Slide 1Slide 2Slide 3The Quality Gurus – Edward DemingThe Quality Gurus – Joseph JuranSlide 6Slide 7Slide 8Six Sigma QualitySlide 10Six Sigma Roadmap (DMAIC)Slide 12Quality ImprovementSlide 14Slide 15Slide 16Slide 17Slide 18Slide 19Slide 20Slide 21Slide 22Slide 23Slide 24Slide 25Slide 26Slide 27Slide 28Slide 29Slide 30Slide 31Slide 32Average & Variation exampleSlide 34But are all ‘good’ products equal?Slide 36Slide 37Slide 38Slide 39Slide 40Slide 41ExampleSolutionSlide 44Example (contd)Slide 46Slide 47Slide 48Slide 49Slide 50Slide 51Slide 52Slide 53Slide 54Slide 55Slide 56Slide 57Slide 58Slide 59Slide 60Slide 61Slide 62Quality ManagementQuality Management““It costs a lot to produce a bad product.It costs a lot to produce a bad product.””Norman AugustineNorman AugustineCost of quality1. Prevention costs2. Appraisal costs3. Internal failure costs4. External failure costs5. Opportunity costsWhat is quality management all about?Try to manage all aspects of the organization in order to excel in all dimensions that are important to “customers”Two aspects of quality: features: more features that meet customer needs = higher qualityfreedom from trouble: fewer defects = higher qualityThe Quality Gurus – Edward Deming1900-19931986Quality is “uniformity and dependability”Focus on SPC and statistical tools“14 Points” for managementPDCA methodThe Quality Gurus – Joseph Juran1904 - 2008 1951Quality is “fitness for use”Pareto PrincipleCost of QualityGeneral management approach as well as statisticsHistory: how did we get here…•Deming and Juran outlined the principles of Quality Management.•Tai-ichi Ohno applies them in Toyota Motors Corp.•Japan has its National Quality Award (1951).•U.S. and European firms begin to implement Quality Management programs (1980’s).•U.S. establishes the Malcolm Baldridge National Quality Award (1987).•Today, quality is an imperative for any business.What does Total Quality Management encompass?TQM is a management philosophy:•continuous improvement•leadership development•partnership developmentCulturalAlignmentTechnical Tools(Process Analysis, SPC, QFD)CustomerDeveloping quality specificationsInput Process OutputDesignDesign qualityDimensions of qualityConformance qualitySix 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 six standard deviations of the process outputs6Six Sigma QualitySix Sigma Roadmap (DMAIC)Next ProjectDefineCustomers, Value, Problem StatementScope, Timeline, TeamPrimary/Secondary & OpEx MetricsCurrent Value Stream MapVoice Of Customer (QFD)MeasureAssess specification / DemandMeasurement Capability (Gage R&R)Correct the measurement systemProcess map, Spaghetti, Time obs.Measure OVs & IVs / QueuesAnalyze (and fix the obvious)Root Cause (Pareto, C&E, brainstorm)Find all KPOVs & KPIVsFMEA, DOE, critical Xs, VA/NVAGraphical Analysis, ANOVAFuture Value Stream MapImproveOptimize KPOVs & test the KPIVsRedesign process, set pacemaker5S, Cell design, MRSVisual controlsValue Stream PlanControlDocument process (WIs, Std Work)Mistake proof, TT sheet, CI ListAnalyze change in metricsValue Stream ReviewPrepare final reportValidate Project $Validate Project $Validate Project $Validate Project $Celebrate Project $Six Sigma OrganizationQuality ImprovementTraditionalContinuous ImprovementTimeQualityContinuous improvement philosophy1. Kaizen: Japanese term for continuous improvement. A step-by-step improvement of business processes.2. PDCA: Plan-do-check-act as defined by Deming.Plan DoAct Check3. Benchmarking : what do top performers do?Tools used for continuous improvement1. Process flowchartTools used for continuous improvement2. Run ChartPerformanceTimeTools used for continuous improvement3. Control Charts Performance MetricTimeTools used for continuous improvement4. Cause and effect diagram (fishbone)Environment Machine Man Method MaterialTools used for continuous improvement5. Check sheetItem A B C D E F G---------------------√ √ √√ √√ √√√√ √√ √ √√√√√√ √Tools used for continuous improvement6. HistogramFrequencyTools used for continuous improvement7. Pareto AnalysisA B C D E FFrequencyPercentage50%100%0%75%25%102030405060Summary of Tools1. Process flow chart2. Run diagram3. Control charts4. Fishbone5. Check sheet6. Histogram7. Pareto analysisCase: shortening telephone waiting time…•A bank is employing a call answering service•The main goal in terms of quality is “zero waiting time” - customers get a bad impression - company vision to be friendly and easy access•The question is how to analyze the situation and improve qualityThe current processCustomer BOperatorCustomer AReceivingPartyHow can we reduce waiting time?Makes customer waitAbsent receiving party Working system of operators Customer OperatorFishbone diagram analysisAbsentOut of officeNot at deskLunchtimeToo many phone callsAbsentNot giving receiving party’s coordinatesComplainingLeaving a messageLengthy talkDoes not know organization wellTakes too much time to explainDoes not understand customerDaily averageTotal numberA One operator (partner out of office) 14.3 172B Receiving party not present 6.1 73C No one present in the section receiving call 5.1 61D Section and name of the party not given 1.6 19E Inquiry about branch office locations 1.3 16F Other reasons 0.8 1029.2 351Reasons why customers have to wait(12-day analysis with check sheet)Pareto Analysis: reasons why customers have to waitA B C D E FFrequency Percentage0%49%71.2%10020030087.1%150250Ideas for improvement1. Taking lunches on three different shifts2. Ask all employees to leave messages when leaving desks3. Compiling a directory where next to personnel’s name appears her/his titleResults of implementing the recommendations A B C D E FFrequencyPercentage100%0%49%71.2%10020030087.1%100%B C A D E FFrequencyPercentage0%100200300Before……AfterImprovementIn general, how can we monitor quality…?1. Assignable variation: we can assess the cause2. Common variation: variation that may not be possible to correct (random variation, random noise)By observingvariation inoutput measures!Statistical Process Control (SPC)Every output measure has a target value and a