Quality Tools

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• Quality Tools

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Key Contributors to Quality Management
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Key Contributors to Quality Management
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Total Quality Management

• A philosophy that involves everyone in an
  organization in a continual effort to improve
  quality and achieve customer satisfaction

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Process Improvement

• A systematic approach to improving a process
• Overview of the approach
• process mapping
• analyze the process
• redesign the process

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The PDSA Cycle
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The Process Improvement Cycle
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Process Improvement Tools

• There are a number of tools that can be used for
  problem solving and process improvement
• Tools aid in data collection and interpretation,
  and provide the basis for decision making

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Seven Basic Quality Tools

• Check sheets
• Flowcharts
• Scatter diagrams
• Histograms
• Pareto analysis
• Control charts
• Cause-and-effect diagrams

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Check Sheet
Monday
Billing Errors Wrong Account Wrong Amount A/R
Errors Wrong Account Wrong Amount
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Flowchart
Process
Process
Process?
OK?
OK
Process
Identify value added steps, rework loops, flow
loops, etc.
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Scatter Diagram
Variable B
Variable A
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Histogram
frequency
A
B
C
D
E
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Pareto Analysis
80 of the problems may be attributed to 20 of
the causes.
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Control Chart
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Cause-and-Effect Diagram
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Tracking Improvements
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Methods for Generating Ideas

• Brainstorming
• Quality circles
• Interviewing
• Benchmarking
• 5W2H

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What is Six Sigma?

1. Customer Focus Focus on what is critical to
   customers
2. Data Driven Extensive use of statistical tools
3. Robust Methodology Tools plus implementation
   methods to make success more likely

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What is Six Sigma?Key Concepts

1. Critical to Quality What attributes are most
   important to the customer? (CTQ, CTC, CTD)
2. Defect Failing to deliver what the customer
   wants / expects (DPMO)
3. Variation The level of unpredictability the
   customer experiences

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What is Six Sigma? Key Concepts

1. Process Capability What your process can deliver
   consistently
2. Stable Operations Stable ops are predictable
3. Design for Six Sigma Designing to meet customer
   needs and process capability

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DMADV - DMAIC
Existing Processes
New Processes
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Define Phase - Tools

• Project Charter
• Stakeholder Analysis
• Affinity Diagram
• SIPOC
• Voice of the Customer
• CT Tree

• Kano Model
• SWOT Analysis
• Cause-and-Effect Diagrams
• Supplier Segmentation
• Project Management

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Charter

• Problem statement
• Business case
• Goals, milestones, success criteria,
  deliverables
• Project scope / boundaries
• Roles responsibilities
• Stakeholder support / approval needed

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Business Case
Potential Improvement Potential Impact
Improve quality Reduce cost, inventory
Improve OTD Shortages ?, inventory ?
Select better suppliers Q, , LT, reduce inventory
Implement rating system Improve supply efficiency, better suppliers
Reduce price Reduce cost
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Define Phase - Tools

• Project Charter
• Stakeholder Analysis
• Affinity Diagram
• SIPOC
• Voice of the Customer
• CT Tree

• Kano Model
• SWOT Analysis
• Cause-and-Effect Diagrams
• Supplier Segmentation
• Project Management

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Define Outputs

• Once completed, the Define Phase should answer
  the following questions
• 1) Who is the customer?
• 2) What matters?
• 3) What is the scope?
• 4) What defect am I trying to reduce?
• 5) What are the improvement targets?

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The Measure Phase

• Purpose
• To collect current performance of the process
  identified in the Define phase
• This data is used to determine sources of
  variation and serve as a benchmark to validate
  improvements

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Measure - Key Concepts

• Measurement
• Variation
• Exists naturally in any process and is the reason
  Six Sigma projects are undertaken
• Data
• Data Collection Plan
• Measurement System Analysis
• Ensures measurement techniques are reproducible
  and repeatable

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Data Collection Plan

• What data will be collected?
• Why is it needed?
• Who is responsible?
• How will it be collected?
• When will it be collected?
• Where will it be collected?

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Measurement System Analysis

• After Data Collection Plan is complete, it needs
  to be verified before actual data is collected
• MSA is performed on a regular basis
• MSA ends when a high level of confidence is
  reached that the data collected accurately
  depicts the variation in the process

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Analyze Phase

• The analyze phase allows the Project Team to
  target improvement opportunities by taking a
  closer look at the data.

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Analyze Phase

• Capability Analysis - establishing current
  performance level
• Graphical Analysis - a visual indication of
  performance using graphs
• Root Cause Analysis developing a hypothesis
  about the causes of variation
• Root Cause Verification verifying that the
  planned action will generate the desired
  improvement

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Elements of Improve Phase

• Generate Improvement Alternatives
• Create a Should Be Process Map
• Conduct FMEA
• Perform Cost/Benefit Analysis
• Pilot
• Validate Improvement

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Control PhaseWhy is it important?

• The Control Phase begins as the project team
  tries to eliminate errors by Mistake Proofing
  their improvement alternative.
• Mistake Proofing attempts to eliminate the
  opportunities for error.

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Control PhaseWhy is it important?

• Mistake Proofing tries to make it impossible for
  an operation to be performed incorrectly, and/or
  correct errors before they are passed to the next
  worker, where they might become a defect.

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Control Phase 2

• During the Control Phase the Project team will
• 1) Develop a plan to make sure the measurement
  system will remain relevant over the long term.
• 2) Establish Control Charts the process owner
  will use to manage the process.
• 3) Create a Reaction Plan to address situations
  that might cause the process to move out of
  control.

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Control Phase 3

• The Control Phase ends when
• 1) Standard Operating Procedures have been
  updated.
• 2) Process Operators, the people who do the
  job, have been trained for the new process.
• Once completed, the Control Phase should sustain
  the gains the project made while implementing
  ongoing process controls.

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Control Phase 4

• When is a project complete?
• 1) When other Black Belts can see the ongoing
  controls work
• 2) When the customer sees the results
• 3) When the business sees the money.

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Stakeholder Analysis
People or Groups People or Groups People or Groups
Level of Commitment Buy Mfg Eng
Enthusiastic Support
Help it work
Compliant
Hesitant X
Indifferent
Uncooperative X
Opposed
Hostile X
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SIPOC Example
Suppliers Inputs Processes Outputs Customers
Ops Mgt Supplier Perf. Supplier Evaluation Survey Ops Mgt
Buyers Complaint Supplier Evaluation Rating system Buyers
Engrg. Tech Reqts Supplier Evaluation Improved Supplier Perform. Engineering
Mfg. Rating system Supplier Evaluation Commit. to suppliers Mfg.
Suppliers Supplier Complaint Supplier Evaluation Commit. to suppliers Suppliers
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SWOT Analysis
Positive Negative
Internal Strengths Weaknesses
External Opportunities Threats
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Quality Awards
Baldrige Award
Deming Prize
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Malcolm Baldrige National Quality Award (1 of 2)

• Began in 1987
• Recognizes achievements of excellent
  organizations and provide examples to others
• may give two awards in each category
• manufacturing
• small business
• service
• health care
• education

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Malcolm Baldrige National Quality Award (2 of 2)

• Establishes criteria for evaluating quality
  efforts
• Provides guidance for other American companies

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2001 MBNQA Categories and Scoring System

• 1.0 Leadership 120
• 2.0 Strategic Planning 85
• 3.0 Customer and Market Focus 85
• 4.0 Information and Analysis 90
• 5.0 Human Resource Focus 85
• 6.0 Process Management 85
• 7.0 Business Results 450
• 8.0 Global Market Development and
  Competitiveness (optional) 100

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Quality CertificationISO 9000

• Set of international standards on quality
  management and quality assurance, critical to
  international business
• ISO 9000 series standards, briefly, require firms
  to document their quality-control systems at
  every step (incoming raw materials, product
  design, in-process monitoring and so forth) so
  that theyll be able to identify those areas that
  are causing quality problems and correct them