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Quality Management

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Quality Management

  2. 2. Definition of quality  There is no definition for quality, definition can only be perceived.  But could be these options: 1. Conformance to specifications. 2. Fitness for use. 3. Value for Price paid.
  3. 3. Questionnaires on Definitions of Quality:  1. Performance:  Will the product/service do the intended job?  2. Reliability:  How often does the product/service fail?  3. Durability:  How long does the product/service last?  4. Serviceability:  How easy to repair the product / to solve the problems in service?
  4. 4. Related definitions  Quality assurance:  The maintenance of a desired level of quality in a service or product, especially by means of attention to every stage of the process of delivery or production.  Quality control:  A system of maintaining standards in manufactured products by testing a sample of the output against the specification.  Quality management:  The act of overseeing all activities and tasks needed to maintain a desired level of excellence.
  5. 5. Quality need  First used for industry.  For improvements, solving customers problems, needs, satisfaction.  With proper decision-making and problem-solving.  To keep the industry success and alive for several years.  Now it is used in education as well.
  6. 6. Quality evolutions
  7. 7. Quality gurus Walter A. Shewhart - Contributed to understanding of process variability. - Developed concept of statistical control charts. W.Edwards Deming - Stressed management’s responsibility for quality. - Developed “14 Points” to guide companies in quality improvement. Joseph M. Juran - Defined quality as “fitness for use.” - Developed concept of cost of quality. Armand V.Feigenbaum - Introduced concept of total quality control. Philip B. Crosby - Coined phrase “quality is free.” - Introduced concept of zero defects. Kaoru Ishikawa - Developed cause -and-effect diagrams. - Identified concept of “internal customer.” Genichi Taguchi - Focused on product design quality. - Developed Taguchi loss function.
  8. 8. DIMENSIONS OF MANUFACTURING AND SERVICES QUALITY Dimensions of Quality for Manufacturing versus Service Organizations: Manufacturing Organizations Service Organizations Conformance to specifications Tangible factors Performance Consistency Reliability Responsiveness to customer needs Features Courtesy/friendliness Durability Timeliness/promptness
  9. 9. Quality planing  1. Set up a long-term goal or mission.  2. Define a vision statement, i.e. value system of the organization guiding everyone in the organization.  3. Break up the mission statement into annual short-term goals or objectives which should be ‘SMART’, i.e. Specific, Measurable, Attainable, Realistic and Time bound.  4. Identify customers who will help the organization to achieve the goals.  5. Discover their needs.  6. Develop product features responding to customer needs.  7. Establish product goals.  8. Develop systems and processes to produce these product features.  9. Prove process capability and hand over to production, i.e. develop the plan at operating level.
  10. 10. QUALITY COSTS AND ANALYSIS TECHNIQUES OF QUALITY COSTS Costs of Quality Prevention Costs. Costs of preparing and implementing a quality plan. Appraisal costs. Costs of testing, evaluating, and inspecting quality. Internal failure costs. Costs of scrap, rework, and material losses. External failure costs. Costs of failure at customer site, including returns, repairs, and recalls.
  11. 11. TECHNIQUES OF QUALITY COSTS DETERMINATION analyses of the tendency and the Pareto analyses Pareto diagram Left side few vital Right side many useful for quality costs guaranteed by the operator determine the opportunity to improve the quality.
  13. 13. 3 levels of quality 1. Evaluate and summarize overall quality management at the organization level 2. Evaluate and summarize quality management at the process level 3. Evaluate and describe quality management at the performer level
  14. 14. Quality Performance Communication Plan 1. Discuss and include types of reports that will be part of the overall communications plan 2. Describe who and how often communications will occur for quality assurance activities 3. Identify final closure process on resolved quality assurance issues.
  15. 15. Definition of advantage of competitive quality A condition or circumstance that puts a company in a favorable or superior business position.
  16. 16. Resource-based vs. positional view of advantage Advantage resource-based view The firm as its primary source of advantage ore competencies, distinctive competencies, dynamic capabilities, and organization evolution. positional view. that position within an industry is the source of advantage
  17. 17. Competitive advantage  Advantage is not nullified through competing firms duplicating the benefits of that competitive advantage.  To have the potential of sustained competitive advantage, a firm resource must have four attributes: 1. It must be valuable, in the sense that it exploit opportunities 2. neutralizes threats in a firm's environment. 3. It must be rare among a firm's current and potential competition. 4. It must be imperfectly imitable. This can be due to three reasons: 1) The ability of a firm to obtain a resource is dependent upon unique historical conditions. 2) 2) The link between the resources possessed by a firm and a firm's sustained competitive Advantage is causally ambiguous. 3) 3) The resource generating a firm's advantage is socially complex, such as cultural factors
  18. 18. Demand-based perspective of competitive advantage the effects of decreasing marginal utility and consumer heterogeneity across market segments affect the sustainability of competitive advantage hrough shifts in consumer willingness to pay
  19. 19. The Principle of Competitive Advantage inventing an offering a real scarcity in the world charging a price inventing a way of making it available cheap enough to leave a high margin Succes
  20. 20. Sources of Competitive AdvantageSpecialization With its division of labour, produces economies of scale. Specialization can overrun its usefulness Capabilities Capabilities, intrinsic capabilities, or distinctive capabilities include secrets of value, established business networks, brands, general management skills, and engineering competency, innovation
  21. 21. Indicator of Competitive Advantage Profitability increases Cost of capital lowers
  22. 22. Elements of Competitive Advantage, Kay (2004) Uniqueness •unique opportunities and solutions is about imagination, insight, foresight, and the courage to pursue it Strategic Focus: •eveloping a longer view of competitive advantage with a combination of purpose, competency, and value proposition. Strategic Intent/Vision/BHAGs •Strategic intent challenges and guides the organization to achieve the unachievable Innovation •is inventiveness put into profitable practice. Continual Innovation: •Making innovation as an on-going process on all fronts. Democratic Principles •Broad and diverse participation improves innovation Strategic Management as a self-improving learning process: •a learning and self-improvement process for the organization Dynamic Capabilities •the capability to produce and utilize new capabilities on a continuous basis
  23. 23. competitive vs. comparative advantage competitive comparative
  24. 24. Framework for competitive advantage 1. the pool of inputs, 2. skills and knowledge they can draw upon, 3. the goals that condition investment, 4. and the pressures on the firm to act
  25. 25. orces needed to keep progressing Factor conditions: general, specialized, generic, local, global, natural resources, labor Firm strategy, structure, and rivalry: intensity of competition, susceptibility to substitutes, actual rivalry, potential rivalry. Demand conditions: customer demands, sophistication, fickleness Related and supporting industries: suppliers, customers, synergy, dependency
  26. 26. Reference collected from Porter (1991)  Success requires the choices of:  •A relatively attractive position given industry structure  •The firm's circumstances  •The positions of competitors  •Bringing all the firm's activities into consistency with the chosen position.
  27. 27. Drivers of competitive advantage in an activity  •Scale  •Cumulative learning in the activity  •Linkages between the activities and others  •The ability to share the activity with other business units  •The pattern of capital utilization in the activity over the relevant cycle  •The activity's location  •The timing of investment choices in the activity  •The extent of vertical integration in performing the activity  •Institutional factors affecting how an activity is performed such as government regulations  •The firm's policy choices about how to configure the activity independent of other drivers.  •Solving the longitudinal problem of strategy, getting to an operational understanding of competitive advantage
  28. 28. QUALITY PHILOSOPHY Lesson 3
  29. 29. Deming philosophy  By adopting appropriate principles of management, organizations can increase quality and simultaneously reduce costs (by reducing waste, rework, staff attrition and litigation while increasing customer loyalty). The key is to practice continual improvement and think of manufacturing as a system, not as bits and pieces
  30. 30. JURAN PHILOSOPHY 1. Quality Planning, 2. Quality Control 3. and Quality Improvement.
  31. 31. Quality Planning  he quality planning phase is the activity of developing products and processes to meet customers’ needs. involves building an awareness of the need to improve, setting goals and planning for ways goals can be reached. This begins with management’s commitment to planned change. It also requires a highly trained and qualified staff. It deals with setting goals and establishing the means required to reach the goals. Below are the steps in the quality planning process:  Establish quality goals  Identify the customers: those who will be impacted by the efforts to meet the goals  Determine the customer’s needs  Develop processes that can produce the product to satisfy customers’ needs and meet quality goals under operating conditions.  Establish process controls, and transfer the resulting plans to the operating forces
  32. 32. Quality Control  This process deals with the execution of plans and it includes monitoring operations so as to detect differences between actual performance and goals. means to develop ways to test products and services for quality. Any deviation from the standard will require changes and improvements. It is outlined with three steps:  Evaluate actual quality performance  Compare actual performance to quality goals  Act on the difference
  33. 33. Quality Improvement  It is a continuous pursuit toward perfection. Management analyses processes and systems and reports back with praise and recognition when things are done right This is the process is for obtaining breakthrough in quality performance, and it consists of several steps:  Establish the infrastructure needed to secure annual quality improvement  Identify the specific needs for improvement- the improvement projects  Establish project teams with clear responsibility for bringing the project to a successful conclusion  Provide the resources, motivation, and training needed by the teams to- diagnose the cause, stimulate establishment of remedies, and establish controls to hold the gains.
  34. 34. THE CROSBY PHILOSOPHY  Doing It Right the First Time, was his answer to the quality crisis. He defined quality as full and perfect conformance to the customers' requirements. The essence of his philosophy is expressed in what he called the Absolutes of Quality Management and the Basic Elements of Improvement.
  35. 35. The Absolutes of Quality Management  Crosby defined Four Absolutes of Quality Management, which are  The First Absolute: The definition of quality is conformance to requirements  The Next Absolute: The system of quality is prevention  The Third Absolute: The performance standard is zero defects  The Final Absolute: The measurement of quality is the price of non- conformance
  36. 36. Zero Defects  Crosby's Zero Defects is a performance method and standard that states that people should commit themselves to closely monitoring details and avoid errors. By doing this, they move closer to the zero defects goal. According to Crosby, zero defects was not just a manufacturing principle, but was an all- pervading philosophy that ought to influence every decision that we make. Managerial notions of defects being unacceptable and everyone doing ‘things right the first time’ are reinforced.
  37. 37. ACCEPTANCE SAMPLING TECHNIQUES  Acceptance sampling is a form of inspection that is applied to lots or batches of items either before or after a process.  The lots represent incoming purchased items or final products awaiting shipment to warehouses or customers.  PURPOSE  The purpose of acceptance sampling is to decide whether a lot satisfies predetermined standards (specifications) for important characteristics of the item
  38. 38. Acceptance sampling  uses statistical sampling to determine whether to accept or reject a production lot of material. It has been a common quality control technique used in industry. It is usually done as products leaves the factory, or in some cases even within the factory
  39. 39. Single-Sampling Plans  A sampling plan in which a decision about the acceptance or rejection of a lot is based on a single sample that has been inspected is known as asingle sampling plan.  A single sampling plan requires the specification of two quantities which are known as parametersof the single sampling plan. These parameters are  n–size of the sample, and  c–acceptance number for the sample.
  40. 40. Double-Sampling Plans  Double and multiple sampling plans were invented to give a questionable lot another chance. For example, if in double sampling the results of the first sample are not conclusive with regard to accepting or rejecting, a second sample is taken.
  41. 41. Multiple sampling plan  Multiple sampling is an extension of double sampling. It involves inspection of 1 to successive samples as required to reach an ultimate decision. Mil-Std 105D suggests is a good number. Multiple sampling plans are usually presented in tabular form. Procedure for multiple sampling.
  42. 42. ISO 9000-2000 Lesson 4
  43. 43. Early history  Increase in international trade during the 1980s created a need for the development of universal standards of quality  In 1987 the International Organization for Standardization (ISO) published its first set of standards for quality management called ISO 9000  By receiving ISO 9000 certification, companies demonstrate that they have met the standards specified by the ISO. The standards are applicable to all types of companies and have gained global acceptance.
  44. 44. ISO 9000-2000  In December 2000 the first major changes to ISO 9000 were made, introducing the following three new standards
  45. 45. Acquiring ISO  To receive ISO certification, a company must provide extensive documentation of its quality processes.  Monitor quality, methods and frequency of worker training, job descriptions, inspection programs, and statistical Process-control tools used  The company is then audited. If the registrar finds that all is in order, certification is received.  The entire process can take 18 to 24 months and can cost anywhere from $10,000 to $30,000.  Companies have to be recertified by ISO every three years.
  47. 47. Concept  The standard of something as measured against other things of a similar kind; the degree of excellence of something.  1. Quality Management (QM)  2. Quality Assurance (QA)  3. Quality Control (QC)
  48. 48. Historical review  In the 1940s, during World War II, quality became more statistical in nature.  In the 1960s, with the help of so-called “quality gurus,” the concept took on a broader meaning. Quality began to be viewed as something that encompassed the entire organization.  The meaning of quality for businesses changed dramatically in the late 1970s. Before then quality was still viewed as something that needed to be inspected and corrected.  The 1970s and 1980s many U.S. industries lost market share to foreign competition.  ince the 1970s, competition based on quality has grown in importance and has generated tremendous interest, concern, and enthusiasm.
  49. 49. framework  Meeting and exceeding customer expectations by involving everyone in the organization through an integrated effort. Total quality management (TQM) is an integrated organizational effort designed to improve quality at every level.  PHILOSOPHY  Empower all employees to seek out quality problems and correct them.  TEAMS  The contributions of teams are considered vital to the success of the company.  Teams vary in their degree of structure and formality, and different types of teams solve different types of problems.
  50. 50. Quality circle team  One of the most common types of teams is the quality circle, a team of volunteer production employees and their supervisors whose purpose is to solve quality problems. The circle is usually composed of eight to ten members, and decisions are made through group consensus. The teams usually meet weekly during work hours in a place designated for this purpose. They follow a pre-set process for analyzing and solving quality problems
  51. 51. TQM vs CONVENTIONAL QUALITY MANAGEMENT Empower all employees to seek out quality problems and correct them. Employees were afraid to identify problems for fear that they would be reprimanded.
  52. 52. BENEFITS AND COSTS OF TQM Appraisal costs • Incurred in the process of uncovering defects. • Include the cost of quality inspections, product testing, and performing audits. • The costs of worker time spent measuring quality and the cost of equipment used for quality appraisal. Internal failure costs • Discovering poor product quality before the product reaches the customer site. • Rework, which is the cost of correcting the defective item. • The item is so defective that it cannot be corrected and must be thrown away.
  53. 53. BARRIERS TO TQM IMPLEMENTATION  Other decisions within operations management.  Dictates how all other areas of operations management will support this commitment.  Needs to incorporate customer-defined quality.  Job design is affected.  Supply chain management is affected.
  54. 54. CONTRIBUTIONS TO TQM Lesson 6
  55. 55. TQM gurus GURUS Deming by adopting appropriate principles of management, organizations can increase quality and simultaneously reduce costs (by reducing waste, rework, staff attrition and litigation while increasing customer loyalty). The key is to practice continual improvement and think of manufacturing as a system, not as bits and pieces Juran Joseph Juran is one of the leading thinkers on the route establishing a culture of quality throughout much of Japanese and then western business. He asserted that quality was nothing new or clever. Rather, it is elemental and elementary. Crosby Crosby, based on his idea of “doing it right the first time” (DIRFT), enumerated four fundamental principles for quality management. And on these four fundamental principles, he developed his fourteen steps to achieve a continuous improvement of quality. PDSA Step 1: Plan—Plan the test or observation, including a plan for collecting data Step 2: Do—Try out the test on a small scale Step 3: Study—Set aside time to analyze the data and study the results Step 4: Act—Refine the change, based on what was learned from the test 5s Is a standardized process that when properly implemented creates and maintains an organized, safe, clean and efficient workplace Kaizen Small, ongoing positive changes can reap major improvements. Based on cooperation and commitment.
  56. 56. CONTRIBUTIONS OF Other contributions Walter A. Shewhart Bringing a process into a state of statistical control would allow the distinction between assignable and chance cause variations. By keeping the process in control, it would be possible to predict future output and to economically manage processes. This was the birth of the modern scientific study of process control. Dr. Armand V. Feigenbaum is an effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organization so as to enable production and service at the most economical levels which allow full customer satisfaction.
  57. 57. Total quality elements  The elements of total quality to enable a totally customer focus (internal and external)  •Quality is the customer’s perception of what quality is, not what a company thinks it is.  •Quality and cost are the same no different.  •Quality is an individual and team commitment.  •Quality and innovation are interrelated and mutually beneficial.  •Managing Quality is managing the business.  •Quality is a principal.  •Quality is not a temporary or quick fix but a continuous process of improvement.  •Productivity gained by cost effective demonstrably beneficial Quality investment.  •Implement Quality by encompassing suppliers and customers in the system.
  58. 58. Japanese pioneers Pioneers Ishikawa The technique uses a diagram-based approach for thinking through all of the possible causes of a problem. This helps you to carry out a thorough analysis of the situation. Taguchi Design as "off-line quality control" because it is a method of ensuring good performance in the design stage of products or processes. Some experimental designs, however, such as when used in evolutionary operation, can be used on-line while the process is running. Taiichi Onho Seven wastes. Shingo Shingo Is a management exercise in which enterprise leaders use various methodologies to analyze their procedures to identify areas where they can improve accuracy, effectiveness and/or efficiency and then redesign those processes to realize the improvements.
  59. 59. Seven wastes  Ohno was also instrumental in developing the way organizations identify waste, with his "Seven Wastes" model which have become core in many academic approaches. These wastes are:  1. Delay, waiting for time spent in a queue with no value being added  2. Producing more than you need  3. Over processing or undertaking non-value added activity  4. Transportation  5. Unnecessary movement or motion  6. Inventory  7. Production of Defects
  60. 60. PRINCIPLES OF TQM–I Lesson 7
  61. 61. LEADERSHIP DEFINITIONS [Chemers MM 2002 Process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task. Alan Keith Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen. Ken "SKC" Ogbonnia Effective leadership is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational or societal goals. Ann Marie E. McSwain Leadership is about capacity: the capacity of leaders to listen and observe, to use their expertise as a starting point to encourage dialogue between all levels of decision-making, to establish processes and transparency in decision-making, to articulate their own values and visions clearly but not impose them. Leadership is about setting and not just reacting to agendas, identifying problems, and initiating change that makes for substantial improvement rather than managing change
  62. 62. CUSTOMER SATISFACTION Customers want to get their money's worth from a product or service. Users If the user of the product is different than the purchaser, then both the user and customer must be satisfied, although the person who pays gets priority. Company philosophy Providing them value for what they buy and the quality they expect will get more repeat business. Internal customers A worker provides a product or service to his or her supervisors. If the person has any influence on the wages the worker receives, that person can be thought of as an internal customer. Chain of customers Each improving a product and passing it along until it is finally sold to the external customer. Satisfy the supplier Which is the person or organization from whom you are purchasing goods or services External Providing them with clear instructions and requirements and
  63. 63. EMPLOYEE AND INVOLVEMENT Keep workers happy and productive Get better work The reason to do this is to get more productivity out of the workers, as well as to keep the good workers. Empower workers To allow them to make decisions on things that they can control. Continuous improvement You can never be satisfied with the method used, because there always can be improvements. Working smarter, not harder Some companies have tried to improve by making employees work harder. This may be counter-productive. Worker suggestions They can provide suggestions on how to improve a process and eliminate waste or unnecessary work. Quality methods such as just-in-time production, variability reduction, and poka-yoke that can improve processes and reduce waste
  64. 64. PRINCIPLES OF TQM 2 Lesson 8
  65. 65. Leadership DEFINITION Chemers MM 2002] Process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task. Alan Keith Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen. Ken "SKC" Ogbonnia Effective leadership is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational or societal goals. Ann Marie E. McSwain Leadership is about capacity: the capacity of leaders to listen and observe, to use their expertise as a starting point to encourage dialogue between all levels of decision-making, to establish processes and transparency in decision-making, to articulate their own values and visions clearly but not impose them. Leadership is about setting and not just reacting to agendas, identifying problems, and initiating change that makes for substantial improvement rather than managing change.
  66. 66. CONTINUOUS PROCESS IMPROVEMENT  The set of on-going systems engineering and management activities used to select, tailor, implement, and assess the processes used to achieve an organization goals.  STATE-OF-THE-ART  State-of-the-art refers to the highest level of general development, as of a device, technique, or scientific field achieved at a particular time. It also refers to such a level of development reached at any particular time as a result of the common methodologies employed at the time.
  67. 67. Supplier and Partnership  A strategic alliance is when two or more businesses join together for a set period of time.  Alliance means "cooperation between groups that produces better results that can be gained from a transaction.  ‘’A strategic alliance is a partnership between firms whereby resources, capabilities and core competences are combined to pursue mutual interests.“  Non-equity strategic alliances, equity strategic alliances, and joint ventures are the three basic types of strategic alliances.
  68. 68. MEASURES OF PERFORMANCE  For superior results you can't simply call each other partners. You must function as partners. Alliances go beyond doing things between firms that become transactions afterwards – like licensing, co-locating resources, starting to outsource, or trading a lower price for a longer term. Such tactics may be involved in alliances; alone they produce one-time gain. In an alliance, continued creativity leads to regular improvement, outperforming what any single change can do.
  69. 69. Before entering a strategical alliance  Define expected outcomes from the relationship for all the parties in the strategic alliance.  Define and document the elements provided by each party, and the benefits a successful alliance brings to each.  Identify the results that will cause the alliance to be most beneficial for your business and define the structure and operating issues that need to be addressed to achieve these results.  Protect your company's intellectual property rights through legal agreements and restrictions when transferring proprietary information.  Define the basics of how you will operate.
  71. 71. Total quality management history  A term coined by the Naval Air Systems Command to describe its Japanese-style management approach to quality improvement.  An umbrella methodology for continually improving the quality of all processes.
  72. 72. Kaizen Principles Good processes bring good results Go see for yourself to grasp the current situation Speak with data, manage by facts Take action to contain and correct root causes of problems Work as a team Kaizen is everybody’s business
  73. 73. Total productive maintenance  In industry, total productive maintenance is a system of maintaining and improving the integrity of production and quality systems through the machines, equipment, processes, and employees that add business value to an organization
  74. 74. Meaning  It aims to radically transform the organization through progressive changes in the attitudes, practices, structures, and systems.  Meanings by by the US Naval Air:  (1) commitment and direct involvement of highest-level executives in setting quality goals and policies, allocation of resources, and monitoring of results;  (2) realization that transforming an organization means fundamental changes in basic beliefs and practices and that this transformation is everyone's job;  (3) building quality into products and practices right from the beginning;  (4) understanding of the changing needs of the internal and external customers, and stakeholders, and satisfying them in a cost effective manner;  (5) instituting leadership in place of mere supervision so that every individual performs in the best possible manner to improve quality and productivity, thereby continually reducing total cost;  (6) eliminating barriers between people and departments so that they work as teams to achieve common objectives; and  (7) instituting flexible programs for training and education, and providing meaningful measures of performance that guide the self-improvement efforts of everyone involved
  75. 75. Statistical Quality Control basics  Statistical quality control refers to the use of statistical methods in the monitoring and maintaining of the quality of products and services. One method, referred to as acceptance sampling, can be used when a decision must be made to accept or reject a group of parts or items based on the quality found in a sample. A second method, referred to as statistical process control, uses graphical displays known as control charts to determine whether a process should be continued or should be adjusted to achieve the desired quality.
  76. 76. Quality tools and techniques Gap analysis A gap analysis is a technique used to assess the differences between the current and desired performance levels of a company's Homologation Homologation is the certification of a product to indicate that it meets regulatory standards
  77. 77. QUALITY IMPROVEMENT AND TOTAL EMPLOYEE INVOLVEMENT 1 • A system for direct participation of employees to organizational success, by letting them take responsibilities. • Enables everyone-deeply involved, using own brain power, in problem solving, learning, continuous improvement activities. • TQM principles & strategies pertaining to employee involvement are: • Motivation• Team work• Training & mentoring• Recognition & Rewards• Performance appraisal & feedback• Empowerment. • Behavioural pattern of employees in an organization Self- actualized 10 % Fence sitters 80% Difficult to improve 10 % . Total employee involvement
  78. 78. QUALITY IMPROVEMENT AND TOTAL EMPLOYEE INVOLVEMENT 2 • Motivation: Internal and external forces and influences that drive an individual to achieve certain-goals. • Theory ‘X’: (Sigmund Frend) This theory assumes that the employees cannot be trusted and they have to be supervised all the time. Theory X characterizes employees as follow-on Avoid work No ambition No initiative do not take responsibilities Needs security • Theory ‘Y’: (Douglas MC Gregor) According to this theory employees seek freedom to do difficult and challenging jobs, all by themselves. Theory Y characterizes employees as follow: o Want to learn Work is a natural activity Have self-discipline Develop themselves Have self confidence • Theory ‘Z’: (Abraham Maslow) Abraham Maslow believes that good qualities are inherent in people at least at birth, although later on they are gradually lost. He believes that five basic human needs that motivate the employees are: o Self- actualization need so esteem need-so Love needs Safety need-so Physiological needs Total employee involvement
  79. 79. QUALITY IMPROVEMENT AND TOTAL EMPLOYEE INVOLVEMENT 3 • 9. Team Work: • “Together every one achieves more”• Team work is not a natural human function• Management role in enabling team work• Use of Quality circles • 10. Training & Development: • Necessity for orientation training: Training enables employees in understanding Objectives of the organization His roles His responsibilities His authority Familiarity in understanding nature of job• Experienced recruits need more orientation• Training is not a onetime activity Total employee involvement
  80. 80. Jit manufacturing and lean manufacturing through waste elimination Lesson 10
  81. 81. What is JIT?  It works on a demand-pull basis, contrary to hitherto used techniques, which worked on a production-push basis.
  82. 82. SIX sigma tool  10 tools:  Tool #1 - The Critical to Quality (CTQ) Tree.- is used during the design phase of DMAIC to brainstorm and validate the needs and requirements of the customer.  Tool #2 - The Process Map: During the Define phase, the project team creates the first of several process maps. A process map is a picture of the current steps in the process targeted for improvement. A process map (SIPOC)has five major categories of work from  the identification of the suppliers of the process,  the inputs the suppliers provide,  the name of the process,  the output of the process, and  the customers of the process.
  83. 83. SIX sigma tool  Tool #3 - The Histogram: used during the Analysis stage of DMAIC. The project team reviews data collected during the Measure stage of DMAIC. Data is of two types –  Discrete data (go/no go, fail or pass) and  Continuous data (time, height etc.).  Tool #4 - The Pareto Chart Histogram is useful for continuous data, same way when the data is discrete; most teams create a Pareto chart. Discrete data is counted data - go/no-go, off/on, yes/no, and defect/no defect type data.  Tool #5 - The Process Summary Worksheet The goal of a Six Sigma project team is to improve effectiveness and efficiency. Efficiency is measured in terms of cost, time, labour, or value. The process summary worksheet is a "roll-up" of the sub process map indicating which steps add value in the process and which steps don't add value
  84. 84. SIX sigma tool  Tool #6 - The Cause-Effect Diagram.- This tool captures all the ideas of the project team relative to what they feel are the root causes behind the current sigma performance and finally help in finding a root cause of the problem.  Tool #7 - The Scatter Diagram.- Once ideas have been prioritized after use of the cause-effect diagram, the most important thing the project team does is to validate the remaining ideas with fact and data. The scatter diagram takes an idea about root causation and tracks corresponding data, in the response the team is trying to improve. The team can validate an idea about root causation through one of the three methods. Using basic data collection, a designed experiment, or through the scatter diagram.  Tool #8 - The Affinity Diagram is used to help sort and categorize a large number of ideas into major themes or categories. It is especially useful when the team is ready to brainstorm solutions in the Improve stage of DMAIC.  Tool #9 - The Run Chart.- We have discussed the histogram and Pareto chart. Think of both of these tools as similar to a camera where a snapshot of the process has been taken. But the run chart is similar to a camcorder, recording some process element over time.  Tool #10 - The Control Chart Similar to a run chart, a control chart uses the data from a run chart to determine the upper and lower control limits. Control limits are the expected limits of variation above and below the average of the data. These limits are mathematically calculated and indicated by dotted lines.
  85. 85. Quality circles  A quality circle is composed of a group of employees (usually 5 to 15 people) who are members of a single work unit, section, or department.  The unit’s supervisor or manager is usually included as member of the quality circle.  These employees have a common bond; they perform similar service or function by turning out a product, part of a product, or a service.  Membership in a quality circle is almost always voluntary.  The basic purpose of a quality circle is to discuss quality problems and to generate ideas that might help improve quality.
  86. 86. Statistical process control  The seven major tools are  1) Histogram or Stem and Leaf plot  2) Check Sheet  3) Pareto Chart  4) Cause and Effect Diagram  5) Defect Concentration Diagram  6) Scatter Diagram  7) Control Chart  A process that is operating with only chance causes of variation present is said to be in statistical control. A process that is operating in the presence of assignable causes is said to be out of control.
  87. 87. Process capability studies  Select a candidate for the study  Define the process, the scope of the study. A unique combination of machines, tools, methods, and personnel engaged in adding value by providing a product or service.  Procure resources for the study. Process capability studies disrupt normal operations and require significant expenditures of both material and human resources.  Evaluate the measurement system. Be prepared to spend the time necessary to get a valid means of measuring the process before going ahead.  Prepare a control plan. The purpose of the control plan is twofold:  1) Isolate and control as many important variables as possible and,  2) provide a mechanism for tracking variables that cannot be completely controlled.
  88. 88. Cost of Quality  Quality costs are defined as costs associated with non-achievement of product/service quality. In simple terms, quality cost is the cost of poor products/services.  The cost of poor quality can add to other costs such as design, production, maintenance, inspection, sales, etc. Quality costs cross department boundaries by involving all activities of the organization – marketing, purchasing, design, manufacturing, service, etc.
  90. 90. The magnificent seven  Make sure that goals and expectations are well defined and communicated.  Explain the differentiation of roles of members to all.  The responsibilities and accountabilities of each member of the team need to be clearly identified and individual performance monitored and managed.  Team meetings should evolve into self-regulated events, while those in lead- activity positions should be encouraged to take the floor and lead the meeting.  Plan the work and work the plan but don't overload the team with excessive reporting requirements, charting, status reports, etc.  Keep the sponsors in the loop.  Celebrate milestone completionswith activities appropriate to the stage and scope of the project.
  91. 91. Control Charts for Attributes  P Charts - measures proportion defective.  C Charts - measures the number of defects/unit.
  92. 92. Control Charts for Variables  1. An upper control limit (UCL) and a lower control limit (LCL) are set for the process.  2. A random sample of the product or service is taken, and the specified quality characteristic is measured.  3. If the average of the sample of the quality characteristic is higher than the upper control limit or lowers than the lower control limit, the process is considered to be "out of control"
  93. 93. CONTROL CHARTS FOR ATTRIBUTES  1. Take a random sample and inspect each item  2. Determine the sample proportion defective by dividing the number of defective items by the sample size  3. Plot the sample proportion defective on the control chart and compare with UCL and LCL to determine if process is out of control.
  94. 94. Control Limits  UCL = u + z sigmap  LCL = u - z sigma p  z is the number of standard deviations from the mean. It is set based how certain you wish to be that when a limit is exceeded it is due to a change in the process proportion defective rather than due to sample variability. 1. 1. Randomly select one item and count the number of defects in that item 2. 2. Plot the number of defects on a control chart 3. 3. Compare with UCL and LCL to determine if process is out of control
  95. 95. R-Chart for Process Variability  UCLR = D4(R)  LCLR = D3(R)  Where the average of past R values, and D3 and D4 is are constants based on the sample size
  96. 96. Chart for Process Average  UCLR = X bar + A2(R)  LCL = X bar – A(2)  Where X bar is the average of several past values, and A2 is a constant based on the sample size.
  97. 97. OTHER CONCEPTS  Double-Sampling Plan:  Specifies two sample sizes (n1 and n2) and two acceptance levels (c1 and c2)  1. if the first sample passes (actual defects c1), the lot is accepted  2. if the first sample fails and actual defects > c2, the lot is rejected  3. if first sample fails but c1< actual defects c2, the second sample is taken and judged on the combined number of defectives found
  98. 98. OTHER CONCEPTS  Sequential-Sampling Plan: Each time an item is inspected, a decision is made whether to accept the lot, reject it, or continue sampling.  Acceptance Sampling  Goal: To accept or reject a batch of items. Frequently used to test incoming materials from suppliers or other parts of the organization prior to entry into the production process. Used to determine whether to accept or reject a batch of products. Measures number of defects in a sample.
  99. 99. TOOLS AND TECHNIQUES  The Oracle E-Business Suite delivers Oracle's market-leading database and application server products in a single, consolidated technology stack.  The GM tech 2 diagnostic tool has been around since the 1980's. It has been the flagship diagnostic tool and programing device for many years. It continues to be a valuable part of the GM dealership stable because it’s quick, efficient, and works great!  Tech 2 gives you unprecedented access to EVERY GM module and controller, provides the best and highest volume of vehicle data, and possesses the most bi-directional functionality of any diagnostic tool for GM family cars.  PLENTY of people here in the United States selling clones! They buy a few hundred of them, and un-load them on unsuspecting people calling them "slightly used" or surplus. If they have very little feedback, or the feedback looks like it was written by a foreigner, you’re likely looking at a clone.
  100. 100. TOOLS AND TECHNIQUES OF TQM Lesson 12
  101. 101. TQM – I tools for an organization  Total quality management TQM-i tools help organizations to identify, analyze and assess qualitative and quantitative data that is relevant to their business.  These tools can identify procedures, ideas, statistics, cause and effect concerns and other issues relevant to their organizations.  Each of which can be examined and used to enhance the effectiveness, efficiency, standardization and overall quality of procedures, products or work environment, in accordance with ISO 9000 standards (SQ, 2004).
  102. 102. TQM – I tools for an organization  According to Quality America, Inc. the number of TQM tools is close to 100 and come in various forms, such as brainstorming, focus groups, check lists, charts and graphs, diagrams and other analysis tools.  In a different vein, manuals and standards are TQM tools as well, as they give direction and best practice guidelines to you and/or your staff.  TQM tools illustrate and aid in the assimilation of complicated information such as: The list goes on, though essentially TQM tools can be used in any situation, for any number of reasons, and can be extremely effective if used properly
  103. 103. MEASUREMENT TOOLS Lesson 13
  104. 104. Check Sheet  1. SPC - 7 BASIC TOOLS 2013.10.22  2. STATISTICAL PROCESS CONTROL  3. CHECK SHEET Data record Checklist Develop a matrix for data collection.  4. STRATIFICATION ANALYSIS Stratification Variables To group your data by a stratification variable.  5. SCATTER DIAGRAM EXPLAINS THE RELATIONSHIP BETWEEN... ...X and Y.
  105. 105. Check Sheet  6. HISTOGRAM Normal manufacturing process, normal quality Limitation Data from difference sources  7. HISTOGRAM VS. BAR GRAPH Histogram Size, shape and the density of interval.  8. CREATING HISTOGRAM  1. Collecting input data (n>50).  2. Define K (base on sampling size, density of the bin, narrow the interval) Either the experience or use the formula K=1+3.32*log(n)  3. Define I the Range: R=X max – X min i= R/ K (take the odd number)  4. Bin range L = X min-(unit/2), U=L+I ...apply to other number, till > X max  5. On the Tools menu, click Data Analysis.  6. In the Analysis Tools box, click Histogram, and then click OK.
  106. 106. Check Sheet  9. REVIEW THE 4 BASIC TOOLS Check Sheet A systematic and constantly, data record collection.  10. CAUSE AND EFFECT DIAGRAM Measurement Materials Method analytical procedure Sampling  11. REVIEW THE OTHER 3 BASIC TOOLS Pareto Chart 80-20 rule.  12. ADDRESS YOUR CONCLUSION Follow MECE Principle mutually exclusive and collectively exhaustive South East North Seattle East ←→↑ Grouping Find what’ve been missing East South ↓ North ↑ Seattle West North ← Blue West Blue west south north direction Summarizing West→ East West South North
  107. 107. More measurement tools Histograms a diagram consisting of rectangles whose area is proportional to the frequency of a variable and whose width is equal to the class interval. Run chart A run chart is a line graph of data plotted over time. By collecting and charting data over time, you can find trends or patterns in the process. Scatter diagrams a type of plot or mathematical diagram using Cartesian coordinates to display values for typically two variables for a set of data. If the points are color-coded, one additional variable can be displayed. Cause and affect Diagrams Show the causes of a specific event. Each cause or reason for imperfection is a source of variation Paretos Chart a type of chart that contains both bars and a line graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line.
  108. 108. ANALYTICAL TOOLS Lesson 14
  109. 109. Constructing a Process Flowchart  Step 1: Determine the Boundaries  1. Where does a process begin?  2. Where does a process end?  Step 2: List the Step  1. Use a verb to start the task description.  2. The flowchart can either show the sufficient information to understand the general process flow or detail every finite action and decision point.  Step 3: Sequence the Steps  1. Use post-it notes so you can move tasks.  2. Do not draw arrows until later.
  110. 110. Constructing a Process Flowchart  Step 4: Draw Appropriate Symbols  1. Start with the basic symbols:  1. Ovals show input to start the process or output at the end of the process.  2. Boxes or rectangles show task or activity performed in the process.  3. Arrows show process direction flow.  4. Diamonds show points in the process where a yes/no questions are asked or a decision is required.  5. Usually there is only one arrow out of an activity box. If there is more than one arrow, you may need a decision diamond.  6. If there are feedback arrows, make sure feedback loop is closed; i.e. it should take you back to the input box.
  111. 111. Constructing a Process Flowchart  Step 5: System Model  1. Draw charts using system model approach.  2. Input - use information based upon people, machines, material, method, and environment.  3. Process - use subsets of processes in series or parallel.  4. Output - use outcomes or desired results.  5. Control - use best in class business rules.  6. Feedback - use information from surveys or feedback.
  112. 112. Constructing a Process Flowchart  Step 6: Check for Completeness Include pertinent chart information, using title and date for easy reference.  Step 7: Finalize the Flowchart  1.Ask if this process is being run the way it should be.  2.Are people following the process as charted?  3.Do we have a consensus?  4.What is redundant; add what is missing.
  113. 113. Regression Analysis  A statistical process for estimating the relationships among variables.  Helps one understand how the typical value of the dependent variable changes when any one of the independent variables is varied, while the other independent variables are held fixed.  Widely used for prediction and forecasting.  Depends on the form of the data generating process, and how it relates to the regression approach being used.
  114. 114. how to analyze team productivity in 5 simple steps. 1. Track your Current Productivity and Utilization. 2. Analyse, Analyse, And Analyse. 3. Improve your Planning. 4. Manage Customer Expectations. 5. Create a Productive Working Environment.
  115. 115. The 5 whys  1. Implement some form of time recording – “You can’t manage what you can’t measure”, by capturing time-sheets you can understand your current utilization and productivity  2. Define Appropriate Variables – if you sell services you will want to measure chargeable utilization, ensure you define variables that enable you to measure utilization and productivity that is applicable to your business.  3. Improve your planning – it will also give you a more realistic view of the health of the organization by comparing planned versus actual.  4. Manage Customer Expectations – communicate to your entire team the importance of managing the customer’s expectation from initial enquiries all the way through to project delivery. In the long run you will have more happy customers resulting in your employees having to perform less un-productive tasks.  5. Encourages Collaboration – boost your productivity by creating an environment where your team members can easily share knowledge, ideas and lessons learned.
  116. 116. OVERRAL REQUIREMENT EFFECTIVENESS  To evaluate how effectively a manufacturing operation is utilized.  The results are stated in a generic form which allows comparison between manufacturing units in differing industries.  Used to identify scope for process performance improvement, and how to get the improvement.  Also commonly used as a key performance indicator (kpi) in conjunction with lean manufacturing efforts to provide an indicator of success.
  118. 118. KAIZEN  Less waste – inventory is used more efficiently as are employee skills.  People are more satisfied – they have a direct impact on the way things are done.  Improved commitment – team members have more of a stake in their job and are more inclined to commit to doing a good job.  Improved retention – satisfied and engaged people are more likely to stay.  Improved competitiveness – increases in efficiency tend to contribute to lower costs and higher quality products.  Improved consumer satisfaction – coming from higher quality products with fewer faults.  Improved problem solving – looking at processes from a solutions perspective allows employees to solve problems continuously.  Improved teams – working together to solve problems helps build and strengthen existing teams.
  119. 119. JIT  Strategy where materials are only ordered and received as they are needed in the production process.  The goal of this method is to reduce costs by saving money on overhead inventory expenses.  The company must be able to accurately forecast demand for goods and services for the just-in-time method to be effective.  When sales activities warrant more production, inventory is "pulled" and more manufacturing supplies are ordered.  The result is a smooth flow of production and reduced inventory costs.
  120. 120. QUALITY CIRCLES  A quality circle or quality control circle is a group of workers who do the same or similar work, who meet regularly to identify, analyze and solve work- related problems.  (1) improved communication;  (2) management awareness of employee job-related concerns;  (3) personal growth and development;  (4) enhanced decision making skills;  (5) increased individual power and improved motivation; and  (6) opportunities for recognition of individual improvement.
  121. 121. FORCE FIELD ANALYSIS  Force-field analysis is a development in social science.  It provides a framework for looking at the factors that influence a situation, originally social situations.  It looks at forces that are either driving movement toward a goal or blocking movement toward a goal.  Describe your plan or proposal for change in a box in the middle of the paper. List the forces for change in a column on the left-hand side, and the forces against change in a column on the right-hand side.
  122. 122. Five S’s
  123. 123. CONTROL TOOLS Lesson 16
  124. 124. GANTT CHART  a type of bar chart that illustrates a project schedule, named after its inventor, Henry Gantt,  He designed such a chart around the years 1910–1915.  Modern Gantt charts also show the dependency relationships between activities and current schedule status.
  125. 125. Network diagram  Computer network diagram is a schematic depicting the nodes and connections amongst nodes in a computer network or, more generally, any telecommunications network.  Computer network diagrams form an important part on network documentation.
  126. 126. Radar chart  A radar chart is a graphical method of displaying multivariate data in the form of a two-dimensional chart of three or more quantitative variables represented on axes starting from the same point.  The relative position and angle of the axes is typically uninformative.
  127. 127. THE PDCA CYCLE
  128. 128. EARNED VALUE MANAGEMENT  Earned Value Management (EVM) helps project managers to measure project performance.  It is a systematic project management process used to find variances in projects based on the comparison of worked performed and work planned. EVM is used on the cost and schedule control and can be very useful in project forecasting.
  129. 129. Terms for earned value management  Budgeted cost for work scheduled (BCWS), sometimes called the planned value.  Budgeted cost for work performed (BCWP) or earned value.  Actual cost of work performed (ACWP).  Budget at completion (BAC).  Estimate at completion (EAC) which is comprised of the cumulative to date actual cost of work performed plus the estimate to complete the remaining work.  Cost variance (CV) which is calculated as BCWP minus ACWP. A result greater than 0 is favourable (an under run), a result less than 0 is unfavourable (an overrun).  Schedule variance (SV) which is calculated as BCWP minus BCWS. A result greater than 0 is favourable (ahead of schedule), a result less than 0 is unfavourable (behind schedule).  Variance at completion (VAC) which is calculated as BAC minus EAC. A result greater than 0 is favourable, a result less than 0 are unfavourable.