Process Approach in Total Quality Management

PROCESS
APPROACH
A PROCESS
is a series
of actions
which are
carried out
in order to
achieve a
particular
result.

Practicing Total Quality Management
Advocated by ISO
9001:2000 Standard
Models and Approaches
Reducing costs and increasing profits

“There will be no OUTPUT
without INPUT.”
PROCESSES are simply “the way we get things done.”

INPUT PROCESS OUTPUT RESULTS
THE 3 STAGES OF PRODUCT
MANAGEMENT
(labor, capital,
equipment,
land, buildings,
materials, and
information)
(goods
and
services)
(good or
bad)
Link in the
transformation
of input into
output
If most of the products passed the requirements, then they
concluded that there was nothing wrong with the process; otherwise
they attributed the failure to a tough inspector or other unscientific

PRODUCT AND SERVICE QUALITY DEPEND ON PROCESSES
 Product orientation
– focuses in the actual product
- it is necessary but not sufficient
 Process orientation
– focuses in the production of the product
- defects are being prevented by eliminating the cause of
failure in the process
PROCESS ORIENTATION HELPS IN FINDING DEFECTS EARLY

MODEL FOR PROCESS DEFINITION
Input/s to the process
Output/s of the process
The process or task

Input of the process
The various inputs required for any process are:
 Bill of materials
 Specification or each material
 Requirements for inspection for the
incoming materials
 Procedure for receipt of materials.

Output of the process
The output of process consists of the following:
The products or service to be delivered
Documents to be delivered
The specifications for all the above
Method of measurements for verifying
conformance to the specifications
Criteria for acceptance / rejection

Value Addition in the process
 Every organization attains profit only through value addition to
its processes. Therefore, the primary goal of the organization
is value addition. It, in turn, applies to every process in the
organization.
 The process may need machinery, infrastructure or
techniques for achieving the desired value addition as per the
goals and objectives of the process.
 The process owners and the other employees attached to the
process for carrying out the assigned tasks should be clearly
identified and documented, along with their authority and
responsibility.

ETX MODEL
 The most popular process model is ETX as shown in figure.
ENTRY EXITTASK
ETX MODEL
INPUT OUTPUT
ETX stands for Entry, Task and Exit. The value adding process is called Task.
The new items in the diagram are Entry and Exit
Entry – Conditions to be satisfied before the task is undertaken.
Exit - Conditions to be fulfilled before the task is
considered as completed.

Training for Process Orientation
 The most important requirement for transforming the
employee from product orientation to process
orientation is training and coaching.
 It should also be helped to identify their customers and
suppliers and coached as how to conduct themselves in
the roles of customers as well as suppliers.

Measure Process
 Before giving a go ahead for normal production, the process
parameters should be studied, statistical analysis made and
only then the process should be authorized for normal
deployment.
 This should repeated at regular intervals
Improve Process Continuously
 In line with the TQM philosophy, the processes should be
improved continuously. Efforts should be put in for
continuous process improvement.

Process
Improvement
Subburaj’s 6s for Process Improvement
 Since 1991, the author has been heading ETDC,Chennai w/c is testing and calibration
service provider, offering services to more than 700 organization in a year.
STUDY
STEAMLINE
SIMPLIFY
STANDARDIZE
SYNERGIZE
STENGTHEN

STUDY
 The current performance level of the process trigger
improvement.
 It could be the defect found (both internal and external)
cycle time achieved customer's feedback/complaint,
employee feedback, customer waiting time, hassles of
the employees or customers.

STREAMLINE
 The process should offer the least resistance to motion in the
organization.
 Process adding cost but not value should be eliminated.
SIMPLIFY
 One has to formulate a simplified procedure for carrying out
the task without increasing the cost and compromising on
quality.

STANDARDIZE
 Permits performing the process in the same way
by every employee at all times.
SYNERGIZE
No process is a stand alone activity in any organization.
A process may interact with at least two other process-
customer and supplier work.

STRENGTHEN
 Educating and convincing the process owners
customer and supplies.
 Periodic counselling and assuring that the new
process will perform better than the old process.
 Monitoring the results and confirming that the
process transaction is occurred.

CUSTOMER-
SUPPLIER
CHAIN
 SHOULD BE ESTABLISHED FOR BUILDING QUALITY INTO
THE PRODUCTS AND SERVICES.

“INCREASED INSPECTION ADDS COST, NOT VALUE”
Incoming stage
Inspection
Delivery Stage

IDENTIFY INTERNAL CUSTOMER AND SUPPLIERS
Internal Customer
- person who buys the product or service that works
within the company.
Internal Supplier
- provider of product or service.

BUILDING QUALITY INTO THE PROCESS
Aim for Quality
Quality Control
Quality is ensured at all stages

DIVIDE AND CONQUER APPROACH
 suitable for solving quality problem
or for that matter any scientific
problems.

CUSTOMER-SUPPLIER CHAIN
 it is nothing but dividing the entire
process of manufacturing or providing
services.

SUB-PROCESSES
External Internal Internal External
Supplier Supplier Customer Customer
 Each sub-process has an owner who should be
responsible.
Each sub-process has specification.

EDUCATED
 Employee should be educated about the customer-
supplier chain.
 Employee should be educated to treat the internal
customers and suppliers as the organization would
like to treat the external customers and suppliers.
 Employee should be coached and motivated to
practice customer-supplier chain

CUSTOMER ORIENTATION INCLUDES INTERNAL
CUSTOMER
 Process owner who are customer should not only inspect, but also
spend time in educating the internal supplier for improving the
quality of the incoming product.
 It is responsibility of the process owner to educate the internal
customer also so that there is no communication problem.
 This also increase the responsibility of the process owner as well as
the supplier and customer to enable practicing quality in all activities
of the organization as well as building a product or services.

ADVANTAGE OF CUSTOMER-SUPPLIER CHAIN
 It improves communication within the organization.
 It reduces communication gap.
 It helps in documenting the process flow.
 It helps in defining the specification not only for the overall
input and output but also for the entire process.
 It helps finalizing verification methodology throughout the
process with clear accept/reject criteria.

ADVANTAGE OF CUSTOMER-SUPPLIER CHAIN
 It facilitates immediate feedback from collegeaus rather than time lapsed
feedback from customer through the channel hierarchy
 The management can easily identify problem areas clearly, easily and deal with
them specifically, instead of going for global solution across the organization.
 It helps in building quality throughout the organization.
 It enables the management to have absolute control quality with optimal
expenditure.
 Above all, it helps the management to understand its own organization and
operation better, leading to effective planning, management and improvement.

SUPPLY CHAIN
 series of links and shared processes that exists
between supplier and customers.
 It encompasses all products or services to the
ultimate customers.
 It may consist of division in an organization
and more than one organization.

SUPPLY CHAIN
Demand of information
Supplier Customer
Flow of product

SUPPLY CHAIN MANAGEMENT
 is a task of optimizing all activities throughout the
supply chain so that the products and services are
supplied in the right quantity, right quality, to the right
customer, at the right time and at the optimal cost.

SUPPLY CHAIN MANAGEMENT INVOLVES THE FF:
 Demand Planning
 Manufacturing Panning and Scheduling
 Supply Planning
 Transport Planning

DEMAND PLANNING
 a planning process to predict the
demand of products and services
based on forecast.

MANUFACTURING PLANNING AND SCHEDULING
 a planning process optimally schedules
manufacturing orders with production capacity.
This is performed by combining Material
Requirements Planning(MRP) and Capacity
Requirement Planning(CRP) to create optimized
and constrained production plans.

SUPPLY PLANNING
 a planning process that meets customer
demand based on available inventory and
transportation resources. This includes
Distribution Requirements Planning(DRP), which
determines the need to replenish inventory at
branch warehouses.

TRANSPORT PLANNING
 a planning process to optimally schedule,
load and deliver shipments to customer
while considering constraints such as
delivery date, mode of transportation,
carrier, etc.

SOFTWARE SYSTEMS
 Enterprise Resource Planning(ERP)
- focused on execution.
 Supply Chain Management
- focused on planning.

PERFORMANCE OF SUPPLY CHAIN MANAGEMENT
 Efficiently integrate suppliers,
manufacturers, warehouse and retailers,
so that the products are produced and
distributed efficiently at optimal costs.

BENEFITS OF SCM
Improved customer service
Reduction of cost across the supply chain and more efficient
management of working capital.
More efficient management of raw materials, WIP and finished
good inventory.
Increased efficiency in the transaction between supply chain
partners.
Better manufacturing resource management.

BENEFITS OF SCM
Optimized manufacturing schedules.
Optimal distribution of existing inventory
across the supply chain.
Enhanced customer value, often in the
form of lower prices.

– products should be made to order, just in time for
immediate delivery to the customers.
JUST-IN-TIME MANUFACTURING
- Is defined as “a philosophy that focused attention on the
eliminating waste by purchasing or manufacturing
just enough of the right items Just-In- Time”
- JIT means that the materials arrive just
in time, they are assembled and
delivered just in time
- Also known as
Zero Inventories
program.

OBJECTIVES OF JUST-IN-TIME
• Development of optimal process and be competitive
• Streamlining of operation and eliminating
unwanted processes
• Continuous Improvement
• Reducing the levels of wasted
materials, time and effort
• Increasing efficiency of
production process

Just-In-Time can be practiced by defining and
implementing several concepts such as:
• Manufacturing Resources Planning (MRP II), etc.
• Material Requirement Planning (MRP)
• Multi-function work-force
• Optimizing plant layout
• Eliminating wastages
• Reduced set up time
• Involvement of people
• Plant optimization
• Kanban
• Kaizen
• Team Work

BENEFITS OF JUST-IN-TIME
• Reduction of wastes
• Reduction of Work-In-Progress (WIP)
• Establishing proper customer-supplier relationship
• Reduction in lead-time
• Less-inventory of raw materials
• Improvement in flexibility
• Lower cost and high productivity
• Enhanced customer satisfaction due
to lower price owing to elimination
of wastes

BENEFITS OF JUST-IN-TIME
• Improved employee morale owing to a perfect
system without waiting
• Improved satisfaction of shareholders due to high profit
• Reduced space requirements on
account of total elimination of WIP
and buffer stock of materials, sub-
assemblies and products
• Improved productivity
and improved quality

NOT FOLLOWING JIT
INCREASES COST
• Stocking inventories for years means a lot of money is
blocked and a high rate of interest has to be paid.
• If materials received is an year old,
precautions have to be taken for storing,
handling, and security.
- The organization has to sell
the stocked products
at a loss.

WHY PRACTICE JIT?
• More prosperity
• More profits

REQUIREMENTS OF JIT
• Practicing TQM
• Documented system
• Trustworthy suppliers who also practice TQM
• Efficient customer handling processes to know the demand just in time
• People are educated, trained and coached
continuously
• Competitive people at all positions
in the company
• Machinery, which are
maintained periodically and
updated continuously
• Proper operating environment of support and infrastructure

REQUIREMENTS OF JIT
• Proper layout of machinery and manufacturing
• Housekeeping, which reduces the confusion
• Identification of an item should be as fast as possible
• Employee should be sure about the quality of the material,
and the process
• They should be able to know, when the machinery
has to be taken out of service for maintenance
• They should be thorough with routine
and preventive maintenance
schedules of the machinery
• They should be thorough with the process

REQUIREMENTS OF JIT
• Reordering of materials should be automatic when the inventory level
goes down. The software should be built to automatically order parts,
when the total quantity of products to be delivered is determined.
• They should be familiar with process parameters and how to inspect
the materials, sub-assembles and in-process
measurements.
• The employee should know the quality
requirements of the product or
service.
• Support of good Information
Technology infrastructure
• The company needs to automate the delivery process.

Above all, it requires the
DETERMINATION
of the top management
to practice JIT,
in the interest
of the organization.
“Failure will never overtake you if you if your
determination to succeed is strong enough.
Determination is power”

LEAN
MANUFACTURING
 A WHOLE SYSTEMS APPROACH THAT CREATES A CULTURE
IN WHICH EVERYONE IN THE ORGANIZATION
CONTINUOUSLY IMPROVES PROCESSES AND PRODUCTION.

MAJOR TENETS OF LEAN MANUFACTURING
Quick Changeover/Setup Reduction
Value Stream Analysis
Pull/Kanban System
Total Productive
Maintenance(TPM)
Workplace Organization 5S System
Cellular Manufacturing

SUPPORTING STRATEGIES AND CONCEPTS
One Piece Flow
Quality at the source
Standardized
Visual Control TAKT Time
Employee Involvement
Continuous Improvement
Team Building Balanced Flow
Stabilized Operation
Equipment Replacement

TENETS AND CONCEPTS OF LEAN MANUFACTURING
Kanban Systems
 Cellular Manufacturing
 One Piece Flow

KANBAN SYSTEMS
 The Kanban System was developed by Mr. Taiichi Ohno, Vice
President of Toyota, to achieve objectives that included:
 Reducing costs by eliminating waste/scrap
 Try to create work sites that can respond to changes quickly
 Facilitate the methods of achieving and assuring quality control
 Design work sites according to human dignity, mutual trust and
support and allowing workers reach their maximum potential.

TWO MOST COMMON TYPES OF KANBANS USED:
 Withdrawal Kanban
- Is to pass the authorization for the movement of parts from
one stage to another.
 Production Kanban
- The main function of the production Kanban is to release
an order to the preceding stage to build the lot size
indicated on the card.

KANBAN PROCESS FEATURES
 Parts travel from one process to the next process
 Parts are received from the preceding process as per details in
kanban such as the type and time when required
 Kanban must always be attached to the parts
 The parts should be produced according to the information on
Kanban
 The quantity produced should match the requirement of the
subsequent process

 No extra pieces are produced
 If no Kanban is attached to a product, no manufacturing should
be made
 In case if defective items are produced, they should not be
transferred to the subsequent process.
 It should be ensure that the parts are placed in the container
should be defect free
 The kanban can be used to respond to changes in demand by
increasing or decreasing the number of units to be produced.
KANBAN PROCESS FEATURES

ADVANTAGES OF KANBAN PROCESS
 Simple and understandable process
 Provides quick and precise information
 Low costs associated with the transfer of information
 Provides quick response to changes
 Avoids overproduction
 Minimizes waste
 Control can be maintained
 Delegates responsibility to line workers

CELLULAR MANUFACTURING
 A cell is configured normally for speed and material handling
and can reap substantial benefits in cost saving, time
compression and inventory reduction.
 Cellular manufacturing and work cells are at the heart of lean
manufacturing. There benefits are many and varied. They
increase productivity and quality.
 Cells simplify material flow, management and accounting
systems.

THE GOAL OF CELLULAR MANUFACTURING
 is to move as quickly as possible, make a wide variety of similar
products, while making as little waste as possible.
WORK CELL
 is a work unit larger than an individual machine or workstation
but smaller than the usual departments or assembly lines
 employs 3-12 people and 5-15 workstations in a compact
arrangement.

WHAT IS FUNCTIONAL LAYOUT AND CELLULAR LAYOUT?
 Functional Layout of Plants - the assembly
moves from one place to another and back
and so on.
 Cellular Layout - the movement of assembly
is minimized and even if it moves it moves
with in short time.

IMPROVEMENT IN EFFICIENCY CELL BUILD VS. BATCH BUILD
Resources Batch Build Cell Build Improvement
Direct Labour 11 hours 10 hours 9%
Floor space 12,000 sq. ft. 3000 sq. ft. 42%
Lead time 12 weeks 2 weeks 83%
Inventory $ 564,000 $ 279,000 51%
Scrap and
network
$ 23,040 $ 12,030 48%

SINGLE PIECE FLOW
 cellular manufacturing demands single piece flow
methodology
 also called one-piece flow or continuous flow
manufacturing.
 it is a technique used to manufacture
components in a cellular environment.
 the goals of single piece flow is to make one part
at a time correctly all the time without
lengthily queue.

FLOW MANUFACTURING VS. BATCH PRODUCTION
The opposite of one-piece flow is large-lot
production. Although, many companies produce
goods in large lots or batches, it builds delays
into the process. No items can move on to the
next process, until all the items in the lot have
been processed.

SINGLE PIECE FLOW DIAGRAM
O O O O O O O O O O O
••••••••••••
O O O O O O O O O O O O10 minutes
10 minutes
10 minutes
Lead Time: 30 + minutes for total order
21 + minutes for first pieces
A. Batch and Queue Processing

SINGLE PIECE FLOW DIAGRAM
12 min, for total order
3 min, for first part
B. Continuous Flow Processing
O O O O O O O O O O O
O O O O O O O O O O O O
••••••••••••

Z
E
R
O
D
E
F
E
C
T
S
“Performance
Standard
should be zero
defects and
not Acceptable
Quality Level
(AQL)”

Is it Possible to achieve ZERO DEFECT?
• Determination Required
The most important requirement is the will power of all the
employees in the organization is to achieve zero defects
• Right Mindset Required
Training and coaching will not suffice, if the employees do not have
or willing to develop the right mind-set for quality
• Do not accept work from Others which is not
up to the Standard

• Do not pass on the work to others saying that will be good enough
When the employee's role is that of a supplier
• Do not pull off till later
Putting of a job till later makes someone else wait for longer than
they should have.
• Do not put the blame on others

• Perfect System Required
A system which is self-contradictory
• Cultural Change Required
The basic attitude of the organization should change from
accepting defects
• Never Ending Enthusiasm Required
The employees have to be enthusiastic to put
in additional work by motivating the employees

• Training Required
This includes mentoring by competent persons so that
the employees get the right inputs
• Management Commitment Required
This includes sparing adequate time for the effort of
guiding the employees in achieving zero defects.

PROCESS
APPROACH
Prepared
by:
HENSON,
Jess
BSA – 1C

Process Approach in Total Quality Management

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