Kenneth J. Andrews EMP Manufacturing Systems: EMP-5179 Module #4: TQ Tools & Techniques Dr. Ken Andrews High Impact Facilitation Fall 2010

Kenneth J. Andrews EMP EMP-5179: Module #4  Introduction to Total Quality (TQ)  Cycle-Time Reduction  Six Sigma & Defects  TQ Tools  Process Management & Improvement

Kenneth J. Andrews EMP Total Quality’s Goals Use Total Quality to create a new culture of Continuous Improvement  Never satisfied with the way things are.  Know & be driven by your Customers’ requirements.  Improve processes to exceed expectations……and improve productivity  Measure improvements over time. Deliver these goals with Teamwork.

Kenneth J. Andrews EMP Elements of TQM  Top management commitment and involvement  Customer involvement  Design products for quality  Design production processes for quality  Control production processes for quality  Developing supplier partnerships  Customer service, distribution, and installation  Building teams of empowered employees  Benchmarking and continuous improvement

Kenneth J. Andrews EMP Quality Drives the Productivity Machine  If production does it right the first time and produces products and services that are defect-free, waste is eliminated and costs are reduced.  Estimated that 20-25% of COGS in the US is spent on finding and correcting errors.  Quality management programs today are viewed by many companies as productivity improvement programs.

Kenneth J. Andrews EMP Steps to complete a task using people, equipment, and/or procedures. Material or information is changed for a specific result.  Definable  Repeatable  Measurable Outputs Inputs What is a Process?

Kenneth J. Andrews EMP Cycle time reduction:  fulfills customer expectations  increases responsiveness  reduces defects  reduces waste Through Process Simplification Defect elimination reduces: process defects product & service defects cycle time waste Cycle Time Reduction and Defect Elimination

Kenneth J. Andrews EMP Baseline Entitlement Benchmark Where you are today? How good you can get? Best in world A measure of the current performance of a process Best possible performance with current resources The world-class process, a reference for improvement World Class The Journey to Cycle Time Reduction

Kenneth J. Andrews EMP A step adds value if: The Customer recognizes the value It alters the ‘thing’ in the process It is done right the first time It is required by external law, regulation, policy.. or by health and safety considerations Defining Value-Added Work

Kenneth J. Andrews EMP The Facts: Shorter Cycle Time  Improves customer responsiveness –Delivers on-time –Meets customer needs before they change  Improves quality –Reduces opportunities for defects –Increases cycles of learning  Increases profit –Gets to market first –Uses fewer resources

Kenneth J. Andrews EMP “A comprehensive and flexible system for achieving, sustaining and maximizing business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data and statistical analysis, and diligent attention to managing, improving and reinventing business processes.” -- The Six Sigma Way, by Pande, Newman and Cavanaugh creating value for our customers “Six Sigma”: What is it? 

Kenneth J. Andrews EMP Sigma - the lower case Greek letter that denotes a statistical unit of measurement used to define the standard deviation of a population. It measures the variability or spread of the data.  What is Sigma?

Kenneth J. Andrews EMP The Statistical Tools of Six Sigma:

Kenneth J. Andrews EMP Cure Time of Silicone Sealant Number of Samples Lower Specification Limit (LSL) Upper Specification Limit (USL)

Kenneth J. Andrews EMP The Statistical Tools of Six Sigma:

Kenneth J. Andrews EMP PPM 100K 10K 1K Average Company Best in Class Restaurant Bills Doctor Prescription Writing Payroll Processing Order Write-up Airline Baggage Handling Domestic Airline Flight Fatality Rate Tax Advice (Phone In) Sigma Sigma as a Measurement of Defects

Kenneth J. Andrews EMP creating value for our customers Impact of Six Sigma

Kenneth J. Andrews EMP Net Result of 4 Sigma Performance  Warranty expense is unacceptably high.  Service engineers are stretched.  Sales force spends most of its time keeping Customers pacified, instead of selling more products.  Customers are dissatisfied & unhappy.  Competitors are very happy. 

Kenneth J. Andrews EMP creating value for our customers The Six Sigma Way (ISBN ) by Pande, Neuman, and Cavanaugh The Power of Six Sigma (ISBN ) by Subir Chowdhury Six Sigma (ISBN ) by Harry and Schroeder. The Six Sigma Handbook (ISBN ) by Pyzdek is more technical and becoming the 'handbook' for Black Belts. Text References

Kenneth J. Andrews EMP Run Chart Average Time or Sequence M e a s u r e Run Chart / Control Chart Average Time or Sequence M e a s u r e UCL LCL Pareto Chart Cumulative Percent abcde 0% 50% 100% Percent Contribution Sub-Problem Costs Checksheets Defect Type Wrong Form No Approval Invalid Data Not on File Defect CountSubtotal Date: 9/9/99 Account Processing Grand Total Decision Matrix Alternatives Criteria ABC Defects Cycle Time Cost Flexibility Issues / Problems / Opportunities Prioritize Map / Flow -- Implement Process Flow Analysis Current Process Proposed Process IDEAS Histogram Frequency of Defect Type of Defect to Measure (Temperature) NGT ProceduresPeople PolicyPlant 100% 80% A Effect / Problem Major Causes Minor Causes Minor Causes Root Cause Analysis Cause and Effect Diagram Ishikawa diagram Fishbone diagram CUSTOMER I Want

Kenneth J. Andrews EMP What is Root Cause Analysis?  Find the reasons for “events” or “mishaps”  Find at least one cause that can be acted upon such that it meets our goals and objectives, and is within our control  Purpose: prevent future (negative) events “Give any good supervisor or manager a description of a problem in their area and they will most likely come up with a solution. That's what is expected of them in our traditional style of management. But most problems don't have a single root-cause. That's why they remain problems.” Arthur M. Schneiderman Analog Devices

Kenneth J. Andrews EMP Most Problems ……  Have more than a single cause  Are not resolved by the most obvious (first thought) solution  Require patience to fix  Have been ‘band-aided’ many times  Are not caused by ‘bad people’

Kenneth J. Andrews EMP Productive Root-Cause Analysis: Tips  Use a mind-map format (the ‘bone’ diagram is too restrictive)  Ask “why” to generate the first level of causes  Consider prioritizing to a manageable number  Start to ‘drill down’ on the major causes (new flip-chart)  Asking a simple ‘why?’ may not be effective; consider: “Why was that a problem? “Why did that happen?” “What caused that?”  Keep asking until you reach something you can fix  Check by backtracking:”if…then?”  Capture the conclusions (clean-up & summarize)

Kenneth J. Andrews EMP Real-World Flow-Charting: How? The neat, tidy clinical way OR The practical, useful, not-so-tidy way  Involve everyone who works the process  Record what actually happens … using Post-Its  Capture ‘wait/delay’ steps  Identify ‘hot-spots’  Avoid too much detail – start with ‘big picture’  One flip-chart is never enough  Confirm by being the thing going through the process

Kenneth J. Andrews EMP Input Output Product / Services Activity Process Management  Ensures focus on Customers  Identifies Customers / Suppliers and their requirements  Creates Customer oriented measurements  Highlights non-value add work and facilitates trade offs  Improves Teamwork - Participation  Fosters Continuous Improvement of your processes

Kenneth J. Andrews EMP Process Improvement Model Continuous Improvement “As Is” “To Be” Gap Analysis Implementation Why is the change needed? What problems are being addressed? Why are those problems there today?

Kenneth J. Andrews EMP Implement & Measure Improvements Continuous Improvement “As Is” “To Be” Gap Analysis Implementation Incremental change is more sustainable: Course corrections are easier Pilot programs increase confidence.

Kenneth J. Andrews EMP Fast Track Process Improvement What process? Customer + requirements Map current process Identify hot-spots Root-cause analysis Improvements to a) fix root causes b) meet C requirements Metrics (1-3 months) Communicate plan Implement, measure, fine-tune

Kenneth J. Andrews EMP Fast Track Process Improvement 1. Clearly identify the process to be improved (start & end); communicate with up- and down-stream process managers. 2. Who is the (key) Customer – what are their requirements? 3. Map the current process (involve all stakeholders). 4. Identify “hot-spots” – maximum Perform root-cause analysis on all hot-spots. 6. Brainstorm & confirm improvements to the process (fix root-causes and satisfy Customer requirements). 7. Agree 1-3 month plan & improvement metrics (pilot?). 8. Communicate improvement plan. 9. Implement, measure, fine-tune.

Kenneth J. Andrews EMP Preparation for Next Class  Prepare an “As-Is” flowchart for Gen-X Manufacturing, identify the ‘hot-spots’ and their possible root-causes (we’ll discuss together in two weeks)  Watch for new articles/links on the website  Download material for module #5  Ideas for your term paper??