Unit 3
Unit 3
1. Brainstorming - a technique in which a group of people share thoughts and ideas on problems
in a relaxed atmosphere that encourages unrestrained collective thinking.
2. Quality Circles - Groups of workers who meet to discuss ways of improving products or processes.
3. Benchmarking - an approach that can inject new energy into improvement efforts. The process
of measuring an organization’s performance on a key customer requirement against the best
in the industry, or against the best in any industry. Its purpose is to establish a standard against
which performance is judged, and to identify a model for learning how to improve.
Types of Benchmarking
1. Internal - a process in which a company or an organisation looks within its own business to try
and determine the best practice or methodology for conducting a particular task. The aim is to
find the best practice available to get the job done with minimum effort or resources.
2. Competitive - the process of comparing your company against a number of competitors using
a set collection of metrics. This is used to measure the performance of a company and compare
it to others over time.
3. Functional - involves comparing results across different industries and processes by utilizing
similarities in functional capacities. Functional benchmarking serves as a way to provide
information on industry trends.
4. Generic - broadly conceives how unrelated business functions or processes may be carried out
in similar or identical manners regardless of the field your company belongs to.
5. Process Benchmarking - designed to help you gain a more accurate understanding of how your
competitors’ processes compare to your own.
6. Strategic Benchmarking - pertains to your business strategies and how these may help you gain
an edge in your field.
7. Performance Benchmarking - This is a relatively more difficult type of benchmarking because
you need to understand key performance metrics (e.g., number of employees retained in a
year) and processes to conduct it.
Importance of Benchmarking
1. Increases Performance
2. Cost-Effective
3. Enhances Quality
4. Explore Growth Opportunities
5. Secure Market Position
6. Improve coordination In The Company
1. Planning
2. Collection of Information
3. Analyze the Data
4. Implement
5. Monitor
• A process and set of tools used to effectively define customer requirements and convert them
into detailed engineering specifications and plans to produce the products that fulfil those
requirements.
• QFD was first developed in Japan by Yoji Akao in the late 1960s while working for Mitsubishi’s
shipyard.
• It was later adopted by other companies including Toyota and its supply chain.
• In the early 1980s, QFD was introduced in the United States mainly by the big three automotive
companies and a few electronics manufacturers.
• Customer Focused
• VOC (Voice of Customer) Competitor Analysis
• Shorter Development Time and Lower Cost
• Structure and Documentation
Phases of QFD
1. The Product Definition Phase begins with collection of VOC and translating the customer wants
and needs into product specifications. It may also involve a competitive analysis to evaluate
how effectively the competitor’s product fulfils the customer wants and needs.
2. During the Product Development Phase, the critical parts and assemblies are identified. The
critical product characteristics are cascaded down and translated to critical or key part and
assembly characteristics or specifications.
3. Process Development Phase, the manufacturing and assembly processes are designed based
on product and component specifications.
4. Process Quality Control: Prior to production launch, the QFD process identifies critical part and
process characteristics.
Six Sigma
• Business process for improving quality, reducing costs, and increasing customer satisfaction.
1. Champions - identify and rank potential projects, help select and evaluate candidates,
manage program resources, and serve as advocates for the program.
2. Master Black Belts - have extensive training in statistics and use of quality tools. They are teachers
and mentors of black belts.
3. Black Belts - project team leaders responsible for implementing process improvement projects.
They have typically completed four weeks of six-sigma training and have demonstrated mastery
of the subject matter through an exam and successful completion of one or more projects.
4. Green Belts - members of project teams.
DMAIC
Lean/Six Sigma
• An approach to continuous improvement that integrates lean operation principles and six-
sigma techniques.
1777 – 1855 Carl Frederick Gauss introduced the concept of the Normal curve
1986 Bill Smith in Motorola formulated six Sigma
1988 Motorola becomes the first company to win the Malcolm Baldridge National Quality
Award.
1993 Allied Signal adopted Six Sigma (Larry Bossidy was the CEO of Allied Signal at that
time.)
1995 General Electric (GE) launched the Six Sigma initiative. (Jack Welch was the CEO of
General Electric at that time.)
1998 Honeywell adopted Six Sigma
2000 Ford adopted Six Sigma
Kaizen
• From the Japanese words “kai-” which means “change” and “-zen” which means “good.” The
popular meaning from Toyota is “continuous improvement” or “small incremental
improvements” of all areas of a company, not just manufacturing.
• Kaizen means all personnel are expected to stop their work when they encounter any
abnormality and, along with their supervisor, suggest an improvement to resolve the
abnormality.
• Shigeo Shingo helped train manufacturing engineers on implementing the efficiency processes
with his P-course, that later influenced Toyota’s creation of kaizen.
• Masaaki Imai helped document kaizen principles and methods with his books in the mid-1980’s.
ISTIV
• A values-driven human resource intervention for quality and productivity improvement that is
rooted in the five ideal attributes of a productive individual. I stands for Industrious, S for
Systematic, T for Time-conscious, I for Innovative, and V for strong Value for work.
5S of Housekeeping