Ch8 total+qlty+mgt
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Total Quality Management
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Total Quality Management Defined Quality Specifications and Costs Six Sigma Quality and Tools The Shingo System : Fail-Safe ISO 9000 / ISO 14000 Kaizen & Continuous improvement
concepts
OBJECTIVES
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Total Quality Management (TQM)
Total quality management is defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer
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Total Quality Management- TQM
Quality: Definition Fitness for use
Meeting specifications & requirements
Customer satisfaction
Faith of user
Competitive cost & Reliability
Best at first
Pride for use
Consistency Safety
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Total Quality Management- TQM
Quality: Definition Fitness for use Meeting specifications & requirements Customer satisfaction Faith of user Competitive cost & Reliability Best at first Pride for use Consistency Safety
Right quality: Definition– Suitability for it’s intended purpose
(Example:- M.D’s table Vs Classroom table)
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Methods of describing quality
Samples Brand names Specifications
Material specifications Performance specifications drawings
Standards Industry National International
Market Grades
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Quality Specifications Quality Characteristics
– Variables – characteristics that are measurable on a numerical scale – e.g. dimensions
– Attributes – a characteristic that cannot be measured on a numerical scale - e.g. the smell of a cologne is characterized as either acceptable or not/ the color of a fabric is either acceptable or not
– Defect – a quality characteristic that does not meet certain standards
– Standard or specification – a set of conditions and requirements
– Quality of design – deals with the stringent conditions that the product or service must minimally possess to satisfy the customer requirements
– Quality of conformance
– Quality of performance - is concerned with how well the product functions or service performs when put to use - It measures the degree to which the product or service satisfies the customer
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Quality Control & Quality Assurance
Quality Assurance
Definition: All those planned or systematic actions necessary to provide confidence that a product or service will satisfy given needs
Evolution of Q.A– Inspection – oriented Quality Assurance– Process control –oriented Quality Assurance– New product development based Quality Assurance
Objective: of Q.A function is to have in place a formal system that continuously surveys the effectiveness of the company quality philosophy
Function: The Q.A Team audits the various departments and assists them in meeting their responsibilities for producing a quality product
Comparative Stance
Quality Assurance – PreventiveQuality Control - Curative
(Popular saying – “Prevention better than Cure”)
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Costs of Quality
External Failure Costs
Appraisal Costs
Prevention Costs
Internal FailureCosts
Costs ofQuality
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Six Sigma Quality A philosophy and set of
methods companies use to eliminate defects in their products and processes
Seeks to reduce variation in the processes that lead to product defects
The name, “six sigma” refers to the variation that exists within plus or minus three standard deviations of the process outputs
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What is Six Sigma?
• It is a methodology for continuous improvement
• It is a methodology for creating products / processes that perform at high standards
• It is a set of statistical and other quality tools arranged in unique way
• It is a way of knowing where you are and where you could be!
• It is a Quality Philosophy and a management technique
Six Sigma is not:
• A standard
• A certification
It is Another metric like percentage
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The evolution of Quality Systems
Quality as InspectionQuality as Inspection
1920-1940’s
Statistical process control
Statistical process control
1940-1960’s
Using statistical techniques for reducing variability – Quality control
Total Quality ManagementTotal Quality Management
1960-1980’s
Organizations tuned towards quality – Quality assurance
Six SigmaSix Sigma
1987 and beyond
Zero defects
Lean Six Sigma
Lean Six Sigma
2000 and beyond
• Lean manufacturing (TPM, JIT, SCM) + Six sigma
• Optimized flow from the customer point of view
Time
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Path to Six Sigma
4 Sigma 6,210 Defects
2 Sigma 308,537 Defects
3 Sigma 66,807 Defects
5 Sigma 233 Defects
6 Sigma 3.4 Defects
Sigma levels and Defects per million
opportunities (DPMO)
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• The term “Six Sigma” was coined by Bill Smith, an engineer with Motorola
• Late 1970s - Motorola started experimenting with problem solving through statistical analysis
• 1987 - Motorola officially launched it’s Six Sigma program
Origin of Six Sigma
MotorolaMotorola the company that invented Six Sigmathe company that invented Six Sigma
MotorolaMotorola the company that invented Six Sigmathe company that invented Six Sigma
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• Jack Welch launched Six Sigma at GE in Jan,1996
• 1998/99 - Green Belt exam certification became the criteria for management promotions
• 2002/03 - Green Belt certification became the criteria for promotion to management roles
The Growth of Six Sigma
GEGEthe company that perfected Six Sigmathe company that perfected Six Sigma
GEGEthe company that perfected Six Sigmathe company that perfected Six Sigma
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The Growth of Six Sigma
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The GE model for process improvements
The Growth of Six Sigma
DDefineefine MMeasureeasure AAnalyzenalyze IImprovemprove CControlontrol
Combination of change management & statistical analysis
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Six Sigma Quality: DMAIC Cycle
Define, Measure, Analyze, Improve, and Control
(DMAIC)
Developed by General Electric as a means of
focusing effort on quality using a methodological
approach
Overall focus of the methodology is to understand
and achieve what the customer wants
A 6-sigma program seeks to reduce the variation
in the processes that lead to these defects
DMAIC consists of five steps….
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Six Sigma Quality: DMAIC Cycle (Continued)
1. Define (D)
2. Measure (M)
3. Analyze (A)
4. Improve (I)
5. Control (C)
Customers and their priorities
Process and its performance
Causes of defects
Remove causes of defects
Maintain quality
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Analytical Tools for Six Sigma and
Continuous Improvement: Flow Chart No, Continue…
Material Received
from Supplier
Inspect Material for
DefectsDefects found?
Return to Supplier for Credit
Yes
Can be used to find quality problems
Can be used to find quality problems
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Analytical Tools for Six Sigma and Continuous Improvement: Run Chart
Can be used to identify when equipment or processes are not behaving according to specifications
Can be used to identify when equipment or processes are not behaving according to specifications
0.440.460.480.5
0.520.540.560.58
1 2 3 4 5 6 7 8 9 10 11 12Time (Hours)
Dia
me
ter
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Analytical Tools for Six Sigma and Continuous Improvement: Pareto Analysis
Can be used to find when 80% of the problems may be attributed to 20% of thecauses
Can be used to find when 80% of the problems may be attributed to 20% of thecauses
Assy.Instruct.
Fre
quen
cy
Design Purch. Training
80%
23Analytical Tools for Six Sigma and Continuous Improvement:
Checksheet
Billing Errors
Wrong Account
Wrong Amount
A/R Errors
Wrong Account
Wrong Amount
Monday
Can be used to keep track of defects or used to make sure people collect data in a correct manner
Can be used to keep track of defects or used to make sure people collect data in a correct manner
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Analytical Tools for Six Sigma and Continuous Improvement: Histogram
Nu
mb
er
of
Lo
ts
Data RangesDefects
in lot
0 1 2 3 4
Can be used to identify the frequency of quality defect occurrence and display quality performance
Can be used to identify the frequency of quality defect occurrence and display quality performance
25Analytical Tools for Six Sigma and Continuous Improvement: Control
Charts
Can be used to monitor ongoing production process quality and quality conformance to stated standards of quality
Can be used to monitor ongoing production process quality and quality conformance to stated standards of quality
970
980
990
1000
1010
1020
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
LCL
UCL
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Analytical Tools for Six Sigma and Continuous Improvement: Cause &
Effect Diagram
Effect
ManMachine
MaterialMethod
Environment
Possible causes:Possible causes: The results or effect
The results or effect
Can be used to systematically track backwards to find a possible cause of a quality problem (or effect)
Can be used to systematically track backwards to find a possible cause of a quality problem (or effect)
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Other Six Sigma Tools
Failure Mode and Effect Analysis (FMEA)
is a structured approach to identify,
estimate, prioritize, and evaluate risk of
possible failures at each stage in the
process
Design of Experiments (DOE) a statistical
test to determine cause-and-effect
relationships between process variables
and output
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Six Sigma Roles and Responsibilities
1. Executive leaders must champion the process of improvement
2. Corporation-wide training in Six Sigma concepts and tools
3. Setting stretch objectives for improvement
4. Continuous reinforcement and rewards
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The Shingo System: Fail-Safe Design
Shingo’s argument:– SQC methods do not prevent defects– Defects arise when people make errors– Defects can be prevented by providing
workers with feedback on errors
Poka-Yoke includes:– Checklists– Special tooling that prevents workers from
making errors
Zero-Defect Concept(Total Error-free performance)
• Origin- Missile Industry / later Aviation Industry
• “ To Err is Human” – Training to erase the myth
• Employee awareness programme - direct contribution to the product performance
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ISO 9000
Series of standards agreed upon by the International Organization for Standardization
Adopted in 1987
More than 100 countries
A prerequisite for global competition?
ISO 9000 directs you to "document what you do and then do as you documented"
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Three Forms of ISO Certification
1. First party: A firm audits itself against ISO 9000 standards
2. Second party: A customer audits its supplier
3. Third party: A "qualified" national or international standards or certifying agency serves as auditor
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ISO 14000Quality Management Systems
ORIGIN
• Primarily as a result of Uruguay round of GATT negotiations and RIO summit on environment in 1992.
• Released in the year 1996 as a Global series of Environmental management system standards.
HOW MANY STANDARDS IN EMS ?
• Totally 12 standards (14000 – 14060)
• ISO 14001 is the most critical (“Environmental Management Systems – specifications with guidance for use”)
ISO 14000- WHAT DOES IT COVER AND ACHIEVE ?
• Starts with “environmental policy”
• Provides a framework for organization to demonstrate their commitment to environmental responsibility
• Establishes targets and objectives relates to identified environmental management goals.
• Environmental auditing, environmental labeling, life cycle assessment etc.,
• Prevents pollution , reduced waste and create a good public image.
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Question Bowl
Which of the following are Dimensions of Design Quality?
a. Performanceb. Durabilityc. Aestheticsd. All of the abovee. None of the above
Answer: d. All of the above
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Question Bowl
Approximately what percentage of every sales Rupee is allocated to the “cost of quality”?
a. Less than 5%b. About 10%c. Between 15 and 20 %d. More than 30%e. None of the aboveAnswer: c. Between 15 and 20 % (for cost of reworking, scrapping, repeated service, etc.)
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Question Bowl
Which of the following are classifications of the “cost of quality”?
a. Appraisal costsb. Prevention costsc. Internal failure costsd. External failure costse. All of the above
Answer: e. All of the above
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Question Bowl
Which of the following are functions of a quality control department?
a. Testing product designs for reliabilityb. Gathering product performance datac. Planning and budgeting the QC
programd. All of the abovee. None of the above
Answer: d. All of the above
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Question Bowl
Which of the following is a Critical Customer Requirement (CCR) in the context of a Six Sigma program?
a. DMAICb. DPMOc. PDCAd. DOEe. None of the above
Answer: e. None of the above (The CCR is the criteria that is used to define desired quality. Processing a loan in 10 days is an example of a CCR.)
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Question Bowl
The DMAIC cycle of Six Sigma is similar to which of the following quality management topics?
a. Continuous improvementb. Servqualc. ISO 9000d. External benchmarking e. None of the above
Answer: a. Continuous improvement
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Question Bowl
The “A” in DMAIC stands for which of the following?
a. Alwaysb. Accessibilityc. Analyzed. Acte. None of the aboveAnswer: c. Analyze (Define, Measure, Analyze, Improve and Control)
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Question Bowl
Which of the following analytical tools depict trends in quality data over time?
a. Flowchartsb. Run chartsc. Pareto chartsd. Checksheetse. Cause and effect diagrams
Answer: b. Run charts