TQM Tools and Techniques I - The seven tradition tools of quality, New

management tools, Six sigma, Concept and methodology, Application to

manufacturing, Service sector including IT, Benchmarking, Reasons to
benchmark, Benchmarking process, FEMA, Stages of FMEA and types.
3.1 THE SEVEN TRADITIONAL TOOLS OF QUALITY:
The seven major SPC problem solving tools proposed by Prof. Ishikawa.
1. Process flow-diagrams
2. Cause and Effect diagram
3. Histogram
4. Pareto diagram
5. Check sheet
6. Scatter diagram and
7. Control Charts
i) Process flow-diagrams:
1. These diagrams show the flow of the product or service as it moves through
the various processing operations.
2. It shows the overall picture of the sequence of operations connected with
the manufacturing process graphically or diagrammatically.
3. The diagram makes it easy to visualize the entire system, identify potential
trouble spots and locate control activities.
4. Improvements can be accomplished by changing, reducing , combining or
eliminating steps.

ii) Cause and Effect diagram:

1. A cause-and-effect (C&E) diagram is a picture composed of lines and
symbols designed to represent a meaningful relationship between an effect
and its causes.
2. Prof. Ishikawa of the University of Tokyo developed this tool and hence it is
also known as Ishikawa diagram.
3. It is known also as Fish bone diagram because of its appearance.
4. The following fig. Illustrates a C&E diagram with the effect on the right and
causes on the left.

Steps Involved In Constructing A Cause And Effect Diagram:

1. The first step is to clearly define the problem to be studied.

2. Draw a broad arrow going from left to right. This is the backbone of the
diagram. Write down the effect at the tip of the arrow.
3. Identify the major causes for the particular problem. These major causes
are called the major bones of the diagram.

These causes are identified

through a brainstorming session.

4. Draw and label the major bones as diagonal lines as shown in the fig,
5. Now go in for further brainstorming session to identify the reasons for the
major causes.

These reasons are called as subcauses and these are

otherwise called as small bones and they are drawn from the major bone.
6. Now the picture is ready so that interpretations can be made based on this.
7. Look for possible solutions for these causes.
8. Introduce the changes.
Uses:
1. To analyze the cause of any quality problem identify the factors leading to
better results (effect).
2. To organize everyones active participation in the brainstorming process in
order to get free flowing ideas.
3. To eliminate conditions causing non-conformities and customer complaints.
4. To standardize existing and proposed operations.
5. To educate and train personnel in decision-making and corrective action
activities.
Applications:
1. The CE diagram

has

unlimited

application

in

research,

marketing,

manufacturing, office operations, services etc.

iii)Histogram:
1. It is a pictorial diagram showing the visual representation of spread or
distribution of data.
2. It also illustrates the various measures of central measures of central
tendency.
3. Mean: Sum of all the measured or counted data divided by total number of
data points, also known as average
4. Mode: the values repeated most often in the raw data
5. Median: the middle value of all data points.

Steps Involved In Constructing A Histogram:

1.
The data are collected to be charted and the total number of data values
are counted.
2. The range of data is determined by subtracting the smallest data value from
the highest data value.
3. The data values (observations) are divided in groups and the number of
values are counted in each classes.
No. of

<100

100-500

> 500

Values
No. of

5-9

8-17

15.20

Classes
4. The width of the class is determined by the following formula
Width = Range / No. of classes selected from the table
5. A frequency table is drawn for all values
6. A histogram is drawn based on the frequency table. The class intervals are
placed on the horizontal axis (X axis) and the frequencies on the vertical
axis (Y axis)
7. Finally, the height of each bar is to represent thee number of values or the
frequency of class interval is marked on the diagram.
Types of Histograms and their interpretations

Uses of Histogram:
1. Used to monitor a process in order to meet the customer requirements
2. The information in histogram help in understanding the extent to which a
process is operating normally or out of control. Help to identify the root
cause.
3. It gives sufficient information about a quality problem to provide a basis for
decision making
4. It is a tool for determining the variation from the allowable specification and
suggest the ways of keeping a process in control.
iv)Pareto Diagram:
1. A pareto diagram is a graph that ranks data classifications in descending
order from left to right.
2. The Pareto diagram is based on the Pareto principle, which states that a few
of the defects accounts for most of the effects.
3. Pareto analysis is also called as 80/20 rule and as ABC analysis. It means
that 80% of the problems (effects) are due to 20% of the causes (defects).
4. This analysis is a method of classifying items, events or activities according
to their relative importance.
Uses of Pareto Diagram:
1. It is a prioritization tool used for problem identification and also for
measuring the progress of corrective actions.
2. It is a powerful tool used for quality improvement
3. It helps to identify the most significant problems so that effort can be
concentrated to get the maximum benefit at the least cost.
Pareto diagram for reports of troubles with telephones
Steps Involved In Constructing a Pareto Diagram:
1. The method for classifying the data is determined by means of problem ,
cause, failures, complaints and non-conformities
2. The required data is collected by using check sheet or use historical data
3. The data (frequency) is arranged in descending order starting from largest
to smallest category
4. The percentage of total is calculated for each category
5. The cumulative percentages are computed
6. A bar chart with two vertical axes is drawn.
i)
Along the left vertical axis, mark the measured values for each cause,
ii)

starting from zero till the total number of causes.

The right vertical axis should have the same height and should go

iii)

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.

7. Draw a bar above each item whose height represents the number for that
cause.
8. Plot a cumulative percentage line.

9. 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 from this intersection downwards till the horizontal axis.
intersection point are the 20% of

Left from this

the causes which causes 80% of the

damages.
V)Check Sheet:
1. It is also known as Tally Sheet
2. It is a systematic way of recording direct observations and helping to gather
facts in the process
Uses of Check Sheet:
1. It is used to record the variables in a production process to improve the
quality
2. It can also be used to maintain stocks and machinery
3. It is useful for getting immediate inference and taking corrective actions
4. Check sheets are used to ensure that the necessary procedures are
completed correctly before the operation begins.
Steps to construct check sheet?
1. The objective is specified clearly and concisely
2. The required data is collected and relevant data is chosen
3. Each data is analyzed before entering the record
4. A check sheet format is drawn to record the data
5. Record data problem-wise by putting tally lines.
6. Start counting by tallying on the list; |,||,|||,|||| and |||| represent the
numbers 1,2,3,4 and 5 respectively.
7. The sub total and the grand total number of facts are marked on the list
Types of Check Sheets:
1. Process distribution check sheet-It is used to collect the data on process
variability
2. Defective item check sheet-It is used to collect the data to specify the
defects occurring
along with their frequency of occurring
3. Defect location check sheet-It is used to identify &locate where defects occur
on the product
4. Defect factor check sheet-It is used to monitor the input parameters.

VI)Scatter Diagram:
1. It is simply a graphical tool used to examine the relationship between two
variables
2. The measured values (cause) of one variable (independent) are plotted on
the horizontal axis and the other measurement values (effect) of variable
(dependent) are marked on the vertical axis.
3. This diagram displays the paired data as a cloud of points. The density and
direction of the cloud indicate how the two variables influence each other.
4. The purpose of the scatter diagram is therefore to display what happens to
one variable when other variable is changed.
5. The diagram is used to understand, why particular variations occur and how
they can be controlled.
Examples:
1. The relationship between Car speed Vs fuel consumption per kilometer
2. Cutting speed Vs tool life in the manufacturing Division.
Uses of Scatter diagrams:
1. It is used to determine the relationship of one variable with the other
variable
2. It is also used to determine the cause and effect relationship between the
two variables
Types of Scatter Diagrams:
1. Positive Correlation if an increase in variable X depends on an increase in
variableY
2. Negative Correlation- if an increase in variable X depends on a decrease in
3.
4.
5.
I.

variable Y
No Correlation-if the correlation is close to zero
Positive Correlation may exist
Correlation by stratification
Curvilinear relationship

Cause : X axis ; Effect : Y axis

Steps Involved In Constructing A Scatter Diagram:
Select variables which are related to each other
Collect data
Create Scatter diagram
X axis -> Cause or independent variable
Y Axis-> Effect or dependent variable
Examine the shape of cloud of points

vii) Control Charts:

1. It is the
most the
widely
statistical
process control which was
Determine
type andused
strengthtool
of theinmutual
relationships
introduced by Walter A. Shewart in 1926.
2. Control chart is aimed to monitor the quality of process continuously.
3. A histogram gives a static picture of process variability, whereas a control
chart illustrates the dynamic performance (i.e. performance over time) of
the process.
4. The control chart is based on a series of random samples taken at regular
intervals.
5. Three horizontal lines are drawn on the control charts. The top line
represents the Upper Control Limit (UCL), and the bottom line represents
the Lower Control Limit (LCL).
6. These two lines are generally set at 3sigma from the sample means.
7. The centre line is the average mean value of the characteristic usually set at
the normal design value

8. The samples are plotted one by one the control charts and these are
connected with straight line segments.
9. If the sample value lies inside the 3sigma limits, the process is said to be
within control
10. If the sample value lies outside the 3sigma limits, the process is said to
be out of control

Uses Of Control Charts:

1. These are line graphs that are used to track a process trend or process
performance in order to control the process characteristics.
2. Control charts are used to improve the quality of the product and also to
reduce certain unwanted cost
3. It is used to improve the process capability by reducing the variability in the
process adopted.
Objectives Of Control Charts:
1. To provide the basis for taking decisions related to the acceptance or
rejection of products being manufactured
2. To determine and eliminate the assignable causes of variations in a process
3. To constantly monitor a process to determine whether the process is
controlled statically or not
4. To evaluate process stability and to decide when to adjust the process
5. To improve the existing production procedures by analyzing the capability of
the machine and the process
Types of Control Charts:
Control Charts for Variables For measurable data such as time, length,
temperature,
weight, pressure etc.
Control Charts for Attributes For quantifiable data such as number of
defects, typing
errors in a report etc.
(i) Control Charts for Variables:
1. X-Chart
2. R-Chart
3. Sigma Chart

(ii) Control Charts for Attributes:

1. P-Chart
2. NP-Chart
3. C-Chart
4. U-Chart
Difference between control charts for variables and attributes
SI.No
1

Variable Charts

Attribute Charts

Variable data are usedAttribute data are used with the help of GO and
(ie)

the

qualityno GO

characteristics

are Gauges.

measurable and can beExample : p, np,C and U charts

expressed in terms of
numerical values.
Example : Mean-Chart
R-Chart
Sigma Chart
2

It

provides

maximumIt provides overall picture of the quality.

utilization
information

of
from

the

available data.

3.2 NEW SEVEN MANAGEMENT TOOLS

1. In addition to the 7 SPC tools, Japanese developed seven more tools for
2.

quality improvement. These are called as the New seven Management Tools.
These tools are used in the Area of product quality development, cost

reduction and system improvement.

3. These tools are also used for top and middle management of the
organizations for strategic planning, goal setting, problem solving and new
product development.

10

i.
ii.

Affinity Diagram (KJ-Method)

Relations Diagram

iii.

Tree Diagram (Systematic diagram)

iv.

Matrix Diagram

v.
vi.
vii.

Matrix Data Analysis Diagram (Prioritization matrices)

Process Decision Program Chart (PDPC) [Decision tree]
Arrow Diagram (Activity Network diagram)

i. Affinity Diagram
1. It is a tool used to collect a large amount of data (ideas, opinions,
observations etc.,) and organize them in groups based on natural
relationship between each items.
2. So that these data can be analyzed systematically for finding solution to the
problem.
3. It is also known as KJ-Method because of its inventor name Kawakia Jiro.
4. It is a special kind of brainstorming method.
5. Step by Step procedure
Identify the problem and phrase it without biases

Brainstorm ideas and opinions, individually and

record on the cards

Sort cards into groups and discard those with no

affinity

Label the groups and organise the cards under them

to form chart

Analyse the results and plan action-points

Uses of Affinity Diagram
1. It is used to find out the root cause of the problem by focusing on the
processes.
2. It is used to understand and organize problems that are not clear.
3. The visual representation of affinity diagram gives a large amount of ideas.
4. It encourages team work with critical thinking.

11

5. It creates a sense of ownership of the process.

ii.Relationship Diagram [ Inter-Relationship Diagram]
1. It is also known as interrelationship diagram.
2. It is a tool finding solutions to problems that have complex relationship.
3. The relationship diagram not only clarifies the relationship between cause
and effect bur also between the various causes.
4. It is a graphical representation of all factors in a complicated problem,
system or simulation.
5. Purpose:
The main purpose of relationship diagram is to generate a visual representation
of the relations between an affect and its causes as well as the interrelationship between the different causes of the problem.
6. Uses:
i.

It helps to identify the key problem from a list of important problems

ii.

It is used to identify the root cause of existing problem

iii.

It clarifies the interrelationship of many factors of a complex situation

iv.

It is used to identify the key factors needed to make a decision.

7. Steps involved constructing a relationship diagram

i.

The first step in the process is to identify the main problem [i.e.effect].
Finally, it is enclosed in a dark bordered rectangle.

ii.

The next step for the group members is to identify the immediate
reasons [i.e.causes] for the given problem.

iii.

The possible causes are noted down in a card.

iv.

These causes are placed by rectangles around the centre as dark

rectangle.

v.

These intermediate causes are connected to the effect by a straight line.

Arrow in the line pointing towards the effect is marked.

vi.

The intermediate rectangle with most outgoing arrows indicates the root
causes and the rectangle with most incoming arrows indicates the root
effects. [Outcomes or results]

12

iii) Tree Diagram

1. The other name for this method is dendrogram.
2. This can be used to determine the ways or means needed to achieve a
specific goal or objective.
3. It gives a birds eye view of the whole situation at a single glance.
4. This diagram is mostly used when the cause that influence the problem are
known but, the ways and means for resolving the problems have not been
developed.
5. Steps involved in a Tree Diagram
i.

The ultimate objective to be achieved is clearly fixed and stated.

ii.

All possible causes are brainstormed to determine the tasks that are
involved to reach the end objectives.

iii.

The most important tasks are identified to place these tasks at the first
level of the tree diagram.

iv.

The sub-tasks that are needed to complete the primary task are
identified. These tasks in a sequential order are arranged to the right side
of the main tasks.

v.

Each branch of the completed tree diagram is analyzed in order to

achieve the objective.

Eg. The tree diagram for how to improve customer relations for any
organisations to survive and succeed.

13

iv)Matrix Diagram
1. It is a tool that is used to find out, study and rate the relationship between
two or more variables.
2. Matrix diagram sometimes referred as quality table is the starting point in
building a house of quality.
3. For eg. This diagram can be used to understand relations between customer
satisfaction and product characteristics, between complaints and product
groups, etc.
4. Steps for matrix diagram are:
i)

First decide on the two sets of factors to be compared.

ii) Place the main factors vertically (features) on the left hand side of the
matrix and the dependent factors(characteristics) horizontally on the top
of the matrix.
iii) In the main body of the matrix, place appropriate symbols at the
intersecting square boxes denoting the relationship between the two
factors.
iv)

Now score relationships and select most important relationship for

analysis.

5. Uses:
i. It is an effective problem solving tool that is used to assign tasks to
complete the project
ii. It is used to show the relationship between the two variables
iii. It is used to compare different competing alternatives with multiple
characteristics.

14

Types of Matrix diagrams

1) L-Shaped matrix ( 2 Variables are used) [Most Common type]
2) T-Shaped matrix ( 3 Variables are used)
3) Y-Shaped matrix ( 3 Variables are used)
4) X-Shaped matrix ( 4 Variables are used)
5) C-Shaped matrix ( 3 Variables are used)
V)Matrix Data Analysis Diagram
1. It is almost similar to a matrix diagram but the difference is that the
numerical data is used instead of symbols indicating the existence and
strength of relationship.
2. It is the only tool among the New Seven Management Tools which uses
numerical data and produces numerical results.
3. Purpose:
i)

To present numerical data about two sets of factors in a matrix form

and analyse it to get numerical output.

ii)

This tool is used in Principal Component Analysis where only two

characteristic can be studied at a time.

iii)

This tools is advantageous in studying the parameters of production

processes, in analyzing market information etc.

4. Steps in constructing a matrix data analysis diagram

i)

The important factors to be considered is listed in the first column of

the matrix. The other factors are listed in relation with the important
factors in the first row of the matrix.

15

ii)

The numerical data with weightage corresponding to these factors are

entered.

iii)

The weightages are added horizontally against each row factor and
the values are recorded in the last column.

iv)

The factor with least total is to be ranked first, the factor with the next
highest total is to be ranked and so on. The rankings are shown in the
last column.

v)

Now the factors are analyzed separately in the order of the obtained
ranking.

5. Uses:
i.

It is used to analyze only two characteristics at a time.

ii.

It is used to prioritize issues using a weighted criteria.

iii.

It is used in production processes where the complicated problems

arise.

If 6 factors are present, use 1 for the most important factor and 6 for the

least important factor.

From the above example matrix, the order of priorities of these factors

are as follows.
1. Very tough question

16

2. Inefficient teacher
3. Syllabus is more
4. The staff member has finished less portions in the syllabus
5. Students preparation is not enough
6. Very strict valuation.
vi)Process Decision Program Chart (PDPC) or Decision tree
1. It is also known as Decision tree which is used to identify the possible
deviation from the actual plan of the objective.
2. The PDPC forces proactive thinking on what can go wrong with ones plan
and what would one do to overcome the effect of such adverse occurrences.
3. In other words, this tool helps to anticipate undesirable occurrences and
enables one to prepare with plans to neutralise their effect.
Uses:
1. It is used for decision making, when the new or unique task involves great
risks
2. It is used to identify the undesirable occurrences and avoid them by
planning appropriate counter measures
3. It provides the mechanism to effectively minimize uncertainty in an
implementation plan
4. It encourages team members to think about what can happen to a process
and how counter measures can be taken
5. It is used in new product development, data processing systems and
building construction
Steps for constructing the PDPC Chart
1. The ultimate objective to be achieved is determined.
2. The first level of activities to be completed to attain the overall objective.
3. The second level of activities to be completed is listed out to achieve the
first level activities.
4. The brainstorming is conducted in order to find what is wrong, while carrying
out the first level of activities. This is called what if level.
5. The countermeasures for each what if are evaluated and are placed in a
balloon in a bottom level.

17

vii)Arrow Diagram
1. It is a graphical representation of the sequential steps that must be
completed before a project can be completed.
2. It is a technique of planning, scheduling and controlling of all the activities
of a project.
3. CPM (Critical Path Method) and PERT (Program Evaluation and Review
Technique) charts are the best example of arrow diagrams.
4. This arrow diagram is indispensable for long term projects such as the
construction of a plant or the development of new products.
5. The main purpose of the arrow diagrams are :
i)

TO show the paths to complete a project.

ii)

To find the shortest time possible for the project.

iii)

To display graphically simultaneous activities.

6. Steps involved to construct a Arrow Diagram

i.

The various activities (tasks) are identified and listed out to complete a
project

ii.

The sequence of activities is determined one after another. The time

duration to each activity is fixed.

iii.

Each event is numbered by using Fulkersons rule and the connecting

arrows are drawn

iv.

The earliest start, earliest finish, latest start and latest finish are
calculated for each activity

18

v.

The critical path that is, the path with longest possible time duration is
determined on the network

7. Construct an arrow diagram i.e. CPM network for the following

data:
Activity

Designation

Immediate

Time in weeks

Design

Predecessors
-

16

Build prototype

Evaluate

equipment

Test prototype

C,D

Write equipment

C,D

report

E,F

Write methods
report
Write final report
Uses :
1. It is used to find the possible time duration to complete the project.
2. It is used to find the critical path of the process or a project.
3. It is used for planning and scheduling the projects.

3.3 SIX SIGMA:

The 3 sigma quality level accepts only 0.27% of points to fall outside the
control limits.
In some exceptional cases, this quality level is not enough to meet the
actual requirements.
For example, if an aircraft consists of 9,000 different parts, according to
3sigma quality level, 25 defective assembled parts are accepted
This should not be accepted because, this may cause to a major incident.
Hence it is necessary to increase the sigma level in order to reduce the
defectives in to a few parts per million.
Therefore , we are implementing 6 sigma quality level

19

 Under this six sigma level 3.4 defects per million opportunities with
99.99966% of accuracy
This six sigma quality level is developed by the world class company
Motorola in the Year of 1987.
Quality

Defects per million

Cost of Poor

level

parts produced

quality

1-sigma

6,90,000

40-70% of sales

Product Status

Non-competitive
2-sigma

3,08,537

30-40% of sales

3-sigma

66,807

20-30% of sales

4-sigma

6,210

15-20% of sales

5-sigma

233

10-15% of sales

6-sigma

3.4

Less than 10% of

Industry Average

World Class

sales
Advantages of Six-Sigma:
It is used to indicate the extent to which a process can vary without
causing errors in the operation
This approach aims to reduce the defect levels into only few parts per
million parts inspected
It aims to achieve zero defects
It identifies and eliminates causes of defects in the process/operation.
It provides extensive training to the project team hence, cycle time is
reduced with more profit
It improves the work systems, training and the work environment
It decreases the cost of inspection and reduce the rework
Disadvantages of Six-Sigma:
This approach is very attractive but in practical it is very difficult to
achieve.
Steps involved in 6-sigma state/Process of 6-sigma (DMAIC):
1. Define
2. Measure
3. Analyze
4. Improve
5. Control
Define :
The goal of an organization is defined
To set the policies and procedures

20

 Identifying the customer requirements

Measure:
The existing system is well measured and displaying data
Analyze :
The gap between the current performance of the system and the aimed
target is identified
These data are analyzed and then the improvement opportunities are
determined
Improve:
Planning and project management tools are improved to fill up the gap
identified in the previous step
The present system is improved by adopting creativity to do things in a
cheaper, better and faster manner
Control:
After improving the system, it is very essential to control the system level
parameters in order to maintain better outputs.
Finally the system is standardized by the way of communicating the
benefits of the new system to the customers, employees and suppliers.

3.4 APPLICATION TO MANUFACTURING, SERVICES SECTOR INCLUDING

IT
3.5 BENCHMARKING:
Benchmarking is defined as the process of identifying, understanding and
adopting outstanding practices and processes from organizations anywhere in
the world to an organization to improve its performance.
- American

Productivity

and Quality centre:

Benchmarking is defined as the continuous process of measuring products,
services and practices against the toughest competitors (or) those companies
recognized as industry leaders
David Kevin
1. Benchmarking is a systematic method by which organizations can
measure themselves against the best industry practices.
2. Benchmarking is a systematic search for the best practices,
innovative ideas, and highly effective operating procedures.
Example:
In quality education, I.I.T Chennai is the benchmark for technical
education.
IIM Ahmadabad is the benchmark for management courses.

21

Concept of Benchmarking:

3.5 Reasons/Objectives of Benchmarking:

1. It helps to set the new goals and adopts the best practices in the
organization.
2. It helps the organization to develop their strengths and reduce their
weakness.
3. It helps the organization to reach the level of the best practices in the
industry
4. It is a powerful tool to achieve business and competitive objective.
5. It encourages regular monitoring of process and continuous
improvement.
6. It helps to identify the current position of the business and determine the
practices for improvement.
Types of Benchmarking:
Classification Based on the Object to be benchmarked
I. Product benchmarking
i. This refers to comparison of different features and attributes of
ii.

competing products and services.

It is done through either engineering analysis or through analyses

iii.

of perception of customers.
It is also called as customer satisfaction benchmarking or

customer value profiling.

iv.
It can help in identifying activities where improvement is possible.
II. Performance Benchmarking
i. This refers to comparison of performance indicators related to a
business as a whole or to the group of critical activities or
ii.

processes.
It measures all the different kinds of system performance variables
such as efficiency, effectiveness, productivity, quality, flexibility

iii.

etc.
It is a very important tool to identify different functional areas

iv.

where scope for improvement is high.

It also provides external feedback to the concerned persons

involved in the process or in any of the constituent activities.

III. Process Benchmarking
i. This refers to comparison of processes

22

ii.

It

identifies

more

effective

and

efficient

process

to

be

implemented.
IV. Strategic Benchmarking
i. This refers to examining competitive position in the market place
ii.
It helps the company to study the business strategy of another successful
business and use the strategy for becoming more competitive.
Classification Based on the Organizations against whom one is
Benchmarking
I. Internal Benchmarking
It refers to comparison of performance between departments, plants,
subsidiaries, etc., within the organization.
II. Industry Benchmarking
It refers to comparison of performance by the organizations producing the
same class of products and services.
III. Competitive Benchmarking
It refers to comparison of performance against direct competitors.
IV. Best-in-class Benchmarking
It refers to comparison of performance with best practices prevalent in an
organization irrespective of products and services.
V. Relationship Benchmarking
It refers to comparison of performance with the benchmarking company which
already has a relationship like customer-supplier relations, joint ventures
arrangement etc.
3.6 BENCHMARKING PROCESS
i. Deciding what to benchmark
ii.
Understanding the current performance
iii.
Planning
iv.
Studying others
v.
Learning from the data
vi.
Using the findings and
vii.
Implementation & taking action
i) Deciding what to benchmark:
1. It is applied to any business or production process.
2. Expressed in terms of mission and vision statements.
3. Determine which functions, tasks, processes to be used.
4. Appoint team.
5. Formulate the project goals; determine the data to be collected and
prepare a list of questions.
6. Identify world-class company.
7. Examine a process & working methods & check the products are same or
not.
ii) Understanding the current performance:
1. The analysis is based on process, product and service.
2. Check the current level (gap between organization and best-in class).
3. The current level is measured:
a. Complete measurement.

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b. Conformation with procedure manuals.

c. Collect feedback and determine customer satisfaction index.
d. Draw flowcharts.
iii) Planning:
1. Internal process is needed to conduct the study.
2. Team to be chosen to decide what type of benchmarking, what type of
data and method.
3. Organizations that are candidates to serve as a benchmark.
4. Timetables to be agreed for benchmarking tasks and desired output from
the study.
5. 4 types:
a. Internal- Easy to obtain data
b. Competitive- Beast practices.
c. Process Improve performance
d. Strategic Winning strategies.
iv) Studying others:
1. Two types of information:
a. How best-in-class processes are practiced.
b. Measurable results of these practices.
2. Use internal sources, data in public domain, original research.
3. Three techniques:
a. Questionnaires- preparation, checklist
b. Site visits opportunity to see processes.
c. Focus groups panels of benchmarking partners to discuss mutual
interest.
v) Learning from the data:
1. It involves answering a series of questions:
a. Is there a gap between the organizations performance
and the performance of the best-in-class organizations?
b. What is the gap? How much is it?
c. Why there is a gap? What does the best-in-class do
differently that is better?
d. If best-in-class practices were adopted, what would be the
resulting improvement?
2. Three outcomes: Negative gap (external better than internal), Parity
(both are equal) and Positive gap (internal better than external).
vi) Using the findings:
1. It is used to avoid negative gap.
2. Findings must be communicated to the people for improvement.
3. It must translate to goals & objectives, & action plans be developed to
implement new processes.
4. Two groups:
i. People who will run process, the process owners.
ii.
People (upper management) who can enable process by providing
changes to planning and provide resources.
vii) Implementation & taking action:
1. Generic steps:
i. Specify tasks.

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ii.
iii.
iv.
v.
vi.
vii.
2. Best

Sequence the tasks.

Determine resource needs.
Establish task schedule.
Assign responsibility.
Describe expected results.
Specify methods for monitoring results.
results are achieved when process owners participate in design &

execution.
3. Repeat the process.
Benefits of Benchmarking:
1. Company would become competitive.
2. Helps in understanding the best industry practices.
3. It prioritizes the areas that need further improvement.
4. It helps the organizations to develop their strengths in order to achieve
their goals and objectives.
Pitfalls/Disadvantages of Benchmarking:
1. It is a process of learning from others and it does not develop any new
andimproved approaches.
2. If all the industries employ the benchmarking approach, it will lead to
stagnation of ideas, strategies, best industry practices etc.

So

benchmarking should not be a substitute for innovation.

3.7 FAILURE MODE AND EFFECT ANALYSIS (FMEA):
1. It is a structural analytical technique that combines the technology and
experience of the people to identify the failures in a product (or) process
and goes in for planning to eliminate the failure.
2. It is a never-ending process improvement tool.
3. It is a group of activities comprising the following :
a. Recognize the potential failure of a product or process.
b. Identify actions that eliminate / reduce the potential failure.
c. Document the process.
4. FMEA is a before-the-event action requiring a team effort to easily and
inexpensively alleviate changes in design and production.
Three Principal Study areas of FMEA:
i. Failure mode analysis
ii. Failure effect analysis
iii. Failure criticality analysis
1.These studies can be applied at any stage of design, development and
production.
2.However, since the objective of FMEA is to prevent failure before
occurring, the study is mostly applied at the design stage
Failure mode analysis:
1.It is analyzing the operation of the product (or) process to see what are
the most likely modes (causes) of failure.
2.For example, Electrical short circuit, break failure etc.,
Failure effect analysis:
1.It is analyzing the effect of failure of product or process of the system

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2.For Example, Effect of failure of a carburetor in a car

Failure criticality analysis:
1.It is analyzing the potential failures of the product (or) process to
determine, how critical the failure would be? How these critical failures
can be minimized (or) eliminated?
3.8 Types of FMEA:
1. The types of FMEA can be broadly classified into two types. They are
Design FMEA and ProcessFMEA.
2. The other FMEA types are nothing but small variations of process FMEA
and Design FMEA.
Design FMEA:
a) It aids in the design process by identifying known and foreseeable failure
modes and
then ranking failures according to the relative impact on the product.
Process FMEA:
a) Process FMEA is used to identify potential product failure modes by
ranking failures and helping to establish priorities according to the
relative impact on the internal or external customers.
The other types are
1.System FMEA
2.Process FMEA
3.Equipment FMEA
4.Service FMEA
5.Environmental FMEA
6.Concept FMEA
a) Equipment, Service and Environmental FMEA are slightly modified
versions of Process FMEA.
b) Similarly, System FMEA is a combination of design and process FMEA.
FMEA Team:
1. The team is responsible for conducting meeting, maintaining FMEA form,
records, completion of form.
2. Every activity should be recorded in the form.
FMEA Documentation:
1. The purpose of FMEA document is to allow all involved engineers have to
access others thoughts.
2. The team members should design and manufacture using this collective
group of thoughts, thus promoting a team approach.
3. Document should be effective.
4. It must be continually updated as changes occur throughout the design
and manufacturing process.
Inputs for Preparation of FMEA
1. People Inputs :
a. The FMEA methodology is a team effort.

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b. The FMEA team should have assembly engineer, manufacturing

engineer, materials engineer, quality engineer, service engineer,
suppliers and the customer.
2. Data Inputs:
a. The data inputs needed to prepare FMEA are product and process
specifications, reliability data, customer priority data, Process variability
data, Process descriptions and inspection data.
Reliability
Reliability is defined as the probability that a product or a system will perform
its intended functions for a specified period of time, under the stated operating
conditions.
Failure rate:
It is the measure of tendency of a product failure.
Failure rate can be expressed as Rt=
=
Where
Rt = the reliability or probability of survival
t = the time specified for operation without failure
= the failure rate
= the mean time to failure
3.8 Stages of FMEA (FMEA Methodology)
The FMEA methodology has four stages. They are
Stage 1 :Specifying Possibilities:
a. Functions
b. Possible failure modes
c. Root causes
d. Effects
e. Detection / Prevention
Stage 2: Quantifying risk:
a. Probabilityof cause
b. Severity of effect
c. Effectiveness of control to prevent cause
d. Risk Priority Number (RPN)
Stage 3: Correcting high risk causes:
a. Prioritizing work
b. Detailing action
c. Assigning action responsibility
d. Check points on completion
Stage 4: Revaluation of risk:
a. Recalculation of Risk priority Number
FMEA Form: [FMEA CHART OR FMEA DOCUMENT]
The basic steps for implementation of a FMEA are outlined below:
1. Describe the product / process.
2. Create a block diagram of process Logical relationships of components
and establishes a structure.

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3. Complete a header of worksheet Item, Design Responsibility, Prepared

by, Key date, Modify these headings as needed.
4. List product functions.
5. Identify failure modes Component, subsystem, system,.. Potentially fail
to meet design purpose. Ex. Corrosion, cracking
6. Describe the potential failure effects:
For each mode identified the engineer should determine what the

ultimate effect will be.

Failure Effect is the result of a failure mode on the function of

product as perceived by a customer. Ex. Injury to the user, noise.

7. Establish a numerical ranking for the severity(S):
S is an assessment of seriousness of failure effect.
A common industry standard scale uses 1(no effect) & 10(very
serious effect).
8. Classify product characteristics for components, sub-systems(CLASS
column).
9. Identify the potential causes / mechanisms of failure:
Failure Cause use to represent design weakness. Ex. Improper
alignment.
10. Enter the probability factor:
Occurrence(O) specific causes / mechanisms will occur.
1 not likely, 10 inevitable.
11. Identify current controls- to prevent causes of the failure mode from
occurring.
12. Determine the detection(D):
It is an assessment that the current controls will detect cause of
failure mode.
1 detection, 10 absolute uncertainty.
13. Review RPN- Product of severity, occurrence
& detection. RPN=S*O*D
14. Determine recommended actions- Address potential failures
that have high RPN (risk priority number).
15. Assign responsibility & a target completion date for actions.
16. Indicate actions taken Re-asses the S,O,D and review the revised
RPNs.
17. Update the FMEA as the design changes, the assessment changes.
Three categories of Failures:
Debug
Indicates high failure rate at the initial stages because of inappropriate use in
the design of manufacturing.
Chance
Failure of the product due to accidents, poor maintenance etc.,
Wear out

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Failure after the product / process has performed as expected for the amount of
time given by the manufacturer as the product / process life.
Benefits of FMEA:
1.It combines the technology and experience of the people in identifying
various failure modes of a product / process
2.It identifies the causes of failures and minimize them
3.It identifies the potential failure modes right at their design stage, it
minimizes the design changes and their associated costs
4.Reduce development time and cost of manufacturing.
5.It improves product / process reliability and quality
6.It provides training for new employees
7.It improves teamwork
8.Documenting the process in a systematic manner

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