Quality Management and Six Sigma Start Exam 3 High Performance Business 1 Operational Excellence World Class Market Leadership 2 Customer Focused Quality Six Sigma Total quality by reducing variation and eliminating defects 3 Best In Class Lean Flexibility and speed by eliminating waste in process 4 Class A ERP Predictable performance through accuracy of plans data All lead to Continuous Improvement Takes less time as you go down the list Defects Found in Development Found in Prototyping Found in Production Found by the Customer Cost and impact to company effort to find and eliminate the problem both increase as you move forward Total Quality Management managing the entire organization so that it excels on all dimensions of products and services that are important to the customer Fundamental Operational Goals 1 Careful design of the product or service 2 Ensuring that the organizations systems can consistently produce the design design for manufacturability The Quality Gurus W Edwards Deming Man behind Plan Do Check Act Helped Japan gain manufacturing excellence after WWII 14 key principles to managers for transforming business effectiveness Phil Crosby Joseph Juran Wrote Quality is Free Known for Zero Defects Definition of quality conformance to requirements General approach prevention not inspection Wrote the Quality Control Handbook The Juran Trilogy Quality Planning Quality Control Quality Improvement One of the first to write about costs of poor quality Definition of quality fitness for use satisfies customers needs Quality Specifications and Quality Costs Design quality inherent value of the product in the marketplace Conformance quality degree to which the product or service design specification are met Drivers Performance Features Reliability durability Aesthetics Features Serviceability Perceived Quality Fundamental to any quality program is the determination of quality specifications and the costs of achieving or not achieving those specifications Quality at the source making the person who does the work responsible for ensuring that specifications are met Costs of Quality COQ Expenditures related to achieving product or service quality 1 Appraisal Costs after product service is produced costs of the inspection and testing to ensure that the product or process is acceptable 2 Prevention Costs before the product service is produced sum of all the costs to prevent defects 3 Internal failure costs costs for defects incurred within the system or business 4 External failure costs costs for defects that pass through the system or business International Organization for Standardization ISO Series of standards agreed upon by the International Organization for Standardization Adopted in 1987 More than 160 countries ISO 9000 directs you to document what you do and then do as you documented international reference for quality management requirements in business to business dealing ISO 14000 is a family of standards on environmental management primarily concerned with environmental management ISO 26000 encourages organizations to discuss social responsibility issues and possible actions with relevant stakeholders Six Sigma 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 Refers to the goal of no more than 4 defects per million units Defects per million opportunities DPMO Number of defects Number of opportunities for error per unit Number of units 1 000 000 1 Define measure analyze improve and control DMAIC 2 Overall focus of the methodology is to understand and achieve what the customer wants 3 Started by Motorola and Developed by General Electric as a means of focusing effort on referred to as the voice of the customer quality using a methodological approach 4 A Six Sigma program seeks to reduce the variation in the processes that lead to these defects DMAIC Cycle Define identify customers and their priorities Identify CTQ critical to quality characteristics Measure determine how to measure the process and how it is performing Analyze determine the most likely causes of defects fishbone Improve identify means to remove the causes of defects Control determine how to maintain the improvements Six Sigma Analytical Tools Flowchart diagram of the sequence of operations define Run chart depict trends in data over time measure Pareto chart help to break down a problem into components measure Checksheet basic form to standardize data collection measure Cause and effect diagram show relationships between causes and problems fishbone diagrams analyze Opportunity flow diagram used to separate value added from non value added improve Process Control Chart used to assure that processes are in statistical control control SIPOC suppliers inputs processes outputs customers Failure mode and effect analysis FMEA identify evaluate and estimate risk of possible failures at each stage of a process RPN risk priority number is calculated for each failure mode an index used to measure the rank importance of items listed in the FMEA chart Design of experiments DOE a statistical methodology used for determining the cause and effect relationship between process variables X and the output variable Y also known as multivariate testing Statistical Quality Control Assignable Variation variation that is caused by factors that can be clearly identified and possibly even managed Common variation variation that is inherent in the process itself random variation Capability Index shows how well the parts being produced fit into the range specified by the design specification limits Cpk min Average LSL 3SD USL Average 3SD Process Control Procedures Monitoring quality while the product or service is being produced Statistical Process Control SPC involves testing a random sample of output from a process to determine whether the process is producing items within a preselected range Attributes quality characteristics that are classified as either conforming or not conforming to Four main issues to address in creating a control chart specification 1 Size of Samples 2 Number of Samples 3 Frequency of Samples 4 Control Limits Acceptance sampling is performed on goods that already exist to determine what percentage of products conform to specifications Total 100 percent inspection is justified when the cost of a loss incurred by not inspecting is greater than the cost of inspection Lean Supply Chains Lean