MS-096

TOTAL QUALITY MANAGEMENT

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VOLUME-I
PART-I
PHILOSOPHY AND BASIC CONCEPTS Unit-I Introduction: Basic Concepts and Approach
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Introduction

What is quality? Dictionary has many definitions: Essential characteristic, Superior, etc. Some definitions that have gained wide acceptance in various organizations: Quality is customer satisfaction, Quality is Fitness for Use.

The American National Standards Institute (ANSI) and the American Society for Quality (ASQ) define quality as: The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.

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Introduction

What is TQM?

A comprehensive, organization-wide effort to improve the quality of products and services, applicable to all organizations.

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Introduction

What is a customer? Anyone who is impacted by the product or process delivered by an organization. External customer: The end user as well as intermediate processors. Other external customers may not be purchasers but may have some connection with the product. Internal customer: Other divisions of the company that receive the processed product.

What is a product? The output of the process carried out by the organization. It may be goods (e.g. automobiles, missile), software (e.g. a computer code, a report) or service (e.g. banking, insurance)

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Introduction

How is customer satisfaction achieved? Two dimensions: Product features and Freedom from deficiencies. Product features Refers to quality of design. Examples in manufacturing industry: Performance, Reliability, Durability, Ease of use, Esthetics etc. Examples in service industry: Accuracy, Timeliness, Friendliness and courtesy, Knowledge of server etc. Freedom from deficiencies Refers to quality of conformance. Higher conformance means fewer complaints and increased customer satisfaction.

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Why Quality?

Reasons for quality becoming a cardinal priority for most organizations: Competition Todays market demand high quality products at low cost. Having `high quality reputation is not enough! Internal cost of maintaining the reputation should be less. Changing customer The new customer is not only commanding priority based on volume but is more demanding about the quality system. Changing product mix The shift from low volume, high price to high volume, low price have resulted in a need to reduce the internal cost of poor quality.
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Why Quality?

Product complexity As systems have become more complex, the reliability requirements for suppliers of components have become more stringent. Higher levels of customer satisfaction Higher customers expectations are getting spawned by increasing competition.

Relatively simpler approaches to quality viz. product inspection for quality control and incorporation of internal cost of poor quality into the selling price, might not work for todays complex market environment.

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Quality perspectives

Everyone defines Quality based on their own perspective of it. Typical responses about the definition of quality would include: 1. Perfection 2. Consistency 3. Eliminating waste 4. Speed of delivery 5. Compliance with policies and procedures 6. Doing it right the first time 7. Delighting or pleasing customers 8. Total customer satisfaction and service
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Quality perspectives

Judgmental perspective goodness of a product. Shewharts transcendental definition of quality absolute and universally recognizable, a mark of uncompromising standards and high achievement. Examples of products attributing to this image: Rolex watches, Lexus cars. Product-based perspective function of a specific, measurable variable and that differences in quality reflect differences in quantity of some product attributes. Example: Quality and price perceived relationship.
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Quality perspectives

User-based perspective fitness for intended use. Individuals have different needs and wants, and hence different quality standards. Example Nissan offering dud models in US markets under the brand name Datson which the US customer didnt prefer. Value-based perspective quality product is the one that is as useful as competing products and is sold at a lesser price. US auto market Incentives offered by the Big Three are perceived to be compensation for lower quality.
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Quality perspectives

Manufacturing-based perspective the desirable outcome of a engineering and manufacturing practice, or conformance to specification. Engineering specifications are the key! Example: Coca-cola quality is about manufacturing a product that people can depend on every time they reach for it.

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Quality levels

At organizational level, we need to ask following questions: Which products and services meet your expectations? Which products and services you need that you are not currently receiving? At process level, we need to ask: What products and services are most important to the external customer? What processes produce those products and services? What are the key inputs to those processes? Which processes have most significant effects on the organizations performance standards?

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Quality levels

At the individual job level, we should ask: What is required by the customer? How can the requirements be measured? What is the specific standard for each measure?

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History of quality management

To know the future, know the past! Before Industrial Revolution, skilled craftsmen served both as manufacturers and inspectors, building quality into their products through their considerable pride in their workmanship. Industrial Revolution changed this basic concept to interchangeable parts. Likes of Thomas Jefferson and F. W. Taylor (scientific management fame) emphasized on production efficiency and decomposed jobs into smaller work tasks. Holistic nature of manufacturing rejected!
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History of quality management

Statistical approaches to quality control started at Western Electric with the separation of inspection division. Pioneers like Walter Shewhart, George Edwards, W. Edwards Deming and Joseph M. Juran were all employees of Western Electric. After World War II, under General MacArthur's Japan rebuilding plan, Deming and Juran went to Japan. Deming and Juran introduced statistical quality control theory to Japanese industry. The difference between approaches to quality in USA and Japan: Deming and Juran were able to convince the top managers the importance of quality. Limited - A Unique Name For Quality Education PCTI

History of quality management

Next 20 odd years, when top managers in USA focused on marketing, production quantity and financial performance, Japanese managers improved quality at an unprecedented rate. Market started preferring Japanese products and American companies suffered immensely. America woke up to the quality revolution in early 1980s. Ford Motor Company consulted Dr. Deming to help transform its operations. (By then, 80-year-old Deming was virtually unknown in USA. Whereas Japanese government had instituted The Deming Prize for Quality in 1950.)

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History of quality management

Managers started to realize that quality of management is more important than management of quality. Birth of the term Total Quality Management (TQM). TQM Integration of quality principles into organizations management systems. Early 1990s: Quality management principles started finding their way in service industry. FedEx, The Ritz-Carton Hotel Company were the quality leaders. TQM recognized worldwide: Countries like Korea, India, Spain and Brazil are mounting efforts to increase quality awareness.
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Evolution of TQM philosophies

The Deming Philosophy Definition of quality, A product or a service possesses quality if it helps somebody and enjoys a good and sustainable market.

Improve quality

Decrease cost because of less rework, fewer mistakes.

Productivity improves

Long-term competitive strength

Stay in business

Capture the market with better quality and reduced cost.

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Unit-II
Quality Management : Leading Thinkers

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Philip B. Crosby

Five Absolutes of Quality Management Quality is defined as conformance to requirements, not as goodness nor elegance - i.e. quality is an essentially measurable aspect of a product or service and that quality is achieved when expectations or requirements are met There is no such thing as a quality problem - i.e. poor management creates the quality problem It is always cheaper to do it right first time - i.e. quality needs to be designed into a product, not that flaws should be inspected out. The only performance measurement is the cost of quality - i.e price of non conformance, cost of quality is always a measurable item, quantitative approach The only performance standard is zero defects - i.e. perfection is the target, quantitative approach to quality

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Three Essential strands

a belief in quantification management leadership prevention rather than cure Assumptions: Management process as the key driver of quality - conformance to requirements are defined and communicated amongst all stakeholders zero defects is an achievable objective it is possible to establish a company that does not start out expecting mistakes - is this realistic? Customers Product volume or quality requirements?

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The 14 Steps

Step 1: Establish management commitment - it is seen as vital that the whole management team participates in the programme, a half hearted effort will fail. Step 2: Form quality improvement teams - the emphasis here is on multi-disciplinary team effort. An initiative from the quality department will not be successful. It is considered essential to build team working across arbitrary and often artificial organisational boundaries Step 3: Establish quality measurements - these must apply to every activity throughout the company. A way must be found to capture every aspects, design, manufacturing, delivery and so on. These measurements provide a platform for the next step

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Step 4: Evaluate the cost of quality - this evaluation must highlight, using the measures established in the previous step, where quality improvement will be profitable. Step 5: Raise quality awareness - this is normally undertaken through the training of managers and supervisors, through communications such as videos and books and by displays of posters etc. Step 6: Take action to correct problems - this involves encouraging staff to identify and rectify defects or pass them on to higher supervisory levels where they can be addressed

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Step 7: Zero defects planning - establish a committee or working group to develop ways to initiate and implement a zero defects programme. Step 8: Train supervisors and managers - this step is focussed on achieving understanding by all managers and supervisors of the steps in the quality improvement programme in order that they can explain it in turn. Step 9: Hold a zero defects day to establish the attitude and expectation within the company. Crosby sees this as being achieved in a celebratory atmosphere accompanied by badges buttons and balloons.
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Step 10: Encourage the setting of goals for improvement. Goals are of course of no value unless they are related to appropriate timescales for their achievement. Step 11: Obstacle reporting - this is encouragement to employees to advise management of the factors which prevent them achieving error free work. This might cover defective or inadequate equipment poor quality components etc. Step 12: Recognition for contributors Crosby considers that those who contribute to the programme should be rewarded through a formal although nonmonetary reward scheme.
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Step 13: Establish Quality councils - these are essentially forums composed of quality professionals and team leaders allowing them to communicate and determine action plans for further quality improvement. Step 14: Do it all over again - achievement of quality is an ongoing process.

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Possible Strengths:

clarity recognition of worker participation rejection of a tangible quality problem, acceptance of the idea of solutions Crosbys metaphors - vaccine (integrity; dedication to communication and customer satisfaction; company wide policies and operation which support the quality thrust) and maturity Crosbys motivational style
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Perceived Weaknesses:

danger of misdirected effort from blaming workers (in question) emphasis on marketing more than recognition of barriers the management and goal orientation of the 14 step programme as failing to free workers from externally generated goals potential for zero defects to be interpreted as zero risk ineffectiveness in coercive power structures charismatic/evangelical style - lack of substantial underpinning?
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W. Edwards Deming

Approach can be seen as founded in scientific method urged management to focus on the causes of variability in manufacturing processes. First belief in causes. Common causes are those which arise from the operation of the system itself and are a management responsibility. Special causes are seen as those relating to particular operators or machines and requiring attention to the individual cause. Use of SPC charts as key method for identifying special and common causes and assisting diagnosis of quality problems. Eliminate the outliers which arise from special causes then concentrate on the common causes to further improve quality. Second belief is the quantitative approach to identifying problems. Third belief was Deming, Shewhart or PDCA cycle - Plan, Do, Check, Action. Two further beliefs systematic and methodical approaches; needed for continuous quality improvement action. www.deming.org.

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Seven Deadly Sins of Western Management

Lack of constancy - flavour of the month Short term profit focus - manipulate the books for a quarter Performance appraisals - nourish shortterm performance Job-hopping - destroys teamwork, short term orientation of organisation Use of visible figures only a lot of hidden benefits, spin-offs Excessive medical costs Excessive costs of liability

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Summarising:

quantitative, statistically valid, control systems clear definition of those aspects under the direct control of staff a systematic, methodological approach continuous improvement constancy and determination quality should be designed in to both the product and the process
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Assumptions:

Management are seen to be responsible and capable of eliminating the common causes Statistical methods properly used will provide quantitative evidence to support changes continuous improvement is both possible and desirable prime role of the service sector rests in enabling manufacturing to do its job

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Methods:

the PDCA cycle statistical process control 94% belong to the system 14 principles of transformation 7 point action plan

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Demings 14 points for Management

1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs. 2. Adopt a new philosophy. We are in a new economic age. Western management must awaken to their challenge, must learn their responsibilities, and take on leadership for change. 3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. 4. End the practice of awarding business on the basis of price tag. Instead, minimise total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6. Institute training on the job. 7. Institute leadership (see point 12). The aim of leadership should be to help people and machines and gadgets to do a better job. Leadership of management is in need of overhaul, as well as leadership of production workers.

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Shigeo Shingo

Started with the scientific management ideas of Frederick Taylor in the early 19th c (1911) i.e. the economic man theory of motivation, until he became aware of the methods of Statistical Quality Control. Then in the 70s he came to believe in defect prevention. Shingo believed that statistical methods detect errors too late in the manufacturing process. He became focused ion prevention. he would prefer to be remembered for his promotion of the understanding necessary behind the concepts of looking at the total manufacturing process and the elimination of transportation, storage, lot delays and inspection. He believed in zero defects but through good engineering and process investigation and rectification.

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Assumptions:

Adhered to a mechanistic approach to organisation throughout his career. Scientific management to statistical

quality control to error prevention through good engineering. However, while error free may be possible in an engineering context, in the service sector there are many variables which cannot be controlled to the extent that Shingos approach requires. He ignores the human relations aspects of organisations. Principal contribution to quality is the mistake proofing concept, Poke-Yoke, Defect=0. This approach stops the production process whenever a defect occurs, defines the cause and generates action designed to prevent a recurrence. Alternatively on-line adjustment to the product or process may be made, enabling continuous process to be managed. Poke-Yoke relies on a process of continuously monitoring potential sources of error. Machines used in the process are equipped with feedback instrumentation to carry out this task as Shingo considered that human personnel are fallible. People are used to trace and resolve the error causes. Installation of the system is expected to lead over time to a position where all likely recurring errors have been eradicated. Concept adopted to some extent in food processing.

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Strengths:

on-line real-time control Poke-Yoke emphasis effective control systems

Weaknesses:

source inspection only works effectively in manufacturing processes - not so for the service sector Shingo says little about people other than that they are fallible

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Genichi Taguchi

The two founding ideas of his quality work are essentially quantitative. First is a belief in statistical methods to identify and eradicate quality problems. The second rests on designing products and processes to build quality in, right from the outset. Could be seen as the cost of non-quality i.e. the loss imparted to society from the time the product is shipped. His prime concern is with customer satisfaction and with the potential for loss of reputation and goodwill associated with failure to meet customer expectations. He saw that loss not only occurred when a product was outside its specification but also when it varied from its target value.
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Three stage prototyping method:

system design - involving both product and process - attempt to develop a basic analytical, materials, process and production framework - functional design - product design and process design. parameter design - search for the optimal mix of product variation levels and process operating levels aiming to reduce the sensitivity of the production system to external or internal disturbances - monetary loss arising from variation. tolerance design - enables the recognition of factors that may significantly affect the variability of the product. Additional

investment, alternative equipment and materials are then considered as ways to further reduce variability. minimising the total sum of product manufacturing and lifetime costs.

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So there is a clear belief in identifying and as far as possible eradicating potential causes of non-quality at the outset. His approach also relies on a number of organisational principles: 1. Communication 2. Control 3. Efficiency 4 Effectiveness

5 Efficacy
6 Emphasis on location and elimination of causes of error 7 Emphasis on design control 8 Emphasis on environmental analysis

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Quantitative methods provide measurements for control; eradication as far as possible of causes of failure at the outset; societary cost of non-quality; systems view of inter-dependence and interrelationship both within the organisation and with its environment.

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Assumptions:

Quality can always be controlled through improvement in design - validity in service sector must be questioned. Little or nothing is said about people or the management process which implies that they are not considered a significant factor in the production of quality goods. Seems to assume that the organisation can wait for results - that delays between product conception and production will be acceptable - while such delays are to some extent inevitable, they must be minimised in the contemporary market. Much of his work has been informed by his background in engineering and quantitative methods. The adoption of a systemic view, PCTI Limited - A Unique extending to the while not apparently Name For Quality Education

The principal tools and techniques espoused by Taguchi centre around the concept of kaizen thinking i.e. continuous improvement. His backward step into the design process helps to ensure a high basic quality standard. Besides the usual statistical methods, he also adopts experimental studies, prototyping and the quadratic loss function. Eight stages of product development i.e. design of experiments. 1. Define the problem. 2. Determine the objective - what output characteristics are to be studied and optimised through the 4experimental process, and what measurements are to be taken - may have to run control experiments in order to validate results. 3. Conduct a brainstorming session - all managers and operators are involved to determine the controllable and uncontrollable factors affecting the situation. 4. Design the experiment. 5. Conduct the experiment. 6. Analyse the data.

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7. Interpret the results - aims to identify optimal levels for the control factors which seek to minimise variability and bring the process closest to its target value. Prediction is used at this stage to consider the performance of the process under optimal conditions 8. Run a confirmatory experiment may have to revisit stages 3-8

suggested steps fall into the parameter design stage of product development - Deming's Plan,Do,Check,Action cycle
The quadratic loss function is his principal contribution to the statistical aspects of achieving quality - it is used to minimise the cost of a product or service L = c(x - T)2 + k where x is a particular quality characteristic with target T c is cost of failing to meet target, k represents loss to society

the minimum

May be viewed as a measure of efficiency and of effective utilisation of resources

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Strengths: quality is a design requirement the approach recognises the systemic impact of quality it is a practical method for engineers (rather than statisticians) it guides effective process control Weaknesses: usefulness is biased towards manufacturing guidance is not given on management or organisational issues it places quality in the hands of the experts it says nothing about people as social animals

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Unit-III
Building Blocks of Total Quality Management

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The TQM initiatives is built upon the following beliefs:

People are untapped resources People who do the work are in the Best position to Improve Organizational Processes Continual improvement Values drive behavior Preventive as opposed to detection Organization- wide involvement and commitment.

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Stumbling Blocks (obstacles) of TQM

Overselling TQM Setting mediocre expectations Poorly or inadequately diagnosing the situation Failing to train personnel Making continuous improvement too complex and unnatural Failing to recognize and celebrate successes.

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PDCA Cycle

In the 1920s, Walter Shewhart, a statistician at Bell Telephone Laboratories, developed the Shewhart cycle, known as Plan, Do, Check, Act (PDCA).

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Plan
Question the capacity or capability of a process. Pose theories on how to improve the process and predict measurable outcomes.

Do
Make changes on an experimental, pilot basis.

Check
Measure outcomes compared to predicted outcomes.

Act
Implement the changes on a broad scale (Gaucher & Coffey,1991).

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Shewhart Cycle
The Tradiotnal PDCA Model
11. Monitor the change and hold the gains 3. Measure and analyze data 2. Describe the current process 1. Ideintify customer needs/expectations

Plan

4. Identify improvement opportunities

5. Identify root causes of problems

Act

Do Check

6. Generate and choose solutions 7. Plan and implement a pilot of the solutions

10. Standardize the change

9. Draw conclusions

8. Evaluate results of pilot

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Deming Cycle

The PDCA cycle was later adapted by Deming as the Plan, Do, Study, Act (PDSA) cycle; therefore, it also is referred to as the Deming Cycle, or the Deming Wheel.

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Plan-Do-Check (STUDY)-Act Cycle (P-D-S-A)

Act
Check

Plan
Do

Study
P-D-S-A

Demings Cycle (1900-1993)

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.O.C.U.S. F

Find an improvement
project (initiative):
Review related standards & documents Analysis of collected data Identify problems & desired outcomes

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F. O .C.U.S.

O hoc (task force) Organize ad

team:
Identify & involve stakeholders (e.g. physicians, nurses, administrative etc) Cover all related departments to the improvement initiative Select team members who best do or know the process to be improved

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F.O.

C.U.S.

Clarify current process &

desired outcomes:
Fully understand the current process by all team member Draw flow chart to clarify the process variation/problem Collect data from all affected areas relevant to process & desired outcomes

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F.O.C.

U.S. U

Understand Process Variation,

Root Causes & Desired Outcomes:
Identify tools needed to describe & analyze process variation, root causes & desired outcomes Obtain Information from benchmark, best practice ..etc Identify all possible solutions to achieve the desired outcome

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F.O.C.U.

SS .

Select the best practice

procedure:

Analyze alternative solutions related to process improvement Choose the best solution that will achieve desired outcome Develop approval with a summary of required information about expected outcomes, resources needed, timeframe, responsibilities ..etc
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Kaizen (Continuous Improvement)

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Kaizen (Continuous Improvement)

Japanese concept not made redundant by the decline of the Japanese economy which may be due to other institutional factors! Focus on gradual and continuous improvement A whole business philosophy Importance of EVERYONE buying into the concept and the vision

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Kaizen

Great attention paid to customer requirements and needs Efficient stock control methods help reduce costs and improve cash-flow Flexible working practices and empowerment help increase efficiency, reduce costs and improve motivation Fundamental principles often characterised as lean production reducing waste, zero defects, high quality control measures at all stages

Punctuality in all aspects delivery, suppl manufacture, etc. Leadership seen as vital. Ability to communicate a clear vision, take people along with the vision and to think about where the company needs to be in 5, 10, 15 and 20 years time

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What is Poka-Yoke?

This

is known as MISTAKE-PROOFING From Japanese:

Yokeru

(avoid) Poka (inadvertent errors)

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What Does Poka-Yoke Do?

Eliminates

the cause of an error at the source Detects an error as it is being made Detects an error soon after it has been made but before it reaches the next operation.
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Are Errors Unavoidable?

There

are two approaches to dealing with errors:

ERRORS ARE INEVITABLE! ERRORS CAN BE ELIMINATED!

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1. Errors Are Inevitable

People always make mistakes. While we accept the mistakes as natural, we blame the people who make them. With this attitude, we are likely to overlook defects as they occur in production. They may be detected at final inspection, or worse still, by the customer.
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2. Errors Can Be Eliminated Any

kind of mistake people make can be reduced or even eliminated. People make fewer mistakes if they are supported by proper training and by a production system based on the principle that errors can be avoided.
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Inspection

One

method of detecting errors is inspection. There are two major types of inspection.
SAMPLING INSPECTION. 100% INSPECTION.

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Sampling Inspection

In

some factories, the attitude is:

It

may take all day to inspect all product. There may be a few defects, but sampling is the most practical way to check.
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Sampling Inspection - Reflection

Think about sampling.

With sampling, there is a chance that an error may go undetected.

Even if 1 part in 1000 is defective, the customer who buys that part has a 100% defective product!
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Sampling Inspection - Reflection

SAMPLING INSPECTION MAKES SENSE ONLY FROM THE MANUFACTURER S VIEW, NOT FROM THE CUSTOMERS!
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2. 100% Inspection

In the best factories, the attitude is: We wont tolerate a single defect! We will organize production so that 100% of the product can be easily inspected. That makes the most sense.
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100% Inspection - Reflection

Think about 100% inspection. Even one defective product is enough to destroy a customers confidence in a company. To stay competitive a company must supply good product in thousands. The best way to achieve this is to organize production to inspect 100% of the products.
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The User Is The Best Inspector

No one intends to make mistakes. While we are working, errors can show up without us noticing. How can we catch these errors before they turn into defective products?

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Finding Defects in the Subsequent Process

We

dont expect to find defects, but if a product we use doesnt do what it is supposed to do, then we know it is defective. Users are the best at discovering defects!
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Finding Defects in the Subsequent Process

Since subsequent processes are also users of the product being manufactured, they are also expert at finding defects. If products are produced in a flow, each product is sent to the next process as soon as it is finished and defects are therefore found immediately.

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Two Strategies for Zero Defects

DONT MAKE IT!

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1. Dont Make It!

Dont make product you dont need. The more you make, the greater the opportunity for defects. Follow just-in-time principles by only making what is needed, when it is needed in the amount needed.

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Two Strategies for Zero Defects

Build

Safeguards

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2. Build Safeguards

The

user is an expert in finding defects. Therefore build safeguards into the production process. Quality can be built into products by implementation of PokaYoke. - A Unique Name For Quality Education PCTI Limited

Poka-Yoke Devices

Human

errors are usually inadvertent. Poka-yoke devices help us avoid defects, even when inadvertent errors are made. Poka-yoke helps build quality into processes.
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Poka-Yoke Devices Error Detection and Alarms

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Poka-Yoke Devices - Checklists

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Poka-Yoke Example

It is possible to mount the blank the wrong way onto the pierce tool.

BLANK

PIERCED BLANK

INCORRECT

As the blank can fit the pierce tool in many ways, how can this be prevented?
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Poka-Yoke Example

By fitting a block into the pierce tooling, the blank plate can only go on one way.

BLOCK
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Poka-Yoke

POKA-YOKE MEANS ZERO DEFECTS

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What is Jidohka?

Automation with a human touch Practice of stopping a manual line or process when something goes amiss Also known as Autonomation

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What is Jidohka?

Quality built-in to the process

First used by Sakichi Toyoda at the beginning of the 20th century

A pillar of the Toyota Production System

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Role of Jidoka

Autonomation is an important component of Lean Manufacturing Strategy for high-production, low- variety operations, particularly where product life cycles are measured in years or decades.

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How Your Organization Can Benefit From Jidohka

Jidohka helps to detect a problem earlier Jidohka avoids the spread of bad practices A level of human intelligence is transferred into automated machinery

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How Your Organization Can Benefit From Jidohka

No defective products produced

Tremendous productivity improvement in

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A Closer Look at Jidohka manufacturing high quality products

The word traces its roots to the automatic loom invented by the founder of the Toyota Group A built-in device for making judgments Opposed to a machine that simply moves under the monitoring and supervision of an operator

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A Closer Look at Jidoka -- Concept

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How It Works

Adds human judgment to automated equipment Minimizes poor quality Makes the process more dependable Gives the employee responsibility and authority to stop production

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In The Real World

If Jidohka is not practiced then you can not attain a very high level quality and productivity will suffer since you are not catching problems.
Mr. Tomo Harada, 35 years with Toyota Motor Corporation in a variety of management positions
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In The Real World

One of NUMMIs basic concepts is that quality should be ensured in the production process itself. This concept, known as Jidohka, means not allowing problems to pass from one work station to the next.
Production System Statement, NUMMI (New United Motor Manufacturing, Inc.)

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VOLUME-I
PART-II
STRATEGIC CONSIDERATIONS Unit-4 TQM and Business Strategy
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Business Strategy

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Strategic Focus

EXPLORATION
INTERNAL EXTERNAL

EXPLOITATION

EXTERNAL

Strategic Agility

INTERNAL

Total Quality Management

Lean Mgt, Mass Customization, Six Sigma

Organizational Adaptiveness

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Managerial Guidelines

Adaptiveness enables competitive success in the digital economy But .. Strategy enables competitive leadership Adaptiveness requires the co-integration of Customer and solution-centricity Capabilities built around information, process, and information technology infrastructures Value net architectures Additionally, Strategy requires the mastery of change and uncertainty: Entrepreneurial orientation Sensing capabilities
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Managerial Guidelines

Strategy is nurtured at multiple levels

Competitive Innovation Functional

The evolution toward strategic agility occurs through the learning gained by prior investments in

Total quality management Six sigma process improvement and lean management Adaptiveness and value net integration

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Managerial Guidelines

Information technology management facilitates strategies as a digital options generator Platform for process integration Platform for value net integration Platform for innovation and strategic experimentation Attention must be focused on significant transformations of the IT function IT architecture IT investment IT partnerships Organizing logic

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TQM and Corporate Strategic Process

Two key phases of Strategic process: (1) Strategic Formulation (2) Strategic Implementation Formulation: defining the mission of the organization. Implementation: concerned with Operation management.

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Customer Values

Customer satisfaction and delight. Competitive strategy and customer. Quality and low cost.

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Customer Values

Quality is multi-dimensional for customers. According to Garvin: Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived Quality

In addition, Schonberger has added the new 4 dimensions: Quick response Quick-change response Humanity Value

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Quality Business Plans

This includes: Quality mission of the organization. Quality strategy, policies to be adopted by the organization. Principles and values to be shared by the whole organization. Organization and the processes. Education plan to involve all the employees. Tactical plans for implementation of the plans. Resources required to implement the plans. Quality goals and criteria for measurement.

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Unit-5
Quality- Centered Strategic Planning

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Functions of Top Management in Quality Improvement

The Top Management participation is defined as: which specific decisions are to be made by top management. Which specific actions are to be taken by the top management.

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Decisions & actions taken by Top Management:

Establish a quality Concept. Serve on the quality council. Establish quality policies. Establish quality goals. Deploy quality goals. Provide resources. Provide team oriented training. Review progress. Institutionalized recognition and reward system.
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SQM

Corporate Strategies
Alignment Students & Key Stakeholders Feedback Vision Development Through Quality Innovations

Quality Initiatives Identified

Quality Strategy Development

Benchmarking

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Quality Strategy Development

Enhancing the quality of teaching and learning experience. To enhance life-long skills of the students that matched with the demand and requirement of the industry/employer. Enhancing the quality of research and publication, etc.

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Strategic Quality Planning

Corporate Strategies Alignment Students & Key Stakeholders Feedback Vision Development Through Quality Innovations Benchmarking Quality Initiatives Identified

Quality Strategy Development

Staff Engagement

Quality Performance Objectives Performance Measurement

Quality Action Plans

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7 PRINCIPLES OF Quality Management

Proactive culture (philosophy). Top down and bottom up approach. Scale every responsibility for quality. Measure cost of quality. Standards right first time. Scope. Theme of continuous improvement.
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Strategic business plan activities:

Establish vision: the dream of top level management. Set up mission statement: purpose of existence of an organization. Determine the objectives/goals. Identify the strategic alternatives. Choice/selection of strategic mix. Implementation of strategy by allocating resources. Evaluation of the strategy.

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Strategic Planning Process

Listen to the customers need. Plan how you will meet the customers needs. Be aware of your values and align your organization to serve the customer. Be aware of the forces that will influence you. Develop specific quality objectives. Consider various scenarios. Plan to close the gaps. Take actions to achieve the objectives. Re-evaluate or renew the efforts.
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Unit-6
Economics Of Quality

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Quality related cost

Quality related costs are costs incurred by an organization to ensure that the products or services it provides conform to customer requirements.
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Money Talks: Cost of Finding & Fixing Errors

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Various Types of Quality Costs Prevention Costs Design/review Quality and reliability training Quality planning including vendor quality planning Design, development and installation of quality measurement and test equipments Quality auditing Acquisition analysis and reporting of quality data Quality improvement programmes and quality engineering.
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Appraisal Costs

Test and inspection. Maintenance and calibration. Test Equipment depreciation. Analysis and reporting of tests and inspection results. Line quality engineering. Vendor rejects.

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Internal Failure Costs

Faulty goods or scraps/rejects. Rework and repair. Design changes. Trouble-shooting or defect failure analysis. Re-inspection and retreating. Downgrading. Downtime.

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External Failure Costs

Complaints Dealers/ Customers rejects/ returns. Commissioning failures. Warranty claims. Product reliability compensation. Concessions. Loss of scales. Recall costs.
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VOLUME-I
PART-III TOOLS AND TECHNIQUES Unit-7 Statistical Quality Control
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Introduction

The production processes are not perfect! Which means that the output of these processes will not be perfect correct and deterministic. Successive runs of the same production process will produce non-identical parts. Alternately, seemingly similar runs of the production process will vary, by some degree, and impart the variation into the some product characteristics. Because of these variations in the products, we need probabilistic models and robust statistical techniques to analyze quality of such products.
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Introduction

No matter how carefully a production process is controlled, these quality measurements will vary from item to item, and there will be a probability distribution associated with the population of such measurements. If all important sources of variations are under control in a production process, then the slight variations among the quality measurements usually cause no serious problems. Such a process should produce the same distribution of quality measurements no matter when it is sampled, thus this is a stable system.
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Introduction

Objective of quality control is to develop a scheme for sampling a process, making a quality measurement of interest on sample items, and then making a decision as to whether or not the process is in the stable state, or in control. If the sample data suggests that the process is out of control, a cause is for the abnormality is sought. A common method for making these decisions involves the use of control charts. These are very important and widely used techniques in industry, and everyone in the industry, even if not directly related to quality control, should be aware of these.
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The Three methodologies of SQC:

1.

Acceptance sampling

2.

Statistical Process Control (SPC)

Design of Experiments

3.

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Acceptance Sampling

Purposes Determine quality level Ensure quality is within predetermined level

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Advantages of Acceptance Sampling

Less expensive because of less inspection. There is less handling damage of the product. It is applicable to destructive testing. Fewer personnel are involved in inspection activities.

It often greatly reduces the amount of inspection error.

The rejection of entire lots often provides a stronger motivation to the vendor for quality improvement.

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Disadvantages of Acceptance Sampling

Risks of accepting bad lots and rejecting good lots. In the good lot, there might be nonconformities. Sample provides less information than 100-percent inspection Acceptance sampling requires more time on planning and documentation of the acceptance sampling procedure.

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Statistical Process Control (SPC)

Statistical process control

Methodology for monitoring a process to identify special causes of variation and signaling the need to take corrective action. When special causes are present, the system said to be statistically out of control. If the variations are due to common causes alone, the process is said to be in statistical control. SPC relies heavily on control charts.
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Quality control measurements

Attributes A performance characteristics that is either present or absent in the product or service under consideration. Examples: Order is either complete or incomplete; an invoice can have one, two, or more errors. Attributes data are discrete and tell whether the characteristics conforms to specifications. Attributes measurements typically represented as proportions or rates. e.g. rate of errors per opportunity. Typically measured by Go-No Go gauges.
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Quality control measurements

Variable Continuous data that is concerned with degree of conformance to specifications. Generally expressed with statistical measures such as averages and standard deviations. Sophisticated instruments (caliper) used.

In statistical sense, attributes inspection less efficient than variable inspection. Attribute data requires larger sample than variable inspection to obtain same amount of statistical information. Most quality characteristics in service industry are attributes.
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SPC Methodology 1.PREPARATION Choose the variables or attribute to be measured. Determine the basis, size and frequency of sampling. Set up the Correct control chart. 2.DATA COLLECTION Record the data. Calculate relevant statistics. Plot the statistics on the chart.
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SPC Methodology 3.DETERMINATION OF TRIAL CONTROL LIMITS Draw the center line (process average) on the chart. Compute the upper and lower control limits. 4.ANALYSIS AND INTERPRETATION Investigate the chart for lack of control. Eliminate out-of-control points. Re-compute control limits if necessary.
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SPC Methodology 5.USE A PROBLEM SOLVING TOOL Continue data collection and plotting. Identify out-of-control situations and take corrective actions. 6.Use the CONTROLCHART DATA to determine process capability, if desired.

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Design Of Experiments

Trial and error can be used to run experiments in the design of products and design of processes, in order to find an optimal setting of parameters so that products of good quality will be produced. DOE can help in performing experiments Scientifically and systematically.
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PROCESS CAPABILITY& CONTROL

CAPABILITY: It refers to how capable a process is of making parts that are within the range of engineering or customer specifications. CONTROL: It refers to maintaining the performance of a process at its current capability level.
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Tolerance Limits vs. Process Capability

Specification Width

Actual Process Width Specification Width

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Actual Process Width

CAPABILITY STUDY
Capability studies are use to quickly determine whether a process can meet specifications or how many parts will exceed the specifications. Practical uses are: Estimating percentage of defective parts to be expected. Evaluating new equipment purchases. Predicting whether design tolerances can be met. Assigning equipment to production. Planning process control checks. Analyzing the interrelationship of sequential processes. Making adjustments during manufacture. Setting specifications. Costing out contracts. PCTI Limited - A Unique Name For Quality Education

DATA COLLECTION PROCESS

The ideal situation for data collection is to collect as much data as possible over a defined time period. Step1: Gather, process data. Step2: Plot the data on control charts. Step3: Find the control limits. Step4: Get the process in control (identify and eliminate the assignable causes). Step5: Calculate process capability. Step6: If process capability is not sufficient, improve the process, and go back to step1.
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What are the Basic Seven Tools of Quality?

Fishbone Diagrams Histograms Pareto Analysis Flowcharts Scatter Plots Run Charts Control Charts

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Where did the Basic Seven come from? Kaoru Ishikawa

Known for Democratizing Statistics The Basic Seven Tools made statistical analysis less complicated for the average person Good Visual Aids make statistical and quality control more comprehendible.
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FISHBONE DIAGRAM

A diagram showing the main causes and sub-causes of a quality problem or defect. Attributes:

No statistics involved

Maps out a process/problem

Makes improvement easier Looks like a Fish Skeleton

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Constructing a Fishbone Diagram

Step 1 - Identify the Problem Step 2 - Draw spine and bones

Example: High Inventory Shrinkage at local Drug Store

Shrinkage

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Constructing a Fishbone Diagram Step 3 - Identify different areas where problems may arise from.

Ex. : High Inventory Shrinkage at local Drug Store

employees

Shrinkage
shoplifters
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Constructing a Fishbone Diagram Step 4 - Identify what these specific causes could be Step 5 Use the finished diagram to brainstorm solutions to the main problems.

Shrinkage
Ex. : High Inventory Shrinkage at local Drug Store

Expensive merchandise out in the open No security/ surveillance

Anti-theft tags poorly designed

shoplifters PCTI Limited - A Unique Name For Quality Education

Constructing a Fishbone Diagram

Ex. : High Inventory Shrinkage at local Drug Store

employees
attitude training new trainee benefits

practices

Shrinkage
Expensive merchandise out in the open

Anti-theft tags poorly designed

No security/ surveillance

shoplifters
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HISTOGRAM

A Bar chart showing the distribution of variable quantities or characteristics. Use range to estimate beginning and end Calculate the width of each column by dividing the range by the number of columns

Range
# of Columns

= Width

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Acme Pizza Example

Lets say the owner wants a distribution of Acmes Thursday Night Sales
02122413121224341432232122122142 21212212121212121222121211222314 22322212322422441222322122421242 1721223121121222122121222424

Data Set from last Thursday(slices)

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Acme Pizza Example Mean = 2.032258 Max = 7 Min = 0 Range = 7

Question For 7 columns what would the width be?

Range/Columns=7/7=1 slice
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Acme Pizza Example

Histogram
70 60 50 40 30 20 10 0 1 2 3 4 5 6 7 8 12 0 0 1 33 65

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Slices of Pizza

PARETO CHART

A chart showing the distribution of effects attributable to various causes or factors arranged from the most frequent to the least frequent. Very similar to Histograms Use of the 80/20 rule Use of percentages to show importance

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FLOW CHART

A device/method showing the order of activities in a process or project and their interdependency.

Process

Decision The process flow

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Flowcharts

Dont Forget to:

Define symbols before beginning

Stay consistent Check that process is accurate

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Acme Pizza Example (Flowchart)

Window (start) Take Customer Order
Money?

Get Pizza Lockup

yes

no

Put More in
Oven 2 Pies Available?

yes

Time to close?

no no
Take to Customer

yes

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SCATTER DIAGRAM

A diagram showing the pattern that exists in the relationship between two variables x and y. Scatter diagrams may be used to develop informal models to predict the future based on past correlations.

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Scatter Diagrams

Easier to see direct relationship

25 20 15 10 5 0 0 20 40 60 80

Time Cooking (minutes)

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RUN CHART

A chart showing the history and pattern or variations in time sequence. It is plot of data points in time sequence , connected by a line. This tool is used at the beginning of the change process to see what the problems are & at the end to see whether the change made has resulted in permanent process improvement.
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Run Charts
Slices/hour

8 9 10 11 12 1 2 3 4

8 9 10 11 12 1 2 3 4 8 9 10 11 12 1 2 3 4

Time

PM- AM
Thursday Week 1

PM- AM
Thursday Week 2

PM- AM
Thursday Week 3

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CONTROL CHART

A Line chart showing the control limits at three standard deviations above and below the average quality level. It constitutes the core of SPC.

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Control Chart
Upper Limit

X
Lower Limit

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Unacceptable deviation

Control Charts

Acme Pizza Management wants to get in on the control chart action

Average Diameter = 16 inches Upper Limit = 17 inches

Lower Limit = 15 inches

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Acme example
Upper Limit

Control Charts

17 inches

16 inches=
Lower Limit 15 Inches

Small Pie

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Acme example #50 Control Charts

Pies within specifications were acceptable

One abnormally small pie is uncommon Should be examined for quality control

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GENICHI TAGUCHIS METHOD

Born in Japan, 1924 Electrical Engineer Worked during 1950s to improve Japans post-WWII telephone communication system Father of the Taguchi Method and Robust Engineering

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Dont run away!

Not a mathematician?
You can still successfully apply Taguchi Method concepts to your service business.

Basic concepts are simple.

Just keep reading.
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Competitive Edge 101: In the next century, the capability of developing robust technology will be essential to the competitiveness of any manufacturing enterprise. (Tsai) (Taguchi:
p xi)

Substitute robust services and service enterprise. You need this.

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Competitive Edge 102:

To compete successfully in the global marketplace, organizations must have the ability to produce a variety of high-quality, low-cost products that fully satisfy customers needs. (Robust Engineering; p.
xiii)

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Quality Defined

Any engineered system reaches its ideal function when all of its applied energy (input) is transformed efficiently into creating desired output energy.
(Robust p. 6)

Employee energy = input Customer satisfied = output

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Basic Ideas:

CUSTOMER SATISFACTION Design to the highest standards early in the process to eliminate all nonrandom errors Quality Loss = Loss to Society quantified through Quality Loss Function Variation (+/-) from optimal measure results in a loss. For best results, GET HELP.

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Resources Expended on Quality

$ Design

$$ Service Delivered

$$$$$$$$$$ Post Service Delivery

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Customer Satisfaction Ways to measure service: 1. Returning customers 2. Number of complaints (1:10)

3. Number of compliments
4. Employee attitude

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Design Equipment No breakdowns Specific jobs defined Need to know responsibilities Policies and Procedures What do you want, anyway? Taguchi Method experiment

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Quality Loss Concept Deviation from target results in loss.

Lower than target

Greater than target Both lose

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Quality Loss Function

Quantify the Loss Warning: Next slide contains math formulas But give it a try!

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Quality Loss Function II

L(y) = k(y-m)2 L(y) = Loss k = constant =

cost to correct tolerance2

y = reported value m = mean value (average)

(Taguchi On Robust Technology p. 22)

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Example:

Company C received an average of 10 complaints per month last year. In November they received 15 complaints (y). Management sets an acceptable level at 2 (tolerance). It costs the company $50 directly per complaint to correct the problems. They determined the cost in lost sales to be $100. Total cost per complaint: $150

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Example continued:

k = $150/22 = $37.50

L(y) = 37.50 (15-10)2 = 37.50 (5)2 = 37.50 (25) = $937.50 is loss for the month of November

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MATH DONE!

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Taguchi Experiment Steps According to Dr. Foster:

Managers job:

(OM Review p. 38-44)

Identify the Problems Brainstorm Contribute to experiment design Design experiment Run experiment Analyze results Confirm experiment

Facilitators job:

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Step 1: Problem Identification

What do managers and/or employees see that need improvement?

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Step 2: Brainstorming

Identify critical variables in the service that affect quality. Open and honest discourse with all people involved. Decide which factors are controllable and which are not.

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Step 3: Experiment Design

Using results from brainstorming session, facilitator will design an experiment. Management must understand this part, and needs to fully support the resources needed for it.

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Step 4: Experiment

Use of ANOVA requires managers understand its use. Facilitator, although in charge of the experiment, must assure managements understanding of the process.

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Step 5: Analysis

Factors closest to target specification identified. Means to reduce controllable variation produced.

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Step 6: Confirm Experiment

Set up new system using data from experiment. Test and validate results.

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Conclusion:

Best improvement is early in the process. Use expert consulting help for full experiment and implementation. Successfully used in airlines, insurance, hotels and restaurants. Quality is a major feature that sets a service apart from the rest.

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SIX SIGMA

Six Sigma is the measure of quality that strives for near perfection. It is a disciplined, data-driven methodology focused on eliminating defects. A Six Sigma defect is defined as anything that falls outside of a customer's specifications. Six Sigma is a reference to a statistical measuring system, equivalent to just 3.4 defects per every million opportunities.
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WHY SIX SIGMA

Intense competitive pressures especially from rapid globalization. Greater consumer demand for high quality products and services, little tolerance for failures of any type. Top management (and stockholder) recognition of the high costs of poor quality. The availability and accessibility of large data bases and the increasing ability to explore, understand, and use the data.
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Sigma and % accuracy

Defects per Million% Accuracy Opportunities (DPMO) One Sigma691,500 30.85% Two Sigma308,500 69.15% Three Sigma 66,810 93.32% Four Sigma 6,210 99.38% Five Sigma 233 99.977% Six Sigma 3.4 99.9997% Seven Sigma 0.020 99.999998%
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Cost of poor quality

Fig. 1 Cost of poor quality versus Sigma level

Cost of poor quality as % of earnings

30% 20% 10% 0% 3 4 5 6 7

Sigma Level

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Inventor of Six Sigma

Motorola is known for its cool cell phones, but the company's more lasting contribution to the world is the quality-improvement process called Six Sigma. In 1986 an engineer named Bill Smith, sold then-Chief Executive Robert Galvin on a plan to strive for error-free products 99.9997% of the time. It is the origin of Six Sigma.
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Six Sigma at Motorola Motorola saved $17 Billion from 1986 to 2004, reflecting hundreds of individual successes in all Motorola business areas including:

Sales and Marketing Product design Manufacturing Customer service Transactional processes Supply chain management
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General Electric: What Is Six Sigma? First, what it is not. It is not a secret society, a slogan, or a clich. Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services

Saved $750 million by the end of 1998 Cut invoice defects and disputes by 98 percent, speeding payment, and creating better productivity Streamlined contract review process, leading to faster completion of deals and annual savings of $1 million PCTI Limited - A Unique Name For Quality Education

Honeywell: Six Sigma Plus Six Sigma is one of the most potent strategies ever developed to accelerate improvements in processes, products, and services, and to radically reduce manufacturing and/or administrative costs and improve quality. It achieves this by relentlessly focusing on eliminating waste and reducing defects and variations.

Initiated Six Sigma efforts in 1992 and saved more then $600 million a year by 1999.

Reduced time from design to certification of new projects like aircraft engines from 42 to 33 months. Increased market value by a compounded 27% per year through fiscal year 1998. PCTI Limited - A Unique Name For Quality Education

Selecting the right projects for SIX SIGMA

Assure that the importance of the projects is evident or can be readily demonstrated. Assure the projects are viable and doable in a short time. Assure that the success of the projects can be readily quantified.

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Six Sigma Team

Own vision, direction, integration, results Lead change

Executive Leadership
Project owner Implement solutions Black Belt managers

Part-time Help Black Belts

Project Champions Green Belts

Full time Train and coach Black and Green Belts Statistical problem solving experts

Master Black Belts

Black Belts
Devote 50% - 100% of time to Black Belt activities Facilitate and practice problem solving Train and coach Green Belts and project teams

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Six Sigma Methodology (DMAIC)

Define

Measure Control

Analyse
Improve

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DMAIC Steps 1. Define

1. Define

2. Measure

3. Analyze

4. Improve

5. Control

Identify projects that are measurable Define projects including the demands of the customer and the content of the internal process. Develop team charter Define process map
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DMAIC Steps 2. Measure

5.0 Control

1. Define

2. Measure

3. Analyze

4. Improve

5. Control

Define performance standards Measure current level of quality into Sigma. It precisely pinpoints the area causing problems. Identify all potential causes for such problems.
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DMAIC Steps 3.Analyze

3. Analyse
4. Improve 5. Control

1. Define

2. Measure

Establish process capability Define performance objectives Identify variation sources

Tools for analysis Process Mapping 3.0 Analyze Failure Mode & Effect Analysis Statistical Tests Design of Experiments Control charts Quality Function Deployment (QFD)

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DMAIC Steps 4. Improve

1. Define

2. Measure

3. Analyse

4. Improve

5. Control

Screen potential causes Discover variable relationships among causes and effects Establish operating tolerances Pursue a method to resolve and ultimately eliminate problems. It is also a phase to explore the solution how to change, fix and modify the process. Carryout a trial run for a planned period of time to ensure the revisions and improvements implemented in the process result in achieving the targeted values.
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DMAIC Steps 5. Control

1. Define

2. Measure

3. Analyse

4. Improve

5. Control

Monitor the improved process continuously to ensure long term sustainability of the new developments. Share the lessons learnt Document the results and accomplishments of all the improvement activities for future reference.
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Conclusion

A gauge of quality and efficiency, Six Sigma is also a measure of excellence. Embarking on a Six Sigma program means delivering top-quality service and products while virtually eliminating all internal inefficiencies (Dedhia, 2005). A true Six Sigma organization produces not only excellent product but also maintains highly efficient production and administrative systems that work effectively with the company's other service processes (Lucas, 2002). The primary factor in the successful implementation of a six sigma project is to have the necessary resources, the support and leadership of top management.

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VOLUME-III
TOOLS AND TECHNIQUES Unit-8 Other concepts, Tools and Techniques-I
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QUALITY CIRCLE Voluntary groups of employees who work on similar tasks or share an area of responsibility They agree to meet on a regular basis to discuss & solve problems related to work. They operate on the principle that employee participation in decisionmaking and problem-solving improves the quality of work

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How Do Quality Circles Work?

Characteristics
Volunteers Set Rules and Priorities Decisions made by Consensus Use of organized approaches to Problem-Solving

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How Do Quality Circles Work?

All members of a Circle need to receive training Members need to be empowered Members need to have the support of Senior Management

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How Can They be Used in an Organization?

Increase Productivity Improve Quality Boost Employee Morale

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Real World Example

At Penn State University in 1983, a Quality Circle was formed by Professor Hirshfield, a Professor of East Asia History.
Selected 8 Students from a large lecture class Resulted in increased involvement from the class

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Team Exercise

Break down into teams of 6-8 people Establish a leader and rules for your Circle Have a brainstorming and problem-solving session to resolve the issue on the next slide

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Problems with Quality Circles

Inadequate Training Unsure of Purpose Not truly Voluntary Lack of Management Interest Quality Circles are not really empowered to make decisions.

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Summary of History and Practices

Quality Circles were first seen in the United States in the 1950s Circles were developed by Dr, Kaoru Ishikawa in Japan in the 1960s Circles were re-exported to the US in the early 1970s

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BENECHMARKING -DEFINITION

The continuous process of measuring products, services, and practices against the companys toughest competitors or those renowned as industry leaders

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BENCHMARKING THOUGHTS

Benchmarking is the practice of being humble enough to admit that someone else is better at something and wise enough to try and learn how to match and even surpass them at it.

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BENCHMARKING

In sharp contrast to the conventional approach of setting the future goals extrapolated from the internal practices and past trends. Since external environment and market conditions change rapidly; goal setting which is internally focused cant be true reflection of customers expectations.

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BENCHMARKING

Customers expectations are highly liquid and are driven by standards set by best performer. Any product or service just below these standards may not catch the eyes of customer.

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Why use Benchmarking

Survival lies in emulating best and not in lagging behind Bench marking is time and cost efficient because it involves imitation and adaptation rather than pure invention. Prevents the Re-inventing the wheel.

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Why use Benchmarking

An effective wake-up call and helps to make a strong case for change Practical ways in which step changes in performance can be achieved by learning from others who have already undertaken comparable changes

The impetus for seeking new ways of doing things and promotes a culture that is receptive to fresh approaches and ideas
Opportunities for staff to learn new skills and be involved in the transformation process from the outset.

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Types of Benchmarking

Product Benchmarking

A process that compares a product/service, offered by a company with the same marketed by the competitors.

Performance Benchmarking

A process of comparison of business results of several competing companies.

Process Benchmarking

A comparison and action planning made for a specified functional process.

Strategic Benchmarking

A process of comparison and learning in respect of a corporate/business/functional strategy.

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Gap Analysis (Spider chart)

Total customer satisfaction

Current performance of the host for variable K.

Best of the best (current performance of the partner for variable A.

Current performance of the host Current performance of the partner

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BENCHMARKING ESSENTIALS
Clearly defined purpose Continual analysis & reassessment BM methodology must be appropriate Significance of results must be clear Conclusions must be justified by the data Never compromise integrity for the sake of findings

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BENCHMARKING ESSENTIALS

Investigation must be systematic A high code of ethics is essential Successful benchmarking requires a planned approach Requires senior management commitment Must establish & enforce milestones Must report findings to senior mangment

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BENCHMARKING ESSENTIALS

Internal training for company personnel Access to a benchmarking database Professional BM analysts to support studies The process must be institutionalized!

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BARRIERS TO BENCHMARKING 1. 2. 3. 4. Fear of being seen as copying Fear of losing competitive advantage by sharing information Arrogance we are the best, why benchmark? Benchmarking trap benchmark that which is convenient, but may not be important.

Adapted from Watson 1992 PCTI Limited - A Unique Name For Quality Education

BARRIERS TO BENCHMARKING 5. Impatience A quintessential trait 6. Excuses are too easy: We are too small We are too busy We are too different Nobody else does what we do We do it better than anyone else

Adapted from Watson 1992 PCTI Limited - A Unique Name For Quality Education

BENCHMARKING OBSERVATIONS

1. Key is to Adapt not adopt Deming

2. Benchmarking does not come as a natural process for many competitiveness does, but not benchmarking, because benchmarking requires a team approach.

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Legal & Ethical Guidelines

Keep it legal; Be willing to give what you get; Respect confidentiality; Keep information internal; Use benchmarking contacts;

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EXAMPLRY SPIDER CHART

FOR BENCHMARKING

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Quality Function Deployment (QFD)

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Overview of QFD

The History of QFD.

What is QFD? Why use QFD? Characteristics of QFD?

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History of QFD

1960s, Yoji Akao conceptualized QFD. Statistical Quality Control, SQC, was the central quality control activity after WWII. SQC became Total Quality Control, TQC. QFD was derived from TQC.

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First Application of QFD

1966, Bridgestone Tire Corp first used a process assurance table. 1972, the process assurance table was retooled by Akao to include QFD process. 1972, Kobe Shipyards (of Mitsubishi Heavy Industry) began a QFD Oil Tanker project. 1978, Kobe Shipyards published their quality chart for the tanker.

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QFD Takes Hold

The first paper on QFD was published in 1972. In 1978, the first book on QFD was published in Japanese. In 1983, the first English QFD article was published in North America. By the late 1970s most of the Japanese manufacturing industry were using QFD.

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QFD in North America

QFD spread rapidly in North America during the 1980s The Automobile industry and Manufacturing began heavy use of QFD at this time. QFD symposiums (North American, Japanese, European, International) were set up to explore research relating to QFD techniques. The QFD institute was formed in 1994.

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QFD in Software Engineering

The QFD Research Group was seeking research relating to QFD in Software Engineering since 1987. A new style of QFD, Software QFD (SQFD), has emerged. DEC, AT&T, HP, IBM and Texas Instruments have all published information relating to SQFD (Haag, 1996).

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Additional Techniques

There are many techniques which are a style of QFD or are used to enhance QFD. These include: TRIZ, conjoint analysis, the seven product planning tools, Taguchi methods, Kano model, SQFD, DQFD, Gemba, Kaizen, Comprehensive QFD, QFD (N), QFD (B).

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What is QFD?

Quality Function Deployment, QFD, is a quality technique which evaluates the ideas of key stakeholders to produce a product which better addresses the customers needs. Customer requirements are gathered into a visual document which is evaluated and remodeled during construction so the important requirements stand out as the end result.

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The QFD Paradigm

QFD provides the opportunity to make sure you have a good product before you try to design and implement it. It is about planning and problem prevention, not problem solving (Eureka, 1988). QFD provides a systematic approach to identify which requirements are a priority for whom, when to implement them, and why.

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High-Level QFD

Requirements are initially elicited using other RE techniques (interviewing, brainstorming, focus-groups, etc). QFD involves the refinement of requirements using matrices and charts based on group decided priorities. There are 4 Phases of QFD. Each Phase requires internal iteration before proceeding to the next. Once at a Phase you do not go back.
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What Does QFD Require?

QFD requires time, effort, and patience. QFD requires access to stakeholder groups. The benefits of QFD are not realized immediately. Usually not until later in the project or the next project. QFD requires full management support. Priorities for the QFD process cannot change if benefits are to be realized.
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Why use QFD?

The QFD process leads participants to a common understanding of project direction and goals. QFD forces organizations to interact across their functional boundaries (Hales, 1995). QFD reduces design changes (Mazur, 2000).

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PCTI Limited - A Unique Name For Quality Education

QFD Artifacts

Prioritized list of customers and competitors. Prioritized list of customer requirements. Prioritized list of how to satisfy the requirements. A list of design tradeoffs and an indication of how to compromise and weigh them. A realistic set of target values to ensure satisfaction.

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What about Cost?

Cost reduction is not mentioned as a Why to use QFD. Initial costs will be as high or a little higher compared with traditional techniques. You are seeking long term savings in that product or the products that follow.
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Characteristics of QFD

4 Main Phases to QFD

Product Planning including the House of Quality (Requirements Engineering Life Cycle) Product Design (Design Life Cycle) Process Planning (Implementation Life Cycle) Process Control (Testing Life Cycle)

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QFD Phase 1

Phase 1 is where most of the information is gathered. Getting good data is critical. Any mistakes in requirements here will be magnified later. Software Engineers should spend most of our time in this Phase.
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The House of Quality (HoQ)

Is a set of matrices which contains the requirements (Whats) and the detailed information to achieve those requirements (Hows, How Muchs). Stakeholder groups fill in the matrices based on their priorities and goals. A key to the HoQ is making sure each group answers the same question about the same relationship, What vs How, cell.
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Key Items to Address in HoQ

QFD Team Mission Statement. Who is the customer? What are the Requirements? How important is each requirement? How will you achieve each requirement? Complete the Relationship Matrix (whats vs hows). Which hows are the most important? What are the tradeoffs between the hows? What target values should be established?
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QFD: Step by Step Guide

How QFD Works Step by Step Guide to Build a House of Quality Example:

Web page development

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How QFD Works

Customer-requirements-driven design and production planning process Rationale is that product quality is measured by customer satisfaction and customers are satisfied if their needs or requirements are met QFD is building requirements into products. Inputs customer requirements Outputs production procedures for producing a product to satisfy customers.

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How QFD Works (2)

Requirem ents

Conceiv e

Technical Specificat ions

Design

High Level Design

Process

Metho ds Tools

Producti on

Procedure s

QFD Planning Process

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House of Quality

Correlation Matrix (Hows vs. Hows)

Technical Specifications Customer Requirements (Whats) (Hows) Relationship Matrix (Whats vs. Hows) Technical Competitive Target Goals Evaluations Degree of Technical Difficulty Overall Importance Ratings Whys Customer Importanc e Rating Customer Market Evaluation (Whats vs. Whys)

How muchs

Example

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Customer Requirements "Voice of Customer (VOC) Are what s Expressed in customers own language Qualitative, vague, ambiguous, incomplete, inconsistent Group session Categorization and organization

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Technical Specifications Voice of the Engineers or Designers (how s). Interpretations of "what s" in terms of technical specifications or design requirements (designers language) Potential choices for product features Each "what s" item must be converted (refined) to how(s) They have to be actionable (quantifiable or measurable) Free of technology and implementation creates flexibility for design
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Relationship Matrix

Whats vs. Hows Correlates how hows satisfy whats Use symbolic notation for depicting weak, medium, and strong relationships A weight of 1-3-9 or 1-3-5 is often used More strongs are ideal Cross-checking ability

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Customer Prioritization

Prioritizing the importance of each what s item to the customer. Rate each what s item in 1 to 5 rating Completed by the customer AHP can be used

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Customer Market Competitive Evaluations

Comparison of the developer's product with the competitors products Question: Why the product is needed? The customer evaluates all products comparing each what s item Rating of 1 of 5 is given The results help position the product on the market. Identify the gaps

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Target Goals

How muchs" of the Hows (measurement) Answers a common design question: "How much is good enough (to satisfy the customer)? Not known at the time when the "hows" are determined. They are determined through analysis. Clearly stated in a measurable way as to how customer requirements are met Provides designers with specific technical guidance Can be used for (acceptance) testing.

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Correlation Matrix

Roof part Identifies how how s items support (positive) or conflict (negative) with one another May combine strong positive items to reduce development effort Find trade-offs for negative items by adjusting how much values. Trade-offs must be resolved or customer requirements wont be fully satisfied.

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Technical Specifications Competitive Evaluation

Similar to customer market competitive evaluations but conducted by the technical team Technical advantages or disadvantages over competitor products Conflicts may be found between customer evaluations and technical team evaluations

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Technical Difficulty Assessment

Performed by technical teams Helps to establish the feasibility and realization of each "hows" item 1 to 5 ratings

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Overall Importance Ratings

Only time when math is required Calculated overall ratings Function of relationship ratings and customer prioritization ratings. Used to determine a set of technical specifications / requirements needed for the next phase.

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Decisions for Phase 2

The Hows are analyzed

Overall importance ratings Technical difficulties Competitive ratings

Decisions on design requirements are made Start product design phase

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SQFD

QFD for software Software Engineering is requirements driven Addresses quality issues in software development Usually use QFD phase 1 Focuses on requirements Hows vs. functional or non-functional requirements How muchs vs. Testing

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How to Apply QFD to SE

Use for new or upgrade type of projects Requirements refinements

Customer has ideal, developer has solution

Ideal to know application domain knowledge

Software for internal use Software for general use such as OS, word processor etc.

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Presentation Summary

Disadvantages of SQFD Advantages of SQFD How to Make SQFD work

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Disadvantage of SQFD
What Makes QFD Unsuitable for SE

Time and resources consuming Process limitation in iteration support Does not support common language between users and developers Documentation requirements Focus on quality other than functionality

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Benefits of SQFD

Communications among groups Decision justification Metrics Cross-checking Avoid loss of information Shortens the SDLC

Source: http://www.acm.org/pubs/articles/journals/cacm/1996-39-1/p41-haag/p41-haag.pdf

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Advantages of SQFD

Customer / User involvement Focus on customer needs Team builder Improve product or service quality Shorter development cycles Lower costs and greater productivity

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Advantages of SQFD (2)

Reduces design changes Good for communication, decision making and planning Allows for a lot of information in a small space

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How to Make SQFD Work Obtain management commitment Establish clear, up-front objectives Strong technical know-how Establish multi-functional team. Designate a facilitator QFD training

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How to Make SQFD Work (2)

Get an adequate time commitment from team members Schedule regular meetings Avoid first using QFD on a large, complex project Avoid gathering perfect data Avoid technical arrogance Focus on the important items

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Conclusion

QFD originated in the Manufacturing industry and has been applied to software engineering QFD addresses the quality of the product SQFD is QFD for software QFD, JAD, SSM, PD, RAD and OO all have their merits and faults The use of the technique depends on the project

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VOLUME-III
TOOLS AND TECHNIQUES Unit-9 Other concepts, Tools and Techniques-II
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5 S
1. (Seiri) Sort - All unneeded tools, parts and supplies are removed from the area 2. (Seiton) Set in Order - A place for everything and everything is in its place 3. (Seiso) Shine - The area is cleaned as the work is performed 4. (Seiketsu) Standardize - Cleaning and identification methods are consistently applied 5. (Shitsuke) Sustain - 5S is a habit and is continually improved. Also - Work areas are safe and free of hazardous or dangerous conditions
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Re- engineering

Introduction:
In todays changing scenario, quality has become the buzzword for survival. The ability of an organization to compete in the global village gets defined by its ability to channelize the information effectively and efficiently. To transform information into the sustainable valuable organizational asset, knowledge, experience and expertise must be formalized, shared, distributed and applied. Information is a vital and regenerative resource; the basic component of societal development.

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What is Re-Engineering?

Re-engineering is reinventing the way one does business by stepping back and examining values, goals and system processes used to meet these goals. According to Hammer and Campy reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance4. Customer focused processes redesign is the major outcome of this evaluation. Further reengineering is an ongoing process to improve the quality of library and to make it more lively, productive, sustainable and fruitful.
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Need for Re-engineering

The quality and efficiency of the lies in providing exact value added services and products tailored to needs of their users in their chosen format while sitting in any corner of the world. Reengineering is essential to improve the quality-excellence, perfection, standards, and value for money, consistency, relevance- of services and products using the state-of-art technologies to achieve the goals of the users to full satisfaction. Re-engineering is inevitable to provide right quality information to the right user at the right time in the right format at the least cost with precision to compete in the global village.
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Re-engineering cycle

Five phases of reengineering cycle are Planning Process study Studies of the best practices Redesign and Implementation.
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Conclusion

The information gap between the rich and the poor is growing. This has lead to digital divide between the information haves and have-nots. This is more serious and dangerous than economic stratification of rich and poor. Library being the heart of the institution and soul of the society, reengineering of libraries can democratize information, bring down digital divide, bring out knowledge friendly culture and can lead the nation to sustainable qualitative production in the global village
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Principles of Re-Engineering
General Principles Simplicity Empowerment Process Design Think horizontally Organizational Structure Remove barriers Support business processes Customer Interfaces Work from the customer perspective Automation Automate to advantage

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Simpler is Better

Avoid Over-engineering Work hard to simplify Eliminate multiple points of contact with & for the customer Eliminate errors resulting from multiple contacts Eliminate need to reconcile differing information Reduce delays resulting from reconciliation REMEMBER: Simple Processes Less Costly More Flexible

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Enable Workers to Make Decisions

Vertical Compression Process decision-making is not strictly a management task Workers are empowered Decision-making becomes part of work Advantages Fewer Communication Delays Lower Management Overhead Better Customer Response

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Perform Steps in Natural Order

Parallel tasks rather than sequential procedure

Precedence set only by need

Speed up the process by: Accomplishing tasks simultaneously Reducing time lag between early and late steps Less chance of changing requirements Less need for rework

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Multiple Version Processes

Single solution process

One-size-fits-all Too complex for standard/simple cases

Processes require flexibility for:

Different markets Different situations Resource variations Special customer requests

Reengineered process contains:

Simple, standard path (80% - 90%) Exception handling path (8% - 18%) Large complex path (2%)

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Perform Work Where It Makes Sense

Administrative tasks performed by the process team Small purchases Tasks not requiring a specialist

Work off-loaded from team Specialized capabilities More cost-efficient

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Reduce Audits

Checks and Controls

Controls cost more than purchases Use only when it makes economic sense Implement aggregate or deferred controls

Reviews and Inspections Designs quality into a process Identifies problems when they occur Downstream inspections breaks down team spirit does little to improve quality adds higher costs Ex: Rework

Checks, controls and inspections add no value for the customer

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Combine Several Jobs into One

Assign multiple process activities to one person

Avoid the Industrial Revolution

Division of tasks Specialization of labor Unskilled work force No need for communication

Create Task Interrelationships

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Organize Around Processes

Formation of teams to perform an entire process Do not split work by function (organization) Teams co-located Each person understands another's responsibility

Cross-Training

Eliminate/minimize hand-offs Reduces delays, errors and rework Reduces management overhead

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Adopt Customer Perspective

Accessibility Be available when the customer wants to interact Information Require only the data which cannot be captured elsewhere

Wants and Needs What are the customers goals, objectives - wants and needs? Are we meeting these? Are there unknown wants?

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Provide Single Point of Contact

Case manager role

Single point of contact Process owner Has access to all people and information systems involved in the process Empowered by management to change the process

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Automate Appropriately

Avoid Costly Automating for Automations Sake

Weigh automation benefits against costs

Technology acquisition System development and maintenance Work force training Obsolescence

Avoid automating current processes unless needed Do wrong things faster Slows changes to effect improved processes Automate Repetitive Tasks Automation strong point Leave interesting jobs for people Business Decision are made by people not machines or software

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THANK YOU ALL

Presented by: Rakhi Gupta

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