Keizen Defined
Keizen (or Kaizen) is Japanese for "change for the better" or "improvement" and is an approach to productivity improvement originating within industry programs by Japanese manufacturers after World War II. The development of Kaizen went hand-in-hand with that of quality control circles, but it was not limited to quality assurance.
The goals of kaizen include the elimination of waste (defined as "activities that add cost but do not add value"). A closer definition of the Japanese usage of Kaizen is "to take it apart and put back together in a better way." What is taken apart is usually a process, system, product, or service.
Kaizen is a daily activity whose purpose goes beyond improvement. It is also a process that when done correctly humanizes the workplace, eliminates hard work (both mental and physical), teaches people how to do rapid experiments using the scientific method, and how to learn to see and eliminate waste in business processes.
Importantly, kaizen must operate with three principles in place: process and results (not results-only); systemic thinking (i.e. big picture, not solely the narrow view); and non-judgmental, non-blaming (because blaming is wasteful).
Everyone participates in kaizen; people of all levels in an organization, from the CEO on down.
The only way to truly understand the intent, meaning, and power of kaizen is through direct participation, many, many times.
Thursday, January 8, 2009
Just in time
JUST-IN-TIME (JIT) PRODUCTION
Just-in-time (JIT) is defined in the APICS dictionary as “a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity”. It also has been described as an approach with the objective of producing the right part in the right place at the right time (in other words, “just in time”). Waste results from any activity that adds cost without adding value, such as the unnecessary moving of materials, the accumulation of excess inventory, or the use of faulty production methods that create products requiring subsequent rework. JIT (also known as lean production or stockless production) should improve profits and return on investment by reducing inventory levels (increasing the inventory turnover rate), reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs (such as those associated with machine setup and equipment breakdown). In a JIT system, underutilized (excess) capacity is used instead of buffer inventories to hedge against problems that may arise.
JIT applies primarily to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes (even when the facility uses a jobbing or batch process layout) by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that found in an assembly line. To accomplish this, an attempt is made to reach the goals of driving all inventory buffers toward zero and achieving the ideal lot size of one unit.
The basic elements of JIT were developed by Toyota in the 1950's, and became known as the Toyota Production System (TPS). JIT was well-established in many Japanese factories by the early 1970's. JIT began to be adopted in the U.S. in the 1980's (General Electric was an early adopter), and the JIT/lean concepts are now widely accepted and used.
Some Key Elements of JIT
1. Stabilize and level the MPS with uniform plant loading (heijunka in Japanese): create a uniform load on all work centers through constant daily production (establish freeze windows to prevent changes in the production plan for some period of time) and mixed model assembly (produce roughly the same mix of products each day, using a repeating sequence if several products are produced on the same line). Meet demand fluctuations through end item inventory rather than through fluctuations in production level. Use of a stable production schedule also permits the use of backflushing to manage inventory: an end item’s bill of materials is periodically exploded to calculate the usage quantities of the various components that were used to make the item, eliminating the need to collect detailed usage information on the shop floor.
2. Reduce or eliminate setup times: aim for single digit setup times (less than 10 minutes) or "one touch" setup this can be done through better planning, process redesign, and product redesign. A good example of the potential for improved setup times can be found in auto racing, where a NASCAR pit crew can change all four tires and put gas in the tank in under 20 seconds. (How long would it take you to change just one tire on your car?) The pit crew’s efficiency is the result of a team effort using specialized equipment and a coordinated, well-rehearsed process.
3. Reduce lot sizes (manufacturing and purchase): reducing setup times allows economical production of smaller lots; close cooperation with suppliers is necessary to achieve reductions in order lot sizes for purchased items, since this will require more frequent deliveries.
4. Reduce lead times (production and delivery): production lead times can be reduced by moving work stations closer together, applying group technology and cellular manufacturing concepts, reducing queue length (reducing the number of jobs waiting to be processed at a given machine), and improving the coordination and cooperation between successive processes; delivery lead times can be reduced through close cooperation with suppliers, possibly by inducing suppliers to locate closer to the factory.
5. Preventive maintenance: use machine and worker idle time to maintain equipment and prevent breakdowns.
6. Flexible work force: workers should be trained to operate several machines, to perform maintenance tasks, and to perform quality inspections. In general, JIT requires teams of competent, empowered employees who have more responsibility for their own work. The Toyota Production System concept of “respect for people” contributes to a good relationship between workers and management.
7. Require supplier quality assurance and implement a zero defects quality program: errors leading to defective items must be eliminated, since there are no buffers of excess parts. A quality at the source (jidoka) program must be implemented to give workers the personal responsibility for the quality of the work they do, and the authority to stop production when something goes wrong. Techniques such as "JIT lights" (to indicate line slowdowns or stoppages) and "tally boards" (to record and analyze causes of production stoppages and slowdowns to facilitate correcting them later) may be used.
8. Small lot (single unit) conveyance: use a control system such as a kanban (card) system (or other signaling system) to convey parts between work stations in small quantities (ideally, one unit at a time). In its largest sense, JIT is not the same thing as a kanban system, and a kanban system is not required to implement JIT (some companies have instituted a JIT program along with a MRP system), although JIT is required to implement a kanban system and the two concepts are frequently equated with one another.
Kanban Production Control System
A kanban or “pull” production control system uses simple, visual signals to control the movement of materials between work centers as well as the production of new materials to replenish those sent downstream to the next work center. Originally, the name kanban (translated as “signboard” or “visible record”) referred to a Japanese shop sign that communicated the type of product sold at the shop through the visual image on the sign (for example, using circles of various colors to indicate a shop that sells paint). As implemented in the Toyota Production System, a kanban is a card that is attached to a storage and transport container. It identifies the part number and container capacity, along with other information, and is used to provide an easily understood, visual signal that a specific activity is required.
In Toyota’s dual-card kanban system, there are two main types of kanban:
1. Production Kanban: signals the need to produce more parts
2. Withdrawal Kanban (also called a "move" or a "conveyance” kanban): signals the need to withdraw parts from one work center and deliver them to the next work center.
In some pull systems, other signaling approaches are used in place of kanban cards. For example, an empty container alone (with appropriate identification on the container) could serve as a signal for replenishment. Similarly, a labeled, pallet-sized square painted on the shop floor, if uncovered and visible, could indicate the need to go get another pallet of materials from its point of production and move it on top of the empty square at its point of use.
A kanban system is referred to as a pull system, because the kanban is used to pull parts to the next production stage only when they are needed. In contrast, an MRP system (or any schedule based system) is a push system, in which a detailed production schedule for each part is used to push parts to the next production stage when scheduled. Thus, in a pull system, material movement occurs only when the work station needing more material asks for it to be sent, while in a push system the station producing the material initiates its movement to the receiving station, assuming that it is needed because it was scheduled for production. The weakness of a push system (MRP) is that customer demand must be forecast and production lead times must be estimated. Bad guesses (forecasts or estimates) result in excess inventory and the longer the lead time, the more room for error. The weakness of a pull system (kanban) is that following the JIT production philosophy is essential, especially concerning the elements of short setup times and small lot sizes, because each station in the process must be able to respond quickly to requests for more materials.
Dual-card Kanban Rules:
1. No parts are made unless there is a production kanban to authorize production. If no production kanban are in the “in box” at a work center, the process remains idle, and workers perform other assigned activities. This rule enforces the “pull” nature of the process control.
2. There is exactly one kanban per container.
3. Containers for each specific part are standardized, and they are always filled with the same (ideally, small) quantity. (Think of an egg carton, always filled with exactly one dozen eggs.)
Decisions regarding the number of kanban (and containers) at each stage of the process are carefully considered, because this number sets an upper bound on the work-in-process inventory at that stage. For example, if 10 containers holding 12 units each are used to move materials between two work centers, the maximum inventory possible is 120 units, occurring only when all 10 containers are full. At this point, all kanban will be attached to full containers, so no additional units will be produced (because there are no unattached production kanban to authorize production). This feature of a dual-card kanban system enables systematic productivity improvement to take place. By deliberately removing one or more kanban (and containers) from the system, a manager will also reduce the maximum level of work-in-process (buffer) inventory. This reduction can be done until a shortage of materials occurs. This shortage is an indication of problems (accidents, machine breakdowns, production delays, defective products) that were previously hidden by excessive inventory. Once the problem is observed and a solution is identified, corrective action is taken so that the system can function at the lower level of buffer inventory. This simple, systematic method of inventory reduction is a key benefit of a dual card kanban system
Just-in-time (JIT) is defined in the APICS dictionary as “a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity”. It also has been described as an approach with the objective of producing the right part in the right place at the right time (in other words, “just in time”). Waste results from any activity that adds cost without adding value, such as the unnecessary moving of materials, the accumulation of excess inventory, or the use of faulty production methods that create products requiring subsequent rework. JIT (also known as lean production or stockless production) should improve profits and return on investment by reducing inventory levels (increasing the inventory turnover rate), reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs (such as those associated with machine setup and equipment breakdown). In a JIT system, underutilized (excess) capacity is used instead of buffer inventories to hedge against problems that may arise.
JIT applies primarily to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes (even when the facility uses a jobbing or batch process layout) by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that found in an assembly line. To accomplish this, an attempt is made to reach the goals of driving all inventory buffers toward zero and achieving the ideal lot size of one unit.
The basic elements of JIT were developed by Toyota in the 1950's, and became known as the Toyota Production System (TPS). JIT was well-established in many Japanese factories by the early 1970's. JIT began to be adopted in the U.S. in the 1980's (General Electric was an early adopter), and the JIT/lean concepts are now widely accepted and used.
Some Key Elements of JIT
1. Stabilize and level the MPS with uniform plant loading (heijunka in Japanese): create a uniform load on all work centers through constant daily production (establish freeze windows to prevent changes in the production plan for some period of time) and mixed model assembly (produce roughly the same mix of products each day, using a repeating sequence if several products are produced on the same line). Meet demand fluctuations through end item inventory rather than through fluctuations in production level. Use of a stable production schedule also permits the use of backflushing to manage inventory: an end item’s bill of materials is periodically exploded to calculate the usage quantities of the various components that were used to make the item, eliminating the need to collect detailed usage information on the shop floor.
2. Reduce or eliminate setup times: aim for single digit setup times (less than 10 minutes) or "one touch" setup this can be done through better planning, process redesign, and product redesign. A good example of the potential for improved setup times can be found in auto racing, where a NASCAR pit crew can change all four tires and put gas in the tank in under 20 seconds. (How long would it take you to change just one tire on your car?) The pit crew’s efficiency is the result of a team effort using specialized equipment and a coordinated, well-rehearsed process.
3. Reduce lot sizes (manufacturing and purchase): reducing setup times allows economical production of smaller lots; close cooperation with suppliers is necessary to achieve reductions in order lot sizes for purchased items, since this will require more frequent deliveries.
4. Reduce lead times (production and delivery): production lead times can be reduced by moving work stations closer together, applying group technology and cellular manufacturing concepts, reducing queue length (reducing the number of jobs waiting to be processed at a given machine), and improving the coordination and cooperation between successive processes; delivery lead times can be reduced through close cooperation with suppliers, possibly by inducing suppliers to locate closer to the factory.
5. Preventive maintenance: use machine and worker idle time to maintain equipment and prevent breakdowns.
6. Flexible work force: workers should be trained to operate several machines, to perform maintenance tasks, and to perform quality inspections. In general, JIT requires teams of competent, empowered employees who have more responsibility for their own work. The Toyota Production System concept of “respect for people” contributes to a good relationship between workers and management.
7. Require supplier quality assurance and implement a zero defects quality program: errors leading to defective items must be eliminated, since there are no buffers of excess parts. A quality at the source (jidoka) program must be implemented to give workers the personal responsibility for the quality of the work they do, and the authority to stop production when something goes wrong. Techniques such as "JIT lights" (to indicate line slowdowns or stoppages) and "tally boards" (to record and analyze causes of production stoppages and slowdowns to facilitate correcting them later) may be used.
8. Small lot (single unit) conveyance: use a control system such as a kanban (card) system (or other signaling system) to convey parts between work stations in small quantities (ideally, one unit at a time). In its largest sense, JIT is not the same thing as a kanban system, and a kanban system is not required to implement JIT (some companies have instituted a JIT program along with a MRP system), although JIT is required to implement a kanban system and the two concepts are frequently equated with one another.
Kanban Production Control System
A kanban or “pull” production control system uses simple, visual signals to control the movement of materials between work centers as well as the production of new materials to replenish those sent downstream to the next work center. Originally, the name kanban (translated as “signboard” or “visible record”) referred to a Japanese shop sign that communicated the type of product sold at the shop through the visual image on the sign (for example, using circles of various colors to indicate a shop that sells paint). As implemented in the Toyota Production System, a kanban is a card that is attached to a storage and transport container. It identifies the part number and container capacity, along with other information, and is used to provide an easily understood, visual signal that a specific activity is required.
In Toyota’s dual-card kanban system, there are two main types of kanban:
1. Production Kanban: signals the need to produce more parts
2. Withdrawal Kanban (also called a "move" or a "conveyance” kanban): signals the need to withdraw parts from one work center and deliver them to the next work center.
In some pull systems, other signaling approaches are used in place of kanban cards. For example, an empty container alone (with appropriate identification on the container) could serve as a signal for replenishment. Similarly, a labeled, pallet-sized square painted on the shop floor, if uncovered and visible, could indicate the need to go get another pallet of materials from its point of production and move it on top of the empty square at its point of use.
A kanban system is referred to as a pull system, because the kanban is used to pull parts to the next production stage only when they are needed. In contrast, an MRP system (or any schedule based system) is a push system, in which a detailed production schedule for each part is used to push parts to the next production stage when scheduled. Thus, in a pull system, material movement occurs only when the work station needing more material asks for it to be sent, while in a push system the station producing the material initiates its movement to the receiving station, assuming that it is needed because it was scheduled for production. The weakness of a push system (MRP) is that customer demand must be forecast and production lead times must be estimated. Bad guesses (forecasts or estimates) result in excess inventory and the longer the lead time, the more room for error. The weakness of a pull system (kanban) is that following the JIT production philosophy is essential, especially concerning the elements of short setup times and small lot sizes, because each station in the process must be able to respond quickly to requests for more materials.
Dual-card Kanban Rules:
1. No parts are made unless there is a production kanban to authorize production. If no production kanban are in the “in box” at a work center, the process remains idle, and workers perform other assigned activities. This rule enforces the “pull” nature of the process control.
2. There is exactly one kanban per container.
3. Containers for each specific part are standardized, and they are always filled with the same (ideally, small) quantity. (Think of an egg carton, always filled with exactly one dozen eggs.)
Decisions regarding the number of kanban (and containers) at each stage of the process are carefully considered, because this number sets an upper bound on the work-in-process inventory at that stage. For example, if 10 containers holding 12 units each are used to move materials between two work centers, the maximum inventory possible is 120 units, occurring only when all 10 containers are full. At this point, all kanban will be attached to full containers, so no additional units will be produced (because there are no unattached production kanban to authorize production). This feature of a dual-card kanban system enables systematic productivity improvement to take place. By deliberately removing one or more kanban (and containers) from the system, a manager will also reduce the maximum level of work-in-process (buffer) inventory. This reduction can be done until a shortage of materials occurs. This shortage is an indication of problems (accidents, machine breakdowns, production delays, defective products) that were previously hidden by excessive inventory. Once the problem is observed and a solution is identified, corrective action is taken so that the system can function at the lower level of buffer inventory. This simple, systematic method of inventory reduction is a key benefit of a dual card kanban system
House keeping
5S Training - Lean Manufacturing Housekeeping
5s Training
1. 5s Seiri (Sort)
2. 5s Seiton (Set)
3. 5s Seiso (Shine)
4. 5s Seiketsu
(Standardisation)
5. 5s Shitsuke (Sustain)
Implementing 5S
Download PDF (56KB)
Lean
Manufacturing
The 5s Housekeeping Approach Within Lean Manufacturing
What Is 5S?
5S is a set of techniques providing a standard approach to housekeeping within Lean Manufacturing.
It is often promoted as being far more than simply housekeeping and some of the elements described below certainly have broader implications.
It originated, as did most of the elements of JIT, within Toyota.
A cornerstone of 5S is that untidy, cluttered work areas are not productive.
As well as the physical implications of junk getting in everybody's way and dirt compromising quality, we are all are happier in a clean and tidy environment and hence more inclined to work hard and with due care and attention.
Naturally enough, the elements of 5S are all Japanese words beginning with the letter S. Since their adoption within Western implementations of JIT, or Lean Manufacturing, various anglicised versions of the terms have been adopted by different writers and educators. These are listed below against the individual elements and it can be seen that none are entirely satisfactory.
Lean Manufacturing Housekeeping 5S "pillars"
The individual items within 5S are known as the "pillars" and are:
1. 5s Seiri (Sort)
Seiri is the identification of the most successful physical Organisation of the workplace.
It has been variously anglicised as Sort, Systematisation or Simplify by those wishing to retain the S as the initial letter of each element.
It is the series of steps by which we identify things which are being held in the workplace when they shouldn't, or are being held in the wrong place.
Put simply, we may identify a large area devoted to tools or gauges, some of which are needed regularly and some used infrequently. This brings all sorts of problems, including:
o Operators unable to find the item they need, being unable to see wood for trees. The time spent searching is a waste (or in Japanese speak a muda) and if we only held the items needed regularly in a prominent position we would save time.
o Quality issues when gauges are not calibrated on time because too many are held.
o Safety issues when people fall over things.
o Lockers and racking cluttering the workplace making it hard to move around or to see each other and communicate.
Some of the standard texts also talk about the elimination of excess materials and WIP.
This is a complete restatement of all the JIT goals of releasing capital, reduced movement, shorter cycle times and so on. The question may be asked: should we then see inventory and WIP reduction as part of the implementation of the lean approach or as an element of 5S? The answer, as ever, is that keeping inventory and WIP to a minimum is simple good practice. Whether we view it as JIT, or lean, or 5S or assign any other term is quite frankly irrelevant.
The major element of Seiri is simply a critical look at the area. Involving cross-functional teams, or looking at each other's areas, is an obvious first step. People tend to be blind to failings in their own work place and a fresh pair of eyes can be useful.
Another element of the standard approach is 'red tagging' where items are given a tag which says what the item is, which location it is in and when it was identified in this location. We then leave the area for a while and anybody using the item notes this. We go back some time later and can readily identify things that haven't moved, or been used.
Items which have not been used can then potentially be disposed of. As a first pass we should perhaps create a quarantine area before throwing items away, selling them or reworking them into something else. Other items may be deemed necessary but used infrequently and so an alternative location can be found. If the operator needs a particular tool only once or twice a month then a 20-yard walk is not a problem - especially if the space thus saved on the workbench helps to make the workplace more productive, or helps address quality issues.
2. 5s Seiton (Set)
Seiton is the series of steps by which the optimum organisation identified in the first pillar are put into place.
The standard translation is Orderliness but again some wish to keep the initial S and use Sort (yes, that is also one of the translations of Seiri), Set in order, Straighten and Standardisation.
The sorting out process is essentially a continuation of that described in the Seiri phase. Removing items to be discarded or held in an alternative location will create space. This space will be visible and facilitate the alternative layout of the area.
In some cases, of course, we are talking about what a fitter will have on his bench, or in racks alongside the bench. In other cases we may be considering where we should locate a piece of plant - for example we may relocate a coin press to enable items to be completed in one work area rather than requiring a significant movement down the shop.
This is something which we also undertake when adopting cellular manufacturing. We then look at how we can restructure the work content so that certain operations can be carried out within the cycle of others - for example we may carry out a trimming operation on a steel component while the press which produced it is busy creating the next one. Again, is this a 5S initiative, or part of a kaizen programme, or something else? Again, who cares, as long as we get on and achieve an improvement in business performance?
Standardisation includes all the elements of setting out a consistent way of doing things. This includes standard manufacturing methodologies, standard equipment and tooling, component rationalisation, drawing standardisation, consistency in the documentation which accompanies work, design for manufacture (or concurrent engineering) and standardisation in the clerical processes which deliver work to the shop floor and track its progress.
All of this could be said to be part of a basic Total Quality approach. The standard ways of doing things should include poka-yoke or error-proofing. Again it might be asked whether this is part of 5S or one aspect of a broader programme.
3. 5s Seiso (Shine)
Anglicised as Cleanliness but again the initial S can be retained in Shine, or Sweeping.
The principle here is that we are all happier and hence more productive in clean, bright environments.
There is a more practical element in that if everything is clean it is immediately ready for use.
We would not want a precision product to be adjusted by a spanner that is covered in grease which may get into some pneumatic or hydraulic fittings. We would not wish to compromise a PCB assembly by metallic dust picked up from an unclean work surface. Other issues are health and safety (perhaps slipping in a puddle of oil, shavings blowing into people's eyes) and machine tools damaged by coolant contaminated by grease and dust.
The task is to establish the maintenance of a clean environment as an ongoing, continuous programme.
Some time should be set aside for cleaning each day, or each shift. (We may have cleaners who come in a sweep office floors, and even clean the floor in a production area, but they do not clean the production equipment. Even if they did, this would miss one of the opportunities available - an operator cleaning and lubricating his machine tool will spot worn or damaged components.)
Cleaning then begins to impinge upon what we already know as preventive maintenance.
Cleaning critical components of a piece of equipment is already one element of the activities carried out under the PM banner.
The implementation of Seiso revolves around two main elements.
The first is the assignment map which identifies who is responsible for which areas.
The second is the schedule which says who does what at which times and on which days.
Some of these happen before a shift begins, some during the shift and some at the end. Again, this is very reminiscent of what we do when adopting PM.
The standard texts such as that of Hiroyuki Hirano then go on to talk about establishing the shine method for each item / area. This includes such elements as agreeing an inspection step at the beginning of each shift, establishing exactly how each activity within the programme is to be carried out. A key aspect is very much akin to set-up reduction (or SMED) in that we should be aiming as much as possible to internalise the activities - in other words, to minimise the downtime needed to keep the facilities clean.
Finally the standard texts talk about preparation - making sure the equipment needed to clean is always available, always ready for use. The excellent parallel to this is, again, with set-up reduction, which itself is often compared to Grand Prix teams preparing to change tyres. As with many such topics, we are talking about here is to a large extent simply common sense. We do not wish to allocate 5 minutes for a bed to be swept on a piece of grinding equipment if the operator is going to spend 4 minutes finding his brush.
4. 5s Seiketsu (Standardisation)
This is well described as Standardised cleanup, but other names adopted include Standardisation (not to be confused with the second pillar), Systematisation and Sanitation.
Seiketsu can be the thought of as the means by which we maintain the first three pillars.
There is, obviously, a danger in any improvement activity that once the focus is removed and another 'hot button' grabs management attention, things go back to the way they were before. Seiketsu is the set of techniques adopted to prevent this happening. Basically this involves setting a schedule by which all the elements are revisited on a regular basis - usually referred to as the '5S Job Cycle.'
The first step in the cycle is a periodic review of the area, perhaps involving red tagging but certainly involving people from other areas of the business.
This will identify where standards have slipped - for example where pieces of tooling or fixtures which are used infrequently are no longer being put in the remote location agreed at the outset and consequently a bench is now cluttered with the regular items buried under a pile of irregular. (In other words, the Seiri phase is undertaken periodically - usually monthly, perhaps quarterly.)
The second step is to undertake Seiton activities as required - that is, as prompted by the first step.
Finally within Seiketsu people from other areas visit and cast a critical eye over the state of the area.
Again, an external assessor may notice degradation that is not clear to the people who work in the area. Hirano talks of a checklist within Seiketsu whereby the external visitors mark the area on a number of key criteria defined at the outset of the programme. For example, are the storage areas still clearly defined? Does the tool rack still have clear outlines or profiles for each tool to be stored in it? Does the area meet the general standards of cleanliness?
5. 5s Shitsuke (Sustain)
The final stage is that of Discipline. For those who wish to retain the use of initial S's in English this is often listed as Sustain or Self-discipline.
There is a fundamental difference between Seiketsu and Shitsuke.
The fourth pillar is the introduction of a formal, rigorous review programme to ensure that the benefits of the approach are maintained.
The fifth pillar is more than this; it is not simply the mechanical means by which we continue to monitor and refine, it is the set of approaches we use to win hearts and minds, to make people want to keep applying good practice in shop organisation and housekeeping. In this sense, discipline is perhaps an unfortunate term as it implies people forced to do something, with consequent penalties if they do not.
The way in which management achieves this establishment of ongoing commitment within the workforce depends, of course, on the culture already in place. As with the adoption of kaizen (continuous improvement) or quality circles we have to press the right buttons to stimulate people. If the business has a history of treating people like cattle, giving no credence to their suggestions and simply trying to improve performance by driving the workers ever harder, then enthusiasm for any sort of initiative aimed at building a better environment is going to be hard to generate.
There are a number of elements to any ongoing improvement activity in any business. Which take pre-eminence in a particular organisation varies with the history and culture of that organisation. Suffice to say that key points are:
o Communication. We need people to be aware of what we are trying to achieve, and why.
o Education. They need to understand the concepts and the individual techniques.
o Rewards and Recognition. People need to feel that their efforts are recognised. Whether the reward is a senior manager walking past and saying "that's very good, well done" or some form of award (financial gain, prize or formal presentation of a certificate) depends on the organisation.
o Time. If we want people to spend five minutes every four hours removing swarf from the floor around their machine we have to make sure that we allow them this time. We cannot give this as an instruction yet at the same time push for more time spent achieving productivity targets.
o Structure. We need to identify what is to be done, by whom, and ensure that schedules are updated and clearly visible.
Implementing 5S Housekeeping and Lean Manufacturing
Would we want to launch 5S as a stand-alone project, as a complete entity?
The elements of 5S are all valuable in their own right but they simply form part of the bigger picture of establishing good practice. They sit alongside the other elements of Lean Manufacturing, or Just in Time, or World Class and some of the elements in, for example, Seiton (standardisation) are in fact straight lifts from textbooks on other forms of improvement activity. There is nothing in any 5S material, for example, to give guidance on improving the clerical processes for generating production paperwork following receipt of a sales order!
The answer, surely, is to understand 5S as we understand all aspects of other types of improvement and problem-solving activity and then to agree a change programme for our own business. This is not to say that we must not launch a project which we call "5S" - some businesses have more success if improvement initiatives are launched with a generic, well-publicised term as project name. Equally, this is not a good solution in other organisations. Again, the history and culture of the company or the specific plant have to be taken into account when this decision is taken.
5s Training
1. 5s Seiri (Sort)
2. 5s Seiton (Set)
3. 5s Seiso (Shine)
4. 5s Seiketsu
(Standardisation)
5. 5s Shitsuke (Sustain)
Implementing 5S
Download PDF (56KB)
Lean
Manufacturing
The 5s Housekeeping Approach Within Lean Manufacturing
What Is 5S?
5S is a set of techniques providing a standard approach to housekeeping within Lean Manufacturing.
It is often promoted as being far more than simply housekeeping and some of the elements described below certainly have broader implications.
It originated, as did most of the elements of JIT, within Toyota.
A cornerstone of 5S is that untidy, cluttered work areas are not productive.
As well as the physical implications of junk getting in everybody's way and dirt compromising quality, we are all are happier in a clean and tidy environment and hence more inclined to work hard and with due care and attention.
Naturally enough, the elements of 5S are all Japanese words beginning with the letter S. Since their adoption within Western implementations of JIT, or Lean Manufacturing, various anglicised versions of the terms have been adopted by different writers and educators. These are listed below against the individual elements and it can be seen that none are entirely satisfactory.
Lean Manufacturing Housekeeping 5S "pillars"
The individual items within 5S are known as the "pillars" and are:
1. 5s Seiri (Sort)
Seiri is the identification of the most successful physical Organisation of the workplace.
It has been variously anglicised as Sort, Systematisation or Simplify by those wishing to retain the S as the initial letter of each element.
It is the series of steps by which we identify things which are being held in the workplace when they shouldn't, or are being held in the wrong place.
Put simply, we may identify a large area devoted to tools or gauges, some of which are needed regularly and some used infrequently. This brings all sorts of problems, including:
o Operators unable to find the item they need, being unable to see wood for trees. The time spent searching is a waste (or in Japanese speak a muda) and if we only held the items needed regularly in a prominent position we would save time.
o Quality issues when gauges are not calibrated on time because too many are held.
o Safety issues when people fall over things.
o Lockers and racking cluttering the workplace making it hard to move around or to see each other and communicate.
Some of the standard texts also talk about the elimination of excess materials and WIP.
This is a complete restatement of all the JIT goals of releasing capital, reduced movement, shorter cycle times and so on. The question may be asked: should we then see inventory and WIP reduction as part of the implementation of the lean approach or as an element of 5S? The answer, as ever, is that keeping inventory and WIP to a minimum is simple good practice. Whether we view it as JIT, or lean, or 5S or assign any other term is quite frankly irrelevant.
The major element of Seiri is simply a critical look at the area. Involving cross-functional teams, or looking at each other's areas, is an obvious first step. People tend to be blind to failings in their own work place and a fresh pair of eyes can be useful.
Another element of the standard approach is 'red tagging' where items are given a tag which says what the item is, which location it is in and when it was identified in this location. We then leave the area for a while and anybody using the item notes this. We go back some time later and can readily identify things that haven't moved, or been used.
Items which have not been used can then potentially be disposed of. As a first pass we should perhaps create a quarantine area before throwing items away, selling them or reworking them into something else. Other items may be deemed necessary but used infrequently and so an alternative location can be found. If the operator needs a particular tool only once or twice a month then a 20-yard walk is not a problem - especially if the space thus saved on the workbench helps to make the workplace more productive, or helps address quality issues.
2. 5s Seiton (Set)
Seiton is the series of steps by which the optimum organisation identified in the first pillar are put into place.
The standard translation is Orderliness but again some wish to keep the initial S and use Sort (yes, that is also one of the translations of Seiri), Set in order, Straighten and Standardisation.
The sorting out process is essentially a continuation of that described in the Seiri phase. Removing items to be discarded or held in an alternative location will create space. This space will be visible and facilitate the alternative layout of the area.
In some cases, of course, we are talking about what a fitter will have on his bench, or in racks alongside the bench. In other cases we may be considering where we should locate a piece of plant - for example we may relocate a coin press to enable items to be completed in one work area rather than requiring a significant movement down the shop.
This is something which we also undertake when adopting cellular manufacturing. We then look at how we can restructure the work content so that certain operations can be carried out within the cycle of others - for example we may carry out a trimming operation on a steel component while the press which produced it is busy creating the next one. Again, is this a 5S initiative, or part of a kaizen programme, or something else? Again, who cares, as long as we get on and achieve an improvement in business performance?
Standardisation includes all the elements of setting out a consistent way of doing things. This includes standard manufacturing methodologies, standard equipment and tooling, component rationalisation, drawing standardisation, consistency in the documentation which accompanies work, design for manufacture (or concurrent engineering) and standardisation in the clerical processes which deliver work to the shop floor and track its progress.
All of this could be said to be part of a basic Total Quality approach. The standard ways of doing things should include poka-yoke or error-proofing. Again it might be asked whether this is part of 5S or one aspect of a broader programme.
3. 5s Seiso (Shine)
Anglicised as Cleanliness but again the initial S can be retained in Shine, or Sweeping.
The principle here is that we are all happier and hence more productive in clean, bright environments.
There is a more practical element in that if everything is clean it is immediately ready for use.
We would not want a precision product to be adjusted by a spanner that is covered in grease which may get into some pneumatic or hydraulic fittings. We would not wish to compromise a PCB assembly by metallic dust picked up from an unclean work surface. Other issues are health and safety (perhaps slipping in a puddle of oil, shavings blowing into people's eyes) and machine tools damaged by coolant contaminated by grease and dust.
The task is to establish the maintenance of a clean environment as an ongoing, continuous programme.
Some time should be set aside for cleaning each day, or each shift. (We may have cleaners who come in a sweep office floors, and even clean the floor in a production area, but they do not clean the production equipment. Even if they did, this would miss one of the opportunities available - an operator cleaning and lubricating his machine tool will spot worn or damaged components.)
Cleaning then begins to impinge upon what we already know as preventive maintenance.
Cleaning critical components of a piece of equipment is already one element of the activities carried out under the PM banner.
The implementation of Seiso revolves around two main elements.
The first is the assignment map which identifies who is responsible for which areas.
The second is the schedule which says who does what at which times and on which days.
Some of these happen before a shift begins, some during the shift and some at the end. Again, this is very reminiscent of what we do when adopting PM.
The standard texts such as that of Hiroyuki Hirano then go on to talk about establishing the shine method for each item / area. This includes such elements as agreeing an inspection step at the beginning of each shift, establishing exactly how each activity within the programme is to be carried out. A key aspect is very much akin to set-up reduction (or SMED) in that we should be aiming as much as possible to internalise the activities - in other words, to minimise the downtime needed to keep the facilities clean.
Finally the standard texts talk about preparation - making sure the equipment needed to clean is always available, always ready for use. The excellent parallel to this is, again, with set-up reduction, which itself is often compared to Grand Prix teams preparing to change tyres. As with many such topics, we are talking about here is to a large extent simply common sense. We do not wish to allocate 5 minutes for a bed to be swept on a piece of grinding equipment if the operator is going to spend 4 minutes finding his brush.
4. 5s Seiketsu (Standardisation)
This is well described as Standardised cleanup, but other names adopted include Standardisation (not to be confused with the second pillar), Systematisation and Sanitation.
Seiketsu can be the thought of as the means by which we maintain the first three pillars.
There is, obviously, a danger in any improvement activity that once the focus is removed and another 'hot button' grabs management attention, things go back to the way they were before. Seiketsu is the set of techniques adopted to prevent this happening. Basically this involves setting a schedule by which all the elements are revisited on a regular basis - usually referred to as the '5S Job Cycle.'
The first step in the cycle is a periodic review of the area, perhaps involving red tagging but certainly involving people from other areas of the business.
This will identify where standards have slipped - for example where pieces of tooling or fixtures which are used infrequently are no longer being put in the remote location agreed at the outset and consequently a bench is now cluttered with the regular items buried under a pile of irregular. (In other words, the Seiri phase is undertaken periodically - usually monthly, perhaps quarterly.)
The second step is to undertake Seiton activities as required - that is, as prompted by the first step.
Finally within Seiketsu people from other areas visit and cast a critical eye over the state of the area.
Again, an external assessor may notice degradation that is not clear to the people who work in the area. Hirano talks of a checklist within Seiketsu whereby the external visitors mark the area on a number of key criteria defined at the outset of the programme. For example, are the storage areas still clearly defined? Does the tool rack still have clear outlines or profiles for each tool to be stored in it? Does the area meet the general standards of cleanliness?
5. 5s Shitsuke (Sustain)
The final stage is that of Discipline. For those who wish to retain the use of initial S's in English this is often listed as Sustain or Self-discipline.
There is a fundamental difference between Seiketsu and Shitsuke.
The fourth pillar is the introduction of a formal, rigorous review programme to ensure that the benefits of the approach are maintained.
The fifth pillar is more than this; it is not simply the mechanical means by which we continue to monitor and refine, it is the set of approaches we use to win hearts and minds, to make people want to keep applying good practice in shop organisation and housekeeping. In this sense, discipline is perhaps an unfortunate term as it implies people forced to do something, with consequent penalties if they do not.
The way in which management achieves this establishment of ongoing commitment within the workforce depends, of course, on the culture already in place. As with the adoption of kaizen (continuous improvement) or quality circles we have to press the right buttons to stimulate people. If the business has a history of treating people like cattle, giving no credence to their suggestions and simply trying to improve performance by driving the workers ever harder, then enthusiasm for any sort of initiative aimed at building a better environment is going to be hard to generate.
There are a number of elements to any ongoing improvement activity in any business. Which take pre-eminence in a particular organisation varies with the history and culture of that organisation. Suffice to say that key points are:
o Communication. We need people to be aware of what we are trying to achieve, and why.
o Education. They need to understand the concepts and the individual techniques.
o Rewards and Recognition. People need to feel that their efforts are recognised. Whether the reward is a senior manager walking past and saying "that's very good, well done" or some form of award (financial gain, prize or formal presentation of a certificate) depends on the organisation.
o Time. If we want people to spend five minutes every four hours removing swarf from the floor around their machine we have to make sure that we allow them this time. We cannot give this as an instruction yet at the same time push for more time spent achieving productivity targets.
o Structure. We need to identify what is to be done, by whom, and ensure that schedules are updated and clearly visible.
Implementing 5S Housekeeping and Lean Manufacturing
Would we want to launch 5S as a stand-alone project, as a complete entity?
The elements of 5S are all valuable in their own right but they simply form part of the bigger picture of establishing good practice. They sit alongside the other elements of Lean Manufacturing, or Just in Time, or World Class and some of the elements in, for example, Seiton (standardisation) are in fact straight lifts from textbooks on other forms of improvement activity. There is nothing in any 5S material, for example, to give guidance on improving the clerical processes for generating production paperwork following receipt of a sales order!
The answer, surely, is to understand 5S as we understand all aspects of other types of improvement and problem-solving activity and then to agree a change programme for our own business. This is not to say that we must not launch a project which we call "5S" - some businesses have more success if improvement initiatives are launched with a generic, well-publicised term as project name. Equally, this is not a good solution in other organisations. Again, the history and culture of the company or the specific plant have to be taken into account when this decision is taken.
Sunday, January 4, 2009
Friday, January 2, 2009
CASE SUGGESTION SCHEME
Abstract:
This is a case study of an important innovation in providing healthcare for the rural poor: the Yeshasvini Health Insurance Scheme for rural farmers and peasants in Karnataka, India. Arguably the world's largest health insurance scheme for the rural poor, the scheme commenced in 2003. Designed in ways that overcome several obstacles to providing health security for rural populations, the scheme covered, in its second year, about 2.2 million widely dispersed peasant farmers for surgical and out patient care for a low annual premium of approximately US$ 2. In this paper, we describe and evaluate the scheme in its first year of operation, and explore its potential to be a model for the developing world generally.
Accepted
1
India’s National Rural Employment Guarantee Scheme (NREGA) -
Localised Implementation in Gulbarga District of Karnataka.
PC Jaffer IAS1
Introduction
Following the Enactment of the National Rural Employment Guarantee Act
(NREGA) 2005, the ambitious National Rural Employment Guarantee Scheme
(NREGS) has been implemented in selected 200 districts of the country. This was
later extended to 130 more districts during the year 2007-08. The main objective
of the scheme is ‘to provide for the enhancement of livelihood security of the
households in rural areas of the country by providing at least one hundred days of
guaranteed wage employment in every financial year to every household whose
adult members volunteer to do unskilled manual work’. Unlike the hitherto
prominent poverty alleviation and rural development schemes, this Act ensures
the right to work as a statutory right guaranteed and protected by law. The
passing of the Act in 2005 signifies a paradigm shift in the strategies of the rural
development.
This present paper examines the implementation issues and the immediate
impact of the scheme on rural population. Gulbarga district of Karnataka state is
taken as a case study. The implementation issues are important because this
scheme represents a deviation from all the previous ones in many ways. The
present study examines the impact of NREGS on poverty alleviation, creation of
durable community assets, agricultural wage level, distress migration and women
empowerment.
This scheme is different from all other such schemes that have been implemented
in the country so far. A few non-negotiable features of this scheme gives a hope
that this could be implemented plugging the loopholes for leakage of government
money. This is a demand based programme where there is no limitation of the
funds for the implementation. Any individual from the rural household can
register under this scheme irrespective of the economic status of the family.
Participatory planning and decentralised implementation are the specialities of the
scheme. It is mandatory to implement at least 50 per cent of the works by the
Grama Panchayat (the units of local self government at the village).
1The author is a member of the Indian Administrative Services and presently posted as Chief
Executive Officer of the Zilla Pacnhayat, Gulbarga in the State of Karnataka, India. This piece is
written primarily based on his experiences while working as District Programme Coordinator of NREGS
and the review of the data available in his office. The analyses follow the extensive filed visits and
interview with various stakeholders. The opinions expressed in this article are of the author need not
reflect that of the organization and the government he represents.
2
There are certain inbuilt safeguards in the scheme to ensure that the money is
spent on labour oriented works and it reaches the targeted beneficiaries. Firstly,
the contractors are banned in the implementation of the programme. Secondly, it
is mandatory to spend at least 60 per cent of the funds for the payment to the
labourers. Thirdly, Priority must be given to labour intensive projects like
watershed development, social forestry, wasteland reclamation etc. Finally,
payment of wages to the workers is to be made through accounts opened in the
name of labourers so as to prevent the exploitation of middlemen and to cultivate
saving habit in people.
Implementation Of the programme
Being a demand driven scheme, the basic idea is that the labourers who are
willing to do manual work are to be registered with the registration officer.
Whenever, they require work, they should approach the authorities and formally
place a requisition for work. The registration officer in the state is Secretary of
the Grama Panchayat (GP). The GP will issue a job-card to each family which will
entitle them to demand work as per their convenience. The job-cards are issued
within 15 days of registration. Any labourer with a job card can ask for work and
it should be provided to them within 15 days failing in which they are eligible for
getting unemployment allowance. The labourers have to be paid as per the
prevailing rate of minimum wages in the state. The minimum wages in the state
is Rs 74 per day. The families registered under the scheme amount to more than
30 million in all over the country. The corresponding figure for the district is
200688 families out of a total of 388394 families in the rural areas of the district.
Participatory and decentralised Planning for the Scheme
As a beginning, the task of identification of the potential of the village with the
developmental requirement and the resources available were carried out. This
was done as collective effort of various stakeholders and the community. A
meeting of all the villages were carried out for this purpose. The villagers
identified the requirements of the village and prioritised these demands. They
were helped by one NGO in these tasks. Their responsibility was to ensure
community participation in the planning process. Along side, various line
departments also identified the works related to their departments. All these
suggestions were combined and the perspective plan for the five years was
formed. The works were prioritised and those that are expected to be carried out
for an year were taken out separately. Detailed estimates were prepared for these
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works. This is known as the shelf of projects. These plans were approved by the
elected body before implementing.
Administrative mechanism
For the purpose of implementation of the scheme, the Gram Panchayats2 are
designated as the primary implementing agencies. The Executive Officer of the
Taluka Panchayat (Intermediary Panchayat) is designated as the Programme
Officer (PO) for NREGS. The Chief Executive Officer of the Zilla Panchayat is
designated as the District Programme Coordinator. There are five implementing
agencies in the district. Department of Watershed Development and Social
Forestry are the implementing agencies in the district other than the three tiers of
the Panchayat Raj system. Technical support for the implementation is provided
by the Panchayat Raj Engineering Division which has one Junior Engineer for a
cluster of three to four Grama Panchayats.
Fund-flow
The fund for NREGS is allocated at the ratio of 90:10 by centre and state
respectively unlike other programmes where the ratio is 75:25. The Central
government releases the money to the districts directly who in turn releases it to
the sub-district level to be used for various works. The payment for the labourers
under all works is made by the Grama Panchayat irrespective of the implementing
agencies.
Payment and Bank accounts
It is mandatory to make payment under NREGS only through accounts. This is
followed very strictly in the district. This is very much helpful in ensuring that the
payment is reaching the real beneficiaries as no middle men come into the
picture. However, such a step does not come without its own share of problems.
The major issue was to find out banking institutions at the door steps of the
workers. Penetration of banking institutions and the banking habits are not
encouraging in the rural areas. Thus, a major share of the accounts was opened
by the Post offices. Once the scheme was six months old, post offices turned out
to be the biggest bottleneck for the implementation of the programme in many
places as they were not able to cope up with the manifold increase in their work.
The increased in workload without any capacity addition resulted in delay in
making the payments to the labourers. Finally, most of the accounts were shifted
2 Grama Pacnhayat is the lowest of the three tiers of the local self government at the
village level. The ZillaPanchayat is the highest level.
4
to the banks who agreed to cope up with the extra workload by working more
every day. The first impressions from the field are that the people have accepted
this system of payment as there is no scope for middle men in the scheme of
things. This is slowly inculcating a habit of savings in the minds of the rural
population which was hitherto unheard of. All the accounts opened were joint
accounts in the names of the women of the household also. This is one step
towards the gender sensitivity and women empowerment.
NREGA and Gender
NREGA is a highly gender sensitive scheme. It is mandatory that at least one
third of the workers should be women. The share of women at the national level
is 40%. The share of person-days worked by the women in Gulbarga district is
49% which is a little more than their share in the population. It is again
necessary to provide various facilities at the worksite like drinking water and baby
sitters. The provision of baby sitters will free the women of all the worries of
tacking care of their little kids. This provision is women friendly in another way
that this will spare the elder siblings from rearing the younger ones. Thus the
scheme promotes the education of girl child also. Women are more attracted
towards the scheme because the wage level for women labourers are less than
that of the male counterparts in the market. While a male labourer gets Rs 100
per day on an average during harvest seasons and Rs 70-80 during the lean
season, a women labourer gets about Rs 50 during harvest season and Rs 30-40
during lean season.
It is undisputed that the scheme has the potential to mobilise women in large
numbers and groups (which was earlier difficult). This presents an opportunity to
the Government to form productive self help groups among them and provide job
training. Thus, the ideal progression from the unskilled labour to the skilled
labour through the convergence of the entire scheme should materialise as an
offshoot of the NREGA. This is true in the case of the men also. Such social
change and upward mobility is the final aim of any poverty alleviation schemes.
Experiences from the field
The programme is being implemented for the last one year and the figures by the
end of March show that all the families and individuals who demanded work have
been provided with the work. NREGA has so far employed 148,735 people from
77,594 households in the district. This has generated 28,77,000 person-days by
5
taking up 3537 works. The expenditure made for the payment of the labourers is
62.01%.
The scheme has a positive impact on the household income level. This is mainly
because of three reasons. Firstly, NREGS provide 100 days of guaranteed job to
each household who are in need of manual unskilled work in rural areas.
Considering with the daily wage of Rs. 69 paid under the scheme, each family is
ensured about additional Rs 6900/ per year. Secondly, women labourers have
taken advantage of the scheme thereby increasing the family income as they are
paid lesser wages elsewhere. Thirdly, NREGS has ensured continued job to rural
household during the lean season.
The impact of the scheme on consumption, health expenditure and saving habit is
visible. A majority of the beneficiaries reported increase in their consumption,
health expenditure and saving. Under the scheme so far more than 0.65 million
accounts have been opened in the district. More than one lakh accounts are
opened in the name of the beneficiaries in the post offices. This had started to
have some impact on inculcating banking and saving habits among the people
who were hitherto untouched by such habits. Some of the beneficiaries reported
that about 50per cent of the income earned under the scheme is either saved at
home or at banks. On the other hand, it has to be noted that most of the
households still withdraw the whole amount from the bank accounts immediately
after the amount is credited.
Although it is too early to surface the impact of the scheme on agricultural wages,
the filed surveys show that on an average wage rates have started increasing in
the district. This has resulted in shortages of labourers for other types of works.
Simple theory of demand and supply states whenever there is shortage of supply
of labourers demand being constant, agricultural wages are bound to increase.
This has been very well evidenced through the interviews with beneficiaries,
farmers, engineers and contractors. The uptrend in wage level will increase cost
of cultivation. The non availability of labourers will negatively affect the
agricultural productions. It may ultimately lead to change in the cropping
patterns. Preference will be given to those commercial crops which require
manual labourers in lesser number.
Another social implication of this trend will be rift and antagonism between
labourers and farmers and the possibility of emerging class conflict among the
6
landlords and labourers. Another objective of the scheme is to analyse the impact
of NREGS on the migration of rural people. People from the district migrate to
other cities like Bombay, Pune, Bangalore and Hyderabad in search of job. The
status of migration is not well documented in the district. Most of the jobs created
are in the local areas and this has a positive impact on preventing distress
migration. Though the survey does not give any conclusive proof, still it is
observed that the implementation of the scheme has some positive impact on
migration. A word of caution has to be made at this point, that these observations
cannot be generalised as it is too early to make conclusions about the scheme
without the completion of the lean season.
Like other projects the NREGS has been successful in creating sustainable assets
in the district. The major thrust areas of the NREGS are water conservation,
social forestry and reclamation of wasteland. These projects not only help in
creation of jobs and assets but also increase the efficiency and productivity of the
land in the long run. For instance, watershed development projects help in
increasing in the water table of the area that ultimately results in increased
availability of water for both drinking and irrigation. Consequently, more areas
can be brought under cultivation and existing areas can be productively used.
Similarly, social forestry programme leads to the afforestation of lands which is
the need of the hour in the dry areas like Gulbarga. Two such case studies have
been prepared along with this paper.
Monitoring and transparency is the major thrust of NREGS. It is necessary that
social audit to be conducted where all the documents regarding the scheme
especially the muster rolls are made available to the public for inspection. They
have the right to question the correctness of the muster rolls. The social audit for
the first year in Gulbarga is scheduled to be held during the next month. The
details of the muster roll are planning to be put in the public domain. Another
significant feature of the scheme is the emphasis on capacity building as this is a
paradigm shift in the rural development and poverty reduction activities. Thus
training and IEC activities form an important part of the project. We have also
attempted convergence with other schemes along with NREGA. The example is
combining of the adult literacy programmes at the worksites. Many of the workers
are illiterate and hence are the target group for the adult literacy activities. The
objective of this initiative is to replace the thumb impressions with signatures in
one month. Another inititative being attempted is to carry out primary health
check up for the workers in the worksite itself.
7
Conclusions
The above discussion in this paper leads to certain conclusions. The study has
found positive impact of the scheme on these variables. The study reaches the
following conclusions. This scheme is successful in creating an impression in the
minds of people that it would help in minimising the pilferages and ensure the
benefits of government programmes reach the real beneficiaries. The scheme has
an impact in raising the standards of living and the agricultural wage level in the
villages. It is leading to the creation of durable community assets. More
importantly, the payment to the labourers is done through the accounts in banks
and post offices. This had laid the foundation for inculcating the savings habit in
the minds of people. If implemented properly with revision of minimum wage
from time to time, the distress migration from rural areas especially during the
off season can be checked. Finally, the scheme has the potential to change the
rural edifice of the district and can act as a model rural development scheme. The
authors put a word of caution that all these are first impressions of a scheme that
will be there for at least five years.
References
1. Ministry of Law and Justice (2005), “The Gazette of India” Extraordinary
part 11-Section 1 Ministry of Law and Justice (Legislative Department),
Government of India, September 7, 2005, New Delhi.
2. Government of Karnataka, (2005) “Karnataka Human Development Report
2005, Investing in Human Development” Planning and Statistics
Department, GoK, Bangalore
3. Rao, KS (2004), ‘Poverty Alleviation-Results of an Impact Assessment
Study” in Bhatt, MS Ed ‘Poverty Alleviation and Food Security in India
Problems and Policies’, Aakar Books, New Delhi.
4. Ananya, GD (2004) “Poverty Alleviation Programmes in India Some Issues
and Concerns” in Bhatt, MS ed ‘Poverty and food Security in India
Problems and Policies’, Aakar Books, New Delhi.
5. GoI (2006), “NREGA 2005 Operational Guidelines”, Ministry of Rural
Development, New Delhi.
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Success Stories
Case 1: - Earthen Drain in Saidapur village
This is a case where the selection and implementation of the work has been
successful in having an impact on the productivity of the village in addition to
creation of opportunities for work to the people. The authors visited the site of
the work in Saidapur village in Jewargi Taluka in Gulbarga district. There is an
irrigation tank in the village to provide irrigation facilities to 500 hectares of land.
However, on passage of time, another 200 hectares of land in the downstream of
the tank became water logged due to the seepage water from the tank. The small
canal leading from the tank also was of no use because of the small size and
getting silted. The Grama Panchayat did not have any funds at their disposal for
taking up cleaning de-silting and widening of the existing small drain. The NREGS
was the opportunity the villagers have been waiting for ages and they did not
want it to go unutilised. The work of an earthen drain was taken up leading to
reclaiming of 200 hectares of land by two seasons. The 200 hectares of land
brought under cultivation will add to the total productivity of the village. The
conservative estimate for the agricultural income puts the revenue at Rs. 5000/ a
hectare of dry land. This leads to the conclusion that the investment of
Rs.4,80,000 (approx) had ensured that the income of the village. This kind of
works serves the exact purpose of NREGS.
Case 2: - Renovation of traditional water body in Mashal village
Mashal village is situated on the North western side of the taluka bordering
Maharashtra state and is the head quarter of the Gram Pachayat. The area being
covered by black cotton soil and is under-laid by boulder trap/weathered trap.
Due to over exploitation of the ground water for agriculture and allied purposes
and scanty rainfall in the last five years, drastic lowering of water table was
noticed in the village. The village faced a very acute water crisis due to these
reasons. The bore-wells drilled in the village under the Calamity Relief Fund every
year produced very less amount of water. This has been a problematic village
always for the administration. Arrangements for the water supply through the
tankers had to be made from the month of January to June. The average cost for
the tanker water supply for the village per year worked out to be Rs 1,20,000. In
addition about Rs. 1,50,000 used to be spent on drilling of bore-wells for fining
out a permanent solution to the water scarcity problems. Thus, the village had to
spend around Rs 2,70,000 per year for the last three years. (This works out to be
Rs. 8,10,000).
9
National Rural Employment Guarantee Scheme was introduced in the district last
year. The villagers were very fast to realise the potential the scheme offer to
solve their problems related to the water scarcity. The villagers’ meeting held for
the purpose of planning for the scheme, the suggestion came from the villagers
to take up de-silting and renovation of an existing tank in the village. This
suggestion came from the realisation by the villagers that the only solution to
their water problem is to take measures to improve the ground water situation of
the village. The suggestion was accepted in the meeting and the work was taken
up.
The work included de-silting and deepening of the existing tank along with the
construction of a 3 KM long earthen drain an inlet for collecting the rain water
during the rainy season. The work was constructed as per the provisions of the
scheme. The estimate cost for the work is Rs 8,75,000. The work is under
progress and an amount of Rs. 6,84,000 is already spent. As the luck was on the
side of the villagers, there were untimely rains in the month of December and the
tank got filled up. This resulted in the recharge of the ground water in the village.
The bore-wells catering to the drinking water for the village got filled up and are
working properly. There is no demand for the supply of the water through the
tankers in the village. Recently a bore-well was drilled in a nearby hamlet near
the tank which produced a yield of 8172 Litres per Hour. There were a few wells
catering to the irrigation purpose in the village. These were also filled up bringing
more land under irrigation thereby increasing the economic production of the
village.
This success story has become an eye-opener for the villagers. Now they know
the benefits of taking up such schemes in the villages. The people have
demanded taking up more such works in the village which are being taken up
shortly.
This is a case study of an important innovation in providing healthcare for the rural poor: the Yeshasvini Health Insurance Scheme for rural farmers and peasants in Karnataka, India. Arguably the world's largest health insurance scheme for the rural poor, the scheme commenced in 2003. Designed in ways that overcome several obstacles to providing health security for rural populations, the scheme covered, in its second year, about 2.2 million widely dispersed peasant farmers for surgical and out patient care for a low annual premium of approximately US$ 2. In this paper, we describe and evaluate the scheme in its first year of operation, and explore its potential to be a model for the developing world generally.
Accepted
1
India’s National Rural Employment Guarantee Scheme (NREGA) -
Localised Implementation in Gulbarga District of Karnataka.
PC Jaffer IAS1
Introduction
Following the Enactment of the National Rural Employment Guarantee Act
(NREGA) 2005, the ambitious National Rural Employment Guarantee Scheme
(NREGS) has been implemented in selected 200 districts of the country. This was
later extended to 130 more districts during the year 2007-08. The main objective
of the scheme is ‘to provide for the enhancement of livelihood security of the
households in rural areas of the country by providing at least one hundred days of
guaranteed wage employment in every financial year to every household whose
adult members volunteer to do unskilled manual work’. Unlike the hitherto
prominent poverty alleviation and rural development schemes, this Act ensures
the right to work as a statutory right guaranteed and protected by law. The
passing of the Act in 2005 signifies a paradigm shift in the strategies of the rural
development.
This present paper examines the implementation issues and the immediate
impact of the scheme on rural population. Gulbarga district of Karnataka state is
taken as a case study. The implementation issues are important because this
scheme represents a deviation from all the previous ones in many ways. The
present study examines the impact of NREGS on poverty alleviation, creation of
durable community assets, agricultural wage level, distress migration and women
empowerment.
This scheme is different from all other such schemes that have been implemented
in the country so far. A few non-negotiable features of this scheme gives a hope
that this could be implemented plugging the loopholes for leakage of government
money. This is a demand based programme where there is no limitation of the
funds for the implementation. Any individual from the rural household can
register under this scheme irrespective of the economic status of the family.
Participatory planning and decentralised implementation are the specialities of the
scheme. It is mandatory to implement at least 50 per cent of the works by the
Grama Panchayat (the units of local self government at the village).
1The author is a member of the Indian Administrative Services and presently posted as Chief
Executive Officer of the Zilla Pacnhayat, Gulbarga in the State of Karnataka, India. This piece is
written primarily based on his experiences while working as District Programme Coordinator of NREGS
and the review of the data available in his office. The analyses follow the extensive filed visits and
interview with various stakeholders. The opinions expressed in this article are of the author need not
reflect that of the organization and the government he represents.
2
There are certain inbuilt safeguards in the scheme to ensure that the money is
spent on labour oriented works and it reaches the targeted beneficiaries. Firstly,
the contractors are banned in the implementation of the programme. Secondly, it
is mandatory to spend at least 60 per cent of the funds for the payment to the
labourers. Thirdly, Priority must be given to labour intensive projects like
watershed development, social forestry, wasteland reclamation etc. Finally,
payment of wages to the workers is to be made through accounts opened in the
name of labourers so as to prevent the exploitation of middlemen and to cultivate
saving habit in people.
Implementation Of the programme
Being a demand driven scheme, the basic idea is that the labourers who are
willing to do manual work are to be registered with the registration officer.
Whenever, they require work, they should approach the authorities and formally
place a requisition for work. The registration officer in the state is Secretary of
the Grama Panchayat (GP). The GP will issue a job-card to each family which will
entitle them to demand work as per their convenience. The job-cards are issued
within 15 days of registration. Any labourer with a job card can ask for work and
it should be provided to them within 15 days failing in which they are eligible for
getting unemployment allowance. The labourers have to be paid as per the
prevailing rate of minimum wages in the state. The minimum wages in the state
is Rs 74 per day. The families registered under the scheme amount to more than
30 million in all over the country. The corresponding figure for the district is
200688 families out of a total of 388394 families in the rural areas of the district.
Participatory and decentralised Planning for the Scheme
As a beginning, the task of identification of the potential of the village with the
developmental requirement and the resources available were carried out. This
was done as collective effort of various stakeholders and the community. A
meeting of all the villages were carried out for this purpose. The villagers
identified the requirements of the village and prioritised these demands. They
were helped by one NGO in these tasks. Their responsibility was to ensure
community participation in the planning process. Along side, various line
departments also identified the works related to their departments. All these
suggestions were combined and the perspective plan for the five years was
formed. The works were prioritised and those that are expected to be carried out
for an year were taken out separately. Detailed estimates were prepared for these
3
works. This is known as the shelf of projects. These plans were approved by the
elected body before implementing.
Administrative mechanism
For the purpose of implementation of the scheme, the Gram Panchayats2 are
designated as the primary implementing agencies. The Executive Officer of the
Taluka Panchayat (Intermediary Panchayat) is designated as the Programme
Officer (PO) for NREGS. The Chief Executive Officer of the Zilla Panchayat is
designated as the District Programme Coordinator. There are five implementing
agencies in the district. Department of Watershed Development and Social
Forestry are the implementing agencies in the district other than the three tiers of
the Panchayat Raj system. Technical support for the implementation is provided
by the Panchayat Raj Engineering Division which has one Junior Engineer for a
cluster of three to four Grama Panchayats.
Fund-flow
The fund for NREGS is allocated at the ratio of 90:10 by centre and state
respectively unlike other programmes where the ratio is 75:25. The Central
government releases the money to the districts directly who in turn releases it to
the sub-district level to be used for various works. The payment for the labourers
under all works is made by the Grama Panchayat irrespective of the implementing
agencies.
Payment and Bank accounts
It is mandatory to make payment under NREGS only through accounts. This is
followed very strictly in the district. This is very much helpful in ensuring that the
payment is reaching the real beneficiaries as no middle men come into the
picture. However, such a step does not come without its own share of problems.
The major issue was to find out banking institutions at the door steps of the
workers. Penetration of banking institutions and the banking habits are not
encouraging in the rural areas. Thus, a major share of the accounts was opened
by the Post offices. Once the scheme was six months old, post offices turned out
to be the biggest bottleneck for the implementation of the programme in many
places as they were not able to cope up with the manifold increase in their work.
The increased in workload without any capacity addition resulted in delay in
making the payments to the labourers. Finally, most of the accounts were shifted
2 Grama Pacnhayat is the lowest of the three tiers of the local self government at the
village level. The ZillaPanchayat is the highest level.
4
to the banks who agreed to cope up with the extra workload by working more
every day. The first impressions from the field are that the people have accepted
this system of payment as there is no scope for middle men in the scheme of
things. This is slowly inculcating a habit of savings in the minds of the rural
population which was hitherto unheard of. All the accounts opened were joint
accounts in the names of the women of the household also. This is one step
towards the gender sensitivity and women empowerment.
NREGA and Gender
NREGA is a highly gender sensitive scheme. It is mandatory that at least one
third of the workers should be women. The share of women at the national level
is 40%. The share of person-days worked by the women in Gulbarga district is
49% which is a little more than their share in the population. It is again
necessary to provide various facilities at the worksite like drinking water and baby
sitters. The provision of baby sitters will free the women of all the worries of
tacking care of their little kids. This provision is women friendly in another way
that this will spare the elder siblings from rearing the younger ones. Thus the
scheme promotes the education of girl child also. Women are more attracted
towards the scheme because the wage level for women labourers are less than
that of the male counterparts in the market. While a male labourer gets Rs 100
per day on an average during harvest seasons and Rs 70-80 during the lean
season, a women labourer gets about Rs 50 during harvest season and Rs 30-40
during lean season.
It is undisputed that the scheme has the potential to mobilise women in large
numbers and groups (which was earlier difficult). This presents an opportunity to
the Government to form productive self help groups among them and provide job
training. Thus, the ideal progression from the unskilled labour to the skilled
labour through the convergence of the entire scheme should materialise as an
offshoot of the NREGA. This is true in the case of the men also. Such social
change and upward mobility is the final aim of any poverty alleviation schemes.
Experiences from the field
The programme is being implemented for the last one year and the figures by the
end of March show that all the families and individuals who demanded work have
been provided with the work. NREGA has so far employed 148,735 people from
77,594 households in the district. This has generated 28,77,000 person-days by
5
taking up 3537 works. The expenditure made for the payment of the labourers is
62.01%.
The scheme has a positive impact on the household income level. This is mainly
because of three reasons. Firstly, NREGS provide 100 days of guaranteed job to
each household who are in need of manual unskilled work in rural areas.
Considering with the daily wage of Rs. 69 paid under the scheme, each family is
ensured about additional Rs 6900/ per year. Secondly, women labourers have
taken advantage of the scheme thereby increasing the family income as they are
paid lesser wages elsewhere. Thirdly, NREGS has ensured continued job to rural
household during the lean season.
The impact of the scheme on consumption, health expenditure and saving habit is
visible. A majority of the beneficiaries reported increase in their consumption,
health expenditure and saving. Under the scheme so far more than 0.65 million
accounts have been opened in the district. More than one lakh accounts are
opened in the name of the beneficiaries in the post offices. This had started to
have some impact on inculcating banking and saving habits among the people
who were hitherto untouched by such habits. Some of the beneficiaries reported
that about 50per cent of the income earned under the scheme is either saved at
home or at banks. On the other hand, it has to be noted that most of the
households still withdraw the whole amount from the bank accounts immediately
after the amount is credited.
Although it is too early to surface the impact of the scheme on agricultural wages,
the filed surveys show that on an average wage rates have started increasing in
the district. This has resulted in shortages of labourers for other types of works.
Simple theory of demand and supply states whenever there is shortage of supply
of labourers demand being constant, agricultural wages are bound to increase.
This has been very well evidenced through the interviews with beneficiaries,
farmers, engineers and contractors. The uptrend in wage level will increase cost
of cultivation. The non availability of labourers will negatively affect the
agricultural productions. It may ultimately lead to change in the cropping
patterns. Preference will be given to those commercial crops which require
manual labourers in lesser number.
Another social implication of this trend will be rift and antagonism between
labourers and farmers and the possibility of emerging class conflict among the
6
landlords and labourers. Another objective of the scheme is to analyse the impact
of NREGS on the migration of rural people. People from the district migrate to
other cities like Bombay, Pune, Bangalore and Hyderabad in search of job. The
status of migration is not well documented in the district. Most of the jobs created
are in the local areas and this has a positive impact on preventing distress
migration. Though the survey does not give any conclusive proof, still it is
observed that the implementation of the scheme has some positive impact on
migration. A word of caution has to be made at this point, that these observations
cannot be generalised as it is too early to make conclusions about the scheme
without the completion of the lean season.
Like other projects the NREGS has been successful in creating sustainable assets
in the district. The major thrust areas of the NREGS are water conservation,
social forestry and reclamation of wasteland. These projects not only help in
creation of jobs and assets but also increase the efficiency and productivity of the
land in the long run. For instance, watershed development projects help in
increasing in the water table of the area that ultimately results in increased
availability of water for both drinking and irrigation. Consequently, more areas
can be brought under cultivation and existing areas can be productively used.
Similarly, social forestry programme leads to the afforestation of lands which is
the need of the hour in the dry areas like Gulbarga. Two such case studies have
been prepared along with this paper.
Monitoring and transparency is the major thrust of NREGS. It is necessary that
social audit to be conducted where all the documents regarding the scheme
especially the muster rolls are made available to the public for inspection. They
have the right to question the correctness of the muster rolls. The social audit for
the first year in Gulbarga is scheduled to be held during the next month. The
details of the muster roll are planning to be put in the public domain. Another
significant feature of the scheme is the emphasis on capacity building as this is a
paradigm shift in the rural development and poverty reduction activities. Thus
training and IEC activities form an important part of the project. We have also
attempted convergence with other schemes along with NREGA. The example is
combining of the adult literacy programmes at the worksites. Many of the workers
are illiterate and hence are the target group for the adult literacy activities. The
objective of this initiative is to replace the thumb impressions with signatures in
one month. Another inititative being attempted is to carry out primary health
check up for the workers in the worksite itself.
7
Conclusions
The above discussion in this paper leads to certain conclusions. The study has
found positive impact of the scheme on these variables. The study reaches the
following conclusions. This scheme is successful in creating an impression in the
minds of people that it would help in minimising the pilferages and ensure the
benefits of government programmes reach the real beneficiaries. The scheme has
an impact in raising the standards of living and the agricultural wage level in the
villages. It is leading to the creation of durable community assets. More
importantly, the payment to the labourers is done through the accounts in banks
and post offices. This had laid the foundation for inculcating the savings habit in
the minds of people. If implemented properly with revision of minimum wage
from time to time, the distress migration from rural areas especially during the
off season can be checked. Finally, the scheme has the potential to change the
rural edifice of the district and can act as a model rural development scheme. The
authors put a word of caution that all these are first impressions of a scheme that
will be there for at least five years.
References
1. Ministry of Law and Justice (2005), “The Gazette of India” Extraordinary
part 11-Section 1 Ministry of Law and Justice (Legislative Department),
Government of India, September 7, 2005, New Delhi.
2. Government of Karnataka, (2005) “Karnataka Human Development Report
2005, Investing in Human Development” Planning and Statistics
Department, GoK, Bangalore
3. Rao, KS (2004), ‘Poverty Alleviation-Results of an Impact Assessment
Study” in Bhatt, MS Ed ‘Poverty Alleviation and Food Security in India
Problems and Policies’, Aakar Books, New Delhi.
4. Ananya, GD (2004) “Poverty Alleviation Programmes in India Some Issues
and Concerns” in Bhatt, MS ed ‘Poverty and food Security in India
Problems and Policies’, Aakar Books, New Delhi.
5. GoI (2006), “NREGA 2005 Operational Guidelines”, Ministry of Rural
Development, New Delhi.
8
Success Stories
Case 1: - Earthen Drain in Saidapur village
This is a case where the selection and implementation of the work has been
successful in having an impact on the productivity of the village in addition to
creation of opportunities for work to the people. The authors visited the site of
the work in Saidapur village in Jewargi Taluka in Gulbarga district. There is an
irrigation tank in the village to provide irrigation facilities to 500 hectares of land.
However, on passage of time, another 200 hectares of land in the downstream of
the tank became water logged due to the seepage water from the tank. The small
canal leading from the tank also was of no use because of the small size and
getting silted. The Grama Panchayat did not have any funds at their disposal for
taking up cleaning de-silting and widening of the existing small drain. The NREGS
was the opportunity the villagers have been waiting for ages and they did not
want it to go unutilised. The work of an earthen drain was taken up leading to
reclaiming of 200 hectares of land by two seasons. The 200 hectares of land
brought under cultivation will add to the total productivity of the village. The
conservative estimate for the agricultural income puts the revenue at Rs. 5000/ a
hectare of dry land. This leads to the conclusion that the investment of
Rs.4,80,000 (approx) had ensured that the income of the village. This kind of
works serves the exact purpose of NREGS.
Case 2: - Renovation of traditional water body in Mashal village
Mashal village is situated on the North western side of the taluka bordering
Maharashtra state and is the head quarter of the Gram Pachayat. The area being
covered by black cotton soil and is under-laid by boulder trap/weathered trap.
Due to over exploitation of the ground water for agriculture and allied purposes
and scanty rainfall in the last five years, drastic lowering of water table was
noticed in the village. The village faced a very acute water crisis due to these
reasons. The bore-wells drilled in the village under the Calamity Relief Fund every
year produced very less amount of water. This has been a problematic village
always for the administration. Arrangements for the water supply through the
tankers had to be made from the month of January to June. The average cost for
the tanker water supply for the village per year worked out to be Rs 1,20,000. In
addition about Rs. 1,50,000 used to be spent on drilling of bore-wells for fining
out a permanent solution to the water scarcity problems. Thus, the village had to
spend around Rs 2,70,000 per year for the last three years. (This works out to be
Rs. 8,10,000).
9
National Rural Employment Guarantee Scheme was introduced in the district last
year. The villagers were very fast to realise the potential the scheme offer to
solve their problems related to the water scarcity. The villagers’ meeting held for
the purpose of planning for the scheme, the suggestion came from the villagers
to take up de-silting and renovation of an existing tank in the village. This
suggestion came from the realisation by the villagers that the only solution to
their water problem is to take measures to improve the ground water situation of
the village. The suggestion was accepted in the meeting and the work was taken
up.
The work included de-silting and deepening of the existing tank along with the
construction of a 3 KM long earthen drain an inlet for collecting the rain water
during the rainy season. The work was constructed as per the provisions of the
scheme. The estimate cost for the work is Rs 8,75,000. The work is under
progress and an amount of Rs. 6,84,000 is already spent. As the luck was on the
side of the villagers, there were untimely rains in the month of December and the
tank got filled up. This resulted in the recharge of the ground water in the village.
The bore-wells catering to the drinking water for the village got filled up and are
working properly. There is no demand for the supply of the water through the
tankers in the village. Recently a bore-well was drilled in a nearby hamlet near
the tank which produced a yield of 8172 Litres per Hour. There were a few wells
catering to the irrigation purpose in the village. These were also filled up bringing
more land under irrigation thereby increasing the economic production of the
village.
This success story has become an eye-opener for the villagers. Now they know
the benefits of taking up such schemes in the villages. The people have
demanded taking up more such works in the village which are being taken up
shortly.
CASE IN QUALITY CIRCLE
Impact of Quality Circle—a Case Study
F Talib, Non-member
M Ali, Non-member
After second world war, most of the countries in the world had to face the problem of industrial development. Japan
was worst hit and the industrial units in Japan were going from bad to worse and it was necessary for Japan to put
their shattered economy back to the rails. To do so modern concept of quality control came to Japan after 1945,
from USA, but it was only after 1955 that this system of management of quality control was actually implemented
to the company from the bottom of the organization that could also share in the quality control function at the
workshop level. Quality circle provides the employees at the bottom level to proceed towards the top level with
opportunities to perform effectively and solving the daily problem of the unit. It this paper, the authors tried to
study the impact of quality circle techniques through a case study dealing with causes of the material losses related
to 4-Ms (man, machine, materials, methods), in a small production shop floor. The observed datas are analyzed
through Pareto diagram and ‘Ishikawa diagram’ and following results were obtained : Drastic reduction in materials
wastage, average saving per year increased and financial losses were minimized, workers were motivated to keep
and operate materials with care and prevent wastage, and good team relationship was built among the workman
and management.
Keywords : Quality Management; Quality Circle; Weight Loss and Total Quality Management
M Ali and F Talib are with University Polytechnic, AMU, Aligarh
202002
This paper was received on February 26, 2002. Written discussion on this
paper will be received until July 31, 2003.
INTRODUCTION
In older times, during the post world war the Indian workshop and
industries were generally practicing older concept of system to
manage the scientific techniques, as a result of following the older
concepts unwisely a barrier of mistrust, individualism and noninvolvement
of different levels of manpower and management has
been erected between the important sections of the organization.
For example, during the post second world war era Japan was
worst hit by the above mentioned crisis and the individual units in
Japan were going from bad to worse and it was necessary for
Japan to put their shattered economy back to rail. For that they
had to wipe out their poor image of quality, with the help of some
quality management experts from America, namely, Dr Deming, Dr
Juran. At this point Dr Ishikawa of Mushashi Institute of
Technology, Tokyo added a new dimension to this effect by
involving task performer at the grass root level to work towards
the quality improvement. He motivated the workmen to follow the
quality control techniques in their shop floor by forming small
groups and sought their help in solving the daily problem coming
during the production of the job. After all the person who is actually
doing the job know the job best. This was the basic guideline in
forming the quality circle. Hence, by introducing this modern
concept of quality control in any organization employees at the
grassroots level have the opportunity to perform effectively and
meshing well with the activities of other levels, ie, total involvement
of the worker and the intellectuals and hence there was a
tremendous change in the working environment between the
management, and the workforce. Various studies have been
conducted on the implementation of quality circles in different
organization and the results were very encouraging. Study
conducted by S K Dey, et al involving quality circles for a steady
reduction in chemeical wastage proved to be very gainful to the
industries related to the material wastage. Also study conducted
by Reddy, et al on dimensional quality control of casting gives a
result of good quality casting at minimum cost. Another study
conducted by Shiva Gonde, et al which was different from other
studies in the sense that he has implemented quality circle approach
in technical education systems for solving work related problems
and found that there were major dimensional change in decisions
and actions, conventional bureaucratic approach to self
empowering employees along with the responsibilities of managing
the institutions.
METHODOLOGY
Formation of Quality Circle
The following basic elements constitute the structure of the quality
circle :
i) Top Management
ii) Steering committee
iii) Co-ordinator
iv) Facilitator
v) Leader
vi) Members
vii) Non-members
The success of the quality circles depends solely on the attitude
of the top management and plays an important role to ensure the
success of implementation of quality circles in the organization.
Steering committee called middle management consists of chief
executive heads of different divisions or a co-ordinator plays a
positive role in quality circles activities for the success of the
efforts. The meetings are conveyed at least once in one to two
Vol 84, May 2003 11
months interval. Co-ordinator also acts as facilitators is an
individual responsible for coordinating and directing the quality
circles activities within an organization and carries out such
functions as would make the operations of quality circles smooth,
effective and self-sustainable. Facilitator also acts as a catalyst,
innovator, promoter and teacher and is nominated by the
management. Leader of the quality circles is chosen by the members
among themselves and they may decide to have a leader by
rotation since the members are the basic elements of the structure
of quality circle. Members of the quality circles are the small group
of people from the same work area or doing similar type of work
whereas non-members are those who are not members of the
quality circle but may be involved in the circle recommendation.
Figure 1 Structure of quality circle
Figure 2 Pareto diagram
Problem Solving Techniques
Quality circle commonly use the following basic techniques to
identify and to analyze problems
i) Team work (Brainstorming)
ii) Collection of data
iii) Pareto analysis
iv) Ishikawa diagram (Fishbone diagram)
v) Cumulative line diagram
PROBLEM FORMULATION
The present study was conducted by selecting a problem
concerning with the material loss in workshop of University
Polytechnic, AMU by forming a quality circle. The authors were
involved as internal observer in the operation of quality circle
working in workshop. The production involves manufacturing of
Figure 3 Pie chart (effectiveness of process variable on material
wastages)
Figure 4 Ishikawa diagram (fishbone diagram)
12 IE(I) Journal–ID
crankshaft, spindle and metallic numerals in the machine and fitting
shop. The operation involves in producing the above products
comprises of various methods of manufacturing such as facing,
drilling, filling, cutting, shaping, threading etc. The operations of
these quality circle as given below realize the impact of quality
circle.
Case Study
a) Name of the organization : Workshop, University
Polytechnic, AMU
Aligarh
b) Number of circle : 01 (one)
c) Section where the circle is : Machine and fitting shop
operating
d) Number of meetings held : 10 (ten)
for last one year
The quality circle under consideration has a leader, a facilitator, a
coordinator and four members. The object of the present quality
circle is ‘reduction of material wastage’. This problem was so
chosen for solution because of following facts :
a) Whether there was any reduction in material wastage.
b) Whether there were any saving and financial losses that
should be minimized.
c) Whether it had any effect on the working of the workers
and relationship between workman and management.
There were differences in the actual and expected material
consumption. Table 1 gives the detail of material consumption for
the year 1999 to 2000, before implementation of quality circle, and
Table 2 shows the detail of material consumption for the year 2000
to 2001 after implementing quality circle. After various discussion
and brain storming sessions following causes related to man,
machine, material and methods were located.
Table 1 Details of material consumption for the year July 15,
1999 to March 31, 2000 (before implementing quality circle)
Items Spefication Material Consum-Material Material
ption per year Loss in loss in
Expected, Actual, machin- Rs
k g k g ing, kg
Mild Steel Length, mm : 50 210 105 105 1785.00
Rod Diameter, mm : 31
Carbon, % : 0.01 to1
Harden cold rolled
Cast Iron Length, mm : 50 135 75 60 1920.00
Block Width, mm : 50
Thickness, mm : 24
Carbon, % : 2-4
Mild Steel Lenght, mm : 75 53 30 23 437.00
Flat Width, mm : 48
Thickness, mm : 6
Total 4142.00
Table 2 Details of material consumption for the year July 15,
2000 to March 31, 2001 (after implementing quality circle)
Items Spefication Material Consum-Material Material
ption per year Loss in loss in
Expected, Actual, machin- Rs
k g k g ing, kg
Mild Steel Length, mm : 50 210 150 60 1020.00
Rod Diameter, mm : 31
Carbon,% : 0.01 to 1
Harden cold rolled
Cast Iron Length, mm : 50 135 105 30 960.00
Block Width, mm : 50
Thickness, mm : 24
Mild Steel Lenght, mm : 75 53 45 8.0 152.00
Flat Width, mm : 48
Thickness, mm : 6
Total 2132.00
Causes Related to Man
a) Lack of knowledge about the materials
b) Proper instruction not given about the work
c) The materials were cut more than the required amount
d) Lack of knowledge about the operations
e) Lack of knowledge about handling special tools
Causes Related to Machines
a) Machines not operating at optimum condition
b) Frictional wear of machine parts
c) Problem arising due to misalignment of machine
components
d) Lack of implementation of new and automatic machines
Causes Related to Methods
a) No proper inspection in the machine shop after the material
has been issued from the store
b) No proper care was taken in storing the materials
c) Lack of knowledge of improving the existing method of
production
Causes Related to Material
a) No proper inspection of the material dimension before
machining
b) Materials obtained not having the required composition
Table 3 Saving in the material wastage for the year 2000-2001
Material Wastage Material Wastage Savings
before Implementing after Implementing Amount
Quality Circle, Rs Quality Circle, Rs Rs 1 year
4142 2132. 2010
Vol 84, May 2003 13
DISCUSSION AND CONCLUSION
After implementation of quality circle, steady reduction in material
wastage was observed. Considering the material wastage for the
year 1999-2000 as a base year, calculated savings for the next one
year 2000-2001 is obtained and shown in the Table 2. Besides this
Table 3 gives the complete details of the monetary gain for the
year 2000-2001 which shows a sufficient amount of saving.
Following observation were achieved after implementation of
quality circle.
i) Improvement of internal personal relationship
ii) Self-confidence was developed in solving more complex
problem related to production.
iii) A good teamwork was achieved among the workman
iv) Material wastage was minimized as a result heavy
monetary gain was obtained.
Table 4 shows a percentage of contribution of various factors that
led to material loss in the given order. These four factors were
chosen as the most effective factor in analyzing the problem. The
various reason or causes of each factor were determined and shown
in Ishikawa diagram (Fishbone diagram). The causes and effect
were obtained by calling various quality circle meetings (ten)
through brainstorming session and discussion. And hence these
factors led to the result of the present study in the following order
: Man
Machine
Method
Material
Further this quality circle approach for quality improvement in
University Polytechnic workshop may bring new dimension,
shifting dependence for decisions and actions, conventional
bureaucratic approach towards existing system. Empowering
employees exhibit considerably owing the responsibility of
managing the organization. This change revealed that quest for
quality service is in the hand of all employees. This success of
quality circle in the workshop and small enterprises. This quality
approach may be required to be spread in all polytechnic workshop
and small-scale enterprise existing in the country. The sustenance
of success will lead to total quality improvement emerging as a
centre of excellence of its own in any small enterprise in India
F Talib, Non-member
M Ali, Non-member
After second world war, most of the countries in the world had to face the problem of industrial development. Japan
was worst hit and the industrial units in Japan were going from bad to worse and it was necessary for Japan to put
their shattered economy back to the rails. To do so modern concept of quality control came to Japan after 1945,
from USA, but it was only after 1955 that this system of management of quality control was actually implemented
to the company from the bottom of the organization that could also share in the quality control function at the
workshop level. Quality circle provides the employees at the bottom level to proceed towards the top level with
opportunities to perform effectively and solving the daily problem of the unit. It this paper, the authors tried to
study the impact of quality circle techniques through a case study dealing with causes of the material losses related
to 4-Ms (man, machine, materials, methods), in a small production shop floor. The observed datas are analyzed
through Pareto diagram and ‘Ishikawa diagram’ and following results were obtained : Drastic reduction in materials
wastage, average saving per year increased and financial losses were minimized, workers were motivated to keep
and operate materials with care and prevent wastage, and good team relationship was built among the workman
and management.
Keywords : Quality Management; Quality Circle; Weight Loss and Total Quality Management
M Ali and F Talib are with University Polytechnic, AMU, Aligarh
202002
This paper was received on February 26, 2002. Written discussion on this
paper will be received until July 31, 2003.
INTRODUCTION
In older times, during the post world war the Indian workshop and
industries were generally practicing older concept of system to
manage the scientific techniques, as a result of following the older
concepts unwisely a barrier of mistrust, individualism and noninvolvement
of different levels of manpower and management has
been erected between the important sections of the organization.
For example, during the post second world war era Japan was
worst hit by the above mentioned crisis and the individual units in
Japan were going from bad to worse and it was necessary for
Japan to put their shattered economy back to rail. For that they
had to wipe out their poor image of quality, with the help of some
quality management experts from America, namely, Dr Deming, Dr
Juran. At this point Dr Ishikawa of Mushashi Institute of
Technology, Tokyo added a new dimension to this effect by
involving task performer at the grass root level to work towards
the quality improvement. He motivated the workmen to follow the
quality control techniques in their shop floor by forming small
groups and sought their help in solving the daily problem coming
during the production of the job. After all the person who is actually
doing the job know the job best. This was the basic guideline in
forming the quality circle. Hence, by introducing this modern
concept of quality control in any organization employees at the
grassroots level have the opportunity to perform effectively and
meshing well with the activities of other levels, ie, total involvement
of the worker and the intellectuals and hence there was a
tremendous change in the working environment between the
management, and the workforce. Various studies have been
conducted on the implementation of quality circles in different
organization and the results were very encouraging. Study
conducted by S K Dey, et al involving quality circles for a steady
reduction in chemeical wastage proved to be very gainful to the
industries related to the material wastage. Also study conducted
by Reddy, et al on dimensional quality control of casting gives a
result of good quality casting at minimum cost. Another study
conducted by Shiva Gonde, et al which was different from other
studies in the sense that he has implemented quality circle approach
in technical education systems for solving work related problems
and found that there were major dimensional change in decisions
and actions, conventional bureaucratic approach to self
empowering employees along with the responsibilities of managing
the institutions.
METHODOLOGY
Formation of Quality Circle
The following basic elements constitute the structure of the quality
circle :
i) Top Management
ii) Steering committee
iii) Co-ordinator
iv) Facilitator
v) Leader
vi) Members
vii) Non-members
The success of the quality circles depends solely on the attitude
of the top management and plays an important role to ensure the
success of implementation of quality circles in the organization.
Steering committee called middle management consists of chief
executive heads of different divisions or a co-ordinator plays a
positive role in quality circles activities for the success of the
efforts. The meetings are conveyed at least once in one to two
Vol 84, May 2003 11
months interval. Co-ordinator also acts as facilitators is an
individual responsible for coordinating and directing the quality
circles activities within an organization and carries out such
functions as would make the operations of quality circles smooth,
effective and self-sustainable. Facilitator also acts as a catalyst,
innovator, promoter and teacher and is nominated by the
management. Leader of the quality circles is chosen by the members
among themselves and they may decide to have a leader by
rotation since the members are the basic elements of the structure
of quality circle. Members of the quality circles are the small group
of people from the same work area or doing similar type of work
whereas non-members are those who are not members of the
quality circle but may be involved in the circle recommendation.
Figure 1 Structure of quality circle
Figure 2 Pareto diagram
Problem Solving Techniques
Quality circle commonly use the following basic techniques to
identify and to analyze problems
i) Team work (Brainstorming)
ii) Collection of data
iii) Pareto analysis
iv) Ishikawa diagram (Fishbone diagram)
v) Cumulative line diagram
PROBLEM FORMULATION
The present study was conducted by selecting a problem
concerning with the material loss in workshop of University
Polytechnic, AMU by forming a quality circle. The authors were
involved as internal observer in the operation of quality circle
working in workshop. The production involves manufacturing of
Figure 3 Pie chart (effectiveness of process variable on material
wastages)
Figure 4 Ishikawa diagram (fishbone diagram)
12 IE(I) Journal–ID
crankshaft, spindle and metallic numerals in the machine and fitting
shop. The operation involves in producing the above products
comprises of various methods of manufacturing such as facing,
drilling, filling, cutting, shaping, threading etc. The operations of
these quality circle as given below realize the impact of quality
circle.
Case Study
a) Name of the organization : Workshop, University
Polytechnic, AMU
Aligarh
b) Number of circle : 01 (one)
c) Section where the circle is : Machine and fitting shop
operating
d) Number of meetings held : 10 (ten)
for last one year
The quality circle under consideration has a leader, a facilitator, a
coordinator and four members. The object of the present quality
circle is ‘reduction of material wastage’. This problem was so
chosen for solution because of following facts :
a) Whether there was any reduction in material wastage.
b) Whether there were any saving and financial losses that
should be minimized.
c) Whether it had any effect on the working of the workers
and relationship between workman and management.
There were differences in the actual and expected material
consumption. Table 1 gives the detail of material consumption for
the year 1999 to 2000, before implementation of quality circle, and
Table 2 shows the detail of material consumption for the year 2000
to 2001 after implementing quality circle. After various discussion
and brain storming sessions following causes related to man,
machine, material and methods were located.
Table 1 Details of material consumption for the year July 15,
1999 to March 31, 2000 (before implementing quality circle)
Items Spefication Material Consum-Material Material
ption per year Loss in loss in
Expected, Actual, machin- Rs
k g k g ing, kg
Mild Steel Length, mm : 50 210 105 105 1785.00
Rod Diameter, mm : 31
Carbon, % : 0.01 to1
Harden cold rolled
Cast Iron Length, mm : 50 135 75 60 1920.00
Block Width, mm : 50
Thickness, mm : 24
Carbon, % : 2-4
Mild Steel Lenght, mm : 75 53 30 23 437.00
Flat Width, mm : 48
Thickness, mm : 6
Total 4142.00
Table 2 Details of material consumption for the year July 15,
2000 to March 31, 2001 (after implementing quality circle)
Items Spefication Material Consum-Material Material
ption per year Loss in loss in
Expected, Actual, machin- Rs
k g k g ing, kg
Mild Steel Length, mm : 50 210 150 60 1020.00
Rod Diameter, mm : 31
Carbon,% : 0.01 to 1
Harden cold rolled
Cast Iron Length, mm : 50 135 105 30 960.00
Block Width, mm : 50
Thickness, mm : 24
Mild Steel Lenght, mm : 75 53 45 8.0 152.00
Flat Width, mm : 48
Thickness, mm : 6
Total 2132.00
Causes Related to Man
a) Lack of knowledge about the materials
b) Proper instruction not given about the work
c) The materials were cut more than the required amount
d) Lack of knowledge about the operations
e) Lack of knowledge about handling special tools
Causes Related to Machines
a) Machines not operating at optimum condition
b) Frictional wear of machine parts
c) Problem arising due to misalignment of machine
components
d) Lack of implementation of new and automatic machines
Causes Related to Methods
a) No proper inspection in the machine shop after the material
has been issued from the store
b) No proper care was taken in storing the materials
c) Lack of knowledge of improving the existing method of
production
Causes Related to Material
a) No proper inspection of the material dimension before
machining
b) Materials obtained not having the required composition
Table 3 Saving in the material wastage for the year 2000-2001
Material Wastage Material Wastage Savings
before Implementing after Implementing Amount
Quality Circle, Rs Quality Circle, Rs Rs 1 year
4142 2132. 2010
Vol 84, May 2003 13
DISCUSSION AND CONCLUSION
After implementation of quality circle, steady reduction in material
wastage was observed. Considering the material wastage for the
year 1999-2000 as a base year, calculated savings for the next one
year 2000-2001 is obtained and shown in the Table 2. Besides this
Table 3 gives the complete details of the monetary gain for the
year 2000-2001 which shows a sufficient amount of saving.
Following observation were achieved after implementation of
quality circle.
i) Improvement of internal personal relationship
ii) Self-confidence was developed in solving more complex
problem related to production.
iii) A good teamwork was achieved among the workman
iv) Material wastage was minimized as a result heavy
monetary gain was obtained.
Table 4 shows a percentage of contribution of various factors that
led to material loss in the given order. These four factors were
chosen as the most effective factor in analyzing the problem. The
various reason or causes of each factor were determined and shown
in Ishikawa diagram (Fishbone diagram). The causes and effect
were obtained by calling various quality circle meetings (ten)
through brainstorming session and discussion. And hence these
factors led to the result of the present study in the following order
: Man
Machine
Method
Material
Further this quality circle approach for quality improvement in
University Polytechnic workshop may bring new dimension,
shifting dependence for decisions and actions, conventional
bureaucratic approach towards existing system. Empowering
employees exhibit considerably owing the responsibility of
managing the organization. This change revealed that quest for
quality service is in the hand of all employees. This success of
quality circle in the workshop and small enterprises. This quality
approach may be required to be spread in all polytechnic workshop
and small-scale enterprise existing in the country. The sustenance
of success will lead to total quality improvement emerging as a
centre of excellence of its own in any small enterprise in India
BRAIN STORMING
Brainstorming
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Brainstorming is a group creativity technique designed to generate a large number of ideas for the solution to a problem. The method was first popularized in the late 1930s by Alex Faickney Osborn in a book called Applied Imagination. Osborn proposed that groups could double their creative output by using the method of brainstorming.[1]
Although brainstorming has become a popular group technique, researchers have generally failed to find evidence of its effectiveness for enhancing either quantity or quality of ideas generated. Because of such problems as distraction, social loafing, evaluation apprehension, and production blocking, brainstorming groups are little more effective than other types of groups, and they are actually less effective than individuals working independently.[2][3][4] In the Encyclopedia of Creativity, Tudor Rickards provides the article on brainstorming, summarizing the controversies. He also indicates the dangers of conflating productivity in group work with quantity of ideas.[5]
There have been numerous attempts to improve brainstorming or replace it with more effective variations of the basic technique. Although traditional brainstorming may not increase the productivity of groups, it may still provide benefits, such as enhancing the enjoyment of group work and improving morale. It may also serve as a useful exercise for team building.
Use of the term "brainstorming" has been criticized on the grounds that it is politically incorrect and offensive to people with epilepsy.[6] However, a 2005 survey by the UK charity National Society for Epilepsy found that 93 per cent of people with the condition surveyed do not find the word offensive.[7]
Contents
[hide]
• 1 Approach
• 2 Outline of the method
o 2.1 Set the problem
o 2.2 Create a background memo
o 2.3 Select participants
o 2.4 Create a list of lead questions
o 2.5 Session conduct
o 2.6 The process
o 2.7 Evaluation
• 3 Variations
o 3.1 Nominal group technique
o 3.2 Group passing technique
o 3.3 Team idea mapping method
o 3.4 Electronic brainstorming
o 3.5 Directed brainstorming
o 3.6 Individual brainstorming
o 3.7 Other variations
• 4 Conclusion
• 5 See also
• 6 References
[edit] Approach
There are four basic rules in brainstorming.[8] These are intended to reduce the social inhibitions that occur in groups and therefore stimulate the generation of new ideas. The expected result is a dynamic synergy that will dramatically increase the creativity of the group.
1. Focus on quantity: This rule is a means of enhancing divergent production, aiming to facilitate problem solving through the maxim, quantity breeds quality. The assumption is that the greater the number of ideas generated, the greater the chance of producing a radical and effective solution.
2. No criticism: It is often emphasized that in group brainstorming, criticism should be put 'on hold'. Instead of immediately stating what might be wrong with an idea, the participants focus on extending or adding to it, reserving criticism for a later 'critical stage' of the process. By suspending judgment, one creates a supportive atmosphere where participants feel free to generate unusual ideas.
3. Unusual ideas are welcome: To get a good and long list of ideas, unusual ideas are welcomed. They may open new ways of thinking and provide better solutions than regular ideas. They can be generated by looking from another perspective or setting aside assumptions.
4. Combine and improve ideas: Good ideas can be combined to form a single very good idea, as suggested by the slogan "1+1=3". This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone. It is believed to stimulate the building of ideas by a process of association.
Diagram of a brainstorming session
[edit] Outline of the method
[edit] Set the problem
One of the most important things to do before a session is to define the problem. The problem must be clear, not too big, and captured in a definite question such as "What service for mobile phones is not available now, but needed?". If the problem is too big, the chairman should divide it into smaller components, each with its own question. Some problems are multi-dimensional and non-quantified, for example "What are the aspects involved in being a successful entrepreneur?". Finding solutions for this kind of problem can be done with morphological analysis (problem-solving).
[edit] Create a background memo
The background memo is the invitation and informational letter for the participants, containing the session name, problem, time, date, and place. The problem is described in the form of a question, and some example ideas are given. The ideas are solutions to the problem, and used when the session slows down or goes off-track. The memo is sent to the participants at least two days in advance, so that they can think about the problem beforehand.
[edit] Select participants
The chairman composes the brainstorming panel, consisting of the participants and an idea collector. Ten or fewer group members are generally more productive than larger groups. Many variations are possible but the following composition is suggested.
• Several core members of the project who have proved themselves.
• Several guests from outside the project, with affinity to the problem.
• One idea collector who records the suggested ideas.
[edit] Create a list of lead questions
During the brainstorm session the creativity may decrease. At this moment, the chairman should stimulate creativity by suggesting a lead question to answer, such as Can we combine these ideas? or How about a look from another perspective?. It is advised to prepare a list of such leads before the session begins.
[edit] Session conduct
The chairperson leads the brainstorming session and ensures that the basic rules are followed. The activities of a typical session are:
1. A warm-up session, to expose novice participants to the criticism-free environment. A simple problem is brainstormed, for example What should be the next corporate Christmas present? or What can be improved in Microsoft Windows?.
2. The chairman presents the problem and gives a further explanation if needed.
3. The chairman asks the brainstorming panel for their ideas.
4. If no ideas are coming out, the chairman suggests a lead to encourage creativity.
5. Every participant presents his or her idea, and the idea collector records them.
6. If more than one participant has ideas, the chairman lets the most associated idea be presented first. This selection can be done by looking at the body language of the participants, or just by asking for the most associated idea.
7. The participants try to elaborate on the idea, to improve the quality.
8. When time is up, the chairman organizes the ideas based on the topic goal and encourages discussion. Additional ideas may be generated.
9. Ideas are categorized.
10. The whole list is reviewed to ensure that everyone understands the ideas. Duplicate ideas and obviously infeasible solutions are removed.
11. The chairman thanks all participants and gives each a token of appreciation.
Process of conducting a brainstorming session
[edit] The process
• Participants who have an idea but no possibility to present it are encouraged to write down their idea and present it later.
• The idea collector should number the ideas, so that the chairperson can use the number to encourage quantitative idea generation, for example: We have 44 ideas now, let’s get it to 50!.
• The idea collector should repeat the idea in the words he or she has written it, to confirm that it expresses the meaning intended by the originator.
• When more participants are having ideas, the one with the most associated idea should have priority. This to encourage elaboration on previous ideas.
• During the brainstorming session the attendance of managers and superiors is strongly discouraged, as it may inhibit and reduce the effect of the four basic rules, especially the generation of unusual ideas.
[edit] Evaluation
Brainstorming is not just about generating ideas for others to evaluate and select. Usually the group itself will, in its final stage, evaluate the ideas and select one as the solution to the problem proposed to the group.
• The solution should not require resources or skills the members of the group do not have or cannot acquire.
• If acquiring additional resources or skills is necessary, that needs to be the first part of the solution.
• There must be a way to measure progress and success.
• The steps to carry out the solution must be clear to all, and amenable to being assigned to the members so that each will have an important role.
• There must be a common decision making process to enable a coordinated effort to proceed, and to reassign tasks as the project unfolds.
• There should be evaluations at milestones to decide whether the group is on track toward a final solution.
• There should be incentives to participation such that participants maintain their efforts.
[edit] Variations
[edit] Nominal group technique
The nominal group technique is a type of brainstorming that encourages all participants to have an equal say in the process. It is also used to generate a ranked list of ideas.
Participants are asked to write down their ideas anonymously. Then the moderator collects the ideas and each is voted on by the group. The vote can be as simple as a show of hands in favor of a given idea. This process is called distillation.
After distillation, the top ranked ideas may be sent back to the group or to subgroups for further brainstorming. For example, one group may work on the color required in a product. Another group may work on the size, and so forth. Each group will come back to the whole group for ranking the listed ideas. Sometimes ideas that were previously dropped may be brought forward again once the group has re-evaluated the ideas.
It is important for the moderator to have received training in this process before attempting to take on the moderating task. The group should be primed and encouraged to embrace the process. Like all team efforts, it may take a few practice sessions to train the team in the method before tackling the important ideas.
[edit] Group passing technique
Each person in a circular group writes down one idea, and then passes the piece of paper to the next person in a clockwise direction, who adds some thoughts. This is repeated until everybody gets their original piece of paper back. By this time, it is likely that the group will have extensively elaborated on each idea.
A popular alternative to this technique is to create an "Idea Book" and post a distribution list or routing slip to the front of the book. On the inside cover (or first page) is a description of the problem. The first person to receive the book lists his or her ideas and then routes the book to the next person on the distribution list. The second person can log new ideas or add to the ideas of the previous person. This continues until the distribution list is exhausted. follow-up "read out" meeting is then held to discuss the ideas logged in the book. This technique takes longer, but allows individual thought whenever the person has time to think deeply about the problem.
[edit] Team idea mapping method
This method of brainstorming works by the method of association. It may improve collaboration and increase the quantity of ideas, and is designed so that all attendees participate and no ideas are rejected.
The process begins with a well-defined topic. Each participant creates an individual brainstorm around the topic. All the ideas are then merged into one large idea map. During this consolidation phase, the participants may discover a common understanding of the issues as they share the meanings behind their ideas. As the sharing takes place, new ideas may arise by the association. Those ideas are added to the map as well. Then ideas are generated on both individual and group levels. Once all the ideas are captured, the group can prioritize and/or take action.
[edit] Electronic brainstorming
Electronic brainstorming is a computerized version of the manual brainwriting technique. It can be done via email. The chairman or facilitator sends the question out to group members, and they contribute independently by sending their ideas directly back to the facilitator. The facilitator then compiles a list of ideas and sends it back to the group for further feedback. Electronic brainstorming eliminates many of the problems of standard brainstorming, such as production blocking and evaluation apprehension. An additional advantage of this method is that all ideas can be archived electronically in their original form, and then retrieved later for further thought and discussion. Electronic brainstorming also enables much larger groups to brainstorm on a topic than would normally be productive in a traditional brainstorming session. Other forms of electronic brainstorming could be browser based, client / server, or peer to peer related software.
[edit] Directed brainstorming
Directed brainstorming is a variation on electronic brainstorming (brainwriting) described above. It can be done manually or with computer technology. Directed brainstorming works when the solution space (that is, the criteria for evaluating a good idea) is known prior to the session. If known, that criteria can be used to intentionally constrain the ideation process. In directed brainstorming, each participant is given one sheet of paper (or electronic form) and told the brainstorming question. They are asked to produce one response and stop. At that point all of the papers (or forms) are randomly swapped among the participants. Each, then, has possession of someone else's form containing a single response. The participants are asked to look at the idea in front of them and create a new idea that is better than that idea on the first criterion dimension. For example, if the first criterion was "low cost" the participants might be asked to improve upon the idea in front of them by creating an idea that is lower in cost. The forms are then swapped again and respondents are asked to improve upon the ideas against the second criterion. The process is repeated for three or more rounds.
In the laboratory, directed brainstorming has been found to almost triple the productivity of groups over electronic brainstorming.[9]
[edit] Individual brainstorming
"Individual Brainstorming" is the use of brainstorming on a solitary basis. It typically includes such techniques as free writing, free speaking, word association, and the "spider web," which is a visual note taking technique in which a people diagram their thoughts. Individual brainstorming is a useful method in creative writing and has been shown to be superior to traditional group brainstorming.[10]
[edit] Other variations
One of the problems can be to find the best questions to ask. This has been called questorming.[11] Another of the problems for brainstorming can be to find the best evaluation methods for a problem.
[edit] Conclusion
Brainstorming is a popular method of group interaction in both educational and business settings. Although it does not appear to provide a measurable advantage in creative output, brainstorming is an enjoyable exercise that is typically well received by participants. Newer variations of brainstorming seek to overcome barriers like production blocking and may well prove superior to the original technique. How well these newer methods work, and whether or not they should still be classified as brainstorming, are questions that require further research before they can be answered.
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Brainstorming is a group creativity technique designed to generate a large number of ideas for the solution to a problem. The method was first popularized in the late 1930s by Alex Faickney Osborn in a book called Applied Imagination. Osborn proposed that groups could double their creative output by using the method of brainstorming.[1]
Although brainstorming has become a popular group technique, researchers have generally failed to find evidence of its effectiveness for enhancing either quantity or quality of ideas generated. Because of such problems as distraction, social loafing, evaluation apprehension, and production blocking, brainstorming groups are little more effective than other types of groups, and they are actually less effective than individuals working independently.[2][3][4] In the Encyclopedia of Creativity, Tudor Rickards provides the article on brainstorming, summarizing the controversies. He also indicates the dangers of conflating productivity in group work with quantity of ideas.[5]
There have been numerous attempts to improve brainstorming or replace it with more effective variations of the basic technique. Although traditional brainstorming may not increase the productivity of groups, it may still provide benefits, such as enhancing the enjoyment of group work and improving morale. It may also serve as a useful exercise for team building.
Use of the term "brainstorming" has been criticized on the grounds that it is politically incorrect and offensive to people with epilepsy.[6] However, a 2005 survey by the UK charity National Society for Epilepsy found that 93 per cent of people with the condition surveyed do not find the word offensive.[7]
Contents
[hide]
• 1 Approach
• 2 Outline of the method
o 2.1 Set the problem
o 2.2 Create a background memo
o 2.3 Select participants
o 2.4 Create a list of lead questions
o 2.5 Session conduct
o 2.6 The process
o 2.7 Evaluation
• 3 Variations
o 3.1 Nominal group technique
o 3.2 Group passing technique
o 3.3 Team idea mapping method
o 3.4 Electronic brainstorming
o 3.5 Directed brainstorming
o 3.6 Individual brainstorming
o 3.7 Other variations
• 4 Conclusion
• 5 See also
• 6 References
[edit] Approach
There are four basic rules in brainstorming.[8] These are intended to reduce the social inhibitions that occur in groups and therefore stimulate the generation of new ideas. The expected result is a dynamic synergy that will dramatically increase the creativity of the group.
1. Focus on quantity: This rule is a means of enhancing divergent production, aiming to facilitate problem solving through the maxim, quantity breeds quality. The assumption is that the greater the number of ideas generated, the greater the chance of producing a radical and effective solution.
2. No criticism: It is often emphasized that in group brainstorming, criticism should be put 'on hold'. Instead of immediately stating what might be wrong with an idea, the participants focus on extending or adding to it, reserving criticism for a later 'critical stage' of the process. By suspending judgment, one creates a supportive atmosphere where participants feel free to generate unusual ideas.
3. Unusual ideas are welcome: To get a good and long list of ideas, unusual ideas are welcomed. They may open new ways of thinking and provide better solutions than regular ideas. They can be generated by looking from another perspective or setting aside assumptions.
4. Combine and improve ideas: Good ideas can be combined to form a single very good idea, as suggested by the slogan "1+1=3". This approach is assumed to lead to better and more complete ideas than merely generating new ideas alone. It is believed to stimulate the building of ideas by a process of association.
Diagram of a brainstorming session
[edit] Outline of the method
[edit] Set the problem
One of the most important things to do before a session is to define the problem. The problem must be clear, not too big, and captured in a definite question such as "What service for mobile phones is not available now, but needed?". If the problem is too big, the chairman should divide it into smaller components, each with its own question. Some problems are multi-dimensional and non-quantified, for example "What are the aspects involved in being a successful entrepreneur?". Finding solutions for this kind of problem can be done with morphological analysis (problem-solving).
[edit] Create a background memo
The background memo is the invitation and informational letter for the participants, containing the session name, problem, time, date, and place. The problem is described in the form of a question, and some example ideas are given. The ideas are solutions to the problem, and used when the session slows down or goes off-track. The memo is sent to the participants at least two days in advance, so that they can think about the problem beforehand.
[edit] Select participants
The chairman composes the brainstorming panel, consisting of the participants and an idea collector. Ten or fewer group members are generally more productive than larger groups. Many variations are possible but the following composition is suggested.
• Several core members of the project who have proved themselves.
• Several guests from outside the project, with affinity to the problem.
• One idea collector who records the suggested ideas.
[edit] Create a list of lead questions
During the brainstorm session the creativity may decrease. At this moment, the chairman should stimulate creativity by suggesting a lead question to answer, such as Can we combine these ideas? or How about a look from another perspective?. It is advised to prepare a list of such leads before the session begins.
[edit] Session conduct
The chairperson leads the brainstorming session and ensures that the basic rules are followed. The activities of a typical session are:
1. A warm-up session, to expose novice participants to the criticism-free environment. A simple problem is brainstormed, for example What should be the next corporate Christmas present? or What can be improved in Microsoft Windows?.
2. The chairman presents the problem and gives a further explanation if needed.
3. The chairman asks the brainstorming panel for their ideas.
4. If no ideas are coming out, the chairman suggests a lead to encourage creativity.
5. Every participant presents his or her idea, and the idea collector records them.
6. If more than one participant has ideas, the chairman lets the most associated idea be presented first. This selection can be done by looking at the body language of the participants, or just by asking for the most associated idea.
7. The participants try to elaborate on the idea, to improve the quality.
8. When time is up, the chairman organizes the ideas based on the topic goal and encourages discussion. Additional ideas may be generated.
9. Ideas are categorized.
10. The whole list is reviewed to ensure that everyone understands the ideas. Duplicate ideas and obviously infeasible solutions are removed.
11. The chairman thanks all participants and gives each a token of appreciation.
Process of conducting a brainstorming session
[edit] The process
• Participants who have an idea but no possibility to present it are encouraged to write down their idea and present it later.
• The idea collector should number the ideas, so that the chairperson can use the number to encourage quantitative idea generation, for example: We have 44 ideas now, let’s get it to 50!.
• The idea collector should repeat the idea in the words he or she has written it, to confirm that it expresses the meaning intended by the originator.
• When more participants are having ideas, the one with the most associated idea should have priority. This to encourage elaboration on previous ideas.
• During the brainstorming session the attendance of managers and superiors is strongly discouraged, as it may inhibit and reduce the effect of the four basic rules, especially the generation of unusual ideas.
[edit] Evaluation
Brainstorming is not just about generating ideas for others to evaluate and select. Usually the group itself will, in its final stage, evaluate the ideas and select one as the solution to the problem proposed to the group.
• The solution should not require resources or skills the members of the group do not have or cannot acquire.
• If acquiring additional resources or skills is necessary, that needs to be the first part of the solution.
• There must be a way to measure progress and success.
• The steps to carry out the solution must be clear to all, and amenable to being assigned to the members so that each will have an important role.
• There must be a common decision making process to enable a coordinated effort to proceed, and to reassign tasks as the project unfolds.
• There should be evaluations at milestones to decide whether the group is on track toward a final solution.
• There should be incentives to participation such that participants maintain their efforts.
[edit] Variations
[edit] Nominal group technique
The nominal group technique is a type of brainstorming that encourages all participants to have an equal say in the process. It is also used to generate a ranked list of ideas.
Participants are asked to write down their ideas anonymously. Then the moderator collects the ideas and each is voted on by the group. The vote can be as simple as a show of hands in favor of a given idea. This process is called distillation.
After distillation, the top ranked ideas may be sent back to the group or to subgroups for further brainstorming. For example, one group may work on the color required in a product. Another group may work on the size, and so forth. Each group will come back to the whole group for ranking the listed ideas. Sometimes ideas that were previously dropped may be brought forward again once the group has re-evaluated the ideas.
It is important for the moderator to have received training in this process before attempting to take on the moderating task. The group should be primed and encouraged to embrace the process. Like all team efforts, it may take a few practice sessions to train the team in the method before tackling the important ideas.
[edit] Group passing technique
Each person in a circular group writes down one idea, and then passes the piece of paper to the next person in a clockwise direction, who adds some thoughts. This is repeated until everybody gets their original piece of paper back. By this time, it is likely that the group will have extensively elaborated on each idea.
A popular alternative to this technique is to create an "Idea Book" and post a distribution list or routing slip to the front of the book. On the inside cover (or first page) is a description of the problem. The first person to receive the book lists his or her ideas and then routes the book to the next person on the distribution list. The second person can log new ideas or add to the ideas of the previous person. This continues until the distribution list is exhausted. follow-up "read out" meeting is then held to discuss the ideas logged in the book. This technique takes longer, but allows individual thought whenever the person has time to think deeply about the problem.
[edit] Team idea mapping method
This method of brainstorming works by the method of association. It may improve collaboration and increase the quantity of ideas, and is designed so that all attendees participate and no ideas are rejected.
The process begins with a well-defined topic. Each participant creates an individual brainstorm around the topic. All the ideas are then merged into one large idea map. During this consolidation phase, the participants may discover a common understanding of the issues as they share the meanings behind their ideas. As the sharing takes place, new ideas may arise by the association. Those ideas are added to the map as well. Then ideas are generated on both individual and group levels. Once all the ideas are captured, the group can prioritize and/or take action.
[edit] Electronic brainstorming
Electronic brainstorming is a computerized version of the manual brainwriting technique. It can be done via email. The chairman or facilitator sends the question out to group members, and they contribute independently by sending their ideas directly back to the facilitator. The facilitator then compiles a list of ideas and sends it back to the group for further feedback. Electronic brainstorming eliminates many of the problems of standard brainstorming, such as production blocking and evaluation apprehension. An additional advantage of this method is that all ideas can be archived electronically in their original form, and then retrieved later for further thought and discussion. Electronic brainstorming also enables much larger groups to brainstorm on a topic than would normally be productive in a traditional brainstorming session. Other forms of electronic brainstorming could be browser based, client / server, or peer to peer related software.
[edit] Directed brainstorming
Directed brainstorming is a variation on electronic brainstorming (brainwriting) described above. It can be done manually or with computer technology. Directed brainstorming works when the solution space (that is, the criteria for evaluating a good idea) is known prior to the session. If known, that criteria can be used to intentionally constrain the ideation process. In directed brainstorming, each participant is given one sheet of paper (or electronic form) and told the brainstorming question. They are asked to produce one response and stop. At that point all of the papers (or forms) are randomly swapped among the participants. Each, then, has possession of someone else's form containing a single response. The participants are asked to look at the idea in front of them and create a new idea that is better than that idea on the first criterion dimension. For example, if the first criterion was "low cost" the participants might be asked to improve upon the idea in front of them by creating an idea that is lower in cost. The forms are then swapped again and respondents are asked to improve upon the ideas against the second criterion. The process is repeated for three or more rounds.
In the laboratory, directed brainstorming has been found to almost triple the productivity of groups over electronic brainstorming.[9]
[edit] Individual brainstorming
"Individual Brainstorming" is the use of brainstorming on a solitary basis. It typically includes such techniques as free writing, free speaking, word association, and the "spider web," which is a visual note taking technique in which a people diagram their thoughts. Individual brainstorming is a useful method in creative writing and has been shown to be superior to traditional group brainstorming.[10]
[edit] Other variations
One of the problems can be to find the best questions to ask. This has been called questorming.[11] Another of the problems for brainstorming can be to find the best evaluation methods for a problem.
[edit] Conclusion
Brainstorming is a popular method of group interaction in both educational and business settings. Although it does not appear to provide a measurable advantage in creative output, brainstorming is an enjoyable exercise that is typically well received by participants. Newer variations of brainstorming seek to overcome barriers like production blocking and may well prove superior to the original technique. How well these newer methods work, and whether or not they should still be classified as brainstorming, are questions that require further research before they can be answered.
QUALITY COST ANALYSIS
Quality Cost Analysis: Benefits and Risks
Copyright © Cem Kaner
January, 1996
"Because the main language of [corporate management] was money, there emerged the concept of studying quality-related costs as a means of communication between the quality staff departments and the company managers."[1]
Joseph Juran, one of the world’s leading quality theorists, has been advocating the analysis of quality-related costs since 1951, when he published the first edition of his Quality Control Handbook. Feigenbaum made it one of the core ideas underlying the Total Quality Management movement.[2] It is a tremendously powerful tool for product quality, including software quality.
What is Quality Cost Analysis?
Quality costs are the costs associated with preventing, finding, and correcting defective work. These costs are huge, running at 20% - 40% of sales. [3] Many of these costs can be significantly reduced or completely avoided. One of the key functions of a Quality Engineer is the reduction of the total cost of quality associated with a product.
Here are six useful definitions, as applied to software products. Figure 1 gives examples of the types of cost. Most of Figure 1’s examples are (hopefully) self-explanatory, but I’ll provide some additional notes on a few of the costs:[4]
o Prevention Costs: Costs of activities that are specifically designed to prevent poor quality. Examples of "poor quality" include coding errors, design errors, mistakes in the user manuals, as well as badly documented or unmaintainably complex code.
Note that most of the prevention costs don’t fit within the Testing Group’s budget. This money is spent by the programming, design, and marketing staffs.
o Appraisal Costs: Costs of activities designed to find quality problems, such as code inspections and any type of testing.
Design reviews are part prevention and part appraisal. To the degree that you’re looking for errors in the proposed design itself when you do the review, you’re doing an appraisal. To the degree that you are looking for ways to strengthen the design, you are doing prevention.
o Failure Costs: Costs that result from poor quality, such as the cost of fixing bugs and the cost of dealing with customer complaints.
o Internal Failure Costs: Failure costs that arise before your company supplies its product to the customer. Along with costs of finding and fixing bugs are many internal failure costs borne by groups outside of Product Development. If a bug blocks someone in your company from doing her job, the costs of the wasted time, the missed milestones, and the overtime to get back onto schedule are all internal failure costs.
For example, if your company sells thousands of copies of the same program, you will probably print several thousand copies of a multi-color box that contains and describes the program. You (your company) will often be able to get a much better deal by booking press time with the printer in advance. However, if you don’t get the artwork to the printer on time, you might have to pay for some or all of that wasted press time anyway, and then you may have to pay additional printing fees and rush charges to get the printing done on the new schedule. This can be an added expense of many thousands of dollars.
Some programming groups treat user interface errors as low priority, leaving them until the end to fix. This can be a mistake. Marketing staff need pictures of the product’s screen long before the program is finished, in order to get the artwork for the box into the printer on time. User interface bugs — the ones that will be fixed later — can make it hard for these staff members to take (or mock up) accurate screen shots. Delays caused by these minor design flaws, or by bugs that block a packaging staff member from creating or printing special reports, can cause the company to miss its printer deadline.
Including costs like lost opportunity and cost of delays in numerical estimates of the total cost of quality can be controversial. Campanella (1990) [5] doesn’t include these in a detailed listing of examples. Gryna (1988)[6] recommends against including costs like these in the published totals because fallout from the controversy over them can kill the entire quality cost accounting effort. I include them here because I sometimes find them very useful, even if it might not make sense to include them in a balance sheet.
o External Failure Costs: Failure costs that arise after your company supplies the product to the customer, such as customer service costs, or the cost of patching a released product and distributing the patch.
External failure costs are huge. It is much cheaper to fix problems before shipping the defective product to customers.
Some of these costs must be treated with care. For example, the cost of public relations efforts to soften the publicity effects of bugs is probably not a huge percentage of your company’s PR budget. You can’t charge the entire PR budget as a quality-related cost. But any money that the PR group has to spend to specifically cope with potentially bad publicity due to bugs is a failure cost.
I’ve omitted from Figure 1 several additional costs that I don’t know how to estimate, and that I suspect are too often too controversial to use. Of these, my two strongest themes are cost of high turnover (people quit over quality-related frustration — this definitely includes sales staff, not just development and support) and cost of lost pride (many people will work less hard, with less care, if they believe that the final product will be low quality no matter what they do.)
o Total Cost of Quality: The sum of costs: Prevention + Appraisal + Internal Failure + External Failure.
Figure 1. Examples of Quality Costs Associated with Software Products.
| Prevention | Appraisal |
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| Internal Failure | External Failure |
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What Makes this Approach Powerful?
Over the long term, a project (or corporate) cost accounting system that tracks quality-related costs can be a fundamentally important management tool. This is the path that Juran and Feigenbaum will lead you down, and they and their followers have frequently and eloquently explained the path, the system, and the goal.
I generally work with young, consumer-oriented software companies who don’t see TQM programs as their top priority, and therefore my approach is more tactical. There is significant benefit in using the language and insights of quality cost analysis, on a project/product by project/product basis, even in a company that has no interest in Total Quality Management or other formal quality management models.[12]
Here’s an example. Suppose that some feature has been designed in a way that you believe will be awkward and annoying for the customer. You raise the issue and the project manager rejects your report as subjective. It’s "not a bug." Where do you go if you don’t want to drop this issue? One approach is to keep taking it to higher-level managers within product development (or within the company as a whole). But without additional arguments, you’ll often keep losing, without making any friends in the process.
Suppose that you change your emphasis instead. Rather than saying that, in your opinion, customers won’t be happy, collect some other data:[13]
o Ask the writers: Is this design odd enough that it is causing extra effort to document? Would a simpler design reduce writing time and the number of pages in the manual?
o Ask the training staff: Are they going to have to spend extra time in class, and to write more supplementary materials because of this design?
o Ask Technical Support and Customer Service: Will this design increase support costs? Will it take longer to train support staff? Will there be more calls for explanations or help? More complaints? Have customers asked for refunds in previous versions of the product because of features designed like this one?
o Check for related problems: Is this design having other effects on the reliability of the program? Has it caused other bugs? (Look in the database.) Made the code harder to change? (Ask the programmers.)
o Ask the sales staff: If you think that this feature is very visible, and visibly wrong, ask whether it will interfere with sales demonstrations, or add to customer resistance.
o What about magazine reviews? Is this problem likely to be visible enough to be complained about by reviewers? If you think so, check your impression with someone in Marketing or PR.
You won’t get cost estimates from everyone, but you might be able to get ballpark estimates from most, along with one or two carefully considered estimates. This is enough to give you a range to present at the next project meeting, or in a follow-up to your original bug report. Notice the difference in your posture:
o You’re no longer presenting your opinion that the feature is a problem. You’re presenting information collected from several parts of the company that demonstrates that this feature’s design is a problem.
o You’re no longer arguing that the feature should be changed just to improve the quality. No one else in the room can posture and say that you’re being "idealistic" whereas a more pragmatic, real-world businessperson wouldn’t worry about problems like this one. Instead, you’re the one making the hard-nosed business argument, "This design is going to cost us $X in failure costs. How much will it cost to fix it?"
o Your estimates are based on information from other stakeholders in this project. If you’ve fairly represented their views, you’ll get support from them, at least to the extent of them saying that you are honestly representing the data you’ve collected.
Along with arguing about individual bugs, or groups of bugs, this approach opens up opportunities for you (and other non-testers who come to realize the power of your approach) to make business cases on several other types of issues. For example:
o The question of who should do unit testing (the programmers, the testers, or no one) can be phrased and studied as a cost-of-quality issue. The programmers might be more efficient than testers who don’t know the code, but the testers might be less expensive per hour than the programmers, and easier to recruit and train, and safer (unlike newly added programmers, new testers can’t write new bugs into the code) to add late in the project.
o The depth of the user manual’s index is a cost-of-quality issue. An excellent index might cost 35 indexer-minutes per page of the manual (so a 200 page book would take over three person-weeks to index). Trade this cost against the reduction in support calls because people can find answers to their questions in the manual.
o The best investment to achieve better quality might be additional training and staffing of the programming group (prevent the bugs rather than find and fix them).
o You (in combination with the Documentation, Marketing, or Customer Service group) might demonstrate that the user interface must be fixed and frozen sooner because of the impact of late changes on the costs of developing documentation, packaging, marketing collaterals, training materials, and support materials.
Implementation Risks
Gryna (1988) [14] and Juran & Gryna (1980) [15] point out several problems that have caused cost-of-quality approaches to fail. I’ll mention two of the main ones here.
First, it’s unwise to try to achieve too much, too fast. For example, don’t try to apply a quality cost system to every project until you’ve applied it successfully to one project. And don’t try to measure all of the costs, because you probably can’t. [16]
Second, beware of insisting on controversial costs. Gryna (1988) [17] points out several types of costs that other managers might challenge as not being quality-related. If you include these costs in your totals (such as total cost of quality), some readers will believe that you are padding these totals, to achieve a more dramatic effect. Gryna’s advice is to not include them. This is usually wise advice, but it can lead you to underestimate your customer’s probable dissatisfaction with your product. As we see in the next section, down that road lies LawyerLand.
The Dark Side of Quality Cost Analysis
Quality Cost Analysis looks at the company’s costs, not the customer’s costs. The manufacturer and seller are definitely not the only people who suffer quality-related costs. The customer suffers quality-related costs too. If a manufacturer sells a bad product, the customer faces significant expenses in dealing with that bad product.
The Ford Pinto litigation provided the most famous example of a quality cost analysis that evaluated company costs without considering customers’ costs from the customers’ viewpoint. Among the documents produced in these cases was the Grush-Saunby report, which looked at costs associated with fuel tank integrity. The key calculations appeared in Table 3 of the report: [18]
| Benefits and Costs Relating to Fuel Leakage Associated with the Static Rollover Test Portion of FMVSS 208 |
| Benefits Savings — 180 burn deaths, 180 serious burn injuries, 2100 burned vehicles Unit Cost -- $200,000 per death, $67,000 per injury, $700 per vehicle Total Benefit — 180 x ($200,000) + 180 x ($67,000) + 2100 x ($700) = $49.5 million. |
| Costs Sales — 11 million cars, 1.5 million light trucks. Unit Cost -- $11 per car, $11 per truck Total Cost — 11,000,000 x ($11) + 1,500,000 x ($11) = $137 million. |
In other words, it looked cheaper to pay an average of $200,000 per death in lawsuit costs than to pay $11 per car to prevent fuel tank explosions. Ultimately, the lawsuit losses were much higher. [19]
This kind of analysis didn’t go away with the Pinto. For example, in the more recent case of General Motors Corp. v. Johnston (1992), [20] a PROM controlled the fuel injector in a pickup truck. The truck stalled because of a defect in the PROM and in the ensuing accident,
Most software failures don’t lead to deaths. Most software projects involve conscious tradeoffs among several factors, including cost, time to completion, richness of the feature set, and reliability. There is nothing wrong with doing this type of business tradeoff, consciously and explicitly, unless you fail to take into account the fact that some of the problems that you leave in the product might cost your customers much, much more than they cost your company. Figure 2 lists some of the external failure costs that are borne by customers, rather than by the company.
Figure 2. Comparison of External Failure Costs Borne by the Buyer and the Seller
| Seller: external failure costs | Customer: failure costs |
| These are the types of costs absorbed by the seller that releases a defective product. | These are the types of costs absorbed by the customer who buys a defective product. |
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The point of quality-related litigation is to transfer some of the costs borne by a cheated or injured customer back to the maker or seller of the defective product. The well-publicized cases are for disastrous personal injuries, but there are plenty of cases against computer companies and software companies for breach of contract, breach of warranty, fraud, etc.
The problem of cost-of-quality analysis is that it sets us up to underestimate our litigation and customer dissatisfaction risks. We think, when we have estimated the total cost of quality associated with a project, that we have done a fairly complete analysis. But if we don’t take customers’ external failure costs into account at some point, we can be surprised by huge increased costs (lawsuits) over decisions that we thought, in our incomplete analyses, were safe and reasonable.
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