Total Quality Management

1. Total Quality Management

2. What is Quality?

3. Old Quality vs. New Quality • Difference between old quality (Rolls Royce, personal banker, ...) and new quality is that old was the work of craftsmen and the new is the work of a system (Toyota, Big Mac, Boeing Aircraft, Disney World, ...). The old is expensive, made for the few, using skilled hands, is beautiful and functionally based. The new reduces cost, made for the many by intelligent minds and should drive the economy and make business more competitive. Toyota Commercial

4. Why care about quality • increase productivity • expand market share • raise customer loyalty • enhance competitiveness of the firm • at a minimum, serve as a price of entry

5. Achieving high quality Is Difficult • Only 36% of the firms felt that Total Quality programs boosted their ability to compete. Arthur D. Little Survey of 500 Firms • Over 50% of firms rated their efforts D or F relative to increasing customer satisfaction, increasing market share, or reducing their cost. Rath and Strong • Main Problem: Achieving high quality is as easy to understand as losing weight and quitting smoking and is as difficult to do. Steve Schwartz, IBM MDQ VP

6. Why Quality is so difficult to do? • Quality can only be defined in terms of an agent (a judge of quality). • One has to translate future needs of the user into measurable characteristics

7. Service Industries are particularly Difficult Reasons: • High volume of transaction • Immediate consumption • Difficult to measure and control • More labor intensive • High degree of customization required • Image is a quality characteristic • Behavior is a quality characteristic

8. Quality Gurus • Deming: The father of the quality movement. Scientific approach to quality • Juran: Quality by design • Crosby: Quality is free

9. Deming’s “Seven Deadly Diseases” • Lack of Constancy of purpose • Emphasis on short term profits • Evaluation of performance, merit rating or annual review of performance • Mobility of management • Running the company on visible figures alone • Excessive medical costs • Excessive costs of warranty fueled by lawyers that work on contingency fees Interview with Deming

10. What is TQM?? The essence of Total Quality Management is a common sense dedication to understanding what the customer wants and then using people and science to set up systems to deliver products and services that delight the customer. Greg Hughes President AT&T Transmission Systems

11. Basic Concepts of TQM • Customer Focus • Continuous Process Improvement - Kaizen • Employee Empowerment – Everyone is responsible for quality • Quality is free - focus on defect prevention rather than defect detection for it is always cheaper to do it right the first time • Benchmarking – Legally stealing other people’s ideas • Customer-Supplier Partnerships • Management by fact..by numbers..by data – Balanced scoreboard (financial, customer, process, learning)

12. Quality in U.S. vs. the Japanese • U.S. conforming to the requirements at the least cost • Japanese joint responsibility to make the end customer happy

13. Requirement Products or Test Results OEM Supplier OEM “ I met the requirements” Combative non collaborative relationship

14. “Creating the Best Vehicle/Systems with All the People All the Suppliers All the Time” YOU meet the requirements! Let’s create the best Vehicle and Systems together. SOR Partnership - Collaborative relationship

15. Strength of USA vs. Japan Concept Good Innovative Ideas Good Implementation Strength of Japanese Mfg Strength of USA Mfg KAIZEN Time Good Ideas, Good Implementation are the goals of everyone in the automotive industry

16. Seven Basic Quality Tools To improve Process Quality • Scatter Diagrams: Plot data on a chart – no attempt is made to classify the data or massage it • Pareto Charts: Organize data on a histogram based on frequency from most prevalent to least. Help identify major causes or occurrences (80:20 rule) • Check Sheets: Easy way to count frequency of occurrence by front line workers • Histograms: Categorize data is cells and plot (see if any patterns emerge) • Run Charts: Plot data as a function of time • Cause and effects Charts:fishbone diagrams are used to identify the root causes of a problem • Control Charts: are statistical tools used to determine if the variation in results is caused by common or special events

17. Failures in O-rings

18. Graph Fit of O-ring failures

19. Full O-ring data including no failures

20. RUN CHART TRANSACTIONTIME Time of Day

21. Data Collected From Check Sheet • Time Range (in secs) 44-50 51-57 58-64 65-71 72-78 79-85 86-92 93-99 100-106 107-113 • Frequency 1 4 17 12 14 19 18 11 3 1

22. A Histogram

23. Be careful of Cell Size

24. Pareto Chart (80-20 Rule) Further info on Pareto Charts

25. Pareto Diagrams • Purpose: • helps organize data to show major factors • displays data in the order of importance • organize based on fact rather than perception • To construct: • use data from a check sheet or similar instrument • analyze data to determine frequency • identify the vital few • calculate percentages • add percentages to find vital few (80%) • draw cumulative curve • Typical Application: • display relative importance of different factors • choose starting point for problem solving • monitor success • identify basic cause of a problem • use a selling tool to gain support

26. Teller Processes Sequence of activities Fatigue Too many steps Training Control functions Attitude Processing Delays Too much downtime Not user friendly Slow response time Fishbone Diagram aka Cause & Effect Diagram Computers

27. Cause and Effect Diagram“Fishbone Diagram” • Purpose: • visual display of information to identify root causes rather than symptoms. • To construct: • determine the issue and write problem statement in a box to the right of diagram • find the main causes and write them on branches flowing to the main branch (method, equipment, people, material, environment, customer expectations, money, management, govt. regulations) • identify all possible causes and write them on the diagram as sub-causes in each category • Typical Application: • determine the real cause of the problem • check the potential effects of a solution Fishbone Diagrams Explained 5 Why’s problem solving technique

28. Mizenboushi and GD3 Concepts Robust Design - keep Good Designs - minimize change Good Design Find Problems Prevent Problems GD3 Good Dissection Good Discussion DRBFM DRBTR Address any potential issues up stream at Design Phase

29. Quality Focus At the Design Stage Quality from the start – • Directs attention to “Change” • Change = potential to have problems • Directs attention to “Interfaces” • Most defects occur at the “interface” Focus on Change Points & Interface Points

30. No change – No Problem • Examples: • Design change • Packaging environment • change • Usage environment • change • New manufacturing • process • New supplier Change Points have the highest potential to introduce defects

31. DRBFM – Example • Tire Pressure Monitoring System – • Changing the sensor from Aluminum Valve to Rubber Valve. • Purely for cost reduction purposes... System Performance is the same. Simple change – What could go wrong?

32. Interfaces Interfaces – (Interfaces where issues can brew and surface later) • Customer to Supplier • Department to Department • System Interfaces • The Crash sensor failure on Honda Minivans Interface Points have the highest potential to introduce defects

33. Design Review By Failure Modes (DRBFM)Basic Concepts • Before and After – Description of the Change Point • Describe the Potential failure modes • Describe the Design Countermeasures • Target Testing of the change points and Countermeasures Only Design techniques to uncover defects at the design stage – Up stream

34. DRBFM DRBTR Design Verify/Validate Design Changes Test Result (Change in product due to test: Cracks,Leaks, etc.) Focus on Implementation 34

35. Where do failures occur • Design Phase (Suppliers are Up Stream) • Production • In the field • Where is it cheapest to detect failures? • Example: Replacing a four crash sensors by a single one ..

36. When Failures Occur! • Why did the failure happen? • Symptoms vs. Root Causes • Root Causes (Investigate the whole chain): • Suppliers/Component failure • Design • Manufacturing • Change management • Why were not able to detect it? • Rootcause Analysis: • Why Occurred? • Why Not Detected?

37. Failure Detection 5Ws-2Hs • Who • Where • When • What • Why • How was the problem found? • How can we isolate it? Turn On / Turn Off Rootcause Analysis Methodology

38. Failure Isolation – KT Analysis: Is - Is Not • Why is this design and not the other similar design • Why this plant and not another plant • Why this operator and not the other operator • Why in winter and not in the summer • Why this computer and not the other computer • Why in this model and not in other models Rootcause Analysis Methodology

39. Finding the root causes of a problem is not Fault Finding/Criticism. • To find problems is not fault finding/criticism. • To find problems is a creative act, same as innovation. • We should never stop at only finding problems, but also develop a systemic corrective action plan... FIX THE PROCESS that created the problem & identify detection algorithms • We never forget that every job should relate directly to improving a product. Other jobs are nothing but waste, e.g., only to check, to inspect, etc. • Everyone should readily accept help from review participants.

40. Summary - Concepts • Quality all the time by everyone from an end user prospective • Address issues up stream. Address product and process defects at the design stage • Fixing problems usually involves fixing the systemic process issues that caused the problem – Reoccurrence Prevention • Focus on Implementation • Focus on Change Points and Interfaces