Quality Management and Process Improvement

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Quality Management and Process Improvement
The invasion of the Black Belt Tools
A Quality Company
Quality and Variability Measuring quality Basic
Lean 6 Sigma PI tools Whats new about 6 Sigma?
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Big Picture

• Quality is a major threat to your business model
  on several fronts
• Market alienation
• Costs
• Timing delays
• However New economy industries seem less
  affected
• Esp. Software
• If quality is important, how do we improve it as
  part of your operations strategy.

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Targets, Means, and Variability
Ideally,at what temperature would you be most
comfortable in this room (the target)? Where
should be the mean temperature be? Does the
variance matter?
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What is 6-s Quality?
2.6s quality 1 defects
3s quality 0.3 defects
6s quality 0 defects
Upper Specification Limit
Lower Specification Limit
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What is 6-s Quality?
k-s Quality is when , the process
spread, lies within the upper and lower
specification limits set by customer expectations.
Upper Specification Limit
Lower Specification Limit
Above is a picture of ____-s quality
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6s in the Real-World
Is 99 (2.6s) good enough? Server Downtime 7
hours/month Lost mail 20,000 pieces/day Unsafe
drinking water 15 mins/day Incorrect
surgeries 5000 per week Defective 200-part
VCRs 87 defective Defective 500-part PC 99.4
def. Defective 3000-part Car 100
def. Defective 1 MLOC Op Sys 100 def. 6-s
quality (3.4 defects per million, assuming a
1.5s mean drift of target) Defect rates would be
cut by 2900 times over 99 and 800 times over
3s.
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The DMAIC Approach to Kaizen
Note Similar to the Shewart/Deming
Plan-Do-Check-Act Cycle or the Militarys
Observe-Orient-Decide-Act Loop
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Quality in Cars

• Quality products? Why or why not?
• Rolls-Royce
• Toyota Camry
• Psion
• Buick
• Ford Explorer

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Quality in Services

• Quality services? Why or why not?
• Harrods of London
• Wal-Mart
• McKinsey
• Accenture

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Eight Dimensions I
performance Primary operating characteristics as
perceived by the customer Features
(functionality) Secondary operating
characteristics ( bells and whistles or
surprises and delights) reliability Product
malfunctions over a specified amount of
time conformance Degree to which product or
service meets its design standards
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Eight Dimensions II
durability How long does the good provide
acceptable service? serviceability Service speed,
competence, courtesy, and reliability. (May be
design related.) aesthetics Looks, feels, and
sounds good. perceived quality Reputation, Brand
Loyalty, Snob appeal
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Quality in Oreos

• What is a quality oreo along the following
  dimensions?
• Performance
• Features
• Reliability
• Conformance
• Durability
• Aesthetics
• Perceived Quality

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How do we systematically improve our quality?

• Four fundamental principles of quality
  improvement common to all major methodologies
• Focus on customer satisfaction
• Focus on Process
• Continuous improvement
• Participation by everyone

Enter the Black-Belt PI Tools
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Black-belt PI Tools Measure
1) Process Flow Diagram

• For Value Stream Mapping include
• For each operation
• Cycle time
• Interarrival time
• Change-over/Set-up time
• Uptime
• Yield
• Batch size (if appropriate)
• For each delay/inventory/queue
• Average WIP time in queue

• Value-Add Analysis
• Indicate for each operation
• (VA) Value-add for external
• customer
• (BVA) Value-add for internal
• customer
• (NVA) Non-value add

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Black-belt PI ToolsMeasure
2) Histogram
frequency
Look for non- normal distribution and outliers
measurement
3) Run Chart
Is there a trend over time or some other
pattern?
measurement
time
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Black-belt PI ToolsAnalyze
4) Pareto Chart
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Black-belt PI ToolsAnalyze
5) Fishbone (Ishikawa) Diagram
Root Cause Determination
People (Man)
Machine
problem
Material
Methods
For more info, see The Memory Jogger by Michael
Brassard et al.
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Fishbone Example
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Black-belt PI ToolsAnalyze
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Black-belt PI ToolsImprove
7) Implement Lean Reduce waste, flowtimes
Visual management, etc.
8) Benchmarking
Sources for New Ideas
Trick is to benchmark outside the box!
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Black-belt PI Tools Control
Is the process changing?
9) Process Control Charts
measurement
UCL
mean
LCL
time
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Differences between TQM 6s
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The Message

• Variability can create huge inefficiencies and/or
  quality problems, and those effects get magnified
  by the remaining four horseman information,
  process complexity, products
• Most PI is about reducing variability
• Quality is what the customer says it is, and is
  constantly changing.
• World-class firms always use some form of
  continuous improvement program.
• 6s better than TPS for firms starting out (IMHO)
• Needs management backing

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Quality Management and Process Improvement
The invasion of the Black Belt Tools
A Quality Company
Quality and Variability Measuring quality Basic
Lean 6 Sigma PI tools Whats new about 6 Sigma?