Productivity and Quality Management Notes

Chapter 2: Introduction to Total Quality Management

Definition of TQM
TQM is a structured (planned, prepared, well thought-out) system for satisfying internal and external customers and Suppliers by integrating the business environment, continuous development, improvement, and maintenance cycles while changing organizational culture.

Definition of Quality
In TQM quality is defined as products and services that totally satisfy our customer needs and expectations in every respect, on a continuous basis.

Principles of Total Quality Management
• The customer is the ultimate determiner of quality. Services and programs should be designed, with the needs of the customer in mind.
• Quality should be built from the beginning, and not simply derived from customer complaints.
• Achieving Quality requires continuous improvements, because expectations of Customer are always changing.
• Each department of an organization must be involved in producing a quality product and not just try to modify it before delivery.

Benefits of TQM
When organization follows TQM principles, they gain both measurable and intangible benefits. Some of these included following things
• Ability to be more competitive
• Increased market share
• Cost reductions
• Increased flexibility and responsiveness
• Simplified process
• Improved communication
• Less Frustration and more satisfaction among the workforce

Deming Wheel
Dr. Deming indicated that regular interaction in the four functions is required to improve the quality. These functions are Production, Research, Design and sales. This is called as Deming wheel. Sales department is in the connection with customer. That will only give best quality to the customer

The Cost of Quality
The concept of the quality costs emerged in the 1950’s. Quality can be organized into four major categories:

1. Prevention cost: Prevention costs are investments made to keep nonconforming product from occurring and reaching the customer. These include the specific costs as follows:
i) Quality Planning Cost, such as salaries of individuals associated with quality, planning and problem solving teams, and development of new procedures, new equipment design, and reliability studies.
ii) Process Control Cost, which include cost of analyzing production process and implementing process control plans.
iii) Information Systems Cost expended to develop data requirement and measurement methods.
iv) Training and General Management Cost, include internal and external training programs, clerical staff expenses, and miscellaneous supplies

Appraisal cost: Appraisal costs are associated with effort to ensure conformance to requirements. These are generally through measurement and analysis of data to detect nonconformance. These include the specific costs as follows:
i) Test and Inspection Cost associated with incoming materials; work in process, and finished goods, including equipments costs, area occupied and salaries.
ii) Instrument Maintenance Cost due to standardization and repair of measuring instruments.
iii) Process Measurement and Control Cost, which involves the time spent gathering and analyzing quality measurements.

3. Internal Failure Costs: Internal failure costs are incurred as a result of unsatisfactory quality found before the delivery of a product to the customer. Some examples include following:
i) Scrap and Rework Cost, including material, labor, and overhead.
ii) Cost of Corrective Actions, arising from time spent determining the causes of failure and correcting production problems.

4. External Failure Costs: External failure costs occurred after poor quality products reach the customer. These are as follows:
i) Costs Due to Customer Complaints and Returns: including rework on returned items, cancelled orders and freight premiums.
ii) Product Recalls Costs and Warranty Claims including the cost of repair or replacement, as well as associated administrative costs.
iii) Product Liability Costs, resulting from legal actions and settlements.

Crosby’s 14-point Program
1. Top management must become convinced of the need for quality improvement, and must make its commitment clear to the entire company.
2. All levels of management must be trained to implement their part of the quality improvement program.
3. Commitment of all layers of management for TQM program.
4. To turn commitment into action, individuals must establish improvement goals for themselves and their group.
5. Form a team of department heads to oversee quality improvement.
6. Establish quality measurement for every activity to identify areas needing improvement.
7. Make an estimate of the cost of quality to identify areas where quality improvement would be profitable.
8. Raise quality awareness among employees. They must understand importance of product conformance and the cost of nonconformance.
9. Opportunities for correction are generated by steps 3 and 4,as well as discussion among employees.
10. Form an ad hoc zero defects committee from member of the quality improvement team.
11. Schedule a zero defect day, to signal to employees that company has a new performance standard.
12. Encourage employees to inform management of any problems that prevent them from performing error-free work.
13. Non-financial appreciation must be given to their quality goals
14. Do All again, to emphasize the never-ending process of quality improvement.

Deming’s 14-Points for Management
1. Create and publish to all employees a statement of the aims and objectives of the organization. Management must demonstrate constantly their commitment to this statement.
2. Learn the new philosophy throughout all areas everyday.
3. Inspect to evaluate process improvements and cost reductions.
4. End the practice of running business on the basis of price alone.
5. Improve constantly the system of production and service.
6. Institute training.
7. Teach and institute leadership.
8. Drive out fear, create trust and create a climate for innovation.
9. Optimize all efforts toward the aims and purpose of the company.
10. Eliminate exhortation for the workforce.
11.
(a) Eliminate numerical quotas for production. Instead learn and institute methods for improvement.
(b) Eliminate management by objectives (MBO). Instead, learn the capabilities of processes, and how to improve them.
12. Remove barriers that rob people of pride of workmanship.
13. Encourage education and self-improvement for everyone.
14. Take action to accomplish the revolution.

Juran’s Quality Trilogy
Dr. J.M. Juran, did impact on the quality movement in Japan. He developed a useful framework, referred as “a universal thought process about quality, which fits all functions, all levels, all products lines.” He called it as “Quality Trilogy”
Quality Trilogy means managing for quality consists of three basic quality oriented process:
1. Quality Planning: It involves the process of establishing goals of organization. Once the process becomes operational, their responsibility is to run the process at optimal effectiveness and take corrective action.
2. Quality control: It is the process for breaking through too extraordinary levels of performance. Quality improvement does not happen of its own accord. It happens by purposeful action taken by upper management of quality improvement process
3. Quality improvement: It is implemented in addition to quality control, not instead of it.

Malcolm Baldrige Award

The Malcolm Baldrige National Quality Award was an American answer to the Japanese quality challenge and was signed as law in 1987. This is annual Award is to recognize U.S. companies for business excellence and quality achievement.
Purpose of award
1. To promote awareness of quality in the areas of competitiveness
2. To understand the requirements for performance excellence
3. To share of information.
Role of award in strengthening U.S competitiveness
1. Improve performance practice and capabilities.
2. Facilitate sharing of best practice information among and within organization.
3. Serve as a working tool for managing performance, planning training and assessment.
Process of selection
1. Members of the Board of Examiners evaluate the examination process
2. High-scoring applicants are selected for site visits by a Panel of Judge
3. They recommend Award recipients to the Secretary of commerce
4. Applicants receive a written feedback summary of strengths and areas for improvement in their quality management.
5. The American Society for Quality Control assists in the administration of the examination process.
The Baldrige award examines the quality of organizational activities in 7 categories.
• Leadership
• Information and analysis
• Strategic planning
• Human resource Development and management
• Process management
• Business Result
• Customer Focus and satisfaction
Companies awarded
1. Motorola
2. Milliken & Company
3. Cadillac Motor Car Division
4. Marlow Industries
5. AT&T
6. Ames Rubber Corporation
Chapter 3: Implementation of Total Quality Management

TQM process and implementation can be divided in following three parts:
• Total Employee Involvement (TEI)
• Just in Time/Waste Elimination (JIT)
• Total Quality Control (TQC)

Implementation of TQM
1. TRAINING
Training is the important part of implementing TQM in any organization. It is clear that TQM is basically related to attitude and perception. It is therefore essential to train each employee for awareness and methodology of TQM. Here top management is to be first involved in the training. Their complete support is going to nurture the required culture. The education for team leaders is to be imparted before formation of teams. Similarly other aspects like awareness, JIT, QC tools problem solving tools have to be covered by training.

2. DECISION
All the decisions in the company have to be made by teams by method of consensus. Such decisions get implemented easily and in short time.
Decision Style
There are different styles of the decisions.
1. Autocratic style of decision: “I will take decision” There the person responsible feels he is the only one to take decision and others have to follow it as instructions.
2. Democratic style of decision: “Let us decide together, Along with you I will decide, I will check with all and decide”.
3. Consensus style of decision: “Within a limitation you decide”.

Making Right Decision
Making business decisions is most crucial job and riskiest. In today’s economy the wrong decisions can be terrible. Following points to be kept in mind while making decision:
1. The decision has to be a firm decision.
2. Once it is taken it has to be implemented in short time.
3. Most important is that the decision has to be sold to those people who are involved in implementing the same.
4. Those people should feel happy and have sense of accomplishment after the job is done, or when the decision is implemented.
5. The “right” information has to be collected.
6. The costs and benefits must be accurately measured.
The benefits of better decisions are competitive advantage, maximizing utilization of resources money, time, people and equipment, less costly new product introduction, increased return on investment.

Kepner – Tregoe Decision Making Process
Charles Kepner and Benjamin Tregoe developed a systematic approach to problem solving and decision-making. The Kepner-Tregoe decision – making process incorporates awareness and systemization. It is not an exact science but it uses methods that stress on the probability of arriving at a more correct decision. Kepner-Tregoe has earned a worldwide reputation for improving business results through people.

Methodology of Decision Matrix
1. A simple matrix is made
2. The criteria are listed in rows and alternatives are put in columns
3. The first column to have the relatively important criteria
4. Use a scale of one (poor) to ten (strong) to score how well each decision criteria is served by each decision alternative.
5. Weightages are given to each criterion. The criteria with the high point score is most preferred

The problem with this method is that it is too easy to “fudge” it by consciously or subconsciously manipulating the scores to achieve a desired outcome. A review of results from this method must include a reasonable check. The advantage of this method is that it is straightforward and intuitive.

3. VISION AND MISSION
As part of implementation of the TQM all the employees take part in developing vision and mission of the organization. These have to be thoroughly understood by all. Also management has to declare one line statement as TQM policy of the company.

Quality Policy: This statement mentions company’s commitment towards quality, customer satisfaction and shareholders.

Mission: Mission describes the activities for achieving the vision. It is for top management to workers, regarding company’s views about the public, customers, and suppliers. The mission of the organization should state:
1. Says how to achieve the vision within a certain time frame.
2. Indicates the activities to achieve the vision.
3. Shows commitment submitted by stakeholders.

Vision: Vision and Mission have cause and effect relationship. Vision should reflect what the organization sees for itself 5-10 years down the road. It should be a simple statement. It has to be understood from top Management to line workers, including the public, customers, and suppliers. The vision of the organization should state:
1. What the organization wants to be, not what it is.
2. Future products or services concept (not specific products and services), a future market area such as global/international.

TQM Structure
In any company TQM activity has to be started in a structured way. As it is pointed out, it is the team working for TQM. The TQM structure consists of steering committees at different levels, such as company level, divisional level etc.
Steering Committee
This is the team of persons who are at the helm of the company or divisions, who generally decide the fortune and the future of the company. Generally these are heads of the different departments. They know the pain area very well. They are capable to spell out the problems, persons and practices in the company. These persons meet and create the TQM structure. They formulate the method and plan and also monitor those plans. They provide for financial sanction, training schedule and required back up for solving pain areas.
Shared Leadership
Every employee has to be involved in the leadership. The common goal, vision, mission, quality policy of the company is to be formulated with every employee’s thinking. That creates feeling of belongingness. Each employee strives hard to accomplish the goals as they are shared.
Team Structure
The TQM is a team activity. The formation of teams is generally done voluntarily. The team members are very much related to the problem area and they are specifically the junior most employees who are involved in day today activity. The team members decide the team contract.

Team Contract: The team contract involves deciding the following matters.
1. Day / place / time of the meeting.
2. The style of developing the agenda.
3. Rules of conduct of the members.
4. How minutes of meeting (MOM) will be made and who will make.
5. How the actions on the MOM will be taken and how they will be informed to the members.
6. Who is the team leader and team facilitators dealing and what is the style of decisions.
7. The process check for each meeting (done by facilitator)
8. The facilitator handles the problem of absenteeism of the members along with the team leader.

Chapter 5: Techniques Used for Total Quality Control (TQC)

1. PARETO CHART
Pareto chart is very useful to identify those factors that have the greatest cumulative effect on the system.
Principle
When you look at any system then 80% of the problems are caused by just 20% of reasons, while other 20% of the problems are caused by 80% of reasons.
Methodology
To make a Pareto chart following steps should be taken:
1. Define the problem area you want to know more about
2. Choose the several problems to compare, rank of existing data or by brainstorming.
3. Choose the category and the unit of measurement of which the comparison is based on (numbers, frequency, cost, etc).
4. If necessary several categories in separate Pareto charts can be used and compared
5. Give the time period in which information is to be collected.
6. Gather data for each problem category.
7. Rank the results in order of magnitude related to the chosen category.
8. List the categories on the horizontal line and the units of measurement on the vertical line.
9. Draw a cumulative percentage line from bar to bar, starting with the highest problem category
Typical Graph of Pareto Chart (Page No. 48)

2. FLOW CHART
A flow chart is a pictorial representation of process. It is a quality improvement tool. It provides a clear picture of each stage of a process, the interrelationship between the stages of the process and the direction of the process flow.

Symbols Used
1. Operation: The circle is used to indicate some act is performed.
2. Transport: The arrow donates direction of the flow of ordered events.
3. Storage: The inverted triangle designates a storage activity.
4. Delay: This symbol is used to represent delays in the process.
5. Inspection / Measurement: This symbol is used to represent inspection activity.
6. Output/ Result: The parallelogram represents concrete output of some forms, such as a product, report, a paper etc.
7. Document: This symbol represents a report, a paper, or document.
8. Off-page Connector: When you must continue the chart on another page, this symbol represents the connector.

9. Operation / Inspection: Any combination of two or more of above symbols shows and understanding for a joint process. The circle symbols marks the starting or ending point of the system. It usually contains the words “Start” or “End”.

Methodology
Use the following steps should be followed when flow charting a process:
1. Clearly define the steps in the process from beginning to end.
2. Identify each step by the simplest symbols possible.
3. Determine how the steps flow, including any backward flow that many result from outcome of certain activities.
4. Add all lines and arrows to indicate the relationship between steps and the direction of flow.
5. Complete the first draft and have it reviewed by those most familiar with process.
6. Modify the Process Flow Chart as necessary.

How to Use Flow Charts
1. Create a flow chart beginning with general operations on the first draft.
2. Do not be concerned about defining the process specifically on the first draft.
3. Avoid fixing a process until it is completely diagrammed and analyzed.
4. Review your chart. Does it shows the proper flow of operations, sequential and simultaneous events and reflect all major decisions.
5. After this, begin to analyze the process to determine possible improvements, eliminate steps that are unnecessary or inefficient.
6. For highly detailed analysis of any process using the flow chart, be sure to involve people who are actually involved in the process to get accurate perceptions.

3. CAUSE AND EFFECT DIAGRAM

Advantages
1. Can be used on any type of problem, and can be tailored by the user to fit the circumstances.
2. Straightforward and easy to learn visual tool
3. Preparation of the fishbone diagrams provides an education to the whole team.
4. Organizes discussion to stay focused on the current issues.
5. Promotes “System Thinking” through visual linkages.
6. Prioritizes further analysis and corrective actions.

Methodology
1. To start with, use a white board or a flip chart.
2. Write the problems to be solved as descriptively as possible on one side of the workspace. Then draw the backbone of the fish.
3. Decide and categorize the causes either by function or by process sequence.
4. Enlist all potential cause in categories and subcategories. The detailed sub-categories can be generated from following sources:
i) Brainstorming by team members based in prior experience
ii) Data collected from check sheet or other sources
iii) 5-Why”approach: That states: “Discovery of the true root cause requires answering the question ‘Why?’ at least 5 times”
5. Analyse to a deeper level by using Regression Analysis to quantify correlation and Designed Experiments to quantify cause.

Use of Fishbone Diagram
It is used when does the team:
1. Need to study a problem to determine the root cause.
2. Want to study all the possible reasons why a process has difficulties, problems, or breakdowns.
3. Want to study why a process is not performing properly or producing the desires results.
4. Need to identify areas for data collection.

Construction of a Fishbone Diagram
1. Draw the fishbone diagram.
2. List the problems to be studied in the “head of the fish”.
3. Label each “bone of the fish”. The major categories typically utilized are:
i) The 4 M’s: Methods, Machines, Materials and Manpower.
ii) The 4 P’s: Place, Procedure, People and Policies.
iii) The 4 S’s: Surroundings, Suppliers, Systems and Skills.
4. Identify the factors within each category that may be creating the problem.
5. Repeat this procedure with each factor to produce sub-factors. Continue asking, “Why is this happening?”
6. Continue until you no longer get useful information as you ask “Why is that happening?”
7. Analyze the results of the fishbone after you get adequate detail under each category.
8. For those items identified as the “most likely causes”, the team should reach consensus on listing those items in priority order.

4. HISTOGRAM
Histogram is a technique used to analyze the defects, which are measurable accurately. For example the dimensions for a job in machine shop can be measured by means of an instrument.

Process Capability
Process capability analysis compares the performance of a process against its specifications. Histogram uses variable data i.e. customer’s upper specification limits (USL) and lower specification limits (LSL) to determine process capability.
Graphically, we assess process capability by plotting the process specifications limits on a histogram. If the histogram falls within the specification limits, then the process is capable. And if it goes beyond specification limits the process is incapable.

Situation I – A Highly Capable Process
Observation – The Process Spread is well within the Specifications Spread.
When process is capable, we get an attractive histogram as shown in figure. All the readings fall within +/- 3 standard deviation, showing good quality control. We can tighten our specification limits and claim our product is more uniform than our competitors. We can claim that the customer should experience less difficulty, less rework, more reliability, etc. This can translate into higher profits.

Situation II – A Barely Capable Process
Observation – The Process Spread Just Matches 6 Sigma.
When a process spread is just about equal to the specification spread the process is barely capable of meeting specifications. This suggests that if the process moves to the right or to the left just a little bit, a significant amount of the output will exceed one of the specification limits. The process must be watched closely to detect shifts from the mean.

Situation III – A Process not Capable
Observation – The process spread is not within 6 sigma.
When the process spread is greater than the specification spread, a process is not capable of meeting specifications. This is indeed a sorry situation. Frequently this happens, and the people responsible are not even aware of it. Over adjustment of the process is one consequence, resulting in even greater variability.

In this situation any one of the following actions should be taken.
1. Change the process to more reliable technology.
2. Live with the current process and sort 100% of the output.
3. Re-center the process to minimize the total loss.
4. Shut down the process and get out of that business.

5. SCATTER DIAGRAM
Scatter diagrams are graphical tools, which correlates the influence of one variable on another. It usually displays points representing the observed value of one variable corresponding to the value of another variable. This tool is useful to establish the right criteria in relation to other known one to get desired quality of job

6. CONTROL CHART
Dr. Walter A. Shewhart of the Bell Telephone Labs developed control chart in the 1920s. It is a graphical display of a quality characteristic that has been measured from a sample versus sample number or time.

Uses of Control Charts
1. It is used for improving productivity.
2. It is used in defect prevention.
3. It prevents unnecessary process adjustments.
4. It provides diagnostic information.
5. It provides information about process capability

Types of Control Charts
1. Control charts for Attributes:
i) p chart: This shows the fraction of defective product produced by a manufacturing process. It is also called the control chart for fraction nonconforming
ii) c chart: This shows the number of defects or nonconformities produced by a manufacturing process.
iii) u chart: This shows the nonconforming per unit produced by a manufacturing process

2. Control charts for variables:
i) X bar chart: It is developed from the average of each subgroup data
ii) R bar chart: It is developed from the ranges of each subgroup data

Chapter 8: JUST IN TIME (JIT)

Definition:
JIT is organized approach to introduce in manufacturing cycle timelines, quality, productivity, flexibility, and work simplification and waste reduction. This is a technique from TQM activity. Basically this is waste control method; it is not the inventory control technique.

Pipeline
In any manufacturing organization the material undergoes different stages of processing from the supplier place to the buyer’s place. These stages are called pipeline. There is no problem when material moves from one department to another, but material waiting anywhere is not good. Indian industries have longer pipeline, as the organization is more sophisticated. Longer the pipeline, longer the time material waits. The value is added on the material only at stages where it is being processed, but no value is added where it waits. So it is referred as waste.
Storage (Inventory) of material at any stage, inspection of any kind, packing, rejection, rework and lead-time etc. are the operations to be eliminated. That is exactly done in the process of JIT. These activities add to the cost of product and not to the value of the product. The customer is not willing to pay for these.
In the pipeline there are two types of periods involved:
A. Period in which the material is under the process on machine. Value addition activity.
B. Total period when material is kept in any form / place in the organization.
The ratio of B to A should be 1, which is ideal, but it may be difficult.

TECHNIQUES USED IN JIT

1. Kanban – an Integrated JIT System
Kanban stands for Kan-card, Ban-signal. It was originally developed at Toyota in the 1950s as a way of managing material flow on the assembly line. This is simple parts-movement system that depends on cards and boxes to take parts from one workstation to another on a production line.
The essence of the Kanban concept is that a supplier or the warehouse should only deliver components to the production line as and when needed, so that there is no storage in the production area. In this system, workstations located along production lines only produce or deliver desired components when they receive a card and an empty container.
Kanban is a production system, which draws many of its elements from two primary sources, industrial re-engineering, and work force. Industrial reengineering along with Kanban consists of elements such as:
1. Modular/cell production. Products-oriented layout of processes and machine layout.
2. U-shaped production / processing lines.
3. Total Preventive Maintenance
4. Mass production of mixed models

Advantages of Kanban Process:
1. It is a simple and understandable process.
2. Provides quick and precise information.
3. Provides quick response to changes.
4. Low costs associated with the transfer of information.
5. Limit of over-capacity in processes.
6. Avoids over production.
7. Minimize waste.
8. Control can be maintained.
9. Delegates’ responsibility to line workers.

2. Group Technology (GT)
This is a modular manufacturing system, which involves organizing machineries so that related products can be manufactured in a continuous flow. Here, products flow smoothly from start to finish, parts do not wait for move.
This can be contrasted to a typical production system, where machines are grouped by function and products move from one function to another and back again. This results in long waiting times between procedures.

Characteristics of GT
1. Number of new parts is less.
2. Any new part required are designed to suit the manufacturing system.
3. Manufacturing standards are set for each part family.
4. Set up time is reduced. However number of settings per period does increase.
5. Varity of processes to be handled by workman giving him increased job satisfaction.
6. It provides flexible manufacturing systems and computer aided manufacturing.

Benefits of GT
1. Reduction in work in process
2. Reduction in over all stocks of material
3. Reduction in through put time
4. Reduction in over due orders
5. Reduced data processing
6. Increase in out put per employee
7. Increase in sales
8. Simplification of material flow system.
9. Improvement of production and planning control
10. Improvement in material handling
11. Better allocation of responsibility

3. SMED (Single digit Minute Exchange Die)
SMED, stands for Single-Minute Exchange of Die, is a technique for performing setup operations in number of minutes expressed in a single digit. Mr. Shingo revolutionized the SMED method since 1950 in Japan.
E.g. Bottling industries sometimes spend more than 20% of their planned production time on changeovers. These setup and changeover times can be reduced significantly when the changeover SMED system is applied.

Methodology Adopted by SMED
SMED can be conducted according to the following steps:
1. Form the setup time reduction team.
2. Conduct training and education.
3. Study the setup process (e.g., use video tape).
4. Classify setup operations into:
i) Waste – Operation, which do not add values to the setup.
ii) Internal Setups (IED) – Operations that can only be performed while the machine is shut down.
iii) External Setups (OED) – Operations that can be performed without shutting down the machine.
5. Eliminate the waste.
6. Convert as many internal setups as possible to external setups.
i) Use standard insert module
7. Improve internal setups
i) Use specially designed cart to organize tools
ii) Use quick – release fasteners instead of bolts and nuts
iii) Use stoppers to quickly position the jigs
iv) Use rolling bolsters instead of cranes
v) Use overhang mechanisms to handle heavy jigs
vi) Use locating pins and holes to eliminate the adjustment
vii) Use standardized die height
8. Improve external setups.
i) Use specially designed cart to help organize tools
ii) Use checklist to avoid omission
iii) Apply visual control principles
iv) Organize workplace (5S) to reduce search
9. Develop the standard operating procedure (SOP).
10. Evaluate the performance of setup reduction.
11. Prepare for the next setup reduction project.

4. JIDOKA (Automation)
JIDOKA is the concept of adding an element of human judgment to automated equipment. So that the equipment can identify unacceptable items and the automated process becomes more reliable. JIDOKA means not allowing problems to pass from one workstation to the next. Such that the production of a defective part is detected immediately and machine responds by stopping and requesting help.
E.g. In Toyota power loom the shuttlecocks would stick and create defects in the cloth being produced. The Toyota loom incorporated a simple stopper that was activated by a sticking shuttlecock. The operator could stop machine when the shuttle would stick.

Objective of JIDOKA
1. Ensuring 100% quality.
2. Preventing equipment breakdowns.
3. Using manpower efficiently.

5. Total Productive Maintenance (TPM)
In any factory it is necessary to run all the equipments on continuous basis to get maximum out put. It is found that generally that does not happen. There is loss if any tool or machine is not in use. Due to any reason like material not available or the machine is not working. In order to avoid such losses TPM is implemented. For this purpose following steps should be taken.
1. All the reason for the loss of equipment should be avoided.
2. Preventive Maintenance program is to be made.
3. Operator should be given training to maintain his equipment when required.
4. Autonomous maintenance by the operator along with the small group activity is to be done.

6. Pokayoke (Mistake Proofing)
Pokayoke invented by Shigeo Shingo in the 1960s. The term “Pokayoke” comes from the Japanese words “Poka”(mistake) and “yoke” (prevent).
People are human and cannot be expected to do everything like a machine, exactly the same each time. The basic principles of Pokayoke advocate developing tools, techniques and processes such that it is impossible or very difficult for people to make mistakes. E.g. a plate that must be screwed down in one orientation only could have the screw holes in non-symmetrical positions so that it can only be screwed in the right orientation.

8 principles of improvement
1. Build quality in processes.
2. All errors and defects can be eliminated.
3. Stop doing wrong and start doing right.
4. Don’t think of excuses. Think about how to do right.
5. 60% chance of success is good enough.
6. Mistakes and defects can be reduced to zero when every one works together to eliminate.
7. Ten heads are better than one.
8. Seek out true cause using 5Ws and one H. (why, when, who, where, what and how)

Productivity and Output Methodology
1. Selection of a project or a product
2. Selection of a team
3. Investigation
4. Analysis
5. Criteria for evaluation
i) Funds available for implementation of change
Time which can be given for change
ii) Ease of implementation
6. Development:
i) Sample Testing
ii) Presentation
iii) Implementation
iv) Audit

Obstacle in Value Engineering
1. Habitual Thinking
2. Risk of loss
3. Reluctance to ask for advice
4. Time pressures
5. Negative attitudes
6. Rapidly changing technology
7. Poor human relation

CREATIVITY AND EMPLOYEE PRODUCTIVITY
Creativity is the process of producing something that is both original and valuable. It is using ones imagination to develop a new idea or product. It is the matter that helps change to take place. The improvement is possible only through changes on the better side. Creativity is a good tool to improve productivity and also to solve any critical problem situation.

Methodology to Boost up Creative Attitude and Productivity of Employee
1. Creativity is basically a thinking process and further doing the same without fear of failure. For this TNA (Think Note and Act) notebook should be kept at hand.
2. Change of atmosphere (work or exercise)
3. TV, drugs and smoking should be avoided.
4. Reading and listening to music stimulates the brain.
5. Creative means starting small
6. Give employee brain stimulating exercises

How to Generate and Maintain Creative Atmosphere in Company
1. Make sure your employees know creativity is ok
2. Its ok to be wrong
3. Follow through (give suggestions a try)
4. Jokes and laughing
5. Sundry and homely activities of the staff
6. Bulletin board
7. Build creative teams
8. Brainstorming
9. To spur creativity, share information
10. Proportionate reward, not a bonus
11. Hire creative people / Director
12. Flexibility equals creativity
13. Long term investment

FULL NOTES ARE AVAILABLE AT

BMS Notes for all Semesters

Productivity and Quality Management Notes by
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