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This is an overview of the basic concepts to quality management and process improvement – knowing them will allow you to achieve the ability… • To be conversant • To understand the tools and how to apply them • To understand the fundamental concepts, enablers and issues AND to support the Basic Concepts Exam which occurs on Week 4. Walter A. Shewhart W. Edwards Deming Joseph M. Juran Armand V. Feigenbaum Philip B. Crosby Quality in Japan/Their Contribution Kaoru Ishikawa Japan's Contributions Definition of TQ or TQM, Employee Empowerment Teams Data Measurement, Evaluation & Communication Process, Process Improvement Process Mapping and Process Capability Quality Focus A Kaizen Event consists of a team of those most impacted by a process that they want to improve. The team starts by mapping the process and then with analysis and brainstorming to develop the improvements. Kaizen events are organized regularly to keep the focus on continuous improvement. Effects of Poor Quality Financial Issues: It costs money! Employee Issues Lost customers Wasted effort and wasted materials… It wastes effort It lowers morale It lowers productivity Customer Issues Loses them Costs them money Loses referrals they may provide Causes them to produce negative third party feedback… Cost of Prevention Cost of Appraising/Checking for quality Cost of failures/errors… Selling top management • Plans for quality improvement • Installation of standards, methods, and procedures • Installation of tools • Quality training and education • Quality awareness and motivation • Preventive maintenance • Other quality improvement projects • Report of quality status • Quality assurance consultation • Quality assessments • Evaluation of vendors and subcontractors • Walkthroughs and inspections • Preparation for reviews • Quality reviews • Preparation for product testing • Product testing • Quality audits • Cost of recalling faulty products • Repair and rework • Staff turnover caused by quality problems • Lost production due to quality problems • Cost of projects canceled because of quality problems • Assets lost because of quality problems • Benefits lost because of quality problems • Legal liability from poor quality Conformance to Specifications or Requirements - Quality means “meets requirements.” or meets specifications ISO International Standard 8402: Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. (ISO 9000): A set of Audited Quality Standards The consumer is the most important part of the production line so…. Quality applies to all physical products, all information products, and all service and products. Because it applies to all products, effective quality improvement must be organization-wide. Quality is an investment, a profitable investment—you invest today and reap the benefits in the future. Quality must be part of the organization's basic belief system. This means changing the culture to make quality a principle in all operations. Each individual is responsible for the quality of his or her work products. To achieve quality, an organization must convince its people to make a commitment to quality. Doing things right is a matter of having proper systems, procedures, instructions, raw materials, equipment, and training. But it is also a matter of attitude. Work in an organization is accomplished through processes. Therefore, the way to improve quality is to improve all of the organization's processes - They should be documented to stabilize them, measured to learn their behavior, and improved to make them more effective. To accomplish these ends, a structure for managing change must be in place. Know This 1. Identify what you think the problem is Define Do Plan 2. Analysis 3. Problem Description/Definition Deming Cycle Check Act ID Root Cause/ Plan 4. Identify Potential Root Causes of Problems 5. Development of alternative Solutions/Actions ACT 6. Decision and Implementation Plan 7. Measurement and Follow up plan Verify a logically related collection of actions or operations that work together to produce a specific result They transform inputs into outputs, or products. The actions or operations might be performed by people, by machines/computers, or both A process requires certain inputs, which are then transformed by the process into outputs. • Every process must be constructed; the task of constructing a process is an example of a project.. A system facilitates a process. an accounting system helps facilitate the Accounts Receivable process. KEY ISSUE: A process has to do with what is accomplished A system with how it is accomplished. Improvement / Continuous Improvement Project-by-project improvement is a basic strategy for improving quality. Innovate Re-engineer Delay or Wait Process Step Direction of Flow… Predefined Process Black box, several steps in one Remove hamburger from freezer, unwrap, thaw, form into patties… becomes: Prepare Beef for grill Start(name of process) End, Continuation… Measurement Point Consider the major factors that are responsible for potentially causing the problem or which may be responsible for meeting the goal… Generally, this means selecting several of the following: People Machines Methods/Processes Materials Environment Information Label your selection as primary ‘limbs’ along the main arrow with the most important toward the right or front. Product Lead Times are 2 weeks too long Ideal group size: 4 to 7 people At least 10 minutes (but typically not longer than 25 minutes) Quantity focus, get as many ideas down Start off problem statement with clear visibility with In what ways can we… Used for coming up with creative and possible breakthrough ideas and to get all involved. No rationalizing, defending, criticizing- just ideas. Quality cannot be assessed, and quality cannot be improved without measurements. You need the relevant data. YOU need to properly collect it, classify it, analyze it and use & present it. Key ISSUES: Whatever is important is measured, but it is also true that whatever is measured becomes important. A product or service is produced by a process, and the most effective way to achieve a quality result is to improve the process. A requirement for a product or service have a specification that not only describes the attribute or function, but this requirement, to be effective must also state the standard against which the it will be judged and the process to measure it. Data can be quantitative (expressed in numbers) or qualitative (verbal, or nonnumeric). Why collect data? Manage a Process Understanding a process: (errors, times, process map, key is data…) Controlling a process: Feedback data to adjust an input, feedback data from quality control activities… Improving a process: to improve productivity, profitability, quality, data is key Special (Assignable) vs. Common (Random) Causes Deming’s 2 “famous” experiments/demos 50 Marbles Funnel Every process (everything actually) exhibits variability, which may be due to either SPECIAL causes or COMMON (random) causes. Tampering with a stable (special causes eliminated and controlled) system will increase process variation. Tampering with a single result or a snapshot of a process where you don’t know it’s capability or if under control usually makes things worse. What do we mean when we say that we have to control our processes and how might we go about it? Map & Line up the Value Stream of Activities Flow Pull Define the Value Added Perfection START Six Sigma companies focus on total customer satisfaction and to do this view failure rates in terms of Defects Per Million Opportunities. Their Six-Sigma goal is a 3.4 DPMO level! But Six Sigma, besides it statistical meaning, is a comprehensive mindset and set of problem-solving guidelines designed to get entire organizations focused on and dedicated to producing nearly perfect products and services to achieve super high customer satisfaction and profit levels. It focuses on understanding processes and on reducing variation! It is being used by thousands of organizations and has resulted in payoff in the billions of $$. Focus on customer satisfaction by reducing variation Improve performance project by project permanently always focusing on the next best way to improve. Prioritize based on impact to the business Projects focused on defects or errors based on hat matters most to the customer Manage an organization as a system of connected processes Use the Scientific Approach (Deming Cycle): PDCA/CAPDo and the DMAIC process improvement steps. Make decisions and problem-solve based on fact- on data using the full range of statistical tools Build upon knowledge, experience and dedication of people throughout the organization. Master Black, Black and Green belts: Different levels of experience, knowledge and certified execution experience with Six Sigma principles. DMAIIC: The standard steps for improving an existing process: Define it (Map it) Measure performance and outcomes Analyze Improve Implement Control DPMO: Defects Per Million Opportunities DMAIIC Define: Check to find a process in need of an improvement so you qualify project, determine approach, define outcomes, select team and launch. Measure: Check current performance by defining the current process, addressing low hanging fruit, confirming current customer requirements, gathering initial data, establish cost/benefit and developing project charter Analyze: Act to analyze gaps by developing cause and effect model, gathering causal data and determining and validating root causes Improve: Act to develop changes to the plan by identifying breakthrough opportunities, selecting practical approaches, designing future states, establishing performance targets… Implement: Do the changes and check the results by gaining approval and buy-in to implement, training, executing, measure results, develop control methods and managing change. Control: Act to incorporate successful changes to the plan by reporting on results, applying PDCA, identifying replication opportunities and moving forward… …Then start all over again with the next opportunity. Yield: Basic measurement of process quality that measures proportion of first quality product or service produced Measures of central tendency attempt to describe the central point about which the data is arranged. This is called the MEAN or AVERAGE. The second class of descriptive statistics consists of measures of variability or spread. These measures describe the extent to which the data is concentrated about its central point. The larger the value of such a measure, the more spread or variability in the data. Two common measures of variability are: The variance, which is based on the squared difference between the data elements and the average. The standard deviation, which is the square root of the variance. Mathematically, the variance is the sum of the square of the differences between each observation and the Mean. The standard deviation is the Square Root of the Variation and is in the same units as the mean (and so more practically used)., It turns out that for NORMAL distributions, roughly twothirds of the observations will lie within one standard deviation from the average. Roughly 95 percent of the observations will lie within two standard deviations from the average, and almost all observations will lie within three standard deviations from the average. A normal random variable is one whose values are distributed according to a bell-shaped curve, the “normal” distribution (most common and assumed in Six Sigma) The normal distribution depends on only two parameters, the mean and the standard deviation of the distribution. The maximum height of the curve is attained at the point that is the mean of the distribution, and the curve is symmetric about this point Because of the close relationship between the spread of the curve and its standard deviation, it is possible to make the following statements: 68 percent of the population lies within one standard deviation of the mean. 95 percent of the population lies within two standard deviations of the mean. 99.7 percent of the population lies within three standard deviations of the mean. Random Sampling (The process of selecting members from the population). ISSUES: Sample size, The sample average is used as an estimate of the population mean and… The sample standard deviation is used as an estimate of the population standard deviation, Issue is to be able to distinguish between special/assignable causes and random or common causes of VARIATION Statistical Quality Control- branch of applied statistics with tools to help control quality of products and improve processes for producing products and service Control charts: Graphical tool that is visual and easy to understand, explain… Provides an easy to follow process/discipline to help achieve quality Provides evidence on which action can be taken To apply, you need to know what is being controlled, standards to be used, measurements to be taken, how to take them and what will be done with them. Several types but most common is the x-bar chart or mean chart where each sample of 4 or 5 is charted at regular intervals. Using statistical guidelines, one draws an upper control limit and a lower control limit on the chart. For a process under control, almost all observed averages fall between the lower and upper control limits. This is a stable process- no assignable causes… If an average falls outside the limits of “normal” variability, this typically means that there was a change in the process and that a special cause is responsible …. Other Control Charts The p-chart is a time-sequence plot of consecutive proportions of defectives. Typically, a product must meet certain specifications that are established by the customer. Product specifications usually are given in terms of a target value ( Tg ), a lower specification limit ( LSL ), and an upper specification limit ( USL ). They are called the “specs” or the “tolerances” of the product. If the products meet the specifications, then we say that we are dealing with a process that is capable of producing according to the given specifications. A simple way to check process capability is to construct a dot diagram of the measurements. The target value and the lower and upper specification limits can be added to this graph, and the proportion of values that are outside these limits can be calculated. Of course, no (or very few) values should be outside these limits. When someone experiences a bad customer service “event”, how many people do they tell on average? ____ In turn, how many people do these people tell? _________ What percent of people, when they are dissatisfied with a service or product, complain to the organization? ______ What’s the concept of a “coffee stain” in quality?
