21050078-Total-Productivity-and-Quality-Management

Changing the shape of the world In 1853, Elisha Graves Otis introduced the world’s first safety elevator in Yonkers, New York —changing the shape of the modern world.. The Escalator.Pr

Total Productivity and Quality Management

Natraj Korgaonkar

S.Y.B.M.S (A) - 46

Elevator Industry with Special Emphasis on

“Otis”

Changing the shape of the world

In 1853, Elisha Graves Otis introduced the world’s first safety elevator in Yonkers, New York —changing the shape of the modern world From that point forward, buildings could rise beyond the limitations of stairs Cities would have skylines Today, our pioneering spirit is as strong as it was when

we began With every new product and service, Otis is moving our industry, our company and our customers forward

Sharing strengths

Otis is part of United Technologies Corporation, a Fortune 500 company and world leader in the building systems and aerospace industries Sharing strengths with UTC allows Otis to draw on remarkable resources in

engineering, product testing, purchasing, marketing and information systems Otis brings all these strengths to bear in creating better solutions for our customers

Safety first…

The vertical transportation of people and materials to otherwise unobtainable heights was extremely hazardous until Elisha Graves Otis invented the “Elevator safety” in 1852 For ages, man had struggled with various means to transport heavy loads to higher places By today’s standards, all were unsafe and most unsuccessful.

Otis’ safety consisted of a wagon spring and a rack with teeth (ratchet) on the guide rails If the hoist rope broke, the tension was released from the wagon spring allowing it to engage the ratchet and bring the car to a stop.

The pioneering work of Elisha Graves Otis was carried by his sons, Charles and Norton Many refinement have followed, but the concept is still “Safety First”.

Mr.Elisha Graves Otis displaying the first elevator.

Otis has mastered itself in the field of elevators since 1852 Ever since

Mr Otis introduced the first elevator to the world, there has been development carried through ages Otis Elevator has now three main categories of products with different models in each section They are as follows:

 Passenger Elevators

 Cargo/ goods Elevators.

The elevator from outside The Escalator.

Production Process

The design and production of any of the elevators is done in Taiwan and in Korea Unfortunately there is no Elevator company in India which has

a production plant or factory in the country

All the companies along with Otis have their design and production plants outside the country They only assemble and re-engineer the product

at the site where the elevator has to be erected This helps in saving a lot of technological cost because the company fins the technology cheap in the foreign markets And thus only importing the required parts becomes cheaper in India that producing elevators.

All the parts of the elevator or escalators are imported stored in the country Otis Elevators has its own stores department and an official head office in Mumbai at Nepensea Road and Kandivli respectively Thus as per the requirements of the workers working at various sites of the company the required goods or spare parts or the equipments are delivered to the site of erection or maintenance or both.

Currently the company undertakes jobs or erection of elevators and escalators at various new places and maintenance of erected elevators At times this may also include elevators produced by different companied for which Otis charges fee plus compensation.

Process of Erection of Elevators with Time and

Work Measurement:

As said earlier the company does not indulge itself in the production of elevators

in India and thus it imports all its requirements from its parent company across the globe,the company has a low cost advantage Thus the company only takes orders from theirclients and then order for the same and then erects the elevator or escalators at the sitegiven to them

Following is the synopsis of the erection process of elevators:

 Order:

The order of the product is the first main stage of the erection of an elevator As perthe clients’ requirements for the type of elevator, size composition, cost analysismaintenance etc, the company advices the clients for any change if required in theorder

The time taken for this process depends upon the negotiations and the companyand the clients’ relationship

 Actual erection process:

After the clients have given the company’s basic requirements that are necessaryfor erecting an elevator the actual process of erection begins This starts with buildingthe scaff-holdings (bamboo building structure) inside the hall way where one placesthe elevator and setting-up the machine room with the machine motor, brakeassembly, controller, governor and then the work to construct the shaft begins

 Combined work forces:

By the time the machine room is set, other group of workers start setting up thehall buttons, landing doors on each floor, fixtures and assembling the pit just belowthe ground floor The setting-up of the pit is the most important factor This is the onewhich allows the car-lift to rest and prevent it from going further underground In

other words, it prevents free-fall of the car-lift by the use of counter buffer and buffers.

The time taken for the same process is same as the above as both the works isdone at the same time

 Assembling of the main car-lift:

This the next stage in the erection of the car-lift in the hall-way This is done byfirst setting-up the guide rails which are about 16m each in height These are doneupto the ceiling roof Then the car-lift is set-up at the top floor with the counterweight

on the ground floor This is the main principle stage for the working of the elevator Ifthere is even a single mistake in determining the counterweight or assembling it right,the then whole elevator will crash within a second If there is a perfect balance thenthe steel ropes are attached to the car-lift and the counterweight through the machinemotor situated on the terrace just over the hall-way

Since this is the most crucial stage, takes around 8-10 days (for 6 storeyedbuilding) depending upon the height of the building

 Fixtures and buttons:

After setting-up the main frame of he elevator, the next stage is setting up thefixture, buttons in the car-lift, coordinating open and close doors at each andevery floor, testing each floor for reciprocal call etc

Sine this is minute but energy consuming process takes at least 6-8 days for anormal 6 storeyed building

Management by Objectives

Definition: -‘Management by Objectives’ is a comprehensive managerial system that

integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organizational and individual objectives.

Evolving Concepts in MBO:

 Early Impetus to MBO:

Since many centuries people have used their common sense and given importance to

management by objectives It was in 1954 that Peter F Drucker first emphasized that

objectives must be set in all areas where performance affects the health of the enterprise

About at the same time General Electric Co was using MBO in its reorganization

 Emphasis On Performance Appraisal:

In traditional appraisal programs personality traits were used for evaluatingsubordinates But when MBO was implemented emphasis was given on performancerather than personality which lead to self appraisal and self development The active

involvement of subordinates leads to commitment and creates an environment formotivation.

Emphasis on short-term objectives and motivation:

Individual goal setting is an important factor in motivating employees It is known thatperformance is higher when people have specific objectives than when they are askedsimply to do their best

 Inclusion Of Long Range Plan In MBO:

In MBO programs that emphasis performance appraisals and motivation the focus tends

to be on short term objectives, which may lead to undesirable managerial behaviour Due

to these short-comings many organization now include long range and strategic planning

in MBO programs

 The System Approach To MBO

MBO has undergone many changes It has been used in performance appraisals as aninstrument for motivating individual and in strategic planning But there are still othermanagerial subsystems that can be integrated into MBO process Various managerialactivities need to be integrated into a system For MBO to be a comprehensive system ofmanaging indicates that most key managerial activities can and should be integrated withthe MBO process The degree of integration however differs for individual activities ForMBO to be effective it has to be viewed as a comprehensive system and it must beconsidered as a way of managing and not an addiction to the managerial job

The Process of Managing By Objectives:

The process starts at the top of an organization and has the active support of the chiefexecutive, who gives direction to the organization It is not essential the objective settingstarts at the top It can start at the divisional level, at the marketing level or even lowerlevel

As in all planning, one of the critical need in MBO is the development anddissemination of consistent planning premises No manager can be expected to set goals

or establish plans and budgets without guidelines

Setting preliminary objectives at the top:

Given appropriate planning premises, the first step in setting objectives is for the topmanager to determine what he or she perceives to be the purpose or mission and the moreimportant goals of the enterprise for a given period ahead Certain goals should bescheduled for accomplishment in a much shorter period and others in a much longerperiod

The goals set by the superior are preliminary based on an analysis and judgment as towhat can and should be accomplished by the organization within a certain period This

requires taking into account the company’s strength and weakness in the light ofavailable opportunities and threats Most managers also find out the process of workingout goals with the subordinates reveals both problems they should deal with and theopportunities they were not previously aware of.

When setting objectives, the manager also establishes measure of goal accomplishment

If verifiable objectives are developed, these measures, whether in sale dollars profits,percentages, cost level, or program execution, will normally built into objectives

Clarifying Organizational Roles:

The relationship between expected results and the responsibility of attaining is oftenoverlooked Ideally, each goal and sub goal should be one particular person’sresponsibility Analyzing an organization structure, however, often reveals that theresponsibility is vague and the clarification or reorganization is needed Sometimes it isimpossible to structure an organization so that a given objective is someone’s personalresponsibility

Setting Subordinates Objectives:

After making sure that subordinate managers have been informed of pertinent generalobjectives, strategies, and planning premises, the superior can then proceed to work withsubordinates in setting their objectives The superiors ask what goals the subordinatesbelieve they can accomplish, in what time period and with what resources

Superiors must also be patient counsellors, helping their subordinates develop consistentand supportive objectives and being careful not to set goals that are impossible toachieve One of the things that can weaken a program by objectives is to allow managers

to set unrealistic objectives One of the major advantages of carefully setting up anetwork of verifiable goals and a requirement for doing so effectively is trying in theneed of capital, materials and human resources at the same time All managers at alllevels require these resources to accomplish their goals By relating these resources to thegoals themselves, superiors can better see the most effective and the most economicalway of allocating them

Recycling of objectives:

Objectives can hardly be set by starting at the top and dividing them up amongsubordinates nor should they be started from the bottom A degree of recycling is a must.Top managers may have some idea of what their subordinates’ objectives should be; butthey will almost certainly change these preconceived goals as the contributions of thesubordinates come into focus Thus setting objectives is not a joint process but also aninteractive one

Benefits of Management by Objectives:

1. Improvement of managing : Managing Sense in a Manager Improves.

2. Clarification of organization: Management by objectives forces managers to

clarify roles i.e organizational roles and structures

3. Encouragement of Personal Commitment: It encourages people to commit

themselves to their goals

4. Development of Effective Controls: MBO helps in effective planning, it alsoaids in developing effective controls

Weakness of Management by Objectives:

1 Failure to teach the philosophy of MBO.

2 Failure to give guidelines to goal setters.

3 Difficulty of setting goals.

4 MBO programs are set for short terms.

5 Danger of inflexibility.

Total Quality Management

Total Quality Management or TQM is a management strategy to embed awareness of

quality in all organizational processes Quality assurance through statistical methods is a key component TQM aims to do things right the first time, rather than need to fix

problems after they emerge or fester TQM may operate within quality circles, which encourage the meeting of minds of the workforce in different departments in order to improve production and reduce wastage

In a Otis, TQM generally starts by sampling a random selection of the product The sample is then tested for things that matter to the real customers The causes of any failures are isolated, secondary measures of the production process are designed, and thenthe causes of the failure are corrected The statistical distributions of important

measurements are tracked When parts' measures drift out of the error band, the process isfixed The error band is usually tighter than the failure band The production process is thereby fixed before failing parts can be produced

It's important to record not just the measurement ranges, but what failures caused them to

be chosen In that way, cheaper fixes can be substituted later, (say, when the produce is

redesigned), with no loss of quality After TQM has been in use, it's very common for parts to be redesigned so that critical measurements either cease to exist, or become muchwider

It took people a while to develop tests to find emergent problems One popular test is a

"life test" in which the sample product is operated until a part fails Another popular test

is called "shake and bake" The product is mounted on a vibrator in an environmental oven, and operated at progressively more extreme vibration and temperatures until something fails The failure is then isolated and engineers design an improvement

A commonly-discovered failure is for the product to come apart If fasteners fail, the improvements might be to use measured-tension nutdrivers to ensure that screws don't come off, or improved adhesives to ensure that parts remain glued

If a gearbox wears out first, a typical engineering design improvement might be to substitute a brushless stepper motor for a DC motor with a gearbox The improvement is that a stepper motor has no brushes or gears to wear out, so it lasts ten times or more longer The stepper motor is more expensive than a DC motor, but cheaper than a DC motor combined with a gearbox The electronics is radically different, but equally

expensive One disadvantage might be that a stepper motor can hum or whine, and usually needs noise-isolating mounts

Often a TQMed product is cheaper to produce (because there's no need to repair

dead-on-arrival products), and can yield an immensely more desirable product TQM can be applied to services (such as mortgage issue or insurance underwriting), or even normal

business paperwork TQM is not a focused improvement approach The customer desires

and product tests select what to fix Theoretical constraints are not considered at all

Scatter Diagrams

This tutorial is designed to allow the user to develop and interpret scatter

diagrams When the scatter diagram has been plotted from the data, the user can view several different graphs within the Interpretations, read the interpretation of the diagrams pattern, and be able to draw conclusions about the plotted diagram by comparing it to one

of the five possible graph patterns

Overview

Scatter diagrams are used to study possible relationships between two variables Although these diagrams cannot prove that one variable causes the other, they do indicatethe existence of a relationship, as well as the strength of that relationship

A scatter diagram is composed of a horizontal axis containing the measured values of onevariable and a vertical axis representing the measurements of the other variable

The purpose of the scatter diagram is to display what happens to one variable when another variable is changed The diagram is used to test a theory that the two variables

are related The type of relationship that exits is indicated by the slope of the diagram

significant relationship between two variables

Regression - an analysis method used to identify the exact nature of the relationship between two variables

Construction of Scatter Diagrams

Collect and construct a data sheet of 50 to 100 paired samples of data that you suspect to

be related Construct your data sheet as follows:

Car (elevator) Age (In Years) Price (In Dollars)

Plot the data on the diagram The resulting scatter diagram may look as follows:

Interpret the diagram See interpretation section of tutorial

1 The first pattern is positive correlation, that is, as the amount of variable x increases, the variable y also increases It is tempting to think this is a cause/effect relationship This

is an incorrect thinking pattern, because correlation does not necessarily mean causality This simple relationship could be caused by something totally different For instance, the two variables could be related to a third, such as curing time or stamping temperature Theoretically, if x is controlled, we have a chance of controlling y

2 Secondly, we have possible positive correlation, that is, if x increases, y will increase somewhat, but y seems to be caused by something other than x Designed experiments must be utilized to verify causality

3 We also have the no correlation category The diagram is so random that there is no apparent correlation between the two variables