FTQ

Revised September 11, 2006

First Time Quality
PPM
TIME
SAP Course #: 62006505
FTQ
Revised September 11, 2006
2
First Time Quality
What First Time Quality Is
Why It Is Important
Why We Need to Measure It
How to Calculate It
FTQ Deployment, Evaluation and Improvement
Process
Responsibilities
The Structured Approach Steps
The Basic Quality Tools
How to Apply the Quality Tools
Monitoring and Reporting
Class Exercise
FTQ
Revised September 11, 2006
3
What is First Time Quality?

First Time Quality is a measure of the number of
pieces rejected in a manufacturing process versus
the total number of pieces attempted.
REJEC
TS
First Time Quality
FTQ
Revised September 11, 2006
4
Define ALARM LIMITS
Catch and Count Defects
React to ALARM LIMITS
Follow Reaction Plan
Voice of the Customer
Reaction Plan
First Time Quality
Initiate Structured Problem Solving
ZERO Defects Forward
A structured approach
1
2
FTQ
Revised September 11, 2006
5
FTQ can be viewed as a two phase approach:

Immediate action and containment
Whenever alarm limits are exceeded
Helps ensure customer protection
Continual Improvement
Management objective to reduce quantity of rejects and
operational cost
Leadership MUST ensure, support and follow-up with
implementation of FTQ in their facility to be successful

First Time Quality
FTQ
Revised September 11, 2006
6
Why is FTQ important?
Because if we dont make good parts the first time,
we have to inspect in quality
We know inspection is at best 85% effective
Therefore, anytime FTQ is greater than 0, we are
dependent on inspection to protect the customer

To reduce manufacturing costs and defects through
continual improvement (FTQ Tracker or Step Down Chart
are tools to utilize)
To monitor process stability and react quickly to
potential issues (Alarm limits and process
monitoring sheets)
First Time Quality
FTQ
Revised September 11, 2006
7
FTQ should be viewed as a tool to facilitate
operational improvement in:

Quality


Cost
PPM
TIME
First Time Quality
FTQ
Revised September 11, 2006
8
PPM
TIME
into this!
to turn this
FTQ is Key to our Success
First Time Quality
FTQ
Revised September 11, 2006
9
Why does FTQ need to be measured?

Main Reasons:
It is the early signal that a process is out of control
It allows us to respond to problems internally before they
reach our customers
It measures improvement from corrective actions
implemented
If we dont fix our quality problems internally,
we will never be able to fix our external
customer issues
First Time Quality
FTQ
Revised September 11, 2006
10
Filter
Inspection misses some defects
Defects not caught
Problem
Voice of the Customer
Catch Defects D
D
D
Inspection is like a filter.
The fatal flaw of inspection
First Time Quality
FTQ
Revised September 11, 2006
11
Inspection Exercise
THE NECESSITY OF TRAINING FARMHANDS FOR FIRST
CLASS FARMS IN THE FATHERLY HANDLING OF FARM
LIVESTOCK IS FOREMOST IN THE MINDS OF FARM
OWNERS. SINCE THE FOREFATHERS OF THE FARM
OWNERS TRAINED THE FARMHANDS FOR THE FIRST-
CLASS FARMS IN THE FATHERLY HANDLING OF FARM
LIVESTOCK. THE FARMS OWNERS FEEL THEY SHOULD
CARRY ON WITH THE FAMILY TRADITION OF TRAINING
FARMHANDS OF FIRST-CLASS FARMS IN THE
FATHERLY HANDLING OF FARM LIVESTOCK BECAUSE
THEY BELIEVE IT IS THE BASIS OF GOOD
FUNDAMENTAL FARM MANAGEMENT.

Count the Number of Fs contained in the paragraph below (60sec)

FTQ
Revised September 11, 2006
12
Inspection Exercise
THE NECESSITY OF TRAINING FARMHANDS FOR FIRST
CLASS FARMS IN THE FATHERLY HANDLING OF FARM
LIVESTOCK IS FOREMOST IN THE MINDS OF FARM
OWNERS. SINCE THE FOREFATHERS OF THE FARM
OWNERS TRAINED THE FARMHANDS FOR THE FIRST-
CLASS FARMS IN THE FATHERLY HANDLING OF FARM
LIVESTOCK. THE FARMS OWNERS FEEL THEY SHOULD
CARRY ON WITH THE FAMILY TRADITION OF TRAINING
FARMHANDS OF FIRST-CLASS FARMS IN THE
FATHERLY HANDLING OF FARM LIVESTOCK BECAUSE
THEY BELIEVE IT IS THE BASIS OF GOOD
FUNDAMENTAL FARM MANAGEMENT.


Total of 36 Fs

FTQ
Revised September 11, 2006
13
How is First Time Quality calculated?
FTQ is reported in parts per million (PPM) defective

It can be measured at any step in the manufacturing process
where parts are rejected especially where the defect is
originated.

It is calculated by counting the number of pieces rejected versus
the total number of pieces attempted

The total number of pieces attempted includes all good pieces
produced plus all pieces rejected

Pieces rejected are all parts scrapped or reworked prior to usage
by subsequent processes. The actual calculation looks like this:

Number of Pcs. Rejected
Total Number of Pcs. Attempted
X 1,000,000 = FTQ PPM
First Time Quality
FTQ
Revised September 11, 2006
14
How is First Time Quality calculated?
An example at the cell level:

Cell A has six operations



Reject data is collected at operations 3
and 6.
Cell A produced 1040 good pieces during the first hour.
At OP.3, 28 pcs. were rejected.
At OP.6, 16 pcs. were rejected.

What is the FTQ in PPM for Cell A?
28 + 16 44
1040 + 28 + 16 1084
1 2 3 4 5 6
= X 1,000,000 = 40,590 PPM FTQ
28
16





Operations


1
HR.


2
HRS.


3
HRS.


4
HRS.


5
HRS.


6
HRS.


7
HRS.


8
HRS.

1



2



3

28


4



5



6

16



Tally Sheet
First Time Quality
FTQ
Revised September 11, 2006
15
First Time Quality
What First Time Quality Is
Why It Is Important
Why We Need to Measure It
How to Calculate It
FTQ Deployment, Evaluation and Improvement Process
Responsibilities
The Structured Approach
The Basic Quality Tools
How to Apply the Quality Tools
Monitoring and Reporting
Class Exercise
FTQ
Revised September 11, 2006
16
Plant A
Plt B
Plt C
CELL
1
2 3
4 5
7 8 N
6
OPERATOR OPERATOR OPERATOR OPERATOR OPERATOR
TEAM
LEADER
CROSS-
FUNCTIONAL
TEAM
Potential Members:
- TEAM LEADER
- OPERATIONS/MANUFACTURING
- QUALITY ENGINEER
- PROCESS ENGINEER
- INDUSTRIAL ENGINEER
- MAINTENANCE
- PRODUCT ENGINEER
- SUPPLIER QUALITY
PRODUCT
ENGINEERING

QUALITY MAINTENANCE OPERATIONS
PROCESS
ENGINEERING

PLANT MANAGER
PC&L
CELL
FTQ Improvement Process
Stakeholder involvement
FTQ
Revised September 11, 2006
17
CFT
PROCESS
QUALITY
ENGINEER
OPERATIONS
PROCESS
ENGINEER
PRODUCT
ENGINEER
MAINTENANCE
INDUSTRIAL
ENGINEER
DEFINE REACTION
PLAN & ALARM LIMITS
IDENTIFY & COUNT
DISCREPANT PARTS
IMPLEMENT ALARM
REACTION PLAN (IF
EXCEEDED)
RECORD DATA
ANALYZE DATA
SELECT & PLAN
IMPROVEMENT
IMPLEMENT
IMPROVEMENT
EVALUATE
INSTITUTIONALIZE
LESSONS LEARNED
LEAD SUPPORT
Typical Responsibilities Flowchart
FTQ Improvement Process
FTQ
Revised September 11, 2006
18
Delphi SQ or SDE Responsibilities

Ensure supplier understands, and if necessary,
obtains appropriate training on the FTQ
Improvement process
Monitor implementation progress during FTQ
activities
Conduct 5 step site evaluation for FTQ
implementation
Set stage for improvement activities
Outline plan of attack
Document improvement plan ( i.e. through an A3)

FTQ Implementation
FTQ
Revised September 11, 2006
19
IDENTIFY ANALYZE PLAN
EVALUATE
IMPLEMENT
- PROCESS CONTROL PLAN
IDENTIFY &
COUNT
DISCREPANT
PARTS
IMPLEMENT
IMPROVEMENT
EVALUATE
INSTITUTION-
ALIZE
LESSONS
LEARNED
TOOLS FOR
IDENTIFICATION:
- PROCESS CONTROL
PLAN
- BOUNDARY SAMPLES

TOOLS FOR COUNTING:
- PARTS COUNTERS
- TALLY SHEETS
- SIZED CONTAINERS

TOOLS:
- PARETO
- CAUSE & EFFECT
(FISHBONE)
- CONCENTRATION
DIAGRAM
- FLOW CHART
- HISTOGRAM
- SCATTER
DIAGRAM
- CHECK SHEET
- 5 WHY'S
EXAMPLES:
- CROSS-FUNCTIONAL
TEAMS
- CHANGE BOARDS
- RPN REDUCTION
- STATISTICAL ENGINEERING
PROJECTS

ACTION PLAN:
- WHAT, WHEN, WHO
TOOL:
- ACTION PLAN
TOOLS:
- PFMEA
- LOOK-ACROSS-CHART
- 5 WHY'S

SELECT &
PLAN
IMPROVEMENT
NEW LEVEL
OF
QUALITY?
DEFINE
REACTION
PLAN &
ALARM
LIMITS
RECORD
DATA
TOOLS:
- CONTROL
CHART
ANALYZE
DATA





TOOL:
- RUN CHART





- GATE CHART
ALARM
EXCEEDED
?
IMPLEMENT
ALARM
REACTION
PLAN
YES
NO
NO
YES
SELECT CONTAIN CORRECT PREVENT
Delphi Problem
Solving Process
FTQ Improvement Process Overall
FTQ
Revised September 11, 2006
20
Define ALARM LIMITS
Catch and Count Defects
React to ALARM LIMITS
Follow Reaction Plan
Voice of the Customer
Reaction Plan
First Time Quality
Initiate Structured Problem Solving
ZERO Defects Forward
A structured approach
1
2
FTQ
Revised September 11, 2006
21
FTQ Improvement Process
Define alarm limits and reaction plan
Alarm limits must be based on current process reject
data or available data from Machine qualification runs,
Run at Rate, historical data, etc.
Need to collect data long enough to ensure you
understand the types and quantities of defects that fall
out from your current process. Limits for common cause
(chronic) rejects may be statistically calculated
Understand process and expected defects (what
types and quantities of defects)
Determine the process normal range of variation by
charting the reject data over time
FTQ
Revised September 11, 2006
22
FTQ Improvement Process
Define alarm limits and reaction plan
Limits for special cause (non chronic) rejects must be set
at one piece
Limits must be communicated to operators so they can
react
If alarm limits are exceeded, there must be a
documented reaction plan which includes containment of
product and process corrections.
Employees may find clever ways to identify abnormal
process state as the process matures
The immediate action taken is the most important step in
containing the problem until it has been eliminated and
verified
FTQ
Revised September 11, 2006
23
Hours or Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Non-conforming 8 10 9 11 9 8 6 8 7 11 12 11 13 18 17 12 9 10 7 8 5 9 11 8 7
Sample Size (Avg) 18
Defects
wing mark 2 1 5 4 2 1 3 4 2 2 1 3 1 2 1 1 2 1 1 1
wing / body fold 3 2 1 2 5 1 2 2 2 5 2 3 4 5 1 2 4 5 6 7 1 1 2 2 3
wrong paint dot 2 2 1 5 1 2 3 5 4 3 3 6 8 1 1 3 1 4 3 3
paint location 3 4 2 1 2 3 7 2 2 2 2 4
wrong or no clip 1 2 2 1 1 1 3 1 1 3 2 6 1 2 1 1 4 3
Total nonconforming: 8 10 9 11 9 8 6 8 7 11 12 11 13 18 17 12 9 10 7 8 5 9 11 8 7
Production 18 18 19 18 20 18 17 18 18 19 18 19 19 18 17 18 18 19 18 20 18 18 20 18 19
PPM Defective
np1+np2+..np
k where np= number nonconformin, k= subgroups
k
"=SUM(C3:AA3)/25"

UCL
np
= 0
UCL
np
= 0
LCL
np
= 0
LCL
np
= 0
0
5
10
15
20
25
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
UCL=
LCL=
N
o
n
c
o
n
f
o
r
m
i
n
g
avg=
NP Charting for FTQ
Subgroups ( Days)
np
np
0
10
20
30
40
50
60
70
80
90
100
Defects Pareto
UCL=np + 3*
(np(1-np/n))
LCL=np - 3*
(np(1-np/n))
n = avg sample size (18)
np = number nonconforming
k = subgroups (25)
__
np = np1+np2+..np
k

k
0
2
4
6
8
10
12
14
16
18
20
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
UCL=16.1
LCL=3.4
avg= 9.8
Alarm Limit Calculation using
np Chart
FTQ
Revised September 11, 2006
24
AREA: HVAC Jan 30 Feb 5
DEFECTS
T
u
r
n
o
s
I
n
d
i
c
a
d
o
r

(
U
C
L
)
A 8
B 8
C
A 5
B 5
C 5
A 4
B 4
C 4
A 4
B 4
C 4
A 4
B 4
C 4
A 3
B 3
C 3
A 3
B 3
C 3
A 3
B 3
C 3
A 2
B 2
C 2
A 2
B 2
C 2
11.- A
11.- B
11.- C
12.- A
12.- B
12.- C
Instructions
1.- Mark to be used by each shift: GP-12 X (Red X) Final insp./Rework/Process/Scrap X (Black X)
3.- Control limits calculation for non chronic defects (np):
a) Calcular avarage del numero por defecto

np = np1 + np2 + np3 + .. + npk np = Son los numeros de defectos de cada subgrupo de k
k
b) Calcular limites de control superior e inferior (UCL, LCL)
UCL = np + 3 np ( 1 - np / n ) = np + 3 np ( 1 - p )
DEPT: Quality 259W WEEK:
2.- Team: a) Shift leader will give follow up to each defect recorded. b) When a defect reaches the yellow color limits, apply supervisor's reaction protocol; if the red color limits are reached, apply managerial
reaction protocol. c) The Quality auditor is responsible for checking the squares with the appropriate color in case that a defect is detected. d) This format is for one week. e) The Quality technician is
responsible for archiving this format on a weekly basis. f) The Quality engineer is responsible for monthly updating the reaction and control limits.
6.- Vibration
7.- Wrong assembled thermistor
8.- Damaged evaporator pipes
10.- Air leak
2.- Wrong assembled case
3.- Damaged cases
4.- Missing screws
Friday Tuesday
5.- Warped cases
Monday
1.- Broken case
NC
9.- Damaged mounting plate
NC
to
Wednesday Thursday
CELL:
Alarm Limit Calculation using
np calculation and Stop Light control method
FTQ
Revised September 11, 2006
25
Quality Alarm
Limit:
Example: Rejected Parts Counter
The counter is flipped
for each defect. The
color will change from
green to yellow to
red.

Yellow indicates
action required and
red will stop the
process.

Small white tags are
placed with each
defective part to
identify the specific
defect.
FTQ
Revised September 11, 2006
26
Identify and count rejected parts
Operators must have sufficient tools and skills in order to identify
product discrepancies
It is recommended that rejected parts be removed from the cell
station at a defined frequency so they may be counted and
categorized by defect or rework code

Tools to enhance the operators ability to identify product
discrepancies include:
Boundary Samples
Illustrations
Photographs
Gages

Tools for counting rejected parts include:
Parts Counters
Tally Sheets
Sized Containers
FTQ Improvement Process
FTQ
Revised September 11, 2006
27
FAILURE MODE HAS A KNOWN ASSIGNABLE CAUSE.
REACT AT FIRST OCCURRENCE
IMMEDIATE FIX / CORRECTION.
BASED ON OPERATOR CERTIFICATION PROGRAM.
STOP & Contain
FIX
START
Special Cause (Non-chronic) Rejects
FTQ Improvement Process
FTQ
Revised September 11, 2006
28
DEFECTS
SEGREGATION
PROCESS VERIFICATION
STOP and Contain
FIX
START
Common Cause (Chronic) Rejects
FAILURE MODE ROOT CAUSE NOT IDENTIFIED.*
NO IMMEDIATE FIX / CORRECTION.
USE PROBLEM SOLVING METHODOLOGIES (RED X / 6 SIGMA)
REACTION BASED ON CONTROL LIMITS (STATISTICALLY CALCULATED)
FTQ Improvement Process
np chart
0
5
10
15
0 10 20 30 40
Lot number
n
p
LCLnp
np-bar
UCLnp
Or many sources or causes ( i.e. technology
inherent defects or defects caused by many
sources of a root cause such as contamination/foreign material.)
No known immediate fix is available to eliminate root cause of defect.
FTQ
Revised September 11, 2006
29
Implement Alarm Reaction Plan if Limit Exceeded

Reaction Plan:
Alarm Limit Exceeded?

Contain


Investigate




Implement Containment Plan
Until Problem Fixed
Yes
Containment Plan
FTQ Improvement Process
FTQ
Revised September 11, 2006
30

Record Data
Data must be recorded and plotted over time:
At the cell level, the number of pieces rejected shall be
recorded by defect category at a defined frequency. This data
must be used to react to abnormal process conditions (process
monitoring)

Since the area of opportunity varies from sample to sample, the
reject count must be converted into a rate (FTQ PPM) prior to
charting

Each area should have a performance tracking board that would
reflect the manufacturing FTQ information by shift
FTQ Improvement Process
FTQ
Revised September 11, 2006
31
Analyze Data

The basic quality tools are:
Flow Charting
Check Sheets
Pareto
Cause and Effect
Run Chart
Histogram
Scatter Diagram
Control Chart


FTQ Improvement Process
FTQ
Revised September 11, 2006
32
Initiate Structured Problem Solving

Understand Defects and
Decide the Order of Priority:




Assign problems to
Cross-Functional Group:


Select and
Plan the Improvement: 1 Right Information 2 Right Cause 3 Right Timing




Fix the Biggest Problems First:
1
2
A B C D
Problems
1

2

1

2

Responsible
Team Works
Problems
DEFECT
1. ----------------------
2. ----------------------
3. ----------------------

4
3
2
3
2 2
1 1 1 1
First Time Quality Process
FTQ
Revised September 11, 2006
33


Analyze Data

Problem Identification Problem Analysis
Flowchart

Brainstormin
g




Pareto Chart
Cause & Effect
Control Chart
Check Sheet
Run Chart
Stratification
Histogram

Scatter Diagram

Process Capability


Charts can be used for different purposes in various stages of the problem-solving process
The tools included in the intersecting portion of this diagram can be used in both the
problem identification and problem analysis phase of problem solving
FTQ Improvement Process
FTQ
Revised September 11, 2006
34
Histogram
A histogram is a
specialized type of
bar chart. Individual
data points are
grouped together in
classes, so that you
can get an idea of how
frequently data in
each class occur in the
data set. High bars
indicate more points in
a class, and low bars
indicate fewer points

FTQ Tools
FTQ
Revised September 11, 2006
35
Pareto Chart
Pareto charts are used to display the Pareto principle in
action, arranging data so that the few vital factors that
are causing most of the problems reveal themselves.
Concentrating improvement efforts on these few will have
a greater impact and be more cost-effective than
undirected efforts.

FTQ Tools
FTQ
Revised September 11, 2006
36
Scatter Diagram
Scatter Plots (also called scatter diagrams) are
used to investigate the possible relationship
between two variables that both relate to the
same "event." A straight line of best fit (using
the least squares method) is often included.

FTQ Tools
FTQ
Revised September 11, 2006
37
Control Charts
The point of making control charts is to look at
variation, seeking special causes and tracking
common causes.

FTQ Tools
FTQ
Revised September 11, 2006
38
Flow Charting
Flowcharts are maps or graphical representations of a process.
They are particularly useful for displaying how a process currently
functions or could ideally function. Flowcharts can help you see
whether the steps of a process are logical, uncover problems or
miscommunications, define the boundaries of a process, and develop
a common base of knowledge about a process. Flowcharting a
process often brings to light redundancies, delays, dead ends, and
indirect paths that would otherwise remain unnoticed or ignored.


FTQ Tools
FTQ
Revised September 11, 2006
39
Check Sheets
Check sheets are employed to verify compliance and ensure specific
events are completed in the timing and sequence required.


FTQ Tools
FTQ
Revised September 11, 2006
40
Cause & Effect
The cause and effect diagram is used to explore all the
potential or real causes (or inputs) that result in a single
effect (or output). Causes are arranged according to
their level of importance or detail, resulting in a
depiction of relationships and hierarchy of events. This
can help you search for root causes, identify areas where
there may be problems, and compare the relative
importance of different causes.

Example Cause & Effect Diagram (Fishbone)
FTQ Tools
FTQ
Revised September 11, 2006
41
Run Charts
Run charts (often known as line graphs outside the
quality management field) display process performance
over time. Upward and downward trends, cycles, and
large aberrations may be spotted and investigated
further. In a run chart, events, shown on the y axis, are
graphed against a time period on the x axis.

FTQ Tools
FTQ
Revised September 11, 2006
42
First Time Quality
Manager Audit Checklist Example



A.) Define Reaction Plan & Alarm Limits. Yes No Comments:



1. Are the alarm limits established based on current process
rejects data?





2. Are the alarm limits communicated to operators?





3. Is the reaction plan established by defect?






4. Has the PCP the FTQ information for Chronic Rejects, KPCs
and QCIs?

B.) Identify and Count Rejected Parts. Yes No Comments:
.



1. Does the operator have sufficient tools and skills in order to
identify product discrpancys?





2. Are rejected parts removed from cell station on the established
frequency basis?






C.) Record Data Yes No Comments:



1. Is the FTQ trend chart in PPM s by cell and shift?





2. Is the FTQ Tri Chart or Gate Chart used as standards to
record the data?






D.) Implement Alarm Reaction Plan if Limit Exceeded. (Max- Min) Yes No Comments:



1. Is there an evidence of reaction plan implementation?






E.) Select Plan Improvement and Implementation? Yes No Comments:



1. Is there an evidence of an improvement plan developed?





2. Are corrective actions been implemented?






F.) Evaluate Yes No Comments:



1. Was the record data up-dated to reflect the corrective actions
effect?





2. If corrective actions were effective new alarm limits were
established?









Supplier:

Date:

Location:

Duns:


Part No./Description:

Auditor/Title:

FIRST TIME QUALITY
AUDIT CHECKLIST
FTQ
Revised September 11, 2006
43
Additional tools to Facilitate FTQ
Improvement
Quality Tools
Statistical Engineering to develop solutions
6 Sigma
Shainin
Lean Tools
Value Stream Mapping
Workplace Organization
Error Proofing
FTQ
Revised September 11, 2006
44
Select and Plan Improvement

After FTQ problems have been identified through
data analysis, improvement plans must be developed

A recommended template has been provided to track
implementation status of corrective actions (FTQ
Tracker or Step Down Chart)

To be make problem solving truly effective, standard
work must be utilized. Standard work is like a recipe:
varying method and content will not yield same
results!
FTQ Improvement Process
FTQ
Revised September 11, 2006
45

Implement and Evaluate
Once the Corrective Action has been implemented, the data must
be evaluated for trends or shifts

Did the problem stay killed? Can you turn the problem on and
off? If so, change alarm limits and update the documentation

This is one of the reasons it is so important to collect data over
time

Without data there is no way to evaluate the impact of the
corrective action on the process

If no significant reduction in FTQ PPM is observed, then it is
possible the cause was misidentified
FTQ Improvement Process
FTQ
Revised September 11, 2006
46
1. Walk the
Value Stream
and OBSERVE
(5S,
standardization,
training, metrics,
etc.)

2. Does
standardization
exist in facility?

3. Review using
PFD or Current
State Value
Stream Maps as
needed. Identify
Kaizen
opportunities.
1. Pareto
customer issues
by systemic
root causes from
past (6-12 mo) of
Problem Cases
- Input for
improvement
priorities

2. What systems
are in place to
identify and
improve the top
issues daily,
weekly, and/or
monthly?
1. Review pareto
of internal issues
from past 6-12
mo (FTQ, scrap,
rejects, audits)

2. What systems
are in place to
identify and
improve the top
issues daily,
weekly, and/or
monthly?
1. What other
continual
Improvement
Activities are
in progress?

2. How were the
activities
selected?

3. How is the
effectiveness of
the activities
measured?
1. Implement
FTQ
Improvement
Process

2. Prioritize,
assign resp., and
set target dates
for action items

3. Use A3 format
to document the
plan
Understand
the
Value Stream
Pareto
Customer
Issues
Review
Internal
Issues
Review Other
Improvement
Activities
FTQ
Process
1
2
3
4
5
5 Step Site Evaluation Plan
FTQ
Revised September 11, 2006
47
5 Step Site Evaluation Plan
Example: Customer Issues
Problem Case Problem Descriptions
(Jan03 - Mar03)
0
1
2
3
4
5
6
7
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(
1
)

1
0
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s
Problem Case Root Causes - Systemic Issues
(Jan03-Mar03)
0
4
8
12
16
Lack of
standardized
instructions
(press setup;
f inishing)
No f ormal system
to manage
customer issues
Lack of standard
process f or
containment
Inadequate f in
goods inv levels;
No re-order
points
Poor Mtrl ID No PPAP
submittal tracking
system
Lack of
understanding
customer ship
requirements
(Overship)
Transmission
systemf ailure;
No systemto
assure
f unctionality
APQPf ailure;
Print
requirements not
f ully reviewed
No systemto ctrl
revisions
FTQ
Revised September 11, 2006
48
5 Step Site Evaluation Plan
Example: First Time Quality (internal)
First Time Quality - July 2003
62, 849 PPM
0
5000
10000
15000
20000
25000
I
n
k

/

P
r
i
n
t
Q
u
a
l
l
i
t
y
P
r
o
c
e
s
s

/
S
e
t
u
p
S
t
i
c
k
y
R
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g
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s
t
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a
t
i
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H
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k
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p
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g
/

5
S
W
r
i
n
k
l
e
s
D
i
e

C
u
t
P
P
M
Next steps:
1. Determine root cause /
systemic issue
2. Pareto
3. Attack top 70~80%
FTQ Per Press #
(July 2003)
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
6 1 8 3 NR 7 2 4 5
Press #
P
P
M
FTQ
Revised September 11, 2006
49

Institutionalize Lessons Learned and Look Across
Lessons Learned must be incorporated into all existing
documentation. Then Look Across to ensure implementation
in all applicable processes, products.
DFMEAs
Process Flow Diagram
PFMEAs
Process Control Plans
Process Routings
Operating Instructions
Employee Instructions
Product Drawings
Tool Drawings
Total Productive Maintenance (T.P.M.)
Boundary Samples
FTQ Improvement Process
FTQ
Revised September 11, 2006
50
Class Exercise (notes contain details)

Alarm Limit Calculation using np Chart-
Class Exercise
FTQ
Revised September 11, 2006
51
How is First Time Quality calculated?
An example at the cell level:

Cell A has six operations



Reject data is collected at operations 3 and 6.

Cell A produced 1040 good pieces during the first hour.
At OP.3, 28 pcs. were rejected.
At OP.6, 16 pcs. were rejected.

What is the FTQ in PPM for Cell A?
28 + 16 44
1040 + 28 + 16 1084
1 2 3 4 5 6
= X 1,000,000 = 40,590 PPM FTQ
28
16





Operations


1
HR.


2
HRS.


3
HRS.


4
HRS.


5
HRS.


6
HRS.


7
HRS.


8
HRS.

1



2



3

28


4



5



6

16



Tally Sheet
First Time Quality
FTQ
Revised September 11, 2006
52
Alarm Limit Calculation using np Chart-
Class Exercise
Hours or Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Non-conforming 8 10 9 11 9 8 6 8 7 11 12 11 13 18 17 12 9 10 7 8 5 9 11 8 7
Sample Size (Avg) 18
Defects
wing mark 2 1 5 4 2 1 3 4 2 2 1 3 1 2 1 1 2 1 1 1
wing / body fold 3 2 1 2 5 1 2 2 2 5 2 3 4 5 1 2 4 5 6 7 1 1 2 2 3
wrong paint dot 2 2 1 5 1 2 3 5 4 3 3 6 8 1 1 3 1 4 3 3
paint location 3 4 2 1 2 3 7 2 2 2 2 4
wrong or no clip 1 2 2 1 1 1 3 1 1 3 2 6 1 2 1 1 4 3
Total nonconforming: 8 10 9 11 9 8 6 8 7 11 12 11 13 18 17 12 9 10 7 8 5 9 11 8 7
Production 18 18 19 18 20 18 17 18 18 19 18 19 19 18 17 18 18 19 18 20 18 18 20 18 19
PPM Defective
np1+np2+..np
k where np= number nonconformin, k= subgroups
k
"=SUM(C3:AA3)/25"

UCL
np
= 0
UCL
np
= 0
LCL
np
= 0
LCL
np
= 0
0
5
10
15
20
25
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
UCL=
LCL=
N
o
n
c
o
n
f
o
r
m
i
n
g
avg=
NP Charting for FTQ
Subgroups ( Days)
np
np
0
10
20
30
40
50
60
70
80
90
100
Defects Pareto
UCL=np + 3*
(np(1-np/n))
LCL=np - 3*
(np(1-np/n))
n = avg sample size (18)
np = number nonconforming
k = subgroups (25)
__
np = np1+np2+..np
k

k
Reference Attribute Data, AIAG SPC Manual, page 111
FTQ Tools
FTQ
Revised September 11, 2006
54
2004 CY FTQ Performance
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2
0
0
3

D
e
c

F
i
n
a
l
J
a
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F
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M
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A
p
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J
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A
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S
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O
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N
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v
D
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c123456789
1
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0
F
T
Q

V
a
l
u
e

(
P
P
M
)
FTQ
Goal
Projection
Monthly Values Daily Values
2004 CY FTQ Performance Data
2003 Dec Final Jan Feb Mar Apr May Jun Jul Aug
FTQ 9000 8000 7000 6000 5000 4000 3000 3000 3000
Projection 8000 6500 6000 5500 5000 4500 4500 4000
Goal 4500 4500 4500 4500 4500 4500 4500 4500
FTQ - Performance Tracking
FTQ
Revised September 11, 2006
55
FTQ
In this row put in actual monthly values for FTQ PPM.
Chart below will automatically generate and will
automatically show up in FTQ display format tab.
You can print out the FTQ Display tab to post on you
cell " Glass Wall"
Year-End Final %:
Put in 2003 month of December FTQ
value in PPM here
2003 Dec Final Jan Feb Mar Apr May Jun Jul Aug
FTQ 9000 8000 7000 6000 5000 4000 3000 3000 3000
Projection 8000 6500 6000 5500 5000 4500 4500 4000
Goal 4500 4500 4500 4500 4500 4500 4500 4500
Forecast
Put in your Forecast by month here. Forecast
line will automatically be plotted above.
Goal:
Put in your year end goal. Corporate goal is a
minimum of 50% from December month actual
in previous year
FTQ - Performance Tracking
FTQ
Revised September 11, 2006
56
FTQ Top 5 Pareto
800
575
400
325
120
0
200
400
600
800
1000
C
r
o
s
s
e
d
W
i
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s
D
a
m
a
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d
T
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U
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M
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C
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p
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B
r
a
n
c
h

o
u
t
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f

t
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l
e
r
a
n
c
e
Cell/Process
P
P
M
Top 5 Quality Defects
FTQ - Top 5 Issues
FTQ
Revised September 11, 2006
57


FTQ Tools Step Down Chart
FTQ IMPROVEMENT PROCESS - STEP DOWN CHART
Action item target dates met
Action item target dates not met
Level 1 Level 2 Level 1
No actions items assigned for this month
PPM
CYTD
Action Item List Color Code:
20940
Level 2 CS
(number newinitiated)
6.0
9000
24080
Start Past 6 Month
Ave.
7900 10000
5.80
(monthly average)
Actual
4.5
3
(per month)
FTQ - Process 5
Dec-04
17
9300
10300
9500
Actual Target
4.86
Oct-04 Nov-04
2000 1300
10 15.0
(monthly average)
10000 9500
Current Month
Status
(monthly average) (per month)
360 600
400 400
Metric Start Month Status
(monthly average)
(number of open)
(per month)
11000 8500
12000 9600 14400 FTQ - Process 6
(per month) (monthly average)
1200 1200 5500
1400
7500
1100 1100
1000
Kickoff Date
Target Actual Target Actual
Supplier
Target Actual
Jan-05 Feb-05 Mar-05 Apr-05
3.0
7.0
8.0
8300
6500
10.0

Supplier Contact
Name
Phone Number
Delphi SQ Champion
Name
Phone Number
Name
Number of Defects
(per month)
FTQ - Process 1
Delphi Single Point SQE Delphi Purchasing Contact
27220
Phone Number Phone Number
Supplier DUNs #
Metric
Supplier Name
PPM
Target
4.7 5.0
Actual
(monthly average)
3.5
4.0
10 13.0
7
(monthly average)

Name
(per month) (monthly average)
8500
FTQ - Process 4 9700
(per month)
7300 6300
7300
6600
9200
11400 9500
900

8000
FTQ - Process 9 900
280
(per month) (monthly average)
FTQ - 5 Processes
Total
36200 33400 33200
(per month)
700 320
240
27100 30360
25500
Red /
Green
will
indicate
whether
targets are
met
FTQ of
Relevant
Processes
contributing
to Delphi
APR/WAR/
LP/ FTQ
FTQ
Revised September 11, 2006
58
FTQ Tools
FTQ IMPROVEMENT PROCESS - ACTION PLAN
Issue Identified Action Plan Implemented
Action Plan Proposed Issue Resolved
Action Items List
Top Defect Action Items
Top Defect Action items
Top Defect Action items
Top Defect Action items
Process 1
Process 4
Process 6
Comments Item Resp
Process 9
Target Dates Actual Completion Dates
Plan Impl. Verify Impl. Plan Verify
FTQ
Revised September 11, 2006
59
Action Plans to Address
Top 5 Issues
FTQ PPM
by Issue
Issue Problem Discription Corrective Action Planned Start Date Target Date Status FTQ Impact Owner(s)
800
Crossed
Wires
575
Damaged
Terminals
400
Unseated
Ternimals
325
Missing
Components
120
Branch out
of Tolerance
99 Issue 6
80 Issue 7
70 Issue 8
See comments on each column noted above in red. Mouse over to see. = On track to meet target date
= Off track to meet target date by < 1 month
= No Plan or off track to meet target date >1 month
These have to pasted into the cells in column H above manually.
Pending Actions to address Top 5 Issues
FTQ
Revised September 11, 2006
60
Class participants complete FTQ Quiz(10 minutes)

Review Responses
Wrap Up Quiz
FTQ
Revised September 11, 2006
61
FTQ Quiz Responses
First Time Quality (FTQ) is an improvement measurement of PPM
reduction over time .
We measure FTQ by counting the number of pieces rejected versus
the total number of pieces attempted.
If we dont make good parts the first time, we have to inspect in
quality. Inspection is only 85% effective at best.
FTQ is a tool to facilitate our operational improvement in quality and
cost.
Inspection is like a filter, and will miss some defects.
If we dont fix our quality problems internally, we will never be able
to fix our external customer issues.
Number of pieces rejected /Total number of pieces attempted
X 1,000,000 = FTQ PPM
FTQ
Revised September 11, 2006
62
FTQ Quiz Responses
The most important step in containing the problem is the immediate
action taken, which leads to the elimination of the problem.
Non-chronic rejects require immediate reaction at the first
occurrence.
Chronic rejects are those whose failure mode root cause has not been
identified or fixed.
When alarm limit is exceeded, the reaction plan must be implemented,
and we implement a containment plan until the problem is fixed.
One example of a basic quality tool used to analyze data is a Pareto
chart.
The tool used to track implementation status of corrective action and
improvement is the FTQ Tracker (or Step Down Chart).
All existing documentation must be updated in order to institutionalize
lessons learned.
FTQ
Revised September 11, 2006
63
Closing Comments - FTQ Improvement Process
Implement Improvement

Work the Action Plan

Update plan as required

Document improvements

FTQ
Revised September 11, 2006
64
Closing Comments - FTQ Improvement Process
Remember Delphis Suppliers are responsible for
their sub-tier suppliers:
Roll the FTQ process out to sub-tier suppliers
to help them gain the improvement benefits
and to lower the probability of your company
receiving non-conforming parts
FTQ
Revised September 11, 2006
65
FTQ Expectations & Key Points
FTQ is a Requirement:

A FTQ Process, that Monitors & Controls at the point of build.
Set FTQ Alarm Limits to 1 reject for all safety critical features.
Set FTQ Alarm Limits to 1 reject for all non-chronic(special cause) failures
Reaction Plans include extra containment to Protect the Customer.
Customer notification evaluated by engineering on special cause events.
FTQ Reduction through a Rolling Top 5 or equivalent process.
Delphi Tier 1 suppliers ensure FTQ is correctly implemented
Delphi Customer Specific Requirement 7.3.6.3: Product Approval Process,
The supplier is expected to develop and implement a FTQ process with
appropriate alarms and reaction plans defined.
Goal is Zero Incidents, Zero Spills, Zero Defects to our Plants.