Compare and contrast Lean thinking and Quality Management Theory Can they be complemented to achieve business success ?

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Compare and contrast Lean thinking and Quality
Management Theory Can they be complemented to
achieve business success ?

• Group QRMS1202_Team5
• Jainwit Tongbai ID 1255321
• Zeyd Bohurler ID 1265886
• Mathews John ID 1259600
• Thomas Oliphant ID 1258996
• Apoorva Ravikrishnan ID 1262022
• Vasileios Zisis ID 1266493

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CONTENTS

• Evolution of Quality Management Theory
• Deming Philosophy
• Deming Cycle by Dr. Shewhart
• Ishikawa Quality Theory
• Total Quality Management
• Six Sigma
• Lean Thinking
• Compare and Contrast Fit for business success

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Evolution of Quality Management Theory
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Deming Philosophy Quality Management Theory

• Management is to be responsible for 94 of
  quality problems.
• Place the importance and responsibility both
  individual level and company level.
• 14 points of philosophy
• Small , large organisation public , private or
  service sectors.

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Demings Quotes Quality Management Theory
If you do not know how to ask the right
question, you discover nothing. W. Edwards
Deming
It is not enough to do your best, you must know
what to do, and then do your best. W. Edwards
Deming
Hold everybody accountable ? Ridiculous !
W. Edwards Deming
Quality is everyone's responsibility. W.
Edwards Deming
Profit in business comes from repeat customers,
customers that boast about your project or
service, and that bring friends with them. W.
Edwards Deming
You should not ask questions without knowledge.
W. Edwards Deming
Lack of knowledge... that is the problem.
W. Edwards Deming
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Deming 14 Points
Edwards Deming Philosophy 1 Create constancy
of purpose towards improvement of product and
service 2 Adopt the new philosophy. We can no
longer live with commonly accepted levels of
delay, mistakes and defective workmanship 3
Cease dependence on mass inspection. Instead,
require statistical evidence that quality is
built in 4 End the practice of awarding business
on the basis of price 5 Find problems. It is
managements job to work continually on the
system 6 Institute modern methods of training
on the job 7 Institute modern methods of
supervision of production workers, The
responsibility of foremen must be changed from
numbers to quality 8 Drive out fear, so that
everyone may work effectively for the company 9
Break down barriers between departments 10
Eliminate numerical goals, posters and slogans
for the workforce asking for new levels of
productivity without providing methods 11
Eliminate work standards that prescribe numerical
quotas 12 Remove barriers that stand between the
hourly worker and their right to pride of
workmanship 13 Institute a vigorous programme of
education and retraining 14 Create a structure in
top management that will push on the above points
every day
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Deming 14 Points
2. The new Philosophy
1. Constancy of purpose
4. End lowest tender contracts
3. Cease mass production inspection
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Deming 14 Points
5. Improve every process
6. Institute training on the job
7. Institute leadership of people
8. Drive out fear
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Deming 14 Points
9. Breakdown barriers
10. Eliminate slogans / Do it right first time
11. Eliminate arbitrary numerical targets
12. Permit pride of workmanships
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Deming 14 Points
13. Encourage education
14. Top management commitment and actions

• Put everybody in organisation to work to
  accomplish the change.

• Institute a vigorous programme of education
• and self-improvement.

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Systematic Approach Deming Cycle by Dr.
Shewhart
Father of Gurus
Quality Process is Under Control
Continious Improvement
Control Charts
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Dr. Ishikawa 7 QC Tools Quality Management
Theory

• Late 1950s Japanese developed new concepts in
  response to the Americans

Management of Quality
7 Quality Tools
Customer Orientation
Managing the Quality Customer Orientation Japanese
Way of Quality 7 Quality Tools
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Dr. Ishikawa 7 QC Tools
Late 1950s Japanese developed new concepts in
response to the Americans 7 Tools Pareto
analysis ? Which are the big problems? Cause
and effect diagrams ? What causes the
problems? Strati?cation ? How is the data
made up? Check sheets ? How often it occurs
or is done? Histograms ? What do overall
variations look like? Scatter charts ? What
are the relationships between factors? Process
control charts ? Which variations to control
and how?
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Dr. Ishikawa 7 QC Tools
Late 1950s Japanese developed new concepts in
response to the Americans 7 Tools Pareto
analysis ? Which are the big problems? Cause
and effect diagrams ? What causes the
problems? Strati?cation ? How is the data
made up? Check sheets ? How often it occurs
or is done? Histograms ? What do overall
variations look like? Scatter charts ? What
are the relationships between factors? Process
control charts ? Which variations to control
and how?
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Total Quality Management Concepts

• At its core, total quality management (TQM) is a
  management approach to longterm success through
  customer satisfaction.
• In a TQM effort, all members of an organization
  participate in improving processes, products,
  services, and the culture in which they work.

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Total Quality Management

• The primary elements can be classified as
• Customer-focused.
• Total employee involvement.
• Process-centered.
• Integrated system.
• Strategic and systematic approach.
• Continual improvement.
• Fact-based decision making.
• Communications.
• Total quality management can be summarized as a
  management system
• for a customer focused organization that
  involves all employees in continual
• improvement.
• It uses strategy, data, and effective
  communications to integrate the quality
  discipline into the culture and activities of the
  organization.

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Total Quality Management

• Total Quality Management has few short-term
  advantages. Most of its benefits are
• long-term and come into effect only after it is
  running smoothly.
• Advantages of Total Quality Management
• Improves reputation- faults and problems are
  spotted and sorted quicker (zero defects)
• Higher employee morale workers motivated by
  extra responsibility, team work and involvement
  in decisions of TQM
• Lower costs Decrease waste as fewer defective
  products and no need for separate
• Quality Control inspectors
• Disadvantages of Total Quality Management
• Initial introduction costs- training workers and
  disrupting current production whilst being
  implemented
• Benefits may not be seen for several years
• Workers may be resistant to change may feel
  less secure in jobs
• By focusing too much on the customers, the
  production based method might have a cheaper and
  more faster way of doing business and this method
  is rejected.
• Also the costs of inspection of processes as well
  as Research and development projects might be too
  costly.

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Six Sigma

• Motorola developed six sigma in 1987
• Similar to other quality management techniques
  but represents an organizational approach to
  improvement
• Ford, Honeywell- famous organizations to have
  implemented six sigma

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Definition

• Business process that allows companies to
  drastically improve their bottom line by
  designing and monitoring everyday activities in
  ways that minimize wastes and resources while
  increasing customer satisfaction
• -Harry and Schroeder

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Advantages of Six Sigma

• Achieve maximum customer satisfaction and
  minimize the defects
• Profitability increases and Costs reduce
• Can be implemented in any business
• Targets Variation in the processes and focuses on
  the process improvement rather than final outcome
• Focuses on prevention on defects rather than
  fixing it

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Disadvantages of Six Sigma

• Emphasis on the rigidity of the process which
  contradicts innovation and creativity
• Require skilled man force
• A lot of real time barriers need to be resolved
• Immediate results are not seen

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Lean Thinking Concept
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Lean Principles
Lean Principles

• There are five Principles that help us seek lean
• Specify Value
• Identify the value stream
• Make the value flow
• Let the customer pull
• Pursue perfection

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Lean Enablers

• There are four lean enablers
• Value Stream Mapping
• Visual Management
• Standardisation
• 5 S (sort, segregate, shine, standardise,
  sustain)

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Lean Techniques

• We can use six lean techniques (especially during
  NPI)
• Project Management
• Integrated Product Team
• Knowledge Management
• Risk Assessment
• Requirements Capture
• Core Competence

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Six Sigma Business Advantages

• It focuses on the customer
• It gives clear objectives and goals to aim for
• 3.14 dpmo
• Its a systematic approach
• Its Measurable and quantifiable
• It uses well-proven statistical tools
• It gives a change in culture
• Inspired by Demings Plan, Do, Check, Act cycle
• Through reducing variation it improves quality

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TQM Business Advantages

• It focuses on the customer
• Improves and unifies processes
• It gives employees moral through involvement in
  decisions
• By reducing waste is reduces costs
• Improves reputation through improved quality
• Uses analytical and statistical tools

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Lean Manufacturing Business Advantages

• It focuses on the customer
• Gives clear objectives and goals
• By reducing waste you also reduce costs and
  increase quality
• Reduces lead time
• Improves flow in processes
• Can be applied to all aspects of the business
• Increases employee knowledge, become experts in
  their field
• Improves cross-functional communication
• Builds customer and supplier relations
• Reduces effect of hierarchy

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How can these tools be complemented to achieve
business success?

• All came about from the Japanese quality
  evolution
• All inspired from Deming's work
• All work towards reducing waste to maximise
  process utilization
• These tools naturally complement themselves
• Lean thinking moves towards JIT and zero waste
• TQM focuses on the customer
• Six Sigma focuses on reduction in variation
• To successfully implement a mixture of these
  depends entirely on the business application
• The mixture of techniques depends on what aspect
  the business would best benefit from focusing on

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References
ECTI (Electrical Engineering/Electronics,
Computer, Telecommunications and Information
Technology Association), 2008. 5th Annual
International Conference of Electrical
Engineering/Electronics, Computer,
Telecommunications and Information Technology
Association. Bangkok, Thailand 14-17 May 2008.
Bangkok Thailand Rahmere, R. , 2011. Top 50
EMS providers cross 150 billion mark ,
Electronics Manufacturing Asia, online
Available atlt http//www.emasiamag.com/article565
9top50emsproviderscross 150billionmark-Asia.htmlgt
Accessed 29 July 2012 SVI Plc., 2011. The
milestones, annual report 2010-2011, Bangkok,
Thailand SVI Plc. Whiteman, A. L., 2009.
Project Management Challenges In The Global
Economy, Project Management Solution, online
Available atlthttp//business.management6.com/Elec
tronics-Manufacturing- Project-Management-Challeng
es-In-The-download-w9119.pdfgt Accessed 28 July
2012
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