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Total Quality Management

Total Quality Management. Prepared by: Bhakti Joshi Date: January 02, 2012. Case Study: Su-Kam. Problem Statement. Power outages and fluctuations Bad quality power backup appliances Fragmented industry. Comprised of small local players

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Total Quality Management

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  1. Total Quality Management Prepared by: Bhakti Joshi Date: January 02, 2012

  2. Case Study: Su-Kam Problem Statement • Power outages and fluctuations • Bad quality power backup appliances • Fragmented industry • Comprised of small local players • Presence of large players in electrical and consumer durables but not “Power Backup” industry Industry Characteristics • Nascent industry with unorganised players • No standardisations and regulations • Su-kam initiated innovation & creativity Opportunity

  3. Case Study: Su-Kam (Contd…) Product Design • Visually appealing, light-weighed and shockproof inverters • Power backup duration grows from 10 -1 5 minutes to 2- 3 hours • Switchover time reduced from 50 – 100 milliseconds to 0 – 5 milliseconds • A 250 VA invertor that can run 1 tube light, a fan or 2 CFLs • Portable devices for shop-owners and traders • Invertor costs about Rs 2000 and Rs 4000 with battery • UPS industry • Cable TV industry and other digital product industry • Missile industry Team Setup

  4. Case Study: Su-Kam (Contd…) • Introduced MOSFET (Metal Oxide Semiconductor Field-Effect Transistor), a device used to amplify or switch electronic signals that reduced the size of inverter • Sine wave technology that introduced noise-free inverters • Plastic body inverters with help of GE plastics • Home UPS (Inverter plus UPS) • PowerDoc monitoring system that helps in remote monitoring all the larger KVA products • Recall Software a remote system through which Su-Kam servicing or maintenance can done without opening the inverter Technology

  5. Case Study: Su-Kam (Contd…) • Local manufacturers were converted into distributors • Battery dealers were converted into dealers of Su-kam products • Marketing through banners on dhaabasand tea shops across highways. Put names of dhaabason banners along with Su-kam’s name • Advertisement in classified columns and gradually moved to colour and electronic media Distribution

  6. TQM: Focus on Root Causes CUSTOMER FOCUS Identify and meet customer needs CONTINUOUS IMPROVEMENT Philosophy of never-ending improvement Employee Empowerment Employees are expected to seek out, identify and correct quality problems USE OF QUALITY TOOLS Ongoing training in the use of quality tools

  7. Focus on Root Causes PRODUCT DESIGN Products need to be designed to meet customer expectations PROCESS MANAGEMENT Quality should be built in the process; sources of quality problems should be identified and corrected MANAGING SUPPLIER QUALITY Quality concepts must extend to a company’s suppliers

  8. Taguchi Methods: Example • Company C received an average of 10 complaints per month last year. In November they received 15 complaints (y). Management sets an acceptable level at 2 (tolerance). • It costs the company Rs.500 directly per complaint to correct the problems. They determined the cost in lost sales to be Rs. 1000. • Total cost per complaint: Rs. 1500

  9. Characteristics of the Company • Customer satisfaction • Quality loss as loss to society quantified through “Quality Loss Function” • Variations from optimal measure results in a loss • Product Design • Equipment: No breakdowns • Specific jobs defined • Policies and Procedures – know-how

  10. Formulae • L(y) = k(y-m)2 L(y) = Loss k = constant = cost to correct tolerance2 y = reported value m = mean value (average)

  11. Calculation k = Rs1500/22 = Rs375.0 L(y) = 375.0 (15-10)2 = 375.0 (5)2 = 375.0 (25) = Rs. 9375.0 is loss for the month of November

  12. Concept of Quality Loss • Use of statistical analysis for quantification • Used as a quality control tool to quantify quality during experiments and trial-errors especially in R&D • Aims to reduce product variability with a system for developing specifications and designing them into a product or process.

  13. Quality Control A process through which a business seeks to ensure that product quality is maintained or improved and manufacturing errors are reduced or eliminated. Quality control requires the business to create an environment in which both management and employees strive for perfection. This is done by training personnel, creating benchmarks for product quality, and testing products to check for statistically significant variations.Read more: http://www.investopedia.com/terms/q/quality-control.asp#ixzz1hzLDJ9TD

  14. Criticism • Discuss in Class

  15. Email: bhaktij@gmail.comWebsite: www.headscratchingnotes.net

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