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Total Quality Management
Prepared by: Bhakti JoshiDate: January 02, 2012
Case Study: Su-KamProblem
Statement• Power outages and fluctuations• Bad quality power backup appliances• Fragmented industry
Industry Characteristics
• Comprised of small local players• Presence of large players in electrical and
consumer durables but not “Power Backup” industry
Opportunity • Nascent industry with unorganised players• No standardisations and regulations • Su-kam initiated innovation & creativity
Case Study: Su-Kam (Contd…)Product Design •Visually appealing, light-weighed and
shockproof inverters•Power backup duration grows from 10 -1 5 minutes to 2- 3 hours•Switchover time reduced from 50 – 100 milliseconds to 0 – 5 milliseconds•A 250 VA invertor that can run 1 tube light, a fan or 2 CFLs•Portable devices for shop-owners and traders• Invertor costs about Rs 2000 and Rs 4000 with battery
Team Setup • UPS industry• Cable TV industry and other digital product
industry• Missile industry
Case Study: Su-Kam (Contd…)Technology • Introduced MOSFET (Metal Oxide
Semiconductor Field-Effect Transistor), a device used to amplify or switch electronic signals that reduced the size of inverter
• Sine wave technology that introduced noise-free inverters
• Plastic body inverters with help of GE plastics• Home UPS (Inverter plus UPS)• PowerDoc monitoring system that helps in
remote monitoring all the larger KVA products
• Recall Software a remote system through which Su-Kam servicing or maintenance can done without opening the inverter
Case Study: Su-Kam (Contd…)Distribution • Local manufacturers were converted into
distributors• Battery dealers were converted into dealers of
Su-kam products• Marketing through banners on dhaabas and
tea shops across highways. Put names of dhaabas on banners along with Su-kam’s name
• Advertisement in classified columns and gradually moved to colour and electronic media
TQM: Focus on Root CausesCUSTOMER FOCUSIdentify and meet customer needs
CONTINUOUS IMPROVEMENTPhilosophy of never-ending improvement
Employee EmpowermentEmployees are expected to seek out, identify and correct quality problems
USE OF QUALITY TOOLSOngoing training in the use of quality tools
Focus on Root Causes
PRODUCT DESIGNProducts need to be designed to meet customer expectations
PROCESS MANAGEMENTQuality should be built in the process; sources of quality problems should be identified and corrected
MANAGING SUPPLIER QUALITYQuality concepts must extend to a company’s suppliers
Taguchi Methods: Example
• Company C received an average of 10 complaints per month last year. In November they received 15 complaints (y). Management sets an acceptable level at 2 (tolerance).
• It costs the company Rs.500 directly per complaint to correct the problems. They determined the cost in lost sales to be Rs. 1000.
• Total cost per complaint: Rs. 1500
Characteristics of the Company
• Customer satisfaction– Quality loss as loss to society quantified through
“Quality Loss Function”– Variations from optimal measure results in a loss
• Product Design– Equipment: No breakdowns– Specific jobs defined– Policies and Procedures – know-how
Formulae
• L(y) = k(y-m)2
L(y) = Loss
k = constant = cost to correct
tolerance2
y = reported valuem = mean value (average)
Calculation
k = Rs1500/22 = Rs375.0
L(y) = 375.0 (15-10)2
= 375.0 (5)2
= 375.0 (25)= Rs. 9375.0 is loss for the month
of November
Concept of Quality Loss
• Use of statistical analysis for quantification• Used as a quality control tool to quantify
quality during experiments and trial-errors especially in R&D
• Aims to reduce product variability with a system for developing specifications and designing them into a product or process.
Quality Control
A process through which a business seeks to ensure that product quality is maintained or improved and manufacturing errors are reduced or eliminated. Quality control requires the business to create an environment in which both management and employees strive for perfection. This is done by training personnel, creating benchmarks for product quality, and testing products to check for statistically significant variations.
Read more: http://www.investopedia.com/terms/q/quality-control.asp#ixzz1hzLDJ9TD
Criticism
• Discuss in Class
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