1. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 1 Chapter 10 Quality Improvement

2. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 2 Traditional Economic Model of Quality of Conformance Total cost Cost due to nonconformance Cost of quality assurance “optimal level” of quality 100%

3. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 3 Modern Economic Model of Quality of Conformance Total cost Cost due to nonconformance Cost of quality assurance 100%

4. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 4 Problem Solving Problem: any deviation between what “should be” and what “is” that is important enough to need correcting –Structured –Semistructured –Ill-structured Problem Solving: the activity associated with changing the state of what “is” to what “should be”

5. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 5 Quality Problem Types 1.Conformance problems 2.Unstructured performance problems 3.Efficiency problems 4.Product design problems 5.Process design problems

6. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 6 Problem Solving Process 1.Redefining and analyzing the problem 2.Generating ideas 3.Evaluating and selecting ideas 1.Implementing ideas

7. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 7 The Deming Cycle Plan DoStudy Act

8. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 8 Juran’s Improvement Program Proof of the need Project identification Organization for breakthrough Diagnostic journey Remedial journey Holding the gains

9. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 9 Bethesda Hospital Model Start Review current situation Describe process Explore cause theories Collect and analyze data Improvement? Generate solutions Plan Do Check Improvement? Act yes no yes no

10. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 10 Crosby Quality Improvement Program 1.Management commitment 2.Quality improvement team 3.Quality measurement 4.Cost of quality evaluation 5.Quality awareness 6.Corrective action 7.Zero defect committee 8.Supervisor training 9.Zero defects day 10.Goal setting 11.Error cause removal 12.Recognition 13.Quality councils 14.Do it over again

11. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 11 Creative Problem Solving Mess Finding – identify symptoms Fact Finding – gather data; operational definitions Problem Finding – find the root cause Idea Finding – brainstorming Solution Finding – evaluate ideas and proposals Implementation – make the solution work

12. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 12 Six-Sigma Quality Ensuring that process variation is half the design tolerance (Cp = 2.0) while allowing the mean to shift as much as 1.5 standard deviations.

13. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 13 Six-Sigma Metrics Defects per unit (DPU) = number of defects discovered  number of units produced Defects per million opportunities (dpmo) = DPU  1,000,000  opportunities for error

14. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 14 k-Sigma Quality Levels Six sigma results in at most 3.4 defects per million opportunities

15. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 15 Six-Sigma Implementation 1.Emphasize dpmo as a standard metric 2.Provide extensive training 3.Focus on on corporate sponsor support 4.Create qualified process improvement experts 5.Ensure identification of appropriate metrics 6.Set stretch objectives

16. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 16 GE’s Six-Sigma Problem Solving Approach 1.Define 2.Measure 3.Analyze 4.Improve 5.Control

17. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 17 Tools for Six-Sigma and Quality Improvement Elementary statistics Advanced statistics Product design and reliability Measurement Process control Process improvement Implementation and teamwork

18. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 18 The Seven QC Tools 1.Flowcharts 2.Run charts and control charts 3.Check sheets 4.Histograms 5.Cause-and-effect diagrams 6.Pareto diagrams 7.Scatter diagrams

19. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 19 Flowcharts (1 of 2) Shows unexpected complexity, problem areas, redundancy, unnecessary loops, and where simplification may be possible Compares and contrasts actual versus ideal flow of a process Allows a team to reach agreement on process steps and identify activities that may impact performance Serves as a training tool

20. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 20 Flowcharts (2 of 2)

21. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 21 Run Chart Monitors performance of one or more processes over time to detect trends, shifts, or cycles Allows a team to compare performance before and after implementation of a solution to measure its impact Focuses attention on truly vital changes in the process * * * *

22. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 22 * * * * Control Chart Focuses attention on detecting and monitoring process variation over time Distinguishes special from common causes of variation Serves as a tool for on-going control Provides a common language for discussion process performance

23. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 23 970 980 990 1000 1010 1020 0123456789101112131415 UCL LCL Control Chart

24. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 24 Check Sheet (1 of 2) Creates easy-to-understand data Builds, with each observation, a clearer picture of the facts Forces agreement o the definition of each condition or event of interest Makes patterns in the data become obvious quickly xx xxxxxx x

25. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 25 Billing Errors Wrong Account Wrong Amount A/R Errors Wrong Account Wrong Amount Monday Check Sheet (2 of 2)

26. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 26 Histogram Displays large amounts of data that are difficult to interpret in tabular form Shows centering, variation, and shape Illustrates the underlying distribution of the data Provides useful information for predicting future performance Helps to answer the question “Is the process capable of meeting requirements?

27. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 27 Histogram frequency ABCDE

28. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 28 Pareto Diagram (1 of 2) Helps a team focus on causes that have the greatest impact Displays the relative importance of problems in a simple visual format Helps prevent “shifting the problem” where the solution removes some causes but worsens others

29. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 29 80% of the problems may be attributed to 20% of the causes. 80% of the problems may be attributed to 20% of the causes. Pareto Diagram (2 of 2) Smeared print Number of defects Off center Missing label Loose Other

30. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 30 Cause and Effect Diagram (1 of 2) Enables a team to focus on the content of a problem, not on the history of the problem or differing personal interests of team members Creates a snapshot of collective knowledge and consensus of a team; builds support for solutions Focuses the team on causes, not symptoms

31. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 31 Cause Cause-and-Effect Diagram (2 of 2) Effect MaterialsMethods EquipmentPeople Environment Cause

32. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 32 Scatter Diagram Supplies the data to confirm a hypothesis that two variables are related Provides both a visual and statistical means to test the strength of a relationship Provides a good follow-up to cause and effect diagrams * * * *

33. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 33 Scatter Diagram Variable A Variable B

34. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 34 Poka-Yoke (Mistake-Proofing) An approach for mistake-proofing processes using automatic devices or methods to avoid simple human or machine error, such as forgetfulness, misunderstanding, errors in identification, lack of experience, absentmindedness, delays, or malfunctions

35. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 35 Poka-Yoke Examples (from John Grout’s Poka-Yoke Page)

36. THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson Learning TM 36 Poka-Yoke for Services Task errors Treatment errors Tangible errors Customer errors in preparation Customer errors during an encounter Customer errors at the resolution stage