TQM Lecture Notes Unit 3

GE3752 Total Quality Management
Unit Lecture
TQM TOOLS & TECHNIQUES I 19
No 3 No
Topic The seven traditional tools of quality
Bloom’s
Learning Outcome (LO) At the end of this lecture, students will be able to Knowledge
Level
Identify and describe the seven traditional tools of quality and
LO1 Understand (K2)
their applications in quality management.
Explain he seven traditional tools of quality to analyze and solve
LO2 Understand (K2)
quality-related problems in various organizational contexts.
1. Introduction
The seven traditional tools of quality are fundamental instruments used for quality
improvement and problem-solving. They provide a structured approach to analyzing data,
identifying issues, and implementing solutions.
2. The Seven Traditional Tools
1. Cause-and-Effect Diagram (Ishikawa or Fishbone Diagram)
o Purpose: Identifies potential causes of a problem and organizes them into
categories.
o Components: Categories of causes (e.g., materials, methods, manpower,
machines, measurements, environment).
o Application: Useful for root cause analysis and problem-solving.
Fig 3.1: Cause-and-Effect Diagram
Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 1 of 43

Fig 3.2: Cause-and-Effect Diagram of House Paint Peeling
2. Check Sheet
o Purpose: Collects data in a systematic way to identify patterns or issues.
o Components: A simple form to record occurrences of specific events or
defects.
o Application: Helps in data collection and tracking trends over time.
Fig 3.3: Check Sheet for Paint Nonconformities

3. Histogram
o Purpose: Displays the distribution of data points and reveals patterns or
variations.
o Components: Bar chart representing frequency distribution of a variable.
o Application: Useful for visualizing data distribution and identifying common
issues.
Fig 3.4: Frequency Histogram
Fig 3.5: Different Historgram Shapes

4. Pareto Chart
o Purpose: Highlights the most significant factors in a dataset, following the
Pareto principle (80/20 rule).
o Components: A bar chart showing the frequency of problems or defects,
ordered by their impact.
o Application: Helps prioritize issues by focusing on the most critical problems.
5. Control Chart
o Purpose: Monitors process variation and performance over time.
o Components: A line graph with upper and lower control limits, showing data
points and trends.
o Application: Used to detect variations in processes and maintain control.
6. Scatter Diagram
o Purpose: Shows the relationship between two variables.
o Components: A plot of data points on a graph with two axes representing
different variables.
o Application: Identifies correlations or patterns between variables.
7. Flowchart
o Purpose: Provides a visual representation of a process or workflow.
o Components: Symbols representing different process steps, decision points,
and flow directions.
o Application: Helps in understanding and analyzing processes, identifying
inefficiencies.
3. Applications and Benefits
 Data Analysis: Tools help in gathering, analyzing, and interpreting data to make
informed decisions.
 Problem Solving: Facilitate identifying and addressing root causes of quality issues.
 Process Improvement: Assist in streamlining processes and improving overall
efficiency.
 Communication: Provide a clear and visual representation of data and processes,
enhancing understanding and collaboration.
4. Integration of Tools
The seven traditional tools are often used together to provide a comprehensive approach to
quality management. For example, a flowchart may be used to map out a process, followed
by a cause-and-effect diagram to identify potential causes of issues. Data collected through

check sheets and analyzed using histograms and Pareto charts can guide improvements
monitored through control charts.
Key Takeaways:
 The seven traditional tools of quality offer a systematic approach to quality
management.
 Each tool serves a specific purpose and can be applied in various stages of problem-
solving and process improvement.
 Effective use of these tools contributes to enhanced quality, efficiency, and overall
organizational performance.
Assessment questions to the lecture
Bloom’s
Qn No Question Answer Knowledge
Level
1 Which tool is used to identify and categorize potential c Remembering
causes of a problem?
a) Histogram
b) Scatter Diagram
c) Cause-and-Effect Diagram
d) Control Chart
2 What does a Pareto Chart primarily show? c Remembering
a) The relationship between two variables
b) The frequency distribution of a variable
c) The most significant factors in a dataset
d) The process flow and steps
3 Which tool displays data in a bar chart format to b Remembering
reveal distribution patterns?
a) Check Sheet
b) Histogram
c) Flowchart
d) Scatter Diagram
4 What is the primary purpose of a Control Chart? b Remembering
a) To collect data systematically
b) To monitor process variation and performance

c) To show the relationship between variables

d) To display the distribution of data
Students have to prepare answers for the following questions at the end of the lecture
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Explain the purpose of a Scatter Diagram and how 2 CO3 Understanding
it can be used in quality management.
2 Describe how a Pareto Chart helps prioritize 2 CO3 Understanding
quality issues and its significance in problem-
solving.
Reference Book
Library Book
Author(s) Title of the book
Accession No
Dale H.Besterfiled Total Quality Management 5624

Unit Lecture
No 3 No
Topic New management tools - Six-sigma Process Capability
Bloom’s
Level
Define Six Sigma and process capability and their roles in
LO1 Understand (K2)
improving quality management.
Explain Six Sigma methodology and process capability
LO2 analysis to enhance organizational performance and process Understand (K2)
efficiency.
1. Introduction to Six Sigma
Six Sigma is a data-driven methodology aimed at improving processes by reducing variability
and defects. It uses statistical analysis to achieve near-perfection in quality.
Key Concepts of Six Sigma:
 Definition: Six Sigma aims to achieve a defect rate of fewer than 3.4 defects per
million opportunities, representing a high level of process quality.
 DMAIC Methodology: The core approach used in Six Sigma for process
improvement, which stands for Define, Measure, Analyze, Improve, and Control.
o Define: Identify the problem, set objectives, and define project scope.
o Measure: Collect data and measure current process performance.
o Analyze: Analyze data to identify root causes of defects or inefficiencies.
o Improve: Develop and implement solutions to address root causes.
o Control: Monitor the process to ensure improvements are sustained over time.
Key Tools in Six Sigma:
 Statistical Process Control (SPC): Monitors process behavior using control charts.
 Failure Mode and Effects Analysis (FMEA): Identifies potential failure modes and
their impacts.
 Design of Experiments (DOE): Determines the effect of various factors on process
outcomes.

Fig 3.6: Nonconformance Rate When Process is Centered
Fig 3.6: Nonconformance Rate When Process is Off-Center

Benefits of Six Sigma:

 Reduced Defects: Achieves high-quality standards with minimal defects.
 Cost Savings: Decreases costs associated with rework, scrap, and defects.
 Improved Efficiency: Streamlines processes and reduces waste.
 Enhanced Customer Satisfaction: Meets or exceeds customer expectations with
higher quality products and services.
2. Introduction to Process Capability
Process capability measures a process's ability to produce output within specified limits. It
evaluates how well a process meets its design specifications.
Key Concepts of Process Capability:
 Definition: The extent to which a process can consistently produce output within set
limits or specifications.
 Capability Indices: Commonly used metrics to evaluate process capability.
o Cp (Process Capability Index): Measures the potential capability of a
process, assuming it is centered within specification limits.
o Cpk (Process Capability Index with Centering): Measures the capability of
a process considering how centered it is within specification limits.
o Pp (Process Performance Index): Assesses the overall performance of a
process over time, considering historical data.
o Ppk (Process Performance Index with Centering): Similar to Cpk but based
on performance over time.
Calculating Capability Indices:
 Cp = (USL - LSL) / (6 * σ)
o USL: Upper Specification Limit
o LSL: Lower Specification Limit
o σ: Standard Deviation
 Cpk = min [(USL - μ) / (3 * σ), (μ - LSL) / (3 * σ)]
o μ: Process Mean
Benefits of Process Capability Analysis:
 Identifies Process Performance: Provides insight into how well a process meets its
specifications.
 Improves Process Design: Guides improvements by highlighting areas of variation.
 Enhances Quality Control: Ensures processes are capable of consistently producing
quality output.

 Facilitates Decision Making: Assists in making informed decisions about process

adjustments and improvements.
3. Integration of Six Sigma and Process Capability
 Six Sigma: Uses process capability analysis to assess and improve processes. Six
Sigma projects often focus on enhancing process capability by reducing variation and
defects.
 Process Capability: Provides a baseline for measuring improvements achieved
through Six Sigma initiatives.
Key Takeaways:
 Six Sigma and process capability are essential tools for achieving high-quality
standards and efficient processes.
 Six Sigma's DMAIC methodology provides a structured approach to process
improvement.
 Process capability metrics help assess and ensure that processes meet design
specifications and performance standards.
Bloom’s
Level
1 What does the Six Sigma methodology primarily focus b Remembering
on?
a) Increasing production speed
b) Reducing defects and variability
c) Expanding market share
d) Enhancing employee skills
2 Which index measures a process's capability assuming a Remembering
it is perfectly centered within specification limits?
a) Cp
b) Cpk
c) Pp
d) Ppk
3 What is the primary purpose of process capability b Remembering
analysis?

a) To identify marketing opportunities

b) To evaluate and improve process performance
c) To design new products
d) To train employees
4 Which tool in Six Sigma is used to determine the b Remembering
impact of different factors on process outcomes?
a) Control Chart
b) Design of Experiments (DOE)
c) Failure Mode and Effects Analysis (FMEA)
d) Scatter Diagram
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Explain the purpose of the DMAIC methodology 2 CO3 Understanding
in Six Sigma and its significance in process
improvement.
2 Describe the process capability indices Cp and 2 CO3 Understanding
Cpk and their roles in evaluating process
performance.
Reference Book
Library Book
Accession No

Unit Lecture
No 3 No
Topic Bench marking - Reasons to benchmark
Bloom’s
Level
Explain the concept of benchmarking and its importance in
LO1 Understand (K2)
evaluating and improving organizational performance.
Identify and use appropriate benchmarking practices to enhance
LO2 Understand (K2)
operational efficiency and competitive advantage.
1. Introduction to Benchmarking
Benchmarking is the process of comparing an organization’s performance, processes, or
practices against those of leading organizations or industry standards. It helps in identifying
best practices, setting performance standards, and achieving continuous improvement.
2. Reasons to Benchmark
1. Identify Best Practices:
o Purpose: Benchmarking helps organizations identify and adopt best practices
from industry leaders or competitors. By learning from others, organizations
can enhance their own processes and practices.
o Application: An organization may study a competitor's superior customer
service practices and implement similar strategies to improve its own customer
service.
2. Improve Performance:
o Purpose: Comparing performance metrics with industry standards or leading
organizations helps identify performance gaps and areas for improvement. It
provides a clear target for performance enhancement.
o Application: An organization can benchmark its manufacturing efficiency
against industry leaders to identify inefficiencies and implement
improvements.
3. Enhance Competitiveness:
o Purpose: Benchmarking helps organizations understand their competitive
position and develop strategies to gain a competitive edge. It aids in
identifying areas where the organization can outperform competitors.

o Application: A company may benchmark its product features and pricing

against competitors to adjust its offerings and better position itself in the
market.
4. Set Realistic Goals:
o Purpose: By analyzing the performance of top-performing organizations,
benchmarking provides a basis for setting realistic and achievable goals. It
helps establish performance targets that are grounded in industry standards.
o Application: An organization can set performance improvement goals based
on the benchmarks of industry leaders, ensuring that targets are challenging
yet attainable.
5. Drive Innovation:
o Purpose: Benchmarking exposes organizations to new ideas and innovative
practices. By examining how other organizations address challenges,
companies can incorporate innovative solutions into their own practices.
o Application: An organization may adopt new technologies or processes
identified through benchmarking to drive innovation and stay ahead in the
industry.
6. Increase Efficiency:
o Purpose: Benchmarking helps organizations identify inefficiencies and
streamline processes. It provides insights into more efficient ways of
operating, reducing waste and improving productivity.
o Application: By benchmarking operational processes, an organization can
identify areas of waste and implement more efficient methods, leading to cost
savings and improved operational efficiency.
7. Boost Employee Morale:
o Purpose: Setting performance standards based on benchmarking can motivate
employees by providing clear goals and demonstrating that their efforts are
aligned with industry standards.
o Application: Employees are more likely to be engaged and motivated when
they see that their work contributes to achieving high standards and compares
favorably with industry leaders.
3. Types of Benchmarking
 Internal Benchmarking: Comparing performance or processes within different
departments or units of the same organization.

 Competitive Benchmarking: Comparing performance against direct competitors.

 Functional Benchmarking: Comparing processes or practices with organizations
that have similar functions but are not direct competitors.
 Generic Benchmarking: Comparing performance with organizations that have
similar processes or practices, regardless of industry.
4. Benchmarking Process
1. Identify What to Benchmark: Determine the specific processes, functions, or
metrics to compare.
2. Select Benchmarking Partners: Identify organizations or standards for comparison.
3. Collect Data: Gather performance data from both internal and external sources.
4. Analyze Data: Compare performance metrics to identify gaps and opportunities for
improvement.
5. Implement Improvements: Develop and execute action plans based on
benchmarking findings.
6. Monitor and Review: Regularly review performance and make adjustments as
needed.
Bloom’s
Level
1 What is the primary purpose of benchmarking in an b Remembering
organization?
a) To increase employee salaries
b) To compare performance with industry leaders
c) To expand into new markets
d) To redesign the organizational structure
2 Which of the following is NOT a reason to c Remembering
benchmark?
a) Identify best practices
b) Set realistic goals
c) Increase employee turnover
d) Enhance competitiveness

3 What type of benchmarking involves comparing b Remembering

performance with direct competitors?
a) Internal Benchmarking
b) Competitive Benchmarking
c) Functional Benchmarking
d) Generic Benchmarking
4 Which step in the benchmarking process involves c Remembering
comparing performance metrics to identify gaps?
a) Collect Data
b) Identify What to Benchmark
c) Analyze Data
d) Implement Improvements
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Explain how benchmarking can help an 2 CO3 Understanding
organization set realistic performance goals.
2 Describe the process of benchmarking and its 2 CO3 Understanding
significance in identifying performance gaps.
Reference Book
Library Book
Accession No

Unit Lecture
No 3 No
Topic Benchmarking process, What to Bench Mark
Bloom’s
Level
Describe the steps involved in the benchmarking process and
LO1 Understand (K2)
the importance of selecting appropriate benchmarks.
Explain benchmarking process to assess and improve specific
LO2 Understand (K2)
organizational performance metrics.
1. Benchmarking Process
Benchmarking is a systematic process used to compare an organization’s performance,

processes, or practices with those of leading organizations to identify areas for improvement.
The process involves several key steps:
1. Identify What to Benchmark:

o Purpose: Determine the specific areas, processes, or metrics to compare. This
could include operational processes, performance metrics, or practices related
to customer service, quality, or efficiency.
o Examples: Benchmarking could focus on production efficiency, customer
satisfaction, financial performance, or employee productivity.
2. Select Benchmarking Partners:
o Purpose: Choose organizations or industry standards for comparison. Partners
could be direct competitors, organizations with similar functions, or industry
leaders known for best practices.
o Criteria: Select partners based on relevance to the benchmarking focus,
industry similarity, or exemplary performance in the chosen area.
3. Collect Data:
o Purpose: Gather quantitative and qualitative data from both internal processes
and external benchmarking partners. This involves collecting performance
metrics, process details, and best practices.

o Methods: Use surveys, industry reports, internal records, and interviews to

collect comprehensive data.
4. Analyze Data:
o Purpose: Compare the collected data to identify performance gaps and areas
for improvement. Analyze discrepancies between internal performance and
benchmarking standards.
o Techniques: Use statistical analysis, trend analysis, and gap analysis to
interpret the data and uncover insights.
5. Implement Improvements:
o Purpose: Develop and execute action plans based on the benchmarking
analysis to address identified gaps and enhance performance.
o Actions: Implement process changes, adopt best practices, and allocate
resources to areas requiring improvement.
6. Monitor and Review:
o Purpose: Regularly track the results of implemented improvements and adjust
strategies as needed. Ensure that performance improvements are sustained and
continuously refined.
o Tools: Use performance metrics, feedback mechanisms, and regular reviews
to monitor progress.
2. What to Benchmark
Selecting the right aspects to benchmark is crucial for achieving meaningful improvements.
Common areas to benchmark include:
1. Processes:
o Purpose: Evaluate and compare specific operational processes to identify
efficiencies and best practices.
o Examples: Production processes, customer service procedures, or supply
chain management.
2. Performance Metrics:
o Purpose: Compare performance indicators to measure how well an
organization meets industry standards.
o Examples: Financial performance (e.g., profitability, cost efficiency),
operational performance (e.g., cycle time, defect rates).

3. Best Practices:
o Purpose: Identify and adopt best practices from leading organizations to
enhance performance and operational effectiveness.
o Examples: Customer service practices, quality management techniques, or
innovation processes.
4. Customer Satisfaction:
o Purpose: Assess how well the organization meets customer expectations
compared to competitors or industry standards.
o Examples: Customer feedback, satisfaction scores, or service delivery
performance.
5. Innovation and Technology:
o Purpose: Compare technological advancements and innovation strategies to
stay competitive and adopt leading-edge solutions.
o Examples: Technology adoption rates, R&D practices, or product
development methodologies.
6. Employee Performance and Engagement:
o Purpose: Benchmark employee-related metrics to improve workforce
productivity and satisfaction.
o Examples: Employee turnover rates, engagement scores, or training
effectiveness.
Bloom’s
Level
1 Which step in the benchmarking process involves c Remembering
comparing performance metrics to identify gaps?
a) Collect Data
b) Identify What to Benchmark
c) Analyze Data
d) Implement Improvements

2 What is the primary purpose of identifying what to c Remembering

benchmark?
a) To select benchmarking partners
b) To gather performance metrics
c) To determine the specific areas or processes for
comparison
d) To develop action plans
3 When selecting benchmarking partners, what criteria b Remembering
should be considered?
a) Partners’ geographic location
b) Relevance to the benchmarking focus and exemplary
performance
c) Size of the benchmarking partner’s organization
d) The partners’ marketing strategies
4 What type of data is typically collected during the c Remembering
benchmarking process?
a) Market share data
b) Financial projections
c) Quantitative and qualitative performance data
d) Employee satisfaction scores
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Describe the importance of selecting the right 2 CO3 Understanding
aspects to benchmark and how it affects the
benchmarking process.
2 Explain the role of data collection in the 2 CO3 Understanding
benchmarking process and its impact on
analyzing performance gaps.

Reference Book
Library Book
Accession No

Unit Lecture
No 3 No
Topic Understanding Current Performance, Planning
Bloom’s
Level
Explain the methods for assessing current performance and its
LO1 Understand (K2)
significance in the planning process.
Explain performance assessment results to develop effective
LO2 Understand (K2)
planning strategies and action plans.
1. Understanding Current Performance
Assessing current performance involves evaluating how well an organization or process is
performing against established metrics, goals, or benchmarks. This assessment provides a
baseline for planning and improvement efforts.
1.1. Methods for Assessing Current Performance:
1. Performance Metrics:
o Definition: Quantitative measures used to evaluate performance, such as
efficiency, quality, and financial outcomes.
o Examples: Sales revenue, production output, defect rates, customer
satisfaction scores.
2. Key Performance Indicators (KPIs):
o Definition: Specific, measurable indicators that reflect the critical success
factors of an organization.
o Examples: Customer retention rate, average order value, employee
productivity.
3. Benchmarking:
o Definition: Comparing current performance against industry standards or
leading organizations to identify gaps and areas for improvement.
o Examples: Comparing defect rates with industry leaders, analyzing customer
service performance relative to competitors.
4. SWOT Analysis:
o Definition: A strategic tool to assess internal strengths and weaknesses and
external opportunities and threats.

o Examples: Identifying strengths like strong brand reputation and weaknesses

like high employee turnover.
5. Performance Reviews:
o Definition: Regular evaluations of individual or team performance against set
objectives and goals.
o Examples: Annual employee performance reviews, project evaluations.
6. Customer Feedback:
o Definition: Collecting and analyzing feedback from customers to gauge
satisfaction and identify areas for improvement.
o Examples: Surveys, online reviews, focus groups.
7. Financial Analysis:
o Definition: Evaluating financial performance through analysis of financial
statements, ratios, and profitability metrics.
o Examples: Profit margins, return on investment, cost of goods sold.
1.2. Importance of Assessing Current Performance:
 Establishes Baselines: Provides a starting point for measuring progress and setting
targets.
 Identifies Areas for Improvement: Highlights areas where performance is lacking
and requires attention.
 Informs Planning: Offers data-driven insights to guide strategic and operational
planning.
 Monitors Progress: Helps track improvements over time and ensures that goals are
being met.
2. Planning Based on Performance Assessment
Planning involves developing strategies and action plans to address performance gaps and
capitalize on strengths identified during the assessment process.
2.1. Key Steps in Planning:
1. Set Objectives:
o Definition: Define clear, measurable goals based on performance assessment
results.
o Examples: Increase sales by 10% in the next fiscal year, reduce defect rates to
below 2%.
2. Develop Strategies:

o Definition: Create actionable plans to achieve set objectives and improve

performance.
o Examples: Implementing a new marketing strategy, investing in employee
training programs.
3. Allocate Resources:
o Definition: Assign necessary resources such as budget, personnel, and
technology to support the implementation of strategies.
o Examples: Budget allocation for new initiatives, assigning project teams.
4. Implement Action Plans:
o Definition: Execute the strategies and plans developed to improve
performance.
o Examples: Launching a new product line, rolling out process improvements.
5. Monitor and Evaluate:
o Definition: Regularly track progress and evaluate the effectiveness of
implemented strategies.
o Examples: Monthly performance reviews, quarterly progress reports.
6. Adjust Plans as Needed:
o Definition: Make adjustments to strategies and plans based on performance
data and feedback.
o Examples: Revising goals, modifying action plans to address unforeseen
challenges.
2.2. Importance of Effective Planning:
 Guides Action: Provides a clear roadmap for achieving goals and improving
performance.
 Enhances Efficiency: Ensures that resources are used effectively to address
performance gaps.
 Facilitates Improvement: Supports continuous improvement by regularly reviewing
and adjusting plans based on performance data.
 Aligns Efforts: Ensures that all efforts are aligned with organizational objectives and
performance goals.

Bloom’s
Level
1 What is the primary purpose of assessing current b Remembering
performance?
a) To develop new products
b) To establish baselines and identify areas for
improvement
c) To increase market share
d) To hire new employees
2 Which of the following is NOT a method for assessing d Remembering
current performance?
a) Key Performance Indicators (KPIs)
b) Benchmarking
c) SWOT Analysis
d) Product Design
3 What is the first step in the planning process based on c Remembering
performance assessment?
a) Develop strategies
b) Allocate resources
c) Set objectives
d) Implement action plans
4 Why is it important to monitor and evaluate progress b Remembering
in the planning process?
a) To reduce costs
b) To track improvements and ensure goals are met
c) To increase market presence
d) To design new processes

Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Explain why assessing current performance is 2 CO3 Understanding
crucial for effective planning and decision-
making.
2 Describe the key steps involved in planning based 2 CO3 Understanding
on performance assessment results and their
significance in improving organizational
performance.
Reference Book
Library Book
Accession No

Unit Lecture
No 3 No
Topic Studying Others, Learning from the data
Bloom’s
Level
Describe the methods and benefits of studying others and
LO1 Understand (K2)
learning from data to improve organizational performance.
Explain data collected from other organizations or sources to
LO2 Understand (K2)
identify insights and apply them to enhance performance.
1. Studying Others
Studying others involves observing and analyzing the practices, strategies, and performance
of other organizations to gain insights that can be applied to one's own organization. This
practice is often part of benchmarking and competitive analysis.
1.1. Methods for Studying Others:
1. Benchmarking:
o Definition: Comparing your organization’s processes and performance
metrics against those of leading organizations to identify best practices and
performance gaps.
o Examples: Evaluating a competitor's customer service practices or production
efficiency.
2. Competitive Analysis:
o Definition: Analyzing competitors’ strengths, weaknesses, opportunities, and
threats (SWOT) to understand their strategies and market positioning.
o Examples: Reviewing competitors’ marketing strategies, product offerings, or
customer feedback.
3. Industry Research:
o Definition: Conducting research on industry trends, standards, and practices
to gain insights into successful practices and emerging trends.
o Examples: Analyzing industry reports, attending conferences, and studying
trade publications.
4. Case Studies:

o Definition: Examining detailed reports and analyses of how other

organizations have addressed challenges and achieved success.
o Examples: Reviewing case studies on successful implementation of lean
manufacturing or customer loyalty programs.
5. Networking and Collaboration:
o Definition: Engaging with peers, industry groups, and professional
associations to share knowledge and learn from others' experiences.
o Examples: Participating in industry forums, joining professional
organizations, and attending workshops.
1.2. Benefits of Studying Others:
 Identify Best Practices: Discover and adopt successful practices and strategies used
by others.
 Understand Market Trends: Gain insights into industry trends and emerging
technologies.
 Enhance Competitive Advantage: Learn from competitors to improve your own
strategies and performance.
 Avoid Pitfalls: Learn from others’ mistakes and avoid similar challenges.
 Inspire Innovation: Stimulate new ideas and approaches by observing successful
implementations in other organizations.
2. Learning from Data
Learning from data involves collecting, analyzing, and interpreting data to make informed
decisions and improve performance. Data-driven decision-making enhances accuracy and
effectiveness.
2.1. Methods for Learning from Data:
1. Data Collection:
o Definition: Gathering relevant data from various sources, including internal
records, customer feedback, and market research.
o Examples: Collecting sales data, customer surveys, and operational metrics.
2. Data Analysis:
o Definition: Analyzing data using statistical methods and analytical tools to
identify trends, patterns, and insights.
o Examples: Performing regression analysis, using data visualization tools, and
conducting trend analysis.
3. Data Interpretation:

o Definition: Drawing conclusions from data analysis to inform decision-

making and strategy development.
o Examples: Interpreting sales trends to forecast future performance,
understanding customer feedback to improve products.
4. Data-Driven Decision Making:
o Definition: Using insights derived from data analysis to guide business
decisions and strategies.
o Examples: Adjusting marketing strategies based on customer data, optimizing
supply chain operations using performance metrics.
5. Continuous Improvement:
o Definition: Using data insights to drive ongoing improvements and refine
processes.
o Examples: Implementing process changes based on performance metrics,
adjusting product features based on customer feedback.
2.2. Benefits of Learning from Data:
 Informed Decision Making: Base decisions on objective data rather than intuition.
 Improved Performance: Identify areas for improvement and measure the impact of
changes.
 Enhanced Accuracy: Increase the precision of forecasts and predictions.
 Strategic Planning: Develop strategies based on comprehensive data analysis and
insights.
 Competitive Advantage: Leverage data to gain insights into market trends and
customer behavior.
Bloom’s
Level
1 What is the primary purpose of benchmarking in b Remembering
studying others?
a) To create new products
b) To compare processes and performance with leading
organizations

c) To increase employee salaries

d) To reduce production costs
2 Which method involves analyzing competitors’ c Remembering
strengths and weaknesses?
a) Data Collection
b) Case Studies
c) Competitive Analysis
d) Industry Research
3 What is the first step in learning from data? c Remembering
a) Data Analysis
b) Data Interpretation
c) Data Collection
d) Data-Driven Decision Making
4 Which of the following is a benefit of learning from b Remembering
data?
a) Creating new marketing campaigns
b) Improving performance based on data insights
c) Increasing the number of employees
d) Expanding into new markets
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Explain how studying others can benefit an 2 CO3 Understanding
organization in terms of competitive advantage
and innovation.
2 Describe the process of learning from data and its 2 CO3 Understanding
significance in making informed business
decisions.

Reference Book
Library Book
Accession No

Unit Lecture
No 3 No
Topic Using the findings, Pitfalls and Criticisms of Benchmarking
Bloom’s
Level
Explain the process and benefits of using findings from
LO1 Understand (K2)
benchmarking to improve organizational performance.
Evaluate common pitfalls and criticisms of benchmarking to
LO2 Understand (K2)
assess its effectiveness and limitations.
1. Using the Findings from Benchmarking
Benchmarking involves comparing an organization’s performance with industry best
practices to identify areas for improvement. Using the findings effectively can lead to
significant enhancements in performance.
1.1. Process for Using Benchmarking Findings:
1. Analyze Benchmarking Data:
o Purpose: Assess the data collected from benchmarking to understand
performance gaps and best practices.
o Steps: Review comparisons between your organization and benchmarking
partners, identify discrepancies, and understand the reasons behind them.
2. Identify Improvement Opportunities:
o Purpose: Determine areas where your organization can improve based on
benchmarking findings.
o Examples: If competitors have faster production times, consider adopting
their techniques or technologies.
3. Develop Action Plans:
o Purpose: Create detailed plans to address identified gaps and implement best
practices.
o Steps: Outline specific actions, assign responsibilities, and set deadlines for
achieving improvements.
4. Implement Changes:
o Purpose: Execute the action plans developed to enhance performance.
o Examples: Introduce new processes, invest in training, or upgrade technology.

5. Monitor Progress:
o Purpose: Track the results of implemented changes to ensure they lead to
desired improvements.
o Steps: Use performance metrics and feedback to measure the impact and
make necessary adjustments.
6. Review and Refine:
o Purpose: Continuously assess and refine strategies based on ongoing
performance and benchmarking updates.
o Steps: Regularly review performance data, update benchmarks, and adjust
action plans as needed.
1.2. Benefits of Using Benchmarking Findings:
 Enhanced Performance: Improve processes and outcomes by adopting best practices
and addressing performance gaps.
 Competitive Advantage: Gain insights into effective strategies used by leading
organizations and apply them to stay ahead.
 Informed Decision-Making: Base decisions on data-driven insights rather than
assumptions.
 Continuous Improvement: Foster a culture of ongoing improvement by regularly
reviewing and updating practices.
2. Pitfalls and Criticisms of Benchmarking
Benchmarking, while valuable, can have limitations and face criticisms. Understanding these
issues is crucial for effective implementation.
2.1. Common Pitfalls:
1. Inaccurate Comparisons:
o Issue: Comparing organizations or processes that are not truly comparable can
lead to misleading conclusions.
o Example: Benchmarking a small company’s operations against a large
corporation’s may not yield useful insights.
2. Overemphasis on Best Practices:
o Issue: Focusing solely on adopting best practices without considering
organizational context can lead to suboptimal results.
o Example: Implementing a new technology used by industry leaders without
adapting it to your specific needs.
3. Lack of Follow-Through:

o Issue: Failing to implement changes or monitor progress after benchmarking

can undermine the benefits.
o Example: Identifying improvement areas but not executing action plans or
measuring outcomes.
4. Inadequate Data Collection:
o Issue: Poor data quality or insufficient data can lead to inaccurate
benchmarking results.
o Example: Relying on outdated or incomplete data from benchmarking
partners.
2.2. Criticisms of Benchmarking:
1. Focus on Competitors:
o Criticism: Benchmarking may lead to a narrow focus on competitors rather
than fostering innovation and unique strategies.
o Response: Balance competitive benchmarking with an emphasis on internal
innovation and differentiation.
2. Short-Term Focus:
o Criticism: Benchmarking may promote short-term improvements rather than
long-term strategic growth.
o Response: Integrate benchmarking with long-term strategic planning and
continuous improvement efforts.
3. Resource Intensiveness:
o Criticism: The benchmarking process can be resource-intensive, requiring
time and effort for data collection and analysis.
o Response: Ensure efficient use of resources by focusing on key areas and
leveraging technology for data analysis.
4. Over-Reliance on Data:
o Criticism: Over-reliance on benchmarking data can overlook qualitative
factors and organizational culture.
o Response: Complement benchmarking data with qualitative insights and
consider organizational culture in decision-making.


Bloom’s
Level
1 What is the primary purpose of using benchmarking b Remembering
findings in an organization?
a) To develop new products
b) To enhance performance and adopt best practices
c) To increase marketing budgets
d) To reduce employee turnover
2 Which of the following is a common pitfall of b Remembering
benchmarking?
a) Accurate comparisons
b) Overemphasis on best practices without adaptation
c) Effective data collection
d) Regular monitoring of progress
3 What is a criticism of benchmarking related to its c Remembering
focus?
a) Focus on long-term strategic growth
b) Over-reliance on internal data
c) Focus on competitors rather than innovation
d) Resource-efficient process
4 Which step is crucial for ensuring the benefits of c Remembering
benchmarking are realized?
a) Developing new technologies
b) Lack of follow-through
c) Implementing changes and monitoring progress
d) Focusing solely on competitors

Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Describe the process of using benchmarking 2 CO3 Understanding
findings to improve organizational performance
and the key steps involved.
2 Explain some common pitfalls and criticisms of 2 CO3 Understanding
benchmarking and how organizations can address
them.
Reference Book
Library Book
Accession No

Unit Lecture
No 3 No
Topic FMEA - Intent
Bloom’s
Level
Explain the purpose and intent of Failure Modes and Effects
LO1 Understand (K2)
Analysis (FMEA).
Explain the principles of FMEA to identify and address
LO2 Understand (K2)
potential failure modes in a process or product.
1. Purpose and Intent of FMEA
Failure Modes and Effects Analysis (FMEA) is a systematic method used to identify and
evaluate potential failure modes within a system, process, or product and their effects on
performance. The intent of FMEA is to improve reliability and safety by proactively
addressing potential issues before they occur.
1.1. Key Objectives of FMEA:
1. Identify Potential Failure Modes:
o Definition: Determine all possible ways in which a system, process, or
product could fail.
o Examples: A component could fail due to wear and tear, design flaws, or
incorrect usage.
2. Assess the Effects of Failures:
o Definition: Evaluate the impact of each identified failure mode on the overall
system or product performance.
o Examples: A failure in a braking system could lead to reduced safety and
performance.
3. Determine the Causes of Failures:
o Definition: Identify the root causes or factors that contribute to each potential
failure mode.
o Examples: Causes of a component failure might include poor material quality
or manufacturing defects.
4. Evaluate the Risks:

o Definition: Assess the risk associated with each failure mode by considering
its severity, occurrence, and detectability.
o Examples: Risks are often quantified using a Risk Priority Number (RPN)
which is calculated by multiplying severity, occurrence, and detectability
ratings.
5. Prioritize and Implement Mitigation Measures:
o Definition: Rank failure modes based on their risk and implement corrective
actions to mitigate or eliminate the identified risks.
o Examples: Implementing design changes, improving quality control, or
adding preventive maintenance measures.
6. Improve Design and Processes:
o Definition: Use insights from FMEA to enhance the design of products or
processes and improve overall reliability.
o Examples: Modifying a design to prevent potential failure modes or
incorporating additional safeguards.
1.2. Benefits of FMEA:
 Proactive Risk Management: Identifies and addresses potential failures before they
occur, reducing the likelihood of issues.
 Enhanced Reliability: Improves the reliability and safety of products and processes
by addressing weaknesses.
 Cost Reduction: Prevents costly failures and recalls by identifying and mitigating
risks early in the design or process phase.
 Informed Decision-Making: Provides valuable information for decision-making and
prioritization of improvement efforts.
 Compliance and Safety: Helps ensure compliance with safety regulations and
standards by systematically addressing potential risks.
Key Steps in Conducting FMEA:
1. Assemble a Cross-Functional Team:
o Purpose: Bring together experts from various disciplines to provide
comprehensive insights into potential failure modes.
o Examples: Engineers, quality assurance specialists, and process operators.
2. Define the Scope and Objectives:
o Purpose: Clearly outline the system, process, or product to be analyzed and
the goals of the FMEA.

o Examples: Focusing on a specific product line or manufacturing process.

3. Identify Failure Modes and Effects:
o Purpose: List potential failure modes and their possible effects on the system
or product.
o Examples: A failure mode could be a malfunctioning component, and its
effect could be reduced product functionality.
4. Assess Risk and Prioritize:
o Purpose: Evaluate the severity, occurrence, and detectability of each failure
mode to determine the Risk Priority Number (RPN) and prioritize actions.
o Examples: A failure with high severity and high occurrence would be
prioritized for corrective action.
5. Develop and Implement Action Plans:
o Purpose: Create and execute plans to address high-priority failure modes and
reduce risks.
o Examples: Implementing design changes, improving testing procedures, or
enhancing training.
6. Review and Update:
o Purpose: Regularly review and update the FMEA to reflect changes in the
system, process, or product and ensure continued effectiveness.
o Examples: Revising the FMEA after a design change or process
improvement.
Bloom’s
Level
1 What is the primary intent of Failure Modes and b Remembering
Effects Analysis (FMEA)?
a) To identify market trends
b) To enhance product design and process reliability by
addressing potential failures
c) To increase production speed
d) To develop marketing strategies

2 Which of the following is NOT a key objective of c Remembering

FMEA?
a) Identify potential failure modes
b) Assess the effects of failures
c) Develop new product features
d) Determine the causes of failures
3 How is the risk associated with each failure mode a Remembering
typically evaluated in FMEA?
a) By calculating the Risk Priority Number (RPN)
b) By measuring production speed
c) By assessing market demand
d) By conducting customer surveys
4 What is a benefit of using FMEA in product design? b Remembering
a) Reduces the need for market research
b) Enhances reliability and safety by addressing potential
issues early
c) Increases employee turnover
d) Improves packaging design
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 Explain the primary intent of Failure Modes and 2 CO3 Understanding
Effects Analysis (FMEA) and its significance in
improving product or process reliability.
2 Describe the process of assessing risks in FMEA 2 CO3 Understanding
and how it helps in prioritizing corrective actions.
Reference Book
Library Book
Accession No

Unit Lecture
No 3 No
Topic Documentation, Stages: Design FMEA and Process FMEA.
Bloom’s
Level
Define the stages of Documentation, Design FMEA, and
LO1 Process FMEA in the context of Failure Modes and Effects Understand (K2)
Analysis (FMEA).
Explain he process and importance of documenting and
LO2 conducting Design FMEA and Process FMEA to improve Understand (K2)
product and process reliability.
1. Documentation in FMEA
Documentation in FMEA is crucial for ensuring that all aspects of the analysis are
systematically recorded and communicated. It provides a detailed account of identified failure
modes, their effects, causes, and the actions taken to address them.
1.1. Key Components of FMEA Documentation:
1. FMEA Worksheet:
o Purpose: The primary tool used to record information during the FMEA
process.
o Components: Typically includes columns for failure modes, effects, causes,
current controls, severity, occurrence, detectability, Risk Priority Number
(RPN), and recommended actions.
2. Failure Mode Identification:
o Purpose: Detailed description of each potential failure mode.
o Example: A failure mode might be “component overheating.”
3. Effect Analysis:
o Purpose: Document the impact of each failure mode on the system or process.
o Example: Reduced product performance or safety hazards.
4. Cause Analysis:
o Purpose: Identify and document the root causes of each failure mode.
o Example: Inadequate cooling system or poor material quality.

5. Risk Assessment:
o Purpose: Record the severity, occurrence, and detectability ratings and
calculate the RPN.
o Example: Severity = 8, Occurrence = 6, Detectability = 4, RPN = 192.
6. Action Plan:
o Purpose: Document recommended actions to mitigate or eliminate the risks
associated with failure modes.
o Example: Improving cooling design or enhancing quality control processes.
7. Follow-Up:
o Purpose: Track the implementation and effectiveness of actions taken.
o Example: Reviewing the effectiveness of the new cooling design after
implementation.
2. Stages of FMEA
FMEA can be divided into two main stages: Design FMEA and Process FMEA, each
addressing different aspects of a system or product.
2.1. Design FMEA (DFMEA):
 Purpose: Focuses on identifying and mitigating potential failure modes related to the
design of a product.
 Scope: Evaluates the product's design specifications and functionality.
 Process:
1. Review Design Specifications: Analyze design documents and specifications
to identify potential failure modes.
2. Identify Failure Modes: Determine how the design might fail and the effects
on product performance.
3. Assess Risks: Evaluate the severity, occurrence, and detectability of design-
related failure modes.
4. Develop and Implement Actions: Propose design changes or enhancements
to address identified risks.
5. Verify and Validate: Test the revised design to ensure that potential failures
are effectively addressed.
2.2. Process FMEA (PFMEA):
 Purpose: Focuses on identifying and addressing potential failure modes in the
manufacturing or operational processes.
 Scope: Evaluates process steps, controls, and interactions.

 Process:
1. Review Process Flow: Analyze process flow diagrams and control plans to
identify potential failure modes.
2. Identify Failure Modes: Determine how each process step might fail and the
effects on product quality and safety.
3. Assess Risks: Evaluate the severity, occurrence, and detectability of process-
related failure modes.
4. Develop and Implement Actions: Propose process changes or improvements
to mitigate identified risks.
5. Monitor and Review: Track the effectiveness of process changes and make
adjustments as needed.
Key Differences Between DFMEA and PFMEA:
 Focus: DFMEA focuses on product design, while PFMEA focuses on process and
manufacturing.
 Scope: DFMEA assesses design specifications and functionality; PFMEA assesses
process steps and controls.
 Objectives: DFMEA aims to enhance design reliability; PFMEA aims to improve
process consistency and product quality.
Bloom’s
Level
1 What is the primary purpose of FMEA b Remembering
documentation?
a) To develop marketing strategies
b) To record failure modes, effects, causes, and actions for
systematic analysis
c) To increase production speed
d) To design new products
2 Which stage of FMEA focuses on identifying potential b Remembering
failure modes related to product design?
a) Process FMEA

b) Design FMEA
c) Supplier FMEA
d) Service FMEA
3 In Process FMEA, what is primarily assessed? b Remembering
a) Product design specifications
b) Process flow and control steps
c) Market trends
d) Customer feedback
4 Which component of the FMEA worksheet is used to c Remembering
calculate the Risk Priority Number (RPN)?
a) Action Plan
b) Failure Modes
c) Severity, Occurrence, and Detectability ratings
d) Follow-Up
Marks CO Bloom’s
Qn
Question Knowledge
No
Level
1 What are the main differences between Design 2 CO3 Understanding
FMEA and Process FMEA, and why are both
important?
2 Describe the key components of FMEA 2 CO3 Understanding
documentation and their significance in the
FMEA process.
Reference Book
Library Book
Accession No

TQM Lecture Notes Unit 3

Uploaded by

Copyright:

Available Formats

TQM Lecture Notes Unit 3

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

TQM Lecture Notes Unit 3

Uploaded by

Copyright:

Available Formats

GE3752 Total Quality Management

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 1 of 43

Fig 3.2: Cause-and-Effect Diagram of House Paint Peeling

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 2 of 43

Fig 3.5: Different Historgram Shapes

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 3 of 43

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 4 of 43

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 5 of 43

c) To show the relationship between variables

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 6 of 43

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 7 of 43

Fig 3.6: Nonconformance Rate When Process is Centered

Fig 3.6: Nonconformance Rate When Process is Off-Center

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 8 of 43

Benefits of Six Sigma:

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 9 of 43

 Facilitates Decision Making: Assists in making informed decisions about process

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 10 of 43

a) To identify marketing opportunities

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 11 of 43

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 12 of 43

o Application: A company may benchmark its product features and pricing

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 13 of 43

 Competitive Benchmarking: Comparing performance against direct competitors.

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 14 of 43

3 What type of benchmarking involves comparing b Remembering

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 15 of 43

Benchmarking is a systematic process used to compare an organization’s performance,

1. Identify What to Benchmark:

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 16 of 43

o Methods: Use surveys, industry reports, internal records, and interviews to

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 17 of 43

Assessment questions to the lecture

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 18 of 43

2 What is the primary purpose of identifying what to c Remembering

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 19 of 43

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 20 of 43

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 21 of 43

o Examples: Identifying strengths like strong brand reputation and weaknesses

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 22 of 43

o Definition: Create actionable plans to achieve set objectives and improve

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 23 of 43

Assessment questions to the lecture

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 24 of 43

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 25 of 43

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 26 of 43

o Definition: Examining detailed reports and analyses of how other

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 27 of 43

o Definition: Drawing conclusions from data analysis to inform decision-

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 28 of 43

c) To increase employee salaries

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 29 of 43

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 30 of 43

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 31 of 43

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 32 of 43

o Issue: Failing to implement changes or monitor progress after benchmarking

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 33 of 43

Assessment questions to the lecture

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 34 of 43

Notes Prepared by Mr.M.Anthony Kingston, AP/Mech Page 35 of 43