TQM 2.3 Process Approach PDF

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2.3 PROCESS APPROACH

Training for Process Orientation

Product and Service Quality Depend on Process

The most important requirement for transforming the employees from product orientation to process orientation is training and coaching.

Traditionally, manufacturing and service organizations were measuring, confirming and analyzing quality with reference to the final product alone. PRODUCT ORIENTATION versus PROCESS ORIENTATION PRODUCT ORIENTATION - the defects are found only at the final stage. PROCESS ORIENTATION - the defects are to be found early. The defects could be prevented totally by eliminating the cause of failure in the process. MODEL FOR PROCESS DEFINITION

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. Improve Process Continuously In line with the TQM philosophy, the process should be improved continuously. Effort should be put in for continuous process improvement. This will help manufacturing or service organization achieve much higher yields. SUBBURAJ’s 6S MODEL FOR PROCESS IMPROVEMENT

The process mode is quite simple. It contains three (3) clearly distinguishable elements. 1. 2. 3.

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:

STUDY

Output of the Process

The current performance level of the process triggers improvement. It could be the defects found (both internal and external), cycle time achieved, customer’s feedback/complaint, employee’s feedback, customer waiting time, hassles of the employees or customers, etc. Therefore, it is important to study the process and document the details as necessary.

The output of process consists of the following:

STREAMLINE

1. 2. 3. 4.

Bill of materials (BOM) Specification for each material Requirements for inspection for the incoming materials Procedure for receipt of materials

(a.) (b.) (c.) (d.)

The product or service to be delivered Documents to be delivered The specification for all of the above Method of measurement for verifying conformance to the specifications (e.) Criteria for acceptance/rejection

Streamlining means that the process should offer the least resistance to motion in the organization. Quite often, some processes cause delay or hassles leading to problems either to the customers or the employees. Therefore, it is important to first document the current sequence of events and then eliminate unnecessary or non-value adding processes.

Value Addition in the Process

SIMPLIFY

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. Each process should help in the value addition at the lowest cost, without any defects or hassles.

Once the essential processes are identified, they are to be simplified. One should always ask question whether the current procedure is efficient? Are there no better method? There has to be a constant quest for simplifying the process. Therefore, one has to formulate a simplified procedure for carrying out the task without increasing the cost and compromising the quality.

ETX MODEL

STANDARDIZE Standardization essentially permits performing the process in the same way by every employee at all time. Therefore, it requires a documented procedure. During this phase, the documented procedures of the new approach have to be formulated and issued formally under the umbrella of the quality system. SYNERGIZE NO PROCESS IS A STAND ALONE in any organization. A process may interact with at least two other processes – customer and

supplier processes. During this phase, perfect synergy is worked out between this process and other processes interacting with it. STRENTHENING During this phase, a number of activities are carried out:   

Educating and convincing the process owners and their customers and suppliers Periodic counseling and assuring that the new process will perform better that the old process Monitoring the results and confirming that the process transitions has occurred, the employees are confident and that the process is practiced as documented.

SUPPLY CHAIN MANAGEMENT Supply Chain - A series of links and shared processes that exists between the suppliers and customers. - It compasses all activities and processes to supply a product or service to the ultimate customer.

Take note that… EACH OF THE PHASE IS TO BE IMPLEMENTED IN A SEQUENCE.

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Supply Chain Management (SCM)

The Quality has to be built into the products or services through building Quality into the processes

-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.

CUSTOMER-SUPPLIER CHAIN

SCM involves the following activities:

– dividing the entire process of manufacturing or providing services, starting from external supplier and ending at the external customer into a number of clearly defined sub processes in the organization. Each sub-process has an owner, who is actually responsible for giving an output to internal customers after receiving the right inputs from internal suppliers and adding value. Owner  As a customer: Verify conformance of inputs to specifications Ex. Visual Inspection or Counting Accept inputs from internal or external suppliers  As a supplier: Prove to the internal customer that his output meets its stated specifications Advantage of Customer-Supplier Chains          

It improves communications within the organization. It reduces communication gap. It helps in documenting the process flow. t helps in defining the specifications not only for the overall input and output, but also for the entire process. It helps in finalizing verification methodology throughout the process with clear accept/reject criteria. It facilitates immediate feedback from colleagues rather than time lapsed feedback from customers through the channel of 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 over quality with optimal expenditure It helps the management to understand its own organization and operations better, leading to effective planning, management and improvement

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Demand Planning Manufacturing Planning and Scheduling Supply Planning Transportation Planning

ERP Enterprise Resource Planning -

Execute plans performed by SCM Controls the flow and execution of transactional information across the supply chain ERP Solutions: SAP, PeopleSoft, Baan, etc.

Benefits of SCM        

More efficient management of raw materials, WIP, and finished good inventory. Increased efficiency in the transactions between supply chain partners. Better manufacturing resource management. Improved Customer Service: having the right products, available for delivery when requested, at a good price. Reduction of costs across the supply chain and more efficient management of working capital. Optimized manufacturing schedules. Optimal distribution of existing inventory across the supply chain. Enhanced customer value, often in the form of lower prices.

JUST-IN-TIME MANUFACTURING -A philosophy that focused attention on eliminating waste by purchasing or manufacturing just enough of the right items JUST-IN-TIME. JIT Principles 

Production and supply of required number of parts when needed.

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JI DOKA (Self-Actualization)-utilizing the full capacity of the workforce.

JIT Objectives ✘ ✘ ✘ ✘ ✘

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Development of optimal process and be competitive Reducing the levels of wasted materials, time and effort Increasing efficiency of production process. Continuous Improvement Streamlining of operations and eliminating unwanted processes

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 JIT can be practiced by defining and implementing several concepts such as: ✘ ✘ ✘ ✘ ✘ ✘ ✘ ✘ ✘ ✘ ✘

Kaizen Teamwork Multi-function work force Optimizing plant layout Eliminating wastages Reduced set up time Kanban MRP MRP II Involvement of people Plant optimization

JIT Benefits            

Reduction of wastes Reduction of WIP Reduction in lead time Reduced space requirements on account of total elimination of WIP and buffer stock of materials, sub-assemblies and products Less inventory of raw materials Lower cost and high productivity Establishing proper customer-supplier relationships Enhanced customer satisfaction due to lower price owing to elimination of waste Improvement in flexibility Improved employee morale owing to a perfect system without waiting Improved satisfaction of shareholders due to high profit Improved productivity and improved quality

Requirements of JIT         

Practicing TQM Documented system Trustworthy supplier who also practice TQM Efficient customer handling processes to know the demand just in time People are educated, trained and coached continuously Proper operating environment for machinery and people Excellent system of support and infrastructure Proper layout of machinery and manufacturing Housekeeping, which reduces the confusion

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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 They should be familiar with process parameters and how to inspect the materials, sub-assemblies and in-process measurements The employee should know the quality requirements of the products or service Support of good Information Technology infrastructure 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. The company needs to automate the delivery process

LEAN MANUFACTURING Major Tenets of Lean Manufacturing      

Quick Changeover/Setup Reduction Value Stream Analysis Pull/Kanban Systems Total Productive Maintenance (TPM) Workplace Organization 5S System Cellular Manufacturing

Supporting Strategies and Concepts         

One Piece Flow Quality at the Source Standardized Visual Controls TAKT Time Employee Involvement Continuous Improvement Team Building Balanced Flow Stabilized Operations Equipment Replacemet

Kanban System -

Developed by Taiichi Ohno, Vice President of Toyota A way of managing material flow on the assembly line Recognized as a ‘highly-efficient and factory production system’ Developed into an optimum-manufacturing environmental leading to global competitiveness Is a system of inventory and production control (pull inventory system) which uses Kanban as the principal information transmission device.

Objectives of Kanban System 1. 2. 3. 4.

Reducing wastes by eliminating waste/scrap Try to create work sites that can respond to change quickly Facilitate the methods of achieving and assuring quality control Design work sites according to human dignity, mutual trust and support and allowing workers to reach maximum potential

Kanban stands for Kan-card 

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Parts movement system that depends on cards and boxes/containers to take parts from one workstation to another on production line. Essence of this concept is that a supplier of the warehouse should only deliver components to the production line as and when they are needed so that there is no storage in the production area. Is a card containing all the information required for jobs to be carried out on a product at each stage along its path at each stage along its path to completion and which parts are needed at subsequent processes. Usually attached to WIP parts and is used to facilitate the proper movement of these parts. Used to control WIP, production and inventory flow. Kanban System allows a company to use JIT, production and ordering systems which allow them to minimize their inventories while still satisfying customer demands.

Two most common types of Kanban 1. 2.

Withdrawal Kanban Production Kanban

Withdrawal Kanban – Its main function is to pass the authorization for the movement of parts from one stage to another.   

It gets the parts from the preceding process and moves them to the next process, remaining with the parts until the last part has been consumed by the next process. Then it will now travel back to the preceding process to get parts, thus creating a cycle. Can be designed in many ways in order to display this information

Withdrawal Kanban carries the following information 1. 2. 3. 4. 5.

Part number Part name Lot size Routing process Name of the next process

6. 7. 8. 9. 10. 11.

Location of the next process Name of the preceding process Location of the preceding process Container type Container capacity Number of containers released

Production Kanban – its function is to release an order to the preceding stage to build the lot size indicated on the card. -

outlines to what extent and when work has to be accomplished by a specific station on the production line.

Production Kanban should have the following information 1. 2. 3.

Materials required as inputs at the preceding stage Parts required as inputs at the preceding stage Information pertaining to withdrawal Kanban

Kanban Process – it is a process which involves more than fine tuning production and supplier scheduling systems, where inventories are minimized by supplying these when needed in production and WIP is closely monitored. Two Kanban Processes 1. 2.

Simple Kanban Process – Components are ordered and produced according to daily schedule Integrated Kanban Process – often used between the corporation and its suppliers.

Kanban Process rules to follow 1. 2.

Parts travel from one process to the next process Parts are received from the preceding process as per details in the Kanban such as the type and time when required. 3. Kanban must always be attached to the parts. 4. The parts should be produced according to the information Kanban. 5. The quantity produced should match the requirement of the subsequent process. 6. No extra pieces are produced. 7. If no Kanban is attached to a product, no manufacturing should be made. 8. In case if defective items are produced, they should not be transferred to the subsequent process, this will assist in the elimination of defective parts on the line. This way, the defective parts are stopped as and when it is found. 9. It should be ensured that the parts are placed in the container should be defect free. The number of Kanban used in the production floor should be minimized to prevent build-up of inventory. 10. The Kanban can be used to respond the changes in demand by increasing or decreasing the number of units to be produced. Advantages of Kanban Process      

Simple and understandable process. Provides quick and precise information Los costs associated with the transfer of information Provides quick response to changes Avoids over production Minimizes waste

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Control can be maintained Delegates responsibility to line workers

CELLULAR MANUFACTURING -

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Heart of Lean manufacturing It is a group of workstations, machines or equipment arranged such that a product or sub-assembly can be processed progressively from one workstation to another without having to wait for a batch to be completed or requiring additional handling between operations. Elimination of waste by linking each step in the manufacturing process to the following step.

3.

ZERO DEFECTS “The performance standard must be zero defects, not that’s close enough.” – Philip Crosby’s third absolute of quality management Acceptable Quality Level (AQL) – is a popular term amongst inspectors of manufactured products or materials. -

Benefits of Cellular Manufacturing 1. 2.

Increases productivity and quality Simplify material flow, management and accounting systems

Work cell – is a work unit larger than an individual machine or workstation but smaller than the usual departments or assembly lines. -

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Cellular configuration can be in the form of straight line or U-shape but equipment contained within the cell, or workstations are normally configured in close proximity to compress time and space.

Cellular layout is different from functional layout of plants Functional layout- assembly moves from one place to another and back and so on. Cellular layout- movement of the assembly is minimized and even if it moves, it moves within short distances SINGLE PIECE FLOW -

Also called one-piece flow or continuous flow manufacturing Technique used to manufacture components in a cellular environment Everything that is needed to process the part are within easy reach and no part is allowed to go to the next operation until the previous operation has been completed.

Goals of one-piece flow: -

To make one part at a time correctly all the time without lengthy queue

Flow Manufacturing vs Batch Production Ways that can lower a company’s profitability when using larger lot production 1. 2.

The lead time between customer orders and delivery of products is lengthened Labour, energy and space are required to store and transport the lot

In simple terms, assume that the AQL is specified as 1%. In this case then if a lot contains less than 1% defects, the customer will accept the entire lot of items. If the defects are more than 1% then the entire lot will be rejected and returned to the supplier.

Is it possible to achieve zero defects?

Typically employs 3-12 people and 5-15 workstations in a compact arrangement

Material handling within a cell may be by a robot, conveyor or it can be manual.

The chances for product damage and/or deterioration are increased

Certainly possible. First time applied on missile production program for the US government. Basically requires managing the organization with clear vision, mission quality management system, proper system for organizing work operations, perfect customer-supplier relationship (internal and external), goods arriving just in time from the right vendors and above all a good harmony in the organization.

Factors which will contribute to achieving zero defects 1. 2. 3.

Determination required Right mindset required Do not accept work from others which is not up to the standard 4. Do not pass on the work to others saying that will be good enough 5. Do not put off till later 6. Do not put the blame on others 7. Perfect system required 8. Cultural change required 9. Never ending enthusiasm required 10. Training required 11. Management commitment required...