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Quality Tools

Quality Tools. Key Contributors to Quality Management. Key Contributors to Quality Management. Total Quality Management. A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. Process Improvement.

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Quality Tools

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  1. Quality Tools

  2. Key Contributors to Quality Management

  3. Key Contributors to Quality Management

  4. Total Quality Management A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction

  5. Process Improvement • A systematic approach to improving a process • Overview of the approach • process mapping • analyze the process • redesign the process

  6. Plan Act Do Study The PDSA Cycle

  7. Select a process Document Study/document Evaluate Seek ways to Improve it Implement the Improved process Design an Improved process The Process Improvement Cycle

  8. Process Improvement Tools • There are a number of tools that can be used for problem solving and process improvement • Tools aid in data collection and interpretation, and provide the basis for decision making

  9. Seven Basic Quality Tools • Check sheets • Flowcharts • Scatter diagrams • Histograms • Pareto analysis • Control charts • Cause-and-effect diagrams

  10. Check Sheet Monday • Billing Errors • Wrong Account • Wrong Amount • A/R Errors • Wrong Account • Wrong Amount

  11. Flowchart Process Process Process? OK? OK Process Identify value added steps, rework loops, flow loops, etc.

  12. The Operations FunctionInputsTransformed into Outputs Inputs Labor Personnel Capital Machines Money Resources Raw Material Components Energy Facilities Management Arts & Sciences Managerial Talent Technical Expertise

  13. The Operations FunctionInputs Transformed into Outputs Inputs Labor Personnel Capital Machines Money Resources Raw Material Components Energy Facilities Management Arts & Sciences Managerial Talent Technical Expertise Process The firm transforms inputs to outputs (operations, finance, marketing)

  14. The Operations FunctionInputs Transformed into Outputs Inputs Labor Personnel Capital Machines Money Resources Raw Material Components Energy Facilities Management Arts & Sciences Managerial Talent Technical Expertise Process The firm transforms inputs to outputs (operations, finance, marketing) Outputs

  15. The Operations FunctionInputs Transformed into Outputs Inputs Labor Personnel Capital Machines Money Resources Raw Material Components Energy Facilities Management Arts & Sciences Managerial Talent Technical Expertise Process The firm transforms inputs to outputs (operations, finance, marketing) Outputs Clients, customers

  16. Example Processes • Insurance • Banks • Retail • Golf Course • School Discuss operations for two companies / organizations that you are familiar with. Use one or more of the seven quality tools for one of the companies.

  17. Scatter Diagram Variable B Variable A

  18. Histogram frequency A B C D E

  19. Number of defects Offcenter Smeared print Missing label Other Loose Pareto Analysis 80% of the problems may be attributed to 20% of the causes.

  20. 1020 UCL 1010 1000 990 LCL 980 970 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Control Chart

  21. UCL UCL UCL LCL LCL Additional improvements made to the process LCL Process centered and stable Process not centered and not stable Tracking Improvements

  22. Methods Materials Cause Cause Cause Cause Effect Cause Cause Environment Cause Cause Cause Cause Cause Cause People Equipment Cause-and-Effect Diagram

  23. What is Six Sigma? • Appropriate Metric – 3.4 million defects per million opportunities • Robust Methodology – Tools plus implementation methods to make success more likely • Philosophy – Cost-focused, data-driven

  24. What is Six Sigma?Key Concepts • Critical to Quality: What attributes are most important to the customer? (CTQ, CTC, CTD) • Defect: Failing to deliver what the customer wants / expects (DPMO) • Variation: The level of unpredictability the customer experiences

  25. What is Six Sigma?Key Concepts • Process Capability: What your process can deliver – consistently • Stable Operations:Stable ops are predictable • Design for Six Sigma:Designing to meet customer needs and process capability

  26. DMADV - DMAIC Existing Processes New Processes

  27. Define Phase - Tools • Project Charter • Stakeholder Analysis • Affinity Diagram • SIPOC • Voice of the Customer • CT Tree • Kano Model • SWOT Analysis • Cause-and-Effect Diagrams • Supplier Segmentation • Project Management

  28. Charter • Problem statement • Business case • Goals, milestones, success criteria, & deliverables • Project scope / boundaries • Roles & responsibilities • Stakeholder support / approval needed

  29. Business Case

  30. Define Phase - Tools • Project Charter • Stakeholder Analysis • Affinity Diagram • SIPOC • Voice of the Customer • CT Tree • Kano Model • SWOT Analysis • Cause-and-Effect Diagrams • Supplier Segmentation • Project Management

  31. Define Outputs • Once completed, the Define Phase should answer the following questions: 1) Who is the customer? 2) What matters? 3) What is the scope? 4) What defect am I trying to reduce? 5) What are the improvement targets?

  32. The Measure Phase • Purpose • To collect current performance of the process identified in the Define phase • This data is used to determine sources of variation and serve as a benchmark to validate improvements

  33. Measure - Key Concepts • Measurement • Variation • Exists naturally in any process and is the reason Six Sigma projects are undertaken • Data • Data Collection Plan • Measurement System Analysis • Ensures measurement techniques are reproducible and repeatable

  34. Data Collection Plan • What data will be collected? • Why is it needed? • Who is responsible? • How will it be collected? • When will it be collected? • Where will it be collected?

  35. Measurement System Analysis • After Data Collection Plan is complete, it needs to be verified before actual data is collected • MSA is performed on a regular basis • MSA ends when a high level of confidence is reached that the data collected accurately depicts the variation in the process

  36. Analyze Phase • The analyze phase allows the Project Team to target improvement opportunities by taking a closer look at the data.

  37. Analyze Phase • Capability Analysis - establishing current performance level • Graphical Analysis - a visual indication of performance using graphs • Root Cause Analysis – developing a hypothesis about the causes of variation • Root Cause Verification – verifying that the planned action will generate the desired improvement

  38. Elements of Improve Phase • Generate Improvement Alternatives • Create a “Should Be” Process Map • Conduct FMEA • Perform Cost/Benefit Analysis • Pilot • Validate Improvement

  39. Control PhaseWhy is it important? • The Control Phase begins as the project team tries to eliminate errors by “Mistake Proofing” their improvement alternative. • Mistake Proofing attempts to eliminate the opportunities for error.

  40. Control PhaseWhy is it important? • Mistake Proofing tries to make it impossible for an operation to be performed incorrectly, and/or correct errors before they are passed to the next worker, where they might become a defect.

  41. Control Phase #2 • During the Control Phase the Project team will: 1) Develop a plan to make sure the measurement system will remain relevant over the long term. 2) Establish Control Charts the process owner will use to manage the process. 3) Create a Reaction Plan to address situations that might cause the process to move out of control.

  42. Control Phase #3 • The Control Phase ends when: 1) Standard Operating Procedures have been updated. 2) Process Operators, the people who do the job, have been trained for the new process. • Once completed, the Control Phase should sustain the gains the project made while implementing ongoing process controls.

  43. Control Phase #4 • When is a project complete? 1) When other Black Belts can see the ongoing controls work 2) When the customer sees the results 3) When the business sees the money.

  44. Stakeholder Analysis

  45. SIPOC Example

  46. SWOT Analysis

  47. Quality Awards Baldrige Award

  48. Malcolm Baldrige National Quality Award (1 of 2) • Began in 1987 • Recognizes achievements of excellent organizations and provide examples to others • may give two awards in each category • manufacturing • small business • service • health care • education

  49. Malcolm Baldrige National Quality Award (2 of 2) • Establishes criteria for evaluating quality efforts • Provides guidance for other American companies

  50. 2007 MBNQA Categories and Scoring System 1.0 Leadership 120 2.0 Strategic Planning 85 3.0 Customer and Market Focus 85 4.0 Measurement, Analysis, & Knowledge Management 90 5.0 Workforce Focus 85 6.0 Process Management 85 7.0 Results 450

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