USN:
PES INSTITUTE OF TECHNOLOGY – BANGALORE SOUTH CAMPUS
Hosur Road (1Km before Electronic City), Bangalore -560100
INTERNAL TEST # 1
Total Quality Management – 12MBA42
Course: MBA Semester IV
Faculty: H Krishnan
Date: 11 /02/2014
Note:
Answer all the Questions.
1 (a)
Time Allowed: 90 Minutes
Max. Marks: 50 (Fifty Marks)
Time: 11.30 AM – 01.00 PM
What do you understand by Quality Circles?
(3 marks)
within the framework of a companywide quality system in which small teams of (usually 6 to
12) employees voluntarily form to define and solve a quality or performance related problem. In Japan
(where this practice originated) quality circles are an integral part of enterprise management and
are called qualitycontrol circles.
(b)
Explain the differences between TQM and Traditional Management?
Traditional Approach
 Market-share focus
 Individuals
 Focus on ‘who” and “why”
 Short-term focus
 Status quo focus
 Product focus
 Innovation
 Fire fighting
Continuous Improvement
 Cross-functional teams
 Focus on “what” and “how”
 Long-term focus
 Continuous improvement
 Process improvement focus
 Incremental improvements
 Problem solving
(7 marks)
(c)
Explain the steps in Benchmarking process with the help of an example
Decide what to benchmark
Understand current performance
Plan
Study others
Learn from the data
Use the findings
(10 marks)
What is Taguchi Loss Function?
To measure quality, Taguchi defines a Quality Loss Function. The quality loss function is a continuous
function that is defined in terms of the deviation of a deign parameter from an ideal or target value, Taguchi’s
view on the nature of the quality loss function represents a fundamental paradigm shift (particularly in the
U.S.) in the way in which manufacturers consider whether or not a product is good. The traditional approach
employed by U.S. manufacturers (as evidenced by Sony-USA) has been to use a “step function” that
ensures that performance fell within the upper and lower specification limits.
Explain seven deadly sins as per Deming?
 Lack of constancy of purpose
 Emphasis on short-term profits
 Evaluation by performance, merit rating, or annual review of performance
(3 marks)
2 (a)
(b)
(7 marks)




Mobility of management
Running a company on visible figures alone
Excessive medical costs
Excessive costs of warranty
(c)
Explain ‘Gemba” principles of Kaizen and seven wastes.
Gemba Principles
• When an abnormality takes place, go to the gemba first to get first-hand information.
• Check with the gembutsu (the “real things” inside the gemba: employees, materials, equipment,
records, actual rejects, working conditions, etc.).
Take temporary countermeasures on the spot to relieve the situation
• Trace the root causes of the abnormality and take permanent countermeasures that will prevent
recurrence.
Standardize all improvements made
Seven Deadly wastes
• Defects (poor quality)
• Transportation
• Waiting
• Overproduction
• Inventory
• Motion
• Extra processing
(10 marks)
3
Case Study - (Compulsory)
The Chennai-based Sundaram Brake linings limited (SBL), a deming company experimented with Daily
Work Management (DWM) for a year before embarking on an organization –wide TQM journey. The Deming
application prize is a coveted recognition in India. The award certainly put the company on a higher pedestal
straightaway. It is one of the highest TQM benchmarks .Thus ,the company has the advantage of a fair
evaluation by prospective customers about its product quality.
The company started on the Daily Work Management by identifying its passenger car cell as the model
cell in which to implement DWM.SBL effort began with the two pillars of DWM viz, exactness and
visualization. The company set about improving exactness in areas like machines and layouts ,tools, jigs and
fixtures ,material flow by implementing low-cost automation devices and instituting methods of checking and
measuring. Some of the visualization measures implemented included.
 .Display of standard work procedure for the operator for setting and running the machine, method
and frequency of checking and measuring, cleaning the machine etc in pictorial form.
 Display of vital information to the operator like trends in production quantity, customer issues and
returns.
 Checklist for tool setup, condition monitoring of machines and corrective action to be taken for
abnormalities etc.
 Skill matrix of the operators working in the line.
The gains that have emerged out of the pilot TQM at SBL’s passenger car cell includes a reduction in
changeover time, a reduction in rejection rate to 1,500 parts per million from 10,000 parts per million, downtime reduction from 4,000 minutes to 1,000 minutes , and a reduced scrap rate etc. The productivity levels
for the cell grew to 30 percent as against the 20 percent rate of the rest of the company.
So much so that that SBL has extended the learning of its experiment with DWM to include all its five cells
early this year.
With continuous growth in passenger vehicles and utility vehicles ( multiu and sports) the need for disc brake
pads is expected to increase substantially.SBL intends to emerge a major supplier in this segment in this
segment of the expanding global market.
K.Mahesh, Chairman and Managing Director, SBL says, ”We have initiated a process like lean
manufacturing in addition to total quality management(TQM) to achieve smooth flow to our suppliers to
customers”.
He adds,” Sales increased from Rs.81.4 crore in 2005-06 to Rs.120.8 crore in 2009-10,a growth of 42
percent. Profit before tax improved from seven percent in 2005-06 to 11 percent in 2009-10.”
(10 marks)
(i).How has TQM implementation helped SBL in diversification programme?
(ii)What departments do you think benefited in SBL by this TQM exercise?
(iii)Comment on wastage and rejection reduction due to introduction of Quality in SBL passenger cell
production.