Study of quality parameters across various industries

Mentor Proff. Rakesh jain

Submitted by: Abhishek Agarwal Sahaj Agarwal Rohit Upadhyay Upendra Yadav 2009UME430 2009UME435 2009UME429 2009UME444

ABSTRACT
Quality is the first and foremost requirement of industries in this competitive world today. In order to reduce time, inventory, cost and to improve the efficiency of current system company need to follow certain quality parameters. Quality parameters are not a theoretical concept any more they need to be implemented and improved with time. In this project we are focusing on 28 of these quality parameters and their implementation in certain Indian industries. This report contains data on these quality parameters from Hindustan Coca Cola Pvt. Ltd., Hero Moto corp. Pvt. Ltd. and Su-Kam Power System Ltd. Each of the quality parameters is being explained and discussed with respect to the company, and analysis is being done. Some implementation level was suggested by the quality managers and workers in the manufacturing line. Quality parameters of different companies will be compared and results will be analysed after visiting all the companies and collection of data.

INTRODUCTION
Today achieving customer satisfaction is the most important objective of the organizations and quality management is the most effective approach to achieve this objective. As the Japanese conquered the whole world of manufacturing by their quality management strategies, every other industry in any part of the world realized the importance of quality and customer satisfaction. Every organization worries about their competition and plan to survive in this competitive market. Quality management consists of concepts, methods and applications that enable organizations to reap real benefits from improvement in quality, performance and competitiveness. Using those tools they can know their present status among its competition, their weaknesses and scope of improvement. Indian organizations have also understood that improvement in organizational quality performance is necessary but implementation level is still lower than the awareness level. Few companies are not properly

aware and consider these quality management activities as time wasting.

LITERATURE REVIEW
Quality management has aroused great interest among academicians and researchers all over the world. Many studies dealing with quality management has been reported in leading management journals. In the late 19th century pioneers such as Frederick Winslow and Henry Ford recognized the limitation of mass production and the importance of quality management. In 1951 Joseph Juran published a Quality Control Handbook. Quality as a profession evolved during the second half of twentieth century and has evolved since then. Quality control activities were predominant in 1940s, 1950s and 1960s. Since then many research papers and journals have been published giving new quality tools and parameters and improving the previous one and the benefits of their implementation in various industries. We have taken few of them to find out the most important quality tools

and parameters to be implemented in industries which are as follows:

Quality tools and parameters (Definitions)

Pareto diagram : By plotting the cumulative frequencies of the problems and by applying 80:20 rule find out the most frequently occurring problems. This rule states that for 80% of errors only 20% of causes are responsible. Paretos diagram we arrange the causes of errors in descending order of their frequencies and identify those 20% causes of 80% errors. Fishbone diagram: It provides a pictorial display of list in which we identify and organise possible causes of problems, or factors needed to ensure success of some effort. In this diagram we first put the primary causes of a problem and them by going deeper and deeper we identify secondary causes and put them on the diagram and try to remove those problems. Control chart: It is a graphical display of quality characteristic that has been measured or computed from a sample versus the sample number. From this we

can find out whether the calculations or measurements are in the limits or not.

Run chart: It is same as control chart but it focuses more on time pattern while a control chart focuses more on acceptable limits of process. Histograms: It is a representation of data in bars to determine where the greatest amount of variation occurs in process, or to determine if process specifications are exceeded. Scatter diagram: It is a graphical depiction of regression analysis and points out the important relationship between two variables. By presenting the data on a graph it only shows the relationship, increasing, decreasing, constant or periodic. Check sheets: Used to organise the data and count the defective by types. They can be in the form of spread sheets arranging data in matrix form. Brainstorming:

It is group or individual creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ides spontaneously. Persons from different departments sit together and give their own ideas about the problem and try to find out the best possible solution from those ideas. Suggestion scheme: It is a formal mechanism, which encourages employees to contribute constructive ideas for improving the organisation. By doing this the employees feels a responsibility and his importance to the organization and work for its improvement. Plan-Do-Check-Act: It is a standardization of the problem solving process. In this process firstly we plan the solution according to our problem. Then we do as per the plan say, after that we check the results. If the results are convincing enough then we act according to the plan continuously. Statistical process control: It uses the statistical methods to monitor and control a process. Statistical methods like run chart, control charts, histogram etc. 5s:

It is the name of workplace organisation methods. 5s are seiri-sorting, seiton-setting in order, seiso-shine, seiketsu-standardize, shitsuke-sustain. Kaizen: It is a Japanese name for continuous improvement. It is done by improving the processes in small amounts but continuously. Benchmarking: It is a method of improving business performance by learning from other companies and from other departments of the same company, how to do things better in order to be the best in the class. Total productive maintenance: In this tool the machine operator is trained to perform day-to-day tasks of simple maintenance and fault-finding. It reduces the time wastage and after effects of those faults. Quality function deployment: It focuses and coordinates skills within an organization, first to design, then to manufacture and market goods that customers want to purchase and will continue to purchase. In this process we ask for customers demand in a product and then try to implement in our product. Design of experiment:

It is a method of designing of any information gathering exercises where variation is present, whether under the full control of the experiment or not. Program evaluation and review technique: It is a method to analyse and represent the tasks involved in completing the given project.

Failure mode and effect analysis: In this method we review as many components, assemblies and subsystems as possible to identify failure modes and their causes and effects. We firstly disintegrate the product in various parts and then try to find the causes of error and rate their severity, occurrence and detection and calculate Risk priority number (RPN) by formulae: RPN= S*O*D. the one with the maximum RPN is most dangerous and we firstly remove that cause of error. Business process re-engineering: It is a process of fundamental rethinking and radical redesign of business process to achieve quantum leap improvements in business results. Process mapping:

It is a method of documentation of activities involved in defining what a business identity does, who is responsible, for what standard a business process should be completed, and how the success of a business process can be determined. Measurement system analysis: By taking different measurements and compiling it we identify the component of variation in the measurements and try to find out the causes for that irregularity or variation.

6 sigma: It is a management mandated and directed improvement program focused on breakthroughs in financial performance and customer satisfaction. ISO 9000:2000 : It is a family of standards related to quality management system and designed to help organisations ensure that they meet the needs of customer and other stakeholders while meeting statutory and regulatory requirements related to the product. Just in time:

Schonberger defines JIT system as to produce and deliver finished goods just-in-time to be sold, sub-assemblies just-in-time to be assembled into finished goods and purchase materials just-in-time to be transformed into fabrication parts. ISO 14000: It provides practical tools to companies looking to identify and control their environmental impact and constantly improve their environmental performance. It is also a certification which is given to the companies who follows the standards given by ISO for environmental performance. Value stream mapping: In this method we design and analyse the flow of materials and information required to bring a product or service to the customer. Force field analysis: It helps to make decision by analysing the forces for and against a change. Can be used for two purposed: to decide whether to go ahead with the change and to increase your chances of success by strengthening the forces supporting the change and weakening those against it.

Research Objective
The main objective of our report is to understand the quality management and its role towards business survival and competitiveness. For this we will:

Study the quality parameters followed in industries. Checking the extent of these parameters (by collecting the data) and its effects.

Analyzing the measures and suggesting possible improvements for optimum output. Comparing the data of various industries visited and find out the level of implementation of quality tools and parameters and benefits they got from that.

Hindustan Coca Cola Pvt. Ltd.

Type of Industry- Food Processing Industry Products- Coca-cola, sprite, limca, thumsup,fanta, maaza, kinley (water and soda), minuite maid

Products manufactured in Hindustan CocaCola kaladera, Jaipur- Coca-Cola, Sprite, ThumsUp, Limca, Fanta Turn-over-1100 cr. Industry Scale- large scale

Implementation of Various quality parameters

Outcomes

Mostly all the parameters used being a food processing industry with huge competition in the market. Japanese system used throughout the chain- from logistics to manufacturing to the sales and marketing (production and postproduction as well). Shop floor was clear and clean with appropriate safety parameters used. Not effective free flow due to some breakdown problems- mostly problems in the machinery. Future prospect- Implementation of 6-sigma and proper free flow processing. Removal of wastage the primary goal for production. Very good use of all the standards and almost has all the verified standards needed for the industry.

Su-Kam Power Systems Limited

Products inverters, UPS, battery, transformers, solar panel and industrial power solution. It is a manufacturing company with five factories in India (one at Gurgaon and four at Baddi). It is a medium scale company with a turnover of 700 crore. We visited the Gurgaon plant where they only manufacture inverters and transformers of different capacities.

Implementation of Various quality parameters

Outcome

Being an electronic and electrical company, needs an higher level of quality products as lot of risk is involved in its operations. Company knows about the parameters but implementation level is poor (internal audits, no fear). Customer centered company and quality is being checked and improved on customer feedback (outsourcing is done). Line managers are not concerned and consider it a waste of time. According to them real work is what machine does.

Hero Motocorp Pvt. Ltd.

Industry type- Automobile Manufacturing Industry Scale Large Products- Hero Bikes- Splendor , Splendor Plus , CD Dawn, CD Deluxe ,Passion Pro , NXG. Turnover $ 4.4 billion Plant Locations Dharuhera , Gurgaon , Haridwar . Plant Visited - Dharuhera

Implementation of Various quality parameters

Outcomes
Being a large scale automobile industry hero motocorp focusses a large on its quality and ensures zero defects of the bikes reaching the customers. Major focus is given to fish bone diagram, Check sheet, TPM, brainstorming and 5 S activities. Special attention is given to kaizen activities and kaizen sheets are displayed at the work station boards. Suggestions are also taken from the workers to improve the productivity of the machine and minimize the defects as they are directly involved with the machines.

Conclusion
Due to a lot of competition in the market these days, every company whether its large scale or the medium scale takes the quality principles very seriously and they actually use them throughout their process chain. The workers are motivated to use the quality parameters whenever a problem occurs to curb it and take some certified measures so that the problem doesnt occurs again. In the 3 industries personally visited by us so far, we have observed all these practices closely and came to the conclusion that while some Japanese practices such as kaizen, free flow practices and waste removal practices are followed very nicely but still there is a lot of scope of improvement in the way they have been done, still the worker (a common worker) is unaware of the plus points of these and thus he commits mistakes, so there is problem in the training part. Mostly we have seen a gap between the understanding of the worker and the manager upon the implementation of these practices. Thus there is the issue of proper brain storming which involves people from all the parts in the organization. Planning is done at the large scale but execution isnt at that good level. Sometimes workers try to hide their mistakes and some managers arent

compatible with their other counterparts. Thus problems are there but in the nutshell to conclude with, we think that the Industry is on right path of development regarding the quality practices, need is proper training and brainstorming and togetherness.

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