total quality management for performance excellence in organizations [PDF]

TOTAL QUALITY MANAGEMENT FOR PERFORMANCE EXCELLENCE IN ORGANIZATIONS IN SRI LANKA

BY T Uthayakumar B Eng. (Electrical &Electronics), MT (md. Eng.)

MSc

2006

This is to certify that this dissertation on 'Total Quality Management for Performance Excellence in Organizations in Sri Lanka

T Uthayakumar, DPM/96/43

has been accepted by the Faculty of Graduates Studies, University of Sri Jayawardenapura in partial fulfillment of the requirements of the degree of the Master of Science in Management

Supervisor

Mr. M Gunasekara

Approved by the examination committee

Mr. S S Udayanga

Mrs. Geet

Y7

CONTENTS

Page List of Exhibits / Illustrations

I

List of Tables

III

List of Abbreviations

IV

Acknowledgement

VI

Abstract

VII

CHAPTER 1 INTRODUCTION

1-23

1.0

Background

1

1.1

Problem context

3

1.1.1 Research question

13

1.2

15

Objective of the study

1.2.1 General objective

15

1.2.2

Specific Objectives

15

1.3

Research Design / Methodology

16

1.4

Sampling plan

19

1.5

Data collection and data analysis

20

1.5.1 Data collection

20

1.5.2 Data analysis

20

1.6

Significance of the study

20

1.7

Limitations

21

1.8

Chapter framework

21

CHAPTER

2

24-62

LITERATURE SURVEY 2.0

Introduction

2.1

Total Quality Management (TQM) —historical development

63

of definition on TQM 2.2

2.2.1

25

Concepts and models on TQM and applicability of relevant quality related information

27

TQM models and concepts

27

2.2.1 1 TQM concepts/models from ISO 9000

27

2.2.1.2 TQM, 6 (T and TPM

36

2.2.1.3 Perfonriance excellence

43

2.2.2

44

Quality related information

2.2.2.1 Cause and Effect diagrarnllshikawa diagram/Fish bone diagram

44

2.2.2.2 Quality chain of customer and supplier

45

2.3

Managerial concepts and related information

46

2.3.1

Organizing

46

2.3.2

Communication

47

2.3.3

Objectives

48

2.4

Human resources development and cultural transformation towards quality

50

History

50

2.4.1.1 Craftsmanship

50

2.4.1.2 Inspection

50

2.4.1.3 Statistical Quality Control

51

2.4.1.4 Total Quality Control

51

2.3.2

52

2.4.1

Present trends

2.4.2.1 Process of Management 2.4.2.2 American Society for Quality

52

- Code of ethics

53

2.4.2.3 Organizational and Personal learning

56

2.5

58

Summary

63-119

CHAPTER3 CONCEPTUAL MODEL AND METHODOLOGY 3.0

Introduction

63

3.1

Methodology for research

64

3.1.1

General

64

3.1.2

Logic on establishing truth

65

3.1.3

Postulational thinking on data collection and data analysis

67

3.1.4

sampling

70

3.1.5

Selection of indicators or measures

71

3.1.6

Study on the extent of application of the TQM

73

3.2

Data collection and data analysis

73

3.2.1

Data/information collection

73

3.2.2

Data/Information analysis

78

3.3

Organizing for quality

89

3.3.1

Organizing activities towards customer needs and expectations

89

3.3.2

Organizing role of marketing department/section

91

3.3.3

Organizing role of design/development department

93

3.3.4

Organizing role of production department

94

3.3.5

Methodology for reduction of defect/non-conforming product

96

3.3.6

Organizing operational activities and quality in complete process and sub processes

98

3.4

Quality in communication

101

3.4.1

General

101

3.4. 1

Methodology for identification of needs and expectations and

3.4.2

establishment of relationship for better communication

102

Communication to carry out organizational activities

105

3.4.2

Communication gap and its effect on quality

105

3.4.5

Facts based communication

106

3.4.6

System based communication

107

3.4.7

Innovation based communication

108

3.4.8

Benefits based communication

108

3.4.9

Needs and expectations based communication

108

3.4.10 Methodology for development of quality in communication

108

3.5

Cultural transformation of work life

112

3,6

Human resources development

113

3.6.1

General

113

3.6,2

Integrated knowledge on TQM

113

3.6.3

Self auditing/self assessment

115

3.7

Summary

116

120-157

CHAPTER 4 DATA ANALYSIS AND DISCUSSION OF FINDINGS 4.0

Introduction

120

4.1

Case studies

121

4.1.1

Case study 1- Case study on effectiveness of internal customer chain management of an organization

121

4.1.1.0 Case description

121

4.1.1.1 Questions

122

4.1.1.2 Case study analysis

123

4. 1.2

Case study 2 - Case study on synchronization of processes for effectiveness of Quality Management System

125

4.1.2.0 Case description

125

4.1.2.1 Questions

128

4.1.2.2 Case analysis

126

4.1.3 Case study 3 - Case study on factors contributing to process capability and its impact on continual improvement

129

4.1.3.0 Case description

129

4.1.3.1 Questions

131

4.1.3.2 Answers

132

4.1.4

Case study 4 - Case study on quality improvement on service quality —processing of test reports

4. 1.5

133

Case study 5 Case study on method of data collection and data analysis and its ef'fèct on achievement of quality objectives

136

4.1.5.0 Case description

136

4.1.5.1 Case analysis

140

4.1,6

Case study 6 - Case study on method of data collection and data analysis and its effect on achievement of quality objectives

141

4.1.6.0 Case descriptions

141

4.1.6.1 Case analysis

144

4.2

Strategies for continual improvement

144

4.2.0

General

144

4.2.1

Specialization of operations

144

4.2.2

Combined operation

145

4.2.3

Simultaneous operation

145

4.2.4

Increased flexibility

145

4.2.5

Increased material handling and storage

146

4.2.6

Synchronization of processes

146

4.2.7

Improved data collection and analysis

146

4.2.8

On line inspection

146

4.2.9

Process control and optimization

147

4.3

Discussion of findings

148

4.3. 1

Discussions

148

4.3.2 Findings

151

4.4 Summaiy

157 158-160

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 5.1

Conclusions

158

5.2

Recommendations

160

REFERENCES

162-166

List of exhibits I illustrations Figure

Title

Page

Figure 1.1

Lack of organized integrated knowledge on TQM

12

Figure 2.1

TQMEX model

35

Figure 2.2

Fit

38

Figure 2.3

Sample of black belt training

42

Figure 2.4

5 S House keeping practices

47

Figure 3.1

Logic on establishing truth

66

Figure 3.2

Arguments

67

Figure 3.3

Overall data collection and overall data analysis

67

Figure 3.4

Specific data collection and specific data analysis

68

Figure 3.5

Data collection system for TQM

78

Figure 3.6

Management review

80

Figure 3.7

Data analysis-process related and processor related

82

Figure 3.8

Data analysis system for TQM

89

Figure 3.9

Design / Development process

93

Figure 3.10

Production process

94

Figure 3.11

Sub process of process

95

Figure 3.12

Framework for TQM

114

Figure 3.13

Communication process

115

Figure 3.14

Processor in the chain of suppliers' and customers'

115

Figure 4.1

process owner, customer and supplier

122

Figure 4.2

Processes in the chain of customers and suppliers

122

Figure 4.3

Stitching process line

124

Figure 4.4

Stitching process interaction

124

Figure 4.5

Work instructions

125

Fundamentals

List of tables Title

Table Page Table 2.1

Comparison of TQM, TPM and 6c

40

Table 3.1

Reduction of setting time

99

Table 4.1

Quality objectives

138

Table 4.2

Surface roughness

140

Table 4.3

Quality objectives for year 2005

142

Table 4.4

Nine strategies for improvement on delivery or 147

reduce defect rate

ff

List of abbreviations

ABB

-

Asia Brown Boveri Ltd.

ASQ

-

American Society for Quality

BE

-

Business Excellence

BPR

-

Business Process Reengineering/Business Process

DEC

-

Digital Equipment Corporation

DSEG

-

Texas Instruments

FlT Y.

-

Fit Sigma

GE

-

General Electric

HRD

-

Human Resources Development

IBM

-

Institute of Business Management

IQF

-

International Quality Foundation

ISO

-

International Organization for standardization

JIPM

-

Japanese Institute of Plant Management

JIT

-

Just In Time

LMR

-

Labour Management Relationship

MBNQA

-

Malcolm Baidrige National Quality Award

POM

-

Process of Management

QC

-

Quality Control

QCC QMS

-

Quality Control Circle Quality Management System

SLNQA

-

Sri Lanka National Quality Award

SLSI

-

Sri Lanka Standards Institution

SSRI

-

Six Sigma research institute

TEl

-

Total Employee Involvement

TOBM

-

Total Organizational Behaviour Management

TPM

-

Total Productive Maintenance

Restructuring

Iv

TQM

-

Total Quality Management

TPS

-

Toyota Production System

TQC

-

Total Quality control

5S

-

5 I-louse Keeping practices (Seiri, Seiton, Seiso, Seiketsu and Shitsuke)

6 cy

-

Six Sigma

ACKNOWLEDGEMENT First I express my gratitude to Sri Lanka Standards Institution, especially the system certification division of the SLSI, which helped me to gather experience in quality related areas as a Quality Management System (QMS) Auditor that resulted in exploring the practices on quality problems and derive generic methodology / guideline to attend quality problems in a systematic way towards solutions to the problems.

Special word of thanks to Prof. Dr. 1-lenarath H.D.N,P. Opatha, Dr. (MS) Bhadra Arachchige and Dr. Ananda Wickramasinghe for their lectures on research methodology, the other lecturers and course co-coordinators for maintaining high standards. This lead to apply basic management theories on quality related areas when I conducting QMS audits.

My gratitude to all the organizations' managers and employees for providing facilities to carry out QMS audits in a meaningful way and the co-operation extended for completing it successfully.

I am very much grateful to Mr. Malan Gunasekara for his supervision on influencing the ability to apply research methodology to systematically organize the research and make it more enriched, Dr. Ananda Wickraniasinghe for his supervision on helping to expedite the research on time without delay and Dr Sampath Amarathunga to his efforts on focusing on our needs and making arrangements to avoid delays and complete the thesis.

Finally, all my efforts to produce this research study are dedicated to my wife and the SOfl

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ABSTRACT This research is simple and an empirical study on exploring the practices on quality problems and leads to derive generic methodology or guideline to attend quality problems in a systematic way towards solutions from data collection and data analysis. These findings are generic and can be applied to any organization irrespective of the size and complexity. It simplifies the path towards 6 ci by interlinking activities and theories such as corrective action, preventive action, Total Preventive Maintenance or Total Productive Maintenance (TPM) and Business Process Re-engineering or Business Process Restructuring (BPR). It distinguishes the area where statistical analysis needs to be applied and clearly indicate that the best operational practice based on the literature available and scientifically experimented on the field.

It encourages organizations to apply specific data collection and specific data analysis instead of overall data collection and overall data analysis to identify and linked quality related problems to processes or process to derive solutions. It clearly indicates how data collection and data analysis should be organized and emphasize on quality in organizing towards customer needs and expectations. Quality in communication and the benefits based communications to motivate employees also an essential requirement for developing employees.

The cultural transformation required for quality in organizing, quality in communication and genuine and honest way of collecting data and analyzing data is essential for any organization intends to practice Total Quality Management (TQM). For this a human resource needs to be developed, as these are new knowledge and methods or guideline even though it is simple. The methodology / guideline are more useful to quality practitioners as well as researchers as it has been validated constructively based on facts.

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CHAPTER 1 INTRODUCTION 1.0 Background The Sri Lanka Standards Institution (SLSI) is the national standard body on standardization activities and it had to undertake responsibility for developing quality in industries. As a consequence to development of Quality Management System Standards at international level (ISO 9000 series of standards in 1994), SLSI had to begin system certification activities for benefits of the industries in Sri Lanka. Once these series are revised in 2000, then most of the organizations benefited from the training programs conducted by SLSI and succeeded in implementing 2000 version also.

1-lowever the lack of in depth knowledge in quality was a problem on setting objectives on quality and achieving these objectives. As per (Perera, 20000 awareness of quality was a vital factor for conflicts between production and quality departments. The researcher as a QMS auditor experienced these dilliculties in industries and helped the industries using auditing techniques while conducting QMS audits. Reality (facts, benefits and needs/expectations) based communication on Training program on lSO 9000 in the areas of continual improvement, corrective action and preventive action at the training division of SLSI also helped the industries to improve quality and hence performance towards excellence.

The researcher's intention is to explore the theories and concepts on managerial and quality and interlink these to derive a framework for Total Quality Management (TQM) and avoid confusion, complexity considering practicality of implementation, and re-applicability.

Conceptual framework or model to be derived should also be generic irrespective of the size and complexity of organization. The selection and application of quality management principles and theories, linking these theories with logically, and demarcate what theory is suitable for, which areas, from the results of the past experience of the researcher in the form of cases, which are related to operational aspects.

For Human Resource Development (HRD); the methodology or guidelines on, quality in communication and organizing for quality, needs to be developed and used to create a cultural transformation (i.e. how to organize information/data for quality and communicate with facts, benefits and needs/expectation) a) for identification of customer needs and expectations; and determination on the extent of fulfillment of customer (internal or external) needs and expectations and h) for implementation of the conceptualization frame work for Total Quality Management (TQM).

2

To fulfill these requirements the auditor had played two roles mainly auditing and at the same time researching on site, i.e. in field. The research helped to bring simple approaches for identifying quality problems and issues and guiding industries if they are not using the conect approach. The experience gained from observation and the logic (Chakraborti, 2006) are to be utilized for building simple practical conceptualized framework for TQM, which can be used by practitioners and researchers for practicing and researching.

1.1 Problem context There are gaps on implementation of quality management theories and practice for performance excellence at international level also.

Quality award models such as MBNQA, SLNQA Asia Pacific Awards are used for assessing and awarding for performance excellence and selecting winners, (i.e. awarding organizations at international and national level. Professor Philippe Hermel and Associate researcher Juan Ramis —Pujol (2003) describes the evolution of excellence; begins with Peters and Waterman's In search of excellence (1982), models in evolution of excellence and criticize the drawbacks on evolution of excellence. concluding our excellence model as follows. Excellence 1.0 = "soft is important Excellence 2.0 "Change "; Excellence 3.0 = 'Learning"';

3

Excellence 4.0 = 'Excellence models Excellence 5.0 = "Integrated development"

However, it seems that such a synthetic conclusion would not be consistent with: (I) the richness inherent in the prospective studies the consideration of complexity the realization that science and practices tend to show themselves more in a hidden flishion than in clear and separate ways Furthermore "defining" assumes that we know which seems even more difficult under changing conditions. Fujisawa proposed at Honda a foundation for excellence and survival: 'to know how to live with unresolved problems and not to readily settle for solution (pascale, 1992). What if excellence was just a permanent open question? (Hilley, 2000).

As per H Suzuki, .Japanese management and many productivity tools such as QCC, TQC, JIT, 5S, TPM have been taught in seminars workshops and training courses......Many managers and employees have studied management and various productivity tools, but few of them are enjoying successful results. Moreover, some have ended up even

11

worse off than before due to confusion caused by mis-conceptions and mis-applications" (Suzuki, 1993) Confusion can be due to the one or more of the following: miscommunication of information related to quality incorrect training on selection of theories, concepts and methods for identification of quality problems and find solution to the quality problems inadequate organizational culture to collect data / information with regard to quality problems and hence find solution to quality problems

Quality problems are attended in an ad-hoc manner, which results in temporary solutions to quality problems than a permanent way of identifying quality problems in the process or processes for a manufacturing/producing particular product/service and finding solution to the quality problems.

In 1987, Motorola restarted its corporate quality goals as follows. > Improve 10 times by 1989 ) Improve 100 times by 1991 Achieve six sigma performance by 1992

In 1990, Bob Galvin, the Chairman of Motorola, asked Mikel J Harry an employee at Motorola's Government Electronics Group to start the Six Sigma Research Institute (SSRI) in Schaumburg, Illinois. This initiative was financially approved by IBM, Texas Instrument DSEG, Digital Equipment

Wi

Corporation (DEC), Asea Brown Boveri Ltd. (ABB) and Kodak. With their active participation SSRI began developing deployment strategies and advanced applications of statistical tools for their further use in variety of companies and industries. The concept of Black Belts was started at SSRI. In 1998, Motorola was the first company won the Malcolm Baldrige National Quality Award (MBNQA). Motorola's six-sigma journey was one of the factors contributed to win quality award. Even though six-sigma is originated at Motorola, General Electric (GE) has mastered the deployment with great success and is today considered a benchmark for the six-sigma implementation. Recently American Society for Quality (ASQ) and International Quality Foundation (IQF) has started the Black Belt Certification services for six-sigma practitioners.

Should strategies be developed and advance application of statistical tools be used to bring variety of companies in industries towards six-sigma and certify practitioners? Is there any new simple generic knowledge on TQM, which can be easily learned and easily practiced to bring companies and industries towards six-sigma?

General statistical methods are used to collect sample and predict the overall rejects/defects, which do not provide solutions for the quality problems as these problems are linked to the line of production, the processes linked with the line and type of product /service manufactured and the type of non-conformities arising in the particular type of product/service. For example manufacturing of

6

smaller sizes of cables require more control than the larger sizes of cables as the thickness of insulation failure occurs in smaller sizes of cables than the larger sizes of cables and quality problem occurs whenever there are changes on man, machine, material. Then when should the sample be collected and tested for identification of quality problem?

"(Jap(inese Institute of Plant Maintenance) 11PM define Total productive maintenance (TPM) as a system of ,nwntenance covering the entire life qf equipment in every division, including planning, manufacturing, maintenance and all other divisions, involving everyone from

fop

executives to the shop floor workers and promoting productive maintenance through morale- building manage/ne/It and small group activities in (in effort to Inaxunize equipment (fficiency. (p 2 Shizo Sen/u)

the iFnportance oJacknowledging that the nonconformance originated in the equipment, defIning those equipment conditions that would not produce non-con formance, and changing equipment conditions until they were what we wanted ... ... ... ... The QC equipment chart is ,vi,nilar to the QCprocess chart (ha/provides the framework for in TQC and is a thstinct ,fCuture of Yamagata NEC v quality maintenance activities. While the QC process chart is used to check output quality, the QC equIpment chart checks the equipment conditions and generates action when an abnormally is discovered. ... ... ... these quality maintenance activities led

7

to a substantial reduction in nonconformance for all product types, and the nonconfonnance rate dropped to a i/nrd of its former level even i/long/i the items that licici been in production for a number of years and for which most people thought we were doing cis well as could be expected. "pp 146-147, Shizuo Sen/u).

1-lowever the 1PM does not link or connect with Six Sigma. TPM does not describe what sort of measures to be taken to prevent non-conformances. What would be the mechanism to be adopted and indicators to be selected to bring down non-conformances? How does the moral should be build to carry out preventive measures? What sort of cultural values should be embedded for morale building?

Indicator such as downtime in hours for breakdown of machine or stoppages will be a good indicator for productivity but not be a good indicator to link the quality problems to machine components or parts as the reduction of downtime would be the effect of either improvement on maintenance staff or reduction on number of breakdown or stoppages. In Sri Lankan industries down time is taken as an indicator to demonstrate the improvement on QMS. This has resulted in less improvement in machine related quality improvement in the organizations in Sri Lanka.

Di

In some organization the number of products, which are defects or rejects, are taken as an indicator. The corresponding reduction of defects/rejects corresponding to the reduction of overall production cannot be taken as an improvement unless the defects are expressed in percentage wise.

The ISO 9000 series of standards does not clearly indicate how to identify the weakness of the process and set quality objectives. In addition to this it does not indicate how does the data'information should be collected and how does the datalinformation should be analyzed. Although these standards indicate what should be discussed in the management review when implementing quality management system, it does not indicate how the inforrriation can be organized for discussion to evaluate the effectiveness of the QMS and identified areas for improvement of the system in future.

In ISO 9000 : 2000, Quality management is defined as coordinated activities to direct and control organization with regard to quality.

NOTE: Direction and control with regard to quality generally includes achievement of quality policy and quality objectives, quality planning, quality control, quality assurance and quality improvement ISO 9000 does not provide insight in to the importance aspects of organizing for quality The incorrect approach of linking variables, depending on the nature of

processes and processor involved in the processes and for a particular situation the wrong identification of variable that lead to quality problems.

Ensuring quality by monitoring and measurement of product/service, if necessary collecting sample in addition to the random sample, when there is a change in 4 M (man, machine, method, material) is not carried out and found during my audit and consequently more re-works at the end of the production line.

New concepts such as Just in time (JIT), Toyota Production System, Kanban system are used and demonstrated that the companies are moving towards excellence. Without an effort to bring down non-conformities the companies cannot demonstrate their movement towards excellence.

JIT can be applied when there is no non-conformance and the reduction in processing time of the process/processes, to suit customer requirements. If there is no-non conformance then the stock level of raw material can be brought to zero level and thus improving the storage capacity problem of excess stocks and reducing the excess cost of the storage resulting in storage of excess raw material

In Toyota Production System (TPS) the next set of the components or raw materials for production will be brought to the production once the solutions for

bottleneck or solution to the quality problems are found. For this purpose the operations need to be organized to bring the machine down time and stoppages to zero level and solutions to quality problems arising at the initial stage should be found and solved to bring down non-conformance to zero level. In Toyota Production System the entire path are organized and rearranged and brought to be critical to improve efficiency (In critical path analysis we usually find only one critical path). Once the operations are organized and improved towards quality and performance then only the Kanban can be introduced to bring benefits.

When there is less non-conforming product/service, then there are less chances for purchase of those non-conforming product or services by the customer and hence less dissatisfaction or inconvenience to the customer. To satisfy the customer, bring operational benefits to employees and economic benefits to all slakeholders the reduction of non-conforming product/service is essential.

Accordingly the problem statement can be identified as follows:

"Do the existing theories and models mainly ISO 9000, Six-sigma, and TPM would help to bring down nonconformities and facilitate JIT, Kanban System, and Toyota Production System for performance excellence?"

"If not what type of model or framework could be used to bring down nonconformities and hence drive companies and industries towards performance excellence?"

Figure 1.1 - Lack of organized integrated knowledge on TQM Selection indicators

N.

Data collection and data analysis Identification of quality problems and finding solutions to quality problems

Approach to link variables (man, machine, method, Training

Culture of organization Setting quality objectives and reviewing at management review meeting

Problems in the problem context are summarized and illustrated in Figure 1.1 as follows:

Indicators are not selected to identify quality problems Data collection and data analysis are not organized to identify quality problems and hence find solution to quality problems

12

Inappropriate approach to link variables with quality problems and hence identify root cause and take action for effective solution to quality problems Inadequate training on selection of concepts, theories and methods to identify quality problems and hence find solution to quality problems Inadequate culture to collect data/information related to quality problems and hence find solution to quality problems Miscominunication leads to confusion in identification of quality problems and hence find solution to quality problems The lack of organized knowledge on overall aspects (selection of indicators, data collection and data analysis, approach to link variables, training and culture of organization) leads to confusion in identification of quality problems and hence find solution to quality problems The lack of knowledge on setting quality objectives and organized knowledge on discussing issues and effectiveness on quality management system. The lack of new organized integrated knowledge on TQM, leads to confusion in identification of quality problems and hence find solution to quality problems.

1.1.1 Research Questions To find solution for the above problems, the answers for following questions needs to be found.

13

How should the data collection and data analysis be organized? For which how should the data collection form needs to be designed? Is there any methodology for data collection and data analysis to identify quality problems and consequently found solution to the quality problems and reducing non-conformity (reject or rework)? Is this methodology being adopted by any organization at present? How does the indicators need to be selected for breakdowns or stoppages to identify quality problems related to the research? What is the approach or mechanism for identification of quality problems, which may be due to the changes on variables such as man, method, machine, and material? How can the processor identify weakness of the process or processes and set measurable quality objective, which can be achieved? How can the information on effectiveness of quality management system and issues related to quality management system be organized for discussion and make decision at management review meeting? How can the information on processor related quality problems be collected and analyzed? 1)How can the information in the new conceptual TQM model be organized for quality to bring benefits to organizations? How can the organized knowledge on quality be communicated and convinced for implementation to fulfill that the new knowledge will bring benefits to all stakeholders?

EEl

How can human resource be developed? What sort of cultural transformation should take place to implement this model successfully? What are the weaknesses of the existing theories and models such as ISO 9000, Six-sigma, and 1PM to bring down nonconforrnities and facilitate JIT, Kanban System, and Toyota Production System for performance excellence? How should those weaknesses be overcome? j)What should be the integral component of an effective TQM model or framework?

1.2 Objectives of the study 1.2.1 General objective The general objective of this study is to explore the theories and concepts on science and approaches in practice on managerial and quality; and interlink these to derive a conceptual frame work for Total Quality Management (TQM)

1.2.2 Specific objectives To framework data collection and data analysis from logic To study data collection and data analysis system developed in selected two organizations and compare with the data collection and data analysis frame work developed for TQM To Develop an indicator to identify machine related quality problems to tind solution to machine related quality problems

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To Develop methodology or strategy for identification of the area for development on organizing for quality, Methodology to reduce nonconfonning product To identify what sort of cultural transfbnnation is required to implement the TQM model or framework To identify areas for self-assessment and improvement for human resources development. To develop methodology for development of communication towards quality To simplify and apply process approach in the form of cases which are linked with the development of conceptual framework for TQM.

1.3 Research Design/Methodology The postulational style of thinking (Cooper and Schindler, 2001) is used to derive the conceptual framework as it is related with organization of operational aspects on how to collect data, how to analyze data and how to select indicators to identify quality problems, how to organize information and link with variables (man, machine, method and material), when the data should be collected to identify quality problems at the beginning of its occurrence and hence find actions for solution as preventive measures. Benefit, facts and needs/expectations based communication has been introduced as per the experience of researcher's involvement in communication of the benefits of implementing these findings in the Organizations in Sri Lanka. Continual

improvement based information is discussed in more than 50 times in different instances with the personal involved in quality related activities and out of this the researcher could not find any single instance of rejecting the findings, while the researcher organizing and expressing the information carefully with facts and conveying the benefits with these facts to fulfill their needs and expectations (i.e. the reality).

The area, which is being developed from experience, is standard and new knowledge in the field and not available in Sri Lanka. The postulational thinking is used to link case studies and examples derived from practical experience. Extent of implementation of this concept can be verified by field study. Field study can be carried out from the organizations those who are not implementing this concept and extent of practicality and effectiveness of this concept on identification of quality problems and hence implementation of preventive measures as solution to quality problems can be verified.

Hence for solving quality problems in an effective manner, the new concept should be developed and paradigm shift should take place for implementation of this new concept and areas where the statistic can be applied and cannot be applied should be demarcated.

"Seasoned six sigma professionals emphasize more on the application of statistical tools rather than on demonstrating the higher order of

17

statistical skills. For example, large number of six sigma programs over-emphasize hypothesis testing, whereas simple graphical methods and quick conformation runs can be more practical"

(p 118, R S

Chalapathi)

This research is expost facto and qualitative. The research has no ability to manipulate the variables but the researcher report on what has happened or happening to the variables and its effect on quality problems and identification of quality problems and link with variables to determine the action to be taken and evaluating the effectiveness in field study.

'An activity whose purpose is to find a valid answer to some question that has been raised. The answers provide new knowledge to the world at large. it is a purposeful activity' (Abdellah & Levine, 1979, P703)

The interest of the researcher is collecting data or information related to organizational aspects in operations from problematic area and tries to find out facts in the form of solution for the problem and then using these facts to select the suitable theory. If the findings are correctly related to the existing theory or model, then the theory or model will be accepted If the findings are not correctly related to the theory

IN

But the suitable theory with modification can be possible, then modified theory will be accepted And no modification to the suitable theory, then new theory or model will be derived and accepted from these facts. The research is more related with solving quality problems, i.e. informational and operational management system and developments of human resources on this area is required for solving quality problems and enhance quality. This might also change the culture of the practitioners, if the benefits and simplicity can be communicated and convinced.

Facts linked to the development of conceptual framework from case description (by observation and interviewing), examples from observations and logical approach for organizing information ensure validity and reliability of the research.

1.4 Sampling plan Two Organizations are selected to study the extent of data collection and data analysis in their field and to compare those study with the framework developed for data collection and data analysis on TQM by the researcher.

A systematic method for gaining new knowledge that can be verifIed and generalized beyond the sample studied' (Brink & Wood, 1978, P / 76)

ILI

1.5 Data collection and data analysis 1.5.1 Data collection For the purpose of this research the related data/information collected by the researcher from experience is described in the form of case studies and exmles.

1.5.2 Data analysis These datalinformation is analyzed and generalized to link with the conceptual framework or model to be derived for TQM.

1.6

Significance of the study This study will help to generate simple practicable framework for TQM, which can be applied for quality improvement and hence productivity improvement The framework for TQM to be generated will be generic and can be applied to any organization irrespective of the size and complexity Quality of the life of the people and also the national economy will improve once practitioners and researchers use this conceptual framework. The research helps organization to achieve performance excellence by introduction of preventive measures for rejects or rework by organizing data collection and data analyzing and taking preventive measures.

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The generalized methodologies for performance excellence in the fonn of quality in communication, organizing for quality and self auditing/assessment can be used by employees irrespective of the size of the organization, complexity of the processes and their interactions. Process approach can be easily understood and implemented as the cases indicate the way of using process approach and identify symptoms of processes and these methodologies can be used in similar situation if it arises.

1.7 Limitations The technology improvements and technology management might also help to fulfill some of the needs and expectations of customers. The methodology for quality in communication is derived based on the assumption that human resources are rational and can be convinced by the use of benefit and facts based communication. 1.8

Chapter framework The dissertation of the research is basically organized and presented in (6) chapters. Chapter 1-Introduction This chapter elaborates on the contents of the research There are seven sub titles 1.0

Background - In this section the important needs of this study is elaborated

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I.! Problem context - In this section the problem statement and research questions are indicated. 1.2

Objectives of the study - The main and sub objectives of the research are indicated

1.3 Research design/methodology - The appropriate and suitable methodology for selection by the researcher is indicated 1.4

Sampling plan - Two organizations were selected for comparison of data collection and data analysis

1.5 Data collection and Data analysis - this section describes the data/ infonnation, which are collected and analyzed to find the facts and generalization to link with TQM framework 1.6 Significance of the study -- the importance of this research to the organization is described in this section 1.7

Limitations -- limitations are identified and discussed

1.8

Chapter Framework - In this section the summary of the chapters of this study and how the chapters are sequentially organized in the dissertation is highlighted

Chapter 2-Literature survey This chapter illustrates the literature available on TQM and gaps and literature on general management linked with TQM and it's gap to derive the new conceptual framework for TQM.

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Chapter 3—Conceptual model and methodology In this chapter the simple conceptual framework for TQM is developed to identify the quality problems and hence find action for solution to take preventive measures.

Chapter 4—Data analysis and discussion of findings This chapter describes detailed data collection and analysis in the fonn of a) Case studies On effectiveness of internal customer chain management of an organization in the garment industry, Synchronization of processes for the effectiveness of quality management system and Factors contributing to the measurement of process capability and its impact on continual improvement Methods of data collection and data analysis and its effect on achievement of quality objectives. b) Strategies for continual improvement

Chapter 5 Recommendations and Conclusion This chapter describes the summaries and conclusions of the research of this dissertation.

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CHAPTER 2 LITERATURE SURVEY 2.0 Introduction In this chapter the existing TQM concept / models and related background intbrmation are critically reviewed for identification of gaps and hence modify existing conceptual model or framework or develop a new conceptual model or framework for TQM.

For this purpose the researcher review definition for TQM development in the past by different philosophers which is important on identification of gaps and deriving new concept or theory on TQM.

Then the researcher reviews the concepts and models on TQM and applicability of relevant quality related information on these concepts for practicality and if necessaiy how these concepts need modification or change for exact identification of quality problems. The solution to the quality problem requires the exact identification of the problem for which the researcher links the previous case studies and examples, which were the results of the continual improvement on application of theories and concepts and information related to quality in industry. These will be linked in the form of cases and examples.

24

The TQM is also linked with managerial concepts. The researcher explore the extent of application of the relevant managerial theories or concepts at present and how these theories need to be developed/modified or linked for identification of quality problems and how employees can be provoked or motivated to identify and solve these problems as per the definition of TQM developed by Ho (2002, p6) which stresses the importance of involvement of every one for continuous improvement in all systems and processes of organization.

In addition to these the researcher reviews how the human resource development and cultural transformation took place in various stages of changes in the past and how this should be for implementation of the new conceptual framework for TQM.

2.1 Total Quality Management (TQM) - Historical Development of defrnition on TQM The different philosophers define TOM in different manner. Morehouse (1996) considers Feigenbaum is the developer of the TQM philosophy in quality revolution when his work on total quality control is published in 1956.

Tota1 Quality Management (TQM) is an integrated organizational approach cuztering care of customers '(internal and external) satisfaction on a continuous basis'. (Ecigenbaurn, /991)

25

'a comprehensive and integrated way of managing any organization in order to meet the needs of the customers consistently and achieve continuous improvement in every aspects of the organization's activities (Jeffrics et al., 1996, p.15) '... is essentially a way of planning,, organizing, and understanding each activity, and depends on each individual at each level. For .-in organization to he truly effective, each part of it must work properly together towards the same goals, recognizing that each person and each activity affects and in turn is affected by others. TQM is also way of ridding people 's lives of wasted effort by bringing everyone into the process of improvement, so that results are achieved in less time... Oakland (1995). TQM provides the overall concept that fosters continuous improvement in an organization. The TQM philosophy stresses a systematic, consistent, organization wide perspective involving everyone and everything. It focuses primarily on total satisfaction for both the internal and external customers within a management environmnent that seeks continuous improvement of all systems and processes (HO, 2002, p. 16)

26

2.2 Concepts and Models on TQM and applicability of relevant quality related information 2.2.1 TQM models and concepts In Total Quality Management (TQM) several models have been established for quality awards in national and regional level. Deming prize

Japanese model for company wide quality control (CWQC)

imp I etnentation MBNQA - Malcolm Baldridge National Quality Award; US model for recognizing achievement of organization SLNQA - Sri Lanka National Quality Award for recognizing achievement of organization and it is identical with MBNQA EFQM Model - used by European Community for awarding prizes for business excellence TQM and ISO 9001 The models (a) to (d) described above are excellence models for awarding while ISO 9001 is published for certification of Quality Management System (QMS).

2.2.1.1 TQM concepts/models from ISO 9000 In ISO 9000 series of standards, ISO 9001 can be used by internal (first party) and

27

external (second party - assessment by organization's quality management system by customer) parties (third party - assessment by the certification bodies) to assess the organizations ability to meet customer, regulatory and organization's own requirements.

ISO 9001 and ISO 9004 form a consistent pair of standards on quality management. ISO 9001 aims to give quality assurance of product to enhance customer satisfaction, while ISO 9004 is for a broader perspective of quality management system to give guidance for performance improvement. TQM is a journey towards performance excellence, while ISO 9000 is a basic building block for moving towards TQM.

ISO 9000 and TQM ISO 9000 family of standards is QMS standards, which are generic in nature. These can be applied irrespective of the size of the oiganization, type of activities, complexity of processes and their interactions. 150 9000, 1S09001 and ISO 9004 are the series of standards in the family for QMS published by the International Organization for Standardization (ISO) in year 2000. Sri Lanka Standards Institution (SLSI) adopted these as SLS 150 9000, SLS ISO 9001 and SLS ISO 9004, which are identical with ISO 9000 family of standards.

ISO 9000 family of standards are based on the Demming methodology known as Plan-Do-Check-Act" PDCA cycle Plan

: establish the objectives and processes necessary to deliver results in accordance with customer requirements and the organization's policies.

Do

implement the processes

Check

monitor and measure processes and product against policies,

objectives and requirements for the product and report the results Act

: take action to continually improve performance

ISO 9000 describes fundamentals of QMS, which form the subject of the ISO 9000 family, and defines related terms. ISO 9001 and ISO 9004 are pair of standards on quality management system.

150 9001 aims to give quality

assurance of product and to enhance customer satisfaction, while ISO 9004 aims for a broader perspective of quality management system to give guidance for performance improvement.

ISO 9004 is based on eight quality management principles for use by top management in order to lead the organization toward improved performance. These are integrated in to this standard and are; Customer focus Leadership

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Involvement of people Process approach System approach to management I) Continual improvement Factual approach to decision making Mutually beneficial supplier relationships Though these management principles are for use by top management, the employees involved in activities can also use these principles to communicate and convince top management for the areas of improvement of system, to contribute for achievement, maintenance and improvement of organizational performance and capabilities (employee development) and to identify and meet the needs and expectations of its customer and other interested parties (employees, suppliers, owners and society), efficiently and effectively to achieve competitive advantage. The application of these management principles then will be Customer focus - employees understand current and future customers needs (it can be internal or external) and communicate customer requirements and strive to exceed customer requirements (please see 4.1.1) Leadership - employees lead to identify weakness of the processes from data collection and data analysis and solve quality related problems in the internal environment, and setting and achieving quality objectives

30

Involvement of people - employees are involved in and communicate to share information and learn for improved organizational performance and capabilities (employee development) irrespective of identified levels Process approach - The systematic identification and management of the processes employed within an organization and particularly the interactions between such processes is referred to as the "process approach" An advantage of the process approach is the on going control that provides over the linkage between the individual processes within the system of processes, as well as their combination and interaction.

When used within a quality management system such an approach emphasizes the importance of understanding and fulfilling the requirements the need to consider processes in term of added value obtaining results of process performance and effectiveness, and continual improvement of processes based on objective measurement. e) System approach to management - Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives

0

Continual improvement

Continual improvement of organizational

performance g) Factual approach to decision making - organizing to collect data and the effective decision s are based on the analysis of data and information

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h) Muti.ially beneficial supplier relationship - an organization and its suppliers (it can be internal or external suppliers) are interdependent and a mutually beneficial relationship enhances the ability of both to create value.

Although the organizing is also important when collecting data, without which the factual information cannot be derived from analysis of data and consequently the improvement of process, the family of these standards did not describe the importance of organizing.

Iso 9000 family of standards does not indicate any methodology required for cultural transformation, which facilitate communication of needs and expectation of customers (internal and external) and hence improving the suppliers' performance

Eight quality management principles stipulated in the standard is for top management. The standard does not indicate the relevancy of these principles for other employees. However these principles should also be used for employee development. These are applicable to employees for the effectiveness and efficiency and improvement of system and capabilities (employee development).

The requirement on control of document in ISO 9001 helps to organize and control information related with operational aspects. 1-lowever it does not

32

provide any information or guide how to organize data from monitoring and measurement to identify corrective action or preventive action.

Empirical research suggests that many organizations are motivated by external motivational factors such as customer pressures and market related factors for implementing ISO 9001 for certification (Sun and Cheng, 2002; Withers and Ebrahimpour, 2001; Dale, 1994; Fuentes ci al., 2000; Tsiotras and Gotzamani, 1996; Hurang, 1998). On the other hand internal motivation factors such as productivity, higher quality and improvement of process and system were found to be the factors for implementing ISO 9001. Tsiotras and Gotzamani, (1996), Anderson et.al. (1999), Docking and Dowen (1999) and TQM is a Journey to performance excellence, while ISO 9000 is a basic building block for moving towards TQM (Sri Lakshmi, 2003). Prabhu et.al, (2000) investigated the impact of ISO 9000 certification and TQM on organizational performance. The study concluded those organizations, which systematically adopt best practices starting with ISO 9000 and continuing with Total Quality Management achieving a higher level of performance.

But as per researcher's experience the application of ISO 9000 quality management principles helps to derive facts and the data collection and data analysis also based on the application of eight management principle such as process approach and factual approach to decision making focusing on customers needs and expectations and involvement of people on bringing the issues and

33

information on issues to obtain leadership of contributing based on factual decision making and for continual improvement of the system including supplier quality management system by establishing mutually beneficial supplier relationship. To conform in accordance with ISO 9001: 2000, all the eight management principles may not be implemented well, as the standard does not specify as a requirement to implement all these eight management principles.

Different authors describe ISO 9000 in different manner. Arora (1996) described ISO 9000 as a pillar in a company's approach to TQM since it includes important elements such as training, statistical process control (SPC) and management commitment. Lai (1996) mentions that TQM is an approach to quality that goes beyond ISO 9000. ISO 9000 builds a strong foundation for a TQM environment, emphasizing customer needs, employee involvement, and making continuous improvements (Lai, 1996). McAdam and Jackson (2002), Williams (1997), and Askey and Dale (1994) revealed that ISO 9000 certification provides the building blocks for successful and effective implementation of TQM. Further McAdam and Mckeown (1999) found the majority of the organizations in their study progressed from ISO to TQM and considered ISO to be an important step towards the TQM journey. Ho (1999) developed a mode referred to as TQMEX (See Figure 2.1), which represents the incorporation of TQM approach of organization. Although Ho (1999) separated 5-S and BPR as operations management and QCCS, ISO, TPM and TQM/BE as quality management; in practice these cannot

34

be separated and integrated together. However this model is complex for implementation and not based on science or practice. Figure 2.1 - TQMEX model

5S ]

Operations BPR

Management

QCCs

Quality ISO Management

_TPMj

I -

E

TQM/BE

5S

= Seiri, Seiton, Seiso, Seiketsu, Shitsuke

BPR

= Business Process Re - engineering

QCCS = Quality Control Circle ISO

= ISO 9001/2 Quality Management System

TPM = Total Productive Maintenance TQM = Total Quality Management BE

= Business Excellence

Source: Ho (1999, p.3)

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As per researcher's experience the practical aspects included in the data collection and data analysis and these are important and essential for progressing towards TQM and hence it is the foundation or building block to TQM rather than ISO 9000. These are more scientific oriented as it deals with operational aspects on quality. For this effective data collection and data analysis for continuous improvement towards TQM, human resources should be developed and cultural transformation should take place, which will be dealt in chapter 3.

2.2.1.2 TQM, 6 cF and TPM TQM to Fit Sigma Basu and Wright (2003) explain the evolution of TQM to Fit Sigma through Sig sigma and Lean sigma. They criticize the Six sigma as follows

Total Quality Management, Business process re-engineering and Six sigma, many attempts to implement and sustain imnprove,ncnts have fizzleul out, not with a hank but with a whimper. W7iat is more puzzling is that some companies who successfully implemented a quality initiative and initially reported substantial improvements have subsequently experienced overall drops in performance and profit, resulting in lay oJjs and lowered employee morale. For example, Motorola the originator of the sixsigma, announced in 1998 that its second quarter profit was almost non-existence and that it was

36

reducing its staff of 150 000 by 15 000. At the time of writing (may 2002) the situation for Motorola has not improved. The actual number of job cuts since August 2000 is 48 400 ('almost one third of the work fbrce,, For the year ended 2001 the company reported its first operating loss in 71 years; and stock value has declined by 73 percent over the last two years.

Basu and Wright (2003) integrate Six sigma with the lean enterprise approach and present it as Lean sigma.

we have Six sigma, we will now look at lean enterprise, which is in fact an updated version of industrial engineering. With lean enterprise the fbcus is on delivered value as seen by the customer. l'he aim is to eliminate all non-value adding activities (wasted effort and wasted mnatenals,)for each product and process along the value chain. The value chain begin with the supplier and the supplier 's supplier, and flows through the transformation process to the organization 's customer. The value chain relies on two-way communication from the end user back to the original supplier....

Finally they emphasis the importance of maintaining Six sigma and Lean sigma by identifying barriers to achieving and sustaining results

37

If lean sigma provides agility and efficiency, then measures must be in place to develop a sustainable fitness. The process to do just that is FIT SIGMA. In addition the control of variation from the mean in the six sigma process ( is transformed to company-wide integration in the FIT SIGMA process FIT (. Furthermore the philosophy of FIT (

should ensure that it is indeed fit for purpose for all organizatton -

whether large or sinai!, manufacturing or service.

FIT ( is a solution for sustainable excellence in all operations. It is a quality process beyond six signa.....FIT ( are underpinned by three corner stones

Figure 2.2 - Fit Fundamentals

Fitness for the purpose

Fitness for sustainability

SIGMA for Integration

Source: Basu and Wright

kV

Basu and Wright explain the elements as follows:

a. Fitness for the purpose Initial assessment For all function For any size of an organization b.

Sigma (L) for improvement and integration Appropriate Six Sigma tools Learning deployment Project plan and delivery SJzfl from variation (t7)to integration (

c. Fitness for sustainability Performance management Senior management review (S&OP) Self assessment and certfIcation

The comparison on TQM, TPM and 6 is given in Table 2.1

39

I alMe 2.1

1omparison ol IQM, II'M and 6 cy TQM TPM System oriented Equipment oriented Focusing on customer

Focusing on maximize Production system effectiveness/efficiency (Productivity

Certification of organization system or awarding certificate Based on pioneer Seiici Based on phiolosophies Nakajima Juran, Demming 5 Basic concepts building up a profit Different Models for NQA culture and ISO 9001 :2001 Philosophy of prevention or preventive philosophy ISO 9001: 2001All employee 7 management principles participation Customer focus Genba Genbutsu Leadership (Actual Scene, Actual thing Involvement of and Reality) peopke Employee convenient Process approach 8 pillars of TPM System approach to Kobetsu Kaizen management focused maintenance 1) Continual Jishu —Hozen improvement (Autonomous maintenance) Factual approach to Planned maintenance decision making Initial flow control Mutual beneficial Hinshitsu - Hozen supplier relationship (quality maintenance) I) Office improvement Education & training 1 Definition of Safety & hygiene Quality 2 Output Degree to which a set of PQCDSM (Production, inherent characteristics Quality, Cost, Delivery, Safety, fulfill requirements Morale) 3 Input 5 M - Man, Method, Machine, Material, Money Overall productivity Ou (put/input

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6(3 Statistical oriented Focusing on business Abatement of defects or errors or business risks Certification of individuals Master Black belt, Black belt, Green belt Based on development originated at Motorola Mickel Harry - employee of Motorola - established 6 t institute, Illinois, USA Funded by IBM, Texas instruments (DSEG), Digital Equipment Corporation (DEC), Asea Brown Boveri (ABB) and Kodak 4 Eight step methodology Recognize, define, measure, analyze, improve, control, standardize and integrate Objectives Generate immediate improvements to profit margin - an effective problem solving methodology Fundamentally change the way people perceive and think about the future of the business 5

Definition of quality Quality is a state in which value entitlement is realized for the customer and provider in every aspect of the business relationship

As per Basu and Wright certification of Black Belts and Master Black Belts need training as follows

Black belts are awarded a certificate after: Completing three weeks of formal class room Black belt training Completing one week of change management and project management training Completing as a team leader, an end —to-end $ 1 million Black Belt project Demonstrating Six Sigma Commitment evidence by mentoring Green Belts and preparation of Green Belt training material Master Black Belts are awarded Masters' certificates after: Black Belt certification Completion of five end-to-end Black Belt projects as team leader Delivery of three Green Belt Training sessions Demonstrating commitment to the Six Sigma philosophy through mentoring Black Belt and/or Green Belt projects Designing Black belt training material

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Figure 2.3 - Sample of black belt Training Week I

Week 2

Week 3

Week 4

Define and measure

Analyze

Improve and control

Advanced

Generating

statistical tools

Process

improvement

Design of

mapping

Selecting solutions

experiments

Change

Process

Root cause

management

capability

analysis

Key performance

SPC tools

indicators (KPIs)

Process

Project management

optimization

Variation

Sigma calculation

Data collection

Sampling Creativity

Multi variance

Cost of poor quality (non-conformance

charts Input/output

Design for six

analysis costs)

sigma

Source: basu and Wright, 2003

Should the sophisticated training is required or else any simple methodology or approach is available to reduce non-conformities?

In Sri Lanka, some of the companies do not realize the importance of TPM in quality improvement and driving the organization towards performance excellence. These companies do not organize the preventive maintenance schedule and update from time to time for maintenance of quality.

The organizing of data and application of process approach and analysis of critical data on conforming product (in addition to the organizing of non-

42

conforming product and analyzing using) and observing trends and deviation and consequent preventive measures will also be necessary in order to apply correct tools for quality improvement whether it is six sigma or TPM

2.2.1.3 Performance excellence The Sri Lanka National Quality Award performance criteria are based on Malcom Baldrige Award criteria for performance excellence. The criteria are built upon the following set of interrelated Core values and concepts: Visionary leadership Customer driven excellence Organizational and personal learning Valuing employees and partners Agility Focus on the future Managing for innovation Management by fact Social responsibility Focus on results and creating value Systems perspective

The criteria for performance excellence focus on employee development in the form of organizational and personal learning and innovation, the organizing aspects of individual development, which helps towards

43

performance excellence, and generic values for cultural transformation to facilitate communication, which are essential for performance excellence, are not described.

2.2.2 Quality related information 2.2.2.1 Cause and effect diagram/Ishikawa or fishbone diagram Japanese quality guru Ishikawa introduced the Cause and effect diagram is one of the 7 tools as follows Cause and effect diagram Pareto diagram Check sheet Histogram Scatter diagram Control chart Various graphs The appearance is similar to the fishbone and therefore it is called as fishbone diagram. All ideas offered are recorded for subsequent analysis. The process is continued until all the conceivable causes have been include. The proportion of non-conforming output attributable to each cause, for example, is then measured or estimated ... (John S Oakland). This tool is time consuming to generate ideas and may not be correct to identify the cause of a problem of an assignable cause as it is due to a particular change in the following thetors

44

Man Machine Method Material Whenever there is a problem in process then it is not always advisable to draw a cause and effect diagram with regard to man, material, method and machine. The processor in the process does not identify the real factors (man, machine, material and methods) contributing to the problem as most of the problems are occurring due to the assignable cause rather than random cause. The factors do not contribute can be eliminated and the processor can concentrate on the real factors to identify the root cause and take corrective action or to carry out further investigation (Please refer case on synchronizing of..)

2.2.2.2 Quality chain of customer and supplier Oakland (pp.8-9) describe the necessity of fulfilling the requirement of customer by the supplier or equipment in the chain of customer and supplier whether internal or external and emphasis that the failure leading to more problems elsewhere by multiplying effect.

there is a series of quality chains of customer and supplier (Figure 1.1) that may be broken at any point by one person or one piece of equipment not meeting the requirement of the customer , internal or external. The interesting point is that this failure finds its way to the

45

interface between the organization and its outside customers and the people who operate at the interface. Like.....

However this does not explain the fulfillment of the requirements of all the customers in the chain and the rework or inconvenience that happen due to this. (Please refer he case study on internal customers chain management ... )

2.3 Managerial concepts and related information

2.3.1 Organizing

In general management, organizing is generally taking place to arrange resources required (including human resources) to provide product or service to consumer/customer.

As per the definition given by Weihrich and Koontz (1994, 717) Organizing is establishing an intentional structure of roles for people to fill in an organization

As per this definition it is expected and to be used by top-level managers rather than middle level managers or operators

Organizing is expected on top-level managers than operators or middle level managers. However it is important for middle level managers and operators

46

to identify and categorize quality related problems and take preventive measures

Organizing should aim towards organizing information and activities for fulfillment of needs and expectations of customer also.

Organizing in 5 S The Quality Management philosophy is based on Juran Triology, i.e. Quality planning, Quality control, and Quality improvement. Deming's Philosophy is based on Quality improvement through involvement. Figure 2.4 —5 S House keeping practices

5S

Original Japanese

IS

Seiri

Meaning in English Sort Out unnecessary items in the workplace and discard them.

2S

Seiton

Arrange necessary items in good order so that they can be easily picked up for use

3S

Seiso

Clean your workplace completely so there is no dust on the floor, machines or equipment

4S

Seiketsu

Maintain high standards of housekeeping and workplace organization at all times

5S

Shitsuke

Train people to follow good housekeeping disciplines autonomously

Source: Hajime Suzuki, Japan Productivity center for Socio-Economic Development

47

Quality management pioneers did not realized the importance of organizing (one of the basic management functions of planning, organizing, staffing, leading and controlling) except that it has been included in 5 S housekeeping practices (please refer Figure 2.4).

"5 S is self initiative, it can not be done by profssional staff. ....5 S will become practical 5 S once it is equipped with the fbi/owing proper guidelines

ght understanding Practical applicatio 5S+

Practical tec/:nique.s

= Practical 5 S

Itegrated activi!) Organizing or sorting on .5 S house keeping practices is specifically aim to keep work place in order, which will assist to select the tools/equipments or documents without delay to carry out activities. 5 S housekeeping helps to make environment for employees' happiness.

Even though the organizing is applied in 5 S, it is difficult to ascertain whether the importance of the organizing aspect is fully realized in the area of Total Quality management. Should the 'organizing' be considered in organizations through which human resources can be developed towards effective and efficient quality management? In what areas (other than in 5 S housekeeping) this can be applied?

2.3.2 Communication As per the definition given by Weihrich and Koontz (1994, 712), communication is defined as the transfer of information from one person to another, with the information being understood by the receiver.

MBNQA criteria address communication in detail. As per the MBNQA the following aspects are ensured for communication on data, information and organizational knowledge Integrity Timeliness Reliability Security Accuracy Confidentiality These aspects will be ensured once the relationship for better communication is established. Any organization demonstrating the above qualities on data, information and organizational knowledge should have established and maintained relationship based on needs and expectations of individuals or groups.

However to motivate/provoke human resources what sort of communication should take place and demonstrated is not included in MBNQA or general management.

49

2.3.3 Objectives In general management the objective are defined in terms of factors mainly the number of products produced per day or time taken to carry out a particular job or the cost incurred in completing a particular project on particular job or activities.

However the objectives set without considering quality will not be realized due to the quality problems and time spent on errors, defects and waste. Whenever the rejects or rework or errors increases the chances of failure to achieve objectives also higher. In other words it is always better to set objective for reducing errors, defects, waste then the objective related to quantity, time and cost will be automatically achieved without any problem.

2.4 Hunian resources development and cultural transformation towards quality 2.4.1 History 2.4.1.1 Craftsmanship During early stage quality was basically linked with craftsmanship. Production of goods was in the hands of skilled craftsmen 2.4.1.2 Inspection When the quantity of products became larger and the birth of factory system due to industhal revolution in the western world, the method of quality control by inspection (i.e. 100 percent inspection) needed more people. The 'foreman' or 'supervisor' was responsible for production as well as quality of product This cultural transformation was adequate to solve serious quality problem since the

50

size of factories were small. Later, F. Taylor introduced a new production system in USA, which separated planning from execution. Executives carried out planning and supervisors and workers carried out execution or implementation. But later it created problems in quality and human relations. 2.4.1.3 Statistical Quality Control The birth of statistical sapling tables and tools lead to creation of separate quality contiol department and inspection work is transformed to sampling inspection from 100 percent inspection 2.4.1.4 Total Quality Control In 1951, Dr. A. V. Feigenbaum combined the technical and managerial aspects of quality and brought the concept that quality should be achieved through the involvement of all functions of a company.

During this period Dr. J. M. Juran recommended a well structured approach to focus on "Juran's quality triology" such as quality planning, quality control and quality improvement and it does not call for cultural change.

Dr. Edward Deming introduced 14-point framework for transforming the management culture. These are "a) Provide all employees with a statement of the aims and purposes of the company. The management must constantly demonstrate their commitment to this statement

51

Learn the new philosophy, top management and everybody. Understand the purpose of inspection, for improvement of processes and reduction of cost End the practice of awarding of business on the basis of price tag alone Improve constantly and forever the system of production and service Institute training Teach and institute leadership Drive out fear Optimize the efforts of teams, groups, and staff areas towards the aims and objective of the company Eliminate exhortation of the workforce Eliminate numerical quotas for production. Instead, learn and institute methods for improvement 1) Remove barriers that rob people of the pride of workmanship Encourage education and self-improvement for everyone The action to establish the transformation

2.4.2 Present trends 2.4.2.1 Process of management (POM) The Lecturer Sussland (pp 108-1 15, 2003) identified strategies for process of management (POM) and listed the strategies as follows

52

Strategy fundamentals"\ "Doing the right thing" Strategy dynamics Strategy implementation review "Doing the thing right" Strategy audit

"Doing the right thing

right" Process of Management (POM) is similar to the one of the sevenmanagement principle factual approach to decision making prescribed in

Iso

9000 series of standards. However it does not demonstrate how to

overcome inefficiencies by organizing and motivating human resources without communicating benefits or convincing the success to human resources involved specially introducing changes or obtaining involvement for activities which are challenging.

2.4.2.2 American Society for Quality - Code of Ethics To carry out organizational activities effectively in a professional manner, The American Society for Quality published Code of Ethics for quality professionals as follows:

Code of Ethics "To uphold and advance the honor and dignity of the profession, and in keeping with high standards of ethical conduct I acknowledge that I:

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Fundamental principles Will be honest and impartial, and will serve with devotion my employer, my clients, and the public. Will strive to increase the competence and prestige of my profession. Will use my knowledge and skill for the advancement of human welfare, and in promoting the safety and reliability of products for public use. Will earnestly endeavor to aid the work of safety

Relations with public 1. 1 will do whatever I can to promote the reliability and safety of all products that come my jurisdiction 1.2 will endeavor to extend public knowledge of the work of the society and its members that relates to the public welfare. 1.3 Will be dignified and modest in explaining my work and merit 1.4 Will preface any public statements that I may issue by clearly indicating on whose behalf they are made

Relations with employers and clients 2.1 Will act in professional matters as a faithful agent or trustee for each employer or client 2.2 Will inform each client or employer of any business connections, interests, or

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affiliations which might influence my judgment or impair the equitable character of my services 2.3 Will indicate to my employer or client with the adverse consequences to be expected if my professional judgment is overruled 2.4 Will not disclose information concerning the business affairs or tecimical processes of any present or former employer or client without consent 2.5 Will not accept compensation from more than one party of the same service without the consent of all the parties, if employed. I will engage in supplementary employment of consulting practice only with the consent of my employer. Relations with peers 3.1 Will take care that credit for the work of others is given to those whom it is due 3,2 Will endeavor to aid the professional development and advancement of those in my employ or under my supervision 3.3 Will not compete unfairly with other; will extend my friendship and confidence to all associates and those with whom I have business relations"

The relationship specified in ethical code will help to facilitate communication and identify needs and expectation. However this code has to be linked with organizing factual information and communicating benefits if necessary or convincing human resources for involvement in achievement.

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2.4.2.3 Organizational and personal learning Malcom Bairidge National Award (MBNQA) includes aspects for employee development in the form of Organizational and Personal learning. 'Organizational learning includes both continuous improvement of existing approaches and adaptation to change... This means that learning is regular part of daily work is practiced at personal, work unit, and organizational levels result in solving problems at their source ("root cause"); is focused on building and sharing knowledge throughout your organization; and is driven by opportunities to effect significant, meaningftil change.'

MBNQA add that the sources for learning include employees' ideas, research & development(R&D), evaluation and improvement cycles, customers' input, best practice sharing, and benchmarking.

Further MBNQA list out the result of organizational learning as enhancing value to customers through new and improved products and services; developing new business opportunities; reducing errors, defects, waste and related costs; improving responsiveness and cycle time performance;

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increasing productivity and effectiveness in the use of all resources throughout your organization; and enhancing organization's performance in fulfilling its societal responsibilities and its service to your community as a good citizen. MBNQA list out the personal learning in the following way education and training job rotation on-the-job training development opportunities that further individual growth

Further MBNQA list the result of personal learning as more satisfied and versatile employees who stay with your organization organizational cross-function learning building the knowledge asset of your organization, and an improved environment for innovation.

If new generic concept or models or methods are available to achieve and demonstrate the achievement of organizations then all the organizations will become excellence organizations!

The human resources should be developed on new concepts / models / methods and the cultural transformation required should be identified to fulfill the gaps in existing theories, concepts and practices.

2.5 Summary Although the organizing is also important when collecting data, without which the factual information cannot be derived from analysis of data and consequently the improvement of process, the family of these standards did not describe the importance of organizing.

Iso 9000 family of standards does not indicate any methodology required for cultural transformation, which facilitate communication of needs and expectation of customers (internal and external) and hence improving the suppliers' performance

Eight quality management principles stipulated in the standard is for top management. The standard does not indicate the relevancy of these principles for other employees. However these principles should also be used for employee development. These are applicable to employees for the effectiveness and efficiency and improvement of system and capabilities (employee development).

The requirement on control of document in

Iso

9001 helps to organize and

control information related with operational aspects. However it does not provide any information or guide how to organize data from monitoring and measurement to identify corrective action or preventive action.

As per my experience the practical aspects included in the data collection and data analysis and these are important and essential for progressing towards TQM and hence it is the foundation or building block to TQM rather than ISO 9000. These are more scientific oriented as it deals with operational aspects on quality. For this effective data collection and data analysis for continuous improvement towards TQM, human resources should be developed and cultural transformation should take place, which will be dealt in chapter 3.

Should the sophisticated training is required or else any simple methodology or approach is available to reduce non-conformities?

In Sri Lanka, some of the companies do not realize the importance of TPM in quality improvement and driving the organization towards performance excellence. These companies do not organize the preventive maintenance schedule and update from time to time for maintenance of quality.

The organizing of data and application of process approach and analysis of critical data on conforming product (in addition to the organizing of non-

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confonning product and analyzing using) and observing trends and deviation and consequent preventive measures will also be necessary in order to apply correct tools for quality improvement whether it is six sigma or TPM The criteria for performance excellence focus on employee development in the form of organizational and personal learning and innovation, the organizing aspects of individual development, which helps towards performance excellence, and generic values for cultural transformation to facilitate communication, which are essential for performance excellence, are not described.

Organizing is expected on top-level managers than operators or middle level managers. However it is important for middle level managers and operators to identify and categorize quality related problems and take preventive measures

Even though the organizing is applied in 5 S, it is difficult to ascertain whether the importance of the organizing aspect is fully realized in the area of Total Quality management. Should the 'organizing' be considered in organizations through which human resources can be developed towards effective and efficient quality management? In what areas (other than in 5 S housekeeping) this can be applied?

Me

However to motivate/provoke human resources what sort of communication should take place and demonstrated is not included in MBNQA or general management.

However the objectives set without considering quality will not be realized due to the quality problems and time spent on errors, defects and waste. Whenever the rejects or rework or errors increases the chances of failure to achieve objectives also higher. In other words

it is always better to set

objective for reducing errors, defects, waste then the objective related to quantity, time and cost will be automatically achieved without any problem. Process of Management (POM) is similar to the one of the seven-management principle factual approach to decision making prescribed in Iso 9000 series of standards. However it does not demonstrate how to overcome inefficiencies by organizing and motivating human resources without communicating benefits or convincing the success to human resources involved specially introducing changes or obtaining involvement for activities which are challenging. The relationship specified in ethical code will help to facilitate communication and identify needs and expectation. However this code has to be linked with organizing factual information and communicating benefits if necessary or convincing human resources for involvement in achievement.

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If new generic concept or models or methods are available to achieve and demonstrate the achievement of organizations then all the organizations will become excellence organizations!

The human resources should be developed on new concepts / models / methods and the cultural transformation required should be identified to fulfill the gaps in existing theories, concepts and practices.

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CHAPTER 3 CONCEPTUAL MODEL AND METHODOLOGY 3.0 Introduction To drive organizations towards quality it is essential to derive concepts from practice rather than deriving models based on failure model Six Sigma derived by American philosophers and building new models mainly Lean Sigma and Fit Sigma based on Six Sigma. As per the problem context in Sri Lankan organizations, given in Figure 1.1 of Chapter 1, appears to be Research on research methodology for TQM as it describe the problems on data collection and data analysis, variables and indicators. However it is important to construct and present this research in a simple form to the operators / quality controllers in the process for successful implementation as they are the human resources involved in monitoring and measurement of the process/processes and identify the weaknesses of those processes similar to the job of a doctor. Doctor talks with a patient to identify the symptom (by monitoring) and then recommending to do selected tests and from the results of the tests confirm the disease. Here what is the different is the processors/quality controllers are playing with the machine while the doctor play with patient. Patient can talk or describe about their problem but the machine cannot do so. This would have been the reason for the Japanese philosophers to construct concept 1PM giving more consideration for machine.

However the productlservice quality is not only depend on the process (i.e. machine) but also it depend on processor. If the process is automated then the

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quality problems are more on machine oriented. If the product/service quality is more linked with skills of the processor then the quality problems are more on processor oriented (e.g. stitching process in garment industry) and due consideration should be given on processor quality.

Therefore it is important to consider processor and process while deriving the conceptual framework for TQM and this framework should be generic to suit to the requirement of Sn Lankan organizations irrespective of the size of organization and type of activities and simple to follow by the processors those who are in the processes/activities.

3.1 Methodology for research 3.1.1 General This research is based on the assumption that the factual, benefit and needs/expectations based communication will help to create a conducive environment to carry out activities successfully and at least help the human resources those who are committed to quality to bring benefits to organizations. This type of communication will help to bring support from personal who are not thinking to identify the benefits, facts and needs/expectations on communication for obtaining support to carry out activities successfully.

The researcher uses the styles of thinking, i.e. postulational style specified in Cooper and Schindler (pp 30-33, 2001) to derive conceptual framework for TQM.

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The Identification of quality problem is itself include operational aspects and therefore the logic can be used to derive the concept for identification of quality problems, and then from which action can be taken, for preventive measures for solution to quality problems. Case studies derived from experience and examples will be referred to link the concepts. How the data collection and data analysis should be carried out in organization is a postulational approach wherein logic is used to define how the data should be collected and analyzed to identify the process/processor related quality problems for producing a particular productlservicc, similar to deriving models in operation research or mathematics. This phenomenon describes how data should be collected in an organization irrespective of size and type of activities to identify quality problems. These postulates derived in postulational thinking can also be experimented or tested scientifically (similar to the experiments in pure science) and proved to be correct. 3.1.2 Logic on establishing truth As per the logic (Chankraborti, 2006), A sound argument requires both that: The argument must be valid And the premises qfthe argument must be true An argument, which violates any of these two condition or bat/i is unsound. The conclusion of a sound argument inust be true... Consistency is an extra requirement from a good argument, deductive or inductive, that its premise set should not be internally inconsistent...

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A set of statements is Consistent if and only if there is at least a possible situation in which evemy member of the set is true. Figure 3.1 - Logic on establishing truth To argue deductively is to try to come up with a valid argument

4. Succeed

Fail

1' Valid

Sound {A!l premises True}

Invalid

Unsound { One or more premises False}

I

Check for consistency among the premises

Source: Chankraborti, 2006

As per the explanation given by Chankraborti, 2006 From a good deductive argument, our expectation is that, if all the premises are true, then its conclusion must be true. This is as mentioned earlier, expectations from deductive arrangements that the premises will provide conclusive support for the conclusion.

Conclusive support means support, which leaves no room for doubt for the truth of the conclusion. ... The joint truth of all the premises can at

best provide partial support in terms of probability for the truth of the conclusion. Figure 3.2 Arguments ARGUMENTS I

p.

Deductive

Inductive

Conclusive support

Partial support

From the premises

from the premises

Source: Chakraborti 3.1.3 Postulational thinking on data collection and data analysis

Figure 3.3 - Overall data collection and overall data analysis

Process 1 I process 2

I

I Prcwe.s I

I

The weakness of a process can be identified from monitoring and measurement. This is true in any case irrespective of the complexity or simplicity of the process. In Figure 3.3, the collected data from monitoring and measurement represent the quality of products/services provided by all the processes and the result of data analysis represents the overall weakness/weaknesses and from this alone prediction of the weakness or strength of each machine is impossible for a

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particular product or service. The prediction of overall problems and taking preventive measures in all processes lead to application of additional controls and measures for the processes for which it may not be required, if individual data collection and data analysis is carried out. This additional work could demoralize operators and hence improper implementation and would have been the result in the companies those who have used statistical techniques on these overall data analysis. Figure 3.4 - Specific data collection and specific data analysis

In Figure 3.4, collected data from monitoring and measurement represent the quality of products/seryices provided by individual process and the analysis represents the weakness or strength of individual process and hence it is easy to identify or predict the process weakness or corresponding quality problem of the individual process. To find solution to the problem the weakness or individual problem should be identified from monitoring and measurement, similar to the identification of patient problem by a doctor from monitoring and measurement. Researcher found overall data collection adopted by the organizations in the past and consequent confusion on identifying quality problems and finding solution to the quality problems.

The correlation of overall data collection and overall data analysis with the all processes and specific data collection and specific data analysis with individual/specific process is an absolute truth, which is fundamental for identification of quality problems and hence identify the activities to solve the problems and lake preventive measures. Similarly the arguments can be derived for data collection and data analysis of individual processes in the line and data collection and data analysis of overall processes of a particular line (at the end of the line) and the weakness of individual process can be identified at the end of each process. Similarly the data collection and data analysis can be co related to specific data collection and data analysis on a particular type of product/service of a particular process and overall data collection and data analysis of all the products/services of the particular process as the non-conformity arising in a particular process vary product to product.

Therefore data collection and data analysis should be specific providing description of lines, description of processes of a particular line, type of products/services manufactured and non-conformities for products/services. The data collection form should be designed to incorporate the following aspects Line Process 9

Product

we

Non-conformity This is the Researcher's data collection and data analysis theory and is the foundation for TQM paradigm change. In earlier more importance is given to either statistical techniques and tools or machine oriented maintenance (TPM) and in new paradigm change, statistics need not be used and the quality problems can be identified, using data collection and data analysis theorem, and co-related to machine, method, material, processor (skill related) and components of machines and in worst condition the necessity to re-engineering (machine) and restructuring (processes) for quality can be performed if the non-conformities are occurring randomly from sigma calculation. This will help to bring organizations, towards Six Sigma or Lean Sigma; other philosophers have already established these concepts. The direction lead by other philosophers cannot be applied to any organization irrespective of the size or activities but this is simple method can be used and applied by ay organization.

3.1.4 Sampling The main aim of sampling is to identify the quality problem and hence find solution to the quality problem. The quality problems appear when there are changes in the process, processor or environment of the system. So therefore the sampling also should be tighten at the initial stage of the changes to establish controls required for productlservice. The random sampling will not help to establish quality problem due to the change of this assignable cause and this

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would create non conforming product/rework/rejects during the period from introduction of changes to the sampling and consequent identification of quality problem.

3.1.5 Selection of indicators or measures Most of the quality problems are either processor related or process related. Therefore it is important to select proper indicator for process (machine) and processor. To identify the processor related quality problem, the rework/rejects related to the processor has to be identified and these non- conformities should be related to the skill of processor in terms of percentage. In data collection format, the identification of processor should be included and non-conforming product arising in the process should be related to the processor. The skill of the best processor can be interviewed and the methods or attention or special care taken on the activities can be identified and communicated to other processors of the same or similar process to improve the product/service quality

by reducing non

conformities.

The process related quality problems arise due to the wear and tare of moving components or break down of machines. Sri Lankan organizations identify down time (in h) as an indicator for machine breakdown or stoppages. This is fairly a good indicator for measurement of productivity. However it is not a good indicator to identify quality problems as reducing tendency in downtime can be either due to the performance improvement of maintenance personal or reduction

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of the number of breakdown or stoppages. To identify the quality problems, the break down and stoppages should be counted in terms of numbers and categorized to the failure of components/parts of machines.

Therefore the unit of

breakdown/stoppages should be in numbers (i.e. the unit is in numbers) and these breakdowns/stoppages should be categorized and correlated with the type of maintenance activities required for prevention of stoppages/breakdowns.

Preventive maintenance schedule Sri Lankan organizations have planned permanent maintenance schedule for maintenance activities of process (machine). For example the maintenance activity is carried out once in three months without any up gradation considering breakdowns and stoppages. In reality the maintenance schedule also should be upgraded from time to time to reduce the stoppages and breakdowns and thus reducing quality problems. The proper data collected on number of stoppages and breakdowns and categorization of these stoppages and breakdowns will help to investigate whether the maintenance schedule have provision to carry out maintenance activities for those types/categories of breakdowns/stoppages, if not the maintenance activities for these breakdowns/stoppages should be included in the maintenance schedule and the maintenance personal involved in maintenance activities should look at whether these maintenance activities will help to run the machine during the running time without any breakdown or stoppage. Maintenance activities should complete prior to starting the machine and the aim of the maintenance activities in the maintenance schedule is to carry out the

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maintenance activities to avoid stoppages and breakdown during the running period and thus avoid quality problems oriented with machine/process.

3.1.6 Study on the extent of application of the new concept of TQM Two organizations were selected to determine the extent of application of the TQM

3.2 Data collection and data analysis 3.2.1 Data / information collection Planning for data/information collection Personnel involved in data collection should plan considering the supporting activities on data/information collection such as data/information analysis, monitoring and measurement, customer feed back, designing data collection format and decision-making.

Data/information analysis The data collected in the data collection process should be considered on needs for data/information analysis. If it cannot be analysed to identify the weakness of the process or predict the strength of the process then the purpose of data collection is lost. To facilitate it the personal in the data collection processes should detenriine, how the data should be organized and accordingly how the data collection formats be designed. Data collection format can also incorporate considering expansion activities of QMS system. In addition to this the

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informationldata collected should be adequate and clear to identify the issue, whether it is in the system/process/processor/product or whether it is customer related/supplier related/organizational related. This will help to take preventive/corrective measure for preventionlrectification of issues.

c) Monitoring and measurement Monitoring and measurement can be performed in process/product/system. For monitoring and measurement sample is selected. In certain cases 100 % inspection takes place to ensure quality related to performance, safety and health. In Quality Management System (QMS) sampling varies depending on the type of activities. In certain situation, e.g. extrusion process, personal should closely monitor to ensure product quality at initial stage. In case if there are variation of material quality, the monitoring and measurement should be synchronized (please refer 4.1.2). The datalinfoniiation collected for control of processes should be separated from improvement purpose to identify the projects for controlling and improvement respectively. I found that a company could not identify a project for controlling purpose as it is prioritising the projects from overall information on both controlling and improvement together.

d) Data collection format To organize the data collection, the data collection format should be designed to include the lines on the system (for example in a hospital there are so many service lines such as outpatient, heart patient, eye patient etc.) the processes in a

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particular line, the type of product/service on particular process and the type of non-conlbrmities related with particular product or services etc. Data collection formats will vary depending on the number of lines, processes, type of products and type of non-conformities on particular product/service. To improve the data collection format, the categorization on customer feedback also can be categorized and crosschecked whether the format is adequate to collect data for all customer feedback. If the format is not adequate, then it can be revised to suit the customer feedback.

e) Customer feedback Data collection is an important process in any system, which should consider aspects related to feedback on the customer requirements and customer satisfaction. These requirements and satisfaction are translated into specifications for monitoring and measurement. The satisfaction level varies with regard to perception. Perception is related to the variation of knowledge, skills on fulfilment of requirements. Fulfilment of final customer (i.e. consumer) requirements are sometimes depends on series of distributors. An organization may have a series of customers and the variation on knowledge, skills of the customer/consumer result in feedback. Feedback can be the non-fulfilment of requirement by the organization or lack of knowledge/skill on customer. Therefore an organization should identify whether the feedback is in reality a nonfulfilment by the organization (i.e. fault on the organization side) or lack of

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knowledge, skill on customer side (i.e. fault on customer side) and this will help to determine the action(s) to be taken.

I') Decision-making To make firm decision the summarized information/data collected should be clear and specific. In addition to this, the summarized information/data should be supported with facts. Data/information collection needs for effective decisionmaking can be categorized are as follows: ii

for identification of issues on the product/process/system and what short of data should be collected and whether these data is for controlling or improvement purpose. to show the improvement/control with facts before taking an action and after taking an action. This will help to decide on the effectiveness of the action taken and strengthen the management review process to collect information or data in detail to make decision on whether the issues are customer(s) relatedlprocessor(s) related/process related/system related,

V.

to include the customer feedback on data collection forniats, if these feedback is not included in the data collection format then by upgrading the data collection format, to strengthen the data collection process

vi.

This will help to analyse data: to identify and classify major issues on the system/processes;

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on improvement/controls to be made for effectiveness of the processes/system with clear demarcation and supporting facts to make finn decision on the extent of effectiveness on processes/system; and for further improvement to be identified from the management review, in the form of continual improvement plan for the next duration. This continual improvement plan, define responsibilities and targets, can be circulated to the relevant departments and employees who will have clear picture on issues. The issues or project identified are revealed to internal environment will help to obtain involvement and support in the form of ideas for further improvement.

As per the interview with a marketing executive, monitoring of product in a supermarket in a foreign country, he said that the brand of the product arrangements appearance was not good enough. Then the researcher asked what about the other similar brands of products arrangements appearance. He said that he did not observe. Then the researcher asked him for an effective decision making on the identification of fault (whether it is on the supermarket employees or whether it is on your company side) would you require further information on the appearance of other similar brands of products? Then he replied yes.

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Figure 3.5 - Data collection system for TQM

Feed back Decision

g

collection process

Data collecti formats

IF

Monitoring and measurement

I

I

3.2.2 Data I Information analysis a) Introduction Data/information analysis leads to identification of process issues with facts or improvement with facts for the effectiveness of action taken for a particular issue. To identify the issue, both the data collected should be specific and analysis also should be specific. The results of overall data analysis provide a picture on overall issues and from which it is difficult to identif' the issues in the processes or products/services. The data collection and analysis should focus on the type of decision we are going to make. Mostly when we use statistical techniques we predict population from sample. This tendency could lead towards concentrating on analysing overall data and predict the overall defectlnon-conformity of the population. In quality related area to find the quality problem and make decision, analysis also should be specific (i.e. identifying issues and finding facts for

improvement rather than predicting the overall issues). 111 the past most of the organization collected overall data and made overall analysis, so the improvements made were temporary and it varied from time to time. As per my experience, change on the thinking process made changes on data collection and data analysis, by the way of asking open ended and close ended questions in Quality Management System (QMS) audits. The certain changes were brought in Sri Lankan Industries including multinational companies and the claim of these companies is that the non-conformity of their company is lower than even in the companies in the developed countries also.

b) Management review The success of the management review meeting depends on How the issues are forwarded to the management review with facts. This information is required to identify the resource requirements and improvements to be identified for the future How the improvement made are forwarded to the management review meeting with facts on previous situation (before taking action) and present situation with facts (after taking an action) This information is necessary to evaluate the effectiveness of the system The process owners should communicate this type of information to make effective decision. In ISO 9001: 2001 the issues and improvements made are discussed on inputs and the decisions are, in the form of improvements to be made and resources required, are given as output. As per the researcher

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observation, the management review, in most of the ISO 9001: 2000 certified companies, is taking place on just discussion and evaluation; on the effectiveness of the Quality Management System or improvements to be made identified from the issues, from the minutes of the management review meeting; is not clearly indicated.

For an effective management review meeting the organized information / data on issues or improvement should be forwarded for discussions.

Figure 3.6 - Management review

Management review

I

No

I

Issues

Improvements & resources

c) Process and the processor related If the data collection and data analysis can be categorized and segregated to identify the issues or future problems of a particular process, then it will be easy to identify issues or potential issues whether they are process related or processor related or material related or method related or system related. Once the linkage is identified, the problem should also be identified whether it is due to assignable cause or random cause. Then cause for the problem and action to be taken can be easily identified in case if the quality problem is appear suddenly, i.e. problem is due to assignable cause. The cause and effect diagram or statistical techniques should not be used for assignable cause as it

appears suddenly due to the changes in the processor or process or system. Corrective action and preventive action can be taken to avoid recurrence of the problem or occurrence of the problem due to assignable cause (see Figure 3.7).

If the random cause is related with process theii Business Process Reengineering (BPR) can be used. Process capability is not good and the process is consistently produce non-conforming product then the process should be re-engineered. To ensure this the statistical techniques should be used to determine the process capability and hence the process weakness. Business process re-engineering can also be identified if there is more nonconformity in case of the absence of assignable cause.

The results of the Business Process Restructuring, Business Process Reengineering, Total preventive maintenance! Total Productive Maintenance, Human Resources Development, Corrective Action and Preventive Action are the knowledge, Method study and process study which can be used, in similar incidents or areas without repetition or reinventing. However Sussland (2003) criticized the restructuring and re-engineering as follows: 'Waves of restructuring and re-engineering have left many an enterprise with incongruous procedures, a patch work of processes, and ultimately in a strategic quandary'

RE

This may be due to application of re engineering without identifying whether it is assignable cause or random cause for the issues.

Processor related analysis Figure 3.7 - Data analysis —Process and the processor related Data collection and analysis system

Processor related

7Process related

1 Random causes

Assignable [causes

Random causes

Business process Re-structuring 1 Method study

CA, PA, HRD

Business process Re-engineenng

Process study

Knowledge Management

6 , Lean sigma, Fit sigma

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Assignable causes

Processor related issues are the issues or future problems linked with errors or mistakes that has been made or could be happen in future and result in nonconfonriity. This also can be categorized into type of non-conformities on a particular type of service-oriented organizations. The best way of collecting data and analysis can be done by the personal involved in the process. The honest or genuine way of recording non-conformity by the processor will help to analyse the errors and mistakes and improve service quality (please refer 4.1.4 case study 4)

CA-Corrective Action, PA-Preventive Action, HRD-Human Resource Development, TPM-Total Productive Maintenance or Total Preventive Maintenance, BPR- Business Process Re-engineering or Business Process Restructuring

If there are complicated quality problems on processor related analysis and variation on the causes to the problem then the process should be restructured (Business Process Restructuring). The restructuring may be by adding activities or dividing activities to solve the quality problems arising related to the processor issues or method study for improving the procedure used by the processor (please refer 4.1.2 case study 2)

As per the researcher's observation in one of the testing laboratory, the report is written by officers by hand and then sent for preparation by the typist in the

computer. Here the errors and mistakes may arise due to officers or typist. The total quality problems are addition of both of the quality problem of typist and officers. There may be arguments also arising that changes have been made for correcting the errors or mistakes. Training the employee on word processing and preparation of reports in the computer can solve this type of problems rather than writing reports.

In an another instance of researcher's observation during an audit, when installing circuit breakers in the panel board to be used for distribution and control of electricity to various motors and processes, there are so many numbers of 16 A miniature circuit breakers and 6 A miniature circuit breakers to be installed. It is difficult to differentiate the 16 A breakers and 6 A breakers as the appearance is same and the ampere rating are written in small letters. There are mistakes and errors on installation of 6 A instead of 16 A, and vice versa. This issue has been solved by first highlighting the 6 A breakers in the drawing diagram and distributing the 6A for installation. Then the inspection is carried out for errors and mistakes on installation. After that the 16 A circuit breakers is distributed for installation. The dividing activity and performing inspection helped to reduce errors and mistakes.

Process related analysis Process related issues are the issues or future problems on breakdowns or wear and tear of the machine parts touching the material, which could result in product

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non-conformity. The frequent stoppage and breakdowns of the process (machine) can lead to increase in non-conformity or rejects. First it is necessary to identify whether the issue is due to an assignable cause or random cause. The action to be taken for assignable cause is different from random cause.

As per the researcher experience, observation on records, data collection and data analysis result, in one of the PVC water pipe manufacturing company revealed that the major problem from Pareto analysis is the edge defects at the end of the PVC pipes. The edge defects are due to cutting problem and the reason is the deterioration on the sharpness of the blade. During the audit I realized that, it would be the result of poorly organized maintenance schedule. When 1 interviewed the maintenance personal, he said that once in three months they do the maintenance. However the running time of the extrusion process is couple of days. From the way of asking questions the maintenance personal realized that the following should be done to reduce the edge defects. To include the inspection of blade in preventive maintenance schedule, i.e. the preventive maintenance schedule was up graded to include the inspection of the sharpness of blades to identify whether this could help to avoid edge defects during the running time of the extrusion process To change the frequency of preventive maintenance schedule to suit to the requirements of running time of the process, i.e. the preventive maintenance is performed before starting the process and the main aim of preventive maintenance activities is to look at the machine components and moving parts

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to check whether these will help to support production activities, without damage or breakdown to avoid stoppages or quality problems (e.g. edge defects) during the running time.

When we carry out data analysis on process related problems, it is necessary to look at whether it is due to random cause or assignable cause. In this case the edge defect is the problem with an assignable cause. As per my observation I found in some cases where the quality problem, is not identified whether it is due to assignable cause or random cause, and leading to assigning factors that can cause the problems based on the assumptions without any facts and inclusion of weighing indicators for the factors from the team members for priontisation and which can be leaded to a confusion and complex situation to bring solution to the quality problem.

If it is assignable cause, then it can be possible to identify the root cause to the process problems, hence the action to be taken to eliminate the root cause and solutions to the issues.

If it is random cause then it might be due to the problem of the particular process capability or the problem of the previous process controls or capabilities (Please refer 4.1.3). If the output of the previous process is well within the specified limit and there is no assignable cause then the process should be reengineered, i.e. business process reengineering.

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To facilitate the relationship of the quality problems on the product with the parts or components of the machine it is necessary to either have personal who are familiar with machine designing/maintenance aspect and knowledge on identification of the quality problems throughout the processes and relate it with machine problems, i.e. the Total Productive Maintenance or Total Preventive maintenance or have personal who are working throughout the processes and maintenance/design department and quality department has to build an internal communication process and team effort to logically organise the data collection and data analysis to clearly identify the problems, root causes and solutions.

The solutions to the process related problems are in the form of information or database to be used in the system in similar situation forever to avoid recurrence of the non-conformity or prevent occurrence of non-conformity.

d) Non-conforming or conforming data Conforming data is the data, which fulfil requirements to the specification (product or service). These data can also be analysed to observe the trends and preventive measures in case if there is a tendency for future non-conformance.

Non-conforming data is the data, which is generated from non-conforming productlservices including customer complaints. These data can be analysed and corrective action can be taken to avoid the recunence of non —conformity.

e) Objectives Weakness of the processor/process can be identified from data analysis. The measure of the indicator is the determinant of the strength/weakness of the process. The measure indicates the present level or measurement of the indicator. The root cause can be identified for this weakness and once the action is determined and taken to rectify the cause then the probable new measurement of the indicator will improve. The existing measure or level is the existing target or objective and the new improved level or measurement will be the new target or objective to be achieved. For example, from data collection and data analysis, if a particular type of PVC pipes line produces 5 percentage of edge defect due the deteriorating effect of the sharpness of blade out of 8 percentage of overall defect then the existing quality objective will be —8 percentage and expected quality will be - 3 percentage

As per my observation there are tendency on setting targets or objectives on quantity. Targets and objectives should always be focused on quality instead of quantity. If our aim is quantity, then there are possibilities on not concentrating on controls or measures to be applied for maintaining the quality. This leads to reject/rework and hence achieving the required quantity to fulfil customer needs

and expectations. Rework or rejects needs additional time to be spend and hinder achieving target quantitatively. If we focus on qualitative we need not worried about quantitative target, as these will be achieved with performance improvement by reduction of additional time spent on rejects and rework. Figure 3.8 - Data analysis system for TQM

Management I review P.

a!i___]

I I Process and processor I related

Non-conforming / . conforming data

Objectives Datalinformatjon collection

3.3 Organizing for quality 3.3.1 Organizing activities towards customer needs and expectations The generic customer needs and expectations (irrespective of the size or complexity of organization) are quality, quantity, cost reduction and delivery. As per the definition quality is the degree to which a set of inherent characteristics fulfill requirements (i.e. needs and expectations). The agreement on the requirements to be fulfilled is taken place at the initial stage of customer related processes for the market segment or target market identified. Due to variations organization may find conformance/non-conformance on products delivered. The

non-conformances are non-conformities or defects and reduction of these nonconformance or defects; help the employee to refrain from rework or additional work to compensate the production of defected products. The employees save time and the productivity improves and leads towards performance excellence. 'Customer-driven excellence means much more than reducing defects and errors, merely meeting specifications or reducing complaints. Nevertheless reducing defects and errors and eliminating causes of dissatisfaction contribute to your customers' view of your organization and thus also are important parts of customer driven excellence, In addition, your organization success in recovering from defects and mistakes ("making things right for your customer') is crucial to retaining customers and building customer relationships.

Customer-driven organizations address not only the product and service characteristics that meet basic customer requirements but also those features and characteristics that differentiate products and services from competing offerings. Such differentiation may be based upon new or modifiedofferings, customization of offerings, multiple access mechanisms, rapid response, or special relationships. '(MBNQA, 2004)

On the other hand the organization also benefited by reducing the loss due to rework or additional work to compensate the defected products. The employees could be motivated as the management can convince them that their rework or defects or additional work need not be performed if they provide preventive

action by identifying potential non-conformities or problems and take proactive action. The incentive scheme also could be introduced to motivate the employees by setting targets on reduction of defect rate or non-conforming rate.

Work-study or motion study and application of the suitable results of this study will help to bring down the time, and the operational strategies (see the following table). It can be followed to reduce the cost.

Quality can be inculcated by group activity/activities or individual activity/activities. When the employees are new to job on-job training helps employees to familiarize with the knowledge and skills used by experience employees. Then they start to carry Out activities and might face quality problems, as they are new to job, until they identify possible defects or errors on the output of their process/processes and improve their organization capability.

3.3.2 Organizing role of marketing departmentlsection It begins in the Marketing department in the form of obtaining information (i.e. identification of needs and expectations of customers) and transferring information to Design and development department, which design or develop product or service to incorporate needs and expectations of customer. The needs and expectation can be categorized in several ways as follows: a) As per marketing management (Kotler and Armstrong, 2004) Core needs and expectation (core value creation)

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Additional needs and expectations (additional value creation) Augmented needs and expectation (installation, warranty and after sales service)

b) As per

Iso 9001:2000 Requirements specified by the customer, including the requirements for delivery and post-delivery activities Requirements not stated by the customer but necessary for specified or intended use, where known Statutory and regulatory requirements related to the product, and Any additional requirements determined by the organization

Depending on the buyers' behaviour and purchasing power, availability of product/ services in the market, statutory and regulatory requirements, requirements for specified or intended use, the needs and expectations that can be incorporated by the organization in product or service and information on cost involved on incorporation of needs and expectation in the form of product /service; marketing department is required to organize information on needs and expectations, which can be fulfilled with conesponding cost involved for identifying target market with competitive advantage.

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3.3.3 Organizing role of design I development department The role of design/development rest in translation of needs and expectation identified by the marketing department and coordinating with manufacturing department to identify and provide required product or service.

Figure 3.9 - Design/Development process

Inputs

Lsjgn / Development Process

Outputs 0.

I

44

Feed back (in the form of review, verification, validation)

The major role of design / development department is to review, verify and validate the design/development output. In review the role of design/development department is to review, i.e. to evaluate the ability of the results of design/development to meet customer requirements and to identify any problems and propose necessary action. In verification the design and development department ensure that the design and development outputs have met the design and development input requirements. In this situation the manufacturing department is also able to provide sample product/service, if necessary, which meets the design/development output requirements.

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In validation the department ensures that the resulting product is capable of meeting the requirements for the specified application or intended use. The validation may happen with the confirmation of sample submitted to the customer/client or it could take place prior to the delivery or implementation of the product/service delivery.

Validation may or may not take place with the interaction of relevant functions of departments (such as marketing and design/development) with customer or client. Information on changes on review, verification and validation should be approved and controlled in order to produce product/service to fulfill the intended use or application.

3.3.4 Organizing role of production department

Figure 3.10 - production process

Input

Processor

Output

Lmcess I

feed back

The production department's major role is to produce products/services in which the needs and expectations of external customers are incorporated. These are based on the review of requirements related to the product/services and customer

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to the product/services and customer communication made by marketing department and, if necessary, the new products which can be manufactured as per the agreement with designldevelopment department. In this the production department is required to manufacture product as per the technical requirements. These technical requirements are requirements related to product/service to be provided, and identified from customer needs and expectations and translated.

Figure 3.11 - Sub processes of Process

Process Input

I Sub Process

'Sub process_H

Output

The process of producing a required product may or may not require one or more sub processes depending on complexity of machineries or equipments used for production. The technical requirements of each sub processes should be identified by production requirements In addition to these the production departments should organize to monitor and measure the following: Work instructions, as necessary The maintenance of machine/equipment for reduced number of nanconforming product The availability and suitability of monitoring and measuring devices

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. Identification of suitable check sheets to collect data, i.e. the type of machine/process line, type of product, the type of non-conformity and the mould number if required.

Note: - for identical machine or process lines the same check sheets may be used for same type of product.

The product or service from each process or sub process is the result of the interaction of the machine/equipment used for the process or sub process and the operator.

3.3.5 Methodology for reduction of defect/non-conforming product The information in this methodology is obtained from conceptualization of framework for TQM. The operator involved in the process or sub process should Segregate product conforming and product non-conforming - to ensure that product which does not conform to product requirements is identified and controlled to prevent its unintended use or delivery and release of conforming products, delivery and post delivery activities Organize data on product confonning to observe trends or variation and then identify controls required. Organize data on non-conforming product to identify the type machine/line, the type of product, type of non-conformity. Then identify corresponding machine weakness to the consequence type of non-

conformity. Rectify the machine weakness for prevention of nonconforming product immediately if possible or amending preventive maintenance schedule to incorporate measures to prevent the weakness during the cycle time in future. Organize with maintenance department by inclusion of preventive measures in the preventive maintenance schedule to bring the breakdowns/stoppages to zero level from past experience - it will help to reduce the waste of material and down time due to the breakdowns/stoppages. Organize with maintenance department to prevent non-conforming product by inclusion of preventive measures in the preventive maintenance schedule to bring down non-conforming product to zero level. Identification of changes, which could occur during the time of production and introducing sampling to monitor and control non-conformity of product (please refer case study on process synchronization). Identification of needs and expectation of customers through customer chain management (Please refer case study on customer chain management) Organizing operations of operators to reduce the non-conformity of operator to zero level. (Please refer case study) Introducing method/work study to improve the efficiency.

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Devising strategies for continual improvement. (Please refer strategies on continual improvement)

In process management the machine capability for different type of products can be identified and as per this information the processes can be selected and managed for performance excellence on various type of products.

3.3.6 Organizing operational activities and quality in complete process and sub processes. Organizing jobs (job coordination) can happen in two ways. Firstly it occurs by co-coordination between individuals specialized in the sub processes or sub activities of complete process (starting from customer and ending with customer). This type of job co-ordination result in increased co-ordination of activities and hence job enlargement leading to job enrichment. This is suitable if there are more jobs to be performed on single sub process or activity. Quality problems for the output of the sub-process may be from customers' chain and for the input of the sub-process may be from suppliers' chain. To solve the quality problems of this type of complete process the processors are required co-ordination of the manger/managers conversion with the complete process.

In this process the customer needs and expectations are communicated through series of process owners and the gap on communication is more and there are c/mance.s for misleading information on customer needs and expectations. In this

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type of processes better communication fitcilities with relationship to he build up. (Please refer 3.2)

Secondly it results in single individual specializing in all the sub processes of complete process (starting from customer and ending with customer) and coordinating activities of similar series of activities in order to eliminate repeated activities. In this the process starts with customers supplied samples/information and end with delivery of products/services to the same customer. The saving of setting time by coordinating five similar series is given in table 3.1. Table 3.1 - Reduction of setting time One setting and five test

Five setting and five testing

Saving of four setting time

Loss of four setting time

The process owner can easily manage the quality problems, as he/she is conversion with the sub processes of the complete process as he/she is the entrepreneur for the business process. If necessary he/she can have meeting with the other owners of the similar processes to short out quality or operational problems.

In complete process the gap on communication is less, as he/she is involved directly with the customer communication.

For operational efficiency either one of these process can be selected. It can be argued that the required job specialization depends on the frequency of similar activities.

If the frequency of similar activities performed by employees is less then the organization depends on specialization of employees on dissimilar activities in order optimize the employees' utilization.

If the frequency of similar activities performed by employees is higher then the investment on specialization of employees by the company on dissimilar activities may not contribute employee's utilization, as they may not have required time to spend their time on all the specialized areas. The extent of employees' specialization depends on the frequencies of similar activities performed by employees.

If the organization is planning to invest on specialization of dissimilar activities (Portfolio management), for a long-term survival in a highly competitive environment then the organization may require specialization based on the portfolio planning. Thus job specialization indirectly linked with cooperate planning and strategies of an organization. The investment decision depends on various factors such as commitment, talents/ capabilities of individuals in an organization.

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Customer needs and expectations are communicated through series of process owners and the gap on communication is more and there are chances for misleading information on customer needs and expectations. In this type of processes better communication facilities with relationship to be build up. (Please refer 3.4)

In complete process the gap on communication is less, as he/she is involved directly with the customer communication.

3.4 Quality in communication 3.4.1 General It is important to device methodology for development of quality in communication, as it plays major role in influencing the personal towards quality. What is the best methodology, which could assist employees to develop faster towards quality in communication? Communication should always be focused on needs and expectations of customers to identify the needs and expectations and the extent of fulfillment of needs and expectations. Communication patterns, understanding and interpretation to a particular situation may differ depending on the following factors. Organizational culture of employee - i.e. knowledge, skills and experience which make individuals/groups to devise certain norms, values, policies and strategies to carry out organizational activities for fulfillment of organizational needs and expectations.

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Individual culture of employee - which is derived from individual values, norms, policies and strategies Social culture of employee - which is derived from social values and norms within which the employee born and grown (it can be observed at the initial stage of the first employment) Group culture of employees - which are accepted norms and values for the group needs and expectations. Similar to the needs and expectations of customer, employees in an organization also have several needs and expectations and the priority of needs and expectations also differ from time to time. An individual in an organization may find difficulty on selection of suitable theory on needs and expectations or implementationlapplication of needs and expectations theory, when he/she came across during his/her studies on organizational behaviour theories such as Maslaw's Hierarchy of needs, X and Y theory, two factor theory etc.

3.4.2 Methodology for Identification of needs and expectations and establishment of relationship for better communication How can this needs and expectations be identified? Can the established relationship be helpful to identify needs and expectations?

The establishment of relationship is dependent on identification of basic norms and values of individual6v, and respecting the identified norms and values of those indiviclual's), which has to be followed and experienced in clay-to-day

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activities. This creates trust and this trust further strengthens relationship and facilitates communication. The communication help to identify needs and expectations of individual(s) and fulfIllment of these identifIed needs and expectation further strengthen the relationship. Inconsistency between words and actions decrease trust. (D McGregor,) Trust involves making oneself vulnerable as when, for exwnple, we disclose intimate information or rely on another 's premises. (I K Ran2pel, J G Holems and M P Zanna)

Though there are more theories on needs and expectation, for an applied researcher/manager need not categorize the needs and expectations based on needs theories, however he/she should identJj.' the importance, and prioritize those needs and expectations and help the employees to achieve those needs and expectations.

The benefit-based communication facilitates to establish and maintain the relationship and improve the organizational culture by bringing norms and values for stakeholders of the organization.

The following abstract observed by the researcher from various industries depicts how an organization should communicate to couple organizational needs and expectations with individual needs and expectations for achievement of both introducing motivational incentive package, which will fulfill needs and expectations of individuals or groups of employees.

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The different incentives schemes are used to motivate employees are listed as given below based on organizational needs and expectations: Individual performance based incentive scheme - more suitable for activities, which are performed by individuals, for which the involvement of the other employees are minimal. The individual performance can be easily measured. The process is simple and minimal interaction with other key processes, (internal) e.g. training and system certification. Group performance based scheme - more suitable for activities, which are performed by individual, or group for which the support of other individuals or experts in the same field area is required due to its nature of high technology, knowledge, skills and experience. These key processes interact with other key processes (internal) and its success depend on linkage with other key processes, e.g. testing activities, import inspection and certification activities are highly depend on the availability of national standards and testing facilities for which knowledge, skills and experience of staff involved in these key processes should be shared and their should be effective communication of information and expertise among these processes. Time or attendance based incentive scheme - more suitable for continuous production lines running throughout without interruption.

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The productivity of these processes will be affected if employee is late or their attendance is poor. d)

Incentive based on overall income /protit - It is introduced in most of the private sector organization and paid as bonus (e.g. two month salary as bonus based on profit and will be decided by the management). Fixed amount of incentives - Same amount of money to all employees, which is, implemented in most of the semi-government organizations.

3.4.3 Communication to carry out organizational activities To carry out organizational activities, the information on needs and expectations of customers' chain should be identified and communicated. In addition to this suppliers' data on quality is needed to control and determine the effects on customers' chain (please refer case studies given in 4.1.1and 4.1.3 respectively).

3.4.4 Communication gap and its effect on quality Now let us analyze if there is any communication gap exist between subordinates and colleagues or between the suppliers' chain or customers' chain. To whom employees will communicate quality related problems and how they will solve quality related problems. As per the researchers experience most of the employees like to communicate with the employee who maintain confidentially on information, which might affect them. (Please refer 3.4.2).

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3.4.5 Facts based communication In addition to the maintenance of confidentiality, the quality related problems; could be identified by listening and observation also. The facts related with the problems could be identified in the listening and observation process and these can be communicated to clear the perception related with quality. If facts cannot be established then the problem be noted and kept for future analysis.

Effective decisions are based on the analysis of data and information (SLS ISO 9004 : 2000). Information communicated by individuals can be classified as follows. Facts based information which can be convinced Facts based information can not be convinced Information is not on facts based Polarized information (talking on extreme side, i.e. optimistic, or pessimistic) Some times the communication pattern prevails in extreme level and leads to confrontation among employees. For example, an employee may talk that one person know the excel software package and the other person do not know the excel software package. But in reality both of them know excel but their extent of knowledge on excel differ. Information is not clear

Information is focused on a single specific reasoning, not considering other reasons. These patterns are based on the factors given in 3.4..1 However the organizational information should be facts based for fulfillment of customer needs and expectations for survival, retention of customers, customer loyalty and customer referrals.

3.4.6 System based communication The development on the way of communication (i.e. quality in communication) is also an important in human resource development. If each and every employee is communicating facts based inforn-iation on system perspective rather than individual perspective then it will not create quality problems in organizations. But unfortunately it doesn't happen. On the other way, the system-based problems are co-related to personal related problems, which are conveyed and talked frequently in organizations.

Total Employee Involvement (TEl) leads to identification, analysis of quality related problems in organization to find solution to problem(s). If the human resources are not developed and the communication on reality is not taken place, then how can an organization compete in a competitive environment to provide better quality to satisfy customers than other competitors?

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3.4.7 Innovation based communication When the information is not clear, then more data/infonnation should be gathered and logically organized to find facts. These facts should be convinced with logical reasoning (please refer 3.1.2).

3.4.8 Benefits based communication In most of the companies, most of the employees are reluctant to change, as they feel that the change may create problem or that they will not be able to adapt for the change. In this case the factual information should be created to convince that the change will not create problem or adaptation to change is easier and it will help to carry out activities better.

3.4.9 Needs and expectations based communication Some of the individuals are always identify the needs and expectations of communication patterns preferred or not preferred by other individuals and act accordingly.

3.4.10 MethodoLogy for development of quality in communication The following aspects or steps are needed for development of quality in communication, which is established as per the researcher experience and found,

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to be suitable to use. It is based on the assumption that the huirian resources are rational and act for beneficial to the individual and all stakeholders. Identification of needs and expectations of customer/client Identification of benefits for all stakeholders involved and facts related to the benefits and communication of benefits and facts to obtain involvement Identification of information to be communicated which should be fair to the all stakeholders Arrangement of activities to fulfill the need and expectations of all stake holders Maintenance of confidentiality and thus create trust

For example in quality problems there are opinion among the operators/and quality controllers that the finding solution to quality problems needs a vast knowledge on quality and it is difficult to find solution to the quality problems

In reality identification of quality problems depends on how the processor collect data, analyze the collected data and relate the quality problems to identify the real root cause rather than using advanced statistical tools and techniques and utilization of unnecessary resources which will demoralize and de-motivate those who are involved in the process. This simple method will help to encourage and motivate the processor, as they need to develop knowledge on few simple organizing techniques.

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Then the action to prevent the quality problem can be easily identified this will bring a lot of benefits for the stakeholders as follows: Benefits for the operators/quality controllers Time saving - time to be spent by the operator on rework and reject can be saved Morale improvement and confidence due to the win situation - doing activities right at first time No conflict as every things go on a correct manner Job is secured as the organization gain competitive advantage Improved capability and hence more demand in the job market Opportunities for sharing increased benefits to the organization Benefits for the investors and managers Improved benefits by utilizing resources economically Increase in output The stock of material can be reduced and thus the improved cash flow Improved work environment with capable and efficient quality conscious employees Competitive advantage - reduction on cost of production Precautions on communication When the processor related data is collected, the operator might perceive that the data/information collected may be used to couple by the management on determination of individuals rewarding system. In reality if the management do the same for individuals rewarding system then there are possibility of hiding the

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correct data1information and then hindering the improvement of the system For this purpose management should not coupled individual rewarding system with skilled related non-conformity and they can introduce other rewarding system for innovation. The most important aspect is accurate data/information and it has to be communicated to the processors that the data is collected for their development needs and everyone learn and improve as no one can be an expert on all the aspects. There is possibility of the processor perception that the increase on work might appear if the allocated work is completed early.

The establishment of relationship is dependent on identification of basic norms and values of individual(s) and respecting the identified norms and values of those individual(s), which has to be followed and experienced in day-to-day activities. This creates trust and this trust further strengthens relationship and facilitates communication. The communication help to identify needs and expectations of individual(s) and fulfillment of these identified needs and expectation further strengthening the relationship. Inconsistency between words and actions decrease trust. (D McGregor) Trust involves making oneself vulnerable as when, for example, we disclose intimate information or rely on another's premises. (J K Rampel, J C Holems and M P Zanna)

Though there are more theories on needs and expectation mainly maslow's hierarchy of needs (Robbins, 2003) for an applied researcher/manager need not categorize the needs and expectations based on needs theories, however

lie/she should identify the importance and prioritize those needs and expectations and help the employees to achieve those needs and expectations.

The benefit-based communication facilitates to establish and maintain the relationship and improve the organizational culture by bringing norms and values for stakeholders of the organization.

3.5 Cultural transformation of work life The Lecturer (W A Sussland) identified strategies for process of management (POM) and listed as follows Strategy fundamentals "Doing the right thing" Strategy dyiamics

J

Strategy implementation review "Doing the thing right" Strategy audit "Doing the right thing right" To facilitate the data collection and data analysis and consequently the identification of root cause and action to eliminate the root cause for solution to quality problem and effective implementation, the following important aspects should be considered. Respect the needs and expectations of customer (internal and external) Help to achieve needs and expectation of customer (internal and external) Be honest on data collection and data analysis Think to do the right things at first by finding best alternative

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Apply the strategy on process management (POM), i.e. "doing the right thing", "doing the thing right" and "doing the right thing right, if necessary) Open the issues to every one so any one can contribute to find solution to quality problems Corporate with those who try to solve quality problems and direct them in a correct path Avoiding unnecessary meetings in the name of teams that will not lead the team to the correct path of finding solutions. Encouraging spot meetings for transfer of knowledge and experience whenever necessary (on job meetings) 3.6 Human Resources Development (HRD) 3.6.1 General The methodology adopted in the data collection and data analysis is new to the most of the organization in Sri Lanka as the researcher is committed to develop practical aspects on data collection and data analysis applying the theories learned on quality and management areas. The concepts generated may be new to the employees working in organizations. Therefore the human resources should be developed considering these practical aspects of data collection and data analysis and cultural transfonnation of work life also should take place to facilitate the process of data collection and data analysis. 3.6.2 Integrated knowledge on TQM Selection of indicators

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Approach to link variable (man, machine, method and material) Cultural aspects required for this new knowledge Setting quality objectives and reviewing at management review meeting Organizing for quality Quality in communication Eight quality management system principles for process owners

These are the generic knowledge base on quality, i.e. the doing the right thing; on this basis human resources should be developed and the implementation can be verified whether the knowledge base is used, i.e. doing the thing right; and can be audited, i.e. doing the right thing right Figure 3.12 - Framework for TQM

I

TQM

I

Continuous improvement

I Integrated knowledge on TQM

Human Resources Development]

Data collection and Data analysis for relevant Management System Standards which includes QMS, EMS SMS, OHAS QMS —Quality Management System EMS - Environmental Management System SMS - Social Management System 01-LAS —Occupational Health and Safety

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3.6.3 Self auditing / Self assessment How can individual be developed from self-auditing/self assessment? Can the auditing/assessment techniques be developed to carryout self-audit/assessment on employees to identify the area for continual improvement? For Sellauditing/assessment the following aspects should be considered in order to fulfill the needs and expectations of customer and improve the capability of an organization. These aspects are The customer needs and expectations should be communicated from identification of customer needs and expectation to fulfillment of needs and expectations without any gap on customer requirements to be fulfilled. Figure 3.13 - Communication process

Input = customer requirements or needs and expectation Out put = Customer satisfaction or fulfillment of needs expectations Needs and expectations of customers' chain followed by the processor, i.e. requirements of the output to the processors'. Figure 3.14 —Processor in the chain of suppliers' and customers'

rocessor

Custo chain

The requirements of input for processing the product/service from suppliers' chain

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Employee learning on knowledge, skills and experience required for job enrichment to continually enhance customer satisfaction Innovation on information and resources required for carrying out activities effectively if the available infonnation is not clear or resources are required to upgrade resources for new changes on customer needs and expectations. Understanding and application of eight management principles for effectiveness and efficiency of quality management system Communication pattern required for a particular situation Organizing capability and its improvement for reduction of nonconformity or errors or mistakes, customer complaints and stoppages, breakdown of equipment and improvement of equipments. Identification of personal weakness that restrict improvement and overcome through improvement Enhancement of relationship for facilitating communication Operational strategies and Corporate strategies for changes on external environment

3.7 Summary Data collection and data analysis should be specific providing description of lines, description of processes of a particular line, type of products/services manufactured and non-conformities for products/services. The data collection form should be designed to incorporate the following aspects

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Line Process Product Non-conforniity Researcher's data collection and data analysis theory is the foundation for TQM paradigm change, in earlier more importance is given to either statistical techniques and tools or machine oriented maintenance (TPM) and in new paradigm change, statistics need not be used and the quality problems can be identified, using data collection and data analysis theorem, and co-related to machine, method, material, processor (skill related) and components of machines and in worst condition re-engineering (machine) and restructuring (processes) for quality can be performed. This will help to bring organizations, towards Six Sigma or Lean Sigma; other philosophers have already established these concepts. The direction lead by other philosophers cannot be applied to any organization irrespective of the size or activities but this simple method can be used and applied by any organization.

Organizing is also important in collection of data, which helps to derive factual information from data analysis and consequently the improvement of process. However, ISO 9000 series of standards did not consider its importance. ISO 9000 family of standards does not indicate any methodology required for cultural transfonnation, which facilitate communication on fulfillment of needs

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and expectation of customers (internal and external) and identification of suppliers' performance

If the data collection and data analysis can be categorized and segregated to identify the issues or future problems of a particular process, then it will be easy to identify issues or potential issues and co-relate to whether they are process related or processor related or material related or method related or system related. Once the linkage is identified, the problem should also be identified whether it is due to assignable cause or random cause. Then cause for the problem and action to be taken can be easily identified in case if the quality problem is appear suddenly, i.e. problem is due to assignable cause. The cause and effect diagram or statistical techniques should not be used for assignable cause as it appears suddenly due to the changes in the processor or process or system. Corrective action and preventive action can be taken to avoid recurrence of the problem or occurrence of the problem due to assignable cause.

If the random cause is related with process them Business Process Re-engineering (BPR) should be used. Process capability is not good and the process is consistently produce non-conforming product then the process should be reengineered. To ensure this the statistical techniques can be used to determine the process capability and hence the process weakness.

The individual learning is more effective and powerful as individual is committed to gather infbrmation on knowledge, skills and experience. The challenge to Sri Lankan companies (particularly ISO 9000 certified companies) is to acquire six sigma competencies to be competitive. The expertise development is easy to go for six-sigma level if the methodology is correctly identified and interpreted

In Sri Lanka, some of the companies do not realize the importance of TPM in quality improvement and driving the organization towards performance excellence. These companies do not organize the preventive maintenance schedule and update maintenance schedule from time to time for quality.

The organizing of data and application of process approach and analysis of critical data on conforming product (in addition to the organizing of non-conforming product and analyzing using statistical tools) and observing trends and deviation and consequent preventive measures will also be necessary in order to apply correct tools for quality improvement.

Self-assessment areas are identified in order to identify the improvement and contribute to the quality management system by acquiring knowledge, skills and experience.

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CHAPTER 4 DATA ANALYSIS AND DISCUSSION OF FINDINGS 4.0 Introduction Data collection and analysis is presented in the form of a) Case studies The first four cases are based on the past experience of the researcher in different organizations. Case study 5 and case study 6 are two different organizations to study the data collection and data analysis in selected two organizations and compare with the data collection and data analysis framework developed by the researcher. The cases are true and maintain confidentiality the name of the organization, personal and processes are given another name On effectiveness of internal customer chain management of an organization in the garment industry, Synchronization of processes for the effectiveness of quality management system and Factors contributing to the measurement of process capability and its impact on continual improvement quality improvement on service quality - processing of test reports Strategies for continual improvement Discussion of Findings

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4.1 Case studies 4.1.1 Case study 1 - Case study on effectiveness of internal customer chain management of an organization in garment industry 4.1.1.0 Case description An audit team with the lead auditor carried out audit in a reputed Ganiient factory exporting high fashioned ladies garments to USA. Though the company has fairly trained and experienced staff in the stitching processes, the defects are high on the initial stages of stitching of newly designed garments and consequently the company's efficiency is low. The company had to improve its efficiency while reducing defects/rework to gain competitive advantage in the target market and hence ensure customer satisfaction related to quality and price.

During the factory visit it was observed that there are high defects/rework in the stitching processes. Once the factory visit was over the top management team was interviewed. The CEO said that the employees are intelligent but not concentrating on their work. He felt that the increase on defects and decrease on efficiency is the result of the lack of concentration of employees.

An auditor (SLS ISO 19011) of the audit team was of the view that the process owners in the stitching processes were not aware of the process approach of verifying the quality of input they are receiving and verifying the quality of the output they are delivering.

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Figure 4.1 - Process owner, customer and supplier Immediate supplier

Input

01

Process owner

Output

Immediate customer

The auditor selected a sample from line 1 in the stitching processes and enquired the process owner P. The answer reflected that she verifies the requirements of the stitched garments of immediate supplier M and delivery requirements of stitched garments of immediate customer Q. Similarly other process owners also verify the requirements of immediate customer and supplier. The requirements to be verified are not given in the form of checklist. However the auditor identified that the garments are returned for this process owner to rework when it is not fulfilling the requirements of one of the process owner followed by the immediate customer. For example rework of garments for the process owner P is returned by S. Figure 4.2- processes in the chain of customer & supplier

4.1.1.1 Questions a) Why the process owner P gets rework even though he fulfills the requirements of immediate customer and supplier?

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How can the rework in the processes be reduced and efficiency be improved? What is the best way of organizing activities to improve efficiency? Explain with reasons. What is the lesson learned from this case?

4.1.1.2 Case study analysis Why the process owner P gets rework even though he fulfills the requirements of immediate customer and supplier? The requirements to be fulfilled by process owner P is Q and S. The supplier P does not identify the requirements of S and fail to fulfill requirements of S. Therefore the garments, which are not suitable to carry out work by the process owner S is returned. How can the rework in the processes be reduced and efficiency be improved? To reduce the rework and improve efficiency, the interaction of customer processes within the line should be identified. In this case the process P is interact with Customer processes Q and S. The requirements of interacted customer processes also considered when verifying the delivery after processing. This concept should be applied throughout the process line to reduce the rework and improve the efficiency. What is the best way of organizing activities to improve efficiency? Explain with reasons.

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The company is focusing on high fashioned ladies garments. The design changes frequently. The interaction of customer processes and requirements of customers vary as the design changes from time to time. When the company gets new design it has to identify the processes and requirements to be verified from the final process owner to the initial process owner in the stitching line. Then the requirements to be verified from supplier and requirements to be verified for deliveries can be easily identified. Then the work instructions have to be designed with checklists of verification of supplier requirements and delivery requirements. The careful attention is given to compare stitching process line and stitching processes interaction.

Figure 4 .3 - Stitching process line

Figure 4.4 - Stitching processes interaction

M

H

$Q

NN

j

124

R

1ØT

In this case Q should verify whether the delivery requirements of Q and S is incorporated. S should verify whether the supplier R fulfills her requirements and need not verify whether the supplier P fulfills her requirements as Q has already verified it. Figure 4.5 Work instructions

Work Instruction Check list of verification of supplier quality Operating instruction Check list of verification of deliveries

e) What is the lesson learned from this case? This case reveals that customer chain has to be managed with identification of the interaction of customer processes and supplier and delivery requirements to be verified by the process owner to reduce the defects or rework and improve the efficiency of the process line.

4.1.2 Case study 2 - Case study on synchronization of processes for effectiveness of quality management system (QMS) 4.1.2.0 Case description An audit team with the lead auditor carried out audit in a well-known Japanese company named as xyz, which is exporting its product to USA and EU Countries. The CEO is a Japanese and the team of experts from Japan visits once in six month to analyze the problem related with technology, product, and quality.

1 25

As per the audit plan the lead auditor conducted opening meeting. Factory visit was the next item. During the factory visit the auditors observed that there are more percentage of non-conformities as per the records in the notice board (i.e. rejects).

Once the factory visit was over top management team was interviewed. The CEO said that the company practices Japanese methods and Quality Control Circle (QC Circle) is also one of their practices. They are supposed to follow the parent company practices. The parent company of this subsidiary is in Japan. For a query made by an auditor he said that the rejections rate are high in this factory compared with parent company as this factory inspectors reject products for even minor defects as their eye sensitivity is high and hence this results in enhanced customer satisfaction. In addition to that he explained that the quality of the products of this company is higher than the quality of products of parent company.

As per the audit plan the auditor V went to the production process Y to audit, as it is a sample identified to carry out process audit as per the audit plan. The input for this process is the heap of stacks from the process X and its output is delivered to the process Z. The batches of output of process X are stacked as heaps and cured for few days in the curing stores. Then a few heaps are brought and a definite amount of stacks in each heaps are mixed as an input of the process Y. The

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amount of stack taken from each heaps is changed until the measured hardness of the output of this process conformed to standard specification limits. Once the hardness conformed to specification limits then the amount of stack taken, as an input in each heap was kept constant and continued forever. The respective employees in the sections of processes measure the hardness, (i.e. output of process y and the input of the process Z), in every four-hour. Figure 4.6 - Process map of customer & supplier

Process X

Process Y

Process Z

Definite amount of stacks _____ Process V In each heaps Hardness measurement

Process Z

Hardness measurement

There was contradiction with regards to the conformance of hardness to specification limits in both sections (in charge for process V and process Z). The auditor felt that the sampling adopted by employees in process V is not acceptable and raised a question that whether the sampling plan adopted by the employees is appropriate. One employee (U) said that we write what we do and we do what we

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have written as per

Iso 9000. MR (management representative) accepted that the

sampling plan adopted by the employees is not appropriate.

The MR had an experience with the auditing techniques used by auditors i.e. the way of questions raised by the auditor and it's consequence linked to problem in the quality system. He found the solution for the problem. The rejects are reduced once the solution is implemented.

4.1.2.1 Questions What is the quality problem in the process Y? Is the expression given by employee U is correct? If not why it is not correct What is the solution derived by MR? What is the lesson learned from this case?

4.1.2.2 Case study analysis a) The quality of the input is definite amount of stacks in each heaps. The quality of the out put of process V is measured in 4 hours interval and the amount of stacks in heaps is changed if the output is not confomi with standard specification. However when the amount of raw material in one heap is less than the required amount for feeding to the process, then the quality of input commence to differ and hence it affect the quality of the output. The sampling of output to determine the quality of output has to be

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synchronized with the input when the raw material in one heap is less than the required amount for feeding to the process. This is the time a new heap of stack is introduced in the process and if the quality of the output of this process is not measured then the undetermined quality (Some time may or may not conform to specification limits) of out put delivered to process Z and hence the contradiction of quality arises. Not correct. The procedures or instructions should be written based on the best way of carrying out activities. MR decided to replace heap, when the raw material in the heap is less than the required amount and measure the hardness and compare with specification limits whenever new heap is introduced. The key processes and supporting processes should be synchronized to avoid quality related problems. If there is a change on any activity, then this change can create quality related problems on the output of the process. The attention should be given to tnonitoring and measurenent of product to ensure required level of quality.

4.1.3 Case study 3 - Case study on factors contributing to the measurement of process capability and its impact on continual improvement 4.1.3.0 Case description An audit team with the lead auditor carried out audit in a well-known Japanese company named as xyz, which is exporting rotary transformer core. The

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processes involved in manufacturing of rotary transformer core are mixing, moulding, sintering, grinding and assembling.

During the audit of corrective action of ISO 9001: 2000, the auditor observed that there were customer complaints on final product, i.e. rotary transformer core dimensions. The measured value of the dimension did not conform to specification limits.

When querying on the possible corrective action, the auditee explained with the records of the test results on dimension and the analysis of data, i.e. the measurement on dimensions were taken at the end of the sintering process and the data analyzed indicated that the measurement of central tendency was shifted on one side. Corrective action taken on the process brought it to normal.

However as per the auditee's view, there were non-conforming products, which appear, can only be controlled without improvement as they have achieved optimum level. Further auditee explained that the capability of this process is less and they would have to invest money on it for improvement. Investment would not be profitable as they were in a competitive market environment and it was difficult to reduce the defects or non-conformity further in this situation.

The auditor's view was that the auditee does not have adequate knowledge on interaction of processes. He/she thought that this lead to a situation where the

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auditee did not identify the alternative ways or methods of improving the quality of the rotary transformer core on the processes interact with this process. However to find out the other possibilities which cause non-conformity, the auditor had examined the test results of the moulding process.

As per the auditor's observation, even though the break down strengths appeared on the records of the tested samples of the moulding process comply with the minimum specification limit; the deviations on the results of measurement are high, The auditor queried whether this deviation could have an impact on the dimension. The auditee accepted with the smile and replied that it could sometime affect the dimension.

4.1.3.1 Questions Why the auditee was of the view that the existing defect rate (nonconforming product rate) cannot be further reduced at the initial stage? What are the factors, which could have an impact on process capability? When can an employee carry out study on process capability? Can supply side processes influence on process capability if the output of these processes conforms to specification? If yes why and if not yes why What is the lesson learned from this case?

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4.1.3.2 Answers The auditee learned the theory on process capability and applied it without consideration on the factors that should be controlled. The nonconforming products of the supply side processes also affect the product capability.

Figure 4.7- process sequence

Input

Output Process 1

Process 2

Process 3

If the percentage of product conforms to process 1, process 2, and process 3 is

p %, q % and r % respectively then the output of the final product

conforms to the requirements is 100xpqr/106 %. For example if p is 90 q is 80 % and r is 70 % then the output of product conformity is 0.9x0.8x0.7 xlOO = 50.4 % The factors that could have an impact on process capability study is the changes on raw material specification, the process capability of the supply side processes of the process and the controls and methods used in the supply side processes and the controls and methods used in the process, i.e. the process being taken for process capability study When the factors that could affect process capability are in controlled. However the process capability could have an impact as per the explanation given in a).

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e)

Yes. Even in the supply side process/processes, the variation or dispersion or spreads on the parameters within specification limits can also leads to non-conformity. It is always better to reduce the spread or dispersion or deviation to improve the process capability. This will help to reduce the defect or reduce the non-conformity of product.

The measurement of process capability of a sub process is not a good indicator to assess the process weakness of a particular sub process. This process capability index can only be used to demonstrate the effectiveness or weakness of the process/processes and consequently identify the probable weakness in the processes interacting with this process. "Some companies in manuflicturing and service industries track process capability indices to identify the need to process improvements, or to verify such information" (ISO/TR 10017 2003)

4.1.4 Case study 4— Case on quality improvement on service quality - processing of test reports In service oriented activities there are possibilities or chances for human errors or mistake on the expected service quality and lead to delay on delivery. Reexamination of this errors or mistakes and redoing for correction, is time consuming and wastage of material rather than doing right things first. How can we do right things first. For this we should be able to identify the errors or mistake that happen in the system. If the errors and mistakes arising on different

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types of service differ then these needs to be considered on identification of errors and mistakes. For this purpose, we have to identify the type of errors, which can happen in these different types of service.

Why should we identify type of errors and mistakes we do? If we do not identify the type of mistakes or errors we make, then for verification of what we have done, we will examine or verify on 100 % of information in the service or report which is tedious and because of this some time there are difficulties on identification of errors and mistakes in verification. If we know the area or places where these errors and mistakes takes place, then the verification can be focused on these errors/mistakes. It is similar to the controls applied in machines of manufacturing industry, and the percentage of information to be verified in this case is very less.

This case describes how the employee in the electrical testing laboratory identified and improved the service quality. For processing, the sample report already forwarded for client is taken from the word processing package for modification. During modification, there are possibilities of occurrence of errors where we do changes.

Types of services Processing of test reports for Miniature Circuit Breaker (MCB) Processing of test reports for Residual Current operated Circuit Breaker (RCCB)

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Types of errors or mistakes a) Processing of test reports for MCB i)

cover page The cover page Consist of two pages, i.e. the front page or first page where the product name, he report number, date of report and client and the second page describe detail information on sample and reference. the report specifications limits measured resuits current applied for testing (vary with current rating)

b) Processing of test reports for RCCB 1)

cover page The cover page consist of two pages, i.e. the front page or first page where the product name, he report number, date of report and client and the second page describe detail information on sample and reference.

iii)

the report specifications limits measured results

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Errors and mistakes identified for MCB and RCCB differ on current applied for testing. After identification due consideration is given on those areas on carrying out activities and this lead to less errors and mistakes on reports.

4.1.5 Case study 5 - Case study on method of data collection and data analysis and its effect on achievement of quality objectives Cable manufacturing company XYZ Ltd 4.1.5.1 Case description Observation As per the observation of data collection in rejected material, a label is attached to the coil titled as rejected material, information in the label is as follows: Machine Operator Drum/Coil number Length Date Colour! type

This information is linked to the ISO 9000 Non-conformity report, in that also these specific information are written and root cause for the quality problem is identified with action for implementation and effectiveness of the action also evaluated.

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As per the observation on available records, surface appearance, i.e. surface hardness is the major problems for PVC wastage in 1994, and the frequency of number of observation is nine. In year 2005 it has been reduced to two. This achievement resulted in the improvement of reject rate from 0.05 % to 0.001 %

However the researcher found from annual graph of month wise PVC waste, variation move up and down. From this I enquired why it is sometime move up, then they said that due to the variation on impurity of raw aluminium supplied by the CEB, variation move up and down. in that case they might find difficulties of providing facts to management review meeting that they have achieved the target. They accepted that they have to separate these graph for PVC waste for copper cables and PVC waste for aluminium cables, since they can not control the quality of raw material supplied by the CEB event though they can control the copper material which they have some sort of control. They have set only overall objectives indicated in Table 4.1.

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Table 4.1 Quality objectives Year 2003 Indicator

Year 2004

Year 2005

Existing

Target

Existing

Targ

Existing

Target

level %

%

Level %

et %

Level %

%

-

-

3.0

2.5

-

-

PVC waste

2.3

2.1

2.1

2.0

2.0

1.9

Copper

1.0

0.8

0.8

0.7

0.7

0.6

Aluminium

1

0.9

0.9

0.8

0.7

0.6

Reject

-

-

-

-

.05

.04

Machine breakdowns

-

-

-

-

*

*

Short lengths

analyse the breakdown from Jan. to Jun. and reduce the breakdowns at the year end

Interview As per the interview with factory manager, there was a change and the company initiated this type of specific data collection system in year 1994. Prior to this they have no proper mechanism to collect specific data and found difficulties on finding solution to quality problems. He claimed that this type of system helped to reduce short lengths of cables and wastage to a remarkable level.

Further he said that at present short length is at zero level, so that the short length is not identified in the quality objectives.

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As per the interview with regard to industry waste level, he said according to the information in year 1994, PVC

-2.5%

Aluminium

- 1%

Copper

- 1%

Interview As per the interview with Quality Assurance Manager, he said that they are not using Pareto diagram or Cause and effect diagram on seven tools. I asked the reasons that why you are not using these to identify the causes to the quality problems. Then he explained that the coils are collected with the attached reject label and transferred to quarantine area and they identifj the cause whether it is system related or processor related or process related. As per his explanation the surface roughness can be categorized is indicated in Table 4.2

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Table 4.2 - Surface roughness Indicator

Process

Processor

System

(machine) related

related

related

x

'.1

PVC speed control Temperature control Rolling problem in the pulley Deposit of PVC material in the die Power failure

X

-Applicable - Not Applicable

4.1.5.2 Case Analysis As the data collection system include categorization on label of the rejected coils machine, operator and type of cable. This helps to identify the quality problems and link the quality problem to the process, processor and system. Quality problem suddenly occurring in the system is due to an assignable problem in the process, processor or system. The categorization assists to focus on observing the change to the process, processor and system and monitor consequent places on these areas, i.e. process, processor and system to find the assignable quality problem and take action to rectify the cause for this assignable quality problem. This is the non-statistics method used in identifying quality problems and find

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solution to the quality problems. Statistical techniques may be needed to identify process capability specially when there are quality problems due to random variation or change and this will appear forever and it will not appear due to sudden change.

4.1.6 Case study 6 - Case study on method of data collection and data analysis and its effect on achievement of quality objectives

4.1.6.1 Case description Cable manufacturing company UVW Ltd Observation As per the observation this company raise non-conformity when quality problems occur in the Non Conformity Review form (QP 13-A) in details. To include important information this format consist of areas to write information on machine, the product type, non-conformance defects and root cause identified. The nine non conformities occurred in year 2005 and the company targeted to 7 and achieved to 6. Out of these six, the major one is copper oxidization. When I observed the quality objectives, the existing values and targets for year 2005 for selected indicators are given in Table 4.3

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Table 4.3 - Quality objectives in year 2005 Existing

Indicators

Target

Achievement

value Maintenance break down, hours

3

2

1.4

Short length%

2

1

1.58

Copper wastage %

1.2

0.75

1.09

PVC wastage %

2.5

2

1.61

9

7

6

Number

of

non

conformities

(internal)* *The non conformities are due to the quality problem. Interview When the researcher interviewed quality assurance manager, he described the problems occurred in the past and how they brought solutions to the problems. He explained that there are 3 problems in copper oxidization out of six problems occurred in year 2005. This problem arises in the annealing. This is due to the filtering problem of steam in the steam annealing. They found solution with the manufacturers of this on line annealing by adding 1 % special antioxidant lubricant with normal lubricant and they found that this action is effective.

On query with data collection and data analysis, quality assurance manager, explained that they started this specific data collection and specific data analysis in year 2003 and it is very successful. Before introducing this they found difficulties on identifying quality problems and bring solution to the quality

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problems as it is difficult to identify action as the problems are not clear and the waste and reject level is also high.

Further to this the researcher asked whether they are using Pareto diagram or Cause and effect diagram on seven tools. He replies that these are not necessary and there are fewer problems occur due to some reason and it is easy to identify causes to the problems and action to be taken. These are due to one of the variation on man, machine, method or material and not because of the combination of more than one.

As per the discussions with the maintenance engineer, he agreed that categorization of the type of breakdown and upgrading the preventive maintenance schedule and performing preventive maintenance on moving parts to see whether the machine is able to run without break down during the running time of the particular machine will help to bring down waste further. Further to this he agreed that from breakdown time it is difficult to co-relate the break downtime to waste as the number of breakdowns and type of break down is the more relevant / suitable indicator to link with quality and reduce waste or reject.

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4.1.6.2 Case analysis It reveals that an indicator selected for performance improvement, e.g., down time need not be an indicator for quality improvement. Therefore when setting objectives, it is important to relate it with quality improvement. In this case if the indicator, down time, selected is achieved then it could be either quality improvement due to the reduction of break down or the effectiveness of maintenance personal. Here one indicator is related to two measurements. If the number of breakdown is selected as an indicator then it will measure quality improvement only not the effectiveness of maintenance personnel 4.2 Strategies for continual improvement 4.2.0 General There are certain fundamental strategies that can be employed to improve delivery time or reduce defect rate. The strategies may be selected based on customer requirements or necessity for customer satisfaction. Each strategy is discussed as given below.

4.2.1 Specialization of operations This involves the use of special purpose equipment designed to perform one operation or labour specialization to improve labour productivity, in respect to operation time, with the greatest possible efficiency.

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4.2.2 Combined operation Production occurs as a sequence of operations. Complex parts may require dozens, or even hundreds, of processing steps. The strategy of combined operations involves reducing the number of distinct production machines or workstations through which the part must be routed. This is accomplished by performing more than one operation at a given machine, thereby reducing the number of separate machines needed. Since each machine typically involves a setup, setup time can usually be saved as a consequence of this strategy. Material handling effort and non-operation time are also reduced.

4.2.3 Simultaneous operations A logical extension of the combined operations strategy is to perform at the same time the operations that are combined at one workstation. In effect, two or more processing (or assembly) operations are being performed simultaneously on the same work-part, thus reducing total processing time.

4.2.4 Increased flexibility This strategy attempts to achieve maximum utilization of equipment for job shop and medium-volume situations by using the same equipment for a variety of products. Prime objectives of this strategy are to reduce setup time and programming time for the production machine. This normally translates into lower manufacturing lead time and lower work-in-process.

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4.2.5 Improved material handling and storage A great opportunity for reducing nonproductive time exists in material handling and storage systems.

4.2.6 Synchronization of processes It helps to synchronization of sampling with the other processes, which affect the final product quality, e.g. changes in the raw material or process control will alter the product quality and hence sampling process has to be immediately followed to confirm quality.

4.2.7 Improved data collection and analysis The detailed information of data to represent production line or machines involved in processing, Type of product, Type of mold and type of defect helps to identify the problems on machines or processes or operators and take appropriate actions to the corresponding defect on the product.

4.2.8 On-line inspection Inspection for quality of work is traditionally performed after the process. This means that any poor-quality product has already been produced by the time it is inspected. Incorporating inspection into the manufacturing process permits correction to the process as product is being made. This reduces scrap or rework and brings the overall quality of product closer to the nominal specifications intended by the designer.

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4.2.9 Process control and optimization This includes a wide range of control schemes intended to operate the individual processes and associated equipment more efficiently. By this strategy, the individual process time can be reduced and product quality improved.

Table 4.4 - Nine strategies for improvement on delivery or reduce defect rate Serial No.

Effect*

Strategy Specialization of operations (Please

Reduce To

refer table 1) 2

Combined operations

Reduce n, T11 , T 0

3

Simultaneous operations

Reduce n, T(.,, Th, T 0

4

Increase flexibility

Reduce

MLT, W1P;

increase U 5

Improved material handling and storage

Reduce T1,,, MLT, WIP

6

Synchronization of process (Please refer

Reduce T 0,q

4.1.2) 7

Improved data collection and analysis

Reduce Tfl),q

(please refer 4.2.1) 8

On-line inspection (please refer 4.2.3)

Reduce T 0,q

9

Process control and optimization

Reduce T0,q

*T(,, operation time (process or assembly); T 0 , nonoperation time; Th, work handling time; n1, number of machines through which part must be routed; MLT,

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manufacturing lead time; WIP, work-in-process; q, scrap rate or fraction defect rate; U, utilization

4.3 Discussions of findings 4.3.1 Discussions Scientific and practical approach is applied to derive the simple conceptual framework for TQM. The general concepts found in case studies (please refer 4.1) with examples are used in deriving the conceptual framework. Simple approaches to the quality problems are collection of facts obtained during the audits based on logical arguments during auditing, i.e. in field study. Then the verificationitesting of these simple approaches are applied in the field and the effects of this simple approach on solving quality problems also studied in consequence audits to observe the validity of these simple approaches. These simple approaches and general concepts are integrated to derive the conceptual framework for TQM, which can be used for integrated development.

Specific data collection and specific data analysis to identify the quality problem as whether it is process related or processor related or method related or material related or system related and whether this quality problem is due to assignable cause or random cause.

If the quality problem is suddenly appearing or there are conflicts on quality between departments due to assignable cause on method (Please refer 4.1.2) then

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these are due to assignable cause and the statistical techniques or cause and effect diagram need not be used or applied Action to be taken for this problem can be easily identified by observing the change that has happened to the system or process approach will help to solve the problem.

If the process or the process-supplying raw material to the consequence process (please refer 4.1.3) is weak and the process capability is not good then the quality problems occur consistently and it is due to random cause. In this case statistical techniques can be used to assess the process capability if necessary. Sometimes the observation of data will help to identify the deviations pattern and from this also some improvements can be made. Quality tools can also be used to improve the process if necessary.

To ensure validity of new method or new material or new skills applied by the processor for a new product (please refer 4.1.1), and if the other indicators are in a good condition, for example to test the validity of the new method, the good material can be processed by a good processor in a good process and the extent of validity can be compared with the previous method. Scientific approach can be used on determining the related random cause that can happen due to random cause. In this case the statistical techniques can be used.

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Quality in communication will help to identify customer needs and expectations and communicate and convince benefits on better way of performing activities for performance excellence.

Organizing for quality brings benefits by revealing quality problems to the personals involved finding solutions and better way of organizing for performance Improvement.

The application of data collection and data analysis is verified in organizations (Please refer Case Study 5 and Case Study 6) to find the extent of implementation of data collection and data analysis of this conceptual framework for TQM.

The verification ensures that specific data collection and specific data analysis help to identify the quality problems easily and hence find actions to solution to the problems. Further it reveals that quality problems can be identified without any usage of complex and complicated statistical techniques and quality tools such as cause and effect diagram.

However the verification indicates that the companies can improve on Total Productive Maintenance (TPM). One company started collecting data on breakdown of processes (machines) and setting objective in year 2005. The other company approach on setting objective on processes (machine) breakdowns has to

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be changed to link the objective with quality problems or reduction of waste (please refer 4.1.6.2).

In addition to this the frameworks for TQM fulfill the gap on theories as given in 4.3.2

4.3.2 Findings Organizing is important when collecting data, without which the factual information cannot be obtained from data analysis and consequently the improvement of process. iSO 9000 series of standards did not consider it's importance.

ISO 9000 family of standards does not indicate any methodology required for cultural transformation, which facilitate communication of needs and expectation of customers (internal and external) and identify the suppliers' performance

Eight quality management principles stipulated in the standard is for top management. The standard does not indicate the relevancy of these principles for other employees. However these principles can also be used for employee development. These are applicable to employees for the effectiveness and efficiency and improvement of system and capabilities (employee development).

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The criteria for performance excellence focus on employee development in the form of organizational and personal learning and innovation. Organizing aspects of individual development towards performance excellence and generic values for cultural transformation to facilitate communication, which are essential for performance excellence, are not given.

If the data collection and data analysis can be categorized and segregated to identify the issues or future problems of a particular process, then it will be easy to identify issues or potential issues whether they are process related or processor related or material related or method related or system related. Once the linkage is identified, the problem should also be identified whether it is due to assignable cause or random cause. Cause for the problem and action to be taken can be easily identified in case if the quality problem is appear suddenly, i.e. problem is due to assignable cause. The cause and effect diagram or statistical techniques need not be used for assignable cause as it appears suddenly due to the changes in the processor or process or system. Corrective action and preventive action can be taken to avoid occurrence of the problem or recurrence of the problem respectively due to assignable cause.

If the random cause is related with process then Business Process Reengineering (BPR) has to be considered. In this case process capability may not be good and the process is consistently produce non-conforming product

1 52

and the process should be re-engineered. To ensure this the statistical techniques should be used to determine the process capability and hence the process weakness.

Customer needs and expectations are communicated through series of process owners and the gap on communication is more and there are chances for misleading information on customer needs and expectations. In this type of processes better communication facilities with relationship to be build up. In complete process the gap on communication is less, as he/she is involved directly with the customer communication.

The establishment of relationship is dependent on identification of basic norms and values of individual(s) and respecting the identified norms and values of those individual(s), which has to be followed and experienced in day-to-day activities. This creates trust and this trust further strengthens relationship and facilitates communication. The communication help to identify needs and expectations of individual(s) and fulfillment of these identified needs and expectation further strengthen the relationship. Inconsistency between words and actions decrease trust. (D McGregor) Trust involves making oneself vulnerable as when, for example, we disclose intimate information or rely on another's premises. (J K Rampel, J G Holerns and M P Zanna)

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Though there are more theories on needs and expectation, for an applied researcher/manager need not categorize the needs and expectations based on needs theories, however he/she should identify the importance and prioritize those needs and expectations and help the employees to achieve those needs and expectations.

The benefit-based communication facilitates to establish and maintain the relationship and improve the organizational culture by bringing norms and values for stakeholders of the organization.

Organizing is expected on top-level managers than operators or middle level managers. However it is important for middle level managers and operators to identify and categorize quality related problems and take preventive measures

The requirement on control of document in

Iso 9001 helps to organize and

control information related with operational aspects. However it does not provide any information or guide how to organize data from monitoring and measurement to identify corrective action or preventive action.

The individual learning is more effective and powerful as individual is committed to gather information on knowledge, skills and experience.

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The challenge to Sri Lankan companies (particularly

Iso

9000 certified

companies) is to acquire six sigma competencies to be competitive. The expertise development is easy to go for six sigma level if the methodology is correctly identified and interpreted

In Sri Lanka, some of the companies do not realize the importance of TPM in quality improvement and driving the organization towards performance excellence. These companies do not organize the preventive maintenance schedule and update for maintenance of quality.

The organizing of data and application of process approach and analysis of critical data on conforming product (in addition to the organizing of nonconforming product and analyzing using statistical tools) and observing trends and deviation and consequent preventive measures will also be necessary in order to apply correct tools for quality improvement whether it is six sigma or TPM

Self-assessment areas are identified in order to identify the improvement and contribute to the quality management system by acquiring knowledge, skills and experience

. Customers' chain has to be managed with identification of the interaction of customer processes and supplier and delivery requirements to be verified by

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the process owner to reduce the defects or rework and improve the efficiency of the process line.

The key processes and supporting processes should be synchronized to avoid quality related problems. If there is a change on any activity, then this change can create quality related problems on the output of the process. The attention should be given to monitoring and measurement of product to ensure required level of quality.

The measurement of process capability of a sub process is not a good indicator to assess the process weakness of a particular sub process. This process capability index can only be used to demonstrate the effectiveness or weakness of the process/processes and consequently identify the probable weakness in the processes interacting with this process. "Some companies in manufacturing and service industries track process capability indices to identify the need to process improvements, or to verify such information" (p 13, ISO/TR 10017 ; 2003) The researcher combined managerial knowledge with quality to improve the application of cause and effect diagram and importance of fulfillment of the needs of not only the immediate customer but also all the customers in the supply chain. In addifion to this the importance of data collection and application of eight quality management principles by the process owners in the processes are not emphasized in

Iso 9000 as it is important to identify

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quality problems and hence find solution to the quality problems. The importance of organizing for quality and quality in communication to identify needs and expectations and obtain involvement of human resources to identify the needs and expectation of customer, fulfill needs and expectations and the extent of customer satisfaction.

4.4 Summary The researcher combined managerial knowledge with quality to improve the application of cause and effect diagram and importance of fulfillment of the needs of not only the immediate customer but also all the customers in the supply chain. in addition to this the importance of data collection and application of eight quality management principles by the process owners in the processes are not emphasized in

Iso 9000 as it is important to identify quality problems and hence

find solution to the quality problems. The importance of organizing for quality and quality in communication to identify needs and expectations and obtain involvement of human resources to identify the needs and expectation of customer, fulfill needs and expectations and the extent of customer satisfaction.

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CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 5.1 Conclusions The existing latest theories on Quality mainly TPM, 6 and TQM are reviewed and the problems/ issues/confusion created by these theories are explored. The new theory /knowledge on data collection and data analysis is developed as foundation for TQM from which all other theories are linked for development of new TQM model or framework. Data collection and data analysis in the TQM model/framework is verified in selected two organizations and the findings of research is as follows: . Framework for data collection and data analysis was developed from logic. Specific data collection and data analysis system help to identify quality problem and hence take preventive measures while overall data collection and data analysis leads to confusion on which quality problem occurs in which process when producing a particular product/service and identification of controls/measures. Data collection and data analysis system developed in selected two organizations were studied and compared with the data collection and data analysis frame work developed for TQM and found that it help to identify quality problem and take preventive measures and reduce nonconformance /rej ects Indicator was developed to identify machine related quality problems and find solution to machine related quality problems. The

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breakdowns/stoppages should be related in numbers than time (in h). The breakdowns/stoppages of a particular machine should be categorized to correlate with quality problems/breakdowns link with machine part and upgrade preventive maintenance schedule to take preventive measures by including the activities related to maintenance to avoid stoppages and breakdowns during the cycle time of maintenance. Methodology to reduce non-conforming product is developed by including the steps to be followed. The necessity of inculcating honest in data collection and data analysis is important. If it does not happen then the real quality problems cannot be identified for improvement of Quality Management System. In addition to this a culture of organizing towards needs and expectations of customer is important for identifying customer needs and expectations and extent of fulfillment of needs and expectations. A culture of quality in communication (i.e. benefit, facts and needs/expectation) help to obtain involvement of human resources on achieving needs and expectation of customers. The self-assessment helps to identify the self-weakness on fulfillment of needs and expectations of customer by comparison with the available knowledge and monitoring and measurement of self-performance. This area also based on researcher's experience the future research can be carried out by collection of information from eminent personal who have done a real development and comparing this with others who have failed.

Though the researcher included quality in communication based on his experience, this area should be taken for further research. For example to improve the l;abour Management Relationship (LMR) and motivate employees, anybody who is acting as a mediator to solve problems between management and Labour should be able to identify the real problem on whether it is management side or Labour side and identify, and communicate the facts that bring benefits to the needs/expectations. This should be communicated to the problem creating side by the mediator to change the mind of problems creator rather than finding fault with problem creator. If the problem creator is rational then this type of communication would solve the problem. Process approach in the form of cases based on experience is given, which are linked with the development of conceptual framework for TQM.

5.2 Recommendations Practitioners those who find problems on practicing TQM, can use this framework for TQM, for easy implementation. Researchers can use these models on data collection, data analysis, data analysis - process related and processor related and TQM to field study, field experiment, to find extent of implementation and benefits of implementation. Those who are willing to study or practice practical aspects of process approach can refer the Case study 1, Case Study 2 and Case Study 3.

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. This can be used as a guiding for any organization as these are written based on practical experiences on operational and information system and can be used in similar situations. The behaviourist can link quality in communication identified in this research and commitment, relationship (Uthauyakurnar, 2000), for creating a conducing environment for Total Organizational Behaviour Management (TOBM) for the benefits of all stakeholders. Further, the research on 'Total Organizational Behaviour Management (TOBM) for Total Quality Management (TQM)' area can be investigated and the gap on existing theories on Organizational Behaviour can be identified and included in this new area.

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