1. Total Quality Management BUS 3 – 142 Tools of Quality Week of Mar 7, 2011

2. Page 2 2 Ishikawa’s Basic Seven (7) Tools of Quality –Process Maps – Check Sheets –Histograms –Scatter Plots –Control Charts –Cause & Effect (“Fishbone”) Diagrams –Pareto Analysis

3. Page 3 3 Process map Specific symbols for specific definitions Processing Decision Input / Output Start / Stop Flow Line Page Connector Create a flow chart, from beginning to end

4. Page 4 4 Steps in creating process maps –Communicate the purpose to impacted individuals –Observe behavior –Interview participants and stakeholdrrs –Review reports and outputs –Draw the flow chart using the symbols –Evaluate Value Added (VA) and Non Value Added (NVA) activities –Review multiple times to ensure accuracy and buy-in Use the map to streamline and simplify the process, including eliminating NVA steps Use the map for the Vision of the improved Future Process

5. Page 5 5 High Level Supply Chain Flow Product Planning Demand Planning Material Planning Master Production Scheduling Production Delivery & Service

6. Page 6 6 Forecast Process (Sample)

7. Page 7 7 7 Enter Items into Forecast (Sample)

8. Page 8 8 8 Work Example – Process Map for Future State Hub buffer below target Discrete Orders Revised Targets FGI / Hub Coverage? Start per Authorized Pool No Yes Fill from STX Stock Hub buffer below Target? No No Action Yes  xxx Major Assumptions / Process Changes Avail. in WIP? Yes Prioritize / Reconfigure No

9. Page 9 9 Work Example – Vision for Phase 2 Hub buffer below target Discrete Orders Revised Targets FGI / Hub Coverage? Start per Authorized Pool No Yes Fill from STX Stock Hub buffer below Target? No No Action Yes Avail. in Testers? Avail. in Test Queue? No Yes Fill After Test Prioritize / Reconfigure No  xxx Major Assumptions / Process Changes

10. Page 10 10 Check Sheets - for DATA GATHERING –After common defects are identified, operators and machines track how often they occur –Setup routine not followed –Missing equipment –Machine breakdown –Parts shortage –Etc – A table is created to track the defects over time (hours / shifts / days / weeks) –The data from the check sheets are then used to populate histograms and Pareto charts

11. Page 11 11 Check Sheet Example

12. Page 12 12 Histogram

13. Page 13 13 Work Example – Histogram Median Drive Age at Invoice Average Drive Age at Invoice Median: 18 days Average: 25 days Mode: 1 day 80% of units invoiced under 36 days of age Root Cause?

14. Page 14 14 Grade Distribution – Histogram

15. Page 15 15 Scatter Diagrams

16. Page 16 16 Fishbone Chart

17. Page 17 17 Use a Hammer to build the house and a Paintbrush to paint it

18. Page 18 18 Key Points regarding Tools –Know if you are looking at time and trend data or at static / population data –Process Maps are static –Check sheets can be both –Histograms, Scatter Plots, Pareto Charts are for populations –Control Charts / SPC look at time and trend –Data gathering and analysis enables a more effective “Plan-Do- Check-Act” cycle –The data TELL you something! … Act on what the data tell you –Root Cause identification –Separating Causes from Effects (“5 Whys”) –Planning and Implementing improved performance and Results –Refine the Measurement System so that focus is on facts and collaborative problem solving – not blame or “spin” –Precision vs. Enough (Diminishing Returns)