Quality Tools

Key Contributors to Quality Management

Key Contributors to Quality Management

Total Quality Management A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction

Process Improvement A systematic approach to improving a process Overview of the approach process mapping analyze the process redesign the process

The PDSA Cycle Plan Do Study Act

The Process Improvement Cycle Implement the Improved process Select a process Study/document Seek ways to Improve it Design an Evaluate Document

Process Improvement Tools There are a number of tools that can be used for problem solving and process improvement Tools aid in data collection and interpretation, and provide the basis for decision making

Seven Basic Quality Tools Check sheets Flowcharts Scatter diagrams Histograms Pareto analysis Control charts Cause-and-effect diagrams

Check Sheet Monday Billing Errors A/R Errors Wrong Account Wrong Amount A/R Errors

Flowchart Process OK? Process? Process OK Process Identify value added steps, rework loops, flow loops, etc.

Scatter Diagram Variable B Variable A

Histogram frequency A B C D E

Pareto Analysis 80% of the problems may be attributed to 20% of the Smeared print Number of defects Off center Missing label Loose Other 80% of the problems may be attributed to 20% of the causes.

Control Chart 970 980 990 1000 1010 1020 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 UCL LCL

Cause-and-Effect Diagram Materials Methods Equipment People Environment Cause

Tracking Improvements UCL LCL Process not centered and not stable Process centered and stable Additional improvements made to the process

Methods for Generating Ideas Brainstorming Quality circles Interviewing Benchmarking 5W2H

What is Six Sigma? Customer Focus – Focus on what is critical to customers Data Driven – Extensive use of statistical tools Robust Methodology – Tools plus implementation methods to make success more likely

What is Six Sigma? Key Concepts Critical to Quality: What attributes are most important to the customer? (CTQ, CTC, CTD) Defect: Failing to deliver what the customer wants / expects (DPMO) Variation: The level of unpredictability the customer experiences These key concepts focus on the CUSTOMER! First, we find what is most important. Second, we define what it means to fail to please the customer. Third, we deal with the important dimension of how much do we miss the expectation. GE says that customers do not feel the average, but rather the variation.

What is Six Sigma? Key Concepts Process Capability: What your process can deliver – consistently Stable Operations: Stable ops are predictable Design for Six Sigma: Designing to meet customer needs and process capability

DMADV - DMAIC New Processes Existing Processes

Define Phase - Tools Project Charter Stakeholder Analysis Affinity Diagram SIPOC Voice of the Customer CT Tree Kano Model SWOT Analysis Cause-and-Effect Diagrams Supplier Segmentation Project Management

Charter Problem statement Business case Goals, milestones, success criteria, & deliverables Project scope / boundaries Roles & responsibilities Stakeholder support / approval needed What is the problem? Know the difference between a problem and a cause. The Rational Manager Where is the value? Is there a burning platform? How much value and how much effort will be required to realize it? Gantt charts, Strategies, Tactics, Objectives, Dates Is the project sufficiently bounded? The strategy should trickle down to personal objectives. Responsibility matrix Whose approval do we need in order to be successful?

Potential Improvement Business Case Potential Improvement Potential Impact Improve quality Reduce cost, inventory Improve OTD Shortages , inventory  Select better suppliers Q, $, LT, reduce inventory Implement rating system Improve supply efficiency, better suppliers Reduce price Reduce cost

Define Phase - Tools Project Charter Stakeholder Analysis Affinity Diagram SIPOC Voice of the Customer CT Tree Kano Model SWOT Analysis Cause-and-Effect Diagrams Supplier Segmentation Project Management

Define Outputs Once completed, the Define Phase should answer the following questions: 1) Who is the customer? 2) What matters? 3) What is the scope? 4) What defect am I trying to reduce? 5) What are the improvement targets?

The Measure Phase Purpose To collect current performance of the process identified in the Define phase This data is used to determine sources of variation and serve as a benchmark to validate improvements

Measure - Key Concepts Measurement Variation Data Data Collection Plan Exists naturally in any process and is the reason Six Sigma projects are undertaken Data Data Collection Plan Measurement System Analysis Ensures measurement techniques are reproducible and repeatable

Data Collection Plan What data will be collected? Why is it needed? Who is responsible? How will it be collected? When will it be collected? Where will it be collected?

Measurement System Analysis After Data Collection Plan is complete, it needs to be verified before actual data is collected MSA is performed on a regular basis MSA ends when a high level of confidence is reached that the data collected accurately depicts the variation in the process

Analyze Phase The analyze phase allows the Project Team to target improvement opportunities by taking a closer look at the data.

Analyze Phase Capability Analysis - establishing current performance level Graphical Analysis - a visual indication of performance using graphs Root Cause Analysis – developing a hypothesis about the causes of variation Root Cause Verification – verifying that the planned action will generate the desired improvement

Elements of Improve Phase Generate Improvement Alternatives Create a “Should Be” Process Map Conduct FMEA Perform Cost/Benefit Analysis Pilot Validate Improvement

Control Phase Why is it important? The Control Phase begins as the project team tries to eliminate errors by “Mistake Proofing” their improvement alternative. Mistake Proofing attempts to eliminate the opportunities for error.

Control Phase Why is it important? Mistake Proofing tries to make it impossible for an operation to be performed incorrectly, and/or correct errors before they are passed to the next worker, where they might become a defect.

Control Phase #2 During the Control Phase the Project team will: 1) Develop a plan to make sure the measurement system will remain relevant over the long term. 2) Establish Control Charts the process owner will use to manage the process. 3) Create a Reaction Plan to address situations that might cause the process to move out of control.

Control Phase #3 The Control Phase ends when: 1) Standard Operating Procedures have been updated. 2) Process Operators, the people who do the job, have been trained for the new process. Once completed, the Control Phase should sustain the gains the project made while implementing ongoing process controls.

Control Phase #4 When is a project complete? 1) When other Black Belts can see the ongoing controls work 2) When the customer sees the results 3) When the business sees the money.

Stakeholder Analysis People or Groups Level of Commitment Buy Mfg Eng Enthusiastic Support Help it work Compliant Hesitant X Indifferent Uncooperative Opposed Hostile

SIPOC Example Ops Mgt Buyers Engrg. Mfg. Suppliers Inputs Processes Outputs Customers Ops Mgt Supplier Perf. Supplier Evaluation Survey Buyers Complaint Rating system Engrg. Tech Reqts Improved Supplier Perform. Engineering Mfg. Commit. to suppliers Supplier Complaint

SWOT Analysis Positive Negative Internal Strengths Weaknesses External Opportunities Threats

Quality Awards Baldrige Award Deming Prize

Malcolm Baldrige National Quality Award (1 of 2) Began in 1987 Recognizes achievements of excellent organizations and provide examples to others may give two awards in each category manufacturing small business service health care education

Malcolm Baldrige National Quality Award (2 of 2) Establishes criteria for evaluating quality efforts Provides guidance for other American companies

2001 MBNQA Categories and Scoring System 1.0 Leadership 120 2.0 Strategic Planning 85 3.0 Customer and Market Focus 85 4.0 Information and Analysis 90 5.0 Human Resource Focus 85 6.0 Process Management 85 7.0 Business Results 450 8.0 Global Market Development and Competitiveness (optional) 100

Quality Certification ISO 9000 Set of international standards on quality management and quality assurance, critical to international business ISO 9000 series standards, briefly, require firms to document their quality-control systems at every step (incoming raw materials, product design, in-process monitoring and so forth) so that they’ll be able to identify those areas that are causing quality problems and correct them