A Project Report

On

PRODUCTIVITY IMPROVEMENT THROUGH TOTAL QUALITY

MANAGEMENT

Submitted in partial fulfilment of requirementsFor the award of the Degree of

BACHELOR OF ENGINEERING

IN

PRODUCTION ENGINEERING

By

ABHINANDAN KUMAR

Under the guidance ofProf. KAPIL DEV PRASAD

Department of Production Engineering

DEPARTMENT OF PRODUCTION ENGINEERING

BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RACHI

2014

DECLARATION CERTIFICATE

This is to certify that the project entitled “PRODUCTIVITY IMPROVEMENT THROUGH TOTAL QUALITY MANAGEMENT” submitted by ABHINANDAN KUMAR in partial fulfilment for the award of the degree of B.E in Production Engineering of Birla Institute of Technology, Mesra, Rachi is the record of the student own work carried out under my guidance and supervision.

No part of this project has been submitted to any other university/institute for the award of this or any other degree.

DATE: Prof. KAPIL DEV PRASAD (Department of Production Engineering)

CERTIFICATE OF APPROVAL

This project entitled “PRODUCTIVITY IMPROVEMENT THROUGH TOTAL QUALITY MANAGEMENT” is here by approved as a creditable engineering study carried out and presented in a satisfactory manner to narrate its acceptance as prerequisite to the degree for which it is being submitted.

(Internal Examiner) (External Examiner)

Head of DepartmentDepartment of Production Engineering

ACKNOWLEDGMENT

Working on this project on “PRODUCTIVITY IMPROVEMENT THROUGH TOTAL QUALITY MANAGEMENT” was a source of immense knowledge to me. We would like to express my sincere gratitude to Prof. Kapil Dev Prasad for his guidance and valuable support thought out the course of this project work. We acknowledge with a deep sense of gratitude, the encouragement and inspiration received from our faculty members and colleagues. We would also like to thank our parents for their love and support.

ABHINANDAN KUMA

ABSTRACT

My project argues that the Total Quality Management concept and its implementation is the critical need for the survival of industries. In the meantime, lean manufacturing and constraint management could work together to improve productivity, efficiency and quality. The article discusses the environment in which businesses are operating, the effect of the total quality management on productivity and presents some of the benefits that were realized by implementing total quality management. Direct benefits from combining the concepts of lean manufacturing and constrained management during the productivity improvement process by using automation reduce production cycle times by more effectively designing and scheduling the movement of robots. The ultimate goal is to satisfy customer’s demand. My project discusses how constrained management substantially increases production.

PRODUCTIVITY IMPROVEMENT THROUGH

TOTAL QUALITY MANAGEMENT

1. How to increases productivity of an Industry

2. General methods used in Industry to increases productivity

3. What is TQM?

4. How to help TQM to improve productivity of an Industry

5. Total Quality Management model and productivity

6. Constraint management, Lean production and the competitive advantageRelationships

7. Conclusions

8. Bibliography:

INTRODUCTION

Intense global competition and diminishing trade barriers are making it more and more difficult for companies to maintain their market share. Competition from companies operating in different markets has increased as advancements in telecommunications and information technology have broken down traditional barriers to entry.

In a competitive environment, a business must persuade a customer to buy its products rather than those of competitors at a price

that is more than its cost of production. A rational customer, however, would like to maximize value for his money. Therefore, a successful producer must enhance the total value of his products so that the price is acceptable to the customer while his own costs are low enough to allow him to make a profit.

Total quality management (TQM) is all about fostering a culture that is continuously oriented towards increasing customer satisfaction while minimizing the real cost of production.

Increasing competition in the global market necessitates that productivity should not be considered as an indicator of efficiency only; it must also measure effectiveness. Yet the distinction between the two is often overlooked. For example, a company that produces according to process specifications may be using its resources efficiently, but unless it is producing what its customers want it may not be using them effectively. To be profitable, a company must judge productivity and value from the perspective of the customer, not from the engineer.

Older manufacturing facilities are often faced with productivity challenges due to their inflexible designs. The application of some of the principles of lean manufacturing is more restricted in such a setting. Today, “lean” may no longer be fashionable but its core principles flow, value, pull, minimizing waste etc.) Have become the paradigm for many manufacturing (and service) operations. In order to provide a platform for establishing the long-term competitive impact of the lean production model, the paper then develops a theoretical construct explaining the mechanisms that underpin sustainable competitive advantage.

• Productivity is usually taken in isolated scenario and cases.

• This usually lacks the holistic system approach of a productivity improvement project starting from its vision till operational tasks.

• As such, the benefit gained at one part of a system in time is eaten by the sluggishness performance at another part of the same system.

• The focus of discussion here is at the holistic approach of productivity; starting from: Its basic concept, Associated factors affecting it, The TQM tools and techniques used in

productivity improvement program and Measurement in all types of industries,

social and academic fields.

• Due to sever impact of productivity on national economy, it is at the top of national agenda of industrialized countries to have good monitoring and assessment system of performance of individuals and organizations.

• Underdeveloped and developing courtiers can take great advantage out of productivity implementation as the huge gap for productivity improvement in these economies.

• Higher productivity can be linked to national prosperity and socioeconomic development and balancing system.

BASIC DEFINITION

STATISTICSStatistics means a good amount of data to obtain reliable results. The science of statistics handles this data in order to draw certain conclusions. Statistical techniques find extensive applications in quality control, production planning and control, business charts, linear programming, etc.

QUALITYQuality is a relative term and is generally explained with reference to the end use of the product.

A componentise said to be of good quality if it works well in the equipment for which it is meant. Quality is thus defined as fitness for purpose.

Plant ManagerSuperintendents

Accounting Design and Production Quality Plant Procurement Industrial Development Engineering Relations Engineering

Assistant superintendent of Quality

Department Head, Parts Department Head, Product Quality Control Quality Control

Quality General foreman Quality General Foremen or Enguneers Foreman Engineers Foremen of ` of Inspection Inspection and Testing Labs

Organization of an Inspection Department

In manufacturing, a measure of excellence or a state of being  free from defects, deficiencies and significant variations. It is brought about by strict and consistent commitment to certain standards that achieve uniformity of a product in order to satisfy specific customer or user requirements. ISO 8402-1986 standard defines quality as "the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs. " If an automobile company finds a defect in one

of their cars and makes a product recall, customer reliability and therefore production will decrease because trust will be lost in the car's quality.

CONTROLControl is a system for measuring and checking (inspecting) a phenomena.It suggests

When to inspect How often to inspect How much to inspect.

In addition, it incorporates a feedback mechanism which explores the cause of poor quality and takes corrective action.

What is TQM? : Basic ConceptsTotal Quality Management / TQM is an integrative philosophy of management for continuously improving the quality of products and processes.

TQM is based on the premise that the quality of products and processes is the responsibility of everyone involved with the creation or consumption of the products or services

which are offered by an organization, requiring the involvement of management, workforce, suppliers, and customers, to meet or exceed customer expectations.

Cua, McKone, and Schroeder (2001) identified nine common TQM practices:

1. cross-functional product design2. process management3. supplier quality management4. customer involvement5. information and feedback6. committed leadership7. strategic planning8. cross-functional training9. employee involvement

TQM is an integrated organization apporoach in delighting customers (both external and internal) by meeting their expectaions on a continuous basis through everyone involved with the organisation working on continuous improvement in all product/processes along with proper problem methodologhy.

TQM means activities involing everyone in a company- Management and workers in a

totally integrated effort toward improving performance at every level.

This improved performance is directly towards satisfying cross-functional goal as Quality, Cost, Manpower development, Quality of worklife etc.

There activities ultimately lead to increased customer and Employee satisfaction,

In short, the definition says continuous meeting agreed customer requirements at the lowest cost by realising the potential of all employees.”

TQM Principle(i) Agree customer requirements(ii) Understand customers/suppliers(iii) Do the right things(iv)Do thinngs right first time(v) Measure for success(vi)Continuous improvement is the goal(vii) Management must lead(viii)Training is essential(ix)Communicates as never before

TQM is a process of change in terms of values, beliefs, style and activity.

The concepts are essentially simple to understand and yet are diffuclt to implement.

Basic Principles of Total Quality Management (TQM)

The basic principles for the Total Quality Management (TQM) philosophy of doing business are to satisfy the customer, satisfy the supplier, and continuously improve the business processes.

Questions you may have include:

How do you satisfy the customer? Why should you satisfy the supplier? What is continuous improvement?

This lesson will answer those questions.

Satisfy the customer

The first and major TQM principle is to satisfy the customer--the person who pays for the

product or service. Customers want to get their money's worth from a product or service they purchase.

Users

If the user of the product is different than the purchaser, then both the user and customer must be satisfied, although the person who pays gets priority.

Company philosophy

A company that seeks to satisfy the customer by providing them value for what they buy and the quality they expect will get more repeat business, referral business, and reduced complaints and service expenses.

Some top companies not only provide quality products, but they also give extra service to make their customers feel important and valued.

Internal customers

Within a company, a worker provides a product or service to his or her supervisors. If the person has any influence on the wages the worker receives, that person can be thought of as an internal customer. A worker

should have the mind-set of satisfying internal customers in order to keep his or her job and to get a raise or promotion.

Chain of customers

Often in a company, there is a chain of customers, -each improving a product and passing it along until it is finally sold to the external customer. Each worker must not only seek to satisfy the immediate internal customer, but he or she must look up the chain to try to satisfy the ultimate customer.

Satisfy the supplier

A second TQM principle is to satisfy the supplier, which is the person or organization from whom you are purchasing goods or services.

External suppliers

A company must look to satisfy their external suppliers by providing them with clear instructions and requirements and then paying them fairly and on time.

It is only in the company's best interest that its suppliers provide it with quality goods or services, if the company hopes to provide

quality goods or services to its external customers.

Internal suppliers

A supervisor must try to keep his or her workers happy and productive by providing good task instructions, the tools they need to do their job and good working conditions. The supervisor must also reward the workers with praise and good pay.

Get better work

The reason to do this is to get more productivity out of the workers, as well as to keep the good workers. An effective supervisor with a good team of workers will  certainly satisfy his or her internal customers.

Empower workers

One area of satisfying the internal suppler is by empowering the workers. This means to allow them to make decisions on things that they can control. This not only takes the burden off the supervisor, but it also motivates these internal suppliers to do better work.

Continuous improvement

The third principle of TQM is continuous improvement. You can never be satisfied with the method used, because there always can be improvements. Certainly, the competition is improving, so it is very necessary to strive to keep ahead of the game.

Working smarter, not harder

Some companies have tried to improve by making employees work harder. This may be counter-productive, especially if the process itself is flawed. For example, trying to increase worker output on a defective machine may result in more defective parts.

Examining the source of problems and delays and then improving them is what is needed. Often the process has bottlenecks that are the real cause of the problem. These must be removed.

Worker suggestions

Workers are often a source of continuous improvements. They can provide suggestions on how to improve a process and eliminate waste or unnecessary work.

Quality methods

There are also many quality methods, such as just-in-time production, variability reduction, and poka-yoke that can improve processes and reduce waste.

The concept of TQM (Total Quality Management)

Total Quality Management is a management approach that originated in the 1950's and has steadily become more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations.

Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices.

Some of the companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.

 

TQM DefinedTQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, engineering, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives.

TQM views an organization as a collection of processes. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is "Do the right things, right the first time, every time". TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations. There are a number of evolutionary strands, with different sectors creating their own versions from the common ancestor. TQM is the foundation for activities, hich include:

Commitment by senior management and all employees Meeting customer requirements Reducing development cycle times Just In Time/Demand Flow Manufacturing Improvement teams Reducing product and service costs Systems to facilitate improvement Line Management ownership Employee involvement and empowerment Recognition and celebration Challenging quantified goals and benchmarking Focus on processes / improvement plans

Specific incorporation in strategic planning

This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.

 

The core of TQM is the customer-supplier interfaces, both externally and internally, and at each interface lie a number of processes. This core must be surrounded by commitment to quality, communication of the quality message, and recognition of the need to change the culture of the organization to create total quality. These are the foundations of TQM, and they are supported by the key management functions of people, processes and systems in the organization.