LEAN

MANUFACTURING
By-Y.G.Chaugule
TQM
TOOLS
& TECHNIQUES

2
 Points to be covered

The seven traditional tools of quality, new management

tools, bench marking, reasons for bench marking, bench
marking process, Implementating total quality
management-An Integrated system approach.
WHY DO WE NEED 7 QC
TOOLS
We need Quality Tools for :
•Problem Solving – making decisions & judgments.
•For Process Measurement.
•For continual improvement in products, processes,
and services.
•To improve Quality, Productivity, and Customer
Satisfaction.
“95% of the problem is solved when clearly
defined”

“95% of quality-related problems in the

organization can be solved by using seven
fundamental quantitative tools.”
5
 •To analyze and solve quality problems effectively.
•Improve product and process quality.

7 •Enhance customer satisfaction.

•Reduce cost due to poor quality.
•Helps in investigating the potential causes and real root cause of

QC the problem for taking effective countermeasures.

•Check sheet helps in data collection and recording for quality
problem analysis.
•Identify and reduce the process variation using the SPC quality
Tools benefits
tool.
•Pareto QC tool helps to narrow down the quality problem using
the 80/20 rule.
•Helps in identifying the various sources of variations present in
the process.
•Improve the employee’s analytical and problem-solving skills.
Fishbone diagram is also called as Cause and
Effect diagram and Ishikawa diagram. It helps
to Identify all possible potential causes and
select the real/best potential cause which
contributes to the problem/effect. The
brainstorming technique is used for potential
cause identification.

In a brainstorming session, all 4M or 6M factors

are taken into consideration to identify the
potential causes. 4M or 6M factors are – Man,
Machine, Method, Material, Measurement, and
Mother nature also called Environment.
 Check Sheet
The check sheet is
used for collecting,
recording, and
analyzing the data.
Data collection is an
important activity in
the problem-solving
process as it
provides a basis for
further action.
Data may be
numerical,
observations
and opinions, etc.
 Check Sheet
Benefits
• Effective way to display data.
• Easy to use.
• Can identify the root cause of problem.
• First step to provide data for other
graphical tools.
• Provide a structure for uniform data
collection.
 Histogram
A Histogram is a
pictorial
representation of a
set of data, and the
most commonly used
bar graph for
showing frequency
distributions of
data/values.
Histogram frequency
distribution chart is
widely used in Six
Sigma problem
solving process.
Histogram
Pareto chart
The Pareto chart helps to
Narrow the problem area or
prioritize the significant
problems for corrective
measures. The pareto principle
is based on the 80-20 rule. It
means that 80 percent of the
problems/failures are caused
by 20 percent of the few major
causes/factors which are often
referred to as Vital Few.

And the remaining 20 percent

of the problems are caused by
80 percent of many minor
causes which are referred to as
Trivial Many. Hence, it gives us
information about Vital few
Pareto chart

How does the

Pareto Chart Work
Pareto chart

Benefits of
Pareto Chart
Control Chart A control chart is also known as the SPC chart or
Shewhart chart. It is a graphical representation of
the collected information/data and it helps to
monitor the process centering or process
behavior against the specified/set control limits.
A control chart is a very powerful tool to
Investigate/disclose the source of Process
Variations present in the manufacturing
processes. Tells when to take necessary action to
eliminate the Common or Random or Chance
variations and Special causes of variations.

The control chart helps to measure and analyze

the process capability and performance (Cp and
Cpk and Pp and Ppk) of the production process.
A Scatter diagram is also known as
Correlation Chart, Scatter Plot, and Scatter
Graph. A Scatter graph is used to find out
the relationship between two variables. In
other words, it shows the relationship
between two sets of numerical data.
Scatter graph shows a Positive or Negative
correlation between two variables.

Independent variable data and dependent

Variable data are customarily plotted along
the horizontal X-axis and Vertical Y-axis
respectively. Independent variable is also
called controlled parameters.
Question: Draw the scatter diagram for the
given pair of variables and understand the
type of correlation between them.
Here, we take the two variables
for consideration as:
M: The marks obtained out of 100
S: Number of students
Since the values of M is in the form of bins, we
can use the centre point of each class in the
scatter diagram instead. So let us first choose
the axes of our diagram.
X-axis – Marks obtained out of 100
Y-axis – Number of Students
The data points that we need to plot according
to the given dataset are –
(45,12), (55,10), (65,8), (75,7), (85,5), (95,2)
From the shape of the
curve, clearly, only a
fewer number of
students get high marks.
This implies a negative
correlation between the
two variables
Process
Flow
Chart
A Process Flow Chart
(PFC) is a diagram of
the separate steps of a
operations/process in
sequential order. PFC is
also known as process
flow diagram (PFD),
and Process Map.
Process
Flow
Chart

Symbol
s
Process
Flow
Chart
Process
Flow
Chart

MAN
TYPE
Process
Flow
Chart

MACHINE
TYPE
Process
Flow
Chart

MATERIAL
TYPE
7
NEW Affinity Diagram
Interrelationship Diagram
Tree Diagram
Matrix Diagram

QC Matrix Data Analysis Chart

Arrow Diagram
Process Decision Program
Chart
N
E
W

7
Q
C

T
O
O
L
S
OMPARISION
ETWEEN
EW VS CONVENTIONAL
 7
We can use an Affinity Diagram for
NEW organizing a large number of ideas/data into
their natural sets of relationships.
→ This tool is also known as a KJ Method
because it was invented by a Japanese
anthropologist Jiro Kawakita.

QC
→ During the creation of an affinity_diagram,
all team members need to brainstorm and
collect the ideas as much as possible.
Affinity Diagram → So that based on an idea, we need to
arrange the data as per their natural
relationship for solving the problem.
 7
NEW

QC
Affinity Diagram
 7
NEW

QC
Affinity Diagram
 7
Problem-What are various ways to reduce cycle time for proce
Step-1
NEW Generate Ideas

 Simplify machine operation,

 reduce spare comsumption.
 Increase machine speed,
 reduce set up time,develop backup vendor,

QC 



Ad conveyor,
improveMTTR and MTBF,
support during set up,
provide training,
Affinity Diagram improve vendor DT,
 Add overhead crane,
 change grade of lubricant,
 reuce paper work,
 add new control,vehicle loading time decrease
 7
Problem-What are various ways to reduce cycle time for proce

NEW

QC
Affinity Diagram
 7
Problem-What are various ways to reduce cycle time for proce

NEW

QC
Affinity Diagram
 7
Problem-What are various ways to reduce cycle time for proce

NEW

QC
Affinity Diagram
 7
Problem-What are various ways to reduce cycle time for proce

NEW

QC
Affinity Diagram
 7
BENIFITS

NEW
 Affinity diagram is simple and cost effective.
 Thinking ability of team members increases
 Innovative ideas will come during
brainstorming

QC
 Transparent and systematic tool
 Easy

Affinity Diagram
 7
NEW → An Interrelationship Diagram helps us to show
cause-and-effect relationships between the different
ideas.
→ We can use this tool for analyzing complex things
in a simple way.

QC → This tool is also used to solve a very critical and

confusing problem very easily

Interrelationship Diagram
 7
NEW

QC
Interrelationship Diagram
 7
NEW
4 STEPS TO DESIGN DIAGRAM

Identify and define the issues/problems

List down all ideas/activity.

QC Draw and count all arrows ass per the cause and effect relatio
Analysis of interrelationship diagram

Interrelationship Diagram
 Step-1

7
NEW Poor communication of the product dispatch/shippi
Step-2

QC
Interrelationship Diagram
 Step-3

7
NEW

QC
Interrelationship Diagram
 Step-4: Analysis of Interrelationship diagram

7
Identify driver or key cause
NEW From which idea or point having the highest number of outpu
or arrows are called as driver of key cause.

Identify the key concern

A concern or idea with a large number of input arrows is

QC
affected by large number of other concerns or ideas

A measure of poor scheduling of logistic

provider could
Interrelationship Diagram
create the problem of late delivery.
 7
NEW
Benefits
Tool very easily analysis the cause and effect relation.
Avery complex issues can be easily solved.

QC
Easy to use and analyze.

Interrelationship Diagram
 The Tree Diagram helps us to make our planning
more accurately.
→ It breaks our objectives into sub-tasks and sub
sub-tasks and so on.
→ We can achieve our objectives with the help of the
Tree_Diagram.
→ During this activity, we are moving from general
ideas to very specific goals.
→ The other names of the Tree Diagram are
(a) Systematic Diagram,
(b) Dendrograms,
(c) Hierarchy diagram,
Tree Diagram (d) Organisation chart,
(e) Analytical Tree.
Tree Diagram
 Step-1
Problem-Root cause analysis for pump failure

Step-2
Formation of team.
The should have sufficient knowledge of goal statement and
process of root causes,
Team should include cross functioning members.
Ideal group size 4 to 6 members.

Step-3
Generate the major heading of diagram
Step-4
Tree Diagram Divide each major heading in specific details
Tree Diagram
Tree Diagram
 → Matrix Diagram Shows the relationship between
more than one group of data sets to each other.
→ In other words, we can say that this tool is used for
many to many comparisons.
→ The Matrix Diagram gives us clarity of the
relationship between the different sets of data.
→ This tool is very helpful for developing the Quality
Function Deployment (QFD).

Matrix Diagram
Matrix Diagram
 TYPES OF MATRIX DIAGRAM

L-Type
T- Type
Y- Type
X- Type
Matrix Diagram
C- Type
QFD
 TYPES OF MATRIX DIAGRAM

Matrix Diagram
 TYPES OF MATRIX DIAGRAM

Matrix Diagram
 TYPES OF MATRIX DIAGRAM

Matrix Diagram
 TYPES OF MATRIX DIAGRAM

Matrix Diagram
 TYPES OF MATRIX DIAGRAM

Matrix Diagram
 → This tool is used to analyze complex
mathematical matrices.
→ We can easily perform market research and make
a strategy for new products and services launching
in the market.
→ Matrix Data Analysis Chart is also used as a
Prioritization Matrix

Matrix Data
Analysis Chart
 How to create matrix data analysis chart?

Decide the two characterstics to be studied.

Assign the scoring to charactersticsand prepare the matrix.

Put all data on X-Y graph.

Give a suitable title to graph and analyse the graph based on qu

Matrix Data
Analysis Chart
 Comapare two dishes in college canteen ba
on two parameters?
1.Visual attractiveness of two dishes
2.Taste of two dishes.

Now we will take these dishes for analysis-chilly potato,masala dosa

Papdi chat,macaroni,lunch/dinner,sandwich,grilled sandwich,samosa

Matrix Data
Analysis Chart
 Step2:assign the scoring to characteristics
prepare matrix to scale 1 to 10

Matrix Data
Analysis Chart
 Step3: Put all data on X-Y graph

Matrix Data
Analysis Chart
 Step4: Give a suitable title to graph and an
the graph based on quadrant

Matrix Data
Analysis Chart
 Arrow Diagram
→ Arrow_Diagram is used to making the best
scheduling for the project.
→ We can optimize the tasks and processes of our
project with the help of this tool.
→ It is also known as Activity Network_Diagram,
Network_Diagram, and Activity Chart.
→ Arrow_Diagram is broadly used in the Program
Evaluation and Review Technique [PERT], and Critical
Path Method [CPM]

Arrow Diagram
 Arrow Diagram

Arrow Diagram
 Arrow Diagram
A single arrow indicates the activity to be
performed.
The tail of the arrow shows the start of the activity
and
head of arrow shows end of activity.
The length of arrow shows the duration of the
activity.

Arrow Diagram
 Arrow Diagram

Arrow Diagram
 Arrow Diagram

Arrow Diagram
 Process Decision Program
Chart
The Process Decision Program Chart is used to
identify the possibility of what might go wrong
during the project implementation.
→ In other words, we can say that this tool is used
for forecasting the failures that may happen while
the implementation of the project.
→ With the help of this tool, we can revise our
project steps that might go wrong.

Process Decision
Program Chart
 Process Decision Program
Chart

Process Decision
Program Chart
 Process Decision Program
Chart
PDPC chart is used in following fields:-
Research and analysis
Engineering
Management
Business
Project management
Manufacturing
Marketing and sales
Servicing and support
Process Decision
Program Chart
 How to Prepare Process
Decision Program Chart

 Define objective to be achieved,

 Identify options available.
 Identify what if the condition.
 Possible countermeasures.
 Selection of counter measures.
Process Decision
Program Chart
 How to Prepare Process
Decision Program Chart

Process Decision
Program Chart
 How to Prepare Process
Decision Program Chart

Process Decision
Program Chart
Process Decision
Program Chart
 Advantages of PDPC

It helps to build contingency plan.

PDPC helps to select best possible solution to
complete the task with minimum risk.
Very simple tool to understand.
Good risk management

Process Decision
Program Chart
BENCH MARKING
Organization/Businesses are always striving for high
performance, from creating more efficient processes to selling
more of their products and services. But how does a company
determine whether it is successful?

Through the benchmarking process, any business can compare

itself against a standard and develop a consistent way of
measuring performance.
ENCH MARKING
E
N
C
H Benchmarking is the process of comparing
the cost, cycle time, productivity, or quality of a
specific process or method to another that is
widely considered to be an industry standard or
best practice.
Essentially, benchmarking provides a snapshot
of the performance of your business and helps
you understand where you are in relation to a
M particular standard. The result is often a
business case for making changes in order to
A make improvements.
R
K
B
E
N
C For example, suppose it takes 30 minutes to
H produce your product. Is the 30-minute
measurement good or bad? The only way for you
to know is to compare against other data, such as
the time it takes another organization to produce
a similar product. If another organization can
produce the same type of product in less than 30
minutes, you can use their time as a benchmark
M for measuring your own processes and
A procedures.

R
K
B
E The objective of benchmarking is to use the data
N gathered in your benchmarking process to identify
areas where improvements can be made by:
C
H •Determining how and where other companies are
achieving higher performance levels than your
company has been able to achieve.
•Comparing the competition’s processes and
strategies against your own.
•Using the information you gather from your
analyses and comparisons to implement changes
M that will improve your company’s performance,
products, and services.
A
R
K
B
E
N
C Why is benchmarking
H important?
Consistent benchmarking can help you:
•Improve processes and procedures.
•Gauge the effectiveness of past performance.
•Give you a better idea of how the competition
operates, which will help you to identify best
practices to increase performance.
M •Increase efficiency and lower costs, making your
business more profitable.
A •Improve quality and customer satisfaction.
R
K
B
E 8 steps in the benchmarking
N process
1. Select a subject to benchmark
C 2. Decide which organizations or companies you
H want to benchmark
3. Document your current
processes
4. Collect and analyze data
5. Measure your performance against the
data you’ve
6. Create collected
a plan
7. Implement the changes
8. Repeat the process
M
A
R
K
Define 1.What function to benchmark (D)
Measure 2.What is the current performance level- Select the Best-in-
Class (M)
Act 3.Compare (A)
4.Agree on actions to achieve or beat the Best-in-Class and

Improve Implement (I)

5.Monitor (C )

Control
6.Re-do
B
E Types of Benchmarking
N Process benchmarking
C When you want to Benchmark a process, with the best-in-class
process, for example, here the delivery process you want to
H benchmark with the best in class companies’ delivery process.
Example: Delivery process, Billing process.

Performance benchmarking
In this type, you want to benchmark the features of a product or
service. For example, let’s say if you are a mobile service provider,
you want to benchmark your download speed with the best in class.
Features of products and services e.g. mileage, download speed.
M
A Strategic benchmarking
How your organization competes with others?
R
K
B
E What benefits have been achieved by the
organizations that have successfully
N completed their benchmarking programs?
C
H 1. Cultural Change: Benchmarking allows organizations to set
realistic, rigorous new performance targets, and this process
helps convince people of the credibility of these targets. It
helps people to understand that there are other organizations
who know and do job better than their own organization.

2. Performance Improvement: Benchmarking allows the

organization to define specific gaps in performance and to select
M the processes to improve. These gaps provide objectives and
action plans for improvement at all levels of organization and
A promote improved performance for individual and group
participants.
R 3. Human Resources: Benchmarking provides basis for training.
K Employees begin to see gap between what they are doing and
what best-in-class are doing. Closing the gap points out the need of
personnel to be trained to learn techniques of problem solving and
B
E The Xerox Case
N
The company invented the photocopier in 1959 and maintained a virtual
monopoly for many years thereafter. “Xerox” became a generic name for all
photocopiers. By 1981, however, the companies market shrunk to 35% as IBM
C and Kodak developed high-end machines and Canon, Richo and Savin dominated
the low-end segment of market.

H .
The company instituted the quality improvement plan, which resulted in
tremendous progress and survival of the organization. This quality improvement
plan was later known to the world as Benchmarking Program. Xerox’s approach
focused on key processes, rather than simply on finished products, and
highlighted distinctive elements of those processes that accounted for product
superiority.
Xerox’s benchmarking strategy recognized that many processes are not unique
to a single industry and that comparisons need not be confined strictly to one’s
competitors. Xerox and other benchmarkers now believe that breakthrough
M advances are more likely to occur by adapting lessons learned from leaders
operating in entirely different industries.
A Xerox benchmarked companies both, in and outside the industry. The particular
example is L.L.Bean, catalog seller of outside equipment for improving

R distribution system based on the same. The benchmarking process resulted in:
Quality problems cut by two-thirds, manufacturing costs cut in half, development
task cut by two-thirds, direct labor cut by 50% and corporate staff cut by 35%
K while increase in volume.
T TOTAL

Q QUALITY

M MANAGEMENT
T
A core definition of total quality
management (TQM) describes
TOTAL a management approach to
long-term success through
customer satisfaction. In a

Q
TQM effort, all members of an
organization participate in
QUALITY improving processes, products,
services, and the culture in
which they work.

M MANAGEMENT
 Princip
1.Customer focus. The customer determines the quality level of the products and services. Customer
input is valued, as it provides a better understanding of what the customer needs.
2.Employee involvement. All employees must participate in the processes and system. They must be
properly trained and given the needed resources to complete their tasks on time.
3.Focus on process. Processes must be continually analyzed to identify weaknesses. Every employee
who takes part in the process should be properly educated in their contributions, ensuring the right steps
are taken at the right time.
4.Integrated business systems. All TQM processes should be integrated into a business process.
Integrated systems convey potentially useful data across departments, enabling everyone to be on the
same page.
5.Strategic and systematic approach. Planning and management are required using a strategic plan
with quality as a base component.
6.Continual improvement. A focus on continually improving quality helps an organization adapt to
changing markets and achieve competitive advantages.
7.Focus on data. Data should be collected, documented and analyzed to improve decision-making
accuracy and to predict trends based on previous history.
8.Communication. Communication between teams with information such as strategies, methodologies
or timeliness is essential to improving operations. Good communication can also motivate employees
and improve morale.
 Steps t
1. Clarify Vision, Mission, and Values
Employees need to know how what they do is tied to organizational strategy and objectives.
of TQM
Employees should understand where the organization is headed (its vision), what it hopes to accomplish
(mission), and the operational principles (values) that will steer its priorities and decision-making.
Develop a process to educate employees during new employee orientation and communicate the
mission, vision, and values as a first step.
2. Identify Critical Success Factors (CSF)
Critical success factors help an organization focus on those things that help it meet objectives and move
a little closer to achieving its mission.
Some examples of CSF:
Financial Performance
Customer Satisfaction
Process Improvement
Market Share
Employee Satisfaction
Product Quality
3. Develop Measures and Metrics to Track CSF Data
Once critical success factors are identified, measurements must be put in place to monitor and track
progress.
This can be done through a reporting process that is used to collect specified data and share information
with senior leaders.
For example, if a goal is to increase customer satisfaction survey scores, there should be a goal and a
measure to demonstrate the achievement of that goal.
 Steps t
4. Identify Key Customer Groups of TQM
Every organization has customers. Those who understand the key customer groups can create products and
services based on customer requirements.
The mistake many organizations make is not acknowledging employees as a key customer group.
Example Key Customer Groups:
Employees
Customers
Suppliers
Vendors
5. Solicit Customer Feedback
The only way for an organization to know how well they are meeting customer requirements is by simply
asking the question.
Create a structured process to solicit feedback from each customer group in an effort to identify what is
important to them.
6. Develop A Survey Tool
Next, develop a customer satisfaction survey tool that is based on what is important to customers.
For example, customers might care more about quality than cost. However, if you are developing a product
and trying to keep the cost down and skimping on the quality, you are creating a product that might not
meet the needs of the customer.
Learn to strike a balance between the cost of creating products and a quality product that customers will
value.
7. Survey Each Customer Group
Create a customized survey for each customer group. This survey will help to establish baseline data on the
customers’ perception of current practice.
 Steps t
8. Develop An Improvement Plan of TQM
Once the baseline is established, you should develop an improvement plan based on customer feedback
from each group.
Improvement plans should be written in SMART goals format with assignments to specific staff for follow-
through.
Goals May Include Some of the Following:
Process improvement initiatives: such as customer call hold times
Leadership Development: Walk-the-Talk
Management Training/Development: How to manage employees in a quality environment
Staff Training/Development: Customer Service
Performance Management: Setting expectations, creating job descriptions that support the vision,
and holding staff accountable.
9. Resurvey To See If It’s Working
Implement your improvement plan and give customers time to notice those changes.
After a period of time (12-18 months), resurvey key customers to see if scores have improved.
Customer needs and expectations change over time, so being in tune with changing needs and
expectations is critical to long-term success.
10. Monitor CSF
Monitor CSF monthly to ensure there is consistent progress toward goals.
For instance, if customer feedback alerts you that employees may need some service standard training,
collect monthly data to see if scores improve after initiating refresher classes.
This also allows for course correction should priorities and objectives change during the review period.
11. Incorporate Satisfaction Data into Marketing Plans
Once you’ve achieved some positive results with your satisfaction data, use it as a marketing tool!
 Steps t
12. Maintain Current Technology of TQM
Technology is how work gets done. Use technology to your advantage and commit to keeping up with
changes.
Make sure technology is user-friendly and supports targeted improvements.
For example, a website should be easy to navigate, easy to find (SEO), and the content should be easy to
understand.
 Question Bank
• Explain 7 traditional tools of quality.
• Explain new management tools.
• Define BENCH MARKING.Explain types of Bench marking.
• Explain Bench marking process in detail.
• Define TQM and explain principles of TQM.
• Explain Steps for implemtation TOM in details.
Thank
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