Production

Management

Unit 5
 Syllabus
• Productivity and Quality
• TQM,
• Deming’s 14principles,
• PDCA cycle
• KAIZEN
• Quality circles
• 7QC tools,
• ISO 9000-2000 clauses,
• Six Sigma
• Total Productive Maintenance(TPM)
 Total Quality Management

• The way of managing organization to achieve excellence

• Total – everything
• Quality – degree of excellence
• Management – art, act or way of organizing, controlling,
planning, directing to achieve certain goals.
• “A management philosophy embracing
all activities through which the needs
and expectations of the CUSTOMER
and COMMUNITY, and the objectives of
the organization are satisfied in the most
efficient and cost effective manner by
maximising the potential of ALL
employees in a continuing drive for
improvement.
Total Quality Management TQM, also known as total
productive maintenance, describes a management
approach to long-term success through customer
satisfaction. In a TQM effort, all members of an
organization participate in improving processes, products,
services, and the culture in which they work.
 Total Quality Management Principles: The 8 Primary Elements of TQM

• 1. Customer-focused: The customer ultimately determines the

level of quality. No matter what an organization does to foster quality
improvement—training employees, integrating quality into the
design process, upgrading computers or software, or buying new
measuring tools—the customer determines whether the efforts were
worthwhile.
• 2. Total employee involvement: All employees participate in
working toward common goals. Total employee commitment can
only be obtained after fear has been driven from the workplace,
when empowerment has occurred, and management has provided
the proper environment. High-performance work systems integrate
continuous improvement efforts with normal business operations.
Self-managed work teams are one form of empowerment.
• 3. Process-centered: A fundamental part of TQM is a focus on
process thinking. A process is a series of steps that take inputs from
suppliers (internal or external) and transforms them into outputs that
are delivered to customers (again, either internal or external). The
steps required to carry out the process are defined, and
performance measures are continuously monitored in order to
detect unexpected variation.
• 4. Integrated system: Although an organization may consist of
many different functional specialties often organized into vertically
structured departments, it is the horizontal processes
interconnecting these functions that are the focus of TQM.
• 5. Strategic and systematic approach: A critical part of the
management of quality is the strategic and systematic approach to
achieving an organization’s vision, mission, and goals. This process,
called strategic planning or strategic management, includes the
formulation of a strategic plan that integrates quality as a core
component.
• 6. Continual improvement: A major thrust of TQM is continual
process improvement. Continual improvement drives an
organization to be both analytical and creative in finding ways to
become more competitive and more effective at meeting
stakeholder expectations.
• 7. Fact-based decision making: In order to know how well
an organization is performing, data on performance
measures are necessary. TQM requires that an organization
continually collect and analyze data in order to improve
decision making accuracy, achieve consensus, and allow
prediction based on past history.
• 8. Communications: During times of organizational
change, as well as part of day-to-day operation, effective
communications plays a large part in maintaining morale
and in motivating employees at all levels. Communications
involve strategies, method, and timeliness.
 Dr. Deming's 14 Points for Management

•1. Create constancy of purpose toward improvement of

product and service, with the aim to become competitive and
to stay in business, and to provide jobs.

•2. Adopt the new philosophy. We are in a new economic

age. Western management must awaken to the challenge,
must learn their responsibilities, and take on leadership for
change.

•3. Cease dependence on inspection to achieve quality.

Eliminate the need for inspection on a mass basis by
building quality into the product in the first place.
• 4. End the practice of awarding business on the basis of price tag. Instead, 
minimize total cost. Move toward a single supplier for any one item, on a long-
term relationship of loyalty and trust.
• 5. Improve constantly and forever the system of production and service, to
improve quality and productivity, and thus constantly decrease costs.
• 6. Institute training on the job.
• 7. Institute leadership 
• 8. Drive out fear, so that everyone may work effectively for the company
• 9. Break down barriers between departments. People in research, design,
sales, and production must work as a team, to foresee problems of production
and in use that may be encountered with the product or service.
• 10. Eliminate slogans, exhortations, and targets for the work force asking for zero
defects and new levels of productivity. Eliminate work standards (quotas) on the factory
floor. Substitute leadership. Eliminate management by objective. Eliminate management
by numbers, numerical goals. Substitute leadership.
• 11. Remove barriers that rob the hourly worker of his right to pride of workmanship.
The responsibility of supervisors must be changed from sheer numbers to quality.
• 12. Remove barriers that rob people in management and in engineering of their
right to pride of workmanship. This means, inter alia, abolishment of the annual or merit
rating and of management by objective.
• 13. Institute a vigorous program of education and self-improvement.
• 14. Put everybody in the company to work to accomplish the transformation. The
transformation is everybody's job.
 PDCA Cycle

• PDCA (plan–do–check–act or plan–do–check–adjust) is an 
iterative four-step management method used in business for the
control and continual improvement of processes and products. It is
also known as the Deming circle/cycle/wheel, Shewhart
 cycle, control circle/cycle, or plan–do–study–act (PDSA). Another
version of this PDCA cycle is OPDCA. The added "O" stands for
observation or as some versions say "Grasp the current condition."
This emphasis on observation and current condition has currency
with Lean manufacturing/Toyota Production System literature
Quality circle or Quality control circle

A quality circle or quality control circle is a group of workers who do the

same or similar work, who meet regularly to identify, analyze and solve work-
related problems.[1]Normally small in size, the group is usually led by a
supervisor or manager and presents its solutions to management; where
possible, workers implement the solutions themselves in order to improve the
performance of the organization and motivate employees. Quality circles were at
their most popular during the 1980s, but continue to exist in the form of Kaizen
 groups and similar worker participation schemes.
 Unit5
Production
 7 BASIC QC
• Cause-and-effect diagram (also called
Ishikawa or fishbone chart): Identifies many
possible causes for an effect or problem and
sorts ideas into useful categories.
• Check sheet: A structured, prepared form for
collecting and analyzing data; a generic tool
that can be adapted for a wide variety of
purposes.
• Control charts: Graphs used to study how a
process changes over time.
• Histogram: The most commonly used graph for
showing frequency distributions, or how often
each different value in a set of data occurs.
• Pareto chart: Shows on a bar graph which factors
are more significant.
• Scatter diagram: Graphs pairs of numerical data,
one variable on each axis, to look for a
relationship.
• Stratification: A technique that separates data
gathered from a variety of sources so that patterns
can be seen (some lists replace “stratification” with
“flowchart” or “run chart”).
 New Seven QC Tools
• "New seven QC tools" is also called "N7“
 
1. Affinity Diagram :
Grouping of the idea of Brainstorming
2. Relation Diagram : Diagram of Why-why analysis. It
is good to use if cause-and-effect contains circulation
structure
3. Tree Diagram : Collection of plans and methods
systematically.
4. Matrix Diagram :
A matrix to express the strongness of relationship betw
een two things. Basic of QFD (Quality Function Deploy
ment)
5. Arrow Diagram : Same to PERT
6. Process Decision Program Chart (PDPC) : Same to
"Flow chart"
7. Matrix Data Analysis :
Same to Principal Component Analysis
What is ISO 9000?
• The ISO 9000 series of documents was created
by the International Organization for
Standardization (ISO) to set international
requirements for quality management systems.
• Now adopted by over 91 countries, use of the
series of standards has become commonplace in
the business world.
• The ISO 9000 standards are a set of international
quality management system standards and
guidelines. The term ISO 9000 refers to a group
of quality management standards.
• ISO 9000 currently includes three quality
standards: ISO 9000:2000, ISO 9001:2008, and
ISO 9004:2000. ISO 9001:2008 presents
requirements, while ISO 9000:2000 and ISO
9004:2000 present Quality guidelines. All of these
are process standards (not product standards).
• ISO 9000 was published in 1987, then
revised in 1994 and 2000. "ISO 9000:2000 is
used to describe the whole family of
standards beginning with 900x.
• It is important to have standard operating
procedures in the global market. With millions
of ISO 9000 users worldwide, it is imperative
that the introduction of these standards be as
seamless as possible. In pursuit of these
goals, ISO/TC 176/SC 2, which handled the
revision of the ISO 9001 and ISO 9004
standards, has developed an introduction
plan to facilitate the successful launch of the
new standards.
 What is the ISO 9000 Series?
• The ISO 9000:2000 series consist of only one
Specification Standard ISO 9001:2008 - compared
to the older series ISO 9000:1994 which was
comprised of three specification standards - ISO
9001, ISO 9002, ISO 9003 and its relevant
guidelines. The ISO 9001:1994 Series was
designed to remain in effect until December 15,
2003 when the first surveillance audits for ISO
9001:2008 would be completed.

• The series itself is generic and is designed to be

applicable to any manufacturing or service
process. The series is revised and controlled by
Technical Committee (TC) 176, made up of
international members from many industries and
 Essential Changes to the ISO
9000 Series:
• ISO 9000: Quality management systems -
Fundamentals and vocabulary
• ISO 9001: Quality management systems -
Requirements
• ISO 9004: Quality management systems -
Guidance for performance improvement
• ISO 19011: Guidelines on quality and/or
environmental management systems
auditing (To be published)
 Total productive
maintenance (TPM)
• TPM (Total Productive Maintenance) is a
holistic approach to equipment maintenance
that strives to achieve perfect production:
• No Breakdowns
• No Small Stops or Slow Running
• No Defects
• In addition it values a safe working
environment:
• No Accidents
TRADITIONAL TPM
 The 5S Foundation
• The goal of 5S is to create a work
environment that is clean and well-
organized. It consists of five elements:
• Sort (eliminate anything that is not truly
needed in the work area)
• Set in Order (organize the remaining
items)
• Shine (clean and inspect the work area)
• Standardize (create standards for
performing the above three activities)
• Sustain (ensure the standards are
regularly applied)
The Eight Pillars
Differences between TQM and
TPM is summarized below.