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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

Total Quality Management

Prepared by: Bhakti Joshi

Date: January 02, 2012


Case study su kam

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


Case study su kam contd

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


Case study su kam contd1

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


Case study su kam contd2

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


Tqm focus on root causes

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


Focus on root causes

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


Taguchi methods example

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


Characteristics of the company

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


Formulae

Formulae

  • L(y) = k(y-m)2

    L(y) = Loss

    k = constant = cost to correct

    tolerance2

    y = reported value

    m = mean value (average)


Calculation

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


Concept of quality loss

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.


Quality control

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


Criticism

Criticism

  • Discuss in Class


Email bhaktij@gmail com website www headscratchingnotes net

Email: [email protected]: www.headscratchingnotes.net


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