...The Juran Trilogy: It is one of the best approaches developed by Dr. Joseph Juran. It has three components: Planning, control, and improvement, and is referred to as the Juran Trilogy. It is based loosely on financial processes such as budgeting (planning), expense measurement (control), and cost reduction (improvement). Quality Planning: The structured process for designing products and services that meet new breakthrough, goals and ensure that customer needs are met. The processes are called Design for Six Sigma or Concurrent Engineering. This can be particularly challenging for a planning team, because customers are not always consistent with what they say they want. The challenge for quality planning is to identify the most important needs from all the needs expressed by the customer. The planning component begins with external customers. Once quality goals are established, marketing determines the external customers, and all organizational personnel determine the internal customer. Once the customers are determined, their needs are discovered by: Being a user of the product or service, * communicating with customers through product or service * satisfaction and dissatisfaction information, or * Simulation in the laboratory. The next step in the planning process is to develop product and/or service features that respond to customer needs, meet the needs of the organization and its suppliers, are competitive, and optimize the costs of...
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...of functions or activities within and organization that work together for the aim of the organization” (Latzko, 1995, p. 35). I at first struggled with the systems concept. Using this approach all components of the system gain and not at a cost to another. With that definition in mind we can apply this thinking to any organization or process. I love the analogy Dr. Deming used by looking at an orchestra as a perfect system. My translation of this analogy is that the sum is greater than the parts. The combined efforts of each member of the orchestra are an outstanding product, beautiful music, regardless of the instrument played. All the orchestra members have the same common purpose (Dr. Deming’s 1st point for management). Thus, providing the orchestra members with fulfillment of doing a good job and the people who get to listen to the fine product are pleased customers. The below flowchart is an example from Dr. Deming’s book of how each area contributes to the overall system. Latzko, 1995, p. 37 In order to apply the systems approach we first need to have the ability to apply what Dr. Deming referred to as The...
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...and managed using tools such as PDCA and DMAIC. If you want to be better than your competitors and to flourish as a business then you must ensure that business processes are continually improved (Liesener). In order to do this action plans need to be developed. For many employees, experienced or less experienced, the variety of problem-solving approaches for action plans can get confusing. But there are not so many differences between these approaches, as you could expect. All differences are depending only on the type of problem, which has to be solved. Various problem-solving approaches like PDCA and DMAIC can be sorted in the following categories (Liesener): 1. Is it a small, medium or large sized problem you want to solve and is the solution of the problem unknown? 2. Does your problem solving strategy follow a continuous improvement process or do you want solve a single problem (e.g. a customer complaint)? What do these approaches have in common? They follow a scientific and methodic way to solve the problem. In addition to that, the different phases in each approach can be mapped to the phases of the others. PDSA The PDSA-Cycle is the classic problem-solving approach in a LEAN environment. PDCA is used for medium sized problems and the Act-phase...
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...focused not only on product/service quality, but also the means to achieve it. Quality management therefore uses quality assurance and control of processes as well as products to achieve more consistent quality. For Factual approach to decision making quality improvement techniques are used. Effective decisions are always based on the data analysis and information. PDCA cycle PDCA (plan–do–check–act) is an iterative four-step problem-solving process typically used in business process improvement. It is also known as the Deming circle, Shewhart cycle, Deming cycle, Deming wheel, control circle or cycle, or plan–do–study–act (PDSA). Meaning PLAN Establish the objectives and processes necessary to deliver results in accordance with the expected output. By making the expected output the focus, it differs from other techniques in that the completeness and accuracy of the specification is also part of the improvement. DO Implement the new processes. Often on a small scale if possible. CHECK Measure the new processes and compare the results against the expected results to ascertain any differences. ACT Analyze the differences to determine their cause. Each will be part of...
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...The Deming Cycle By Paul Arveson W. Edwards Deming in the 1950's proposed that business processes should be analyzed and measured to identify sources of variations that cause products to deviate from customer requirements. He recommended that business processes be placed in a continuous feedback loop so that managers can identify and change the parts of the process that need improvements. As a teacher, Deming created a (rather oversimplified) diagram to illustrate this continuous process, commonly known as the PDCA cycle for Plan, Do, Check, Act*: * PLAN: Design or revise business process components to improve results * DO: Implement the plan and measure its performance * CHECK: Assess the measurements and report the results to decision makers * ACT: Decide on changes needed to improve the process Deming's PDCA cycle can be illustrated as follows: Deming's focus was on industrial production processes, and the level of improvements he sought were on the level of production. In the modern post-industrial company, these kinds of improvements are still needed but the real performance drivers often occur on the level of business strategy. Strategic deployment is another process, but it has relatively longer-term variations because large companies cannot change as rapidly as small business units. Still, strategic initiatives can and should be placed in a feedback loop, complete with measurements and planning linked in a PDCA cycle. To illustrate the relationship...
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...INTRODUCTION – ‘Intrapreneurism is a form of management which, potentially, offers the venture a way of combining the flexibility and responsiveness of the entrepreneurial with the market power and reduced risk of the established organisation’ Gifford Pinchot, in the mid-80s, created the word “intrapreneur” which described employees of large businesses who were hired to behave and think like entrepreneurs. Pinchot defined intrapreneurship as “behaving like an entrepreneur when you’re employed at a large corporation for the benefit of the corporation as a whole” and believed that being appointed as an intrapreneur before giving a shot at entrepreneurship is a great method developing management skills and techniques before stepping into the entrepreneurial world. Apart from just a set of skills and great techniques there are also personality and character qualities that make up a successful intrapreneur or entrepreneur. “The most successful are risk takers who are driven by a vision of something that is better in the world,” Pinchot says. “They are honest and use a balance of intuition and analysis to make their decisions.” Other scholars have defined intrapreneurship in many different of ways. Expressions such as corporate entrepreneurship (Burgelman, 1983, Vesper, 1984; Guth and Ginsberg, 1990; Hornsby et al., 1993, Stopford and Baden-Fuller, 1994), corporate venturing (MacMillan, 1986; Vesper, 1990), and internal corporate entrepreneurship (Schollhammer, 1981, 1982; Jones...
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...for quality management, areas to monitor, regulatory agencies, and resources represent the various points that will be addressed throughout the paper. Foundational Frameworks of QI There are several foundational frameworks within the subject of QI. There are several QI models derived from ideas and theories of leaders. According to Ransom, Joshi, Nash, and Ransom, (2008) PDSA/PDCA, API, FOCUS PDCA, Baldrige Criteria, ISO 9000, Lean, and Six Sigma represent various frameworks used to improve the quality of healthcare. Edward Deming described the Plan-Do-Study-Act (PDSA) cycle a plan to learn and improve the quality of work dated back to 1950s. Later Walter Shewhart developed the Plan-Do-Check-Act (PDCA) cycle for the basis for planning and expressing QI endeavors. The PDSA/PDCA model helps the facility to focus on how to plan for the improvement, how the improvement will be implemented, how the improvement will be identified/monitored, and what was learned from the improvement process. The associates in process improvement (API) represent a model based upon the PDSA cycle. In addition to the PDSA cycle the model adds three fundamental questions: what are we trying to improve, how will we identify the change is an improvement, and what change can we make that will result in improvement according to Ransom et al. (2008). The FOCUS PDCA represents another...
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...future. * Management – Act, art, or manner of handling, controlling, directing, etc. TQM is the art of managing the whole to achieve excellence. "TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society." Total Quality Management (TQM) refers to management methods used to enhance quality and productivity in business organizations. TQM is a comprehensive management approach that works horizontally across an organization, involving all departments and employees and extending backward and forward to include both suppliers and clients/customers. History of Total Quality Management The history of total quality management (TQM) began initially as a term coined by the Naval Air Systems Command to describe its Japanese-style management approach to quality improvement. An umbrella methodology for continually improving the quality of all processes, it draws on knowledge of the principles and practices of: * The behavioral sciences * The analysis of quantitative and non quantitative data * Economics theories * Process analysis TQM Timeline 1920s | * Some of the first seeds of quality management were planted as the principles of scientific management swept through U.S. industry. * Businesses clearly separated the processes of planning and carrying out the plan, and union opposition arose...
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...Deming's teachers, he preached the importance of adapting management processes to create profitable situations for both businesses and consumers, promoting the utilization of his own creation -- the SPC control chart. Dr. Shewhart believed that lack of information greatly hampered the efforts of control and management processes in a production environment. In order to aid a manager in making scientific, efficient, economical decisions, he developed Statistical Process Control methods. Many of the modern ideas regarding quality owe their inspirtation to Dr. Shewhart. He also developed the Shewhart Cycle Learning and Improvement cycle, combining both creative management thinking with statistical analysis. This cycle contains four continuous steps: Plan, Do, Study and Act. These steps (commonly refered to as the PDSA cycle), Shewhart believed, ultimately lead to total quality improvement. The cycle draws its structure from the notion that constant evaluation of management practices -- as well as the willingness of management to adopt and disregard unsupported ideas --are keys to the evolution of a successful enterprise. Deming’s 14 Points on Quality Management, a core concept on implementing total quality management, is a set of management practices to help companies increase their quality and productivity. 1. Create constancy of purpose for improving products and services. 2. Adopt the new philosophy. 3. Cease dependence on inspection to achieve quality. 4. End the practice of...
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...W. Edwards Deming Goetsch & Davis (2010) define quality as being “an energetic condition linked with goods, services, community, developments, and surroundings that go beyond prospect and assists to turn out better worth”. There are many different thoughts on what quality means, and they differ almost as much as they are the same; one thing for certain is that the satisfaction the consumer experiences with a product says a lot about the quality of that product. People expect products that are of high quality without breaking the bank, and this feeds the competitiveness of organizations. Having to juggle putting out high quality products at a good price ensures that quality maintenance is going on in organizations. Each of us has our own view on what quality is, but we all know how important it is in that it not only allows but forces companies to remain competitive to stay in the game and to keep their customers happy. Elements of Quality According to David Chaudron Ph.D. (N/A), quality can be defined as “consistently producing what the customer wants while reducing errors before and after delivery”. Chaudron goes on to say that “quality is not so much an outcome as a never ending process of continually improving the quality of what your company produces”. The elements of quality help because they give the organizations a process in which they are able to maintain their quality standards. Essentially, there are three different elements when it comes to quality...
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...a quality producer of consumer and high-technological products. I can now connect this story of how Toyota’s marketing research team meticulously observed the shoppers in America parked their cars, completed their shopping and loaded their groceries into the boot. The design of the car boots were continuously improved upon, among other detailed innovation based on target customers’ needs. The adoption of total quality management was one of the key success factors that helped Japanese cars outperformed the American and European models in market share, even in the home ground of Americans. Ironically, the secrets of statistical process control and problem-solving techniques were introduced to the Japanese in 1950 by an American, W. Edwards Deming. Fortunately, the Americans finally took heed of quality management three decades later, which brought successes to giants like Dupont, IBM, HewlettPackard, Johnson & Johnson and Chrysler. I appreciate Deming’s concept of changing the ‘common causes’ and removing non-random variations. In problem solving, it means that we need to diagnose the problem and identify the key systematic root cause of the problem, adopt...
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...Chapter One INTRODUCTION BACKGROUND OF THE STUDY The concept of quality has existed for many years, though its meaning has changed dramatically and evolved over time. In the early twentieth century, quality management meant inspecting products to ensure that they met specifications. In the 1940s, during World War II, quality became more statistical in nature. Statistical sampling techniques were used to evaluate quality, and quality control charts were used to monitor the production process. In the 1960s, with the help of so-called “quality expert,” the concept took on a broader meaning. Quality began to be viewed as something that encompassed the entire organization, not only the production process. Since all functions were responsible for product quality and all shared the costs of poor quality, quality was seen as a concept that affected the entire organization. Before the dramatic change, quality was still viewed as something that needed to be inspected and corrected. To survive, companies had to make major changes in their quality programs. Many hired consultants and instituted quality training programs for their employees. A new concept of quality was emerging. One result is that quality began to have a strategic meaning. Today, successful companies understand that quality provides a competitive advantage. They put the customer first and define quality as meeting or exceeding customer expectations. Competition based on quality has grown in importance and has generated...
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...DR. W. EDWARDS DEMING (1900–1993) Dr. W. Edward Deming is best known for reminding management that most problems are systemic and that it is management's responsibility to improve the systems so that workers (management and non-management) can do their jobs more effectively. Deming argued that higher quality leads to higher productivity, which, in turn, leads to long-term competitive strength. The theory is that improvements in quality lead to lower costs and higher productivity because they result in less rework, fewer mistakes, fewer delays, and better use of time and materials. With better quality and lower prices, a firm can achieve a greater market share and thus stay in business, providing more and more jobs. When he died in December 1993 at the age of ninety-three, Deming had taught quality and productivity improvement for more than fifty years. His Fourteen Points, System of Profound Knowledge, and teachings on statistical control and process variability are studied by people all over the world. His books include: Out of the Crisis (1986), The New Economics (1993), and Statistical Adjustment of Data (1943). In emphasizing management's responsibility, Deming noted that workers are responsible for 10 to 20 percent of the quality problems in a factory, and that the remaining 80 to 90 percent is under management's control. Workers are responsible for communicating to management the information they possess regarding the system. Deming's approach requires an organization-wide...
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...EXECUTIVE SUMMARY As every business concern irrespective of its size, nature, and age needs an adequate concentration on its supply chain to carry out regular business operations and survive in the international competition. A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. The project report titled “Consumer Buying Behavior of Volkswagen Cars For Shreekripa Automobiles Pvt. Ltd, Nashik” deals with this matter and is based on the in-house industrial training at Shreekripa Automobiles Pvt. Ltd, pertaining to the requirement for the Master of Business Administration from “Kautilya Institute of Management & Research, Wagholi, Pune”. Everest Industries Ltd formerly subsidiary of ACC Ltd, Founded in 1934, is engaged in building solutions like Roofing, Ceiling, Wall, Flooring, Cladding, Door and the Pre Engineered steel Buildings for the Industrial, Commercial & Residential sector. Holcim, world’s second largest cement producer gained control of Everest Industries after acquiring ACC by gaining majority stake in Ambuja cements India from Sekhsarias. In 2006 Holcim exited from Everest Industries after selling their stake back to Everest finvest (India) controlled by Sekhsarias for Rs 134 a share. Company is renowned...
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...Continuous Improvement versus Traditional Approach Traditional Approach * Market-share focus - * Individuals Daily Management is a system that enables everyone to know what he or she has to do to make the organization run smoothly. It includes what has to be measured and controlled to make this happen. The thrust of successful Daily Management is centered around the participation of all employees in the discovery and implementation of small, incremental, continuous improvements that they can make in their own work environment. Daily Management is an activity that can be started by an individual, work team, department, or organization. It works best when the entire organization is geared toward continuous improvement in its daily tasks. Daily Management can be viewed as the application of the PDCA Cycle to daily incremental continuous improvement. In order to be effective at Daily Management, you must: * Know your organization’s vision and mission * Know who your customers are * Know your customers’ needs and expectations * Know your suppliers * Know how to accurately communicate your needs and expectations to your suppliers * Know thoroughly the product or service that your organization delivers to the ultimate user * Know how your job fits into the overall product or service of the organization * Know your job thoroughly * Know your process and all its trifles * Know that you will be rewarded for continuous improvement activities ...
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