Final Terms Scatter Diagrams are used to present

measurements of two or more related

variables. A Scatter Diagram does not
specify dependent or independent
variables. Either type of variable can be
plotted on either axis. Scatter
Diagrams represent the association
(not causation) between two variables.

Check Sheets

Check Sheets are

simple documents that
are used for collecting
data in real-time. A
Check Sheet is typically a
Control Chart
blank form that is
designed for the quick, easy and
efficient recording of the desired
information, which can be either
quantitative or qualitative.

When the information is quantitative,

the check sheet is called a Tally
Sheet.

Histogram A control chart consist of the following:

A Centre Line (cl) drawn at the process

mean value.

Lower and Upper Control Limits that

indicate the threshold at which the
process output is considered
statistically unlikely.

Run Chart

A histogram divides up the range of

possible values in a data set into
classes or groups. For each group, a
rectangle is constructed with a base
length equal to the range of values in
that specific group, and an area
proportional to the number of
observations falling into that group.
Run Charts are similar in some
regards to Control Charts, but do not
show the control limits of the process.
They are therefore simpler to produce,
but do not allow for the full range of
analytic techniques supported by
Control Charts.

Run chart: Measurement against

progression of time.

Control chart: Add Upper Control Limit

and Lower Control Limit to the run
chart.

Ishikawa Diagram
Other tools: Flow charts

• Process map identifies the

sequence of activities or the
flow in a process.

• Objectively provides a picture

of the steps needed to
accomplish a task.

• Helps all employees understand

Also called fishbone diagrams (because how they fit into the process
of their shape) or Ishikawa diagrams. and who are their suppliers and
customers.
Helps in identifying root causes of the
quality failure. (Helps in the diagnostic • Can also pinpoint places where
journey.) quality-related measurements
should be taken.
Pareto Diagram
• Also called process mapping
and analysis.

• Very successfully implemented

in various organizations. e.g.
Motorola reduced manufacturing
time for pagers using flow
charts.

Scatter diagrams

• Graphical components of the

regression analysis.
The purpose of the Pareto Diagram is to
highlight the most important set of • Often used to point out
factors among a typically large amount relationship between variables.
of causes for a problem. Statistical correlation analysis
used to interpret scatter
In order to develop the Pareto Diagram diagrams.
for a specific process, the knowledge of
Frequncy, Relative Frequency, TQM for the Workforce
Cumulative Frequency and Percentage
Frequency is needed. • Kaizen teams
 • Quality Circles • Approach for mistake-proofing
processes using automatic
Quality circles devises or methods to avoid
• Teams of workers and simple human error.
supervisors that meet regularly • Developed and refined in the
to address work-related 1960s by the late Shigeo
problems involving quality and Shingo, a Japanese
productivity. manufacturing engineer who
• Developed by Kaoru Ishikawa at developed the Toyota
University of Tokyo. production system.

• Became immediately popular in • Focused on two aspects:

Japan as well as USA. 1. Prediction – Recognizing that a
• Lockheed Missiles and Space defect is about to occur and
Division was the leader in provide a warning.
implementing Quality circles in 2. Detection – Recognizing that a
USA in 1973 (after their visit to defect has occurred and stop
Japan to study the same). the process.
• Typically, small day-to-day Quality Management Awards and
problems are given to quality Framework
circles. Since workers are most
familiar with the routine tasks,  ISO 9000: 2000
they are asked to identify,
analyze and solve quality • Six Sigma
problems in the routine • Awards: Malcolm Baldrige
processes. National Quality Award, EFQM
Kaizen blitz Model, Deming Prize

• An intense and rapid ISO 9000

improvement process in which a • The International Organization
team or a department throws all for Standardization (ISO)
its resources into an
improvement project over a • ISO 9000 Series of Quality
short period of time. Standards

• Short time “burst” rather than • An international set of

long range simmer- hence the standards for
name. documenting the
processes that an
• Blitz teams usually comprise of organization uses to
employees from all areas produce its goods and
involved in the process who services.
understand it and can
implement the changes on the
spot.

Additional process improvement tools

Poka-Yoke (Mistake proofing)

 ISO 9001:2000 Quality Management Systems: organizations are assured to
Requirements
ISO 9004:2000 Quality Management Systems: Guidelines
have quality equal to their
for Performance Improvement peers.
ISO 9000:2000 Quality Management Systems:
Fundamentals and Standards • Defines quality systems
standards based on the premise
• ISO 9000 Certification that certain generic
characteristics of
– First party certification— management principles can
A firm audits itself. be standardized.
– Second party • And that a well-designed, well-
certification—Customers implemented and well managed
audit their suppliers. quality system provides
– Third party assessment— confidence that outputs will
Company is assessed by meet customer expectations
outside registrars from and requirements.
ASQ’s Registration • Standards are recognized by
Accreditation Board 100 countries including Japan
(RAB). and USA.
– ISO 9000/Q90 • Intended to apply to all types of
Registration Process businesses. (Recently, B2B firm
• Application to bestroute.com became the
registrar first e-commerce company
to get ISO certification.)
• Preliminary
assessment Created to meet five objectives:

• Full audit 1. Achieve, maintain, and seek to

continuously improve product
ISO 9000: 2000 quality in relation to the
requirements.
• Created by International
Organization for 2. Improve the quality of
Standardization (IOS) which operations to continually meet
was created in 1946 to customers’ and stakeholders’
standardize quality requirement needs.
within the European market.
3. Provide confidence to internal
• IOS initially composed of management that quality
representatives from 91 requirements are being met.
countries: probably most wide
base for quality standards. 4. Provide confidence to the
customers that quality
• Adopted a series of written requirements are being met.
quality standards in 1987
(first revised in 1994, and more 5. Provide confidence that quality
recently (and significantly) system requirements are
in 2000). fulfilled

• Prefix “ISO” in the name refers

to the scientific term “iso” for
equal. Thus, certified
Consists of three documents • Individual sites – not entire
company – must achieve
1. ISO 9000 – Fundamentals and registration individually.
vocabulary.
• All costs are to be borne by the
2. ISO 9001 – Requirements. applicant.
Organized in four sections: • A registration audit may cost
Management Responsibility; Resource anywhere from $10,000 to
Management; Product Realization; and $40,000.
Measurement, Analysis and
Improvement. (more information at http://www.iso.ch)

3. ISO 9004 – Guidelines for Six Sigma

performance improvements.
• Business improvement approach
ISO 9000: 2000 Quality that seeks to find and
Management Principles eliminate causes of defects
and errors in processes by
• Principle 1: Customer Focus focusing on outputs that are
• Principle 2: Leadership critical to customers.

• Principle 3: Involvement of • The term Six Sigma is based on

people a statistical measure that
equates 3.4 or fewer errors
• Principle 4: Process approach or defects per million
opportunities.
• Principle 5: Systems approach
for management • Motorola pioneered the concept
of Six Sigma.
• Principle 6: Continual
improvement • The late Bill Smith, a reliability
engineer is credited with
• Principle 7: Factual approach to
conceiving the idea of Six
decision making
Sigma.
• Principle 8: Mutually beneficial
• GE (specifically CEO Jack Welch)
supplier relationships.
extensively promoted it.
ISO 9000: 2000 registration
Core philosophy based on key
• Originally intended to be a two- concepts:
party process where the
• Think in terms of key business
supplier is audited by its
processes and customer
customers, the ISO 9000
requirements with focus on
process became a third-party
strategic objectives.
accreditation process.
• Focus on corporate sponsors
• Independent laboratory or a
responsible for championing
certification agency conducts
projects.
the audit.
• Emphasize quantifiable
• Recertification is required
measures such as defects per
every three years.
million opportunities (dpmo).
 • Ensure appropriate metrics is – Deming Prize (Japan)
identified to maintain
accountability. – European Quality Award
(European Union)
• Provide extensive training.
– ISO9000 certification
• Create highly qualified process
improvement experts -“belts”. Malcolm Baldrige National Quality
Award (MBNQA)
• Set stretch objectives for
improvement. • Background

Contrasts between traditional – Established in 1987 to

TQM and Six Sigma (SS) - recognize total quality
management in
• TQM is based largely on worker American industry.
empowerment and teams; SS is
owned by business leader • Purpose
champions. – Stimulate U.S.
• TQM is process based; SS companies to improve
projects are truly cross- quality and productivity.
functional. – Establish guidelines and
• TQM training is generally limited criteria to evaluate
to simple improvements tools quality.
and concepts; SS is more – Recognize those firms
rigorous with advanced that improve their
statistical methods. quality.
• TQM has little emphasis on – Provide guidance in how
financial accountability; SS to achieve quality
requires verifiable return on
investment and focus on bottom The Integrated Framework of
line. the Baldrige Award Criteria

Quality Performance Levels

for Various Processes

Recognizing and Rewarding 2001 Award Criteria—Item Listing

Quality

• Promotion of High Quality Goods

and Services

– Malcolm Baldrige
National Quality Award
(MBNQA) (United States)
Benefits of the Baldrige Quality
Criteria

Baldrige guidelines can be used to:

 Help define and design a total

quality system.

 Evaluate ongoing internal

relationships among
department, divisions, and
functional units within an
organization. Recent Winners of the European
Quality Award
 Assess and assist outside
suppliers of goods and services
to a company.

 Assess customer satisfaction.

European Quality Award (EQA)

European Foundation for Quality

Management (EFQM)

 Stimulate and assist European

organizations in quality
improvement activities.

 Support managers in the

adoption of TQM.

EFQM Excellence Model

 A non-prescriptive frame work The Deming Prize

based on nine criteria that
recognizes that there are many • Deming Prize
approaches to achieving – Initiated by Japan in
sustainable excellence. 1951 to recognize the
Overview of the EFQM Excellence importance of high
Model quality products.

– Name after W. Edwards

Deming

– Categories of the Deming

Prize:

• The Deming Prize

for Individuals

• The Deming
Application Prize
• The Quality
Control Award for
Operations/
Business Units