AMB7123

Quality Systems
Management
Quality Tools & Improvement Cycle
Chapter 3
 Content
• Introduction
• Quality Tools
• Ishikawa Diagram
• Flowchart
• Checklist & Check Sheet
• Control Chart
• Scatter Diagram
• Pareto Diagram
• Histogram
• PDCA & Improvement Cycle
• Kaizen
Introduction (cont.)
Quality Tools & Improvement
• Quality improvement places a great deal of responsibility
on all people involved.
• However, to be able to identify and correct quality
problems, all involved need proper training, to
understand:
• How to assess quality.
• How to interpret findings.
• How to correct problems.
• These are made simpler by using a variety of quality
control tools (some have been discussed earlier).
• Easy to understand but very useful in identifying and
analysing quality problems
Introduction (cont.)
Quality Tools & Improvement….
• The use of quality control tools enables quality to be built
into the process at the source.
• Quality at the source is a Quality Management philosophy
that promotes the culture that it is far better to uncover the
source of quality problems and correct it than discard
defective items after production.
• Quality at the source exemplifies the difference between
old and new concepts of quality
• Old concept – inspecting goods after they were produced. If
inspection revealed defects, they were discarded or sent
back for reworking.
• New concept – identify quality problems at source and
correct them immediately.
Quality Tools
Basic Tools of Quality Control
1. Cause-and-Effect Diagrams
2. Flowcharts
3. Checklists & Check sheets
4. Control Charts
5. Scatter Diagrams
6. Pareto Analysis
7. Histograms
Quality Tools (cont.)
Cause-and-Effect Diagrams
• Introduced by Kaoru Ishikawa.
• Also called Ishikawa Diagrams or Fishbone Diagrams
(because a completed diagram can look like the skeleton
of a fish)
• The purpose is to relate causes and their effects.
• Focused on solving identified quality problem.
• Used to identify potential causes of particular quality
problems, by quality control teams - quality circles.
• Combine Brainstorming and Mind Map technique, that
push for all possible causes of a problem, rather than just
the ones that are most obvious.
Quality Tools (cont.)
Cause-and-Effect Diagrams….
• The “head” of the fish is quality
problem.
• The “spine” connects the “head” to
the possible causes of the problem.
• Each special cause has smaller “bones”
addressing specific issues.
Quality Tools (cont.)
Cause-and-Effect Diagrams….
• The cause-and-effect diagram is a method for analysing
process dispersion.
• Three basic types: Dispersion analysis, Process
classification and cause enumeration.
• Effect = problem to be resolved, opportunity to be
grasped, result to be achieved.
• Excellent for capturing team brainstorming output and
for filling in from the 'wide picture'.
• Helps organise and relate factors, providing a sequential
view. Deals with time direction but not quantity. Can
become very complex.
Quality Tools (cont.)
Cause-and-Effect Diagrams….
How to use the tool
Step 1: Identify the Problem
What is the problem
Step 2: Work Out the Major Factors Involved
Identify by brainstorming as many as possible from 7S:
Strategy, Structure, Systems, Shared values, Skills, Style &
Staff
Step 3: Identify Possible Causes
Brainstorm for possible causes.
Step 4: Analyze the Diagram
Quality Tools (cont.)
Cause-and-Effect Diagrams….
Example

Suppliers Workers Machines

late deliveries training maintenance
ability calibration
out-of-spec materials
supervision type
defects experience age
Quality
Problem
temperature poor process out-of-spec
dust
poor product design type
lighting
ventilation poor quality mgmt material grade

Environment Processes Materials

Quality Tools (cont.)
Cause-and-Effect Diagrams….
Example
Quality Tools (cont.)
Flowcharts
• Schematic diagram of sequence of steps – can be detailed
- in a process.
• Enable modelling of processes; challenges (problems) and
opportunities, decision points etc.
• Provide a common understanding of a process by those
involved.
Quality Tools (cont.)
Flowcharts….
Example
Quality Tools (cont.)
Checklist
• Simple data check-off sheet
• A Checklist contains items that are important or relevant to
a specific issue or situation.
• e.g. a list of common defects and the number of observed
occurrences of these defect
Quality Tools (cont.)
Checklist….
• Checklists are used under operational conditions to ensure
that all important steps or actions have been taken.
• Their primary purpose is for guiding operations, not for
collecting data.
• Generally used to check that all aspects of a situation
have been taken into account before action or decision
making.
• Simple but effective.
Quality Tools (cont.)
Check Sheet
• A Check Sheet is a data recording form that has been
designed to readily interpret results from the form itself.
• It needs to be purpose-designed for its use.
• Used for the collection of quantitative or qualitative
repetitive data. Adaptable to different data gathering
situations.
• Minimal interpretation of results required.
• Easy and quick to use but no control for various forms of
bias - exclusion, interaction, perception, operational,
non-response, estimation.
Quality Tools (cont.)
Control Charts
• The upper control limit (UCL) and lower control limit
(LCL) are used to show when a process is in or out of
control i.e. weight, width etc
• Utilised a method of SPC in production processes.
• enable the control of distribution of variation rather than
attempting to control each individual variation.
• Upper and lower control limits are calculated for a
process, and sampled measures are plotted about a
central line between the two sets of limits.
• The plotted line corresponds to the stability/trend of the
process.
• Action can be taken based on trend rather than on
individual variation.
Quality Tools (cont.)
Control Charts
Quality Tools (cont.)
Scatter Diagrams
• Graphs showing how two variables are related to one
another.
• The greater the degree of correlation, the more linear
are the observations.
• The Y axis is conventionally used for the characteristic
whose behaviour is to be predicted.
Quality Tools (cont.)
Pareto Analysis
• A technique that displays the degree of importance for
each element.
• Named after the 19th century Italian economist; often
called the 80-20 Rule.
• The principle is that quality problems are the result of
only a few problems i.e.; 80% of problems are caused by
20% of causes.
• Therefore effort aimed at the right 20% can solve 80% of
the problems.
• Generally used to decide where to apply initial effort for
maximum effect.
Quality Tools (cont.)
Pareto Analysis….
Quality Tools (cont.)
Histogram
• A chart that shows the frequency distribution of
observed values of a variable.
• As a graphic summary of variation in a set of data, it
enables us to see patterns that are difficult to see in a
simple table of numbers. Can be analysed to draw
conclusions about the data set.
• Displays whether the distribution is symmetrical (normal)
or skewed.
Quality Tools (cont.)
Histogram….
Quality Tools (cont.)
Benchmarking Process
• Benchmarking was developed by Xerox in 1979.
• More of a quality methodology instead of a tool
• The idea is to find another company that is doing a
particular process better than your company, and then,
using that information to improve the process.
• Constant testing of industry’s best practices.
• Used to stay competitive by doing better that best practices
PDCA & Improvement Cycle
Continuous Improvement
• is a Quality philosophy that drives organisations to strive for
perfection by continuously improving the business &
production processes.
• Improvement can be made by a number of ways:
• View all work as a process.
• Make all processes effective, efficient & adaptable.
• Control in-process performance using measures such as waste
elimination, cycle time, control charts, etc.
• Eliminate nonconformities and activities that do not add value.
• Use benchmarking to improve competitive advantage.
• Innovate to achieve breakthroughs.
• Use statistical tools, experimental designs, quality function
deployment etc etc
PDCA & Improvement Cycle
Continuous Improvement...
Generally improvement can be defined in five basic ways:
1. Reduce resources.
2. Reduce errors.
3. Meet & exceed expectations of downstream customers.
4. Make the process safer.
5. Make the process more satisfying to the person doing
it.
PDCA & Improvement Cycle
Continuous Improvement...
1. Reduce resources
• A process that uses more resources than necessary is
wasteful.
• Reports that are distributed to more people than
necessary wastes copying, distribution time, material,
• Waste can be reduced, if not eliminated, if resources
are utilised only when necessary.
PDCA & Improvement Cycle
Continuous Improvement...
2. Reduce Errors
• Errors are sign of poor design, planning and
workmanship that require rework.
• Errors can be reduced if best practices are given focus
at every stage of the process.
3. Meet & exceed expectations of downstream customers.
• Products produced or service rendered that meet or
exceed the specifications of the downstream will
guarantee that the final products/service will satisfy the
eventual customers.
PDCA & Improvement Cycle
Continuous Improvement...
4. Make the process safer.
• A conducive and safer workplace will be more productive
with fewer lost-time accidents and less workers’
compensation costs.
5. Make the process more satisfying to the peron doing it.
• A little change can make a subtantial change in a person’s
attitude toward their work
PDCA & Improvement Cycle
Continuous Improvement...
• By viewing a business or a production activity as a process,
activities such as purchasing, engineering, accounting and
marketing become process areas where non-conformance
can represent an opportunity for substantial improvement.
• In process model:
• Inputs – can be materials, money, info, data etc
• Outputs – can be info, data, products, services etc
• The output of one process can be the input of another process downstream.
• They require performance measures.
• Designed to achieve certain desirable Outcomes.
• Improvements are made via Feedback arising from the Outcomes
of the Output.
Continuous Process Improvement
Input/output process model
FEEDBACK

OUTPUT
INPUT PROCESS Information
Interaction of People,
Materials Equipment, Method,
Data OUTCOMES
Money Procedures, Product
Information Environment, Service, etc.
Data, etc Materials

CONDITIONS
Continuous Process Improvement
Work as a process
The goal to consider work activity as a process is to
achieve perfection:
• Make all processes effective, efficient, and adaptable.
• Anticipate changing customer needs.
• Control in-process performance using measures such as
scrap reduction…
• Maintain constructive dissatisfaction with the present
level of performance – being good is not good enough
Continuous Process Improvement
(cont.)
Work as a process…
• Eliminate waste and rework.
• Investigate non-value added activities.
• Eliminate nonconformities.
• Use benchmarking to stay competitive.
• Hold gains.
• Lessons learned.
• Use tools such as SPC, design of experiments etc.