Total Quality Management Week # 9 Continuous Improvement & Quality Tools Prepared by: Khalid Dahleez Faculty of Commerce – the Islamic University of Gaza This material was collected from different sources Total Quality Management - Spring 2010 - IUG

Continuous Improvement Continuous improvement (CI) is a management philosophy that approaches the challenge of product and process improvement as a never-ending process of achieving small wins. Steps toward CI Train employees in the methods of statistical process control (SPC) and other tools. Make SPC methods a normal aspect of operations. Build work teams and encourage employee involvement. Utilize problem-solving tools within the work teams. Develop a sense of operator ownership in the process. Total Quality Management - Spring 2010 - IUG

Continuous Improvement It is an integral part of a total quality management system. Continuous improvement seeks continual improvement of machinery, materials, labor utilization, and production methods through application of suggestions and ideas of team members. Though pioneered by U.S. firms, this philosophy has become the cornerstone of the Japanese approach to operations. Although management in both Japan and the West historically have implemented CI in manufacturing plants, it has become quite common in services as well. Total Quality Management - Spring 2010 - IUG

Tools & Procedures of CI Varies from simple suggestion system based on brain storming to structured programs utilizing statistical process control tools (SPC Tools) Deming wheel (PDCA) cycle Zero defect concept Bench Marking Six sigma Kaizen SPC Tools (Also known as Tools of TQC) Check Sheet Process flow chart Pareto analysis Histogram Scatter diagram Causes & effect diagram (Fish Bone /Ishikawa Diagram) Control charts Total Quality Management - Spring 2010 - IUG

The Deming Cycle or PDCA Cycle PLAN Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured ACT DO Adopt the change as a permanent modification to the process, or abandon it. Implement the change on a small scale and measure the effects STUDY Study the results to learn what effect the change had, if any. Total Quality Management - Spring 2010 - IUG

PDSA cycle- seven steps or phases Identify the opportunity Analyze the current process Develop the optimal solution(s) Implement changes Study the results Standardize the solution Plan for the future. Total Quality Management - Spring 2010 - IUG

Seven Problem Solving Tools Pareto Analysis Flowcharts Checklists Histograms Scatter Diagrams Control Charts Cause-and-Effect Diagrams Total Quality Management - Spring 2010 - IUG

PARETO CHART DEFINITION USES A Pareto Chart is a vertical bar chart in which the bars are arranged in the descending order of their height starting from the left and prioritize the problems or issues. USES to prioritize problems to analyze a process to identify root causes to verify that whatever improvement process you implement continues to work Total Quality Management - Spring 2010 - IUG

Pareto Analysis NUMBER OF CAUSE DEFECTS PERCENTAGE Poor design 80 64 % Wrong part dimensions 16 13 Defective parts 12 10 Incorrect machine calibration 7 6 Operator errors 4 3 Defective material 3 2 Surface abrasions 3 2 125 100 % Total Quality Management - Spring 2010 - IUG

Pareto Chart 70 (64) 60 50 Percent from each cause 40 30 20 (13) (10) Causes of poor quality Machine calibrations Defective parts Wrong dimensions Poor Design Operator errors Defective materials Surface abrasions 10 20 30 40 50 60 70 (64) (13) (10) (6) (3) (2) Total Quality Management - Spring 2010 - IUG

Flow Charts Flow charts are nothing but graphical representation of steps involved in a process. Flow charts give in detail the sequence involved in the material, machine and operation that are involved in the completion of the process. Thus, they are the excellent means of documenting the steps that are carried out in a process. Operation Decision Start/ Finish Total Quality Management - Spring 2010 - IUG

Check Sheet COMPONENTS REPLACED BY LAB Check sheets are nothing but forms that can be used to systematically collect data. Check sheet give the user a place to start and provides the steps to be followed in Collecting the data COMPONENTS REPLACED BY LAB TIME PERIOD: 22 Feb to 27 Feb 2002 REPAIR TECHNICIAN: Bob TV SET MODEL 1013 Integrated Circuits |||| Capacitors |||| |||| |||| |||| |||| || Resistors || Transformers |||| Commands CRT | Total Quality Management - Spring 2010 - IUG

CHECK SHEET USES STEPS to gather data to test a theory to evaluate alternate solutions to verify that whatever improvement process you implement continues to work STEPS team agrees on what to observe decide who collects data decide time period for collecting data design Check Sheet collect data compile data in the Check Sheet review Check Sheet Total Quality Management - Spring 2010 - IUG

Histogram Histograms help in understanding the variation in the process. It also helps in estimating the process capability. 5 10 15 20 1 2 6 13 10 16 19 17 12 16 2017 13 5 6 2 1 Total Quality Management - Spring 2010 - IUG

Scatter Diagram It is a graph of points plotted; this graph is helpful in comparing two variables. The distribution of the points helps in identifying the cause and effect relationship Between two variables. Y X Total Quality Management - Spring 2010 - IUG

Control Chart Number of defects Sample number A control chart is nothing but a run chart with limits. This is helpful in finding the amount and nature of variation in a process. 18 12 6 3 9 15 21 24 2 4 8 10 14 16 Sample number Number of defects UCL = 23.35 LCL = 1.99 c = 12.67 Total Quality Management - Spring 2010 - IUG

Histograms do not take into account changes over time. Control charts can tell us when a process changes Total Quality Management - Spring 2010 - IUG

Cause and Effect Diagram Developed by Dr Kaoru Ishikawa in 1943. It is also known by the name of 1) Ishikawa diagram, 2)Fishbone diagram. This diagram is helpful in representing the relationship between an effect and the potential or possible causes that influences it. This is very much helpful when one want to find out the solution to a particular problem that could have a number of causes for it and when we are interested in finding out the root cause for it. Total Quality Management - Spring 2010 - IUG

Cause and effect Diagram The cause and effect diagram is an investigative tool. This is also called Ishikawa Diagram. Because of its shape, the diagram is also termed as Fishbone Diagram. There is a systematic arrangement of all possible causes which give rise to the effect in Ishikawa diagram. Before taking up problem for a detailed study, it is necessary to list down all possible causes through a brainstorming session so that no important cause is missed. The causes are then divided into major sources or variables. Total Quality Management - Spring 2010 - IUG 19

Ishikawa Diagram Total Quality Management - Spring 2010 - IUG

Cause-and-Effect Diagram Quality Problem Out of adjustment Tooling problems Old / worn Machines Faulty testing equipment Incorrect specifications Improper methods Measurement Poor supervision Lack of concentration Inadequate training Human Deficiencies in product design Ineffective quality management Poor process design Process Inaccurate temperature control Dust and Dirt Environment Defective from vendor Not to specifications Material- handling problems Materials Total Quality Management - Spring 2010 - IUG

Quality Circles Organization Training Presentation Implementation Monitoring Solution Problem results Problem Analysis Cause and effect Data collection and analysis Problem Identification List alternatives Consensus Brainstorming Training Group processes Data collection Problem analysis Organization 8-10 members Same area Supervisor/moderator Total Quality Management - Spring 2010 - IUG

CONCEPT OF KAIZEN Imai has brought together various management theories, philosophies and tools that have been popular in Japan over the years, as a single concept, Kaizen. There are many quality experts, whose principles formed the basis of the Kaizen concept. Kaizen means continuous improvement involving everybody. Total Quality Management - Spring 2010 - IUG

CONCEPT OF KAIZEN The term Kaizen originates from the Japanese words, ‘Kai’ that means change, whereas, ‘zen’ means for the better, therefore, it means ‘change for the better’. It signifies constant and gradual improvement, no matter how small it is. It should be taking place all the time in every process, involving everyone from all the ranks of management and the workforce. Total Quality Management - Spring 2010 - IUG

CONCEPT OF KAIZEN In brief, Kaizen system includes: Total employee involvement starting from top management; Empowering people; Listening to them; Promoting zero investment improvements; and Focus on efforts rather than results in Kaizen evaluation and performance appraisal. Total Quality Management - Spring 2010 - IUG

Definition of KAIZEN A selection of better means or a better method for achieving an objective. 2. An accumulation of small changes. A corrective action under constraints. Total Quality Management - Spring 2010 - IUG

KAIZEN TECHNIQUES KAIZEN techniques consists of the following steps: Identifying problem (s) Examining the problem (s) Finding ideas to solve the problem (s) Developing selected proposal (s) Implementing the proposal (s) Total Quality Management - Spring 2010 - IUG

Multiple KAIZEN ideas Problem: The man cannot reach the tool box on the shelf. Man is too short to reach the tool box. The tool box is placed too high. Total Quality Management - Spring 2010 - IUG Idea source: The Japan HR association

The interaction between man and tool box generates a problem. Problem does not exit. Tool Box Man Total Quality Management - Spring 2010 - IUG

cannot reach Use footstool. From “toolbox” stand point, Multiple KAIZEN ideas From “man “ stand point, cannot reach Use footstool. From “toolbox” stand point, place it at the lower shelf. Total Quality Management - Spring 2010 - IUG

Solution Place the toolbox at a lower shelf Footstool Total Quality Management - Spring 2010 - IUG

A man broke a cup at a sink. Problem: A man broke a cup at a sink. Total Quality Management - Spring 2010 - IUG Idea source: The Japan HR association

Cup Man Sink Interaction washing Way of Total Quality Management - Spring 2010 - IUG

Nature Solution Cup Easy to break Plastic cup Man Careless Caution Components Nature Solution Cup Easy to break Plastic cup Man Careless Caution Method Easy to slip Wear rubber gloves Sink Solid surface Place rubber mat Total Quality Management - Spring 2010 - IUG

Cause and effect diagram Man Method Wash with hands Carelessness Wash quickly Wash together My way Cup broke Hard bottom Breakable materials Deep Weak against heat Sink Cup Total Quality Management - Spring 2010 - IUG

KAIZEN Steps - Abolition - Discontinuance - Exclusion - Removal - Simplification - Centralization - Synchronization - Standardization - Management for exceptions - Integration - Combination - Alternation - Exchange - Conversion - Diversification - Separation Total Quality Management - Spring 2010 - IUG

Different styles of change 1. Small change --- By individual effort, a better way of proceeding a job is considered. (Idea creation) (KAIZEN) 2. Medium change --- By group effort, a better way is proposed by following predetermined steps (or rule). (Small group activities) 3. Big change --- By investments in new technology or equipment, dramatic alterations are achieved. (Innovation) Total Quality Management - Spring 2010 - IUG

10 Basic Rules for Practicing Kaizen Prepare people to accept change for the betterment. Think of how to do it and not why it cannot be done. Do not make excuses? Start by questioning current practices. Do not seek perfection? Do it even if for only 50% of target. Correct mistakes at once. Do not spend money for Kaizen. Wisdom is brought out when faced with hardship. Ask “why”? Five times and seek root causes. Seek the wisdom of ten people rather than the knowledge of one. Kaizen ideas are infinite. Total Quality Management - Spring 2010 - IUG

More Comments on Kaizen Kaizen is a system of accumulated improvement. The main purpose of Kaizen is to evolve total employee participation and it also helps in building capable work force for an organization. The results of Kaizen are not very drastic but incremental that’s why continuous improvement leads to accumulated improvement. Kaizen is a process-oriented thinking and not result oriented thinking: Process oriented Result oriented Self discipline Time management Skill Management Participation & involvement Communication Morale I don’t care, you get it done just give me one result. Total Quality Management - Spring 2010 - IUG