1. A PRESENTATION ON
FOR THE SUBJECT:-
Production and Operation Management

2. • In today’s world due to insufficient quality or indifference to quality lead
to disputes, which imposes serious drain on the financial resources of a
company and limits profit potential.
• To be competitive in today’s market, it is essential for construction
companies to provide more consistent quality and value to their
owners /customers.
• It is high time to develop better and more direct relationships with our
owners/ customers, to initiate more teamwork at the jobsite, and to
producebetter quality work.
• TQM owes its origin to two Americans- W.Edwards Deming and J.M.
Juran- who launched it first in Japan which was on the process of
rebuilding its economy devastated by World War- 2

3. ABOUT
• WHAT IS TQM?
TQM is an integrated organizational approach in delighting customers
(both external and internal) by meeting their expectations on a
continuous basis through everyone involved with the organizational
working on continuous improvement in all products/processes along
with proper problem solving methodology.
“TO DELIVER HIGHEST VALUE AT LOWEST COST” is the
main objective of TQM

4. Significance of the term TQM
Significance of the term TQM
• Total - The responsibility for achieving Quality rests with everyone
a business no matter what their function. It recognises the necessity
to develop processes across the business, that together lead to the
reliable delivery of exact, agreed customer requirements. This will
achieve the most competitive cost position and a higher return on
investment.
• Quality - The prime task of any business is to understand the needs
of the customer, then deliver the product or service at the agreed
time, place and price, on every occasion. This will retain current
customers, assist in acquiring new ones and lead to a subsequent
increase in market share.
• Management - Top management lead the drive to achieve quality
for customers, by communicating the business vision and values to
all employees; ensuring the right business processes are in place;
introducing and maintaining a continuous improvement culture.

5. Scope of TQM
Scope of TQM
TQM is the foundation for activities, which includes:
• Commitment by senior management and all employees
• Meeting customer requirements
• Reducing development cycle times
• Just In Time/ Flow Manufacturing
• Improvement teams
• Reducing product and service costs
• Systems to facilitate improvement
• Employee involvement and empowerment
• Recognition and celebration
• Challenging quantified goals and benchmarking
• Focus on processes / improvement plans
This shows that TQM must be practiced in all activities, by all
personnel, in Manufacturing, Marketing, Engineering, R&D,
Sales, Purchasing, HR, etc.

6. Deming’s fourteen principles for TQM
Deming’s fourteen principles for TQM
1) Create constancy of purpose towards improving products and
services, allocate resources to provide for long term need rather
than short term profitability.
2) Adopt the new philosophy for economic stability.
3) Cease dependence on inspection to achieve quality.
4) End the practice of awarding business on the basis of price tag
alone.
5) Improve constantly and forever every process.
6) Institute modern training (for every employee!).
7) Institute modern methods of supervision on helping people do a
better
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•

7. Deming’s fourteen principles for TQM(Contd..)
Deming’s fourteen principles for TQM(Contd..)
8) Encourage employees to speak up to drive out fear throughout
the organisation.
9) Break down barriers between departments by encouraging
through teamwork and combining the efforts of people.
10) Eliminate slogans, exhortations, and targets for the work force.
11) Eliminate work standards that prescribe numerical quotas.
12) Remove barriers to pride in workmanship.
13) Institute a vigorous program of education and self-
improvement for everyone.
14) Place everybody in the company to work to accomplish
the transformation and create a structure in top management
that will push every day on the above points.
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8. Benefits of TQM
Benefits of TQM
The benefits of TQM can be classified into the following two categories:
1. Customer satisfaction oriented benefits.
2.Economic improvements oriented benefits.
1. Customer satisfaction oriented benefits: The benefits under this
category are listed below:
(a) Improvement in product quality.
(b) Improvement in product design.
(c) Improvement in production flow.
(d) Improvement in employee morale and quality consciousness.
(e) Improvement of product service.
(f) Improvement in market place acceptance.
2. Economic improvements oriented benefits: The benefits under this
category are as follows:
(a) Reductions in operating costs.
(b) Reductions in operating losses.
(c) Reductions in field service costs.
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9. THE COMPANY
IMPLEMENTATION OF TQM AT:

10. Rashtriya Ispat Nigam Limited
(Vizag Steel Plant)
• One of the leading public
sector enterprises under the
Ministry of Steel,
Government of India
• Located in the state of
Andhra Pradesh.

11. Why TQM at RINL?
• TQM was implemented in the company to achieve the
objectives of:
– Preparing the company's products and internal
processes to global standards
– Enhancing quality, productivity, and total
performance of the organization
– Enriching the quality of work life of its employees

12. CONCEPT OF
CONCEPT OF
SIX SIGMA
SIX SIGMA

13. What is Six Sigma exactly means:
What is Six Sigma exactly means:
o Six sigma is a way of thinking and the
results of the approach can yield a
spectrum of improvement choices based
on the balance of values and risk.
o Six sigma is an internationally recognized
management process focused on
producing high quality products or
services to meet the customer’s need and
satisfaction

14. CONTD.
CONTD.
o Six Sigma is not a set of statistical tools, neither it
is a bureaucratic, stage – gate approach to
managing the projects but it is represents a
philosophy to reduce variation continuously and
create a win situation for all the partners in
and around the business or services.
o Six Sigma pioneer Motorola started the program
in 1987
•Motorola describe Six Sigma as a standard
methodology "for driving and achieving
transformational change within an
organization.

15. Objectives of Six Sigma:
Objectives of Six Sigma:
1. To reduce variation.
2. To solving the problems in scientific
manner.
3. Six Sigma places an emphasis on the DMAIC
approach (define, measure, analyze,
improve, and control) to problem solving.
4. To develop the bottom line responsibilities
towards continuous improvement.
5. Organizations using Six Sigma often utilize
teams that are assigned well-defined
projects with a direct impact on the bottom
line.

16. Three Key Characteristics of
Three Key Characteristics of
SIX SIGMA:
SIX SIGMA:
 Leadership Commitment:
• Achieving Six Sigma is not easy – it requires
serious commitment in the form of time, effort,
and resources. For a company to be
successful, such commitment must come first
from the top executive leadership of the
organization and must be practiced by
everyone.

17. ** Managing Decisions with Data:
 It is not enough to run a business based on one's
experience or "tribal knowledge." Decisions must
be based on data versus the typical "I think", "I
feel", or "In my opinion" practices that often exist
today.
 With the maturation of the information economy,
data is available to virtually everyone in the
organization, along with the tools for analyzing that
data.
 Properly using data to Measure, Analyze,
Improve, and Control performance forms the
foundation of the Six Sigma methodology.

18. *** Training and Cultural Change:
• Improved performance does not and will not
happen automatically. High-calibre training is
required. Disciplined implementation must follow,
and people at all levels have to change the way
they go about doing their jobs.
•In short, new ways of thinking, communicating,
and operating must pervade the entire organization.
You also need a methodology. DMAIC and DFSS
provide a structured problem solving roadmap and
tools towards obtaining the results you expect.

19. Six Sigma Methodology – DMAIC & IDOV
Six Sigma Methodology – DMAIC & IDOV
Six Sigma is a process oriented methodology
Six Sigma is a process oriented methodology
designed to improve business performance by
designed to improve business performance by
improving specific areas of strategic business
improving specific areas of strategic business
processes. There are 2 different methodologies
processes. There are 2 different methodologies
available for carrying out improvements in
available for carrying out improvements in
processes or operations.
processes or operations.
Improvements can be of two types: improving
Improvements can be of two types: improving
the existing process or designing a new process
the existing process or designing a new process
altogether. When we have an existing process
altogether. When we have an existing process
and we want to improve the process we deploy
and we want to improve the process we deploy
the DMAIC methodology. While designing a new
the DMAIC methodology. While designing a new
process or completely revamping the existing
process or completely revamping the existing
process the Design for Six Sigma or IDOV
process the Design for Six Sigma or IDOV
methodology is deployed.
methodology is deployed.

20. DMAIC Methodology
DMAIC Methodology
Define Define the problem.
Define the customer(s) and the requirements.
Define the current capability.
Define the key processes that will have the greatest impact
on customer.
Measure Identify the statistical measures to monitor the key process.
Set up the data collection plan.
Measure the process
Analyse Determine the analysis tools and methods to be used.
Summarize the data measured.
Run the analysis and determine the root causes, effects,
etc.
Improve Improve and Implement.
Focus on developing process/technology to improve the
root cause.
Test the method on sample process and validate the
improvement.
Control Standardize and document the process and implement the
plan.
Monitor the process and feedback the results back to the
process for continuous improvement.
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21. DFSS (IDOV) Methodology
DFSS (IDOV) Methodology
Identify Develop a team.
Create team charter.
Gather VOC.
Perform competitive analysis.
Develop CTQs and formally tie design to VOC.
Design Identify functional requirements.
Develop alternative concepts.
Evaluate alternatives and select a best-fit concept.
Deploy CTQs and predict sigma capability.
Optimize Determine process capability.
Develop detailed design elements.
Predict performance.
Optimize design.
Verify Test and validate the design.
Share feedback with manufacturing and sourcing to
improve future manufacturing and designs.

22. Six Sigma Philosophy
Six Sigma Philosophy
Improve
Improve
customer satisfaction
customer satisfaction
by reducing and eliminating
by reducing and eliminating
defects
defects
Greater Profits
Greater Profits
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23. Motorola’s application
Motorola’s application
of Six Sigma
of Six Sigma
Six Sigma became a poster child for driving down cost and improving organizational
bottom line when Motorola won the Malcolm Baldrige National Quality Award in
1988, which was the first year this award was presented. In 1987, Motorola was
operating at a four sigma level. This means that Motorola was running at defect rate
of about 6,200per million opportunities compared to its Japanese counter parts that
were running at 3.4 defects per million opportunities. Motorola’s defect rates lead to
increase cost to sales and diminished profits and contributed to losing market
share. Motorola’s customers included many police, fire, and emergency response
organizations that relied on radios and communication equipments manufactured by
Motorola.. Losing these customer’s to foreign competition would be public relations
and financial disaster for Motorola.

24. Given Motorola’s dire situation, Chairman Bob Galvin
Given Motorola’s dire situation, Chairman Bob Galvin
mandated bold initiative for
mandated bold initiative for
the company. This mandate could be summed up as:
the company. This mandate could be summed up as:
(1) improve product quality by ten times in two years;
(1) improve product quality by ten times in two years;
(2) improve product quality by 100 times in four years; and
(2) improve product quality by 100 times in four years; and
(3) reach Six Sigma quality level in five years.
(3) reach Six Sigma quality level in five years.
The immediate goal of Six Sigma is to reduce
The immediate goal of Six Sigma is to reduce
defects. Reducing defects leads to yield
defects. Reducing defects leads to yield
improvement. Higher yields improve customer
improvement. Higher yields improve customer
satisfaction. The ultimate goal is enhanced net
satisfaction. The ultimate goal is enhanced net
income.
income.
Six Sigma applications brought process focus to the
Six Sigma applications brought process focus to the
company and resulted in tremendous cost and
company and resulted in tremendous cost and
process improvements. In 2002, Six Sigma
process improvements. In 2002, Six Sigma
application earned Motorola another Malcolm
application earned Motorola another Malcolm
Baldrige National Quality Award in the Government
Baldrige National Quality Award in the Government
and Industrial Sector.
and Industrial Sector.

25. FINALLY…..
MADHU CHAUHAN