fifteen members.
---------------------- More than one circle may be formed if too many employees in a particular
---------------------- work area are willing to participate in the quality circle activities. For example,
if there are 25 clerks in the organisation doing identical jobs, 2 to 3 circles may
---------------------- be formed.

---------------------- Participation in the circle activities is absolutely voluntary. Members

are not selected/nominated. They are not elected or rotated either. Employees,
---------------------- however, are encouraged to form circles.
---------------------- Ideally, members of a particular circle should be from the same area, or
those who do similar work, so that the problems that they select/analyse/discuss
---------------------- will be familiar to all of them.

62 Techniques for Operations Efficiency

3.3 BRIEF HISTORY OF QUALITY CIRCLES Notes

Japanese Union of Scientists and Engineers (JUSE) was established ----------------------

in 1946, after World War II, in which Japanese industries were completely ----------------------
destroyed. JUSE worked for the growth and development of quality, and in
1950 it invited Dr. Edward Deming, a renowned American expert on quality, ----------------------
to visit Japan. Dr. Deming delivered a series of lectures on various aspects of
quality control, to the top management of several companies in Japan. ----------------------
Dr. J.M. Juran, another expert on quality control, was invited by JUSE in ----------------------
1954. He used to hold top and middle management seminars, to propagate the
latest concepts of quality control. ----------------------
In the following years, JUSE organised a number of training programmes ----------------------
to bring quality control concepts, to the middle rungs of the companies
management ladder. And to involve those at the bottom, JUSE under the ----------------------
stewardship of Prof. Kaoishikawa, broached on initiating the concept of quality ----------------------
circles. The first quality circle was registered in May 1962 at the quality control
circle headquarter, of JUSE in Tokyo. Encouraged by the saving from the first ----------------------
quality circle, JUSE devoted itself wholeheartedly to the development of the
quality circle movement in Japan. According to estimates, Japan today has over ----------------------
1.2 million quality circles, which has a work force of 12.4 millions. ----------------------
These circles have lifted war-ravaged Japan to its present dominant
position, and has even endangered the very existence of the American ----------------------
industry. A quality circle in Japan on the average saves $ 56,000. All this was ----------------------
achieved without any monetary incentives. Around 25% of the profitability of
the Japanese industries, is attributed to the quality circles. Nissan Motor, for ----------------------
example, works with 57,000 employees, has 4,200 quality circles, which have
helped the company to double its productivity in ten years. ----------------------

Quality circles, which have made Japan a leader among the developed ----------------------
countries, have taken the world by surprise. Now almost every country in the
world has quality circles. There are over 40,000 quality circles in Korea alone. ----------------------
Quality circles have also found wider acceptance in Britain, France, Brazil, ----------------------
Canada, Singapore, Taiwan, Malaysia, Holland, Indonesia, Norway and India.
Quality circles in India were first launched at the Hyderabad unit of BHEL in ----------------------
1980, which has around 100 quality circles in its various branches throughout India ----------------------
now. Quality Circle Forum of India was formed in 1982 to propagate the concept.
The concept of quality circles is fast gaining momentum, and quite a few ----------------------
firms in the private and public sector – Kirloskars, Alwyin’s, Tata’s, Hindustan ----------------------
Antibiotics, Bharat Forge, Balaji Auto, Vulcan Laval, Rourkela Steel Plant etc,
- have instituted quality circles. ----------------------

----------------------
3.4 BASIC PRINCIPLES UNDERLYING QUALITY CIRCLES
----------------------
Basic principles underlying quality circles are:
1. “Every job is capable of being improved.” ----------------------

Quality Circles 63
 Notes Improvement is a continuous phenomenon. Every job/work situation,
provides enough opportunities for further and further improvements.
---------------------- 2. “People do not resist change, they resist being externally changed.”
---------------------- Since quality circles ensure that the improvements are made by those who
perform the jobs, there is no resistance to change.
----------------------
3. “Every employee is capable of attaining excellence in his work, and has
---------------------- the basic ability to improve his job.”
Quality circles believe in people and their capabilities. All employees
----------------------
have the potential and ability to improve their jobs.
---------------------- 4. “People like to improve their jobs and derive satisfaction out of it,
provided that they are involved through human touch, recognition and
----------------------
reward for work.” Employees spend a major portion of their life time at
---------------------- their work place. It is but natural for them to develop affection for their
work, provided they get the feeling that, the work that they do has some
---------------------- real meaning, and that the management is genuinely interested in them.
---------------------- 5. “People like to participate in groups and crave for attention”. Behavioural
scientists have concluded that people like to form groups, participate
---------------------- in groups, and seek to obtain the attention of others. If this need is not
satisfied, people tend to obtain it by absenteeism, slackening, grumbling,
----------------------
trouble making etc. Quality circles provide workman a natural, rather than
---------------------- accidental outlet to satisfy their urge for participation and recognition.
6. “Productivity improves not by the participation of a limited number of
----------------------
people, capable people, vociferous people for prominent starts, but by the
---------------------- voluntary participation of everyone.”
The Japanese do not follow Taylor’s concept of division of work (i.e.
---------------------- planning and thinking to be done by engineers and the execution to be
---------------------- done by the foremen and workers). Instead, they prefer to leave a good
deal of planning and creativity to be carried out by the labour/production
---------------------- force.
---------------------- The Japanese also simply believe that each employee must use his/her
mind/wisdom in his/her work. A workshop is not simply a place of mere
---------------------- physical labour, but should be seen as a place where one’s creativity can
be applied.
----------------------
7. “A man who does a job, knows best about the problems of the job”.
----------------------
A workman who does his job, day in and day out, knows everything
---------------------- about the job, at least the difficulties involved. Quality circles provide
an opportunity to the workman to find out difficulties and suggest
----------------------
improvements.
---------------------- 8. “Quality results from the establishment of a state of control, to ensure
---------------------- a stable controlled operation, followed by positive measures, to stop
recurring problems and to anticipate new ones.”
----------------------

64 Techniques for Operations Efficiency

 One cannot and should not go on solving problems repeatedly. Problems Notes
must be analysed, root causes should be found out, and their recurrence
avoided, by eliminating the contributory causes. ----------------------

9. “There can’t be a greater pleasure, than the pleasure of discovering a new ----------------------
aspect of one’s self and a greater motivation, than finding an opportunity
----------------------
to develop one’s potential.”
----------------------
10. “Management is not there to coerce and control men, but to foster
enthusiasm for work, to assist in individual development, to inculcate the ----------------------
spirit of co-operation, and harness human energy for the growth of the
----------------------
organisation.”
In the words of P.L. Jain, “Quality circle programme in essence, signifies ----------------------
full utilization of the experience, education and creativity of the work ----------------------
force to help in work planning and improvement in product quality as also
to improve the morale and foster good human relations”. ----------------------
----------------------
3.5 AREAS COVERED BY QUALITY CIRCLES AND
BENEFITS OF QUALITY CIRCLES ----------------------

Quality circles programmes are not confined to the quality of the product, ----------------------
but they aim at a total revolution in the working of the organisation at the shop ----------------------
floor level.
According to a survey of the Japanese circles, “Circles tend to be most ----------------------
common in production with maintenance, procurement, administration and ----------------------
engineering, respectively coming next.” Another survey to analyse the themes
covered by quality circles revealed that 45% of the projects dealt with quality ----------------------
improvements, 40% with productivity improvement in tooling, safety and
housekeeping, environmental protection, employees’ health, etc. ----------------------

Someone once humorously but rightly said that, “there could be a quality ----------------------
circle within the quality circles to decide, the functional area and the topic
----------------------
within that area, to be covered by a circle.”
Quality circles benefit the employer as well as the employees. ----------------------
1. Benefits to the organisation ----------------------
Quality circles: ----------------------
a) Improve : employer-employees relationships.
----------------------
b) Develop : participative culture and team spirit
c) Reduce : work-related errors. ----------------------
d) Increase : productivity with cost reduction. ----------------------
e) Improve : quality of goods/services produced by the firm.
----------------------
f) Leads : to better efficiency in the organisation.
----------------------
g) Catalyse : attitudinal changes.

Quality Circles 65
 Notes h) Create : consciousness regarding quality, cost, safety, housekeeping,
etc.
----------------------
i) Save : certain amount of managerial time, previously spent to
---------------------- solve problems, which will be solved by the quality circles.

---------------------- 2. Benefits to the employee

Quality circles:
----------------------
a) Provide : job interest which is absent in routine work.
----------------------
b) Give : a sense of participation
---------------------- c) Develop : latent problem solving capabilities of the employees.
---------------------- d) Improve : individual’s communication skills and their abilities
---------------------- e) Advance : employee’s career and personal development
(develop competence in creating changes and prepare
---------------------- employees, better, for supervisory positions).
---------------------- f) Inculcate : team spirit
---------------------- g) Provide : improved work environment and methods

---------------------- h) Improve : morale on the shop floor

i) Involve : workers in the decision making process
----------------------
j) Remove : frustration
----------------------
k) Encourage : employees to get involved with the common goals of the
---------------------- company.
----------------------
Check your Progress 1
----------------------

---------------------- State True or False.

1. One requires voluntarily working employees to participate in Quality
----------------------
Circles.
---------------------- 2. Quality Circles is not a very effective method of problem solving.
----------------------

----------------------
Activity 1
----------------------
1. What is the importance of Quality Circles?
----------------------
2. Who is benefited by Quality Circles and how?
----------------------

----------------------

----------------------

66 Techniques for Operations Efficiency

 3.6 ORGANISATION FOR QUALITY CIRCLES Notes

The organisation for circles consist of: ----------------------

1. Steering Committee ----------------------

A steering committee is the apex body at the highest level of the plant, ----------------------
which is made up of heads of the major departments like Production,
Finance, Materials, Marketing, Engineering, Quality Assurance, etc, ----------------------
and is headed by the Chief Executive Officer (CEO) of the plant. The ----------------------
Committee meets periodically (say once in two months) and it-
a) evolves policies and guidelines for the formation, functioning and ----------------------
growth of quality circles. ----------------------
b) appoints facilitators and a co-ordinator.
----------------------
c) identifies the overall quality and productivity problems in the
organisation. ----------------------
d) authorises a budget for quality circle activities. ----------------------
e) takes part in the top management presentations and annual get-
----------------------
togethers.
f) demonstrates, in a visible manner, management commitment and ----------------------
support.
----------------------
g) reviews performance of the quality circles regularly, on the basis of
reports from the co-ordinator and facilitators. ----------------------
h) evolves guidelines for recognizing the good performance of quality ----------------------
circles.
----------------------
The head of the Quality Assurance department takes the responsibility of
convening the meeting of the Committee. ----------------------
2. Facilitators
----------------------
The facilitators are selected by the steering committee, to supervise the
activities of two, three or more circles. A facilitator is usually a senior ----------------------
officer nominated by the management and is a person who is in charge of
----------------------
a shop or department. The facilitator acts as a teacher, promoter, catalyst,
and a guide to the quality circles. The responsibilities of the facilitators ----------------------
include:
----------------------
a) to co-ordinate the activities of quality circles under their supervision
and guidance. ----------------------
b) to train QC leaders and help in training QC members. ----------------------
c) to interface between circles.
----------------------
d) to render support and assistance to the circles under his/her control.
e) to encourage employees to form more QCs. ----------------------

f) to demonstrate support of the management. ----------------------

Quality Circles 67
 Notes 3. Leaders
A leader acts as an integral part of a quality circle. The leaders should
----------------------
have a sound knowledge of statistical methods and approaches, to
---------------------- be used to identify and analyse problems. The leaders also, like other
regular members, should participate in the discussions. The leader should
---------------------- preferably be a first line supervisor but it is not essential. Supervisors
taking over the task of leaders, ensure some leadership quality inputs
----------------------
which are already available.
---------------------- Responsibilities of the leader are:
---------------------- a) to conduct training of members of the circle with the help of the
facilitator and other agencies.
----------------------
b) to prepare an agenda for the meetings.
---------------------- c) to organise and conduct meetings.
---------------------- d) to evolve action plans and milestone charts, to compare actual
progress with targets, by periodic reviews and take mid-course
---------------------- correction.
---------------------- e) to assign roles to members and to guide them, for effective
contribution towards the achievement of goals.
----------------------
f) to ensure participation and involvement of all the members, in the
---------------------- activities of the circle.
---------------------- g) to ensure discipline and decorum in the quality circle meetings.

---------------------- h) to maintain records and liaison with other agencies, to obtain help
in solving the problem.
---------------------- i) to catalyse attitudinal changes in his own and other related areas.
---------------------- j) to make management presentations.
---------------------- k) to take a sincere interest individually, by active involvement in the
progress of the quality circle movement.
----------------------
l) to endeavour to promote quality circles as a way of life in the
---------------------- organisation.

---------------------- 4. Members
Members form the hard core of the quality circles. Members are selected
---------------------- on a “purely voluntarily basis”, and are from the same or similar functional
---------------------- area(s). The group should basically be small, between 8 to 10 members.
The members should have an adequate knowledge and experience in
---------------------- the concerned field, and should have the ability to express it clearly and
freely.
----------------------
5. Co-ordinator
----------------------
In a large manufacturing organisation, some agency–usually Quality
---------------------- Assurance–is required to co-ordinate the activities of the quality circles.

68 Techniques for Operations Efficiency

 The responsibility of the coordinating department includes : Notes
a) rendering assistance as requested by circles.
----------------------
b) disseminating literature relating to circle activities elsewhere.
----------------------
c) organising training programmes.
d) publishing a newsletter to communicate circle activities. ----------------------

e) providing circles with the necessary facilities for the meeting. ----------------------
f) organising social get–togethers for circle members and senior ----------------------
executives.
----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
Fig. 3.1: Organisation for Quality Circles
----------------------
3.7 OPERATION OF QUALITY CIRCLES
----------------------
The operations of the quality circle consists of the following steps:
----------------------
1. Formation of the circle
----------------------
a) Employees of the organisation are briefed about the concept of the
quality circle, and are invited voluntarily to form quality circles in ----------------------
their respective areas.
----------------------
b) Each circle is a small group–between 8 to 10 members–who join
the group on a voluntary basis. ----------------------
c) Each circle elects a leader for piloting the discussions and ----------------------
deliberations.
Members are drawn from the same work area of those who do the same ----------------------
work or similar work, so that the problems that they identify are familiar ----------------------
to all members. This is essential for effective participation.
----------------------

Quality Circles 69
 Notes 2. Training of members
Members are imparted necessary training in the simple tools and techniques
----------------------
– Pareto’s analysis, Ishikawa diagram, Control chart, Brain storming, etc.
---------------------- – for solving quality problems. They are also taught simple statistical
techniques, like Data collection, Histograms, Frequency distribution, etc.
----------------------
Leaders are given training into the process of selection of the problem,
---------------------- breaking the problem into its “vital few and trivial many” elements,
drawing up of the “cause and effect” diagram, also called the fish-bone
---------------------- diagram or Ishikawa diagram, developing and investigating alternatives,
preparing reports for the management, making presentations, etc.
----------------------
3. Problems identification and problem selection
----------------------
A problem may be identified in four ways, namely:
---------------------- a) By the members of the circle.
---------------------- b) By non-members of the circle.
---------------------- c) By the management.
d) By an outside agency.
----------------------
More than one problem may be suggested/posed to the circle, thereby
---------------------- enabling the members to select one out of these by a majority consensus.
Problem selection, however, is the prerogative of the circle.
----------------------
Themes selected by the circle, however, should be within the reach of
---------------------- the quality circles. Non-conformance by the circle when the theme is
---------------------- extremely technical, is likely to cause frustration among the members,
and a setback to the quality circle programme.
---------------------- 4. Problem analysis
---------------------- Analysis of the problem is entirely the responsibility of the members.
The deliberations of the quality circles are usually held after office
----------------------
hours. Brainstorming sessions are usually organised to analyse various
---------------------- aspects of the problem. Members first develop an action plan/schedule,
which is broken up into milestones or responsibilities, assigned to the
---------------------- various members. The services of outside specialists (such as the staff of
the industrial, engineering or planning departments) are available to the
----------------------
circle, in the form of guidance in solving problems. Guidance from senior
---------------------- staff is provided in the specialist’s areas.
Meetings of the circles may be held once in a week, preferably on a fixed
----------------------
day, each meeting being of around one hour in duration. The problems
---------------------- of getting circle members, working in different shifts, to attend the circle
meeting can be resolved, by synchronising the meeting time, with the
---------------------- beginning of the second shift. Such an arrangement enables the members
working in the second shift, to attend the meeting during working hours,
----------------------
and members of the first shift to stay over for an hour or so, to participate
---------------------- in the meeting.

70 Techniques for Operations Efficiency

5. Recommendations Notes
The Pareto’s analysis- cause and effect analysis – is employed to arrive
----------------------
at the best solution. Trial runs are made to test the technical as well as the
economic feasibility of the proposed solution. ----------------------
6. Management presentation
----------------------
The solution that is found technically and economically viable, is
communicated through a formal presentation to the management, during ----------------------
which charts and graphs are used by the members. The presentation of the
----------------------
quality circle is usually made by the supervisor, to whom the circle leader
reports. The higher level executives may be present as observers, but the ----------------------
decision is generally taken by the normal management hierarchy.
----------------------
7. Review and decision by the management
The acceptance of the recommendation of a quality circle is frequently ----------------------
given in the meeting in which the proposal is presented. This is because ----------------------
the manager usually knows long before the presentation, the problem (s)
on which the team has been working, and what its recommendations are ----------------------
going to be. The only thing which the management needs to look into, is
to ensure that the solution: ----------------------

a) is cost effective ----------------------

b) does not affect other parts of the organisation. ----------------------
8. Implementation
----------------------
The solution evolved by the circle is implemented by the members
themselves. ----------------------
9. Monitoring the effect ----------------------
The responsibility of the circle does not end with the implementation of the ----------------------
proposed solution. Close monitoring, specially for a brief initial period,
is essential to know the effects of the change. The problems encountered, ----------------------
if any, during the implementation is analysed again and rectified in the
initial solution . ----------------------

----------------------
3.8 ESSENTIALS FOR THE SUCCESSFUL LAUNCHING
AND WORKING OF QUALITY CIRCLES ----------------------

----------------------
Following are the essential elements for the successful launching and
working of quality circles: ----------------------
●● Total commitment from the top management.
----------------------
●● Whole-hearted co-operation from the middle management.
----------------------
●● Training of managerial and supervisory staff.
●● Voluntary participation. ----------------------
●● Faith in participative management. ----------------------

Quality Circles 71
 Notes ●● Genuine desire to develop people management.
●● Encouragement to team work.
----------------------
●● Intensive training of members, leaders and facilitators.
---------------------- ●● Recognition of good work.
---------------------- ●● Encouragement to creativity.
●● Solving the problems by analysing different causes.
----------------------
●● Sufficient infrastructure to manage quality circle activities.
----------------------

----------------------
3.9 QUALITY CIRCLES COMPARED WITH OTHERS

---------------------- Quality circles versus suggestion schemes

---------------------- Suggestion schemes Quality circles

1. Suggestions are made by 1. Suggestions are made by a group of
---------------------- individuals employees
---------------------- 2. Suggestions may not concern the 2. Usually, suggestions concern
work area of the person making members’ work related problems
---------------------- the suggestion.
---------------------- 3. Suggestions may not be based on a 3. Suggestions are based on a
systematic analysis of the problem. systematic analysis of the problem.
----------------------
4. Person giving the suggestion is not 4. Circle is responsible for
---------------------- responsible for its implementation the implementation of their
suggestions.
----------------------
5. Individuals making the suggestions 5. The entire circle gets recognition
---------------------- are properly rewarded. (i.e. recognition to the members
come through the circle.)
----------------------
Quality circles versus task forces
----------------------
Task force Quality circles
----------------------
1. Task force is constituted by 1. Quality circles are formed
---------------------- the management for a specific voluntarily by members, irrespective
problem. of any problem.
----------------------
2. Task force members are drawn 2. Circle consists of employees,
---------------------- from different departments/areas preferably from the same work
and levels. area doing similar work.
----------------------
3. Task force usually consists of 3. Quality circle consists of
---------------------- experts relating to the problem employees of the lower levels, who
area. are not usually considered capable
---------------------- of contributing their brainpower to
---------------------- the organisation.

----------------------

72 Techniques for Operations Efficiency

 Task force Quality circles Notes
4. Problem is assigned by the 4. Problem is chosen by the members. ----------------------
management.
----------------------
5. Task force is constituted for a 5. There is no time limit for a quality
specific project /duration, and circle. It lasts as long as the ----------------------
comes to an end as soon as the members wish. On the completion
project is over. of a problem, the Circle takes up ----------------------
another problem.
----------------------

3.10 PROBLEM SOLVING TECHNIQUES USED BY ----------------------

QUALITY CIRCLES ----------------------
Members of the quality circles meet to analyse a problem related to a ----------------------
particular work area. They analyse various aspects of the problem and come out
with the solutions to the problem. Though different problems require different ----------------------
treatment, yet there are some common tools and techniques, which assist the
members to analyse the problem, easily, clearly and effectively. ----------------------

Each quality circle is trained, mainly off the job, by a combination of the ----------------------
three training methods.
----------------------
1. Training in QC tools. This training is of 10 to 20 hours duration, in
specific techniques, mainly ----------------------
a) Check sheet to systematically collect data. ----------------------
b) Pareto’s Analysis to find the “vital few” causes. ----------------------
c) Cause and Effect Diagram to identify root cause(s).
----------------------
d) Histogram to measure and analyse variations.
----------------------
e) Graphs to present data in a pictorial form which becomes easy to
understand. The six key graphical tools are: line graphs, bar charts, ----------------------
pie charts, radar charts, flow charts and control charts.
----------------------
f) Control charts to provide a visual method of ascertaining/checking
the stability of the process. ----------------------
g) Stratification to segregate or regroup data, for identifying the
influencing factors/contributory causes. ----------------------

2. Brainstorming and NGT techniques, to evolve creative ideas/solutions ----------------------

to the problems.
----------------------
3. Quality Control techniques and Industrial Engineering techniques,
and other means to solve the problems. ----------------------
4. Discussion on cases, worked out in other companies ----------------------
5. Discussions on internal quality problems, solved and unsolved. ----------------------

----------------------

Quality Circles 73
 Notes
Check your Progress 2
----------------------

---------------------- Multiple Choice Single Response.

1. Quality circle requires strong support from
----------------------
i. Management
----------------------
ii. Workers
---------------------- iii. Suppliers
---------------------- 2. The members must be _______ for case studies.
---------------------- i. Trained
ii. Informed
----------------------
iii. Notified
----------------------
----------------------
Activity 2
----------------------

---------------------- 1. What is an organization for Quality Circles?

2. Describe the steps in the operation of Quality Circles.
----------------------

----------------------
3.11 LIMITATION OF QUALITY CIRCLES
----------------------
The performance of quality circles in India has not really been a grand
---------------------- success. Quality circles have the following limitations:
---------------------- 1. Since quality circles are basically directed towards involvement of work,
the problems to be handled by the workers must be simple in nature (i.e.
---------------------- day to day problems/routine problems/micro level problems). Employees
---------------------- at the grass root levels, due to the of limitations of education and training,
cannot be expected to solve complex technology related problems, or
---------------------- macro problems affecting the entire organisation.
---------------------- 2. Unions in India are found to be not too enthusiastic about the quality
circles. Unions in fact have shown reluctance to get wholeheartedly
---------------------- involved in the quality circle activities. Mostly unions are of the opinion
that, quality circles are simply a gimmick, on part of the management, to
---------------------- increase productivity without giving away anything.
---------------------- 3. Managements are also not open with their unions. Managements fear that
the unions are sure to put hurdles in the way of introducing quality circles.
----------------------
Therefore, managements try to involve the unions to the minimum, as far
---------------------- as possible, and thereby drawing virtually no co-operation or negative co-
operation from the latter.
----------------------

74 Techniques for Operations Efficiency

4. Supervisors and lower level managers are generally found to exhibit Notes
some interest initially, (i.e. while introducing circles) which sooner or
later develops into an attitude of indifference. Authorities on the subject ----------------------
are of the opinion that this happens due to the psychological effect of
showering heaps of praise on QCs by the management, which at times is ----------------------
at the cost of first line managers.
Supervisors and first line supervisors feel that, simple suggestions made ----------------------
by QCs will show them very poorly in the eyes of the management.
----------------------
Supervisors also feel that QCs, cause erosion of their authority/ control
over the workmen. They even secretly wish that the QCs should fail. ----------------------
Resentment among the line management also builds up, when senior
managers approach a leader of a circle directly to get first hand information. ----------------------
Some senior managers while receiving a presentation from a QC, which
has come out with a solution for a long outstanding problem, ask their ----------------------
supervisors “why did you not think of the solution yourself earlier.”
Supervisors are not only hurt by these remarks, but also develop negative ----------------------
attitudes towards the QCs. “Why should I work for the success of the
----------------------
quality circles, if I am going to be blamed for earlier lapses.”
5. Level of education among the workers in many an organisation in India is ----------------------
very low. They may not understand the “seven tools of problem solving”
– graphs, charts, data analysis, Pareto principle, Ishikawa (cause and ----------------------
effect/fish-bone) diagram, regression analysis and scatter diagram. These
tools have a universal application and must be known to everyone in the ----------------------
organisation. But unfortunately in India, managements try to educate
the workers first, instead of educating their managers/executives or ----------------------
supervisory staff, who themselves are ignorant of these tools.
----------------------
6. Everyone knows that 80% of the problems in any organisation are
management related, (For example, faulty planning, unscientific methods, ----------------------
defective materials, poor maintenance of equipment, lack of standardisation,
etc) and only 20% of the problems are employee related. Instead of first ----------------------
attacking 80% of the problem, if the management attempts to analyse
employee related problems through QCs, it reflects poorly on management. ----------------------

----------------------
Summary
----------------------
●● Quality circles are a small group of employees, who volunteer to meet
regularly to undertake work related projects. The organisation for quality ----------------------
circles consists of Steering Committee, Facilitator, Leader and Members.
The group is small, between 8 to 10 members. ----------------------
●● Members are from the same or similar functional area. Various problem
solving techniques used by a quality circle are: Brain storming, Data ----------------------
collection, Pareto’s diagram, Cause and effect diagram and Control charts.
----------------------

Keywords ----------------------

●● Quality Circle: Quality circle is basically a small group of employees, ----------------------

who volunteer to meet regularly to undertake work related projects –
----------------------
quality, productivity, safety, efficiency, cost, working conditions, etc.,–
and evolve recommendations to improve effectiveness in the selected ----------------------
functional area.
Quality Circles 75
 Notes ●● Suggestion Scheme: Suggestions are made by individuals who also get
a suitable reward for the same, but does not carry any responsibility of
---------------------- implementation.
●● Task Force: Task forces are formed by the management for a specific task
----------------------
to be accomplished, with the team members from various departments, at
---------------------- various levels. Task forces come to end as soon as results are achieved.

----------------------
Self-Assessment Questions
----------------------
1. What are quality circles? What benefits can an organisation achieve by
---------------------- organising these circles?

---------------------- 2. How are quality circles formed? Describe briefly the steps in the operation
of the quality circles.
---------------------- 3. How do “quality circles” differ from “task forces”?
---------------------- 4. What are the characteristic differences between the operation of “Quality
circles” and “Suggestion schemes”?
----------------------
5. What are the limitations of Quality Circles?
----------------------
Answers to Check your Progress
----------------------
Check your Progress 1
----------------------
State True or False.
----------------------
1. True
---------------------- 2. False
----------------------
Check your Progress 2
---------------------- Multiple Choice Single Response.
---------------------- 1. Quality circle requires strong support from
i. Management
----------------------
2. The members must be _______ for case studies.
----------------------
i. Trained
----------------------

---------------------- Suggested Reading

---------------------- 1. Dward E. Lawler III and Susan A. Mohrman, “Quality Circles After the Fad”,
Harvard Business Review, January 1985. Accessed 17 November 2014
---------------------- 2. Ishikawa, K., “What is Total Quality Control? The Japanese Way”,
Prentice Hall, 1985
----------------------
3. Montana, Patrick J.; Bruce H. Charnov (2008). Management (4th ed.).
---------------------- Barron’s. ISBN 978-0-7641-3931-4.
4. Hutchins, David C. (1985). The Quality Circles Handbook. New York:
----------------------
Pitman Press. ISBN 978-0-89397-214-1
76 Techniques for Operations Efficiency
5-S for Good Workplace Organisation
UNIT

4
Structure:

4.1 Introduction
4.2 Relationship between the 5-Ss
4.3 A Brief on the 5-S Elements
4.4 Benefits of the 5S
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

5-S for Good Workplace Organisation 77

 Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
●● Explain the importance of the 5-S method/technique.
---------------------- ●● Relate between the factors influenced by the use of the 5-S method.
---------------------- ●● Identify the relationship between quality systems and the 5-S.
---------------------- ●● Indicate the effectiveness of using the 5-S in a manufacturing unit.

----------------------

---------------------- 4.1 INTRODUCTION

---------------------- Good housekeeping is the foundation for, and the first step towards, quality
achievement in a manufacturing organisation. It boosts employee morale and
---------------------- inspires customer confidence.
---------------------- Good quality of the work place is essential as

---------------------- 1. A good environment has a strong influence on the people, and the quality
of the product they produce.
----------------------
2. A customer visiting the plant sees, in a quality work place, a guarantee for
---------------------- the product quality.
3. Good housekeeping helps to eliminate waste, by identifying non-value added
----------------------
activities, such as searching for tools, time lost in reaching out to retrieve
---------------------- items, over production, etc.
4. Housekeeping reflects on the management’s general attitude towards
----------------------
work in the organisation.
---------------------- Housekeeping is measured in the way the
---------------------- ●● factory floors are swept and machines are cleaned

---------------------- ●● tools are stored in their proper place

●● swarf and chips from machines are handled
----------------------
●● work tables are organised
---------------------- ●● personal items are stored
---------------------- ●● records are maintained
●● targets and achievements are displayed or communicated to the employees.
----------------------
Good housekeeping is simply the ‘basic’ to a better workplace and to
----------------------
●● reduce the cost of products and service
---------------------- ●● achieve discipline in manufacturing
---------------------- ●● bring about an improvement in quality and productivity.
The 5-S (Seiri, Seiton, Seiso, Seiketsu and Shitsuke) in Japan are considered
---------------------- to be the basics of any job. The 5-S principles have been practiced in Japan,

78 Techniques for Operations Efficiency

to establish and maintain quality environment in the organisation. Japanese Notes
managements are of the view that, if the housekeeping in a plant is weak, no
further diagnosis is needed, to know as to why that plant produces a poor quality ----------------------
products. The 5-S technique has been defined as
----------------------
“A systematic and rational approach to the workplace organisation
and methodological housekeeping with a sense of purpose” ----------------------
The 5-S are actually five Japanese words: Seiri, Seiton, Seiso, Seiketsu ----------------------
and Shitsuke.
----------------------
These five words, their English equivalent, and how they are applied to
the workplace is given in the table 4.1 ----------------------
Table 4.1 : English equivalent of the 5-S ----------------------
Sr. No. Japanese English Meaning How to apply it to the
----------------------
workplace?
1. Seiri Structurise Sorting Classify items into the necessary ----------------------
and unnecessary, retain only those ----------------------
which are required, and dispose
of the others. (i.e. those which ----------------------
are not needed).
----------------------
2. Seiton Systematise Re-organise Store the things systematically
to ensure safety, quality and ----------------------
efficiency. Storage methods
----------------------
must permit an efficient use of
space, accident free stage, long ----------------------
shelf life and easy retrievability
of items, within a pre­fixed target ----------------------
retrieval time. ----------------------
3. Seiso Sanitise Cleanup/ Maintain workplace free from
sweeping dirt/ dust and garbage, by ----------------------
fixing an individuals’ cleaning ----------------------
responsibility.
----------------------
4. Seiketsu Standardise Standardisation Maintain cleanliness through
seiri, seiton and seiso, by ----------------------
ensuring transparency and
uniformity of everything that is ----------------------
done in the organisation.
----------------------
5. Shitsuke Self-discipline Sustain Make a habit of doing things the
way they are supposed to be ----------------------
done, (i.e. developing the habit ----------------------
of following rules/practices/
procedures including the daily ----------------------
5-S practices.
----------------------

5-S for Good Workplace Organisation 79

 Notes 4.2 RELATIONSHIP BETWEEN THE 5-Ss
---------------------- The 5-Ss are not an independent concept but inter-related and inter-
---------------------- dependent. Higher efficiency/productivity will result if Seiri alone is applied,
but the effect will be short lived. Similarly, the organisation can reduce “time
---------------------- to store and retrieve goods” by practicing the principles of seiton, (for example,
there should be a place for everything and everything should be in its proper
----------------------
place) but it will consume more space and more cost if Seiri is ignored. Also,
---------------------- the work place may still look bad, until clean up (Seiso) has been done, and
cleanliness (Seiketsu) is maintained. To achieve the best results, everyone must
---------------------- daily practice the 5-S, have the right attitudes, follow the rules and carry out
---------------------- the assigned responsibilities. Fig. 4.1 shows the relationship between the 5-Ss.
The 5-S technique is not only useful to manufacturing organisations, but
----------------------
also in the service sector viz., offices, banks, hospitals, hotels/restaurants, or in
---------------------- general places where men work and equipments are handled. One can even get
excellent results by applying these principles in one’s home.
----------------------
SEIRI
----------------------
(Organisation)
----------------------

----------------------
SEIKETSU SHITSUKE SEITION
---------------------- (Standardi- (Discipline) (Maintenance)
sation)
----------------------

----------------------
SEISO
---------------------- (Clean up)

---------------------- Fig. 4.1: Relationship between the 5-S

----------------------
4.3 A BRIEF ON THE 5-S ELEMENTS
----------------------
1. SEIRI (i.e. Organisation)
----------------------
Seiri focuses on eliminating unnecessary items from the workplace. It
---------------------- segregates items into “necessary” and “unnecessary” groups, sub-divides
the necessary group into “working” and “non-working” categories, and then
----------------------
disposes of the unnecessary and the non-repairable items.
---------------------- What Do You Sort?
---------------------- The sorting exercise is to be performed in each department, and should
---------------------- cover different item groups. Typical item groups are

----------------------

80 Techniques for Operations Efficiency

 Equipments – machines, material handling equipment, electrical Notes
equipment, inside and outside machinery, trolleys, WMC benches, fire
extinguishers, telephones, furniture. ----------------------

●● Raw materials, spare parts. ----------------------

●● Stationery items ----------------------

●● Records, documents, forms, files, memos, circulars, letter heads ----------------------

●● Cabinets/desk drawers/shelves/cabinet contents, in and out trays ----------------------

----------------------
●● Bills/indents
----------------------
●● Books
----------------------
●● Notices, posters, calendars, work instructions
----------------------
●● Training : course materials, training calendars/schedules
----------------------
●● Measuring instruments, gauges
----------------------
●● Pipes/wires
----------------------
●● Computers, floppies, CDs
----------------------
●● Electrical equipment i.e. tubes, bulbs, fans, coolers, air-condition, machine
----------------------
●● Jigs/fixtures, patterns and moulds, dies
----------------------
●● Materials handling : transport equipment, trolleys, pallets, packing boxes.
----------------------
The most effective method to implement Seiri, is to place/attach a red tag
to all unneeded items, and move them to a location outside the work area, for ----------------------
storage until disposed of. ----------------------
Sorting is an excellent way to free up valuable space, and eliminate such ----------------------
things as obsolete stocks, used and broken tools, irreparable jigs and fixtures,
non-reworkable jobs, surplus stock, etc. Fig. 4.2 depicts a flow chart of the ----------------------
activities under Seiri. ----------------------
The Seiri helps to kill, (drive away) the JIC (Just In Case) job mentality from ----------------------
the organisation.
----------------------

----------------------

----------------------

----------------------

----------------------

5-S for Good Workplace Organisation 81

 Notes

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
Fig. 4.2 : Activities under Seiri
----------------------
Specific activities to implement the Seiri are given in table 4.2
----------------------
Table 4.2 : Activities to be undertaken for the implementation of the Seiri
----------------------
Sr. No. Activity description
----------------------
1. Separate things like the items, parts, fixtures, tools, files,
---------------------- papers, books, etc. which are necessary from those which are not
necessary.
----------------------
2. Red tag those items which have no clearly foreseable use, move
---------------------- them outside the work area to the disposal shelf.
---------------------- 3. Rework/repair those items which are currently not in the working
condition, but are useful and repairable.
----------------------
4. Return borrowed things to their owners.
---------------------- 5. Dispose of items in the non-usable / unnecessary category.
---------------------- 6. Discard old files and stationery not in use.

---------------------- 7. Remove unnecessary papers, letters, documents from files.

82 Techniques for Operations Efficiency

Benefits expected from Seiri are as follows: Notes
●● Seiri saves productive space.
----------------------
●● It prevents incidents of unnecessary buying.
●● It indicates clearly as to what is in stock. ----------------------
●● It reduces unnecessary handling, as there are less number of items to
----------------------
handle.
●● It reduces number of lockers/cabinets for storage (as number of filed ----------------------
papers/items stored are reduced).
----------------------
2. SEITON
----------------------
Seiton means systematic, orderly, efficient and effective arrangement
of items in use. For effective storage, answers to the following questions are ----------------------
required.
----------------------
●● What items are to be stored?
●● Where should the items be stored? ----------------------

●● What is quantity of the items that is generally required to be stored? ----------------------

●● Are there any special storage requirements? ----------------------
●● How often are the items to be stored or retrieved? ----------------------
Therefore, Seiton means “to arrange correctly in accordance with the
correct method of doing activities, and making a thorough preparation so that ----------------------
the activities can be performed well, even if they occur abruptly.”
----------------------
Since arranging correctly is a natural follow up activity after segregation,
Seiri and Seiton are often used and practiced together. ----------------------
Some areas which need attention are: unlabelled tool cribs, cluttered ----------------------
shelves/lockers, office files and things lying on the shop floor.
----------------------
Arranging things periodically (or the first time after they have been
segregated) may not help. Analysis should be done as to why the things get out ----------------------
and thus need to be put back, or why it takes that long to retrieve or place it
back for storage. ----------------------
People usually find it difficult to declare an item unnecessary, thinking ----------------------
that it may come in handy some day. It is, therefore, essential to decide some
criteria such as, the frequency of usage for classifying items into “necessary” ----------------------
and “un-necessary” categories. Simple rules such as, “if an item is unlikely to
be used within a year or longer, can be considered for disposal” can usually help ----------------------
to conduct Seiri. Having removed unnecessary items, even storage of items can ----------------------
be based on the frequency of usage. The frequency of the use principle, can also
be used to decide the amount/quantity to be kept in stock. Minimum stock in the ----------------------
“used sometimes” category, can be reduced while those of items in the “rarely
used” category, can be eliminated. Fig. 4.3 provides the guidelines for the same. ----------------------
The storage system should also provide some criteria or logical pattern, ----------------------
to enable people to remember where things are supposed to be (for example,
location number in store). ----------------------

5-S for Good Workplace Organisation 83

 Notes Seiton focuses on the efficient and effective storage methods. Some good
examples of Seiton are: tool penal, broom cards, shadow boards, modular
---------------------- shelving and cabinets for trash cans/ brooms/ mops/ buckets, key boards, etc.
---------------------- This eliminates the time wasted everyday looking for these items.
Seiri
----------------------

---------------------- Usable items

----------------------
Determine the frequency of use
----------------------

----------------------
Used often Used some times Used rarely
---------------------- (Daily/weekly) (Monthly/quarterly) (Half yearly/yearly)
----------------------
Keep handy / Organise and keep in Store in a distant
---------------------- nearby the proper workplace place

----------------------
Rules for efficient
---------------------- storage
---------------------- Fig.4.3: Planning Storage Based on Frequency of Use
---------------------- Strategies for effective Seiton are listed in table 4.3.
---------------------- Table 4.2 : Activities to be Undertaken for Implementation of Seiton

---------------------- Sr. No. Activity description

---------------------- 1. Pre-fix a place for everything and put everything in its place.

---------------------- 2. Plan storage for easy retrievability (say less than one minute).
3. Name everything (e.g. shelves/racks) and assign location.
----------------------
4. Organise storage based on the frequency of use, i.e. keep
---------------------- frequently used jigs/fixtures/gauges/ tools close to the point of
---------------------- use.
5. Use index for files/records/drawings.
----------------------
6. Look inside the shelves and sort out materials, parts, tools etc.
---------------------- (i.e. prevent mix up of items).
---------------------- 7. Take off the doors to the cabinets (i.e. eliminate covers and locks).
---------------------- 8. Observe first-in-first-out for issue/consumption of items.

---------------------- 9. Mark gangways with yellow lines, and keep gangways free from
any obstruction.
----------------------

84 Techniques for Operations Efficiency

 10. Keep all materials in identified locations. (i.e. under inspection, Notes
finished goods, non-conforming, etc.)
----------------------
11. Outline for work areas, and locations for everything.
12. Set up shadow boards to store tools in assembly/maintenance, ----------------------
and office items in drawers to avoid mix up. ----------------------
13. Assign modular shelving and cabinet for trash bins, brooms,
mops, buckets, etc. ----------------------

14. Affix an identification mark on rubber stamps, for easier ----------------------

orientation and place them on stands/clamps, for storage to avoid
search. ----------------------

15. Assign location number for items in store and provide work ----------------------
instructions, on the procedure/method to know these locations.
----------------------
Benefits of Seiton are ----------------------
i. Easy retrievability of materials
----------------------
ii. Time taken to search is minimised
----------------------
iii. Unnecessary purchase is avoided (this is because when items can’t be
found due to poor Seiton, they are purchased). ----------------------
Systematic Arrangement (office) ----------------------
1. Categorise files, mail, papers etc. based on a specific criterion : (i) subject/
----------------------
title, (ii) project, (iii) customer/ supplier/ department (iv) usage.
2. Compartmentalise cabinets/ shelves/ desk/ drawers. ----------------------

3. Label/ identify cabinets/ drawers according to the contents. ----------------------

4. Determine the quantity of each item, and plan storage according to a pre- ----------------------
fixed quantity.
----------------------
5. Plan storage to ensure easy retrievability (within pre-set target time).
----------------------
6. Colour code items for easy identification.
7. Designate responsibility for files if shared. ----------------------
8. Keep files / binders vertically and not laid out. ----------------------
9. Plan storage of floppy disks to prevent them from getting bent. ----------------------
10. Install visual control for replenishment of stocks, and checking missing
----------------------
items.
11. Observe a paper destruction day once in every quarter of the year (say ----------------------
15th of the month of every quarter). ----------------------
3. SEISO
----------------------
Seiso is cleaning the workplace completely so that there is no dust on the
floor, machines and equipment. The objective of Seiso is to return items, jigs/ ----------------------

5-S for Good Workplace Organisation 85

 Notes fixtures, moulds, equipments, other utilities and work places, used during work,
to their original clean and polished condition, by removing scrap and leftover
---------------------- and wiping all surfaces to make it dust/dirt free. The presence of dust can cause
abrasions, scratches, blockages, bad connection (electrical defects), quality
----------------------
defects (for example, painting on a dusty surface), variability (for example,
---------------------- wrong measurements and lack of process control). Since while cleaning, the
surfaces are seen and touched, Seiso prevents potential problems by discovering
---------------------- abnormalities, which are still in the initial stages.
---------------------- Everyone, right from the top man to workers and cleaners, must do
cleaning. In Japan,
----------------------
●● e very one– clerk to officer– does the dusting / cleaning of his own table
---------------------- and work area. There are no office boys / cleaners.
---------------------- ●● every family does the cleaning of the pavement in front of their residence.

---------------------- ●● e very workman does cleaning, preventive inspection and lubrication of

his machine.
---------------------- The Japanese believe that, when they are cleaning, they are cleaning their
---------------------- minds too. And certainly every person is sure to experience this kind of feeling
while cleaning before celebrations/ specific occasions (for example, annual
---------------------- cleaning at home before Diwali or new year, cleaning of devasthans, cleaning
of work place before pooja, etc).
----------------------
People generally take pride in working in a clean and clutter-free work
---------------------- area, and sparkling/ shining helps to create a feeling of ownership of the
---------------------- equipment and facility.
Cleaning is not a one time activity. Some sort of standard for cleaning
----------------------
needs to be developed, and regular followup is necessary to sustain this
---------------------- improvement.

---------------------- The steps to be followed during and after housekeeping are given in
Fig.4.4.
----------------------
Mere cleaning of work areas is not the solution, but one must find out as
---------------------- to what makes the places dirty, (i.e. why cleaning is required) which means each
place should be surveyed to unearth the underlying causes for the grime (i.e.
---------------------- sources of grime). Logically, removal of causes of grime, will automatically
---------------------- reduce the effect of the problem. It may be most appropriate to constitute a
Seiso committee to conduct a survey of all the zones, to observe on the spot the
---------------------- presence of grime, and investigate/ establish causes for the grime. The survey
can be then followed by a brainstorming session, to decide the countermeasures,
----------------------
a format, similar to the one used by Intervalve (India) Limited, Pune, which
---------------------- is recommended (Fig. 4.5) to systematize the process of data collection and
analysis.
----------------------

----------------------

86 Techniques for Operations Efficiency

 Notes

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
Fig. 4.4 : Implementation of Seiso ----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

5-S for Good Workplace Organisation 87

 Notes Intervalve (I) Ltd., Pune 5-S Work Place arrangement
---------------------- Zone :
Department:
----------------------
Sr. What makes the place dirty? Tick-off Causes
---------------------- No. (if applicable)
---------------------- 1. Dust / dirt
2. Oil spills / Oil mist
----------------------
3. Water leak
---------------------- 4. Steam leak
5. Chemical spills
----------------------
6. Filling
---------------------- 7. Humidity
---------------------- 8. Rust
9. Chips
---------------------- 10. Die pressings
---------------------- 11. Litter
12. Others
----------------------
a) …………….
---------------------- b) …………….
---------------------- c) …………….

---------------------- d) …………….
13. Items falling off shelves/ conveyors
----------------------
Fig. 4.5: A Typical Format to Collect Data on What Makes Work
---------------------- Place Dirty
---------------------- Strategies for the effective of Seiso in the organisation are listed in Table 4.4.
Table 4.3
----------------------

---------------------- Sr. No. Activity description

---------------------- 1. Keep own machines and work places clean by

- sweeping floor and surroundings
---------------------- - dusting to make it dirt free, cobweb free
---------------------- - wiping to make it oil/grease free
- polishing and painting.
----------------------
2. Clean machine / work table before start of the daily routine work.
----------------------
3. Eliminate leakage / spillage.
---------------------- 4. Brainstorm for creative ideas to make cleaning and inspection
---------------------- easier

88 Techniques for Operations Efficiency

 5. Clean even places that most people do not notice. Notes
6. Remove scrap to avoid scratching (for example, scrap in die).
----------------------
7. Clean elements to remove dirt that cause sub-standard performance
----------------------
8. Clean electrical contacts to avoid bad connections (for example,
electrical contacts, push buttons, switches etc). ----------------------

9. Dust off dirt inside the computer to avoid play up. ----------------------
10. Remove oil and dust before painting to ensure a better finish. ----------------------
11. Prepare schedule for cleaning and assign clear cut responsibilities. ----------------------
12. Conduct an inspection to unearth problems, identify root causes
----------------------
and establish corrective action.
13. Carryout daily followup cleaning to sustain this improvement. ----------------------

14. Clean up machines, jigs/fixtures, tools/gauges etc. after use. ----------------------

15. Clean up the work place after use. ----------------------
16. Place trash bins (use me) at strategic places, and empty them at ----------------------
the end of the shift / day into the garbage tank.
----------------------
17. Clean up supply lines (no leakage, blockage or clogging with oil/
dirt/ mud). ----------------------
18. Clean light bulbs, fans, shades reflectors, busbars etc. ----------------------
19. Periodically clean ----------------------
- coolant tanks
- spray paint booths ----------------------
- water storage tanks ----------------------
- material handling trolleys
----------------------
20. Clean glasses in the office.
----------------------
21. Dust off parts, components, items lying in shelves in store.
22. Clean tops of cupboards/ filing cabinets and racks. ----------------------

23. Clean / wash covers. ----------------------

24. Clean sight glasses. ----------------------

25. Clean walls and the ceiling to make them dust free and cobweb ----------------------
free.
----------------------
26. Clean shop floor areas and passages.
----------------------
27. Clean wash basins, washing areas and toilets.
----------------------
The more the number of items, the greater is the effort required to clean.
Therefore, it pays to introduce, the following, “one - is - best” rules: ----------------------

5-S for Good Workplace Organisation 89

 Notes 1. Limit people to one set of stationery and tools (Rule # 1)
2. Centralise file storage in one location (Rule # 2)
----------------------
3. Keep only one copy of the original of each document (Rule # 3)
----------------------
4. Limit all reports / memos / forms to one page only (Rule # 4)
---------------------- 5. Institute same day processing (Rule # 5)
---------------------- 6. Provide one stop service to all customers (rule # 6)
---------------------- 7. Provide only one location for each item (Rule # 7)
The benefits of Seiso are:
----------------------
●● Early identification of problems like cracks/oil leakages
----------------------
●● Greater confidence of customers
---------------------- ●● Improved product quality
---------------------- ●● Pride for the employees

----------------------
Check your Progress 1
----------------------

---------------------- True / False

1. Seiri segregates items into “necessary” and “unnecessary” groups,
----------------------
2. Seiso is cleaning the workplace completely.
----------------------
3. Seiton means to arrange correctly in accordance with the correct
---------------------- method of doing activities.
----------------------
4. SEIKETSU
---------------------- Seiketsu is the repeatedly following of “Seiri”, “Seiton” and “Seiso”,
developing and implementing Standard Operating Procedures (SOPs), and
----------------------
maintaining safe and hygienic conditions at work, leading to a serene atmosphere.
---------------------- Seiketsu embraces both, personal cleanliness and that of the work environment.
It emphasis on 5-S standardisation and visual management. Standardisation
---------------------- ensures that all assignments are absolutely clear and that there is no undefined
(or gray) area. Visual management ensures that communication is simple and
----------------------
effective. Together, they (i.e. standardisation and visual management) provide
---------------------- an effective way for continuous improvements.
More specifically, Seiketsu is–
----------------------
(i) to ensure that the implementation of first three Ss - Seiri, Seiton and Seiso,
---------------------- is effective and that the situation will not deteriorate back to square one.
---------------------- (ii) to develop easy to follow standards, and also develop the structure to
follow them.
----------------------
(iii) evolve Standard Operating Procedures (SOPs) and implement them,
---------------------- to maintain safe and hygienic conditions at work, leading to a serene
atmosphere.
90 Techniques for Operations Efficiency
(iv) involve employees to participate in the development of standards. Notes
(v) introduce an appropriate monitoring mechanism to guard against any
----------------------
slippage.
(vi) train people in different work places, offices, public places and the living ----------------------
place, (homes) to follow good housekeeping and good habit formation
----------------------
practices.
(vii) explore the power of visual management to ensure that communication is ----------------------
simple and effective.
----------------------
(viii) embrace personal cleanliness as well as that of work place for habit
formation. ----------------------

Standardisation and visual management provides an effecitive way for ----------------------

continuous improvement.
----------------------
Benefits of Seiketsu are –
----------------------
●● minimisation of errors due to standardised procedures.
●● ownership and a sense of pride among employees. ----------------------
●● improvement in quality due to reduced defects. ----------------------
●● safe working conditions/environment.
----------------------
Table 4.4 lists down the activities necessary to implement Seiketsu in an
organisation. ----------------------
Table 4.4 : Activities to be Undertaken for Implementation of Seiketsu ----------------------
1. Standardise best practices in your workplace, and implement them ----------------------
as effective work standards.
2. Create as many visual control systems as possible, such as ----------------------

●● OK/rejection tags on parts/components/purchased from suppliers/ ----------------------

manufactured at works.
----------------------
●● “rework” stickers/labels
●● “danger zone” marks on meters and switches ----------------------

●● “warning” signs/marks (e.g. no smoking sign in paint area) ----------------------

●● “fire extinguisher” signs ----------------------
●● “entry and exit” signs
----------------------
3. Earmark/define a separate place/area for
●● smoking and eating places ----------------------
●● personal belongings (helmets, raincoats, tiffin box) ----------------------
●● parking areas for vehicles, material handling equipment ----------------------
●● change room for workers
----------------------
4. Mark aisles of sufficient width and they should be kept free of
obstruction. ----------------------

5-S for Good Workplace Organisation 91

 Notes 5. Implement colour codes for easy and faster identification of
---------------------- ●● raw materials
●● rubber
----------------------
●● lubricants
---------------------- ●● wires
---------------------- ●● fluid media, etc.
---------------------- 6. Display department/office labels and name plates.

---------------------- 7. Fix a time limit for completion of routine activities e.g. clearance
of Goods-Receipt-Reports (GRR), reconciliation of vendor account,
---------------------- responding to an enquiry/customers communication, submission of
quotations, attending to customers complaints, etc.
----------------------
8. Provide visual checks for
----------------------
●● missing items
---------------------- ●● out-of-stock condition
---------------------- ●● excess stock condition.

---------------------- 9. Display Preventive Maintenance schedule (e.g. preventive

inspection, lubrication, cleaning, etc.)
----------------------
10. Place first aid boxes and fire extinguishers at suitable locations, and
---------------------- display their location (through location maps) at strategic places.
---------------------- 11. Provide suitable personal protective equipment (PPE) to employees
for use during working.
----------------------
12. Conduct wire management exercises to ensure
----------------------
●● electrical/telephone/computer wiring is clearly laid out.
---------------------- ●● switches/boards are clean
---------------------- ●● switches are not broken/chipped/cracked.

---------------------- 13. Repaint machines and equipments if the paint has come off or faded,
and also at the end of a pre-fixed interval.
----------------------
14. Repaint yellow lines at periodical frequency.
----------------------
15. Rewrite things that have got erased.
---------------------- 16. Make the work area comfortable by
---------------------- ●● providing adequate lighting at all the places.
---------------------- ●● eliminating/reducing vibrations
●● measuring noise levels and maintaining them within limits.
----------------------
●● ensuring proper ventilation and exhaust.
----------------------

92 Techniques for Operations Efficiency

 17. Arrange material on the work table based on principles of Notes
ergonomics. (Man-Machine Relationship)
----------------------
18. Remove covers of cabinets (or replace them by glass cover) to create
----------------------
a see-through condition.
19. Fix retention periods (for documents and records) and create a ----------------------
manual, to provide details on the method of disposal, the responsibility ----------------------
of disposal, etc.
----------------------
5. SHITSUKE
Shitsuke (sustaining) means training/educating/disciplining employees to ----------------------
follow rules strictly and to maintain standards while working. ----------------------
Shitsuke is the most difficult ‘S’ to implement and achieve. Since it is in
----------------------
human nature to resist change, many organisations return to status quo, (i.e. end
up with a dirty cluttered shop) a few weeks following the implementation of ----------------------
the 5-S.
----------------------
Therefore, in order to ensure that the 5-S gets into the blood of the
organisation, the following five actions given below are recommended: ----------------------
i. training of employees on a regular and continuous basis.
----------------------
ii. internal auditing by trained auditors and follow up for non-conformances.
----------------------
iii. development, display and daily follow up of the 5-S activities.
iv. display of fixed-point photographs, taken before and after implementation ----------------------
of the 5-S, to motivate the team members to improve the work place ----------------------
further.
----------------------
v. friendly competition and competitive benchmarking among the
departments for the 5-S. ----------------------
More specifically, the following need to put into place (Table 4.5).
----------------------
Table 4.5 : Action list on Shitsuke
----------------------
1. Arrange employees’ training in the 5-S technique.
----------------------
2. Provide pamphlets/easy to read booklets on the 5-S practices to all
employees. ----------------------
3. Practice pick up of components/papers/rubbish. ----------------------
4. Mark 5 minutes at the beginning and at the end of the day, to practice
the 5-S. ----------------------

5. Observe a paper destruction day (say 15th / 16th day of the month ----------------------
following each quarter).
----------------------
6. Conduct fire drills and practice dealing with emergencies.
----------------------
7. Conduct good telephonic and communication exercises.
----------------------

5-S for Good Workplace Organisation 93

 Notes 8. Work together on specific 5-S projects (e.g. tree plantation).
---------------------- 9. Replace equipment after its economic retentive period.
10. Insist that employees attend works in uniform and wear safety
----------------------
shoes.
---------------------- 11. Promote friendly competition and competitive benchmarking,
among the departments for the 5-S.
----------------------
12. Organise a grand prize presentation for the best 5-S department/
---------------------- section.
---------------------- 13. Audit the 5-S housekeeping and follow up for non-conformance.
---------------------- 14. Conduct Kaizen for housekeeping.

---------------------- 15. Make the employees take an oath to maintain their work place
sparkling clean.
----------------------
---------------------- Check your Progress 2
----------------------
Fill in the blanks.
----------------------
1. Seiketsu stands for ________.
---------------------- 2. Shitsuke stands for ________.
----------------------

----------------------
Activity 1
----------------------

---------------------- 1. Name the five ‘S’s.

---------------------- 2. State the interrelationship of five ‘S’ with each other.

----------------------
4.4 BENEFITS OF THE 5-S
----------------------

---------------------- ●● Reduction in errors/defects due to standardised procedures.

●● Consistent and improved quality
----------------------
●● Higher productivity.
---------------------- ●● Lesser accidents
---------------------- ●● Nice to work in a clean, organised and beautiful workplace
●● Lesser time to retrieve things when required.
----------------------
●● More usable space.
---------------------- ●● Reduction in machine down time.
---------------------- ●● Improved communication among the employees.

94 Techniques for Operations Efficiency

●● Improved morale of the employees. Notes
●● Sense of ownership of workplaces.
----------------------
●● Positive impression on the customers.
----------------------
Summary
----------------------
●● 5-S is a commonsense approach to good housekeeping. It advocates the
----------------------
implementation of five sets of actions, defined by five Japanese words:
Seiri, Seiton, Seiso Seiketsu and Shitsuke. ----------------------
●● Seiri means sorting out unnecessary items at the work place and
----------------------
disposing them off; Seiton means arranging the necessary items at pre-
fixed locations; Seiso means cleaning the work place completely and ----------------------
regularly; Seiketsu means maintaining a high standard of housekeeping
and work organisation at all times; and shitsuke means training/educating ----------------------
employees to follow housekeeping rules strictly.
----------------------

Keywords ----------------------

●● Seiri (i.e. Organisation): Seiri focuses on eliminating unnecessary items ----------------------

from the workplace.
----------------------
●● Seiton: Seiton means systematic, orderly, efficient and effective
arrangement of items in use. ----------------------
●● Seiso: Seiso is cleaning the workplace completely so that, there is no dust ----------------------
on the floor, machines and equipment.
●● Seiketsu: Seiketsu is the repeated following of “Seiri”, “Seiton” and ----------------------
“Seiso”. ----------------------
●● Shitsuke: Shitsuke (sustaining) means training/educating/disciplining
employees, to follow the rules strictly and to maintain standards while ----------------------
working. ----------------------

Self-Assessment Questions ----------------------

----------------------
1. What do you understand from the 5-S techniques? Is it an effective
management tool? ----------------------
2. “5-S is a commonsense approach to good housekeeping”. Discuss.
----------------------
3. Describe briefly the steps in the implementation of the 5-S technique in
the organisation. ----------------------
4. What specific actions are required to achieve perfection in good ----------------------
housekeeping under the 5-S concept?
----------------------

----------------------

----------------------

5-S for Good Workplace Organisation 95

 Notes Answers to Check your Progress
---------------------- Check your progress 1

---------------------- True / False

1. True
----------------------
2. True
----------------------
3. True
---------------------- Check your Progress 2
---------------------- Fill in the blanks.

---------------------- 1. Seiketsu stands for standardization.

2. Shitsuke stands for maintaining standardization.
----------------------

---------------------- Suggested Reading

---------------------- 1. “Lean and Environment Training Modules” (PDF). United States
---------------------- Government, Green Supply Network. Retrieved 12 July 2012.
2. Womack, James; Jones, Daniel; Roos, Daniel (1991). Machine That
---------------------- Changed The World. Productivity Press. ISBN 978-1-84737-055-6.
---------------------- 3. Hirano, Hiroyuki (1995). 5 Pillars of the Visual Workplace. Cambridge,
MA: Productivity Press. ISBN 978-1-56327-047-5.
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

96 Techniques for Operations Efficiency

SMED for Set-up Time Reduction
UNIT

5
Structure:

5.1 Introduction
5.2 Stages of SMED
5.3 Benefits of SMED
5.4 Tools Helpful for Set-up Time Reduction
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

SMED for Set-up Time Reduction 97

 Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
●● Explain what is set-up time.
---------------------- ●● Conclude the importance of set up time in manufacturing.
---------------------- ●● State the implementation cycle of SMED.
---------------------- ●● Use SMED in the manufacturing industry.

----------------------

---------------------- 5.1 INTRODUCTION

To maintain its market share in a competitive market, every organisation
---------------------- must increase the line of its products, accept low volume orders, shorten
---------------------- delivery lead time, and keep its cost low (i.e. become price competitive). The
organisation must cut production lead time and decrease production batch sizes.
---------------------- It should also reduce inventory levels in the production and inventory systems.
Since small batches will require frequent changeovers, production capacity is
---------------------- expected to shrink, unless set up times are reduced.
---------------------- Set-up time reduction, therefore, is the key to developing or monitoring a
company’s competitiveness, in today’s market where more diversified products,
---------------------- are desired in a short production lead time.
---------------------- A Quick Die set up change is not restricted to the set-up reduction, of the
press shop alone, it can be extended to all areas of manufacturing, wherever there
----------------------
is requirement of a tool change/set-up, on a machine prior to manufacturing. It
---------------------- can be applied to
i. Presses
----------------------
ii. Multi-spindle automats
----------------------
iii. Lathes, turret lathes
---------------------- iv. Milling machines
---------------------- v. Drilling machines
---------------------- vi. Broaching machines
vii. Grinding machines
----------------------
viii. Gear shaping and gear hobbing machines
----------------------
ix. Thread rolling and thread grinding machines
---------------------- x. Copy turning machines
---------------------- xi. Blister packing machines
---------------------- xii. CNC machines
xiii. Forging machines
----------------------

98 Techniques for Operations Efficiency

xiv. Paint manufacturing equipment Notes
xv. Electroplating machines
----------------------
xvi. Steel rolling mills
----------------------
xvii. Extrusion machines
----------------------
xviii. Die casting machines
----------------------
xix. Powder coating machines
----------------------
xx. Oil extraction mill
----------------------
Thus, the set up time reduction concept is virtually universal.
Meaning of set-up time ----------------------

The set up time is the time required, to prepare a machine or a group of ----------------------
machines, to changeover from one job to another. Time of a conventional set-up
----------------------
consists of following tasks (activities)
----------------------
a) The time to study a blueprint, including the time spent on receiving the
instructions from the supervisor or foreman. ----------------------
b) The time to go to a tool crib to get the necessary tools and gauges, etc. and ----------------------
to return the tools used on the previous job.
----------------------
c) The time to select a fixture (vise, mandrel, suitable sized collet, face plate,
etc.) and secure it (install it) to the bed of the machine (onto the machine). ----------------------
d) The time to install/mount the necessary tools onto the machine, make ----------------------
adjustments, set longitudinal or traverse feed stoppers, wherever necessary,
to ensure that each tool cuts properly and to the given dimensions. ----------------------

e) The time to call the inspector and get the inspection done (pilot piece ----------------------
inspection). Alternatively, it is the time necessary to deliver the part to
----------------------
the inspection booth for inspection. Inspection time, however, does not
include the time to manufacture the part. ----------------------
f) The time spent by the operator, over and above the unit standard time, to ----------------------
produce the first few pieces.
----------------------
g) The time to physically count the jobs produced, including the time to sign
the completed work-order. ----------------------
h) The time to remove tools from their tool-holders, after the required ----------------------
quantity has been manufactured, clean each tool and put it away in its
proper places. ----------------------

i) The time to clean measuring instruments and put them away in their ----------------------
proper places.
----------------------
j) The time to release and remove a fixture (mandrel, collet, face plate, etc),
blow or brush it clean and keep it aside. ----------------------

SMED for Set-up Time Reduction 99

 Notes k) The time to remove borings, turning, drilling etc. from the bed of the
machine. Normally, turnings/drillings/ borings should be removed by a
---------------------- helper, (even when the production is in progress) when these gather in a
large quantity. However, burrs removal would have to be considered a
----------------------
part of the set up operation, if a different material is required on the next
---------------------- job (for example, steel for the job just completed and brass for the job to
be loaded).
----------------------
Traditional set up operations involve several kinds of waste, and the SMED
---------------------- technique was developed to eliminate waste, and to reduce the set-up time from
hours to minutes. SMED also has an interesting history of development.
----------------------
Dr. Shigeo Shingo, an industrial engineer with the Toyota company, was
----------------------
assigned the task of reducing the set up time, of a heavy press die change, from
---------------------- four hours to/or below a set-up of 2 hours for a similar set-up, at a German
Volkswagen plant. Dr. Shingo successfully completed his assignment, and
---------------------- initially reduced Toyota’s set-up time, from four hours to one and half hours.
---------------------- However, Dr. Shingo did not stop at that, but continued to work on the
said project. The breakthrough came with a simple but brilliant idea, that the
----------------------
set-up may be performed outside the press, as a parallel operation and swing the
---------------------- set-up into the press when required. All his efforts, finally led to the reduction
of the set-up time from four hours to three minutes. The concept so nurtured
---------------------- by him came to be finally known as SMED, and the acronym meant “Single
---------------------- Minute Exchange of Dies”, meaning that all die changes should be completed
in a single digit number of minutes (such as 9 minutes, 5 minutes, 3 minutes).
----------------------
Reduction in the set up time results in the following benefits:
----------------------
●● Reduction in batch sizes.
---------------------- ●● Lowering of manufacturing lead times
---------------------- ●● Drop in inventory levels.
---------------------- ●● Reduction in set-up scrap.
---------------------- ●● Increase in machine efficiency.

---------------------- ●● Increased flexibility to respond to quick changes.

---------------------- The firm desiring to reduce change-over time, may not achieve its target
figure in one attempt, but after a series of improvements. From its current level of
---------------------- set up time, of double digits, on a particular machine, it may be able to reduce to
single digit hours, and subsequently on the same machine, from single digit hours
----------------------
to double digit minutes, still later, from double digit minutes to single-digit ones,
---------------------- and finally in a few extreme situations to a one touch change over. This step-by-step
process of set-up time reduction, is pictorially shown in Figure 5.1 below:
----------------------

----------------------

100 Techniques for Operations Efficiency

 Setup time Notes
Comp. Study Remove Replace Install tools Sample Adjust Sample ----------------------
A blue existing tools at the for the new run run
run print crib store job ----------------------

----------------------
Elimination of sample runs,
inspection, adjustments. ----------------------

Run for SETUP Run for ----------------------

component component
A B ----------------------

----------------------
Repeated PDCA/
SDCA cycles
----------------------

Component Component
----------------------
A B
----------------------

Setup ----------------------

Fig 5.1: Step-by-step Reduction of Set-up Time ----------------------

----------------------
Check your Progress 1 ----------------------

True / False ----------------------

1. SMED technique was developed to eliminate waste of time. ----------------------

2. Single Minute Exchange of Dies”, meaning that all die changes ----------------------
should be completed with in a single minute.
----------------------

5.2 STAGES OF SMED ----------------------

SMED has four stages: ----------------------

1. Preliminary stage: No distinction between internal and external set-ups ----------------------
2. First stage: Separate internal and external set-ups. ----------------------
3. Second stage: Convert internal and external set-ups.
----------------------
4. Third stage: Streamline both, internal and external set-ups.
----------------------
1. Preliminary stage (set-up analysis)
Preliminary stage is the initial stage wherein the analyst acquaints ----------------------
himself, with the various activities of the machine set-up. Actual shop
----------------------
floor conditions are studied in depth, through a production study of a few
set-ups, with the help of a stop watch or a video camera. ----------------------

SMED for Set-up Time Reduction 101

 Notes The set-up analysis has four main steps:
a) Video shooting the entire set-up operation, focusing on hand, eye
----------------------
and body movements of the person doing the set-up.
---------------------- b) Show the video to the set up people and other members to explain
what he or she is shown doing.
----------------------
c) Study the video in detail, noting the time and the motions involved,
---------------------- in each step of the set-up.
---------------------- d) Utilise the information collected above to-

----------------------  prepare a master list of the set-up tasks (or elements).

 estimate the time of each set up task. Use the latest
---------------------- measurement technique such as MOST (Maynard Operation
---------------------- Sequence Technique) to estimate time.
 Identify major mudas (wastes) observed during set-up.
----------------------
 get a mental assessment of the areas of improvement.
----------------------
A traditional set-up generally has a lot of waste built into it. For example,
----------------------  Finished goods are moved after the previous lot has been completed,
---------------------- and the machine has been turned off.
Dies, jigs, fixtures, tools, gauges, etc. are delivered after the machine
----------------------
set-up has begun.
----------------------  Defects in dies and tools are discovered during trial runs, and
---------------------- adjustments cause an extended time for the set-up.
 Missing bolts, nuts, clamping blocks of the correct thickness are
---------------------- organised during the set-up which causes delays.
----------------------  Necessary operations such as the cleaning of fixtures, re-threading
of clamping bolts, etc. may have to be done, during the machine
----------------------
set-up as defects can be observed.
---------------------- For time consuming set-ups, it is desirable to observe more than one
---------------------- machine set-up, and assign the task to a small team (team of 2-3 members).
2. Separate the internal and external set-ups
----------------------
Most of problems of time consuming set-up operations are due to the
---------------------- failure to distinguish between the internal and external set-ups. Usually,
both types are mixed and treated as an internal set-up. Therefore, the first
----------------------
step in set-up time operation studies, is to time each set-up task, review
---------------------- tasks and separate internal and external set-up tasks.

---------------------- Internal set-ups are those set-up tasks, (or operations) which require
machines to be stopped. For example, operations such as mounting or
---------------------- removing dies, (or placing / removing a fixture) can be performed only
when the machine is stopped.
----------------------

102 Techniques for Operations Efficiency

 External set-ups are those set-up operations, which can be carried out Notes
when the machine is running. For example dies, moulds, tools, jigs, gauges
and parts to be processed, can be transported to the machine before the ----------------------
machine is shut down for a change over. Old tools and parts can be put
----------------------
away after the set-up, till the new job is completed and the machine is
started. ----------------------
A systematic study of identification and separation of the external set-up ----------------------
tasks, result in 30% to 50% reduction in set-up time.
Table 5.1 shows the separation of internal and external set-up. ----------------------

Table 5.1 ----------------------

Separation of the Internal and External Set-up Tasks
----------------------
External set-up tasks Internal set-up tasks
----------------------
1. Preparation of dies, fixtures 1. Clamping and declamping of dies
----------------------
2. Transfer of dies 2. Adjustment of height, pressure etc.
3. Test run ----------------------

Our initial goal should be to reduce the total set-up time to be equal to ----------------------
the internal set-up time.
----------------------
3. Convert the internal set-up into the external set-up
----------------------
Since the external tasks, unlike internal ones can be executed while the
machine is still operating, transformation of internal tasks to external ----------------------
tasks, directly reduces the set-up time, by an amount equal to the time ----------------------
of internal tasks so converted. This step involves taking a fresh look at
the tasks of the internal set-up, with a view to make, some of the not so ----------------------
obvious internal set-up tasks external. The conversion of the internal set
----------------------
up tasks into the external set-up tasks, may require a modification of the
existing work practices and machines. ----------------------
An interesting case was quoted for the set-up operations, wherein the ----------------------
set-up for the new job was done on an extra metal table supported on
wheels, while the old job was still running, and the set-up on the table ----------------------
was swapped for the internal set-up on completion of the production of ----------------------
the previous lot.
----------------------
In general, for reducing the internal set-up time, existence of the following
possibilities should be explored: ----------------------
a) Preparation of tools/ dies/ moulds as an off-line activity ----------------------
Set up time can be reduced by preparing tools/dies/moulds to their
----------------------
required condition, as an off-line activity. (for example, preheating
of dies for die cast machines and plastic injection machines). Two ----------------------
examples as under can be cited in this regard:
----------------------

SMED for Set-up Time Reduction 103

 Notes Before After
---------------------- 1. Dies at a die casting machine 1. A special rack was built and
---------------------- were mounted on the machines, installed at the side of the die
in a cold condition which were casting machine. Dies to be used
---------------------- gradually heated to the appropriate in the following operation, were
temperature, by injecting molten preheated by the heat dissipating
---------------------- plastic / metal. This trial run not from the oven, this reduced the
---------------------- only formed a part of the internal set-up time to 30 minutes. A
set-up, but also caused initial similar concept was used in a
---------------------- castings to be defective and needed plastic company, wherein the
to be remoulded. moulds, for a plastic moulding
---------------------- machine were preheated, by
---------------------- passing warm water through
the coolant hose.
----------------------
2. In a wire drawing machine, 2. The changing of spools was
---------------------- the internal set-up operation eliminated, by connecting the end
of changing the spools used to of the wire being processed, to
----------------------
consume almost 20 minutes. the start of the wire of the next
---------------------- spool.

---------------------- b) Elimination of adjustments

---------------------- Adjustments consume almost 40 to 50 percent of total set-up time,

and therefore, elimination of adjustments is the key to set-up time
---------------------- reduction.
---------------------- Few examples of elimination of adjustments are:
----------------------  Eliminating shut height adjustment in presses (by placing
blocks of suitable length under the die to raise its height to a
----------------------
standardised height).
----------------------
 Eliminating clamping height adjustments (by fitting clamping
---------------------- blocks of required height on the attachment plates of the dies).
----------------------  Eliminating centering of tools.
----------------------  Pre-setting of the tool thereby eliminating, the initial rejection
---------------------- and reducing the set-up time.

----------------------

----------------------

----------------------

----------------------

104 Techniques for Operations Efficiency

 Notes

----------------------

400 ----------------------

60 40 ----------------------
100
100 60
40 ----------------------

Clamping Height Block for Standardising ----------------------

Standardization Die Height
----------------------
Fig. 5.2 : Fitting a Block of 60 mm Fig. 5.3 : Eliminating Adjustment by
to Standardise Clamping Standardising Die Height ----------------------
Height of 100 mm (e.g. die height 400 mm)
----------------------
4. Streamline the internal and external set-ups
----------------------
Streamlining means reducing both, the internal and external set-ups. A lot
many innovative ideas and devices have been developed, to speed up the ----------------------
set-up operation.
----------------------
a) Reduce time of internal set-up
----------------------
The reduction in the time of the internal set-up tasks can be achieved,
by the following methods: ----------------------
i) Parallel operations ----------------------
Some of the set-up operations, if done simultaneously, can
----------------------
result in a substantial reduction in the set up. For example:
 Simultaneous clamping and unclamping at both, the ----------------------
front and the rear of a press by more than one worker.
----------------------
ii) Use dies with standardised external dimensions.
----------------------
iii) Provide stops that locate the new dies at the appropriate spot.
iv) Reduce clamping and declamping time. ----------------------

The following actions are desirable: ----------------------

 Standardise clamping bolts / screws (reduce variety of bolts) ----------------------
 Standardise bolt heads, threads, etc.
----------------------
 Cut off un-necessary threads to reduce the time of insertion /
removal of bolts / screws. ----------------------

 Cut T-slots on the bolster plates and rams, to enable the use of ----------------------
T-bolts (T- bolts take much less time than ordinary bolts).
----------------------
 Use a U-shaped washer, between the nut and the job to achieve
single turn clamping / declamping. ----------------------

----------------------

SMED for Set-up Time Reduction 105

 Notes  Use quick clamping devices (for example, springs, cams,
clamps, wedges, taper pins, etc.) wherein a single motion is
---------------------- sufficient to clamp the objects.
----------------------  Use magnetism and vacuum suction for clamping jobs (for
example, magnetic chucks and tables).
----------------------
 Employ inter-locking methods, to eliminate the use of nuts
---------------------- and bolts.
v) Analyse the magnitude and direction of the forces during
----------------------
machining to rationalize the methods of clamping and the
---------------------- number of bolts.(e.g. lower die attached to the bed requires a
lesser number of bolts than the upper die attached to the ram).
----------------------
vi) Use mechanical aids (for example, jib crane, hydraulic scissor
---------------------- etc.) for the installation of heavier fixtures.

---------------------- vii) Use standardised plates for attaching fixtures to them, to be

quickly mounted on a machine when it is stopped.
---------------------- b) Reduce time of external set-up
---------------------- The reduction in the time of the external set-up, however, does not
contribute directly to the set-up time reduction, but contributes to the
----------------------
overall productivity of the system. Typical actions to reduce the time
---------------------- of the external set-up tasks are-
 Improving work aids (dies, fixtures etc.) and positioning
----------------------
methods.
----------------------  Improving material flow methods.
---------------------- Work place organisation is the key to reducing the time of the set-
up tasks. Statistics reveal that a lot of time is lost, on account of
---------------------- looking for tools, dies and fixtures. Therefore, designating areas for
---------------------- tools, and assigning a location number to each fixture etc., are the
basic steps for set-up time reduction.
---------------------- Time is also lost in transporting tools from the storage area to the
---------------------- machine. Storage of fixtures/dies should be organised, based on
their frequency of usage. Frequently used dies/fixtures should be
---------------------- stored close to the machines.
---------------------- Mechanisation and improvement are the two other constituents
of streamlining. Mechanisation is thought of only after the set up
---------------------- process has been working manually without any problem. This is
because automation cannot correct the basic faults of an improper
----------------------
set-up process.
---------------------- Typical examples on mechanisation are
----------------------  Mechanisation of the die movement using fork-lifts / cranes.

----------------------  Using moving bolsters (using two bolsters makes it possible

106 Techniques for Operations Efficiency

 to conduct the activities such as centering and clamping as a Notes
totally external set-up).
----------------------
 Using roller die carts or specially designed hand push carts,
or railed carts with roller conveyors on top, to reduce the need ----------------------
for forklifts or cranes.
----------------------
And finally, the organisation must improve operational training
and prepare teams, to deal with the set-up problems as they occur ----------------------
(undertake Kaizen projects to solve set-up problems).
----------------------
Fig. 5.4 gives a schematic diagram of the activities involved in the
four stages of SMED. ----------------------
Table 5.2 : Summarises the steps involved. ----------------------
Table 5.2
----------------------
The steps for Set up Time Reduction
----------------------
Step 1 : Select a machine / facility for set-up time reduction.
----------------------
Step 2 : Constitute a team and get the whole hearted co-operation of
the union, and support from the top management. ----------------------
Step 3 : Conduct a one day lecture cum workshop session to educate ----------------------
and train all the team members in the principles and in the
concept of SMED. ----------------------
Step 4 : Record the existing method of the set-up change on a suitable ----------------------
chart (e.g. multiple activity chart).
----------------------
Step 5 : Analyse the present method, segregate all activities into the
internal and the external set-up. ----------------------
Step 6 : Convert the internal set-up to the external set-up
----------------------
Step 7 : Streamline the internal and the external set-up.
----------------------
Step 8 : Eliminate adjustments.
Step 9 : Document the new method. ----------------------

Step 10 : Implement the proposed method. ----------------------

----------------------
Check your Progress 2 ----------------------

Fill in the blanks. ----------------------

1. There are _______ types of set ups. ----------------------

2. For maximum benefits, _______ set up should be converted into ----------------------
_______ set up.
----------------------

----------------------

SMED for Set-up Time Reduction 107

 Notes
Activity 1
----------------------

---------------------- 1. What is SMED?

2. What are the stages of SMED?
----------------------

----------------------
5.3 THE BENEFITS OF SMED
----------------------
The Benefits of SMED are as follows :
----------------------
1) helps to reduce the set-up time significantly.
----------------------
2) achieves inventory reduction of finished goods and work-in-process
---------------------- (WIP).
---------------------- 3) improves productivity due to a high utilisation of machines.
4) improves quality by eliminating the set-up elements such as adjustments
----------------------
and trial runs.
---------------------- 5) results in safer operations as every operator’s task is clearly specified,
---------------------- which also reduces the chances of an accident due to confusion.
6) leads to better and good housekeeping, as the number of tools required
----------------------
reduces, due to standardisation.
---------------------- 7) leads to lower skill level requirements, due to the standardisation of
---------------------- tooling, elimination of adjustments and trial runs.
8) cuts down waiting as the reduced set-up time makes it possible to run
----------------------
smaller lots and reduce the delay.
---------------------- 9) causes attitudinal changes in the people exposed to SMED. Employees
---------------------- get highly motivated on achieving a set-up time which was initially
considered almost impossible.
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

108 Techniques for Operations Efficiency

 Notes

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

Fig. 5.4: Schematic Diagram of Key Activities of the Four Stages of ----------------------
SMED
----------------------
5.4 TOOLS HELPFUL FOR SET-UP TIME REDUCTION ----------------------

1) Cross functional team (CFT) consisting of operators, supervisors, ----------------------

maintenance crew and quality assurance personnel, usually provides
better results than a one man team. ----------------------

2) Videotape recording the set-up operation and its subsequent analysis, is ----------------------
usually helpful in reviewing set-up operations objectively.
----------------------

SMED for Set-up Time Reduction 109

 Notes 3) Demonstrating set-up operations to other people is an excellent way to
motivate those involved with the set-up time reduction projects.
----------------------
4) Production study of a set-up operation often provides the necessary
---------------------- clues for improvement.
5) Visual display of set-up time achievements on the shop floor, usually
----------------------
generate an atmosphere for healthy internal competition.
---------------------- 6) PERT (Program Evaluation and Review Technique) is helpful in
reducing the set-up time of an operation. The technique
----------------------
 helps to develop parallel operations.
----------------------
 identify a critical path for the internal set-up
----------------------  helps to focus efforts on critical tasks
---------------------- The technique involves listing of the set-up tasks, establishing a
technological relationship between tasks, drawing of an arrow diagram
----------------------
called the network diagram, measuring and entering the activity time,
---------------------- identifying a critical path, focusing efforts to make the critical path shorter
(i.e. reducing set-up time).
----------------------

---------------------- Activity 2

---------------------- 1. What are the benefits of SMED?

---------------------- 2. List the tools used for setup time reduction.
----------------------

---------------------- Summary
---------------------- ●● Set-up time is the time required to prepare a machine or a group of
machines, to change over from one job to another and SMED (acronym
---------------------- meaning Single Minute Exchange of Dies) is the tool which helps to
---------------------- reduce the set-up time. SMED implies that die changes (equipment set-
up in general) should be completed in a single digit number of minutes.
---------------------- ●● SMED has four stages : (i) Preliminary stage, (2) Separating the internal
---------------------- set-ups into the external set-ups, (3) Converting the internal set-ups
to the external set-up, and (4) Streamlining both the internal and the
---------------------- external set-ups. Tools helpful for set-up time reduction are : Cross
Functional Team (CFT) Videotape Recording, Set-up demonstrations,
---------------------- Production study, Visual display of the set-up time achievements, and
---------------------- PERT/CPM.

----------------------

----------------------

----------------------

110 Techniques for Operations Efficiency

 Keywords Notes

----------------------
●● Set up time: It is the time required to prepare a machine or a group of
machines to change over from one job to another. ----------------------
●● Single Minute Exchange of Dies SMED: It suggests that all die changes,
should be completed in a single digit number of minutes (such as 9 ----------------------
minutes, 5 minutes, 3 minutes). ----------------------

Self-Assessment Questions ----------------------

----------------------
1. What constitutes a machine set-up?
2. How does an internal set-up differ from an external set-up? How are ----------------------
internal set-up tasks converted into external set-up tasks? ----------------------
3. What are the steps to reduce the set-up time of an operation?
----------------------
4. What is SMED? How is it used? What are its advantages?
----------------------
Answers to Check your Progress ----------------------
Check your progress 1 ----------------------
True / False ----------------------
1. True
----------------------
2. False
----------------------
Check your Progress 2
Fill in the blanks. ----------------------

1. There are two types of set ups. ----------------------

2. For maximum benefits, internal set up should be converted into external ----------------------
set up.
----------------------
Suggested Reading ----------------------

1. Shingo, Shigeo (1985). A Revolution in Manufacturing: The SMED ----------------------

System. Stamford, CT: Productivity Pres. pp. xxii. ISBN 0-915299-03-8.
----------------------
2. Theory of Constraints, Eliyahu Goldratt, North River Press, 1990, p 40
----------------------
3. A revolution in manufacturing: The SMED system, Shigeo Shingo,
Productivity Press, 1985, p 113 ----------------------
4. A study of the Toyota Production System, Shigeo Shingo, Productivity
----------------------
Press, 1989, p 47
----------------------

----------------------

SMED for Set-up Time Reduction 111

 Notes

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

112 Techniques for Operations Efficiency

MUDA (Waste) Elimination
UNIT

6
Structure:

6.1 Introduction
6.2 Types of MUDA
6.3 MUDA in the Office
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

MUDA (Waste) Elimination 113

 Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
●● State the meaning and significance of MUDA.
---------------------- ●● List types of MUDAS
---------------------- ●● Identify the various reasons for different types of MUDAS
---------------------- ●● Determine ways to eliminate MUDAS

----------------------
6.1 INTRODUCTION
----------------------
MUDA is a Japanese word for waste, and waste means anything (or any
---------------------- activity) which does not add value to the product.
----------------------  A worker looking, even though affectionately, at an automatic machine
does not add any value, while the machine does (MUDA of Waiting).
----------------------
 A maintenance engineer who walks over a long distance with a tool in his
---------------------- hand, does not add any value (value is added when he uses the tool to fix
the machine) (MUDA of Transport).
----------------------
 Piles of material lying in racks in the stores, do not add any value but add
---------------------- to the cost (MUDA of Stock).
 A material handler while pushing a heavy trolley full of parts, even though
----------------------
he is perspiring, adds no value (MUDA of Transport).
----------------------  An assembly operator, overstretching his hand to pick up parts for
---------------------- assembly, adds no value, but causes fatigue to himself (MUDA of
Motion).
----------------------
 A welding operation, performed to join metal parts of an assembly
---------------------- constituent, does add value, but the welding operation performed to
repair/weld a blowhole in the job is a non-value added activity (MUDA
---------------------- of Processing).
---------------------- Waste (MUDA) is a major element of any company’s product cost and
must be continually identified and eliminated from its (company’s) processes,
---------------------- to stay competitive.
---------------------- Since labour cost is hardly 8-10% of total cost (which also is on the
decline due to recent advances in manufacturing technologies), we to also look
---------------------- at various other hidden wastages, besides human waste, to improve productivity.
----------------------
6.2 TYPES OF MUDA
----------------------
There are seven types of Muda in manufacturing :
----------------------
1. MUDA of Over Production
---------------------- 2. MUDA of Stock (inventory)

114 Techniques for Operations Efficiency

3. MUDA of Waiting Notes
4. MUDA of Transport
----------------------
5. MUDA of Defects
----------------------
6. MUDA of Motion
7. MUDA of Processing ----------------------

Let us now see the details of each type. ----------------------

1. MUDA of Over-Production ----------------------
Products produced can be placed into either of the following groups :
----------------------
(i) Product(s) required to satisfy customer needs (Necessary production).
----------------------
(ii) Product(s) not required immediately (Over-production).
“Necessary production” is the good part of production, since it gets ----------------------
converted into money. The other part (i.e. over-production) stays in the shelves, ----------------------
creates other mudas and makes the company lose money (Fig. 6.1)
Causes of Over-Production ----------------------

1. Production ahead of customers’ schedule ----------------------

2. Production to build-up stocks ----------------------
3. Production to keep employees busy
----------------------
4. Production to utilize excess capacity
----------------------
5. Production to meet contingencies (fear of rejection during production)
6. Production against advance planning ----------------------

7. Bulk production to reduce set-up time ----------------------

8. Excess production due to an imbalance in the production line ----------------------
9. Unnecessary production to show (unreal / fictitious) higher machine ----------------------
utilization (or show lower manufacturing cost).
Disadvantages of Over-Production ----------------------
1. Additional warehouses ----------------------
2. Employment of people ----------------------
3. More machines
----------------------
4. Unnecessary transportation
5. Money lock-up / block-up ----------------------
6. Raw material purchases ----------------------
7. Acquisition of handling equipment ----------------------
8. Obsolescence / Damages
----------------------
9. Cover for other problems (machine breakdown, poor quality of vendors,
rejections, operator’s absenteeism). ----------------------

MUDA (Waste) Elimination 115

 Notes Strategies to eliminate MUDA of Over-Production, without affecting the
customer’s service levels
----------------------
1. Firm delivery requirement from marketing.
---------------------- 2. Strong production planning and control.
---------------------- 3. Smaller lot sizes.

---------------------- 4. Set-up time reduction (SMED).

5. Improve supplier’s reliability (supplier’s partnership).
----------------------
6. Quality at source.
----------------------
Fig. 6.1 gives the schematic diagram of the muda of over-production.
---------------------- 2. MUDA of Stock (Inventory)
---------------------- Inventory comprises of finished goods, semi-finished products, or parts
and supplies. Excess inventory is a real waste, as it does not add any value, but
----------------------
adds to the cost by
---------------------- ●● locking up the company’s funds on which the company pays an interest.
---------------------- ●● occupying floor space.
●● r equiring additional equipment and facilities such as storage racks,
----------------------
cupboards, fork-lifts, pallets etc.
---------------------- ●● f orcing the company to employ additional manpower for operation
---------------------- and administration of warehouses, material handlers, fork-lift / crane
operators, stores assistants, etc.
---------------------- ●● taking insurance cover for stock
---------------------- Some quantity in stock of each regular item is desirable, considering
procurement / manufacturing lead time, but excess quantity which stays in
---------------------- inventory and gathers dust adds no value. Infact, the longer they stay on the
---------------------- shelf, the more they add to the cost. Besides, quality deteriorates over time.
They could also be destroyed in the event of a fire.
----------------------
A more serious drawback than the financial loss of excess inventory, is
---------------------- that, problems like poor quality, machine breakdowns, supplier’s unreliability
(poor quality, delivery failures etc.) unreliability of transport, operator’s
---------------------- absenteeism etc., do not attract the management’s attention. As rightly stated
---------------------- “When the water is deep, you can’t see the rocks.” Similarly, when inventory is
high, nobody gets serious about solving chronic problems of poor quality, bad
---------------------- delivery, absenteeism and machine breakdowns.”
---------------------- Lower inventory thus forces us to deal with problems, no sooner or later
as they surface. And this is what happens in a just-in-time production system.
---------------------- As the inventory goes down and finally reaches the one-piece flow line, the
---------------------- consequences of the problems become serious and the problems get addressed
immediately. Kaizen in such situations, virtually becomes a mandatory daily
---------------------- activity (Fig. 6.2).

116 Techniques for Operations Efficiency

 PRODUCTION Notes

----------------------

----------------------

----------------------
Required to satisfy Not required
customers immediately (Over ----------------------
(Necessary Production) production)
----------------------

----------------------

Production Production Production Production ----------------------

Production to utilise
ahead of to to keep to meet
customers’ build up people contingencies
excess ----------------------
schedule stocks busy capacity
----------------------
----------------------
Creates MUDA
----------------------
Employment Raw material Moving Additional Acquisition
of people purchase materials ware house of handling ----------------------
equipment

----------------------

----------------------

Gets money for Makes company loose ----------------------

the company money
----------------------
Fig. 6.1: Schematic Diagram Illustrating MUDA of Over Production ----------------------
MUDA OF INVENTORY ----------------------
Problem of Excess
Inventory ----------------------

----------------------
Buffer Stock Extend ----------------------
reduced JIT
----------------------

----------------------
Problem Problems
solved exposed
----------------------

Need for Kaizen

----------------------
identification
----------------------
Fig. 6.2: Reduction in Buffer Stock Necessary for Solving Problems ----------------------

MUDA (Waste) Elimination 117

 Notes Causes of MUDA of Stock
Firms generally accumulate more raw materials than required for the
----------------------
following reasons:
----------------------
1. To take advantage of low prices.
---------------------- 2. To cover risk of non-supply when required.
---------------------- 3. Scheduling errors.
---------------------- 4. Errors in indenting.
---------------------- 5. Longer procurement lead time.

---------------------- 6. Poor control on quantity at receipt stage (suppliers delivering more than
schedule, which are subsequently amended to accommodate them).
----------------------
7. Accumulation of obsolete stock which is not disposed of, to make the
---------------------- balance sheet look black.
---------------------- 8. Production / procurement against faulty forecasts

---------------------- 9. Over-production to keep manufacturing facilities busy

---------------------- Strategies to eliminate MUDA of Stock

1. Dispose of obsolete materials to save space and to avoid confusion.
----------------------
2. Do not produce items ahead of the customer’s delivery requirements.
----------------------
3. Do not manufacture products in excess of the customer’s requirements
---------------------- (specific orders).
---------------------- 4. Do not produce parts in excess of what is required by the subsequent
process.
----------------------
5. Procure raw materials/components/tools/consumables in small lots.
----------------------
6. Correct inventory levels on a continual basis.
----------------------
7. Constitute cross functional teams, (consisting of persons from finance,
---------------------- materials, stores, planning and quality assurance departments) to study
the problems of overstocking.
----------------------
8. Shorten manufacturing lead time and procurement lead time
----------------------
9. Introduce VMI (vendor managed inventory) system for C-class.
----------------------
10. Implement SMED to reduce the setup time.
----------------------
Fig. 6.3 gives a schematic diagram on MUDA of stock.
----------------------

----------------------

----------------------

118 Techniques for Operations Efficiency

 STOCK / INVENTORY Notes

----------------------
GOOD INVENTORY BAD INVENTORY ----------------------

----------------------
Stocks held to ----------------------
- Satisfy consumption
during procurement ----------------------
lead time
- Provide faster delivery ----------------------
to customers
- Economise on buying ----------------------
cost
----------------------
Conduct Kaizen to ----------------------
reduce internal and
external lead time ----------------------
Surplus stock Buffer stock Work-in- Vendor Goods in
transit
----------------------
- Excess (Delay in progress stock (i.e.,
buying delivery, (Inventory company’s (GIT) ----------------------
- Wrong increase in banks to stock at – Transporter
buying consumption, utilise excess vendors’ ----------------------
transportation capacity, high plant) – Under
- Business receipt and
constraints delays, etc. setup time) ----------------------
inspection

----------------------
Constitute cross functional
team to minimise inventory ----------------------

----------------------
END
----------------------
Fig. 6.3: Schematic Diagram on MUDA of Stock
----------------------
3. MUDA of Transport
Transport MUDA is a highly visible form of waste. Though transport is ----------------------
an essential part of operations, but moving products/materials adds no value
----------------------
to the parts or products. Unnecessary transportation creates the need for more
storage space, more equipment and more workers. The common ills associated ----------------------
with transport are-
1. Excess manpower. ----------------------
2. Handling damages. ----------------------
3. Longer manufacturing cycle time.
----------------------
4. Accidents while handling.
5. Excessive cost of material handling. ----------------------
6. Fatigue / drudgery. ----------------------

MUDA (Waste) Elimination 119

 Notes Masaaki Imai recommends, “whenever we notice a conveyor in gemba
(workplace), our first question should be, can we eliminate it. The best thing a
---------------------- company can do with its conveyors is to sell them to its competitor. Better yet,
it should wrap them up in a gift package and send them to the competitor, free
----------------------
of charge.”
---------------------- Causes of MUDA of Transport
---------------------- 1. Faulty layout involving cross traffic and backtracking.
---------------------- 2. Work places spread over a large area.

---------------------- 3. Over-production.
4. Lack of proper material handling equipment.
----------------------
5. Insufficient production capacity requiring sub-contract of bottleneck
---------------------- operations.
---------------------- 6. Excessive rejection/rework requiring re-routing of parts.

---------------------- 7. Multi-storeyed storage of material.

8. Bad housekeeping.
----------------------
Tools to identify MUDA of Transport
----------------------
1. Flow charts (method study)
----------------------
2. Flow / string diagram
---------------------- Techniques for MUDA of Transport
---------------------- 1. Systematic plant layout (cellular layout).
---------------------- 2. Method study.
3. 5-S technique.
----------------------
Analyse and implement the following for immediate results –
----------------------
(i) Store material as close to the point of use, as possible.
----------------------
(ii) Avoid transportation over long distances.
---------------------- (iii) Eliminate re-handling.
---------------------- (iv) Minimise the need to move materials/parts from main stores to sub-stores.
---------------------- (v) Automat processes to reduce the need for transportation.

---------------------- (vi) Avoid manual handling of heavy materials.

(vii) Improve material flow.
----------------------
(viii) Avoid over-production.
----------------------
(ix) Improve housekeeping (Implement the 5-S technique).
---------------------- Self inspection by suppliers (brought out parts and vendored out items) and
---------------------- operators, (works made parts) can eliminate MUDA of transport significantly.

120 Techniques for Operations Efficiency

 Self inspection by the suppliers in case of brought out parts/vendored Notes
out items, and self- inspection by the operators in case of works-made parts,
can eliminate the MUDA of transport, necessary to move material on receipt ----------------------
and parts after production to the inspection bay.
----------------------
Wherever self inspection is not possible, the inspection bay should be located
closer to the receiving stores for purchased items, and on the shop floor to ----------------------
eliminate the need to move materials/parts for centralised inspection. Inspection
----------------------
of semi-finished parts and finished parts should be a decentralised activity
conducted on the shop floor to avoid movement from and/to a centralised place ----------------------
for inspection.
----------------------
4. MUDA of Defects
Defects imply rework or rejection. Research confirms that 20 to 30% of ----------------------
a manufacturing company’s (30% to 50% in case of a service company) gross
----------------------
revenues, are spent on correcting mistakes, doing things over, checking and
rechecking and on things which do not add value. ----------------------
One can get a feel of the amount of waste in a company’s operations, ----------------------
created by this MUDA monster, by looking at all the activities beginning with
the words “re”, namely, re-work, re-test, re-audit, re-do, re-verify, re-check, re- ----------------------
write, re-submit etc.
----------------------
Typical indicators of the MUDA of “Defects” are
●● rework and reprocessing. ----------------------

●● rejections. ----------------------
●● poor material yield. ----------------------
●● customer’s returns.
----------------------
●● products/components and materials write-off as a result of design reviews.
●● stock write-offs due to the problem of shelf life. ----------------------
●● customer’s complaints. ----------------------
●● visits to the customer’s plants to attend to the quality problems.
----------------------
●● free replacements.
Defects are costlier since not only do they represent loss of material but ----------------------
they also include- ----------------------
●● value added to that part before it arrived at the work station.
----------------------
●● loss due to break in the production cycle.
●● waiting time cost of subsequent work stations. ----------------------

The effect of the MUDA is more severe, if the defect is not discovered ----------------------
until late due to-
----------------------
●● additional work to disassemble.
●● wear and tear of parts while disassembling. ----------------------
●● expediting cost due to delayed schedules. ----------------------

MUDA (Waste) Elimination 121

 Notes These losses are incurred over and above the loss already stated in the
first situation.
----------------------
The worst thing that can happen is , if the defect goes unnoticed throughout
---------------------- the manufacturing process, and the defect is discovered by the customer. The
additional costs then are–
----------------------
●● warranty costs
---------------------- ●● loss of future business
---------------------- ●● loss of customer
●● loss of reputation
----------------------
MUDA of defects can also be serious, when high speed automated
---------------------- machines are involved, as a large quantity of products can get rejected, before
the problem is identified and resolved.
----------------------
Causes of MUDA of Defects
----------------------
The typical causes of defects are
---------------------- 1. Incorrect product design / design errors
---------------------- 2. Defective materials

---------------------- 3. Defective toolings

4. Inadequate maintenance of machines
----------------------
5. Inefficient processes
----------------------
6. Uncalibrated instruments
---------------------- 7. Poorly trained employees
---------------------- 8. Lack of process control

---------------------- 9. Operator controlled causes

(a) Faulty operation
----------------------
(b) Faulty setting
----------------------
(c) Careless working
---------------------- 10. Transportation damages
---------------------- 11. Poor storage

---------------------- 12. Storage over long time

13. Lack of 5-S.
----------------------
Strategies to eliminate MUDA of Defects
----------------------
●● Design reviews/design improvements
---------------------- ●● Developing better processes
---------------------- ●● Training of employees
●● Maintenance of the machines and equipments.
----------------------

122 Techniques for Operations Efficiency

To reduce defects Notes
●● go to the Gemba (workplace) where rework is taking place.
----------------------
●● document the causes.
●● find the root causes for the defects. ----------------------
●● initiate corrective and preventive actions to eliminate defects. ----------------------
5. MUDA of Waiting ----------------------
MUDA of waiting occurs when an operator’s hands are idle (i.e. worker
or machine is not performing his/its assigned job). MUDA of waiting (workers ----------------------
and machine idle) occurs on account of– ----------------------
(a) Interrupted flow of work from the preceding operation which may be
due to– ----------------------
●● line imbalance. ----------------------
●● lack of parts.
----------------------
●● machine breakdown.
●● operator’s temporary absence from the place of work. ----------------------
(b) Unoccupied time of the operator during the period the machine performs ----------------------
the value added activity (i.e. operator simply monitors the machine as
machine works on its auto-cycle). ----------------------
(c) Lack of instructions from the supervisor on the next job, when the ----------------------
operator has completed the one in hand.
----------------------
(d) Delay in the movement of raw materials from the stores, work
distribution centre or the machine preceding it (for example, delay in ----------------------
issue of materials for assembly operations).
----------------------
(e) Lack of sufficient work or deployment of excess manpower.
(f) Faulty allocation of work (imbalanced work allocation) among the ----------------------
members of the team. ----------------------
MUDA due to reasons (a) to (e) are easy to detect. It is more difficult to
----------------------
detect the MUDA due to waiting during assembly and machine processing.
Disadvantages of MUDA of Waiting ----------------------
●● Poor utilisation of men and machines ----------------------
●● Wastage of talent
----------------------
●● Low morale
●● Excess manpower ----------------------
Tools and Techniques to identify MUDA of Waiting ----------------------
(i) Kaizen
----------------------
(ii) Method study
----------------------
(Multiple Activity Chart to identify and measure MUDA followed by a
critical examination to eliminate MUDA) ----------------------

MUDA (Waste) Elimination 123

 Notes 6. MUDA of Motion
A workman while performing a task makes use of a number of motions
----------------------
(or movements). The scrutiny of these motions may reveal that some of these
---------------------- motions
●● are unnecessary and can be eliminated
----------------------
●● can be combined / modified by changing their sequences.
----------------------
●● can be simplified by effecting changes in the work bench layout
---------------------- ●● can be performed efficiently by the other parts of the body.
---------------------- In the absence of the above mentioned actions, the workman makes
motions which do not add any value. Typical examples are–
----------------------
●● Walking to reach objects / parts / tools.
---------------------- ●● Lifting or carrying objects.
---------------------- ●● Picking up and putting down a work piece.
●● Transferring objects from one hand to another.
----------------------
●● Searching to find the required object.
----------------------
While dealing with MUDA of motion, it is recommended to get rid
---------------------- of operations that are difficult, dirty and / or dangerous (3Ds). Such actions
include–
----------------------
●● Work that makes an employee move over long distances.
---------------------- ●● Work that involves physical strain (i.e. use of undue physical effort).
---------------------- ●● ork that causes mental strain (for example, work that needs the
W
memorising of a lot of details).
----------------------
●● Work that involves search or unnecessary sorting.
----------------------
Tools and techniques to eliminate MUDA of Motion
---------------------- (i) Improvement in layout
---------------------- Lifting or carrying a heavy object is undesirable on two counts, firstly,
because it represents MUDA and second, it causes physical exertion.
---------------------- The need for the operator to carry a heavy object, can be eliminated by
---------------------- rearranging the work place.
(ii) Motion economy principles
----------------------
Motions of the hands / legs can be reduced, and some of them can be
---------------------- eliminated, by rearranging the parts on the work table, and the development
---------------------- of tools, jigs and fixtures.
(iii) Effective supervision
----------------------
Finding workmen busy with their jobs may give a supervisor satisfaction
---------------------- but it may do no good to the company. A supervisor must watch his people
---------------------- closely to find out as to–

124 Techniques for Operations Efficiency

  what are they doing? Notes
 how are they doing work?
----------------------
 do they need to do what they are doing?
----------------------
 are they doing work the right way?
 are they doing work which adds value? ----------------------

 are they using motions of the lowest classification? ----------------------

7. MUDA of Processing ----------------------
The processing cost of a product is decided mainly by the conversion
----------------------
process, i.e. a combination of mechanical and chemical operations and support
activities, required to produce goods and services. Operations in turn can be ----------------------
categorized into two groups –
----------------------
(i) Operations which don’t add value, and
(ii) Operations which add value ----------------------
The identification of non-value added operations and their elimination, ----------------------
is the first step to eliminate MUDA of processing. The second stage of the
analysis is the identification of MUDA among the value added operations (every ----------------------
productive operation too is found to contain some MUDA). ----------------------
Fig. 6.4 and 6.5 explains the process mentioned above.
----------------------
Causes of MUDA of Processing
----------------------
1. Non-value added operations (for example, repair weld of jobs due to poor
quality of castings, bad condition of machines, poor quality of workmen, ----------------------
etc). ----------------------
2. Unnecessary split-up of operations.
----------------------
3. Unnecessary closer tolerances and unnecessary finishes.
----------------------
4. Duplication of operations.
----------------------
5. Unnecessary features provided in the product.
----------------------
6. Use of uneconomical raw material / oversized materials.
7. Poor allocation of work to men / machines. ----------------------

8. Failure to identify and use the most effective method. ----------------------

9. Higher set-up time. ----------------------

10. Over production. ----------------------
11. “It can’t be helped” attitude, or the lack of efforts to find / develop a better ----------------------
method of doing things.
12. Manual work i.e. failure to automate work. ----------------------

13. Inadequate, out-dated technology or design. ----------------------

MUDA (Waste) Elimination 125

 Notes 14. Unduly long tool approach or overrun of tools.
15. Frequent changes in job priority.
----------------------
For best results, we should question the PURPOSE, the PLACE, the
---------------------- SEQUENCE, the PERSON and the MEANS, and conduct the ECRS exercise.
ECRS stands for–
----------------------
E – Elimination
----------------------
C – Combination
----------------------
R – Rearrangement
----------------------
S – Simplification
----------------------

----------------------
Processing
---------------------- Manufacturing Material Cost
Cost Cost
---------------------- Overhead
----------------------

----------------------
Decided by
---------------------- convention system

---------------------- Arrangement to perform operations

that produce goods and services
----------------------

----------------------
Operations which Operations which
---------------------- don’t add value don’t add value
----------------------

---------------------- Conduct kaizen to Conduct kaizen to

eliminate non-value remove Muda from each
added operations value added operation
----------------------

----------------------
Typical examples Typical examples
----------------------   Repair welding   Mudaof motion
 Fettling
   Muda of waiting
 
----------------------  
 Inspection  
 Muda of defects
 
 Transportation
----------------------

----------------------
Higher
---------------------- productivity

---------------------- Fig. 6.4: Schematic Diagram on MUDA of Processing

126 Techniques for Operations Efficiency

 VALUE Notes
ADDED OPERATION
----------------------

----------------------
WORK ----------------------
MUDA

----------------------
Increases value
of operation Increases cost
of operation ----------------------

----------------------

CONDUCT KAIZEN ----------------------

To raise part of the work portion by eliminating MUDA
----------------------

----------------------
MUDA
Operation ----------------------
Work MUDA
Work ----------------------

----------------------
Fig. 6.5: Elimination of MUDA in a Value Added Operation ----------------------
Tools and Techniques to Eliminate MUDA of Processing
----------------------
1. Method study
----------------------
2. Value Analysis / Value Engineering
3. Simplification ----------------------
4. Kaizen ----------------------

----------------------
Check your Progress 1
----------------------
Fill in the blanks.
----------------------
1. _______ lot sizes is MUDA strategy.
----------------------
2. MUDA _______ obsolescence / damages.
----------------------

----------------------
Activity 1
----------------------
1. Define MUDA. ----------------------
2. State types of MUDA in manufacturing.
----------------------

----------------------

MUDA (Waste) Elimination 127

 Notes 6.3 MUDA IN THE OFFICE
---------------------- MUDA can also be found in support functions such as engineering,
planning, marketing, purchase, stores, accounts, administration and HRM, etc.
---------------------- MUDA in these office related activities is said to occur when there is delay in
the retrievability of papers / documents / information, non-completion / delay
----------------------
in the completion of duties / work due to unclear instructions, presence of too
---------------------- many forms and documents, and ever-rising cost of communication.

---------------------- Typical examples of MUDA in office are

●● Waiting for people at a meeting.
----------------------
●● Making unproductive phone calls.
---------------------- ●● Unnecessary copies of documents.
---------------------- ●● Bureaucratic control for signatures.
●● Defective bills returned to purchase for correction.
----------------------
●● Chasing accounts department for payment.
----------------------
●● Bill held up for booking for want of GRRs.
---------------------- ●● Forms / letterheads printed in excess of requirements.
---------------------- Symptoms of problems of MUDA in office
●● Poor information flow system.
----------------------
●● Excessive bureaucracy (too many controls).
---------------------- ●● Frequent complaints of work not done justified due to unclear instructions.
---------------------- ●● Too much paperwork.

---------------------- ●● Ever increasing clerical / secretarial costs.

●● Delay in decision making.
----------------------
●● Employees ignorant / unaware of the activities around them.
---------------------- ●● Errors in decisions due to lack of information.
---------------------- ●● Low level of delegation.
Tools and Techniques
----------------------
1. Work simplification.
----------------------
2. 5-S technique for office.
---------------------- 3. Process charting.
----------------------
Check your Progress 2
----------------------

---------------------- State True or False.

1. MUDA is only for production.
----------------------
2. MUDA is an effective cost saving technique.
----------------------

128 Techniques for Operations Efficiency

 Notes
Activity 2
----------------------
1. State different types of MUDA. ----------------------
2. Give different types of MUDA of waiting.
----------------------

----------------------
Summary
----------------------
●● MUDA is a Japanese word for waste and waste means anything, (or any ----------------------
activity) which does not add any value to the product. There are seven
types of MUDA in manufacturing: ----------------------
1. MUDA of Over-Production
----------------------
2. MUDA of Stock (inventory)
----------------------
3. MUDA of Waiting
4. MUDA of Transport ----------------------

5. MUDA of Defects ----------------------

6. MUDA of Motion ----------------------
7. MUDA of Processing ----------------------
●● MUDA is also found in support functions such as Marketing, Engineering,
Purchase, Finance, Administration, HRM, etc. ----------------------

----------------------
Keywords
----------------------
●● MUDA: It is a Japanese word for waste. Waste means anything that is
related to any work/ activity in an organisation, which does not add any ----------------------
value to the product. ----------------------

Self-Assessment Questions ----------------------

----------------------
1. What does MUDA mean? Discuss briefly the MUDA found in a
manufacturing organisation. ----------------------
2. What is meaning of “Over-production” ? What are the causes of over-
----------------------
production? What measures can be taken to eliminate MUDA of over-
production? ----------------------
3. What causes MUDA of stock? How it can be eliminated? ----------------------
4. “MUDA elimination is the only strategy for survival in a competitive
----------------------
situation.” Discuss.
5. Why is MUDA of transport considered as an important waste? What are ----------------------
its disadvantages? How can it be eliminated? ----------------------

MUDA (Waste) Elimination 129

 Notes 6. What is the MUDA of Processing? What are the key causes of this waste?
How can this waste be minimized?
----------------------
7. List various types of MUDA. Give five causes of MUDA and five counter
---------------------- measures.
---------------------- 8. The following figure shows the typical procedure of purchase followed in
the industry/offices. The activities are mentioned with their time required in
----------------------
minutes. Identify the non value added activities or all types of MUDAS in
---------------------- the present process, and prepare a new process. Compare the time required
for the old process with the new process.
----------------------
Function Sequence of Activities
----------------------
Buying Writing of BR. Raiser receive Sends to Receive send to
---------------------- Requisition (5) Approved BR from Dept. Head from DH finance
Raiser. Immediate Superior (5) (180) (5)
---------------------- (BR) (50)

---------------------- Receive the BR Reviews BR Sign BR Send to

Immediate From Raiser (5) Checks Infom. (5) (5) Raiser
---------------------- Superior (25)

----------------------
Receive the BR Reviews BR & Sign BR Send back
Dept. Head From raiser ( 5) Previous remarks(5) (5) to Raiser
----------------------
(150)
----------------------
Receives the Reviews BR & Approve BR Inform
Finance
---------------------- Dept.
BR from raiser previous remarks purchase
(5) (5) (5) For PO (60
----------------------
Purchase prepares PO
---------------------- (80)
Purchase
---------------------- Dept.

----------------------

---------------------- Answers to Check your Progress

---------------------- Check your Progress 1

---------------------- Fill in the blanks.

1. Small lot sizes is MUDA strategy.
----------------------
2. MUDA reduces / minimizes obsolescence / damages.
----------------------
Check your Progress 2
----------------------
State True or False.
---------------------- 1. False
---------------------- 2. True

130 Techniques for Operations Efficiency

 Notes
Suggested Reading
----------------------
1. Kenkyusha’s New Japanese-English Dictionary, 5th edition, 2003, Tokyo:
Kenkyusha, p. 2530. ----------------------
2. Emiliani, Bob; Stec, David; Grasso, Lawrence; Stodder, James (2007).
----------------------
Better thinking, better results: case study and analysis of an enterprise-
wide lean transformation (2nd ed.). Kensington, Conn: Center for Lean ----------------------
Business Management. ISBN 978-0-9722591-2-5.
----------------------
3. De Mente, Boye (2004). Japan’s cultural code words: 233 key terms that
explain the attitudes and behavior of the Japanese. Tuttle Publishing. p. ----------------------
197. ISBN 978-0-8048-3574-9.
----------------------
4. Toyota Production System, Ohno, Taiichi, 1988, Productivity Pres
----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

MUDA (Waste) Elimination 131

 Notes

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

132 Techniques for Operations Efficiency

Poka-Yoke (Mistake/Error Proofing)
UNIT

7
Structure:

7.1 Introduction
7.2 Key Principles
7.3 Different Kinds of Human Errors
7.4 Types of Defects
7.5 Causal Relationship between Types of Defects and Human Errors
7.6 Poka-Yoke Devices
7.7 Typical Examples of Industrial Poka-Yoke
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

Poka-Yoke (Mistake/Error Proofing) 133

 Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
●● State the meaning and significance of POKA YOKE.
---------------------- ●● Identify errors and defects in different processes.
---------------------- ●● Explain POKA YOKE devices.
---------------------- ●● Summarise the effectiveness of using POKA YOKE in various
industrial processes.
----------------------

---------------------- 7.1 INTRODUCTION

---------------------- Poka-Yoke is a combination of two Japanese words, “Poka” meaning
“inadvertent errors” and “Yoke” (derived from Japanese word Yokerie) meaning
---------------------- “to avoid”, and together they translate as “Error / mistake proofing” or “Fool-
proofing” or “Fail safing”, a work process system to eliminate inadvertent errors.
----------------------
Poka-Yoke is a powerful and comprehensive tool for the identification,
---------------------- measurement, and analysis of mistakes/defects at the Gemba (real place of
---------------------- work) and implementation of measures, that prevent the activity from being
incorrectly performed, thereby ensuring the production of quality goods and
---------------------- services.

---------------------- Few examples of fail safing of some of the daily activities through the
concept of Poka-Yoke are given below:
----------------------
# Problem / mistake Fail safing (Poka-Yoke)
----------------------
1. The Address on the letter and Put letters in window envelopes
---------------------- envelopes are different, resulting
in defective delivery
----------------------
2. Transparencies wrongly Provide some mark (say arrow facing
---------------------- exhibited on the screen (upside screen) on the transparencies
down)
----------------------
3. Spelling mistakes by the Use computer programmes that check
---------------------- Secretary spelling
---------------------- 4. Employee not performing the Instructions not clearly understood. Ask
work as per the instructions the employee to repeat instructions
----------------------
5. Employee not performing work Implement work standards. (i.e. Exhibit
---------------------- as per established method (or / provide work instructions for regular
as performed correctly by him jobs)
----------------------
in the past)
---------------------- 6. Customer’s complaint of short Provide dispatch clerk with a checklist
---------------------- receipt of items for verification

134 Techniques for Operations Efficiency

 # Problem / mistake Fail safing (Poka-Yoke) Notes
7. Assembly operator forgets to Install a device to weigh assembly ----------------------
assemble all parts before it is pushed by the operator to
the next station ----------------------
or supply material for each assembly ----------------------
in a separate pack and check for any
leftover material ----------------------

8. Contents drop on the floor on Manufacturer to provide a lever lock on ----------------------

opening of a VIP suit case kept the suitcase, to prevent it from opening if
----------------------
upside down kept upside down
----------------------
9. Too much time being wasted in Provide location number for the items
issuing material, as the store and a dedicated facility to see the ----------------------
clerk has to search for items location on the computer screen
before issue ----------------------
10. Forgetting to post receipt and Provide control in the computer ----------------------
issue of an item (shortage item programme disallowing preparation
routed directly to assembly on of production report / invoice, until all ----------------------
receipt) items on the Bill of Materials (BOM) are ----------------------
issued and that too for their full quantity
----------------------
Characteristics of Poka-Yoke
●● Poka-Yoke is a fail safe mechanism for quality control. ----------------------

●● Poka-Yoke proofing is powerful. ----------------------

●● Poka-Yoke is simple. ----------------------
●● Poka-Yoke is inexpensive.
----------------------
●● Poka-Yoke is a comprehensive method.
----------------------
●● Poka-Yoke is an advanced aid in waste elimination.
Advantages of Poka-Yoke ----------------------

(1) Eliminates rejection and rework. ----------------------

(2) Reduces unnecessary transport, handling and re-routing of jobs for defect ----------------------
correction from down stream operations.
----------------------
(3) Frees a person’s mind from maintaining repetitive vigil, which at times
may be practically unfeasible. ----------------------
(4) Builds up morale on the shop floor. ----------------------
(5) Creates an extra capacity which is otherwise wasted due to rework and
rejection. ----------------------

(6) Improves productivity of the process. ----------------------

----------------------

Poka-Yoke (Mistake/Error Proofing) 135

 Notes 7.2 KEY PRINCIPLES
---------------------- 1. Errors are inevitable but can be eliminated. To err is human, i.e.
---------------------- people make mistakes. However, these mistakes can be reduced or even
eliminated. Poka-Yoke is a technique that can help to analyse the kind of
---------------------- mistakes that employees make and a way to eliminate these mistakes by
implementing/installing simple Poka-Yoke devices.
----------------------
2. To achieve quality, it has to be designed into the product for example,
---------------------- Design of Experiments, Failure Mode and Effect Analysis built into the
process (for example, process capability studies), drilled into the head of
---------------------- the people (through training and involvement) and has to be continuously
---------------------- improved by setting targets and monitoring progress (Kaizen, Six Sigma,
Poka-Yoke, etc.). Quality thus, is a total approach involving everyone
---------------------- in the organisation, and is not just the responsibility of the quality
department.
----------------------
3. Mistakes provide an opportunity for improvement, and error /
---------------------- mistake reporting is the fundamental step towards success. One need
not feel ashamed when a mistake is made, but be gracious enough to
---------------------- admit the mistake. Once a mistake has been admitted, a solution becomes
---------------------- possible. If the mistake is not acknowledged, the problem can persist
indefinitely. Infact, mistakes should be publicly admitted, so that others
---------------------- can learn from it and avoid making such mistakes.
---------------------- Poka-Yoke creates an environment wherein employees openly admit
mistakes, (or failures) and focus on countermeasures to prevent their
---------------------- recurrence.
---------------------- 4. Mishaps / errors / problems / crises are the result of inadvertent
negligence of small little things, (small mistakes) by someone in the
---------------------- chain. Preventing / eliminating mistakes prevents the occurrence of
major ones. Poka-Yoke gives importance to these small things, (small
----------------------
mistakes), thereby providing an avenue for mistake proofing.
---------------------- 5. Cent percent inspection deployed at the end-of-the line, cannot solve
the problem of defects, (i.e. cent percent inspection cannot ensure 100
----------------------
percent quality) but building up a low cost automated prediction/detection
---------------------- method for each process, helps operators to recognise the defect before it
occurs and can achieve the feat.
----------------------
6. The faster we discover the problem, the easier and less expensive it is
---------------------- to correct it. The longer the delay in discovering a problem, the higher is
the cost. Therefore, it makes sense to control the situation where the work
---------------------- is done, i.e., at the most upstream operation, if not at the product design
---------------------- stage.
Fig. 7.1 shows the effect on cost to the company, due to defects identified
---------------------- at different stages of manufacture. The increase in cost due to delayed
---------------------- identification of the defects, is on account of added cost elements.

136 Techniques for Operations Efficiency

 Notes
EXCESSIVE ----------------------
COST TO THE COMPANY
V. HIGH ----------------------
SIGNIFICANT ----------------------

SOME ----------------------

VERY ----------------------
LITTLE
----------------------

----------------------
OWN NEXT END OF FINAL END
PROCESS PROCESS LINE INSP. USER
----------------------
EFFECT ON COST FOR DEFECTS

----------------------
Fig.7.1: Identifying Defects at Stages of Manufacture
----------------------
# Defects found at Cost to the company Elements of cost
1. Own process Very little __ ----------------------
2. Next process Some Cost of delay ----------------------
3. End of line Significant 1. Rework ----------------------
2. Rescheduling
----------------------
4. Final inspection Very high 1. Significant rework
----------------------
2. Delay in delivery
3. Added inspection ----------------------
5. Customer end Excessive 1. Warranty cost ----------------------
2. Complaint handling
----------------------
3. Loss of reputation
----------------------
4. Loss of customer
5. Loss of market share ----------------------

The sharp rise in the cost curve justifies the need of ensuring quality at ----------------------
the source.
----------------------
Check your Progress 1 ----------------------

----------------------
Fill in the blanks.
1. In simple terms, POKA YOKE means _______. ----------------------

2. POKA YOKE helps in eliminating _______ and _______. ----------------------

----------------------

Poka-Yoke (Mistake/Error Proofing) 137

 Notes
Activity 1
----------------------

---------------------- 1. What are the principles of POKA YOKE?

2. List different types of Human Errors.
----------------------

----------------------
7.3 DIFFERENT KINDS OF HUMAN ERRORS
----------------------
Defects are the consequences of human errors. And human errors are mainly of
---------------------- the following kinds (Table 7.1).
---------------------- Table 7.1
Types of Human Errors
----------------------
# Type of error Description of the Typical examples Remedial action
---------------------- error
1. Forgetfulness Forgetting to do a 1. Operator skipping. 1. Alerting the operator in
---------------------- thing an operation advance
2. Operator forgetting 2. Checking at regular
---------------------- to tighten bolts intervals
3. Station master 3. Verification by another
---------------------- forgetting to lower employee
the crossing gate
----------------------
2. Misunderstand­ing Jumping to the 1. Putting foot on 1. Training
wrong conclusion clutch thinking it is 2. Checking in advance
---------------------- brake.
due to poor 3. Standardising work
familiarity with the procedures
---------------------- situation

---------------------- 3. Mistaken identity Misjudging a 1. Mistaking Rs. 500 1. Improving attentiveness

situation note as Rs. 100
note
----------------------
4. Errors by Lack of experience 1. Improper welding 1. On-the-job training
---------------------- amateurs 2. Wrong 2. Work standardisation
measurements
---------------------- 5. Willful errors Ignoring rules 1. Ignoring safety 1. Attitude change
/ Deliberate rules 2. Education
---------------------- wrong actions. 2. Crossing a street
against a red light,
---------------------- just because there
are no vehicles
---------------------- in sight at the
moment.
---------------------- 3. Not replacing blunt
tool on time
---------------------- 6. Inadvertent Absent mindedness 1. Removing job 1. Improving attentiveness
errors i.e. not knowing before completing 2. Work standardization
---------------------- how the problem/ drilling of all the
error has occurred holes
---------------------- 2. Crossing street with­
out noticing, that
---------------------- the light is red

138 Techniques for Operations Efficiency

 # Type of error Description of the Typical examples Remedial action Notes
error
7. Judgemental Errors due to 1. Difference in 1. Work instructions ----------------------
errors absence of the method of 2. Work standardisation
instructions of work measurement used ----------------------
standards by the vendor and
by the buyer ’s ----------------------
inspection
2. Operator deciding ----------------------
his own finish /
shade ----------------------
8. Unexpected Unusual Machine 1. Total productive
errors behaviour of the malfunctioning maintenance ----------------------
machine 2. Work instructions
----------------------
9. Deliberate Making 1. Wrong passing of a 1. Disciplining
errors mistakes bill 2. Attitudinal changes ----------------------
deliberately 2. Operator spoiling
material/machine ----------------------
10. Errors due to Lack of Measurements 1. Work instructions
absence of instructions or left to the 2. Work standardisation ----------------------
standards absence of work discretion of the
instructions workman ----------------------

From the above we can conclude that ----------------------

●● mistakes occur due to many reasons. ----------------------
●● almost all the mistakes can be avoided by a systematic identification and
analysis of the mistakes and the solution lies in developing a prevention ----------------------
mechanism, (A failsafe mechanism) which the Japanese call Poka-Yoke. ----------------------

Activity 2 ----------------------

----------------------
1. List the types of defects.
----------------------
2. List POKA YOKE devices.
----------------------

7.4 TYPES OF DEFECTS ----------------------

Defects are of various types of which the major ones are ----------------------
●● Omitted processing ----------------------
●● Wrong processing ----------------------
●● Errors in setting work pieces
----------------------
●● Missing parts
●● Wrong parts ----------------------
●● Processing of wrong parts ----------------------
●● Misoperation
----------------------

Poka-Yoke (Mistake/Error Proofing) 139

 Notes ●● Improper equipment set up
●● Inappropriate jigs and fixtures
----------------------
●● Inappropriate operation of the machine
----------------------
7.5 CAUSAL RELATIONSHIP BETWEEN TYPES OF
----------------------
DEFECTS AND HUMAN ERRORS
----------------------
Table 7.2 gives the causal relationship between type of defects and human errors :
---------------------- Table 7.2
---------------------- Relationship between Type of Defects and Human Errors
---------------------- Sr. Types of defect Human error(s) commonly responsible for
No. the indicated cause
----------------------
1. Omitted processing (1) Forgetfulness
----------------------
(2) Error of amateurs
---------------------- (3) Willful errors
---------------------- (4) Inadvertent errors
2. Wrong processing (1) Error of amateurs
----------------------
(2) Willful errors
----------------------
(3) Inadvertent errors
---------------------- (4) Judgemental errors
---------------------- 3. Errors in setting up work (1) Forgetfulness
pieces (2) Inadvertent errors
----------------------
4. Missing parts (1) Willful errors
----------------------
(2) Inadvertent errors
----------------------
5. Wrong parts (1) Forgetfulness
---------------------- (2) Misunderstanding
---------------------- (3) Mistaken identity
(4) Error by amateurs
----------------------
(5) Inadvertent errors
----------------------
6. Processing of wrong parts (1) Misunderstandings
---------------------- (2) Inadvertent errors
---------------------- 7. Misoperation (1) Inadvertent errors
---------------------- 8. Improper equipment (1) Forgetfulness
setup (2) Inadvertent errors
----------------------

----------------------

140 Techniques for Operations Efficiency

 Sr. Types of defect Human error(s) commonly responsible for Notes
No. the indicated cause
----------------------
9. Improper use of jigs and (1) Inadvertent errors
fixtures ----------------------
10. Improper operation of the (1) Error of amateurs ----------------------
machine (2) Inadvertent errors
----------------------
(3) Unexpected errors
----------------------
Check your Progress 2 ----------------------

----------------------
True / False
1. Forgetting to do a thing is human error ----------------------
2. Almost all the mistakes can be avoided by a systematic identification ----------------------
and analysis of the mistakes.
----------------------
7.6 POKA-YOKE DEVICES ----------------------
Poka-Yoke may be designed either to help the operator to recognise the ----------------------
defect, before it is about to occur called, “Prevention type Poka-Yoke” or to
help the operator to know immediately on occurrence of the defect, called ----------------------
“Detection type Poka-Yoke.”
----------------------
Some of the Poka-Yoke devices which can help to avoid the defects are
----------------------
(1) Guide pins / locators
(2) Error detection buzzers / alarms and blinking lights ----------------------

(3) Limit switches ----------------------

(4) Counters ----------------------
(5) Colour coding
----------------------
(6) Checklist
----------------------
These are briefly described below with illustrative examples :
(1) Guide pins / locators ----------------------

Poka-Yoke devices under this category utilize locating pins to eliminate ----------------------
the cause of incorrect positioning. Different Poka-Yokes are
----------------------
(i) using guide pins of different sizes to prevent incorrect positioning
(say locating of a jig plate over pins in a drilling operation). ----------------------
(ii) using a Poka-Yoke locator which does not accommodate wrong ----------------------
items or allow incorrect orientation.
----------------------
(iii) providing Poka-Yoke pins in the assembly fixture, thus preventing
incorrect assembly. (Refer Fig. 7.2 for example) ----------------------

Poka-Yoke (Mistake/Error Proofing) 141

 Notes Before After
---------------------- Jig plate was located 2 x 10φ pins and The diameter of the right hand pin
clamped. Often, the operator located in the jig plate was increased to 16φ
---------------------- the jig plate incorrectly causing scrap. forcing the operator to orient the jig
plate correctly before clamping.
----------------------
Fig. 7.2: Use of Guide Pins / Locator Poka-Yoke for Fail Safing
----------------------
(2) Error detection buzzers / alarms and blinking lights
----------------------
Poka-Yoke devices under this category activate devices which provide
---------------------- signals in the form of buzzers / blinking lights when an abnormality
occurs, (error detection) or is about to occur (error prevention) (Fig. 7.3)
----------------------

---------------------- Before After

Drop in air pressure results in scrap A pressure switch is introduced which
---------------------- senses the incoming air pressure. If the
---------------------- air pressure drops below the set value
in the system, the machine gives an
---------------------- alarm and the lamp glows up.

---------------------- Fig. 7.3: Use of Detection Buzzers / Alarms / Blinking Lights for
Fail Safing
----------------------
(3) Poka-Yoke devices using sensing mechanism
----------------------
Poka-Yoke devices under this category use a limit switch to monitor the
---------------------- process cycle. The machine does not start if the operation is incorrectly
performed or an abnormality occurs (Fig. 7.4).
----------------------

---------------------- Before After

The chance of an accident or hand A limit switch is provided to ensure the
----------------------
injury when the ram is coming down safety door’s closing which is inter-
---------------------- if the safety door is not closed. locked with the downward movement
of the ram (the ram is allowed to come
---------------------- down only when the safety door is
closed)
----------------------

----------------------

---------------------- SAFETY DOOR

SAFETY DOOR
----------------------
LIMIT
---------------------- HYDRAULIC PRESS
SWITCH

----------------------
Fig. 7.4: Use of Sensing Mechanism Poka-Yoke for Fail Safing
----------------------

142 Techniques for Operations Efficiency

(4) Counting devices Notes
Poka-Yoke devices under this category utilise a mechanism which tracks ----------------------
down (counts) the number of times something is done and signals or
releases the product from clamping only after the required number is ----------------------
reached (Fig. 7.5).
----------------------
Before After
----------------------
The operator working on a spot A counter, tracking the number of
welding machine is required to welds, is installed, which stops the ----------------------
change the tip, after a certain machine and flashes a light indicating
----------------------
number of welds (tip wears, off with the need to change the tip.
use and needs to be replaced after a ----------------------
number of welds). The operator at
times forgets to replace the tip after ----------------------
the desired frequency, resulting in a
----------------------
defective product.
----------------------
Fig. 7.5: Use of Counting Poka-Yoke in Fail Safing
(5) Colour coding ----------------------

Poka-Yoke devices under this category use colour codes, to distinguish ----------------------
between similar parts which may be assembled in a wrong position,
unless the workman is vigilant, for example, right is blue in color, left is ----------------------
yellow in color. ----------------------
(6) Checklists
----------------------
Checklists are used to eliminate errors due to the incorrect quantity packed
in a box or the failure to specify necessary details in a document, (for ----------------------
example, Bill of Materials/ drawing) or the failure to specify the required
----------------------
documents, (for example, documents to be submitted by the importer not
included in the purchase order of a foreign supplier) to satisfy the letter of ----------------------
credit requirement, etc.
----------------------
The checklist enables the employee concerned to doubly confirm by
referring to his checklist, that all the necessary items / enclosures / details ----------------------
have been included/requested, thereby eliminating errors (last minute rush).
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

Poka-Yoke (Mistake/Error Proofing) 143

 Notes 7.7 TYPICAL EXAMPLES OF INDUSTRIAL
POKA-YOKE
----------------------
A few typical examples of industrial Poka-Yoke are tabulated below:
----------------------
Table 7.3
---------------------- Typical examples of industrial Poka-Yoke
---------------------- # Short description of the problem Poka-Yoke used
1. A powder (coating) machine stops A material-sensing fork is installed
----------------------
due to less material in the hopper. into the hopper. When material in
---------------------- the hopper drops below the pre-
fixed level, the fork loses contact
---------------------- with the material which energies a
hooter, whose sound cautions the
----------------------
operator to fill material.
---------------------- 2. Operator, using a simple torque An electric torque wrench sensing
---------------------- wrench, forgets to torque some of the tightening of bolts at rated
the cap mounting bolts in actuator torque, displays the number of
---------------------- assemblies. bolts torqued.
---------------------- 3. Induction heating machine, A water flow sensing mechanism
occasionally, when the operator interlocked to coil heating is
---------------------- forgets to check cooling water, installed. The sensor now monitors/
runs without water causing coil senses water flow and disconnects
---------------------- burnout. the heating coil (avoiding coil burn
---------------------- out) when water flow is absent/
stops.
---------------------- 4. Axle shaft without keyway, Job drive, while checking P.C.D.
---------------------- sent for heat treatment (case runout, is provided through the
hardening). keyway instead of gear teeth. This
---------------------- identifies the jobs, with missed
keyway operation.
----------------------
5. Plastic covers are frequently The shape of the screw is modified
---------------------- scratched when the screw-driver (screw slot made blind on ends)
slips out of the screw slot. thereby eliminating the possibility
---------------------- of the screw driver slipping
---------------------- 6. Lathe machine at times was started A small chuck key storage rack is
with chuck key still in the chuck, attached to the headstock of the
---------------------- causing injury to the operator. machine. The chuck key storage
rack is interlocked with a power
----------------------
switch of the lathe machine, forcing
---------------------- the operator to return the key to the
rack, as its absence won’t allow the
---------------------- machine to be started.
----------------------

144 Techniques for Operations Efficiency

 # Short description of the problem Poka-Yoke used Notes

7. Operator/inspector while Two pressure gauges are installed ----------------------

performing leak test in valve bodies on the same outlet enabling the
tends to doubt, the correctness operator to determine reliability ----------------------
of the pressure gauge when non- of the readings on gauges by ----------------------
conformance is observed. comparing them.
----------------------
Summary ----------------------
●● Poka-Yoke is a comprehensive tool for identification, measurement ----------------------
and analysis of mistakes/defects, at the Gemba (workplace) and
implementation of measures, that prevent the activity from being ----------------------
incorrectly performed. Poka-Yoke is a combination of two Japanese words ----------------------
which translate as “Error/mistake proofing” or “Fool proofing” or “Fail
safing”, a work process system to eliminate inadvertent errors. Different ----------------------
types of errors are: forgetfulness, misunderstanding, mistaken identity,
errors by amateurs, willful errors, inadvertent errors, judgemental errors, ----------------------
unexpected errors and deliberate errors. ----------------------
●● Six popular Poka-Yoke devices are: (1) guide pins / locators, (2) error
detection buzzers/alarms and blinking lights, (3) limit switches, (4) ----------------------
counters, (5) colour coding, and (6) checklists.
----------------------

Keywords ----------------------

●● Poka-Yoke: It is a combination of two Japanese words, “Poka” meaning ----------------------

“inadvertent errors” and “Yoke” (derived from Japanese word Yokerie) ----------------------
meaning “to avoid”.Together they translate as “Error / mistake proofing”
or “Fool proofing” or “Fail safing”, a work process system to eliminate ----------------------
inadvertent errors.
----------------------
Self-Assessment Questions ----------------------

1. What is the meaning of Poka-Yoke? How is it useful? ----------------------

2. Explain with examples the use of Poka-Yoke tools for error prevention. ----------------------
3. What key principles underline Poka-Yoke?
----------------------
4. Write down the different kinds of human errors. Give typical examples
for each type of human error. ----------------------
5. Explain briefly the main Poka-Yoke devices and how they are used to ----------------------
avoid defects.
----------------------

----------------------

----------------------

Poka-Yoke (Mistake/Error Proofing) 145

 Notes Answers to Check your Progress
---------------------- Check your Progress 1

---------------------- Fill in the blanks.

1. In simple terms, POKA YOKE means mistake-proofing.
----------------------
2. POKA YOKE helps in eliminating mistakes and errors.
----------------------
Check you progress 2
---------------------- True / False
---------------------- 1. True

---------------------- 2. True

----------------------
Suggested Reading
----------------------
1. Shingo, Shigeo (1986). Zero quality control: source inspection and the
---------------------- poka-yoke system. Portland, Oregon: Productivity Press. ISBN 0-915299-
07-0. OCLC 13457086. Retrieved 30 April 2009.
----------------------
2. Nikkan Kogyo Shimbun (1988). Poka-yoke: improving product quality
---------------------- by preventing defects. Portland, Oregon: Productivity Press. ISBN
0-915299-31-3. OCLC 300302752.
----------------------
3. Hinckley, C. M.; P. Barkan (1995). “The role of variation, mistakes, and
---------------------- complexity in producing nonconformities”. Journal of Quality Technology
27 (3): 242–249.
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

146 Techniques for Operations Efficiency

Statistical Process Control (SPC)
UNIT

8
Structure:

8.1 Introduction
8.2 Principles underlying Process Control
8.3 Control Charts as a Tool for Process Control
8.4 Types of Control Charts
8.5 X-R Charts
8.6 Theory underlying X-R Charts
8.7 Steps to prepare X-R Charts
8.8 Control Charts by Attributes
8.9 Control Charts for Fraction Defectives (P-Chart)
8.10 Control Charts for Number-Defectives (NP-Chart)
8.11 Control Charts for the Number of Defects (C-Chart)
8.12 Need for Process Capability Studies
8.13 Fundamentals of Process Capability
8.14 Estimation of the Process Capability
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

Statistical Process Control (SPC) 147

 Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
●● State the meaning of variation in a process.
---------------------- ●● List various statistical methods/tools.
---------------------- ●● Select the appropriate statistical tool.
---------------------- ●● Determine process capability.

----------------------

---------------------- 8.1 INTRODUCTION

---------------------- Statistical Process Control (SPC) is the application of statistical techniques,
---------------------- for the purpose of process control, process evaluation and process improvement,
to achieve defect-free production and pursue neverending improvements.
---------------------- (i) Process control
---------------------- SPC underlines a basic philosophy, that prevention is better than cure and
a stitch in time saves nine. It utilizes tools such as control charts, to alert
----------------------
the shop floor management and workers, when something goes wrong
---------------------- and needs to be corrected.
A control chart is a visual display of significant changes that may occur
----------------------
in a process. The chart evaluates whether the process is in the state
---------------------- of statistical control or not. If it is, the fluctuations are due to random
variability and if it is not, they are due to assignable variability.
----------------------
Assignable variability can be traced to the specific causes (called
---------------------- assignable causes) whose detection and removal, brings about greater
product uniformity, lower waste and reduced cost.
----------------------
(ii) Process evaluation
---------------------- Process evaluation is the process of assessing the capability of the process,
---------------------- which is the measure of variation of the process, and its ability to produce
components consistently within specifications. Process capability can be
---------------------- defined only when the process is under a state of statistical control (i.e.
when the process is influenced by only chances causes, and assignable
---------------------- causes have been identified and removed). Process capability is measured
---------------------- by the process capability indices, Cp and Cpk.
(iii) Process improvement
----------------------
The tools of SPC can also be utilised to further the efforts of continuous
---------------------- improvement. Capability indices for a process calculated initially, can be
monitored continuously and used as a basis, for continuous improvements.
----------------------
Statistical data from the entries in the SPC charts can be analysed for
---------------------- causes of variability and steps taken to eliminate assignable causes,
thereby reducing variability and improving quality.
148 Techniques for Operations Efficiency
 Since chance causes are a source of inherent variations in the process, and Notes
these variations can be corrected only by the management (for example,
poor lighting, bad work bench layout, poor condition of the machine, bad ----------------------
maintenance, etc.), the feedback on chance causes can be utilised by the
----------------------
management to improve process performance.
The application of SPC is not limited to production/operations but can ----------------------
also be used efficiently and effectively in sales, purchase, accounts, ----------------------
distribution, after-sale service, administration, training and management.
----------------------
8.2 PRINCIPLES UNDERLYING PROCESS CONTROL
----------------------
Process control is based on the following five principles: ----------------------
1. “Variability is necessarily inherent in any process”
----------------------
This implies that no two parts produced on a machine are exactly identical.
They, however, may be interchangeable. Variations result in parts because ----------------------
of the inherent variability of the manufacturing process. Some variations
----------------------
are so great that they can be identified by the measuring instruments, and
some others are so minute that a confusion arises whether the variations ----------------------
are those within the parts, or are they due to errors in readings, or due
to errors of the measuring instruments. The existence of the inherent ----------------------
variability has been recognised by the industry. Inclusion of a certain ----------------------
tolerance on the basic dimension in the drawing is the acceptance of this
variability. ----------------------
2. “Total variability is composed of two parts: one internal to the process ----------------------
and the other external to the process”
----------------------
Internal variations, also called inherent or chance variations, are caused
by the cumulative effect of number of a chance causes. Variations due to ----------------------
chance causes are inevitable in any process, and are difficult to identify.
----------------------
Economically, nothing can be done about them unless the whole process
itself is changed, which constitutes a fundamental change. ----------------------
Typical examples of chance causes are : play in the journals and guide rods ----------------------
(for example, lathe), heterogeneity in the material used, the temperature
of the workshop, fluctuations/variations in power supply, lack of human ----------------------
perfection in reading instruments, etc.
----------------------
External variations are caused due to assignable causes, which can
always be traced to the operating conditions of the process and corrected. ----------------------
Assignable causes include such factors as poor machine maintenance, ----------------------
faulty jigs and fixtures, large variations in the hardness of the material,
tool wear, errors in setting, careless or poorly trained workers, extreme ----------------------
warm weather, accumulation of dust and dirt, an extended vacation period,
----------------------
changes in the shifts of the operator, supply of defective materials, etc.
----------------------

Statistical Process Control (SPC) 149

 Notes The basic characteristics of the two types of causes are given below:
 Chance causes are very large in number, while assignable causes
----------------------
are few in number.
----------------------  A single chance cause results in an insignificant variation (many
chance causes acting together, however, can cause substantial
----------------------
variation), while any one assignable cause can result in a large
---------------------- amount of variation.
 Variations due to chance causes follow statistical laws, while those
----------------------
due to assignable causes do not.
----------------------  Variations due to chance causes are difficult to identify, while
---------------------- those due to assignable causes can be easily traced to the operating
conditions of the process.
----------------------  Variations due to chance causes cannot be economically eliminated,
---------------------- while those due to assignable causes can be economically removed.
Control charts of statistical quality control help the operating personnel
---------------------- to identify the presence of an assignable cause, before it develops and
---------------------- renders the component defective.
3. “Variation pattern of an industrial process when under control
----------------------
(process being influenced only by inherent causes) fits into a normal
---------------------- curve”
Normal distribution is one of the best known statistical relationships.
----------------------
Every one is familiar with its bell shaped curve (Fig 8.1)
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

---------------------- Fig. 8.1: Normal Distribution Curve

Important properties of a normal distribution are:
----------------------
 The normal distribution represents a bell shaped curve which has a
---------------------- single hump at the mean.
----------------------  The mean, the mode and median are equal.

----------------------  The distribution is symmetrical about the mean, the area under the
curve below the average equals area under the curve extending
---------------------- beyond the average, i.e. skewness and kurtosis are zero.

150 Techniques for Operations Efficiency

  The total area under the normal curve is unity. Notes
 Theoretically, the normal curve can extend from - to + , but almost
----------------------
all the observations (for example, 99.73% of the total observations)
are enclosed between + 3 limits. ----------------------
 The area enclosed within the commonly used multiples of it is
----------------------
Limits Area enclosed (%)
----------------------
µ + 1 σ 68.26%
µ + 2 σ 95.45% ----------------------

µ + 3 σ 99.73% ----------------------
 Whatever be the dimensions of the curve, be it tall and thin or short ----------------------
and fat, the proportional area under the curve encompassed between
the mean and the given standard deviation is the same. ----------------------
 The distribution is dependent on only two parameters, mean and ----------------------
standard deviation.
----------------------
An illustration as the one given under could be considered :
Assume that a screw machine is employed to cut a rod to a certain ----------------------
tolerance. Further assume that external variations due to assignable causes have ----------------------
been eliminated, which implies that the machine is being influenced only by
chance causes. A series of measurements of length of a large number of parts if ----------------------
plotted will yield a normal distribution. Almost all measurements (99.73% i.e.
9973 observations out of 10,000) shall be with + three standard deviations from ----------------------
the mean, which is the measure of inherent variability. The magnitude of this ----------------------
inherent variability is called “process capability” or “natural tolerance.”
Control charts thus help the operating personnel to measure natural ----------------------
tolerance of the machine. ----------------------
4. “Every quality characteristic has a certain specification, and
----------------------
the manufacturing process is expected to produce within this
specification (called design tolerance which is the difference between ----------------------
the specification limits)”
----------------------
The economic manufacture will take place when the process capability
(natural tolerance) and the design tolerance are made to synchronise. The ----------------------
process capability studies of various processes are likely to fit in one of the
following situations: ----------------------
(i) Good process variability and ----------------------
correct process centering (Fig. 8.2) UPPER UPPER
SPEC SPEC
----------------------
The variability of the process is LIMIT LIMIT

well within the variability allowed ----------------------

by the specifications. The process is
also centered to the specifications. ----------------------
This is an excellent situation. ----------------------
Fig. 8.2

Statistical Process Control (SPC) 151

 Notes (ii) Good process variability
but poor process centering LOWER
SPEC
LOWER
SPEC
---------------------- (Fig. 8.3) LIMIT LIMIT

---------------------- The variability of the process,

though well within the
---------------------- variability allowed by the
specifications (i.e. process
---------------------- variability is good), the process
needs centering. Fig. 8.3
----------------------

---------------------- (iii)
Good process variability
---------------------- but bad process centering LOWER UPPER
SPEC SPEC
(Fig. 8.4) LIMIT LIMIT
---------------------- The variability of process is
---------------------- within the variability allowed
by the specifications, but the
---------------------- process is off-centre. Lack
of centering is the cause
---------------------- of rejection/rework (i.e. out-of- Fig. 8.4
---------------------- specifications products).
(iv) Process variability is just
---------------------- adequate (Fig. 8.5) LOWER UPPER
SPEC SPEC
---------------------- The process variability equals LIMIT LIMIT
the variability allowed by the
---------------------- specifications. This is not a
---------------------- comfortable situation, as a
slight disturbance in the process
---------------------- can cause out-of-specification
products. The process needs
---------------------- close monitoring and control. Fig. 8.5

---------------------- (v) Process variability is just

adequate but the process is LOWER UPPER
---------------------- off-centre (Fig. 8.6) SPEC SPEC
LIMIT LIMIT
---------------------- The process variability equals
the variability allowed by the
---------------------- specifications. The process is
---------------------- also off- centre. It is clearly an
uncomfortable situation as the
---------------------- presence of an assignable cause
even for a temporary period can Fig. 8.6
---------------------- cause some out-of-specification
products. The process needs
----------------------
centering and close monitoring
---------------------- and control.

152 Techniques for Operations Efficiency

(vi) Inadequate process variability Notes
(Fig. 8.7) LOWER UPPER
SPEC SPEC ----------------------
The process variability is more LIMIT LIMIT
than the variability allowed ----------------------
by the specifications. Also
any off-centering of process is ----------------------
sure to worsen the situation.
----------------------
The process is incapable of
producing acceptable products Fig. 8.7 ----------------------
and needs correction to reduce
its variability. ----------------------
5. “The arithmetic mean of samples, drawn from a population which is ----------------------
normal with mean and standard deviation if plotted, also yields normal
distribution with mean ( being the average of the sample averages) ----------------------
being equal to the mean of the population, , and standard deviation ----------------------

being the sample size.” ----------------------

This aspect enables the analyst to plot average values of the samples ----------------------
instead of individual values.
----------------------
8.3 CONTROL CHARTS AS A TOOL FOR PROCESS ----------------------
CONTROL
----------------------
A fundamental aim of process control is to evolve a system of differentiating
between the variations due to chance causes and those due to assignable causes, ----------------------
so that the latter can be identified and removed, thereby improving the quality ----------------------
of the product. The basic tool used for this purpose is called a control chart.
A control chart is a visual display, of the result of the inspection and of the ----------------------
samples of a product. It incorporates carefully derived statistical limits, which
help to discriminate between random variability and assignable variability. ----------------------

A control chart consists of three lines – a central line, an upper control ----------------------
limit and a lower control limit. To construct the chart, the time variable is taken
along the abscissa (x-axis) and the quality characteristic of the product is taken ----------------------
along the ordinate (y-axis). The control parameters – central line, upper control ----------------------
limit and lower control limit – are drawn by horizontal lines. The central line
denotes the mean value of the quality characteristic. The upper control limit ----------------------
is located at 3 standard deviations above the central line and the lower control
limit is located at 3 standard deviations below the central line. ----------------------

Samples of fixed sizes are taken at specified intervals of time. Each sample ----------------------
is inspected for the given quality characteristic. The values of the samples are
----------------------
plotted on the graph according to the time variable. The trend of the points in
the chart are studied to know the state of the process. As long as the sample ----------------------
points lie within the control limits, the process is said to be under control. The
variations that are observed are due to chance causes and are not serious. ----------------------

Statistical Process Control (SPC) 153

 Notes The falling of the points outside the control limits indicate the deterioration
in quality and hence the presence of assignable causes. Such causes are identified
---------------------- and corrected.
---------------------- Sometimes the sample points within the control limits exhibit certain
patterns, a continuous upward or downward trend, cyclical pattern, hugging
---------------------- pattern, etc. Even though the points are within the limits, it indicates the presence
of assignable causes and hence the need to take a corrective action.
----------------------

---------------------- 8.4 TYPES OF CONTROL CHARTS

---------------------- To assess the quality of a product, the measurement of some property
of the product (properties of the product are called quality characteristics) is
---------------------- necessary. This can be done
---------------------- 1. In terms of the product being classified either right or wrong (acceptable
or non-acceptable). An example of this is the assessment of properties
----------------------
which are difficult to measure quantitatively, such as surface appearance,
---------------------- colour, gloss, texture, cracks, imperfections, burns, burrs, etc. These
properties are usually measured by comparison, and any sample taken
---------------------- is classified either good or bad (O.K. or defective). These properties (or
quality characteristics) are called attributes.
----------------------
2. The product can be classified as good or bad, acceptable or non-
---------------------- acceptable, based on the quantitative measurements of their properties.
These properties (those capable of being measured) are called variables.
----------------------
Typical examples of variables are diameter, length, thickness, weight,
---------------------- temperature, humidity, voltage, hardness, viscosity, etc.
Thus, control charts are of two types. (i) those drawn for properties which
----------------------
are variables. These are called control charts by variables. (ii) those drawn for
---------------------- properties which are attributes. These are called control charts by attributes.

---------------------- Control charts by variables are basically the following

(a) The average chart ( -bar chart) which measures the central tendency of
---------------------- the process.
---------------------- (b) The range chart (R-chart) which measures the spread of the process.
---------------------- Since average chart and range charts are usually used together, they are
commonly known as -R charts.
----------------------
Control charts by attributes are basically the following,
---------------------- (a) The fraction defective chart (p-chart) which records the proportion of
---------------------- defective items in a sample.
(b) The number defective chart (np-chart) which records the number of
----------------------
defective items in a sample.
---------------------- (c) The defects chart (c-chart) which records the number of defects in a
component / product.
----------------------

154 Techniques for Operations Efficiency

 Notes
Check your Progress 1
----------------------
Fill in the blanks. ----------------------
1. Control charts is a good _______ for process control.
----------------------
2. _______ distribution is one of the best known statistical relationships.
----------------------

----------------------
Activity 1
----------------------

1. List various process capability studies. ----------------------

2. List various types of control charts and their respective purposes. ----------------------

----------------------
8.5 X-R CHARTS ----------------------
The chart is a pair of charts consisting of an average chart (called ----------------------
chart) and a range chart (called R chart) placed one below the other on a
----------------------
piece of graph paper. The chart is used to control the mean value of the
characteristic, and the R-chart is used to restrict the range of variations in the ----------------------
values. charts are drawn when the characteristics are measurable.
----------------------
Each chart consists of three values: a central line, upper control limit
and lower control limit. The central line represents the arithmetic average of ----------------------
the sample mean, which equals the mean of the population. The upper and
lower control limits are located at three standard deviations on either side of ----------------------
the central line.
----------------------
Samples of a fixed size are drawn at regular intervals and measurements
are taken. The sample-wise values of the mean and range are plotted in their ----------------------
respective and R charts.
----------------------
The spread of sample points in the charts is studied to decide the remedial
action (if any) to be taken. The chart analyses whether or not the mean of the ----------------------
quality characteristic is within control, while R-chart analyses whether or not ----------------------
the variability is within control.
----------------------
8.6 THEORY UNDERLYING X-R CHARTS
----------------------
-R charts (in fact control charts in general) are based on the concept that ----------------------
the average of a sample of several items tend to cancel out the normal process
variability, and undesirable changes due to assignable causes thereafter become ----------------------
visible.
----------------------
Further to ensure that an assignable cause is detected, before the required
tolerances are violated, ----------------------

Statistical Process Control (SPC) 155

 Notes (i) upper and lower statistical limits are worked out and inserted into the
chart.
----------------------
(ii) statistical limits are calculated from the averages of the samples of n
---------------------- (4,5….), instead of a single sample of a large size (This reduces the spread
of natural variability).
----------------------
Statistical limits of the chart are based on the concept of statistical
---------------------- significance, which states that,
“the arithmetic mean of samples are distributed according to the normal
----------------------
distribution, with the sample mean being equal to the mean of the population
---------------------- and standard deviation of sample mean , equal to where is the
standard deviation of the population and n is the sample size.” n
----------------------
Based on the above statement, the statistical limits (or control parameters)
---------------------- of the average chart ( -chart) under different situations may be set up as under:
---------------------- (i) X and σx known
Central line = CLx = X
----------------------
Upper control limit = UCLx = X + 3. σx
----------------------
Lower control limit = LCLx = X - 3. σx
---------------------- (ii) µ and σ known
---------------------- Central line = CLx = X
---------------------- Upper control limit = UCLx = µ + 3. σ
n
----------------------
Lower control limit = LCLx = µ - 3. σ
---------------------- n

---------------------- (iii) X and σ known

Central line = CLx = X
----------------------
Upper control limit = UCLx = X + 3. σ
---------------------- n
---------------------- Lower control limit = LCLx = X - 3. σ
n
----------------------
(iv) Sample data on individual measurements known
---------------------- Let Ri = Rangle of ith sample
---------------------- m = No. of samples
n = Size of each sample
----------------------
∴ R = ΣRi
---------------------- m
---------------------- It has been established by the statisticians that the ratio of standard
deviation of the population and the mean range of the samples, R for a given n
---------------------- is constant and has been specified as the correction factor d’.

156 Techniques for Operations Efficiency

 σ Notes
= d'
R
----------------------
∴ s = d' . R
----------------------
∴ The formula for the control limits becomes
Control limits = X + 3. σx ----------------------

= X + 3.n σ ----------------------

----------------------
3. d' R
=X+
σ ----------------------

----------------------
The term 3.d’ in the above formula is constant for a sample size and therefore
n ----------------------
can be expressed into another constant A2. Table 8.1 gives different values of A2
of for varying values of sample size. ----------------------
The above simplification reduces the formula of the limits of the control
----------------------
chart to X+ A2 R
----------------------
UCLx = X + A2 R
----------------------
LCLx = X - A2 R

----------------------
X-chart is normally accompanied by a range chart (R-chart). R-chart,
like X-chart, consists of a central line, one upper control limit and lower control ----------------------
limit.
----------------------
The central line of R-chart is located at R and control limits at R + 3σR
----------------------
Table 8.1 : Factors for Determining the 3-Sigma Control Limits for Control
Charts ----------------------
Number of Factor for Factor Factor for R Chart ----------------------
observations estimating for X Lower Upper
in the σ from R chart ----------------------
control control
sub-group limit limit ----------------------
(n) (d’) A2 D3 D4
----------------------
2 0.887 1.880 - 3.267
----------------------
3 0.591 1.023 - 2.575
4 0.486 0.729 - 2.282 ----------------------
5 0.430 0.577 - 2.115 ----------------------
6 0.395 0.483 - 2.004 ----------------------
7 0.370 0.419 0.076 1.924
----------------------
8 0.351 0.373 0.136 1.864
----------------------

Statistical Process Control (SPC) 157

 Notes 9 0.337 0.337 0.184 1.816
---------------------- 10 0.325 0.308 0.223 1.777
11 0.315 0.285 0.256 1.744
----------------------
12 0.307 0.266 0.284 1.716
---------------------- 13 0.300 0.256 0.308 1.692
---------------------- 14 0.294 0.249 0.329 1.671
15 0.288 0.235 0.348 1.652
----------------------
16 0.283 0.223 0.365 1.636
---------------------- 17 0.279 0.212 0.379 1.621
---------------------- 18 0.275 0.203 0.394 1.608
19 0.271 0.196 0.404 1.596
----------------------
20 0.268 0.187 0.414 1.585
----------------------
The formula for σR is somewhat complicated and hence the limits may be
---------------------- calculated using the following relations
UCLR = D4 R
----------------------
LCLR = D3 R
----------------------
The values of constant D3 and D4 can also be read from the table given in
---------------------- Table 8.1

---------------------- 8.7 STEPS TO PREPARE THE X-R CHART

---------------------- A pre-requisite to the preparation of the chart is the decision on the
---------------------- following aspects:
Quality characteristic refers to the property of the product which is to
----------------------
be assessed. The quality characteristic must be capable of being measured. In
---------------------- case of more than one quality characteristic, a separate chart is made for each
quality characteristic.
----------------------
Choice of rational subjects, the basic objective of a control chart is to
---------------------- separate out the variations due to chance and assignable causes. Each sample,
therefore, must be representative of a homogeneous segment of production, i.e.
---------------------- each sample should be a rational (or natural) sub group for which
---------------------- (a) the sample should be the output of a short period like half an hour or one
hour, since items manufactured in a short span of half an hour or one hour
---------------------- are expected to represent chance variability.
---------------------- (b) the items of the sample should be from the same machine setting.

---------------------- (c) the items should be of the same batch. (for example, castings poured from
the same heat)
----------------------
(d) items should be made by the same operator.
---------------------- (e) items should be made from the same raw material batch.

158 Techniques for Operations Efficiency

 Size of sub groups (sample size) refers to the number of pieces comprising Notes
each sample. Sample size is an important decision. It is common practice to
used sample of n = 4 or 5 to have low appraisal cost. Large samples such as n = ----------------------
15 or 20 are used if the process standard deviation is large.
----------------------
No. of sub groups (sample population) refers to the number of samples
to be collected to construct a control chart. The number of samples must be ----------------------
sufficient. Usually, 20 samples, each of size 4 or 5, are enough to have good
----------------------
estimates of the process average (X) and dispersion (R).
Time interval measures the time gap between consecutive samples. Time ----------------------
interval, as a general rule, should be proportional to the average frequency of
----------------------
out-of-control conditions. It is a fairly complex decision, since a number of
factors such as cost economy, susceptibility of the process to disturbances, ----------------------
convenience of the inspector, etc. require to be considered.
----------------------
The making of the X-R chart involves the following steps:
Step 1 : Collect data ----------------------
(a) Collect sufficient samples spread over a reasonable period. Each ----------------------
sample must be of an equal size.
----------------------
(b) Measure each component comprising the sample for the given
quality characteristics. ----------------------
(c) Record individual measurements on a work data sheet. ----------------------
Step 2 : Calculate mean ( ) and range (R) of each sample
----------------------
(a) The mean which is written as (X bar) is the average of each
sample and is obtained by totaling the individual measurements, of ----------------------
the units comprising the sample and dividing the total by the sample ----------------------
size (number of units in each sample).
(b) The range which is written as R is obtained as the difference between ----------------------
the highest and lowest measurement of a sample. ----------------------
(c) The values of and R are recorded samplewise, either on the
----------------------
extreme right of the individual measurements on the data sheet, or
on a separate table. ----------------------
Step 3 : Calculate the grand average ( ) and mean range (R) ----------------------
(a) The grand average which is written as (X double bar) is the
----------------------
average of the sample averages, and is obtained by dividing the total
of the averages of all the samples, by the total number of samples. ----------------------
(b) The mean range which is written as (R bar) is the average of ----------------------
the ranges and is obtained by dividing the total of the ranges of the
samples by the total number of samples. ----------------------

----------------------

----------------------

Statistical Process Control (SPC) 159

 Notes Step 4 : Set up a control chart for the average
(a) Set up a control chart with the central line drawn at , upper
----------------------
control limit located at + A2 R and the lower control limit set up
---------------------- at - A2
---------------------- (b) Plot the averages to see whether the process is under control when
samples were drawn.
---------------------- (c) If all the points fall within the control limits, then the process is said
---------------------- to be under control.
(d) If process is not under control (indicated by some points falling
---------------------- outside the control limits), eliminate the points outside the control
---------------------- limits and compute new trial control limits for the remaining points.
(e) Repeat step 4 (d) until all points fall within the control limits.
----------------------
(f) Control limits in a practical situation should be revised, from time
---------------------- to time as additional data is accumulated.
Step 5 : Calculate control limits of the range chart
----------------------
(a) The control chart for a range chart is set up with the central line as
---------------------- , upper control limit (UCLR) located at D4 above the central
line and the lower control limit (LCLR) at D3 below the central
----------------------
line.
---------------------- (b) Plot the value of the range of each sample.
---------------------- (c) If all points fall within the control limits, no modification is
necessary unless it is desired, to reduce the process dispersion.
---------------------- (d) If range chart exhibits lack of control indicated by some points
---------------------- falling outside the control limits, eliminate those points out of
control, and compute new trial control limits.
---------------------- (e) Repeat step 5 (d) until all points fall within the control limits.
---------------------- (f) Control limits in a practical situation should be revised from time to
time as additional data is accumulated.
----------------------
Step 6 : Use control chart
---------------------- (a) Collect samples of a fixed size at specified intervals of time.
---------------------- (b) Measure each unit of the sample for the quality characteristics,
calculate the mean and the range of each sample.
----------------------
(c) Plot the values of and R of each sample in their respective charts.
---------------------- (d) Study the trend of the points to interpret and suggest remedial action
(Ref. Fig. 8.8).
----------------------
(i) A continuous upward pattern indicates the wear of tools,
---------------------- threads and clamping devices, deterioration of the strength
of the solution, accumulation of dirt, clogging of fixtures
---------------------- and holes, and an abnormal rise in the temperature, etc.
---------------------- Trends should be investigated to determine if the process is

160 Techniques for Operations Efficiency

 “slipping”, and adjustments should be made, before an out of Notes
control condition occurs.
----------------------
(ii) A cyclical pattern, depicting
peaks and valleys, indicates ----------------------
the presence of variables
(namely worn-out positions, ----------------------
roller eccentricity, fatigue,
rotations of persons, etc.) ----------------------
which operate periodically. ----------------------
(iii) An erratic pattern of points
falling above and below ----------------------
the control limits, indicate
----------------------
defects in materials, frequent
adjustment of machines, ----------------------
poorly trained operators, etc.
----------------------
(iv) Hugging-points lying
close to the mean of ----------------------
the process indicate a
bias in measurements, ----------------------
recording done without
actual measurements, and ----------------------
an improper selection of ----------------------
samples (for example, the
selection of samples from ----------------------
different machines doing the same job)
----------------------
Fig 8.8: Trend of Points and their Interpretation
An illustration on making of the - R chart : ----------------------
A line inspector in an engineering company recorded dimensions of each ----------------------
of the five jobs, selected at the end of every half an hour, of five hours in the
morning. The quality characteristic is the measurement of the diameter whose ----------------------
design specification is 25.0 0.10.
----------------------
Sample Individual measurements of dia. (mm)
No. 1 2 3 4 5 ----------------------
1 25.00 25.01 25.00 25.03 25.01
2 25.00 25.03 25.00 25.04 25.03 ----------------------
3 25.01 25.02 25.02 25.03 25.02
----------------------
4 25.01 25.02 25.02 25.01 25.04
5 25.02 25.02 25.03 25.03 25.00 ----------------------
6 25.06 25.03 25.02 25.00 24.99
7 24.99 24.98 25.02 25.02 24.99 ----------------------
8 25.02 25.01 25.01 24.99 25.02
9 25.03 25.01 24.97 25.01 25.03 ----------------------
10 25.02 24.99 24.99 24.98 24.97 ----------------------
Plot X and R chart and find out which of the given observations are out
of control? ----------------------

Statistical Process Control (SPC) 161

 Notes Given constants A2 = 0.5768
D3 = 0
----------------------
D4 = 2.114
----------------------
Solution :
---------------------- Step 1 : Collect data
---------------------- This step has already been done in the case of this problem.
---------------------- Step 2 : Calculate the mean ( ) and the range (R)
The mean which is written as (X bar) is the average of each sample,
----------------------
and is obtained by adding individual measurements of each sample, and dividing
---------------------- the total by the sample size.
For sample 1, mean ( 1)
----------------------
1 = X11 + X12 + X13 + X14 + X15
----------------------
5
----------------------
= 25.00 + 25.01 + 25.00 + 25.03 + 25.01
---------------------- 5
---------------------- = 125.05

---------------------- 5
= 25.01
----------------------
The figures of average for different samples in the above problem have
---------------------- been computed as above and recorded in table 8.2.
---------------------- The range which is written as R is obtained as the difference between the
highest and the lowest measurement of a sample.
----------------------
For sample 1, the highest and the lowest measurements respectively are
---------------------- 25.03 and 25.00.

---------------------- ∴ Range (R) for sample 1 = 25.03 - 25.00

= 0.03
----------------------
The individual figures of range for different samples have been calculated
---------------------- as above and are recorded in column 3 of the above referred to table.
---------------------- Table 8.2 : Arithmetic Mean and Range of Each Sample

---------------------- Sample No. Arithmetic Mean Range (R)

1 25.01 0.03
---------------------- 2 25.02 0.04
3 25.02 0.02
----------------------
4 25.02 0.03
---------------------- 5 25.02 0.03
6 25.02 0.07
---------------------- 7 25.00 0.04

162 Techniques for Operations Efficiency

 Sample No. Arithmetic Mean Range (R) Notes
8 25.01 0.03 ----------------------
9 25.01 0.06
10 25.98 0.05 ----------------------
Step 3 : Calculate the grand average and the mean range ----------------------
The grand average, which is written as (X double bar) is the average of
----------------------
the averages. The grand average is calculated by totaling up the averages of all
the samples, and dividing the sum by the total number of samples. ----------------------

25.01 + 25.02 + 25.02 + 25.02 + 25.02 + 25.02 ----------------------

+ 25.00 + 25.01 + 25.01 + 24.98 ----------------------
X =
10
----------------------
250.10
= = 25.01 ----------------------
10
----------------------
The mean range which is written as R (R bar) is the average of sample ranges.
The mean range is calculated by adding the ranges of the samples, and dividing ----------------------
the sum by the total number of samples.
----------------------
0.03 + 0.04 + 0.02 + 0.03 + 0.03 + 0.07
----------------------
+ 0.04 + 0.03 + 0.06 + 0.05
R =
10 ----------------------
0.40
= 10 = 0.04 ----------------------

----------------------
Step 4 : Set-up a control chart for the average
----------------------
The control chart for average is set up with as the central line, upper control
limit set up at + A2R and lower control limit set up at - A2R. These ----------------------
are calculated as under:
----------------------
Central line = CLx = X = 25.01.
----------------------
Upper control limit = UCL = + A2.R
= 25.01 + 0.5768 x 0.04 ----------------------

= 25.01 + 0.0231 ----------------------

= 25.03 ----------------------
Lower control limit = LCL = - A2.R ----------------------
= 25.01 - 0.0231
----------------------
= 24.99
----------------------
The average chart for the above control limits is drawn in Figure 8.9
----------------------

Statistical Process Control (SPC) 163

 Notes The averages of the samples have been plotted into the chart, to see
whether or not the process is under control when the samples were drawn.
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

---------------------- Fig. 8.9 : Average Chart ( - Chart)

---------------------- Since the average of the tenth sample has fallen outside the limits,
therefore, it may be concluded that the process is not under control, and hence
---------------------- the average of this sample requires to be deleted from the test data and fresh
---------------------- control limits require to be calculated for the remaining points:

---------------------- 25.01 + 25.02 + 25.02 + 25.02 + 25.02 + 25.02 + 25.00 + 25.01 + 25.01
X = 9
---------------------- 225.13
= = 25.014
---------------------- 9
= 25.01
----------------------
0.03 + 0.04 + 0.02 + 0.03 + 0.03 + 0.07 + 0.04 + 0.03 + 0.06
---------------------- R = 9
---------------------- 0.35
= 9
----------------------
= 0.039
---------------------- Now revised control parameters of X-R chart:
---------------------- Central line = CL = = 25.01

---------------------- Upper control limit = UCL = + A2.
= 25.014 + 0.5768 x 0.039
----------------------
= 25.014 + 0.022
---------------------- = 25.036
---------------------- = 25.04

---------------------- Lower control limit = LCL = - A2.

= 25.014 - 0.022
---------------------- = 24.99

164 Techniques for Operations Efficiency

The control chart for the revised control limits is drawn in Fig. 8.10. Notes

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
Fig. 8.10: Revised Average Chart ( - Chart)
----------------------
The average of the samples excluding the deleted sample have also been
plotted into the chart. Since now all the points are within the control limits, the ----------------------
new X chart represents a process under control. ----------------------
Step 5 : The set up of a range chart
----------------------
The R-chart like the -chart consists of a central line and one upper control
----------------------
limit and one lower control limit located as under:
Central line = CLR = = 0.039. ----------------------

= 0.04 ----------------------
Lower control limit = LCLR = D3. ----------------------
= 0 x 0.039 ----------------------
= 0 ----------------------
Upper control limit = UCLR = D4.
----------------------
= 2.115 x 0.039
----------------------
= 0.082
----------------------
= 0.08
----------------------
The range chart for the above control parameters is drawn in Fig. 8.11.
The values of R for the test data have been plotted into the chart. Since all the ----------------------
points are within the control limits, therefore, variability is within the limits.
----------------------

----------------------

----------------------

----------------------

Statistical Process Control (SPC) 165

 Notes
0.08 UCL
----------------------
0.07
---------------------- 0.06

RANGE No.
0.05
---------------------- CL
0.04
---------------------- 0.03
0.02
---------------------- 0.01
LCL
---------------------- 0 1 2 3 4 5 6 7 8 9
SAMPLE No.
----------------------
Fig. 8.11: Control Chart for Range (R - Chart)
----------------------

---------------------- 8.8 CONTROL CHARTS BY ATTRIBUTES

---------------------- Another form of inspection is where the items comprising the sample
are classified into two factions, “acceptable” and “non-acceptable.” Such an
---------------------- inspection is termed as “inspection by attributes.”
---------------------- “Inspection by attributes” covers those situations where either
---------------------- (i) quantitative measurements are not possible, as with the inspection for
damages, scratches, blemishes (paint runs), matching of colour against a
---------------------- standard shade, presence of burrs, correct seating of the components in
the assembly etc., or
----------------------
(ii) quantitative measurements consume too much time as with the inspection
---------------------- of pitch diameters of threads, pitch circle diameter of drilled holes, etc.
---------------------- Here the inspection by attributes is faster as the decision, whether or not
a product is upto the standard, it is made with the help of “go” and “no-go”,
---------------------- gauges.
---------------------- The control charts made for this type of inspection are of two types :

---------------------- (i) Control chart for fraction defectives (p-chart)

(ii) Control chart for number of defects (c-chart)
----------------------

---------------------- 8.9 CONTROL CHARTS FOR FRACTION DEFECTIVES

(P-CHART)
----------------------
The control charts for fraction defectives is used where the products
---------------------- manufactured, in the shopfloor or products received from vendors are inspected
and classified, as either “accepted” or “rejected”. The rejected products may be
---------------------- further divided into “spoilage” and “rework”.
---------------------- To enable comparison, such situations demand the recording and
maintenance of records, of pieces inspected and accepted during different
---------------------- periods.

166 Techniques for Operations Efficiency

 Alternatively, records of a number of items rejected to the number of Notes
pieces inspected, called fraction defectives, are maintained.
----------------------
The Shewhart Control Chart for fraction defectives provides a simple
method to calculate control limits that tell whether variations from lot to lot are ----------------------
due to
----------------------
(i) assignable causes such as defects in gauges, operators, materials,
machines, vendors, ----------------------
or,
----------------------
(ii) chance causes.
----------------------
Basic theory underlying p-charts
The products, under the p-chart, are divided into two fRactions, ----------------------
“acceptable” and “non-acceptable.” This two way classification naturally leads ----------------------
to a binomial description of the standard error of the mean. The central line of
the fraction defectives is determined by the average percentage defectives (or ----------------------
average fraction defectives) p, and the limits of the percentage defectives are
obtained from the following formula: ----------------------

----------------------
p(1 − p)
Control limits = p ± 3 ----------------------
n
----------------------
Sample sizes for the construction of the p-chart are typically larger
(50,100, or even more) than for X-R charts. This is because “inspection by ----------------------
attributes” is much faster than “inspection by variables”. ----------------------
How is a p-chart constructed?
----------------------
The basic steps in the construction of a p-chart are as under:
----------------------
(i) The data on samplewise number of defectives is collected, and entered in
a data sheet. ----------------------
(ii) The proportion, ‘p’ of defective units in each sample is calculated by
----------------------
dividing, the number of defectives by the number of pieces in the sample,
i.e. ----------------------

p= Number of defectives
----------------------
Number of pieces inspected
----------------------
(iii) The sample wise percentage of defectives are aggregated into average
percentage defectives, , i.e. ----------------------
sample wise percentage defectives p
p = = ----------------------
Number of samples m
----------------------
Alternatively, p may be obtained by dividing the sum of the defectives in
all samples, by the total number of pieces in all samples. ----------------------

----------------------

Statistical Process Control (SPC) 167

 Notes (iv) The limits of p-chart are derived on the assumption that the distribution of
proportion of defectives follows binomial distribution with
----------------------

---------------------- Standard deviation =

Like any other control chart, p-chart too has three lines, a central line
----------------------
located at p and two limits UCLp and LCLp located respectively above
---------------------- and below the central line, at a distance equal to three standard deviation, i.e.

---------------------- Central line CLp =

---------------------- Upper control limit = UCLp = + 3.

----------------------
Lower control limit = LCLp = - 3.
----------------------
Since the value of p can never be negative, hence “if LCLp works out to
---------------------- be negative, it is taken as zero.”
---------------------- (v) The recorded data is compared with the calculated control limits to see
whether or not the sample wise fraction defectives are within the statistical
---------------------- control limits. At times, the investigation may reveal that the observations
are outside the control limits, which indicate a lack of control. Such
----------------------
observation data is left out and a fresh p for the rest of the sample data is
---------------------- calculated and fresh control limits are established.
An illustration on the making of a p-chart
----------------------
10 samples, each of size 50, of a pipe were inspected in pressure testing.
---------------------- The results of the inspection are given below :
---------------------- Sample No. : 1 2 3 4 5 6 7 8 9 10

---------------------- No. of defectives : 2 3 2 0 2 3 2 1 2 3

Draw a p-chart and state your conclusion.
----------------------
Solution :
----------------------
The samplewise fraction defectives are calculated as under:
---------------------- Sample No. No. of defectives Fraction defectives (p)
(1) (2) (3) =(2) : sample size
---------------------- 1 2 0.04
2 3 0.06
----------------------
3 2 0.04
---------------------- 4 0 0.00
5 2 0.04
---------------------- 6 3 0.06
7 2 0.04
---------------------- 8 1 0.02
---------------------- 9 2 0.04
10 3 0.06
---------------------- 0.40

168 Techniques for Operations Efficiency

Sum of fraction defectives = 0.40 Notes
∴ Average fraction defectives (p) = 0.40 = 0.04
----------------------
10
Alternatively average fraction defectives (p) may be calculated as under: ----------------------
Total number of items inspected = No. of samples x Units inspected in each ----------------------
sample
----------------------
= 10 x 50
= 500 ----------------------

Total number of defectives =

Sum of the defectives in all samples ----------------------
=
2+3+2+0+2+3+2+1+2+ 3 ----------------------
20 =
----------------------
Total number of defectives
Average fraction = p=
Total number of items inspected ----------------------
effectives
= 20 ----------------------
= 0.04
500
----------------------
Now control parameters of the p-chart.
----------------------
(i) Central line = p = 0.04
----------------------
p(1 − p) ----------------------
(ii) Upper Control Limit = p+
n
----------------------

----------------------
= 0.04 + 3
√ 0.04 (1-0.04)
50 ----------------------
= 0.04 + 0.083 ----------------------
= 0.123
----------------------
(iii) Lower Control Limit = p - 3.
√p (1-p)
n
----------------------

----------------------
= 0.04 - 3
√ 0.0450(1-0.04) ----------------------

----------------------
= 0.04 - 0.083
= -0.043 = 0 ----------------------

(Since the negative control limit is always taken as zero) ----------------------

The control chart for the fraction defectives calculated in the above table ----------------------
is shown in Fig.8.12
----------------------

Statistical Process Control (SPC) 169

 Notes

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
---------------------- Fig. 8.12: Control Chart for Fraction Defectives (P-Chart)

----------------------
8.10 CONTROL CHARTS FOR NUMBER - DEFECTIVES
---------------------- (NP-CHART)
---------------------- The np-chart, unlike the p-chart records the “number of defectives”
instead of “fraction or proportion of defectives.”
----------------------
The np-chart possesses the following additional benefits:
----------------------
(i) The control chart for the number of defectives is more convenient to make,
---------------------- than a control chart for fraction defectives, since the figure of the number
of defective units can be directly taken from the inspection report. This is
---------------------- specially useful in situations where the number of items in each sample is
the same.
----------------------
(ii) For controlling the process, the analyst is interested in the number of
---------------------- defectives rather than the fraction of defectives.
---------------------- The control parameters of the np-chart are calculated as under:
---------------------- (i) Calculate
Total number of defectives
---------------------- =
Total number of units inspected

---------------------- (ii) Determine control parameters (i.e. Central Line, UCL and LCL)
----------------------
Central Line = CLnp = n.
----------------------
UCLnp =

----------------------

---------------------- LCLnp =

170 Techniques for Operations Efficiency
An illustration on the making of a np-chart Notes
For the data given in the illustration for the p-chart (page 170), construct
----------------------
a np-chart and comment on the same.
Solution : ----------------------
Total number of defective pieces ----------------------
p =
Total number of pieces inspected
----------------------
Sum of defective pieces in all samples
= ----------------------
Number of samples x Samples size
20 ----------------------
= = 0.04
10 x 50 ----------------------
The control parameters are calculated as under : ----------------------
Central line = CLnp = n p = 50 x 0.04 = 2 ----------------------

Upper Control Limit (UCLnp) = n.p+3.

√ n. p (1-p) ----------------------

= 2+3 √50 x 0.04 (1 - 0.04) ----------------------

= 2 + 3 x 1.39 ----------------------

= 2 + 4.17 ----------------------
= 6.17 ----------------------
Lower Control Limit (LCL np) = n. p -3 √ n.p (1-p)
----------------------
= 2 - 3 x 1.39
= 2 - 4.17 ----------------------

= - 2.17 ----------------------
= 0 (Since negative control limit is always - - - - - - - - - - - - - - - - - - - - - -
taken zero)
----------------------
Fig. 8.13 gives a graphical analysis of the np -chart
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

Fig. 8.13: Control Chart for Number of Defectives (np-Chart) ----------------------

Statistical Process Control (SPC) 171

 Notes Since all observed points are within the control limits, the process is under
control.
----------------------
The p and np chart for the varying sample size
---------------------- The sample size may not always be fixed. There can be some situations
where the number of items inspected on each occasion varies. A typical example
----------------------
of such a situation is that of an inward inspection where the sample size varies
---------------------- as per the lot size.
The value of n to be used in the formula for the control limits is obtained,
----------------------
by taking the average of different sample sizes. To arrive at the average figure,
---------------------- the “sum of the number of units inspected” is divided by the “number of lots
inspected.”
----------------------
We present below an illustration to explain the concept:
---------------------- Six consecutive lots received from a vendor were inspected, by a sampling
---------------------- process by the inward inspection of the buyer. The sample size was varied as
per the variations in the lot size. The number of defectives of each sample were
---------------------- recorded as under:
---------------------- Sample No. : 1 2 3 4 5 6

---------------------- Lot size : 2850 1860 480 970 4385 2568

Sample size : 125 125 50 80 200 125
----------------------
No. of defectives
: 1 3 - 2 4 1
----------------------
Solution :
----------------------
p = Total number of defective items
---------------------- Total number of items inspected
---------------------- = 1+3+0+2+4+1

---------------------- 125 + 125 + 50 + 80 + 200 + 125

= 11
---------------------- = 0.016
705
----------------------
Since the sample size is varying for each lot, therefore to find control
---------------------- limits, we need to calculate n, the average number of pieces inspected per lot.
n = Total number of pieces inspected
----------------------
No. of lots inspected.
----------------------
= 125 + 125 + 50 + 80 + 200 + 125
---------------------- 6
---------------------- = 705 = 117.5
---------------------- 6

----------------------

172 Techniques for Operations Efficiency

Now the control parameteres of the p-chart : Notes
Central line = CLp = p = 0.016
----------------------
UCLp = p + 3.
√ p (1 - p)
n ----------------------

= 0.016 + 3
√ 0.016 (1 - 0.016)
117.5
----------------------

----------------------
= 0.016 + 3 x 0.0116
----------------------
= 0.016 + 0.035
= 0.051 ----------------------

LCLp =
√ p (1n- p)
p - 3. ----------------------

----------------------
= 0.016 - 0.035
----------------------
= - 0.019
= 0 ----------------------

And the control parameters of np-chart : ----------------------

Central line = CLnp = n . p ----------------------

= 0.016 x 117.5 ----------------------
= 1.88
----------------------
UCLnp =
√
n . p + 3 n .p (1- p)
----------------------
= 1.88 + 3 √ 0.016 * 117.5 (1-0.016)
----------------------
= 1.88 + 4.08
----------------------
= 5.96
LCLnp
√
= n . p - 3 n .p (1- p) ----------------------

= 1.88 - 4.08 ----------------------

= - 2.2
----------------------
= 0
8.11 CONTROL CHARTS FOR THE NUMBER OF ----------------------
DEFECTS (C- CHART) ----------------------
What are c-charts? ----------------------
The quality of some of the industrial products is controlled, by controlling
the number of defects per unit. A certain number of defects may be tolerable, ----------------------
but the number of defects per unit needs to be watched, controlled and reduced. ----------------------
For example, the quality of a
----------------------
(i) glassware is determined by the number of bubbles in it.
(ii) fiber is adjudged based on number of weak spots in a given length. ----------------------

Statistical Process Control (SPC) 173

 Notes (iii) cloth is set by the number of imperfections in a given length.
(iv) printing is controlled by controlling the number of errors (over exposures/
----------------------
under exposure, smudges etc.) per printed sheet.
---------------------- A control chart to exhibit the counted data for the number of defects is
called the c-chart. The quality characteristics in this chart, therefore, is the
----------------------
number of defects per unit. A product may have more than one defect, but all
---------------------- the defects are not of equal importance.
Theory underlying c-chart :
----------------------
The products under a c-chart are studied for the number of defects per
---------------------- unit of the product. The defects could occur at any spot, but the probability of
---------------------- their occurrence at a particular spot is very small, whereas the number of spots
where the defects can occur is very large. Such a situation is correctly described
---------------------- by a poison distribution with mean equal to average number of defects in all
samples, say c, and the standard deviation equal to c
----------------------
Control limits of the c-charts :
---------------------- In lieu of the above, the central line is located at the mean number of defects
---------------------- per unit, while the upper and the lower control limits are located at a distance
of three standard deviations above and below the central line respectively i.e.
----------------------
Central Line = CLc =
---------------------- Upper Control Limit (UCLc) = c + 3
---------------------- Lower Control Limit LCLc) = c - 3
---------------------- “since the value of c can never be negative, hence if the lower control
limit (LCLc) works out to be negative, then it is taken to be equal to zero.”
----------------------
The sample size in a c-chart is usually fixed which may be either
----------------------
●● xed length for example, coil winding of a fixed length of wire. The
fi
---------------------- breaks observed in this length of wire constitute defects.
●● area of the surface for example, surface blemishes on a painted component.
----------------------
●● s ingle part for example, number of defects in an individual component,
---------------------- gear, shaft, wheel, pulley etc.
---------------------- ●● c ompleted assembly e.g. a scooter, a cycle, a T.V., a radio etc. The number
of defects here imply, the number of defects in the constituent assemblies.
---------------------- An illustration on the making of a c-chart :
---------------------- Ten woollen carpets were studied critically for a total number of defects
in their texture. The details of the number of defects in each carpet are given
---------------------- below:
---------------------- Carpet No. : 1 2 3 4 5 6 7 8 9 10

---------------------- No. of defects

: 2 4 3 5 1 3 2 3 4 3
All ten carpets, however, were regarded as “acceptable” by the quality
---------------------- control department of the company.

174 Techniques for Operations Efficiency

Construct a control chart for the number of defects and comment on the results. Notes
Solution : Here ----------------------
Central line = c = Total number of defects
Number of carpets ----------------------

= 2 + 4 + 3 + 5 + 1 +3 +2 +3 + 4 + 3 ----------------------
10
----------------------
= 30 =3
10 ----------------------
Upper Control Limit (UCLc) = c +3 c ----------------------
= 3+3 3 ----------------------
= 3 + 3 x 1.732 = 3 + 5.2 = 8.2
----------------------
Lower Control Limit (LCLc) = c - 3 c = 3 - 5.2 = - 2.2 = 0
----------------------
Fig 8.14 : shows the chart for the number of defects.
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
Fig. 8.14: Control Chart for Defects (C- Chart) ----------------------
Since all points are within the control limits, the process is under statistical
----------------------
control.
----------------------
8.12 NEED FOR PROCESS CAPABILITY STUDIES
----------------------
Statistical process control techniques help to achieve and maintain a
----------------------
process distribution, that does not change in terms of its mean and variance.
Control limits on the control chart give signal-points falling outside the limits, ----------------------
when the mean or variability of the process changes. However, a process that
is in statistical control may not produce products or services according to the ----------------------
design specifications because control limits merely consider the mean and the
----------------------
variability of the process (actual performance of the product) and not the design
specifications (i.e. independent of the design requirements). Process capability ----------------------
studies tend to correlate the process distribution and design specifications.
----------------------

Statistical Process Control (SPC) 175

 Notes For example, assume merely that the design specifications for the bore
of the elastomer of a valve, has a nominal value of 100mm and tolerance of ±
---------------------- 0.50mm. This tolerance gives an upper specification of 100.50mm and a lower
specification of 99.50mm. The process producing the elastomer must be capable
---------------------- of producing within these design specifications, failing which some percentage
---------------------- of output will be defective.
Process capability studies ascertain whether the process is capable of
----------------------
producing the product, within the limits set by the Upper Specification Limit
---------------------- (USL) and the Lower Specification Limit (LSL).
The Process Capability studies can be used for
----------------------
●● reducing the risk of the production of a non-conforming product.
----------------------
●● e stablishing the desirable inspection methods and the frequency of the
---------------------- inspection.
●● e valuating the condition of the machines for reconditioning or otherwise
----------------------
of replacement.
---------------------- ●● identifying or selecting the operators for a particular process.
---------------------- ●● identifying the need for adjusting the machine parameters.
●● p redicting the extent to which the process will meet the specifications or
---------------------- the expectations of the customer.
---------------------- ●● r edesigning and implementing a new process that eliminates the sources
of variability currently at work.
----------------------
●● c hoosing, from among the competing processes, the most appropriate one
---------------------- for meeting the specifications.

---------------------- ●● s pecifying quality characteristics or design specifications of purchased

machines, materials or other supplies.
---------------------- ●● t esting the theories of the causes of defects, during quality improvement
programs.
----------------------

---------------------- 8.13 FUNDAMENTALS OF PROCESS CAPABILITY

1. Certain amount of variability is inevitable, in spite of removing all the
---------------------- assignable causes. This inherent variation of the process is termed as the
---------------------- process capability and it equals 6.
i.e. the process capability of the process = 6 where is the standard deviation
---------------------- of the population/lot.
---------------------- 2. Standard deviation of the population ( ) can be estimated by R/d2 where
R is the mean range obtained from the distribution of ranges, and d2 is the
---------------------- constant depending upon the value of sample size (n).
---------------------- 3. Each quality characteristic has permitted variations, governed by the
upper and the lower specification limits.
----------------------
Permitted variations = USL - LSL
---------------------- (or specification tolerance)

176 Techniques for Operations Efficiency

4. Three types of relationships are possible between the process capability Notes
and the specification tolerance
----------------------
i. The process capability is smaller (Fig. 8.15) than the specification
tolerance (i.e., the process is capable of meeting the requirements). ----------------------
Some actions that can be thought of are:
----------------------
a) Use of less precision machines
b) Possibility of squeezing tolerances ----------------------
c) Reduction in inspection ----------------------

----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------
Fig. 8.15
ii. The process capability is approximately equal (Fig. 8.16) to the ----------------------
specification tolerance (i.e. process is just adequate). ----------------------
Some actions that can be thought are :
----------------------
 Greater attention to centering of the process
 Keep mean and standard deviation under strict control. ----------------------
 Shift the job to a slightly more precise machine. ----------------------
 Put efforts to reduce variability
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

Fig. 8.16 ----------------------

Statistical Process Control (SPC) 177

 Notes iii. The process capability is higher (Fig.8.17) than the specification
tolerance (i.e. process is incapable of meeting the requirements).
----------------------
Some actions that can be thought of are:
----------------------  Non-conformance is inevitable
----------------------  100% inspection required.

----------------------  Review specifications

 Reduce variability
----------------------
 Switch over to a more precise machine.
----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

---------------------- Fig. 8.17

5. The process can be made capable by
----------------------
 reducing process variability (reducing standard deviation)
----------------------
 bringing the target and the average to fall at the same point
----------------------  examining the possibility of relaxing specifications if the customer
---------------------- allows it.

---------------------- 8.14 ESTIMATION OF THE PROCESS CAPABILITY

---------------------- Process capability is measured by calculating two indices of the process
---------------------- capability, known as Cp and Cpk.
i) Cp calculates capability of the process by measuring the overall process
---------------------- performance, considering both, the positive and negative deviations.
---------------------- ii) Cpk calculates the capability of the process by measuring the clustering
effect, on the upper specification limit and the lower specification limit.
----------------------
Steps to measure process capability are shown in the flow chart (Fig. 8.18)
----------------------

----------------------

178 Techniques for Operations Efficiency

 Decide on the purpose of measuring Notes
process capability ----------------------

----------------------
Select machine / process
----------------------

----------------------
Describe / chart a process
----------------------

Identify sources of variations (people, ----------------------

equipment, materials, environment. etc.) ----------------------

----------------------
Make the process stable by removing
----------------------
assignable causes
----------------------

----------------------
Make measurements of variation by
drawing representative samples ----------------------

----------------------
Estimate likely overall variation ± 3 ----------------------
standard deviations within specification
normally means process considered ----------------------
capable (process capability) ----------------------

----------------------

Reduce variations due Is process ----------------------

to chance causes capable? ----------------------

----------------------
Calculate control limits, extrapolate and ----------------------
give to the operators to control process
----------------------

----------------------
Calculate capability indices
----------------------

----------------------
End
----------------------
Fig. 8.18: Steps for Measuring Process Capability
----------------------

Statistical Process Control (SPC) 179

 Notes Process Capability Index(Cp )
Process Capability index (Cp ) is the measure of capability of the process
----------------------
to meet the specification limits. It is the ratio of the “specification width”
---------------------- (Difference between the Upper Specification Limit, USL and the Lower
Specification Limit, LSL) and “process spread” (the process capability of a
---------------------- stable process and equals 6 )
---------------------- Specification width
i.e Capability Index (Cp ) =
Process width
---------------------- Upper Specification Limit - Lower Specification Limit
=
6 x Standard deviation
----------------------
USL - LSL
=
---------------------- 6σ

---------------------- If the process is under statistical control, standard deviation can be estimated
---------------------- from the data of the control chart as under:

---------------------- R where R = Mean of the ranges of the samples

=
d2 d2 = Constant whose value depends on the sample size.
----------------------
Factor d2 can be picked up from the following table (partial table reproduced)
----------------------
Table : Factors for estimating σ
----------------------
n d2
----------------------
2 1.128
---------------------- 3 1.693
---------------------- 4 2.059
5 2.326
----------------------
6 2.534
----------------------
7 2.704
---------------------- 8 2.847
---------------------- 9 2.970
---------------------- 10 3.078

---------------------- Main characteristics of the capability index are as follows :

●● There is no upper limit for Cp .
----------------------
●● Cp does not take into account any non-centering of the process.
---------------------- ●● Non-centering reduces the margin of safety.
---------------------- Typical Cp values and their significance is given in table 8.3

----------------------

----------------------

180 Techniques for Operations Efficiency

 Table 8.3 : Typical Cp Values and Their Significance Notes
Cp value Graphical representation Meaning ----------------------
Cp < 1 Process variations exceed the
specifications resulting in high ----------------------
failure rate. A Cp value of 0.50, for ----------------------
example, will render around 13.36%
of the production defective. ----------------------
Cp = 1 The process is just adequate to meet ----------------------
the specification limits. A minimum
of 0.27% defective will occur. More ----------------------
defectives can occur if the process is
off-centre. ----------------------

Cp > 1 The process scatter lies within the ----------------------

specification limits. No defective
----------------------
will occur as long as, the process
is under a state of control and the ----------------------
process average coincides with the
specification average (i.e. the process ----------------------
is centered on the target value)
----------------------
Since in real life neither is the centering of process perfect, nor is the
process completely free from assignable causes (or special causes), a Cp value ----------------------
higher than unity is adopted to prevent the occurrence of defectives. A Cp value ----------------------
of 1.33 is generally recommended for firms in the engineering industry.
The capability index(Cp ) works well as long as the process is perfectly ----------------------
centered (i.e where the mean value of the measurement corresponds exactly ----------------------
to the target value - nominal value of the specification). Otherwise, inspite of
excellent process capability (Cp value higher than unity), defectives can still ----------------------
occur. Therefore, both centering and process spread need to be controlled (Fig.
8.19). ----------------------

The drawback of the first capability index(Cp ) – inability to measure ----------------------

off-centering of the process – is overcome by the second capability index, Cpk.
----------------------
To calculate the Cpk value, two capability ratios Cpu and Cpl, which
measures the “one-sided process scatter” (capability at the upper and lower ----------------------
specification limits) are first determined.
----------------------
Distance between upper specification limit and process mean
Cpu = 3 σ ----------------------

USL - ----------------------
=
3σ ----------------------

----------------------

----------------------

Statistical Process Control (SPC) 181

 Notes

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

---------------------- Fig. 8.19: Process with Good Cp but Off Centering Causing
Defective Production
----------------------
Distance between lower specification
---------------------- limit and process mean
Cpl = 3σ
----------------------

---------------------- X - LSL
= 3σ
----------------------
The smaller of the two values, which correspond to the higher deviation is Cpk i.e.
----------------------
Smaller of [ ( USL - X ), ( X - LSL)]
---------------------- Cpu = 3σ
----------------------
Some typical values of Cpk for Cp = 1.33 are given in Fig. 8.20
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

182 Techniques for Operations Efficiency

 An illustration on the computation of Notes
process capability
----------------------
The control chart of an automat has the
following statistics to offer : ----------------------
= 25.01
----------------------
= 0.03
n =5 ----------------------

Specification = 25 ± 0.02 ----------------------

Value of the constant d2 for a sample size of ----------------------
5 = 2.326
----------------------
a) Calculate Cp and Cpk of the machine
b) Is the process capable of meeting the - - - - - - - - - - - - - - - - - - - - - -
specifications?
----------------------
c) Is the process correctly centered?
----------------------
Solution :
(a) = 25.01 ----------------------

d2 = 2.326 ----------------------
Fig. 8.20: Different Values of n =5
----------------------
Cpk Keeping Cp = 1.33 R = 0.03
----------------------
Specification = 25 ± 0.02
----------------------
Upper specification limit = 25.02
Lower specification limit = 24.98 ----------------------
USL - LSL ----------------------
Cp = 6σ
σ = R / d2 ----------------------
= 0.03/2.326 = 0.01289 ----------------------
USL = 25.02
----------------------
LSL = 24.98
25.02 - 24.98 ----------------------
Cp = 6 x 0.01289 = 0.517
----------------------
Cpk =
[
Lowest of (USL - X ), ( X - LSL)
3σ 3σ
] ----------------------
= [
Lowest of (25.02 - 25.01), (25.01 - 24.98)
3 x .01289 3 x .01289
] ----------------------

----------------------
= (0.2586, 0.7658)
----------------------
= 0.2526
----------------------

Statistical Process Control (SPC) 183

 Notes (b) The process is not capable of meeting specifications (Fig. 8.21) because
Cp < 1. The variations produced by the process is more than that allowed
---------------------- as per specifications, i.e. design variations are more than the natural
tolerance or the process tolerance.
----------------------

----------------------

----------------------

---------------------- Normal distribution

----------------------

----------------------

---------------------- 24.98 25.0 25.02

----------------------
---------------------- Fig. 8.21
---------------------- (c) The process is not centered as the value of Cpk < 1 (Fig. 8.22). Also since
Cpk < 1, the process is incapable of meeting the specifications.
----------------------

----------------------

----------------------

---------------------- Large defectives

----------------------

----------------------

---------------------- Fig. 8.22

---------------------- Even if we centre the process, there would still be some defective parts
(Fig. 8.23). This is because Cp < 1.
---------------------- Say, we centre at 25 = n
----------------------

----------------------

----------------------

---------------------- Defectives

----------------------

----------------------

---------------------- Fig. 8.23

184 Techniques for Operations Efficiency

Another illustration on process capability Notes
Rubber seats used in the butterfly valves are produced at Atur Rubber, Pune. The
----------------------
specifications of the internal diameter of the seat (one of the key characteristics) is
250 ± 0.5. Individual measurements of the characteristics in 10 samples, each ----------------------
of 5 pieces are given below:
----------------------
Sr Individual Measurements x R
No. 1 2 3 4 5 ----------------------
1 250.03 250.00 250.04 250.04 250.05 250.032 0.05 ----------------------
2 250.02 250.03 250.02 25.05 250.02 250.028 0.03
3 250.00 250.02 250.04 250.04 25.03 250.026 0.04 ----------------------
4 250.08 250.05 250.01 250.03 25.03 250.034 0.08 ----------------------
5 250.00 249.98 250.04 250.00 250.01 250.006 0.06
----------------------
6 250.08 250.00 250.97 250.01 25.01 250.010 0.09
7 250.01 250.02 250.02 250.05 250.06 250.032 0.05 ----------------------
8 250.08 250.05 250.05 250.10 250.06 250.068 0.04
----------------------
9 250.08 250.05 250.04 250.10 25.04 250.062 0.06
10 250.10 250.08 250.05 250.04 25.05 250.064 0.06 ----------------------
(a) Calculate the process capability ratio (Cp ) ----------------------
(b) What is the sigma level of the process? ----------------------
Solution :
----------------------
= 250.036
----------------------
= 0.056
----------------------
Specification = 250 ±0.5
Upper specification limit = 250.5 ----------------------
Lower specification limit = 249.5 ----------------------
Tolerance spread = T = USL - LSL
----------------------
= 250.5 - 249.5
= 1.0 ----------------------
Process capability Analysis ----------------------
Process standard deviation = σ = R / d2
----------------------
= 0.056 / 2.326
----------------------
= 0.024
Process capability = 6σ = 6 x 0.024 ----------------------
= 0.144 ----------------------
Process Capability Ratio = Cp = T / 6σ
----------------------
= 1 / 0.144
= 6.994 ----------------------

Statistical Process Control (SPC) 185

 Notes
[
Process Capability Index = Cpk = Min. ( USL - X ), ( X - LSL)
3σ 3σ
]
----------------------
= Min [ 6.46 , 7.44]
----------------------
= 6.46
----------------------
Since Cp > 2, it is 6σ process
---------------------- One more illustration on process capability ratios :
---------------------- A control chart was prepared and it gave the following statistics:

---------------------- Specifications = 20 ± 4
S.D. of the population = 0.333 (=1/3)
----------------------
Calculate Cp and Cpk values if
---------------------- i. = 19, UCL = 21, LCL = 17

---------------------- ii. = 20, UCL = 22, LCL = 18

iii. = 21, UCL = 23, LCL = 19

----------------------
iv. = 22, UCL = 24, LCL = 20

---------------------- v. = 23, UCL = 25, LCL = 21

---------------------- Solution :

---------------------- Upper Specification Limit (USL) = 24

Lower Specification Limit (LSL) = 20
----------------------
S.D. of the process = 0.3333 (=1/3)
----------------------
USL - LSL
---------------------- Cp =
6σ
---------------------- Cpk = Min USL - X ,
[ X - LSL
]
---------------------- Values of Cp and Cpk for different values of control charts have been
---------------------- calculated, using the above formula and tabulated as well as graphed in fig.
8.24.
---------------------- LSL USL
---------------------- µ Cp Cpl Cpu Cpk
---------------------- 19 2 1.5 2.5 1.5

----------------------
µ 20
16 17 18 21 22 23 24
---------------------- LSL USL
---------------------- µ Cp Cpl Cpu Cpk
20 2 2.0 2.0 2.0
----------------------

---------------------- 16 17 18 19 µ 21 22 23 24

186 Techniques for Operations Efficiency

LSL USL Notes
µ Cp Cpl Cpu Cpk
----------------------
21 2 2.5 1.5 1.5
----------------------

16 17 18 19 20 µ 22 23 24 ----------------------

LSL USL ----------------------

µ Cp Cpl Cpu Cpk ----------------------
22 2 3.0 1.0 1.0
----------------------
16 17 18 19 20 21 µ 23 24 ----------------------

LSL USL ----------------------

µ Cp Cpl Cpu Cpk ----------------------

23 2 3.5 0.5 0.5 ----------------------
16 17 18 19 20 21 22 µ 24 ----------------------
Fig. 8.24
----------------------
When to conduct the process capability analysis?
Process capability analysis should be undertaken when ----------------------

 planning to buy or procuring a machine/plant. ----------------------

 changing the use of the existing machine/plant. ----------------------
 setting up the production process
----------------------
 altering/modifying the production process
----------------------
 ascertaining whether the suppliers’ process can fulfill the specifications.
Precautions to be taken : ----------------------

The following should be ensured while conducting the process capability studies: ----------------------
i. The process must be stable ----------------------
ii. An experienced person should be allotted to conduct the study.
----------------------
iii. No change should be made in the process during the study.
----------------------
iv. Process factors and conditions should be maintained as required.
----------------------

----------------------

----------------------

----------------------

----------------------

Statistical Process Control (SPC) 187

 Notes TYPE OF
DATA
----------------------
VARIABLE ATTRIBUTE
----------------------

---------------------- SAMPLE DEFECTS DEFECTIVES

SIZE
----------------------
NUMBER AVE/UNIT NUMBER PROPORTION
n≥ 25 n>12 n≤ 12 n=1
---------------------- <25
n
CONSTANT
n NOT
CONSTANT
n
CONSTANT
n NOT
CONSTANT

---------------------- X bar X bar X bar X bar c u np p

σ S R MR
----------------------

---------------------- Fig. 8.25: Decision Tree for Choice of Control Chart

---------------------- Summary
---------------------- ●● Control charts are an important statistical tool for quality control. They
---------------------- display the results of inspecting, a continuous process and separate
random variations due to real assignable causes from normal variations
---------------------- due to chance causes. Such a running commentary as to what is happening
in the process provides a convenient and rapid feedback, suggesting when
---------------------- adjustments, corrections or overhauls may be needed.
---------------------- ●● Control charts are basically of two types (i) control charts by variables
(e.g. X - R charts), and (ii) control charts by attributes (for example,
---------------------- p-chart, np-chart and c-chart). The parameters of the control charts (each
---------------------- chart consists of a central line, a upper control limit, and a lower control
limit) are based on sound statistical principles, regarding the behaviour of
---------------------- sample means.
●● Process capability refers to the ability of the process to meet design
----------------------
specifications. Process capability is measured in terms of capability
---------------------- indices.

----------------------
Keywords
----------------------
●● C Chart :The defects chart (c-chart) which records the number of defects
---------------------- in a component / product.
●● Control Charts : A control chart is a visual display of the results of the
----------------------
inspection of the samples of a product. A control chart consists of three
---------------------- lines, a central line, upper control limit and a lower control limit.
●● NP Chart: The number defective chart (np-chart) which records the
----------------------
number of defective items in a sample.
---------------------- ●● Statistical Process Control (SPC) : The application of statistical
techniques for the purpose of process control, process evaluation and
----------------------

188 Techniques for Operations Efficiency

 process improvement to achieve defect-free production and pursue Notes
neverending improvements.
●● PChart : The fraction defective chart (p-chart) which records the ----------------------
proportion of defective items in a sample. ----------------------
●● Process Capability : Process capability refers to the ability of the process
to meet the design specifications for a product or a service. Design ----------------------
specifications are expressed as a nominal value (or target value) and a ----------------------
tolerance (i.e allowance below the nominal value).
●● Process Capability Index (CP) : Process Capability index (Cp ) is the ----------------------
measure of capability of the process to meet the specification limits. It ----------------------
is the ratio of the “specification width” (Difference between the Upper
Specification Limit, USL and the Lower Specification Limit, LSL) and ----------------------
“process spread” (process capability of a stable process and equals 6).
----------------------
●● RChart : The range chart (R-chart) which measures the spread of the
process. ----------------------
●● Bar Chart : The average chart ( -bar chart) which measures the ----------------------
central tendency of the process.
----------------------
●● -R Chart : Since average chart and range charts are usually used
together, they are commonly known as -R charts. ----------------------
●● Control charts by attributes are basically the following ----------------------

----------------------
Self-Assessment Questions
----------------------
1. What are control charts? How are they made and used in controlling a
process? ----------------------
2. Why are the average of samples used in control charts rather than ----------------------
individual readings?
----------------------
3. When would you use the following control charts:
i. Average chart ----------------------
ii. Range chart ----------------------
iii. Number defective chart ----------------------
iv. Fraction defective chart
----------------------
v. Defect chart
----------------------
4. What are p-charts? Explain briefly the steps in the making of a p-chart.
How does it help the management and shopfloor personnel? ----------------------
5. In a certain factory producing metal sheets, a sample of 5 sheets is taken
----------------------
every hour. The mean thickness and the range observed for each sample
gave the following information. Draw a control chart for the mean and ----------------------
examine whether the process is under control or not; it is being given that
for n=5, A2 = 0.58. ----------------------

Statistical Process Control (SPC) 189

 Notes Sample No. 1 2 3 4 5
---------------------- Mean thickness 0.025 0.032 0.062 0.022 0.028
Sample range 0.025 0.048 0.012 0.012 0.019
----------------------
Sample No. 6 7 8 9 10
----------------------
Mean thickness 0.010 0.025 0.040 0.026 0.029
---------------------- Sample range 0.010 0.006 0.046 0.010 0.032
---------------------- M.B.A/PU.May/1972
---------------------- [Ans. : CL = 0.030, UCL = 0.045 and LCL = 0.017. The process
is not under control].
----------------------
6. The control on the pitch diameter of threads of aircraft fittings is exercised
---------------------- by measuring 5 consecutive pieces at regular intervals. Five such samples
are given below (values are expressed in units of 0.0001 inch).
----------------------
Sample No. Measurement of each sample 5 pieces per hour
----------------------
1 46 45 44 43 42
---------------------- 2 41 41 44 42 40
---------------------- 3 40 40 42 40 42
4 42 43 43 42 45
---------------------- 5 42 44 47 47 45
---------------------- Construct a - R chart and state whether the process is in a state of
---------------------- control. Given the value of constants A2, D3 and D4 for a sample size of
5 as 0.5768, zero and 2.114 respectively.
----------------------
[Ans.: CL = 42.88, UCL = 44.96 and LCL = 40.80. The process is
---------------------- not under a state of control. Mean of sample 5 is out of statistical limits].
7. In a certain bottling industry, the quality control inspector recorded the
----------------------
weight of each of the five bottles, selected at random during each hour for
---------------------- four hours in the morning.

---------------------- Time Weight (ounces)

---------------------- 8-00 am 41 43 42 41 43
9-00 am 39 40 40 39 42
----------------------
10-00 am 41 04 43 46 41
---------------------- 11-00 am 38 39 40 39 39

---------------------- Plot and R charts and find which of the given observations are out of
control.
----------------------
Given the constants : A2 = 0.577; D3 = 0; D4 = 2.144
----------------------
- M.B.A/PU/May 1972
----------------------

190 Techniques for Operations Efficiency

 [Ans.: CL = 41 ounces, UCL = 42.73 and LCL = 39.27, CLR = Notes
3, UCLR = 6.34. and LCLR = 0. Observation taken at 10 am. is out of
----------------------
control].
8. ABC company manufactures a solvent which is packed in one kg cans. ----------------------
It utilises an automatic filling equipment and desires to maintain the ----------------------
nominal one kg filling within ±10 gms. It takes a sample of five cans. The
following table shows the individual measurements for filling of the last ----------------------
five samples. Set up a control chart and establish whether the process is
under control. ----------------------

Sample No.
Individual Measurement (gms) ----------------------
1 2 3 4 5 ----------------------
1 1001 1002 1000 998 999
----------------------
2 999 998 1001 998 999
3 995 1002 1003 1001 1002 ----------------------
4 1000 1001 999 998 1002
----------------------
5 994 996 996 1001 999
The values of constants A2 , D3, and D4 for the sample size of five are ----------------------
0.577, zero and 2.155 respectively.
-M.B.A/PU/May/1978 ----------------------
[Ans.: (i) CLx = 999.36, UCLx= 1014.96 and LCLx=983.76 ----------------------
(ii) CLR = 15.6,LCLR = 0 and UCLR = 32.99 ----------------------
(iii) The process is under control.
----------------------
9. ABC company produces a solvent which must contain 3 percent of
alcohol. It tries to maintain the actual percentage at 3 ± 0.3 percent. It ----------------------
tests hourly in samples of five. The following table shows the results of
----------------------
the last five samples. Set up a control chart for the mean and examine
whether the process is under control. ----------------------
Sample % Alcohol ----------------------
1 2 3 4 5
----------------------
1 2.9 2.8 3.0 2.8 3.1
2 2.9 3.0 3.0 3.0 3.0 ----------------------
3 3.0 3.1 3.1 3.1 2.9 ----------------------
4 3.0 3.0 3.0 3.0 3.0
5 2.9 3.0 3.1 2.9 3.1 ----------------------

The value of constants A2 , D3 , and D4 for the sample size of five are ----------------------
0.5768, zero and 2.155 respectively.
----------------------
- DBM/PU/May/1979
[Ans.: (i) CLx = 2.99, UCLx = 3.08 and LCLx = 2.90 ----------------------
(ii) The process is under control. ----------------------

Statistical Process Control (SPC) 191

 Notes 10. Six consecutive lots of a gear were inspected by a sampling process at the
final inspection. The number of defectives observed in different samples,
---------------------- each sample consisting of 100 pieces each, are given below:
---------------------- Sample No. : 1 2 3 4 5 6
No. of defectives : 2 5 4 3 6 4
----------------------
Draw a control chart for the fraction defectives.
----------------------
[Ans.: CLp = 0.04, UCLp = 0.10 and LCLp=0]
---------------------- 11. A patrolling inspector at Vikas Engineers recorded the following daywise
---------------------- output, of L-15 slip rings in a work week of six days. The data also gives
the number of defectives found in the day’s production:
---------------------- Day : 1 2 3 4 5 6
---------------------- Qty. produced : 540 484 512 528 532 404
---------------------- No.of defectives : 20 13 15 15 19 12

---------------------- Using each day’s output as the day’s sample; construct a control chart for
the fraction defectives. [Ans : CLp = 0.030, UCLp = 0.053,and LCLp =
---------------------- 0.007]

---------------------- 12. Eight pieces of cloth of 2m x 2m size produced out of a synthetic fiber
were closely studied for foreign threads (i.e. defects). The results of the
---------------------- study are as under:

---------------------- No. of cloth piece : 1 2 3 4 5 6 7 8

No. of foreign threads : 12 6 8 4 10 8 9 15
----------------------
Construct a suitable control chart for the above data and give your
---------------------- comments on the results.
---------------------- [Ans. CLc = 9, UCLc = 18 and LCLc = 0]

---------------------- 13. Why is it desirable to measure process capability? How is it measured?

14. Control chart ( X - R chart) for the 50 NB valve seats produced at Spurti
---------------------- Rubbers has the following statistics to offer :
---------------------- = 50.054

---------------------- = 0.065

---------------------- n(sample size) =5

---------------------- Seat specifications = 50 ± 0.50

(a) Calculate limits of the control chart (X - R chart)
----------------------
(b) Calculate Cp and Cpk of the moulding process.
----------------------
(c) Is process capable of meeting the requirement?
---------------------- (d) Is process correctly centered?
----------------------

192 Techniques for Operations Efficiency

 Reproduced below is the partial table of constants for varying sample Notes
sizes :
----------------------
Sample size d2 A2 D3 D4
3 1.693 1.023 Zero 2.575 ----------------------

4 2.059 0.729 Zero 2.282 ----------------------

5 2.326 0.577 Zero 2.115 ----------------------

Answers to Check your Progress ----------------------

----------------------
Check your Progress 1
Fill in the blanks. ----------------------
1. Control charts is a good tool for process control. ----------------------
2. Normal distribution is one of the best known statistical relationships ----------------------
----------------------
Suggested Reading
----------------------
1. Barlow, R. E. & Irony, T. Z. (1992) “Foundations of statistical quality
control” in Ghosh, M. & Pathak, P.K. (eds.) Current Issues in Statistical ----------------------
Inference: Essays in Honor of D. Basu, Hayward, CA: Institute of
Mathematical Statistics, 99-112. ----------------------
2. 
Bergman, B. (2009) “Conceptualistic Pragmatism: A framework for ----------------------
Bayesian analysis?”, IIE Transactions, 41, 86–93
----------------------
3. Deming, W E (1975) “On probability as a basis for action”, The American
Statistician, 29(4), 146–152 ----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

Statistical Process Control (SPC) 193

 Notes

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

194 Techniques for Operations Efficiency

Kaizen
UNIT

9
Structure:

9.1 Introduction

9.2 Benefits of Kaizen

9.3 Kaizen Principles

9.4 Characteristics of a Good Kaizen

9.5 Types of Kaizen

9.6 Kaizen Opportunities

9.7 The Kaizen Process

9.8 A Typical Kaizen System

9.9 Kaizen Techniques

Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

Kaizen 195
 Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
●● State the concept of Kaizen.
---------------------- ●● Explain the Kaizen principles and techniques.
---------------------- ●● Analyse the Kaizen process.
---------------------- ●● Show how to apply Kaizen to a given process.

----------------------
9.1 INTRODUCTION
----------------------
Kaizen is a combination of two Japanese words, “Kai” and “Zen”. Kai
----------------------
means “to change or modify” and Zen means “to improve or make better” and
---------------------- together they translate as “Improvement”. Kaizen when used in the context of a
management process, has come to mean, a continual and slow improvement in
---------------------- every aspect of management (i.e. improvement in whatever the company does
and the way it does things), through the active involvement of all the company’s
----------------------
employees.
---------------------- Kaizen does not just merely mean doing things better but it is an unending
process to eliminate muda (i.e. waste), improve quality, cost and delivery,
----------------------
thereby creating more and more customers. A few definitions of Kaizen are -
---------------------- Kaizen is a management supported, employee driven process, where
---------------------- employees seek development of their own capabilities, by challenging the
existing system and finding improvement in them.
---------------------- - R. R. Asawa & Dr. D.R. Baheti
---------------------- Kaizen is a programme, a philosophy, and a strategy to improve the quality
of goods and services of an organisation.
----------------------
- Samuel KHO
----------------------
Kaizen means making a great number of continuous lasting improvements,
---------------------- by discovering small problems and eliminating them permanently (attacking
root causes of the problems), thereby helping the organization in setting and
---------------------- reaching higher standards of performance.
---------------------- - Surindra Narang

---------------------- The spirit of kaizen is that whatever you are doing, you can do better. Kaizen
thus helps in setting and reaching higher standards of performance.
---------------------- The word “Kaizen” was used for the first time by Maasaki Imai, who wrote
---------------------- a book of same name. Although a registered name of the Kaizen Institute, the
word is now widely used and understood, all over the world to mean “continuous
---------------------- improvement”. The word “Kaizen” now also appears in the English dictionary.
Recently, Imai has elaborated on Kaizen in his book tilted “Gemba Kaizen”.
----------------------

196 Techniques for Operations Efficiency

9.2 BENEFITS OF KAIZEN Notes

Kaizen benefits the organization in the following ways : ----------------------

1. Kaizen stimulates companywide continuous improvements. It provides a ----------------------

scientific approach to improve productivity by eliminating waste arising
from inconsistency (MURA), inadequacy (MURI), defects, accidents, ----------------------
waiting, unnecessary transportations, etc. ----------------------
2. Kaizen generates process oriented thinking.
----------------------
3. Kaizen emphasises on the implementation of ideas, not merely generation
of ideas. ----------------------
4. Kaizen brings about alignment between the objectives of the organisation ----------------------
and those of its employees.
----------------------
5. Kaizen foster better understanding between the workers and management.
6 Kaizen promotes harmonious relations among the employees. Since ----------------------
improvement done in a group are recognised as being superior to the ----------------------
improvement done individually, harmony through group working by
employees gets the fillip. ----------------------
7. Kaizen stimulates creativity among the company’s employees. ----------------------
8. Since employees are expected to implement improvement at their
----------------------
workplace, it leads to empowerment of employees.
9. Since the Kaizen system requires improvements to be made with zero ----------------------
investment, it pushes productivity to its new heights.
----------------------

9.3 KAIZEN PRINCIPLES ----------------------

Kaizen companies exhibit certain common traits of management style / ----------------------

process, which may be considered as Kaizen’s principles.
----------------------
The key principles are as follows:
----------------------
 Focus on customers (external and internal).
 Challenge the “status quo” (i.e. seek continuous improvement in products, ----------------------
services and processes).
----------------------
 Surface problems (i.e. acknowledge problems openly and bring them to
the surface). ----------------------
 Try to get to the root cause (don’t try to solve problems superficially). ----------------------
 Blame the process and not the persons.
----------------------
 Encourage employees to be creative and innovative i.e. use employee’s
creative urge to find better ways to do their jobs. ----------------------
 Foster an environment of openness, honesty and frankness. ----------------------
 Create work teams (i.e. use the team as a primary unit of the organization). ----------------------

Kaizen 197
 Notes  Manage projects cross functionally.
 Nurture supportive relationships (vertically as well as laterally) in the
----------------------
organization.
----------------------  Develop self discipline, a sense of personal responsibility and
accountability.
----------------------
 Inform every employee (i.e. communicate continuously, comprehensively
---------------------- and in depth).
----------------------  Enable employees (i.e. set employees for success).
 Avoid being a perfectionist.
----------------------

---------------------- 9.4 CHARACTERISTICS OF A GOOD KAIZEN

---------------------- 1. A good Kaizen is simple (offers the simplest and best way to achieve the
---------------------- purpose), effective (fixes the problems permanently) and revolutionary
(looks from a point of view not explored earlier).
---------------------- 2 A good Kaizen provides a permanent solution to the problems by
---------------------- identifying their root causes.
3. A good Kaizen corresponds to the departmental and company’s goals and
---------------------- policies.
---------------------- 4. A good Kaizen makes effective use of available resources.
---------------------- 5. A good Kaizen requires little or no investment to implement.

---------------------- 6. A good Kaizen produces no negative side effects (i.e. does not give rise to
new problem in the same or other areas).
----------------------
9.5 TYPES OF KAIZEN
----------------------
Kaizen depending upon the complexity and level, can be placed into one
----------------------
of three categories: (1) Management Kaizen (2) Group Kaizen (3) Individual
---------------------- Kaizen.

---------------------- (i) Management oriented Kaizen concentrates on strategic issues and

often involve people from different departments working together on
---------------------- cross-functional problems such as project teams. Typical examples of
management oriented Kaizen are -
----------------------
 Identification and elimination of waste in workers motions
----------------------  Changes in plant layout for better efficiency
----------------------  Reduction in buffer stocks
----------------------  Just-in-time production
 System improvement
----------------------
(ii) Group oriented Kaizen concentrates on improvement within the same
---------------------- workplace or department, brought about by the employees working

198 Techniques for Operations Efficiency

 in small groups, called quality circles. Typical areas for group Kaizen Notes
generally include–
----------------------
 Productivity improvement
 Defect prevention ----------------------
 Accident prevention ----------------------
 Absenteeism ----------------------
(iii) Individual oriented Kaizen concentrates on issues concerning the worker’s
own work area, and improvements are brought about through the worker’s ----------------------
own suggestions. Problems solved through individual Kaizen generally ----------------------
include –
 Improvement in machines and processes. ----------------------

 Improvement in jigs and fixtures ----------------------

 Reduction in defect level ----------------------
 Customer service and customer complaints ----------------------
 Improvement in working environment
Techniques (Modern) for Operations Efficiency ----------------------
Table 9.1 gives characteristics of three categories of Kaizen
----------------------
Table 9.1
Table 9.1
----------------------
# Management Kaizen Group Kaizen Individual Kaizen

1. Focus Focus on improvements Focus on improvements Focus on im- ----------------------

in systems and within the same provements within
procedures workplace one's own work area ----------------------
2. Involvement Managers and QC-Circle members Everybody
professionals ----------------------
3. Duration Lasts until the completion Requires four to six Anytime
of the Kaizen project months to complete ----------------------
4. No. of As many as the Two to three per year Many
Kaizens management decides ----------------------
5. Implementation Some Kaizens may require Mostly inexpensive Inexpensive
cost a small investment to ----------------------
implement the decision
6. Results New system and facility Improved work procedure, On-the-spot ----------------------
improvement Revision of standard improvement
7. Support Line and staff project Small-group activities, Suggestion system ----------------------
system teams QC Circles,
Suggestion system ----------------------
8. Benefits Improvement in Moral improvement Morale improvement
managerial performance ----------------------
9. Change in Sudden upgradation of Gradual change in Gradual change in
current status current status current status current status ----------------------
10. Tools Seven old statistical Seven statistical tools Seven statistical
tools + Seven new + Common sense tools + Common ----------------------
statistical tools + sense
Professional skills ----------------------

----------------------
9.6 KAIZEN OPPORTUNITIES

Kaizen
Gemba offers numerous opportunities for Kaizen, limited only by employees' observations 199
and enthusiasm in identifying problems. Some useful techniques to identify Kaizen themes
are shown in Fig. 9.2
 Notes
Check your Progress 1
----------------------

---------------------- Fill in the blanks.

1. Kaizen means _______.
----------------------
2. Kaizen generates _______ oriented thinking.
----------------------

----------------------
Activity 1
----------------------

---------------------- 1. List the principles of Kaizen.

2. List the types of Kaizen.
----------------------

----------------------
9.6 KAIZEN OPPORTUNITIES
----------------------
Gemba offers numerous opportunities for Kaizen, limited only by employees’
---------------------- observations and enthusiasm in identifying problems. Some useful techniques
to identify Kaizen themes are shown in Fig. 9.2
----------------------

---------------------- 9.7 THE KAIZEN PROCESS

---------------------- Kaizen process provides a disciplined and analytical approach, some times
called the Kaizen story to problem solving. It consists of a series of sequential
---------------------- steps that can be used to guide a group (say an improvement team), for the
---------------------- process of identifying and fixing problems. The Kaizen story (or Kaizen
process) is built on PDCA mnemonic - Plan, Do, Check and Act. The Kaizen
---------------------- process is a seven step basic procedure which allows any individual or team to
solve problems scientifically, rationally, effectively and efficiently. These seven
---------------------- steps are -
---------------------- 1. Defining the problem
---------------------- 2. Understanding / assessing the current status
3. Finding the root cause
----------------------
4. Planning counter measures
----------------------
5. Implementing counter measures
---------------------- 6. Verifying results
---------------------- 7. Standardising and establishing control
---------------------- A brief on each of the steps in the Kaizen process is given. (Table 9.2)

----------------------

----------------------

200 Techniques for Operations Efficiency

 Poka- Yoke for
failsafing
Model machine
exercises in TPM
Exercises to identify MURA
(inconsistency), MUDA (waste)
Notes
and MURI (strain) exercises
Cost of
Quality Spotting abnormalities at Gemba ----------------------
(Management by
SMED / JIT walking around : MBA)
Targets Problems ----------------------
Internal customer’s
5-S Audits complaints
----------------------
ISO-9000, QS-9000 and External customer’s
ISO-14000 complaints
non-conformities ----------------------
Define problems ----------------------
Enlist problems
----------------------
Prioritise problems
----------------------
Select topics for Kaizen
(called themes)
----------------------
Assign themes to
Kaizen teams
----------------------
Conduct PDCA-SDCA
improvement cycles ----------------------
Fig. 9.1 : Problem detection phase ----------------------
Table 9.2 ----------------------
# Process steps Objective Element of PDCA
----------------------
cycle
1. Defining the problem Identification of the The “PLAN” element ----------------------
problem
----------------------
2. Understanding/ Establishing the base - do -
Assessing Current from which you are ----------------------
status trying to improve
3. Finding the root cause Identifying underlying - do - ----------------------
causes of the problem ----------------------
4. Planning counter Preparing action plan - do -
measures to fix the problem ----------------------
5. Implementing counter Implementing the The “DO” element
----------------------
measures action plan
6. Verifying results Confirming the effect The “CHECK” ----------------------
of Implemenation element
----------------------
7. Standardising and Consolidating The “ACT” element
establishing control the change of element of SDCA ----------------------
PDCA and / or + The STANDARDISE
----------------------
When Deming cycle is used as a tool for systematic problem solving
(improvement), the PDCA activities take the form as shown in Fig. 9.2 ----------------------

----------------------

----------------------

Kaizen 201
 Notes 1. Defining the Problem
Problems usually are of the following kinds :
----------------------
(i) Gap in performance i.e. difference between the ideal situation or
---------------------- objective and the current level (Fig. 9.3)
---------------------- For example

----------------------  Difference in target invoicing and current invoicing

 Project running behind schedule
----------------------
Plan What 1. Define the problem

---------------------- 2. Assess current status

---------------------- Why 3. Analyse root cause

---------------------- How 4. Plan counter measures

----------------------
Do 5. Implement counter measures
----------------------

---------------------- Check 6. Verify results

----------------------
No
Initiate OK?
---------------------- corrective
action Yes
----------------------
Yes Further
---------------------- improvement?

No
----------------------
7. Standardise via SDCA
----------------------

---------------------- END

----------------------
Fig. 9.2 : Pictorial form of Kaizen
Control characteristics

---------------------- process (procedural steps derived

from a PDCA cycle)
----------------------
(ii) Deviation from an established
---------------------- norm

---------------------- (i.e. something is going wrong).

For example -
----------------------
 Increase in defect rate
---------------------- Time
 Drop in market shares
----------------------  Rise in customer Fig. 9.3: What is problem?
complaints
----------------------

202 Techniques for Operations Efficiency

(iii) Unclear / Undecided action plans to Notes
achieve an outcome.
----------------------
For example -
----------------------
 How to improve failing business?
 How to improve customer satisfaction? ----------------------

 How to enter a new market? ----------------------

Since the problem may not present itself in its real form, it is usually necessary ----------------------
to enhance our understanding of the problem. If the problem is one that relates
the problem to improvement, it is essential to determine the current status. ----------------------
2. Assessing the current status ----------------------
To solve a problem, we must obtain a clear picture of the current situation.
----------------------
The following actions are advised under the Kaizen approach:
(i) Go to the gemba (the real place where the problem has occurred) and ----------------------
observe carefully what is happening there i.e. look at the gembutsu, ----------------------
the machines which are in use, the output of the processes, the work
environment, etc. ----------------------
(ii) Initiate the necessary corrective or palliative action firstly to control ----------------------
the damage (minimize loss) and secondly to create a degree of
urgency among the operators, to understand the problem and to ----------------------
contribute to its solution.
----------------------
(iii) Perform root cause analysis (discussed in the next step) to establish
the underlying cause(s). ----------------------
(iv) Gather more data if the current situation is not very clear and the ----------------------
picture is still blurred. For information gathering, it is desirable to
visit the gemba again and involve the people in the problem and its ----------------------
solution.
----------------------
3. Finding the root cause
----------------------
Root cause analysis is a central tenet of Kaizen. Root cause analysis
is intended to ensure that we solve the right problem (not merely an ----------------------
operational manifestation of it) and we go to the root of what is actually
causing the problem. ----------------------
Kaizen, in search of root cause(s), advises use of the “why-why technique” ----------------------
(i.e. asking why several times - say four or five times)to dig out several
causes out of which one may be the root cause. ----------------------

Q. Why was the consignment of valves not shipped on time? ----------------------

A. Because the operator took too much time to machine the valve ----------------------
bodies.
----------------------
Q. Why did operators take too much time to machine valve bodies?
A. Because machining allowance was excessive. ----------------------

Kaizen 203
 Notes Q. Why machining allowance was excessive?
A. Because the pattern was defective.
----------------------
Q. Why was a defective pattern sent to the foundry?
----------------------
A. Because it was not inspected.
---------------------- Q. Why it was not inspected?
---------------------- A. Because the purchase department did not follow the established
“Qualification procedure for pattern” due to urgency.
----------------------
By repeating why a few times, it was possible to identify the real cause and
---------------------- the hence real solution. (i) correct the defective pattern and (ii) enforce
discipline (i.e. ensure employees to follow laid down procedures and do
---------------------- not take short cuts). If the analyst had not gone through such repetitive
---------------------- questions, he might have settled for an intermediate countermeasure, such
as working overtime, firing workers etc.
----------------------
The root cause analysis uses a number of the classic problem solving
---------------------- tools :
 Checksheets
----------------------
 Pareto analysis to discover the largest and the most pressing
---------------------- problems in a process.
----------------------  Fish bone analysis
 Histograms
----------------------
 Scatter plots
----------------------
 Control charts to provide a visual display of the inspection result of
---------------------- product. It incorporates carefully derived statistical limits, which helps
to discriminate between the variability due to random causes and the
----------------------
variability due to assignable causes.
---------------------- Employees at all levels must be trained in use of seven basic tools. Many
of these tools - graphs, histograms etc. are now built into the standard
----------------------
computer software, thereby enabling easy access and analysis.
---------------------- In addition to the above classic problem solving tools, the experience and
---------------------- judgment of the people at the gemba also help to identify root causes.
4. Planning countermeasures helped
----------------------
The next step, part of planning, is to involve people at the gemba to
---------------------- draw out (or enlist) the action plan to fix the problem. Tools such as the
Fishbone analysis (used both in analysis and planning) and brainstorming
---------------------- may be used for the purpose:
---------------------- (i) Fishbone analysis is used both in analysis and in planning. It
provides a good visual condensation of a lot of disparate facts,
----------------------
which proves very valuable in drawing a plan.
----------------------

204 Techniques for Operations Efficiency

 (ii) Brainstorming helps to generate many creative ideas, out of which Notes
some can be selected to put up a plan.
----------------------
Planning the step also helps to evolve the criterion for evaluation, (i.e.
checking later after doing) at a later date to see whether the plan is ----------------------
successful.
----------------------
5. Implementing countermeasures
The next logical step is to put the plan into action, which may involve ----------------------
either a one time or a piece meal implementation. When implemented
----------------------
on a piece meal basis (a complex plan), the plan is separated into its
components, each component is implemented and checked separately. ----------------------
In either case the involvement of the people at the gemba is a must. ----------------------
6. Verifying results
----------------------
It is the check element of the PDCA cycle. It reviews whether the
implementation is successful and the problem has been solved. The ----------------------
review is performed both in its component parts and the degree to which
it is affecting, the totality of the problem being solved. ----------------------

7. Establishing a new standard ----------------------

If the problem has been solved or the objectives set earlier have been ----------------------
achieved, and the new system is working, the next step in Kaizen is to
establish a new standard. ----------------------
Standard, earlier somewhere in the text, is defined as the ‘current right ----------------------
way of doing a job.’ The word ‘current’ in the definition is significant as it
reflects the implicit assumption, that the new method is the best current practice ----------------------
and that a possibility to make an improvement over it exists, and therefore an ----------------------
alternative to this method will be developed.
Once the problem has been cured, or the desired objective is being met, ----------------------
we move from PDCA to SDCA. The change over is intended to assure that the ----------------------
new method (or new standard), will continue to deliver the specified output.
SDCA has the following significance. ----------------------
Standardise (the S of SDCA) is to assure, through supervision and ----------------------
operating self discipline, the standard is consistently being followed.
----------------------
D (the D of SDCA) is to assure people are following the established
methods developed as that best way of doing it. ----------------------
Check (the C of SDCA) to assure that it is continuing to deliver the
----------------------
outcome which we have specified.
Act (the A of SDCA) to assure that we embark upon the whole Kaizen ----------------------
process (i.e. start Kaizen story again), if desired results are nor being achieved.
----------------------
And if it is working, we need to focus on the next question “How do we
improve further”? ----------------------

----------------------

Kaizen 205
 Notes 9.8 A TYPICAL KAIZEN SYSTEM
---------------------- The salient features of a typical Kaizen system (e.g. Godrej Soaps Ltd.) are
as follows :
----------------------
(1) The management formally announces autonomy to the employees, to
---------------------- think of improvement and implement changes in their work areas. The
only condition is that, the changes must be made without asking for any
---------------------- investment.
---------------------- (2) The organisation is divided into groups of people, of approximately 10 in
each group.
----------------------
(3) Each group meets once in a month for a period of one hour. Attendance at
---------------------- the meeting is mandatory.
---------------------- (4) Each participant present in the meeting is allowed six minutes of listening
time. The employee is expected to report every improvement, however
---------------------- small, implemented by him during the past one month. Future plans are
not permitted to be presented. The size of the group is kept small and time
----------------------
limit of six minutes per employee is specified so that meeting does not
---------------------- become boring. Also, since one hour per month is not too much a time
away from work, there is no excuse from the line management to spare
---------------------- employees.
---------------------- (5) The other employees are required to listen. They neither praise nor
criticise.
----------------------
(6) A write-up of all the improvements is handed over by the employee to the
---------------------- Management Representative / Senior person present at the meeting.

---------------------- (7) The superior listens to the participants, reads their reports after the meeting
and awards marks on a 0-100 scale, to each participant.
---------------------- (8) The improvements made by the employees along with their names are
---------------------- displayed on the notice board and filed together with the employee’s
write-ups to create a record of the improvements.
----------------------
The typical approach - the Kaizen System - described above offers many
---------------------- benefits :
 It is an excellent method to involve employees to unearth and eliminate
----------------------
hidden waste.
----------------------  Since meetings occur regularly (every month), there is psychological
pressure to find and implement improvements so that something is
----------------------
reported. The fear of being ridiculed by colleagues and the fear of being
---------------------- identified by superiors as non-performers, if they have nothing to report,
act, as a strong motivator for most of the employees to act.
----------------------
 Regular meetings also help to institutionalise the continuous search for
---------------------- improvement and introduce the element of self-sustainability.

----------------------

206 Techniques for Operations Efficiency

9.9 KAIZEN TECHNIQUES Notes
Kaizen helps the organisation to improve quality by continuous improvement ----------------------
of its work processes. Kaizen looks at the process as a part of quality, and
quality as a part of the process. It employs a set of techniques as listed below to ----------------------
improve its work processes.
----------------------
1. Five S of housekeeping : A structured approach for achieving a clean and
orderly work place by fixing a place for every thing, and every thing in its ----------------------
place. 5 S is an abbreviation of the Japanese words Seiri, Seiton, Seiso,
----------------------
Seiketsu and Shitsuke meaning - Seiri - getting rid of unnecessary items.
Seiton - arranging items (materials, tools, gauges) systematically for easy ----------------------
retrievability.
----------------------
Seiso - Keeping the work place unscrupulously clean.
----------------------
Seiketsu - scheduling regular cleaning and clearing out operations.
Shitsuke - making all the above tasks meet agreed standards, at agreed ----------------------
intervals and not merely doing things when they get to be a mess.
----------------------
2. Muda elimination: Muda means “waste” and muda elimination in
the context of Kaizen implies an “on going” and systematic reduction/ ----------------------
elimination of waste. There are seven kinds of major waste ----------------------
 Muda of over Production
----------------------
 Muda of Stock
 Muda of Transport ----------------------
 Muda of Defects ----------------------
 Muda of Delay ----------------------
 Muda of Motion
----------------------
 Muda of Overprocessing
It helps to eliminate a redundant processes or parts of a process, delete ----------------------
non-value added activities, simplify motions, minimise fatigue, reduce / ----------------------
eliminate waiting, search etc. thereby making the system lean and agile.
----------------------
3. Poka-Yoke : Poka-Yoke is a powerful and comprehensive method of
“error proofing,” a work process to eliminate inadvertent errors, thereby ----------------------
ensuring quality products and services. Poka-Yoke must form a corner
stone of the policy of defect prevention and defect detection. ----------------------
4. SMED: Single Minute Exchange of Die (SMED) is a technique of ----------------------
performing a set up operation (i.e. effecting a machinery setup for change
over from one job to another) in a lesser amount of time (i.e. in fewer than ----------------------
10 minutes expressed as a single digit).
----------------------
The benefits of SMED includes reduced work-in-process, better average
daily production, increased capacity to meet customer demands and faster ----------------------
delivery to customers.
----------------------

Kaizen 207
 Notes 5. Total Productive: TPM is keeping machines in good working condition.
Maintenance (TPM) The systematic maintenance of equipment so

---------------------- that they fail less frequently, and the production process they support
---------------------- continues without interruption.
6. Just-in-Time: JIT is a management philosophy aimed at eliminating
---------------------- waste
---------------------- Management (JIT) from every aspect of manufacturing and its related

activities.
----------------------
The term JIT refers to producing only what is needed, when it is needed
---------------------- and in just the quantity needed. JIT is a pull through production scheduling
and inventory control system, that ensures a well-timed flow of units from
---------------------- suppliers into the production area, hence on to and down a production line
---------------------- and finally into packaging and dispatch, to the point of sale. JIT eliminates
non-value added activities, reduces (or eliminates) expensive stocks and
---------------------- ensures availability of required materials just prior to its use (i.e. just in
time), achieved by either an expensive computer programme or by the use
---------------------- of an inexpensive manual control system in the form of cards.
---------------------- 7. Kanban: Kanban is a manual production scheduling technique
controlled by a process (or machine) operator. Kanban, which means
---------------------- a card in Japanese, is attached to a given number of parts or products
in the production line, instructing the delivery of a given quantity. The
----------------------
Kanban card, after all parts / products have been used up, is returned by
---------------------- the operator to its origin (i.e. another operator upstream of his/her on the
production or in the supply line) where it becomes an authorisation to
---------------------- produce more. Production, in the Kanban system, is thus controlled or
pulled through by demand, often originating from the ultimate (external)
----------------------
customer.
---------------------- 8. Process oriented: Traditional management focuses mainly on results,
and management (POM) individuals on their ultimate achievement, while
----------------------
Kaizen management is the process oriented management, wherein the
---------------------- emphasis is on process of achieving results. Managers / executives in POM
are judged, by such people centered skills as time management, education
---------------------- and training, intra - team participation and team performance, number
of improvement suggestions generated, morale boosting, communicating
---------------------- and satisfying customers. (internal and external)
---------------------- 9. Visual Management: Visual management is a method of providing, in
a clearly visible manner, to both workers and management, information
---------------------- on the current status including the target of various operations / activities
performed as well as various work pieces (e.g. reworks, rejects, jigs and
---------------------- fixtures and machines) found at the work place.
---------------------- 10. Work Standards: Work standards represent the best way of doing a
job and it consists of a set of documented policies, rules, directives and
---------------------- procedures established by the management, for all major operations to
enable employees to perform their jobs without errors and to enable the
----------------------
management to minimize variations in output, quality, work-in-progress

208 Techniques for Operations Efficiency

 and cost. Three elements of standardised work are time, work sequence Notes
and standard work-in-progress. The key steps in implementing work
standards are (i) identify the key issues in the current process (e.g. cycle ----------------------
time, quality, staffing, inventory level, safety etc) (ii) map the process,
(iii) improve the process, (iv) implement the process, and (v) sustain the ----------------------
process (through effective communication and on-going commitment)
----------------------
11. The PDCA/SDCA: The PDCA (Plan-do-check-act) cycle is an endless
improvement cycle which demands that each team Plans (establishes a ----------------------
target for improvement and devises an action plan to achieve target), and
----------------------
Does (implement the plan), Checks (monitors and evaluates effects), and
Acts (Standardise new procedures or set goals for further improvement). ----------------------
Since every process in the beginning is usually unstable, it must be
standardised using SDCA (standardize-do-check-act) cycle. Thus, a ----------------------
SDCA cycle must precede every PDCA cycle to consolidate (standardise
----------------------
and build) gains into the current process before raising the standard
threshold. ----------------------
12. Statistical Process: Statistical process control is the application of
----------------------
statistical
Control (SPC): techniques to control a process, (limiting process
 ----------------------
variations to chance causes) and eliminating process variations due to ----------------------
assignable causes (e.g. worn out cutting tool, a misadjusted machine tool,
a misdirected Kanban card). Statistical Process Control requires operators ----------------------
to do periodically sampling of the quality of their own output, enter data
into control charts, analyse the trend / plotted data, decide for themselves ----------------------
when to shut down the process, and / or when to make adjustments / ----------------------
corrections to the process to prevent defectives.
13. Suggestion Systems: Suggestion Systems - the fundamental to the ----------------------
Kaizen philosophy - is the process owned by employees though designed ----------------------
to benefit the company, in viting the employee to suggest / implement
any idea, large or small, novel or mundane, concerning any aspect of the ----------------------
company’s life.
----------------------
Check your Progress 2 ----------------------

True / False ----------------------

1. Kaizen helps in setting and reaching higher standards of performance. ----------------------

2. 5 S, SMED are techniques of Kaizan ----------------------

----------------------

----------------------
Activity 2
----------------------
List the Kaizen techniques.
----------------------

Kaizen 209
 Notes Summary
---------------------- ●● Kaizen is a management supported, employee driven process, where
employees make a large number of continuous lasting improvements by
----------------------
discovering small problems and eliminating them permanently, thereby
---------------------- helping the organisation in setting and reaching higher standards of
performance. Kaizen can be of three types : (i) Management Kaizen, (ii)
---------------------- Group Kaizen, and (iii) Individual Kaizen.
----------------------
Keywords
----------------------
●● Five S of housekeeping A structured approach for achieving a clean and
---------------------- orderly work place by fixing a place for every thing, and every thing in its
place. 5 S is an abbreviation of the Japanese words Seiri, Seiton, Seiso,
----------------------
Seiketsu and Shitsuke
---------------------- ●● Muda elimination Muda means “waste” and muda elimination in
the context of Kaizen implies an “on going” and systematic reduction/
----------------------
elimination of waste.
---------------------- ●● Poka-Yoke Poka-Yoke is a powerful and comprehensive method of
“error proofing,” a work process to eliminate inadvertent errors, thereby
----------------------
ensuring quality products and services.
---------------------- ●● SMED Single Minute Exchange of Die (SMED) is a technique of
performing a set up operation (i.e. effecting a machinery setup for change
----------------------
over from one job to another) in a lesser amount of time (i.e. in fewer than
---------------------- 10 minutes expressed as a single digit).
●● Total Productive TPM is keeping machines in good working condition.
----------------------
●● Maintenance (TPM) The systematic maintenance of equipment so that
---------------------- they fail less frequently, and the production process they support continues
without interruption.
----------------------
●● Just-in-Time JIT is a management philosophy aimed at eliminating
---------------------- waste
---------------------- ●● Management (JIT) from every aspect of manufacturing and its related
activities.
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

210 Techniques for Operations Efficiency

 Notes
Self-Assessment Questions
----------------------
1. What is Kaizen? What advantages can an organisation derive from the
implementation of Kaizen? ----------------------
2. “Kaizen helps in setting and reaching higher and higher standards of
----------------------
performance”. Discuss.
3. Discuss briefly the techniques of Kaizen. ----------------------

4. What is the Kaizen process? What are its key steps? ----------------------
5. What are the different types of Kaizen? How do you compare them with ----------------------
each other?
----------------------
6. “Kaizen companies exhibit certain common traits of management style
/ process called Kaizen principles”. Describe briefly the key Kaizen ----------------------
principles.
----------------------
Answers to Check your Progress ----------------------
Check your Progress 1 ----------------------
Fill in the blanks.
----------------------
1. Kaizen means continuous improvement.
----------------------
2. Kaizen generates system oriented thinking.
Check your progress 2 ----------------------

True / False ----------------------

1. True ----------------------
2. True
----------------------

Suggested Reading ----------------------

1. Dinero, Donald (2005). Training Within Industry: The Foundation of. ----------------------
Productivity Press. ISBN 1-56327-307-1. ----------------------
2. Graban, Mark; Joe, Swartz (2012). Healthcare Kaizen: Engaging Front-
----------------------
Line Staff in Sustainable Continuous Improvements (1 ed.). Productivity
Press. ISBN 1439872961. ----------------------
3. Maurer, Robert (2012). The Spirit of Kaizen: Creating Lasting Excellence
----------------------
One Small Step at a Time (1 ed.). McGraw-Hill. ISBN 978-0071796170.
4. Emiliani, Bob; Stec, David; Grasso, Lawrence; Stodder, James (2007). ----------------------
Better Thinking, Better Results: Case Study and Analysis of an Enterprise-
----------------------
Wide Lean Transformation(2e. ed.). Kensington, CT, US: The CLBM,
LLC. ISBN 978-0-9722591-2-5. ----------------------

----------------------

Kaizen 211
 Notes

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

212 Techniques for Operations Efficiency

Daily Work Management (DWM)
UNIT

10
Structure:

10.1 Introduction

10.2 The What and Why of Daily Work Management

10.3 Pillars of Daily Work Management (DWM)

10.4 Terminology of Daily Work Management (DWM)

10.5 The System of DWM

10.6 Meetings of DWM

10.7 Benefits of DWM

Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

Daily Work Management (DWM) 213

 Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
●● Explain the various concepts of Daily Work Management.
---------------------- ●● State the pillars of DWM.
---------------------- ●● Analyse the system of DWM.
---------------------- ●● Show how to conduct effective DWM meetings.

----------------------
10.1 INTRODUCTION
----------------------
Management basically has two functions:
----------------------
i) Maintain standards and ii) Improve standards (Fig. 10.1)
----------------------
i) Maintenance function
---------------------- The first and foremost function of management is to maintain atleast the
---------------------- ‘status quo’ for every activity (i.e. do not let performance to deteriorate / go
down below the current average achievement ). To ensure this, the management
---------------------- must carry out SDCA (Fig. 10.2) cycle i.e.Standardise-Do-Check-Act. The
management must -
----------------------
 standardise the activities and decide on countermeasures.
----------------------
 implement countermeasures (D)
----------------------  check performance at periodic intervals (C )
----------------------  act on a gap in performance (A)

----------------------
St

Maintain Standards
an (S

Act
da )

----------------------
rd

(A)
ise

---------------------- Management
Check Do
---------------------- (D)
(C)
---------------------- Improve Standards

---------------------- Fig. 10.1 Fig. 10.2: SDCA Cycle

---------------------- ii) Improvement function

---------------------- Having standardised the activity to a stable level, the management must
try to enhance performance / improve the activity (i.e. revise the target and work
---------------------- towards achieving a new target). To improve the activity, the management must
perform PDCA cycle (Fig. 10.3) i.e. Plan-Do-Check-Act. The management
---------------------- must -
----------------------  revise the target and decide on the countermeasures (P)

214 Techniques for Operations Efficiency

 implement countermeasures (D) Notes
 check the performance at periodic intervals (C)
----------------------
 act on a gap in target performance and current performance (A)
----------------------
Act Plan ----------------------
(A) (P)
----------------------
Check Do ----------------------
(C) (D)
----------------------

Fig. 10.3: PDCA Cycle ----------------------

Since improvement must be a continuous process, the SDCA cycle ----------------------

should be followed by a PDCA cycle, the PDCA cycle should be followed up
by a SDCA cycle and so on. (Fig. 10.4) i.e. SDCA and PDCA cycles should be ----------------------
repeated. ----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------
Fig. 10.4 ----------------------

----------------------
10.2 THE WHAT AND WHY OF DAILY WORK
MANAGEMENT ----------------------

The shopfloor is prone to variations and variability is the bane of ----------------------

manufacturing. Variability leads to instability in terms of what we plan, and
what we achieve and delay in honouring customer commitments. To attain ----------------------
stability, we must gain control of the shopfloor activities and manage them on ----------------------
a day to day basis. Daily Work Management (DWM) provides the necessary
approach to do this. ----------------------

Daily Work Management (DWM) 215

 Notes Daily Work Management (DWM) advocates quick but a planned review
of performance of every activity and work on the gaps (gap between planned
---------------------- and actual performance), to minimize the impact of variations. DWM provides
management 365 opportunities to work on gaps between the plan and the actual
---------------------- as against 2 or 1, if there were monthly or annual reviews.
---------------------- Daily Work Management
----------------------

----------------------
Includes Key Approaches Which will Lead to
----------------------

----------------------

----------------------
Discovering Abnormalities (Gap in Performance)
----------------------
----------------------

----------------------

---------------------- Reduction in Reduction in

Variations Waste
----------------------

---------------------- Daily Work Management may be defined as

---------------------- “The system of management of routine processes by discovering abnormalities
(shortfall / gap in performance ) and taking countermeasures to prevent their
---------------------- reoccurrence.”
---------------------- DWM can be applied to all businesses and all aspects of a business.
----------------------
10.3 PILLARS OF DAILY WORK MANAGEMENT (DWM)
----------------------
DWM is based on two pillars called exactness and visualisation :
----------------------
1. Exactness
---------------------- To meet customer requirements by supplying quality products in a consistent
manner requires exactness in all our processes. Exactness is arresting variations
----------------------
and it requires prevention of all assignable causes for variations on the shop
---------------------- floor / office.
Exactness is required in machines, material flow, input material quality,
----------------------
operator movement, safety in operation, the way measurements are done by
---------------------- operators, and a host of allied activities. Variations occur because we conduct
shopfloor activities based on past practices and not from a set of standard
---------------------- procedures.
---------------------- Since in the absence of a standard work practice it is difficult to control

216 Techniques for Operations Efficiency

what has been planned, a gap occurs between the plan and the achievement. To Notes
minimize this gap, we need to identify the causes for variations and eliminate
them. Identification and prevention of assignable causes, is what is called, ----------------------
Exactness.
----------------------
Exactness concerns four main areas :
----------------------
 Operations
 Product checking and measurement ----------------------
 Safety in operations ----------------------
 Training & Development ----------------------
a) Exactness in operations covers machine condition, machine setup and
change over, tool change, material, operator’s instructions. (Table 10.1) ----------------------

b) Exactness in product checking and measurement covers measuring ----------------------

methods, checking aids, location of these gauges on the machine, etc.
----------------------
(Table 10.2)
c) Exactness in safety covers all those conditions, which may cause an ----------------------
accident or make the work environment unsafe. (Table 10.3)
----------------------
d) Operator training involves the training of workmen as per the need and
importance of the job, from the customer point of view with an intention, ----------------------
to create ownership by the operator. (Table 10.4) ----------------------
Table 10.1 : Exactness in Operation
----------------------
a) Machine Condition
----------------------
 Robustness of foundation
 Accuracy of machine movements ----------------------
 Electrical connections / contacts ----------------------
 Hydraulic oil / coolant circuitry ----------------------
 Start up check list
----------------------
 Cleaning of are machine and the surrounding areas
----------------------
b) Machine Set-up and Change-overs
 Standards and instructions ----------------------
 Easy access of hand tools and other aids ----------------------
 First-off and last-off samples ----------------------
c) Tool Change
----------------------
 Standards for frequency and instructions for change
----------------------
 Easy access of hand tools and other aids
d) Material ----------------------
 Smooth material flow ----------------------

Daily Work Management (DWM) 217

 Notes  Design of containers and feeders
 Correct quantities of oil, coolant, grease, etc. including correct
----------------------
methods of application.
---------------------- e) Operator Instructions
----------------------  Work instructions

----------------------  Operator attention and concentration

 Attention points
----------------------
 Work instructions to be clearly visible from the operator’s normal
---------------------- position and posture.
---------------------- Table 10.2 : Product Checking and Measurement
 Method of checking and measuring
----------------------
 Location of checking aids
----------------------
 Checking aids to be fixed and not hand held
----------------------  Gauges / indicators on machines to be readable from the operator’s normal
---------------------- position and posture
 Robustness of mounting of gauges
----------------------
Table 10.3 : Exactness of Safety
----------------------
 Workshop free from oil / grease spillage
----------------------  Free from water spillage
----------------------  Periodic removal of metal chips
----------------------  Free from protrusions and projections
 Floor level evenness
----------------------
 No obstructions to the operator movement
----------------------
 Control on fumes, oil mist, grinding dust, odour, noise etc.
----------------------  Use of personnel protection equipment
----------------------  Machine guards / dual hand operation on presses.
---------------------- Table 10.4 : Operator Training
 Job (s) performed by the operator
----------------------
 Relevance of the quality parameters on the component
----------------------
 Significance of the component on the company’s product
----------------------  Impact of the component on the customer’s product
----------------------  Repercussion on the users of the customer’s product
----------------------

----------------------

218 Techniques for Operations Efficiency

2. Visualisation Notes
Visualisation is intended to inform the doer about what he / she must
----------------------
perform and what he/ she must not forget to perform. Visuals may be
prepared on good and bad performances in safety, quality, quantity and ----------------------
customer complaints.
----------------------
Advantages of visualisation are as follows:
 Visuals provide the best way of focusing attention. ----------------------
 Visuals eliminate ambiguity from the minds of the doer about what he ----------------------
or she must carryout, to achieve desired level of production quantity and
product quality. ----------------------

 Since the speed of the reaction has to be faster, the lower we go in ----------------------
the organization, visual techniques allow everyone to understand and
contribute. ----------------------

Typical visualisation measures to be implemented are : ----------------------

1) Display of standard work procedures to the operator for setting the ----------------------
machine, running the machine, method and frequency of checking and
measuring, cleaning the machine etc., in a pictorial form. ----------------------
2) Display of vital information to the operator such as trends in production ----------------------
quantity, product quality, customer issues, customer returns.
----------------------
3) Checklist for tool setup, condition monitoring of machines and corrective
action to be taken for abnormalities etc. ----------------------
4) Skill matrix of the operators working in the line. ----------------------
Tools of visualisation are :
----------------------
 Run charts
----------------------
 Graphs

 Bar charts ----------------------

 Pie charts ----------------------
 Radar charts ----------------------
 Flow charts
----------------------
 Work inspections
----------------------
 Tags / stickers / banners
----------------------
10.4 TERMINOLOGY OF DAILY WORK MANAGEMENT
----------------------
(DWM)
----------------------
Daily Work Management has its typical terminology. The clarity of these
terms is essential to understand the concept: ----------------------

----------------------

Daily Work Management (DWM) 219

 Notes 1. Abnormality is the gap (or variations) between planned performance and
actual performance.
----------------------
Abnormal variations can occur if
---------------------- i) There are no standard procedures to perform activities.
---------------------- ii) There are assignable causes.

---------------------- The important requirements of good management, therefore, are :

1) Setting up a standard procedure for every activity (standardization)
----------------------
2) Evolving quantitative measurements of performance
----------------------
3) Measuring abnormalities (i.e. Gap between planned performance
---------------------- and actual performance)
4) Establishing underlying causes for the abnormality
----------------------
5) Evolving corrective and preventive actions, to avoid the reoccurrence
---------------------- of abnormality.
---------------------- 2. Authority implies “delegated right of Decision Making”.

---------------------- 3. Responsibility implies “responsibility of Execution or Action”.

4. Accountability means “responsibility of Business Result”.
----------------------
5. Managing Points are the success indicators in quality, cost, delivery
---------------------- (quantity), safety (morale) and product development.
---------------------- 6. Checking Points are measures, information, attention points in the
processes.
----------------------

---------------------- Fig. 10.5 below gives a diagramatical concept of these terms.

---------------------- Checking Point
---------------------- Process Managing Point
----------------------
Responsibility Checking Point Accountability
----------------------
Output / Result
----------------------
Fig. 10.5: Diagramatical Concept
----------------------

---------------------- Check your Progress 1

---------------------- True / False

---------------------- 1. Abnormality is the variation between planned and actual performance.
---------------------- 2. Accountability means responsibility of results.

----------------------

220 Techniques for Operations Efficiency

Fig. 10.6 gives a flow chart of MP /CP points. Notes

----------------------
List down functions of the department
----------------------
Identify performance measures ----------------------

----------------------
Assess current performance
----------------------
Decide on desired performance
----------------------

Identify gap in performance and set target

----------------------

----------------------
Decide on frequency of measurement
----------------------
----------------------
Monitor as per frequency MP/CP,
achievement against target and exhibit by
----------------------
agreed method of “Visual Management”
----------------------
Enlist responsibility of next level
----------------------

Finalise performance measures ----------------------

----------------------
Decide on MP/CP points and frequency
of review ----------------------

----------------------

No
Have all required levels
----------------------
been covered?
----------------------
Yes ----------------------
Prepare MP/CP table for the department
----------------------

End
----------------------

----------------------
Fig. 10.6: Flow chart of MP/ CP points
----------------------

----------------------

----------------------

----------------------

Daily Work Management (DWM) 221

 Unit 10 Daily Work Management (DWM)

Notes Managing & Checking Points

---------------------- Name : S.P. More Dept. : Materials Designation : Materials Manager
Sr. Managing Points Checking Points

----------------------
No. M.P. Target Freq. C.P. Target Freq. VCS Ref.
1. Timely availability 100% Monthly No. of items out Zero Weekly

---------------------- 2.
of material
Timely procurement
conformance
100% Monthly
of stock
Conformance to 95% Weekly

----------------------
of non-stock items conformance lead time specified
for item groups
3. Inventory investment 1.75 Crores Monthly 1 Stores Inventory ≤ =125lacs Monthly
---------------------- 2 Vendors stock ≤ =15lacs Monthly
3 WIP ≤ =10lacs Monthly
---------------------- 4 Finished goods ≤ =25lacs Monthly
4. No. of defective bills ≤ 5 per Monthly No.of defective Nil Weekly
---------------------- returned by Accounts
month
bills returned by
Accounts
≤ 5% of
----------------------
5. Annual saving in Monthly 1 Credit balance 10 lacs Monthly
procurement value of with buyer
expenses purchases 2 Price revision Nil Monthly
---------------------- 3 Credit period ≥ 50% Yearly
(90 days)
---------------------- ≤ 25% Yearly
(60 days)
≤ 10%
---------------------- (30 days)
Yearly

≤ 15% (less Yearly

---------------------- than 30 days)
4 Transport Reduce Quarterly
---------------------- expenses Rs. 6000/-
per quarter
---------------------- 5 Travelling ≤ 10000/ Monthly
expenses mon th

---------------------- 6 Continual
improvement
1 Kaizen per Monthly
week per
No.of Kaizen
projects
1 sugg. per
employee
Weekly

----------------------
employee suggested per week
and implemented
7 System conformance Nil Quarterly Conformance to 100% Monthly
---------------------- (NCRs during IQA HODs audit of the conforma-
and external audit) processes nce
---------------------- (Zero NCRs)
8. Work place 5S rating Monthly 1 5S rating after audit Above 90% Monthly

----------------------
improvement above 90% 2 Implementation of 100% Monthly
audit observations implemen-

----------------------
tation
9 Zero defect vendor Quarterly % vendors self 10% Quarterly
certified
----------------------

----------------------
265
----------------------

----------------------

----------------------

----------------------

----------------------

222 Techniques for Operations Efficiency

 Techniques (Modern) for Operations Efficiency

Managing & Checking Points Notes

Name : S.P. More
Sr. Managing Points
Dept. : Materials Designation : Materials Manager
Checking Points
----------------------

----------------------
No. M.P. Target Freq. C.P. Target Freq. VCS Ref.
10 Customer Satisfaction 1 Obtaining customer Positive Monthly

----------------------
(Internal/External) satisfaction from Feedback
concerned dept
(oral feedback)
2 Customer satisfac- Score Quartely ----------------------
tion survey above 90%
11 Timely dissemination Before 5th of Monthly
of information every month
Timely release of
departmental
100%
conformance
Monthly ----------------------

----------------------
reports (as per
annexure)
12 Employee (15 days of Quarterly Conformance to 100% Monthly
development training per employee training conformance ----------------------
employee per programme

----------------------
year)

Managing & Checking Points

----------------------
Name : Manjunath C. Rao Dept. : Q. A. Designation : MGR - Q. A.
Sr. Managing Points Checking Points
----------------------
No. M.P. Target Freq. C.P. Target Freq. VCS Ref.
1. Timely clearance of One day Weekly
No. of GRRs pending Nil Daily Graph ----------------------
GRRs beyond 1 Day

----------------------
(pending list)
2. Timely clearance of One day Weekly No of MARs pending Nil Daily Graph
MARs beyond 1 Day
(pending list) ----------------------
3. Final inspection of Same day Daily No. of AOs pending Nil Daily Graph

----------------------
finished goods, TC, for inspection
MTC preparation beyond 1 day
4. Calibration of IMTE Conformance Monthly No. of IMTE pending Nil Weekly Bar chart
to schedule for calibration beyond ----------------------
scheduled date

----------------------
5. Customer Complaints Within 48 Daily 1 Co-ordinate with Immediate Daily
attending to customer hrs other depts.. and
complaints plan for action
2 Initiate CA/PA for
customer complaints
Immediat- Daily
ely after
----------------------

----------------------
collecting
data
6. Analysis of non- –– Weekly Find out the root cause Weekly Weekly Graph
conformance and take corrective
& preventive action
----------------------

----------------------
7. Ensure shelf life of As per list of Yearly 1 Statement of Nil Annual Plan
components in stores shelf life components lying in
are within expiry date items stores beyond
expiry date
----------------------

----------------------
266 ----------------------

----------------------

----------------------

----------------------

----------------------

Daily Work Management (DWM) 223

 Unit 10 Daily Work Management (DWM)

Notes Managing & Checking Points

----------------------
Name : Manjunath C. Rao Dept. : Q. A. Designation : MGR - Q. A.
Sr. Managing Points Checking Points

----------------------
No. M.P. Target Freq. C.P. Target Freq. VCS Ref.
8. Control on PPM and Below 5000 Monthly 1 PPM levels (machine PPM below Monthly Graph
rework level shop and assembly) 5000
---------------------- 2 Initiate corrective Weekly Weekly Graph
actions on rejection/
---------------------- rework
3 Initiate preventive Weekly Weekly Graph

---------------------- actions on rejection/

rework

---------------------- 9. Zero defect vendor –– Quarterly % age vendors self

certified
10% Quarte-
rly

----------------------
10. Continual improvement 1 Kaizen per Monthly No.of Kaizen projects 1 sugges- Weekly
week per suggested and tion per
employee implemented employee
---------------------- per week
11. System conformance Nil Quarterly Conformance to 100% Monthly
---------------------- (NCRs during IQA and HODs audit of the confor-
external audit) processes mance
---------------------- (Zero NCRs)
12. Work place 5S rating Monthly 1 5S rating after audit Above Monthly
---------------------- improvement above 90% 90%
2 Implementation of 100% Monthly
---------------------- audit observations impleme-
tation

---------------------- 13. Customer satisfaction

(Internal / External)
1 Obtaining customer
satisfaction from
Positive Monthly
feedback

----------------------
concerned dept.
(oral feedback)
2 Customer Score Quarte-
---------------------- satisfaction survey above 90% rly
14. Timely dissemination Before 10th Monthly Timely release of 100% Monthly
---------------------- of information of every departmental reports conform-
month (as per annexure) ance
---------------------- 15. Employee development (15 days of Quarterly Conformance to 100% Monthly
training per employee training conform-
---------------------- employee per
year)
programme ance

----------------------

----------------------

----------------------

----------------------
267
----------------------

----------------------

----------------------

----------------------

----------------------

224 Techniques for Operations Efficiency

 Techniques (Modern) for Operations Efficiency

Managing & Checking Points

Notes
Name : V.D. Hargude Dept. : Stores Designation : Stores Incharge
----------------------
Sr. Managing Points Checking Points
No. M.P. Target
1. Timely preparation of ≤ 48 hours
Freq.
Weekly
C.P.
GRRs held up for
Target
≤ 1 day
Freq. VCS Ref.
Twice a
----------------------

----------------------
GRRs want of paper work day
2. Timely clearance of 3 days Daily GRR pending Nil Daily
GRRs beyond 3 days
GRR pending beyond ----------------------
3 days for Valid
reason ----------------------
3. Return of defective 100% Monthly Return of all defective 100% Fort-
material conformance matl by the 15th and confor- nightly
----------------------
the 30th of the month mance
4. Correctness of stock 100%
conformance
Quarterly Conformance to
verification schedule
100%
confor-
Daily
----------------------

----------------------
A class-Once in 2 months (Perpetual internal mance to
B class-Once in 4 months stock audit) random
C class- ½ yearly audit
5. Just-in-Time (JIT) 10% Quarterly No. of racks 2 racks Quarte- ----------------------
reduction in released per ¼ rly
inventory ----------------------
6. Timely packing of Conformance Daily 1 Time required for
Finished goods to time limits packing ----------------------
a. Project orders (matl. Within Daily

----------------------
record before 48 hrs.
12 O’clock)
b. Other than project 24 hrs
orders ----------------------
c. Urgent requests Same day
2 Packing as per norms 100%
conform-
----------------------
ance
7. Proper storage of 100% 1 Storage of items in Zero non- Fort- ----------------------
components conformance designated places conformancenightly
2 Application of proper in random ----------------------
preservatives audit
prior to storage ----------------------
3 Issue of items as per
FIFO method
----------------------
8. Cost saving/cost

----------------------
improvement
a) Cost saving by Rs. 25,000/- Quarterly 1 Identify used boxes - Weekly
conversion of used p.a. for alternative use
boxes and use them for
making std. small
----------------------

----------------------
boxes
b) Receipt of MC - 2 Claim pending Nil Quarte-
Octroi refund beyond 6 months rly
----------------------

268 ----------------------

----------------------

----------------------

----------------------

----------------------

Daily Work Management (DWM) 225

 Unit 10 Daily Work Management (DWM)

Notes Managing & Checking Points

----------------------
Name : V.D. Hargude Dept. : Stores Designation : Stores Incharge
Sr. Managing Points Checking Points

----------------------
No. M.P. Target Freq. C.P. Target Freq. VCS Ref.
9. Timely issue of Issue within Weekly 1 Same day processing Same Daily

---------------------- material time limit of work orders recd

Upto 12o’clock
day

----------------------
2 Conformance to 100% Daily
FIFO system of
Issue
---------------------- 3 Timely dispatch of Within Daily
matl to vendors 1 hour
---------------------- 10. Continual improvement1 Kaizen per Monthly No of Kaizen 1 sugg. Weekly
week per projects suggested per
---------------------- employee and implemented employee
per week

---------------------- 11. System conformance Nil Quarterly Conformance to 100% Monthly

(NCRs during IQA and HODs audit of the conform-

---------------------- external audit) processes ance

(Zero NCRs)

---------------------- 12. Work place

improvement
5S rating
above 90%
Monthly 1 5 S rating after
audit
Above
90%
Monthly

----------------------
2 Implementation of 100% Monthly
audit observations implem-
entation
---------------------- 13. Customer satisfaction 1 Obtaining customer Positive Monthly
(Internal /External) satisfaction from feedback
---------------------- concerned dept.
(oral feedback)
---------------------- 2 Customer Score Quart-
satisfaction survey above 90% erly

----------------------

----------------------
10.5 THE SYSTEM OF DAILY WORK MANAGEMENT (DWM)
10.5 THE SYSTEM OF DAILY WORK MANAGEMENT
---------------------- (DWM)
Step 1 : Draw an organisation chart showing clearly the departments and their status
in the organisation.
---------------------- Step21 : : List
Step Draw
downanthe
organisation chart showing
functions / activities clearly the departments and
of each department.
their status in the organisation.
---------------------- Step 3 : Compile the key responsibilities of each department.
Step42 : : Identify
Step List down the functionsof/ aactivities
accountabilities of each
departmental department.
head (Manager) and choose
----------------------
Step 3 : managing
Compile points,
the key responsibilities
under the applicableof each department.
accountability areas(Q, C, D,S,M)
---------------------- Step54 : : From
Step Identify accountabilities
the processes applicable,of a departmental
choose head
checking points (Manager)
which will ensureand
the
choose points
managing managing points, under the applicable accountability
achievement.
----------------------
areas(Q, C, D,S,M)
---------------------- Step 5 : From the processes applicable, choose checking points which will 269

ensure the managing points achievement.

----------------------
Step 6 : Compile the Managing Points /Checking Point table for the manager.
----------------------
Step 7 : Repeat step 4 to 6 for the next level.
----------------------
Step 8 : Implement Daily Work Management (DWM) by holding regular
---------------------- meetings.

226 Techniques for Operations Efficiency

10.6 MEETINGS OF DWM Notes

Regular meetings are the essence of DWM. Four types of meetings are held : ----------------------
i) Shift beginning and shift end / change meetings ----------------------
ii) Daily PDCA meeting by the departmental head ----------------------
iii) Weekly PDCA meeting called Management Committee Meeting (MCM)
----------------------
iv) Monthly PDCA meeting called Management Review Meeting (MRM).
----------------------
1. Shift Beginning and Shift end / Change Meetings
(A) Participants : ----------------------

Shift incharge of both the shifts and operators of both the shifts. ----------------------
(B) Time and duration : ----------------------
5 minutes before the start of shifts
----------------------
(C) Agenda :
----------------------
n Production in last shift
n Gap in actual production and plan ----------------------

n Problems encountered in the previous shift ----------------------

n Production plan for the next shift ----------------------
n Available manpower
----------------------
n Change over requirements
----------------------
n Preventive maintenance plans
n House keeping ----------------------

n Any other planned stoppage ----------------------

The plan for the shift is then executed during the shift. Plan versus actuals ----------------------
are analysed at the end of the shift, and feedback is given to the next shift. This
leads to immediate countermeasures if problems are encountered. This cycle ----------------------
continues for all shifts.
----------------------
2. Daily Work Management Meeting by the Operations Head
----------------------
(A) Participants
Departmental managers of ----------------------

n Key production sections ----------------------

n Production planning and control ----------------------
n Plant maintenance
----------------------
n Tool Room and Dies Maintenance
----------------------
n Dispatch

n Personnel and administration ----------------------

Daily Work Management (DWM) 227

 Notes n General manager (operations)
(B) Time and duration
----------------------
10-15 minutes
----------------------
(C) Agenda
---------------------- n Productivity level and rejection status of the day before.
---------------------- n The day’s plan of work centres taking into account, the gaps
in plan vs. actual of the day before.
----------------------
n Frequency and duration of machine maintenance and die
---------------------- maintenance and their countermeasures.
---------------------- n Dispatch plan for distant customers
n Quality problems / customer complaints (if any) and their
----------------------
countermeasures.
---------------------- n Gap analysis for production
---------------------- n Gap analysis for maintenance planned

---------------------- n Gap analysis for dispatches

n Gap analysis for changeover time
----------------------
n Customer complaints and their countermeasures.
----------------------
3. Weekly Meeting (Called Management Committee Meeting : MCM)
---------------------- of Departmental Heads

---------------------- (A) Participants :

General manager, heads of all the departments such as Press
---------------------- shop, Weld shop, Maintenance, Production Planning and Control,
---------------------- Personnel and Administration, Materials, Finance, Quality
Assurance, Human Resource Development, Production Engineering
---------------------- etc.
---------------------- (B) Time and Duration :
Say Tuesday at 11 a.m., Conference Room for 10 minutes.
----------------------
(C) Agenda :
----------------------
Status with respect to plan / target and trends on :
---------------------- n Productivity in terms of strokes per minute, strokes per
---------------------- person, spots per person and efficiency.
n Quality covering in process rejection in ppm of the press
---------------------- shop, weld shop, assembly shop, etc.
---------------------- n Customer complaints
---------------------- n Delivery performance with respect to customer schedule
n Downtime due to machine breakdown
----------------------

228 Techniques for Operations Efficiency

 n Downtime due to die maintenance on the machine Notes
n Die change time
----------------------
n Absenteeism
----------------------
n Extra overtime working
4. Monthly Meeting (Called Management Review Meeting : MRM ) ----------------------

(A) Participants ----------------------

General manager, Operation heads, Corporate functional heads and ----------------------
heads of all the departments.
----------------------
(B) Day, Time and Value
Second Saturday, 11:00 a.m., Conference Room (say) ----------------------
(C) Agenda ----------------------
Status with respect to objectives / plan / target and trends on : ----------------------
n Customerwise physical and financial turnover
----------------------
n Departmentwise revenue expenditure
----------------------
n Capital expenditure
n Customerwise outstanding ----------------------
n Inventories ----------------------
n Additional business identified and introduced ----------------------
n Cost of poor quality covering, cost of rework, rejection,
warranty claims and customer rework claims ----------------------

n Customer satisfaction covering customer returns, customer ----------------------

compalints, customer end non-conformance, delivery
----------------------
performance and any dissatisfaction area expressed by the
customer. ----------------------
n Vendor performance with respect to quality and delivery
----------------------
n Capacity utilisation
----------------------
n Internal and external quality audit results
n 5S audit results ----------------------

n Safety-accidents ----------------------
n Employee satisfaction covering industrial relations, ----------------------
employee grievances, training imparted and employee
participation in suggestion / Kaizen schemes. ----------------------
n Improvement in the quality system ----------------------
n Status of new and expansion projects ----------------------
During both the weekly and monthly meetings, the gaps in the actual
achievement versus planned / targeted are analysed, and factors causing the ----------------------

Daily Work Management (DWM) 229

 Notes gaps are established and corrective and preventive measures are planned and
implemented. Poka Yokes are implemented for defect detection and prevention.
---------------------- This cycle continues for every week and every month. Gap analysis on the
plan versus achievement on daily work management should be carried out, by
---------------------- a cross functional team and corrective action should be taken through a weekly
---------------------- PDCA cycle.
Daily work management can also be extended to non-manufacturing areas
----------------------
like Procurement, Personnel, Quality Assurance, Human Resource Development
---------------------- (HRD) etc.

---------------------- 10.7 BENEFITS OF DAILY WORK MANAGEMENT

----------------------  Greater understanding by the managers of the critical issues in their areas
---------------------- affecting the productivity and quality, and developing a problem finding
and solving attitude.
----------------------
 Improved resource utilization through gap analysis
----------------------  Better analysis of a problem and faster action
----------------------  Better team work and inter departmental co-ordination / co-operation
 Faster response to customer needs
----------------------
 Better communication
----------------------
 Solution of problems at the operative level
----------------------

----------------------
Check your Progress 2

---------------------- Fill in the blanks.

---------------------- 1. _______ and _______ are the pillars of DWM.

---------------------- 2. There are _______ steps in DWM.

----------------------

---------------------- Activity 1

---------------------- 1. Define the functions of management.

---------------------- 2. What are the different types of meetings in Daily Work Management
(DWM)?
----------------------

---------------------- Summary
---------------------- ●● Daily Work Management (DWM) is the process of reviewing the
performance of routine activities, identifying the gap between planned
----------------------
performance and actual performance and taking countermeasures to
---------------------- reduce variations (or gap). Two pillars of DWM are : Exactness and

230 Techniques for Operations Efficiency

 Visualisation. Notes
●● Daily Work Management techniques utilise the concept of MP / CP points
(managing / checking points) to analyse / measure performance. ----------------------
●● It has 8 steps in its basic procedure : ----------------------
1) Draw an organisation chart. ----------------------
2) List down the functions of each department
----------------------
3) Compile key responsibilities of each department
----------------------
4) Identify accountability for a departmental head and choose
managing points (MPs) ----------------------
5) Choose checking points (CPs) to ensure managing points
----------------------
achievement.
6) Compile the MP/CP table for the manager ----------------------
7) Repeat step 4 to 6 for the next level ----------------------
8) Implement DWM by holding regular meetings. ----------------------
●● Regular meetings are the essence of DWM. Four types of meetings are
generally held : ----------------------

1) Shift beginning and shift end / change meetings ----------------------

2) Daily work management meetings by the departmental head ----------------------
3) Weekly meeting of the departmental heads called MCM
----------------------
4) Monthly review meeting called MRM
----------------------
Keywords ----------------------

●● Daily Work Management : It is the process of reviewing the performance ----------------------

of routine day to day activities, in order to identify the gaps between
planned performance and actual performance and taking countermeasures ----------------------
to reduce variations . ----------------------

Self-Assessment Questions ----------------------

----------------------
1. What are the basic principles underlying Daily Work Management? How
is the concept beneficial to the organisation? ----------------------
2. What are the two basic functions of management? How are they
----------------------
conducted?
3. Daily work management is based on two pillars called ‘exactness’ and ----------------------
‘visualisation’. Discuss. ----------------------
4. What is exactness? How is it achieved in operations, product checking,
measurement and safety? ----------------------

----------------------

Daily Work Management (DWM) 231

 Notes 5. What are the advantages of visualisation? How is visualisation
implemented in an organisation? Name a few tools of visualisation.
----------------------
6. What are Managing (MP) and Checking points (CP)? How is the MP/CP
---------------------- table prepared?
8. Prepare a table of MP/CP points for any one of the following managerial
----------------------
positions:
---------------------- a) Manager Production, Planning and Control (PPC)
---------------------- b) Manager Finance

---------------------- c) Manager Production

9. What kind of meetings are held under Daily Work Management? What
---------------------- issues are discussed / analysed in these meetings? What is the significance
---------------------- of these meetings?

---------------------- Answers to Check your Progress

---------------------- Check your progress 1
---------------------- True / False
---------------------- 1. True
2. True
----------------------
Check your Progress 2
----------------------
Fill in the blanks.
---------------------- 1. Exactness and visualization are the pillars of DWM.
---------------------- 2. There are eight steps in DWM.
----------------------
Suggested Reading
----------------------
1. Howard S Gitlow, Quality Management Systems: A Practical Guide
----------------------
2. Gitlow, Quality Management, 3E
----------------------
3. Collett, Making Daily Management Work
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

232 Techniques for Operations Efficiency

Benchmarking
UNIT

11
Structure:

11.1 Introduction
11.2 Levels of Benchmarking
11.3 Benefits of Benchmarking
11.4 Types of Benchmarking
11.5 The Process of Benchmarking
11.6 Identifying Benchmarking Partners
11.7 Common Benchmarking Pitfalls to be avoided
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

Benchmarking 233
 Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
●● Explain the importance of benchmarking.
---------------------- ●● State benchmarking process.
---------------------- ●● Choose benchmarking partners for different products.
---------------------- ●● List effectiveness and limitations of benchmarking.

---------------------- 11.1 INTRODUCTION

---------------------- Globalisation of trade and industrial operations have forced, our Indian
---------------------- companies to become more and more competitive and customer driven. To
survive in these turbulent times, each company must adopt innovative and
---------------------- competitive strategies in product design, manufacturing as well as marketing. It
must be thoroughly aware of its own strengths and weaknesses, organizational
---------------------- and technological gaps, strengths of its competitors, and strategies being devised
---------------------- and used by successful companies, within and outside its industry.
This is possible only if the company has a formal system of monitoring
---------------------- and evaluating its performance continuously, vis-à-vis its competitors and
---------------------- identifying and implementing world class practices and thereby gaining a
competitive advantage. Benchmarking is the most appropriate technique for
---------------------- this purpose.
---------------------- The technique provides the fastest approach of learning from the
experiences of other companies. It helps in measuring a company’s performance
---------------------- against that of “best-in-class” companies, determining how these best-in-class
companies achieve these performance levels, and utilizing the information so
----------------------
collected, to devise and adopt outstanding practices for the improvement of its
---------------------- processes.
Benchmarking is not the mere act of copying others but an art of finding
----------------------
out by a firm, in a systematic and legal way, how others do something better
---------------------- than it so that practices of these successful companies can be adapted (may be
improved upon and used) to reach higher level of excellence.
----------------------
Some well known definitions of Benchmarking are -
---------------------- “Benchmarking is the continuous, systematic process of measuring products,
---------------------- services or work processes and practices against the toughest competitors or
those companies recognized as industry leaders”.
---------------------- - Former Xerox CEO, David Kearns

---------------------- “Benchmarking is the process for measuring your performance versus the
best-in-class companies and using the analysis to meet and surpass the best-
---------------------- in-class”.
---------------------- - Kauser Associates

234 Techniques (Modern) for Operations Efficiency

“Benchmarking is the research for industry best practices that lead to superior Notes
performance”.
- Robert C.Camp, Former Xerox Head benchmarking ----------------------
Keywords in the above definitions are : continuous, systematic, ----------------------
implementation, best practices, business processes.
----------------------
Continuous : Benchmarking is not a “one off” exercise. It must be
incorporated into the regular planning cycle of the organization. ----------------------
Systematic : Benchmarking has its own methodology. Several approaches ----------------------
exist but mostly share the Xerox’s 12-step approach.
----------------------
Best Practices : Best practices represent the strategy / approach /system
used by someone, somewhere to perform the function / activity differently and ----------------------
is doing it better.
----------------------
Business Processes : Mere comparison of performance does not help to
bring about improvement. Benchmarking applies to the process, rather than to ----------------------
the products or technology. Companies can benchmark the layout of a plant,
customer satisfaction processes, management review systems, productivity ----------------------
measurement system, contract review system, order booking system or any
----------------------
other business process.
Benchmarking is a fact finding exercise that helps, to establish what ----------------------
successful companies have done differently to achieve outstanding performance. ----------------------
For example, mere extortion of the son to score high marks like a child
in the neighbourhood, would not help the child to give a better performance ----------------------
next time. The father must find out as to which books the neighbourhood ----------------------
child reads, what extra classes he attends, how does he prepare and retain the
knowledge, how does he answer questions in the examination and so on. This ----------------------
kind of comparison of work practices and processes is necessary to develop and
implement, appropriate process improvements in order to achieve comparable ----------------------
results. ----------------------
Implementation : Benchmarking helps to identify the gap between
the “current performance of the organisation” and “performance of the best ----------------------
organisation.” The benchmarking organisation needs to ----------------------
i) firstly identify the gap
----------------------
ii) develop an action plan based on the lessons learned during the
benchmarking study ----------------------
iii) implement the process improvement plan. ----------------------
Since one may upset the apple cart while trying to bridge the gap between ----------------------
current performance and the best in “one go”, it is desirable to take small steps
gradually and continuously to attain excellence. ----------------------

----------------------

----------------------

Benchmarking 235
 Notes 11.2 LEVELS OF BENCHMARKING
---------------------- An organization can benchmark by comparing its function(s) against those of
another company, within the group or against best in the industry or against
---------------------- best in the world, doing similar or even dissimilar business. There are thus three
levels of benchmarking (Fig. 11.1)
----------------------
1) Internal benchmarking Other Industries (World Class)
----------------------
2) Competitive benchmarking
Competitors (Best in industry)
---------------------- 3) Functional benchmarking
Own Company (Best
---------------------- company/division/
department
----------------------

----------------------

---------------------- Fig. 11.1 : Levels of benchmarking

---------------------- 1) Internal benchmarking involves identifying key repetitive operational
functions (e.g. order booking, contract review, purchasing inventory,
---------------------- goods-receipt-report preparation, bill booking, supplier’s payments, etc.),
---------------------- and comparing these operational functions within the firm’s own division /
branches or sister companies. For example -
----------------------
 How another company in the group is able to process GRR (Goods-
---------------------- Receipt Report) within less than 48 hours?

----------------------  Why does a particular division take two weeks to fill a back order,
while another division takes only 3 days?
----------------------
 Why this branch’s bills remain unpaid for over 172 days, while another
---------------------- branch has average overdue bill of around 82 days?

---------------------- Most of the larger organizations can benchmark their one division against
another division within the same organization. Big industrial houses can
---------------------- benchmark one company against another company within the group. The
companies with a foreign collaboration can benchmark against its parent
---------------------- company abroad.
---------------------- 2) Competitive benchmarking involves identifying key competitive products,
services or processes (or key competitive characteristics of a product or
---------------------- service level or process) and comparing it with those of its main competitors
---------------------- (i.e identifying gaps between your own and competitor’s product or
service).
----------------------
e.g. - A fast food restaurant / petrol pump may send a team to study the
---------------------- time it takes for a competitor to service a customer.
- A valve manufacturer may buy valve from another manufacturer
---------------------- to compare the performance / design of his product.
----------------------

236 Techniques (Modern) for Operations Efficiency

 Firms usually contract research firms to undertake extensive surveys or Notes
use “mystery shoppers,” to collect data on their competitor’s performance
which is then used in benchmarking. ----------------------
Competitive benchmarking is usually conducted through third party ----------------------
research, as a direct approach to competitors for benchmarking study is
likely to be met with suspicion. ----------------------
3. Functional benchmarking involves comparison of functions within the
----------------------
same industry. Comparison of functions with those companies, which
are not direct product competitors but nevertheless carry out similar core ----------------------
operations.
Some industrial associations such as Confederation of Indian Industry ----------------------
(CII), exchange information / visits among their member, clusters, units, to ----------------------
facilitate this comparison.
e.g.
- If the industrial average of direct labour cost is 4% of ----------------------
manufacturing cost, why is our 7%?
----------------------
- If there is one support staff per 20 workers, why do we have one
per 10 workers? ----------------------
Usually, a company which is an industry leader (i.e. best within its own ----------------------
industry) has to look beyond the industry for a benchmark. Such a company
can benchmark its process, with a company in a different industry which is ----------------------
the best in that process.
----------------------
The ultimate in benchmarking involves comparison of core business
process (new product development, customer servicing, etc.) across diverse ----------------------
industries (i.e with the best in the world).
----------------------
e.g. - An automobile manufacturer may compare time required to fill a
customer order, with a small mail order firm known world wide ----------------------
for its outstanding performance.
----------------------
- A retail store may ask why a particular restaurant has such a large
repeat business? What are they doing right? Can we learn ----------------------
something from them?
----------------------
Taiichi Ohno, records in his book that he got his best idea for his Toyoto
Production Systems (TPS) in 1956 from the American supermarkets. ----------------------

Check your Progress 1 ----------------------

----------------------
Fill in the blanks.
----------------------
1. _______ helps in achieving benchmarks.
----------------------
2. ________ its function with others best in the industry is called
benchmarking. ----------------------

----------------------

----------------------

Benchmarking 237
 Notes 11.3 BENEFITS OF BENCHMARKING
---------------------- 1) Benchmarking helps the organization to learn from the experiences of
others.
----------------------
2) Benchmarking shows how an organization is performing, in comparison to
---------------------- its competitors (or in comparison to best in the world).

---------------------- 3) Benchmarking identifies the strengths and weaknesses of the organization.

4) Benchmarking aids in problem-solving
----------------------
5) Benchmarking encourages continuous improvements
----------------------
6) Benchmarking makes goals specifically based on, a concerted view of the
---------------------- external conditions.
7) Benchmarking encourages proactive solutions
----------------------
8) Benchmarking provides the organization with proven corrective action plans.
----------------------
9) Benchmarking identifies undiscovered customer’s requirements.
---------------------- 10) Benchmarking enables the organization to prioritise its improvement
activities.
----------------------
11) Benchmarking assists an organization in attaining a competitive position.
----------------------
12) Benchmarking allows exchange of information between the benchmarking
---------------------- partners and thereby help both of them to excel.
13) Benchmarking increase sensitivity to changes in the external environment.
----------------------

---------------------- 11.4 TYPES OF BENCHMARKING

---------------------- Benchmarking, depending upon what is being benchmarked, can be classified
into four types:
----------------------
1) Product benchmarking
----------------------
2) Performance benchmarking
----------------------
3) Process benchmarking and
----------------------
4) Strategic benchmarking.
---------------------- 1) Product benchmarking
---------------------- Product benchmarking involves comparison of different features /
attributes of the firm’s products, with those of competitor’s products,
---------------------- thereby identifying features to be improved.
---------------------- Product benchmarking usually requires comparison of product
performance, features and costs. It utilizes laboratory performance tests,
---------------------- reverse engineering and redesign of the product, to build desired strengths
---------------------- into the firm’s product(s).

----------------------

238 Techniques (Modern) for Operations Efficiency

 Strategic Notes
Benchmarking
----------------------

----------------------
Process Benchmarking Product
Benchmarking (Types) Benchmarking ----------------------

----------------------

Performance ----------------------
Benchmarking
----------------------
Fig. 11.2 : Types of benchmarking ----------------------
2) Performance benchmarking
----------------------
Performance benchmarking involves comparison of financial ratios at the
aggregate level. ----------------------
3) Process benchmarking ----------------------
Process benchmarking involves comparison of firm’s processes with those ----------------------
of successful companies, to identify deficiencies in the existing processes,
thereby redesigning their own process(es). ----------------------
Process benchmarking is infact is the real benchmarking. The firm needs to ----------------------
find out, among its rivals and / or among the industry leaders, a company
who has the best process, study its process, find gaps, devise strategies / ----------------------
measures to bridge the gaps.
----------------------
Typical examples of the processes that can be benchmarked are -
----------------------
 Layout of the plant
 Customer satisfaction ----------------------
 Procurement procedures ----------------------
 Order entry ----------------------
 Material planning
----------------------
 Budgeting
----------------------
 Recruitment

 Performance appraisal ----------------------

 Customer’s complaint handling ----------------------
4) Strategic benchmarking ----------------------
Strategic benchmarking involves comparison of the strategies adopted by
the leading companies to maintain competitive edge. ----------------------

----------------------

----------------------

Benchmarking 239
 Notes 11.5 THE PROCESS OF BENCHMARKING
---------------------- Today, there are number of benchmarking methodologies but all of them are
more or less the extension of Xerox’s original 10-step process.
----------------------
Xerox’ 10-steps process involves the following steps :
---------------------- 1) Decide what to benchmark
---------------------- 2) Identify whom to benchmark
---------------------- 3) Collect data
4) Analyse data and identify the performance gaps
----------------------
5) Project future performance gaps
----------------------
6) Establish functional gaps
---------------------- 7) Communicate benchmark findings
---------------------- 8) Develop action plan
---------------------- 9) Implement specific actions and monitor progress
10) Recycle the process (i.e. recalibrate benchmarks, update work practices
----------------------
and set new goals).
---------------------- Step 1 : Decide What To Benchmark
---------------------- 1. Identify and Prepare a list of critical success factors for the organization.
---------------------- 2. Conduct competitive analysis (SWOT analysis)

---------------------- 3. Identify functional areas in the organization where

improvements are most essential
---------------------- 4. Develop / Select correct measures
---------------------- 5. Break functional processes into the next 1-2 lower
levels processes and select those which impact
----------------------
the measures.
---------------------- 6. Prioritise the process where very high benefits can be
expected.
----------------------
Step 2 : Deciding the Benchmarking Partner
----------------------
1. Decide level of benchmarking
----------------------
2. List Down a few prospective candidates for partnership
----------------------
3. Collect information on shortlisted partners
---------------------- 4. Select a benchmarking partner
----------------------

----------------------

----------------------

240 Techniques (Modern) for Operations Efficiency

Step 3 : Collecting Data Notes

1. Constitute a site visit team ----------------------

2. Familiarise members thorough with own process ----------------------
3. Conduct an internal site visit ----------------------
4. Plan a partner’s site visit ----------------------
 Assign responsibility
----------------------
 Prepare list of questions
----------------------
 Audit own process
 Modify / improve checklist of questions ----------------------

 Communicate questions to the partners ----------------------

 Make physical arrangements ----------------------
5. Conduct a site visit ----------------------
6. Prepare a site visit report ----------------------
Step 4 : Analysing Data ----------------------
1. Compare performance of the partner’s process with that of
----------------------
your process
----------------------
2. Identify gaps in performance
3. Compare flow charts of the two processes and identify the ----------------------
superior work practice(s) ----------------------
4. Develop a better / superior process ----------------------
5. Adapt to superior practice (s)
----------------------
Step 5 : Project Future Performance Gap
----------------------
1. Study the trend rate of improvements / changes
----------------------
2. Forecast the future performance level of the partner’s
company ----------------------

3. Project the future performance gap ----------------------

Step 6 : Establish Functional Goals ----------------------

1. Devise strategies to eliminate a performance gap ----------------------

2. Develop long term and short term goals ----------------------

3. Decide functional goals ----------------------

----------------------

Benchmarking 241
 Notes Step 7 : Communicate Benchmarking Findings
---------------------- 1. Decide who requires to be informed and why?
---------------------- 2. Finalise mode of communication

---------------------- 3. Prepare communication packages for different individuals

/ groups
----------------------
4. Ensure / Confirm proposal is clearly understood
----------------------
5. Secure approval / acceptance of the management
----------------------
Step 8 : Draw up an Action Plan
----------------------
1. List Out the changes required to give effect to new process
----------------------
2. Decide the sequence in which actions need to be
---------------------- implemented

---------------------- 3. Assign each action item to a team member

---------------------- 4. Secure the team member’s commitment

---------------------- Step 9 : Implement Plan

1. Perform assigned tasks
----------------------
2. Monitor progress
----------------------
3. Standardise practice
----------------------
Step 10 : Recycle the Process
----------------------
1. Ensure stability of the new process
----------------------
2. Review the competitive position periodically
----------------------
3. Initiate new benchmarking projects
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

242 Techniques (Modern) for Operations Efficiency

A more generic benchmarking methodology based on the PDCA cycle is given in Notes
Fig. 11.3
1 ----------------------
Planning
----------------------
 Plan the project ----------------------
 Identify areas to be improved
 Identify activities to be benchmarked
 Rank & select specific project ----------------------
 Constitute benchmarking team
 Decide what to benchmark
 Understand & document the process ----------------------
 Establish process measures


Select the benchmarking
partners
----------------------

----------------------
 Communicate findings

Doing
 Set targets for improvement  Prepare to gather data 2 ----------------------
Acting

 Develop action plans  Collect data

 Implement (carryout) action Plan
4  Monitor progress ----------------------
 Recalibrate

----------------------


Analyse data
Identify performance gaps
----------------------
 Project future performance gaps
 Identify causes for the gaps ----------------------

----------------------

----------------------
Checking
----------------------
(or Analysing) 3
----------------------
Fig. 11.3: Generic Methodology on PDCA Cycle
----------------------
Check your Progress 2 ----------------------

1. Performance benchmarking involves comparison of financial ratios at ----------------------

the aggregate level.
----------------------
2. Process benchmarking is in fact is the real benchmarking.
----------------------

11.6 IDENTIFYING BENCHMARKING PARTNERS ----------------------

A benchmarking partner refers to the company-competitor or a world class ----------------------

company - that is outperforming in the area (or process) to be benchmarked. ----------------------
The selection of a good benchmarking partner is essential, to guarantee
----------------------
the success of a benchmarking exercise.
One should not limit one’s search to familiar or nearby organisations. When ----------------------
making efforts to benchmark, it is worth taking time to discover a company in ----------------------
another region, or another industry which has world a class / excellent process.

Benchmarking 243
 Notes One should not focus on large corporations as partners. Smaller firms are
often leaders in innovation. One should not conclude that a firm that excels in
---------------------- one area excels in other areas too or a company which is not doing well is not
a good partner for benchmarking. For example, a company in bankruptcy can
---------------------- be a world class company in a particular area though probably not in regard to
financial management performance.
----------------------
Industrial and professional organisations are generally a good source
---------------------- of information about who is best in business. Organisations which have won
prestigious awards for excellence, may not be world class at everything they do.
---------------------- Reputation can be used as a criterion for initial selection, but the final selection
of the benchmarking partner should be made after thorough research, and
----------------------
confirmation that the organisation really excels in the specific area of interest.
---------------------- Initial list of prospective partners can be drawn based on feedback
information gathered from the following sources :
----------------------
 Winners of excellence awards
----------------------
 Top rated companies in industry surveys
----------------------  Industrial and professional associations
 Internal experts, business partners, suppliers and customers
----------------------
 Articles in business journals
----------------------
 Consultants

----------------------  Known world class benchmarking candidates

---------------------- The table below lists down the critical business processes and the companies
considered by many, to have the best processes in the world.
----------------------
Table 11.1 : World class benchmarking candidates
----------------------
1. Marketing  Helen Curtis
----------------------  Microsoft

---------------------- 2. Product Development  Motorola

----------------------  Digital equipment

 3M
----------------------
 Sony
---------------------- 3. Order Processing  L.L.Bean
---------------------- 4. Purchasing  Honda Motor
 Xerox
----------------------
5. Manufacturing / Operations  Hewlett-Packard
----------------------
Management  Corning Inc.
---------------------- 6. Quality  Westing House
----------------------  Florida Power & Light
 Motorola
----------------------
 Xerox

244 Techniques (Modern) for Operations Efficiency

7. Technology Transfer  3M Notes
 Dow chemical
----------------------
8. Sales Management  IBM
 Proctor & Gamble ----------------------
 Merck ----------------------
9. Warehousing & Distribution  L.L.Bean ----------------------
10. Billing & Collection  American Express
----------------------
11. Document Processing  Citicorp
12. Customer Service  Xerox ----------------------
 L.L.Bean ----------------------
13. Training  General Electric
----------------------
 Ford
----------------------
 Motorola

14. Environmental Management  3M ----------------------

 Dow Chemical ----------------------
15. Health Care  Coors
----------------------
 Southern California
16. Robotics  General Electric ----------------------

17. Assembly Automation  Ford ----------------------

18. Service parts logistics  Deere
----------------------
19. Customer satisfaction  British Airways
----------------------
 Rank Xerox
20. Customer Relationships  IBM
----------------------
21. Employee recognition process  Milliken ----------------------
22. Internal communication  Federal Express ----------------------
23. Employee Selection  Toyota
----------------------
 Honda

 Nissan ----------------------
24. Benchmarking process  Xerox ----------------------

----------------------
Activity 1
----------------------
identify benchmarking candidates for Brand management and Startup
----------------------
initiative of Government of India
----------------------

----------------------

Benchmarking 245
 Notes 11.7 COMMON BENCHMARKING PITFALLS TO BE
AVOIDED
----------------------
Common benchmarking mistakes that should be avoided are :
----------------------
1) The benchmarking topic not aligned to the mission, goals and objectives of
---------------------- the organisation.
---------------------- 2) Process to be benchmarked is too wide and complex to be manageable.

---------------------- 3) The benchmarking topic is too intangible and difficult to measure.

4) Assuming there are “pre-existing benchmarks” to be found.
----------------------
5) Not establishing own position / own baseline.
----------------------
6) Not researching benchmarking partners thoroughly.
---------------------- 7) Benchmarking team members are not motivated.
---------------------- 8) Benchmarking is not continuous.

---------------------- 9) Half hearted support from the top management.

10) Benchmarking used to set goals and not to generate changes to meet the
---------------------- goals.
---------------------- 11) Benchmarking team recommendations not being implemented.
----------------------
Summary
----------------------
 Benchmarking is the research for finding the best industrial practices,
---------------------- that lead to superior performance. There are three levels of benchmarking
: (i) internal bench marking, (ii) competitive benchmarking, and (iii)
----------------------
functional benchmarking.
----------------------  
Benchmarking is of four types : (i) product benchmarking, (ii)
---------------------- performance benchmarking, (iii) process benchmarking, and (iv) strategic
benchmarking.
----------------------  Product benchmarking involves a comparison of the different features
---------------------- / attributes of a firm’s products with those of its competitor’s products,
thereby identifying features to be improved. Performance benchmarking
---------------------- involves comparison of the financial performance at the aggregate level.

----------------------  Process benchmarking involves the comparison of a firm’s processes,

with those of a successful company to identify deficiencies in the existing
---------------------- processes.
----------------------  A typical benchmarking process involves the following steps :
1) Decide what to benchmark
----------------------
2) Identify whom to benchmark
----------------------
3) Collect data
---------------------- 4) Analyse data and identify performance gaps

246 Techniques (Modern) for Operations Efficiency

 5) Project future performance gaps Notes
6) Establish functional goals ----------------------
7) Communicate benchmark findings
----------------------
8) Develop an action plan
----------------------
9) Implement specific actions and monitor the progress
10) Recycle the process ----------------------

----------------------
Keywords
----------------------
 Benchmarking : It is not a mere act of copying others ,but an art of finding
----------------------
out by a firm, in a systematic and legal way, how others do something
better than it so that the practices of these successful companies can ----------------------
be adapted (may be improved upon and used) to reach higher level of
excellence. ----------------------
----------------------
Self-Assessment Questions
----------------------
1. Define benchmarking. What does it aim at ? Describe the reasons for
benchmarking. ----------------------

2. What are the different types of benchmarking ? Describe them briefly. ----------------------
3. What is benchmarking ? How is it conducted ? ----------------------
4. What are the pitfalls to be avoided to guarantee the success of the
----------------------
benchmarking exercise ?
5. How does a company identify partners for benchmarking ? ----------------------

6. Write short notes on the following : ----------------------

i) Competitive benchmarking ----------------------
ii) Functional benchmarking
----------------------
iii) Strategic benchmarking
----------------------
iv) Benefits of benchmarking
----------------------
Answers to Check your Progress
----------------------
Check your Progress 1
----------------------
Fill in the blanks.
----------------------
1. PDCA helps in achieving benchmarks.
2. Comparing its function with others best in the industry is called ----------------------
benchmarking. ----------------------

----------------------

Benchmarking 247
 Notes Check your progress 2
True / False
----------------------
1. True
----------------------
2. True
----------------------

---------------------- Suggested Reading

---------------------- 1. Boxwell Jr, Robert J (1994). Benchmarking for Competitive Advantage.

Robert J Boxwell Jr, New York: McGraw-Hill. p. 225. ISBN 0-07-
---------------------- 006899-2.
---------------------- 2. Beating the competition: a practical guide to Benchmarking. Washington,
DC: Kaiser Associates. 1988. p. 176. ISBN 978-1-56365-018-5.
----------------------
3. Camp, R. (1989). The search for industry best practices that lead to
---------------------- superior performance. Productivity Press.

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

248 Techniques (Modern) for Operations Efficiency

Total Productive Maintenance
UNIT

12
Structure:

12.1 Introduction
12.2 A Brief on the 8 Pillars
12.3 12-Steps Procedure for the Implementation of TPM
12.4 Implementation Difficulties
12.5 Benefits of TPM
12.6 Indian Experience
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

Total Productive Maintenance 249

 Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
●● State the need for total productive maintenance.
---------------------- ●● Explain the 8 pillar approach.
---------------------- ●● Formulate the total productive maintenance for a process.
---------------------- ●● Evaluate the effectiveness of TPM.

---------------------- 12.1 INTRODUCTION

---------------------- We expect our machines to work without failures, produce high quality
output, at the same time consume very less manpower, raw materials, electrical
----------------------
energy, tools / consumables etc. But this is highly difficult to realise in practice,
---------------------- unless the approach is towards identifying the losses and eliminating them.
Total productive maintenance, shortly termed as TPM, provides the means to
---------------------- achieve and maintain high levels of productivity.
---------------------- TPM incorporates the following meaning :
T (Total) : Involvement of each and every employee of the organisation
----------------------
P (Productive) : Maximisation of efficiency based on the zero loss concept
---------------------- i.e. zero losses, zero accidents, zero defects and zero
---------------------- breakdowns.
M (Maintenance) : Management action to ensure availability of plant and
----------------------
equipment for production use for scheduled hours at
---------------------- minimum maintenance cost
Total productive maintenance :
----------------------
 aims at getting the most efficient use of equipment (i.e. overall efficiency).
----------------------
 establishes a total (companywide) productive maintenance system
---------------------- encompassing maintenance prevention, preventive maintenance and
improvement - related maintenance.
----------------------
 promotes and implements PM through small - group or team activities.
----------------------
Total Productive Maintenance is fast emerging as one of the key
---------------------- productivity improvement tools. Thanks to the efforts of CII (Confederation
of Indian Industry), many big companies in India such as Vikram Cements.
---------------------- Sundram Fasteners, Hindustan Lever Ltd., Birla Tyres, Usha Martin Industries,
Tanfac Industries etc. have successfully implemented TPM for overall
---------------------- productivity improvements.
---------------------- TPM is deployed through a unique 8 pillar approach for easy deployment
in any industry of any age (Fig. 12.1).
----------------------

----------------------

250 Techniques for Operations Efficiency

12.2 A BRIEF ON The 8 PILLARS Notes
1. Autonomous Maintenance (JISHU-HOZEN) ----------------------
Autonomous maintenance is the cleaning, checking, discovering hidden
----------------------
faults and undertaking simple adjustments by the operators, systematically
trained through a step -by -step program. Autonomous management is to prevent ----------------------
the reoccurrence of the defects by taking a pre-emptive action by the operator.
“This is my machine and I must maintain it” is the underlying philosophy of ----------------------
autonomous maintenance.
----------------------
A typical autonomous maintenance follows a step-by-step process as under :
----------------------
a) Training to create an awareness for equipment cleaning among the circle
members. ----------------------
b) Preparation of cleaning schedule.
----------------------
c) Model equipment cleaning by section manager.
----------------------
d) Elimination of dirt, dust and oil spillage
e) Establishing basic equipment condition ----------------------

i) cleaning ----------------------
ii) tightening ----------------------
iii) lubrication
----------------------
f) Improving on the hard to clean, hard to inspect and hard to lubricate areas.
----------------------
g) Counter measures to avoid reoccurrence.
----------------------
h) Preparation of cleaning standards.
i) Preparation of lubrication standards. ----------------------
j) Preparation of general inspection check list. ----------------------
k) Preparation of process inspection check list. ----------------------
l) Preparation of autonomous maintenance check list.
----------------------
m) Auditing of JISHU-HOZEN activities at every step.
----------------------
n) Motivation by reward schemes.
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

Total Productive Maintenance 251

 Notes

---------------------- TPM
8 PRINCIPLES
----------------------

----------------------

Safety, Health and Environment

----------------------

Autonomous Maitenance

Maintenance Prevention

Education and Training

and Equipment Initial
Planned Maintenance
Quality Maintenance
----------------------

Kobetsu - Kaizen

Office TPM
----------------------

Control
----------------------

----------------------

----------------------
----------------------

---------------------- Fig. 12.1 : 8 Pillars of TPM

The purpose of autonomous maintenance, is to teach the operators
----------------------
how to maintain their equipment by performing routine daily maintenance
---------------------- checks, minor adjustments, lubrication, minor repair and part change out, early
detection of abnormal conditions etc. Expensive repairs and major breakdowns
---------------------- are handled by the plant maintenance personnel. Even if outside maintenance
experts have to be called in, the equipment operator is made to play a significant
----------------------
part in the repair process.
---------------------- 2. Kobetsu -Kaizen
---------------------- Kobetsu -kaizen is to continuously improve utilisation of workers,
equipment and material,l through continuous improvement in the processes and
---------------------- procedures etc.
---------------------- It analyses the various causes of time losses and evolves solutions to the
chronic problems.
----------------------
The following are the six big losses :
----------------------
a) Breakdown losses
---------------------- b) Setup and adjustment losses
---------------------- c) Idling and minor stoppage losses

---------------------- d) Speed losses

e) Quality defect and rework losses
----------------------
f) Start up losses
----------------------

----------------------

252 Techniques for Operations Efficiency

Steps involved to develop Kobetsu Kaizen are : Notes
a) Select equipment / line / process
----------------------
b) Organise project teams
----------------------
c) Collect loss data and summarise present losses
d) Draw Kaizen themes ----------------------
e) Set targets ----------------------
f) Analysis and recommendation by the team ----------------------
g) Display results
----------------------
Benefits of Kobetsu Kaizen are reflected in reduced
----------------------
1) Equipment failures
2) Equipment breakdowns ----------------------

3) Job change time ----------------------

4) Tool change time ----------------------
5) Minor stops
----------------------
6) Management losses
----------------------
a) want of operators
b) want of tools ----------------------

c) materials ----------------------
7) Manufacturing cost ----------------------
3. Planned Maintenance
----------------------
Planned maintenance is to achieve a “zero breakdown” by improving the
efficiency of the traditional preventive maintenance activities. ----------------------
Planned maintenance encompasses three forms of maintenance : ----------------------
i. Corrective maintenance to repair, adjust or replace unsatisfactory equipment ----------------------
operation.
----------------------
ii. Preventive maintenance to repair, adjust or replace unsatisfactory
equipment to prevent future occurrence of breakdowns. ----------------------
iii. Productive maintenance to replace faulty parts prior to failure, without ----------------------
affecting the production by predicting a failure before it occurs, with
enough time to be able to make arrangement. Predictive maintenance make ----------------------
use of different condition monitoring techniques.
----------------------
Planned maintenance aims at
----------------------
 focusing on “planned maintenance” rather than “breakdown maintenance”.
 achieving stable production by eliminating equipment failures. ----------------------
 supporting autonomous maintenance. ----------------------

Total Productive Maintenance 253

 Notes  increasing the meantime between failure (MTBF)
 reducing maintenance cost.
----------------------
Activities involved are :
----------------------
1) Maintenance of equipment condition by
----------------------  eliminating product leakage
----------------------  eliminating lubricant leakage
 nut / bolt tightening and fixing.
----------------------
2) Maintenance of operating condition by
----------------------
 setting design capacity
----------------------  standardising operating method
----------------------  setting environmental condition.
---------------------- 3) Restoring deterioration by
 daily check points
----------------------
 weekly check points
----------------------
 calendar based check points
----------------------  shutdown based check points
---------------------- 4) Improving design weaknesses

---------------------- 5) Skill improvement

6) Reliability based maintenance
----------------------
 review of equipment maintenance
----------------------  failure pattern and failure analysis
----------------------  reliability based assessment
---------------------- 7) Maintenance cost control by
 improving life of the equipment
----------------------
 material substitution
----------------------
 change of supplier
----------------------  rebuilding and reconditioning
----------------------  improving maintenance practices

----------------------  import substitution

 development of in-house repair facilities
----------------------
 spare parts control
----------------------  inventory reduction
----------------------

----------------------

254 Techniques for Operations Efficiency

 Benefits of planned maintenance are : Notes
 zero equipment failures and breakdowns
----------------------
 improved reliability Mean Time Between Failures (MTBF)
----------------------
 improved maintainability Mean Time to Repair (MTTR)
 reduced maintenance cost ----------------------
4. Quality Maintenance ----------------------
Quality maintenance is to prevent quality defects (i.e. achieve a zero defect
----------------------
situation) by -
a) incorporating quality into the product through the process and equipment ----------------------
rather than controlling quality by inspecting products, and taking action
----------------------
against defects after they have occurred.
b) maintaining perfect machine and tooling conditions, so that defectives are ----------------------
not produced.
----------------------
c) setting and maintaining optimal process conditions to get quality product.
----------------------
d) preventing occurrence of defects by periodic measurements and verification
of standards. ----------------------
e) taking countermeasures (quality kaizen) ----------------------
The quality maintenance pillar focuses on four production inputs : (i) men, (ii)
materials, ----------------------
(iii) machinery and (iv) methods. ----------------------
Activities under quality maintenance embraces the following activities : ----------------------
1) Preparation of a quality assurance matrix
----------------------
2) Identifying the co-relation between quality variations and conditions
----------------------
3) Implementation of quality management systems (ISO -9000)
4) Preparation of problem charts (chronic problems) ----------------------
5) Evaluation of the problem’s severity by using the failure mode & effect ----------------------
analysis (FMEA)
----------------------
6) Using the team approach to track down the root causes of the problem.
7) Assessing the impact of the proposed countermeasures. ----------------------
8) Implementing improvements in the current process technology. ----------------------
9) Training of customers in the right product application.
----------------------
Benefits of this pillar are:
----------------------
 Reduction in customer quality complaints
 Reduction in inspection time ----------------------

 Reduction in process defects ----------------------

----------------------

Total Productive Maintenance 255

 Notes 5. Maintenance Prevention design and initial equipment control
Maintenance prevention design and initial equipment control is designed to
----------------------
facilitate
---------------------- a) the most efficient equipment investment, aimed at achieving a vertical start
upon full production.
----------------------
b) design of equipment which is highly functional, easy to maintain and
---------------------- which does not fail.
---------------------- c) shorten the period of development.

---------------------- d) achieve low life cycle of equipments.

Activities involved
----------------------
The following activities may be carried out under this pillar :
----------------------
1) Initial investment control by preparing a block sanction report, and effective
---------------------- equipment investment along with a scheme for early start up.
2) Activities to study the weakness of present equipments.
----------------------
3) Preparation of maintenance prevention design, sheets for feeding the
---------------------- information design to enhance the equipment reliability and maintainability.
---------------------- 4) Life value analysis for costly spares / equipments
---------------------- 6. Education and Training
Since the success of all other pillars of TPM depends upon the success of
----------------------
education and training, this is one of the pillars which has a direct linkages to
---------------------- the other pillars. The aim of education and training under TPM is -
 to develop abilities to determine and judge if the operating conditions can
----------------------
become abnormal.
----------------------  to develop abilities to discover and analyse malfunctions and restore the
---------------------- equipment to a normal condition.
 to develop abilities to respond quickly to abnormalities, by repairing or
---------------------- have some technician take care of it.
----------------------  to have multi - skilled employees in all departments.
----------------------  to develop skills for zero defects, zero breakdowns and zero accidents.
Activities Involved
----------------------
The following activities can be placed under this pillar :
----------------------
1) Workers skill level assessment in 4 categories, to identify their class room
---------------------- as well as ‘on the job (OJT) training’ needs:

----------------------  cannot do
 can do
----------------------
 can do well
----------------------
 can teach
256 Techniques for Operations Efficiency
2) Setting training targets Notes
3) Preparing annual training calendar
----------------------
4) Development of in- house training facilities
----------------------
5) Development of on- the- job training workshops
6) Depute employees to outside training programmes on special subjects ----------------------

7) Post training evaluation to assess effectiveness. ----------------------

7. Office TPM ----------------------

Office TPM aims to eliminate problems in the non- shop floor areas, so ----------------------
that offices are oriented for excellent support for manufacturing. Typical office
problems analysed under office TPM are: Non -availability of files / documents in ----------------------
time, lengthy meetings without agenda, poor housekeeping, insufficient storage,
----------------------
high inventory, slow manual working, duplicate work, etc. TPM aims at :
 improvement in filing system ----------------------
 paperless work ----------------------
 office automation
----------------------
 reduction in product inventory
----------------------
 increase in office productivity
 speedy communication. ----------------------
Activities involved ----------------------
The following activities are placed under this pillar :
----------------------
1) 5 ‘S’ implementation
----------------------
2) Improved filing system for easy accessibility and quick retrieval within X
(say 45) seconds. ----------------------
3) Building up a system of administrative autonomous maintenance. ----------------------
4) Improving administrative capacity through education and training.
----------------------
5) Creating an efficient staffing system.
----------------------
6) Office automation and computerisation to achieve a paperless office.
7) Establishing inventory standards and control system ----------------------
8) Speedy communication systems. ----------------------
8. Safety, hygiene and environment control ----------------------
Safety, hygiene and environment control is to identify and eliminate
----------------------
all hazards by adopting safe, hygienic and environment friendly activities to
prevent death, disability, injuries and occupational diseases at work. ----------------------
TPM is one of the best tools to enhance safety in the environment at the
----------------------
work place, through small group activities and the involvement of employees at
all levels of the organisation for a common goal of “zero accidents” and “zero ----------------------
pollution”
Total Productive Maintenance 257
 Notes TPM aims at
 zero accidents
----------------------
 zero occupational disease
----------------------  zero pollution
---------------------- Activities involved

---------------------- Following activities can be placed under this pillar :

1) Safety and environment policy
----------------------
2) Safety related activities
----------------------  preparation of the safety manual
----------------------  safety audits
 implementation of a safety work permit system
----------------------
 introducing of a safety award scheme
----------------------  display safety posters and slogans
----------------------  celebration of safety week

----------------------  regular monitoring and analysis of accident cases

3) Pollution control related activities
----------------------
 initial environmental review
----------------------  elimination of leakage, spills, dust etc.
----------------------  upgradation of the existing pollution control equipment
 tree plantation
----------------------
 creating an awareness of environmental control through class room
---------------------- lectures
----------------------  distribution of literatures and leaflets, celebration of environment
day, etc.
----------------------
 regular environmental audits
---------------------- 4) detection of problems that may affect safety or environment
---------------------- 5) hygiene audits
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

258 Techniques for Operations Efficiency

12.3 12-STEPS PROCEDURE FOR IMPLEMENTATION Notes
OF TPM ----------------------
A step-by-step procedure for implementing TPM in an organisation is ----------------------
shown in Fig. 12.2 and detailed hereunder:
----------------------
Declaration by top management
to introduce TPM ----------------------

----------------------
Introducing education and ----------------------
campaign for TPM
----------------------

Create organisation ----------------------

to promote TPM
----------------------
----------------------
Setting basic policy and
targets for TPM ----------------------

----------------------
TPM kick-off
----------------------

----------------------
Implementation of all the 8 pillars of TPM
- Autonomous maintenance ----------------------
- Kobetsu Kaizen
- Quality maintenance
- Planned maintenance ----------------------
- Maintenance prevention and equipment initial control
- Education & Training ----------------------
- Safety, Health & Environment
- Office TPM ----------------------

----------------------
Total application of TPM
----------------------
& raising its level
----------------------
End ----------------------

Fig. 12.2: 12-Steps Procedure for Implementing TPM in an Organisation ----------------------

STEP 1 : Declaration by the top management to introduce TPM ----------------------
The top person of the organisation announces the introduction of TPM in
----------------------
the company, at a gathering of all the employees after deliberations on TPM in
the Apex body and discussion with union leaders. The announcement should ----------------------
also be printed in the company’s in house magazine and displayed on the
company’s notice board. ----------------------

Total Productive Maintenance 259

 Notes STEP 2 : Introductory education and campaign for TPM
i) All managers are made to attend a TPM course which is generally of 2 -3
----------------------
days duration. The contents of the course are :
----------------------  Outline of TPM
----------------------  12 steps to implement TPM

----------------------  One / two exercise on the TPM’s 8 pillars’

 Visit to a few successful TPM companies.
----------------------
ii) Seminar talks and video shows are organized to introduce the concept to
---------------------- the general employees.
---------------------- iii) Posters and banners are put up at strategic locations to create an awareness
/ enthusiasm among the employees.
----------------------
iv) Study groups of selected employees are formed to study books / literature
---------------------- on TPM and disseminate knowledge among others.
v) A TPM consultant (JIPM) is selected and arrangements are finalised.
----------------------
STEP 3 : Create organisation to promote TPM
----------------------
i) A steering committee comprising of the senior management is headed by
---------------------- the company’s top person. The members of the said committee serve as
leaders of the 8 TPM pillars.
----------------------
ii) Eight special committees are set up for the 8 TPM pillars, from the middle
---------------------- management level. The 8 TPM pillar committee constitutes the company’s
formal TPM organisation.
----------------------
iii) TPM promotion secretarial is set up with full - time staff.
----------------------
iv) Two model circles - one for the autonomous maintenance and another for
---------------------- the office TPM are set up.

---------------------- STEP 4 : Setting basic policy and target for TPM

(i) The policy of using the TPM to achieve the company’s objectives and
---------------------- targets is set out by the top management. Only important indicators such
---------------------- as sales, profitability, employees productivity, equipment efficiency etc.
are to be considered as objectives.
---------------------- (ii) A benchmarking exercise is undertaken to determine the current status of
---------------------- the indicators.
(iii) Targets are set for key performance areas. The targets must be SMART (i.e.
----------------------
specific, measurable, achievable, realistic and time bound) targets.
---------------------- STEP 5 : Preparation of master plans for implementing TPM
---------------------- A detailed plan for the implementation of each TPM pillar, until the targeted
date of the TPM excellence Award’s audit, is drawn, discussed and finalised.
---------------------- The plans are drawn carefully and indepth. If the plans are not carefully drawn,
target dates will be missed and key resources wasted.
----------------------

260 Techniques for Operations Efficiency

STEP 6 : TPM Kick -off Notes
Top management people from the headquarters, affiliated companies, suppliers
----------------------
are invited and a large scale event is held to kick- off the TPM project in the
organisation. The event is generally half - day affair involving presentations ----------------------
by the management model circles, including the pledge ceremony for the
employee’s representatives (employees taking pledge to do TPM) ----------------------
STEP 7 TO 11 : Implementation of all the 8 TPM pillar activities ----------------------
(1) Top management selects and decides company - level teams to implement the 8
----------------------
pillar activities. The company may follow either of the following approaches :
(i) Start with the four (4) pillars of Kobetsu Kaizen, Autonomous maintenance, ----------------------
Planned maintenance Training and Education and gradually add in stages, ----------------------
the other four pillars, in the sequence of maintenance prevention and Initial
Control, Quality Maintenance, Office TPM, Safety and Environment, or ----------------------
(ii) Start with all eight (8) pillars simultaneously. ----------------------
The TPM steering committee which consist of heads of sub-committees, is
responsible for the effective implementation of action plans. ----------------------

All the eight pillars are taken care of by respective sub-committees, comprising ----------------------
of key persons from the functional areas. Targets, under sub-committees are
----------------------
broken down to the grass root levels where these targets are translated into an
action plan, and implemented by the TPM circles. ----------------------
The TPM Secretariat along with the JIPM trained TPM instructors, carry out
----------------------
the day to day site inspection, audits and training activities. Expert guidance is
received from the JIPM consultant. ----------------------
A small brief of each pillar is given below :
----------------------
1) Kobetsu Kaizen to increase production efficiency by eliminating losses.
----------------------
2) Autonomous maintenance to eliminate forced deterioration.
----------------------
3) Planned maintenance to shift from breakdown (or corrective) maintenance,
to time based maintenance and then to conditioned-based maintenance. ----------------------
4) Education and training to equip operators with operation and maintenance
----------------------
skills and maintenance staff with higher skills.
5) Initial flow control for new products and equipment (or Early Management) ----------------------
to ensure easy to manufacture product development (i.e. the shortest time
----------------------
to move from the design to regular production for new products and
equipment), and easy-to-operate equipment. ----------------------
6) Quality management to achieved zero defect status by ensuring defect-free ----------------------
equipments and standardised process conditions.
7) Office TPM to increase productivity and efficiency of the administrative ----------------------
and support functions. ----------------------
8) Safety, hygiene and environment to achieve zero accident and zero
contamination (i.e. zero pollution). ----------------------

Total Productive Maintenance 261

 Notes Sub-steps common to all pillars are as follows:

---------------------- i) Form a model circle on a pillar

ii) Model circle to work on small focus area (e.g. small office TPM pillar, one
---------------------- machine for implementing autonomous management, one small section to
---------------------- implement safety and environment pillar etc.) in the section.
iii) Standardise steps.
----------------------
iv) Form general circles on the pillar.
----------------------
v) Extend / deploy the standardised steps to whole area, to achieve the goals
---------------------- of the pillar.

---------------------- vi) Conduct PDCA and Kaizen on the pillar until achievement of the desired
result on the pillar.
---------------------- STEP 12 : Total application of TPM and raising its level
---------------------- 1) TPM promotion committee monitors, on a continuous basis, implementation
through periodic (say fortnightly) meetings.
----------------------
2) Set targets are evaluated continually through periodic (say quarterly) basis
---------------------- on a scale of PQCDSM (Productivity, Quality, Cost, Delivery, Safety and
Morale).
----------------------
3) Various Award Schemes like Best Kaizen Themes, Best TPM Circles,
---------------------- Best Presentation Board etc. are implemented for the motivation of the
employees.
----------------------
4) Monthly communication meetings are held, to present the achievement of
---------------------- the different circles.
----------------------
Check your Progress 1
----------------------

---------------------- True / False

1. Total productive maintenance aims at getting the most efficient use
----------------------
of equipment.
---------------------- 2. MTBF stands for Mean Time Between Failures
---------------------- 3. MTTR stands for Mean Time to Repair

----------------------
12.4 IMPLEMENTATION DIFFICULTIES
----------------------
Implementation of TPM in Indian industries has been poor due to following
---------------------- reasons:
----------------------  Lack of knowledge of the TPM
----------------------  Low educational level of Indian workers
----------------------  Resistance to change

262 Techniques for Operations Efficiency

 Apathy towards “Jishu - Hozen” which involves initial cleaning by senior Notes
staff
----------------------
 Fear of loss of job
----------------------
 Fear of extra work load
----------------------
12.5 BENEFITS OF TPM
----------------------
TPM can result in the following benefits to the organisation:
----------------------
 Greater equipment availability
----------------------
 Low production cost
----------------------
 Training and Development of employees
 Greater employee involvement due to a small group of activities ----------------------
 Improved quality ----------------------
 Few industrial accidents ----------------------
 Improved worker’s morale
----------------------
 Clear distinction between responsibility and authority
----------------------
 Improved company’s competitive strength
After 12.5 ----------------------

----------------------
Check your Progress 2
----------------------
Fill in the blanks. ----------------------
1. TPM aims at _______ efficiency of equipment.
----------------------
2. The success of TPM depends on _______ and _______.
----------------------

----------------------
Activity 1
----------------------
1. What are the principles of Total Productive Maintenance (TPM)?
----------------------
2. What are the steps in implementing Total Productive Maintenance?
----------------------

12.6 INDIAN EXPERIENCE ----------------------

----------------------
Total Productive Maintenance (TPM), an integrated management, has
been taken up with serious vigour by a few big organisations in the Indian ----------------------
Industries.
----------------------
Sundaram Fasteners, Vikram Cement, Birla Tyres, BPL Sanyo
Technologies, Indo-gulf Fertilisers and Chemicals Corporation, Sundaram ----------------------
Clayton, Tanfac Industries are being mentioned just to name few. Vikram
Total Productive Maintenance 263
 Notes Cement was the first organisation in the Indian sub-continent to implement TPM
in a structured manner under expert guidance of JIPM. The results achieved by
---------------------- Vikram Cement from the systematic implementation of TPM, are beyond te
even imagination of many.
----------------------
For example :
----------------------
 Production went up by 42%
----------------------  Quality complaints reduced by 95%
----------------------  Kiln overall equipment efficiency increased by 49%
 Electrical energy consumption reduced by 24%
----------------------
 Accidents reduced by 99% (achieved almost zero accident state).
----------------------
 Ambient air pollution brought down by 50%
----------------------
The company got the coveted TPM excellence award in 1995.
----------------------
Summary
----------------------
 TPM (Total Productive Maintenance) is a technique for keeping machines
----------------------
in good working condition through the systematic maintenance of
---------------------- equipment so that, they fail less frequently and the production process
they support is deployed through a unique 8- pillar approach in any
---------------------- industry of any age. These 8 pillars are -
---------------------- (1) Autonomous maintenance to clean, check, discover hidden faults
and undertake simple adjustments by the operator.
----------------------
(2) Kobetsu Kaizen to continuously improve utilization of workers,
---------------------- equipment and material through continuous improvement in the
process.
----------------------
(3) Planned maintenance to achieve zero breakdown by improving
---------------------- efficiency of traditional preventive maintenance activities.

---------------------- (4) Quality maintenance to prevent quality defects by developing

perfect machine for perfect quality.
----------------------
(5) Maintenance Prevention Design and initial equipment control
---------------------- to develop machines for “high equipment effectiveness”, and to
develop “quick process for developing new products”.
----------------------
(6) Education / training to develop skills for zero defects, zero
---------------------- breakdowns and zero accidents, and to develop multi-skilled
employees in all departments.
----------------------
(7) Office TPM to eliminate problems in non-shop areas, so that the
---------------------- offices are oriented for excellent support for manufacturing.

---------------------- (8) Safety, hygiene and environment control to identify and eliminate
old hazards by adopting safe, hygienic and environment friendly
---------------------- activities, to achieve zero accidents and zero health hazards at work.

264 Techniques for Operations Efficiency

 Keywords Notes

----------------------
 Autonomous maintenance : To eliminate forced deterioration.
 M (Maintenance) : Management action to ensure availability of plant ----------------------
and equipment, for production use for scheduled hours at minimum
----------------------
maintenance cost
 MTBF : Mean Time Between Failures ----------------------
 MTTR : Mean Time to Repair ----------------------
 P (Productive) : Maximisation of efficiency based on the zero loss ----------------------
concept i.e. zero losses, zero accidents, zero defects and zero
breakdowns. ----------------------
 Planned maintenance : To shift from breakdown (or corrective) ----------------------
maintenance to time based maintenance, and then to conditioned-based
maintenance. ----------------------
 T (Total) : Involvement of each and every employee of the organisation ----------------------

----------------------
Self-Assessment Questions
----------------------
1. What is TPM? Why is it important for the industry?
2. What are the key elements of TPM? Discuss them briefly. ----------------------

3. “TPM is deployed through a 8- pillars approach”. Discuss. ----------------------

4. Write short notes on the following : ----------------------
(i) Autonomous maintenance ----------------------
(ii) Planned maintenance
----------------------
(iii) Office TPM
----------------------
(iv) Quality maintenance pillar of TPM
(v) Kobetsu Kaizen ----------------------

----------------------
Answers to Check your Progress
----------------------
Check your progress 1
----------------------
True / False
1. True ----------------------
2. True ----------------------
3. False ----------------------

----------------------

----------------------

Total Productive Maintenance 265

 Notes Check your Progress 2
Fill in the blanks.
----------------------
1. TPM aims at most efficiency of equipment.
----------------------
2. The success of TPM depends on education and training.
----------------------

---------------------- Suggested Reading

---------------------- 1. Gubata, Joyce (2014). “Just-in-time Manufacturing”. Research starters

Business.
----------------------
2. Prabhuswamy, M; Nagesh, P; Ravikumar, K (February 2013). “Statistical
---------------------- Analysis and Reliability Estimation of Total Productive Maintenance”.
IUP Journal of Operations Management(Rochester, NY: Social Science
---------------------- Electronic Publishing) XII (1): 7–20.
---------------------- 3. http://www.leanproduction.com/tpm.html. Retrieved 7 March 2015.

---------------------- 4. to:a b Nicholas, John (1998). Competitive manufacturing management.

Europe: McGraw-Hill.
---------------------- 5. Wienclaw, R (2008). Operations & Business Process Management.
---------------------- 6. Creech, Bill (1994). Five Pillars of TQM: How to Make Total Quality
Management Work for You. E P Dutton
----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

----------------------

266 Techniques for Operations Efficiency

Total Quality Management (TQM)
UNIT

13
Structure:

13.1 Introduction
13.2 Meaning of TQM
13.3 Key Principles of TQM
13.4 Approaches of TQM
13.5 Benefits of TQM
Summary
Key Words
Self-Assessment Questions
Answers to Check your Progress
Suggested Reading

Total Quality Management (TQM) 267

 Notes
Objectives
----------------------
After going through this unit, you will be able to:
----------------------
●● Identify total quality management as a continuous process.
---------------------- ●● Recognise the essentials of Total Quality Management.
---------------------- ●● State the transformation stages of TQM.
----------------------
13.1 INTRODUCTION
----------------------
The conventional quality control systems provide a passive approach,
---------------------- wherein quality is considered a by-product of the manufacturing system. The
underlying assumption is that, variability is necessarily inherent in any process,
---------------------- and variations in the individual process may cause production of some defective
---------------------- pieces. If the resulting defective rate is high, compared to a pre-set standard, an
inspector will identify and route them for rework and if rework is not possible,
---------------------- he will send them to the scrap yard. Such an approach can’t be continued in
today’s competitive market as -
----------------------
 it is very expensive
----------------------
 it does not guarantee quality
----------------------  quality can’t be inspected. Instead, it has to built into the product.
----------------------  it assigns the responsibility for quality on the quality control personnel.
Instead, responsibility for quality should rest on those who produce the
---------------------- product.
---------------------- A more productive approach (modern approach) to quality emphasis is
building quality into the product by studying and improving activities that affect
---------------------- quality, right from marketing, through design to manufacturing. The approach
---------------------- requires co- operation from everyone in the organisation, right from the top
management down to workforce. It is this approach which is called as total
---------------------- quality management (TQM).

----------------------
13.2 MEANING OF TQM
----------------------
TQM aims to improve efficiency and effectiveness of the organisation,
---------------------- which enables defect prevention leading to maximization of customer satisfaction,
by developing the right attitude and control. TQM is an organisational activity
---------------------- and it must reach every employee of the organisation. TQM is a way to improve
the quality of products and services continuously, and it therefore includes every
----------------------
level and every activity of the organisation.
---------------------- According to Ron Collard and Gill Sivyer “TQM is a cost effective
---------------------- system for integrating the continuous quality improvement efforts of people,
at all levels in the organisation to deliver products and services which ensure
---------------------- customer satisfaction.”

268 Techniques for Operations Efficiency

TQM stands for Total Quality Management, it includes: Notes
 all areas and functions, viz., it sales, production, engineering, materials
----------------------
planning, administration, accounts or anothers.
 all activities namely order booking, costing, designing, bill of materials ----------------------
preparation, planning, indenting, sourcing, ordering, storing, issuing,
----------------------
handling, assembly, testing, inspection, packaging, dispatching, invoicing,
transporting etc. ----------------------
 all employees, be they owners, directors, managers, supervisors, workers,
----------------------
vendors, sub-contractors, service providers or customers.
 always ( i.e. at all times) that is month after month, every day of the month, ----------------------
every hour of the day, every minute of the hour, every second of the minute. ----------------------
 all places, be it the factory, office, branch or any other premises of the
firm.” ----------------------

TQM involves attitudinal changes and it requires every employee to do ----------------------

his best in his job. According to yet another authority on the subject, “TQM
is a mixture of social and technical processes. TQM means performing every ----------------------
activity of the process right the first time and at all times.” ----------------------

13.3 KEY PRINCIPLES OF TQM ----------------------

Fig. 13.1 Essentials of TQM are - ----------------------

Do it right Process emphasis Quality ----------------------

first time Management Systems
----------------------
8 10
Cost of 9 Customer ----------------------
quality 7 focus
1
Key ----------------------
Principles of
6 TQM ----------------------
Quality 2
Continuous
improvement
teams
improvements ----------------------
5 4 3
----------------------
Training, People Measurements
Education and involvement ----------------------
Development
----------------------
Fig. 13.1: Essentials of TQM
----------------------
1) Customer Focus
Focus on the customer is the critical element of TQM. This is because ----------------------
an organisation exists because of customers. “The fundamental purpose
----------------------
of every business is to create a customer”, said management guru Peter
Drucker. Customer satisfaction (infact the customer delight), therefore, ----------------------
should drive all activities.
----------------------

Total Quality Management (TQM) 269

 Notes The following actions are recommended for customer focus :

---------------------- a) Give customers the highest quality and the best service at the best
price
---------------------- Best price is not the lowest price. Just lowering the price is not the solution
---------------------- to the problem of competition. It won’t work. Providing best value for the
money is the right approach.
---------------------- b) Make it as easy as possible for customers to do business with you
---------------------- Reduce the amount of time that a customer spends to obtain a quotation,
receive an order acceptance, get delivery and receive service.
----------------------
c) Learn as much as you can about your customers
----------------------
Try to know not only what customers want, but also why they want to are
---------------------- their demands regular or short lived? From where has the customer has
been buying these goods and services? Why does he want to change the
---------------------- supplier? Why was he dis-satisfied with the other supplier? What are his
---------------------- expectations?
d) Always look for services your customers want but dos not get
----------------------
Provide customers with additional services, which they desire but are
---------------------- unable to get. We should not assume that we are providing everything that
the customers want.
----------------------
e) Identify / define customer expectations
----------------------
To satisfy a customer, identify / define customers expectations. This can be
---------------------- done by adopting the following six step approach.
i) Carry out Pareto’s analysis to identify 20% of those customers who
----------------------
give 80% of the business to the organisation. This list should include
---------------------- even those who have switched over to a competitor in the past years.

---------------------- ii) Identify executives, preferably senior top management executives,

who will visit the customers. Since people are hesitant to give a free and
---------------------- frank feedback to people with whom they enjoy a good relationship,
executives who deal with a particular customer should ideally not visit
---------------------- that customer.
---------------------- iii) Fix up appointments, meet customers in person to find their
expectations. The team should encourage customers to express
---------------------- what they expect from an ideal organisation ( in the same industry),
---------------------- and some of the best practices they have experienced in the related
industries. Many of the customers these days are willing to discuss
---------------------- their expectations and displeasures, when convinced that the supplier
is genuinely interested in improvements.
----------------------
iv) Convey customer’s expectations to the top management. Research
---------------------- organisations usually recommended that the conversations with the
customers be recorded, so as to capture their true essence and this
---------------------- can be replayed to the top management. It is then the task of the top

270 Techniques for Operations Efficiency

 management to analyse this feedback, positive or negative, and devise Notes
suitable strategies to tackle the underlying problems and meet the
expectations of the customers. Strategies are converted into themes and ----------------------
themes into action plans by the project and / or cross functional teams.
----------------------
v) Translate customer’s expectations into a questionnaire to cover a larger
customer audience. Such an approach, to customer’s expectations ----------------------
translated into a questionnaire, provides parameters to obtain
----------------------
the customer’s feedback on a regular basis, as a part of customers
satisfaction surveys, thereby measuring periodically as to how the ----------------------
company was performing along each of these customers expectations.
----------------------
vi) Analyse periodically the achievements, set new targets involving
everyone in the process of improvement. Statistical techniques should ----------------------
be employed to measure performances and track down / minimise
variations. ----------------------

f) Have a well-defined policy to handle dissatisfied customers ----------------------

It costs less to retain the existing customers than to find new ones. And one ----------------------
of the ways to keep them is to treat their complaints, as “opportunities for
improvements”. If you address the grievances of your customers, you can ----------------------
stop customers from taking their business elsewhere. It must be realised ----------------------
that happy customers, are loyal customers.
In this connection, it is important to consider the following findings from a ----------------------
study by TARP ( Technical Assistance Research Programme Inc.) : ----------------------
 About 50 percent of the time, customers who have a problem with the ----------------------
product or services are not likely to complain to the company about it.
 Nine out of ten of these critics will probably take their business to the ----------------------
competitor. ----------------------
 Even when a customer does not complain, one out of every two will
----------------------
not be thoroughly satisfied with the company’s efforts to solve the
problem. ----------------------
 Dissatisfied customers typically tell around seven to nine other people,
----------------------
when they have an unsatisfactory experience with a company.
 Negative information has twice the impact on purchasing decisions. ----------------------
 Word-of-mouth is one of the most important factors in influencing a ----------------------
customer decision to buy from a company.
----------------------
 Customers who had a problem that got resolved satisfactorily, tend to
be more loyal and supportive than those who do not experience any ----------------------
problem at all.
----------------------
It is therefore essential that every company must have a sound customer
relation policy. The policy should encourage customers to communicate ----------------------
their complaints.
----------------------

Total Quality Management (TQM) 271

 Notes Customer should be told as to ‘how’, ‘where’ and ‘by whom’ complaints
are handled. Following guidelines are suggested.
----------------------
i) Make it easy for the customers to register complaints. Study the
---------------------- existing system, simplify, install and obtain customer feedback.
ii) Thank customers for their complaints, and explain why you are
----------------------
pleased that they complained e.g. “Thank you. I am glad that you told
---------------------- me, so that I can fix this for you and prevent it from happening again.”
iii) Apologise for the problem. You don’t have to agree with the caller, but
----------------------
express regret if there is a problem. Customer is sure to cool down if
---------------------- you apologise, but the effect will be more if apology is preceded by a
“thank you for the complaint.”
----------------------
iv) Promise to deal with the problem immediately. Commitment to act
---------------------- right away relaxes the customer.

---------------------- v) Request the customer to provide you the information. Collecting

information from internal sources may delay action. Requesting
---------------------- customer for information saves time. It also gives him the feeling that
you are going to act,. Example. “In order to enable me to act quickly
---------------------- on your complaint, can you give some information….”.
---------------------- vi) Take action as quickly as possible. Fast action shows you are serious
about customer service. Don’t forget to inform the customer about the
---------------------- action taken.
---------------------- vii) Follow up to make sure that customers are satisfied with what you
have done. Thank customers again for complaining.
----------------------
viii) Communicate to let everyone in the organisation know about the
---------------------- problem. Inform everyone in the organisation about the problem so as
to prevent occurrence of similar situations.
----------------------
g) Talk to the customers who stopped buying from you
----------------------
Talking to such a supplier may uncover problems not known to you, and it
---------------------- is advisable to correct them at the earliest before you lose more customers.
---------------------- h) Incentivise your staff to provide best customer service

---------------------- Recognize and reward those employees who offer the best customer
service. Introduce a monthly, quarterly or yearly award, with a cash
---------------------- prize, for members of the staff nominated by the customers. Use the CIA
approach (Catch employees In the Act of practising outstanding customer
---------------------- service). Encourage customers to cite names of excellent service providers
---------------------- and reward those employees.
i) Provide rewards for big spenders
----------------------
The company may offer turnover discounts to the regular customers and
---------------------- straight forward discount on larger orders.
----------------------

272 Techniques for Operations Efficiency

j) Put customers service first Notes
To get everyone in your organisation committed to customer service :
----------------------
 Write a mission statement that includes the company’s - wide pledge
to customer service for example, “We are committed to serve our ----------------------
customers enthusiastically all the time …….”
----------------------
 Make sure each employee understands his or her role in customer
service. Each employee must be told of what you are trying to improve ----------------------
and he / she knows how to go about it.
----------------------
 Establish response standards. Set time limits for each activity affecting
customer service for example, enquiries must be responded to within ----------------------
2 days. Customer complaint must be attended within 24 hours etc. ----------------------
 Have all key people occasionally worked in customer service, to
ensure that everyone better understands the problems of frontlines and ----------------------
needs of the customers. ----------------------
 Locate other departments around customers service. This will
demonstrate that customer service is the ‘heart beat’ of the organisation. ----------------------

 Incorporate customers service as a part of staff evaluation. Each and ----------------------

every key person in the sales / service / factory should be evaluated,
----------------------
for customer service performance in his / her performance appraisal.
 Demonstrate top management commitment to improve customer ----------------------
service. If customer service has to improve, the beginning has to be
----------------------
made with the CEO’s office. Commitment must be communicated
from the top to all the employees. ----------------------
k) Make sure customers know of improvements made in customer service
----------------------
Improvement in customer service must be made known to everyone
including the customers. For example, if delivery lead time has been ----------------------
reduced from 2 weeks to 1 week, make sure that customers are informed,
and those involved get credit for it. ----------------------
l) Train employees in communication skills exclusive to customers ----------------------
service
----------------------
Teach service people to put warmth in their voices, to learn customers
names and use them, and to follow up immediately on problems that ----------------------
develop. In the words of one of the authorities on the subject, the most
effective words used in customer service are: ----------------------

One most effective word : “Please” ----------------------

Two most effective words : “Thank you” ----------------------
Three most effective words : “You are welcome”
----------------------
Four most effective words : “Can I help you?”
Five most effective words : “We appreciate your kind patronage” ----------------------
Six most effective words : “We’d like to see you again” ----------------------

Total Quality Management (TQM) 273

 Notes Seven most effective words : “I will check for you at once”
Eight most effective words : “We are very sorry for the inconvenience caused”
----------------------
Nine most effective words : “Is there anything else we can do for you?”
---------------------- Ten most effective words : “There is nothing too small or big we can’t do”
---------------------- m) Internal customer satisfaction is essential for external customer
satisfaction
----------------------
When an organisation adopts TQM, it is important that all employees feel
---------------------- that the quality of the activities they perform, affects some other people or
departments who receive the products or service produced by them. These
----------------------
people or departments are called internal customers. Internal customers
---------------------- satisfaction is as vital as external customer satisfaction. It is not possible to
satisfy the external customers without satisfying the needs of the internal
---------------------- customers.
---------------------- 2) Continuous improvements

---------------------- TQM is not a one time activity but an on -going way of doing business. In a
competitive situation, small on-going improvements are better than big delayed
---------------------- improvements. TQM philosophy is to continuously identify and eliminate those
activities, that add little or no value to the products or services produced (i.e.
---------------------- non-value added activities or waste). Several categories of wastes, including
waste of human effort, have been identified by Shigeo Shingo.
----------------------
Continuous improvements are achieved using PDCA’s cycle technique,
---------------------- wherein the goals are determined (plan), employees are trained to implement
the change (do), reviews are done (check) and actions are taken to internalise
---------------------- the change (act).
---------------------- Tools utilised in the continuous improvements are called 7 -QC Tools
like check sheets, Pareto diagrams, cause and effect diagram, histogram, scatter
---------------------- diagram, stratification, and control charts.
---------------------- 3) Measurements
TQM recognises that what you measure, you alone can control and
---------------------- improve. Without measuring one initial performance, targets can’t be set and
---------------------- without targets, you have no way to judge improvements.
TQM recommends the following simple measurements to know the
---------------------- effectiveness of these activities :
----------------------  Financial performance e.g. sales for the month, creditors, sundry debtors
etc.
----------------------
 Customers satisfaction e.g. speed of settling customers complaints, speed
---------------------- of answering telephone calls, customer loyalty, customer complaints per
period, customers satisfaction index, delivery performance.
----------------------  Health and safety e.g. severity rate, frequency rate, man days charged per
---------------------- injury etc.
 Staff attitudes e.g. employee satisfaction index, labour turnover, no. of
---------------------- warning notices issued, no. of suggestions received etc.

274 Techniques for Operations Efficiency

 Product quality e.g. cost of quality, rejection and rework (measured in Notes
PPM), warranty replacements.
 Productivity performance e.g. turnover per employee. ----------------------

 Improvements e.g. cash saving of each department, expense reduction. ----------------------

4) People involvement ----------------------
TQM strives to utilise the abilities and experience of all employees. Since
most of the quality related activities and customer contact, takes place at the ----------------------
lower end of the organisation, these employees are the most potent source of ----------------------
improvement in the organisation. TQM requires that
----------------------
 the organisation has clearly defined methods of gauging employees
involvement. ----------------------
 the performance of the employees towards meeting the objectives of the
organisation is measured at periodic intervals. ----------------------
Various techniques for employee involvement are : suggestion schemes, quality ----------------------
circles, Kaizen etc.
----------------------
People involvement is a long term activity and a philosophy of management
of human resource. The following actions are recommended to ensure people ----------------------
involvement :
----------------------
a) Conduct an attitude survey
A drive for people involvement should start with the study of staff attitudes. ----------------------
The survey usually helps to know what the staff thinks about the company,
its managers, its communication, its jobs, its training and its management. ----------------------
The study may reveal some of the problems which were not known. ----------------------
Some examples of employee’s feed back, from a recently concluded
attitudes survey at a chemical unit revealed the following: ----------------------
 Most of the employees in the accounts department felt that their boss ----------------------
does not consult them before making changes.
----------------------
 A sales person mentioned that communication between a major branch
and the head office was poor. ----------------------
 Most of the employees were of the view that the top management, was
----------------------
not prepared to listen to the employees.
 Senior staff felt that the existing performance appraisal system was ----------------------
a farce. They filled forms because they were required to decide
increments for their subordinates. ----------------------

 Employees in the administration department reported that they ----------------------

received too little training for their jobs.
----------------------
 Management trainees were of the view that the company’s induction
programme did not serve any useful purpose. ----------------------
 Employees in the engineering department were found to be satisfied ----------------------
with the guidance / help provided by their departmental head while
purchase engineers in the materials department felt their boss never ----------------------
guided them.
Total Quality Management (TQM) 275
 Notes Mere obtaining of feedback is not enough. Employees should be told as to
what action is being taken. Problems revealed in surveys must be tackled
---------------------- suitably and the situations remedied.

---------------------- b) Empower staff

Empowerment is not the abdication of management responsibility, but
---------------------- making best use of the firm’s most valuable resource, that is Human
Resource.
----------------------
Empowerment is
----------------------
 making the employees involved in creating quality, of products and
---------------------- services.
 inviting ideas needed to raise quality to even higher levels.
----------------------
 encouraging employees to make decisions for themselves.
----------------------
 trusting staff to do their jobs and letting them to set their own
---------------------- standards.
 allowing workers to stop the machine / assembly line if they believe
---------------------- that product quality is below standard. (TQM philosophy is that it is
---------------------- better not to produce, than to produce sub-standard product / part).
 letting staff learn from the past mistakes (TQM philosophy is that
---------------------- unless one makes mistakes, one does not learn anything).
---------------------- c) Help staff to develop people-based skills
---------------------- A TQM company will help the staff to acquire people based skills and this
includes counseling. Staff can be trained to become counselors.
---------------------- Counselors help staff to overcome problems at work, (such as boss-
---------------------- subordinate-peers conflict) or at home (such as marital rift or debt). A
counsellor’s help similarly can be given to attack problems, that affect
---------------------- home as well as work such as mental illness or alcohol abuse.
Staff can be trained to be counselors. Employees trained in counselling
----------------------
skills have an edge over others. They are good at getting new ideas from
---------------------- the staff, encouraging communication, overcoming resistance to change
and building strong teams.
----------------------
Training in counseling skills consist of discussion on people problems, the
---------------------- approach to be used to help them, do’s and don’ts and role play exercises
to provide practice in using their skills.
---------------------- d) Provide better conditions and facilities
---------------------- Employees must derive satisfaction from their work place. They must be
made reasonably comfortable. The work place must be serene, free from
---------------------- excessive noise, vibrations, smoke, dust etc. Employees should be provided
necessary facilities like canteen, crèches, recreation room etc. within the
----------------------
capacity of the company. Employees should feel that the management
---------------------- cares for them.

----------------------

276 Techniques for Operations Efficiency

e) Make it a good place to work Notes
TQM can never flourish if the staff is
----------------------
 worried about losing jobs.
 afraid of being reprimanded if there are mistakes ----------------------

 scared of their bosses. ----------------------

 not permitted to express their opinions, reservations, ideas and ----------------------
criticism freely. That is why perhaps Dr. W.E. Deming said,
“Drive out fear”. ----------------------
f) Change job titles ----------------------
Change of job titles can help to break from the past, introduce newness and
raise employee’s morale. A shift engineer may be redesignated as an “area ----------------------
facilitator” and a supervisor may be renamed as a “cell facilitator”.
----------------------
g) Help staff to develop their careers
----------------------
TQM can have roots in the organisation if employees put their heart in
their jobs. This is possible only if employees feel that their personal goals ----------------------
are linked with the organisational goals. Following actions may be taken -
----------------------
 Staff should be asked about their goals and they should be assisted to
achieve them. ----------------------
 Job rotation exercises should be undertaken to give employees wider
experience. ----------------------
 Job vacancies should be communicated to the employees, and priority ----------------------
should be given to the internal candidates.
----------------------
 Employees should be encouraged to improve their qualifications.
h) Involve employee’s families ----------------------
TQM organisations also harness the goodwill and interest of the family ----------------------
members of the employees. The employees work place should at times be
a topic of conversation at home. Very good results can occur if employees ----------------------
should feel like discussing plant activities among their family members, and
their family members take interest in such discussions. ----------------------

Following actions can help to develop this bond : ----------------------

 Invite employee’s family members to visit the plant. ----------------------
 Hold family days where the work force’s spouses and children are invited.
----------------------
 Organise attractions for children.
----------------------
i) Set up a suggestions scheme
Suggestions schemes increase the employee’s involvement and produce ----------------------
very good savings. Employees should be invited to suggest improvements.
Their suggestions should be treated seriously by taking timely action. ----------------------

j) Organise quality circles or small group activities ----------------------

Quality circle is a small group of 6 - 8 people who voluntarily and ----------------------

Total Quality Management (TQM) 277

 Notes periodically meet, to solve work related problems. Quality circle is a very
good tool to achieve greater employee involvement.
---------------------- 5) Training and education
---------------------- Training is an essential ingredient for the success of TQM. Training increases
employee’s understanding of the process, reduces errors, improves productivity
---------------------- and aids the process of change.
---------------------- The first and the foremost important decision concerning training, is the decision
on the “kinds of training”. Every organisation has its own requirements of
---------------------- training. However, following may be considered as generic :
---------------------- Type of training Details
1. Corporate strategy Goals of the business, market, customers,
---------------------- customers’ needs etc.
---------------------- 2. Quality Importance, quality measures, common cause of
quality failures, quality costs.
----------------------
3. Technical skills (i) Production : Ability to work on different
---------------------- processes

---------------------- (ii) Customer : Customer care, questioning

contact staff skills, listening
---------------------- skills like telephone attending
techniques, customers handling
---------------------- skills.
---------------------- (iii) Purchase : Communication skills,
negotiation skills
---------------------- 4. Management skills Leadership and motivation, delegation,
---------------------- performance appraisals, organising effective
meetings, time management, presentation skills.
---------------------- 5. Inter-personal skills Working in groups, personality types, conflict
resolution.
----------------------
Following needs to be given attention :
----------------------  Make training relevant to the people’s jobs
----------------------  Assess training needs of each employee
 Prepare a training plan
----------------------
 Create training material / manual
----------------------  Use the right method of training (e.g. on-the-job training, off-the-job
training etc.)
----------------------
 Make training interesting
----------------------  Make a senior person, attend each training session
---------------------- 6) Quality improvement teams

---------------------- Improvement teams are the committees, consisting of people drawn

from different departments, set up by the management to undertake process
---------------------- improvement projects. Project improvement teams provide a wider mix of
skills available within the organisation.
278 Techniques for Operations Efficiency
A wide variety of projects can be handled by the team. A partial list of these Notes
project is given below :
 New product development ----------------------
 Cost reduction / Inventory reduction ----------------------
 Reducing energy consumption
----------------------
 Improving customer’s service
 Debt control / Recovery of payments ----------------------
 Implementing activity based costing ----------------------
 Set up time reduction
----------------------
 Improving delivery performance
Quality improvement teams must follow a structured approach for each ----------------------
project ----------------------
i. Establish the required outputs (i.e. what must an individual, department or
----------------------
organisation provide?)
ii. Identify the customer, internal or external of the department (i.e. who is the ----------------------
receiver of the outputs?)
----------------------
iii. Define customer needs, hidden needs or expectations (what does customer
desire?) ----------------------
iv. Select criteria to express customer’s needs into outputs (i.e. what are the ----------------------
units or measurements of outputs?)
v. Analyse the process (i.e. how the work is actually done?) ----------------------
vi. Select measurement for the outputs. ----------------------
vii. Test the capability of the process to produce the outputs as desired, redesign ----------------------
if required (i.e. is the process capable of producing output that satisfies the
customer needs? If no, either renegotiate requirements with the customer, ----------------------
or modify the process so that it produces the desired outputs).
----------------------
viii. Evaluate the results (i.e. does the revised process meet customer’s needs?
Is the customer satisfied?) ----------------------
ix. Repeat the process (i.e. further improve the process and continue
improving). ----------------------

7) Cost of quality ----------------------

The cost of quality refers to all the business costs incurred in achieving a ----------------------
quality product or service. It includes prevention costs, appraisal costs, failure
costs (internal as well as external failure costs), cost of lost opportunities and ----------------------
cost of exceeding customer requirements (Fig. 13.2)
----------------------

----------------------

----------------------

----------------------

Total Quality Management (TQM) 279

 Notes Cost of lost Prevention
opportunities costs
----------------------
Cost of Quality
---------------------- Cost of exceeding Appraisal
---------------------- customer’s costs
requirements Failure
---------------------- costs
----------------------
Internal External
----------------------
failures failures
----------------------
Fig. 13.2: Cost of Quality
----------------------
These costs, when added together, may account for a significant portion (as
---------------------- much as 20 to 30 percent) of the company’s turnover or revenue. A large potential
therefore, exists in the organisation, to reduce costs and improve profitability
---------------------- by eliminating / minimising wastes in its various forms. Main areas of wastes
in the organisation are : materials (e.g. rejection, rework, process waste), labour
----------------------
(e.g. rework, rejection), capital (e.g. inventory) and time (e.g. excess time).
---------------------- Time waste is probably the biggest waste in most of the organisations.

---------------------- In lieu of the huge potential to improve productivity and profitability,

cutting the cost of quality is one of the key issues in TQM.
----------------------
8) Do it right the first time
---------------------- Various types of defects occur in operations. A typical list in the order of
importance are:
----------------------
 Omitted processing
----------------------
 Processing errors
----------------------  Missing parts
----------------------  Wrong parts
----------------------  Missed operations
 Adjustment errors
----------------------
 Equipment not set up properly
----------------------
 Incorrectly made jigs and fixtures
----------------------
All these errors are due to human mistakes and can be prevented or at least
---------------------- minimised through
 systematic documentation and analysis of errors
----------------------
 proper training of employees
----------------------
 undertaking and implementing error proofing (Poka-Yoke) projects
----------------------

280 Techniques for Operations Efficiency

Poka-Yoke is an excellent tool that can help, eliminate defects (waste) in Notes
production and complaints from the customers.
----------------------
9) Process emphasis
“85% of the quality problems” , according to late Edward Deming, “are the ----------------------
result of process errors. Only 15% of quality problems are on account of
----------------------
individual errors”.
TQM, therefore, unlike traditional quality thinking, focuses on fixing processes ----------------------
so that problems do not reoccur. TQM improves the quality by improving the
----------------------
processes (i.e. technological improvements, minimising waste ) continuously.
Basic steps involved are : ----------------------

a) Prepare a detailed list of the company’s processes (manufacturing as well ----------------------

as clerical activities)
----------------------
b) Select the process according to pre-set priorities
----------------------
c) Map the process (using process diagram)
d) Enhance the understanding of the process (i.e. analyse the process) ----------------------
 Who owns the process? ----------------------
 Who is the customer? ----------------------
 What are the inputs and the outputs?
----------------------
 Does the process operate properly?
----------------------
 What happens when process fails?
 How is performance measured? ----------------------
 Is the process necessary to be carried out? Can it be sub-contracted to ----------------------
an outside supplier profitably and reliably?
----------------------
e) Improve the process
 Eliminate the waste associated with the process (e.g. value added ----------------------
assessment, minimising storage and transportation activities, ----------------------
optimising internally required activities)
----------------------
 Simplify process (e.g. combining similar activities, analysing decision
points) ----------------------
 Reduce cycle time (e.g. conducting activities in parallel, simultaneous,
----------------------
modifying sequence of activities, setting time deadlines)
 Standardise (e.g. creating work procedures, identifying responsibilities, ----------------------
establishing limits of authority) ----------------------
f) Follow up : improve process continuously
----------------------
 Create measurements
----------------------
 Change process based on customer’s feedback (i.e. internal and
external requirements) ----------------------

Total Quality Management (TQM) 281

 Notes  Measure performance
 Set new target for improvements
----------------------
 Use additional tools and techniques to improvise (e.g. zero defect,
---------------------- value analysis, re - engineering etc.)
---------------------- 10) Quality management systems

---------------------- Quality never happens by chance, it is always the result of an organised and
systematic effort. Quality is achieved when the basic procedures and systems
---------------------- are in place. Quality is achieved through a Quality Management System
(QMS) which involves everyone in the process and is applied throughout the
---------------------- organisation.
---------------------- The quality culture pyramid must have an appropriate quality system in
place with policies, programs and procedures well defined. ISO-9000 quality
---------------------- standards serve as a stepping stone to TQM.
----------------------
Check your Progress 1
----------------------

---------------------- True/False

---------------------- 1. TQM involves attitudinal changes

2. TQM is not a one time activity
----------------------

----------------------
13.4 APPROACHES TO TOTAL QUALITY MANAGEMENT
----------------------
Different approaches to TQM are based on teachings and writings of Dr. W.E.
---------------------- Deming, Dr. Joseph M. Juran and Philip B. Crosby. Dr. Deming whose teaching
and work revolutionised the quality and productivity of the Japanese industry
---------------------- has recommended 14 points as the basis for transformation of any industry
---------------------- (small or big, manufacturing or service organisation) willing to change towards
quality and productivity.
---------------------- These 14 points are as follows :
---------------------- 1. Create consistency of purpose towards improvement of products and services.
---------------------- The organisation must maintain the current level of quality and strive
hard to improve it further, by constant improvements of its products and
---------------------- services.
---------------------- 2. Adopt the new philosophy that acceptance of a poor product and service is
a road block to productivity. Industry should not tolerate common accepted
---------------------- levels of mistakes, defects, materials not suited for the job, people who are
inefficient and ineffective at their jobs, handling damages etc.
----------------------
3. Cease dependence on mass inspection and replace it by improved methods.
---------------------- Inspection is a poor method of assuring 100% quality. Quality cannot
come from inspection but from improvement of the production processes.
----------------------
Control charts should be used to exercise control on the process.
282 Techniques for Operations Efficiency
4. End the process of awarding business solely on the basis of price. Lowest Notes
price is not the right price since supplier quoting the lowest price is sure
to cut corners to have his margin. The right price is the price which makes ----------------------
a supplier supply goods of the right quality and at the right time. Price
without an adequate measure of quality is meaningless, and awarding ----------------------
business solely on the basis of price, is the surest formula to sacrifice ----------------------
quality.
----------------------
5. Find problems and fix them. Improvement in quality results when waste in
its various forms is reduced. To improve quality, the organisation should ----------------------
look for root causes of the problems, and prevent them from recurring.
Employees must be trained to identify and correct faults which belong to ----------------------
their areas of operation. Faults which belong to the system, must be brought
----------------------
to the notice of the management. It is the management responsibility to
work continually on the system (design, incoming materials, composition ----------------------
of materials, improvement of machines, retraining etc.).
----------------------
6. Institute modern methods of training on the job. To obtain better
performance from employees, they should be trained to do things correctly. ----------------------
A pre-requisite to actual training is to first identify the training needs.
----------------------
7. Institute modern methods of supervision.
8. Drive out fear. Employees should be encouraged to express their opinions, ----------------------
reservations, ideas and criticism without fear. ----------------------
9. Breakdown barriers between departments. Inter-departmental rivalry
causes waste, departments must work for the company, and not the ----------------------
company for the department. People in research, design, sales and products ----------------------
must work together as a team, to foresee the problems of production that
may be encountered with materials and specifications. ----------------------
10. Eliminate numerical goals, posters and slogans. Don’t ask for new levels ----------------------
of productivity without improving methods.
----------------------
11. Eliminate work standards that prescribe numerical quota. Quotas are
barriers to good quality. ----------------------
12. Remove barriers that rob employees of their pride of workmanship.
----------------------
13. Institute a vigorous programme of education and self improvement for
everybody. ----------------------
14. Create a structure in management that will push everybody to the above 13 ----------------------
points.
----------------------
Mr. Crosby, the author of two popular books on quality, “Quality is free”
and “Quality without tears” recommends the following 14 steps for quality ----------------------
improvement :
----------------------
1. Management commitment to demonstrate that the top management is
committed to the programme. ----------------------
2. Quality improvement team consisting of departmental heads with ----------------------

Total Quality Management (TQM) 283

 Notes chairperson, who have easy access to the top management.
3. Quality measurement to identify areas of improvements and corrective
----------------------
actions.
---------------------- 4. Cost of quality to determine the price of non-conformance (i.e. expenses
incurred in correcting things done wrong) and the price of conformance
----------------------
(i.e. expenses incurred to make things turn out right).
---------------------- 5. Quality awareness to build a communication channel for employees to talk
about quality.
----------------------
6. Corrective actions to identify and eliminate problems for ever.
----------------------
7. Zero defects planning to provide the thrust and longevity to the quality
---------------------- management process.
---------------------- 8. Employees education to all levels of employees to give everybody a
clear idea of what quality is and thereby make them committed to quality
---------------------- improvement.
---------------------- 9. Zero defects day is the day when management makes its commitment
known to all employees.
----------------------
10. Goal setting after the quality measurement to achieve specific results (e.g.
---------------------- 30, 60 or 90 days goals)

---------------------- 11. Error-cause removal to let employees state the problems they face, so that
quality improvement teams can analyse them and remove their causes.
---------------------- 12. Recognition to set up a system of recognising those who meet their goals
---------------------- or perform outstanding acts. Monetary system, however, is a bad form of
recognition.
---------------------- 13. Quality councils to bring quality professionals together to share their
---------------------- experiences and learn from each other.
14. Do it all over again to repeat the quality improvement programme and let
----------------------
quality improvement become the culture of the company.
----------------------
13.5 BENEFITS OF TQM
----------------------
TQM can result in the following improvements :
----------------------
 Greater customer satisfaction
----------------------
 Lower cost of manufacturing
----------------------  Lower inventory investment
----------------------  Reduction in product development time
 Shorter throughput time
----------------------
 Lesser cost of procurement
----------------------
 Lesser cost of inspection
----------------------

284 Techniques for Operations Efficiency

 Notes
Check your Progress 2
----------------------
Multiple Choice Single Response. ----------------------
1. TQM is a _______ centric process.
----------------------
i. Customer
----------------------
ii. Company
iii. Manpower ----------------------

2. TQM emphasizes ----------------------

i. Product ----------------------
ii. Process
----------------------
iii. Machine
----------------------

Activity 1 ----------------------

----------------------
1. What are the essentials of Total Quality Management?
----------------------
2. What are the components of cost of quality?
----------------------
3. List the benefits of TQM.
----------------------

Summary ----------------------

●● 
TQM is a pursuit for continuous improvement and a belief that everyone ----------------------
has a responsibility for quality. TQM means performing every activity of
----------------------
the process right the first time and at all times. Various tools and techniques
of TQM are : quality costs, task forces, quality circles and seven quality ----------------------
control tools.
----------------------
●● 
Teachings and writing of Dr. Deming, Dr Juran and B. Philip Crosby
have made a considerable contribution to the improvement of quality, and ----------------------
building up the principles of TQM.
----------------------
Keywords ----------------------
●● TQM: Total Quality Management – “TQM is a cost effective system for ----------------------
integrating the continuous quality improvement efforts, of people at all
levels in the organisation, to deliver products and services which ensures ----------------------
customer satisfaction.”
----------------------

----------------------

----------------------

Total Quality Management (TQM) 285

 Notes
Self-Assessment Questions
----------------------
1. What do you understand from the term Total Quality Management? What
---------------------- are the basic principles on which the concept is based?
2. Outline the steps to implement TQM (Total Quality Management) in an
----------------------
organisation.
---------------------- 3. What are the tools and techniques of TQM? Describe them briefly.
----------------------
Answers to Check your Progress
----------------------
Check your progress 1
----------------------
True / False
---------------------- 1. True
---------------------- 2. True
---------------------- Check your Progress 2
Multiple Choice Single Response.
----------------------
1. TQM is a _______ centric process.
----------------------
i. Customer
---------------------- 2. TQM emphasizes
---------------------- ii. Process
----------------------
Suggested Reading
----------------------
1. Deming, W. Edwards (1986), Out of the Crisis, Cambridge, Massachusetts:
---------------------- Massachusetts Institute of Technology, ISBN 9780911379013, OCLC
---------------------- 13126265, retrieved2013-12-07 (Originally published in 1982 as Quality,
Productivity, and Competitive Position, OCLC 9234321)
---------------------- 2. Feigenbaum, Armand V. (1983), Total Quality Control (3 ed.), New York:
---------------------- McGraw-Hill, Inc., ISBN 9780070203532, OCLC 8552734
3. Rehder, Robert; Ralston, Faith (Summer 1984). “Total Quality Management:
----------------------
A Revolutionary Management Philosophy”. S.A.M. Advanced Management
---------------------- Journal (Cincinnati, Ohio: The Society for Advancement of Management)
49 (3): 24-33. ISSN 0749-7075. OCLC 11220842.
----------------------
4. Ishikawa, Kaoru (1985), What Is Total Quality Control? The Japanese
---------------------- Way (1 ed.), Englewood Cliffs, New Jersey: Prentice-Hall, ISBN
9780139524332, OCLC 11467749
----------------------
5. Department of Defense (1990-02-15), Total Quality Management Guide:
---------------------- A Two Volume Guide for Defense Organizations, 1—Key Features of
the DoD Implementation, Washington, D.C.: United States Department
---------------------- of Defense, OCLC 26866911

286 Techniques for Operations Efficiency