International Executive Master of Business

Administration

Operation Management

OPS 600Lecturer

Dr. Jeremy Tan

StudentSashitharan V.A.Velayuthan

MAL14030

AssignmentAssignment 1 - Case Study Nissan Cranston

Word Count4077 excluding

Table of ContentsDiagrams and Tables

Literatures

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Date10 May 2014

Table of Contents

Synopsis of the Case Study – Nissan CranstonPage 1-4

Timeline and Sequence of Events – Table 1Nissan Cranston Work Flow Processes – Table 2

Literature Page 5-9 The Theory of Total Quality Management & Continuous Improvement

Total Quality management Tools

Table 3 Cause and Effect Diagram Nissan CranstonPage 10

Question 1 With the aid of a cause and effect diagram, suggest and discusspossible Page11-14causes for the very many quality problems in repairing the carAnswer

Table 4 Operation Management ProcessPage11

Question 2 Page14-17Discuss, with reasons, the most probable causeAnswerTable 5 – Cause and Effect Analysis Diagram (Body Shop)Table 6 – Cause and Effect Analysis Diagram (Service Department)Table 7 – Cause and Effect Diagram (Management)

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Question 3 Page17-

19 What should the General Manager do to address the quality

problems?.

Answer

Question 4 Page20-28Suggest action, by applying TQM principles, to prevent therecurrence of such quality problems and bring the organisation to ahigher level of service in car maintenanceAnswerLiteratureISO:9000 Page 20The Lean Six Sigma Theory

Page 23Lean EnterpriseSix Sigma RoadmapTable 8 Six Sigma DMAIC Roadmap

Page23-25Table 9 Continuous Improvement Flowchart

Page 26Table 10 Deming’s PDCA Techniques

Page 27

References Page 28

Synopsis of the Nissan Cranston Case Study

The Nissan Cranston case study is a peculiar case of how the owner

of a Nissan 300ZX sent his vehicle to Nissan Cranston service

centre for some body work repair due to rust problems identified.

The customer's nightmarish journey began from the onset through a

series of irresponsible and contentious operational issues at

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Nissan Cranston which had left the customer dissatisfied with the

work rendered and in consequence, burnt a big hole in his pocket.

To enable us to visualise the sequence of events and the problems

in detail. Kindly note the timeline provided in Table 1.

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Table 1 Timeline and the Sequence of Events

Nissan Cranston is an authorised Nissan car dealership operating in

United Kingdom with operation in car maintenance added to their

profile. Enabling customer to enjoy the privileges of a in house

maintenance and service centre.

The problems encountered by the customer at the body shop and

service centre is closely related to mismanagement and quality

related issues stemming from the poor standards operating

procedures implemented. In order to analyse the cause and effect,

it is paramount that a flow chart of the operations at the centre

be visited. Kindly note table 2 for Nissan Cranston’s body shop and

service centre operations.

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Table 2 Nissan Cranston’s body shop and service centre operations flow chart

In any functional operations of an auto service centre, the

operations should consist of a customer service (input phase) to

enable customers to interact and lodge their service requirements

and complains on any services rendered by the establishment,

followed with a quick response from the customer service to rectify

the situation in a timely situation. At the transformation phase ,

body shop and service operations are core functions with other

functions such as warehousing and inventory department, human

resource, finance and marketing assisting to smoothen out the whole

process. A standard operating procedure should be in place to

enable supervisors and employees to understand their functions

within their departments to facilitate smooth operational

transformation of the services. At the final phase, output – the

customer service department should be ever present to ensure that

customers are fully satisfied with the services rendered.

Throughout the entire phase the top and middle management plus the

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operation manager should be ever present managing their employees

to enable continuous quality processes to be advocated.

In the case of Nissan Cranston, there seems to a lack of

procedural systems in place to counter defects in services renders.

The flow chart above clearly indicates that the management of the

centre has not implemented total quality management throughout the

operational chain to ensure processes are stream lined.

Prior to analysing the cause and effect of the poor quality

management at Nissan Cranston. It is best that some parts of the

crucial quality management theories be introduced at this stage.

Some of the key quality management theories that I will introduce

and associate with in this case study are:-

Total Quality Management & Continuous Quality Improvement

The Theory of Total Quality Management & Continuous

Quality ImprovementA core definition of total quality management (TQM) describes a

management approach to long–term success through customer

satisfaction. In a TQM effort, all members of an organization

participate in improving processes, products, services, and the

culture in which they work. The methods for implementing this

approach come from the teachings of such quality leaders as Philip

B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa,

and Joseph M. Juran.

(ASQ, 2014)

The Primary Elements of TQM

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Total quality management can be summarized as a management system

for a customer-focused organization that involves all employees in

continual improvement. It uses strategy, data, and effective

communications to integrate the quality discipline into the culture

and activities of the organization.

(ASQ, 2014)

TQM principals

Customer Focused

The customer ultimately determines the level of quality. No matter

what an organization does to foster quality improvement—training

employees, integrating quality into the design process, upgrading

computers or software, or buying new measuring tools—the customer

determines whether the efforts were worthwhile.

Total employee involvement.

All employees participate in working toward common goals. Total

employee commitment can only be obtained after fear has been driven

from the workplace, when empowerment has occurred, and management

has provided the proper environment. High-performance work systems

integrate continuous improvement efforts with normal business

operations. Self-managed work teams are one form of empowerment.

(ASQ, 2014)

Leadership

Leaders establish unity of purpose, direction and the internal

environment of the organisation. They create the environment in

which people can become fully involved in achieving the

organisation's objectives.8 | P a g e

(ASQ, 2014)

Process-Centered

A fundamental part of TQM is a focus on process thinking. A process

is a series of steps that take inputs from suppliers (internal or

external) and transforms them into outputs that are delivered to

customers (again, either internal or external). The steps required

to carry out the process are defined, and performance measures are

continuously monitored in order to detect unexpected variation.

Integrated system

Although an organization may consist of many different functional

specialties often organized into vertically structured departments,

it is the horizontal processes interconnecting these functions that

are the focus of TQM.

Micro-processes add up to larger processes, and all processes

aggregate into the business processes required for defining and

implementing strategy. Everyone must understand the vision,

mission, and guiding principles as well as the quality policies,

objectives, and critical processes of the organization. Business

performance must be monitored and communicated continuously.

An integrated business system may be modeled after the Baldrige

National Quality Program criteria and/or incorporate the ISO 9000

standards. Every organization has a unique work culture, and it is

virtually impossible to achieve excellence in its products and

services unless a good quality culture has been fostered. Thus, an

integrated system connects business improvement elements in an

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attempt to continually improve and exceed the expectations of

customers, employees, and other stakeholders.

Strategic and systematic approach. A critical part of the

management of quality is the strategic and systematic approach to

achieving an organization’s vision, mission, and goals. This

process, called strategic planning or strategic management,

includes the formulation of a strategic plan that integrates

quality as a core component. (ASQ, 2014)

Continuous Process improvement

A major thrust of TQM is continual process improvement. Continual

improvement drives an organization to be both analytical and

creative in finding ways to become more competitive and more

effective at meeting stakeholder expectations.

(ASQ, 2014)

Fact-based decision making

In order to know how well an organization is performing, data on

performance measures are necessary. TQM requires that an

organization continually collect and analyse data in order to

improve decision making accuracy, achieve consensus, and allow

prediction based on past history.

(ASQ, 2014)

Communications

During times of organizational change, as well as part of day-to-

day operation, effective communications plays a large part in

maintaining morale and in motivating employees at all levels.

Communications involve strategies, method, and timeliness.10 | P a g e

These elements are considered so essential to TQM that many

organizations define them, in some format, as a set of core values

and principles on which the organization is to operate.

(ASQ, 2014)

Total Quality Management Tools – 7QC

Total Quality Management (TQM) and Total Quality Control (TQC)

literature make frequent

mention of seven basic tools. Kaoru Ishikawa contends that 95% of a

company's problems can be solved using these seven tools. The tools

are designed for simplicity. Only one, control charts require any

significant training. The tools are:

• Flow Charts

• Ishikawa Diagrams

• Checklists

• Pareto Charts

• Histograms

• Scatter grams

• Control Charts

For the purposes of this assignment, I shall be only discussing the

cause and effect analysis diagram otherwise known as the

Ishikawa/Fishbone Diagram(ASQ, 2014)

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Cause and Effect or Ishikawa/Fishbone Diagrams

Ishikawa diagrams are named after their inventor, Kaoru Ishikawa.

They are also called fishbone charts, after their appearance, or

cause and effect diagrams after their function. Their function is

to identify the factors that are causing an undesired effect (e.g.,

defects) for improvement action, or to identify the factors needed

to bring about a desired result (e.g., a winning proposal). The

factors are identified by people familiar with the process

involved. As a starting point, major factors could be designated

using the "four M's": Method, Manpower, Material, and Machinery; or

the "four P's": Policies, Procedures, People, and Plant. Factors

can be subdivided, if useful, and the identification of significant

factors is often a prelude to the statistical design of

experiments. (ASQ, 2014)

Illustrated below are the major causes which had a crucial impact

on the quality management at Nissan Cranston with reference to the

case study.

see next page

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CU STO M ER SER VICE BO D Y SH O P SER VICE D EPAR TM EN T M ARKETING

M AN AG EM EN T H U M AN R ESO U R CE FIN AN CE IN VEN TO R Y

PO O R M AN AG EM EN T

LACK O F M O TIVATIO N

N O T R ESPO N SIBLE

N O T IM PLEM EN TIN G

TQ M

N O T IM PLEM EN TIN G

SO P

N O T R ESPO N D IN G TO CU STO M ER SATISFACTIO N

N O LEAD ER SH IP

N O M O N ITO R IN G AN D EVALU ATIO N

N O SO P

PO O R JO B D ESCR IPTIO N

FIN AN CE D EPT N O T CO M M U N ICATIN G

W ITH O TH ER D EPAR TM EN T

N O SO P

N O T M O TIVATED

N O T R ESPO SIBLE

LACK O F U R G EN CY IN R EPAIR IN G VEH ICLES - N O R ESPO SIBILITY

N O Q C CH ECK - TQ M N O T IM PLEM EN TED

LACK O F FO CU SED D ECISIO N M AKIN G

N O T ASSIG N IN G O W N ER SH IP TO EM PLO YEES

N O TQ MN O TQ M

N O STAN D AR D O PER ATIN G

PR O CED U R E AN D R EPO R TIN G STAN D AR D S

N O PR O PER CO M M U N ICATIO N

W ITH IN D EPAR TM EN TS

CO M M U N IU CATIO N W ITH CU STO M ER S M U ST BE M IN IM AL BU T ESSEN TIAL

N O SU PER VISIO N

N O T M O TIVATED

LACK O F M AR KETIN G CO M M U N ICATIO N

N O M AR KETIN G & CU ISTO M ER SU R VEY D O N E

PO O R IN VEN TO R Y M AN AG EM EN T

STO CKS N O T R EPLEN ISH ED

LACK O F CO M M U N ICATIO N W ITH CU STO M ER

D AM AG E APPR AISAL &

VALU ATIO N N O T D O N E

LO G IN .LO G O U T N O T D O N E N O CR M SYSTEM

IN SPECTIO N N O T D O N E @ IN PU T

N O PR O PER SYSTEM IN

H AN D IN G O VER TO O TH ER

D EPAR TM EN TS / N O SO P

CS N O T IN VO LVED TH R O U G H O U T TR AN SITIO N PR O CESS

IN SPECTIO N N O T D O N E @ O U TPU T

PO O R R EPAIR IN G STAN D AR D S -

M ECH AN ICS M U ST BE R ETR AIN ED

W IR IN G PR O BLEM

N O SO P

N O Q C

LACK LEAD ER SH IP

NO SAP

'

POOR QUALITY M ANAGEM ENT @ NISSAN CRANSTON

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Table 3 Cause and Effect Analysis Diagram (template provided by the American Society of

Quality ASQ)

Question 1

The operations of Nissan Cranston a body shop and service centre

encompasses a series of operation processes which all begins when

the customer arrives at the centre to have his vehicle repaired and

in this case study, he was seeking to remedy his rust problems.

Cause 1

Arguably, the most significant process throughout the chain would

start at the input phase whereby, the customer service would be the

prime factor in determining the customer needs and ensuring the

satisfaction of the services rendered.

Table 4 Operation Management Process

At this stage, it not known whether Nissan Cranston had indeed a

customer services department to begin with. But to illustrate the

importance of a customer services department for the implementation

of a quality management program. I opined that the arrival of the

vehicle was registered by an employee of Nissan Cranston. In order

to facilitate the input process, a proper log in of for the

vehicle has to under taken so that the required body work can be

undertaken. An appraisal and valuation with the assistance of the

body shop manager would be essential and a proper lead time of the

completion of the body work can be assessed. On acceptance of the

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INPUT TRANSITION PROCESS OUTPUT

appraisal, valuation and lead time by the customer, a thorough

inspection of the vehicle should have been under taken to ensure

that there are no disputes therein. All these processes must be

documented and thereon the vehicle is transferred to the body shop

for the remedial works. Due to these inefficiencies, the customer

was dismayed by the malfunctioning courtesy light and disputed the

wiring problems arising after the completion of the body work. The

lead time for the completion was not met and no one conveyed this

message to the customer in a timely fashion.

Cause 2

The body shop remedial process is part of the transition process

where the actual work is done to ensure that the customer’s needs

are fully addressed. Although there were no complains on the rust

proofing and body work but pure irresponsibility by the bodywork

employees in ensuring other functions of the car are not in any way

effected by their tampering during the body work is essential. A

quality assessment of the work completed and troubleshooting all

systems in the vehicle should have been undertaken to ensure that

the car was in perfect operational condition prior to the deliver.

By sending the car dripping wet from a thoroughly rushed job does

not convince the customer in anyway.

Cause 3

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The services department total lack of teamwork was apparent during

this phase as the car was transfered from the body shop to the

services department to remedy the courtesy light malfunction. The

services department did see it fit to urgently fix the cause and

add to the grievance of the customer. They left the car unattended

over the holidays which took another 3 days. The sense of urgency

seems lacking in this department especially, if its, not their

responsibility. The service department manager lack of assuming the

responsibility of the remedial was appalling and his team of

mechanics and wire men were also incompetent. Out sourcing work to

subcontractors also shows that the service department lacks the

expertise to undertake specialise jobs. From the wiring problems to

the speedometer, rubber moulding to the security system, and a for

the encore, the dismantled rear view mirror. The services

departments should be revamped immediately.

Cause 4

The Inventory department was not fully stock for replacement parts

and the customer was aghast that since the problem was notified

earlier, the department response to ensure parts were available in

a timely fashion was lacking . It took them 5 days to react to

the shortage of parts.

Cause 5

The finance department’s co-ordination with the services department

in billing arrangements was not evident in the case study as the

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customer was repeatedly billed for damages that he was not liable

to. Since no inspection of the vehicle was undertaken at the input

level, it is high contentious that the customer would have to bear

the cost of repairs arising from incompetent services rendered.

Cause 6

The marketing department (if there was one), a core function of

operations department should have been aware of these setbacks on

their services. Lack of customer relations and communication is

evident as the customer dissatisfaction is not an isolated case as

the incompetency described in the case study is a total breakdown

of quality services throughout the operation chain. It is

inconceivable that the marketing department did not see this

coming.

Cause 7

The employees are the core intermediary between the management and

the pursuit to quality. The human resource department has to play

the crucial role of monitoring employee performances throughout the

chain and ensure that standard operating procedures are adhered to

at all times. The body shop and services department managers were

incompetent and did not discharge their duties in a professional

manner leading to general employee malice in attending to their

functions. Human resource should also encourage knowledge based

communication between the employees and ensure training is

undertaken to ensure professionalism in all their services.

Cause 8

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The main cause for all the break down in quality services must be

ultimately be shouldered by the management. The fact that the

General Manager of the outlet had to be made aware of the situation

at his centre through a letter from a dissatisfied customer, shows

that there a systematic break down of communication between the

middle management and top management. A further analysis of this

cause would be addressed in question number 2.

Question 2

From the analysis of the cause and effect diagram in Table 3 and by

isolating the root cause. The most probable cause for all the

systematic break down in services is stemmed from management issues

in addressing and implementing total quality management process

throughout their operations. To understand their role fully in the

poor quality management at Nissan Cranston, a root cause analysis

of the primary cause is essential.

The Theory of Root Cause Analysis

The root cause is “the evil at the bottom” that sets in motion the

entire cause-and-effect chain causing the problems. Some root cause

analysis approaches are geared more toward identifying true root

causes than others. Some are more general problem-solving

techniques, while others simply offer support for the core activity

of root cause analysis.

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Root Cause Analysis – Body Shop & Service Department

PRO CESS

HUM AN RESO URCE

NO EXPERTISE

NO SUPERVISIO N

BO DY SHO P Q UALITY PRO BLEM S

BAD REPO RTING STANDARDS

NO STANDARD O PERATING PRO CEDURE

NO Q UALITY CHECKS

NO M IS SYSTEM

NO CUSTO M ER SERVICE SUPPO RT

LACK O F URGENCY

Table 5 Cause and Effect Analysis Diagram (Body Shop)

PRO CESS

HUM AN RESO URCE

NO EXPERTISE

NO SUPERVISIO N

SERVICE DEPARTM ENT Q UALITY PRO BLEM S

BAD REPO RTING STANDARDS

NO STANDARD O PERATING PRO CEDURE

NO Q UALITY CHECKS

NO M IS SYSTEM

NO CUSTO M ER SERVICE SUPPO RT

LACK O F URGENCY

Table 6 Cause and Effect Diagram Analysis (Service Department)

From the analysis above , it is evident that the common denominator

for the causes in each for the department mirror each other

perfectly. All their problems relate back to the poor quality

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management and poor business process management at Nissan Cranston.

This is their initial root cause. But by asking the ourselves the 5

why’s of the root cause analysis. We will be notice that the

primary cause of the quality issues in Nissan Cranston is the

“Management”.

The management did not see fit, for the implementation of a clear

business process within the departments and they did not adhere to

standard operating procedures which I believe was not implemented.

Instituting proper quality management within their departments was

not evident due to the lack of know-how, expertise and training.

And department managers did not see it fit to resolve conflict

management with urgency. It both cases, customer relations was

well ignored with the most probable reason being that there was no

customer services department to begin with. Transfer of

responsibility from one department to another was not smooth due to

the non-existence of a management information system

One of the primary principle in quality management is ensure that

all process must lead to good customer satisfaction in a cost

efficient environment. And if the principle of urgency and

customers satisfaction not adhered to, it is no wonder that

everything in the vehicle kept falling apart.

In my opinion the “most probable cause” for the entire fiasco,

must be shouldered by the management of Nissan Cranston. Being a

primarily, a car dealers for Nissan exclusively, their primary

concern was sales and market of Nissan vehicles and not the

services aspect of the business.

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PROCESS

HUM AN RESO URCE

CO NTINUO US IM PRO VEM ENT

LACK O F EM PLO YEE

EM PO W ERM ENT

NO LEADERSHIP

NO T CUSTO M ER FO CUSED

NO FO CUSDED DECISIO N M AKING

M ANAGEM ENT PRO BLEM S

NO PRO PER BUSIO NESS PRO CESS

M ANAGM EM NT

NO T IM PLEM ENTING

TQ M

NO M IS SYSTEM

NO CUSTO M ER SERVICE SUPPO RT

Table 7 Cause and Effect Diagram (Management)

From the cause and effect diagram denoting the effect poor

management in Nissan Cranston body and services centre, the

philosophy of employee commitment to total quality management at

all aspects of their business process was lacking. For the problem

to be highlighted through a letter and not by the middle management

of the centre is rather embarrassing on the management. A clearly

defined business process by employing proper business process

management would indeed streamline the operations and empower the

middle management and their employees to adhere standard operating

procedures to the tee. No focused decision making was evident by

the middle management this lead to the lack of proper continuous

improvement in quality of their operations.

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The lack of leadership at the top management undermined the entire

organisation as manager and employees were not quality conscience,

with total disregard to upholding the first tenet of quality

improvement - to strive for customer satisfaction in services

rendered.

Question 3

As denoted from our cause and effect analysis of the quality

related issues in Nissan Cranston from Table 3-7, key areas that

the General Manager should concentrate on to initiate the quality

improvement transformation are

Business Process Management

By utilising the cause and effect analysis diagrams, the general

manager should initiate brainstorming session with manager and

employees to assess the causes of their quality issues. By

incorporating Statistical Process Control (SPC) which is an

industry-standard methodology for measuring and controlling quality

during the manufacturing process. Quality data in the form of

Product or Process measurements are obtained in real-time during

services rendered. This data is then plotted on a graph with pre-

determined control limits. Control limits are determined by the

capability of the process, whereas specification limits are

determined by the client's needs. By plotting these figures on a

control chart the management team can assess key process areas that

they should concentrate on. And in

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The general manager should incorporate a customer services

department and establish a management information system to enable

the services and body shop departments to be free of any non-

related work load and be focused on their expertise, which is to do

remedial work on vehicles.

A management information system would also be able to assist the

departments in forwarding remedial work reports, appraisals &

estimations, invoices, order completion and any other report

immediately to the customer service and the management for the

appropriate action.

The customer service department should be the fulcrum for all

departments liaison with customers and this would limit the

interaction of other operations department and reduce any

misleading statements to customers. A standard operating procedure

should be incorporated to enable appraisal, valuation and

inspection prior to the vehicle moving on to next operation

department. And as the vehicle moves on from one department to a

another, a report should be sent to the customer service on the

vehicles maintenance progress. If this department was incorporated

earlier, maybe the customer’s letter would not be needed as the

management would have known of the problem earlier and rectified

the issue immediately. The management should incorporate the

department immediately if they are serious on ensuring customer

satisfaction, improving quality and cost efficiency.

Total Quality Management Initiatives

The General Manager should incorporate key total quality management

principals with all middle management and operational departs to

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achieve continuous quality improvement. These principal values

should be ingrained and adhered to at all times and a statistical

analysis of performance should be undertaken on a real time basis

to gauge the level of efficiency.

TQM Principals Principle 1 – Customer focusPrinciple 2 – LeadershipPrinciple 3 – Involvement of peoplePrinciple 4 – Process approachPrinciple 5 – System approach to managementPrinciple 6 – Continual improvementPrinciple 7 – Factual approach to decision makingPrinciple 8 – Mutually beneficial supplier relationships

Human Resources

Another key area that the quality management initiatives should

focus on is on the employees. A happy employee always lead to total

customer satisfaction. The General Manager should enlist the

human resources department to motivate, ensure commitment and

getting employees to be more involved with the establishment.

Programs to Innovate and creativity must be allowed to flourish In

the establishment to promote a sense of belonging.

Employees must be accountable for their own performance must be

eager to participate in and contribute to continual improvement.

Employees must also accept ownership of problems and their

responsibility for solving work related issues timely.

Leadership

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Leadership can act as senior management's tool in implementing TQM

in two fundamental ways. First, by modelling the TQM philosophy and

principles within its departmental operations, leadership can serve

as a beachhead for the TQM process throughout the company. Second,

leadership, with senior management's support, can take the TQM

process company-wide by developing and delivering the long-term

training and development necessary for the major organizational

culture shift required by TQM.

In Nissan Cranston, senior leadership did not open communication

levels with the middle management and employees and this led to

poor quality management. They will have to address this situation

promptly as they could lose the loyalty of their customer on the

long run. By incorporating the following principals among the

leadership a new and efficient entity can be realised.

Considering the needs of all interested parties including

customers, owners, employees, suppliers, financiers, local

communities and society as a whole

Establishing a clear vision of the organization’s future

Setting challenging goals and targets

Creating and sustaining shared values, fairness and ethical

role models at all levels of the organization

Establishing trust and eliminating fear

Providing people with the required resources, training and

freedom to act with responsibility and accountability

Inspiring, encouraging and recognizing people’s contributions.

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In conclusion the General Manager of Nissan Cranston has to look at

himself, the leadership and the employees in bringing about total

quality management improvements to the organisation.

Question 4

The management of Nissan Cranston has to have a long term view if

they are to operate a successful service centre. Incorporating TQM

principals and ultimately getting certified for an ISO:9000 series

certification would indeed boost the image with their customers and

certainly increase the morale of the employees as the very thought

of working for an ISO:9000 series certified company would indeed

appease them. Although the only difference between employing TQM

principals in general and implementing ISO:9000 is in the cost and

not the system itself. The certification is indeed worth the

while, as customers would rather deal with a certified

establishment offering their services than an uncertified one. So

attaining a ISO certification will certainly bring Nissan Cranston

to a higher level in auto services sector.

A brief understanding of ISO:9000 series certification is as

follows:-

Literature ISO 9000 - Quality management

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The ISO 9000 family addresses various aspects of quality management

and contains some of ISO’s best known standards. The standards

provide guidance and tools for companies and organizations who want

to ensure that their products and services consistently meet

customer’s requirements, and that quality is consistently improved.

There are many standards in the ISO 9000 family, including:

ISO 9001:2008 - sets out the requirements of a quality

management system

ISO 9000:2005 - covers the basic concepts and language

ISO 9004:2009 - focuses on how to make a quality management

system more efficient and effective

ISO 19011:2011 - sets out guidance on internal and external

audits of quality management systems.

(ISO, 2014)

ISO 9001:2008

ISO 9001:2008 sets out the criteria for a quality management system

and is the only standard in the family that can be certified to

(although this is not a requirement). It can be used by any

organization, large or small, regardless of its field of activity.

In fact ISO 9001:2008 is implemented by over one million companies

and organizations in over 170 countries. (ISO, 2014)

To set Nissan Cranston to the path of total quality management and

to be certified, the establishment has to incorporate the

development of a quality management concept.

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Table 8 Development of the quality management concept

Quality Control Corrective Actions – Phase 1

The first phase would be the corrective action phase which is a

corrective action is a reaction to a problem that has already

occurred. It assumes that a non-conformance or problem exists and

has been reported by either internal (within the establishment) or

external sources (customers concern). The actions initiated are

intended to fix the problem and modify the quality system so that

the process that caused it is monitored to prevent a reoccurrence.

The documentation for a corrective action provides evidence that

the problem was recognized, corrected, and proper controls

installed to make sure that it does not happen again.

During this phase, the 7QC’s of TQM has to be employed by the

management and corrective measures has to be undertaken. Using TQM

tools to analyse the current situation especially employing

Statistical Process Control, internal non-conformance such as the

business process management and human resources issues highlighted

in the cause and effect diagram can be corrected. (Table3-7)

Quality Control Preventive Action – Phase 2

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On the next phase of achieving the certification, a preventive

action is initiated to stop a potential problem from occurring. It

assumes that adequate monitoring and controls are in place in the

quality system to assure that potential problems are identified and

eliminated before they happen. If something in the quality system

indicates that a possible problem is or may develop, a preventive

action must be implemented to avert and then eliminate the

potential situation. The documentation for a preventive action

provides evidence that an effective quality system has been

implemented that is able to anticipate, identify and eliminate

potential problems. Source on information pertaining to preventive

actions can be ascertained through analysing the following data:-

Service Request

Internal Quality Audit

Customer Complaint / Concern

Quality Assurance Inspection

Staff Observation

Trending Data

Risk Assessment

Process Performance Monitoring

Management Review

Failure Mode Analysis

Another system which Nissan Cranston can utilise during the

preventive action phase is by employing a lean six sigma approach

to quality management which promotes zero defects. Six Sigma is

a business improvement methodology that aims to maximize

shareholders’ value by improving quality, speed, customer

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satisfaction, and costs. It achieves this by merging tools and

principles from both Lean and Six Sigma. It has been widely

adopted widely in manufacturing and service industries, and its

success in some famous organizations. (Laureani, 2012). But

exponents may argue that incorporating is expensive and challenging

in terms of the establishments ability to be data driven, the

benefit outweigh the challenges. Some the benefits are listed

below:-

Ensuring services/products conform to what the

customer needs.

Removing non-value adding steps (waste) in critical business

processes.

Reducing the cost of poor quality.

Reducing the incidence of defective products/transactions.

Shortening the cycle time.

Delivering the correct product/service at the right time

in the right place.

The Lean Six Sigma Theory

Lean Enterprise(Laureani, 2012)

The Lean Enterprise is defined as an organization that creates

customer value through a process that systematically minimizes all

forms of waste. Forms of waste include: wasted capital (inventory),

wasted material (scrap), wasted time (cycle time), wasted human

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effort (inefficiency, rework), wasted energy (energy inefficiency),

and wasted environmental resources (pollution). By incorporation

lean management tools such as Deming’s PDCA tools ( Plan, Do, Check

and Act) with the six sigma quality management tool, Nissan

Cranston will is able to improve. One of the core problem of Nissan

Cranston was the numerous times that a rework was done on the

Nissan 300ZX, it all consumes time and money. This is known as

“waste” . Lean management tools would be reduce the amount of

“waste” which would ultimately improve quality efficiency,

time/speed and cost.

Six Sigma DMAIC Roadmap(Ducceschi, n.d.)

The Six Sigma DMAIC (Define, Measure, Analyse, Improve, Control)

methodology can be thought of as a roadmap for problem solving and

product/process improvement. By implementing six sigma strategy

into their operational processes, Nissan Cranston will be able to

reduce the defect variance from their processes which will enable

to prevent problems and achieve total quality management throughout

their operational chain. The following step in Table ---- are the

implementation methodology and requirements for a successful six

sigma deployment:-

DMAIC Phase Steps Tools UsedD – Define Phase: Define the project goals and customer (internal andexternal) deliverables.Define Customers and Requirements(CTQs)Develop Problem Statement, Goals and

Project CharterProcess FlowchartSIPOC Diagram

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BenefitsIdentify Champion, Process Owner andTeamDefine ResourcesEvaluate Key Organizational SupportDevelop Project Plan and MilestonesDevelop High Level Process Map

Stakeholder AnalysisDMAIC Work Breakdown StructureCTQ DefinitionsVoice of the Customer Gathering

Define Tollgate ReviewM – Measure Phase: Measure the process to determine currentperformance; quantify the problem.Define Defect, Opportunity, Unit andMetricsDetailed Process Map of AppropriateAreasDevelop Data Collection PlanValidate the Measurement SystemCollect the DataBegin Developing Y=f(x) RelationshipDetermine Process Capability andSigma Baseline

Process FlowchartData Collection Plan/ExampleBenchmarkingMeasurement System Analysis/GageR&RVoice of the Customer GatheringProcess Sigma Calculation

Measure Tollgate ReviewA – Analyze Phase: Analyze and determine the root cause(s) of thedefects.Define Performance ObjectivesIdentify Value/Non-Value AddedProcess StepsIdentify Sources of VariationDetermine Root Cause(s)Determine Vital Few x’s, Y=f(x)Relationship

HistogramPareto ChartTime Series/Run ChartScatter PlotRegression AnalysisCause and Effect/FishboneDiagram5 WhysProcess Map Review and AnalysisStatistical AnalysisHypothesis Testing (Continuousand Discrete)Non-Normal Data Analysis

Analyse Tollgate ReviewI – Improve Phase: Improve the process by eliminating defects.Perform Design of Experiments Brainstorming

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Develop Potential SolutionsDefine Operating Tolerances ofPotential SystemAssess Failure Modes of PotentialSolutionsValidate Potential Improvement byPilot StudiesCorrect/Re-Evaluate PotentialSolution

Mistake ProofingDesign of ExperimentsPugh MatrixQFD/House of QualityFailure Modes and EffectsAnalysis (FMEA)Simulation Software

Improve Tollgate Review

C – Control Phase: Control future process performance.Define and Validate Monitoring andControl SystemDevelop Standards and ProceduresImplement Statistical ProcessControlDetermine Process CapabilityDevelop Transfer Plan, Handoff toProcess OwnerVerify Benefits, CostSavings/Avoidance, Profit GrowthClose Project, FinalizeDocumentationCommunicate to Business, Celebrate

Process Sigma CalculationControl Charts (Variable andAttribute)Cost Savings CalculationsControl Plan

Control Tollgate Review

Table 8 Lean Six Sigma DMAIC Roadmap

(Ducceschi, n.d.)

Quality Management System – Phase 3

In order for the management to avert any possible treat to their

business process, quality management systems has to be in place.

The standard is based on a number of quality management principles

including a strong customer focus, the motivation and implication

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of top management, the process approach and continual improvement.

Using ISO 9001:2008 helps ensure that customers get consistent,

good quality products and services, which in turn brings many

business benefits. (ISO, 2014)

This is where the core principals of Total Quality Management and

ISO:9001:2008 converges. The similarities are there but there are

differences to be noted

ISO describes the functions and the actions that you need to be

able to have the minimum standard of quality systems in place. ISO

can be considered as a tool to implement TQM, and also has some

basic requirements like strict documentation for audit purposes.

You can easily monitor your records with this kind of management

program.

TQM focuses on finding the best and maximum results, and how to get

to them. It can be considered to be a management program based on

quality. TQM does not require any kind of documentation.

Achieving TQM – Phase 4

In my opinion, the fifth principal of ISO:9000 and TQM -

Continuous Improvement- is where the management of Nissan Cranston

should focus on and with their commitment towards Total Quality

Management will surely lead to an ISO certification.

Continuous improvement as a fifth principle of QMS (ISO

9001:2000) could not be realized without quality tools which are

presented through four groups of activities of Deming’s

quality cycle or PDCA-cycle. (Soković, 2008)

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Table 9 Continuous Improvement Process

Source: (Soković, 2008)

The PDCA-cycle is used to coordinate continuous improvement

efforts. It emphasizes and demonstrates that improvement

programs must start with careful planning, must result in effective

action, and must move on again to careful planning in a

continuous cycle – the Deming’s quality cycle is never-ending. It

is a strategy used to achieve breakthrough improvements in safety,

quality, morale, delivery cost, and other critical business

objectives.

The completion of one cycle continues with the beginning of

the next. A PDCA-cycle consists of four consecutive steps or

phases, as follows:

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Table 10 Deming’s PDCA Techniques

Plan

Analysis of what needs to be improved by taking into

consideration areas that hold opportunities for change. Decision on

what should be changed.

Do

implementation of the changes that are decided on in the Plan step.

Check

Control and measurement of processes and products in accordance to

changes made in previous steps and in accordance with policy, goals

and requirements on products. Report on results

Act

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Adoption or reaction to the changes or running the PDCA-cycle

through again. Keeping improvement on-going.

The main purpose of PDCA-cycle application lies in process

improvement. When process improvement starts with careful

planning, it results in corrective and preventive actions

supported by appropriate quality assurance tools which lead to

true process improvement. The management of Nissan Cranston will be

able closely monitor the quality management using this continuous

improvement tool.

Certification – Phase 4

By incorporating the total quality management/ ISO9001:2008

principals and ensuring quality management systems are in place to

counter check corrective and preventive actions by utilising the

7QC, Lean Six Sigma and PDCA management tools. Continuous

improvement in quality can be achieved throughout their operations

chain en route towards the ISO9001;2008 certification. For the

certification, Nissan Cranston would have to ensure that operating

manual, training procedures, total quality management is being

practised and audit be completed.

All the tumultuous processes in attaining the certification is for

one goal; to be able to provide quality services to customers which

will be Nissan Cranston competitive advantage in the auto services

sector.

End

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ReferencesASQ, A. S. f. Q., 2014. Deming’s 14 Points on Total Quality Management, s.l.: The Certified Manager of Quality / Organizational Excellence Handbook,.

Ducceschi, E., n.d. iSixSigma. [Online] Available at: http://www.isixsigma.com/new-to-six-sigma/dmaic/six-sigma-dmaic-roadmap/

ISO, 2014. (International Organization for Standardization (ISO). [Online] Available at: http://www.iso.org/iso/home/about.htm

Laureani, A., 2012. Lean Six Sigma in the Service Industry, s.l.: University of Strathclyde United Kingdom.

Soković, M., 2008. Basic Quality Tools in Continuous Improvement Process.Journal of Mechanical Engineering .

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