TOTAL QUALITY MANAGEMENT TOOLS ADOPTED BY THE VOLVO COMPANY

Submitted by, Sharath 4SX12MBA52 MBA Section ‘C’

Submitted to, Mr. Karthik. K Lecturer MBA department Sahyadri College

Date of submission: 17-04-2014

Table of Contents
1.0 Company introduction 4
2.0 Total quality management meaning 4
3.0 six sigma concept 4
3.1 steps taken by to Implement it 4
4.0 PRQP Advanced production quality planning 8 4.1 Responsibility’s in APQP 9 4.2 APQP Planning 9 4.3 APQP Review 10
5.0 Quality management in PPAP (production part approval process) 11
6.0 The 8D framework 12 6.1 Background of 8D 12 6.2 What is 8D? 12 6.3 The 8 discipline 12
7.0 The QJ process 14 7.1 Identify new QJ 14 7.2 Open New QJ 14 7.3 Investigate QJ 15 7.4 Develop solution 15 7.5 implement solution 16 7.6 Follow up 16
8.0 poka-yoke 17
9.0 Specification paper 17
10.0 Warning light 17
11.0 Scanner 17

Table of Figures
Figure 1: six sigma improvement process transactional tasks 6
Figure 2: Process Input and Output 7
Figure 3: An example of APQP planning 10
Figure 4: This picture illustrates how to match Volvo GDP at part level with supplier 11
Figure 5: chart showing PPAR process 12
Figure 6: The eight steps in 8D 14

Abstract
Maintaining quality in production system management is very important in competitive world. Volvo implemented poka-yoke system in order to maintain zero defects in the production system. Volvo Powertrain has a problem solving process called the QJ-process, which is based on the 8D framework. If quality issues occur that are severe or urgent enough, a problem-solving project is initiated, the QJ-process is due to this very important for Volvo Powertrain. This thesis is made to investigate Volvo Powertrains current procedure on solving problems, identify best practice and identify areas of improvement.in this article six sigma program, poka-yoke system,8D program, quality journal is been discussed

1.0 Company introduction:
The VOLVO group is one of the world’s leading manufacturers of trucks, buses, and construction equipment and drive systems for marine and industrial application. The VOVLVO group, which employs about 115000 people, has production facilities in 18 countries and sales of products in more than 190 markets.
2.0 Total quality management
Total quality management (TQM) was developed by William Deming, a management consultant whose work had great impact on Japanese manufacturing. While TQM shares much in common with the Six Sigma improvement process, it is not the same as Six Sigma. While it focuses on ensuring that internal guidelines and process standards reduce errors, Six Sigma looks to reduce defects. Quality management systems, certified according to ISO 9000, are used to define and control responsibilities and follow-up procedures Today most of the employees in the Volvo Group work in an ISO 9000-certified unit
The company mainly implemented 3 TQM tools * Six sigma concept * 8D framework concept * Quality journals
3.0 Six sigma concept:
Six sigma is an improvement initiative that needs senior management commitment, this is regardless of in what scope or at what level in the company it is launched. It is a strategic decision and the success of the initiative highly depends on the senior management’s ability to provide its long-term commitment
3.1 Steps taken by the organisation to implement it
3.1.1 Define
1. Generate projects to be improved and prioritize them
To be able to start a Six Sigma DMAIC project, possible improvement opportunities have to be localized within the organization. (Bergman, B., Korslid, D. and Magnusson, K., 2003)

Figure1: six sigma improvement process transactional tasks, by (Anders Fundin 2013)
2. Develop project and team character
Every project is of different nature, it is because of that important to formalize the team and the project, by allocating resources, and ensure that everything and everyone that are needed is included in the project. (Bergman, B., Korslid, D. and Magnusson, K., 2003)
3. Identify the outcome to be improved
Six Sigma has another important step in the define phase, which is to define the output of the process, which needs to be improved. The output should be the characteristic or characteristics that are critical-to-quality (CTQ) and should be the focus of improvement. (Bergman, B., Korslid, D. and Magnusson, K., 2003)

Figure2: Process Input and Output, by (Bergman, B., Korslid, D. and Magnusson, K., 2003)
4. Determine performance/map process
It is also important to assure that the group shares a common understanding of the process and to know the current performance of y before continuing to the measure phase. It is important to be aware of the current performance to be able to evaluate the project afterwards, to determine if and by how much it has improved. For each output, identify input signals In the measure phase it is important to identify input factors that could possibly affect output, this procedure should be done for each of the outputs identified. (Bergman, B., Korslid, D. and Magnusson, K., 2003)
3.1.2 Measure
5. For each output, identify input signals
In the measure phase it is important to identify input factors that could possibly affect output, this procedure should be done for each of the outputs identified. The input factors are as explained earlier consisting of control factors and noise factors. (Bergman, B., Korslid, D. and Magnusson, K., 2003)
6. Develop measurement plan
To be able to measure the right thing a measurement plan has to be established. It should contain which factors that should be measured and how to measure them. (Bergman, B., Korslid, D. and Magnusson, K., 2003)

7. Data collection of input- and output-signals
This step is to ensure that data is recorded according to the measurement. It is important to document how the measurements are performed, to detect when the measurement is not performed according to the plan, to be able interpret the result of it in the right way. (Bergman, B., Korslid, D. and Magnusson, K., 2003)
3.1.3 Analyse
8. Get to know the output based on the new data
When the measurements have been performed it is time to get to know the output better based on the results of them. Firstly understanding how the output works by looking into the size and variation of it. (Bergman, B., Korslid, D. and Magnusson, K., 2003)
9. Identify input signals that influence the output signal
If the process is unpredictable the cause or causes of this need to be addressed first through a logical improvement action. (Bergman, B., Korslid, D. and Magnusson, K., 2003)
10. Establish improvement targets
Once influencing factors has been identified the improvement targets can be set. Improvements can be made in three different ways. By gaining predictability, reducing variation and/or improving location.(Bergman, B., Korslid, D. and Magnusson, K., 2003)
3.1.4 Improve
With the knowledge gained through the other steps, it is in this phase time to implement a solution or solutions and get a sustainable result. (Bergman, B., Korslid, D. and Magnusson, K., 2003)
11. Design solution(s)
The target here is to identify one or more ways to improve the performance with the knowledge gained. (Bergman, B., Korslid, D. and Magnusson, K., 2003)

12. Cost/benefit analysis
As a second step the solution or solutions should be evaluated in the terms of costs and benefits. If many solutions are generated from the prior step they could also be compared. (Bergman, B., Korslid, D. and Magnusson, K., 2003)
13. Implement best solution
In this phase the implementation should be carried out based on the cost/benefit analysis. An important thing here is to make and stick to an implementation plan. (Bergman, B., Korslid, D. and Magnusson, K., 2003)
3.1.5 Control
14. Verify the planned improvements in the output
In this phase the result of the implementation is going to be verified. The output (y) is monitored in order to make sure that the target has been achieved. (Bergman, B., Korslid, D. and Magnusson, K., 2003)
15. Estimate the cost saving
When the output has become predictable it is time to estimate the actual saving. This can be done in various ways, including or excluding indirect costs and benefits. (Bergman, B., Korslid, D. and Magnusson, K., 2003)
16. Institutionalize and document
This is a very important step, where the result should be institutionalized; this can include new or updated drawings of the product, updating process procedures etc. (Bergman, B., Korslid, D. and Magnusson, K., 2003)
17. Communicate and visualize
The result from the project also needs to be communicated and visualized to all involved parties. (Bergman, B., Korslid, D. and Magnusson, K., 2003)
4.0 APQP: ADVANCED PRODUCT QUALITY PLANNING (With respect to suppliers)
VOLVO support brands by proposing and developing products to ensure strong competitive offers for each of our brands. Remaining competitive in the markets where Volvo participates requires continuous upgrades and improvements to existing product offerings and regular introduction of new products. Supporting the introduction of new products requires a well-defined and organized process for project planning and launch.

APQP is the standard planning method for suppliers bringing a product to production. Suppliers are expected to develop and use a detailed APQP plan for the installation and prove out of a robust production process (Volvo 3P, Powertrain, Buses. SQAM . Edition 06-2010)

4.1 RESPONSIBILITIE’S IN APQP
The SUPPLIER is responsible:
• To develop and execute an APQP Plan for successful product launch
• To organize the cross-functional APQP team process (Volvo 3P, Powertrain, Buses. SQAM . Edition 06-2010)
VOLVO is responsible:
• To identify the Volvo project team members,
• To assign the SQE who shall coordinate the completion of APQP activities with the project team process (Volvo 3P, Powertrain, Buses. SQAM . Edition 06-2010)

4.2 APQP - PLANNING
The first APQ Planning is expected from suppliers with the answer to the Request For Quotation.
Figure 3: An example of APQP planning, as expected by Volvo (Volvo 3P, Powertrain, Buses. SQAM . Edition 06-2010)
The APQ Planning identifies the tasks to be completed, the expected timing and the assigned responsibility for completion. It identifies the critical path of the Project The objective of the planning process is to deliver the project on time, at cost and that the products delivered are at the highest level of quality.
The APQP timing chart, available on supplier portal, gives an overview of when the generic APQP activities should occur in a project or in relationship with the part release. It is a help to build the APQP planning, in any case this APQP timing chart doesn’t constitutes an APQ Planning according to Volvo Expectations. Process (Volvo 3P, Powertrain, Buses. SQAM . Edition 06-2010)

4.3 APQP REVIEWS
For selected components, suppliers are requested to report the progress of their APQP plan regularly during the project development.

Figure 4: This picture illustrates how to match Volvo GDP at part level with supplier APQP plan in case of a development supplier process (Volvo 3P, Powertrain, Buses. SQAM . Edition 06-2010)

This reporting is supported by the “APQP review” file that is available on the supplier portal. This file is owned by the supplier, updated by the supplier and shared with Volvo team during APQP reviews
APQP Reviews are formal meetings where VOLVO reviews supplier’s APQP plan. VOLVO and supplier check that project at component level is on track with respect to deadlines and results. process (Volvo 3P, Powertrain, Buses. SQAM . Edition 06-2010)

5.0 Quality management in PPAP: PRODUCTION PART APPROVAL PROCESS

Figure 5: chart showing PPAR process (Volvo 3P, Powertrain, Buses. SQAM . Edition 06-2010)
The Production Part Approval Process (PPAP) demonstrates that a manufacturing process used to produce parts for Volvo is fully developed, thoroughly tested, and capable of serial production of parts conforming to the technical specifications. For the PPAP (as for the APQP) VOLVO follows the AIAG requirements, using exceptions applied for truck and heavy equipment
Sample parts and supporting documentation are
Submitted to show evidence that:
• The design records and specifications have been properly understood and met
• The manufacturing process has the capability to produce conforming parts in the actual production environment.
• The manufacturing process has the capacity to support production quantities at a consistent quality level process (Volvo 3P, Powertrain, Buses. SQAM . Edition 06-2010)

6.0 The 8D framework
6.1 Background of 8D
The 8D framework has historical roots back in the MIL-STD 1520 “Corrective Action and Disposition System for Nonconforming Material” quality standard used by the US military. It was introduced in 1974 and used by the military suppliers until 1995. The main goal was to identify errors, make root cause analysis, limitation of waste, prevent reoccurrence, cost reduction and raise the quality in general (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007).

6.2 What is 8D?
Team Oriented Problem Solving (8D) is a multi-disciplined approached that has integrated the traditional approach with structures for supporting and enhancing teamwork. One major part of the 8D methodology is concerning how the team should work in order to get a good result. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)

6.3 The 8 Disciplines
The 8D framework comprises Eight Disciplines (steps), which are described according to Whitfield and Kwok (1996) as follows:

Figure 6: The eight steps in 8D (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)

6.3.1 1D – Use a team approach
In this step the team is established, it is important that the team is cross-functional. The persons selected should have key competence connected to the problem and be from different areas of expertise. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
6.3.2 2D – Describe the Problem
In is in this phase important to understand and map the problem. The problem can be characterized by 5W2H (Who, What, When, Where, Why, How and How many), in order to describe it in quantitative terms. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
6.3.3 3D – Contain the Problem
In order to prevent the problem from getting bigger or spreading, preliminary actions have to be taken. When “containing the problem” it is important to find affected areas quickly, to minimize the impact that may cause on the market or in production. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
6.3.4 4D – Identify the Root Cause
In this step potential root-causes to the problem should be generated, structured and prioritized for further investigation (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
6.3.5 5D – Validate corrective actions
The potential main causes are in this phase being investigated and verified. Potential solutions are also being generated for each cause (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
6.3.6 6D – Take corrective actions
In this step the aim is to implement the actions that were chosen in the previous step. The team should develop an implementation strategy, so that it is clear what is going to change and who is responsible. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
6.3.7 7D – Prevent recurrence
It is important to monitor the problem afterwards to detect any possible re-occurrence the problem. It is also important to evaluate the implementation, ensuring that the corrective actions are solving the root cause without causing new problems. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
6.3.8 8D – Congratulate the Team
Once the problem is successfully resolved it is important to distinguish what the team has accomplished and give them credit for their collective efforts. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.0 The QJ process
The QJ process is a process within Volvo Powertrain and is applied to solve Market Quality Problems (MQRs)
The QJ process is constructed to identify, solve, implement and follow-up solutions on product quality problem that occur on current application at the market. A QJ could be opened based either on problem reported by the market or problems found internally. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.1 Identify New QJ
7.1.1 Open Draft QJ
When a Case Manager (CM) has identified a potential quality issue, he or she should check if the problem could be connected to any existing QJ. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.1.2 Initial Analysis
Initial information concerning the quality issue should be collected in order to get a better understanding what the problem is about. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.2 Open new QJ
7.2.1 Open QJ Decision
After the initial analysis has been done, it should be decided if the quality issue should be opened as a QJ or put on hold to get more information about the issue. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.2.2 Prepare QJ-Kick-off
When the CM has decided to open the QJ, contact with CPM Maintenance has to be established in order to finish the QJ Checklist. People connected to the problem should be put together to create a QJ-team. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)

7.2.3 QJ-Kick-off
The PMQJ or CM is responsible to invite the QJ-team members and others stakeholders that needs to follow the progress of the QJ. At the Kick off, both the QJ-team and others that should be involved in the QJ, should be invited. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.3 Investigate QJ
7.3.1 Investigate Root Cause(s)
Investigating and understanding the root-cause(s) is one of the most important steps in order to get an effective solution. The PMQJ is responsible for making the root-cause analysis (RCA), but can also get a lot of support from the Quality department that is experts in making RCAs. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.3.2 Verify Root Cause(s)
To get a better understanding of the quality issue and the possible root-causes, a more thorough analyse has to be performed. In the analysis, verification tests are performed together with other ways to ensure that the possible causes are one of the root causes or not. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.3.3 Prepare Corrective Action Decision
After possible solution(s) are found the focus should be to prepare the corrective action decision, which is the process where production and aftermarket solutions are developed. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.3.4 Develop Campaign Decision Material
If it is recommended to launch any internal or external campaigns, the CM is responsible to prepare the campaign material. If there are any following QJs, campaign material for these should also be prepared, but to do this is up to the following QJ responsible. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.4 Develop Solution
During this phase the final corrective actions are developed into the detailed aftermarket solution, where every uncertainty should be solved. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.4.1 Develop production solution
In this phase the new solution should be tested in the production, in order to discover how the solution is applicable in it. It is tested to see if changes have to be made to either the solution or the production. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.4.2 Develop Aftermarket solution
It is up to the Aftermarket Responsible to make sure that the decided aftermarket solution is initiated to the aftermarket. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.4.3 DCN Governance (Design Change Notice)
It is necessary to have an approved Product Change Request from the DCN Governance to be able to release the Design Change Notice. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.5 Implement Solution
7.5.1 Prepare Production
The aim with the preparation of production is to make sure that all supplies are able to deliver to the date that are set and that production have planned to make the change in production at the given time. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.5.2 Prepare Aftermarket
This phase is to prepare the aftermarket and ensure that there are spare parts available at the dealers, so that they can replace the affected part when it is needed. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.5.3 Implement Aftermarket
The new solution cannot just be sent out on the aftermarket, it has to be prepared with new tools, instructions, and in some cases it is needed to educate the dealer to make the implementation less problematic. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.5.4 Market Ready
When all the activities in Market Ready-criteria are fulfilled and implemented, the responsible CM could make the decision that the QJ is solved in a proper way. The QJ is then in the Market Ready phase. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
7.6 Follow-up
At the Corrective Action meeting, a date should be set when the END phase should be verified by following up the effectiveness of the introduced solution. To be able to pass the follow-up phase and move into the next phase, the END Decision, the effectiveness has to be checked and the plan for doing this should be documented in the Argus system. It is the CM that is responsible for this phase.

7.7 Check effectiveness
The effectiveness is recommended to check six and twelve months after the Market ready decision. (Behrens, B. -A., Wilde, I. and Hoffmann, M., 2007)
8.0 Poka-Yoke
VCT (Volvo Cars Torslanda) has applied an error proof device (Poka-Yoke) which is an electronic system with indicators. This helps the operator to pick the right component.
Here are the most common errors which can be prevented due to poka-yoke
1. Missing process steps.
2. Process errors.
3. Miss-set work pieces.
4. Missing parts. 5. Wrong parts.
6. Wrong work piece processed.
7. Faulty machine operation.
8. Adjustment errors.
9. Equipment not set up properly.
10. Tools inadequately prepared.
9.0 Specification paper
Papers are attached to the variants including the components specifications. The operator can see the components required by the variant and pick them and assemble
10.0 Warning lights
This system is used for unique cars that seldom come to the assembly line. This warning system warns the operator to pick and assemble the unique component on the unique car.
11.0 Scanner
The system helps the operator to verify if the right component is picked by scanning the barcode of each component

Conclusion
It is very important to any company to be the best in quality production and also maintain the best practise in production to have a good production management system and have a good quality control which enables the company to maintain good customer and reduce the production cost and also element the task which has no value or which will not contribute the production task. The QJ-process is a process that fits its intended purpose to a great extent. The QJ-process is good in order to handle problems that appear ad hoc, the DMAIC structure on the other hand is more applicable when improving processes rather than solving urgent problems. Statistical methods should however be used more than they are today. The company used many quality management system like six sigma, supplier quality management (PPAR), poka-yoke system etc.in order to be the best in automotive industry its very important and company has to follow this in future to maintain good competition and to be market leader
.

Bibliography
Behrens, B. –A. (2007). Complaint management using the extended 8D-method along the automotive supply chain. Journal of Production Engineering, vol. 1, 91-95.
Norén, M. L. (2011). Assessment and improvement of Volvo Powertrain‟s problem solving process “Quality Journal” vs. “Six Sigma”. Volvo 3P, Powertrain, Buses. SQAM .Edition 06-2010 (Norén, 2011)
http://www.volvogroup.com/group/global/en