Monday, October 8, 2007


The competitive quality of a company’s products often depends on

a. The quality of the raw materials and parts that it purchases from external suppliers
b. The price that it pays for these supplies
c. The timeliness of their delivery to its production lines.

It is therefore critical that a company selects its external suppliers carefully. It should

a. Get as much information as it can about potential suppliers from independent sources
b. Require candidate companies to present clear, detailed documentation of what they offer
c. Request, if appropriate, a prototype made to their specifications.

To get a really good picture of a candidate company’s capabilities, carry out an in-depth investigation, examining the following points:

a. The candidate company’s production resources,
b. Its system of inspection and control,
c. Its way of handling abnormalities
d. Its ability to carry out engineering changes in response to changes in specifications and new technology.

Drawing up a contract with a supplier company and agreeing terms should also be approached with care. The buyer company should

a. Take a systematic approach to setting a purchase price
b. Think carefully about all the details to be included in the contract.

When a company starts to do business with an external supplier, it must inspect incoming supplies. It will need to have standards for this inspection. These standards should

a. Be established in consultation with the supplier
b. Include an evaluation form in which all the relevant details can be entered at the time of delivery.

It is always in the buyer company’s interests to encourage and support its suppliers in improving their levels of quality. Where the buyer company is more advanced in quality control than the supplier, the buyer should

a. Get the supplier company to put someone in charge of quality and liaise with this person.
b. Encourage the supplier to use QC circles.
c. Exchange information with the supplier.
d. Encourage the supplier to take on greater responsibility for improving their own quality.

The buyer should also monitor the efforts of the supplier to improve and maintain quality. This can include:

a. Carrying out an evaluation of the supplier, and then setting up a system to correct weak points.
b. Keeping a record of whatever technical instructions have been given to the supplier.
c. Using work standards and a QC process chart to check that the supplier is carrying out each process correctly and maintaining the production flow properly.Regularly evaluating the records of goods delivered.

Finally, look on the relationship with an external supplier as one that will last. Develop a long-term strategy to:

a. Maintain and improve quality
b. Ensure the correct production volume is achieved
c. Shorten deadlines
d. Utilize the specific technology of the supplier
e. Reduce production costs.

TQM17.Production Control

– Production and shipping plans

a. Annual Production Plan
b. Monthly or daily production plan
c. Shipping plan

– Ensuring that production keeps to plan

a. Optimise the organization of the production line
b. Set and keep to standard times
c. Become aware of production capacity
d. Manage each process
e. Manage the production schedule
f. Prevent delays in production
g. Manage operating ratios
h. Plan a smooth supply of components and materials

– Dealing with fluctuations in production

a. Fluctuations in production and changes to processes
b. External suppliers’ response to production fluctuations
c. Response in component and material supply to fluctuations in production
d. Fostering multi-skilled workers

- Planning the inventory

a. The inventory plan
b. Setting and Managing Standard Inventory Quantity
c. Standard inventory quantity for each process

– Managing the inventory

a. Work-in-process inventory quantity
b. Inventory management at a glance
c. First-in, first-out

– Inspecting finished products, dealing with abnormalities, improving production

a. Finished goods inspection
b. Define abnormalities and standardize countermeasures
c. Kaizen (improvement in production control)

TQM8.Problem Solving

A- Recognising abnormalities

B - Reporting abnormalities

C: - Emergency Actions

D – Preventing the recurrence of abnormalities

E – Rules for processing abnormalities

F – Base the management of abnormalities on facts

G – Managing dispersion

H – Control charts

I – The QC Story

J– Preventing problems arising

K – CEO Review of the quality system

TQM4.Policy Management

Policy Management

1. Policy management covers a company-wide range of activities aimed at implementing mid to long-term management plans and annual management policies based on the company’s business philosophy. Policy management is essential if a company is to effectively develop new products, improve and manage quality, reduce costs, and strengthen its constitution.

2. Policy management involves several actions:
First the company establishes its business philosophy and, on the basis of this philosophy, it develops long and mid-term management plans.

Then at the beginning of each fiscal year the CEOs establish the presidential policies for the fiscal year – the company’s annual and other short-term targets, based on these long and mid-term plans, with the concrete measures needed to achieve them.

Presidential policies are deployed – they are forwarded to the departments and sections that they concern. There the managers examine the policies, consider the problems that they themselves have to deal with, and then decide on their own policies and targets. They in turn deploy their policies and targets to the departments and sections below them in the form of policies and implementation plans. These lower organizational units then implement them.

Various employees will be assigned to use control graphs (see Text D) and other reference materials to inspect, on a weekly or monthly basis, if:

(1) The measures in the implementation plans are being implemented as prescribed
(2) These measures are having the anticipated effects

If any abnormalities appear, (i.e. any result of implementing the plans that was not expected) countermeasures should be taken quickly and the results of the countermeasures reported to superiors. If necessary, subsequent implementation plans should be modified.

At the middle and end of each fiscal year, department managers, section managers or CEOs diagnose

(1) The status of policy implementation
(2) The achievement level of management items
(3) The status of general quality management

At the end of each fiscal year, the actions implemented during the previous twelve months are appraised and reflected on. Summary reports should be prepared to enable activities such as setting up a team that will specialise in important quality problems.

3. It is important to set up a system to manage the establishment, expansion, implementation, confirmation, and disposal of policies.


There are four important objectives that a manager should pursue to maximize the contribution that his employees can make to the success of the company.

1.They have a positive attitude to work
2.They understand and observe the work standards and rules
3.They improve their technical skills
4.They find ways of improving the efficiency of the production process
and the quality of finished products.

The attitude of employees can have a major impact on the success of the company. The manager should be alert to indications of a negative attitude. Attendance and punctuality are two key indicators. A manager must find out the reasons for low worker morale, and find ways to foster a more positive attitude. A dynamic workplace where morale is high will also be a workplace where productivity and quality will be high.

If the production process is to run efficiently and deliver goods of consistent quality mangers must

- encourage employees to have a good sense of responsibility
- ensure that they understand the work standards and rules, and how important it is to observe them
- ensure that they actually follow the standards and observe the rules

Manufacturing technology is continually advancing. This requires ever-higher skills levels of employees. The best way for a company to achieve this is by encouraging its employees to raise their skills levels. This it can do by:
- encouraging employees to take part in the company’s educational and training courses
- creating an atmosphere where employees look for ways of improving their work
- supporting employees in developing their skills by setting up a qualifications system and standardizing levels of skills
- encouraging the exchange of information and ideas between departments

QC circle activities and similar group activities can be very effective in bringing improvements to production. A QC circle is conducted independently by its members to
- Develop their own original ideas for improving work procedures and operations
- Work towards both self-development and group development
- Create a dynamic work environment that encourages employees to make greater efforts.

Suggestion schemes can do a lot to encourage employees to seek out ways of improving product quality. A system should be set up to receive suggestions, those that are adopted should be implemented quickly and their proposers praised when the results prove good. The new procedures should then be standardized. Once employees are aware of the contribution they can make to product quality, they will be motivated to look for ways of improving their work processes.



A manager has a great many different tasks to do to ensure that his department runs smoothly and productively. These tasks are presented in nine texts in this unit.

– Define jobs and responsibilities

·Have clear descriptions of the jobs, responsibilities and authority of each department: these are known as job or work assignments.
·Write up the work assignments for your department.
·Clarify concrete policies and objectives on matters of quality, quantity and cost.

- Communicate job assignments

·Communicate the instructions that you receive from your superior to your subordinates
·Instruct, train and support your subordinates to carry out these jobs as planned.
·Use observation and statistical methods to monitor the quality of the work.

– Give instructions and support to your subordinates

·Give operators clear instructions, if you want the work to be done properly

·Discuss a new operation with your subordinates before they begin to make sure that they will follow the instructions correctly.
·Take care with your written communications to your subordinates.
·When you are communicating with other departments, put everything in writing and keep records.

– Set up a system to deal with nonconformities

·Set up a system to ensure that quick action will be taken when nonconformities occur.

– Identify and analyze the causes of nonconformities, and take action

a.Use the 4M approach to help identify the causes of nonconformities
b.Check if the analysis of the cause of deficiencies is being conducted properly.
c.Clarify the action to be taken when the causes of nonconformities are known

– Work with your subordinates to implement department policies

·Discuss with your subordinates how the company’s management policies relate to the work of your department.
·Involve your subordinates in planning how to implement these policies.
·When any implementation problems arise go to the workplace and study them with your subordinates.

– Encourage your subordinates to become more improvement conscious

·Encourage your subordinates to become more improvement conscious – set up a suggestion scheme.
·Support the activities of QC circles in your department.

– Educate, train and motivate your subordinates

·Educate and train your workers systematically in the skills they need for their jobs.
·Keep your subordinates ability level in mind when you are assigning jobs.
·Ensure that your subordinate submit proper reports.
·Motivate your subordinates to work enthusiastically.

– Educate your subordinates in the value of the PDCA cycle

·Make sure that your employees understand the value of the PDCA cycle.
·Use numbers, graphs and tables to quantify the effects of improvement.

Sunday, October 7, 2007


1. CEO