UNIT III - TQM TOOLS & TECHNIQUES I

SYLLABUS: The seven traditional tools of quality - New management tools – Six sigma: Concepts,
Methodology, applications to manufacturing, service sector including IT - Bench marking – Reason to bench
mark, Bench marking process - FMEA - Stages, Types.

The seven traditional tools of quality:

1. Pareto diagram
2. Flow diagram
3. Cause and effect diagram
4. Check sheets
5. Histogram
6. Control charts
7. Scatter diagram
Old Seven Tools of quality control.

• Flow chart – for depicting the essential steps of a process by using standard symbols.
• Check sheet - for systematic data gathering, by tabulating the frequency of occurrence
• Histogram – for graphically displaying the frequency distribution of the numerical data.
• Pareto diagram – for identifying the vital few causes that account for a dominant share of quality loss.
• Cause and effect diagram – for identifying and analyzing the potential causes of a given problem
• Scatter diagram – for depicting the relationship between two variables
• Control chart – for identifying process variations and signaling corrective action to be taken.

PARETO DIAGRAM:
Pareto charts are used for identifying a set of priorities. You can chart any number of issues/variables related to
a specific concern and record the number of occurrences.
This way you can figure out the parameters that have the highest impact on the specific concern. This helps you
to work on the propriety issues in order to get the condition under control.
When do we use it (3.20)
 Pareto analysis can be used in a wide range of situations where one need to priorities problems based on
its relative importance.
 It can be used as a risk assessment technique from activity level to system level.
 Breaks big problem into smaller pieces.
 Identifies most significant factors.
 Shows where to focus efforts
 Allow better use of limited resources.
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How can we construct it(3.20-3.21)
A Pareto diagram can be constructed using the following steps:
1. Obtain data, using a check sheet or brainstorm.
2. Arrange the data in descending order starting from the largest category to smallest.
3. Calculate the total and percentage of the total that each category represents.
4. Compute the cumulative percentages.
5. Draw a bar chart with two vertical axes. Along the left vertical axes, mark the measured values for each
cause, starting from Zero till the total number of causes. The right vertical axis should have the same
height and should go from 0 to 100%. This axis displays the cumulative percentages. List the different
kinds of causes along the horizontal axis, from left to right in descending order of frequency or costs.
6. Draw a bar above each item whose height represents the number for that cause.
7. Plot a cumulative percentage line.
8. Now draw a horizontal line from
80% (on the right vertical axis) to
the left till the point of intersection
with the cumulative line, and then
draw a vertical line, and then draw
a vertical line from this intersection
downwards till the horizontal axis.
Left from this intersection point are
the 20% of causes (the most
essential bottlenecks) which causes
80% of the damages.
FLOW CHARTS:
This is one of the basic quality tools that can be used for analyzing a sequence of events.
The tool maps out a sequence of events that take place sequentially or in parallel. The flow chart can be used to
understand a complex process in order to find the relationships and dependencies between events.
You can also get a brief idea about the critical
path of the process and the events involved in
the critical path.
Flow charts can be used for any field and to
illustrate events involving processes of any
complexity.
There are specific software tools developed for
drawing flow charts, such as MS Vision.

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CAUSE AND EFFECT DIAGRAM:
Cause and effect diagrams (Ishikawa Diagram) are used for
understanding organizational or business problem causes.
Organizations face problems everyday and it is required to understand
the causes of these problems in order to solve them effectively.
Cause and effect diagrams exercise is usually teamwork.
A brainstorming session is required in order to come up with an
effective cause and effect diagram.
All the main components of a problem area are listed and possible
causes from each area is listed.
Then, most likely causes of the problems are identified to carry out
further analysis.
Benefits of using a Cause and Effect Diagram (3.5)
 Helps determine root causes
 Encourages group participation
 Uses an orderly, easy-to-read format
 Indicates possible causes of variation
 Increases process knowledge
 Identifies areas for collecting data

Step involved in Cause and effect diagram (3.6)

The cause and effect diagram may be constructed using the following steps

1. Define the effect clearly and concisely

Step 1 - Identify and Define the 2. Mark the short description of the effect in a box. Then
Effect draw a line from this box towards left.
• Decide on the effect to 3. List down all the possible minor and major causes
examine through a brainstorming session.
• Use Operational Definitions
4. Mark the major causes on the branches and minor causes
• Phases effect as
 Positive (an on the sub branches of the CE diagrams.
objective) or 5. Look for possible solutions for these causes.
 Negative (a 6. Introduce the changes.
problem)

Step 2- Fill in the Effect box and

Draw the Spine
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Cause and Effect Diagram for Incorrect Delivery
CHECK SHEET:
A check sheet can be introduced as the most
basic tool for quality.
A check sheet is basically used for gathering
and organizing data.
When this is done with the help of software
packages such as Microsoft Excel, you can
derive further analysis graphs and automate
through macros available.
Therefore, it is always a good idea to use a
software check sheet for information gathering and organizing needs.
One can always use a paper-based check sheet when the information gathered is only used for backup or storing
purposes other than further processing.
Construction of Check sheet
• Formulate the objectives for collecting data
• Decide which data is necessary
• Determine who and how data will be analyzed
• Draw a format to record data
• Collect and record data problem wise by putting tally lines.
• Start counting by tallying on the list I,II,III,IIII and IIII represent the number 1,2,3, 4 and 5 respectively.
• Mark on the list the total number of facts which were noticed.

Types of check sheet

1. Process distribution check sheets.
2. Defective item check sheets.
3. Defect location check sheet.
4. Defect factor check sheet.

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HISTOGRAM:
Histogram is used for illustrating the frequency and the extent in the context of two variables. Histogram is a
chart with columns. This represents the distribution by mean. If the histogram is normal, the graph takes the
shape of a bell curve.
If it is not normal, it may take different shapes based on the condition of the distribution. Histogram can be used
to measure something against another thing. Always, it should be two variables.
Consider the following example:
Histogram is used:
 To Summarize large data sets
graphically
• Compare measurements to
specifications
• Communicate information to
the team
• Assist in decision making

SCATTER DIAGRAM:
When it comes to the values of two variables, scatter diagrams
are the best way to present. Scatter diagrams present the
relationship between two variables and illustrate the results on a
Cartesian plane.
Then, further analysis, such as trend analysis can be performed
on the values.
In these diagrams, one variable denotes one axis and another
variable denotes the other axis.

CONTROL CHARTS:
Control chart is the best tool for monitoring the performance of a process. These types of charts can be used for
monitoring any processes related to function of the organization. These charts allow you to identify the
following conditions related to the process that has been monitored.
 Stability of the process
 Predictability of the process
 Identification of common cause of variation
 Special conditions where the monitoring party needs to react

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 Control charts for variables Control charts for attributes

X – Arithmetic chart P -chart

R- Range chart np -chart

Standard deviation chart C- chart

U -chart

NEW SEVEN MANAGEMENT TOOLS:

These tools, unlike SPC tools are qualitative tools. Most of these tools do not involve the use of numerical
data. . Like all management tools these are judgmental tools. Managers are often called upon to make decisions
based on their judgement with help of incomplete information or on subjective issues. Team work and
techniques like brainstorming are very essential for best results with such tools.
The seven tools we will see are :
1. Affinity diagram
2. Relations diagram
3. Tree diagram
4. Matrix diagram
5. Matrix data analysis diagram .
6 .Process decision programme chart
7. Arrow diagram
• Affinity Diagram – for synthesizing, classifying, organizing indefinite ideas.
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 • Relationship Diagram- isolating cause and effect relationships
• Tree Diagram – for deploying general concepts into details
• Matrix Diagram- for correlating in a logical form in order to evaluate select and decide
• Matrix Data analysis – for quantifying relationships
• Decision Tree – for identifying alternatives
• Arrow Diagram – for planning

AFFINITY DIAGRAM
The purpose of an affinity diagram is to provide a visual representation of grouping of a large number of ideas
or factors or requirements into logical sets of related items to help one organise action plans in a systematic
manner.
The steps in the procedure for preparing an affinity diagram are :
1. Decide the subject or the topic
2. Generate a large number of ideas through brainstorming
3. Decide the number of groups and their titles. Create a card for each group. Enter the title of the group at the
top of the card.
4. Distribute all the ideas among
the cards. If necessary, create new
cards for additional groups.
5. Arrange the cards according to
the relationship between the
groups.
6. Give a name to the affinity
diagram.
Relations Diagram:
The purpose of relations diagram
is to generate a visual
representation of the relations
between an effect and its causes
as well as the interrelationship
between the causes in complex
problems.

The steps in the preparation of

a relations diagram are:
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1. Decide the ‘effect’ or the problem for which causes are to be found. Write is in the centre of the flip chart or a
board and enclose it in a dark bordered rectangle. Discuss the subject and confirm the ‘effect’.
2. Brainstorm to identify the immediate causes for the effect first. Enter these in rectangles around the central
dark rectangle. Take care to place causes likely to be related to one another in adjacent positions. It is quite
possible that the locations of the causes may have to be changed as one progresses.Hence a white board is
preferable to a flip chart for this exercise. If a flip chart is used, the causes may be written on post-it pads and
stuck on the chart so that their location can be changed easily.
3. Connect these immediate causes to the effect by connecting the rectangles of the causes to that of the effect
with a line with an arrow pointing towards the effect. Explore the cause and effect relationship among the
immediate causes and connect them, keeping in mind that the arrow always points to an effect.
4. Taking each of these immediate causes as an effect, brainstorm to findcauses for them one by one. The key
question for identifying causes is “why?”. Keep asking the question till the root causes are identified for the
immediate, secondary and tertiary causes.
5. Explore the relationship between all the causes and connect the rectangles as in step-3. Show as many
relations among different causes as possible. A large number of routes leading to the same root causes provides
an indication that the root cause may be an
important contributor to the problem.
6. Brainstorm to find the more important
root causes and more prominent links
leading to the effect. Mark these by making
the rectangles and the connecting lines
darker.
7. If necessary, rearrange the rectangles in
such a way that the connecting lines are
short and the diagram compact.
8. Provide a suitable title to the diagram.

TREE DIAGRAM:
The purpose of the tree diagram is to explore ways and means to achieve an objective, develop a list of alternate
means to reach the desired situation in a sequential order and to present them in a visual form.
The steps in the procedure to develop a tree diagram are:
1. Identify a high priority problem that needs to be solved at the earliest.
2. Prepare an objective statement describing the desired situation or the target solution.

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3. Decide the appropriate form of the diagram - cascade or tree as well as direction of flow after a brief
discussion. Place the target solution in the dark rectangle.
4. Brainstorm to identify the primary means to achieve the objective. Arrange them in an appropriate order
keeping in mind the likely interrelations between them and place them in rectangles at the first level.
5. For each of the primary means, identify secondary means which would be necessary to attain those means.
Arrange them in next level boxes.
6. Identify tertiary means required to attain each of the secondary means and place them in a proper order in the
next level boxes.
7. Continue the process till the group feels that the end of the line has been reached.
8. If a lower level means is required to
attain two higher level means, it may be
connected to both. Rearrange the boxes
if necessary to make this possible. Use
of POST-IT pads can make such a
rearrangement simple.
9. Brainstorm to reach a consensus on
the relative importance of the last level
means to priorities action.
10.Give a suitable title to the diagram.
Application The most important
application of the tree diagram is for
devising solutions for problems. It
helps one to develop a systematic step
by step strategy to achieve an objective.
It is also useful in monitoring the implementation of solutions by taking care of accomplishment of means at
different levels.
MATRIX DIAGRAM:
The purpose of a matrix diagram is to explore the existence and the extent of relations between individual items
in two sets of factors or features or characteristics and express them in a symbolic form that is easy to
understand. The purpose for which the tool is most frequently used is to understand the relation between
customer expectations as expressed by the customers and product characteristics as designed, manufactured and
tested by the manufacturer.
The steps in the procedure to prepare a matrix diagram are :

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1. Decide the two sets of factors for which relations are required to be clarified. Call the set of the main factors
‘features’ and the set of factors dependent on it counterpart ‘characteristics’ or characteristics.
2. Divide the features into primary, secondary and tertiary features.
3. Divide the characteristics into primary, secondary and tertiary characteristics.
4. Place the features vertically on the left hand side of the matrix and characteristics horizontally on top of the
matrix.
5. Enter the importance of the features on the column after that for the tertiary features.
6. In the main body of the matrix, place symbols at the squares denoting the relationship between
thefeature and the characteristic meeting at the intersection.
The symbols to be used are :
 Strong relationship
 Medium relationship
 Weak relationship
In case there is no relation between
the concerned feature and
characteristic, leave the square blank
to indicate ‘no relation’. The
relationship should be based on data
available with the team or on the
results of a brainstorming session
which must be confirmed by
collecting necessary data.
7. Title the diagram suitably.

MATRIX DATA ANALYSIS DIAGRAM:

The purpose of matrix data analysis diagram is to present numerical data about two sets of factors in a matrix
form and analyse it to get numerical output.The factors most often are products and product characteristics. The
purpose then is to analyse the data on several characteristics for a number of products and use the information to
arrive at optimum values for the characteristics for a new product or to decide the strong points of a product and
use the information for designing a strategy for the promotion of the product.
The procedure for creating a matrix data analysis diagram consists of the following steps:
1. Decide the two factors whose relations are to be analyses.

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 2. Check the number of individual
items in the two factors.
3. Prepare a matrix to
accommodate all the items of the
two factors.
4. Enter numerical data in the
matrix.
5. Give the diagram a suitable
title.

PROCESS DECISION
PROGRAMME CHART (PDPC) or Decision Tree
The purpose of process decision programme chart is to prepare for abnormal occurrences with low probability
which may otherwise be overlooked and to present the occurrences as well as the necessary countermeasures to
guard against such occurrences in the form of a visual chart. The tool forces one to think of the possible
obstacles in the smooth progress of a process or a project and then find ways and means to surmount those
obstacles to ensure the successful and timely
Completion of the process or the project. Thus the tool helps one to prepare a contingency plan to achieve the
objective if adverse events occur.
The steps in the preparation of a process decision programme chart are:
1. Prepare a ‘normal’ flowchart of the process with all expected events as steps in the chart.
2. Consider the possibility of the process not going as per the plan due to any abnormal, though less probable,
occurrences.
3. Show these occurrences on the flowchart through branching at appropriate locations.
4. Consider how the abnormal occurrence will affect the process and search for ways and means to counter the
effect.
5. Show these countermeasures in rectangles connecting the corresponding abnormal occurrence on one side
and the process objective or the goal on the other.
6. Give a suitable title to the diagram.
ARROW DIAGRAM:

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 The purpose of an arrow diagram is to
create a visual presentation of the steps
of a process or tasks necessary to
complete a project with special
emphasis on the time taken for these
activities. The diagram provides a clear
understanding of the schedule of
various steps in the process which
helps one to monitor the process for
ensuring its completion on time.

The steps for preparing an arrow diagram are:

1. List all tasks or activities that need to be accomplished before the completion of the process or the project.
2. Decide which steps are undertaken in series and which steps can be run in parallel.
3. Arrange the activities in a proper sequence.
4. Prepare ‘Event Nodes’ at the completion of steps and number them. Where the process is bifurcating into two
or more parallel streams, more lines will flow from a node and where the parallel streams are merging, two or
more steps will lead to a node.
5. Write the description of the step on top of the line or to the left of the line. Decide the time required for
completing each step and write it under or to the right of the line.
6. Calculate the earliest time to reach an event node for the start of the process. Where more than one stream is
combining, the maximum time taken by a stream is taken into consideration. This time is entered on the top half
of the rectangle. This time is related to the starting time of the process which is taken as zero.
7. After the time for all event nodes including the completion of the process or the project is available, one
calculates the latest time by which an event node must be reached. This is done by starting at the time of
completion and going back step by step. The time is entered on the bottom half of the rectangle. The time
indication at all event nodes will appear as : X Y where
X is the earliest time by which the event can be completed and Y is the latest time by which the event should be
completed.

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8. Give a title to the diagram. As the calculation of the time indications is extremely important in the
construction of an arrow diagram it is necessary that we understand the procedure well. Let us understand the
concept through diagram.
How do we construct it (: 3.37 to 3.38)
The steps for constructing an arrow diagram are outlined.

1. Identify and list each activity to be done in the project.

2. Determine the sequence of activities.
3. Construct a network reflecting the precedence relationships.
4. Write the activity time under arrow leading from it.

SIX SIGMA:
Six sigma stands for six standard deviation from mean (sigma is the Greek letter used to represent standard
deviation in statistics). The objective of six sigma principle is to achieve zero defects products/process. It allows
3.4 defects per million opportunities.
Six Sigma is a set of techniques and tools for process improvement. It was developed by Motorola in 1986. Jack
Welch made it central to his business strategy at General Electric in 1995.

The term “Six Sigma” is derived from the normal distribution used in statistics. Many observable phenomena
can be graphically represented as a bell-shaped curve or a normal distribution. Figure 1 shows a theoretical
normal distribution (smooth blue line) with a mean (center of distribution) of zero and a standard deviation
(spread of distribution) of
one, as well as a random
sample of 10,000 normally
distributed data points
(histogram) with a mean of
zero and a standard deviation
of one.

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DMAIC – It is used for improving existing processes/products.
DMADV – It is applied to new processes/products.
SIX SIGMA PROJECT METHODOLOGY:

The DMAIC project methodology has five phases:

 Define the system, the voice of the customer and their requirements, and the project goals, specifically.
 Measure key aspects of the current process and collect relevant data.

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  Analyze the data to investigate and verify cause-and-effect relationships. Determine what the
relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the
defect under investigation.
 Improve or optimize the current process based upon data analysis using techniques such as design of
experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set
up pilot runs to establish process capability.
 Control the future state process to ensure that any deviations from the target are corrected before they
result in defects. Implement control systems such as statistical process control, production boards, visual
workplaces, and continuously monitor the process

DMADV or DFSS

The DMADV project methodology, also known as DFSS ("Design for Six Sigma") features five phases:

 Define design goals that are consistent with customer demands and the enterprise strategy.
 Measure and identify CTQs (characteristics that are Critical to Quality), product capabilities, production
process capability, and risks.
 Analyze to develop and design alternatives, create a high-level design and evaluate design capability to
select the best design.
 Design details, optimize the design, and plan for design verification. This phase may require
simulations.
 Verify the design, set up pilot runs, implement the production process and hand it over to the process
owner.

KEY CONCEPTS OF SIX SIGMA:

Critical to Quality: Attributes most important to the customer

Defect: Failing to deliver what the customer wants
Process Capability: What your process can deliver
Variation: What the customer sees and feels
Stable Operations: Ensuring consistent, predictable processes to improve what the customer
Sees and feels.
Design for Six Sigma: Designing to meet customer needs and process capability

Six sigma organization (3.42- 3.43)

For the six sigma process to be successful, the involvement and participation of all the employees as
well as the top management of the organization are crucial. The roles and responsibilities of the members of the
six sigma organization are given below.

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 i. Quality council/Apex council: It is the apex body formed by heads at the functions with its chairman as
the CEO (chief Executive Officer) or the MD (Managing Director). The apex council controls and
periodically reviews the entire six sigma activity
ii. Sponsor: The sponsor sponsors the project, reviews and monitors its progress on a day-to-day basis and
ensures the implementation of the improvement suggestions
iii. Champions: Champion is a senior executive (such as vice-president) with significant overall business
responsibility
iv. Master Black belts: A master black belt (MBB) is an expert (such as chief engineer) in six sigma
techniques and application. He plays a key role in training and coaching black belts.
v. Black Belts: A black belt (BB) is a process improvement team leader who is trained and certified in six
sigma methodology and tools. He is responsible for successful project execution.
vi. Green Belts: Green Belts are similar to black belts, but they do not have a full-time role.
Team members: The team member is a fresher initiated to the six sigma project. They focus on day-to-
day work and assist green belts.

Advantages of Six sigma (3.43-3.44)

(i) Improved customer satisfaction
(ii) Improved quality, efficiency and cost of products sold.
(iii)Creation of self-sustaining infrastructure
(iv)Standardized methodology, creating commonality in expectations,solutions, and financial tracking of
the process.

Methodology , Service Sector including IT Practicing Six Sigma(3.44 to 3.45)

Six sigma at Wipro: Wipro has adopted the project approach for six sigma,where projects are identified on the
basis of the problem areas under each of the critical business processes that adversely impacts the business
significantly. Wipro has evolved following six sigma methodologies.

1. For developing new processes:

i. DSSS+Methodology- Wipro employ DSSS methodology for software development. The methodology
uses rigorous in process metrics and cause analysis throughout the software development lifecycle for
defect free deliveries and lower customer cost of application development.it is used for designing new
processes and products.
ii. DCAM Methodology-used for designing for customer satisfaction and manufacturability.

2. For improving existing processes:

i. TQSS Methodology - used for defect reduction in transactional processes.

ii. DMAIC methodology - used for process improvement in non-transactional process.

3. for reengineering:

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 i. CFPM Methodology-used for cross functional process mapping.
ii. The list of players at Wipro is as below:
(a) Executive management
(b) Six-sigma champions and deployment leaders
(c) Financial executives
(d) Black belts
(e) Green belts
(f) Yellow belts.
Six sigma projects at Wipro are:

i. Driven by business heads, also called champions for the projects.

ii. Led by Green Belts (GB)
iii. Assisted by Black Belts (BB)
Currently 15000+ employees are trained in six sigma methodologies. Wipro has also built up a six-sigma
skill base of over 180 certified black belts while helping to roll out over a 1000 projects.

Applications to manufacturing in Six Sigma (3.45)

Six Sigma implementation methodology in a manufacturing organization encompasses the following
steps.
1. Concept Introduction Seminar- for senior and operational management.
2. Formulating Six Sigma Deployment Strategies-with senior management.
3. Selection of the Six Sigma Projects - in consultation with senior and operational management.
4. Selection of Suitable Champions, Black and Green Belt candidates.
5. Clearly defining the Roles and Responsibilities
6. Training for Six Sigma Awareness, as also for Champions, Green and Black Belts.
7. Consulting and Hand Holding for Implementation of Six Sigma Projects.
8. Assisting the Champions in Tollgate Reviews and Final Project Evaluation.
9. Participation in the Monthly Review by the Steering Committee.

Benefit of Six Sigma Manufacturing (3.46)

Six sigma manufacturing is actually one of the most popular methods used by people in the world
nowadays to improve the efficiency of production. This is regarded as a valued strategy for management and a
lot of organizations are actually using this method to get the positive result in production of goods and services.

BENCHMARKING:
Benchmarking is a systematic method by which organizations can measure themselves against the best industry
practices. Benchmarking is a systematic search for the best practices, innovative ideas, and highly effective
operating procedures.

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BENCHMARKING CONCEPT:
Benchmarking is a systematic method by which
organizations can measure themselves against the best
industry practices. Benchmarking is a systematic search
for the best practices, innovative ideas, and highly
effective operating procedures.
• It promotes superior performance by providing an
organised framework through which organisation
learn how the best in class do things, understands
how these best practices differ from their own and
implement change to close the gap.

REASONS TO BENCHMARK:
1. It is a tool to achieve business and competitive objectives.
2. It can inspire managers (and Organizations) to compete.
3. It is time and cost effective.
4. It constantly scans the external environment to improve the process
5. Potential and useful technological breakthroughs can be located and adopted early.
PROCESS OF BENCHMARKING:
1. Decide what to benchmark
2. Understand current performance
3. Plan
4. Study Others
5. Learn from the Data.
6. Use the findings
The following six steps contain the core techniques of Benchmarking

1. Decide what to benchmark

 Benchmarking can be applied to any business or production process

 The strategy is usually expressed in terms of mission and vision statements
 Best to begin with the mission and critical factors
 Choosing the scope of the Benchmarking study
 Pareto analysis – what process to investigate
 Cause and Effect diagram – for tracing outputs back

2. Understand current performance

 Understand and document the current process

 Those working in the process are the most capable of identifying and correcting problems
 While documenting, it is important to quantify
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  Care should be taken during accounting information

3. Plan
 A benchmarking team should be chosen
 Organizations to serve as the benchmark need to be identified
 Time frame should be agreed upon for each of the benchmarking tasks

There are three types of benchmarking

a. Internal
b. Competitive
c. Process

4. Study Others

Benchmarking studies look for two types of information

 How best the processes are practiced
 Measurable results of these practices

Three techniques for conducting the research are

 Questionnaires
 Site visits
 Focus groups

5. Learn from the data

Answering a series of questions like

 Is there a gap between the organization’s performance and the performance of the best-in-class
organizations?
 What is the gap? How much is it?
 Why is there a gap? What does the best-in-class do differently that is better?
 If best-in-class practices were adopted, what would be the resulting improvement?

Benchmarking studies can reveal three different outcomes

 Negative gap
 Parity
 Positive gap

6. Using the findings

The objective is to close the gap. For this

 Findings must be communicated to the people within the organization
 Action plans must be developed to implement new processes

Groups that must agree on the change

 Process owners
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  Upper management

Steps for the development and execution of action plans are

1. Specify tasks
2. Sequence tasks
3. Determine resources needs
4. Establish task schedule
5. Assign responsibility for each task
6. Describe expected results
7. Specify methods for monitoring results

SIGNIFICANCE:
1. Benchmarking is a systematic method by which organizations can measure themselves against the best
Industry practices
2. It promotes superior performance by providing an organized frame work through which organization learn
how the “best in class” do things.
3. It helps for continuous improvement.
4. Benchmarking inspire managers (and organization) to compete.
5. Through Benchmark process organization can borrow ideas, adopt and refine them to gain competitive
advantages.

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Page no 222 table 8.1
FAILURE MODE AND EFFECTS ANALYSIS: (FMEA)
Is an analytical technique that combines the technology and experience of people in identifying foreseeable
failure modes of a product or process and planning for its elimination.
Failure mode and effect analysis also known as risk analysis is a preventive measure to systematically display
the causes, effects, and possible actions regarding observed failures.
OBJECTIVES OF FMEA:
1. The objective of FMEA is to anticipate failures and prevent them from occurring. FMEA prioritizes failures
and attempts to eliminate their causes.
2. FMEA is an engineering technique is used to define, identify and eliminate known and or potential failures,
problems, errors which occur in the system, design, process and service before they reach the customer.
3. FMEA is a before the event action and is done when existing systems products processes are changed or
redesigned.
4. FMEA is a never ending process improvement tool.

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TYPES OF FMEA:
1. System FMEA – anaylse components, substystem and main system in early stage of design.
2. Design FMEA – Analyses the products/ parts before they are released to manufacturing.
3. Process FMEA – Focus on manufacturing and assembly process.
4. Service FMEA – Analyses service industry process before they are released to impact the customer.
5. Equipment FMEA
6. Maintenance FMEA
7. Concept FMEA
8. Environment FMEA
BENEFITS OF FMEA:
1. Improve product/process reliability and quality.
2. Increase customer satisfaction.
3. Early identification and elimination of potential product/process failure modes.
4. Prioritize product or process deficiencies
5. Capture engineering/organization knowledge
6. Document and track the actions taken to reduce risk
7. Provide focus for improved testing and development.
8. Minimize late changes and associated cost.
9. Act as catalyst for teamwork and idea exchange between functions.
STAGES OF FMEA:
1. Specifying possibilities
a. functions
b. possible failure modes
c. root causes
d. effects
e. detection/prevention
2. Quantifying risk
a. probability of cause
b. severity of effect
c. effectiveness of control to prevent cause.
d. risk priority number.
3. Correcting high risk causes
a. prioritizing work
b. detailing action
c. assigning action responsibility.
d. checks points on completion.

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4. Re-evaluation of risk
a..Recalculation of risk priority number

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